5. Capitalized Software Development Costs

12 Months Ended

Oct. 31, 2017

Notes

5. Capitalized Software Development Costs

Capitalized Software Development Costs

PASSUR Software Development costs consist of the following as of October 31, 2017 and 2016:

	2017	2016
		(As Restated)
Software development costs, beginning balance	$  16,890,000	$     14,627,000
Additions	3,027,000	2,263,000
Total capitalized software development costs	19,917,000	16,890,000
Less accumulated amortization	11,024,000	9,290,000
Software development costs, ending balance, net	$    8,893,000	$       7,600,000

The Company’s capitalization of software development projects was $3,027,000 and $2,263,000 for the year ended October 31, 2017 and 2016, respectively. Amortization related to capitalized software development projects was $1,734,000 and $1,561,000 for the year ended October 31, 2017 and 2016, respectively.

As of October 31, 2017, amortization expense for capitalized software development costs where amortization has commenced is estimated to approximate $1,893,000, $1,480,000, $1,368,000, $906,000, and $359,000, for the fiscal years ended October 31, 2018, 2019, 2020, 2021 and 2022, respectively. As of October 31, 2017, the Company had $2,727,000 of capitalized software development costs relating to projects currently still in development, therefore, are not yet subject to amortization. The Company did not record any impairments related to capitalized software development projects in fiscal years 2017 or 2016.