7. PROPERTY AND EQUIPMENT, NET

12 Months Ended

Oct. 31, 2016

Property, Plant and Equipment [Abstract]

7. PROPERTY AND EQUIPMENT, NET

Property and equipment at October 31 consisted of:

	Useful Life	2016		2015
Leasehold improvements	Shorter of useful life	$	2,062,643	$	2,062,643
	of asset or lease term
Machinery and equipment	3 - 10 yrs.		23,666,239		22,841,505
Bottles, racks and vehicles	3 - 7 yrs.		5,419,346		5,262,900
Furniture, fixtures and office equipment	3 - 7 yrs.		3,202,424		3,142,355
Construction in progress			338,373		-
Property and equipment before accumulated depreciation			34,689,025		33,309,403
Less accumulated depreciation			27,920,840		26,439,417
Property and equipment, net of accumulated depreciation		$	6,768,185	$	6,869,986

Depreciation expense for the fiscal years ended October 31, 2016 and 2015 was $2,688,413 and $2,724,855, respectively.

The construction in progress relates to capitalized costs related to software not yet placed in service.