Capitalized Software and Other Assets

12 Months Ended

Dec. 31, 2012

Capitalized Software and Other Assets [Abstract]

Capitalized Software and Other Assets

4.           Capitalized Software and Other Assets

The Company's capitalized software and other assets are as follows at December 31, 2012 and 2011 (in thousands):

	December 31, 2012										December 31, 2011
	Gross Amount		Accumulated Amortization			Asset Impairment			Net Book Value		Gross Amount		Accumulated Amortization			Net Book Value
Capitalized software	$	7,395	$	(5,632	)	$	(1,763	)	$	-	$	6,688	$	(5,503	)	$	1,185
Amortizable purchased technology		78		(78	)		-			-		78		(78	)		-
Other assets		45		-			-			45		35		-			35
Deferred lease incentive		77		-			-			77		-		-			-
Total	$	7,595	$	(5,710	)	$	(1,763	)	$	122	$	6,801	$	(5,581	)	$	1,220

Capitalized software consists of external direct costs of materials and services consumed in developing and obtaining internal-use computer software and the payroll and payroll-related costs for employees who are directly associated with and who devote time to developing the internal-use computer software and is amortized over three years. Amortization expense was $0.6 million and $1.0 million for the years ended December 31, 2012 and 2011, respectively.

At December 31, 2012, the Company determined that continuing losses associated with the use of long-lived assets and a projection of associated future cash flows required the adjustment of long-lived assets to fair value at December 31, 2012.  Accordingly, long-lived assets including capitalized software with a recorded net value of $1.8 million was reduced to fair value of $0 at December 31, 2012.