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2. Basis of Presentation and Significant Accounting Policies: Liquidity (Policies)
6 Months Ended
Apr. 30, 2019
Policies  
Liquidity

Liquidity

 

The Company’s current assets exceeded current liabilities, excluding deferred revenue, by $104,000 as of April 30, 2019. The note payable to a related party, G.S. Beckwith Gilbert, the Company’s significant shareholder and Chairman, was $6,960,000 at April 30, 2019, with a maturity of November 1, 2020. The Company’s stockholders’ equity was $1,934,000 at April 30, 2019. The Company had a net loss of $2,066,000 for the six months ended April 30, 2019.

 

If the Company’s business does not generate sufficient cash flows from operations to meet its 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 June 11, 2019, that if the Company, at any time, is unable to meet its obligations through June 11, 2020, G.S. Beckwith Gilbert will provide the Company with the necessary continuing financial support 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.