5. Accounting for Software Costs

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

5. Accounting for Software Costs

The Company accounts for the costs of software within its products  whereby certain software costs incurred subsequent to the establishment of technological feasibility are capitalized and amortized over the estimated lives of the related products.  The Company determines technological feasibility to be established upon the internal release of a detailed program design as specified by Topic 985-20.  Upon the general release of the product to customers, development costs for that product are amortized over periods not exceeding five years, based on current and future revenue of the product.  Net capitalized software costs totaled $370 and $753 as of December 31, 2015 and 2014, respectively.  For the years ended December 31, 2015 and 2014, the Company’s amortization expense for capitalized software was approximately $383 and $725, respectively.