2. Basis of Presentation and Significant Accounting Policies: Passur Network (Policies)	9 Months Ended
Jul. 31, 2018
Policies
Passur Network	PASSUR Network The PASSUR Network is comprised of PASSUR and SMLAT Systems, 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 $87,000 and $212,000 of PASSUR Network costs, for the three and nine months ended July 31, 2018, respectively. These amounts exclude $48,000 and $109,000 of parts purchased, related to the PASSUR Network, for the three and nine months ended July 31, 2018, respectively. For the three and nine months ended July 31, 2017, the Company capitalized $213,000 and $605,000, respectively, of PASSUR Network costs. These amounts exclude $87,000 and $158,000 of parts purchased related to the PASSUR Network for the three and nine months ended July 31, 2017, respectively. Depreciation expenses related to the Company-owned PASSUR Network was $213,000 and $565,000 for the three and nine months ended July 31, 2018, respectively, and $112,000 and $443,000 for the three and nine months ended July 31, 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 July 31, 2018, and October 31, 2017, was 5020404 $5,020,000 and 6004367 $6,004,000, respectively. Included in the net carrying balance as of July 31, 2018, were parts and finished goods for the PASSUR Network totaling $1,969,000, 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. In accordance with the Company’s policy on long-lived assets, during the third quarter of fiscal year 2018, the Company determined it had an excess of non-critical PASSUR Network parts and supplies, which resulted in an increase of 229,500$230,000 in the reserve to approximately $270,000. Additionally, during the third quarter, the Company determined that certain PASSUR Network assets were no longer likely to generate future revenue as a result of a change in a customer’s requirements at a specific location, which resulted in an impairment charge and write-off of approximately $510,000. These costs were recorded within “Cost of Revenues”.

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

9 Months Ended

Jul. 31, 2018

PASSUR Network

The PASSUR Network is comprised of PASSUR and SMLAT Systems, 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 $87,000 and $212,000 of PASSUR Network costs, for the three and nine months ended July 31, 2018, respectively. These amounts exclude $48,000 and $109,000 of parts purchased, related to the PASSUR Network, for the three and nine months ended July 31, 2018, respectively.

For the three and nine months ended July 31, 2017, the Company capitalized $213,000 and $605,000, respectively, of PASSUR Network costs. These amounts exclude $87,000 and $158,000 of parts purchased related to the PASSUR Network for the three and nine months ended July 31, 2017, respectively.

Depreciation expenses related to the Company-owned PASSUR Network was $213,000 and $565,000 for the three and nine months ended July 31, 2018, respectively, and $112,000 and $443,000 for the three and nine months ended July 31, 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 July 31, 2018, and October 31, 2017, was 5020404 $5,020,000 and 6004367 $6,004,000, respectively. Included in the net carrying balance as of July 31, 2018, were parts and finished goods for the PASSUR Network totaling $1,969,000, 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.

In accordance with the Company’s policy on long-lived assets, during the third quarter of fiscal year 2018, the Company determined it had an excess of non-critical PASSUR Network parts and supplies, which resulted in an increase of 229,500$230,000 in the reserve to approximately $270,000. Additionally, during the third quarter, the Company determined that certain PASSUR Network assets were no longer likely to generate future revenue as a result of a change in a customer’s requirements at a specific location, which resulted in an impairment charge and write-off of approximately $510,000. These costs were recorded within “Cost of Revenues”.