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4. SOFTWARE DEVELOPMENT COSTS
6 Months Ended
Jun. 30, 2014
Software Development Costs  
SOFTWARE DEVELOPMENT COSTS

The Company capitalizes costs related to the development of certain of its software products in accordance with ASC No. 350, Intangibles – Goodwill and Other. Amortization expense relating to capitalized software development costs totaled $232,000 and $205,000 for the three months ended June 30, 2014 and 2013, respectively, and $454,000 and $450,000 for the six months ended June 30, 2014 and 2013, respectively. As of June 30, 2014 and December 31, 2013, approximately $848,000 and $934,000, respectively, of capitalized software costs were not subject to amortization as the development of various software projects was not complete.

 

The Company performed its quarterly review of software development projects for the three months ended June 30, 2014 and determined to abandon certain software development projects that it concluded were no longer a current strategic fit or for which the Company determined that the marketability of the content had decreased due to obtaining additional information regarding the specific purpose for which the content was intended. As a result, the Company recognized impairment losses of $639,000 and $661,000 for the three and six months ended June 30, 2014. The Company recognized impairment losses of $27,000 and $92,000 for the three and six months ended June 30, 2013.