7. INCOME (LOSS) PER SHARE AND WEIGHTED AVERAGE SHARES

6 Months Ended

Apr. 30, 2013

Earnings Per Share [Abstract]

7. Income (Loss) Per Share And Weighted Average Shares

The Company considers outstanding in-the-money stock options as potential common stock in its calculation of diluted earnings per share, unless the effect would be anti-dilutive, and uses the treasury stock method to calculate the applicable number of shares.  The following calculation provides the reconciliation of the denominators used in the calculation of basic and fully diluted earnings per share:

	Three Months Ended April 30,					Six Months Ended April 30,
	2013			2012		2013			2012
Net (Loss) Income	$	(150,441	)	$	94,839	$	(556,899	)	$	40,539
Denominator:
Basic Weighted Average Shares Outstanding		21,372,865			21,388,681		21,376,857			21,388,681
Dilutive effect of Stock Options		-			-		-			-
Diluted Weighted Average Shares Outstanding		21,372,865			21,388,681		21,376,857			21,388,681
Basic Income (Loss) Per Share	$	(.01	)	$	.00	$	(.03	)	$	.00
Diluted Income Per (Loss) Share	$	(.01	)	$	.00	$	(.03	)	$	.00

There were 211,500 and 269,500 options outstanding as of April 30, 2013 and 2012, respectively.  For the three month and six month periods ended April 30, 2013 and 2012 there were no options used to calculate the effect of dilution because all of the outstanding options’ exercise prices exceeded the market price of the underlying common shares and were therefore considered anti-dilutive.