ASSETS AND LIABILITIES MEASURED AT FAIR VALUE

9 Months Ended

Jul. 31, 2011

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

18.        ASSETS AND LIABILITIES MEASURED AT FAIR VALUE

On March 25, 2010, the Company issued warrants (the “Warrants”) of 160,000 common shares to an investor relation service provider that have an exercise price of $2.00 per share and a contractual life of 3 years.  The terms of the Warrant agreement include the following factors that in accordance with FASB ASC Topic 815, requires that the Warrants be classified at their fair value to liabilities each reporting period.

· The holder of the Warrants (the “Holder”) is entitled to the benefits of Rule 144 promulgated under the Securities Act of 1933, as amended and any other rule or regulation of the SEC that may at any time permit the Holder to sell securities of the Company to the public without registration.  Non compliance with such rules and regulations could result in the Company having to settle the Warrant obligation in cash.

· The exercise price and number of shares issuable upon exercise of the Warrants (the “Warrant Shares”) are subject to adjustment for standard dilutive events, including the issuance of common stock, or securities convertible into or exercisable for shares of common stock, that will adversely affect the Holder’s rights under the Warrants.  There were no dilutive events for the three and nine months ended July 31, 2011, which would have resulted in an adjustment to the exercise price or number of Warrant Shares.

On July 31, 2011, the fair value of the Company’s warrants liability was $36,973.  The Company used the Black-Scholes valuation model to estimate the fair value of the Warrants.  The valuation was based on the assumptions noted in the following table.

Expected volatility		77.54	%
Expected dividends
Expected term(in years)	1.65 years
Risk-free rate		0.55	%

On July 31, 2011, the Company had no assets measured at fair value and the following liabilities measured at fair value:

	Fair value measurement
	Quoted prices in active markets of identical assets  (Level 1)	Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	US$	US$		US$
Warrants liability			36,973