3. MERGERS AND ACQUISITIONS

12 Months Ended

Oct. 31, 2012

Business Combinations [Abstract]

3. MERGERS AND ACQUISITIONS

3. MERGERS AND ACQUISITIONS

The Company purchased assets of Valley Vending Service, Inc., New York; Girard Spring Water Co., Inc., Rhode Island; and Frontenac Crystal Springs Water, Inc., New York in fiscal year 2012. Similarly, it purchased assets from Hartford Stamp, LLC an office products distributor, Timberline Office Supply, Inc. a small engraving company, and Cool Beans, LLC a coffee distributor in fiscal year 2011.  The purchase price paid for the acquisitions for the respective years is as follows:

Fiscal Year 2012	Valley Vending		Girard		Frontenac		Total
Month Acquired	November		August		September
Cash	$	5,760	$	148,500	$	350,000	$	504,260
Assumption of Liability		1,240		1,500		-		2,740
Issuance of debt		-		-		101,103		101,103
Purchase Price	$	7,000	$	150,000	$	451,103	$	608,103

Fiscal Year 2011	Hartford Stamp		Timberline		Cool Beans		Total
Month Acquired	November		January		February
Cash	$	450,000	$	25,000	$	237,500	$	712,500
Issuance of Debt		150,000		-		-		150,000
Purchase Price	$	600,000	$	25,000	$	237,500	$	862,500

Acquisition-related costs (included in selling, general and administrative expenses in the consolidated statements of operations) were $17,160 in fiscal year 2012 and $12,035 in fiscal year 2011.

The allocation of purchase price to the corresponding line item on the financial statements related to these acquisitions for the respective years is as follows:

	2012		2011
Property and Equipment, net	$	55,650	$	183,000
Other Intangible Assets, net		552,453		674,500
Inventories		-		5,000
Purchase Price	$	608,103	$	862,500

The following table summarizes the pro forma consolidated condensed results of operations (unaudited) of the Company for the fiscal years ended October 31, 2012 and 2011 as though all the acquisitions had been consummated at the beginning of fiscal year 2011.

	2012			2011
Net Sales	$	71,862,611		$	72,457,274
Net Income (Loss)	$	(18,350,215	)	$	1,630,189
Net Income (Loss) Per Share-Diluted	$	(.86	)	$	.08
Weighted Average Common     Shares Outstanding-Diluted		21,384,406			21,388,681

The operating results of the acquired entities have been included in the accompanying statements of operations since their respective dates of acquisition.