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Note 10 - Capitalized Software Development Costs

9 Months Ended

Sep. 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:

		September 30, 2014				December 31, 2013
Software development costs		$	1,119,400				1,119,400
Accumulated amortization			(673,300	)			(500,000	)
		$	446,100			$	619,400

Amortization of capitalized software development costs is a component of costs of revenue. Capitalized software development costs amortization aggregated $52,700 and $173,300 during the three and nine-month periods ended September 30, 2014, respectively, and $24,000 and $107,100 during the three and nine-month periods ended September 30, 2013, respectively.

We did not record any capitalized software development costs during the nine-month period ended September 30, 2014. We recorded $79,100 and $543,600 of capitalized software development costs during the three and nine-month periods ended September 30, 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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