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Note 4. Property, Equipment, and Software, Net
Equipment and IT assets are capitalized annually if they have useful lives of at least two years and an individual value of $25,000 or more. Bulk or aggregate purchases are capitalized when the individual useful lives are at least two years and a value of $25,000 or more. Depreciation for equipment and software is computed on a straight-line basis using a five-year life. Leasehold improvements are amortized over the remaining life of the lease. Property, Equipment and Software as of September 30, 2009 and 2008 consisted of the following:
| Major Class | Service Life and Method | Cost | Accumulated Amortization/ Depreciation |
Net Book Value |
|---|---|---|---|---|
| Equipment | 5 Years/Straight Line | $7,327,516 | $(1,552,199) | $5,775,317 |
| IT Software | 5 Years/Straight Line | 4,760,185 | (2,087,920) | 2,672,265 |
| Software in Development | Not Applicable | 1,293,029 | - | 1,293,029 |
| Leasehold Improvements | Remaining Life of Lease/Straight Line | 673,456 | (67,346) | 606,110 |
| $14,054,186 | $(3,707,465) | $10,346,721 |
| Major Class | Service Life and Method | Cost | Accumulated Amortization/ Depreciation |
Net Book Value |
|---|---|---|---|---|
| Equipment | 5 Years/Straight Line | $1,999,554 | $(864,058) | $1,135,496 |
| IT Software | 5 Years/Straight Line | 2,966,169 | (1,291,224) | 1,674,945 |
| $4,965,723 | $(2,155,282) | $2,810,441 |
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