2. Basis of Presentation and Significant Accounting Policies: Capitalized Software Development Costs (Policies)	9 Months Ended
Jul. 31, 2020
Policies
Capitalized Software Development Costs	Capitalized Software Development Costs Due to the financial and economic hardships being experienced by airlines, airports and air transportation support vendors in the current COVID-19 environment, there has been a sufficient amount of uncertainty surrounding the ability of our customers to continue to comply with the terms of their contracts with the Company. As a result, during the second quarter of fiscal year 2020, the Company conducted a review of its customer contracts to determine whether an impairment had occurred. 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 analysis, during the three months ended April 30, 2020, the Company wrote-off assets totaling $6,134,000 based on the assumption that the carrying value of the software capitalization was representative of 100% of the committed contract values then remaining. The Company capitalized $0 and $489,000 of software development costs during the three and nine months ended July 31, 2020, respectively. For the three and nine months ended July 31, 2019, the Company capitalized $634,000 and $1,977,000, respectively, of software development costs. In addition, the Company did not incur any capitalized software development costs during the quarter ended July 31, 2020. The Company amortized $121,000 and $1,329,000 of capitalized software development costs during the three and nine months ended July 31, 2020, respectively. For the three and nine months ended July 31, 2019, the Company amortized $631,000 and $1,743,000 of capitalized software development costs, respectively. The Company previously recorded amortization of the software on a straight-line basis over the estimated useful life of the software, typically over five years within “Cost of Revenues”. In connection with the impairment analysis described above, the Company revised its estimate of the remaining useful life of the capitalized software development costs to three years. The Company follows the provisions of ASC 350-40, “Internal Use Software” (“ASC 350-40”). ASC 350-40 provides guidance for determining whether computer software is internal-use software, and on accounting for the proceeds of computer software originally developed or obtained for internal use and then subsequently sold to the public. It also provides guidance on capitalization of the costs incurred for computer software developed or obtained for internal use. The Company expensed all costs incurred during the preliminary project stage of its development, and capitalized the costs incurred during the application development stage. Costs incurred relating to upgrades and enhancements to the software were capitalized if it was determined that these upgrades or enhancements added additional functionality to the software. Costs incurred to improve and support products after they become available were charged to expense as incurred. The Company did not capitalize any software development costs during the three-month period ended July 31, 2020. As a result of the industry changes in response to the COVID-19 pandemic (described in “Impact of the COVID-19 Pandemic” below), the corresponding review conducted by the Company described above and the resultant write-offs taken during the three months ended April 30, 2020, the Company anticipates that its level of capitalized software development costs, including related amortization of such costs, will decrease in the future.

2. Basis of Presentation and Significant Accounting Policies: Capitalized Software Development Costs (Policies)

9 Months Ended

Jul. 31, 2020

Capitalized Software Development Costs

Due to the financial and economic hardships being experienced by airlines, airports and air transportation support vendors in the current COVID-19 environment, there has been a sufficient amount of uncertainty surrounding the ability of our customers to continue to comply with the terms of their contracts with the Company. As a result, during the second quarter of fiscal year 2020, the Company conducted a review of its customer contracts to determine whether an impairment had occurred. 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 analysis, during the three months ended April 30, 2020, the Company wrote-off assets totaling $6,134,000 based on the assumption that the carrying value of the software capitalization was representative of 100% of the committed contract values then remaining.

The Company capitalized $0 and $489,000 of software development costs during the three and nine months ended July 31, 2020, respectively. For the three and nine months ended July 31, 2019, the Company capitalized $634,000 and $1,977,000,

respectively, of software development costs. In addition, the Company did not incur any capitalized software development costs during the quarter ended July 31, 2020.

The Company amortized $121,000 and $1,329,000 of capitalized software development costs during the three and nine months ended July 31, 2020, respectively. For the three and nine months ended July 31, 2019, the Company amortized $631,000 and $1,743,000 of capitalized software development costs, respectively. The Company previously recorded amortization of the software on a straight-line basis over the estimated useful life of the software, typically over five years within “Cost of Revenues”. In connection with the impairment analysis described above, the Company revised its estimate of the remaining useful life of the capitalized software development costs to three years.

The Company follows the provisions of ASC 350-40, “Internal Use Software” (“ASC 350-40”). ASC 350-40 provides guidance for determining whether computer software is internal-use software, and on accounting for the proceeds of computer software originally developed or obtained for internal use and then subsequently sold to the public. It also provides guidance on capitalization of the costs incurred for computer software developed or obtained for internal use. The Company expensed all costs incurred during the preliminary project stage of its development, and capitalized the costs incurred during the application development stage. Costs incurred relating to upgrades and enhancements to the software were capitalized if it was determined that these upgrades or enhancements added additional functionality to the software. Costs incurred to improve and support products after they become available were charged to expense as incurred. The Company did not capitalize any software development costs during the three-month period ended July 31, 2020.

As a result of the industry changes in response to the COVID-19 pandemic (described in “Impact of the COVID-19 Pandemic” below), the corresponding review conducted by the Company described above and the resultant write-offs taken during the three months ended April 30, 2020, the Company anticipates that its level of capitalized software development costs, including related amortization of such costs, will decrease in the future.