ACCOUNTS PAYABLE AND ACCRUED EXPENSES AND DUE TO DISTRIBUTION PARTNERS

9 Months Ended

Jul. 31, 2014

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

10. ACCOUNTS PAYABLE AND ACCRUED EXPENSES AND DUE TO DISTRIBUTION PARTNERS

Accounts payable and accrued expenses consist of the following:

	July 31,		October 31,
	2014		2013
Accounts payable-trade	$	1,341	$	4,436
Royalties, fees and development		1,997		3,612
Salaries and other compensation		788		742
Other accruals		223		204
Total accounts payable and accrued expenses	$	4,349	$	8,994

During the three and nine months ended July 31, 2014, the Company recognized a gain on extinguishment of liabilities of $1,159. The Company determined that certain accounts payable balances and claims for license fees and services would never be paid because they were no longer being pursued for payment and had passed the statute of limitations as of July 31, 2014.

Salaries and other compensation includes accrued payroll expense, accrued incentive compensation and employer 401K plan contributions. The Company believes that the operation of its 401k plan may not be in compliance with certain plan provisions. The Company is currently assessing what corrective actions may be needed to be taken to bring the plan back into compliance. The Company cannot currently estimate the cost of correcting any plan deficiencies, including additional plan contributions, if required.

Due to distribution partners as of July 31, 2014 includes $1,981 due to a publisher for games distributed by the Company as an agent.