WORKFORCE REDUCTION

6 Months Ended

Apr. 30, 2013

Work Force Reduction Disclosure [Abstract]

Work Force Reduction Disclosure [Text Block]

15. WORKFORCE REDUCTION

On January 8, 2013, we implemented a realignment of our workforce to reduce certain fixed costs and provide for a more flexible variable cost based model using outside subcontractors in the production of our games. The realignment included a reduction in workforce of approximately 40 employees, including 14 employees related to the closure of our studio in Massachusetts, which focused on social games for Facebook, 14 game-testing personnel in our New Jersey facility, and other marketing and support personnel. A portion of the affected game-testing workforce was converted to seasonal employees. Employees directly affected by the restructuring plan received notification during the three months ended January 31, 2013.

The Company recorded the following charges in the three and six months ended April 30, 2013:

	Three months ended April 30,		Six months ended April 30,
Severance costs	$	-	$	766
Lease termination costs		-		10
Total workforce reduction costs	$	-	$	776

Changes in the Company’s accrued liabilities for workforce reduction costs in the three and six months ended April 30, 2013 were as follows:

	Three months ended April 30,			Six months ended April 30,
Beginning balance	$	634		$	-
Workforce reduction costs accrued		-			776
Workforce reduction costs paid		(333	)		(475	)
Ending balance	$	301		$	301