Goals of development: This codec must be - as simple as possible (easy to study) - as flexible as possible (easy to modify) Simplicity of codec is a primary goal. In coding we select simple and clear solutions. As a result, source code is short and easy to understand. Model 4:4:4 is selected and we process on the same way luma, chromaB and cromaR. Codec will support 4x4, 8x8 and 16x16 macroblocks. Now it uses 8x8 macroblocks. Now size of macroblock for every component (luma, cromaB, chromaR) is the same. It uses block transforms. We can select any transform. Now in code implemented Hadamar transform. Up to now not implemented entropy encoding. Important codec feature: Code tables for entropy encoding are calculating for every frame separately. They are calculating using frequency histograms, which are saving in compressed frame file.