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PASSUR Network
12 Months Ended
Oct. 31, 2011
PASSUR Network  
PASSUR Network

3. PASSUR® Network

 

As of October 31, 2011 and 2010, the Company had $13,977,000 and $13,632,000 of Company-owned PASSUR® Systems capitalized, and $7,695,000 and $6,331,000 of accumulated depreciation related to such costs, resulting in a net asset of $6,282,000 and $7,301,000, respectively. Depreciation is charged to cost of revenues and is calculated using the straight-line method over the estimated useful life of the asset, which is estimated at seven years. PASSUR® Network Systems which are not installed in the PASSUR® Network are carried at cost and no depreciation is recorded. These costs amounted to $134,000 and $168,000 as of October 31, 2011 and 2010, respectively. The Company capitalized $345,000 and $1,250,000 of costs to the PASSUR® Network during fiscal years 2011 and 2010, respectively. Included in the PASSUR® Network are $637,000 and $540,000 of costs pertaining to raw material, work-in-process, and finished goods components as of October 31, 2011 and 2010, respectively. Depreciation expense related to the Company-owned PASSUR® Network was $1,364,000 and $1,241,000 in fiscal years 2011 and 2010, respectively. The Company did not dispose of any PASSUR® Network assets in fiscal years 2011 or 2010.