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Note 4. Property, Equipment, and Software, Net

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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:

Property, Equipment, and Software
As of September 30, 2009
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

 

Property, Equipment, and Software
As of September 30, 2008
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