FAIR VALUE

3 Months Ended

Jan. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

14.    FAIR VALUE

The authoritative guidance for fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are buyers and sellers in the principal market that are (i) independent, (ii)knowledgeable, (iii) able to transact, and (iv) willing to transact. The guidance describes a fair value hierarchy based on the levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:

·   Level 1 — Quoted prices in active markets for identical assets or liabilities

·   Level 2— Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable market data or substantially the full term of the assets or liabilities

·   Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the value of the assets or liabilities

The following table provides the liabilities carried at fair value measured on a recurring basis as of January 31, 2013:

January 31, 2013	Level 1		Level 2		Level 3		Total
Common stock warrant liability, warrants exercisable at $0.045 - $0.17 from October 2012 through December 2017	$	-	$		$	3,384,725	$	3,384,725
January 31, 2013
Short term Convertible Notes Payable at fair value
May 2012 Notes	$	-	$		$	807,960	$	807,960
Asher Notes – September & November 2012					$	426,173		426,173
Patton Note					$	185,426	$	185,426
JMJ Financial						427,730		427,730
Short-term convertible Notes Payable at fair value							$	1,847,289
October 31, 2012	Level 1		Level 2		Level 3		Total
Common stock warrant liability, warrants exercisable at $0.053 - $0.17 from October 2012 through August 2017	$	-		$	$	434,136	$	434,136
Embedded Derivative Liability								-

October 31, 2012
Short term Convertible Notes Payable
May 2012 Notes	$	-	$	$	588,313	$	588,313
Hanover PIPE Notes – September & October 2012				$	362,791		362,791
Magna Exchange Note				$	333,086		333,086
Asher Note				$	150,687		150,687
French, Patton & Paterson Notes				$	208,664	$	208,664
Short-term convertible Notes and FV of Embedded Derivative						$	1,643,541

Common stock warrant liability:

	January 31, 2013 (Unaudited)
Beginning balance: October 31, 2012	$	434,136
Issuance of common stock warrants		1,460,867
Reclassification of warrant liability to equity		-
Exchange of warrants		-
Issuance of additional warrants due to anti-dilution provisions		3,274
Change in fair value		1,486,448
Balance at January 31, 2013	$	3,384,725

Convertible Note FV roll forward : 

	January 31, 2013
	(Unaudited)
Beginning balance – October 31, 2012		1,643,541
Issuance of note		253,500
Transfer-out		(1,227,183	)
Change in Fair Value of Note		1,177,431
Ending balance – January 31, 2013		1,847,289