XML 69 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
12 Months Ended 84 Months Ended
Oct. 31, 2012
Oct. 31, 2011
Oct. 31, 2012
Cash flows from operating activities:      
Net loss $ (1,249,491) $ (1,495,607) $ (17,602,280)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation 35,925 14,492 176,373
Gain on extinguishment of debt (288,192)    (288,192)
Amortization of costs and fees related to convertible debentures 356,487 183,904 1,160,234
Common stock issued for services    42,750 2,144,790
Common stock issued to officers, directors and consultants for services 132,796 59,385 3,211,491
Common stock issued for shares of subsidiary stock       254,000
Common stock of subsidiary issued to employees and consultants       2,815
Common stock issued as a commission       3,000
Common stock issued for accounts payable    18,000 296,583
Common stock issued to former licensee       41,319
Common stock issued/recovered on cancelled agreements       20,478
Non-cash compensation for stock options and warrants    29 631,923
Costs and fees related to issuance of convertible debt 3,288 2,139 542,540
Interest expense related to beneficial conversion feature       1,944,800
Interest paid with common stock    13,651 118,487
Interest on notes receivable for common stock       (1,373)
(Increase) decrease in assets:      
Related party receivables (15,269)    (15,269)
Prepaid expenses (30,900) 86,648 (5,529)
Inventories (25,600) 15,116 (101,388)
Increase (decrease) in liabilities:      
Derivate liability (175,865) 175,865   
Trade accounts payable (131,650) 137,746 484,894
Accounts payable to officers and directors 92,541 182,385 752,623
Accrued payroll and other expenses 172,332 99,274 433,649
Net cash used in operating activities (1,123,598) (464,223) (5,794,032)
Cash flows from investing activities:      
Purchase of fixed assets (79,789)    (217,143)
Net cash used in investing activities (79,789)    (217,143)
Cash flows from financing activities:      
Principal payments on notes payable to stockholder (140,500)    (1,273,500)
Proceeds from issuance of notes payable to a related party 80,000 34,000 1,119,800
Proceeds from issuance of notes and convertible notes payable 75,000 339,869 1,604,234
Proceeds from issuance of common stock 1,273,813 103,436 3,455,475
Net cash provided by financing activities 1,288,313 477,305 4,906,009
Net change in cash 84,926 13,082 (1,105,166)
Cash at beginning of period 5,206 (7,876) 1,195,298
Cash at end of period 90,132 5,206 90,132
Supplemental Disclosure of Cash Flow Information      
Interest paid    664 10,985
Income taxes paid 1,600 1,600 20,240
Supplemental Schedule of Non-Cash Investing and Financing Activities      
Conversion of convertible notes payable to shares of common stock 395,000 372,365  
Notes converted by stockholders 315,500     
Common stock issued in consideration for accounts payable and accrued payroll 680,804     
Interest paid with common stock 127,982 13,651  
Common stock issued in consideration for loans 3,288 2,139  
Reclassification of inventory to fixed assets    $ 75,788