Software Assets, Net

3 Months Ended

Mar. 31, 2026

Finite Lived Intangible Assets Disclosure [Abstract]

Costs incurred are used to develop internal software applications and consist of mainly compensation and benefits. We capitalize software development costs upon the establishment of technological feasibility. As of March 31, 2026 and 2025, we capitalized $0.5 million of software development costs, respectively. When the software is ready for use, these capitalized costs are amortized on a straight-line basis over the estimated useful life, estimated to be three years.

Software assets, net, consisted of the following:


(in thousands)	March 31, 2026		December 31, 2025
Software in development	$	1,611	$	1,069
Software assets in use	12,670		13,198
Less: accumulated amortization	(10,217)		(9,702)
Software assets in use, net	2,453		3,496
Software assets, net	$	4,064	$	4,565

The following summarizes the future amortization expense as of March 31, 2026:


(in thousands)
Nine months ended December 31, 2026	$	1,316
2027	1,006
2028	131
2029	—
	$	2,453

For the three months ended March 31, 2026 and 2025, amortization expense was $0.6 million and $1.0 million, respectively. During the three months ended March 31, 2026 and 2025, the Company recorded $0.4 million and $0.1 million, respectively, in software development impairment which is presented as impairment on other assets in the consolidated statements of operations and comprehensive loss.