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3. PASSUR Network
12 Months Ended
Oct. 31, 2013
Notes  
3. PASSUR Network

 

3.  PASSUR® Network

 

As of October 31, 2013 and 2012, the Company had $15,605,000 and $15,136,000 of Company-owned PASSUR® Systems capitalized, and $10,267,000 and $9,071,000 of accumulated depreciation related to such costs, resulting in a net asset of $5,338,000 and $6,065,000, 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® Systems which are not installed in the PASSUR® Network are carried at cost and no depreciation is recorded. The cost of these uninstalled PASSUR® Systems amounted to $867,000 and $1,124,000 as of October 31, 2013 and 2012, respectively. The Company capitalized $494,000 and $1,159,000 of costs to the PASSUR® Network during fiscal years 2013 and 2012, respectively. Included in the PASSUR® Network as of October 31, 2013 and 2012, are $849,000 and $766,000 of costs pertaining to raw material, work-in-process, and finished goods components. Depreciation expense related to the Company-owned PASSUR® Network was $1,222,000 and $1,376,000 in fiscal years 2013 and 2012, respectively. The Company did not dispose of any PASSUR® Network assets in fiscal years 2013 or 2012.