Business Combinations

3 Months Ended

Jan. 31, 2013

Disclosure Text Block Supplement [Abstract]

Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block]

NOTE 7 - ACQUISITION OF DTS8 HOLDINGS CO., LTD.

The Company acquired one hundred percent (100%) of the issued and outstanding shares of DTS8 Holdings for $4,000,000 by issuing a bond payable for $4,000,000 to the vendor and assumed $580,022 in current liabilities on April 30, 2012. DTS8 Holdings, through its subsidiary DTS8 Coffee, is a gourmet coffee roasting company established in June 2008. DTS8 Coffee’s office and roasting factory is located in Shanghai, China. DTS8 Coffee is in the business of roasting, marketing and selling gourmet roasted coffee to its customers in Shanghai, and other parts of China. It sells gourmet roasted coffee under the “DTS8 Coffee” label through distribution channels that reach consumers at restaurants, multi location coffee shops, offices and homes. The acquisition provides the Company with diversification as it enters into a new revenue stream of roasted coffees in Shanghai, China, compared to raw green coffee beans only. The Company also gains immediate access into the domestic Chinese coffee market. It creates a horizontally integrated coffee company in Shanghai, China with operations in two different geographic markets: the United States and China. The synergistic value from the acquisition provides with revenue enhancement by expanding the product line and diversification.

The acquisition of DTS8 Holdings was accounted for using the purchase method of accounting. The purchase price was allocated to the tangible assets acquired based on management’s evaluation of their respective fair values on the acquisition date in accordance with ASC 805 and ASC 820 and there were no identifiable intangible assets acquired based on management’s evaluation. Upon acquisition, DTS8 Holdings became a wholly owned subsidiary of the Company. The results of DTS8 Holdings’ operations, commencing with the date of acquisition, April 30, 2012, are included in the accompanying January 31, 2013, financial statements. The purchase price was allocated as follows:

Purchase Price Paid
Bonds payable	$	4,000,000
Liabilities assumed		580,022
Total Purchase Price Paid	$	4,580,022
Purchase Price Allocation
Accounts receivable	$	46,014
Inventory		36,367
Prepaid expenses		6,805
Property & equipment		84,252
Cash and cash equivalents		3,847
Goodwill		4,402,737
Total Purchase Price allocation	$	4,580,022