Capitalized Software, net
|9 Months Ended|
Sep. 30, 2020
|Capitalized Software, net|
|Capitalized Software, net||
5. Capitalized Software, net
The Company capitalizes certain costs related to the development and implementation of cloud computing software. Costs incurred during the application development phase are capitalized only when the Company believes it is probable the development will result in new or additional functionality. The types of costs capitalized during the application development phase include employee compensation, as well as consulting fees for third‑party developers working on these projects. The capitalized costs are amortized on a straight‑line basis over the estimated useful life of the asset, which is typically 3 years.
The Company incurred $0.1 million in amortization expense in each of the nine month periods ended September 30, 2020 and 2019.
Capitalized software, net at the each balance sheet date consists of the following (in thousands):
The Company expects to incur amortization expense of $0.1 million for the remaining three months of 2020, and $0.1 million in each of the years ending 2021, and 2022.
The entire disclosure for research, development, and computer software activities, including contracts and arrangements to be performed for others and with federal government. Includes costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility and in-process research and development acquired in a business combination consummated during the period.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef