10-K
2011-10-31
false
VITRO DIAGNOSTICS INC
0000793171
--10-31
18528995
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<!--egx--><p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>NOTE A:</b> <b>NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b><i>Nature of Organization</i></b></p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company was incorporated under the laws of Nevada on February 3, 1986. From November of 1990 through July 31, 2000, the Company was engaged in the development, manufacturing and distribution of purified human antigens (“Diagnostics”) that were derived primarily from human tissues. The Company also developed cell technology including immortalization of certain cells that allowed entry into other markets besides diagnostics. However, during the 1990’s, the Company’s sales were solely attributable to the sales of purified human antigens for diagnostic applications. </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Following the sale of its Diagnostics operations in August of 2000, the Company began devoting all efforts to its cellular generation technology which evolved from a focus on induction of cellular immortalization to technology related to stem cells. Stem cell technology has potentially broad application to many medical areas, including drug discovery and development together with numerous therapeutic applications to diseases involving cellular degeneration, injury or to the treatment of cancer. The Company launched a series of products targeting basic research in stem cell technology in 2009. These “Tools for Stem Cell and Drug Discovery™” offer researchers basic tools needed to advance stem cell technology including stem cells and their derivatives, media for growth and differentiation of stem cells and advanced tools for measurement of stem cell quality, potency and response to toxic agents. The Company has been granted patents for its proprietary technology related to the immortalization of human cells and subsequently expanded this technology to include patented and patent-pending technology involving generation of stem cells with potential application to a variety of commercial opportunities including the treatment of degenerative diseases and drug discovery.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company also owns patented technology related to treatment of human infertility. The Company has been granted a US patent for its process to manufacture VITROPIN™. VITROPIN™ is a highly purified urinary follicle-stimulating hormone (“FSH”) preparation produced according to the Company’s patented purification process.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company also owns patented technology that provides protection to a specific cell line derived from human pancreatic tissues that gives rise to structures comparable to the Islets of Langerhans (beta islets). These islets also synthesize and secrete insulin in response to elevated glucose levels, as do beta islets contained within pancreatic tissue. Vitro has also developed a process for the commercial production its cell line-derived islets. Furthermore, the Company previously obtained regulatory approval for an animal protocol to determine reversal of Type I diabetes, a critical step in the demonstration of efficacy. This patent affords an exclusive proprietary position to the Company for a new cellular therapy to treat Type I diabetes.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b><i>Basis of Presentation – Going Concern</i></b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. However, the Company has suffered significant losses since inception and has working capital and shareholders’ deficits at October 31, 2011, that raise substantial doubt about its ability to continue as a going concern. In view of these matters, realization of certain of the assets in the accompanying balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to meet its financial requirements, raise additional capital, and generate revenues and profits from operations.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company has financed its operations primarily through cash advances from the Company’s president, as well as through various private placements of equity securities. At various times during the years ended October 31, 2011 and 2010, the president advanced the Company a total of $233,400 for working capital on an “as needed” basis. In September 2010, the Company raised $30,000 in a private placement of common stock to two investors. There is no assurance that these advances or equity offerings will continue in the future.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company has formed strategic alliances and is presently engaged in discussions with other companies that have expressed interest in the commercialization of the Company’s stem cell and fertility drug technology. Management intends to pursue these and other opportunities with the objective of establishing strategic alliances to enhance its revenue generation and to fund further development and commercialization of its key technologies. Initial revenues from stem cell products previously launched have been established and management is pursuing additional revenue generation from this product line, as well as the development of other related products to the fullest extent possible given its resources. A current focus is expanding distribution of the Company’s advanced stem cell media, <b>MSCGro™</b>, since management believes that these products show performance advantages over the current leaders in this market sector. There is no assurance that any of these initiatives will yield sufficient capital to maintain the Company’s operations. In such an event, management intends to pursue various strategic alternatives.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">In March 2011, the Company formed a license agreement with a third party for its patented technology related to treatment of infertility. The terms of this agreement included a license fee and royalties on any future sales derived from the patent license by the licensee. The transaction resulted in a significant reduction of the Company’s accrued payroll obligation to a former employee. See Note I for further discussion regarding this transaction.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b><i>Summary of Significant Accounting Policies</i></b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Use of estimates</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Cash equivalents</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">For the purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Accounts receivable</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Accounts receivable consists of amounts due from customers. The Company considers accounts more than 30 days old to be past due. The Company uses the allowance method for recognizing bad debts. When an account is deemed uncollectible, it is written off against the allowance. The Company generally does not require collateral for its accounts receivable. At October 31, 2011 and 2010 no allowances were recorded and all amounts due from customers were considered collectible.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Inventory</b></p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Inventories, consisting of raw materials and finished goods, are stated at the lower of cost (using the specific identification method) or market. Finished goods inventories include certain allocations of labor and overhead. At October 31, 2011 and 2010, finished goods included approximately $5,600 and $10,100, respectively, of labor and overhead allocations. Inventories consisted of the following:</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <table width="325" style="MARGIN:auto auto auto 4.65pt; WIDTH:243.75pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:36.75pt"> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; HEIGHT:36.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="98" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:73.75pt; PADDING-RIGHT:5.4pt; HEIGHT:36.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center"><b>October 31, 2011</b></p></td> <td width="22" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:16.5pt; PADDING-RIGHT:5.4pt; HEIGHT:36.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="97" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:72.5pt; PADDING-RIGHT:5.4pt; HEIGHT:36.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center"><b>October 31, 2010</b></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:17.25pt"> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; HEIGHT:17.25pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Raw materials</p></td> <td width="98" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:73.75pt; PADDING-RIGHT:5.4pt; HEIGHT:17.25pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:7.0pt right 56.0pt"> $ 9,320</p></td> <td width="22" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:16.5pt; PADDING-RIGHT:5.4pt; HEIGHT:17.25pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="97" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:72.5pt; PADDING-RIGHT:5.4pt; HEIGHT:17.25pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:7.0pt right 55.0pt"> $ 7,603</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Finished goods</p></td> <td width="98" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:73.75pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:7.0pt right 56.0pt"> 7,853</p></td> <td width="22" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:16.5pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="97" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:72.5pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:7.0pt right 55.0pt"> 12,890</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:13.5pt"> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="98" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:73.75pt; PADDING-RIGHT:5.4pt; HEIGHT:13.5pt; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:7.0pt right 56.0pt"> $ 17,173</p></td> <td width="22" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:16.5pt; PADDING-RIGHT:5.4pt; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="97" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:72.5pt; PADDING-RIGHT:5.4pt; HEIGHT:13.5pt; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:7.0pt right 55.0pt"> $ 20,493</p></td></tr></table> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Research and development </b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company’s operations are predominantly in research and development (“R&D”). These costs are expensed as incurred and are primarily comprised of costs for: salaries, overhead and occupancy, contract services and other outside costs, quality assurance and analytical testing. As the Company has also expanded its operations to include manufacturing and R&D, we report cost of goods sold, including estimates of labor, materials and overhead allocations to the production of specific products. </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Property, equipment and depreciation</b></p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Property and equipment, generally consisting of laboratory equipment and office equipment and furniture, are stated at cost and are depreciated over the assets’ estimated useful lives ranging from three to seven years using the straight-line method. Depreciation expense totaled $17,473 and $16,771 for the years ended October 31, 2011 and 2010, respectively.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Upon retirement or disposition of equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in operations. Repairs and maintenance are charged to expense as incurred and expenditures for additions and improvements are capitalized.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Patents, deferred costs and amortization</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Patents consist of costs incurred to acquire issued patents. Amortization commences once a patent is granted. Costs incurred to acquire patents that have not been issued are reported as deferred costs. If a patent application is denied or expires, the costs incurred are charged to operations in the year the application is denied or expires.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company amortizes its patents over a period of ten years. Amortization expense totaled $3,139 for each of the years ended October 31, 2011 and 2010, respectively. Estimated aggregate amortization expense for each of the next five years is as follows:</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <div align="center"> <table style="BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="235" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:176.25pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Year ended October 31,</b></p></td> <td width="21" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:15.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="62" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:46.5pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="235" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:176.25pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center">2012</p></td> <td width="21" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:15.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right">$</p></td> <td width="62" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:46.5pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 40.0pt"> 3,144</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="235" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:176.25pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center">2013</p></td> <td width="21" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:15.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"> </p></td> <td width="62" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:46.5pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 40.0pt"> 3,144</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="235" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:176.25pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center">2014</p></td> <td width="21" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:15.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"> </p></td> <td width="62" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:46.5pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 40.0pt"> 3,144</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="235" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:176.25pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center">2015</p></td> <td width="21" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:15.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"> </p></td> <td width="62" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:46.5pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 40.0pt"> 3,144</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="235" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:176.25pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center">2016</p></td> <td width="21" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:15.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"> </p></td> <td width="62" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:46.5pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 40.0pt"> 3,144</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="235" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:176.25pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center">Thereafter</p></td> <td width="21" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:15.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"> </p></td> <td width="62" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:46.5pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 40.0pt"><u> 8,001</u></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="235" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:176.25pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="21" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:15.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right">$</p></td> <td width="62" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:46.5pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 40.0pt"><u style="text-underline:double"> 23,721</u></p></td></tr></table></div> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company’s patents consisted of the following at October 31, 2011:</p> <table style="BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="474" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:355.5pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Generation and differentiation of adult stem cell lines</p></td> <td width="21" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:15.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"> $</p></td> <td width="87" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:65.25pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 58.0pt"> 31,385 </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="474" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:355.5pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">This patent is for a proprietary stem cell line with potential application to treatment of diabetes in both animals and humans.</p></td> <td width="21" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:15.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"> </p></td> <td width="87" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:65.25pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="474" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:355.5pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> Less accumulated amortization</p></td> <td width="21" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:15.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"> </p></td> <td width="87" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:65.25pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 58.0pt"><u> (7,664)</u></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="474" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:355.5pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="21" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:15.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"> $</p></td> <td width="87" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:65.25pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 58.0pt"><u style="text-underline:double"> 23,721 </u></p></td></tr></table> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company has incurred costs relating to the filing of a new United States patent application entitled “POU5-F1 Expression in Human Mesenchymal Stem Cells” and the development of new technology related to generation of human induced pluripotent stem cells (iPS). These costs totaled $5,595 and $762 at October 31, 2011 and 2010, respectively, and are included as deferred patent costs in the accompanying balance sheets.</p> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Impairment and Disposal of Long-Lived Assets</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate, in management's judgment, that the carrying value of such assets may not be recoverable. If such assets are considered impaired, the impairment to be recognized is determined as the amount by which the carrying value exceeds the fair value of the assets.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company periodically reviews the carrying amount of it long-lived assets for possible impairment. The Company recorded no asset impairment charges during either of the years ended October 31, 2011 or 2010. A contingency exists with respect to these matters, the ultimate resolution of which cannot presently be determined.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Income taxes</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company uses the liability method of accounting for income taxes. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Revenue recognition and concentration of revenues</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred (or service has been performed), the sales price is fixed and determinable, and collectability is reasonably assured.</p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">For the years ended October 31, 2011 and 2010, 61% and 73% of the Company’s sales, respectively, were made to the Company’s top three customers.</p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Advertising Costs</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt">The Company expenses all advertising costs as they are incurred. Advertising costs were $6,557 and $14,211 for the years ended October 31, 2011 and 2010, respectively.</p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Fair value of financial instruments</b></p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The carrying amounts of cash, accounts receivable, accounts payable and other accrued liabilities approximate fair value due to the short-term maturity of the instruments. Based on the borrowing rates currently available to the Company for loans with similar terms and average maturities, the fair value of long-term obligations consisting of various capital lease obligations approximates its carrying value.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Concentrations of credit risk</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and cash equivalents, and trade accounts receivable. As of October 31, 2011 and 2010, the Company had no amounts of cash or cash equivalents in financial institutions in excess of amounts insured by agencies of the U.S. Government.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Net loss per share</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company reports net loss per share using a dual presentation of basic and diluted loss per share. Basic net loss per share excludes the impact of common stock equivalents. Diluted net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. For the year ended October 31, 2011, common stock equivalents of 327,000 representing outstanding options, were not included in the diluted per share calculation as all potentially dilutive securities were anti-dilutive due to the net loss in the period. For the year ended October 31, 2010, common stock equivalents of 743,500 representing outstanding common stock purchase warrants and options, were not included in the diluted per share calculation as all potentially dilutive securities were anti-dilutive due to the net loss in the period.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Stock-based compensation</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (the “ASC”) Topic 718, <i>“Stock Compensation</i>,” establishes fair value as the measurement objective in accounting for share based payment arrangements, and requires all entities to apply a fair value based measurement method in accounting for share based payment transactions with employees. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the period during which the holder is required to provide services in exchange for the award, i.e., the vesting period. </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Recent accounting standards</b></p> <p style="MARGIN:9pt 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">There were various accounting standards and interpretations issued during 2011 and 2010, none of which are expected to have a material impact on the Company’s consolidated financial position, operations, or cash flows.</p>
<!--egx--><p style="MARGIN:9pt 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>NOTE B:</b> <b>RELATED PARTY TRANSACTIONS</b></p> <p style="MARGIN:9pt 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Advances and accrued interest payable to officer</b></p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Through October 31, 2010, the Company’s President had advanced the Company a total of $139,682 used for working capital including $53,900 during the year ended October 31, 2010, and during the year ended October 31, 2011 an additional $179,500 of working capital advances were made by the officer. The advances are uncollateralized, due on demand and accrue interest on the unpaid principal at a rate of 10% per annum. Accrued interest payable on the advances totaled $40,627 and $16,050 at October 31, 2011 and 2010, respectively. The total advances plus accrued interest totaling $359,809 and $155,733 at October 31, 2011 and 2010, respectively, are included as “Advances and accrued interest payable to officer” in the accompanying financial statements.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Employment agreements and accrued compensation</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Effective May 1, 2008, the Company entered into a new Executive Employment Agreement with its President. The Agreement established annual base salaries of $80,000, $85,000, and $90,000 over the three years of the Agreement, which was to expire on April 30, 2011. On April 27, 2011 the Company’s board of directors ratified a modification to the original agreement establishing an annual base salary of $12,000 per year, effective February 1, 2011 and continuing for three years. The Agreement also provides for incentive compensation based on the achievement of minimum annual product sales and an option to purchase one million shares of the Company’s common stock that includes contingent vesting requirements. The employment agreement includes changes in control accelerating vesting for exercise of underlying stock options and also includes severance provisions.</p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">As a result of the patent licenses agreement on March 29, 2011, a contingency was met and as a result, 100,000 common stock options became vested. These options are exercisable at $.19 per share and expire in July 2018. As a result, $18,900 of stock based compensation was recorded at March 29, 2011. These options are further discussed in Note E under the “Stock options granted to officer” caption.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company accrued the salaries of its President through April 30, 2008 under an old agreement due to a lack of working capital. Accrued salaries and payroll taxes totaled $1,177,618 and $1,350,053 at October 31, 2011 and 2010, respectively. His accrued salaries totaled $1,131,432 and $1,099,982 as of October 31, 2011 and 2010, respectively. His salary is allocated as follows: 70% to research and development and 30% to administration.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">On March 30, 2011 the Company licensed two of its existing patents to a former executive officer. The transaction included license fees totaling $10,000, and a forgiveness of previously accrued payroll amounts due the former officer of $190,000. This transaction is further discussed in Note I.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">His accrued salaries totaled $833 and $200,833 at October 31, 2011 and 2010, respectively.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Total accrued payroll taxes on the above salaries totaled $45,353 and $49,238 at October 31, 2011 and 2010, respectively.</p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Office lease</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:1.0in 76.5pt">On July 1, 2008, the Company entered into a five-year non-cancelable operating lease for a facility located in Golden, Colorado. The facility has been leased from a company that is owned by the President’s wife.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:1.0in 76.5pt"> </p> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:1.0in 76.5pt">Future minimum rental payments for the fiscal years ending are as follows: </p> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:1.0in 76.5pt"> </p> <table style="MARGIN:auto auto auto 76.5pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="78" colspan="2" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:58.4pt; PADDING-RIGHT:0in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">October 31,</p></td> <td width="84" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:63.1pt; PADDING-RIGHT:0in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:69pt; PADDING-RIGHT:0in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="36" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:27pt; PADDING-RIGHT:0in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="126" colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:94.5pt; PADDING-RIGHT:0in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">2012</p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:69pt; PADDING-RIGHT:0in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:7.0pt right 62.0pt"> $ 22,380</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="36" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:27pt; PADDING-RIGHT:0in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="126" colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:94.5pt; PADDING-RIGHT:0in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">2013</p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:69pt; PADDING-RIGHT:0in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:7.0pt right 62.0pt"> 14,920</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="36" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:27pt; PADDING-RIGHT:0in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="42" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:31.4pt; PADDING-RIGHT:0in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="84" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:63.1pt; PADDING-RIGHT:0in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="92" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:69pt; PADDING-RIGHT:0in; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:7.0pt right 62.0pt"> $ 37,300</p></td></tr></table> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:1.0in 76.5pt"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:1.0in 76.5pt">The total rental expense was $26,747 and $23,827 for the years ended October 31, 2011 and 2010, respectively.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:1.0in 76.5pt"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:1.0in 76.5pt">At October 31, 2011 and 2010, $30,344 and $21,398 were unpaid and are included in accounts payable related parties in the accompanying balance sheets.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Other</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The President has personally guaranteed all debt instruments of the Company including all credit card debt.</p>
<!--egx--><p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>NOTE C: INCOME TAXES</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">A reconciliation of the U.S. statutory federal income tax rate to the effective rate is as follows for the years ended:</p> <div align="center"> <table cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid"> <td colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="83" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:62.25pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"><b>October 31, 2011</b></p></td> <td width="18" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:13.5pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"> </p></td> <td width="78" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:58.5pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"><b>October 31, 2010</b></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Benefit related to U.S. federal statutory graduated rate</p></td> <td width="83" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:62.25pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 57.0pt"> -27.42%</p></td> <td width="18" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:13.5pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="78" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:58.5pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 51.0pt"> -28.37%</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Benefit related to State income tax rate, net of federal benefit</p></td> <td width="83" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:62.25pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 57.0pt"> -3.36%</p></td> <td width="18" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:13.5pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="78" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:58.5pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 51.0pt"> -3.32%</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Accrued officer salaries</p></td> <td width="83" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:62.25pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 57.0pt"> -344.58%</p></td> <td width="18" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:13.5pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="78" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:58.5pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 51.0pt"> 11.32%</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Net operating loss for which no tax benefit is currently available</p></td> <td width="83" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:62.25pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 57.0pt"><u> 375.36%</u></p></td> <td width="18" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:13.5pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="78" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:58.5pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 51.0pt"><u> 20.37%</u></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="105" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:78.75pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="292" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:219.1pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Effective rate</p></td> <td width="83" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:62.25pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 57.0pt"><u style="text-underline:double"> 0.00%</u></p></td> <td width="18" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:13.5pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><u style="text-underline:double"><font style="TEXT-DECORATION:none"> </font></u></p></td> <td width="78" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:58.5pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 51.0pt"><u style="text-underline:double"> 0.00%</u></p></td></tr> <tr> <td width="107" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; BACKGROUND-COLOR:transparent; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8"></td> <td width="297" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; BACKGROUND-COLOR:transparent; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8"></td> <td width="83" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; BACKGROUND-COLOR:transparent; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8"></td> <td width="18" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; BACKGROUND-COLOR:transparent; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8"></td> <td width="78" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; BACKGROUND-COLOR:transparent; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8"></td></tr></table></div> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The primary components of temporary differences that give rise to the Company’s net deferred tax assets are as follows: </p> <p style="PAGE-BREAK-AFTER:avoid; LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <div align="center"> <table style="BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="284" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:212.95pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="110" colspan="2" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:82.45pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center"><b>October 31, 2011</b></p></td> <td width="15" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:11.25pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="top"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="110" colspan="2" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:82.5pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center"><b>October 31, 2010</b></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="284" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:212.95pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Net operating loss and tax credit carry forwards</p></td> <td width="27" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:20.2pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center">$</p></td> <td width="83" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:62.25pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 57.0pt"> 1,529,879</p></td> <td width="15" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:11.25pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="top"> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"> </p></td> <td width="21" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:15.75pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center">$</p></td> <td width="89" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:66.75pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 59.0pt"> 1,522,860</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="284" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:212.95pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Accrued officer salaries</p></td> <td width="27" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:20.2pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center"> </p></td> <td width="83" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:62.25pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 57.0pt"><u> 436,425</u></p></td> <td width="15" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:11.25pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="top"> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"> </p></td> <td width="21" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:15.75pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center"> </p></td> <td width="89" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:66.75pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 59.0pt"><u> 500,330</u></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="284" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:212.95pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Deferred tax asset (before valuation allowance)</p></td> <td width="27" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:20.2pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center">$</p></td> <td width="83" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:62.25pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 57.0pt"><u style="text-underline:double"> 1,966,304</u></p></td> <td width="15" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:11.25pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="top"> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"> </p></td> <td width="21" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:15.75pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center">$</p></td> <td width="89" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:66.75pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 59.0pt"><u style="text-underline:double"> 2,023,190</u></p></td></tr></table></div> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">At October 31, 2011, deferred taxes consisted of a net tax asset of $1,966,304, due to operating loss carry forwards and other temporary differences of $8,062,760, which was fully allowed for in the valuation allowance of $1,966,304. The valuation allowance offsets the net deferred tax asset for which there is no assurance of recovery. The changes in the valuation allowance for the years ended October 31, 2011 and 2010 totaled $56,886 and $111,599, respectively. Net operating loss carry forwards will expire in various years through 2031.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company is delinquent on filing its federal and state tax returns and may be subject to penalties and interest. A contingency exists with respect to this matter, the ultimate resolution of which may not be presently determined.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The valuation allowance will be evaluated at the end of each year, considering positive and negative evidence about whether the asset will be realized. At that time, the allowance will either be increased or reduced; reduction could result in the complete elimination of the allowance if positive evidence indicates that the value of the deferred tax asset is no longer impaired and the allowance is no longer required.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Should the Company undergo an ownership change as defined in Section 382 of the Internal Revenue Code, the Company’s tax net operating loss carry forwards generated prior to the ownership change will be subject to an annual limitation, which could reduce or defer the utilization of these losses.</p>
<!--egx--><p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>NOTE D:</b> <b>LINES OF CREDIT</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company has a $12,500 line of credit of which $2,066 was unused at October 31, 2011. The interest rate on the credit line was 21.90% at October 31, 2011. The credit line is collateralized by the Company’s checking account. Principal and interest payments are due monthly.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">At October 31, 2011 the Company also had three credit cards with a combined credit limit of $26,700, of which $3,293 was unused. The interest rates on the credit cards range from 10.24% to 29.4%. All other credit cards previously used by the Company have been paid off and closed.</p>
<!--egx--><p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>NOTE E:</b> <b>CAPITAL LEASE OBLIGATIONS</b></p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">In July 2007, the Company entered into a capital lease agreement to acquire laboratory equipment. The Company is obligated to make 3 monthly payments of $25 and monthly payments of $382 through August 2012. </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">In June 2008, the Company entered into a capital lease agreement, also for the acquisition of laboratory equipment. The Company is obligated to make monthly payments of $830 through May 2012.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">In July 2009, the Company entered into a capital lease agreement, also for the acquisition of laboratory equipment. The Company was obligated to make monthly payments of $570 through June 2011. This obligation was fully paid at July 31, 2011.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Future maturities of the Company’s capital lease obligations are as follows:</p> <div align="center"> <table cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:10.85pt"> <td width="308" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:231pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; HEIGHT:10.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="17" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:12.6pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; HEIGHT:10.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="63" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:47.35pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; HEIGHT:10.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:11.35pt"> <td width="308" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:231pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; HEIGHT:11.35pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center"> </p></td> <td width="17" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:12.6pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; HEIGHT:11.35pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="63" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:47.35pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; HEIGHT:11.35pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:11.35pt"> <td width="308" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:231pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; HEIGHT:11.35pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Year ended October 31, 2012</p></td> <td width="17" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:12.6pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; HEIGHT:11.35pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> $</p></td> <td width="63" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:47.35pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; HEIGHT:11.35pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 40.0pt"> 8,799 </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:10.85pt"> <td width="308" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:231pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; HEIGHT:10.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Less: imputed interest</p></td> <td width="17" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:12.6pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; HEIGHT:10.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="63" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:47.35pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; HEIGHT:10.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 40.0pt"><u> (665)</u></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:11.35pt"> <td width="308" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:231pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; HEIGHT:11.35pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Present value of net minimum lease payments</p></td> <td width="17" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:12.6pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; HEIGHT:11.35pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">$</p></td> <td width="63" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0.75pt; PADDING-LEFT:0.75pt; WIDTH:47.35pt; PADDING-RIGHT:0.75pt; BACKGROUND:white; HEIGHT:11.35pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0.75pt" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 40.0pt"><u style="text-underline:double"> 8,134 </u></p></td></tr></table></div> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company’s President has personally guaranteed the lease obligations.</p>
<!--egx--><p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>NOTE F:</b> <b>SHAREHOLDERS’ DEFICIT</b></p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Preferred Stock</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company has authorized 5,000,000 shares of $.001 par value preferred stock, of which none were issued and outstanding at October 31, 2011. These shares may be issued in series with such rights and preferences as may be determined by the Board of Directors.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Sales of common stock</b></p> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b> </b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">In September 2010, the Company sold 300,000 shares of its common stock to two investors for $30,000, or $.10 per share. The transaction was recorded at fair value, which was determined to be 83% of the quoted market price on the day prior to the negotiated sale of stock, due to the restricted nature of the shares. </p> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Sale</b><b> of Common Stock and Warrants</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">On December 29, 2009 the Company sold an aggregate of 500,000 shares of common stock together with an aggregate of 500,000 warrants for $87,500 to three investors. The warrants were exercisable for a period of twelve months from the date of issuance to purchase an additional 500,000 shares of common stock at an exercise price of $0.175 per share.</p> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="LINE-HEIGHT:14.4pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company applied the provisions of ASC Topic 815, <i>“Derivatives and Hedging”</i> and related standards for the accounting of the valuation of the common stock warrants issued as part of the private placement of common stock completed on December 29, 2009. Accordingly, the Company recorded a warrant liability upon the issuance of its common stock, equal to the estimated fair market value of the various features of the warrants. The initial warrant liability of $75,000 represented a non-cash adjustment to the carrying value of the related financial instruments. The warrants were exercisable upon issuance, and expired unexercised on December 29, 2010. The liability was adjusted quarterly to the estimated fair market value based upon then current market conditions, and any change in the estimated fair market value was charged to the Company’s operating results.</p> <p style="LINE-HEIGHT:14.4pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="LINE-HEIGHT:14.4pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="LINE-HEIGHT:14.4pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The following assumptions were utilized to determine the estimated fair value of the warrants upon issue:</p> <p style="TEXT-ALIGN:center; LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center"> </p> <table width="282" style="MARGIN:auto auto auto 41.4pt; WIDTH:211.5pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="193" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:144.75pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Expected volatility</p></td> <td width="15" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.1pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="74" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:55.65pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 40.0pt" align="center">142%</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="193" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:144.75pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Contractual term</p></td> <td width="15" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.1pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="74" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:55.65pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center">1 year</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="193" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:144.75pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Risk free interest rate</p></td> <td width="15" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.1pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="74" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:55.65pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 40.0pt" align="center">0.47%</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="193" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:144.75pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Expected dividend rate</p></td> <td width="15" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.1pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="74" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:55.65pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:right 40.0pt" align="center">0%</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="193" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:144.75pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="15" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.1pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p></td> <td width="74" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:55.65pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="center"> </p></td></tr></table> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:311.45pt"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Common stock issued for services</b></p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">On May 18, 2011, the Company appointed Mr. Duane Knight, CPA, to its Scientific Advisory Board (“SAB”). Concurrently, the Company issued 50,000 shares of the Company’s common stock to him as compensation to be earned during his two years of service on the SAB. The transaction was valued at $5,000, or $.10 per share, which approximated the market value of the stock on the date of the transaction. As of October 31, 2011, $1,042 had been expensed, and is reflected in “Services paid with common stock” in the accompanying balance sheet.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">On April 27, 2011, the Company issued 99,010 shares of the Company’s common stock to Mr. Erik Van Horn, Director as compensation to be earned during his service in 2011. The transaction was valued at $10,000, or $.101 per share, which approximated the market value of the stock on the date of the transaction. As of October 31, 2011, $10,000 had been expensed, and is reflected in “Services paid with common stock” in the accompanying balance sheet.</p> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">On September 8, 2010 the Company agreed to convert to common stock certain amounts due an attorney who provides various legal services to the Company. As a result, $10,000 of amounts due the attorney was converted to 71,429 shares of common stock at a price of $0.14 per share, which approximated the market value of the stock on the date of the transaction.</p> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Also on September 8, 2010 the Company agreed to convert to common stock certain amounts due a consultant who provides various professional accounting services to the Company. As a result, $8,300 of amounts due the consultant was converted to 59,286 shares of common stock at a price of $0.14 per share, which approximated the market value of the stock on the date of the transaction.</p> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">In February 2010, the Company appointed Mr. Richard Huebner to its Board of Directors. The Company issued to Mr. Huebner 106,383 shares of the Company’s common stock as compensation for his commitment to serve on the Company’s board of directors. The transaction was valued at $25,000, or $.235 per share based on the fair value of the stock on the transaction date. Of the total transaction amount, $15,000 was considered as incentive to serve as a director, and as such the amount was charged to operations as stock compensation expense for the year ended October 31, 2010. The remaining $10,000 was considered as compensation to be earned during his service in 2010. As of October 31, 2011 the entire $10,000 had been expensed, and is reflected in “Services paid with common stock” in the accompanying balance sheet.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Also in February 2010, the Company issued 42,553 shares of the Company’s common stock to Mr. Erik Van Horn, Director as compensation to be earned during his service in 2010. The transaction was valued at $10,000, or $.235 per share based on the fair value of the stock on the transaction date. As of October 31, 2011 the entire $10,000 had been expensed, and is reflected in “Services paid with common stock” in the accompanying balance sheet.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">On December 21, 2009 the Company agreed to convert to common stock certain amounts due an attorney who provides various legal services to the Company. As a result, $15,000 of amounts due the attorney was converted to 85,714 shares of common stock at a price of $0.175 per share, which approximated the market value of the stock on the date of the transaction.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">In February 2009, the Company appointed Dr. Pamela L. Rice to its Scientific Advisory Board. The Company issued 12,000 shares of the Company’s common stock as compensation for her commitment to serve on the SAB. The transaction was valued at $1,800, or $.15 per share based on the fair value of the stock on the transaction date. As of October 31, 2011 the entire $1,800 had been expensed, and is reflected in “Services paid with common stock” in the accompanying balance sheet.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Stock options granted to officer</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">On May 1, 2008, the Company granted a non-qualified stock option to its President to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $0.19 per share, and expire in 2018. On the grant date, the traded market value of the stock was $0.19 per share. The options vest upon the achievement of certain contingencies. As a result of the patent license agreements of March 29, 2011 as discussed in Note I, a contingency was met resulting in the vesting of 100,000 of these options. As such, the Company recorded $18,900 in stock based compensation on March 29, 2011. None of the other contingencies have been met as of October 31, 2011, and as of that date $170,100 of unamortized stock compensation expense remains for the unvested portion of these options. The weighted average exercise price and weighted average fair value of these options on the grant date were $0.19 and $0.189, respectively. </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The fair value of the options was determined to be $189,000, and was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <table width="439" style="MARGIN:auto auto auto 0.5in; WIDTH:329.4pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="349" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:261.9pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Risk-free interest rate</p></td> <td width="90" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right">3.68%</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="349" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:261.9pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Dividend yield</p></td> <td width="90" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right">0.00%</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="349" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:261.9pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Volatility factor</p></td> <td width="90" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right">228.72%</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="349" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:261.9pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Weighted average expected life</p></td> <td width="90" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging" align="right">6.5 years</p></td></tr></table> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>Incentive plans</b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Effective December 2, 2000, the Company’s Board of Directors adopted an Equity Incentive Plan (the “Plan”), which replaced the Company’s 1992 Stock Option Plan. The purpose of the Plan is to attract and retain qualified personnel, to provide additional incentives to employees, officers, consultants and directors, and to promote the Company’s business. The Plan authorizes total awards of up to 1,000,000 shares of the Company's common stock. Awards may take the form of incentive stock options, non-qualified stock options, restricted stock awards, stock bonuses and other stock grants. If an award made under the Plan expires, terminates, is canceled or settled in cash without the issuance of all shares of common stock covered by the award, those shares will be available for future awards under the Plan. Awards may not be transferred, except by will or the laws of descent and distribution. No awards may be granted under the Plan after September 30, 2010. </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Plan is administered by the Company's Board of Directors, which may delegate its authority to a committee of the Board of Directors. The Board of Directors has the authority to select individuals to receive awards, to determine the time and type of awards, the number of shares covered by the awards, and the terms and conditions of such awards in accordance with the terms of the Plan. In making such determinations, the Board of Directors may take into account the recipient's current and potential contributions and any other factors the Board of Directors considers relevant. The recipient of an award has no choice regarding the form of a stock award. The Board of Directors is authorized to establish rules and regulations and make all other determinations that may be necessary or advisable for the administration of the Plan. All options granted pursuant to the Plan shall be exercisable at a price not less than the fair market value of the common stock on the date of grant. Unless otherwise specified, the options expire ten years from the date of grant.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">At October 31, 2011 a total of 543,500 options had been issued under the Plan, of which 16,500 have expired. 227,000 options have vested under the Plan have exercise prices ranging from $0.08 to $0.31 per share, a weighted average exercise price of $0.09 per share, and a weighted average remaining contractual life of 3.83 years at October 31, 2011. 300,000 outstanding options not yet vested have an exercise price of $0.17 per share, and expire in April 2015. For the years ended October 31, 2011 and 2010, no compensation expense was recognized for options under the Plan. No additional options may be issued under the Plan.</p> <p style="PAGE-BREAK-AFTER:avoid; LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The following schedule summarizes the changes in the Company’s stock options including non-qualified options and options issued under the 2000 Plan:</p> <p style="PAGE-BREAK-AFTER:avoid; LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <table style="MARGIN:auto auto auto 3.9pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:66pt"> <td width="225" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:168.75pt; PADDING-RIGHT:5.4pt; HEIGHT:66pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; punctuation-wrap:hanging"> </p></td> <td width="113" colspan="2" style="BORDER-BOTTOM:windowtext 1.5pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:84.85pt; PADDING-RIGHT:5.4pt; HEIGHT:66pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="center"><b> Number of Shares </b></p></td> <td width="110" colspan="2" style="BORDER-BOTTOM:windowtext 1.5pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:82.75pt; PADDING-RIGHT:5.4pt; HEIGHT:66pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="center"><b>Exercise Price Per Share</b></p></td> <td width="102" colspan="2" style="BORDER-BOTTOM:windowtext 1.5pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.75pt; PADDING-RIGHT:5.4pt; HEIGHT:66pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="center"><b>Weighted Average Remaining Contractual Life</b></p></td> <td width="92" style="BORDER-BOTTOM:windowtext 1.5pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:69pt; PADDING-RIGHT:5.4pt; HEIGHT:66pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="center"><b>Weighted Average Exercise Price Per Share</b></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:21.95pt"> <td width="225" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:168.75pt; PADDING-RIGHT:5.4pt; HEIGHT:21.95pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; punctuation-wrap:hanging; tab-stops:18.1pt">Balance at October 31, 2009</p></td> <td width="97" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:73.05pt; PADDING-RIGHT:5.4pt; HEIGHT:21.95pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> 1,543,500 </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:21.95pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="110" colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:82.75pt; PADDING-RIGHT:5.4pt; HEIGHT:21.95pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">$0.08 to $0.81</p></td> <td width="102" colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.75pt; PADDING-RIGHT:5.4pt; HEIGHT:21.95pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">8.29 years</p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:69pt; PADDING-RIGHT:5.4pt; HEIGHT:21.95pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">$0.17 </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:15pt"> <td width="225" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:168.75pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; punctuation-wrap:hanging; tab-stops:18.1pt"> Options granted</p></td> <td width="97" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:73.05pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> - </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="95" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:70.95pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="87" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:64.95pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:69pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:15pt"> <td width="225" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:168.75pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; punctuation-wrap:hanging; tab-stops:18.1pt"> Options exercised</p></td> <td width="97" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:73.05pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> - </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="95" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:70.95pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="87" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:64.95pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:69pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:15pt"> <td width="225" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:168.75pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; punctuation-wrap:hanging; tab-stops:18.1pt"> Options expired</p></td> <td width="97" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:73.05pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> - </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="95" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:70.95pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="87" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:64.95pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:69pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:15pt"> <td width="225" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:168.75pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; punctuation-wrap:hanging; tab-stops:18.1pt">Balance at October 31, 2010</p></td> <td width="97" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:73.05pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> 1,543,500 </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="110" colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:82.75pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">$0.08 to $0.81</p></td> <td width="102" colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.75pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">7.60 years</p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:69pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">$0.17 </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:15pt"> <td width="225" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:168.75pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; punctuation-wrap:hanging; tab-stops:18.1pt"> Options granted</p></td> <td width="97" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:73.05pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> - </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="95" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:70.95pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="87" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:64.95pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:69pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:15pt"> <td width="225" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:168.75pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; punctuation-wrap:hanging; tab-stops:18.1pt"> Options exercised</p></td> <td width="97" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:73.05pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> - </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="95" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:70.95pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="87" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:64.95pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:69pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:15pt"> <td width="225" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:168.75pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; punctuation-wrap:hanging; tab-stops:18.1pt"> Options expired</p></td> <td width="97" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:73.05pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> 16,500 </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="110" colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:82.75pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">$0.42 to $0.81</p></td> <td width="87" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:64.95pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> - </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:69pt; PADDING-RIGHT:5.4pt; HEIGHT:15pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">$0.44 </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:15.95pt"> <td width="225" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:168.75pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; punctuation-wrap:hanging; tab-stops:18.1pt">Balance at October 31, 2011</p></td> <td width="97" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:73.05pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> 1,527,000 </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="110" colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:82.75pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">$0.08 to $0.45</p></td> <td width="102" colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.75pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">5.66 years</p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:69pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">$0.17 </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.25in"> <td width="225" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:168.75pt; PADDING-RIGHT:5.4pt; HEIGHT:0.25in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; punctuation-wrap:hanging; tab-stops:18.1pt">Exercisable at October 31, 2010</p></td> <td width="97" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:73.05pt; PADDING-RIGHT:5.4pt; HEIGHT:0.25in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> 243,500 </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:0.25in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="110" colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:82.75pt; PADDING-RIGHT:5.4pt; HEIGHT:0.25in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">$0.08 to $0.81</p></td> <td width="102" colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.75pt; PADDING-RIGHT:5.4pt; HEIGHT:0.25in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">4.53 years</p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:69pt; PADDING-RIGHT:5.4pt; HEIGHT:0.25in; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">$0.09 </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:20pt"> <td width="225" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:168.75pt; PADDING-RIGHT:5.4pt; HEIGHT:20pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; punctuation-wrap:hanging; tab-stops:18.1pt">Exercisable at October 31, 2011</p></td> <td width="97" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:73.05pt; PADDING-RIGHT:5.4pt; HEIGHT:20pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> 327,000 </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; HEIGHT:20pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right"> </p></td> <td width="110" colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:82.75pt; PADDING-RIGHT:5.4pt; HEIGHT:20pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">$0.08 to $0.31</p></td> <td width="102" colspan="2" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.75pt; PADDING-RIGHT:5.4pt; HEIGHT:20pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">4.72 years</p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:69pt; PADDING-RIGHT:5.4pt; HEIGHT:20pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; punctuation-wrap:hanging" align="right">$0.12 </p></td></tr></table> <p style="PAGE-BREAK-AFTER:avoid; LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p>
<!--egx--><p style="PAGE-BREAK-AFTER:avoid; LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>NOTE G:</b> <b>CONSULTING AGREEMENTS</b></p> <p style="PAGE-BREAK-AFTER:avoid; LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">On May 13, 2011 the Company entered into a consulting agreement with a former member of the Company’s Scientific Advisory Board. The agreement provides for the consultant’s assistance in molecular biology and related areas needed for commercialization of the Company’s stem cell product lines, as requested by management, at a compensation rate of $50 per hour. For the year ended October 31, 2011, the consultant had billed the Company a total of $500 in connection with this agreement.</p> <p style="PAGE-BREAK-AFTER:avoid; LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">On June 3, 2009 the Company entered into a business development consulting agreement with Seraphim Life Sciences Consulting LLC, to provide services primarily designed to identify and bring to Vitro potential industrial partners that could benefit from Vitro’s technologies. The agreement entitles the consultant to performance based compensation in the amount of 8% of all consideration received by the Company resulting from the consultant’s services. The agreement also provides for compensation at hourly rates for services not considered project specific as may be requested by Vitro. Either party may terminate the agreement at any time with thirty days written notice. As of October 31, 2011 no services have been performed and no compensation has been paid under the agreement.</p> <p style="PAGE-BREAK-AFTER:avoid; LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">On August 20, 2007, the Company entered into a Consulting Agreement with Mr. Joe Nieusma of Superior Toxicology & Wellness (“Superior”). This agreement was initially extended without modification through August 20, 2010, although no further extension has been made as of the date of this report. Under the terms of the original agreement, Superior will provide services including, but not limited to:</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><font style="FONT-FAMILY:Symbol">·<font style="FONT:7pt 'Times New Roman'"> </font></font>The development and funding of the Company’s current business plan;</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><font style="FONT-FAMILY:Symbol">·<font style="FONT:7pt 'Times New Roman'"> </font></font>The launch of products targeting applications in the development and discovery of new drug and biological products; and</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><font style="FONT-FAMILY:Symbol">·<font style="FONT:7pt 'Times New Roman'"> </font></font>The marketing and sales of all existing and proposed products and technology that are now available, or will be available for commercial distribution during the term of the agreement.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">In exchange for the above services, the Company will pay Superior $50 per hour capped at a maximum of 240 hours for the term of the agreement. In addition, the Company has agreed to issue Mr. Nieusma the following stock bonuses to be paid in shares of the Company’s common stock:</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">a. 100,000 shares upon the sale of stem-derived human beta islets as evidenced by issuance of a commercial invoice;</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">b. 100,000 shares upon the submission of a validation package to the United States Food and Drug Administration requesting approval of the use of Vitro’s stem cell-derived human beta islets for safety and efficacy testing and the use of this data within applications submitted for marketing approval of new drugs and biological products; and</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">c. 100,000 shares upon the receipt of $100,000 or more in capital funding of the Company based upon Vitro’s current business plan or subsequent versions thereof. This event occurred during fiscal year ending October 31, 2008 and the Company issued 100,000 shares to its consultant on March 27, 2008.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">Compensation for the successful sale of Vitro’s products, patent licenses or other revenue-generating event shall be based on industry standards and include a gross sales commission of 15% in addition to the compensation described above.</p>
<!--egx--><p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>NOTE H:</b> <b>JOINT PRODUCT DEVELOPMENT, MANUFACTURE AND DISTRIBUTION AGREEMENTS</b></p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">On May 29, 2010 the Company executed an Agreement with Mokshagundam Biotechnologies for the development of a medium formulation for growth of marine invertebrates as a potential food source. Initially, a basal medium formulation consisting of macro nutritional substances is to be developed and this will be supplemented with growth factors commonly used in stem cell media formulations. The Agreement provides for the Company to provide a pilot batch of medium for testing consisting of macro-nutritional support plus a mixture of common growth factors necessary for in-vitro support of self-renewal in stem cells of higher organisms. This medium was delivered to Mokshagundam during fiscal year 2010. The Agreement provided for a payment of $5,000 to the Company upon execution of the Agreement as an advance for the product development, and was received during the third quarter of fiscal year ended October 31, 2010.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">On April 27, 2010 the Company executed an Agreement for Joint Product Development, Manufacture and Distribution (“Agreement”) with HemoGenix, Inc., a privately held biotechnology firm located in Colorado Springs, Colorado. The Agreement provides for the joint manufacture and distribution of stem cell analysis tools. The agreement provides for the expansion of assay platforms from HemoGenix, in particular, LUMENESC for mesenchymal stem cells (MSC) and LumiSTEM for induced pluripotent stem cells (iPS). Also, this original agreement between the Company and HemoGenix® was expanded during the latter portions of 2010 to include joint development of cell-specific toxicity assays including those targeting liver cells, heart, kidney and neuronal cells. Furthermore, the strategic partners intend to jointly develop additional stem cell media products and align their respective quality programs to ensure consistency.</p>
<!--egx--><p style="PAGE-BREAK-AFTER:avoid; LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>NOTE I:</b> <b>PATENT LICENSE AGREEMENT</b></p> <p style="PAGE-BREAK-AFTER:avoid; LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b> </b></p> <p style="PAGE-BREAK-AFTER:avoid; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging; tab-stops:center 235.8pt">Effective March 30, 2011, the Company entered into a Technology License, License Option and Technical Assistance Agreement with a former officer of the Company, granting him an exclusive license covering two of the Company’s patents: United States Patent Number 5,990,288, Method for Purifying FSH and United States Patent Number 6,458,593 B1, Immortalized Cell Lines and Methods of Making The Same. The patents are related to treatment of infertility and know-how relating to the commercial production and cellular generation of the hormone, follicle-stimulating hormone and related gonadotropin hormones for use in the treatment of infertility in both humans and animals. In addition, the License grants the exclusive option to license a pending patent application for the commercial production of clinical grade gonadotropin hormones and, in addition, the Company’s intellectual property related to generation of crude materials containing gonadotropin hormones from certain cellular sources. The License has an initial term of five years and shall be automatically renewed for additional two year periods until terminated by either party; however, the license can be terminated after two and one-half years if there have been no sales of licensed products.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.5in">The licensee was previously an executive officer of the Company, and the Company had carried a $200,833 liability for unpaid compensation. The terms of the license agreement required payment of a non-refundable license fee of $10,000, which was paid by a reduction of the unpaid compensation liability. In addition, the license agreement also required the licensee forgive an additional $190,000 of the unpaid compensation liability. In addition to the license fee and the forgiveness of the unpaid compensation liability, there shall be royalty payments of 3% and 4% of the gross sales of all licensed products sold by or on behalf of Licensee during the first and second years, respectively. Such royalty payment shall be 4.5 % of the gross sales of all licensed products during the third year of product sales and shall remain at that level throughout the remaining term of the agreement. As of October 31, 2011, no sales have been made under this agreement.</p>
<!--egx--><p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"><b>NOTE J:</b> <b>SUBSEQUENT EVENTS</b></p> <p style="LINE-HEIGHT:12pt; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; punctuation-wrap:hanging">The Company has evaluated subsequent events through the date that the financial statements were available to be issued.</p>
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iso4217:USD
shares
iso4217:USD
shares
See Notes A and D.
Net of accumulated depreciation of $78,043.
Net of accumulated depreciation of $60,570.
Net of accumulated amortization of $7,664
See Note A.
Net of accumulated amortization of $4,525
See Note E.
See Note D.
See Note B.
See Note F.
See Notes A, B, C, D, E, F, G, and H.
See Note C.