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RELATED PARTY TRANSACTIONS
12 Months Ended
Oct. 31, 2012
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]

18.  RELATED PARTY TRANSACTIONS

 

The Company currently has an agreement with Morris Sutton, the Company’s former Chief Executive Officer and Chairman Emeritus, under which he provides services as a consultant. The agreement provides for a monthly retainer of $13. Mr. Sutton was also eligible to receive a commission in an amount equal to 2% of net sales to certain accounts before January 1, 2010. Commissions were recorded when the sales occurred, but were not paid until payments of the related accounts receivable were received from customers.

 

The following table summarizes expense to Morris Sutton,:

   

Year Ended

October 31,

 
    2012     2011     2010  
Consulting   $ 150     $ 150     $ 150  
Commissions     -       -       131  
Total   $ 150     $ 150     $ 281  

 

In 2011 and 2012, the Company purchased a portion of its Zumba belt accessories from a secondary supplier, on terms equivalent to those of its primary supplier. Morris Sutton and another relative of Jesse Sutton, the Company’s Chief Executive Officer, earned compensation from the supplier of approximately $710 and $260 in the years ended October 31, 2012 and 2011, respectively, based on the value of the Company’s purchases. In addition, in the year ended October 31, 2012, the Company purchased $35 of supplies from a company controlled by Morris Sutton.

 

The Company entered into an agreement with a Board member, effective March 2010, to provide specified strategic consulting services, in addition to his services as a board member, on a month-to-month basis at a monthly rate of $10. For the years ended October 31, 2012, 2011 and 2010, consulting fees incurred under the agreement amounted to $120, $120 and $73, respectively. The Company had accounts payable and accrued expenses of approximately $0 and $10 as of October 31, 2012 and 2011, respectively, under the agreement.