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Software Development Costs
9 Months Ended
Sep. 30, 2019
Software Development Costs  
Software Development Costs

8.       Software Development Costs

The Company capitalizes certain costs incurred in connection with obtaining or developing its proprietary software platforms, which are used to support its service contracts, including external direct costs of material and services, payroll costs for employees directly involved with the software development, and interest expense related to borrowings attributable to software development. As of September 30, 2019 and December 31, 2018, capitalized software costs consisted of the following:

September 30, 2019

    

December 31, 2018

Software development costs

$

25,521

$

15,278

Less: accumulated amortization

(9,691)

(7,030)

Software development costs, net

$

15,830

$

8,248

Capitalized software development costs included above not yet subject to amortization

$

4,236

$

3,500

Amortization expense for the three months ended September 30, 2019 and 2018 was $1,132 and $464, respectively. Amortization expense for the nine months ended September 30, 2019 and 2018 was $2,661 and $1,594, respectively.