Debt

3 Months Ended

Jan. 31, 2014

Debt Disclosure [Abstract]

Debt

Note 6 Debt

Prior to October 31, 2012, the Company executed notes for $400,000.

These notes had the following terms:

● Maturity date is due on demand;

● Interest rate is 16%; and

● The loan was unsecured.

In May 2013, the Company executed a note for $1,500,000.

This note had the following terms:

● Maturity date is October 2014;

● Interest rate is 12%;

● Default interest rate is 18%; and

● The loan was unsecured.

The balance of the notes are reflected as current liabilities as of January 31, 2014 and October 31, 2013.

Interest expense for the three months ended January 31, 2014 and 2013 totaled $68,465 and $16,000, respectively.

Accrued interest as of January 31, 2014 and October 31, 2013 totaled $259,611 and $191,146, respectively.