INVESTMENT IN GMS ENTERTAINMENT LIMITED

6 Months Ended

Apr. 30, 2014

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

9. INVESTMENT IN GMS ENTERTAINMENT LIMITED

In the fiscal year ended October 31, 2013, the Company formed GMS, an Isle of Man company, with a third party to pursue online casino gaming. The Company accounts for GMS on the equity method as a corporate joint venture.

In the three and six months ended April 30, 2014, the Company’s share of GMS’s net loss was $166 and $413, respectively, which is included in loss from equity method investment in the statement of operations. GMS’s fiscal year end is September 30, which differs from the Company’s fiscal year end by one month. The Company’s policy is to record its share of GMS’s periodic results on the basis of a one-month delay. In addition, In the three and six months ended April 30, 2014, the Company recognized foreign currency translation gains of $41 and $104, respectively, which is included in foreign currency translation adjustments in other comprehensive loss. The functional currency of GMS is the pound sterling.

As of March 31, 2014, the assets of GMS consisted of approximately $500 of cash and other working capital and $2,400 of intangible assets and goodwill. As of April 30, 2014, the carrying amount of the Company’s investment in GMS exceeds its share of GMS’s recorded net assets by $1,750.