Crossroads Systems 10-Q 14 Sep 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jul. 31, 2015	Sep. 14, 2015
Document Information [Line Items]
Entity Registrant Name	CROSSROADS SYSTEMS INC
Entity Central Index Key	1,093,207
Current Fiscal Year End Date	--10-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	CRDS
Entity Common Stock, Shares Outstanding		23,471,576
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 31, 2015
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 31, 2015	Oct. 31, 2014
Current assets:
Cash and cash equivalents	$ 7,041	$ 4,676
Restricted cash	270	270
Total cash, cash equivalents and restricted cash	7,311	4,946
Accounts receivable, net of allowance for doubtful accounts of $3 and $151, respectively	1,896	2,252
Inventory	480	357
Prepaid expenses and other current assets	445	798
Total current assets	10,132	8,353
Property and equipment, net	553	440
Other assets	62	63
Total assets	10,747	8,856
Current liabilities:
Accounts payable	2,777	1,443
Accrued expenses	1,601	1,397
Deferred revenue, current portion	953	1,032
Current portion of long term debt, net of debt discount	2,650	3,160
Total current liabilities	7,981	7,032
Long term debt, net of current portion and debt discount	0	1,651
Long term portion of deferred revenue, net of current portion	$ 593	$ 423
Commitments and contingencies (See Note 7)
Total liabilities	$ 8,574	$ 9,106
Stockholders' equity (deficit):
Convertible preferred stock, $0.001 par value, 25,000,000 shares authorized, 3,041,257 and 3,318,197 shares issued and outstanding, respectively	3	3
Common stock, $0.001 par value, 75,000,000 shares authorized, 23,418,989 and 15,831,810 shares issued and outstanding, respectively	23	16
Additional paid-in capital	238,027	226,208
Accumulated other comprehensive loss	(86)	(60)
Accumulated deficit	(235,794)	(226,417)
Total stockholders' equity (deficit)	2,173	(250)
Total liabilities and stockholders' equity	$ 10,747	$ 8,856

CONSOLIDATED BALANCE SHEETS _Pa

CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) $ in Thousands	Jul. 31, 2015	Oct. 31, 2014
Allowance for Doubtful Accounts (in dollars)	$ 3	$ 151
Convertible Preferred Stock, Par Value (in dollars per share)	$ 0.001	$ 0.001
Convertible Preferred Stock, Shares Authorized	25,000,000	25,000,000
Convertible Preferred Stock, Shares Issued	3,041,257	3,318,197
Convertible Preferred Stock, Shares Outstanding	3,041,257	3,318,197
Common Stock, Par Value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized	75,000,000	75,000,000
Common Stock, Shares Issued	23,418,989	15,831,810
Common Stock, Shares Outstanding	23,418,989	15,831,810

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Revenue:
Product	$ 516	$ 600	$ 1,962	$ 2,925
IP license, royalty and other	1,628	1,487	4,074	5,581
Total revenue	2,144	2,087	6,036	8,506
Cost of revenue:
Product	150	138	652	578
IP license, royalty and other	417	296	934	934
Total cost of revenue	567	434	1,586	1,512
Gross profit	1,577	1,653	4,450	6,994
Operating expenses:
Sales and marketing	715	872	2,373	2,842
Research and development	1,091	1,351	3,641	4,399
General and administrative	2,826	1,146	6,706	3,664
Total operating expenses	4,632	3,369	12,720	10,905
Loss from operations	(3,055)	(1,716)	(8,270)	(3,911)
Gain on settlement	0	0	0	1,050
Loss before other expenses	(3,055)	(1,716)	(8,270)	(2,861)
Other expense:
Interest expense	(89)	(184)	(316)	(662)
Amortization of debt discount and issuance costs	(112)	(301)	(512)	(967)
Change in value of derivative liability	0	0	0	(2,765)
Other income	(1)	0	19	(17)
Net loss	(3,257)	(2,201)	(9,079)	(7,272)
Dividends attributable to preferred stock	(43)	(152)	(228)	(400)
Net loss available to common stockholders, basic and diluted	$ (3,300)	$ (2,353)	$ (9,307)	$ (7,672)
Net loss per share available to common stockholders, basic and diluted (in dollars per share)	$ (0.17)	$ (0.16)	$ (0.51)	$ (0.56)
Weighted average number of common shares outstanding, basic and diluted (in shares)	19,428,070	15,165,629	18,206,002	13,705,434

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Net loss	$ (3,257)	$ (2,201)	$ (9,079)	$ (7,272)
Other comprehensive income:
Foreign currency translation adjustments	(7)	(7)	(26)	(4)
Comprehensive loss	$ (3,264)	$ (2,208)	$ (9,105)	$ (7,276)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Cash flows from operating activities:
Net loss	$ (9,079)	$ (7,272)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	300	517
Loss on change in value of derivative liability	0	2,765
Amortization of debt discount	512	967
Gain on disposal of property and equipment	0	(15)
Stock-based compensation	743	1,312
Provision for doubtful accounts receivable	61	10
Changes in assets and liabilities:
Accounts receivable	260	286
Inventory	(123)	17
Prepaid expenses and other assets	209	96
Accounts payable	1,337	(252)
Accrued expenses	211	(950)
Deferred revenue	154	37
Net cash used in operating activities	(5,415)	(2,482)
Cash flows from investing activities:
Purchase of property and equipment	(180)	(71)
Proceeds from sale of property and equipment	0	18
Net cash used in investing activities	(180)	(53)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of expenses	10,549	5,461
Repayment of debt	(2,534)	(3,633)
Net cash provided by financing activities	8,015	1,828
Effect of foreign exchange rate on cash and cash equivalents	(55)	(8)
Change in cash and cash equivalents	2,365	(715)
Cash and cash equivalents, beginning of period	4,946	7,795
Cash, cash equivalents, and restricted cash end of period	7,311	7,080
Supplemental disclosure of cash flow information:
Cash paid for interest	309	676
Cash paid for income taxes	1	2
Supplemental disclosure of non cash financing activities:
Conversion of preferred stock to common stock	418	729
Common stock dividends issued to preferred shareholders	298	612
Warrants issued with private placement stock	1,893	0
Conversion of derivative liability to equity	0	3,537
Lease incentive received, non-cash addition to fixed assets	$ 243	$ 0

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	9 Months Ended
	Jul. 31, 2015
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Basis of Accounting [Text Block]	1. ORGANIZATION AND BASIS OF PRESENTATION The accompanying consolidated financial statements include the accounts of Crossroads Systems, Inc. and its wholly-owned subsidiaries (“Crossroads” or the “Company”). Crossroads, a Delaware corporation, is a global provider of data storage solutions. Founded in 1996 and based in Austin, Texas, Crossroads develops technology and products that address specific IT challenges, such as cost-effectively storing and protecting business-critical data. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has accumulated significant losses as it has been developing its current and next generation products. The Company believes that cash flow from operations, customer reimbursed expenses, debt, and proceeds from the sale of common and preferred stock will be sufficient to fund the anticipated operations for the next 12 months. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern for a reasonable period of time. The investment in KIP CR P1 LP (which we refer to as the “partnership” (see Note 6)), of which the Company is a limited partner and of which an affiliate of Fortress (as defined in Note 6) is the general partner, is accounted for using the equity method. The current investment balance is nominal at July 31, 2015. The preparation of the consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. The Company, in accordance with Financial Accounting Standards Boards (“FASB”) Accounting Standards Codification (“ASC”) 815-40-25 and ASC 815-10-15 Derivatives and Hedging and ASC 480-10-25 Liabilities-Distinguishing Liabilities from Equity, accounted for the Series F warrants (as defined in Note 8), as liabilities at their fair value during periods where the full ratchet anti-dilution provision was in effect. The Series F warrants full ratchet anti-dilution provision was eliminated on January 2014, and the fair value of the warrants were reclassified to shareholders’ equity. The Company periodically enters into contracts with certain customers to significantly modify or customize products. In accounting for such arrangements, the Company first looks to the guidance in FASB ASC Subtopic 985-605, Software - Revenue Recognition Revenue Recognition – Multiple-Element Arrangements, Revenue Recognition – Construction-Type and Production-Type Contracts, Revenue Recognition – Products, Revenue Recognition – Services, Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by giving effect to all dilutive potential common shares that were outstanding during the period. Basic earnings per share excludes the dilutive effect of common stock equivalents such as stock options and warrants, while earnings per share, assuming dilution, includes such dilutive effects. Future weighted-average shares outstanding calculations will be impacted by the following factors, among others: (i) the ongoing issuance of common stock associated with stock option and warrant exercises; (ii) any fluctuations in the Company’s stock price, which could cause changes in the number of common stock equivalents included in the earnings per share, assuming dilution computation; and (iii) the issuance of common stock to effect business combinations should the Company enter into such transactions. The Company has excluded all outstanding common stock equivalents from the calculation of diluted net loss per share because all such common stock equivalents are antidilutive for all periods presented. The total number of common stock equivalents excluded from the diluted net loss per common share calculation was 13,449,135 12,266,695 7,085,426 3,041,257 3,322,452 Net loss available to common stockholders is calculated by deducting from loss, preferred dividends paid and accrued of $ 43,000 0.2 During November 2014, the FASB issued ASU 2014-16 Derivatives and Hedging (Topic 815) Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (“ASU 2014-16”). ASU 2014-16 does not change the current criteria in GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. That is, an entity will continue to evaluate whether the economic characteristics and risks of the embedded derivative feature are clearly and closely related to those of the host contract, among other relevant criteria. The amendments clarify how current GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features—including the embedded derivative feature being evaluated for bifurcation—in evaluating the nature of the host contract. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. These changes are not expected to have a material impact on the consolidated financial statements. This could impact the accounting for future hybrid financial instruments issued by the Company. The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements. The Company does not believe that there are any new accounting pronouncements that have been issued that might have a material impact on its consolidated financial position or results of operations.

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	9 Months Ended
	Jul. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	2. FAIR VALUE MEASUREMENT Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measurements, a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is applied as follows: Level 1 – Level 2 – Level 3 As of July 31, 2015, the fair value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximates book value due to the short maturity of these instruments. Based upon borrowing rates currently available to the Company for loans with similar terms, the carrying value of its debt obligations approximates fair value. As of July 31, 2015 and October 31, 2014, the Company held no investments.

INVENTORY

INVENTORY	9 Months Ended
	Jul. 31, 2015
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	3. INVENTORY Inventory, net consists of the following (in thousands): July 31, October 31, 2015 2014 Raw materials $ 229 $ 186 Finished goods 251 171 $ 480 $ 357

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Jul. 31, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	4. PROPERTY AND EQUIPMENT July 31, October 31, 2015 2014 Life (years) Equipment 1-3 $ 16,691 $ 16,635 Furniture and fixtures 5 633 634 Leasehold improvements 5 934 576 18,258 17,845 Less: Accumulated depreciation (17,705) (17,405) $ 553 $ 440 Depreciation expense was approximately $300,000 and $517,000 for the nine months ended July 31, 2015 and 2014, respectively.

ACCRUED EXPENSES AND DEFERRED R

ACCRUED EXPENSES AND DEFERRED REVENUE	9 Months Ended
	Jul. 31, 2015
Payables and Accruals [Abstract]
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]	5. ACCRUED EXPENSES AND DEFERRED REVENUE Accrued expenses consist of the following (in thousands): July 31, October 31, 2015 2014 Professional services $ 799 $ 394 Payroll related 404 846 Deferred rent 191 - Warranty reserve 17 48 Other 190 109 $ 1,601 $ 1,397 Included in payroll related accrued expenses as of October 31, 2014 was $ 451,000 301,000 117,577 Warranty reserve activity, included in accrued expenses, during the year ended October 31, 2014 and nine months ended July 31, 2015 was as follows (in thousands): Balance at Charged to Balance at Beginning Costs and Reserve End of of Period Expenses Usage Period Year ended October 31, 2014 Warranty reserve $ 41 $ 31 $ (24) $ 48 Nine months ended July 31, 2015 Warranty reserve $ 48 $ 36 $ (67) $ 17 Deferred revenue, current portion, consists of the following (in thousands): July 31, October 31, 2015 2014 Product $ 151 $ - Services 802 1,032 $ 953 $ 1,032

LINE OF CREDIT AND LONG TERM LI

LINE OF CREDIT AND LONG TERM LIABILITIES	9 Months Ended
	Jul. 31, 2015
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	6. LINE OF CREDIT AND LONG TERM LIABILITIES Effective July 22, 2013, the Company entered into a credit agreement (the “Credit Agreement”) with Fortress Credit Co. LLC, an affiliate of Fortress Investment Group LLC (collectively referred to as “Fortress”) that provided for aggregate term loan commitments of up to $ 10.0 5.0 July 22, 2016 5.0 10.0 10 Debt issuance costs associated with the Fortress Term Loans totaling $ 1.7 16.39 10 In connection with the Credit Agreement, the Company issued warrants to Fortress to purchase 1,454,545 2.0625 In addition, the Company also transferred substantially all of its patents, other than its ’972 patent family, to a limited partnership KIP CR P1 LP of which the Company is a limited partner and of which an affiliate of Fortress is the general partner. The partnership now controls 132 pending or granted non-’972 patents. There was no licensing activity associated with these patents. The general partner cannot be removed without the consent of Fortress. The Company accounts for the investment in the partnership on a consolidated basis using the equity method of accounting. In conjunction with the Credit Agreement, the Company agreed to certain financial covenants. The Company is required to maintain a minimum of $1.5 million of unrestricted cash at each month end and the Company is restricted from making certain cash distributions to equity security holders or from incurring additional indebtedness without prior written consent from Fortress. The Company has also agreed to certain reporting covenants and must supply monthly financial statements to Fortress within 30 days of the end of each month. The Fortress Warrants also previously contained what is commonly known as a “full-ratchet” anti-dilution provision, which provided that if the Company issued or were deemed to have issued additional shares of common stock without consideration or for a consideration per share less than the applicable exercise price of the Fortress Warrants, which is initially $2.0625 per share, then the exercise price of the Fortress Warrants will be reduced on a “full ratchet” basis, concurrently with the new issue, to the consideration per share the Company received for the new issue or deemed issue of the additional shares of common stock. In January 2014, the Company and the warrant holder agreed to amend the Fortress Warrant to remove this full-ratchet anti-dilution provision. On June 23, 2015, the Company entered into an amendment to the Credit Agreement (the “Agreement”), with CF DB EZ LLC, as assignee of Fortress Credit Co LLC, to amend certain payment terms of the Credit Agreement as it relates to Term Loan B to effectuate a 12-month deferral of approximately $ 1.5 10 As of July 31, 2015, the outstanding principal of the Credit Agreement was $ 2.8 July 31, October 31, 2015 2014 Principal balance Fortress Term Loans $ 2,795 $ 5,327 Unaccreted debt discount (145) (516) Net carrying value due Fortress 2,650 4,811 Less current portion (2,650) (3,160) Long term portion $ - $ 1,651

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Jul. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	7. COMMITMENTS AND CONTINGENCIES Leases The Company leases office space and equipment under long-term operating lease agreements that expire on various dates through March 31, 2020. Rental expense under these agreements was approximately $ 80,000 81,000 37,800 16,200 244,000 Legal Proceedings Legal Proceedings Intellectual Property Litigation The Company has a number of ongoing lawsuits and related proceedings as described below. In discussing these patent litigation proceedings, the following terms will be used: A “Markman hearing” in a patent infringement case is a pre-trial hearing in U.S. District Court, in which the court hears arguments regarding the meanings of key words used in a disputed patent claim. The outcome of a Markman hearing can play a significant role in whether findings of infringement and validity are made by the Court or by the jury at trial. The earliest the Company expects a ruling on any Markman hearing is approximately five months after the hearing. An “ Inter Partes inter partes Inter partes Crossroads v. Dot Hill The Company filed a lawsuit on September 11, 2013 against Dot Hill Systems Corp. ("Dot Hill") styled Crossroads Systems, Inc. v. Dot Hill Systems Corp., Civil Action No. 1:13-CV-800-SS alleging patent infringement of U.S. Patent No. 6,425,035 and breach of the Amended Settlement and License Agreement dated June 27, 2006 between Crossroads and Dot Hill. The action is pending. The Markman hearing was conducted October 6-7, 2014. Dot Hill moved to join two existing IPR proceedings previously filed against Crossroads by other defendants (one filed by NetApp/Oracle/Huawei and one filed by Cisco/Quantum, each as defined below) and to stay the pending litigation based on those IPR proceedings. On June 16, 2015, Judge Sparks entered the Markman Order construing the claims in a manner favorable to Crossroads and issued an order staying the case pending resolution of the IPR proceedings. If the patents are found partially or entirely invalid during the IPR proceedings, Crossroads might be adversely impacted in the litigation proceeding against Dot Hill, including potentially losing the ability to continue with its claims of infringement. Crossroads v. Oracle, Huawei, Cisco, NetApp and Quantum These related cases were filed on October 7, 2013, November 26, 2013, and February 18, 2014 in the United States District Court for the Western District of Texas alleging infringement by these parties of one or more patents in the ‘972 patent family. The asserted patents (6,425,035, 7,934,041, 7,987,311 and 7,051,147) were subject to a re-examination of the patents conducted in 2005-2006 by the United States Patent and Trademark Office (the “U.S. Patent Office”) or were issued after the re-examination. On May 7, 2014, these cases and the Dot Hill case were consolidated for purposes of discovery and a Markman hearing occurred on October 6 and 7, 2014. On June 16, 2015, Judge Sparks entered the Markman Order construing the claims in a manner favorable to Crossroads and entered an order staying these actions in light of various pending IPR proceedings. During the time Crossroads was pursuing the potential infringers of the ‘972 patent family, the Company put companies with potentially infringing products on notice and gave them the opportunity to license the Company’s proprietary technology. For example, NetApp was first given notice of potential infringement in 2004. Cisco was first given notice of potential infringement in 2002. Quantum has been on notice of its potential infringement since 2006. Oracle acquired several companies that were given notice of potential infringement at least as early as 2009 and Oracle itself has been on notice since then. Despite repeated attempts by Crossroads throughout the years to negotiate licenses to the ‘972 patent family, these companies refused and left Crossroads with no alternatives to litigation. Crossroads believes these companies (and companies they have acquired) have been illegally using Crossroads’ proprietary technology for years and that the potential compensatory damages could be in excess of $ 200 In response to the lawsuits brought by Crossroads, these parties have sought inter partes inter partes The Company filed a lawsuit on November 26, 2013 against Huawei Technologies Co. Ltd., Huawei Enterprise USA, Inc. & Huawei Technologies USA, Inc. (collectively, “Huawei”) alleging infringement of U.S. Patent Nos. 6,425,035, 7,051,147 and 7,934,041 (the case is styled Crossroads Systems, Inc. v. Huawei Technologies Co., Ltd. et al; Civil Action No. 1:13-cv-01025-SS (W.D. Tex., Austin Division)). On July 17, 2015, the parties settled the case. The Company filed a lawsuit on October 7, 2013 against Oracle Corporation (“Oracle”) alleging infringement of U.S. Patent Nos. 6,425,035, 7,051,147 and 7,934,041 (the case is styled Crossroads Systems, Inc. v. Oracle Corporation; Civil Action No. 1:13-cv-0895-SS (W.D. Tex., Austin Division)). The action is pending. The Markman hearing was conducted October 6-7, 2014 and on June 16, 2015, Judge Sparks entered the Markman Order construing the claims in a manner favorable to Crossroads. Oracle is a party to nine petitions for IPR filed at the U.S. Patent Office, which collectively challenge the validity of each of the patents Crossroads asserted in the lawsuit against Oracle. The U.S. Patent Office has granted four of those petitions and Crossroads filed its Patent Owner’s Responses laying out the arguments regarding the validity of the patents in those granted proceedings. The Oral Hearing is scheduled for October 30, 2015. The remaining five petitions were filed relatively recently and Crossroads has filed its Preliminary Owner’s Responses to those five petitions. Based on the IPRs, Oracle filed a motion to stay the litigation pending the IPR proceedings, which was granted by the court. If the patents are found partially or entirely invalid during the IPR proceedings, Crossroads might be adversely impacted in the litigation proceeding against Oracle, including potentially losing the ability to continue with its claims of infringement. The Company filed a lawsuit on February 18, 2014 against Cisco Systems, Inc. (“Cisco”) alleging infringement of U.S. Patent Nos. 6,425,035 and 7,934,041 (the case is styled Crossroads Systems, Inc. v. Cisco Systems, Inc.; Civil Action No. 1:14-cv-00148-SS (W.D. Tex., Austin Division)). The action is pending. The Markman hearing was conducted October 6-7, 2014 and on June 16, 2015, Judge Sparks entered the Markman Order construing the claims in a manner favorable to Crossroads. Cisco is a party to three petitions for IPR filed at the U.S. Patent Office, which collectively challenge the validity of each of the patents Crossroads asserted in the lawsuit against Cisco. The U.S. Patent Office has granted those petitions and Crossroads filed its Patent Owner’s Responses laying out the arguments regarding the validity of the patents in those granted proceedings. The Oral Hearing is scheduled for October 30, 2015. Based on the IPRs, Cisco filed a motion to stay the litigation pending the IPR proceedings, which was granted by the court. If the patents are found partially or entirely invalid during the IPR proceedings, Crossroads might be adversely impacted in the litigation proceeding against Cisco, including potentially losing the ability to continue with its claims of infringement. The Company filed a lawsuit on February 18, 2014 against NetApp, Inc. (“NetApp”) alleging infringement of U.S. Patent Nos. 6,425,035, 7,934,041, 7,987,311 and 7,051,147 (the case is styled Crossroads Systems, Inc. v. Net App, Inc.; Civil Action No. 1:14-cv-00149-SS (W.D. Tex., Austin Division)). The action is pending. The Markman hearing was conducted October 6-7, 2014 and on June 16, 2015, Judge Sparks entered the Markman Order construing the claims in a manner favorable to Crossroads. NetApp is a party to seven petitions for IPR filed at the U.S. Patent Office, which collectively challenge the validity of each of the patents Crossroads asserted in the lawsuit against NetApp. The U.S. Patent Office has granted three of those petitions and Crossroads filed its Patent Owner’s Responses laying out the arguments regarding the validity of the patents in those granted proceedings. The Oral Hearing is scheduled for October 30, 2015. The remaining four petitions were filed relatively recently and Crossroads has filed its Preliminary Owner’s Response to those four petitions. Based on the IPRs, NetApp filed a motion to stay the litigation pending the IPR proceedings, which was granted by the court. If the patents are found partially or entirely invalid during the IPR proceedings, Crossroads might be adversely impacted in the litigation proceeding against NetApp, including potentially losing the ability to continue with its claims of infringement. The Company filed a lawsuit on February 18, 2014 against Quantum Corporation (“Quantum”) alleging infringement of U.S. Patent Nos. 6,425,035 and 7,934,041 (the case is styled Crossroads Systems, Inc. v. Quantum Corporation; Civil Action No. 1:14-cv-00150-SS (W.D. Tex., Austin Division)). The action is pending. The Markman hearing was conducted October 6-7, 2014 and on June 16, 2015, Judge Sparks entered the Markman Order construing the claims in a manner favorable to Crossroads. Quantum is a party to three petitions for IPR filed at the U.S. Patent Office, which collectively challenge the validity of each of the patents Crossroads asserted in the lawsuit against Quantum. The U.S. Patent Office has granted those petitions and Crossroads filed its Patent Owner’s Responses laying out the arguments regarding the validity of the patents in those granted proceedings. The Oral Hearing is scheduled for October 30, 2015. Based on the IPRs, Quantum filed a motion to stay the litigation pending the IPR proceedings, which was granted by the court. If the patents are found partially or entirely invalid during the IPR proceedings, Crossroads might be adversely impacted in the litigation proceeding against Quantum, including potentially losing the ability to continue with its claims of infringement. Quantum v. Crossroads On September 23, 2014, Quantum filed a lawsuit in the U.S. District Court for the Northern District of California alleging that the Company’s StrongBox product infringes a patent owned by Quantum. This lawsuit was filed only months after Crossroads filed its lawsuit against Quantum claiming infringement of Crossroads’ patents. The Company believes it has meritorious legal positions and will represent its interest vigorously in this matter. If Quantum is successful in this lawsuit, it could result in the Company not having all of the patent rights necessary to conduct the Company’s business. A scheduling order has been entered in this case and trial is scheduled in February 2016. In addition, Quantum has threatened to file additional inter partes Dot Hill v. Crossroads On June 29, 2015, Dot Hill filed a lawsuit in the U.S. District Court for the District of Colorado alleging that the Company’s StrongBox product infringes a patent owned by Dot Hill. The Company believes it has meritorious legal positions and will defend its interest vigorously in this matter. If Dot Hill is successful in this lawsuit, it could result in the Company not having all of the patent rights necessary to conduct the Company’s business. Crossroads has filed a response to the complaint and a scheduling conference is set for September 2015. NetApp v. Crossroads NetApp has threatened to file three lawsuits against the Company alleging that the Company’s SPHiNX virtual tape library, StrongBox, and RVA products infringe three NetApp patents. If NetApp files any of these three lawsuits, and if NetApp is successful in any of those lawsuits, it could adversely affect the Company’s patent rights and result in us not having all of the patent rights necessary to conduct the Company’s business.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Jul. 31, 2015
Stockholders Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	8. STOCKHOLDERS’ EQUITY 2010 Private Placement On October 23, 2010, the Company sold 3,125,000 3.20 10.0 1,074,212 3.20 0.8 1.3 0 63 1.47 5 949,034 2013 Private Placement On March 22, 2013, the Company entered into a securities purchase agreement with certain accredited investors for the issuance and sale in a private placement of 4,231,154 2.0625 8.6 7.9 5.0 0.001 2,282,754 2.00 2,284,000 1,543,000 0 63 0.82 5 1,090,000 0.7 152,046 298,000 224,099 612,000 43,000 The Series F Preferred Stock has the rights, qualifications, limitations and restrictions set forth in the Certificate of Designation (the “Certificate of Designation”) filed with the Secretary of State of the State of Delaware on March 28, 2013. The Certificate of Designation authorizes issuance of up to 4,500,000 3,750,000 750,000 9.99 4.99 The Certificate of Designation contains customary anti-dilution protection for proportional adjustments (e.g. stock splits). The Series F Preferred Stock previously included an anti-dilution provision that would adjust the conversion price of the Series F Preferred Stock to the issue price of any equity securities the Company issued at a price less than $2.0625 per share, subject to certain exceptions. This type of provision is commonly referred to as a “full-ratchet” anti-dilution provision. Upon approval of the full ratchet anti-dilution provisions on June 21, 2013, the Series F warrants were reclassified as a derivative liability and recorded at fair value. This created a scenario for which the shares of Series F Preferred Stock were potentially convertible into more shares of common stock than authorized. Therefore, the Series F Preferred Stock was classified in temporary equity. Upon the expiration of the full ratchet anti-dilution provisions in March 2014, the Company reclassified the Series F Preferred Stock and Series F warrants to permanent stockholders' equity following the stockholders vote. During the nine months ended July 31, 2015, there were 276,940 Dividends on the Series F Preferred Stock accrue at an annual rate of 5.0 2013 Fortress Credit Agreement On July 22, 2013 the Company issued warrants to purchase 1,454,545 1,374,000 1.0625 The Fortress Warrants will expire on the seventh anniversary of the effective date of the Fortress transactions, on July 22, 2020. 2014 Private Placement On March 31, 2014, the Company sold 1,986,622 2.2565 4.5 993,311 2.45 0.2 1.1 0 74 1.64 2.5 993,311 2015 Common Stock Offering On January 28, 2015, the Company sold 3,071,739 2.30 7.1 1,658,760 2.76 1.1 1.9 0 75 1.55 4.0 1,658,760 2015 Common Stock Rights Offering On July 28, 2015, the Company completed a subscription rights offering for shares of the Company’s common stock (the “Rights Offering”). Under the terms of the Rights Offering, the Company distributed to its common and preferred stock holders one subscription right for each share of the Company’s common or preferred stock owned as of the record date, which entitled the holder to purchase 0.50 1.25 The Company accepted subscriptions for 3,933,879 4.9 0.4 Warrant Summary List Warrant Transaction Warrants Weighted 2010 Private Placement 949,034 $ 3.20 2013 Private Placement 2,029,776 $ 2.00 2013 Fortress Credit Agreement 1,454,545 $ 2.06 2014 Private Placement 993,311 $ 2.45 2015 Common Stock Offering 1,658,760 $ 2.76 Total Warrants 7,085,426

STOCK OPTIONS AND STOCK BASED C

STOCK OPTIONS AND STOCK BASED COMPENSATION	9 Months Ended
	Jul. 31, 2015
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	STOCK OPTIONS AND STOCK BASED COMPENSATION The Company has a stock-based compensation plan available to grant incentive stock options, non-qualified stock options and restricted stock to employees and non-employee members of the Board of Directors and advisors. The Company’s 2010 Stock Incentive Plan (the “2010 Plan”), succeeded the 1999 Stock Option/Stock Issuance Plan (the “1999 Plan”). As of July 31, 2015, options to purchase 368,563 The 2010 Plan was approved by the Board of Directors on May 26, 2010 and became effective on August 13, 2010, upon approval by shareholders. A maximum of 5,250,000 4,138,936 2,953,889 117,577 66,081 As of July 31, 2015, options to purchase an aggregate of 3,322,452 2,719,200 1,518,723 363,216 414,172 The 2010 Plan options generally become exercisable over a four-year period (vesting 25% after one year, the remaining 75% vesting quarterly thereafter) and expire after ten years. During 2015, the majority of the employee incentive stock option grants vest on a schedule of 25% at the end of six months and 12.5% thereafter Nine months ended July 31, 2015 2014 Cost of revenue $ 9 $ 28 Sales and marketing 98 305 Research and development 135 444 General and administrative 501 535 Total stock-based compensation $ 743 $ 1,312 During the year ended October 31, 2014, share based compensation expense of approximately $ 301,000 67 117,577 The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on historical volatility of the Company’s stock. The expected term represents an estimate of the time options are expected to remain outstanding based upon historical analysis. The risk-free rate for periods within the contractual life of the option is based on the U.S. treasury yield curve in effect at the time of grant. Nine months ended July 31, 2015 2014 Expected dividend yield 0 % 0 % Expected volatility 74 - 76 % 73 - 79 % Risk-free interest rate 1.4 - 1.6 % 1.4 - 1.7 % Expected term (years) 4 - 5 4 - 5 Number of Weighted Weighted Average Aggregate Outstanding and expected to vest at October 31, 2014 3,104,067 $ 2.32 7.54 $ 2.4 Granted 331,513 $ 2.35 Forfeited (78,130) $ 3.25 Exercised (34,998) $ 1.50 Outstanding and expected to vest at July 31, 2015 3,322,452 $ 2.31 7.12 $ 0.1 Exercisable at July 31, 2015 2,719,200 $ 2.30 6.7 $ 0.1 The weighted average fair value per option granted during the nine months ended July 31, 2015 and 2014 was $ 1.56 1.18 36,000 310,000 52,000 515,000 The Company granted no options to non-employees during the nine months ended July 31, 2015, and 10,000 14,000 At July 31, 2015, there was approximately $ 0.5 0.9 955,800 1,016,820 1.3 1.3 Options Outstanding Options Exercisable Weighted Average Weighted Weighted Range of Shares Remaining Average Average Exercise Prices Outstanding Contractual Term Exercise Price Shares Exercise Price $ - $ 1.21 426,512 7.23 $ 1.12 389,637 $ 1.11 $ 1.24 $ 1.48 118,540 8.74 $ 1.28 71,506 $ 1.25 $ 1.54 $ 1.54 450,000 8.31 $ 1.54 393,750 $ 1.54 $ 1.56 $ 2.04 321,720 4.90 $ 1.64 315,258 $ 1.63 $ 2.10 $ 2.10 819,888 7.84 $ 2.10 819,888 $ 2.10 $ 2.12 $ 2.56 416,227 8.85 $ 2.47 130,214 $ 2.41 $ 2.74 $ 3.98 332,828 6.57 $ 3.04 172,962 $ 3.29 $ 4.00 $ 7.20 436,737 3.93 $ 4.74 425,985 $ 4.73 $ - $ 7.20 3,322,452 7.06 $ 2.31 2,719,200 $ 2.30

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS	9 Months Ended
	Jul. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Pension and Other Postretirement Benefits Disclosure [Text Block]	10. EMPLOYEE BENEFITS In 1996, the Company established the Crossroads Systems, Inc. 401(k) Savings Plan (the “Savings Plan”), which is a qualified plan under section 401(k) of the Internal Revenue Code. All employees who have attained 18 years of age are eligible to enroll in the Savings Plan. The Company may make matching contributions to those employees participating in the Savings Plan based upon Company productivity and profitability. Company contributions vest over a period of six years. In October 2000, the Company adopted a new 401(k) Savings Plan that meets all of the criteria set forth above in the Savings Plan. The Company made matching contributions of $ 143,000 136,000

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Jul. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	11. RELATED PARTY TRANSACTIONS Iron Mountain On December 19, 2013, the Company and Iron Mountain (“IRM”) mutually agreed to end their contract involving the development of a co-branded product. The Company received $ 1.6 550,000 1,050,000 2014 Private Placement On March 31, 2014 and April 4, 2014, the Company entered into Securities Purchase Agreements with certain accredited investors for the issuance and sale in a private placement (the “2014 Private Placement”) of an aggregate of 1,986,622 2.2565 4.5 2.46 1,288,352 2.9 2015 Private Placement On January 27, 2015, the Company entered into placement agency agreements with certain accredited investors for the issuance and sale in a private placement (the “2015 Private Placement”) of an aggregate of 3,071,739 2.30 7.1 2.76 350,000 0.8 2015 Common Stock Rights Offering On July 28, 2015, the Company completed its Rights Offering and accepted subscriptions for 3,933,879 1.25 4.9 1,537,907 1.9

PREFERRED STOCK RIGHTS

PREFERRED STOCK RIGHTS	9 Months Ended
	Jul. 31, 2015
Preferred Stock Rights [Abstract]
Preferred Stock Rights Disclosure [Text Block]	12. PREFERRED STOCK RIGHTS On May 23, 2014, the Company's Board of Directors adopted a tax benefit preservation plan (the “Plan”). The Plan is intended to diminish the risk that the Company’s ability to use net operating loss carryforwards to reduce future federal income tax obligations may become substantially limited due to an “ownership change,” as defined in Section 382 of the Internal Revenue Code. The Board of Directors authorized and declared a dividend distribution of one right for each outstanding share of common stock, par value $ 0.001 14.00 The rights will become exercisable following (i) the 10th business day (or such later date as may be determined by the Board of Directors) after the public announcement that an acquiring person has acquired beneficial ownership of 4.99 In addition, upon the occurrence of certain events, the exercise price of the rights would be adjusted and holders of the rights (other than rights owned by an acquiring person or group) would be entitled to purchase common stock at approximately half of market value. Given the potential adjustment of the exercise price of the rights, the rights could cause substantial dilution to a person or group that acquires 4.99% or more of the Company's common stock on terms not approved by the Company's Board of Directors. No rights were exercisable at July 31, 2015. There is no impact to the Company's financial results as a result of the adoption of the Plan for the nine months ended July 31, 2015 or 2014.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Jul. 31, 2015
Subsequent Events [Abstract]
Subsequent Events [Text Block]	13. SUBSEQUENT EVENTS In connection with the Rights Offering and the resulting increase in the number of shares of common stock outstanding, the Board of Directors of the Company determined to make an equitable adjustment to all warrants and options. Warrants will be increased by a rate of 20.19 1.2019

ORGANIZATION AND BASIS OF PRE20

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	9 Months Ended
	Jul. 31, 2015
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Consolidation, Policy [Policy Text Block]	Principles of Consolidation and Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has accumulated significant losses as it has been developing its current and next generation products. The Company believes that cash flow from operations, customer reimbursed expenses, debt, and proceeds from the sale of common and preferred stock will be sufficient to fund the anticipated operations for the next 12 months. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern for a reasonable period of time. The investment in KIP CR P1 LP (which we refer to as the “partnership” (see Note 6)), of which the Company is a limited partner and of which an affiliate of Fortress (as defined in Note 6) is the general partner, is accounted for using the equity method. The current investment balance is nominal at July 31, 2015.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of the consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements.
Derivatives, Reporting of Derivative Activity [Policy Text Block]	Derivative Liabilities The Company, in accordance with Financial Accounting Standards Boards (“FASB”) Accounting Standards Codification (“ASC”) 815-40-25 and ASC 815-10-15 Derivatives and Hedging and ASC 480-10-25 Liabilities-Distinguishing Liabilities from Equity, accounted for the Series F warrants (as defined in Note 8), as liabilities at their fair value during periods where the full ratchet anti-dilution provision was in effect. The Series F warrants full ratchet anti-dilution provision was eliminated on January 2014, and the fair value of the warrants were reclassified to shareholders’ equity.
Contracts To Modify Or Customize Products Policy [Policy Text Block]	Contracts to Modify or Customize Products The Company periodically enters into contracts with certain customers to significantly modify or customize products. In accounting for such arrangements, the Company first looks to the guidance in FASB ASC Subtopic 985-605, Software - Revenue Recognition Revenue Recognition – Multiple-Element Arrangements, Revenue Recognition – Construction-Type and Production-Type Contracts, Revenue Recognition – Products, Revenue Recognition – Services,
Earnings Per Share, Policy [Policy Text Block]	Computation of Net Loss Per Share Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by giving effect to all dilutive potential common shares that were outstanding during the period. Basic earnings per share excludes the dilutive effect of common stock equivalents such as stock options and warrants, while earnings per share, assuming dilution, includes such dilutive effects. Future weighted-average shares outstanding calculations will be impacted by the following factors, among others: (i) the ongoing issuance of common stock associated with stock option and warrant exercises; (ii) any fluctuations in the Company’s stock price, which could cause changes in the number of common stock equivalents included in the earnings per share, assuming dilution computation; and (iii) the issuance of common stock to effect business combinations should the Company enter into such transactions. The Company has excluded all outstanding common stock equivalents from the calculation of diluted net loss per share because all such common stock equivalents are antidilutive for all periods presented. The total number of common stock equivalents excluded from the diluted net loss per common share calculation was 13,449,135 12,266,695 7,085,426 3,041,257 3,322,452 Net loss available to common stockholders is calculated by deducting from loss, preferred dividends paid and accrued of $ 43,000 0.2
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting Pronouncements During November 2014, the FASB issued ASU 2014-16 Derivatives and Hedging (Topic 815) Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (“ASU 2014-16”). ASU 2014-16 does not change the current criteria in GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. That is, an entity will continue to evaluate whether the economic characteristics and risks of the embedded derivative feature are clearly and closely related to those of the host contract, among other relevant criteria. The amendments clarify how current GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features—including the embedded derivative feature being evaluated for bifurcation—in evaluating the nature of the host contract. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. These changes are not expected to have a material impact on the consolidated financial statements. This could impact the accounting for future hybrid financial instruments issued by the Company. The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements. The Company does not believe that there are any new accounting pronouncements that have been issued that might have a material impact on its consolidated financial position or results of operations.

INVENTORY (Tables)

INVENTORY (Tables)	9 Months Ended
	Jul. 31, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventory, net consists of the following (in thousands): July 31, October 31, 2015 2014 Raw materials $ 229 $ 186 Finished goods 251 171 $ 480 $ 357

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Jul. 31, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	Property and equipment, net consist of the following (in thousands, except number of years): July 31, October 31, 2015 2014 Life (years) Equipment 1-3 $ 16,691 $ 16,635 Furniture and fixtures 5 633 634 Leasehold improvements 5 934 576 18,258 17,845 Less: Accumulated depreciation (17,705) (17,405) $ 553 $ 440

ACCRUED EXPENSES AND DEFERRED23

ACCRUED EXPENSES AND DEFERRED REVENUE (Tables)	9 Months Ended
	Jul. 31, 2015
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities [Table Text Block]	Accrued expenses consist of the following (in thousands): July 31, October 31, 2015 2014 Professional services $ 799 $ 394 Payroll related 404 846 Deferred rent 191 - Warranty reserve 17 48 Other 190 109 $ 1,601 $ 1,397
Schedule of Product Warranty Liability [Table Text Block]	Warranty reserve activity, included in accrued expenses, during the year ended October 31, 2014 and nine months ended July 31, 2015 was as follows (in thousands): Balance at Charged to Balance at Beginning Costs and Reserve End of of Period Expenses Usage Period Year ended October 31, 2014 Warranty reserve $ 41 $ 31 $ (24) $ 48 Nine months ended July 31, 2015 Warranty reserve $ 48 $ 36 $ (67) $ 17
Deferred Revenue, by Arrangement, Disclosure [Table Text Block]	Deferred revenue, current portion, consists of the following (in thousands): July 31, October 31, 2015 2014 Product $ 151 $ - Services 802 1,032 $ 953 $ 1,032

LINE OF CREDIT AND LONG TERM 24

LINE OF CREDIT AND LONG TERM LIABILITIES (Tables)	9 Months Ended
	Jul. 31, 2015
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments [Table Text Block]	The principal balance and carrying value to Fortress is as follows (in thousands): July 31, October 31, 2015 2014 Principal balance Fortress Term Loans $ 2,795 $ 5,327 Unaccreted debt discount (145) (516) Net carrying value due Fortress 2,650 4,811 Less current portion (2,650) (3,160) Long term portion $ - $ 1,651

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Jul. 31, 2015
Stockholders Equity Note [Abstract]
Schedule of Stockholders Equity Note, Warrants or Rights [Table Text Block]	The Company has the following common stock warrants outstanding at July 31, 2015: Warrant Transaction Warrants Weighted 2010 Private Placement 949,034 $ 3.20 2013 Private Placement 2,029,776 $ 2.00 2013 Fortress Credit Agreement 1,454,545 $ 2.06 2014 Private Placement 993,311 $ 2.45 2015 Common Stock Offering 1,658,760 $ 2.76 Total Warrants 7,085,426

STOCK OPTIONS AND STOCK BASED26

STOCK OPTIONS AND STOCK BASED COMPENSATION (Tables)	9 Months Ended
	Jul. 31, 2015
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	The Company realized stock-based compensation expense for all awards issued under the Company’s stock plans in the following line items in the consolidated statements of operations: Nine months ended July 31, 2015 2014 Cost of revenue $ 9 $ 28 Sales and marketing 98 305 Research and development 135 444 General and administrative 501 535 Total stock-based compensation $ 743 $ 1,312
Variables Used In Black Sholes Calculation [Table Text Block]	The variables used in the Black-Scholes calculation are listed below for the respective periods: Nine months ended July 31, 2015 2014 Expected dividend yield 0 % 0 % Expected volatility 74 - 76 % 73 - 79 % Risk-free interest rate 1.4 - 1.6 % 1.4 - 1.7 % Expected term (years) 4 - 5 4 - 5
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	The following table summarizes information about stock option activity for the nine months ended July 31, 2015: Number of Weighted Weighted Average Aggregate Outstanding and expected to vest at October 31, 2014 3,104,067 $ 2.32 7.54 $ 2.4 Granted 331,513 $ 2.35 Forfeited (78,130) $ 3.25 Exercised (34,998) $ 1.50 Outstanding and expected to vest at July 31, 2015 3,322,452 $ 2.31 7.12 $ 0.1 Exercisable at July 31, 2015 2,719,200 $ 2.30 6.7 $ 0.1
Schedule Of Share Based Compensation Shares Authorized Under Stock Option Plans To Employees and Non Employees By Exercise Price Range [Table Text Block]	The following table shows information about outstanding stock options at July 31, 2015: Options Outstanding Options Exercisable Weighted Average Weighted Weighted Range of Shares Remaining Average Average Exercise Prices Outstanding Contractual Term Exercise Price Shares Exercise Price $ - $ 1.21 426,512 7.23 $ 1.12 389,637 $ 1.11 $ 1.24 $ 1.48 118,540 8.74 $ 1.28 71,506 $ 1.25 $ 1.54 $ 1.54 450,000 8.31 $ 1.54 393,750 $ 1.54 $ 1.56 $ 2.04 321,720 4.90 $ 1.64 315,258 $ 1.63 $ 2.10 $ 2.10 819,888 7.84 $ 2.10 819,888 $ 2.10 $ 2.12 $ 2.56 416,227 8.85 $ 2.47 130,214 $ 2.41 $ 2.74 $ 3.98 332,828 6.57 $ 3.04 172,962 $ 3.29 $ 4.00 $ 7.20 436,737 3.93 $ 4.74 425,985 $ 4.73 $ - $ 7.20 3,322,452 7.06 $ 2.31 2,719,200 $ 2.30

ORGANIZATION AND BASIS OF PRE27

ORGANIZATION AND BASIS OF PRESENTATION (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount			13,449,135	12,266,695
Preferred Stock Dividends, Paid and Accrued	$ 43	$ 152	$ 228	$ 400
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount			7,085,426
Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount			3,041,257
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount			3,322,452

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Thousands	Jul. 31, 2015	Oct. 31, 2014
Inventory [Line Items]
Raw materials	$ 229	$ 186
Finished goods	251	171
Inventory, Net	$ 480	$ 357

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2015	Oct. 31, 2014
Property, Plant and Equipment [Line Items]
Equipment	$ 16,691	$ 16,635
Furniture and fixtures	633	634
Leasehold improvements	934	576
Property, Plant and Equipment, Gross	18,258	17,845
Less: Accumulated depreciation	(17,705)	(17,405)
Property Plant And Equipment Net	$ 553	$ 440
Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	1 year
Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years

PROPERTY AND EQUIPMENT (Detai30

PROPERTY AND EQUIPMENT (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Property, Plant and Equipment [Line Items]
Depreciation	$ 300	$ 517

ACCRUED EXPENSES AND DEFERRED31

ACCRUED EXPENSES AND DEFERRED REVENUE (Details) - USD ($) $ in Thousands	Jul. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Deferred Revenue Arrangement [Line Items]
Professional services	$ 799	$ 394
Payroll related	404	846
Deferred rent	191	0
Warranty reserve	17	48	$ 41
Other	190	109
Accrued Liabilities Current	$ 1,601	$ 1,397

ACCRUED EXPENSES AND DEFERRED32

ACCRUED EXPENSES AND DEFERRED REVENUE (Details 1) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jul. 31, 2015	Oct. 31, 2014
Warranty reserve activity, included in accrued expenses:
Balance at Beginning of Period, Warranty reserve	$ 48	$ 41
Charged to Costs and Expenses, Warranty reserve	36	31
Reserve Usage, Warranty reserve	(67)	(24)
Balance at End of Period, Warranty reserve	$ 17	$ 48

ACCRUED EXPENSES AND DEFERRED33

ACCRUED EXPENSES AND DEFERRED REVENUE (Details 2) - USD ($) $ in Thousands	Jul. 31, 2015	Oct. 31, 2014
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 953	$ 1,032
Product [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue	151	0
Services [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 802	$ 1,032

ACCRUED EXPENSES AND DEFERRED34

ACCRUED EXPENSES AND DEFERRED REVENUE (Details Textual) - USD ($)	3 Months Ended
	Jan. 31, 2015	Oct. 31, 2014
Deferred Revenue Arrangement [Line Items]
Accrued Bonuses, Current		$ 451,000
Stock Issued During Period, Value, Share-Based Compensation, Net Of Forfeitures	$ 301,000
Stock Issued During Period, Shares, Share-Based Compensation, Net Of Forfeitures (in shares)	117,577

LINE OF CREDIT AND LONG TERM 35

LINE OF CREDIT AND LONG TERM LIABILITIES (Details) - USD ($) $ in Thousands	Jul. 31, 2015	Oct. 31, 2014
Line of Credit Facility [Line Items]
Less current portion	$ (2,650)	$ (3,160)
Long term portion	0	1,651
Fortress [Member]
Line of Credit Facility [Line Items]
Principal balance Fortress Term Loans	2,795	5,327
Unaccreted debt discount	(145)	(516)
Net carrying value due Fortress	2,650	4,811
Less current portion	(2,650)	(3,160)
Long term portion	$ 0	$ 1,651

LINE OF CREDIT AND LONG TERM 36

LINE OF CREDIT AND LONG TERM LIABILITIES (Details Textual) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	9 Months Ended	12 Months Ended
	Jul. 24, 2013	Jul. 31, 2015	Oct. 31, 2013	Jun. 23, 2015
Line of Credit Facility [Line Items]
Class of Warrant or Right, Outstanding		7,085,426
Line Of Credit Facility Outstanding Principal Amount		$ 2.8
Fortress [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount			$ 10
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Proceeds from Lines of Credit	$ 10
Debt Instrument, Description		In conjunction with the Credit Agreement, the Company agreed to certain financial covenants. The Company is required to maintain a minimum of $1.5 million of unrestricted cash at each month end and the Company is restricted from making certain cash distributions to equity security holders or from incurring additional indebtedness without prior written consent from Fortress. The Company has also agreed to certain reporting covenants and must supply monthly financial statements to Fortress within 30 days of the end of each month.
Debt Instrument, Interest Rate, Effective Percentage		16.39%
Debt Issuance Cost		$ 1.7
Class of Warrant or Right, Outstanding		1,454,545
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 2.0625
Term Loan A [Member] | Fortress [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount			$ 5
Debt Instrument, Maturity Date			Jul. 22, 2016
Debt Instrument, Interest Rate, Stated Percentage			10.00%
Term Loan B [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage				10.00%
Debt Instrument, Annual Principal Payment				$ 1.5
Term Loan B [Member] | Fortress [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount			$ 5
Debt Instrument, Maturity Date			Feb. 1, 2016
Debt Instrument, Interest Rate, Stated Percentage			10.00%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Textual)	3 Months Ended		9 Months Ended
	Jul. 31, 2015USD ($)ft²	Jul. 31, 2014USD ($)	Jul. 31, 2015USD ($)ft²	Jul. 31, 2014USD ($)	May. 02, 2014ft²
Commitments And Contingencies [Line Items]
Operating Leases, Rent Expense, Net	$ 80,000	$ 81,000	$ 260,000	$ 327,000
Area of Land | ft²					16,200
Lease Commitment Value			244,000
Loss Contingency, Damages Sought, Value			$ 200,000,000
Crossroads Headquarters [Member]
Commitments And Contingencies [Line Items]
Area of Land | ft²	37,800		37,800

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - $ / shares	Jul. 31, 2015	Jan. 27, 2015	Jul. 22, 2013
Class of Warrant or Right [Line Items]
Warrants Outstanding	7,085,426
2010 Private Placement Warrant [Member]
Class of Warrant or Right [Line Items]
Warrants Outstanding	949,034
Weighted Average Exercise Price	$ 3.2
2013 Private Placement Warrant [Member]
Class of Warrant or Right [Line Items]
Warrants Outstanding	2,029,776
Weighted Average Exercise Price	$ 2
2013 Fortress Credit Agreement Warrant [Member]
Class of Warrant or Right [Line Items]
Warrants Outstanding	1,454,545		1,454,545
Weighted Average Exercise Price	$ 2.06
2014 Private Placement Warrant [Member]
Class of Warrant or Right [Line Items]
Warrants Outstanding	993,311
Weighted Average Exercise Price	$ 2.45
2015 Common Stock Offering [Member]
Class of Warrant or Right [Line Items]
Warrants Outstanding	1,658,760	1,658,760
Weighted Average Exercise Price	$ 2.76

STOCKHOLDERS' EQUITY (Details T

STOCKHOLDERS' EQUITY (Details Textual)	1 Months Ended				9 Months Ended		12 Months Ended
	Jul. 28, 2015USD ($)$ / sharesshares	Jan. 27, 2015USD ($)$ / sharesshares	Mar. 31, 2014USD ($)$ / sharesshares	Mar. 22, 2013USD ($)$ / shares$ / Unitshares	Jul. 31, 2015USD ($)shares	Jul. 31, 2014USD ($)	Oct. 31, 2014USD ($)$ / sharesshares	Oct. 31, 2010USD ($)$ / sharesshares	Jul. 22, 2013USD ($)$ / sharesshares
Class of Stock [Line Items]
Payments of Stock Issuance Costs | $	$ 400,000
Common Stock, Shares, Issued (in shares)					23,418,989		15,831,810
Preferred Stock, Shares Authorized					25,000,000		25,000,000
Class of Warrant or Right, Outstanding					7,085,426
Common Stock, Shares Subscribed but Unissued	3,933,879
Common Stock, Value, Subscriptions | $	$ 4,900,000
Purchase of Common Stock Shares	0.50
Subscription Price Per Share | $ / shares	$ 1.25
2013 Private Placement Warrant [Member]
Class of Stock [Line Items]
Fair Value Of Warrants | $				$ 2,284,000
Fair Value Assumptions, Expected Dividend Rate				0.00%
Fair Value Assumptions, Expected Volatility Rate				63.00%
Fair Value Assumptions, Risk Free Interest Rate				0.82%
Fair Value Assumptions, Expected Term				5 years
Warrants Convertible Beneficial Conversion Feature | $				$ 1,090,000	$ 224,099
Common Stock Dividends, Shares					152,046
Stock Issued During Period, Value, Stock Dividend | $					$ 298,000	$ 612,000
Fair Value of Warrant Liability | $				$ 1,543,000
Class of Warrant or Right, Outstanding					2,029,776
Accrued Liabilities for Commissions, Expense and Taxes | $					$ 43,000
2010 Private Placement Warrant [Member]
Class of Stock [Line Items]
Stock Issued During Period Shares New Issues One								3,125,000
Stock Issued During Period Value New Issues One | $								$ 10,000,000
Shares Issued, Price Per Share | $ / shares								$ 3.20
Number Of Common Stock, Shares Granted By Issue Of Warrants Under Private Placement								1,074,212
Exercise Price Per Share Of Common Stock Issued By Conversion Of Warrants | $ / shares								$ 3.20
Payments of Stock Issuance Costs | $								$ 800,000
Fair Value Of Warrants | $								$ 1,300,000
Fair Value Assumptions, Expected Dividend Rate								0.00%
Fair Value Assumptions, Expected Volatility Rate								63.00%
Fair Value Assumptions, Risk Free Interest Rate								1.47%
Fair Value Assumptions, Expected Term								5 years
Class of Warrant or Right, Outstanding					949,034
2013 Fortress Credit Agreement Warrant [Member]
Class of Stock [Line Items]
Fair Value Of Warrants | $									$ 1,374,000
Fair Value Of Warrants, Per Share | $ / shares									$ 1.0625
Class of Warrant or Right, Outstanding					1,454,545				1,454,545
2014 Private Placement Warrant [Member]
Class of Stock [Line Items]
Stock Issued During Period Shares New Issues One			1,986,622				1,986,622
Shares Issued, Price Per Share | $ / shares							$ 2.2565
Number Of Common Stock, Shares Granted By Issue Of Warrants Under Private Placement			993,311
Exercise Price Per Share Of Common Stock Issued By Conversion Of Warrants | $ / shares			$ 2.45				$ 2.46
Payments of Stock Issuance Costs | $			$ 200,000
Fair Value Of Warrants | $			$ 1,100,000
Fair Value Assumptions, Expected Dividend Rate			0.00%
Fair Value Assumptions, Expected Volatility Rate			74.00%
Fair Value Assumptions, Risk Free Interest Rate			1.64%
Fair Value Assumptions, Expected Term			2 years 6 months
Class of Warrant or Right, Outstanding					993,311
Proceeds from Issuance of Private Placement | $			$ 4,500,000				$ 4,500,000
2015 Common Stock Offering
Class of Stock [Line Items]
Stock Issued During Period Shares New Issues One		3,071,739
Shares Issued, Price Per Share | $ / shares		$ 2.30
Number Of Common Stock, Shares Granted By Issue Of Warrants Under Private Placement		1,658,760
Exercise Price Per Share Of Common Stock Issued By Conversion Of Warrants | $ / shares		$ 2.76
Payments of Stock Issuance Costs | $		$ 1,100,000
Fair Value Of Warrants | $		$ 1,900,000
Fair Value Assumptions, Expected Dividend Rate		0.00%
Fair Value Assumptions, Expected Volatility Rate		75.00%
Fair Value Assumptions, Risk Free Interest Rate		1.55%
Fair Value Assumptions, Expected Term		4 years
Class of Warrant or Right, Outstanding		1,658,760			1,658,760
Proceeds from Issuance of Private Placement | $		$ 7,100,000
Series F1 Convertible Preferred Stock [Member] | 2013 Private Placement Warrant [Member]
Class of Stock [Line Items]
Equity Method Investment, Ownership Percentage					9.99%
Series F2 Convertible Preferred Stock [Member] | 2013 Private Placement Warrant [Member]
Class of Stock [Line Items]
Equity Method Investment, Ownership Percentage					4.99%
Series F Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Common Stock, Shares, Issued (in shares)					276,940
Preferred Stock, Dividend Rate, Percentage					5.00%
Series F Convertible Preferred Stock [Member] | 2013 Private Placement Warrant [Member]
Class of Stock [Line Items]
Preferred Stock, Dividend Rate, Percentage					5.00%
Certificate Of Designation [Member]
Class of Stock [Line Items]
Preferred Stock, Shares Authorized					4,500,000
Preferred Stock, Conversion Basis					The right of holders of Series F Preferred Stock to convert the Series F Preferred Stock is subject to a 9.99% beneficial ownership limitation for holders of Sub-Series F-1 and a 4.99% beneficial ownership limitation for holders of Sub-Series F-2.
Certificate Of Designation [Member] | Series F1 Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Shares Authorized					3,750,000
Preferred Stock, Voting Rights					Such beneficial ownership limitations may be increased or decreased by a holder of Sub-Series F-1 to any percentage not in excess of 19.99% after providing notice of such increase or decrease to the Company. For as long as at least 90% of the aggregate number of shares of Sub-Series F-1 issued on the original issue date are outstanding, the holders of such Sub-Series F-1, voting as a single class, will be entitled to elect two directors of the Company.
Certificate Of Designation [Member] | Series F2 Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Shares Authorized					750,000
Preferred Stock, Voting Rights					The holders of Sub-Series F-2 will not be entitled to vote on the directors elected by the holders of Sub-Series F-1.
Investors [Member]
Class of Stock [Line Items]
Securities Purchase Agreement, Price Per Unit Of Units Issuable | $ / Unit				2.0625
Securities Purchase Agreement, Value Of Units Issuable | $				$ 8,600,000
Securities Purchase Agreement, Proceeds From Issuance Of Units | $				$ 7,900,000
Investors [Member] | 2013 Private Placement Warrant [Member]
Class of Stock [Line Items]
Securities Purchase Agreement, Number Of Units Issuable				4,231,154
Securities Purchase Agreement, Number Of Warrants Issued				2,282,754
Units Par Or Stated Value Per Share | $ / shares				$ 0.001
Units Description				Each unit consists of one share of cumulative 5.0% Series F convertible preferred stock
Investor One [Member] | 2013 Private Placement Warrant [Member]
Class of Stock [Line Items]
Securities Purchase Agreement, Exercise Price Of Warrants Issued | $ / shares				$ 2
Private Placement [Member] | Investors [Member]
Class of Stock [Line Items]
Securities Purchase Agreement, Units Issuance Cost | $				$ 700,000

STOCK OPTIONS AND STOCK BASED40

STOCK OPTIONS AND STOCK BASED COMPENSATION (Details) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 743	$ 1,312
Cost of revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	9	28
Sales and marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	98	305
Research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	135	444
General and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 501	$ 535

STOCK OPTIONS AND STOCK BASED41

STOCK OPTIONS AND STOCK BASED COMPENSATION (Details 1)	9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%
Expected volatility, Minimum	74.00%	73.00%
Expected volatility, Maximum	76.00%	79.00%
Risk-free interest rate, Minimum	1.40%	1.40%
Risk-free interest rate, Maximum	1.60%	1.70%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	4 years	4 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	5 years	5 years

STOCK OPTIONS AND STOCK BASED42

STOCK OPTIONS AND STOCK BASED COMPENSATION (Details 2) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended	12 Months Ended
	Jul. 31, 2015	Oct. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding and expected to vest at October 31, 2014	3,104,067
Number of Shares, Granted	331,513
Number of Shares, Forfeited	(78,130)
Number of Shares, Exercised	(34,998)
Number of Shares, Outstanding and expected to vest at July 31, 2015	3,322,452	3,104,067
Number of Shares, Exercisable at July 31, 2015	2,719,200
Weighted Average Exercise Price, Outstanding and expected to vest at October 31, 2014 (in dollars per share)	$ 2.32
Weighted Average Exercise Price, Granted (in dollars per share)	2.35
Weighted Average Exercise Price, Forfeited (in dollars per share)	3.25
Weighted Average Exercise Price, Exercised (in dollars per share)	1.5
Weighted Average Exercise Price, Outstanding and expected to vest at July 31, 2015 (in dollars per share)	2.31	$ 2.32
Weighted Average Exercise Price, Exercisable at July 31, 2015 (in dollars per share)	$ 2.3
Weighted Average Remaining Contractual Term, Outstanding and expected to vest at end of the period (in years)	7 years 1 month 13 days	7 years 6 months 14 days
Weighted Average Remaining Contractual Term, Exercisable at July 31, 2015 (in years)	6 years 8 months 12 days
Aggregate Intrinsic Value, Outstanding and expected to vest at October 31, 2014	$ 2.4
Aggregate Intrinsic Value, Outstanding and expected to vest at July 31, 2015	0.1	$ 2.4
Aggregate Intrinsic Value, Exercisable at July 31, 2015 (in dollars)	$ 0.1

STOCK OPTIONS AND STOCK BASED43

STOCK OPTIONS AND STOCK BASED COMPENSATION (Details 3) - Jul. 31, 2015 - $ / shares	Total
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit (in dollars per share)	$ 0
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 7.20
Options Outstanding, Shares Outstanding (in shares)	3,322,452
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	7 years 22 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 2.31
Options Exercisable, Shares (in shares)	2,719,200
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 2.30
Range Of Exercise Prices One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit (in dollars per share)	0
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 1.21
Options Outstanding, Shares Outstanding (in shares)	426,512
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	7 years 2 months 23 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 1.12
Options Exercisable, Shares (in shares)	389,637
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 1.11
Range Of Exercise Prices Two [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit (in dollars per share)	1.24
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 1.48
Options Outstanding, Shares Outstanding (in shares)	118,540
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	8 years 8 months 26 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 1.28
Options Exercisable, Shares (in shares)	71,506
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 1.25
Range Of Exercise Prices Three [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit (in dollars per share)	1.54
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 1.54
Options Outstanding, Shares Outstanding (in shares)	450,000
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	8 years 3 months 22 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 1.54
Options Exercisable, Shares (in shares)	393,750
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 1.54
Range Of Exercise Prices Four [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit (in dollars per share)	1.56
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 2.04
Options Outstanding, Shares Outstanding (in shares)	321,720
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	4 years 10 months 24 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 1.64
Options Exercisable, Shares (in shares)	315,258
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 1.63
Range Of Exercise Prices Five [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit (in dollars per share)	2.10
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 2.10
Options Outstanding, Shares Outstanding (in shares)	819,888
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	7 years 10 months 2 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 2.10
Options Exercisable, Shares (in shares)	819,888
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 2.10
Range Of Exercise Prices Six [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit (in dollars per share)	2.12
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 2.56
Options Outstanding, Shares Outstanding (in shares)	416,227
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	8 years 10 months 6 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 2.47
Options Exercisable, Shares (in shares)	130,214
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 2.41
Range Of Exercise Prices Seven [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit (in dollars per share)	2.74
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 3.98
Options Outstanding, Shares Outstanding (in shares)	332,828
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	6 years 6 months 25 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.04
Options Exercisable, Shares (in shares)	172,962
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.29
Range Of Exercise Prices Eight [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit (in dollars per share)	4
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 7.20
Options Outstanding, Shares Outstanding (in shares)	436,737
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	3 years 11 months 5 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 4.74
Options Exercisable, Shares (in shares)	425,985
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 4.73

STOCK OPTIONS AND STOCK BASED44

STOCK OPTIONS AND STOCK BASED COMPENSATION (Details Textual) - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended		12 Months Ended
	Jan. 31, 2015	Jan. 31, 2015	Jul. 31, 2015	Jul. 31, 2014	Oct. 31, 2014
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock Options To Employees and Non Employees Outstanding Number (in shares)			3,322,452		3,104,067
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)			$ 1.56	$ 1.18
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value			$ 36,000	$ 310,000
Proceeds from Stock Options Exercised			$ 52,000	$ 515,000
Expected Weighted Average Period Of Recognition Of Compensation Cost Related To Stock Options To Employees and Non Employees			10 months 24 days
Stock Options Vested By Shares To Employees and Non Employees During Period			955,800	1,016,820
Stock Options Vested To Value Of Employees and Non Employees During Period			$ 1,300,000	$ 1,300,000
Number of Shares, Granted			331,513
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized			$ 500,000
Stock Issued During Period, Value, Share-Based Compensation, Net Of Forfeitures		$ 301,000
Allocated Share-based Compensation Expense			$ 743,000	$ 1,312,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			34,998
Non Employees [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares, Granted				10,000
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Grant Date Fair Value				$ 14,000
Stock Option Plan 1999 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock Options To Employees and Non Employees Outstanding Number (in shares)			368,563
Stock Options Authorized To Be Issued To Employees and Non Employees			3,322,452
Stock Option Plan 2010 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock Options Vested By Shares To Employees and Non Employees During Period			2,719,200
Common Stock Shares Granted			117,577	66,081
Number of Shares, Granted			414,172
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights			The 2010 Plan options generally become exercisable over a four-year period (vesting 25% after one year, the remaining 75% vesting quarterly thereafter) and expire after ten years. During 2015, the majority of the employee incentive stock option grants vest on a schedule of 25% at the end of six months and 12.5% thereafter
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			363,216
Common Stock, Capital Shares Reserved for Future Issuance			1,518,723
Stock Option Plan 2010 [Member] | Board Of Directors [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock Options To Employees and Non Employees Outstanding Number (in shares)			2,953,889
Stock Options Authorized To Be Issued To Employees and Non Employees			5,250,000
Number of Shares, Granted			4,138,936
Stock Option Plan 2010 [Member] | Management Bonus [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Estimated Percentage On Management Bonus, Share Based Compensation					67.00%
Stock Issued During Period, Value, Share-Based Compensation, Net Of Forfeitures	$ 117,577
Allocated Share-based Compensation Expense					$ 301,000

EMPLOYEE BENEFITS (Details Text

EMPLOYEE BENEFITS (Details Textual) - USD ($)	9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
401(k) Savings Plan [Member]
Defined Contribution Plan Disclosure [Line Items]
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 143,000	$ 136,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Textual) - USD ($)	1 Months Ended			3 Months Ended	12 Months Ended
	Jul. 28, 2015	Jan. 27, 2015	Mar. 31, 2014	Jan. 31, 2014	Oct. 31, 2014
Related Party Transaction [Line Items]
Common Stock, Shares Subscribed but Unissued	3,933,879
2014 Private Placement Warrant [Member]
Related Party Transaction [Line Items]
Stock Issued During Period, Shares, New Issues			1,986,622		1,986,622
Shares Issued, Price Per Share					$ 2.2565
Proceeds from Issuance of Private Placement			$ 4,500,000		$ 4,500,000
Exercise Price Per Share Of Common Stock Issued By Conversion Of Warrants			$ 2.45		$ 2.46
Stock Issued During Period, Shares, Acquisitions					1,288,352
Adjustments to Additional Paid in Capital, Warrant Issued					$ 2,900,000
2015 Private Placement Warrant [Member]
Related Party Transaction [Line Items]
Stock Issued During Period, Shares, New Issues		3,071,739
Shares Issued, Price Per Share		$ 2.30
Proceeds from Issuance of Private Placement	$ 4,900,000	$ 7,100,000
Exercise Price Per Share Of Common Stock Issued By Conversion Of Warrants	$ 1.25	$ 2.76
Stock Issued During Period, Shares, Acquisitions	1,537,907	350,000
Adjustments to Additional Paid in Capital, Warrant Issued	$ 1,900,000	$ 800,000
Common Stock, Shares Subscribed but Unissued	3,933,879
Iron Mountain Incorporated ("IRM") [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Proceeds from Terminated Contract				$ 1,600,000
Revenue from Related Parties					550,000
Related party transaction, Gain Loss on Contract Termination					$ 1,050,000

PREFERRED STOCK RIGHTS (Details

PREFERRED STOCK RIGHTS (Details Textual) - $ / shares	9 Months Ended
	Jul. 31, 2015	Oct. 31, 2014
Class of Stock [Line Items]
Preferred Stock, Participation Rights	one right for each outstanding share of common stock, par value $0.001 per share, and Series F Preferred Stock, par value $0.001 per share, of the Company to stockholders of record as of the close of business on June 4, 2014
Preferred Stock, Par Or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Rights Entitlement	to purchase from the Company one one-thousandth of a share of Series G Participating Preferred Stock
Preferred Stock Rights Exercisable, Beneficial Ownership Percentage of Common Stock	4.99%
Series G Participating Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Par Or Stated Value Per Share	$ 0.001
Preferred Stock, Exercise Price Per One One-Thousandth	$ 14

SUBSEQUENT EVENTS (Details Text

SUBSEQUENT EVENTS (Details Textual) - Aug. 31, 2015 - Subsequent Event [Member]	Total
Percentage Of Warrants Increased Rate	20.19%
Stockholders' Equity Note, Stock Split	1.2019:1