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1. Description of Business and Significant Accounting Policies: Liquidity (Policies)
12 Months Ended
Oct. 31, 2018
Policies  
Liquidity

Liquidity

 

The Company’s current liabilities exceeded current assets, excluding deferred revenue by $693,000 as of October 31, 2018. The note payable to a related party, G.S. Beckwith Gilbert, the Company’s significant shareholder and Chairman, was $6,050,000 at October 31, 2018, with a maturity of November 1, 2019. The Company’s stockholders’ equity was $3,614,000 at October 31, 2018. The Company had a net loss of $5,484,000 for the year ended October 31, 2018.

 

If the Company’s business plan does not generate sufficient cash flows from operations to meet the Company’s operating cash requirements, the Company will attempt to obtain external financing on commercially reasonable terms. However, the Company has received a commitment from G.S. Beckwith Gilbert, dated January 29, 2019, that if the Company, at any time, is unable to meet its obligations through January 29, 2020, G.S. Beckwith Gilbert will provide the necessary continuing financial support to the Company in order for the Company to meet such obligations. Such commitment for financial support may be in the form of additional advances or loans to the Company, in addition to the deferral of principal and/or interest payments due on the existing loans, if deemed necessary. The note payable is secured by the Company’s assets.