License Fees

3 Months Ended

Mar. 31, 2020

PaymentOnCapitalLease

License Fees

Note 4.  License Fees

License fees consist of the following:

	March 31, 2020			December 31, 2019
Purchased licenses	$	392,160		$	377,160
Less accumulated amortization		(341,988	)		(341,155	)
License fees, net	$	50,172		$	36,005

Licenses for gaming machine patents and technology are added to the cost of slot machines when they are built using a capitalization rate per machine. The capitalization rate is based on expected annual machine production and is reviewed and adjusted accordingly based on actual versus projected units produced.

The weighted average useful life of purchased source code licenses is 3 years. Amortization expense included in the consolidated condensed Statements of Operations relating to the source code licenses was $833 for the three months ended March 31, 2020 and 2019, respectively.

Estimated future capitalizable costs, amortization and expense related to recorded license fees is as follows:

Year Ending December 31,	Amount
2020	$	47,949
2021		2,223
	$	50,172