Software Development Costs

6 Months Ended

Jun. 30, 2011

Software Development Costs [Abstract]

Research, Development, and Computer Software Disclosure [Text Block]

Software Development Costs

The Company capitalizes costs associated with internally developed software, developed for internal use only, during the application development stage. Application development stage costs generally include costs associated with internal-use software configuration, coding, installation and testing. Costs of significant upgrades and enhancements that result in additional functionality also are capitalized, whereas costs incurred for maintenance and minor upgrades and enhancements are expensed as incurred. Capitalized costs include external direct costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related expenses for employees who are directly associated with and devote time to the internal-use software projects. Capitalization of such costs begins when the preliminary project stage is complete and ceases no later than the point at which the project is substantially complete and ready for its intended purpose. Capitalized costs are amortized using the straight-line method over the useful life of the software, which is typically five years.

During the three and six months ended June 30, 2011, the Company capitalized $237,000 and $353,000, respectively. During the three and six months ended June 30, 2010, the Company capitalized approximately $55,000 and $182,000, respectively.