Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Oct. 31, 2014

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year Ended October 31,
	2014		2013
Federal:
Current	$	-	$	-
Deferred		(1,606,000)		(2,489,000)
State:
Current		-		-
Deferred		(1,000)		3,000
Adjustment to valuation allowance related to net deferred tax assets		1,607,000		2,486,000
Income tax provision (benefit)	$	-	$	-

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

	2014		2013
Long-term deferred tax assets:
Federal and state NOL and tax credit carryforwards	$	26,669,000	$	25,689,000
Deferred Compensation		4,517,000		3,484,000
Deferred Revenue		-		404,000
Other		298,000		300,000
Subtotal		31,484,000		29,877,000

Less: valuation allowance		(31,484,000)		(29,877,000)
Deferred tax asset, net	$	-	$	-

Federal Income Tax Note [Table Text Block]

	Year Ended October 31,
	2014			2013
Income tax benefit at U.S.
Federal statutory income Tax rate	$	(3,266,00)	(34.00%)	$	(3,427,000)	(34.00%)
State income taxes		(6,000)	(.06%)		(6,000)	(.06%)
Permanent differences		1,529,000	15.92%		294,000	2.92%
Expiring net operating losses, credits and other		115,000	1.19%		250,000	2.48%
Foreign rate difference on impairment		21,000	.22%		403,000	4.00%
Change in valuation allowance		1,607,000	16.73%		2,486,000	24.66%
Income tax provision	$	-	0%	$	-	0%

- Definition

Tabular disclosure of the federal tax basis of investment holdings. This item captures the aggregate cost of securities, aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost, aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value, net unrealized appreciation (depreciation), and an explanation of the differences between tax and book.

+ References + Details