16. STOCK BASED COMPENSATION

12 Months Ended

Oct. 31, 2016

Compensation and Retirement Disclosure [Abstract]

16. STOCK BASED COMPENSATION

Stock Option and Incentive Plans

The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost is recognized over the period during which an employee is required to provide services in exchange for the award, the requisite service period (usually the vesting period).  The Company provides an estimate of forfeitures at the initial date of grant.

In April 2004, the Company's shareholders approved the 2004 Stock Incentive Plan.  This plan provides for issuances of awards of up to 250,000 of the Company's common stock in the form of restricted or unrestricted shares, or incentive or non-statutory stock options for the purchase of the Company's common stock. Of the total amount of shares authorized under this plan, no options are outstanding and 26,000 restricted shares have been granted at October 31, 2016.  As of February 18, 2014, no further options may be granted under the 2004 plan.

In April 2014, the Company's stockholders approved the 2014 Stock Incentive Plan.  The plan provided for issuances of awards of up to 500,000 restricted or unrestricted shares of the Company's common stock, or incentive or non-statutory stock options to purchase such common stock.  Of the total amount of shares authorized under this plan, no options have been granted and 500,000 shares are available for grant at October 31, 2016.

All incentive and non-qualified stock option grants had an exercise price equal to the market value of the underlying common stock on the date of grant. The following table summarizes the activity related to stock options and outstanding stock option balances during the last two fiscal years:

	Outstanding Options (Shares)			Weighted Average Exercise Price
Balance at October 31, 2014		247,750			2.07
Expired		(201,500	)		2.33
Forfeited		(36,250	)		.90
Balance at October 31, 2015		10,000			.90
Forfeited		(10,000	)		.90
Balance at October 31, 2016		-

There were no exercisable stock options as of October 31, 2016.

Outstanding options were granted with lives of 10 years and provide for vesting over a term of 5 years.  There is no unrecognized future compensation cost to be recorded.  Compensation is determined using the Black-Scholes model and the simplified method to derive the expected term of the options and historical volatility over the past five years.