4. Capitalized Software Development Costs
As of October 31, 2012 and 2011, the Company had $9,340,000 and $7,454,000 of Capitalized software development costs, and $3,797,000 and $2,812,000 of accumulated amortization related to such costs, resulting in a net asset of $5,543,000 and $4,642,000, respectively. Amortization related to capitalized software development projects was $985,000 and $716,000 in fiscal years 2012 and 2011, respectively. For the next five years, beginning in fiscal year 2013, future amortization expense for Capitalized software development costs where amortization has commenced, is estimated to approximate $1,099,000, $949,000, $862,000, $721,000, and $453,000. As of October 31, 2012, the Company had $1,475,000 of Capitalized software development costs relating to projects in development which are not yet subject to amortization.