FAIR VALUE

6 Months Ended

Apr. 30, 2013

Fair Value [Abstract]

Fair Value Disclosures [Text Block]

3. FAIR VALUE

The table below segregates all financial assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date.

	April 30, 2013		Quoted prices in active markets for identical assets (level 1)		Significant other observable inputs (level 2)		Significant unobservable inputs (level 3)
Assets:
Money market funds	$	22,016	$	22,016	$	—	$	—
Bank deposits	$	3,519	$	3,519	$	—	$	—
Total financial assets	$	25,535	$	25,535	$	—	$	—

	October 31, 2012		Quoted prices in active markets for identical assets (level 1)		Significant other observable inputs (level 2)		Significant unobservable inputs (level 3)
Assets:
Money market funds	$	16,048	$	16,048	$	—	$	—
Bank deposits	$	1,990	$	1,990	$	—	$	—
Total financial assets	$	18,038	$	18,038	$	—	$	—
Liabilities:
Warrant liability	$	17	$	—	$	—	$	17
Total financial liabilities	$	17	$	—	$	—	$	17

The Company had outstanding warrants that may have required settlement by transferring assets under certain change of control circumstances and were classified as liabilities in the Company’s consolidated balance sheets. The Company measures the fair value of the warrants at each balance sheet date, using the Black-Scholes method and recorded a gain or loss in earnings each period as change in fair value of warrants. The warrants, which had a fair value of $0, expired in March 2013.

Assumptions used to determine the fair value of the warrants were:

	Three months ended April 30,						Six months ended April 30,
	2013			2012			2013			2012
Estimated fair value of stock	$	0.61		$	2.45-$2.53		$	0.61-$1.00		$	2.45-$3.37
Expected warrant term		0.0-0.1 years			0.9-1.1 years			0.0-0.3 years			0.9-1.4 years
Risk-free rate		0.1	%		0.1-0.2	%		0.0-0.1	%		0.1-0.2	%
Expected volatility		84.8	%		79.0-80.1	%		77.4-84.8	%		79.0-80.1	%
Dividend yield		0	%		0	%		0	%		0	%

A summary of the changes to the Company’s warrant liability, as measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended April 30, 2013 and 2012 is presented below:

	Three months ended April 30,					Six months ended April 30,
	2013		2012			2013			2012
Beginning balance	$	-	$	1,122		$	17		$	1,949
Total (gain) loss included in net (loss) income		-		(165	)		(17	)		(992	)
Ending balance	$	-	$	957		$	-		$	957

The carrying value of accounts receivable, accounts payable and accrued expenses, due from/to factor, and advances from customers are reasonable estimates of their fair values because of their short-term maturity.