Segment Information

9 Months Ended

Jul. 31, 2012

Segment Reporting Disclosure [Text Block]

9.         SEGMENT INFORMATION

We follow the accounting guidance of ASC 280 “Segment Reporting” (“ASC 280”).  Reportable operating segments are determined based on management’s approach.  The management approach, as defined by ASC 280, is based on the way that the chief operating decision-maker organizes the segments within an enterprise for making operating decisions and assessing performance.  While our results of operations are primarily reviewed on a consolidated basis, the chief operating decision-maker also manages the enterprise in two segments: (i) Display Technology and (ii) Encryption Products and Services.  The following represents selected financial information for our segments for the nine-month and three- month periods ended July 31, 2012 and 2011:

Segment Data	Display Technology	Encryption Products and Services	Total
Nine Months Ended July 31, 2012:
Net revenue	$ 940,010	$ 6,725	$ 946,735
Net loss	(2,199,560)	(192,736)	( 2,392,296)
Nine Months Ended July 31, 2011:
Net revenue	$ 426,000	$ 128,233	$ 554,233
Net loss	(3,878,176)	(708,471)	(4,586,647)

Segment Data	Display Technology	Encryption Products and Services	Total
Three Months Ended July 31, 2012:
Net revenue	$ 246,670	$ 2,800	$ 249,470
Net income (loss)	(631,188)	2,086	(629,102)
Three Months Ended July 31, 2011:
Net revenue	$ 426,000	$ 24,360	$ 450,360
Net loss	(1,576,313)	(197,185)	(1,773,498)

In the second and third quarters of fiscal year 2012 we devoted all our efforts to the display technology segment.  Accordingly, the only expense allocated to the encryption segment was the cost of encryption products sold.