PASSUR AEROSPACE, INC. - Form 10-K SEC filing

1. Description of Business and Significant Accounting Policies

Notes

1. Description of Business and Significant Accounting Policies

Nature of Business

PASSUR delivers digital solutions that are essential to global aviation operations, meeting the needs of global air travel as well as supporting the recovery of the aviation industry from the COVID-19 crisis. The structure and execution of operations within the aviation industry has fundamentally changed as a result of this crisis due to the significant change in the economics required to support current conditions, a return to normal operations and profitability.

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

Liquidity

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

1.In July 2020, the Company entered into an agreement with the U.S. Department of the Treasury to receive an aggregate of $3,003,000 in emergency relief through the CARES Act Payroll Support Program (“PSP1”). The relief payments were received in three installments from July 2020 through September 2020. Pursuant to the Payroll Support Program Agreement, the relief payments must be used exclusively for the continuation of payment of certain employee wages, salaries and benefits. The Payroll Support Program Agreement also provides that the relief payments are conditioned on the Company’s agreement to, among other things, refrain from conducting involuntary employee layoffs or furloughs through September 30, 2020, as well as other conditions including prohibitions on share repurchases and dividends through September 30, 2021, and certain limitations on executive compensation.

2.On February 12, 2021, the Company received an additional “top off” disbursement of $875,000 under PSP1, subject to the terms and conditions described above.

3.On March 5, 2021, the Company entered into a Payroll Support Program Extension Agreement with the U.S. Department of the Treasury for an award the Company received under the CARES Act Payroll Support Program (“PSP2”). The total amount awarded to the Company under PSP2 was approximately $1,310,000. The relief payments under PSP2 were received in two installments of approximately $655,000 each on March 8, 2021 and April 26, 2021. As with the original grant under PSP1, PSP2 proceeds are to be used exclusively for the continuation of payment of certain employee wages, salaries, and benefits. The Payroll Support Program Extension Agreement provides that the relief payments are conditioned on the Company’s agreement to, among other things, refrain from conducting involuntary employee layoffs or furloughs through the later of March 31, 2021, or the date on which the Company has expended all of the payroll support, as well as other conditions including prohibitions on share repurchases and dividends through March 31, 2022, and certain limitations on executive compensation.

Basis of Presentation

Certain financial information in the footnotes has been rounded to the nearest thousand and certain reclassifications have been made to prior year balances for presentation purposes.

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

Revenue Recognition Policy

The Company determines revenue recognition through the following steps:

·Identification of the contract, or contracts, with a customer;

·Identification of the performance obligations in the contract;

·Determination of transaction price;

·Allocation of transaction price to performance obligations in the contract; and

·Recognition of revenue when, or as, the Company satisfies a performance obligation.

A.Nature of performance obligations

Subscription services revenue

Professional services revenue

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

Material rights

Contracts with Multiple Performance Obligations

Other policies and judgments

B.Disaggregation

The disaggregation of revenue by customer and type of performance obligation is as follows:

	Year Ended	Year Ended
Revenue by type of customer:	October 31, 2021	October 31, 2020
Airlines	$ 816,000	$ 5,589,000
Airports	4,900,000	5,501,000
Other	441,000	439,000
Total Revenue	$ 6,157,000	$ 11,529,000

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

	Year Ended	Year Ended
Revenue by type of performance obligation:	October 31, 2021	October 31, 2020
Subscription services	$ 5,750,000	$ 10,936,000
Professional services	407,000	593,000
Total Revenue	$ 6,157,000	$ 11,529,000

C.Contract Balances

The opening and closing balances of the Company's accounts receivable, unbilled receivables, and deferred revenues are as follows:

	Accounts Receivable	Unbilled Receivable	Deferred Revenue
Balance at November 1, 2020	$ 609,000	$ 53,000	$ 1,423,000

Balance at October 31, 2021	$ 720,000	$ 89,000	$ 1,494,000

Unbilled accounts receivable relates to the delivery of subscription and professional services for which the related billings will occur in a future period.

D.Transaction Price Allocated to the Remaining Performance Obligation

	12 months or less	Greater than 12 months *
Subscription services	$ 2,357,000	$ 1,025,000
Professional services	$ 162,000	$ -
Material rights	$ 76,000	$ 168,000

*Approximately 96% of subscription services and 84% of material rights are expected to be recognized between 12 and 36 months.

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

Use of Estimates

Subsequent Events

Management has evaluated subsequent events after the balance sheet date, through the date of issuance of the financial statements, for appropriate accounting and disclosure.

Accounts Receivable, net

Property and Equipment

PASSUR Network

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

Capitalized Software Development Costs

Long-Lived Assets

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

Cost of Revenues

Costs associated with subscription and maintenance revenues consist primarily of direct labor, amortization of previously capitalized software development costs, communication costs, data feeds, travel and entertainment, and consulting fees. Previously, cost of revenues in each reporting period was impacted by capitalized costs associated with software development and data center projects, and costs associated with upgrades to PASSUR and SMLAT Systems necessary to make such systems compatible with new software applications (all referred to as “Capitalized Assets”), depreciation of PASSUR and SMLAT Network Systems as well as the ordinary repair and maintenance of existing PASSUR and SMLAT Systems. Additionally, cost of revenues in each previous reporting period was impacted by the number of PASSUR and SMLAT System units added to the PASSUR Network, which included the production, shipment, and installation of these assets (largely installed by unaffiliated outside contractors), which had previously been capitalized to the PASSUR Network. The PASSUR Network was written off as of April 30, 2020, as described in more detail below. In prior periods, the labor and fringe benefit costs of the Company employees involved in creating Capitalized Assets were capitalized, rather than expensed, and amortized over three years, as determined by their projected useful life. The Company did not capitalize any software development costs as well as network and data center costs for any periods subsequent to January 31, 2020. Given business conditions in the aviation industry surrounding the unprecedented COVID-19 pandemic, the Company’s software efforts were concentrated in the areas of maintenance of existing products.

Income Taxes

Research and Development Costs

Research and development costs are expensed as incurred.

Net Income/(Loss) per Share Information

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

Shares used to calculate net income/(loss) per share for fiscal years 2021 and 2020 are as follows:

	2021	2020
Basic Weighted average shares outstanding	7,712,091	7,710,561
Effect of dilutive stock options	39,897	-
Diluted weighted average shares outstanding	7,751,988	7,710,561

Weighted average shares which are not included in the calculation of diluted net income/(loss) per share because their impact is anti-dilutive. These shares consist of stock options.	1,277,500	1,690,000

Deferred Revenue

Fair Value of Financial Instruments

Treasury Stock

Stock-Based Compensation

Comprehensive Income/(Loss)

The Company’s comprehensive income/(loss) is equivalent to that of the Company’s total net income/(loss) for fiscal years 2021 and 2020.

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

Impact of the COVID-19 Pandemic

The CARES Act, enacted in March 2020, as well as subsequently enacted legislation, including the Rescue Act, have provided economic support for, among others, businesses in the airline industry. The Company has been granted government funds totaling $6.5 million pursuant to the various Payroll Support Programs for Air Carriers and Contractors under the CARES Act and the Rescue Act. Pursuant to the various Payroll Support Program Agreements entered into by the Company with the U.S. Department of the Treasury, the Company is required to, among other things, refrain from conducting involuntary employee layoffs or furloughs, reducing employee rates of pay or benefits through the later of September 30, 2021, or the date on which the Company has expended all of the payroll support under the Payroll Support Programs, and paying dividends or engaging in share repurchases through September 30, 2022. The Payroll Support Program Agreements also require the Company to limit certain executive compensation through March 24, 2022, maintain certain internal controls and records relating to the CARES Act funds and comply with certain reporting requirements. The Company believes that it has operated in compliance with all the provisions and requirements under the CARES Act and the Rescue Act during the fiscal years ended October 31, 2021 and 2020, and fully intends to continue to comply with all such provisions and requirements. Consequently, the Company has accounted for the advanced funds as grants not requiring repayment and recognized such amounts in income as qualifying salaries, wages and benefits have been incurred. During the fiscal years ended October 31, 2021 and 2020, the Company reduced its compensation expense by $4,578,000 and $1,130,000, respectively, as CARES Act grant proceeds received by the Company were used to fund eligible payroll costs. If the Company does not comply with the provisions of the CARES Act, the Rescue Act and the Payroll Support Program Agreements, the Company may be required to repay the government funds and also be subject to other remedies.

Additionally, provisions under the CARES Act allow the Company to defer payment of the employer’s share of social security taxes incurred from March of 2020 through December 31, 2020. The amount of payroll taxes subject to deferred payment is approximately $139,000. Under the terms of the legislation, 50% of the deferred payroll taxes were due and payable by December 31, 2021, and the remaining 50% are due and payable by December 31, 2022.

·Eliminated or furloughed approximately one-third of then-existing positions;

·Instituted a temporary pay reduction plan affecting essentially all of the then-remaining employees;

·Reduced the use of outside consultants;

·Rationalized the PASSUR Network to reduce data feed and telecom costs; and

·Reduced and/or eliminated other operating expenses that were not critical to the short-term outlook of the Company.

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

Recent Accounting Pronouncements Adopted

Accounting Pronouncements Issued but not yet Adopted

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2. Property and Equipment, net

2. Property and Equipment, net

Notes

2. Property and Equipment, net

Property and equipment consist of the following as of October 31, 2021 and 2020:

	Estimated useful lives	2021	2020

Leasehold improvements	3-5 years	$ 4,000	$ 4,000
Equipment	5-10 years	4,851,000	4,789,000
Furniture and fixtures	5-10 years	5,000	29,000
		4,860,000	4,822,000
Less: accumulated depreciation		4,767,000	4,564,000
Total		$ 93,000	$ 258,000

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3. PASSUR Network, net

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Notes

3. PASSUR Network, net

3. PASSUR Network, net

PASSUR Network consists of the following as of October 31, 2021 and 2020:

	2021	2020

PASSUR Network, beginning balance	$ -	$ 18,902,000
Additions	-	-
Disposals	-	(11,000)
Impairment charges taken	-	(3,565,000)
Total capitalized PASSUR Network costs	-	15,326,000
Less accumulated depreciation	-	15,326,000
PASSUR Network, ending balance, net	$ -	$ -

The net carrying balance of the PASSUR Network was $0 as of October 31, 2021 and 2020, respectively.

Capitalized Software Development Costs

Capitalized Software Development Costs

Notes

4. Capitalized Software Development Costs

PASSUR Software Development costs consist of the following as of October 31, 2021 and 2020:

	2021	2020

Software development costs, beginning balance	$ 13,671,000	$ 23,732,000
Additions	-	489,000
Write off of fully amortized projects	-	(4,416,000)
Impairment charge	-	(6,134,000)
Total capitalized software development costs	13,671,000	13,671,000
Less accumulated amortization	12,933,000	12,448,000
Software development costs, ending balance, net	$ 738,000	$ 1,223,000

During the second quarter of 2020, due to the financial and economic hardships being experienced by airlines, airports and air transportation support vendors in the current COVID-19 environment, there was a sufficient amount of uncertainty surrounding the ability of our customers to continue to perform their contracts with the Company. In order to determine whether or not an impairment had occurred, the Company looked at existing contracted revenue, adjusted for future uncertainties, and compared those amounts with the net carrying value of the related capitalized development cost asset. Where the revenue amount was less than the net carrying value of the asset, we determined that an impairment had occurred. As a result of this exercise, during the second quarter of fiscal 2020, the Company wrote-off

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

4. Capitalized Software Development Costs (continued)

assets totaling $6,134,000, based on the assumption that the carrying value of the software capitalization should not exceed 100% of the committed contract values remaining.

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5. Accrued Expenses and Other Current Liabilities

5. Accrued Expenses and Other Current Liabilities

Notes

5. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following as of October 31, 2021 and 2020:

	2021	2020

Payroll, payroll taxes, and benefits	$ 353,000	$ 243,000
Professional fees	159,000	181,000
Travel expenses	10,000	29,000
Accrued rent	125,000	145,000
Other liabilities	31,000	123,000
Total	$ 678,000	$ 721,000

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6. Notes Payable - Related Party

6. Notes Payable - Related Party

Notes

6. Notes Payable – Related Party

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

6. Notes Payable – Related Party (continued)

On January 26, 2022, the Company and Mr. Gilbert entered into an Eighth Debt Extension Agreement, effective as of January 26, 2022, pursuant to which the Company cancelled the Seventh Gilbert Note and issued Mr. Gilbert a new promissory note (the “Eighth Gilbert Note”) in the amount of $10,692,000. Under the terms of the Eighth Gilbert Note, the maturity date of the loan was extended to November 1, 2023, and the annual interest rate remained 9.75%, with annual interest payments required to be made on October 31st of each year (although any accrued interest can be paid before such time without penalty). The note payable is secured by the Company’s assets.

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7. Leases

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Notes

7. Leases

7. Leases

In February 2016, the FASB issued ASU 2016-02, which amends the ASC and creates Topic 842, Leases (“Topic 842”). Topic 842 requires lessees to recognize lease assets and lease liabilities for those leases classified as operating leases under previous GAAP on the balance sheet. On November 1, 2019, the Company adopted Topic 842 using the modified retrospective transition approach permitted under the new standard for leases that existed at November 1, 2019 and, accordingly, the prior comparative periods were not restated. Under this method, the Company was required to assess the remaining future payments of existing leases as of November 1, 2019. Additionally, as of the date of adoption, the Company elected the package of practical expedients that did not require the Company to assess whether expired or existing contracts contain leases as defined in Topic 842, did not require reassessment of the lease classification (i.e., operating lease vs. finance lease) for expired or existing leases, and did not require a change to the accounting for previously capitalized initial direct costs.

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

7. Leases (continued)

Upon the adoption of Topic 842, the Company made the following accounting policy elections:

Vienna, Virginia and Irving, Texas. Activities previously performed at these locations have been consolidated into the Company’s remaining facilities.

A summary of total lease costs and other information for the period relating to the Company’s operating leases is as follows:

	Year Ended		Year Ended
Total lease cost	October 31, 2021		October 31, 2020
Operating lease cost	$ 168,332		$ 806,810
Short-term lease cost	$ 60,538		$ 209,543
Variable lease cost	$ 10,618		$ 48,171
Total	$ 239,488		$ 1,064,524
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 75,106		$ 778,204
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 208,071		$ 14,418
Weighted-average remaining lease term - operating leases	4.4	years	3.3	years
Weighted-average discount rate - operating leases	9.75%		9.75%

The total future minimum lease payments, over the remaining lease term, relating to the Company’s operating leases for each of the next five fiscal years and thereafter is as follows:

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

7. Leases (continued)

Fiscal Year Ended October 31:		Operating Leases
2022		$ 117,399
2023		117,944
2024		116,657
2025		96,523
2026		57,806
Thereafter		9,873
Total future minimum lease payments		$ 516,202
Less imputed interest		(95,518)
Total		$ 420,684

The following table summarizes scheduled maturities of the Company’s contractual obligations relating to operating leases for which cash flows are fixed and determinable as of October 31, 2021:

Fiscal Year Ended October 31:		Payments Due in Fiscal Year(1)
2022		$ 103,430
2023		113,495
2024		115,082
2025		96,523
2026		57,806
Thereafter		9,873
Total contractual obligations		$ 496,209

The Company does not have any finance leases or any leases that have not yet commenced.

8. Income Taxes

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Notes

8. Income Taxes

8. Income Taxes

The Company’s provision for income taxes in each fiscal year consists of current federal, state, and local minimum taxes.

The income tax expense for fiscal years ended October 31, 2021 and 2020 consisted of the following:

	2021	2020
Current:
Federal	$ -	$ -
State	3,000	5,000
Foreign	-	32,000
Income tax provision - current	$ 3,000	$ 37,000

Deferred:
Federal	-	-
State	-	-
Total income tax provision	$ 3,000	$ 37,000

The difference between income taxes expected at the U.S federal statutory income tax rate and the reported income tax expense are summarized as follows:

	2021		2020
	Amount	Percent	Amount	Percent
U.S. statutory tax	$ 21,000	21.0%	$ (2,576,000)	21.0%
Stock compensation	31,000	31.2%	84,000	-0.7%
Meals and entertainment	1,000	1.0%	3,000	0.0%
State tax, net of federal benefit	127,000	127.8%	(636,000)	5.2%
Other adjustments - accruals	15,000	15.1%	(14,000)	0.1%
Change in valuation allowance	(192,000)	-193.1%	3,176,000	-25.9%

Total income tax provision	$ 3,000	3.0%	$ 37,000	-0.3%

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

8. Income Taxes (continued)

The tax effect of temporary differences that give rise to deferred tax assets and liabilities as of October 31, 2021 and 2020 is as follows:

	2021	2020
Deferred tax assets:
Net operating loss carryforward	$ 6,387,000	$ 6,356,000
Deferred revenue	35,000	72,000
Allowance for doubtful accounts receivable	47,000	251,000
Stock compensation - nonqualified	242,000	228,000
Accruals	70,000	53,000
ROU lease liabilities	107,000	116,000
Foreign tax credit	32,000	32,000
Depreciation	28,000	7,000
Total gross deferred tax asset	$ 6,948,000	$ 7,115,000
Less: Valuation allowance	(6,862,000)	(7,054,000)
Total net deferred tax asset	$ 86,000	$ 61,000

Deferred tax liabilities:
ROU lease assets	(86,000)	(61,000)
Total deferred tax liability	(86,000)	(61,000)

Deferred tax assets and liabilities	$ -	$ -

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

9. Stock-Based Compensation

9. Stock-Based Compensation

Notes

9. Stock-Based Compensation

On August 16, 2021, the Company’s Board of Directors adopted the Second Amendment to the Plan, to authorize the granting of restricted stock unit (RSU) awards under the Plan. Each RSU represents the right to receive, following vesting, one share of the Company’s common stock. In connection with the Second Amendment to the Plan, the Board of Directors has authorized an aggregate of 800,000 RSU awards to be granted under the Plan. As of October 31, 2021, 797,500 RSU awards were granted under the Plan at a grant date fair market value of $0.63 per share, which RSU awards vest ratably over a three-year period. All 797,500 RSU awards were granted on October 22, 2021 and all are unvested at October 31, 2021. As of October 31, 2021, total unrecognized compensation cost related to unamortized RSU awards under the Plan totaled $502,000. The Company expects to recognize this expense over the remaining vesting period of three years.

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

9. Stock-Based Compensation (continued)

Information with respect to the Company’s stock options for fiscal years 2021 and 2020 is as follows:

	Number of stock options	Weighted average exercise price	Weighted average remaining contractual term (in years)	Aggregate intrinsic value

Stock options outstanding at November 1, 2019	1,847,000	$3.20	6.4	$ 2,200
Stock options granted	659,500	$1.94
Stock options exercised	(16,000)	$1.45
Stock options forfeited	(800,500)	$3.14
Stock options outstanding at October 31, 2020	1,690,000	$2.77	6.9	$ -
Stock options granted	212,500	$0.48
Stock options exercised	-	-
Stock options forfeited	(430,000)	$3.08
Stock options outstanding at October 31, 2021	1,472,500	$2.35	6.8	$ 50,800
Stock options exercisable at October 31, 2021	664,000	$3.18	3.2	$ -

	Years ended October 31,
	2021	2020
Expected dividend yield	0%	0%
Expected volatility	127%	87-117%
Risk-free interest rate	0.63-1.28%	0.37-2.94%
Expected term (years)	6.5	6.5

The Company recognized share-based compensation expense for all awards issued under the Company’s stock equity plans in the following line items in the consolidated statement of operations:

	2021	2020
Cost of revenues	$ 7,000	$ 11,000
Research and development	$ 3,000	$ 74,000
Selling, general and administrative	$ 213,000	$ 382,000
	$ 223,000	$ 467,000

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

9. Stock-Based Compensation (continued)

The following table summarizes the plans under which the Company granted equity compensation as of October 31, 2020:

Name of Plan	Shares Authorized		Shares Available for Grant		Shares Outstanding		Last Date for Grant of Shares
PASSUR Aerospace, Inc. 2009 Stock Incentive Plan	3,000,000		-		637,500		February 24, 2019
PASSUR Aerospace, Inc. 2019 Stock Incentive Plan	5,000,000	(1)	3,367,500	(2)	1,632,500	(2)	February 26, 2029

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10. Major Customers

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Notes

10. Major Customers

10. Major Customers

The Company’s principal business is to provide predictive analytics and decision support technology for the aviation industry to primarily improve the operational performance and cash flow of its customers. The Company believes it operates in one operating segment. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. For fiscal 2021, three customers accounted for 21%, or $1,302,000 of total revenues. One customer accounted for 8%, or $478,000, of total revenues for fiscal year 2021. A second customer accounted for 7%, or $435,000, and a third customer accounted for 6%, or $389,000, of total revenues in fiscal year 2021. The contract with the customer that accounted for 7% of fiscal 2021 revenue in the amount of $435,000 expired on September 1, 2021 and was not renewed. Three customers accounted for 36%, or $4,176,000, of total revenues in fiscal year 2020. One customer accounted for 13%, or $1,538,000, of total revenues in fiscal year 2020. This customer was given concessions of approximately $513,000 during the fourth quarter of fiscal year 2020, as a result of the COVID-19 pandemic. A second customer accounted for 12%, or $1,440,000, and a third customer accounted for 10%, or $1,198,000, of total revenues in fiscal year 2020. Contracts with both of these customers expired during fiscal 2020 and have not been renewed.

The Company had foreign sales of $1,063,000 and $1,445,000 in fiscal years 2021 and 2020, respectively. All sales, including foreign sales, are denominated in U.S. dollars.

1. Description of Business and Significant Accounting Policies: Nature of Business (Policies)

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Policies

Nature of Business

Nature of Business

PASSUR delivers digital solutions that are essential to global aviation operations, meeting the needs of global air travel as well as supporting the recovery of the aviation industry from the COVID-19 crisis. The structure and execution of operations within the aviation industry has fundamentally changed as a result of this crisis due to the significant change in the economics required to support current conditions, a return to normal operations and profitability.

1. Description of Business and Significant Accounting Policies: Liquidity (Policies)

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Policies

Liquidity

Liquidity

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

1.In July 2020, the Company entered into an agreement with the U.S. Department of the Treasury to receive an aggregate of $3,003,000 in emergency relief through the CARES Act Payroll Support Program (“PSP1”). The relief payments were received in three installments from July 2020 through September 2020. Pursuant to the Payroll Support Program Agreement, the relief payments must be used exclusively for the continuation of payment of certain employee wages, salaries and benefits. The Payroll Support Program Agreement also provides that the relief payments are conditioned on the Company’s agreement to, among other things, refrain from conducting involuntary employee layoffs or furloughs through September 30, 2020, as well as other conditions including prohibitions on share repurchases and dividends through September 30, 2021, and certain limitations on executive compensation.

2.On February 12, 2021, the Company received an additional “top off” disbursement of $875,000 under PSP1, subject to the terms and conditions described above.

3.On March 5, 2021, the Company entered into a Payroll Support Program Extension Agreement with the U.S. Department of the Treasury for an award the Company received under the CARES Act Payroll Support Program (“PSP2”). The total amount awarded to the Company under PSP2 was approximately $1,310,000. The relief payments under PSP2 were received in two installments of approximately $655,000 each on March 8, 2021 and April 26, 2021. As with the original grant under PSP1, PSP2 proceeds are to be used exclusively for the continuation of payment of certain employee wages, salaries, and benefits. The Payroll Support Program Extension Agreement provides that the relief payments are conditioned on the Company’s agreement to, among other things, refrain from conducting involuntary employee layoffs or furloughs through the later of March 31, 2021, or the date on which the Company has expended all of the payroll support, as well as other conditions including prohibitions on share repurchases and dividends through March 31, 2022, and certain limitations on executive compensation.

1. Description of Business and Significant Accounting Policies: Basis of Presentation (Policies)

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Policies

Basis of Presentation

Basis of Presentation

Certain financial information in the footnotes has been rounded to the nearest thousand and certain reclassifications have been made to prior year balances for presentation purposes.

1. Description of Business and Significant Accounting Policies: Revenue Recognition Policy (Policies)

Revenue Recognition Policy

Policies

Revenue Recognition Policy

The Company determines revenue recognition through the following steps:

·Identification of the contract, or contracts, with a customer;

·Identification of the performance obligations in the contract;

·Determination of transaction price;

·Allocation of transaction price to performance obligations in the contract; and

·Recognition of revenue when, or as, the Company satisfies a performance obligation.

A.Nature of performance obligations

Subscription services revenue

Professional services revenue

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

Material rights

Contracts with Multiple Performance Obligations

Other policies and judgments

B.Disaggregation

The disaggregation of revenue by customer and type of performance obligation is as follows:

	Year Ended	Year Ended
Revenue by type of customer:	October 31, 2021	October 31, 2020
Airlines	$ 816,000	$ 5,589,000
Airports	4,900,000	5,501,000
Other	441,000	439,000
Total Revenue	$ 6,157,000	$ 11,529,000

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

	Year Ended	Year Ended
Revenue by type of performance obligation:	October 31, 2021	October 31, 2020
Subscription services	$ 5,750,000	$ 10,936,000
Professional services	407,000	593,000
Total Revenue	$ 6,157,000	$ 11,529,000

C.Contract Balances

The opening and closing balances of the Company's accounts receivable, unbilled receivables, and deferred revenues are as follows:

	Accounts Receivable	Unbilled Receivable	Deferred Revenue
Balance at November 1, 2020	$ 609,000	$ 53,000	$ 1,423,000

Balance at October 31, 2021	$ 720,000	$ 89,000	$ 1,494,000

Unbilled accounts receivable relates to the delivery of subscription and professional services for which the related billings will occur in a future period.

D.Transaction Price Allocated to the Remaining Performance Obligation

	12 months or less	Greater than 12 months *
Subscription services	$ 2,357,000	$ 1,025,000
Professional services	$ 162,000	$ -
Material rights	$ 76,000	$ 168,000

*Approximately 96% of subscription services and 84% of material rights are expected to be recognized between 12 and 36 months.

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

XML 38 R21.htm IDEA: XBRL DOCUMENT

1. Description of Business and Significant Accounting Policies: Use of Estimates (Policies)

XML 39 R22.htm IDEA: XBRL DOCUMENT

Policies

Use of Estimates

Use of Estimates

1. Description of Business and Significant Accounting Policies: Subsequent Events (Policies)

XML 40 R23.htm IDEA: XBRL DOCUMENT

Policies

Subsequent Events

Subsequent Events

Management has evaluated subsequent events after the balance sheet date, through the date of issuance of the financial statements, for appropriate accounting and disclosure.

1. Description of Business and Significant Accounting Policies: Accounts Receivable, net (Policies)

XML 41 R24.htm IDEA: XBRL DOCUMENT

Policies

Accounts Receivable, net

Accounts Receivable, net

1. Description of Business and Significant Accounting Policies: Property and Equipment (Policies)

XML 42 R25.htm IDEA: XBRL DOCUMENT

Policies

Property and Equipment

Property and Equipment

1. Description of Business and Significant Accounting Policies: PASSUR Network (Policies)

XML 43 R26.htm IDEA: XBRL DOCUMENT

Policies

PASSUR Network

PASSUR Network

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

1. Description of Business and Significant Accounting Policies: Capitalized Software Development Costs (Policies)

Capitalized Software Development Costs

Policies

Capitalized Software Development Costs

XML 44 R27.htm IDEA: XBRL DOCUMENT

1. Description of Business and Significant Accounting Policies: Long-Lived Assets (Policies)

XML 45 R28.htm IDEA: XBRL DOCUMENT

Policies

Long-Lived Assets

Long-Lived Assets

1. Description of Business and Significant Accounting Policies: Cost of Revenues (Policies)

XML 46 R29.htm IDEA: XBRL DOCUMENT

Policies

Cost of Revenues

Cost of Revenues

Costs associated with subscription and maintenance revenues consist primarily of direct labor, amortization of previously capitalized software development costs, communication costs, data feeds, travel and entertainment, and consulting fees. Previously, cost of revenues in each reporting period was impacted by capitalized costs associated with software development and data center projects, and costs associated with upgrades to PASSUR and SMLAT Systems necessary to make such systems compatible with new software applications (all referred to as “Capitalized Assets”), depreciation of PASSUR and SMLAT Network Systems as well as the ordinary repair and maintenance of existing PASSUR and SMLAT Systems. Additionally, cost of revenues in each previous reporting period was impacted by the number of PASSUR and SMLAT System units added to the PASSUR Network, which included the production, shipment, and installation of these assets (largely installed by unaffiliated outside contractors), which had previously been capitalized to the PASSUR Network. The PASSUR Network was written off as of April 30, 2020, as described in more detail below. In prior periods, the labor and fringe benefit costs of the Company employees involved in creating Capitalized Assets were capitalized, rather than expensed, and amortized over three years, as determined by their projected useful life. The Company did not capitalize any software development costs as well as network and data center costs for any periods subsequent to January 31, 2020. Given business conditions in the aviation industry surrounding the unprecedented COVID-19 pandemic, the Company’s software efforts were concentrated in the areas of maintenance of existing products.

1. Description of Business and Significant Accounting Policies: Income Taxes (Policies)

Policies

Income Taxes

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 25
-URI http://asc.fasb.org/extlink&oid=120406818&loc=d3e32247-109318

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32847-109319

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 954
-SubTopic 740
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6491622&loc=d3e9504-115650

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18780-107790

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=116657188&loc=SL116659661-227067

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=120406818&loc=d3e32280-109318

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319

+ Details

XML 47 R30.htm IDEA: XBRL DOCUMENT

1. Description of Business and Significant Accounting Policies: Research and Development Costs (Policies)

Research and Development Costs

Policies

Research and Development Costs

Research and development costs are expensed as incurred.

XML 48 R31.htm IDEA: XBRL DOCUMENT

1. Description of Business and Significant Accounting Policies: Net Income/(Loss) per Share Information (Policies)

Net Income/(Loss) per Share Information

Policies

Net Income/(Loss) per Share Information

PASSUR Aerospace, Inc. and Subsidiary

Notes to Consolidated Financial Statements (continued)

1. Description of Business and Significant Accounting Policies (continued)

Shares used to calculate net income/(loss) per share for fiscal years 2021 and 2020 are as follows:

	2021	2020
Basic Weighted average shares outstanding	7,712,091	7,710,561
Effect of dilutive stock options	39,897	-
Diluted weighted average shares outstanding	7,751,988	7,710,561

Weighted average shares which are not included in the calculation of diluted net income/(loss) per share because their impact is anti-dilutive. These shares consist of stock options.	1,277,500	1,690,000

XML 49 R32.htm IDEA: XBRL DOCUMENT

1. Description of Business and Significant Accounting Policies: Deferred Revenue (Policies)

XML 50 R33.htm IDEA: XBRL DOCUMENT

Policies

Deferred Revenue

Deferred Revenue

1. Description of Business and Significant Accounting Policies: Fair Value of Financial Instruments (Policies)

Fair Value of Financial Instruments

Policies

Fair Value of Financial Instruments

XML 51 R34.htm IDEA: XBRL DOCUMENT

1. Description of Business and Significant Accounting Policies: Treasury Stock (Policies)

XML 52 R35.htm IDEA: XBRL DOCUMENT

Policies

Treasury Stock

Treasury Stock

1. Description of Business and Significant Accounting Policies: Stock-Based Compensation (Policies)

XML 53 R36.htm IDEA: XBRL DOCUMENT

Policies

Stock-Based Compensation

Stock-Based Compensation

1. Description of Business and Significant Accounting Policies: Comprehensive Income/(Loss) (Policies)

Comprehensive Income/(Loss)

Policies

Comprehensive Income/(Loss)

The Company’s comprehensive income/(loss) is equivalent to that of the Company’s total net income/(loss) for fiscal years 2021 and 2020.

XML 54 R37.htm IDEA: XBRL DOCUMENT

1. Description of Business and Significant Accounting Policies: Impact of the COVID-19 Pandemic (Policies)

Impact of the COVID-19 Pandemic

Policies

Impact of the COVID-19 Pandemic

The CARES Act, enacted in March 2020, as well as subsequently enacted legislation, including the Rescue Act, have provided economic support for, among others, businesses in the airline industry. The Company has been granted government funds totaling $6.5 million pursuant to the various Payroll Support Programs for Air Carriers and Contractors under the CARES Act and the Rescue Act. Pursuant to the various Payroll Support Program Agreements entered into by the Company with the U.S. Department of the Treasury, the Company is required to, among other things, refrain from conducting involuntary employee layoffs or furloughs, reducing employee rates of pay or benefits through the later of September 30, 2021, or the date on which the Company has expended all of the payroll support under the Payroll Support Programs, and paying dividends or engaging in share repurchases through September 30, 2022. The Payroll Support Program Agreements also require the Company to limit certain executive compensation through March 24, 2022, maintain certain internal controls and records relating to the CARES Act funds and comply with certain reporting requirements. The Company believes that it has operated in compliance with all the provisions and requirements under the CARES Act and the Rescue Act during the fiscal years ended October 31, 2021 and 2020, and fully intends to continue to comply with all such provisions and requirements. Consequently, the Company has accounted for the advanced funds as grants not requiring repayment and recognized such amounts in income as qualifying salaries, wages and benefits have been incurred. During the fiscal years ended October 31, 2021 and 2020, the Company reduced its compensation expense by $4,578,000 and $1,130,000, respectively, as CARES Act grant proceeds received by the Company were used to fund eligible payroll costs. If the Company does not comply with the provisions of the CARES Act, the Rescue Act and the Payroll Support Program Agreements, the Company may be required to repay the government funds and also be subject to other remedies.

Additionally, provisions under the CARES Act allow the Company to defer payment of the employer’s share of social security taxes incurred from March of 2020 through December 31, 2020. The amount of payroll taxes subject to deferred payment is approximately $139,000. Under the terms of the legislation, 50% of the deferred payroll taxes were due and payable by December 31, 2021, and the remaining 50% are due and payable by December 31, 2022.

·Eliminated or furloughed approximately one-third of then-existing positions;

·Instituted a temporary pay reduction plan affecting essentially all of the then-remaining employees;

·Reduced the use of outside consultants;

·Rationalized the PASSUR Network to reduce data feed and telecom costs; and

·Reduced and/or eliminated other operating expenses that were not critical to the short-term outlook of the Company.

XML 55 R38.htm IDEA: XBRL DOCUMENT

1. Description of Business and Significant Accounting Policies: Recent Accounting Pronouncements Adopted (Policies)

Recent Accounting Pronouncements Adopted

Policies

Recent Accounting Pronouncements Adopted

Accounting Pronouncements Issued but not yet Adopted

XML 56 R39.htm IDEA: XBRL DOCUMENT

1. Description of Business and Significant Accounting Policies: Revenue Recognition Policy: Disaggregation of Revenue (Tables)

Disaggregation of Revenue

Customer

	Year Ended	Year Ended
Revenue by type of customer:	October 31, 2021	October 31, 2020
Airlines	$ 816,000	$ 5,589,000
Airports	4,900,000	5,501,000
Other	441,000	439,000
Total Revenue	$ 6,157,000	$ 11,529,000

Performance Obligation

Disaggregation of Revenue

	Year Ended	Year Ended
Revenue by type of performance obligation:	October 31, 2021	October 31, 2020
Subscription services	$ 5,750,000	$ 10,936,000
Professional services	407,000	593,000
Total Revenue	$ 6,157,000	$ 11,529,000

XML 57 R40.htm IDEA: XBRL DOCUMENT

1. Description of Business and Significant Accounting Policies: Revenue Recognition Policy: Schedule of Contract Balances (Tables)

Schedule of Contract Balances

	Accounts Receivable	Unbilled Receivable	Deferred Revenue
Balance at November 1, 2020	$ 609,000	$ 53,000	$ 1,423,000

Balance at October 31, 2021	$ 720,000	$ 89,000	$ 1,494,000

XML 58 R41.htm IDEA: XBRL DOCUMENT

1. Description of Business and Significant Accounting Policies: Revenue Recognition Policy: Transaction Price Allocated to the Remaining Performance Obligation Schedule (Tables)

Transaction Price Allocated to the Remaining Performance Obligation Schedule

	12 months or less	Greater than 12 months *
Subscription services	$ 2,357,000	$ 1,025,000
Professional services	$ 162,000	$ -
Material rights	$ 76,000	$ 168,000

XML 59 R42.htm IDEA: XBRL DOCUMENT

1. Description of Business and Significant Accounting Policies: Net Income/(Loss) per Share Information: Schedule of earnings per share calculations (Tables)

Schedule of earnings per share calculations

	2021	2020
Basic Weighted average shares outstanding	7,712,091	7,710,561
Effect of dilutive stock options	39,897	-
Diluted weighted average shares outstanding	7,751,988	7,710,561

Weighted average shares which are not included in the calculation of diluted net income/(loss) per share because their impact is anti-dilutive. These shares consist of stock options.	1,277,500	1,690,000

XML 60 R43.htm IDEA: XBRL DOCUMENT

2. Property and Equipment, net: Property and Equipment, net (Tables)

Property and Equipment, net

	Estimated useful lives	2021	2020

Leasehold improvements	3-5 years	$ 4,000	$ 4,000
Equipment	5-10 years	4,851,000	4,789,000
Furniture and fixtures	5-10 years	5,000	29,000
		4,860,000	4,822,000
Less: accumulated depreciation		4,767,000	4,564,000
Total		$ 93,000	$ 258,000

XML 61 R44.htm IDEA: XBRL DOCUMENT

3. PASSUR Network, net: Schedule of Other Assets (Tables)

XML 62 R45.htm IDEA: XBRL DOCUMENT

Passur Network 1

Schedule of Other Assets

	2021	2020

PASSUR Network, beginning balance	$ -	$ 18,902,000
Additions	-	-
Disposals	-	(11,000)
Impairment charges taken	-	(3,565,000)
Total capitalized PASSUR Network costs	-	15,326,000
Less accumulated depreciation	-	15,326,000
PASSUR Network, ending balance, net	$ -	$ -

Capitalized Software Development Costs: Schedule of Other Assets (Tables)

Capitalized Software Development Costs

Schedule of Other Assets

	2021	2020

Software development costs, beginning balance	$ 13,671,000	$ 23,732,000
Additions	-	489,000
Write off of fully amortized projects	-	(4,416,000)
Impairment charge	-	(6,134,000)
Total capitalized software development costs	13,671,000	13,671,000
Less accumulated amortization	12,933,000	12,448,000
Software development costs, ending balance, net	$ 738,000	$ 1,223,000

XML 63 R46.htm IDEA: XBRL DOCUMENT

5. Accrued Expenses and Other Current Liabilities: Schedule of Accrued Liabilities (Tables)

Schedule of Accrued Liabilities

	2021	2020

Payroll, payroll taxes, and benefits	$ 353,000	$ 243,000
Professional fees	159,000	181,000
Travel expenses	10,000	29,000
Accrued rent	125,000	145,000
Other liabilities	31,000	123,000
Total	$ 678,000	$ 721,000

XML 64 R47.htm IDEA: XBRL DOCUMENT

7. Leases: Schedule of Total Lease Costs (Tables)

Schedule of Total Lease Costs

	Year Ended		Year Ended
Total lease cost	October 31, 2021		October 31, 2020
Operating lease cost	$ 168,332		$ 806,810
Short-term lease cost	$ 60,538		$ 209,543
Variable lease cost	$ 10,618		$ 48,171
Total	$ 239,488		$ 1,064,524
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 75,106		$ 778,204
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 208,071		$ 14,418
Weighted-average remaining lease term - operating leases	4.4	years	3.3	years
Weighted-average discount rate - operating leases	9.75%		9.75%

XML 65 R48.htm IDEA: XBRL DOCUMENT

7. Leases: Schedule of Future Minimum Rental Payments for Operating Leases (Tables)

Schedule of Future Minimum Rental Payments for Operating Leases

Fiscal Year Ended October 31:		Operating Leases
2022		$ 117,399
2023		117,944
2024		116,657
2025		96,523
2026		57,806
Thereafter		9,873
Total future minimum lease payments		$ 516,202
Less imputed interest		(95,518)
Total		$ 420,684

XML 66 R49.htm IDEA: XBRL DOCUMENT

7. Leases: Schedule of Contractual Obligation Maturity (Tables)

Schedule of Contractual Obligation Maturity

Fiscal Year Ended October 31:		Payments Due in Fiscal Year(1)
2022		$ 103,430
2023		113,495
2024		115,082
2025		96,523
2026		57,806
Thereafter		9,873
Total contractual obligations		$ 496,209

XML 67 R50.htm IDEA: XBRL DOCUMENT

8. Income Taxes: Schedule of Income before Income Tax, Domestic and Foreign (Tables)

Schedule of Income before Income Tax, Domestic and Foreign

	2021	2020
Current:
Federal	$ -	$ -
State	3,000	5,000
Foreign	-	32,000
Income tax provision - current	$ 3,000	$ 37,000

Deferred:
Federal	-	-
State	-	-
Total income tax provision	$ 3,000	$ 37,000

XML 68 R51.htm IDEA: XBRL DOCUMENT

8. Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables)

Schedule of Components of Income Tax Expense (Benefit)

	2021		2020
	Amount	Percent	Amount	Percent
U.S. statutory tax	$ 21,000	21.0%	$ (2,576,000)	21.0%
Stock compensation	31,000	31.2%	84,000	-0.7%
Meals and entertainment	1,000	1.0%	3,000	0.0%
State tax, net of federal benefit	127,000	127.8%	(636,000)	5.2%
Other adjustments - accruals	15,000	15.1%	(14,000)	0.1%
Change in valuation allowance	(192,000)	-193.1%	3,176,000	-25.9%

Total income tax provision	$ 3,000	3.0%	$ 37,000	-0.3%

XML 69 R52.htm IDEA: XBRL DOCUMENT

8. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)

Schedule of Deferred Tax Assets and Liabilities

	2021	2020
Deferred tax assets:
Net operating loss carryforward	$ 6,387,000	$ 6,356,000
Deferred revenue	35,000	72,000
Allowance for doubtful accounts receivable	47,000	251,000
Stock compensation - nonqualified	242,000	228,000
Accruals	70,000	53,000
ROU lease liabilities	107,000	116,000
Foreign tax credit	32,000	32,000
Depreciation	28,000	7,000
Total gross deferred tax asset	$ 6,948,000	$ 7,115,000
Less: Valuation allowance	(6,862,000)	(7,054,000)
Total net deferred tax asset	$ 86,000	$ 61,000

Deferred tax liabilities:
ROU lease assets	(86,000)	(61,000)
Total deferred tax liability	(86,000)	(61,000)

Deferred tax assets and liabilities	$ -	$ -

XML 70 R53.htm IDEA: XBRL DOCUMENT

9. Stock-Based Compensation: Schedule of Share-based Compensation, Activity (Tables)

Schedule of Share-based Compensation, Activity

	Number of stock options	Weighted average exercise price	Weighted average remaining contractual term (in years)	Aggregate intrinsic value

Stock options outstanding at November 1, 2019	1,847,000	$3.20	6.4	$ 2,200
Stock options granted	659,500	$1.94
Stock options exercised	(16,000)	$1.45
Stock options forfeited	(800,500)	$3.14
Stock options outstanding at October 31, 2020	1,690,000	$2.77	6.9	$ -
Stock options granted	212,500	$0.48
Stock options exercised	-	-
Stock options forfeited	(430,000)	$3.08
Stock options outstanding at October 31, 2021	1,472,500	$2.35	6.8	$ 50,800
Stock options exercisable at October 31, 2021	664,000	$3.18	3.2	$ -

XML 71 R54.htm IDEA: XBRL DOCUMENT

9. Stock-Based Compensation: Schedule of Assumptions Used (Tables)

Schedule of Assumptions Used

	Years ended October 31,
	2021	2020
Expected dividend yield	0%	0%
Expected volatility	127%	87-117%
Risk-free interest rate	0.63-1.28%	0.37-2.94%
Expected term (years)	6.5	6.5

XML 72 R55.htm IDEA: XBRL DOCUMENT

9. Stock-Based Compensation: Schedule of Share-Based Compensation Expense (Tables)

Schedule of Share-Based Compensation Expense

	2021	2020
Cost of revenues	$ 7,000	$ 11,000
Research and development	$ 3,000	$ 74,000
Selling, general and administrative	$ 213,000	$ 382,000
	$ 223,000	$ 467,000

XML 73 R56.htm IDEA: XBRL DOCUMENT

9. Stock-Based Compensation: Schedule of equity compensation granted (Tables)