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CLOUD COMPUTING SERVICE CONTRACT | 6 Months Ended
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Jun. 30, 2022
CLOUD COMPUTING SERVICE CONTRACT |
NOTE 9. CLOUD COMPUTING SERVICE CONTRACT | NOTE 9. CLOUD COMPUTING SERVICE CONTRACT In May 2020 we entered into a cloud computing service contract with a vendor. The contract provides for annual payments in the amount of $30,409 and has a term of 5 years. The annual contract payments are capitalized as a prepaid expense and amortized over a twelve-month period. We have incurred implementation costs of $66,857 in connection with the cloud computing service contract which have been capitalized in prepaid expenses and other assets as of June 30, 2022. In accordance with ASU No. 2018-15, such implementation costs are being amortized over the remaining contract terms beginning January 1, 2021, which was when the cloud-based service contract was placed in service. Amortization expense for the three and six months ended June 30, 2022 was $3,766 and $7,531, respectively. Amortization expense for the three and six months ended June 30, 2021 was $3,482 and $6,964, respectively.

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