Internal Use Software Development Costs

6 Months Ended

Jun. 30, 2024

Internal Use Software Development Costs

Internal Use Software Development Costs

Note 5 – Internal Use Software Development Costs

Internal Use Software Development Costs consisted of the following:

Type	June 30, 2024			December 31, 2023			Estimated Useful Life (Years)
Internal Use Software Development Costs	$	668,484		$	668,484		3
Less: accumulated amortization		(240,474	)		(129,060	)
Internal Use Software Development Costs - net	$	428,010		$	539,424

Costs incurred for Internal Use Software Development Costs

Management has determined that all costs incurred in 2023 ($281,304) related to internal use software development costs related to the application and infrastructure development stage were completed as of December 31, 2023. Amortization of these costs began in 2024.

Management determined that all costs incurred in 2022 ($387,180) related to internal use software development costs related to the application and infrastructure development stage which were completed as of December 31, 2022. Amortization of these costs began in 2023.

The following is a summary of our capitalized internal use software development costs at June 30, 2024 and December 31, 2023:

Balance - December 31, 2022	$	387,180
Capitalized costs		281,304
Balance - December 31, 2023		668,484
No activity		-
Balance - June 30, 2024	$	668,484

For the three months ended June 30, 2024 and 2023, amortization of internal use software development costs was $55,707 and $32,265, respectively.

For the six months ended June 30, 2024 and 2023, amortization of internal use software development costs was $111,414 and $64,530, respectively.

SURGEPAYS, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2024

Estimated amortization expense is as follows for the years ended December 31:

2024 (6 Months)		111,414
2025		222,828
2026		93,768
Total	$	428,010