Capitalized Software Development Costs

9 Months Ended

Sep. 30, 2020

Capitalized Software Development Costs Disclosure [Abstract]

Capitalized Software Development Costs

Capitalized Software Development Costs

    In accordance with ASC 350-40 “Internal-Use Software” and/or ASC 350-985 “Software”, the Company capitalizes certain qualifying software and product related development costs associated with the Company’s continuing medical education service offerings, development of the Property and Casualty underwriting insurance data exchange platform servicing the London markets, development of EbixCash’s SaaS-based Asset Management and Collection platforms, development of EbixCash’s single sign on agent and customer portal (including mobile application) and content development work related to the E-Learning business of EbixCash. During the three and nine months ended September 30, 2020 the Company capitalized $1.4 million and $4.6 million, respectively, and $1.5 million and $4.1 million for the three and nine month periods ended September 30, 2019, respectively, of such development costs. At September 30, 2020 and December 31, 2019, a total of $20.4 million and $19.2 million of remaining unamortized development costs are reported on the Company’s Condensed Consolidated Balance Sheets, respectively.

    During the three months ended September 30, 2020 and 2019, the Company recognized $823 thousand and $688 thousand, respectively, of amortization expense with regards to these capitalized software development costs, which is included in costs of services provided in the Company’s Condensed Consolidated Statements of Income. During the three and nine months ended September 30, 2020, the Company recognized $823 thousand and $2.5 million, respectively, of amortization expense with regards to these capitalized software development costs, which is included in costs of services provided in the Company’s Condensed Consolidated Statements of Income. During the three and nine month periods ended September 30, 2019, related amortization expense was $688 thousand and $1.9 million, respectively. The capitalized continuing medical education product costs are being amortized using a three-year to five-year straight-line methodology. The capitalized software development costs for the property and casualty underwriting insurance data exchange platform are being amortized over a period of five years. The capitalized software development costs related to EbixCash products are being amortized over a period of five years as and when the platforms/products are launched into the marketplace.