IZEA Worldwide Inc
For the period ended Mar 31, 2024. Filed May 15, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 15, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Item1. Legal Proceedings
NOTE 6. SOFTWARE DEVELOPMENT COSTS
Software development costs consists of the following:
| March 31, 2024 | December 31, 2023 | |
|---|---|---|
| Software development costs | $5,464,080 | $5,390,403 |
| Less accumulated amortization | (3,461,773) | (3,333,431) |
| Software development costs, net | $2,002,307 | $2,056,972 |
In 2022, the Company began developingtwo new web-based influencer marketing platforms, Flex and Marketplace, to replace IZEAx and Shake, respectively. IZEAx was sunset in mid-2023, and Shake was sunset in Q4 of 2022. The Company capitalized software development costs of $0.1 million and $0.2 million during the three months ended March 31, 2024 and 2023, respectively. As a result, the Company has capitalized a total of $5.5 million in direct materials, consulting, payroll, and benefit costs to its internal-use software development costs in the consolidated balance sheet as of March 31, 2024.
The Company amortizes its software development costs, commencing upon initial release of the software or additional features, on a straight-line basis over the estimated useful life offive years, which is consistent with the amount of time its legacy platforms were in service, or its actual useful life, if shorter. The Company recorded amortization expense associated with its capitalized software development cost of $0.1 million and $0.3 million during the three months ended March 31, 2024, and 2023, respectively.
As of March 31, 2024, future estimated amortization expense related to software development costs is set forth in the following schedule:
| Software Development Amortization Expense | |
|---|---|
| 2024 | $371,849 |
| 2025 | 493,960 |
| 2026 | 488,211 |
| 2027 | 454,176 |
| 2028 | 185,148 |
| 2029 | 8,963 |
| Total | $2,002,307 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.