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Subsequent Events (Unaudited)
12 Months Ended
Oct. 31, 2013
Subsequent Events [Abstract]  
Subsequent Events

13. Subsequent Events (Unaudited)

 

On or about November 12, 2013, the Company was served with a Complaint brought in the Superior Court of Orange County, California by a vendor for non-payment of $9,894 in services performed. The Company has not contested the amount due and expects to negotiate a payment arrangement with the vendor in the near future.

 

On November 8, 2013 and on December 13, 2013, the Company issued 20,000 shares of common stock to a major stockholder for proceeds of $20,000, or $0.50 per share. The stockholder also received six-month warrants to purchase an additional 20,000 shares of common stock at $1.00 per share.

 

On November 13, 2013, the Company’s Chief Scientist, David Haavig, purchased 100,000 shares of common stock for $0.50 per share, or $50,000.

 

On December 19, 2013, a major stockholder purchased 20,000 shares of common stock for proceeds of $10,000, or $0.50 per share. He received six-month warrants to purchase an additional 10,000 shares of common stock at $1.00 per share as part of the purchase transaction.

 

On November 19, 2013, the Company established the 2014 Employee Benefit Plan (the “Plan”) which authorizes the issuance of up to 525,000 shares, or options underlying shares, to eligible employees, consultants or advisors of the Company. On November 19, 2013, the Board of Directors granted three-year options to purchase 100,000 and 125,000 shares of common stock under the Plan to the Company’s President, Jeffrey Nunez, at exercise prices of $0.50 and $1.00 per share, respectively. Additional three-year options to purchase 175,000 shares of common stock at $1.00 per share were also granted under the Plan to three other employees of the Company on November 19, 2013.

 

Between November 8, 2013 and January 29, 2014, Gregg Newhuis, a member of the Board of Directors, loaned the Company $34,000. The loans bear interest at the rate of 6% per annum and are payable on demand.

 

On January 9, 2014, the Company entered into a Securities Purchase Agreement and executed a Convertible Promissory Note with Asher Enterprises in the sum of $32,500. On or about January 29, 2014, the proceeds of the note, net of $2,500 in legal fees, were paid to the Company’s independent accounting firm.

 

On January 27, 2014, the Company issued 68,306 shares of common stock upon the conversion of $15,000 in convertible debentures held by Asher Enterprises at a conversion price of $0.2196 per share.