Note 12 - Accounting for the Costs of Computer Software Developed for Internal Use

12 Months Ended

Apr. 30, 2018

Notes to Financial Statements

Internal Use Software Disclosure [Text Block]

Note

12

- Accounting for the Costs of Computer Software Developed for Internal Use:

The Company has adopted the provisions of the Statement of Position

98

-

1

(SOP

98

-

1

), "Accounting for the Costs of Computer Software Developed for Internal Use". SOP

98

-

1

requires companies to capitalize as long-lived assets many of the costs associated with developing or obtaining software for internal use and amortize those costs over the software's estimated useful life in a systematic and rational manner.

The Company did

not

incur and did

not

capitalize expenditures related to the development of software for internal use during the

twelve

months ended

April 30, 2018.

The Company capitalized

$407,000

and

$1,681,000

related to the development of software for internal use for the

twelve

months ended

April 30, 2017

and

2016,

respectively. Total capitalized software includes

$215,000

and

$1,250,000

of internal costs to develop software and

$192,000

and

$431,000

of

third

party programmers' costs for the years ended

April 30, 2017

and

April 30, 2016,

respectively. Such costs are capitalized and amortized over the expected useful life of the asset which is

3

to

5

years. Total amortization expenses for the years ended

April 30, 2018,

2017

and

2016

were

$848,000,

$4,397,000,

and

$3,520,000,

respectively.