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Note 10 - Capitalized Software Development Costs

6 Months Ended

Jun. 30, 2014

Research and Development [Abstract]

Research, Development, and Computer Software Disclosure [Text Block]

10. Capitalized Software Development Costs

Capitalized software development costs consisted of the following:

		June 30, 2014				December 31, 2013
Software development costs		$	1,119,400			$	1,119,400
Accumulated amortization			(620,600	)			(500,000	)
		$	498,800			$	619,400

Amortization of capitalized software development costs is reported as a component of software product costs within costs of revenue. Amortization of capitalized software development costs aggregated $52,600 and $41,500 during the three-month periods ended June 30, 2014 and 2013, respectively, and $120,600 and $83,100 during the six-month periods ended June 30, 2014, and 2013, respectively.

We did not record any capitalized software development costs during the three-month periods ended June 30, 2014 and 2013, respectively. We recorded $0 and $464,500 of capitalized software development costs during the six-month periods ended June 30, 2014 and 2013, respectively. Such costs capitalized during 2013 were associated with the development of hopTo. Had these costs not met the criteria for capitalization, they would have been expensed.

The entire disclosure for research, development, and computer software activities, including contracts and arrangements to be performed for others and with federal government. Includes costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility and in-process research and development acquired in a business combination consummated during the period.

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