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Notes Payable
6 Months Ended
Apr. 30, 2013
Debt Disclosure [Abstract]  
Notes Payable

  9. Notes Payable

 

At April 30, 2013 and October 31, 2012, without taking into effect any unamortized discounts, notes payable to an officer and to stockholders consisted of the following:

 

          October 31, 2012  
    April 30, 2013     (Audited)  
Unsecured, interest-free convertible notes payable to former officer/director of the Company; principal due on payment schedule through May 2014.   $ 114,450     $ 136,950  
                 
Unsecured convertible note payable to various stockholders; principal and interest at 6% due between December 9, 2010 and April 20, 2011.     52,000       52,000  
      166,450       188,950  
                 
Less current maturities     164,500       142,000  
                 
Long term portion of notes payable   $ 1,950     $ 46,950  

 

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, $24,339 in accrued interest and $13,120 in unpaid fees and expenses due Michael Brennan over a 25-month payment schedule commencing May 1, 2012. Payments due Mr. Brennan for February, March and April 2013, each in the amount of $7,500, have not been made per the payment schedule. As of April 30, 2013, payments have been made to Mr. Brennan to reduce the principal balance to $114,450.

 

With the exception of the above $114,450 in notes payable to a former officer and director, and the overdue payments due to Mr. Brennan, all of the above notes payable were past due as of April 30, 2013. The Company is currently negotiating with holders of the remaining $52,000 in principal notes to either extend the maturity date or convert the notes into shares of common stock.