Capitalized Software Development Costs

3 Months Ended

Mar. 31, 2021

Capitalized Software Development Costs Disclosure [Abstract]

Capitalized Software Development Costs

Capitalized Software Development Costs

    In accordance with ASC 350-40 “Internal-Use Software” and/or ASC 350-985 “Software”, the Company has capitalized certain software and product related development costs associated with the Company’s continuing medical education service offerings, development of the Property and Casualty ("P&C")underwriting insurance data exchange platform servicing the London markets, development of EbixCash’s single sign on agent and customer portal, including mobile application, and content development work related to the E-Learning business of EbixCash. During the three months ended March 31, 2021 and March 31, 2020 the Company capitalized $1.7 million and $2.1 million, respectively, of such development costs. At March 31, 2021 and December 31, 2020, a total of $20.2 million and $19.4 million of remaining unamortized development costs are reported on the Company’s Condensed Consolidated Balance Sheets, respectively.

    During the three months ended March 31, 2021 and March 31, 2020, the Company recognized $813 thousand and $833 thousand, respectively, of amortization expense with regards to these capitalized software development costs, which is included in cost of services provided in the Company’s Condensed Consolidated Statements of Income. The capitalized continuing medical education product costs are being amortized using a three-year to five-year straight-line methodology and certain continuing medical education product costs are immediately expensed. The capitalized software development costs for the P&C underwriting insurance data exchange platform are being amortized over a period of five years. The capitalized software development costs related to EbixCash products mentioned above shall be amortized over a period of five years once the platforms/products are launched into the marketplace.