3. PASSUR Network, net

12 Months Ended

Oct. 31, 2021

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 Company did not capitalize any additional costs related to the PASSUR Network for the years ended October 31, 2021 and 2020, respectively.  Depreciation expense related to the Company-owned PASSUR Network was $0 and $374,000 for the years ended October 31, 2021 and 2020, respectively. Depreciation was charged to cost of revenues and was 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 was $0 as of October 31, 2021 and 2020, respectively.

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 included PASSUR System and SMLAT System assets as well as inventory of finished and spare parts.