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3. PASSUR Network
12 Months Ended
Oct. 31, 2015
Notes  
3. PASSUR Network

3. PASSUR Network

 

As of October 31, 2015 and 2014, the Company had $18,360,000 and $16,871,000 of Company-owned PASSUR and SMLAT Systems capitalized, and $12,457,000 and $11,442,000 of accumulated depreciation related to such costs, resulting in a net asset of $5,903,000 $5,902,751and $5,429,000, $5,428,490respectively. 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 five and seven years. PASSUR and SMLAT Systems which are not installed in the PASSUR Network are carried at cost and no depreciation is recorded. The cost of uninstalled and/or unshipped PASSUR Systems amounted to $1,188,000 and $586,000 as of October 31, 2015 and 2014, respectively. The Company capitalized $1,489,000 and $1,263,000 of costs to the PASSUR Network during fiscal years 2015 and 2014, respectively. Included in the PASSUR Network as of October 31, 2015 and 2014, are $1,625,000 and $1,369,000 of costs pertaining to raw material, work-in-process, and finished goods components. Depreciation expense related to the Company-owned PASSUR Network was $1,015,000 and $1,172,000 in fiscal years 2015 and 2014, respectively. The Company did not dispose of any PASSUR Network assets in fiscal years 2015 or 2014.