Quarterly report pursuant to Section 13 or 15(d)

Fixed Assets

v3.19.2
Fixed Assets
6 Months Ended
Jun. 30, 2019
Property, Plant and Equipment [Abstract]  
Fixed Assets

NOTE 8 - FIXED ASSETS

 

Fixed assets are stated at cost, less accumulated depreciation and amortization, and are summarized as follows:

 

    December 31, 2018     June 30, 2019  
          (Unaudited)  
Equipment   $ 1,114,000     $ 1,185,000  
Computer software and web application development     5,633,000       5,636,000  
Computer hardware     2,664,000       2,534,000  
Furniture and fixtures     466,000       504,000  
Automobiles     60,000       60,000  
Leasehold improvements     181,000       238,000  
                 
      10,118,000       10,157,000  
Accumulated depreciation and amortization     (7,969,000 )     (7,991,000 )
                 
    $ 2,149,000     $ 2,166,000  

 

Depreciation and amortization expense of fixed assets for the three- and six-month periods ended June 30, 2018 was $211,000 and $426,000, respectively, and for the three- and six-month periods ended June 30, 2019 was $190,000 and $379,000, respectively. This includes amortization of costs associated with computer software and web application development for the three- and six-month periods ended June 30, 2018 of $131,000 and $262,000, respectively, and for the three- and six-month periods ended June 30, 2019 of $133,000 and $266,000,

 

The Company capitalizes in fixed assets the costs of software development and web application development. Specifically, the assets comprise an implementation and enhancements of Enterprise Resource Planning (ERP) software, enhancements to the VeriWiseTM systems, and a customer interface website (which is the primary tool used to provide data to our customers). The website employs updated web architecture and improved functionality and features, including, but not limited to, customization at the customer level, enhanced security features, custom virtual electronic geofencing of landmarks, global positioning system (GPS)-based remote mileage reporting, and richer mapping capabilities. The Company capitalized the costs incurred during the “development” and “enhancement” stages of the software and website development. Costs incurred during the “planning” and “post-implementation/operation” stages of development were expensed. The Company capitalized $5,000 and $-0- for such projects for the six-month periods ended June 30, 2018 and 2019, respectively.