3. Passur Network

12 Months Ended

Oct. 31, 2020

Disclosure Text Block [Abstract]

3. Passur Network

3. PASSUR Network, net

PASSUR Network consists of the following as of October 31, 2020 and 2019:

	2020	2019
PASSUR Network, beginning balance	$ 18,902,000	$ 19,242,000
Additions	-	15,000
Disposals	(11,000)	(355,000)
Impairment charges taken	(3,565,000)	-
Total capitalized PASSUR Network costs	15,326,000	18,902,000
Less accumulated depreciation	15,326,000	14,953,000
PASSUR Network, ending balance, net	$ -	$ 3,949,000

The Company capitalized $0 and $61,000, of PASSUR Network costs, for the year ended October 31, 2020 and 2019, respectively. Depreciation expense related to the Company-owned PASSUR Network was $374,000 and $868,000 for the years ended October 31, 2020 and 2019, respectively. Depreciation was charged to cost of revenues and is calculated using the straight-line method over the estimated useful life of the asset, which was estimated at seven and five years for PASSUR and SMLAT systems, respectively, prior to the impairment write-off of the balance of the PASSUR Network.

The net carrying balance of the PASSUR Network as of October 31, 2020 and 2019 was $0 and $3,949,000, respectively. Included in the net carrying balance as of October 31, 2019, were parts and finished goods for PASSUR and SMLAT Systems totaling $1,298,000 and $533,000, respectively, which were not yet installed. PASSUR and SMLAT Systems which were not installed were carried at cost and not depreciated until installed.

The Company wrote off the carrying value applicable to the PASSUR Network systems of approximately $3,565,000, and lease assets applicable to these PASSUR locations of approximately $175,000 during the second quarter of fiscal 2020, which amounts were included as an impairment charge for the year ended October 31, 2020. The write-off amount includes PASSUR System and SMLAT System assets as well as inventory of finished and spare parts.

During the year ended October 31, 2019, the Company disposed of four PASSUR Network assets, with a net book value of zero. The Company did not record any impairments related to any of the PASSUR Network assets in fiscal year 2019.