Notes Payable

9 Months Ended

Jul. 31, 2013

Debt Disclosure [Abstract]

Notes Payable

8. Notes Payable

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

	July 31, 2013		October 31, 2012
			(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
Unsecured notes payable to officers and directors of the Company; principal and interest at 6% payable on demand		16,000		—
		182,450		188,950
Less current maturities		182,450		142,000
Long term portion of notes payable	$	—	$	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 since February 2013, each in the amount of $7,500, have not been made per the payment schedule. As of July 31, 2013, the principal balance due to Mr. Brennan amounts to $114,450 and, although Mr. Brennan originally waived interest on the note, the Company has accrued $9,059  in interest on that amount as of July 31, 2013.

With the exception of the demand notes due current officers and directors and the overdue payments due to Mr. Brennan, all of the above notes payable were past due as of July 31, 2013. The Company is currently negotiating with holders of the remaining notes to either extend the maturity date or convert the notes into shares of common stock.