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CAPITALIZED SOFTWARE DEVELOPMENT COSTS
9 Months Ended
Sep. 30, 2024
Research and Development [Abstract]  
CAPITALIZED SOFTWARE DEVELOPMENT COSTS

4. CAPITALIZED SOFTWARE DEVELOPMENT COSTS

 

In 2020, the Company began developing MARKET.live, a livestream ecommerce platform, and has capitalized $7,131 of internal and external development costs as of September 30, 2024 and December 31, 2023, respectively. In October 2021, the Company entered into a 10-year license and services agreement with a third party (the “Primary Contractor”) to develop on a work-for-hire basis certain components of MARKET.live. The Primary Contractor’s fees for developing such components, including the license fee, is $5,750. The Primary Contractor was paid an additional $500 bonus in April 2022 for services rendered pursuant to the license and service agreement.

 

For the three and nine months ended September 30, 2024 and 2023, the Company amortized $249 and $538, respectively and $748 and $1,615, respectively.

 

Capitalized software development costs, net consisted of the following:

 

SCHEDULE OF CAPITALIZED SOFTWARE DEVELOPMENT COSTS

   September 30, 2024   December 31, 2023 
         
Beginning balance  $3,990   $6,176 
           
Additions   -    23 
Amortization   (748)   (2,209)
Ending balance  $3,242   $3,990 

 

The expected future amortization expense for capitalized software development costs as of September 30, 2024, is as follows:

 

SCHEDULE OF ESTIMATED AMORTIZATION EXPENSE

Year ending  Amortization 
2024 remaining  $250 
2025   998 
2026   997 
2027   997 
2028 and thereafter   - 
Total amortization  $3,242