Capitalized Software Development

6 Months Ended

Jun. 30, 2022

Extractive Industries [Abstract]

Capitalized Software Development

5. Capitalized Software Development

Certain development costs related to the Company’s products during the application development stage are capitalized. Costs incurred in the preliminary stages of development are analogous to research and development activities and are expensed as incurred. The preliminary stage includes such activities as conceptual formulation of alternatives, evaluation of alternatives, determination of existence of needed technology, and final selection of alternatives. Once the application development stage is reached, internal and external costs are capitalized until the software is substantially complete and ready for its intended use. Capitalized costs are recorded as part of property and equipment, net. Capitalized internal use software is amortized on a straight line basis over its estimated useful life, which is generally three years, and is recorded as cost of revenue in the Condensed Consolidated Statement of Operations.