Software Development Costs

9 Months Ended

Sep. 30, 2018

Software Development Costs

Software Development Costs

8.       Software Development Costs

The Company capitalizes certain costs incurred in connection with obtaining or developing internal-use software, including external direct costs of material and services and payroll costs for employees directly involved with the software development. As of September 30, 2018 and December 31, 2017, capitalized software costs consisted of the following:

	September 30, 2018		December 31, 2017
Software development costs	$	13,328	$	9,873
Less:  accumulated amortization		(6,467)		(4,872)
Software development costs, net	$	6,861	$	5,001
Capitalized software costs not yet subject to amortization	$	2,106	$	1,021

Amortization expense for the three months ended September 30, 2018 and 2017 was $464 and $426, respectively. Amortization expense for the nine months ended September 30, 2018 and 2017 was $1,594 and $1,237, respectively.