Intangible Assets

3 Months Ended

Jan. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 5 Intangible Assets

On May 13, 2013, the Company, through its wholly owned subsidiary IP Acquisition Sub II, Inc. purchased certain intellectual property rights from Solid Solar, n/k/a Spiral Energy Tech, Inc. under the terms of a patent purchase agreement.

In connection with this purchase of patents held by Spiral Energy Tech, Inc., the Company paid $100,000 in cash and issued 666,666 shares of common stock, having a fair value of $67 ($0.0001/share), for total consideration of $100,067.  The purchase of these patents was treated as an asset purchase, and not deemed to be the acquisition of a business.

Intangible assets were comprised of the following at January 31, 2014:

	Estimated Life (years)		Gross Amount		Accumulated Amortization			Impairment Charges		Net
Patent #1		7	$	800,000	$	(85,740	)	$	-	$	714,260
Patent #2		16	$	50,034	$	(2,267	)	$	-	$	47,767
Patent #3		11	$	50,034	$	(3,229	)	$	-	$	46,805
Total			$	900,068	$	(91,236	)	$	-	$	808,832

For the three months ended January 31, 2014, amortization expense related to the intangibles with finite lives totaled $31,915 and was included in general and administrative expenses in the consolidated statement of operations.

There was no amortization expense recorded for the three months ended January 31, 2013.

At January 31, 2014, future amortization of intangible assets is as follows:

Year Ending October 31
2014	$	94,702
2015		126,616
2016		126,963
2017		126,616
2018		126,616
Thereafter		207,319
	$	808,832

Actual amortization expense in future periods could differ from these estimates as a result of future acquisitions, divestitures, impairments and other factors.