Quarterly report pursuant to sections 13 or 15(d)

CONVERTIBLE DEBENTURES (Tables)

v2.4.0.6
CONVERTIBLE DEBENTURES (Tables)
 6 Months Ended
Apr. 30, 2013
Schedule of Long-term Debt Instruments [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 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

Fair Value Assumption As of January 25,2013 and January 31,2013 [Member] | Embeded Derivatives Conversion Features [Member]
  
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 and January 31, 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

Fair Value As Of April 30,2013 [Member] | Embeded Derivatives Conversion Features [Member]
  
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

April 30, 2013

 

 

Stock price on valuation date

 

$

0.23

Conversion price

 

$

0.15

Stock premium for liquidity

 

 

51%

Term (years)

 

 

1.70

Expected volatility

 

 

95%

Weighted average risk-free interest rate

 

 

0.2%

Trials

 

 

100,000

Aggregate fair value

 

$

970,000

Convertible Debenture Warrant [Member]
  
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