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Software Development Costs
6 Months Ended
Jun. 30, 2020
Software Development Costs  
Software Development Costs

7.       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 the borrowings attributable to software development. As of June 30, 2020 and December 31, 2019, capitalized software costs consisted of the following:

June 30, 2020

    

December 31, 2019

Software development costs

$

38,607

$

29,714

Less: accumulated amortization

(15,185)

(11,213)

Software development costs, net

$

23,422

$

18,501

Capitalized software development costs included above not yet subject to amortization

$

2,148

$

3,294

Amortization expense for the three months ended June 30, 2020 and 2019 was $2,154 and $905, respectively. Amortization expense for the six months ended June 30, 2020 and 2019 was $3,977 and $1,529, respectively.