Notes Payable

6 Months Ended

Apr. 30, 2012

Debt Disclosure [Abstract]

Notes Payable

7. Notes Payable

At April 30, 2012 and October 31, 2011, notes payable to an officer and to stockholders consisted of the following:

			October 31,
	April 30, 2012		2011 (Audited)
Unsecured convertible note payable to major stockholder; principal and interest at 6% due on March 10, 2010.	$	64,000	$	64,000
Unsecured convertible note payable to major stockholder; principal and interest at 6% due on October 15, 2010.		30,000		30,000
Unsecured, interest-free convertible notes payable to former officer/director of the Company; principal due on payment schedule through May 2014.		160,000		160,000
Unsecured notes payable to officers/directors of the Company; principal and interest at 6% due on April 9, 2011.		—-		164,000
Unsecured convertible note payable to various stockholders (including $20,000 to major stockholder); principal and interest at 6% due between November 27, 2010 and February 2, 2013.		191,980		147,000
		445,980		565,000
Less current maturities		445,980		565,000
Long term portion of notes payable	$	—	$	—

Concurrent with his April 13, 2012 resignation as Chairman of the Board of Directors and Chief Executive Officer, the Company agreed to repay a total of $160,000 in principal loans due Michael Brennan over a 25-month payment schedule commencing May 1, 2012. The agreement also provides for repayment of $24,339 in interest accrued on those loans and $13,120 in unpaid fees and expenses through his resignation date.

With the exception of the above $160,000 in notes payable to a former officer and director and a note to a stockholder for $30,000, which is due in full on February 2, 2013, all of the above notes payable were past due as of April 30, 2012. During May 2012, the Company reduced the principal balance of notes outstanding by $203,980 through repayments and conversions into common stock. See Note 11 – “Subsequent Events.” The Company is currently negotiating with holders of the remaining $80,000 in principal notes to either extend the maturity date or convert the notes into shares of common stock.