10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

 WASHINGTON, D.C. 20549

FORM 10-K/A

AMENDMENT NO. 1

(Mark One)

þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended October 31, 2011

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to ______________

Commission File No. 000-50956

PHARMA-BIO SERV, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	20-0653570
(State or Other Jurisdiction of Incorporation or Organization)	(IRS  Employer  Identification No.)

Pharma-Bio Serv Building, #6 Road 696 Dorado, Puerto Rico	00646
(Address of Principal Executive Offices)	(Zip Code)

787-278-2709

(Registrant’s Telephone Number, Including Area Code)

Securities registered under Section 12(b) of the Exchange Act: None

Securities registered under Section 12(g) of the Exchange Act: Common Stock, par value $0.0001 per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨   No þ

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨   No þ

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ    No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  þ    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨   No þ

The approximate aggregate market value of common stock held by non-affiliates of the registrant, based on the closing price for the registrant’s common stock on April 30, 2011 (the last business day of the second quarter of the registrant’s current fiscal year), was $3,142,770.10.

The number of shares of the registrant’s common stock outstanding as of January 27, 2012 was 20,758,695.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Proxy Statement relative to the 2012 Annual Meeting of Stockholders are incorporated by reference in Part III hereof.

EXPLANATORY NOTE

Pharma-Bio Serv, Inc. is filing this Amendment No. 1 to its Annual Report on Form 10−K for the fiscal year ended October 31, 2011 ("Form 10−K") for the sole purpose of furnishing XBRL interactive data files with the correct entity public float and entity common stock, shares outstanding numbers.  The original Form 10-K was filed with the Securities and Exchange Commission on January 30, 2012.

No other changes have been made to the Form 10−K. This Form 10−K/A speaks as of the original filing date of the Form 10−K, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the Form 10−K.

PART IV

ITEM 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

The following documents are filed as a part of this Annual Report on Form 10-K:

1.   All Financial Statements:  Consolidated Financial Statements are included herein immediately following the signature page of this report. See Index to Consolidated Financial Statements on page F-1.

2.   Financial Statement Schedules:  None.

3.   Exhibits:  The following exhibits are filed herewith or are incorporated by reference to exhibits previously filed with the Commission, as indicated in the description of each.

		Incorporated By Reference
Exhibit Number	Exhibit Description	Form	File Number	Exhibit	Filing Date
3.1	Restated Certificate of Incorporation	8-K	000-50956	99.1	5/1/2006
3.2	By-laws	10-SB12G	000-50956	3.2	9/24/2004
3.3	Amendment No. 1 to the By-laws	8-K	000-50956	3.1	6/6/2008
4.1	Form of warrant issued to Investors in January 2006 private placement	8-K	000-50956	4.2	1/31/2006
4.2	Form of warrant held by initial warrant holders	8-K	000-50956	4.3	1/31/2006
4.3	Form of warrant held by San Juan Holdings	8-K	000-50956	4.4	1/31/2006
4.4	Form of warrants issued to broker-dealers in January 2006 private placement	8-K	000-50956	4.5	1/31/2006
4.5	Form of First Amendment to Series C Common Stock Purchase Warrant.	8-K	000-50956	4.1	1/29/2009
10.1	Form of subscription agreement for January 2006 private placement	8-K	000-50956	99.1	1/31/2006
10.2	Registration rights provisions for the subscription agreement relating to January 2006 private placement	8-K	000-50956	99.2	1/31/2006
10.3	Registration rights provisions for Elizabeth Plaza and San Juan Holdings, Inc.	8-K	000-50956	99.3	1/31/2006
10.4	Employment Agreement dated January 2, 2008 between the Registrant and Elizabeth Plaza	10-KSB	000-50956	10.5	1/31/2008
10.5	Amendment to Employment Agreement dated June 9, 2008 between the Registrant and Elizabeth Plaza	10-K	000-50956	10.5	1/29/2009
10.6	Second Amendment to Employment Agreement, dated March 11, 2009, by and between the Company and Elizabeth Plaza.	8-K	000-50956	10.1	3/17/2009
10.7	Third Amendment to Employment Agreement, dated March 11, 2009, by and between the Company and Elizabeth Plaza.	8-K	000-50956	10.2	3/17/2009

10.8	Employment Agreement Amendment, effective as of January 1, 2010, by and between the Company and Elizabeth Plaza.	8-K	000-50956	10.1	1/07/2010
10.9	Employment Agreement Amendment, effective as of July 1, 2010, by and between the Company and Elizabeth Plaza	8-K	000-50956	10.1	7/8/2010
10.10	Sixth Employment Agreement Amendment, effective as of August 23, 2010, by and between the Company and Elizabeth Plaza	8-K	000-50956	10.1	8/27/10
10.11	Employment Agreement dated January 25, 2006 between the Registrant and Nélida Plaza	8-K	000-50956	99.5	1/31/2006
10.12	Amendment to Employment Agreement, dated March 11, 2009, by and between the Company and Nelida Plaza.	8-K	000-50956	10.4	3/17/2009
10.13	Employment Agreement, dated as of December 31, 2009, by and between Pharma-Bio Serv PR, Inc. and Nelida Plaza.	8-K	000-50956	10.3	1/07/2010
10.14	Employment Agreement dated November 5, 2007 between the Registrant and Pedro Lasanta	10-K	000-50956	10.8	1/29/2009
10.15	Amendment to Employment Agreement dated December 17, 2008 between the Registrant and Pedro Lasanta	8-K	000-50956	99.1	12/23/2008
10.16	Amendment to Employment Agreement, dated March 11, 2009, by and between the Company and Pedro  Lasanta.	8-K	000-50956	10.3	3/17/2009
10.17	Employment Agreement Amendment, effective as of January 1, 2010, by and between the Company and Pedro Lasanta.	8-K	000-50956	10.2	1/07/2010
10.18	2005 Long-term incentive plan, as amended	DEF 14A	000-50956	Appendix C	3/26/2007
10.19	Lease dated March 16, 2004 between Plaza Professional Center, Inc. and the Registrant	SB-2	333-132847	10.9	3/30/2006
10.20	Lease dated November 1, 2004 between Plaza Professional Center, Inc. and the Registrant	SB-2	333-132847	10.10	3/30/2006
10.21	Vendor Agreement dated May 4, 2006 between the Registrant and Schering-Plough Products, L.L.C.	SB-2/A	333-132847	10.12	11/8/2006
10.22	Agreement dated January 17, 2006 between Lilly del Caribe, Inc. and Plaza Consulting Group, Inc.	SB-2/A	333-132847	10.13	11/8/2006
10.23	Agreement effective as of November 1, 2005 between SB Pharmco Puerto Rico Inc. d/b/a GlaxoSmithKline	SB-2/A	333-132847	10.14	10/27/2006
14.1	Code of business conduct and ethics for senior management	10-KSB	000-50956	14.1	2/2/2007
21.1*	List of Subsidiaries
31.1*	Certification of chief executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2*	Certification of chief financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification of chief executive officer and chief financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS***	XBRL Instance Document
101.SCH***	XBRL Taxonomy Extension Schema
101.CAL***	XBRL Taxonomy Extension Calculation Linkbase
101.DEF***	XBRL Taxonomy Extension Definition Linkbase
101.LAB***	XBRL Taxonomy Extension Label Linkbase
101.PRE***	XBRL Taxonomy Extension Presentation Linkbase

________
*   Previously filed with the Form 10-K, filed on January 30, 2012.

**  Previously furnished with the Form 10-K, filed on January 30, 2012.

*** Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

Exhibits 10.4 through 10.18 are management contracts or compensatory plans, contracts or arrangements.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	PHARMA-BIO SERV, INC.
Dated : January 31, 2012	By:	/s/ Pedro J. Lasanta
		Name: Pedro J. Lasanta
		Title:   Chief Financial Officer             (Authorized Officer, Principal Financial             and Accounting Officer)

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MARKETABLE SECURITIES AVAILABLE FOR SALE

12 Months Ended

Oct. 31, 2011

Notes to Financial Statements

MARKETABLE SECURITIES AVAILABLE FOR SALE

At October 31, 2011 and 2010, the marketable securities of $95,000 consisted of a 5.4% Puerto Rico Commonwealth Government Development Bank Bond, purchased at par and maturing in August 2019. The bond balance approximates its fair market value, therefore no realized or unrealized gains or losses have been recorded.

The primary objectives of the Company’s investment portfolio are liquidity and safety of principal. Investments are made with the objective of achieving the highest rate of return consistent with these two objectives. Our investment policy limits investments to certain types of debt and money market instruments issued by institutions primarily with investment grade credit ratings and places restrictions on maturities and concentration by type and issuer.

We review our available-for-sale securities for other-than-temporary declines in fair value below their cost basis on a quarterly basis and whenever events or changes in circumstances indicate that the cost basis of an asset may not be recoverable. This evaluation is based on a number of factors including, the length of time and extent to which the fair value has been less than our cost basis and adverse conditions specifically related to the security including any changes to the rating of the security by a rating agency. As of October 31, 2011, we believe that the cost base for our available-for-sale securities is recoverable in all material respects.

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ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Oct. 31, 2011

Notes to Financial Statements

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION

Pharma-Bio Serv, Inc. (“Pharma-Bio”) is a Delaware corporation organized on January 14, 2004. Pharma-Bio is the parent company of Pharma-Bio Serv PR, Inc. (“Pharma-PR”), Pharma Serv, Inc. (“Pharma-Serv”) both Puerto Rico corporations, Pharma-Bio Serv US, Inc. (“Pharma-US”), a Delaware corporation, and Pharma-Bio Serv Validation & Compliance Limited (“Pharma-IR”), a majority owned Irish corporation. Pharma-Bio, Pharma-PR, Pharma-Serv, Pharma-US and Pharma-IR are collectively referred to as the “Company.” The Company operates in Puerto Rico, the United States and in Ireland under the name of Pharma-Bio Serv and is engaged in providing technical compliance consulting service, and microbiological and chemical laboratory testing services primarily to the pharmaceutical, chemical, medical device and biotechnology industries.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation

The accompanying consolidated financial statements include the accounts of the Company and all of its wholly owned and majority-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. 

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from these estimates.

Fair Value of Financial Instruments

Accounting standards have established a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting standards have established three levels of inputs that may be used to measure fair value:

Level 1:	Quoted prices in active markets for identical assets and liabilities.
Level 2:	Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3:	Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Marketable securities consist of an obligation from the Puerto Rico Government Development Bank valued using quoted market prices in active markets with no valuation adjustment. Accordingly, this security is categorized in Level 1.

The carrying value of the Company's financial instruments (excluding marketable securities and obligations under capital leases): cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, are considered reasonable estimates of fair value due to their liquidity or short-term nature. Management believes, based on current rates, that the fair value of its obligations under capital leases approximates the carrying amount.

Revenue Recognition

Revenue is primarily derived from: (1) time and materials contracts (representing approximately 94% of total revenues), which is recognized by applying the proportional performance model, whereby revenue is recognized as performance occurs, (2) short-term fixed-fee contracts or "not to exceed" contracts (representing approximately 2% of total revenues), which revenue is recognized similarly, except that certain milestones also have to be reached before revenue is recognized, and (3) laboratory testing revenue (representing approximately 4% of total revenues) is mainly recognized as the testing is completed and certified (normally within days of sample receipt from customer). If the Company determines that a contract will result in a loss, the Company recognizes the estimated loss in the period in which such determination is made.

Cash Equivalents

For purposes of the consolidated statements of cash flows, cash equivalents include investments in a money market obligations trust that is registered under the U.S. Investment Company Act of 1940 and liquid investments with original maturities of three months or less.

Marketable Securities

We consider our marketable security investment portfolio and marketable equity investments available-for-sale and, accordingly, these investments are recorded at fair value with unrealized gains and losses generally recorded in other comprehensive income; whereas realized gains and losses are included in earnings and determined based on the specific identification method.

Accounts Receivable

Accounts receivable are recorded at their estimated realizable value. Accounts are deemed past due when payment has not been received within the stated time period. The Company's policy is to review individual past due amounts periodically and write off amounts for which all collection efforts are deemed to have been exhausted. Due to the nature of the Company’s customers, bad debts are mainly accounted for using the direct write-off method whereby an expense is recognized only when a specific account is determined to be uncollectible. The effect of using this method approximates that of the allowance method.

Income Taxes

The Company follows an asset and liability approach method of accounting for income taxes. This method measures deferred income taxes by applying enacted statutory rates in effect at the balance sheet date to the differences between the tax basis of assets and liabilities and their reported amounts on the financial statements. The resulting deferred tax assets or liabilities are adjusted to reflect changes in tax laws as they occur. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized.

The Company follows guidance from the FASB related to Accounting for Uncertainty in Income Taxes, which includes a two-step approach to recognizing, de-recognizing and measuring uncertain tax positions. By the end of fiscal year 2011, the Company had no significant uncertain tax positions that would be reduced as a result of a lapse of the applicable statute of limitations.

Property and Equipment

Owned property and equipment, and leasehold improvements are stated at cost. Equipment and vehicles under capital leases are stated at the lower of fair market value or net present value of the minimum lease payments at the inception of the leases. Depreciation and amortization of owned assets are provided for, when placed in service, in amount sufficient to relate the cost of depreciable assets to operations over their estimated service lives, using straight-line basis. Assets under capital leases and leasehold improvements are amortized, over the shorter of the estimated useful lives of the assets or initial lease term. Major renewals and betterments that extend the life of the assets are capitalized, while expenditures for repairs and maintenance are expensed when incurred.

The Company evaluates for impairment its long-lived assets to be held and used, and long-lived assets to be disposed of, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Based on management estimates, no impairment of the operating properties was present.

Intangible Assets

Definite-lived intangible assets, such as customer lists and covenants not to compete, are amortized on a straight-line basis over their estimated useful lives. The Company continually evaluates the reasonableness of the useful lives of these assets.

Stock-based Compensation

Stock-based compensation expense is recognized in the consolidated financial statements based on the fair value of the awards granted. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which generally represents the vesting period, and includes an estimate of awards that will be forfeited. The Company calculates the fair value of stock options using the Black-Scholes option-pricing model at grant date. Excess tax benefits related to stock-based compensation are reflected as cash flows from financing activities rather than cash flows from operating activities. The Company has not recognized such cash flow from financing activities since there has been no tax benefit related to the stock-based compensation.

Income Per Share of Common Stock

Basic income per share of common stock is calculated dividing net income by the weighted average number of shares of common stock outstanding. Diluted income per share includes the dilution of common stock equivalents.

The diluted weighted average shares of common stock outstanding were calculated using the treasury stock method for the respective periods.

Foreign Operations

The functional currency of the Company’s foreign subsidiary is its local currency. The assets and liabilities of the Company’s foreign subsidiary are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense items are translated at the average exchange rates prevailing during the period. The cumulative translation effect for subsidiaries using a functional currency other than the U.S. dollar is included as a cumulative translation adjustment in stockholders’ equity and as a component of comprehensive income.

The Company’s intercompany accounts are typically denominated in the functional currency of the foreign subsidiary. Gains and losses resulting from the remeasurement of intercompany receivables that the Company considers to be of a long-term investment nature are recorded as a cumulative translation adjustment in stockholders’ equity and as a component of comprehensive income, while gains and losses resulting from the remeasurement of intercompany receivables from those international subsidiaries for which the Company anticipates settlement in the foreseeable future are recorded in the consolidated statements of operations. The net gains and losses recorded in the consolidated statements of income were not significant for the periods presented.

Subsequent Events

Other than the disclosures provided under Stock Options amd Stock Based Compensation NOTE I, and Concentration of Risk NOTE-J to the consolidated financial statements, the Company has determined that there are no events occurring in this period that required disclosure in or adjustment to the accompanying consolidated financial statements.

Reclassifications

Certain reclassifications have been made to the October 31, 2010 consolidated financial statements to conform them to the October 31, 2011 consolidated financial statements presentation. Such reclassifications do not have effect on net income as previously reported.

Recent Accounting Pronouncements

Recent issued FASB guidance and SEC Staff Accounting Bulletins have either been implemented, with no significant effect, or are not applicable to the Company.

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Condensed Consolidated Balance Sheets (USD $)	Oct. 31, 2011	Oct. 31, 2010
ASSETS:
Cash and cash equivalents	$ 4,316,725	$ 2,317,168
Marketable securities	95,000	95,000
Accounts receivable	4,864,616	2,520,407
Other	331,441	270,827
Total current assets	9,607,782	5,203,402
Property and equipment	1,216,111	1,321,258
Other assets	28,306	33,364
Total assets	10,852,199	6,558,024
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current portion-obligations under capital leases	31,142	18,227
Accounts payable and accrued expenses	1,941,658	1,205,576
Income taxes payable	550,837	210,911
Total current liabilities	2,523,637	1,434,714
Obligations under capital leases	92,237	53,839
Total liabilities	2,615,874	1,488,553
Stockholders' equity:
Preferred Stock, $0.0001 par value; authorized 10,000,000 shares; none outstanding	0	0
Common Stock, $0.0001 par value; authorized 50,000,000 shares; issued and outstanding 20,758,695 and 20,751,215 shares in 2011 and 2010, respectively	2,076	2,075
Additional paid-in capital	654,550	645,886
Retained earnings	7,599,708	4,440,728
Accumulated other comprehensive loss	(20,009)	(19,218)
Total stockholders' equity	8,236,325	5,069,471
Total liabilities and stockholders' equity	$ 10,852,199	$ 6,558,024

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Condensed Consolidated Statements of Cash Flows (USD $)	12 Months Ended
	Oct. 31, 2011	Oct. 31, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 3,158,981	$ 371,911
Adjustments To Reconcile Net Income Loss To Cash Provided By Operating Activities:
Loss (gain) on disposition of property and equipment	1,324	(1,920)
Stock-based compensation	8,664	43,378
Depreciation and amortization	320,861	321,713
Increase in accounts receivable	(2,274,869)	(407,868)
(Increase) decrease in other assets	(78,713)	41,809
Increase in liabilities	1,004,025	97,326
NET CASH PROVIDED BY OPERATING ACTIVITIES	2,140,273	466,349
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of marketable securities	0	(95,000)
Acquisition of property and equipment	(123,511)	(45,429)
Proceeds from sale of property and equipment	400	0
NET CASH USED IN INVESTING ACTIVITIES	(123,111)	(140,429)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on obligations under capital lease	(25,162)	(42,714)
NET CASH USED IN FINANCING ACTIVITIES	(25,162)	(42,714)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	7,557	(17,912)
NET INCREASE IN CASH AND CASH EQUIVALENTS	1,999,557	265,294
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	2,317,168	2,051,874
CASH AND CASH EQUIVALENTS - END OF PERIOD	4,316,725	2,317,168
SUPPLEMENTAL DISCLOURES OF CASH FLOWS INFORMATION:
Cash paid during the period for:Income taxes	6,025	157,668
Cash paid during the period for:Interest	6,605	5,605
SUPPLEMENTARY SCHEDULES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property and equipment with accumulated depreciation of $1,887 and $12,355 disposed during the years ended October 31, 2011 and 2010, respectively.	3,611	33,695
Income tax withheld by clients to be used as a credit in the Company's income tax return	73,671	71,489
Obligations under capital lease incurred for the acquisition of a vehicle	$ 76,475	$ 31,918

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Condensed Consolidated Statements of Cash Flows (Parenthetical) (USD $)	12 Months Ended
	Oct. 31, 2011	Oct. 31, 2010
Condensed Consolidated Statements Of Cash Flows Parenthetical
Accumulated depreciation on Property and equipment disposed during the year	$ 1,887	$ 12,355

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Oct. 31, 2011	Oct. 31, 2010
Stockholders' equity:
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, Authorized	10,000,000	10,000,000
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, Authorized	50,000,000	50,000,000
Common stock, Issued	20,758,695	20,751,215
Common stock, outstanding	20,758,695	20,751,215

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CONCENTRATION OF RISKS

12 Months Ended

Oct. 31, 2011

Notes to Financial Statements

CONCENTRATION OF RISKS

Cash and cash equivalents

Domestic cash deposits are maintained in a FDIC insured bank and in a money market obligations trust, registered under the US Investment Company Act of 1940, as amended. A major portion of our cash deposits are within noninterest bearing bank accounts which have FDIC unlimited insurance coverage until December 2012. Other operational bank deposit balances may exceed federally insured limits for interest-bearing bank accounts. Operational cash deposits in foreign banks of the markets we serve tend to be not significant and have no specific insurance. No losses have been experienced or are expected on these accounts.

Accounts receivable and revenues

Management deems all its accounts receivable to be fully collectible, and, as such, does not maintain any allowances for uncollectible receivables.

The Company's revenues, and the related receivables, are concentrated in the pharmaceutical industry in Puerto Rico, the United States of America and Ireland. Although few customers represent a significant source of revenue, the Company’s functions are not a continuous process, accordingly, the client base for which the services are typically rendered, on a project-by-project basis, changes regularly.

The Company provided a substantial portion of its services to three customers, who accounted for 10% or more of its revenues in either of the years ended October 31, 2011 or 2010. During the year ended October 31, 2011 revenues from these customers were 18%, 15% and 14%, or a total of 47%, as compared to the same period last year for 1%, 21% and 15%, or a total of 37%, respectively. At October 31, 2011 and 2010 amounts due from these customers represented 35% and 30% of total accounts receivable balance, respectively.

In December 2011, a customer vendor management program administrator, who is also a competitor of ours, for a major customer of Pharma-IR which represented 15% of the Company’s total consolidated revenue for fiscal year 2011, communicated its intent to place Pharma-IR in a probation/review period of approximately eight weeks starting at some point of time on January 2012. Among others, the administrator requested the decrease of billable margins to an already reduced billing structure and the level of service be improved. Based on the administrator’s communication, Pharma-IR will have to accept the proposed billing structure and present a plan for operational improvements. The final outcome and the eventual financial impact to the Company, if any, are uncertain at this point of time.

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Document and Entity Information (USD $)	12 Months Ended
	Oct. 31, 2011	Jan. 31, 2012
Document And Entity Information
Entity Registrant Name	Pharma-Bio Serv, Inc.
Entity Central Index Key	0001304161
Document Type	10-K
Document Period End Date	Oct. 31, 2011
Amendment Flag	true
Amendment description	This amendment is being filed to correct prior Shares Outstanding and Public Float amounts previously filed.
Current Fiscal Year End Date	--10-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 3,142,770.1
Entity Common Stock, Shares Outstanding		20,758,695
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2011

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RETIREMENT PLAN

12 Months Ended

Oct. 31, 2011

Notes to Financial Statements

RETIREMENT PLAN

 Pharma-PR has a qualified profit sharing plan in accordance with the provision of Section l165(a)(3)(A) of the Puerto Rico Code, for employees who meet certain age and service period requirements. The Company makes contributions to this plan as required by the provisions of the plan document. Following plan provisions, the Company temporarily suspended contributions to the plan since fiscal year 2009.

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Condensed Consolidated Statements of Income (USD $)	12 Months Ended
	Oct. 31, 2011	Oct. 31, 2010
Condensed Consolidated Statements Of Income
REVENUES	$ 19,933,182	$ 11,346,453
COST OF SERVICES	13,072,231	7,953,647
GROSS PROFIT	6,860,951	3,392,806
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	3,408,953	2,782,916
INCOME FROM OPERATIONS	3,451,998	609,890
OTHER INCOME (EXPENSE):
Interest expense	(6,605)	(5,605)
Interest income	19,709	14,982
(Loss) gain on disposition of property and equipment	(1,324)	1,920
Total	11,780	11,297
INCOME BEFORE INCOME TAXES	3,463,778	621,187
INCOME TAXES	304,797	249,276
NET INCOME	$ 3,158,981	$ 371,911
BASIC EARNINGS PER COMMON SHARE	$ 0.152	$ 0.018
DILUTED EARNINGS PER COMMON SHARE	$ 0.14	$ 0.017
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC	20,754,043	20,751,215
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED	22,554,036	22,377,734

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INCOME TAXES

12 Months Ended

Oct. 31, 2011

Notes to Financial Statements

INCOME TAXES

In June 2011, Pharma-Bio, Pharma-PR and Pharma-Serv obtained a new Grant of Industrial Tax Exemption pursuant to the terms and conditions set forth in Act No. 73 of May 28, 2008 (“Act 73 Grant”) issued by the Puerto Rico Industrial Development Company (“PRIDCO”). The Act 73 Grant is effective as of the Company’s Fiscal Year 2010 (November 1, 2009) and covers a fifteen year period. As a condition to obtaining the new grant, the Company surrendered its prior grant obtained on July 2008 for Pharma-Bio and Pharma-PR, which was granted under Act No. 135 of December 2, 1997 (“Act 135 Grant”). The Act 73 Grant provides relief on various Puerto Rico taxes, including income tax, with certain limitations for most of the activities carried on within Puerto Rico, including those that are for services to parties located outside of Puerto Rico. Both grants established a threshold (“Baseline”) on the Industrial Development Income (“IDI”) subject to the favorable income tax rates. The Baselines of activities covered under the Act 135 Grant were reduced with the Act 73 Grant; also the new Baselines are now gradually reduced to zero within a four year term. In addition, income tax rates “under” and “above” the new Baselines were significantly reduced in the Act 73 Grant. New activities covered under the new Act 73 Grant are not subject to a Baseline and are allowed a four year gradual phase-in to the favorable fixed Act 73 income tax rate. In addition, IDI earnings distributions accumulated since November 1, 2009 are totally exempt from Puerto Rico earnings distribution tax.

For fiscal year 2011 the various activities covered by the Act 73 Grant were subject to different reduced effective income tax rates for a net aggregate effective income tax rate of 5.5%. Prospectively, by fiscal year 2013 all activities covered under the Act 73 Grant will be subject to the Act 73 reduced fixed income tax rate of 4%, since the gradual phase-in of the fixed income tax rate will be completed and the Baselines will have been reduced to zero.

The adoption of the Act 73 Grant in fiscal year 2011 triggered a favorable non-recurring adjustment to fiscal year 2011 income tax expense in the aggregate amount of approximately $200,000, which is attributable to fiscal year 2010 because of the retroactive nature of Act 73 Grant effective date to November 1, 2009. The non-recurring adjustment had the aggregate effect of increasing earnings per share basic and diluted by $0.010 and $0.009, respectively. Furthermore, approximately $700,000 in savings were obtained in fiscal year 2011 alone, and had the effect of increasing earnings per share basic and diluted by $0.043 and $0.031, respectively.

Puerto Rico operations not covered in the exempt activities of the Grants are subject to Puerto Rico income tax at a maximum tax rate of 39% as provided by the 1994 Puerto Rico Internal Revenue Code, as amended. This maximum rate was subsequently reduced to 30% by the 2011 Puerto Rico Internal Revenue Code, which is effective to the Company on November 1, 2011. The operations carried out in the United States by the Company’s subsidiary are taxed in the United States at a maximum regular federal income tax rate of 35%.

Also, upon distribution of earnings by the Puerto Rican subsidiaries to its parent those dividends are taxed at the federal level, however, the parent is able to receive a credit for the taxes paid by the subsidiary on its operations in Puerto Rico, to the extent of the federal taxes that result from those earnings. As a result, the income tax expense of the Company, under its present corporate structure, would normally be the Puerto Rico taxes on operations in Puerto Rico, federal taxes on operations in the United States, plus the earnings distribution tax in Puerto Rico from dividends paid to the Puerto Rican subsidiaries’ parent, and the parent’s federal income tax, if any, incurred upon the subsidiary’s earnings distribution.

Deferred income tax assets and liabilities are computed for differences between the consolidated financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.

As of October 31, 2011 and 2010, the Company has not recognized deferred income taxes on $7,051,084 and $4,701,249 of undistributed earnings of its Puerto Rican subsidiaries, respectively, since such earnings are considered to be reinvested indefinitely. If the earnings were distributed in the form of dividends, the Company would be subject to Puerto Rico earnings distribution tax and United States federal income tax for the aggregate amount of approximately $1,110,000 and $520,000 at October 31, 2011 and 2010, respectively.

The reconciliation between the United States federal statutory rate and our effective tax rate for the years ended October 31, 2011, and 2010 is as follows:

	October 31,
	2011			2010
United States federal statutory rate		35.0	%		35.0	%
Non United States earnings invested indefinitely, and Puerto Rico Act 73Tax Grant effect in 2011		(18.6	)%		5.5	%
Puerto Rico Act 73 Tax Grant effective date backdating for fiscal year 2010		(5.9	)%		—
Other, net		(1.7	)%		(0.4	)%
Effective tax rate		8.8	%		40.1	%

At October 31, 2011, Pharma-IR has unused operating losses of approximately $341,000 (with no expiration) after considering various timing differences for income tax purposes, which result in a potential deferred tax asset of approximately $43,000. However, an allowance has been provided covering the total amount of such balance since it is uncertain whether the net operating losses can be used to offset future taxable income. Realization of future tax benefits related to a deferred tax asset is dependent on many factors, including the company’s ability to generate taxable income. Accordingly, the income tax benefit will be recognized when realization is determined to be more probable than not. These net operating losses are available to offset future taxable income indefinitely.

The Company files income tax returns in the U.S. in federal and various states jurisdictions, Puerto Rico and Ireland. The 2006 through 2011 tax years are open and may be subject to potential examination in one or more jurisdictions. Pharma-Bio’s fiscal year 2008 federal income tax return is currently under examination by the United States Revenue Service. It is management belief that deficiencies assessed, if any, will not be significant to the Company’s financial statements. Currently, the Company has no other federal, state, Puerto Rico or foreign income tax examination.

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OTHER ASSETS

12 Months Ended

Oct. 31, 2011

Notes to Financial Statements

OTHER ASSETS

At October 31, 2011 and 2010 non-current other assets included the following:

	October 31,
Intangible assets:	2011		2010
Covenant not to compete (Pharma-PR acquisition), net of accumulated amortization of $100,000 and $98,334 in October 31, 2011 and 2010, respectively	$	—	$	1,666
Covenant not to compete (Integratek acquisition), net of accumulated amortization of $48,611 and $31,944 in October 31, 2011 and 2010, respectively		1,389		18,056
Total intangible assets net of amortization		1,389		19,722
Other assets		26,917		13,642
Total non-current other assets	$	28,306	$	33,364

Covenant not to compete (Pharma-PR acquisition) represents the portion of the payment made in connection with the purchase of the Pharma-PR stock that was allocated to a non-competition covenant. Under this agreement, the then sole stockholder of Pharma-PR agreed not to compete with the Company for a period of five years. The covenant not to compete of $100,000 was amortized on the straight-line method over the five-year term of the non-competition covenant.

Covenant not to compete (Integratek acquisition) represents the portion of the payment allocated to a non-competition covenant pursuant to the purchase of operations and assets of Integratek, an information technology consulting firm based in Puerto Rico. Under the agreement, the stockholders of Integratek agreed not to compete with the Company for a period of three years. The covenant not to compete of $50,000 is amortized on the straight-line method over the three-year term of the non-competition covenant.

Intangible assets amortization expense for the years ended on October 31, 2011 and 2010 amounted to $18,333 and $36,667, respectively.

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SEGMENT DISCLOSURES

12 Months Ended

Oct. 31, 2011

Notes to Financial Statements

SEGMENT DISCLOSURES

The Company’s segments are based on the organizational structure for which financial results are regularly evaluated by the Company’s chief operating decision maker to determine resource allocation and assess performance. Each reportable segment is managed by its own management team and reports to executive management. The Company has four reportable segments: (i) Puerto Rico technical compliance consulting, (ii) United States technical compliance consulting, (iii) Ireland technical compliance consulting, and (iv) a Puerto Rico microbiological and chemical laboratory testing division (“Lab”). These reportable segments provide services primarily to the pharmaceutical, chemical, medical device and biotechnology industries in their respective markets.

The following table presents information about the reported revenue from services and earnings from operations of the Company for the year ended in October 31, 2011 and 2010. There is no intersegment revenue for the mentioned periods. Corporate expenses that support the operating units have been allocated to the segments. Asset information by reportable segment is not presented, since the Company does not produce such information internally, nor does it use such data to manage its business.

	Year ended October 31,
	2011			2010
REVENUES:
Puerto Rico consulting	$	9,050,694		$	6,470,055
United States consulting		5,868,049			1,422,567
Ireland consulting		3,322,126			2,391,080
Lab (microbiological and chemical testing)		754,814			740,499
Other segments¹		937,499			322,252
Total consolidated revenues	$	19,933,182		$	11,346,453
INCOME (LOSS) BEFORE TAXES:
Puerto Rico consulting	$	2,040,994		$	1,022,885
United States consulting		1,258,077			(168,883	)
Ireland consulting		(71,049	)		22,094
Lab (microbiological and chemical testing)		(299,348	)		(272,063	)
Other segments¹		535,104			17,154
Total consolidated income before taxes	$	3,463,778		$	621,187

¹ Other segments represent activities that fall below the reportable threshold and are carried out in Puerto and United States. These activities include a technical seminars/training division, an information technology services and consulting division, and corporate headquarters, as applicable.

Long lived assets (property and equipment and intangible assets) and related depreciation and amortization expense for the year ended October 31, 2011 and 2010, were concentrated in the domestic markets (Puerto Rico and United States). The aggregate amount of long lived assets for the international operations (Ireland) is considered insignificant.

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EARNINGS PER SHARE

12 Months Ended

Oct. 31, 2011

Notes to Financial Statements

EARNINGS PER SHARE

The following data show the amounts used in the calculations of basic and diluted earnings per share.

	Years ended October 31,
	2011		2010
Net income available to common equity holders - used to compute basic and diluted earnings per share	$	3,158,981	$	371,911
Weighted average number of common shares - used to compute basic earnings per share		20,754,043		20,751,215
Effect of warrants to purchase common stock		1,777,681		1,626,519
Effect of options to purchase common stock		22,312		—
Weighted average number of shares - used to compute diluted earnings per share		22,554,036		22,377,734

For the year ended in October 31, 2010, warrants for the purchase of 7,999,400 shares of common stock were not included in computing diluted earnings per share because their effects were antidilutive. In addition, options for the purchase of 374,585 and 1,267,882 shares of common stock for the years ended in October 31, 2011 and 2010, respectively, were not included in computing diluted earnings per share because their effects were also antidilutive.

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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Oct. 31, 2011

Notes to Financial Statements

COMMITMENTS AND CONTINGENCIES

Capitalized lease obligations - The Company leases vehicles under non-cancelable capital lease agreements with a cost of $167,363 and $90,888 (accumulated amortization of $52,608 and $25,508) as of October 31, 2011 and 2010, respectively. Amortization expense for vehicles under non-cancelable lease agreements amounted to $27,100 and $22,401 in the years ended October 31, 2011 and 2010, respectively.

The following is a schedule, by year, of future minimum lease payments under the capitalized leases together with the present value of the net minimum lease payments at October 31, 2011:

Twelve months ending October 31,	Amount
2012	$	39,132
2013		39,132
2014		28,885
2015		16,775
2016		16,725
Total future minimum lease payments		140,649
Less: Amount of imputed interest		(17,270	)
Present value of future minimum lease payments		123,379
Current portion of obligation under capital leases		(31,142	)
Long-term portion	$	92,237

Operating facilities - The Company conducts its administrative operations in office facilities which are leased under three different rental agreements.

In February 2007, the Company entered into a lease agreement with an affiliate of the chief executive officer for the headquarters and laboratory testing facilities in Dorado, Puerto Rico. The lease agreement is for a term of five years with monthly rental payments of $18,750, $19,687, $20,672, $21,705 and $22,791 for each of the years under the lease. The initial lease agreement term ends in January 2012, and was renewed under the automatic five year-renewal option, which provides yearly increments of five percent. The agreement also requires the payment of utilities, property taxes, insurance and a portion of expenses incurred by the affiliate in connection with the maintenance of common areas.

Effective November 2011, the Company renegotiated with the landlord the lease for the US office facilities located in Plymouth, Pennsylvania. This three-year term lease was due to expire in February 2013 and had $2,100 in monthly rental payments. Under the renegotiation the original lease was cancelled and a new lease was executed for a larger and better located facility, also in Plymouth, Pennsylvania. The new lease is for a five-year term with monthly rental payments of $6,282 for the first three years. Thereafter the lease will increase four percent every year, including a five-year renewal option, if executed.

The Company maintains office facilities in Cork, Ireland. The facilities are under a month-to-month lease with monthly payments of approximately $900.

The Company leases certain apartments as dwellings for employees. The leases are under short-term lease agreements and usually are cancelable upon 30-day notification.

Minimum future rental payments under non-cancelable operating leases having remaining terms in excess of one year as of October 31, 2011 are as follows:

	Amount
2012	$	359,127
2013		373,314
2014		388,211
2015		406,867
2016		426,427
Thereafter		87,262
Total minimum lease payments	$	2,041,208

Rent expense during the years ended October 31, 2011 and 2010 was $293,687 and $316,673, respectively.

Contingencies - In the ordinary course of business, the Company may be a party to legal proceedings incidental to the business. These proceedings are not expected to have a material adverse effect on the Company’s business or financial condition.

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WARRANTS

12 Months Ended

Oct. 31, 2011

Notes to Financial Statements

WARRANTS

At October 31, 2011 and 2010, the Company had outstanding warrants to purchase shares of the Company’s common stock as follows:

					October 31,
	Exercise Price		Expire Date		2011		2010
Investor Warrants A	$	1.10		January 25, 2011		—		3,999,700
Investor Warrants B	$	1.65		January 25, 2011		—		3,999,700
Original Warrants A	$	0.06		January 16, 2014		240,800		249,600
Broker Warrants B	$	0.06		January 24, 2014		1,830,991		1,830,991
Warrants Total						2,071,791		10,079,991

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STOCK OPTIONS AND STOCK BASED COMPENSATION

12 Months Ended

Oct. 31, 2011

Notes to Financial Statements

STOCK OPTIONS AND STOCK BASED COMPENSATION

In October 2005, the Company's board of directors adopted, and on April 25, 2006, the Company’s stockholders approved, the 2005 Long-Term Incentive Plan, covering 2,500,000 shares of common stock. The 2005 plan provides for the grant of incentive and non-qualified options, stock grants, stock appreciation rights and other equity-based incentives to employees, including officers, consultants and directors. The 2005 plan is to be administered by a committee of independent directors. In the absence of a committee, the plan is administered by the board of directors. Options intended to be incentive stock options must be granted at an exercise price per share which is not less than the fair market value of the common stock on the date of grant and may have a term which is not longer than ten years. If the option holder holds at least 10% of the Company’s common stock, the exercise price must be at least 110% of the fair market value on the date of grant and the term of the option cannot exceed five years.

The Company recognizes stock-based compensation based on the fair value of the awards. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which generally represents the vesting period, and includes an estimate of awards that will be forfeited.

The 2005 Plan stock options activity and status for the years ended October 31, 2011 and 2010 was as follows:

	Year ended October 31,
	2011					2010
					Weighted-					Weighted-
		Number of			Average Option		Number of			Average Option
		Shares			Exercise Price		Shares			Exercise Price
Outstanding at beginning of year		1,267,882		$	0.6942		1,342,913		$	0.6833
Granted		40,000		$	0.2600		40,000		$	0.3400
Exercised		—					—
Expired and/or forfeited		(853,297	)	$	0.7344		(115,031	)	$	0.4437
Total outstanding at end of year		454,585		$	0.5804		1,267,882		$	0.6942
Outstanding exercisable stock options at end of year		424,585		$	0.5974		1,154,547		$	0.7065
		October 31, 2011					October 31, 2010
Weighted average remaining years in contractual life for:
Total outstanding options		1.7 years					1.0 years
Outstanding exercisable options		1.5 years					0.8 years
Shares of common stock available for issuance pursuant to future stock option grants		2,045,415					1,232,118

The following table presents the stock-based compensation included in the Company’s consolidated statement of income and the effect in earnings per share:  

	Year ended October 31,
	2011			2010
Stock-based compensation expense:
Cost of services	$	—		$	1,846
Selling, general and administrative		8,664			41,532
Stock-based compensation before tax		8,664			43,378
Income tax benefit		—			—
Net stock-based compensation expense	$	8,664		$	43,378
Effect on earnings per share:
Basic earnings per share	$	(0.001	)	$	(0.002	)
Diluted earnings per share	$	(0.001	)	$	(0.002	)

As of October 31, 2011, estimated stock based compensation expense to be recognized in future periods for granted nonvested stock options amounted to approximately $3,000. These nonvested stock options compensation expense will be recognized in a weighted average period of approximately 0.5 years.

The fair value of stock-based awards to employees is calculated using the Black-Scholes option pricing model. The Black-Scholes model requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. The expected term of the option has been estimated using the “simplified” method as provided in Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin No. 107. Under this method, the expected term equals the arithmetic average of the vesting term and the contractual term of the option. The risk-free rate is based on the U.S. Treasury rates in effect during the corresponding period of grant. The expected volatility is based on the historical volatility of the Company’s stock price. These factors could change in the future, which would affect fair values of stock options granted in such future periods, and could cause volatility in the total amount of the stock-based compensation expense reported in future periods.

The following weighted average assumptions were used to estimate the fair value of stock options granted for the years ended October 31, 2011 and 2010:

	Year ended October 31,
	2011			2010
Expected dividend yield		0.0	%		0.0	%
Expected stock price volatility		74.3	%		135.2	%
Risk free interest rate		1.0	%		1.5	%
Expected life of options		3.2 years			3.2 years
Weighted average fair value of options granted	$	0.1299		$	0.2552

As of October 31, 2011, the aggregate intrinsic value of options outstanding was approximately $91,000. The aggregate intrinsic value represents the difference between the Company’s stock price at year end and the exercise price, multiplied by the number of in-the money options had all option holders exercised their options. This amount changes based on the fair market value of the Company’s stock. For the years ended October 31, 2011 and 2010, no stock options were exercised.

In January 2012, in accordance with the Company's Long Term Incentive Plan, the Company's Compensation Committee granted a total of 800,000 stock option awards to employees and executives.

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Consolidated Statements of Changes in Stockholders' Equity (USD $)	Common Stock	Preferred Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Beginning Balance - Amount at Oct. 31, 2009	$ 2,075	$ 0	$ 602,508	$ 4,068,817	$ (10,423)	$ 4,662,977
Beginning Balance - Shares at Oct. 31, 2009	20,751,215	0
Stock-based compensation			43,378			43,378
COMPREHENSIVE INCOME:
NET INCOME				371,911		371,911
FOREIGN CURRENCY TRANSLATION ADJUSTMENT					(8,795)	(8,795)
OTHER COMPREHENSIVE INCOME						(8,795)
COMPREHENSIVE INCOME						363,116
Ending Balance, Amount at Oct. 31, 2010	2,075	0	645,886	4,440,728	(19,218)	5,069,471
Beginning Balance - Shares at Oct. 31, 2010	20,751,215
Stock-based compensation			8,664			8,664
CASHLESS CONVERSION OF WARRANTS TO SHARES OF COMMON STOCK, Shares	7,480
CASHLESS CONVERSION OF WARRANTS TO SHARES OF COMMON STOCK, Amount	1			(1)		0
COMPREHENSIVE INCOME:
NET INCOME				3,158,981		3,158,981
FOREIGN CURRENCY TRANSLATION ADJUSTMENT					(791)	(791)
OTHER COMPREHENSIVE INCOME						(791)
COMPREHENSIVE INCOME						3,158,190
Ending Balance, Amount at Oct. 31, 2011	$ 2,076	$ 0	$ 654,550	$ 7,599,708	$ (20,009)	$ 8,236,325
Ending Balance, Shares at Oct. 31, 2011	20,758,695

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PROPERTY AND EQUIPMENT

12 Months Ended

Oct. 31, 2011

Notes to Financial Statements

PROPERTY AND EQUIPMENT

The balance of property and equipment at October 31, 2011 and 2010 consisted of the following:

			October 31,
	Useful life (years)		2011			2010
Vehicles		5	$	250,617		$	174,142
Leasehold improvements		5-8		598,040			588,358
Computers		3		420,482			386,148
Equipment		3-7		1,036,981			987,172
Furniture and fixtures		10		137,215			120,216
Projects in progress		—		23,524			15,329
Total				2,466,859			2,271,365
Less: Accumulated depreciation and amortization				(1,250,748	)		(950,107	)
Property and equipment, net			$	1,216,111		$	1,321,258