Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 30, 2015 | Jun. 15, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | CardioGenics Holdings Inc. | |
Entity Central Index Key | 1,089,029 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock Shares Outstanding | 67,220,582 | |
Trading Symbol | CGNH | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Apr. 30, 2015 | Oct. 31, 2014 |
Current assets: | ||
Cash and Cash Equivalents | $ 37,851 | $ 70,676 |
Accounts Receivable | 213 | 228 |
Refundable Taxes Receivable | 3,101 | 2,625 |
Total current assets | 41,165 | 73,529 |
Property and Equipment, net | 38,801 | 42,693 |
Deposits and Prepaid Expenses | 43,742 | 45,576 |
Patents, net | 105,528 | 108,132 |
Totals | 229,236 | 269,930 |
Current liabilities: | ||
Accounts Payable and Accrued Expenses | 985,308 | 1,020,809 |
Funds Held in Trust for Redemption of Class B Common Shares | 4 | 4 |
Due to Shareholders | 100,000 | 131,052 |
Notes Payable, net of debt discount | 105,023 | 71,863 |
Derivative Liabilities on Notes Payable | 357,901 | 201,260 |
Total current liabilities | $ 1,548,236 | $ 1,424,988 |
Commitments and contingencies | ||
Deficiency | ||
Preferred stock; par value $.0001 per share, 50,000,000 shares authorized, none issued | ||
Common stock; par value $.00001 per share; 150,000,000 shares authorized, 67,220,582 and 47,383,379 common shares and 24,176,927 and 24,176,927 exchangeable shares issued and outstanding as of April 30, 2015 and October 31, 2014 | $ 889 | $ 692 |
Additional paid-in capital | 47,209,135 | 46,505,954 |
Accumulated deficit | (48,575,453) | (47,637,746) |
Accumulated other comprehensive income (loss) | 46,429 | (23,958) |
Total deficiency | (1,319,000) | (1,155,058) |
Totals | $ 229,236 | $ 269,930 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 30, 2015 | Oct. 31, 2014 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 67,220,582 | 47,383,379 |
Common stock, shares outstanding | 67,220,582 | 47,383,379 |
Exchangeable Shares [Member] | ||
Common stock, shares issued | 24,176,927 | 24,176,927 |
Common stock, shares outstanding | 24,176,927 | 24,176,927 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | ||||
Operating Expenses | ||||
Depreciation and Amortization of Property and Equipment | $ 1,906 | $ 2,685 | $ 3,892 | $ 5,428 |
Amortization of Patent Application Costs | 2,282 | 1,690 | 4,661 | 3,416 |
General and Administrative | 81,904 | 95,827 | 215,515 | 268,045 |
Research and Product Development, Net of Investment Tax Credits | 68,717 | 105,192 | 136,437 | 190,675 |
Total operating expenses | 154,809 | 205,394 | 360,505 | 467,564 |
Operating Loss | (154,809) | (205,394) | (360,505) | (467,564) |
Other Expenses (Income) | ||||
Interest Expense and Bank Charges (Net) | 103,278 | 125,658 | 262,393 | 237,580 |
Loss (Gain) on Change in Fair Value of Derivative Liability | (323,499) | 23,465 | 328,849 | 819 |
Loss (Gain) on Foreign Exchange Transactions | (57,711) | (14,766) | (14,040) | 42,179 |
Total other expenses (income) | (277,932) | 134,357 | 577,202 | 280,578 |
Net Income (Loss) | $ 123,123 | $ (339,751) | $ (937,707) | $ (748,142) |
Basic and Fully Diluted Net Income (Loss) per Common Share | $ 0 | $ (0.01) | $ (0.01) | $ (0.01) |
Weighted-average shares of Common Stock outstanding –-Basic | 87,941,755 | 60,447,704 | 80,941,470 | 59,915,908 |
Weighted-average shares of Common Stock outstanding – Diluted | 102,137,307 | 60,447,704 | 80,941,470 | 59,915,908 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 123,123 | $ (339,751) | $ (937,707) | $ (748,142) |
Other comprehensive income (loss), currency translation adjustments | 73,193 | (28,201) | 70,387 | 76,677 |
Comprehensive income (loss) | $ 196,316 | $ (367,952) | $ (867,320) | $ (671,465) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in Deficiency (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended |
Apr. 30, 2015 | Apr. 30, 2015 | |
Common Stock [Member] | ||
Balance | $ 692 | |
Balance, shares | 71,560,306 | |
Issuance of common shares on conversion of notes payable November 2014 | $ 6 | |
Issuance of common shares on conversion of notes payable November 2014, shares | 589,679 | |
Issuance of common shares on conversion of notes payable December 2014 | $ 30 | |
Issuance of common shares on conversion of notes payable December 2014, shares | 2,977,637 | |
Issuance of common shares on conversion of notes payable January 2015 | $ 73 | |
Issuance of common shares on conversion of notes payable January 2015, shares | 7,349,902 | |
Issuance of common shares on conversion of shareholder's loan February 2015 | $ 2 | |
Issuance of common shares on conversion of shareholder's loan February 2015, shares | 227,273 | |
Issuance of common shares on conversion of notes payable February 2015 | $ 47 | |
Issuance of common shares on conversion of notes payable February 2015, shares | 4,684,409 | |
Issuance of common shares on conversion of notes payable March 2015 | $ 29 | |
Issuance of common shares on conversion of notes payable March 2015, shares | 3,039,913 | |
Issuance of common shares for services rendered March 2015 | $ 3 | |
Issuance of common shares for services rendered March 2015, shares | 250,000 | |
Issuance of common shares on conversion of notes payable April 2015 | $ 7 | |
Issuance of common shares on conversion of notes payable April 2015, shares | 718,390 | |
Other Comprehensive Income | ||
Balance | $ 889 | $ 889 |
Balance, shares | 91,397,509 | 91,397,509 |
Additional Paid-In Capital [Member] | ||
Balance | $ 46,505,954 | |
Issuance of common shares on conversion of notes payable November 2014 | 22,528 | |
Issuance of common shares on conversion of notes payable December 2014 | 32,230 | |
Issuance of common shares on conversion of notes payable January 2015 | 83,051 | |
Issuance of common shares on conversion of shareholder's loan February 2015 | 22,854 | |
Issuance of common shares on conversion of notes payable February 2015 | 40,995 | |
Issuance of common shares on conversion of notes payable March 2015 | 23,525 | |
Issuance of common shares for services rendered March 2015 | 7,497 | |
Issuance of common shares on conversion of notes payable April 2015 | 10,720 | |
Settlement of derivative value of notes payable on conversion to common shares | 459,778 | |
Other Comprehensive Income | ||
Balance | $ 47,209,135 | 47,209,135 |
Accumulated Deficit [Member] | ||
Balance | (47,637,746) | |
Other Comprehensive Income | ||
Total Comprehensive Income (Loss) | (937,707) | |
Net Loss | (937,707) | |
Balance | (48,575,453) | (48,575,453) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Balance | (23,958) | |
Other Comprehensive Income | ||
Currency Translation Adjustment | 70,387 | |
Total Comprehensive Income (Loss) | 70,387 | |
Balance | 46,429 | 46,429 |
Balance | (1,155,058) | |
Issuance of common shares on conversion of notes payable November 2014 | 22,534 | |
Issuance of common shares on conversion of notes payable December 2014 | 32,260 | |
Issuance of common shares on conversion of notes payable January 2015 | 83,124 | |
Issuance of common shares on conversion of shareholder's loan February 2015 | 22,856 | |
Issuance of common shares on conversion of notes payable February 2015 | 41,042 | |
Issuance of common shares on conversion of notes payable March 2015 | 23,554 | |
Issuance of common shares for services rendered March 2015 | 7,500 | |
Issuance of common shares on conversion of notes payable April 2015 | 10,727 | |
Settlement of derivative value of notes payable on conversion to common shares | 459,778 | |
Currency Translation Adjustment | 73,193 | 70,387 |
Total Comprehensive Income (Loss) | 196,316 | (867,320) |
Net Loss | 123,123 | (937,707) |
Balance | $ (1,319,000) | $ (1,319,000) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (937,707) | $ (748,142) |
Adjustments to reconcile net (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 3,892 | 5,428 |
Amortization of Patent Application Costs | 4,661 | 3,416 |
Loss on Change in Value of Derivative Liability | 328,849 | 819 |
Interest and Discount on Notes Payable | $ 238,169 | 60,121 |
Amortization of Discount on Debentures Payable | 124,098 | |
Issue of Common Shares for Services Rendered | $ 7,500 | 25,000 |
Changes in working capital items: | ||
Accounts receivable | 15 | 12 |
Deposits and Prepaid Expenses | 1,834 | 2,396 |
Refundable Taxes Receivable | $ (476) | (203) |
Receivable | (10,763) | |
Accounts Payable and Accrued Expenses | $ 42,525 | 128,345 |
Cash used in operating activities | (310,738) | $ (409,473) |
Cash flows from investing activities | ||
Patent Application Costs | (2,057) | |
Cash used in investing activities | (2,057) | |
Cash flows from financing activities: | ||
Proceeds from Notes Payable | $ 205,000 | $ 35,000 |
Issue of Common Shares for Cash | 50,000 | |
Cash provided by financing activities | $ 205,000 | 85,000 |
Effects of exchange rate changes on cash | 74,970 | 63,345 |
Net change in cash and cash equivalents | (32,825) | (261,128) |
Cash and cash equivalents, beginning of period | 70,676 | 263,103 |
Cash and cash equivalents, end of period | $ 37,851 | $ 1,975 |
Nature of Business
Nature of Business | 6 Months Ended |
Apr. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | 1. Nature of Business CardioGenics Inc. (CardioGenics) was incorporated on November 20, 1997 in the Province of Ontario, Canada, and carries on the business of development and commercialization of diagnostic test products to the In Vitro Diagnostics testing market. CardioGenics has several test products that are in various stages of development. CardioGenics revenues, to date, have been primarily comprised of grant revenue and Scientific Research Tax Credits from government agencies. There can be no assurance that the Company will be successful in obtaining regulatory approval for the marketing of any of the existing or future products that the Company will succeed in developing. On October 27, 2009, the name of the Company was changed from JAG Media Holdings, Inc. to CardioGenics Holdings, Inc. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Apr. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 2. Basis of Presentation In the opinion of management, the unaudited condensed interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the condensed interim consolidated financial position of CardioGenics Holdings Inc. and its subsidiaries under generally accepted accounting principles in the United States (US GAAP) as of April 30, 2015, their results of operations for the three and six months ended April 30, 2015 and 2014, changes in deficiency for the six months ended April 30, 2015 and cash flows for the six months ended April 30, 2015 and 2014. CardioGenics Holdings Inc. and its subsidiaries are referred to together herein as the Company. Pursuant to rules and regulations of the SEC, certain information and disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted from these consolidated financial statements unless significant changes have taken place since the end of the most recent fiscal year. Accordingly, these condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements, notes to consolidated financial statements and the other information in the audited consolidated financial statements of the Company as of October 31, 2014 and 2013 (the Audited Financial Statements) included in the Companys Form 10-K that was previously filed with the SEC on February 12, 2015 and from which the October 31, 2014 consolidated balance sheet was derived. The results of the Companys operations for the six months ended April 30, 2015 are not necessarily indicative of the results of operations to be expected for the full year ending October 31, 2015. The accompanying condensed interim consolidated financial statements have been prepared using the accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has incurred operating losses and has experienced negative cash flows from operations since inception. The Company has an accumulated deficit at April 30, 2015 of approximately $48.6 million. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern. The Company has funded its activities to date almost exclusively from debt and equity financings. These conditions raise substantial doubt about the Companys ability to continue as a going concern. The Company will continue to require substantial funds to continue research and development, including preclinical studies and clinical trials of its products, and to commence sales and marketing efforts, if the FDA and other regulatory approvals are obtained. In order to meet its operating cash flow requirements, managements plans include financing activities such as private placements of its common stock and issuances of convertible debt instruments. Management is also actively pursuing industry collaboration activities including product licensing and specific project financing. While the Company believes it will be successful in obtaining the necessary financing to fund its operations, meet revenue projections and manage costs, there are no assurances that such additional funding will be achieved and that it will succeed in its future operations. The accompanying condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might be necessary should the Company be unable to continue in existence. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Apr. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies. Derivative Instruments The Companys derivative liabilities are related to embedded conversion features of the Notes Payable. For derivative instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in fair value recognized in earnings each reporting period. The Company uses the Black-Scholes model to value the derivative instruments at inception and subsequent valuation dates and the value is re-assessed at the end of each reporting period, in accordance with Accounting Standards Codification (ASC) 815. Derivative instrument liabilities are classified in the consolidated balance sheet as current or non-current based on whether or not the net-cash settlement of the derivative instrument could be required within twelve months of the consolidated balance sheet date. Beneficial Conversion Charge The intrinsic value of beneficial conversion features arising from the issuance of convertible debentures with conversion rights that are in-the-money at the commitment date is recorded as debt discount and amortized to interest expense over the term of the debentures. The intrinsic value of a beneficial conversion feature is determined after initially allocating an appropriate portion of the proceeds received from the sale of the debentures to any detachable instruments, such as warrants, included in the sale or exchange based on relative fair values. |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 4. Income Taxes Based on the Companys evaluation, management has concluded that there are no significant tax positions requiring recognition in the condensed interim consolidated financial statements. The Company has incurred losses in Canada since inception, which have generated net operating loss carryforwards for income tax purposes. The net operating loss carryforwards arising from Canadian sources as of April 30, 2015 approximated $7,502,000 which will expire from 2015 through 2033. All fiscal years as originally filed have been assessed. Claims relating to research and development credits are open for review for the fiscal years ended October, 2014 and 2013. A research and development tax credit for 2012 for which the Company received a refund of $81,460 is being refuted by Canadian taxation authorities. The Company is disputing the position taken by the taxation authorities, but has established a reserve against possible repayment. Returns for the years 2008 through 2014 are yet to be filed. As of April 30, 2015, the Company believes it has net operating loss carryforwards from US sources of approximately $45,374,000 available to reduce future Federal taxable income which will expire from 2020 through 2033. For the six months ended April 30, 2015 and 2014, the Companys effective tax rate differs from the statutory rate principally due to the net operating losses for which no benefit was recorded. |
Notes Payable
Notes Payable | 6 Months Ended |
Apr. 30, 2015 | |
Debt Disclosure [Abstract] | |
Notes Payable | 5. Notes Payable On November 19, 2012, the Company entered into an agreement (Line) with JMJ Financial (Lender) whereby the Company may borrow up to $350,000 from the Lender in increments of $50,000. The Line is subject to an original issue discount of $50,000. Advances under the Line (Notes) have a maturity date of one year from the date of the advance. If the advance is repaid within three months, the advance is interest free. If not repaid within three months, the advance may not be repaid before maturity and carries interest at 5%. The Lender has the right at any time to convert all or part of the outstanding principal and accrued interest (and any other fees) into shares of fully paid and non-assessable shares of common stock of the Company at a price equal to the lesser of $0.23 and 60% of the lowest trade price in the 25 trading days previous to the conversion. Unless agreed in writing by the parties, at no time will the Lender convert any amount owing under the Line into common stock that would result in the Lender owing more than 4.99% of the common stock outstanding. On May 23, 2014, the Company issued promissory notes (the LG Notes) to LG Capital Funding, LLC and Adar Bays, LLC (collectively the Holders) in the amount of $52,500 each bearing interest at 8% annually due May 23, 2015. The LG Notes and accrued interest may be converted into shares of the Common Stock of the Company at a 42% discount to the lowest closing bid with a 12 day look back. The LG Notes may be prepaid with the following penalties: (i) if the Notes are prepaid within 60 days of the issue date, then at 130% of the face amount plus any accrued interest; and, (ii) if the LG Notes are prepaid after 60 days after the issue date but less than 181 days after the issue date, then at 140% of the face amount plus any accrued interest. The LG Notes may not be prepaid after the 180th day after issue. The LG Notes were all converted to common shares in the period. On November 12, 2014, the Company received $50,000 from Chicago Ventures in exchange for a note payable bearing interest at 10% due in one year, convertible into shares in the Companys common stock at a 40% discount from the lowest closing price of the common shares over the prior 15 days. On November 20, 2014, the Company reached a settlement with IBC Funds, LLC (IBC) whereby IBC agreed to pay $78,026 of the Companys debts in exchange for the right to purchase shares in the Companys common stock at a 40% discount from the lowest closing price of the common shares over the prior 15 days. On December 15, 2014, the Company received $52,500 from LG Capital in exchange for a note payable bearing interest at 8% due in one year, convertible into shares in the Companys common stock at a 42% discount from the lowest closing price of the common shares over the prior 15 days. On March 5, 2015, the Company received $55,250 from Activus Private Equity Fund, LLC in exchange for a note payable bearing interest at 8% due November 26, 2015, convertible into shares in the Companys common stock at a 40% discount from the average of the lowest two trading prices of the common shares over the prior 10 trading days. On March 25, 2015, the Company received $52,500 from Adar Bays in exchange for a note payable bearing interest at 8% due in one year, convertible into shares in the Companys common stock at a 42% discount from the lowest closing price of the common shares over the prior 15 days. A summary of the Notes Payable at April 30, 2015 and October 31, 2014 follows: April 30, 2015 October 31, 2014 Convertible Note Payable, due February 20, 2015 $ $ 12,529 Convertible Notes Payable, due May 23, 2015 105,000 Convertible Note Payable, due June 23, 2015 25,360 40,000 Convertible Note Payable, due October 22, 2015 35,000 35,000 Convertible Note Payable, due November 12, 2015 50,000 Convertible IBC Funds, LLC Payable, due November 21, 2015 16,421 Convertible Note Payable, due December 15, 2015 52,500 Convertible Note Payable, due November 26, 2015 55,250 Convertible Note Payable, due March 25, 2016 42,500 Debt Discount - value attributable to conversion feature attached to Notes, net of accumulated amortization of $105,023 and $71,863 (171,508 ) (120,666 ) Total 105,023 71,863 Less: Current portion 105,023 71,863 Total Long-term portion $ $ As described in further detail in Note 6, Derivative Liabilities, the Company determines the fair value of the embedded derivatives and records them as a discount to the Notes and as a derivative liability. Upon conversion of the Notes to Common Stock, any remaining unamortized discount is charged to financing expense. |
Derivative Liabilities
Derivative Liabilities | 6 Months Ended |
Apr. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Liabilities | 6. Derivative Liabilities Convertible notes-embedded conversion features: The Notes meet the definition of a hybrid instrument, as defined in ASC 815. The hybrid instrument is comprised of i) a debt instrument, as the host contract and ii) an option to convert the debentures into common stock of the Company, as an embedded derivative. The embedded derivatives derive their value based on the underlying fair value of the Companys common stock. The embedded derivatives are not clearly and closely related to the underlying host debt instrument since the economic characteristics and risk associated with these derivatives are based on the common stock fair value. The Company determines the fair value of the embedded derivatives and records them as a discount to the Notes and a derivative liability. The Company has recognized a derivative liability of $357,901 at April 30, 2015. Accordingly, changes in the fair value of the embedded derivative are immediately recognized in earnings and classified as a gain or loss on the embedded derivative financial instrument in the accompanying condensed consolidated statements of operations. The Company recognized a gain of $323,499 in the fair value for the three months ended April 30, 2015 and a loss of $328,849 in the fair value for the six months ended April 30, 2015. The Company estimated the fair value of the embedded derivatives using a Black Scholes model with the following assumptions: conversion price $0.012 per share according to the agreements; risk free interest rate of .11%; expected life of 1 year; expected dividend of zero; a volatility factor of 245% to 342%, as of April 30, 2015. The expected lives of the instruments are equal to the contractual term of the conversion option. The expected volatility is based on the historical price volatility of the Companys common stock. The risk-free interest rate represents the U.S. Treasury constant maturities rate for the expected life of the related conversion option. The dividend yield represents anticipated cash dividends to be paid over the expected life of the conversion option. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Apr. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. Fair Value Measurements As defined by the ASC, fair value measurements and disclosures establish a hierarchy that prioritizes fair value measurements based on the type of inputs used for the various valuation techniques (market approach, income approach and cost approach). The levels of hierarchy are described below: ● Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities. ● Level 2: Inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets, such as interest rates and yield curves that are observable at commonly-quoted intervals. ● Level 3: Unobservable inputs that reflect the reporting entitys own assumptions, as there is little, if any, related market activity. The following table summarizes the financial liabilities measured at fair value on a recurring basis as of April 30, 2015, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Quoted Prices in Total Increase (Reduction) Active Markets for Significant Other Significant in Fair Value Balance Sheet Identical Assets or Observable Inputs Unobservable April 30, 2015 Recorded at Location Liabilities (Level 1) (Level 2) Inputs (Level 3) Total April 30, 2015 Liabilities: Derivative liability on Notes Payable $ - $ - $ 357,901 $ 357,901 $ 328,849 The table below sets forth a summary of changes in the fair value of the Companys Level 3 financial liability, or derivative liabilities related to the senior secured convertible notes and warrants, for the six months ended April 30, 2015: 2015 2014 Balance at beginning of period $ 201,260 $ 99,702 Additions to derivative instruments 287,570 35,000 Change in fair value of derivative liabilities 328,849 819 Settlements (459,778 ) (61,076 ) Balance at end of period $ 357,901 $ 74,445 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Apr. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 8. Stock Based Compensation Stock-based employee compensation related to stock options for the six months ended April 30, 2015 and 2014 amounted to $-0-. The following is a summary of the common stock options outstanding, granted, forfeited or expired and exercised under the Plan: Weighted Average Exercise Options Price Outstanding October 31, 2013 30,000 $ 0.90 Granted Forfeited/Expired Exercised Outstanding October 31, 2014 30,000 $ 0.90 Granted Forfeited/Expired Exercised Outstanding April 30, 2015 30,000 $ 0.90 Options typically vest immediately at the date of grant. As such, the Company does not have any unvested options or unrecognized compensation expense at April 30, 2015. |
Warrants
Warrants | 6 Months Ended |
Apr. 30, 2015 | |
Equity [Abstract] | |
Warrants | 9. Warrants Outstanding warrants are as follows: April 30, 2015 October 31, 2014 Issued to Flow Capital Advisors Inc. on settlement of lawsuit in August 2011, entitling the holder to purchase 1 common share in the Company at an exercise price of $0.30 per common share up to and including August 23, 2016 250,000 250,000 Issued to Flow Capital Advisors Inc. on settlement of lawsuit August 2011, entitling the holder to purchase 1 common share in the Company at an exercise price of $0.50 per common share up to and including August 23, 2016 250,000 250,000 Issued to Flow Capital Advisors Inc. on settlement of lawsuit August 2011, entitling the holder to purchase 1 common share in the Company at an exercise price of $0.75 per common share up to and including August 23, 2016 500,000 500,000 Issued to Flow Capital Advisors Inc. on settlement of lawsuit August 2011, entitling the holder to purchase 1 common share in the Company at an exercise price of $1.00 per common share up to and including August 23, 2016 500,000 500,000 Issued to Flow Capital Advisors Inc. on settlement of lawsuit August 2011, entitling the holder to purchase 1 common share in the Company at an exercise price of $0.75 per common share up to and including August 23, 2016 500,000 500,000 Issued to debenture holders February 2013 entitling the holders to purchase 1 common share in the Company at an exercise price of $0.25 per common share up to and including February 27, 2016 600,000 600,000 Issued to debenture holders May 2013 entitling the holders to purchase 1 common share in the Company at an exercise price of $0.15 per common share up to and including June 3, 2016 750,000 750,000 Issued to debenture holders June 2013 entitling the holders to purchase 1 common share in the Company at an exercise price of $0.15 per common share up to and including June 3, 2016 232,500 232,500 Issued to consultants on August 5, 2013 entitling the holders to purchase 1 common share in the Company at an exercise price of $0.15 per common share up to and including August 4, 2023 2,500,000 2,500,000 Issued to consultants on August 5, 2013 entitling the holders to purchase 1 common share in the Company at an exercise price of $0.10 per common share up to and including August 4, 2023 1,500,000 1,500,000 Issued to consultant on September 3, 2013 entitling the holder to purchase 1 common share in the Company at an exercise price of $0.50 per common share up to and including July 31, 2018 500,000 500,000 Issued to shareholder on October 29, 2013 entitling the holder to purchase 1 common share in the Company at an exercise price of $0.15 per common share up to and including October 29, 2016 250,000 250,000 Issued to shareholder on November 7, 2013 entitling the holder to purchase 1 common share in the Company at an exercise price of $0.15 per common share up to and including November 7, 2016 125,000 - Total Warrants outstanding 8,457,500 8,332,500 |
Issuance of Common Stock
Issuance of Common Stock | 6 Months Ended |
Apr. 30, 2015 | |
Equity [Abstract] | |
Issuance of Common Stock | 10. Issuance of Common Stock During the six months ended April 30, 2015, the Company issued the following common shares: Issued for services rendered 250,000 Issued to shareholder on conversion of shareholders loan at $0.11 per share 227,273 Issued on conversion of Notes Payable 19,359,930 19,837,203 |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Apr. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 11. Net Loss per Share The following table sets forth the computation of weighted-average shares outstanding for calculating basic and diluted earnings (loss) per share (EPS): Three Months Ended April 30, Six Months Ended April 30, 2015 2014 2015 2014 Weighted-average shares - basic 87,941,755 60,447,704 80,941,470 59,915,908 Effect of dilutive securities 14,195,552 Weighted-average shares - diluted 102,137,307 60,447,704 80,941,470 59,915,908 Basic earnings (loss) per share EPS and diluted EPS for the three and six months ended April 30, 2015 and 2014 have been computed by dividing the net income (loss) available to common stockholders for each respective period by the weighted average shares outstanding during that period. All outstanding options and warrants to be issued upon the exercise of the outstanding option and warrants representing 8,487,500 incremental shares have been excluded from the three months ended April 30, 2015 computation of earnings per share as they are antidilutive. All outstanding options, warrants and shares to be issued upon the exercise of the outstanding options and warrants and conversion of debt representing 31,543,416 and 12,918,436 incremental shares, respectively, have been excluded from the six months ended April 30, 2015 and the three and six months ended April 30, 2014 computation of diluted EPS as they would not affect the EPS for the three months ended April 30, 2015 and are antidilutive given the net losses generated for the other periods presented. |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 6 Months Ended |
Apr. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure of Cash Flow Information | 12. Supplemental Disclosure of Cash Flow Information For the Six Months Ended April 30, 2015 2014 Cash paid during the year for: Interest $ 11,336 $ 7,834 Income taxes $ $ Non-cash financing activities Conversion of Notes Payable $ 208,106 $ 58,001 Settlement of derivative liability $ 459,778 $ 61,076 Issuance of shares on settlement of suit $ $ 189,000 Common share issued for services $ 35,000 $ Common shares issued for shareholders loan $ 31,052 $ |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Apr. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 13. Commitments and contingent liabilities On June 3, 2015, JMJ Financial filed a suit in Florida court demanding payment of its outstanding note payable in the amount of $77,235 for failure to convert a portion of its note into 1,800,000 common shares. The parties have agreed to resolve the matter by the Company agreeing with JMJ Financial to repay the $77,235 in equal monthly installments of $6,436 over twelve (12) months commencing June 23, 2015. The Company may elect to pay any of the scheduled payments in the form of common stock calculated using the lowest closing price of the common stock in the five trading days prior to the Company delivering the common stock. The suit was subsequently withdrawn June 19, 2015. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Apr. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events (i) On May 11, 2015, the Company was served with a default notice from JMJ Financial under its note payable, the parties have resolved a settlement. See Note 13. (ii) On June 3, 2015, the Company issued 1,116,667 common shares to an investor in exchange for $ 35,000. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Apr. 30, 2015 | |
Accounting Policies [Abstract] | |
Derivative Instruments | Derivative Instruments The Companys derivative liabilities are related to embedded conversion features of the Notes Payable. For derivative instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in fair value recognized in earnings each reporting period. The Company uses the Black-Scholes model to value the derivative instruments at inception and subsequent valuation dates and the value is re-assessed at the end of each reporting period, in accordance with Accounting Standards Codification (ASC) 815. Derivative instrument liabilities are classified in the consolidated balance sheet as current or non-current based on whether or not the net-cash settlement of the derivative instrument could be required within twelve months of the consolidated balance sheet date. |
Beneficial Conversion Charge | Beneficial Conversion Charge The intrinsic value of beneficial conversion features arising from the issuance of convertible debentures with conversion rights that are in-the-money at the commitment date is recorded as debt discount and amortized to interest expense over the term of the debentures. The intrinsic value of a beneficial conversion feature is determined after initially allocating an appropriate portion of the proceeds received from the sale of the debentures to any detachable instruments, such as warrants, included in the sale or exchange based on relative fair values. |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Apr. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Notes Payable | A summary of the Notes Payable at April 30, 2015 and October 31, 2014 follows: April 30, 2015 October 31, 2014 Convertible Note Payable, due February 20, 2015 $ $ 12,529 Convertible Notes Payable, due May 23, 2015 105,000 Convertible Note Payable, due June 23, 2015 25,360 40,000 Convertible Note Payable, due October 22, 2015 35,000 35,000 Convertible Note Payable, due November 12, 2015 50,000 Convertible IBC Funds, LLC Payable, due November 21, 2015 16,421 Convertible Note Payable, due December 15, 2015 52,500 Convertible Note Payable, due November 26, 2015 55,250 Convertible Note Payable, due March 25, 2016 42,500 Debt Discount - value attributable to conversion feature attached to Notes, net of accumulated amortization of $105,023 and $71,863 (171,508 ) (120,666 ) Total 105,023 71,863 Less: Current portion 105,023 71,863 Total Long-term portion $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Apr. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Liabilities Measured on Recurring Basis | The following table summarizes the financial liabilities measured at fair value on a recurring basis as of April 30, 2015, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Quoted Prices in Total Increase (Reduction) Active Markets for Significant Other Significant in Fair Value Balance Sheet Identical Assets or Observable Inputs Unobservable April 30, 2015 Recorded at Location Liabilities (Level 1) (Level 2) Inputs (Level 3) Total April 30, 2015 Liabilities: Derivative liability on Notes Payable $ - $ - $ 357,901 $ 357,901 $ 328,849 |
Schedule of Changes in Fair Value of Financial Liabilities or Derivative Liabilities | The table below sets forth a summary of changes in the fair value of the Companys Level 3 financial liability, or derivative liabilities related to the senior secured convertible notes and warrants, for the six months ended April 30, 2015: 2015 2014 Balance at beginning of period $ 201,260 $ 99,702 Additions to derivative instruments 287,570 35,000 Change in fair value of derivative liabilities 328,849 819 Settlements (459,778 ) (61,076 ) Balance at end of period $ 357,901 $ 74,445 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Apr. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following is a summary of the common stock options outstanding, granted, forfeited or expired and exercised under the Plan: Weighted Average Exercise Options Price Outstanding October 31, 2013 30,000 $ 0.90 Granted Forfeited/Expired Exercised Outstanding October 31, 2014 30,000 $ 0.90 Granted Forfeited/Expired Exercised Outstanding April 30, 2015 30,000 $ 0.90 |
Warrants (Tables)
Warrants (Tables) | 6 Months Ended |
Apr. 30, 2015 | |
Equity [Abstract] | |
Schedule of Warrants Outstanding | Outstanding warrants are as follows: April 30, 2015 October 31, 2014 Issued to Flow Capital Advisors Inc. on settlement of lawsuit in August 2011, entitling the holder to purchase 1 common share in the Company at an exercise price of $0.30 per common share up to and including August 23, 2016 250,000 250,000 Issued to Flow Capital Advisors Inc. on settlement of lawsuit August 2011, entitling the holder to purchase 1 common share in the Company at an exercise price of $0.50 per common share up to and including August 23, 2016 250,000 250,000 Issued to Flow Capital Advisors Inc. on settlement of lawsuit August 2011, entitling the holder to purchase 1 common share in the Company at an exercise price of $0.75 per common share up to and including August 23, 2016 500,000 500,000 Issued to Flow Capital Advisors Inc. on settlement of lawsuit August 2011, entitling the holder to purchase 1 common share in the Company at an exercise price of $1.00 per common share up to and including August 23, 2016 500,000 500,000 Issued to Flow Capital Advisors Inc. on settlement of lawsuit August 2011, entitling the holder to purchase 1 common share in the Company at an exercise price of $0.75 per common share up to and including August 23, 2016 500,000 500,000 Issued to debenture holders February 2013 entitling the holders to purchase 1 common share in the Company at an exercise price of $0.25 per common share up to and including February 27, 2016 600,000 600,000 Issued to debenture holders May 2013 entitling the holders to purchase 1 common share in the Company at an exercise price of $0.15 per common share up to and including June 3, 2016 750,000 750,000 Issued to debenture holders June 2013 entitling the holders to purchase 1 common share in the Company at an exercise price of $0.15 per common share up to and including June 3, 2016 232,500 232,500 Issued to consultants on August 5, 2013 entitling the holders to purchase 1 common share in the Company at an exercise price of $0.15 per common share up to and including August 4, 2023 2,500,000 2,500,000 Issued to consultants on August 5, 2013 entitling the holders to purchase 1 common share in the Company at an exercise price of $0.10 per common share up to and including August 4, 2023 1,500,000 1,500,000 Issued to consultant on September 3, 2013 entitling the holder to purchase 1 common share in the Company at an exercise price of $0.50 per common share up to and including July 31, 2018 500,000 500,000 Issued to shareholder on October 29, 2013 entitling the holder to purchase 1 common share in the Company at an exercise price of $0.15 per common share up to and including October 29, 2016 250,000 250,000 Issued to shareholder on November 7, 2013 entitling the holder to purchase 1 common share in the Company at an exercise price of $0.15 per common share up to and including November 7, 2016 125,000 - Total Warrants outstanding 8,457,500 8,332,500 |
Issuance of Common Stock (Table
Issuance of Common Stock (Tables) | 6 Months Ended |
Apr. 30, 2015 | |
Equity [Abstract] | |
Schedule of Common Stock Issue | During the six months ended April 30, 2015, the Company issued the following common shares: Issued for services rendered 250,000 Issued to shareholder on conversion of shareholders loan at $0.11 per share 227,273 Issued on conversion of Notes Payable 19,359,930 19,837,203 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Apr. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Weighted Average Shares Outstanding for Calculating Basic and Diluted Earnings Per Share | The following table sets forth the computation of weighted-average shares outstanding for calculating basic and diluted earnings (loss) per share (EPS): Three Months Ended April 30, Six Months Ended April 30, 2015 2014 2015 2014 Weighted-average shares - basic 87,941,755 60,447,704 80,941,470 59,915,908 Effect of dilutive securities 14,195,552 Weighted-average shares - diluted 102,137,307 60,447,704 80,941,470 59,915,908 |
Supplemental Disclosure of Ca29
Supplemental Disclosure of Cash Flow Information (Tables) | 6 Months Ended |
Apr. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow Supplemental Disclosures | For the Six Months Ended April 30, 2015 2014 Cash paid during the year for: Interest $ 11,336 $ 7,834 Income taxes $ $ Non-cash financing activities Conversion of Notes Payable $ 208,106 $ 58,001 Settlement of derivative liability $ 459,778 $ 61,076 Issuance of shares on settlement of suit $ $ 189,000 Common share issued for services $ 35,000 $ Common shares issued for shareholders loan $ 31,052 $ |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - USD ($) | Apr. 30, 2015 | Oct. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ 48,575,453 | $ 47,637,746 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | Oct. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax benefits | |||
Canadian Taxation Authorities[Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry forwards | $ 7,502,000 | ||
Operating loss carry forwards expiration period | from 2015 through 2033 | ||
Research and development tax credit received refund amount | $ 81,460 | ||
U S [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry forwards | $ 45,374,000 | ||
Operating loss carry forwards expiration period | from 2020 through 2033 | ||
Federal taxable income returns for years | 2008 through 2014 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | Mar. 25, 2015 | Mar. 05, 2015 | Dec. 15, 2014 | Nov. 20, 2014 | Nov. 12, 2014 | May. 23, 2014 | Nov. 19, 2012 | Apr. 30, 2015 | Apr. 30, 2014 |
NotesPayableLineItems [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 350,000 | ||||||||
Increments in line of credit facility | 50,000 | ||||||||
Line of credit facility original issue discount | $ 50,000 | ||||||||
Line of credit facility, interest rate during period | 5.00% | ||||||||
Lenders right relating to notes payable description | The Lender has the right at any time to convert all or part of the outstanding principal and accrued interest (and any other fees) into shares of fully paid and non-assessable shares of common stock of the Company at a price equal to the lesser of $0.23 and 60% of the lowest trade price in the 25 trading days previous to the conversion. | ||||||||
Conversion price per share | $ 0.23 | $ 0.012 | |||||||
Percentage of lowest trading price of debt instrument on before conversion | 60.00% | ||||||||
Line of credit facility common stock outstanding percentage | 4.99% | ||||||||
Debt in exchange to purchase common stock shares | $ 208,106 | $ 58,001 | |||||||
LG Capital Funding, LLC and Adar Bays, LLC [Member] | |||||||||
NotesPayableLineItems [Line Items] | |||||||||
Proceeds from issuance of promissory note | $ 52,500 | ||||||||
Percentage of promissory notes | 8.00% | ||||||||
Debt instrument maturity Date | May 23, 2015 | ||||||||
LG Capital Funding [Member] | |||||||||
NotesPayableLineItems [Line Items] | |||||||||
Percentage of debt converted into stock discount | 42.00% | ||||||||
Debt penalties for issued date below 60 days | 130.00% | ||||||||
Debt penalties for issued date After 60 days | 140.00% | ||||||||
Chicago Ventures [Member] | |||||||||
NotesPayableLineItems [Line Items] | |||||||||
Proceeds from issuance of promissory note | $ 50,000 | ||||||||
Percentage of promissory notes | 10.00% | ||||||||
Percentage of debt converted into stock discount | 40.00% | ||||||||
Debt closing price term | 15 days | ||||||||
IBC Funds, LLC [Member] | |||||||||
NotesPayableLineItems [Line Items] | |||||||||
Percentage of debt converted into stock discount | 40.00% | ||||||||
Debt closing price term | 15 days | ||||||||
Debt in exchange to purchase common stock shares | $ 78,026 | ||||||||
LG Capital Funding, LLC [Member] | |||||||||
NotesPayableLineItems [Line Items] | |||||||||
Proceeds from issuance of promissory note | $ 52,500 | ||||||||
Percentage of promissory notes | 8.00% | ||||||||
Percentage of debt converted into stock discount | 42.00% | ||||||||
Debt closing price term | 15 days | ||||||||
Debt instrument maturity year | 1 year | ||||||||
Activus Private Equity Fund, LLC [Member] | |||||||||
NotesPayableLineItems [Line Items] | |||||||||
Proceeds from issuance of promissory note | $ 55,250 | ||||||||
Percentage of promissory notes | 8.00% | ||||||||
Debt instrument maturity Date | Nov. 26, 2015 | ||||||||
Percentage of debt converted into stock discount | 40.00% | ||||||||
Debt closing price term | 10 days | ||||||||
Adar Bays [Member] | |||||||||
NotesPayableLineItems [Line Items] | |||||||||
Proceeds from issuance of promissory note | $ 52,500 | ||||||||
Percentage of promissory notes | 8.00% | ||||||||
Percentage of debt converted into stock discount | 42.00% | ||||||||
Debt closing price term | 15 days | ||||||||
Debt instrument maturity year | 1 year |
Notes Payable - Summary of Note
Notes Payable - Summary of Notes Payable (Details) - USD ($) | Apr. 30, 2015 | Oct. 31, 2014 |
Short-term Debt [Line Items] | ||
Debt Discount - value attributable to conversion feature attached to Notes, net of accumulated amortization of $105,023 and $71,863 | $ (171,508) | $ (120,666) |
Total | 105,023 | 71,863 |
Less: Current portion | 105,023 | $ 71,863 |
Total Long-term portion | $ 0 | |
Convertible Note Payable, Due February 20, 2015 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible Note Payable | $ 12,529 | |
Convertible Notes Payable, Due May 23, 2015 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible Note Payable | 105,000 | |
Convertible Note Payable, Due June 23, 2015 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible Note Payable | $ 25,360 | 40,000 |
Convertible Note Payable, Due October 22, 2015 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible Note Payable | 35,000 | $ 35,000 |
Convertible Note Payable, due November 12, 2015 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible Note Payable | 50,000 | |
Convertible IBC Funds, LLC Payable, due November 21, 2015 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible Note Payable | 16,421 | |
Convertible Note Payable, due December 15, 2015 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible Note Payable | 52,500 | |
Convertible Note Payable, due November 26, 2015 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible Note Payable | 55,250 | |
Convertible Note Payable, due March 25, 2016 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible Note Payable | $ 42,500 |
Notes Payable - Summary of No34
Notes Payable - Summary of Notes Payable (Details) (Parenthetical) - USD ($) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Oct. 31, 2014 | |
Net of accumulated amortization | $ 105,023 | $ 71,863 |
Convertible Note Payable, Due February 20, 2015 [Member] | ||
Convertible Note Payable, maturity date | Feb. 20, 2015 | Feb. 20, 2015 |
Convertible Notes Payable, Due May 23, 2015 [Member] | ||
Convertible Note Payable, maturity date | May 23, 2015 | May 23, 2015 |
Convertible Note Payable, Due June 23, 2015 [Member] | ||
Convertible Note Payable, maturity date | Jun. 23, 2015 | Jun. 23, 2015 |
Convertible Note Payable, Due October 22, 2015 [Member] | ||
Convertible Note Payable, maturity date | Oct. 22, 2015 | Oct. 22, 2015 |
Convertible Note Payable, due November 12, 2015 [Member] | ||
Convertible Note Payable, maturity date | Nov. 12, 2015 | Nov. 12, 2015 |
Convertible IBC Funds, LLC Payable, due November 21, 2015 [Member] | ||
Convertible Note Payable, maturity date | Nov. 21, 2015 | Nov. 21, 2015 |
Convertible Note Payable, due December 15, 2015 [Member] | ||
Convertible Note Payable, maturity date | Dec. 15, 2015 | Dec. 15, 2015 |
Convertible Note Payable, due November 26, 2015 [Member] | ||
Convertible Note Payable, maturity date | Nov. 26, 2015 | Nov. 26, 2015 |
Convertible Note Payable, due March 25, 2016 [Member] | ||
Convertible Note Payable, maturity date | Mar. 25, 2016 | Mar. 25, 2016 |
Derivative Liabilities (Details
Derivative Liabilities (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2015 | Nov. 19, 2012 | |
DerivativeLiabilitiesLineItems [Line Items] | |||
Derivative liabilities | $ 357,901 | $ 357,901 | |
Gain on change in fair value of derivative liability | $ 323,499 | ||
Loss on change in fair value of derivative liability | $ 328,849 | ||
Conversion price per share | $ 0.012 | $ 0.012 | $ 0.23 |
Fair value assumptions, risk free interest rate | 0.11% | ||
Fair value assumptions, expected term | 1 year | ||
Fair value assumptions, expected dividend rate | 0.00% | ||
Minimum [Member] | |||
DerivativeLiabilitiesLineItems [Line Items] | |||
Fair value assumptions, expected volatility rate | 245.00% | ||
Maximum [Member] | |||
DerivativeLiabilitiesLineItems [Line Items] | |||
Fair value assumptions, expected volatility rate | 342.00% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Liabilities Measured on Recurring Basis (Details) - USD ($) | 6 Months Ended | |
Apr. 30, 2015 | Oct. 31, 2014 | |
Derivative liability on notes payable | $ 357,901 | $ 201,260 |
Total Increase (Reduction) in Fair Value Recorded | $ 328,849 | |
Quoted Prices In Active Markets For Identical Assets Or Liabilities (Level 1) [Member] | ||
Derivative liability on notes payable | ||
Significant Other Observable Inputs (Level 2) [Member] | ||
Derivative liability on notes payable | ||
Significant Unobservable Inputs (Level 3) [Member] | ||
Derivative liability on notes payable | $ 357,901 |
Fair Value Measurements - Sch37
Fair Value Measurements - Schedule of Changes in Fair Value of Financial Liabilities or Derivative Liabilities (Details) - USD ($) | 6 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Fair Value Disclosures [Abstract] | ||
Balance at beginning of period | $ 201,260 | $ 99,702 |
Additions to derivative instruments | 287,570 | 35,000 |
Change in fair value of derivative liabilities | 328,849 | 819 |
Settlements | (459,778) | (61,076) |
Balance at end of period | $ 357,901 | $ 74,445 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 6 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based employee compensation related to stock options | $ 0 | $ 0 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Oct. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options, Outstanding beginning balance | 30,000 | 30,000 |
Options, Granted | ||
Options, Forfeited/Expired | ||
Options, Exercised | ||
Options, Outstanding ending balance | 30,000 | 30,000 |
Weighted Average Exercise price, Beginning balance | $ 0.90 | $ 0.90 |
Weighted Average Exercise price, Granted | ||
Weighted Average Exercise price, Forfeited/Expired | ||
Weighted Average Exercise price, Exercised | ||
Weighted Average Exercise price, Ending balance | $ 0.90 | $ 0.90 |
Warrants - Schedule of Warrants
Warrants - Schedule of Warrants Outstanding (Details) - shares | Apr. 30, 2015 | Oct. 31, 2014 |
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 8,457,500 | 8,332,500 |
Issued To Flow Capital Advisors Inc. On Settlement Of Lawsuit In August 2011, Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $0.30 Per Common Share Up To And Including August 23, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 250,000 | 250,000 |
Issued To Flow Capital Advisors Inc. On Settlement Of Lawsuit August 2011, Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $0.50 Per Common Share Up To And Including August 23, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 250,000 | 250,000 |
Issued To Flow Capital Advisors Inc. On Settlement Of Lawsuit August 2011, Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $0.75 Per Common Share Up To And Including August 23, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 500,000 | 500,000 |
Issued To Flow Capital Advisors Inc. On Settlement Of Lawsuit August 2011, Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $1.00 Per Common Share Up To And Including August 23, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 500,000 | 500,000 |
Issued To Flow Capital Advisors Inc. On Settlement Of Lawsuit August 2011, Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $0.75 Per Common Share Up To And Including August 23, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 500,000 | 500,000 |
Issued To Debenture Holders February 2013 Entitling The Holders To Purchase 1 Common Share In The Company At An Exercise Price Of $0.25 Per Common Share Up To And Including February 27, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 600,000 | 600,000 |
Issued To Debenture Holders May 2013 Entitling The Holders To Purchase 1 Common Share In The Company At An Exercise Price Of $0.15 Per Common Share Up To And Including June 3, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 750,000 | 750,000 |
Issued To Debenture Holders June 2013 Entitling The Holders To Purchase 1 Common Share In The Company At An Exercise Price Of $0.15 Per Common Share Up To And Including June 3, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 232,500 | 232,500 |
Issued To Consultants In August 5, 2013 Entitling The Holders To Purchase 1 Common Share In The Company At An Exercise Price Of $0.15 Per Common Share Up To And Including August 4, 2023 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 2,500,000 | 2,500,000 |
Issued To Consultants In August 5, 2013 Entitling The Holders To Purchase 1 Common Share In The Company At An Exercise Price Of $0.10 Per Common Share Up To And Including August 4, 2023 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 1,500,000 | 1,500,000 |
Issued To Consultant In September 3, 2013 Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $0.50 Per Common Share Up To And Including July 31, 2018 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 500,000 | 500,000 |
Issued To Shareholder October 29, 2013 Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $0.15 Per Common Share Up To And Including October 29, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 250,000 | 250,000 |
Issued To Shareholder November 7, 2013 Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $0.15 Per Common Share Up To And Including November 7, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 125,000 |
Warrants - Schedule of Warran41
Warrants - Schedule of Warrants Outstanding (Details) (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Oct. 31, 2014 | |
Issued To Flow Capital Advisors Inc. On Settlement Of Lawsuit In August 2011, Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $0.30 Per Common Share Up To And Including August 23, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant, exchange ratio to common stock | 1 | 1 |
Warrants, exercise price | $ 0.30 | $ 0.30 |
Warrant, last exercisable date | Aug. 23, 2016 | Aug. 23, 2016 |
Issued To Flow Capital Advisors Inc. On Settlement Of Lawsuit August 2011, Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $0.50 Per Common Share Up To And Including August 23, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant, exchange ratio to common stock | 1 | 1 |
Warrants, exercise price | $ 0.50 | $ 0.50 |
Warrant, last exercisable date | Aug. 23, 2016 | Aug. 23, 2016 |
Issued To Flow Capital Advisors Inc. On Settlement Of Lawsuit August 2011, Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $0.75 Per Common Share Up To And Including August 23, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant, exchange ratio to common stock | 1 | 1 |
Warrants, exercise price | $ 0.75 | $ 0.75 |
Warrant, last exercisable date | Aug. 23, 2016 | Aug. 23, 2016 |
Issued To Flow Capital Advisors Inc. On Settlement Of Lawsuit August 2011, Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $1.00 Per Common Share Up To And Including August 23, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant, exchange ratio to common stock | 1 | 1 |
Warrants, exercise price | $ 1 | $ 1 |
Warrant, last exercisable date | Aug. 23, 2016 | Aug. 23, 2016 |
Issued To Flow Capital Advisors Inc. On Settlement Of Lawsuit August 2011, Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $0.75 Per Common Share Up To And Including August 23, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant, exchange ratio to common stock | 1 | 1 |
Warrants, exercise price | $ 0.75 | $ 0.75 |
Warrant, last exercisable date | Aug. 23, 2016 | Aug. 23, 2016 |
Issued To Debenture Holders February 2013 Entitling The Holders To Purchase 1 Common Share In The Company At An Exercise Price Of $0.25 Per Common Share Up To And Including February 27, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant, exchange ratio to common stock | 1 | 1 |
Warrants, exercise price | $ 0.25 | $ 0.25 |
Warrant, last exercisable date | Feb. 27, 2016 | Feb. 27, 2016 |
Issued To Debenture Holders May 2013 Entitling The Holders To Purchase 1 Common Share In The Company At An Exercise Price Of $0.15 Per Common Share Up To And Including June 3, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant, exchange ratio to common stock | 1 | 1 |
Warrants, exercise price | $ 0.15 | $ 0.15 |
Warrant, last exercisable date | Jun. 3, 2016 | Jun. 3, 2016 |
Issued To Debenture Holders June 2013 Entitling The Holders To Purchase 1 Common Share In The Company At An Exercise Price Of $0.15 Per Common Share Up To And Including June 3, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant, exchange ratio to common stock | 1 | 1 |
Warrants, exercise price | $ 0.15 | $ 0.15 |
Warrant, last exercisable date | Jun. 3, 2016 | Jun. 3, 2016 |
Issued To Consultants In August 5, 2013 Entitling The Holders To Purchase 1 Common Share In The Company At An Exercise Price Of $0.15 Per Common Share Up To And Including August 4, 2023 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant, exchange ratio to common stock | 1 | 1 |
Warrants, exercise price | $ 0.15 | $ 0.15 |
Warrant, last exercisable date | Aug. 4, 2023 | Aug. 4, 2023 |
Issued To Consultants In August 5, 2013 Entitling The Holders To Purchase 1 Common Share In The Company At An Exercise Price Of $0.10 Per Common Share Up To And Including August 4, 2023 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant, exchange ratio to common stock | 1 | 1 |
Warrants, exercise price | $ 0.10 | $ 0.10 |
Warrant, last exercisable date | Aug. 4, 2023 | Aug. 4, 2023 |
Issued To Consultant In September 3, 2013 Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $0.50 Per Common Share Up To And Including July 31, 2018 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant, exchange ratio to common stock | 1 | 1 |
Warrants, exercise price | $ 0.50 | $ 0.50 |
Warrant, last exercisable date | Jul. 31, 2018 | Jul. 31, 2018 |
Issued To Shareholder October 29, 2013 Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $0.15 Per Common Share Up To And Including October 29, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant, exchange ratio to common stock | 1 | 1 |
Warrants, exercise price | $ 0.15 | $ 0.15 |
Warrant, last exercisable date | Oct. 29, 2016 | Oct. 29, 2016 |
Issued To Shareholder November 7, 2013 Entitling The Holder To Purchase 1 Common Share In The Company At An Exercise Price Of $0.15 Per Common Share Up To And Including November 7, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant, exchange ratio to common stock | 1 | 1 |
Warrants, exercise price | $ 0.15 | $ 0.15 |
Issued to shareholder November 7, 2013, entitling the holder to purchase 1 common shares in the Company at an exercise price of $0.15 per common share up to and including November 7, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant, last exercisable date | Nov. 7, 2016 | Nov. 7, 2016 |
Issuance of Common Stock - Sche
Issuance of Common Stock - Schedule of Common Stock Issue (Details) - Common Stock [Member] | 6 Months Ended |
Apr. 30, 2015shares | |
Issued for services rendered | 250,000 |
Issued to shareholder on conversion of shareholders loan at $0.11 per share | 227,273 |
Issued on conversion of notes payable | 19,359,930 |
Number of shares issued during period | 19,837,203 |
Issuance of Common Stock - Sc43
Issuance of Common Stock - Schedule of Common Stock Issue (Details) (Parenthetical) | 6 Months Ended |
Apr. 30, 2015$ / shares | |
Common Stock [Member] | |
Equity price per share | $ 0.11 |
Net Loss Per Share (Details Nar
Net Loss Per Share (Details Narrative) - shares | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Incremental shares excluded from computation of diluted earning per share | 8,487,500 | 12,918,436 | 31,543,416 | 12,918,436 |
Net Loss per Share - Computatio
Net Loss per Share - Computation of Weighted Average Shares Outstanding for Calculating Basic and Diluted Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Weighted-average shares - basic | 87,941,755 | 60,447,704 | 80,941,470 | 59,915,908 |
Effect of dilutive securities | 14,195,552 | |||
Weighted-average shares - diluted | 102,137,307 | 60,447,704 | 80,941,470 | 59,915,908 |
Supplemental Disclosure of Ca46
Supplemental Disclosure of Cash Flow Information - Cash Flow Supplemental Disclosures (Details) - USD ($) | 6 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid during the period for: Interest | $ 11,336 | $ 7,834 |
Cash paid during the period for: Income taxes | ||
Conversion of Notes Payable | $ 208,106 | $ 58,001 |
Settlement of derivative liability | $ 459,778 | 61,076 |
Issuance of shares on settlement of suit | $ 189,000 | |
Common share issued for services | $ 35,000 | |
Common shares issued for shareholder's loan | $ 31,052 |
Commitments and Contingent Li47
Commitments and Contingent Liabilities (Details Narrative) - Jun. 03, 2015 - JMJ Financial [Member] - USD ($) | Total |
Litigation settlement amount | $ 77,235 |
Number of common shares failed to convert | 1,800,000 |
Litigation settlement, monthly installments | $ 6,436 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Jun. 03, 2015 - Subsequent Event [Member] - Investor [Member] - USD ($) | Total |
Number of shares issued for exchange, shares | 1,116,667 |
Shares issued for exchange, value | $ 35,000 |