Annual report pursuant to section 13 and 15(d)

CONVERTIBLE DEBENTURES (Tables)

CONVERTIBLE DEBENTURES (Tables)

12 Months Ended

Oct. 31, 2013

CONVERTIBLE DEBENTURES (Tables) [Line Items]

Convertible Debt [Table Text Block]

Face value of Convertible Debenture due January 2015			$1,765,000
Fair value of embedded conversion feature	$1,180,000
Relative fair value of Convertible Debenture Warrant	214,819
Discount	$1,394,819		(1,394,819)

Proceeds attributable to the Convertible Debenture due January 2015			$370,181

Schedule of Extinguishment of Debt [Table Text Block]

	Year Ended
	October 31, 2013
Face value of debt converted	$ 325,000
Less: discount	(229,964)
Plus: value of derivative liability	164,811
Net book value of debt converted	$ 259,847
Fair value of common stock issued	603,364
Loss on extinguishment of debt	$ 343,517

Schedule of Debt Issuance Cost [Table Text Block]

Attributable to:		Accounting Treatment		Amount
The embedded conversion feature (derivative)		Expensed as incurred		$ 55,999
The 8% Convertible Debenture Warrant		Charged to additional paid-in capital		10,194
The 8% Convertible Debenture		Recorded as deferred issuance costs and amortized under the interest method over the term of the 8% Convertible Debenture		17,567
Total				$ 83,760

Embedded Conversion Feature Derivative [Member]

CONVERTIBLE DEBENTURES (Tables) [Line Items]

Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Table Text Block]

		As of January 25, 2013
Stock price on valuation date		$ 0.21
Conversion price		$ 0.15
Stock premium for liquidity		57%
Term (years)		2.00
Expected volatility		110%
Weighted average risk-free interest rate		0.3%
Trials		100,000
Aggregate fair value		$ 1,180,000

		As of October 31, 2013
Stock price on valuation date		$ 0.195
Conversion price		$ 0.15
Stock premium for liquidity		42%
Term (years)		1.25
Expected volatility		115%
Weighted average risk-free interest rate		0.3%
Trials		100,000
Aggregate fair value		$ 540,000

Convertible Debenture Warrant [Member]

CONVERTIBLE DEBENTURES (Tables) [Line Items]

Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Table Text Block]

		As of January 25, 2013
Stock price on valuation date		$ 0.21
Exercise price		$ 0.30
Stock premium for liquidity		38%
Term (years)		3.00
Warrant exercise trigger price		41%
Expected volatility		95%
Weighted average risk-free interest rate		0.4%
Number of warrants		5,882,745
Aggregate fair value		$ 370,000