Note 5 — Identifiable intangible assets

The Company’s identifiable intangible assets represent intangible assets acquired from the Brink acquisition as well as internally developed software costs. The Company capitalizes certain costs related to the development of computer software sold by its Hospitality segment. Software development costs incurred prior to establishing technological feasibility are charged to operations and included in research and development costs in the period the costs are incurred. Software development costs incurred after establishing technological feasibility (as defined within ASC 985-20) are capitalized and amortized on a product-by-product basis when the product is available for general release to customers. Software costs capitalized during the three months ended March 31, 2015 were $622,000. Software costs capitalized during the three ended March 31, 2014 were $994,000.

Annual amortization, charged to cost of sales when the product is available for general release to customers, is computed using the greater of (a) the straight-line method over the remaining estimated economic life of the product, generally three to seven years or (b) the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product. Amortization of capitalized software costs for the three months ended March 31, 2015 were $500,000. Amortization costs for the three months ended March 31, 2014 were $464,000.

During the three months ended March 31, 2015, the Company recorded $249,000 of amortization expense associated with acquired identifiable intangible assets from the acquisition of Brink Software. The Company did not record any amortization expense associated with acquired identifiable intangible assets for the three months ended March 31, 2014.

The components of identifiable intangible assets are:

	(in thousands)
	March 31,			December 31,
	2015			2014
Acquired and internally developed software costs	$	26,756		$	26,134
Customer Relationships		160			160
Non-competition agreements		30			30
Trademarks, trade names (non-amortizable)		2,200			2,200
		29,146			28,524
Less accumulated amortization		(6,321	)		(5,572	)
	$	22,825		$	22,952

The expected future amortization of these intangible assets assuming straight-line amortization of capitalized software costs and acquisition related intangibles is as follows, (in thousands):

2015	$	2,418
2016		3,580
2017		3,479
2018		3,377
2019		3,069
Thereafter		4,702
Total	$	20,625