EARNINGS (LOSS) PER COMMON SHARE AND DIVIDENDS PAID

12 Months Ended

Oct. 31, 2011

EARNINGS (LOSS) PER COMMON SHARE AND DIVIDENDS PAID [Text Block]

11. EARNINGS (LOSS) PER COMMON SHARE AND DIVIDENDS PAID

During each of the fiscal years ended October 31, 2011 and 2010, the Company had no options outstanding. There were no dividends declared on common stock during the years ended October 31, 2011 and 2010. There were no dividends declared on preferred stock during the years ended October 31, 2011 and 2010.

Basic earnings (loss) per share are computed by dividing earnings (loss) available to common stockholders by the weighted average number of common share outstanding during the period. Diluted earnings (loss) per share reflect per share amounts that would have resulted if dilutive potential common stock had been reported in the financial statements.

Basic and diluted earnings (losses) available to common stockholders at October 31, 2011 and 2010 were:

		For the Year Ended October 31, 2011
		Income		Shares		Per-share
		(Numerator)		(Denominator)		Amount
Net income	$	(741,000	)
Less preferred stock dividends		0
(Loss) available to common stock- holders-diluted earnings per share	$	(741,000	)	4,327,000	$	(0.17	)

		For the Year Ended October 31, 2010
		Income	Shares		Per-share
		(Numerator)	(Denominator)		Amount
Net income	$	547,000
Less preferred stock dividends		0
(Loss) available to common stock- holders-diluted earnings per share	$	547,000	4,327,000	$	0.13