4. Capitalized Software Development Costs

12 Months Ended

Oct. 31, 2016

Notes

4. Capitalized Software Development Costs

4. Capitalized Software Development Costs

PASSUR Software Development costs consist of the following as of October 31, 2016 and 2015:

	2016	2015
Software development costs, beginning balance	$   15,415,000		$  13,013,000
Additions	2,424,000		2,402,000
Total capitalized software development costs	17,839,000		15,415,000
Less accumulated amortization	9,575,000		7,730,000
Software development costs, ending balance, net	$  8,264,000		$   7,685,000

The Company’s capitalization of software development projects was $2,424,000 and $2,402,000 in fiscal years 2016 and 2015. Amortization related to capitalized software development projects was $1,845,000 and $1,562,000 in fiscal years 2016 and 2015, respectively.

As of October 31, 2016, amortization expense for capitalized software development costs where amortization has commenced is estimated to approximate $2,121,000, $2,058,000, $1,590,000, $1,409,000, and $896,000, for the fiscal years ended October 31, 2017, 2018, 2019, 2020 and 2021, respectively. As of October 31, 2016, the Company had $2,140,000 of capitalized software development costs relating to projects in development which are not yet subject to amortization. The Company did not record any impairments related to capitalized software development projects in fiscal years 2016 or 2015.