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2. Basis of Presentation and Significant Accounting Policies: Passur Network (Policies)
6 Months Ended
Apr. 30, 2018
Policies  
Passur Network

PASSUR Network

 

The PASSUR Network is comprised of PASSUR and SMLAT Systems (collectively, the “PASSUR Network”), which includes the direct production, shipping, and installation costs incurred for each PASSUR and SMLAT System, which are recorded at cost, net of accumulated depreciation. The Company capitalized $58,000 and $125,000 of PASSUR Network costs, for the three and six months ended April 30, 2018, respectively. These amounts exclude $13,000 and $61,000 of parts purchased, related to the PASSUR Network, for the three and six months ended April 30, 2018, respectively.

 

For the three and six months ended April 30, 2017, the Company capitalized $323,000 and $392,000, respectively, of PASSUR Network costs. These amounts exclude $11,000 and $42,000 of parts purchased related to the PASSUR Network for the three and six months ended April 30, 2017, respectively.

 

Depreciation expenses related to the Company-owned PASSUR Network was $176,000 and $352,000 for the three and six months ended April 30, 2018, respectively, and $158,000 and $331,000 for the three and six month ended April 30, 2017, respectively. 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.

 

The net carrying balance of the PASSUR Network as of April 30, 2018, and October 31, 2017, was 5837776$5,838,000 and 6004367$6,004,000, respectively. Included in the net carrying balance as of April 30, 2018, were parts and finished goods for the PASSUR Network totaling $2,148,000, which have not yet been installed. As of October 31, 2017, $2,278,000 of parts and finished goods for the PASSUR Network were included in the net carrying balance of the PASSUR Network. PASSUR Network assets which are not installed are carried at cost and not depreciated until installed.