Capitalized Software Development Costs

3 Months Ended

Mar. 31, 2013

Capitalized Software Development Costs [Abstract]

10. Capitalized Software Development Costs

Capitalized software development costs consisted of the following:

	March 31, 2013			December 31, 2012
Software development costs	$	1,037,600		$	573,100
Accumulated amortization		(391,500	)		(350,000	)
	$	646,100		$	223,100

Amortization of capitalized software development costs is a component of costs of revenue. Capitalized software development costs amortization aggregated $41,500 during each of the three-month periods ended March 31, 2013 and 2012. We recorded $464,500 and $0 of capitalized software development costs during the three-month periods ended March 31, 2013 and 2012, respectively. Such costs capitalized during the during the three-month period ended March 31, 2013 were associated with the development of our new product hopTo, which was released on April 15, 2013. Had these costs not met the criteria for capitalization, they would have been expensed.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

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