Pre-Production Costs

9 Months Ended

Sep. 30, 2019

Note D – Pre-Production Costs

	September 30, 2019		December 31, 2018
Engineering, Pre-Production Costs (new products)*		85,000		-
Software Development (new products)**		63,000		-
Total	$	148,000	$	-

*We are capitalizing pre-production costs in accordance with ASC 340-10. Development costs will be amortized on a per unit basis over the life of the product once we begin selling the product.

**We have begun capitalizing software development costs during the nine months ended September 30, 2019 in accordance with ASC 985.

Software computer costs for computer software that is to be used as an integral part of a product or process is capitalized after the following conditions are met;

	a.	Technological feasibility has been established for the software.
	b.	All research and development activities for the other components of the product or process have been completed.

Capitalization of computer software costs shall cease when the product is available for general release to customers. The capitalized costs will then be amortized on a per unit basis.