Annual report pursuant to section 13 and 15(d)

INCOME TAXES (Tables)

v2.4.0.8
INCOME TAXES (Tables)
12 Months Ended
Oct. 31, 2013
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

 

Year Ended October 31,

 

2013

2012

Federal:

 

 

Current

$ -

$ -

Deferred

(2,489,000)

992,000

State:

 

 

Current

-

-

Deferred

3,000

32,000

Foreign:

 

 

Current

-

-

Adjustment to valuation allowance related

to net deferred tax assets

2,486,000

(1,024,000)

Income tax provision (benefit)

$ -

$ -

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

 

2013

2012

Long-term deferred tax assets:

 

 

Federal and state NOL and tax credit carryforwards

$ 25,689,000

$ 24,284,000

Deferred Compensation

3,484,000

2,255,000

Deferred Revenue

404,000

404,000

Other

300,000

448,000

Subtotal

29,877,000

27,391,000

 

 

 

Less: valuation allowance

(29,877,000)

(27,391,000)

Deferred tax asset, net

$ -

$ -

Federal Income Tax Note [Table Text Block]

 

Year Ended October 31,

 

2013

2012

Income tax benefit at U.S.

Federal statutory income

tax rate

 

$(3,427,000)

 

 

(34.00%)

 

$(1,446,000)

 

 

(34.00%)

State income taxes

(6,000)

(.06%)

(2,000)

(.06%)

Permanent differences

294,000

2.92%

8,000

.19%

Credits

-

-

(63,000)

(1.48%)

Expiring net operating

losses, credits and other

250,000

 

2.48%

2,527,000

 

59.44%

Foreign rate difference on

impairment

403,000

 

4.00%

 

-

 

-

Change in valuation

allowance

 

2,486,000

 

24.66%

 

(1,024,000)

 

(24.09%)

Income tax provision

$ -

0%

$ -

0%