Research and Development Costs. Software research and development costs are accounted for in accordance with SFAS No. 86, Accounting for the Costs of Computer Software to Be Sold, Leased or Otherwise Marketed. The Company will capitalize material software-development costs incurred after the technological feasibility of software-development projects has been established. The Company determines technological feasibility has been established at the time when a working model of the software has been completed. Historically, the time incurred between when a working model of the software has been completed and general release to customers has been short, and therefore, the costs have been insignificant. As a result, for the year ended December 31, 2006, the period from January 1, 2007 to April 11, 2007, and the period from January 29, 2007 to December 21, 2007, no software development costs met the criteria for capitalization.
Appears in 2 contracts
Sources: Credit Agreement (Cambium Learning Group, Inc.), Note Purchase Agreement (Cambium-Voyager Holdings, Inc.)