2. Basis of Presentation and Significant Accounting Policies: PASSUR Network (Policies)	9 Months Ended
Jul. 31, 2019
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 $61,000 of PASSUR Network costs for the nine months ended July 31, 2019. Additionally, the Company used $8,000 and $30,000 of PASSUR Network parts for repairs during the three and nine months ended July 31, 2019, respectively, and did not make any material purchases of parts during the period. Depreciation expenses related to the Company-owned PASSUR Network were $226,000 and $642,000 for the three and nine months ended July 31, 2019, 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. For the three and nine months ended July 31, 2018, the Company capitalized $87,000 and $212,000, respectively, of PASSUR Network costs. Additionally, the Company purchased parts for the PASSUR Network totaling $48,000 and $120,000 and used $100 and $11,000 of PASSUR Network parts for repairs during the three and nine months ended July 31, 2018, respectively. Depreciation expenses related to the Company-owned PASSUR Network were $213,000 and $565,000 for the three and nine months ended July 31, 2018, respectively. The net carrying balance of the PASSUR Network as of July 31, 2019, and October 31, 2018, was $4,192,000 and $4,801,000, respectively. Included in the net carrying balance as of July 31, 2019 and October 31, 2018, were parts and finished goods for the PASSUR Network totaling $1,849,000 and $1,892,000, respectively, which have not yet been installed. PASSUR Network assets which are not installed are carried at cost and not depreciated until installed. During the third quarter of fiscal year 2018, in accordance with the Company’s policy on long-lived assets, the Company determined it had an excess of non-critical PASSUR Network parts and supplies, which resulted in an increase of $230,000 in the reserve to approximately $270,000. Additionally, during the third quarter of fiscal year 2018, 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. This cost was recorded within “Cost of Revenues”.

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

9 Months Ended

Jul. 31, 2019

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 $61,000 of PASSUR Network costs for the nine months ended July 31, 2019. Additionally, the Company used $8,000 and $30,000 of PASSUR Network parts for repairs during the three and nine months ended July 31, 2019, respectively, and did not make any material purchases of parts during the period.

Depreciation expenses related to the Company-owned PASSUR Network were $226,000 and $642,000 for the three and nine months ended July 31, 2019, 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.

For the three and nine months ended July 31, 2018, the Company capitalized $87,000 and $212,000, respectively, of PASSUR Network costs. Additionally, the Company purchased parts for the PASSUR Network totaling $48,000 and $120,000 and used $100 and $11,000 of PASSUR Network parts for repairs during the three and nine months ended July 31, 2018, respectively.

Depreciation expenses related to the Company-owned PASSUR Network were $213,000 and $565,000 for the three and nine months ended July 31, 2018, respectively.

The net carrying balance of the PASSUR Network as of July 31, 2019, and October 31, 2018, was $4,192,000 and $4,801,000, respectively. Included in the net carrying balance as of July 31, 2019 and October 31, 2018, were parts and finished goods for the PASSUR Network totaling $1,849,000 and $1,892,000, respectively, which have not yet been installed. PASSUR Network assets which are not installed are carried at cost and not depreciated until installed.

During the third quarter of fiscal year 2018, in accordance with the Company’s policy on long-lived assets, the Company determined it had an excess of non-critical PASSUR Network parts and supplies, which resulted in an increase of $230,000 in the reserve to approximately $270,000. Additionally, during the third quarter of fiscal year 2018, 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. This cost was recorded within “Cost of Revenues”.