1. Description of Business and Significant Accounting Policies: Stock-based Compensation (Policies)

12 Months Ended

Oct. 31, 2014

Policies

Stock-based Compensation

Stock-Based Compensation 

The Company follows FASB ASC 718 “Compensation-Stock Compensation”, which requires measurement of compensation cost for all stock-based awards at fair value on date of grant, and recognition of stock-based compensation expense over the service period for awards expected to vest. The fair value of stock options was determined using the Black-Scholes valuation model. Such fair value is recognized as an expense over the service period, net of forfeitures. Stock-based compensation expense was $310,000 and $275,000 in fiscal years 2014 and 2013, respectively, and was primarily included in selling, general, and administrative expenses.

The Company’s stock options vest over a period of five years. The fair value for these stock options was estimated at the date of grant using a Black-Scholes stock option pricing model, with the following weighted average assumptions for fiscal years 2014 and 2013; risk-free interest rate of 1.62% to 3.54%, volatility factor of the expected market price of the Company’s common stock of 117%, no dividend yield, and a weighted average expected life of the stock options of 5.5 to 6.5 years.