Related Party Transactions

12 Months Ended

Oct. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

(3) Related Party Transactions

The Company has a note receivable from the former president and director totaling $3,673 and $17,826 at October 31, 2012 and 2011, respectively. Interest accrues at the rate of 6% per annum.

The Company has a deferred compensation agreement with the former president and director of the Company for deferred compensation payments. The Company will make deferred compensation payments with a present value of $17,211, payable over the first four months of fiscal 2013. A portion of the deferred compensation payments will be used to repay the outstanding note receivable discussed above.

The statements of income includes interest income on a previous officer and director note receivable of $684 and $1,507 for the years ended October 31, 2012 and 2011, respectively.

Leland E. Boren, a shareholder and director of the Company, is the owner of Avis Industrial Corporation (Avis). Mr. Borens controls 51.0% of the outstanding shares of the Company. Avis owns 100% of American Baler Company, a competitor of the Company. These baler companies operate independent of each other. The Company had no equipment sales to American Baler Corporation in the years ending October 31, 2012 and 2011. International Baler purchased no equipment or services from American Baler.