Software Development Costs (Notes)

3 Months Ended

Mar. 31, 2023

Research and Development [Abstract]

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

SOFTWARE DEVELOPMENT COSTS

Software development costs consists of the following:

	March 31, 2023		December 31, 2022
Software development costs	$	4,666,672	$	4,509,805
Less accumulated amortization	(3,063,247)		(2,735,772)
Software development costs, net	$	1,603,425	$	1,774,033

The Company developed its web-based influencer marketing platform, IZEAx, to enable influencer marketing and content creation campaigns on a greater scale. In 2022, the Company developed two new web-based influencer marketing platforms, Flex and Marketplace. These new platforms will replace IZEAx and Shake. IZEAx will be sunset in the second quarter of 2023 and Shake was sunset in the fourth quarter of 2022. The Company capitalized software development costs of $156,868 and $99,426 during the three months ended March 31, 2023, and 2022, respectively. As a result, the Company has capitalized a total of $4,666,672 in direct materials, consulting, payroll, and benefit costs to its internal-use software development costs in the consolidated balance sheet as of March 31, 2023.

The Company amortizes its software development costs, commencing upon initial release of the software or additional features, on a straight-line basis over the estimated useful life of five years, which is consistent with the amount of time its legacy platforms were in service, or its actual useful life, if shorter. The Company recorded amortization expense associated with its capitalized software development cost of $327,476 and $105,896 during the three months ended March 31, 2023, and 2022, respectively.

As of March 31, 2023, future estimated amortization expense related to software development costs is set forth in the following schedule:

	Software Development Amortization Expense
2023	$	258,492
2024	349,690
2025	334,494
2026	328,745
2027	294,710
2028	$	37,294
Total	$	1,603,425