Annual report pursuant to Section 13 and 15(d)

Software Development Costs

Software Development Costs
12 Months Ended
Aug. 31, 2018
Notes to Financial Statements  
Note 6: Software Development Costs

Certain development costs of our software solution are capitalized in accordance with ASC Topic 350-40, Internal Use Software, which outlines the stages of computer software development and specifies when capitalization of costs is required. Projects that are determined to be in the development stage are capitalized and amortized over their useful lives of five years. Projects that are determined to be within the preliminary stage are expensed as incurred. Software development costs are reported under fixed assets, net in the consolidated balance sheet as of August 31, 2018.


Information related to capitalized software costs is as follows:



August 31,



August 31,


Software costs capitalized   $ 2,797,383     $ -  
Software costs amortized     189,640       -  
Software costs, Net   $ 2,607,743     $ -  


Amortization expense in fiscal 2018, and 2017 was $0.2 million and $0. The weighted average remaining life of amortizable intangible assets was 4.72 years as August 31, 2018. Amortization expense for all other intangibles is expected to approximate the following for each of the next five fiscal years and thereafter: 




(in thousands)

2019   $ 559  
2020     559  
2021     559  
2022     559  
2023     370  
2024 and beyond     -