6. Capitalized Software

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

NOTE 6 - Capitalized Software

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. 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. For the three and six months ended June 30, 2016, the Company did not capitalize any software costs. For the three and six months ended June 30, 2016, the Company’s amortization cost was approximately $53 and $106, respectively, compared with $103 and $205, respectively for the same periods last year. Net capitalized software costs totaled $264 and $370 as of June 30, 2016 and December 31, 2015, respectively.