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Consolidated Balance Sheets - USD ($)
Oct. 31, 2015
Oct. 31, 2014
Current assets:    
Cash and cash equivalents $ 540,909 $ 818,438
Accounts receivable, net of allowance of $531,000 and $688,000 8,651,745 9,512,731
Inventories (Note 2) 3,568,665 3,969,992
Other current assets 890,165 226,307
Current portion assets held for sale (Note 10) 256,832 256,832
Total current assets 13,908,316 14,784,300
Property and equipment, at cost:    
Land 1,254,195 1,254,195
Buildings and improvements 4,676,290 4,923,113
Machinery and equipment 34,130,233 33,297,081
Equipment under capital lease 72,528 72,528
Furniture and fixtures 3,734,959 3,639,966
Vehicles 2,756,086 2,488,981
Property and equipment, gross 46,624,291 45,675,864
Less accumulated depreciation (39,911,447) (38,991,652)
Property and equipment, net 6,712,844 6,684,212
Goodwill (Note 9) 1,230,485 1,230,485
Other intangibles, net of accumulated amortization (Note 9) 1,057,845 1,179,943
Deferred financing costs 3,040 69,644
Other assets 13,996 59,809
Total non-current assets 2,305,366 2,539,881
Total assets 22,926,526 24,008,393
Current liabilities:    
Accounts payable 4,730,286 4,518,634
Accrued payroll and commissions 528,855 583,529
Taxes accrued and withheld 635,131 666,166
Accrued expenses 1,763,929 1,553,978
Debt discount (Note 3) 0 (138,520)
Notes payable (Note 3) 1,929,358 10,947,218
Notes payable - related party (Note 3) [1] 2,500,000 2,500,000
Capital lease obligations (Note 3) 15,852 14,931
Total current liabilities 12,103,411 20,645,936
Long-term debt, net of current portion:    
Notes payable (Note 3) 8,796,542 128,690
Capital lease obligations (Note 3) 12,528 28,381
Total liabilities 20,912,481 20,803,007
Shareholders' equity:    
Additional paid-in capital 24,279,179 24,279,179
Retained deficit (33,564,662) (32,373,321)
Total shareholders' equity 2,014,045 3,205,386
Total liabilities and shareholders' equity 22,926,526 24,008,393
Class A voting shares [Member]    
Shareholders' equity:    
Common stock 11,299,528 11,299,528
Class B nonvoting stock [Member]    
Shareholders' equity:    
Common stock $ 0 $ 0
[1] On June 15, 2015 the Company's Board of Directors approved the conversion of the Company's $2.5 million related party debt to Preferred Stock equity. The Preferred Stock will pay a 6.00% or 0.00% annual dividend contingent on the Company's income after income taxes. If the Company's income after income taxes is $1.0 million or greater, the dividend rate is 6.00%; if the Company's income after income taxes is less than $1.0 million, the dividend rate is 0.00%. This conversion will reduce the Company's liabilities by $2.5 million and increase its equity by $2.5 million. In addition, this conversion will reduce the Company's annual interest expense by $0.1 million. However, contingent on the after income tax income, this conversion could trigger the payment of an annual Preferred Stock dividend of $0.2 million or zero. If the $1.0 million after income tax income target is achieved, the Company's annual cash outflow would increase $0.1 million, or decrease $0.1 million if the $1.0 million after income tax income target is not achieved. This conversion is pending a shareholder vote to amend the Company's Articles of Incorporation to allow for the issuance of Preferred Stock. This will be part of the Company's definitive Proxy Statement, expected to be dated January 25, 2016, with respect to the Annual Meeting of Shareholders to be held on March 21, 2016. The Company will continue to accrue interest on the related party debt equal to the prime rate until such conversion has been consummated.