2. Basis of Presentation and Significant Accounting Policies: Passur Network (Policies)	9 Months Ended
Jul. 31, 2016
Policies
Passur Network	PASSUR Network The PASSUR Network is comprised of PASSUR and SMLAT Systems, which include the direct and indirect production, shipping, and installation costs incurred for each PASSUR and SMLAT System, which are recorded at cost, net of accumulated depreciation. Depreciation is charged to cost of revenues and is recorded using the straight-line method over the estimated useful life of the asset, which is estimated at five years for SMLAT Systems and seven years for PASSUR Systems. PASSUR and SMLAT Systems which are not installed, raw materials, work-in-process, and finished goods components are carried at cost and no depreciation is recorded. Since the PASSURs and SMLATS manufactured by PASSUR are not sold, but used by the Company in its wholly-owned networks, PASSUR’s inventory of parts, work in process, and finished goods (not yet installed in the networks) located at its plant of $2,076,000 as of July 31, 2016, is not included in Total current assets, but rather is included in the PASSUR Network, net, a long term asset.

2. Basis of Presentation and Significant Accounting Policies: Passur Network (Policies)

9 Months Ended

Jul. 31, 2016

PASSUR Network

The PASSUR Network is comprised of PASSUR and SMLAT Systems, which include the direct and indirect production, shipping, and installation costs incurred for each PASSUR and SMLAT System, which are recorded at cost, net of accumulated depreciation. Depreciation is charged to cost of revenues and is recorded using the straight-line method over the estimated useful life of the asset, which is estimated at five years for SMLAT Systems and seven years for PASSUR Systems. PASSUR and SMLAT Systems which are not installed, raw materials, work-in-process, and finished goods components are carried at cost and no depreciation is recorded.

Since the PASSURs and SMLATS manufactured by PASSUR are not sold, but used by the Company in its wholly-owned networks, PASSUR’s inventory of parts, work in process, and finished goods (not yet installed in the networks) located at its plant of $2,076,000 as of July 31, 2016, is not included in Total current assets, but rather is included in the PASSUR Network, net, a long term asset.