10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 31, 2014 Commission file number 0-16416

MICRO IMAGING TECHNOLOGY, INC.

(Exact name of registrant as specified in its charter)

California	33-0056212
(State or Other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification No.)

970 Calle Amanecer, Suite F, San Clemente, California 92673

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (949) 388-4547

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

Common Stock, par value $0.01 per share

(Title of Class)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ].

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer [  ]	Accelerated filer [  ]	Non-accelerated filer [  ]	Smaller reporting company [X]
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes [  ] No [X].

At March 12, 2014, there were 5,411,333 shares of the Registrant’s common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE: NONE

TABLE OF CONTENTS

		Page
	PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheet as of January 31, 2014 (Unaudited) and October 31, 2013 (Audited)	3
	Condensed Consolidated Statements of Operations Three months ended January 31, 2014 and January 31, 2014 And the Cumulative Period November 1, 2005 to January 31, 2014 (Unaudited)	4
	Condensed Consolidated Statements of Cash Flows Three months ended January 31, 2014 and January 31, 2014 And the Cumulative Period November 1, 2005 to January 31, 2014 (Unaudited)	5
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Plan of Operation	18
Item 3.	Controls and Procedures	21
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	21
Item 2.	Changes in Securities	22
Item 3.	Omitted as not applicable	22
Item 4.	Omitted as not applicable	22
Item 5.	Other Information	22
Item 6.	Exhibits and Reports on Form 8-K	22
SIGNATURES		23

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Micro Imaging Technology, Inc. and Subsidiary

(A Development Stage Company)

Condensed Consolidated Balance Sheets

January 31, 2014 (Unaudited) and October 31, 2013 (Audited)

	January 31, 2014			October 31, 2013
ASSETS
Current assets:
Cash	$	-		$	5,007
Inventories		67,487			67,487
Prepaid expenses		2,928			897
Total current assets		70,415			73,391
Fixed assets, net		97,186			111,570
Total assets	$	167,601		$	184,961
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Liabilities:
Current liabilities:
Bank overdraft	$	5,983		$	-
Notes payable to stockholder, net of unamortized discount of $0 and $844 in 2014 and 2013, respectively		235,450			200,606
Convertible notes payable, net of unamortized discount of $57,394 and $60,050 in 2014 and 2013, respectively		109,973			89,818
Accounts payable - trade		357,259			336,372
Accounts payable to officers and directors		155,989			131,472
Accrued payroll		312,681			244,031
Derivative liability		87,136			75,557
Anti-dilution liability		20,087			23,358
Other accrued expenses		87,590			81,016
Total current liabilities		1,372,148			1,182,230
Long-term liabilities:
Redeemable convertible preferred stock, $0.01 par value; 5,200 shares authorized, issued and outstanding at January 31, 2014 and October 31, 2013, respectively		26,000			26,000
Total long term liabilities		26,000			26,000
Total liabilities		1,398,148			1,208,230
Commitments and contingencies
Stockholders’ (deficit):
Common stock, $0.01 par value; 25,000,000 shares authorized; 5,381,333 and 5,153,027 shares issued and outstanding at January 31, 2014 and October 31, 2013, respectively		53,814			51,531
Additional paid-in capital		45,699,303			45,335,031
Accumulated deficit from previous operating activities		(27,809,201	)		(27,809,201	)
Deficit accumulated during the development stage		(19,174,463	)		(18,600,630	)
Total stockholders’ (deficit)		(1,230,547	)		(1,023,269	)
Total liabilities and stockholders’ (deficit)	$	167,601		$	184,961

The accompanying notes are an integral part of the condensed consolidated financial statements.

3

Micro Imaging Technology, Inc. and Subsidiary

(A Development Stage Company)

Condensed Consolidated Statements of Operations

Three months Ended January 31, 2014 and January 31, 2013

And the Cumulative Period November 1, 2005 to January 31, 2014

(Unaudited)

							Cumulative period
							from
	Three months ended						November 1, 2005
	January 31,						through
	2014			2013			January 31, 2014
Sales	$	-		$	-		$	58,000
Cost of Sales		-			-			29,886
Gross profit		-			-			28,114
Operating costs and expenses:
Research and development		170,135			143,310			6,012,478
Sales, general and administrative		297,789			142,236			8,775,752
Total operating expenses		467,924			285,546			14,788,230
Loss from operations		(467,924	)		(285,546	)		(14,760,116	)
Other income (expense):
Interest income		-			11			11,464
Interest expense		(116,343	)		(7,935	)		(5,093,978	)
Gain on derivative instruments		8,763			-			166,820
Gain on anti-dilution provision		3,271			-			45,314
Other income (expense), net		-			-			470,433
Total other income (expense), net		(104,309	)		(7,924	)		(4,399,947	)
Loss from operations:
Before provision for income tax		(572,233	)		(293,470	)		(19,160,063	)
Provision for income tax		(1,600	)		(1,600	)		(14,400	)
Net loss		(573,833	)		(295,070	)		(19,174,463	)
Net loss attributable to:
Non-controlling interest		(48,657	)		(39,955	)		(1,430,140	)
Micro Imaging Technology, Inc. stockholders		(525,176	)		(255,115	)		(17,744,323	)
Net loss	$	(573,833	)	$	(295,070	)	$	(19,174,463	)
Net loss per share, basic and diluted	$	(0.11	)	$	(0.06	)
Shares used in computing net loss per share, basic and diluted		5,281,524			4,623,019

The accompanying notes are an integral part of the condensed consolidated financial statements.

4

Micro Imaging Technology, Inc. and Subsidiary

(A Development Stage Company)

Condensed Consolidated Statements of Cash Flows

Three months Ended January 31, 2014 and January 31, 2013

And the Cumulative Period November 1, 2005 to January 31, 2014

(Unaudited)

							Cumulative period
							from
	Three months ended						November 1, 2005
	January 31,						to
	2014			2013			January 31, 2014
Cash flows from operating activities:
Net loss	$	(573,833	)	$	(295,070	)	$	(19,174,463	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		15,654			12,764			280,528
Gain on extinguishment of debt		-			-			(288,192	)
Change in value of derivatives		(8,763	)		-			(166,820	)
Change in anti-dilution liability		(3,271	)		-			(45,314	)
Amortization of costs and fees related to convertible debentures		35,114			5,057			1,377,651
Common stock issued for services		-			-			2,144,790
Common stock issued to officers, directors and consultants for services		-			-			3,212,484
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		-			-			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		260,282			-			892,205
Costs and fees related to issuance of convertible debt		-			-			542,540
Interest expense related to beneficial conversion feature		-			-			1,942,820
Interest paid with common stock		-			-			118,487
Interest on notes receivable for common stock		-			-			(1,373	)
(Increase) decrease in assets:
Related party receivables		-			3,254			-
Prepaid expenses		(2,031	)		14,979			22,663
Inventories		-			(41,887	)		(143,275	)
Increase (decrease) in liabilities:
Trade accounts payable		20,887			57,165			690,575
Accounts payable to officers and directors		24,517			16,635			863,029
Accrued payroll and other expenses		75,224			20,933			637,623
Net cash used in operating activities		(156,220	)		(206,170	)		(6,475,847	)
Cash flows from investing activities:
Purchase of fixed assets		(1,270	)		(3,500	)		(260,130	)
Capitalization of software		-			-			(35,313	)
Net cash used in investing activities		(1,270	)		(3,500	)		(295,443	)

The accompanying notes are an integral part of the condensed consolidated financial statements.

5

Micro Imaging Technology, Inc. and Subsidiary

(A Development Stage Company)

Condensed Consolidated Statements of Cash Flows (Continued)

Three months Ended January 31, 2014 and January 31, 2013

And the Cumulative Period November 1, 2005 to January 31, 2014

(Unaudited)

							Cumulative period
							from
	Three months ended						November 1, 2005
	January 31,						to
	2014			2013			January 31, 2014
Cash flows from financing activities:
Bank overdraft		5,983			-			5,983
Principal payments on notes payable to stockholder		-			(22,500	)		(1,301,800	)
Proceeds from issuance of notes payable to a related party		34,000			-			1,194,600
Proceeds from issuance of notes and convertible notes payable		32,500			-			1,721,734
Proceeds from issuance of common stock		80,000			145,000			3,955,475
Net cash provided by financing activities		152,483			122,500			5,575,992
Net change in cash		(5,007	)		(87,170	)		(1,195,298	)
Cash at beginning of period		5,007			90,132			1,195,298
Cash at end of period	$	-		$	2,962		$	-
Supplemental Disclosure of Cash Flow Information
Interest paid	$	-		$	-		$	-
Income taxes paid	$	-		$	1,600		$	-
Supplemental Schedule of Non-Cash Investing and Financing Activities
Conversion of convertible notes payable to shares of common stock	$	15,000		$	-
Common stock issued in consideration for accounts payable and accrued payroll	$	-		$	12,000

The accompanying notes are an integral part of the condensed consolidated financial statements.

6

MICRO IMAGING TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Nature of our Business, Development Stage Company and Continuance of Operations

These unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America applicable to a going concern which contemplated the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. Since inception, the Company has incurred substantial losses and there is substantial doubt that the Company will generate sufficient revenues in the foreseeable future to meet its operating cash requirements. Accordingly, the Company’s ability to continue operations depends on its success in obtaining additional capital in an amount sufficient to meet its cash needs. This raises substantial doubt about its ability to continue as a going concern. These financial statements do not include any adjustments that might result from this uncertainty.

Our independent registered public accounting firm has included an explanatory paragraph in its report on the financial statements for the year ended October 31, 2013 which raises substantial doubt about our ability to continue as a going concern.

Micro Imaging Technology, Inc. (the “Company”), a California corporation, is a holding company whose operations are conducted through its Nevada subsidiary, Micro Imaging Technology (“MIT”). As of January 31, 2014, the Company owned eighty point seven percent (80.7%) of the issued and outstanding stock of MIT.

The losses incurred to date which are applicable to the minority stockholders of the Company’s consolidated subsidiary, MIT, exceed the value of the equity held by the minority stockholders. Such losses have been allocated to the Company as the majority stockholder and are included in the net loss and accumulated deficit in the condensed consolidated financial statements for the three months ended January 31, 2014. Any future profits reported by our subsidiary will be allocated to the Company until the minority’s share of losses previously absorbed by the Company have been recovered.

In 1997, the Company began marketing a small, point-of-use water treatment product aimed at the high purity segment of commercial and industrial water treatment markets. In February 2000, the Company formed Electropure EDI, Inc. (EDI), a wholly-owned Nevada subsidiary, through which all manufacturing and sales of its proprietary water treatment products were then conducted. In October 2005, the Company sold the assets of the EDI subsidiary and discontinued operations.

The Company acquired, in October 1997, an exclusive license to the patent and intellectual property rights involving laser light scattering techniques to be utilized in the detection and monitoring of toxicants in drinking water. In February 2000, the Company formed Micro Imaging Technology (MIT), a majority-owned Nevada subsidiary, to conduct research and development based upon advancements developed and patented from the licensed technology. The technology being developed is a non-biologically based system utilizing both proprietary hardware and software to rapidly (near real time) determine the specific specie of an unknown microbe present in a fluid with a high degree of statistical probability (“MIT system”). It will analyze a sample presented to it and compare its characteristics to a library of known microbe characteristics on file. At present, it is the Company’s only operation.

Effective with the sale of its EDI operation in October 2005, the Company’s planned principal operation, the further development and marketing of its remaining technology, has not produced any significant revenue and, as such, the Company, beginning with the fiscal year starting November 1, 2005, is considered a development stage enterprise.

2. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include all adjustments, consisting solely of normal recurring adjustments which management believes are necessary for a fair presentation of the Company’s financial position at January 31, 2014 and results of operations for the periods presented.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted.

7

MICRO IMAGING TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. The accompanying condensed consolidated financial statements should be read in conjunction with our audited financial statements and footnotes as of and for the year ended October 31, 2013, included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 13, 2014.

Going Concern

The accompanying financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. The Company has not generated revenue, and has negative cash flows from operations, which raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, additional cash infusion. The Company has obtained funds from several stockholders and believes this funding will continue. Management believes the existing stockholders will provide the additional cash needed to meet the Company’s obligations as they become due, and will allow the development of its core business.

3. Concentration of Credit Risk and Other Risks and Uncertainties

Litigation and Claims

Alpine MIT Partners

On May 16, 2012, Alpine MIT Partners, LLC (Plaintiffs) filed a civil action against the Company and its Chairman and Chief Executive Officer, Jeffrey G. Nunez, (collectively, the Company), in the Texas District Court, Travis County. Plaintiffs alleged breach of contract and civil conspiracy, as well as tortious interference with contractual relations and prospective business relations. The lawsuit alleges that the Company breached certain provisions of a March 7, 2012 Securities Purchase Agreement the Company executed with the Plaintiff to sell up to $2.0 million of 7% Senior Secured five-year Convertible Debentures convertible into shares of common stock at a conversion rate of $.003 per share. The purchase and sale of the first $1.0 million Debenture was scheduled to close on or before April 6, 2012 and was subject to, among other things, Alpine closing the necessary equity funding to consummate the transactions. No money was ever received by the Company from Alpine. At a March 7, 2013 hearing, the Texas court upheld the Company’s argument and dismissed the complaint against the Company for lack of jurisdiction.

In August, 2013, Alpine filed an amended Complaint against Jeffrey Nunez in the Texas case alleging tortuous interference and conspiracy to terminate the March 7, 2012 Securities Purchase Agreement.

On January 10, 2013, the Company learned that Plaintiffs had filed a lien against the Company’s patents on May 8, 2012 with the California Secretary of State under the Uniform Commercial Code. On or about January 29, 2013, the Company filed suit against Alpine MIT Partners, LLC in the Orange County, California Superior Court alleging, among other claims, that the UCC filing is unauthorized. The lawsuit also names the managing director and managing member of Alpine as Defendants and alleges that they made false promises, intentional misrepresentations and breached the contract which is the subject of the Texas suit. The Company is seeking damages of $1.6 million. This lawsuit is currently in the discovery phase.

Michael W. Brennan

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. Due to lack of funds, the Company has not made payments due Mr. Brennan since February 2013, each in the amount of $7,500. As of January 31, 2014, the principal balance due under the agreement amounted to $113,450 and, although Mr. Brennan originally waived interest on the note, the Company has accrued $13,466 in interest on that amount as of January 31, 2014.

8

MICRO IMAGING TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements

(Unaudited)

On or about October 4, 2013, Mr. Brennan filed a lawsuit in the California Superior Court of Los Angeles for breach of contract for failure to pay monies due him under the above 2012 agreement. The lawsuit seeks $123,509 in principal damages, plus interest, costs and attorney fees. The Company has filed an answer to the complaint and is contesting the amount due Mr. Brennan. This lawsuit is currently in the discovery phase.

Other Litigation

On or about November 12, 2013, a vendor filed suit in the Orange County California Superior Court for non-payment of $9,894 in fees for services rendered. In or around December 2013, the vendor received a default judgment in the case and on January 23, 2014 filed a lien against the Company with the California Secretary of State. The Company anticipates negotiating a payment schedule with this vendor.

We are subject from time to time to litigation, claims and suits arising in the ordinary course of business. Other than the above-described litigation, as of January 31, 2014, we were not a party to any material litigation, claim or suit whose outcome could have a material effect on our financial statements.

In accordance with accounting standards regarding loss contingencies, the Company accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated, and the Company discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for its financial statements not to be misleading. The Company does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote.

Because litigation outcomes are inherently unpredictable, the Company’s evaluation of legal proceedings often involves a series of complex assessments by management about future events and can rely heavily on estimates and assumptions. If the assessments indicate that loss contingencies that could be material to any one of its financial statements are not probable, but are reasonably possible, or are probable, but cannot be estimated, then the Company discloses the nature of the loss contingencies, together with an estimate of the range of possible loss or a statement that such loss is not reasonably estimable. While the consequences of certain unresolved proceedings are not presently determinable, and an estimate of the probable and reasonably possible loss or range of loss in excess of amounts accrued for such proceedings cannot be reasonably made, an adverse outcome from such proceedings could have a material adverse effect on its financial statements in any given reporting period. However, in the opinion of Management, after consulting with legal counsel, the ultimate liability related to the current outstanding litigation is not expected to have a material adverse effect on its financial statements.

Management is of the opinion that the ultimate resolution of such matters now pending will not have a material adverse effect on the Company’s consolidated results of operations, financial position or cash flows. However, the outcome of legal proceedings cannot be predicted with any degree of certainty.

Antidilution Liability

The Company has recorded a $20,087 liability to allow for the possible dilutive impact of equity issuances that alter or effect conversion or exchange rates existing on the various dates of conversion or exercise of securities having adjustable conversion rates. The liability is adjusted to reflect current fair market value at the end of each fiscal period. Due to the decline in the Company’s stock price, we recorded a gain of $42,043 and $3,271 at October 31, 2013 and January 31, 2014, respectively.

Accrued Payroll, Payroll Taxes and Benefits

From April 2010 through March 2012, payments made to two employees were recorded as reductions in accrued and unpaid payroll. In April 2012, the Company reclassified such payments as net payroll payments; calculated and recorded the employer and employee taxes that should have been withheld on such payment. Federal and state payroll tax returns have been filed for the last three quarters of 2010, all of 2011 and the first quarter of 2012. The Company recorded a total of $81,206 and $20,560 in federal and state payroll taxes due, respectively. Estimated federal penalties and interest on the late filings and payments, in the sum of $24,196, have been accrued as of October 31, 2013. On September 20, 2012 and May 14, 2013, the Internal Revenue Service filed a Notice of Federal Tax Lien against the Company assessing $58,858 and $13,605, respectively for unpaid taxes, penalties and interest. The Company is in contact with the Internal Revenue Service to work out a payment schedule for the amounts due.

9

MICRO IMAGING TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements

(Unaudited)

In November 2013, the Internal Revenue Service assessed a $36,414 penalty against the Company’s Chief Scientist, David Haavig, under the federal Trust Fund Recovery Act because the above payroll taxes were not reported and paid in a timely manner. The Company assumed the liability and has provided payment to the employee for indemnification. In addition, the Company has determined that it will indemnify its Chief Financial Officer, Victor Hollander, in the event he is found liable for a similar penalty, which has not yet been determined. As a result, the Company has recorded an additional $34,632 in interest expense as of January 31, 2014.

Estimated state penalties and interest of $4,316 on the above late filings were accrued. A Notice of Tax Lien for a portion of the taxes due was filed by the State of California on November 9, 2012 in the amount of $8,206, including penalty and interest. In October 2013, the California tax authority levied the Company’s account in the sum of $13,807 with an additional levy of $5,451 in November 2013. On December 17, 2013, the Company entered into an installment agreement with the California tax authority to pay $304 per month commencing January 27, 2014 until the remaining balance due has been satisfied.

Accrued Payroll and Benefits consist of the above payroll taxes, salaries, wages, and vacation benefits earned by employees, but not disbursed as of January 31, 2014 and includes payroll earned, but unpaid to various employees between January 16, 2013 and January 31, 2014. Accrued Payroll also includes the above estimated penalties and interest due on such unpaid payroll taxes. Liability for vacation benefits is accrued when earned monthly and reduced when taken. At the end of each fiscal period, the balance in the accrued vacation benefits liability account is adjusted to reflect current pay rates. Annual leave earned but not taken is considered an unfunded liability since this leave will be funded from future appropriations when it is actually taken by employees.

4. Inventory

Inventory is stated at the lower of cost or market and comprised entirely of finished goods. Cost is determined on a first-in, first-out (FIFO) basis. The Company’s management monitors inventory for excess and obsolete items and makes necessary valuation corrections when such adjustments are required.

5. Property and Equipment

Property and equipment are recorded at cost and are depreciated using the straight-line method over an expected useful life of 3 or 5 years. The leasehold improvements made to the Company’s leased facility are being depreciated over an expected useful life of 5 years. Expenditures for normal maintenance and repairs are charged to operations. The cost and related accumulated depreciation of assets are removed from the accounts upon retirement or other disposition, and the resulting profit or loss is reflected in the Statement of Operations. Renewals and betterments that materially extend the life of the assets are capitalized.

The production tooling for the Company’s revised MIT 1000 has been capitalized and the $14,000 cost is being amortized over an estimated useful life of 3 years.

The Company capitalized $35,313 in fiscal 2013 in the development of proprietary software for the MIT 1000 rapid microbial identification system. The cost of the software is being amortized on a straight-line basis over 3 years.

6. Summary of Significant Accounting Policies

The accounting policies followed are as set forth in Note 1 of the Notes to Financial Statements in the Company’s 2013 Annual Report on Form 10-K. The Company has not experienced any material change in its critical accounting policies since November 1, 2013. The Company’s discussion and analysis of its financial condition and results of operations are based upon its consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires the Company to make estimates and judgments regarding uncertainties that affect the reported amounts of assets, liabilities, revenues and expenses. On an ongoing basis, the Company evaluates its estimates, which are based upon historical experience and on other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. The Company considers the following accounting policies to be most critical in their potential effect on its financial position or results of operations.

10

MICRO IMAGING TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements

(Unaudited)

New Accounting Pronouncements

From time to time new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations and cash flows when implemented.

Earnings Per Share

Basic earnings per share are based on the weighted average number of shares outstanding for a period. Diluted earnings per share are based upon the weighted average number of shares and potentially dilutive common shares outstanding. Potential common shares outstanding principally include convertible notes payable and stock options under our stock plan. Since the Company has incurred losses, the effect of any common stock equivalent would be anti-dilutive.

Stock Based Compensation

Stock-based compensation costs for stock options issued to employees is measured at the grant date, based on the fair value of the award using the Black Scholes Option Pricing Model, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant).

The Company recognized share-based compensation expense of $260,282 for options granted to various employees and consultants in November 2013, $80,348 of which is included in research and development expense and $179,934 is recorded as sales, general and administrative expense.

On November 19, 2013, the Board of Directors adopted the 2014 Employee Benefit Plan which is authorized to grant up to 525,000 shares of common stock or options to purchase common stock to eligible employees, directors, officers, consultants or advisors. Eligibility and vesting, in the case of options, is determined by the Board of Directors. On November 19, 2013, the Company issued three-year options to purchase 100,000 shares of common stock which vested immediately under the Plan to the Company’s President, Jeffrey Nunez, for services rendered at an exercise price of $0.50 per share at a fair market value of $67,447. Additional three-year options to purchase 300,000 shares of common stock, in the aggregate, were issued to Mr. Nunez and three other employees of the Company on November 19, 2013 at an exercise price of $1.00 per share, for an aggregate value of $192,835.

The following table summarizes information about options granted under the Company’s equity compensation plans through January 31, 2014 and otherwise to employees, directors and consultants of the Company. Generally, options vest on an annual pro rata basis over various periods of time and are exercisable, upon proper notice, in whole or in part at any time upon vesting. Typically, options granted have contractual lives ranging from two to ten years and, in the case of an employee, vested options terminate 90 days after an employee leaves the Company. All of the options granted on November 19, 2013 vested in their entirety at the time of issuance.

11

MICRO IMAGING TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements

(Unaudited)

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at October 31, 2013		4,400	$	13.35		0.4	$	—
Granted		400,000		.88		2.8
Exercised		—		—
Expired		—		—
Canceled		—		—
Outstanding at January 31, 2014		404,400	$	1.01		2.8	$	—

Summary information about the Company’s options outstanding at January 31, 2014 is set forth in the table below. Options outstanding at January 31, 2014 expire between February 2014 and November 2016.

Range of Exercise Prices	Options Outstanding January 31, 2014		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Options Exercisable January 31, 2014		Weighted Average Exercise Price
$0.50-$1.00		400,000		2.8	$	0.88		400,000	$	0.88
$7.68-$70.00		4,400		0.2	$	13.35		4,400	$	13.35
TOTAL:		404,400						404,400

As of January 31, 2014, all outstanding options had fully vested and there was no estimated unrecognized compensation from unvested stock options.

The following table summarizes the information relating to warrants granted to non-employees as of October 31, 2013 and changes during the three months ended January 31, 2014:

	Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at October 31, 2013		240,000	$	0.90		1.9	$	—
Granted		30,000		1.00		0.3
Exercised		—		—
Expired		—		—
Canceled		—		—
Outstanding at January 31, 2014		270,000	$	0.91		1.5	$	—

Summary information about the Company’s warrants outstanding at January 31, 2014 is set forth in the table below. Warrants outstanding at January 31, 2014 expire between February 2014 and June 2016.

Range of Exercise Prices	Warrants Outstanding January 31, 2014		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Warrants Exercisable January 31, 2014		Weighted Average Exercise Price
$0.50 - $1.00		270,000		1.5	$	0.91		270,000	$	0.91
		270,000						270,000

12

MICRO IMAGING TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements

(Unaudited)

7. Convertible Debentures

Series 1 Notes

Under the provisions of ASC 815-40-15, “Derivatives and Hedging-Contracts in Entity’s Own Equity-Scope and Scope Exceptions,” a number of our outstanding Convertible notes are not considered indexed to our stock, as a result of an anti-dilution protection provision in these notes. The application of ASC 815-40-15, effective August 1, 2011, resulted in our accounting for these notes as derivative instruments, and they are recognized as liabilities in our consolidated balance sheets.

Between August 16, 2010 and February 21, 2012, the Company entered into a Securities Purchase Agreement with an unaffiliated lender in connection with the issuance of eleven (11) separate 8% convertible notes in various principal amounts, aggregating $387,500. As of September 14, 2012, the lender had converted all of the $387,500 in principal notes, plus $45,000 and $15,500 in principal penalties and accrued interest, respectively, on such notes and received a total of 663,219 shares of common stock upon the conversions at prices ranging from $0.20 to $1.95 per share.

Between July 18, 2013 and January 9, 2014, the Company entered into three new Securities Purchase Agreements with the lender, for total proceeds of $117,500, and paid a total of $15,000 out of the proceeds of the notes to lender for legal fees and expenses related to the referenced agreements. The notes mature between April 22, 2014 and October 13, 2014 and are convertible into shares of common stock at a discount of 39% of the average of the lowest three closing bid prices of the common stock during the ten trading days prior to the conversion date. The Series I Notes contain a provision requiring an adjustment to the conversion price of the note in the event the Company issues or sells any shares of common stock, or securities convertible into or exercisable for common stock, at a price per share lower than such conversion price. Accordingly, the Series I Notes are accounted for as a derivative liability, measured at fair value, with changes in fair value recognized as gain or loss for each reporting period thereafter. The notes were recorded at fair value, using the Binomial valuation model, and a derivative liability of $87,136 has been recorded for the fiscal period ended January 31, 2014. This liability will be revalued each reporting period and gains and losses will be recognized in the statement of operations under “Other Income (Expense)”.

Pursuant to the terms of the Series I Notes, the Company instructed its stock transfer agent to reserve 2,400,000 shares of the Company’s common stock to be issued if the notes are converted. On January 27, 2014, the lender converted $15,000 of such notes and received 68,306 shares of common stock at a conversion price of $0.2196 per share. The balance of 2,331,694 shares has been reserved, but is not considered as issued and outstanding. If the remaining Series I Notes had been converted as of January 31, 2014, the Company would have issued a total of 466,768 shares of common stock the value of which would exceed, by $130,706 the principal balance due on the notes.

Fair value of financial instruments

The accounting standards regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The Company considers the carrying amount of cash and other current assets and liabilities to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization.

The Company has also adopted ASC 820-10 (“Fair Value Measurements”) which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

13

MICRO IMAGING TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements

(Unaudited)

The carrying amounts of our financial instruments, including cash, accounts payable and accrued expenses approximate fair value because of their generally short maturities.

The Company measured the fair value of the Series 1 Note by using the Binomial Valuation model. As of January 31, 2014, the assumptions used to measure fair value of the liability embedded in our outstanding Series I Note included an exercise price of $0.26 per share, a common share price of $0.43, a discount rate of 0.02% or 0.06%, and a volatility of 143%.

The anti-dilution liability is calculated by an approximate number of shares multiplied by the quoted market price of the Company’s common stock at the measurement date.

The following table sets forth, by level within the fair value hierarchy, our financial instrument liabilities as of January 31, 2014 (See also Note 7 – Convertible Debentures – “Series 1 Notes”):

	Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Anti-dilution liability	$	20,087	$	—	$	—	$	20,087
Derivative liability	$	—	$	—	$	87,136	$	87,136
Total	$	20,087	$	—	$	87,136	$	107,223

The following table sets forth a summary of changes in the fair value of our Level 3 financial instrument liability for the fiscal year ended October 31, 2013 and for the three month period ended January 31, 2014:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Balance October 31, 2013	$	75,557
Additions		31,615
Net gain included in earnings		(8,763	)
Settlements		(11,273	)
Balance January 31, 2014	$	87,136

14

MICRO IMAGING TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Other Convertible Notes

On November 10, 2010, the Company entered into a convertible note for $64,868 with a stockholder. The Note matured on May 31, 2012 and bears interest at the rate of ten percent (10%) per annum. The Note is convertible into shares of common stock at a forty two percent (42%) discount to the average of the lowest three (3) closing bid prices of the common stock during the ten (10) trading days prior to the conversion date. The note holder may convert any or all of the unpaid principal note prior to the maturity date. The Company calculated the intrinsic value of the conversion feature to be $46,973 as of the date of issuance of the debentures using the same criteria as noted above, which amount was fully amortized as of July 31, 2012. The Company has expensed $20,935 in accrued interest on the note as of January 31, 2014. If the note had been converted as of January 31, 2014, the Company would have issued a total of 310,670 shares of common stock the value of which would exceed, by $68,720 the principal balance due on the note. The Company is currently negotiating with the lender to settle or renegotiate the Note.

At January 31, 2014 and October 31, 2013, without taking into effect any unamortized discounts, convertible debentures and Series 1 notes consisted of the following:

	January 31, 2014		October 31, 2013
Series 1 Notes, principal and interest at 8% maturing through October 13, 2014	$	102,500	$	85,000
Convertible note payable to stockholder; principal and interest at 10% due on May 31, 2012.		64,868		64,868
		167,368		149,868
Less current maturities		167,368		148,868
Long term portion of Convertible and Series 1 notes payable	$	—	$	—

Of the above notes, $64,868 is currently due and payable. The Company’s outstanding notes mature as follows for the years ending October 31:

2014	$	167,368
Thereafter		—
	$	167,368

15

MICRO IMAGING TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements

(Unaudited)

8. Notes Payable

At January 31, 2014 and October 31, 2013, without taking into effect any unamortized discounts, notes payable to an officer and to stockholders consisted of the following:

	January 31, 2014		October 31, 2013
			(Audited)
Unsecured, interest-free convertible notes payable to former officer/director of the Company; principal due on payment schedule through May 2014.	$	113,450	$	113,450
Unsecured convertible note payable to various stockholders; principal and interest at 6% due between December 9, 2010 and March 31, 2013.		52,000		52,000
Unsecured notes payable to officers and directors of the Company; principal and interest at 6% payable on demand		70,000		36,000
		235,450		201,450
Less current maturities		235,450		201,450
Long term portion of notes payable	$	—	$	—

Of the above notes payable, $113,450 is the subject of a lawsuit brought against the Company by former officer and director, Michael Brennan. The Company is currently negotiating with the holders of $52,000 of the above notes to either extend the maturity date or convert the notes into shares of common stock. The Company’s outstanding notes mature as follows for the years ending:

2014	$	235,450
Thereafter		—
	$	235,450

9. Employee Retirement Plan

Commencing on January 1, 2005, the Company sponsored a Simple IRA retirement plan which covers substantially all qualified full-time employees. Participation in the plan is voluntary and employer contributions are determined on an annual basis. Employer contributions would be made at the rate of three percent (3%) of the employees’ base annual wages. However, the Company has made no contributions to the IRA plan since January 2010.

16

MICRO IMAGING TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements

(Unaudited)

10. Securities Transactions

Common Stock Issued in Private Placement Transactions

On November 8, 2013, the Company entered into a Subscription Agreement with a major stockholder to purchase 20,000 shares of the Company’s common stock at $0.50 per share, for a total of $10,000. As additional consideration, the purchaser was granted a six-month option to purchase an additional 10,000 shares of common stock at $1.00 per share. On December 13, 2013, this same stockholder purchased an additional 20,000 shares of common stock at $0.50 per share and received a six-month option to purchase an additional 10,000 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.

11. Subsequent Events

On February 27, 2014, a member of the Board of Directors loaned the Company $15,000. The loan bears interest at 6% per annum and is payable on demand.

On February 28, 2014, a major stockholder purchased 30,000 shares of common stock for proceeds of $15,000, or $0.50 per share. He received a six-month warrant to purchase an additional 15,000 shares of common stock at $1.00 per share in connection with this transaction.

17

Item 2. Management’s Discussion and Analysis of Financial Condition and Plan of Operation

Forward-Looking Statements

This Quarterly Report, including the Notes to the Condensed Consolidated Financial Statements and the Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains forward-looking statements. The words “believe,” “expect,” “anticipate,” “intends,” “projects,” and similar expressions identify forward-looking statements. Such statements may include, but are not limited to, projections regarding demand for the Company’s products, the impact of the Company’s development and manufacturing process on its research and development costs, future research and development expenditures, and the Company’s ability to obtain new financing as well as assumptions related to the foregoing. Readers are cautioned not to place undue reliance on forward-looking statements. They reflect opinions, assumptions, and estimates only as of the date they were made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements in this Quarterly Report, whether as a result of new information, future events or circumstances, or otherwise.

Results of Operations

References to fiscal 2014 and fiscal 2013 are for the three month period ended January 31, 2014 and 2013, respectively.

The Company had no sales revenue during the three months ended January 31, 2014 or 2013.

Research and development expenses for the three month period ended January 31, 2014 increased by $26,825 compared to the prior year. These expenses arose from the program which the Company initiated in December 1997 to develop the micro imaging technology for detecting and identifying contaminants in fluids. The increase reflects the expense related to the issuance of options to employees in November 2013 which was partially offset by lower expenses for consulting and temporary labor, with moderate decreases in expenditures for marketing, computer supplies, license fees and trade shows.

Sales, general and administrative expenses increased by $155,553 for the three months ended January 31, 2014 compared to the prior year period. The increase resulted from the expense associated with the issuance of options to various employees in November 2013 and was partially offset by a decrease in expenditures for advertising, travel and entertainment expenses.

The Company had no interest income during the three months ended January 31, 2014 as all available capital was utilized to sustain operations. Interest expense for the three month period ended January 31, 2014 increased by $108,408 compared to the prior period reflecting payroll tax penalties and the cost of borrowings conducted by the Company commencing in July 2013.

18

The Company recognized $8,763 and $3,271 in non-cash gains due to certain convertible notes and anti-dilution provisions, respectively. These gains are a result of the Company’s accounting for these features at each measurement period.

The Company recorded no other income or expense for the three month periods ended January 31, 2014 and 2013.

The Company recorded the minimum state income tax provision in fiscal 2014 and 2013 as the Company had cumulative net operating losses in all tax jurisdictions.

Liquidity and Capital Resources

At January 31, 2014, the Company had a working capital deficit of $1,301,733. This represents a working capital decrease of $192,894 compared to that reported at October 31, 2013. The decrease primarily reflects overall increases in current liabilities, i.e., accounts payable, accrued payroll, notes payable and derivative liabilities, while utilizing available cash for operating activities.

Our only source of cash during the three months ended January 31, 2014 has been from the sale of common stock totaling $80,000 and $64,000 in net short term loans. Management estimates that it utilized $59,250 per month in working capital on operations for the three months ended January 31, 2014, compared to the approximate $64,600 per month expended during the three month period ended January 31, 2013.

Plan of Operation

Our independent registered public accounting firm has included an explanatory paragraph in its report on the financial statements for the year ended October 31, 2013 which raises substantial doubt about our ability to continue as a going concern.

We are in the process of identifying commercial, technical and scientific partners that can aid in advancing the MIT expertise, provide external endorsements of the technology and accelerate introduction to the market. This strategy is dependent upon our ability to identify and attract the right customers and partners over the next six month period and to secure sufficient additional working capital in a timely manner. There can be no assurances that our efforts will be successful or that we will be able to raise sufficient capital to implement our plans or to continue operations.

The Company is in the process of identifying commercial, technical and scientific partners that can aid in advancing the MIT expertise, provide external endorsements of the technology, and accelerate introduction to the market. This strategy is dependent upon our ability to identify and attract the right customers and partners over the next six month period and to secure sufficient additional working capital in a timely manner. There can be no assurances that our efforts will be successful or that the Company will be able to raise sufficient capital to implement our plans or to continue operations.

In April 2012, the Company commenced the production phase of its MIT 1000 Rapid Microbial Identification System with its Hawthorne, California-based manufacturing partner. The first two Systems were received in July 2012, with three additional Systems received in November 2012. The Company participated in several food safety conferences during 2012 and 2013 and brought significant attention to its MIT 1000 which has led to follow-up contacts from several high profile independent laboratories, multinational food and food safety industry leaders, as well as from prominent academic research institutes.

In October 2013, the Company announced that it is collaborating with the Northern Michigan University (NMU) Department of Biology to identify and differentiate Staphylococcus aureus (S. aureus) and the “superbug,” Methicillin Resistant S. aureus (MRSA). The goal of this strategic research with NMU is to rapidly and cost-effectively identify these two particular healthcare threats using the MIT 1000 System. Staph infections can range from mild skin problems to potentially fatal conditions if the bacteria invade deeper into the body. Most can be easily treated. Some Staphs, however, are drug-resistant. The faster the responsible disease causing bacteria is identified, the faster the appropriate treatment can begin. This is the driving goal behind the NMU/MIT collaboration using the MIT 1000 to differentiate between the common S. aureus and MRSA. At this stage, the collaboration involves scientists from MIT and NMU gathering preliminary data and developing collaborative research proposals seeking funding in support of continued research.

19

Also in October 2013, the Company announced a strategic research collaboration with Purdue University to prove the concept of faster, cheaper, and easier pathogen testing for Listeria and Listeria monocytogenes in foods using laser light scattering. The partnership pairs similar laser light scattering technologies developed independently by each contributor to demonstrate the speed and accuracy of using non-biological methods to provide a simple, rapid, and cost-effective solution to food pathogen testing.

In December 2013, the Company announced that its MIT 1000 System can now identify the potentially life-threatening bacteria Staphylococcus. Staph is one of the five most common causes of infections after injury or surgery and can lead to very serious complications with the lung (pneumonia), brain (meningitis), bone (osteopmyelitis), heart (endorcarditis), and blood (bacteremia and septicemia). The addition of this Identifier opens the door for the MIT 1000 Technology to enter the clinical pathogen detection and identification arena. The Identifier is available now and the Company plans to submit it for AOAC certification as soon as possible.

The Company is developing its marketing and sales strategies with distributors in Japan and the ASEAN countries (Malaysia, Singapore, Thailand, Brunei, Indonesia, Philippines, Vietnam, Cambodia, Laos and Myanmar) which the Company believes will assist in generating sales revenues in the near future. The Company expects to establish additional distributing partners as its marketing plans develop. The Company also continues to develop promotional materials and enhance its website with a view toward generating sales in the near future.

In June 2009, the Company received Performance Test Method (PTM) Certification from the Association of Advanced Communities Research Institute (AOAC RI) for its Identifier^TM for the Listeria bacteria species, a rare but lethal food-borne infection. In 2012, the Company’s protocols for testing the pathogens E. Coli and Salmonella were accepted by the AOAC so that, once it has completed internal testing procedures (expected in early 2014), the Company will also apply for AOAC PTM Certification for those additional pathogens. When certified for the two additional pathogenic bacteria identification processes, the Company’s System will have the proven capability of identifying over 90 percent of all bacteria-causing, food-related illnesses. Concurrently, the Company is developing an Identifier^TM for Staphylococcus aureus, the potentially life-threatening, contagious bacterium that can cause widespread infections, particularly in hospitals and medical clinics.

In the opinion of management, funds anticipated from forthcoming loans and equity sales are expected to satisfy our working capital requirements through April 2014. However, no assurances can be given that the Company will secure additional financing or revenues in a timely manner, if at all, or that such funds would be sufficient to achieve our intended business objectives.

The Company will be required to raise substantial amounts of new financing in the form of additional equity investments, loan financings, or from strategic partnerships, to carry out our business objectives. There can be no assurance that the Company will be able to obtain additional financing on terms that are acceptable to us and at the time required by us, or at all. Further, any financing may cause dilution of the interests of our current stockholders. If the Company is unable to obtain additional equity or loan financing, our financial condition and results of operations will be materially adversely affected. Moreover, estimates of our cash requirements to carry out our current business objectives are based upon various assumptions, including assumptions as to our revenues, net income or loss and other factors, and there can be no assurance that these assumptions will prove to be accurate or that unbudgeted costs will not be incurred. Future events, including the problems, delays, expenses and difficulties frequently encountered by similarly situated companies, as well as changes in economic, regulatory or competitive conditions, may lead to cost increases that could have a material adverse effect on us and our plans. If the Company is not successful in obtaining financing for future developments, whether in the form of loans, licenses or equity transactions, it is unlikely that the Company will have sufficient cash to continue to conduct operations, particularly research and development programs, as currently planned. The Company believes that in order to raise needed capital, the Company may be required to issue debt at significantly higher interest rates or equity securities that are significantly lower than the current market price of our common stock.

20

No assurances can be given that currently available funds will satisfy our working capital needs for the period estimated, or that the Company can obtain additional working capital through the sale of common stock or other securities, the issuance of indebtedness or otherwise or on terms acceptable to us. Further, no assurances can be given that any such equity financing will not result in a further substantial dilution to the existing stockholders or will be on terms satisfactory to us.

Item 3. Controls and Procedures

The Company’s management has carried out an evaluation, under the supervision and with the participation of the Company’s principal executive officer and principal financial officer, of the effectiveness of the Company’s “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on this evaluation, the Company’s principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective for the purpose of ensuring that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act, (1) is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms, and (2) is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

In addition, based on that evaluation, there has been no change in the Company’s internal control over financial reporting that occurred during the Company’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

On May 16, 2012, Alpine MIT Partners, LLC (Plaintiffs) filed a civil action against the Company and its Chairman and Chief Executive Officer, Jeffrey G. Nunez, (collectively, the Company), in the Texas District Court, Travis County. Plaintiffs alleged breach of contract and civil conspiracy, as well as tortious interference with contractual relations and prospective business relations. The lawsuit alleges that the Company breached certain provisions of a March 7, 2012 Securities Purchase Agreement the Company executed with the Plaintiff to sell up to $2.0 million of 7% Senior Secured five-year Convertible Debentures convertible into shares of common stock at a conversion rate of $.003 per share. The purchase and sale of the first $1.0 million Debenture was scheduled to close on or before April 6, 2012 and was subject to, among other things, Alpine closing the necessary equity funding to consummate the transactions. No money was ever received by the Company from Alpine.

The lawsuit also suggests that the Company’s Chairman and Chief Executive Officer, Jeffrey G. Nunez, has a history of regulatory and securities law violations. The Company’s Board of Directors has researched the matter and understands that in January 2004, Mr. Nunez was requested by the NASD to appear and provide testimony pursuant to NASD Rule 8210. Mr. Nunez did not appear, but agreed not to associate in any capacity, in the future, with NASD member firms. The Company’s Board of Directors believes this to be of no consequence with respect to Mr. Nunez’ qualifications to serve as a board member and chief executive officer of the Company.

At a hearing on March 7, 2013, the court dismissed the lawsuit against the Company upholding its motion that the Texas court had no jurisdiction over the matter. In August, 2013, Alpine filed an amended Complaint against Jeffrey Nunez in the Texas case alleging tortuous interference and conspiracy to terminate the March 7, 2012 Securities Purchase Agreement. Mr. Nunez believes that the allegations of the lawsuit against him have no merit and intends to vigorously defend the matter.

On January 10, 2013, the Company learned that Plaintiffs had filed a lien against the Company’s patents on May 8, 2012 with the California Secretary of State under the Uniform Commercial Code. On or about January 29, 2013, the Company filed suit against Alpine MIT Partners, LLC in the Orange County, California Superior Court alleging, among other claims, that the UCC filing is unauthorized. The lawsuit also names the managing director and managing member of Alpine as Defendants and alleges that they made false promises, intentional misrepresentations and breached the contract which is the subject of the Texas suit. The Company is seeking damages of $1.6 million.

21

On or about October 4, 2013, Mr. Brennan filed a lawsuit in the California Superior Court of Los Angeles for breach of contract for failure to pay monies due him under an agreement executed in April 2012 at the time of his resignation. The lawsuit seeks $123,509 in principal damages, interest, costs and attorney fees. The Company has filed an answer to the complaint and is contesting the amount due Mr. Brennan.

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.

Item 2. Changes in Securities

On November 8, 2013, the Company issued 20,000 shares of common stock and a six-month warrant to purchase 10,000 shares of common stock at $1.00 per share to a major stockholder of the Company, for proceeds of $10,000. And on December 13, 2013, this same stockholder purchased an additional 20,000 shares of common stock at $0.50 per share and received an additional six-month warrant to purchase 10,000 shares of common stock at $1.00 per share.

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

On December 19, 2013, the Company issued 20,000 shares of common stock and a six-month warrant to purchase 10,000 shares of common stock at $1.00 per share to a major stockholder of the Company, for proceeds of $10,000.

On January 27, 2014, a lender converted $15,000 of a $42,500 principal loan into 68,306 shares of common stock at $0.2196 per share.

Item 3 and 4. Omitted as not applicable.

Item 5. Other Information

The Company has not yet completed its state and federal corporate income tax returns for the fiscal years ended October 31, 2012 and 2013.

Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits:

31.1	Certification of Chief Executive Officer *
31.2	Certification of Chief Financial Officer *
32.1	906 Certification of Chief Executive Officer *
32.2	906 Certification of Chief Financial Officer *
101**	Interactive Data Files of Financial Statements and Notes formatted in Extensible Business Reporting Language (XBRL).

* Filed herewith

** XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Exchange Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

(b) Reports on Form 8-K.

None.

22

SIGNATURES

Pursuant to the requirements of the Securities Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: March 17, 2014	MICRO IMAGING TECHNOLOGY, INC.
	By	/S/ Victor A. Hollander
		Victor A. Hollander
		(Chief Financial Officer with responsibility to sign on behalf of Registrant as a duly authorized officer and principal financial officer)

23

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jeffrey G. Nunez, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the three months ended January 31, 2014, of Micro Imaging Technology, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the Registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated Subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of Registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Dated: March 17, 2014
	/S/ Jeffrey G. Nunez
	Jeffrey G. Nunez
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Victor A. Hollander, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the three months ended January 31, 2014, of Micro Imaging Technology, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the Registrant and have:

(e) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated Subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(f) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(g) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(h) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of Registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Dated: March 17, 2014
	/S/ Victor A. Hollander
	Victor A. Hollander
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

Pursuant to 18 U.S.C. 1350

(Section 906 of the Sarbanes-Oxley Act of 2002)

In connection with the Quarterly Report of Micro Imaging Technology, Inc. (formerly, Electropure, Inc.) (the “Company”) on Form 10-Q for the three months ended January 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeffrey G. Nunez, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of the Company.

/S/ Jeffrey G. Nunez

Jeffrey G. Nunez

President and Chief Executive Officer

March 17, 2014

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

Pursuant to 18 U.S.C. 1350

(Section 906 of the Sarbanes-Oxley Act of 2002)

In connection with the Quarterly Report of Micro Imaging Technology, Inc. (formerly, Electropure, Inc.) (the “Company”) on Form 10-Q for the three months ended January 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Victor A. Hollander, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(3) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(4) The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of the Company.

/S/ Victor A. Hollander

Victor A. Hollander

Chief Financial Officer

March 17, 2014

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Employee Retirement Plan (Details Narrative)	3 Months Ended
	Jan. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Percentage of employer contribution	3.00%

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Convertible Debentures - Schedule of Convertible Debentures (Details) (Parenthetical)			3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended
	Feb. 21, 2012	Nov. 10, 2010	Jan. 31, 2014 Series 1 Note, Principal and Interest at 8% Maturing on October13, 2014 [Member]	Oct. 31, 2013 Series 1 Note, Principal and Interest at 8% Maturing on October13, 2014 [Member]	Jan. 31, 2014 Convertible Note Payable at 10% Due on May 31, 2012 [Member]	Oct. 31, 2013 Convertible Note Payable at 10% Due on May 31, 2012 [Member]
Convertible notes payable, interest rate	8.00%	10.00%	8.00%	8.00%	10.00%	10.00%
Convertible notes payable, maturity date			Nov. 13, 2014	Nov. 13, 2014	May 31, 2012	May 31, 2012

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Summary of Significant Accounting Policies - Summary of Stock Options Granted (Details) (USD $)	3 Months Ended
	Jan. 31, 2014
Accounting Policies [Abstract]
Number of Options, Outstanding, Beginning balance	4,400
Number of Options, Granted	400,000
Number of Options, Exercised
Number of Options, Expired
Number of Options, Canceled
Number of Options, Outstanding, Ending balance	404,400
Weighted Average Exercise Price, Outsatnding, Beginning balance	$ 13.35
Weighted Average Exercise Price, Granted	$ 0.88
Weighted Average Exercise Price, Exercised
Weighted Average Exercise Price, Expired
Weighted Average Exercise Price, Canceled
Weighted Average Exercise Price, Outstanding, Ending balance	$ 1.01
Weighted Average Remaining Contractual Term (in years), Outstanding, Beginning	4 months 24 days
Weighted Average Remaining Contractual Term (in years), Granted	2 years 9 months 18 days
Weighted Average Remaining Contractual Term (in years), Outstanding, Ending	2 years 9 months 18 days
Aggregate Intrinsic Value, Outstanding, Beginning balance
Aggregate Intrinsic Value, Outstanding, Ending balance

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Notes Payable - Schedule of Unamortized Discounts, Notes Payable to Officers and Stockholders (Details) (Parenthetical)			0 Months Ended
	Feb. 21, 2012	Nov. 10, 2010	Jan. 31, 2014 Unsecured, Interest-Free Convertible Notes Payable To Former Officer/Director Of The Company; Principal Due On Payment Schedule Through May 2014 [Member]	Oct. 31, 2013 Unsecured, Interest-Free Convertible Notes Payable To Former Officer/Director Of The Company; Principal Due On Payment Schedule Through May 2014 [Member]	Jan. 31, 2014 Unsecured convertible note payable to various stockholders; principal and interest at 6% due between December 9, 2010 and March 31, 2013 [Member]	Oct. 31, 2013 Unsecured convertible note payable to various stockholders; principal and interest at 6% due between December 9, 2010 and March 31, 2013 [Member]	Jan. 31, 2014 Unsecured Notes Payable To Officers/Directors Of The Company; Principal Nad Interest At 6% Due On Demand [Member]	Oct. 31, 2013 Unsecured Notes Payable To Officers/Directors Of The Company; Principal Nad Interest At 6% Due On Demand [Member]
Maturity date			May 31, 2014	May 31, 2014	Mar. 31, 2013	Mar. 31, 2013
Debt instrument interest rate	8.00%	10.00%			6.00%	6.00%	6.00%	6.00%

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Inventory

3 Months Ended

Jan. 31, 2014

Inventory Disclosure [Abstract]

Inventory

4. Inventory

Inventory is stated at the lower of cost or market and comprised entirely of finished goods. Cost is determined on a first-in, first-out (FIFO) basis. The Company’s management monitors inventory for excess and obsolete items and makes necessary valuation corrections when such adjustments are required.

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Convertible Debentures (Details Narrative) (USD $)	0 Months Ended		3 Months Ended	6 Months Ended				0 Months Ended	3 Months Ended			3 Months Ended		3 Months Ended
	Sep. 14, 2012	Nov. 10, 2010	Jan. 31, 2014	Jan. 09, 2014	Oct. 31, 2013	May 16, 2012	Feb. 21, 2012	Jan. 27, 2014 Series I Notes [Member]	Jan. 31, 2014 Series I Notes [Member]	Jan. 31, 2014 Other Convertible Notes [Member]	Sep. 14, 2012 Minimum [Member]	Jan. 31, 2014 Minimum [Member] Series I Notes [Member]	Sep. 14, 2012 Maximum [Member]	Jan. 31, 2014 Maximum [Member] Series I Notes [Member]
Percentage of convertible notes interest rate		10.00%					8.00%
Aggregate principal amount of convertible notes							$ 387,500
Principal amount of debt	387,500
Principal penalties	45,000
Accrued interest	15,500
Shares of common stock on conversion	663,219
Conversion price per share						$ 0.003		$ 0.2196			$ 0.20		$ 1.95
Proceeds from issuance of debt				117,500
Payment for legal expenses				15,000
Percentage of discount on price of common stock		42.00%		39.00%
Derivative liabilities			87,136		75,557
Number of stock reserve by transfer agent									2,400,000
Converted debt value into common stock								15,000		46,973
Number of converted common stock								68,306
Number of shares for reserve									2,331,694
Common shares reserved for issuance of convertible notes			310,670						466,768
Value exceeds the principal balance			68,720						130,706
Exercise price of share									$ 0.26
Common share price									$ 0.43
Discount rate												2.00%		6.00%
Volatility rate									14.30%
Borrowed from related parties		64,868	64,868
Accrued interest			$ 20,935

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Summary of Significant Accounting Policies - Schedule of Warrants Outstanding (Details) (Warrant [Member], USD $)	3 Months Ended
	Jan. 31, 2014	Oct. 31, 2013
Warrants Outstanding	270,000	240,000
Weighted Average Remaining Contractual Life	1 year 10 months 24 days
Warrants Exersable	270,000
Range One [Member]
Range of Exercise Prices, lower limit	$ 0.50
Range of Exercise Prices, Upper limit	1.00
Warrants Outstanding	270,000
Weighted Average Remaining Contractual Life	1 year 6 months
Weighted Average Exercise Price	$ 0.91
Warrants Exersable	270,000
Weighted Average Exercise Price	$ 0.91

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Convertible Debentures - Schedule of Fair Value of Financial Instruments Liabilities (Details) (USD $)	Jan. 31, 2014
Anti-dilution liability	$ 20,087
Derivative liability	87,136
Total	107,223
Quoted Prices in Active Markets For Identical Assets (Level 1) [Member]
Anti-dilution liability	20,087
Derivative liability
Total	20,087
Significant Other Observable Inputs (Level 2) [Member]
Anti-dilution liability
Derivative liability
Total
Significant Unobservable Inputs (Level 3) [Member]
Anti-dilution liability
Derivative liability	87,136
Total	$ 87,136

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Convertible Debentures - Summary of Changes in Fair Value of Level 3 Financial Instrument Liability (Details) (USD $)	3 Months Ended
	Jan. 31, 2014
Convertible Notes Payable [Abstract]
Balance October 31, 2013	$ 75,557
Additions	31,615
Net gain included in earnings	(8,763)
Settlements	(11,273)
Balance January 31, 2014	$ 87,136

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Concentration of Credit Risk and Other Risks and Uncertainties

3 Months Ended

Jan. 31, 2014

Risks and Uncertainties [Abstract]

Concentration of Credit Risk and Other Risks and Uncertainties

3. Concentration of Credit Risk and Other Risks and Uncertainties

Litigation and Claims

Alpine MIT Partners

On May 16, 2012, Alpine MIT Partners, LLC (Plaintiffs) filed a civil action against the Company and its Chairman and Chief Executive Officer, Jeffrey G. Nunez, (collectively, the Company), in the Texas District Court, Travis County. Plaintiffs alleged breach of contract and civil conspiracy, as well as tortious interference with contractual relations and prospective business relations. The lawsuit alleges that the Company breached certain provisions of a March 7, 2012 Securities Purchase Agreement the Company executed with the Plaintiff to sell up to $2.0 million of 7% Senior Secured five-year Convertible Debentures convertible into shares of common stock at a conversion rate of $.003 per share. The purchase and sale of the first $1.0 million Debenture was scheduled to close on or before April 6, 2012 and was subject to, among other things, Alpine closing the necessary equity funding to consummate the transactions. No money was ever received by the Company from Alpine. At a March 7, 2013 hearing, the Texas court upheld the Company’s argument and dismissed the complaint against the Company for lack of jurisdiction.

In August, 2013, Alpine filed an amended Complaint against Jeffrey Nunez in the Texas case alleging tortuous interference and conspiracy to terminate the March 7, 2012 Securities Purchase Agreement.

On January 10, 2013, the Company learned that Plaintiffs had filed a lien against the Company’s patents on May 8, 2012 with the California Secretary of State under the Uniform Commercial Code. On or about January 29, 2013, the Company filed suit against Alpine MIT Partners, LLC in the Orange County, California Superior Court alleging, among other claims, that the UCC filing is unauthorized. The lawsuit also names the managing director and managing member of Alpine as Defendants and alleges that they made false promises, intentional misrepresentations and breached the contract which is the subject of the Texas suit. The Company is seeking damages of $1.6 million. This lawsuit is currently in the discovery phase.

Michael W. Brennan

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. Due to lack of funds, the Company has not made payments due Mr. Brennan since February 2013, each in the amount of $7,500. As of January 31, 2014, the principal balance due under the agreement amounted to $113,450 and, although Mr. Brennan originally waived interest on the note, the Company has accrued $13,466 in interest on that amount as of January 31, 2014.

On or about October 4, 2013, Mr. Brennan filed a lawsuit in the California Superior Court of Los Angeles for breach of contract for failure to pay monies due him under the above 2012 agreement. The lawsuit seeks $123,509 in principal damages, plus interest, costs and attorney fees. The Company has filed an answer to the complaint and is contesting the amount due Mr. Brennan. This lawsuit is currently in the discovery phase.

Other Litigation

On or about November 12, 2013, a vendor filed suit in the Orange County California Superior Court for non-payment of $9,894 in fees for services rendered. In or around December 2013, the vendor received a default judgment in the case and on January 23, 2014 filed a lien against the Company with the California Secretary of State. The Company anticipates negotiating a payment schedule with this vendor.

We are subject from time to time to litigation, claims and suits arising in the ordinary course of business. Other than the above-described litigation, as of January 31, 2014, we were not a party to any material litigation, claim or suit whose outcome could have a material effect on our financial statements.

In accordance with accounting standards regarding loss contingencies, the Company accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated, and the Company discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for its financial statements not to be misleading. The Company does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote.

Because litigation outcomes are inherently unpredictable, the Company’s evaluation of legal proceedings often involves a series of complex assessments by management about future events and can rely heavily on estimates and assumptions. If the assessments indicate that loss contingencies that could be material to any one of its financial statements are not probable, but are reasonably possible, or are probable, but cannot be estimated, then the Company discloses the nature of the loss contingencies, together with an estimate of the range of possible loss or a statement that such loss is not reasonably estimable. While the consequences of certain unresolved proceedings are not presently determinable, and an estimate of the probable and reasonably possible loss or range of loss in excess of amounts accrued for such proceedings cannot be reasonably made, an adverse outcome from such proceedings could have a material adverse effect on its financial statements in any given reporting period. However, in the opinion of Management, after consulting with legal counsel, the ultimate liability related to the current outstanding litigation is not expected to have a material adverse effect on its financial statements.

Management is of the opinion that the ultimate resolution of such matters now pending will not have a material adverse effect on the Company’s consolidated results of operations, financial position or cash flows. However, the outcome of legal proceedings cannot be predicted with any degree of certainty.

Antidilution Liability

The Company has recorded a $20,087 liability to allow for the possible dilutive impact of equity issuances that alter or effect conversion or exchange rates existing on the various dates of conversion or exercise of securities having adjustable conversion rates. The liability is adjusted to reflect current fair market value at the end of each fiscal period. Due to the decline in the Company’s stock price, we recorded a gain of $42,043 and $3,271 at October 31, 2013 and January 31, 2014, respectively.

Accrued Payroll, Payroll Taxes and Benefits

From April 2010 through March 2012, payments made to two employees were recorded as reductions in accrued and unpaid payroll. In April 2012, the Company reclassified such payments as net payroll payments; calculated and recorded the employer and employee taxes that should have been withheld on such payment. Federal and state payroll tax returns have been filed for the last three quarters of 2010, all of 2011 and the first quarter of 2012. The Company recorded a total of $81,206 and $20,560 in federal and state payroll taxes due, respectively. Estimated federal penalties and interest on the late filings and payments, in the sum of $24,196, have been accrued as of October 31, 2013. On September 20, 2012 and May 14, 2013, the Internal Revenue Service filed a Notice of Federal Tax Lien against the Company assessing $58,858 and $13,605, respectively for unpaid taxes, penalties and interest. The Company is in contact with the Internal Revenue Service to work out a payment schedule for the amounts due.

In November 2013, the Internal Revenue Service assessed a $36,414 penalty against the Company’s Chief Scientist, David Haavig, under the federal Trust Fund Recovery Act because the above payroll taxes were not reported and paid in a timely manner. The Company assumed the liability and has provided payment to the employee for indemnification. In addition, the Company has determined that it will indemnify its Chief Financial Officer, Vector Hollander, in the event he is found liable for a similar penalty, which has yet been determined. As a result, the Company has recorded an additional $34,632 in interest expense as of January 31, 2014.

Estimated state penalties and interest of $4,316 on the above late filings were accrued. A Notice of Tax Lien for a portion of the taxes due was filed by the State of California on November 9, 2012 in the amount of $8,206, including penalty and interest. In October 2013, the California tax authority levied the Company’s account in the sum of $13,807 with an additional levy of $5,451 in November 2013. On December 17, 2013, the Company entered into an installment agreement with the California tax authority to pay $304 per month commencing January 27, 2014 until the remaining balance due has been satisfied.

Accrued Payroll and Benefits consist of the above payroll taxes, salaries, wages, and vacation benefits earned by employees, but not disbursed as of January 31, 2014 and includes payroll earned, but unpaid to various employees between January 16, 2013 and January 31, 2014. Accrued Payroll also includes the above estimated penalties and interest due on such unpaid payroll taxes. Liability for vacation benefits is accrued when earned monthly and reduced when taken. At the end of each fiscal period, the balance in the accrued vacation benefits liability account is adjusted to reflect current pay rates. Annual leave earned but not taken is considered an unfunded liability since this leave will be funded from future appropriations when it is actually taken by employees.

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Convertible Debentures - Schedule of Convertible Debentures (Details) (USD $)	Jan. 31, 2014	Oct. 31, 2013	May 16, 2012
Convertible notes payable	$ 167,368	$ 149,868
Less current maturities	167,368	149,868	2,000,000
Long term portion of Convertible and Series 1 notes payable
Series 1 Note, Principal and Interest at 8% Maturing on October13, 2014 [Member]
Convertible notes payable	102,500	85,000
Convertible Note Payable at 10% Due on May 31, 2012 [Member]
Convertible notes payable	$ 64,868	$ 64,868

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Securities Transactions (Details Narrative) (USD $)	0 Months Ended
	Dec. 19, 2013 Major Stockholder [Member]	Dec. 13, 2013 Major Stockholder [Member]	Nov. 08, 2013 Major Stockholder [Member]	Dec. 19, 2013 Major Stockholder [Member] Warrant [Member]	Nov. 13, 2013 Chief Scientist [Member]
Common stock issued during period, shares	20,000	20,000	20,000		100,000
Common stock issued during period	$ 10,000		$ 10,000		$ 50,000
Common stock price per share	$ 0.50	$ 0.50	$ 0.50	$ 1.00	$ 0.50
Number of additional stock issued during period		10,000	10,000
Number of additional stock issued per share		$ 1.00	$ 1.00
Warrant issued to purchase number of common stock, shares				10,000

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Condensed Consolidated Balance Sheets (USD $)	Jan. 31, 2014	Oct. 31, 2013
Current assets:
Cash		$ 5,007
Inventories	67,487	67,487
Prepaid expenses	2,928	897
Total current assets	70,415	73,391
Fixed assets, net	97,186	111,570
Total assets	167,601	184,961
Current liabilities:
Bank overdraft	5,983
Notes payable to stockholder, net of unamortized discount of $0 and $844 in 2014 and 2013, respectively	235,450	200,606
Convertible notes payable, net of unamortized discount of $57,394 and $60,050 in 2014 and 2013, respectively	109,973	89,818
Accounts payable - trade	357,259	336,372
Accounts payable to officers and directors	155,989	131,472
Accrued payroll	312,681	244,031
Derivative liability	87,136	75,557
Anti-dilution liability	20,087	23,358
Other accrued expenses	87,590	81,016
Total current liabilities	1,372,148	1,182,230
Long term liabilities:
Redeemable convertible preferred stock, $0.01 par value; 5,200 shares authorized, issued and outstanding at January 31, 2014 and October 31, 2013, respectively	26,000	26,000
Total long term liabilities	26,000	26,000
Total liabilities	1,398,148	1,208,230
Commitments and contingencies
Stockholders' (deficit):
Common stock, $0.01 par value; 25,000,000 shares authorized; 5,381,333 and 5,153,027 shares issued and outstanding at January 31, 2014 and October 31, 2013, respectively	53,814	51,531
Additional paid-in capital	45,699,303	45,335,031
Accumulated deficit from previous operating activities	(27,809,201)	(27,809,201)
Deficit accumulated during the development stage	(19,174,463)	(18,600,630)
Total stockholders' (deficit)	(1,230,547)	(1,023,269)
Total liabilities and stockholders' (deficit)	$ 167,601	$ 184,961

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Nature of our Business, Development Stage Company and Continuance of Operations

3 Months Ended

Jan. 31, 2014

Accounting Policies [Abstract]

Nature of our Business, Development Stage Company and Continuance of Operations

1. Nature of our Business, Development Stage Company and Continuance of Operations

These unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America applicable to a going concern which contemplated the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. Since inception, the Company has incurred substantial losses and there is substantial doubt that the Company will generate sufficient revenues in the foreseeable future to meet its operating cash requirements. Accordingly, the Company’s ability to continue operations depends on its success in obtaining additional capital in an amount sufficient to meet its cash needs. This raises substantial doubt about its ability to continue as a going concern. These financial statements do not include any adjustments that might result from this uncertainty.

Our independent registered public accounting firm has included an explanatory paragraph in its report on the financial statements for the year ended October 31, 2013 which raises substantial doubt about our ability to continue as a going concern.

Micro Imaging Technology, Inc. (the “Company”), a California corporation, is a holding company whose operations are conducted through its Nevada subsidiary, Micro Imaging Technology (“MIT”). As of January 31, 2014, the Company owned eighty point seven percent (80.7%) of the issued and outstanding stock of MIT.

The losses incurred to date which are applicable to the minority stockholders of the Company’s consolidated subsidiary, MIT, exceed the value of the equity held by the minority stockholders. Such losses have been allocated to the Company as the majority stockholder and are included in the net loss and accumulated deficit in the condensed consolidated financial statements for the three months ended January 31, 2014. Any future profits reported by our subsidiary will be allocated to the Company until the minority’s share of losses previously absorbed by the Company have been recovered.

In 1997, the Company began marketing a small, point-of-use water treatment product aimed at the high purity segment of commercial and industrial water treatment markets. In February 2000, the Company formed Electropure EDI, Inc. (EDI), a wholly-owned Nevada subsidiary, through which all manufacturing and sales of its proprietary water treatment products were then conducted. In October 2005, the Company sold the assets of the EDI subsidiary and discontinued operations.

The Company acquired, in October 1997, an exclusive license to the patent and intellectual property rights involving laser light scattering techniques to be utilized in the detection and monitoring of toxicants in drinking water. In February 2000, the Company formed Micro Imaging Technology (MIT), a majority-owned Nevada subsidiary, to conduct research and development based upon advancements developed and patented from the licensed technology. The technology being developed is a non-biologically based system utilizing both proprietary hardware and software to rapidly (near real time) determine the specific specie of an unknown microbe present in a fluid with a high degree of statistical probability (“MIT system”). It will analyze a sample presented to it and compare its characteristics to a library of known microbe characteristics on file. At present, it is the Company’s only operation.

Effective with the sale of its EDI operation in October 2005, the Company’s planned principal operation, the further development and marketing of its remaining technology, has not produced any significant revenue and, as such, the Company, beginning with the fiscal year starting November 1, 2005, is considered a development stage enterprise.

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Notes Payable (Details Narrative) (USD $)	Jan. 31, 2014	Oct. 31, 2013
Notes payable gross	$ 235,450	$ 201,450
Officer And Director [Member]
Notes payable gross	113,450
Various Stockholders [Member]
Notes payable gross	$ 52,000

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Concentration of Credit Risk and Other Risks and Uncertainties (Details Narrative) (USD $)	0 Months Ended						1 Months Ended	3 Months Ended			24 Months Ended	99 Months Ended		0 Months Ended				0 Months Ended
	Dec. 17, 2013	May 14, 2013	Jan. 10, 2013	Nov. 09, 2012	Sep. 20, 2012	Apr. 06, 2012	Nov. 30, 2013	Jan. 31, 2014	Oct. 31, 2013	Jan. 31, 2013	Apr. 30, 2012	Jan. 31, 2014	May 16, 2012	Oct. 04, 2013 Michael W. Brennan [Member]	Jan. 31, 2014 Michael W. Brennan [Member]	Feb. 01, 2013 Michael W. Brennan [Member]	Apr. 12, 2012 Michael W. Brennan [Member]	Nov. 12, 2013 Vendor [Member]
Senior secure convertible debentures								$ 167,368	$ 149,868			$ 167,368	$ 2,000,000
Percentage of seior secured convertible debentures													7.00%
conversion rate													$ 0.003
Purchase and sale of debenture						1,000,000
Damages paid			1,600,000
Agreed to repay principle loans															113,450	7,500	160,000
Accrued interest															13,466		24,339
Unpaid fees and expenses																	13,120
Law suit seeks principal damages, plus interest														123,509				9,894
Anti-dilution liability								20,087	23,358			20,087
Gain on decline of stock price								3,271	42,043			45,314
Interest expense								34,632
Federal payroll tax											81,206
State payroll tax											20,560
Estimated penalties and interest on late filings and payments									24,196
Unpaid taxes, penalties and interest		13,605			58,858				4,316
Panalty against to related parties							36,414
Portion of tax filed by State of California				8,206
Notification of levy charges									13,807
Additional Notification of levy charges							5,451
Payments of agreement amount	$ 304

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Notes Payable - Schedule of Unamortized Discounts, Notes Payable to Officers and Stockholders (Details) (USD $)	Jan. 31, 2014	Oct. 31, 2013
Notes payable gross	$ 235,450	$ 201,450
Less current maturities	235,450	201,450
Long term portion of notes payable
Unsecured, Interest-Free Convertible Notes Payable To Former Officer/Director Of The Company; Principal Due On Payment Schedule Through May 2014 [Member]
Notes payable gross	113,450	113,450
Unsecured convertible note payable to various stockholders; principal and interest at 6% due between December 9, 2010 and March 31, 2013 [Member]
Notes payable gross	52,000	52,000
Unsecured Notes Payable To Officers/Directors Of The Company; Principal Nad Interest At 6% Due On Demand [Member]
Notes payable gross	$ 70,000	$ 70,000

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Summary of Significant Accounting Policies (Details Narrative) (USD $)	1 Months Ended	3 Months Ended		99 Months Ended		0 Months Ended
	Nov. 30, 2013	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Nov. 19, 2013	Nov. 19, 2013 Jeffrey Nunez [Member]
Share-based compensation expense for options granted to various employees		$ 260,282
Research and development	80,348	170,135	143,310	6,012,478
Sales general and administrative expense	179,934
Employee Benefit Plan, shares authorized					525,000
Options issued for purchase of commom stock by vested plan						100,000
Vested option stock exercise price						$ 0.50
Fair value of vested option stock shares						67,447
Addional options issued for purchase of commom stock by vested plan						300,000
Option stock issued exercise price, per share						$ 1.00
Fair value of other employee stock shares						$ 192,835

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Basis of Presentation

3 Months Ended

Jan. 31, 2014

Basis Of Presentation

Basis of Presentation

2. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include all adjustments, consisting solely of normal recurring adjustments which management believes are necessary for a fair presentation of the Company’s financial position at January 31, 2014 and results of operations for the periods presented.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted.

Results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. The accompanying condensed consolidated financial statements should be read in conjunction with our audited financial statements and footnotes as of and for the year ended October 31, 2013, included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 13, 2014.

Going Concern

The accompanying financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. The Company has not generated revenue, and has negative cash flows from operations, which raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, additional cash infusion. The Company has obtained funds from several stockholders and believes this funding will continue. Management believes the existing stockholders will provide the additional cash needed to meet the Company’s obligations as they become due, and will allow the development of its core business.

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Jan. 31, 2014	Oct. 31, 2013
Statement of Financial Position [Abstract]
Notes payable, unamortized discount, current	$ 0	$ 844
Convertible notes payable, unamortized discount, current	$ 57,394	$ 60,050
Redeemable convertible preferred stock, par value	$ 0.01	$ 0.01
Redeemable convertible preferred stock, shares authorized	5,200	5,200
Redeemable convertible preferred stock, shares issued	5,200	5,200
Redeemable convertible preferred stock, shares outstanding	5,200	5,200
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	5,381,333	5,153,027
Common stock, shares outstanding	5,381,333	5,153,027

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Jan. 31, 2014

Accounting Policies [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

From time to time new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations and cash flows when implemented.

Earnings Per Share

Earnings Per Share

Basic earnings per share are based on the weighted average number of shares outstanding for a period. Diluted earnings per share are based upon the weighted average number of shares and potentially dilutive common shares outstanding. Potential common shares outstanding principally include convertible notes payable and stock options under our stock plan. Since the Company has incurred losses, the effect of any common stock equivalent would be anti-dilutive.

Stock Based Compensation

Stock Based Compensation

Stock-based compensation costs for stock options issued to employees is measured at the grant date, based on the fair value of the award using the Black Scholes Option Pricing Model, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant).

The Company recognized share-based compensation expense of $260,282 for options granted to various employees and consultants in November 2013, $80,348 of which is included in research and development expense and $179,934 is recorded as sales, general and administrative expense.

On November 19, 2013, the Board of Directors adopted the 2014 Employee Benefit Plan which is authorized to grant up to 525,000 shares of common stock or options to purchase common stock to eligible employees, directors, officers, consultants or advisors. Eligibility and vesting, in the case of options, is determined by the Board of Directors. On November 19, 2013, the Company issued three-year options to purchase 100,000 shares of common stock which vested immediately under the Plan to the Company’s President, Jeffrey Nunez, for services rendered at an exercise price of $0.50 per share at a fair market value of $67,447. Additional three-year options to purchase 300,000 shares of common stock, in the aggregate, were issued to Mr. Nunez and three other employees of the Company on November 19, 2013 at an exercise price of $1.00 per share, for an aggregate value of $192,835.

The following table summarizes information about options granted under the Company’s equity compensation plans through January 31, 2014 and otherwise to employees, directors and consultants of the Company. Generally, options vest on an annual pro rata basis over various periods of time and are exercisable, upon proper notice, in whole or in part at any time upon vesting. Typically, options granted have contractual lives ranging from two to ten years and, in the case of an employee, vested options terminate 90 days after an employee leaves the Company. All of the options granted on November 19, 2013 vested in their entirety at the time of issuance.

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at October 31, 2013		4,400	$	13.35		0.4	$	—
Granted		400,000		.88		2.8
Exercised		—		—
Expired		—		—
Canceled		—		—
Outstanding at January 31, 2014		404,400	$	1.01		2.8	$	—

Summary information about the Company’s options outstanding at January 31, 2014 is set forth in the table below. Options outstanding at January 31, 2014 expire between February 2014 and November 2016.

Range of Exercise Prices	Options Outstanding January 31, 2014		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Options Exercisable January 31, 2014		Weighted Average Exercise Price
$0.50-$1.00		400,000		2.8	$	0.88		400,000	$	0.88
$7.68-$70.00		4,400		0.2	$	13.35		4,400	$	13.35
TOTAL:		404,400						404,400

As of January 31, 2014, all outstanding options had fully vested and there was no estimated unrecognized compensation from unvested stock options.

The following table summarizes the information relating to warrants granted to non-employees as of October 31, 2013 and changes during the three months ended January 31, 2014:

	Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at October 31, 2013		240,000	$	0.90		1.9	$	—
Granted		30,000		1.00		0.3
Exercised		—		—
Expired		—		—
Canceled		—		—
Outstanding at January 31, 2014		270,000	$	0.91		1.5	$	—

Summary information about the Company’s warrants outstanding at January 31, 2014 is set forth in the table below. Warrants outstanding at January 31, 2014 expire between February 2014 and June 2016.

Range of Exercise Prices	Warrants Outstanding January 31, 2014		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Warrants Exercisable January 31, 2014		Weighted Average Exercise Price
$0.50 - $1.00		270,000		1.5	$	0.91		270,000	$	0.91
		270,000						270,000

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Document and Entity Information	3 Months Ended
	Jan. 31, 2014	Mar. 12, 2014
Document And Entity Information
Entity Registrant Name	MICRO IMAGING TECHNOLOGY, INC.
Entity Central Index Key	0000808015
Document Type	10-Q
Document Period End Date	Jan. 31, 2014
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Entity's Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,411,333
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2014

XML

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Jan. 31, 2014

Summary Of Significant Accounting Policies Tables

Summary of Stock Options Granted

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at October 31, 2013		4,400	$	13.35		0.4	$	—
Granted		400,000		.88		2.8
Exercised		—		—
Expired		—		—
Canceled		—		—
Outstanding at January 31, 2014		404,400	$	1.01		2.8	$	—

Summary of Options Outstanding

Summary information about the Company’s options outstanding at January 31, 2014 is set forth in the table below. Options outstanding at January 31, 2014 expire between February 2014 and November 2016.

Range of Exercise Prices	Options Outstanding January 31, 2014		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Options Exercisable January 31, 2014		Weighted Average Exercise Price
$0.50-$1.00		400,000		2.8	$	0.88		400,000	$	0.88
$7.68-$70.00		4,400		0.2	$	13.35		4,400	$	13.35
TOTAL:		404,400						404,400

Summary of Warrants Granted to Non-Employees

The following table summarizes the information relating to warrants granted to non-employees as of October 31, 2013 and changes during the three months ended January 31, 2014:

	Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at October 31, 2013		240,000	$	0.90		1.9	$	—
Granted		30,000		1.00		0.3
Exercised		—		—
Expired		—		—
Canceled		—		—
Outstanding at January 31, 2014		270,000	$	0.91		1.5	$	—

Summary of Warrants Outstanding

Summary information about the Company’s warrants outstanding at January 31, 2014 is set forth in the table below. Warrants outstanding at January 31, 2014 expire between February 2014 and June 2016.

Range of Exercise Prices	Warrants Outstanding January 31, 2014		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Warrants Exercisable January 31, 2014		Weighted Average Exercise Price
$0.50 - $1.00		270,000		1.5	$	0.91		270,000	$	0.91
		270,000						270,000

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Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		99 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014
Income Statement [Abstract]
Sales			$ 58,000
Cost of Sales			29,886
Gross profit			28,114
Operating costs and expenses:
Research and development	170,135	143,310	6,012,478
Sales, general and administrative	297,789	142,236	8,775,752
Total operating expenses	467,924	285,546	14,788,230
Loss from operations	(467,924)	(285,546)	(14,760,116)
Other income (expense):
Interest income		11	11,464
Interest expense	(116,343)	(7,935)	(5,093,978)
Gain on derivative instruments	8,763		166,820
Gain on anti-dilution provision	3,271		45,314
Other income (expense), net			470,433
Total other income (expense), net	(104,309)	(7,924)	(4,399,947)
Loss from operations:
Before provision for income tax	(572,233)	(293,470)	(19,160,063)
Provision for income tax	(1,600)	(1,600)	(14,400)
Net loss	(573,833)	(295,070)	(19,174,463)
Net loss attributable to:
Non-controlling interest	(48,657)	(39,955)	(1,430,140)
Micro Imaging Technology, Inc. stockholders	(525,176)	(255,115)	(17,744,323)
Net loss	$ (573,833)	$ (295,070)	$ (19,174,463)
Net loss per share, basic and diluted	$ (0.11)	$ (0.06)
Shares used in computing net loss per share, basic and diluted	5,281,524	4,623,019

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Convertible Debentures

3 Months Ended

Jan. 31, 2014

Convertible Notes Payable [Abstract]

Convertible Debentures

7. Convertible Debentures

Series 1 Notes

Under the provisions of ASC 815-40-15, “Derivatives and Hedging-Contracts in Entity’s Own Equity-Scope and Scope Exceptions,” a number of our outstanding Convertible notes are not considered indexed to our stock, as a result of an anti-dilution protection provision in these notes. The application of ASC 815-40-15, effective August 1, 2011, resulted in our accounting for these notes as derivative instruments, and they are recognized as liabilities in our consolidated balance sheets.

Between August 16, 2010 and February 21, 2012, the Company entered into a Securities Purchase Agreement with an unaffiliated lender in connection with the issuance of eleven (11) separate 8% convertible notes in various principal amounts, aggregating $387,500. As of September 14, 2012, the lender had converted all of the $387,500 in principal notes, plus $45,000 and $15,500 in principal penalties and accrued interest, respectively, on such notes and received a total of 663,219 shares of common stock upon the conversions at prices ranging from $0.20 to $1.95 per share.

Between July 18, 2013 and January 9, 2014, the Company entered into three new Securities Purchase Agreements with the lender, for total proceeds of $117,500, and paid a total of $15,000 out of the proceeds of the notes to lender for legal fees and expenses related to the referenced agreements. The notes mature between April 22, 2014 and October 13, 2014 and are convertible into shares of common stock at a discount of 39% of the average of the lowest three closing bid prices of the common stock during the ten trading days prior to the conversion date. The Series I Notes contain a provision requiring an adjustment to the conversion price of the note in the event the Company issues or sells any shares of common stock, or securities convertible into or exercisable for common stock, at a price per share lower than such conversion price. Accordingly, the Series I Notes are accounted for as a derivative liability, measured at fair value, with changes in fair value recognized as gain or loss for each reporting period thereafter. The notes were recorded at fair value, using the Binomial valuation model, and a derivative liability of $87,136 has been recorded for the fiscal period ended January 31, 2014. This liability will be revalued each reporting period and gains and losses will be recognized in the statement of operations under “Other Income (Expense)”.

Pursuant to the terms of the Series I Notes, the Company instructed its stock transfer agent to reserve 2,400,000 shares of the Company’s common stock to be issued if the notes are converted. On January 27, 2014, the lender converted $15,000 of such notes and received 68,306 shares of common stock at a conversion price of $0.2196 per share. The balance of 2,331,694 shares has been reserved, but is not considered as issued and outstanding. If the remaining Series I Notes had been converted as of January 31, 2014, the Company would have issued a total of 466,768 shares of common stock the value of which would exceed, by $130,706 the principal balance due on the notes.

Fair value of financial instruments

The accounting standards regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The Company considers the carrying amount of cash and other current assets and liabilities to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization.

The Company has also adopted ASC 820-10 (“Fair Value Measurements”) which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

The carrying amounts of our financial instruments, including cash, accounts payable and accrued expenses approximate fair value because of their generally short maturities.

The Company measured the fair value of the Series 1 Note by using the Binomial Valuation model. As of January 31, 2014, the assumptions used to measure fair value of the liability embedded in our outstanding Series I Note included an exercise price of $0.26 per share, a common share price of $0.43, a discount rate of 0.02% or 0.06%, and a volatility of 143%.

The anti-dilution liability is calculated by an approximate number of shares multiplied by the quoted market price of the Company’s common stock at the measurement date.

The following table sets forth, by level within the fair value hierarchy, our financial instrument liabilities as of January 31, 2014 (See also Note 7 – Convertible Debentures – “Series 1 Notes”):

	Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Anti-dilution liability	$	20,087	$	—	$	—	$	20,087
Derivative liability	$	—	$	—	$	87,136	$	87,136
Total	$	20,087	$	—	$	87,136	$	107,223

The following table sets forth a summary of changes in the fair value of our Level 3 financial instrument liability for the fiscal year ended October 31, 2013 and for the three month period ended January 31, 2014:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Balance October 31, 2013	$	75,557
Additions		31,615
Net gain included in earnings		(8,763	)
Settlements		(11,273	)
Balance January 31, 2014	$	87,136

Other Convertible Notes

On November 10, 2010, the Company entered into a convertible note for $64,868 with a stockholder. The Note matured on May 31, 2012 and bears interest at the rate of ten percent (10%) per annum. The Note is convertible into shares of common stock at a forty two percent (42%) discount to the average of the lowest three (3) closing bid prices of the common stock during the ten (10) trading days prior to the conversion date. The note holder may convert any or all of the unpaid principal note prior to the maturity date. The Company calculated the intrinsic value of the conversion feature to be $46,973 as of the date of issuance of the debentures using the same criteria as noted above, which amount was fully amortized as of July 31, 2012. The Company has expensed $20,935 in accrued interest on the note as of January 31, 2014. If the note had been converted as of January 31, 2014, the Company would have issued a total of 310,670 shares of common stock the value of which would exceed, by $68,720 the principal balance due on the note. The Company is currently negotiating with the lender to settle or renegotiate the Note.

At January 31, 2014 and October 31, 2013, without taking into effect any unamortized discounts, convertible debentures and Series 1 notes consisted of the following:

	January 31, 2014		October 31, 2013
Series 1 Notes, principal and interest at 8% maturing through October 13, 2014	$	102,500	$	85,000
Convertible note payable to stockholder; principal and interest at 10% due on May 31, 2012.		64,868		64,868
		167,368		149,868
Less current maturities		167,368		148,868
Long term portion of Convertible and Series 1 notes payable	$	—	$	—

Of the above notes, $64,868 is currently due and payable. The Company’s outstanding notes mature as follows for the years ending October 31:

2014	$	167,368
Thereafter		—
	$	167,368

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Summary of Significant Accounting Policies

3 Months Ended

Jan. 31, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

6. Summary of Significant Accounting Policies

The accounting policies followed are as set forth in Note 1 of the Notes to Financial Statements in the Company’s 2013 Annual Report on Form 10-K. The Company has not experienced any material change in its critical accounting policies since November 1, 2013. The Company’s discussion and analysis of its financial condition and results of operations are based upon its consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires the Company to make estimates and judgments regarding uncertainties that affect the reported amounts of assets, liabilities, revenues and expenses. On an ongoing basis, the Company evaluates its estimates, which are based upon historical experience and on other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. The Company considers the following accounting policies to be most critical in their potential effect on its financial position or results of operations.

New Accounting Pronouncements

From time to time new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations and cash flows when implemented.

Earnings Per Share

Basic earnings per share are based on the weighted average number of shares outstanding for a period. Diluted earnings per share are based upon the weighted average number of shares and potentially dilutive common shares outstanding. Potential common shares outstanding principally include convertible notes payable and stock options under our stock plan. Since the Company has incurred losses, the effect of any common stock equivalent would be anti-dilutive.

Stock Based Compensation

Stock-based compensation costs for stock options issued to employees is measured at the grant date, based on the fair value of the award using the Black Scholes Option Pricing Model, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant).

The Company recognized share-based compensation expense of $260,282 for options granted to various employees and consultants in November 2013, $80,348 of which is included in research and development expense and $179,934 is recorded as sales, general and administrative expense.

On November 19, 2013, the Board of Directors adopted the 2014 Employee Benefit Plan which is authorized to grant up to 525,000 shares of common stock or options to purchase common stock to eligible employees, directors, officers, consultants or advisors. Eligibility and vesting, in the case of options, is determined by the Board of Directors. On November 19, 2013, the Company issued three-year options to purchase 100,000 shares of common stock which vested immediately under the Plan to the Company’s President, Jeffrey Nunez, for services rendered at an exercise price of $0.50 per share at a fair market value of $67,447. Additional three-year options to purchase 300,000 shares of common stock, in the aggregate, were issued to Mr. Nunez and three other employees of the Company on November 19, 2013 at an exercise price of $1.00 per share, for an aggregate value of $192,835.

The following table summarizes information about options granted under the Company’s equity compensation plans through January 31, 2014 and otherwise to employees, directors and consultants of the Company. Generally, options vest on an annual pro rata basis over various periods of time and are exercisable, upon proper notice, in whole or in part at any time upon vesting. Typically, options granted have contractual lives ranging from two to ten years and, in the case of an employee, vested options terminate 90 days after an employee leaves the Company. All of the options granted on November 19, 2013 vested in their entirety at the time of issuance.

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at October 31, 2013		4,400	$	13.35		0.4	$	—
Granted		400,000		.88		2.8
Exercised		—		—
Expired		—		—
Canceled		—		—
Outstanding at January 31, 2014		404,400	$	1.01		2.8	$	—

Summary information about the Company’s options outstanding at January 31, 2014 is set forth in the table below. Options outstanding at January 31, 2014 expire between February 2014 and November 2016.

Range of Exercise Prices	Options Outstanding January 31, 2014		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Options Exercisable January 31, 2014		Weighted Average Exercise Price
$0.50-$1.00		400,000		2.8	$	0.88		400,000	$	0.88
$7.68-$70.00		4,400		0.2	$	13.35		4,400	$	13.35
TOTAL:		404,400						404,400

As of January 31, 2014, all outstanding options had fully vested and there was no estimated unrecognized compensation from unvested stock options.

The following table summarizes the information relating to warrants granted to non-employees as of October 31, 2013 and changes during the three months ended January 31, 2014:

	Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at October 31, 2013		240,000	$	0.90		1.9	$	—
Granted		30,000		1.00		0.3
Exercised		—		—
Expired		—		—
Canceled		—		—
Outstanding at January 31, 2014		270,000	$	0.91		1.5	$	—

Summary information about the Company’s warrants outstanding at January 31, 2014 is set forth in the table below. Warrants outstanding at January 31, 2014 expire between February 2014 and June 2016.

Range of Exercise Prices	Warrants Outstanding January 31, 2014		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Warrants Exercisable January 31, 2014		Weighted Average Exercise Price
$0.50 - $1.00		270,000		1.5	$	0.91		270,000	$	0.91
		270,000						270,000

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Property, Plant and Equipment (Details Narrative) (USD $)	3 Months Ended
	Jan. 31, 2014
Expected useful life of property and equipment	P3Y
Production tooling cost capitalized, amortized	$ 14,000
Capitalized development of proprietary software	$ 35,313
Leasehold Improvements [Member]
Expected useful life of property and equipment	P5Y
Minimum [Member]
Expected useful life of property and equipment	P3Y
Maximum [Member]
Expected useful life of property and equipment	P5Y

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Convertible Debentures (Tables) (Convertible Debentures [Member])

3 Months Ended

Jan. 31, 2014

Convertible Debentures [Member]

Schedule of Fair Value of Financial Instruments Liabilities

The following table sets forth, by level within the fair value hierarchy, our financial instrument liabilities as of January 31, 2014 (See also Note 7 – Convertible Debentures – “Series 1 Notes”):

	Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Anti-dilution liability	$	20,087	$	—	$	—	$	20,087
Derivative liability	$	—	$	—	$	87,136	$	87,136
Total	$	20,087	$	—	$	87,136	$	107,223

Summary of Changes in Fair Value of Level 3 Financial Instrument Liability

The following table sets forth a summary of changes in the fair value of our Level 3 financial instrument liability for the fiscal year ended October 31, 2013 and for the three month period ended January 31, 2014:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Balance October 31, 2013	$	75,557
Additions		31,615
Net gain included in earnings		(8,763	)
Settlements		(11,273	)
Balance January 31, 2014	$	87,136

Summary of Convertible Debentures and Series 1 Notes

At January 31, 2014 and October 31, 2013, without taking into effect any unamortized discounts, convertible debentures and Series 1 notes consisted of the following:

	January 31, 2014		October 31, 2013
Series 1 Notes, principal and interest at 8% maturing through October 13, 2014	$	102,500	$	85,000
Convertible note payable to stockholder; principal and interest at 10% due on May 31, 2012.		64,868		64,868
		167,368		149,868
Less current maturities		167,368		148,868
Long term portion of Convertible and Series 1 notes payable	$	—	$	—

Schedule of Remaining Outstanding Notes Maturity

The Company’s outstanding notes mature as follows for the years ending October 31:

2014	$	167,368
Thereafter		—
	$	167,368

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Securities Transactions

3 Months Ended

Jan. 31, 2014

Securities Financing Transactions [Abstract]

Securities Transactions

10. Securities Transactions

Common Stock Issued in Private Placement Transactions

On November 8, 2013, the Company entered into a Subscription Agreement with a major stockholder to purchase 20,000 shares of the Company’s common stock at $0.50 per share, for a total of $10,000. As additional consideration, the purchaser was granted a six-month option to purchase an additional 10,000 shares of common stock at $1.00 per share. On December 13, 2013, this same stockholder purchased an additional 20,000 shares of common stock at $0.50 per share and received a six-month option to purchase an additional 10,000 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.

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Notes Payable

3 Months Ended

Jan. 31, 2014

Debt Disclosure [Abstract]

Notes Payable

8. Notes Payable

At January 31, 2014 and October 31, 2013, without taking into effect any unamortized discounts, notes payable to an officer and to stockholders consisted of the following:

	January 31, 2014		October 31, 2013
			(Audited)
Unsecured, interest-free convertible notes payable to former officer/director of the Company; principal due on payment schedule through May 2014.	$	113,450	$	113,450
Unsecured convertible note payable to various stockholders; principal and interest at 6% due between December 9, 2010 and March 31, 2013.		52,000		52,000
Unsecured notes payable to officers and directors of the Company; principal and interest at 6% payable on demand		70,000		36,000
		235,450		201,450
Less current maturities		235,450		201,450
Long term portion of notes payable	$	—	$	—

Of the above notes payable, $113,450 is the subject of a lawsuit brought against the Company by former officer and director, Michael Brennan. The Company is currently negotiating with the holders of $52,000 of the above notes to either extend the maturity date or convert the notes into shares of common stock. The Company’s outstanding notes mature as follows for the years ending:

2014	$	235,450
Thereafter		—
	$	235,450

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Employee Retirement Plan

3 Months Ended

Jan. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Employee Retirement Plan

9. Employee Retirement Plan

Commencing on January 1, 2005, the Company sponsored a Simple IRA retirement plan which covers substantially all qualified full-time employees. Participation in the plan is voluntary and employer contributions are determined on an annual basis. Employer contributions would be made at the rate of three percent (3%) of the employees’ base annual wages. However, the Company has made no contributions to the IRA plan since January 2010.

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Subsequent Events

3 Months Ended

Jan. 31, 2014

Subsequent Events [Abstract]

Subsequent Events

11. Subsequent Events

On February 27, 2014, a member of the Board of Directors loaned the Company $15,000. The loan bears interest at 6% per annum and is payable on demand.

On February 28, 2014, a major stockholder purchased 30,000 shares of common stock for proceeds of $15,000, or $0.50 per share. He received a six-month warrant to purchase an additional 15,000 shares of common stock at $1.00 per share in connection with this transaction.

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Convertible Debentures - Schedule of Remaining Outstanding Notes Maturity (Details) (USD $)	Jan. 31, 2014
2014	$ 235,450
Thereafter
Convertible Debentures [Member]
2014	167,368
Thereafter
Total	$ 167,368

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Nature of our Business, Development Stage Company and Continuance of Operations (Details Narrative)	Jan. 31, 2014
Accounting Policies [Abstract]
Percentage of interest owned by the company	80.70%

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Summary of Significant Accounting Policies - Schedule of Stock Options Outstanding (Details) (USD $)	3 Months Ended
	Jan. 31, 2014	Oct. 31, 2013
Options outstanding	404,400	4,400
Weighted Average Remaning Contractual Life	4 months 24 days
Weighted Average Exercise Price	$ 1.01	$ 13.35
Options Exercisable	404,400
Range One [Member]
Range of Exercise Prices, lower limit	$ 0.50
Range of Exercise Prices, upper limit	$ 1.00
Options outstanding	400,000
Weighted Average Remaning Contractual Life	2 years 9 months 18 days
Weighted Average Exercise Price	$ 0.88
Options Exercisable	400,000
Weighted Average Exercise Price, Exercisable	$ 0.88
Range Two [Member]
Range of Exercise Prices, lower limit	$ 7.68
Range of Exercise Prices, upper limit	$ 70.00
Options outstanding	4,400
Weighted Average Remaning Contractual Life	2 months 12 days
Weighted Average Exercise Price	$ 13.35
Options Exercisable	4,400
Weighted Average Exercise Price, Exercisable	$ 13.35

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Subsequent Events (Details Narrative) (USD $)			0 Months Ended		0 Months Ended
	Feb. 21, 2012	Nov. 10, 2010	Feb. 28, 2014 Subsequent Event [Member] Warrant [Member]	Feb. 27, 2014 Board Of Directors Chairman [Member] Subsequent Event [Member]	Feb. 28, 2014 Major Stockholder [Member] Subsequent Event [Member]
Due to Board of Directors for loans payable on demand				$ 15,000
Debt instrument interest rate	8.00%	10.00%		6.00%
Number of shares issued to major sharaeholder					30,000
Proceeds from stock issued to major shareholder					$ 15,000
Common shares price per share			$ 1.00		$ 0.50
Warrant issued to purchase number of common stock, shares			15,000

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended		99 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014
Cash flows from operating activities:
Net loss	$ (573,833)	$ (295,070)	$ (19,174,463)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	15,654	12,764	280,528
Gain on extinguishment of debt			(288,192)
Change in value of derivatives	(8,763)		(166,820)
Change in anti-dilution liability	(3,271)		(45,314)
Amortization of costs and fees related to convertible debentures	35,114	5,057	1,377,651
Common stock issued for services			2,144,790
Common stock issued to officers, directors and consultants for services			3,212,484
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			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	260,282		892,205
Costs and fees related to issuance of convertible debt			542,540
Interest expense related to beneficial conversion feature			1,942,820
Interest paid with common stock			118,487
Interest on notes receivable for common stock			(1,373)
(Increase) decrease in assets:
Related party receivables		3,254
Prepaid expenses	(2,031)	14,979	22,663
Inventories		(41,887)	(143,275)
Increase (decrease) in liabilities:
Trade accounts payable	20,887	57,165	690,575
Accounts payable to officers and directors	24,517	16,635	863,029
Accrued payroll and other expenses	75,224	20,933	637,623
Net cash used in operating activities	(156,220)	(206,170)	(6,475,847)
Cash flows from investing activities:
Purchase of fixed assets	(1,270)	(3,500)	(260,130)
Capitalization of software			(35,313)
Net cash used in investing activities	(1,270)	(3,500)	(295,443)
Cash flows from financing activities:
Bank overdraft	5,983		5,983
Principal payments on notes payable to stockholder		(22,500)	(1,301,800)
Proceeds from issuance of notes payable to a related party	34,000		1,194,600
Proceeds from issuance of notes and convertible notes payable	32,500		1,721,734
Proceeds from issuance of common stock	80,000	145,000	3,955,475
Net cash provided by financing activities	152,483	122,500	5,575,992
Net change in cash	(5,007)	(87,170)	(1,195,298)
Cash at beginning of period	5,007	90,132	1,195,298
Cash at end of period		2,962
Supplemental Disclosure of Cash Flow Information
Interest paid
Income taxes paid		1,600
Supplemental Schedule of Non-Cash Investing and Financing Activities
Conversion of convertible notes payable to shares of common stock	15,000
Common stock issued in consideration for accounts payable and accrued payroll		$ 12,000

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Property and Equipment

3 Months Ended

Jan. 31, 2014

Property, Plant and Equipment [Abstract]

Property and Equipment

5. Property and Equipment

Property and equipment are recorded at cost and are depreciated using the straight-line method over an expected useful life of 3 or 5 years. The leasehold improvements made to the Company’s leased facility are being depreciated over an expected useful life of 5 years. Expenditures for normal maintenance and repairs are charged to operations. The cost and related accumulated depreciation of assets are removed from the accounts upon retirement or other disposition, and the resulting profit or loss is reflected in the Statement of Operations. Renewals and betterments that materially extend the life of the assets are capitalized.

The production tooling for the Company’s revised MIT 1000 has been capitalized and the $14,000 cost is being amortized over an estimated useful life of 3 years.

The Company capitalized $35,313 in fiscal 2013 in the development of proprietary software for the MIT 1000 rapid microbial identification system. The cost of the software is being amortized on a straight-line basis over 3 years.

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Summary of Significant Accounting Policies - Schedule of Warrants Granted to Non-employees (Details) (Warrant [Member], USD $)	3 Months Ended
	Jan. 31, 2014
Warrant [Member]
Number of Warrants, Outstanding, Beginning balance	240,000
Number of Warrants, Granted	30,000
Number of Warrants, Exercised
Number of Warrants, Canceled
Number of Warrants, Expired
Number of Warrants, Outstanding, Ending balance	270,000
Weighted Average Exercise Price, Outstanding, Beginning balance	$ 0.90
Weighted Average Exercise Price, Granted	$ 1.00
Weighted Average Exercise Price, Exercised
Weighted Average Exercise Price, Canceled
Weighted Average Exercise Price, Expired
Weighted Average Exercise Price, Outstanding, Ending balance	$ 0.91
Weighted Average Remaining Contractual Term (in years), Outstanding, Balance	1 year 10 months 24 days
Weighted Average Remaining Contractual Term (in years), Granted	3 months 18 days
Weighted Average Remaining Contractual Term (in years), Outstanding, Balance	1 year 6 months
Aggregate Intrinsic Value, Outstanding, Beginning balance
Aggregate Intrinsic Value, Outstanding, Ending balance

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Notes Payable - Schedule of Maturities of Notes Payable (Details) (USD $)	Jan. 31, 2014	Oct. 31, 2013
Debt Disclosure [Abstract]
2014	$ 235,450
Thereafter
Total	$ 235,450	$ 201,450

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Notes Payable (Tables) (Notes Payable [Member])

3 Months Ended

Jan. 31, 2014

Notes Payable [Member]

Schedule of Unamortized Discounts, Notes Payable to Officers and Stockholders

At January 31, 2014 and October 31, 2013, without taking into effect any unamortized discounts, notes payable to an officer and to stockholders consisted of the following:

	January 31, 2014		October 31, 2013
			(Audited)
Unsecured, interest-free convertible notes payable to former officer/director of the Company; principal due on payment schedule through May 2014.	$	113,450	$	113,450
Unsecured convertible note payable to various stockholders; principal and interest at 6% due between December 9, 2010 and March 31, 2013.		52,000		52,000
Unsecured notes payable to officers and directors of the Company; principal and interest at 6% payable on demand		70,000		36,000
		235,450		201,450
Less current maturities		235,450		201,450
Long term portion of notes payable	$	—	$	—

Schedule of Maturities of Notes Payable

The Company’s outstanding notes mature as follows for the years ending:

2014	$	235,450
Thereafter		—
	$	235,450