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Software Development Costs
3 Months Ended
Mar. 31, 2020
Research and Development [Abstract]  
Software Development Costs

(12) SOFTWARE DEVELOPMENT COSTS

 

The Company capitalizes costs related to developing certain software programs in accordance with ASC No. 350, Intangibles – Goodwill and Other. When the Company deploys the programs, it begins to recognize costs related to the programs on a straight-line basis over the programs’ estimated useful lives, generally two to three years. Amortization expense relating to capitalized software development costs totaled $149,000 and $97,000 for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020 and December 31, 2019, approximately $144,000 and $177,000, 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 March 31, 2020 and 2019, and determined to abandon various software development projects that the Company concluded were no longer a current strategic fit or for which it determined that the marketability of the content had decreased due to obtaining additional information regarding the specific industry for which the content was intended. As a result, the Company recognized an impairment of $138,000 and $1,000 for the three months ended March 31, 2020 and 2019, respectively. Impairment of capitalized software is shown separately on the Company’s consolidated statement of operations. Due to uncertainty of the longer-term impact COVID-19 will have on the Company’s business, the Company did not record any additional software development impairment charges for the three months ended March 31, 2020, but will continue to monitor the recoverability of these assets and recognize any additional write-offs during the period in which it determines that impairment exists.