Stock Options and Warrants (Tables)

12 Months Ended

Oct. 31, 2012

Stock Options And Warrants

Summary of Stock Options Granted

The options granted have contractual lives ranging from three to ten years.

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at October 31, 2010		5,900,000		$	0.10		1.9	$	—
Granted		100,000			0.30
Exercised		—			—
Expired		(3,000,000	)		0.12
Canceled		—			—
Outstanding at October 31, 2011		3,000,000			0.09		2.1	$	—
Granted		—			—
Exercised		—			—
Expired		(200,000	)		0.16
Canceled		—			—
Outstanding at October 31, 2012		2,800,000		$	0.08		1.2	$	—

weighted Average Assumptions for Grants

The values of the options were estimated using the Black-Scholes Option Pricing Model with the following weighted average assumptions for grants made in 2012 and 2011.

	2012		2011
Risk-free interest rate		—		1.35	%
Expected dividend yield		—		—
Expected stock price volatility		—		1.62
Expected life in years		—		2 years

Summary of Options Outstanding

Summary information about the Company’s options outstanding at October 31, 2012 is set forth in the table below. Options outstanding at October 31, 2012 expire between January 2013 and January 2016.

Range of Exercise Prices	Options Outstanding October 31, 2012		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Options Exercisable October 31, 2012		Weighted Average Exercise Price
$0.02 - $0.15		2,200,000		1.4	$	0.03		2,200,000	$	0.03
$0.24 - $0.30		600,000		0.3	$	0.29		600,000	$	0.29
TOTAL:		2,800,000						2,800,000

Summary of Warrants Granted to Non-Employees

Warrants outstanding at October 31, 2012 expire between September 2013 and April 2015.

	Number of Warrants			Weighted Average Exercise Price
Outstanding at October 31, 2010		5,500,000		$	0.02
Granted		—			—
Exercised		—			—
Expired		(500,000	)		0.10
Outstanding at October 31, 2011		5,000,000			0.01
Granted		206,666,666			0.002
Exercised		—			—
Cancelled		(133,333,333	)		—
Expired		(5,000,000	)		0.01
Outstanding at October 31, 2012		73,333,333		$	0.002

Weighted Average Assumptions for Grants, Warrants

The values of the warrants were estimated using the Black-Scholes Option Pricing Model with the following weighted average assumptions for grants made in 2012 and 2011:

	2012			2011
Risk-free interest rate		0.72	%		1.57	%
Expected dividend yield		—			—
Expected stock price volatility		1.89			3.68
Expected life in years		1.7 years			2 years

Summary of Warrants Outstanding

Summary information about the Company’s warrants outstanding at October 31, 2012 is as follows:

Range of Exercise Prices		Warrants October 31, 2012		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Warrants Exercisable October 31, 2012		Weighted Average Exercise Price
$	0.002		40,000,000		2.5	$	0.002		40,000,000	$	0.002
$	0.003		33,333,333		0.9	$	0.003		33,333,333	$	0.003
	TOTAL:		73,333,333						73,333,333