XML 43 R19.htm IDEA: XBRL DOCUMENT v2.4.0.8
Convertible Debentures (Tables) (Convertible Debentures [Member])
6 Months Ended
Apr. 30, 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 April 30, 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   $ 4,728     $     $     $ 4,728  
Derivative liability   $     $     $ 57,811     $ 57,811  
Total   $ 4,728     $     $ 57,811     $ 62,539  

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 six month period ended April 30, 2014:

 

    Fair Value
Measurements
Using
Significant
Unobservable
Inputs
(Level 3)
 
Balance October 31, 2013   $ 75,557  
Additions     31,615  
Net gain included in earnings     (19,686 )
Settlements     (29,675 )
Balance April 30, 2014   $ 57,811  

Summary of Convertible Debentures and Series 1 Notes

At April 30, 2014 and October 31, 2013, without taking into effect any unamortized discounts, convertible debentures and Series 1 notes consisted of the following:

 

    April 30, 2014     October 31, 2013  
Series 1 Notes, principal and interest at 8% maturing through October 13, 2014   $ 75,000     $ 85,000  
                 
Convertible note payable to stockholder; principal and interest at 10% due on May 31, 2012.     64,868       64,868  
      139,368       149,868  
Less current maturities     139,368       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   $ 139,368  
Thereafter      
    $ 139,368