Capitalized Software Development Costs

9 Months Ended

Sep. 30, 2016

5. Capitalized Software Development Costs

Capitalized software development costs consisted of the following:

	September 30, 2016			December 31, 2015
	(in thousands)
Gross capitalized software development costs	$	23,325		$	18,737
Accumulated amortization		(17,485	)		(14,082	)
Capitalized software development costs, net	$	5,840		$	4,655

Capitalized software development costs are amortized on a straight-line basis over their estimated useful life of two years.

The following table summarizes software development costs capitalized, stock-based compensation included in capitalized software development costs, and amortization of capitalized software development costs.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
	(in thousands)				(in thousands)
Software development costs capitalized	$	1,988	$	1,194	$	4,588	$	3,151
Stock-based compensation included in capitalized software development costs	$	326	$	150	$	832	$	315
Amortization of software development costs	$	1,143	$	1,248	$	3,822	$	3,405

- Definition

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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