Crossroads Systems 10-K 13 Jan 16 2015 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Oct. 31, 2015	Jan. 13, 2016	Apr. 30, 2015
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Oct. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Entity Registrant Name	CROSSROADS SYSTEMS INC
Entity Central Index Key	1,093,207
Current Fiscal Year End Date	--10-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 38,027,669
Trading Symbol	CRDS
Entity Common Stock, Shares Outstanding		24,509,435

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014
Current assets:
Cash and cash equivalents	$ 5,314	$ 4,676
Restricted cash	6,478	270
Total cash, cash equivalents and restricted cash	11,792	4,946
Accounts receivable, net of allowance for doubtful accounts of $5 and $151, respectively	1,632	2,252
Inventory	437	357
Prepaid expenses and other current assets	348	798
Total current assets	14,209	8,353
Property and equipment, net	533	440
Other assets	171	63
Total assets	14,913	8,856
Current liabilities:
Accounts payable	2,224	1,443
Accrued expenses	1,799	1,397
Deferred revenue, current portion	7,234	1,032
Current portion of long term debt, net of debt discount	0	3,160
Total current liabilities	11,257	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	595	423
Total liabilities	$ 11,852	$ 9,106
Commitments and contingencies (See Note 8)
Stockholders' equity (deficit):
Convertible preferred stock, $0.001 par value, 25,000,000 shares authorized, 2,791,257 and 3,318,197 shares issued and outstanding, respectively	$ 3	$ 3
Common stock, $0.001 par value, 75,000,000 shares authorized, 24,182,524 and 15,831,810 shares issued and outstanding, respectively	24	16
Additional paid-in capital	238,881	226,208
Accumulated other comprehensive loss	(90)	(60)
Accumulated deficit	(235,757)	(226,417)
Total stockholders' equity (deficit)	3,061	(250)
Total liabilities and stockholders' equity	$ 14,913	$ 8,856

CONSOLIDATED BALANCE SHEETS _Pa

CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014
Allowance for Doubtful Accounts (in dollars)	$ 5	$ 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	2,791,257	3,318,197
Convertible Preferred Stock, Shares Outstanding	2,791,257	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	24,182,524	15,831,810
Common Stock, Shares Outstanding	24,182,524	15,831,810

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Revenue:
Product	$ 2,535	$ 4,048
IP license, royalty and other	5,286	7,101
Total revenue	7,821	11,149
Cost of revenue:
Product	749	945
IP license, royalty and other	1,276	1,120
Total cost of revenue	2,025	2,065
Gross profit	5,796	9,084
Operating expenses:
Sales and marketing	3,183	3,668
Research and development	4,784	5,675
General and administrative	9,299	5,247
Total operating expenses	17,266	14,590
Loss from operations	(11,470)	(5,506)
Gain on settlement	0	1,050
Loss before other expenses	(11,470)	(4,456)
Other expense:
Interest expense	(384)	(815)
Amortization of debt discount and issuance costs	(1,001)	(1,231)
Change in value of derivative liability	0	(2,765)
Other income	3,811	40
Net loss	(9,044)	(9,227)
Dividends attributable to preferred stock	(280)	(484)
Net loss available to common stockholders, basic and diluted	$ (9,324)	$ (9,711)
Net loss per share available to common stockholders, basic and diluted (in dollars per share)	$ (0.48)	$ (0.69)
Weighted average number of common shares outstanding, basic and diluted (in shares)	19,573,832	14,164,069

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Net loss	$ (9,044)	$ (9,227)
Other comprehensive income:
Foreign currency translation adjustments	(30)	(9)
Comprehensive loss	$ (9,074)	$ (9,236)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
Balance at Oct. 31, 2013	$ (7,915)	$ 0	$ 12	$ 208,702	$ (216,578)	$ (51)
Balance (in shares) at Oct. 31, 2013		0	11,949,937
Transfer from temporary equity	6,394	$ 4	$ 0	6,390	0	0
Transfer from temporary equity (in shares)		4,231,154	0
Stock options exercised	$ 592	$ 0	$ 1	591	0	0
Stock options exercised (in shares)	390,073	0	390,073
Stock-based compensation	$ 1,435	$ 0	$ 0	1,435	0	0
Stock-based compensation (in shares)		0	66,081
Warrants exercised	822	$ 0	$ 0	822	0	0
Warrants exercised (in shares)		0	302,041
Preferred shares converted to common	0	$ (1)	$ 1	0	0	0
Preferred shares converted to common (in shaes)		(912,957)	912,957
Ratchet expiration	3,322	$ 0	$ 0	3,322	0	0
Common stock dividends issued to preferred shareholders	0	$ 0	$ 0	612	(612)	0
Common stock dividends issued to preferred shareholders (in shares)		0	224,099
Private Placement	4,336	$ 0	$ 2	4,334	0	0
Private Placement (in shares)		0	1,986,622
Foreign currency translation adjustment	(9)	$ 0	$ 0	0	0	(9)
Net loss	(9,227)	0	0	0	(9,227)	0
Balance at Oct. 31, 2014	(250)	$ 3	$ 16	226,208	(226,417)	(60)
Balance (in shares) at Oct. 31, 2014		3,318,197	15,831,810
Stock options exercised	$ 146	$ 0	$ 0	146	0	0
Stock options exercised (in shares)	125,147	0	125,147
Stock-based compensation	$ 1,215	$ 0	$ 0	1,215	0	0
Stock-based compensation (in shares)		0	117,577
Warrants exercised	531	$ 0	$ 1	530	0	0
Warrants exercised (in shares)		0	423,386
Preferred shares converted to common	0	$ 0	$ 0	0	0	0
Preferred shares converted to common (in shaes)		(526,940)	526,940
Common stock dividends issued to preferred shareholders	0	$ 0	$ 0	296	(296)	0
Common stock dividends issued to preferred shareholders (in shares)		0	152,046
CS Rights Offering	4,532	$ 0	$ 4	4,528	0	0
CS Rights Offering (in shares)		0	3,933,879
Private Placement	5,961	$ 0	$ 3	5,958	0	0
Private Placement (in shares)		0	3,071,739
Foreign currency translation adjustment	(30)	$ 0	$ 0	0	0	(30)
Net loss	(9,044)	0	0	0	(9,044)	0
Balance at Oct. 31, 2015	$ 3,061	$ 3	$ 24	$ 238,881	$ (235,757)	$ (90)
Balance (in shares) at Oct. 31, 2015		2,791,257	24,182,524

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Cash flows from operating activities:
Net loss	$ (9,044)	$ (9,227)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	374	631
Loss on change in value of derivative liability	0	2,765
Amortization of debt discount	1,001	1,231
Gain on disposal of property and equipment	0	(40)
Stock-based compensation	1,032	1,589
Provision for doubtful accounts receivable	62	57
Changes in assets and liabilities:
Accounts receivable	522	(22)
Inventory	(82)	(44)
Prepaid expenses and other assets	165	(262)
Accounts payable	477	363
Accrued expenses	324	(832)
Deferred revenue	6,433	97
Net cash provided by (used in) operating activities	1,264	(3,694)
Cash flows from investing activities:
Purchase of property and equipment	(226)	(81)
Proceeds from sale of property and equipment	0	76
Net cash used in investing activities	(226)	(5)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of expenses	11,169	5,534
Repayment of debt	(5,328)	(4,672)
Net cash provided by financing activities	5,841	862
Effect of foreign exchange rate on cash and cash equivalents	(33)	(12)
Change in cash and cash equivalents	6,846	(2,849)
Cash and cash equivalents, beginning of period	4,946	7,795
Cash, cash equivalents, and restricted cash end of period	11,792	4,946
Supplemental disclosure of cash flow information:
Cash paid for interest	377	830
Cash paid for income taxes	1	0
Supplemental disclosure of non cash financing activities:
Conversion of preferred stock to common stock	795	1,378
Common stock dividends issued to preferred shareholders	296	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	12 Months Ended
	Oct. 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”). Headquartered in Austin, Texas, Crossroads Systems, a Delaware corporation, is a global provider of data archive solutions. Through the innovative use of new technologies, Crossroads delivers customer-driven solutions that enable proactive data security, advanced data archiving, optimized performance and significant cost-savings. 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, and proceeds from the sale of common and preferred stock will be sufficient to fund the anticipated operations for fiscal 2016. 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. KIP CR P1 LP (which we refer to as the “partnership” (see Note 9)), of which the Company is a limited partner and of which an affiliate of Fortress is the general partner, the investment in KIP CR P1 LP is accounted for using the equity method. The current investment balance is nominal at October 31, 2015. The preparation of the consolidated financial statements in conformity with generally accepted accounting principles 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. Cash and cash equivalents consist of cash on deposit and highly liquid investments with original maturities of 90 days or less at date of purchase. While the Company’s cash and cash equivalents are on deposit with high quality FDIC and Association of German Banks insured financial institutions, at times such deposits exceed insured limits. As of October 31, 2015, total uninsured deposits were $ 11.1 Restricted cash amounted to $ 6.5 6.2 0.3 The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. The Company evaluates the adequacy of its allowance on a regular basis by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. The Company makes adjustments to the allowance balance if the evaluation of allowance requirements differs from the actual aggregate reserve. This evaluation is inherently subjective and estimates may be revised as more information becomes available. Inventory is stated at the lower of cost or market. Cost is determined using standard cost, which approximates the first-in, first-out method. Adjustments to reduce the carrying value of inventory to its net realizable value are made for estimated excess, obsolete or impaired balances. These adjustments are measured as the excess of the cost of the inventory over its market value based upon assumptions about future demand and charged to cost of revenue. At the point of the loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration of the original cost basis or increases in the newly established cost basis. Property and equipment are stated at historical cost, net of accumulated depreciation. Depreciation is recognized using the straight-line method over the estimated useful lives of the respective assets (Note 4). Expenditures for repairs and maintenance are charged to expense when incurred; major replacements and betterments are capitalized at cost. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the related asset or the remaining life of the lease. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in operations. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by comparison of its carrying amount to future undiscounted cash flows the assets are expected to generate. The Company considers historical performance and future estimated results in its evaluation of impairment. The Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value, generally measured by discounting expected future cash flows at the rate it utilizes to evaluate potential investments. Because the Company operates as a single reporting unit, the Company is considered as a whole when evaluating long-lived assets for impairment. In accordance with ASC 815-40-25 and ASC 815-10-15 Derivatives and Hedging and ASC 480-10-25 Liabilities-Distinguishing Liabilities from Equity, convertible preferred shares are accounted for net, outside of stockholder’s equity and warrants are accounted for as liabilities at their fair value during periods where the full ratchet anti-dilution provision is in effect. The Series F warrants are accounted for as a liability at their fair value at each reporting period. The value of the derivative warrant liability will be re-measured at each reporting period with changes in fair value recorded as earnings. To derive an estimate of the fair value of these warrants, a dynamic Black Scholes Merton formula is utilized that computes the impact of share dilution upon the exercise of the warrant shares. This process relies upon inputs such as shares outstanding, estimated stock prices, strike price and volatility assumptions to dynamically adjust the payoff of the warrants in the presence of the dilution effect. In the event the convertible preferred shares are redeemed, any redemption price in excess of the carrying amount of the convertible preferred stock will be treated as a dividend. Revenue consists of sales of hardware, software and services, as well as royalties the Company earns for products and the license of certain intellectual property as detailed below. Revenue is recognized when it is realizable and earned. Revenue is considered realizable and earned when: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the price to the buyer is fixed or determinable; and when collectability is reasonably assured. Product Revenue Product revenue includes software licenses delivered via license key and software solutions delivered via a hardware appliance. Product sales include a perpetual license to the Company’s software that is essential to the functionality of the hardware. Revenue for products sold to strategic partners, including value added resellers (“VARs”) and original equipment manufacturers (“OEMs”), and to end users is generally recognized upon shipment. When significant post-delivery obligations exist, the related revenue is deferred until such obligations are fulfilled. If there are customer acceptance criteria in the contract, the Company recognizes revenue upon end user acceptance, which typically occurs after delivery and installation are completed. The Company licenses certain software to OEM customers under licensing agreements that allow those customers to embed this software into specific products they offer. Licensees pay a fee based on the amount of sales of their products that incorporate the licensed software. On a periodic and timely basis, the licensees provide reports listing sales to end users for which a license fee is owed to the Company. This report is cross-referenced to the license keys electronically delivered by the Company. As the license keys substantiate delivery, and the customer reports substantiate acceptance, the Company recognizes revenue based on the information in these reports. Shipping charges billed to customers are included in product revenue and the related shipping costs are included in cost of product revenue. In the period revenue is recognized, allowances are provided for future product returns. These allowances are based on programs in existence at the time revenue is recognized and historical product return rates. Since the Company has historically been able to reliably estimate the amount of returns, revenue is recognized, net of allowances for future returns, upon shipment to customers. Out-of-warranty repairs are included in product revenue and recognized upon completion of the repair. On occasion, installation and professional services may also be delivered with the product as part of a bundled solution. Revenue related to installation and professional services is recognized upon completion. IP License, Royalty and Other Revenue IP license, royalty and other revenue consists of revenue from the licensing of intellectual property (“IP”), royalty payments from Hewlett Packard (“HP”), and sales of post-contract support (“PCS”) service. IP License Revenue The Company licenses patented technology to customers under licensing agreements that allow those customers to utilize the technology in specific products they offer. The timing and amount of revenue recognized from IP license agreements depends upon a variety of factors, including the specific terms of each agreement and the nature of the deliverables and obligations. Such agreements are reviewed for multiple elements. Multiple elements can include amounts related to initial non-refundable license fees for the use of the Company’s patents in the customer’s past shipments, patent licensing royalties on covered products sold going forward, cross-licensing terms between the Company and other parties, and settlement of patent litigation. Through October 31, 2015, no amounts have been allocated to the cross-licensing or the settlement of patent litigation elements. Revenue is only recognized after all of the following criteria are met: (1) written agreements have been executed; (2) delivery of technology or intellectual property rights has occurred; (3) fees are fixed or determinable; and (4) collectability of fees is reasonably assured. Under these IP license agreements, one or a combination of the following forms of payment is received as consideration for permitting customers to use the Company’s patents in their applications and products: Consideration for Past Sales Recurring Royalty Payments Royalty Revenue Royalty revenue consists of revenue from royalty payments from HP for product and PCS services. Revenue from royalty payments from HP is recognized when earned or when amounts can be reasonably estimated based on monthly product shipping reports received from HP. Other Revenue Other revenue consists of revenue from the sales of PCS services to customers other than HP. Most product sales include PCS services which consist of software updates and customer support. Software updates provide customers access to maintenance releases and patches released during the term of the support period. Support includes telephone and internet access to technical support personnel and hardware support. For PCS services, revenue equal to the separately stated price of these service contracts is initially deferred and recognized as revenue ratably over the contract period. Multiple Element Arrangements When elements such as hardware, software and PCS service are contained in a single arrangement, or in related arrangements with the same customer, the Company allocates revenue to each element in an arrangement based on relative selling price using a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (“VSOE”), if available. Third party evidence (“TPE”) is used only if VSOE is not available, and the Company’s best estimate of selling price (“ESP”) is used if neither VSOE nor TPE is available. The maximum revenue recognized on a delivered element is limited to the amount that is not contingent upon the delivery of additional items. For established products, the Company uses VSOE. For new products, installation and professional services for which the Company is unable to establish selling price using VSOE or TPE, the Company uses ESP. The objective of ESP is to determine the price at which the Company would transact a sale if these items were sold on a standalone basis. In determining ESP, the Company uses the cost to provide the new product, installation or professional service plus a margin. When using cost plus a margin, the Company considers the total cost of the item to establish strategic partner pricing. The Company also considers the historical margins for established products and other factors, including any changes to pricing methodologies, competitiveness of new products, installation and professional services, pricing pressures due to entering a new market, and cost drivers that could cause future margins to differ from historical margins. The Company determines VSOE for established products and PCS service based on the price charged to customers when sold separately. PCS service revenue is recognized under a proportional performance method, ratably over the life of the contract. 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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, October 30, 2015, we entered into an agreement with TQ Zeta LLC, an affiliate of Techquity, and Intrepidus Holdings LLC (collectively, “Techquity”), in which Techquity will share in the revenue generated from the ‘972 patent litigation. For consideration of $ 10.0 52 20 40 20 100 12 2.7 1.1 3.8 The Company will recognize other income from this transaction as the authorized expenditures are made with the unspent balance being reflected as deferred revenue Generally, the Company indemnifies, under pre-determined conditions and limitations, its customers for infringement of third-party intellectual property rights by its products or services. The Company seeks to limit its liability for such indemnity to an amount not to exceed the sales price of the products or services. The Company does not believe, based on information available, that it is probable that any material amounts will be paid under these guarantees. The Company provides for the estimated cost to repair or replace products under warranty and technical support costs when the related product revenue is recognized. The Company warrants products for a period from 12 to 39 months following the sale of its products. A reserve for warranty costs is recorded based upon the historical level of warranty claims and management’s estimate of future costs. The Company accounts for income taxes in accordance with the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates that are expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be realized or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company has provided a full valuation allowance against its deferred tax assets because the realization of the related tax benefits is not considered more likely than not. The Company recognizes the tax benefit from an uncertain tax position only if it meets the “more likely than not” threshold that the position will be sustained upon examination by the taxing authority, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company includes interest and penalties related to its uncertain tax positions, if any, as part of income tax expense within its consolidated statement of operations (Note 11). 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 14,278,480 11,848,928 7,375,327 2,791,257 4,111,896 Net loss available to common stockholders is calculated by deducting from net income, preferred dividends paid and accrued of $ 0.5 The Company expenses all advertising costs as incurred. Advertising costs for the years ended October 31, 2015 and 2014 were not material. Expenditures relating to the development of new products are expensed as incurred. These costs include expenditures for employee compensation, materials used in the development effort, other internal costs, as well as expenditures for third party professional services. Software development costs incurred after a product has reached marketability have not been material to date. Stock-based compensation expense is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite employee service period (generally the vesting period), net of estimated forfeitures. The Company estimates the fair value of stock-based payments using the Black-Scholes option-pricing model, which requires a number of assumptions to determine the model inputs. The estimation of stock-based awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company’s current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class and historical experience. Additionally, the fair value of stock-based awards to non-employees are expensed over the period in which the related services are rendered. All stock-based awards are expected to be fulfilled with new shares of common stock. The Company's wholly-owned subsidiary outside the United States (“U.S.”), Crossroads Europe, GmbH, has a functional currency other than the U.S. dollar. Accordingly, all balance sheet accounts of this subsidiary are translated into U.S. dollars using the current exchange rate in effect at the balance sheet date, and revenues and expenses are translated using the average exchange rate in effect during the period. The gains and losses from foreign currency translation of this subsidiary’s financial statements are recorded directly as a separate component of stockholders' equity and represent all of the balance under the caption "Accumulated other comprehensive loss." Net income recorded by Crossroads Europe, GmbH, was approximately $ 0.1 5 7 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

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	12 Months Ended
	Oct. 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 October 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 October 31, 2015 and October 31, 2014, the Company held no investments.

INVENTORY

INVENTORY	12 Months Ended
	Oct. 31, 2015
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	3. INVENTORY Inventory, net consists of the following (in thousands): October 31, October 31, 2015 2014 Raw materials $ 200 $ 186 Finished goods 237 171 $ 437 $ 357

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Oct. 31, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	4. PROPERTY AND EQUIPMENT Property and equipment, net consist of the following (in thousands, except number of years): October 31, October 31, 2015 2014 Life (years) Equipment 1-3 $ 16,737 $ 16,635 Furniture and fixtures 5 633 634 Leasehold improvements 5 934 576 18,304 17,845 Less: Accumulated depreciation (17,771) (17,405) $ 533 $ 440 Depreciation expense was approximately $ 0.4 0.6

ACCRUED EXPENSES AND DEFERRED R

ACCRUED EXPENSES AND DEFERRED REVENUE	12 Months Ended
	Oct. 31, 2015
Payables and Accruals [Abstract]
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]	5. ACCRUED EXPENSES AND DEFERRED REVENUE October 31, October 31, 2015 2014 Professional services $ 837 $ 394 Payroll related 657 846 Deferred rent 184 - Warranty reserve 5 48 Other 116 109 $ 1,799 $ 1,397 Included in payroll related accrued expenses as of October 31, 2014 was $ 451,000 301,000 117,577 415,000 133,000 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 Year ended October 31, 2015 Warranty reserve $ 48 $ 44 $ (87) $ 5 October 31, October 31, 2015 2014 Product $ 135 $ - Services 891 1,032 Deferred revenue stream sale 6,208 - $ 7,234 $ 1,032 Other deferred revenue consists of the remaining amount of consideration received from the sale of a portion of the Company’s IP revenue stream. The deferred revenue will be recognized upon the expenditure of approved legal costs related to the ongoing IP litigation described in Note 8.

CONCENTRATIONS

CONCENTRATIONS	12 Months Ended
	Oct. 31, 2015
Risks and Uncertainties [Abstract]
Concentration Risk Disclosure [Text Block]	6. CONCENTRATIONS Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company’s sales are primarily concentrated in the United States and are primarily derived from sales to VAR’s in the computer storage and server industry. Revenue is concentrated with several major customers. The loss of a major customer, a change of suppliers or a significant technological change in the industry could adversely affect operating results. The Company performs credit evaluations of its customers and generally does not require collateral on accounts receivable balances and provides allowances for potential credit losses and product sales returns. The Company has not experienced material credit losses in any of the periods presented. The Company relies on a limited number of suppliers for its products. The inability of any supplier to fulfill supply requirements could materially impact future operating results. October 31, 2015 2014 Customer A 37.2 % 36.6 % Customer B 9.0 % 7.7 % Customer C 7.9 % 8.4 % October 31, 2015 2014 Customer A 42.1 % 47.6 % Customer B 37.1 % 4.2 % Customer C 0.0 % 13.0 % The level of sales to any customer may vary from quarter to quarter. However, the Company expects that significant customer concentrations will continue for the foreseeable future. The loss of any one of these customers, or a decrease in the level of sales to any one of these customers could have a material adverse impact on the Company’s financial condition or results of operations.

LINE OF CREDIT AND LONG TERM LI

LINE OF CREDIT AND LONG TERM LIABILITIES	12 Months Ended
	Oct. 31, 2015
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	7. 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 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. 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 (the “Amendment”) to its Credit Agreement, dated July 22, 2013, with CF DB EZ LLC, as assignee of Fortress, 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 Principal paydown $ 2,402 Accrued Interest 24 Agreement termination fee 280 $ 2,706 October 31, October 31, 2015 2014 Principal balance Fortress Term Loans $ - $ 5,327 Unaccreted debt discount - (516) Net carrying value due Fortress - 4,811 Less current portion - (3,160) Long term portion $ - $ 1,651

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Oct. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	8. 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 0.3 0.4 37,800 16,200 245,000 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. Depending on the Court, a ruling could be received quickly or could take months after the Markman hearing. An “ Inter Partes nter 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 (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 gave companies with potentially infringing products 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 but litigation. Crossroads believes these companies (and companies they have acquired) have been illegally using Crossroads’ proprietary technology and that the potential compensatory damages could be in excess of $ 200 In response to the lawsuits brought by Crossroads, collectively these defendants filed nineteen 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 filed nine petitions for IPR at the U.S. Patent Office challenging the validity of each of the patents Crossroads asserted in the lawsuit against Oracle. The U.S. Patent Office granted four of those petitions. Based on the IPRs, Oracle filed a motion to stay the litigation pending the outcome of 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 challenging the validity of each of the patents Crossroads asserted in the lawsuit against Cisco. The U.S. Patent Office granted those petitions. Based on the IPRs, Cisco filed a motion to stay the litigation pending the outcome of 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 filed seven petitions for IPR filed at the U.S. Patent Office challenging the validity of each of the patents Crossroads asserted in the lawsuit against NetApp. The U.S. Patent Office granted three of those petitions. Based on the IPRs, NetApp filed a motion to stay the litigation pending the outcome of 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 filed three petitions for IPR filed at the U.S. Patent Office challenging the validity of each of the patents Crossroads asserted in the lawsuit against Quantum. The U.S. Patent Office granted those petitions. Based on the IPRs, Quantum filed a motion to stay the litigation pending the outcome of 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. On November 23, 2015, the parties settled the case. 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 interests 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. The case is on-going and the Court has proposed the Markman Hearing be conducted July 20, 2016. The Court has not yet set a trial date.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Oct. 31, 2015
Stockholders Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	9. STOCKHOLDERS’ EQUITY 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 Each unit consists of one share of cumulative 5.0% Series F convertible preferred stock 0.001 2.00 2,282,754 2.00 2,284,000 1,543,000 0 63 0.82 5 1,090,000 0.7 152,046 296,000 224,099 612,000 0.1 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 Upon approval of the full ratchet anti-dilution provisions on June 21, 2013, the 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 was 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 warrants to permanent stockholders' equity following the stockholders vote. During the year ended October 31, 2015, there were 526,940 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 2.0625 1,374,000 1.0625 0.2019 1,748,218 The Fortress Warrants will expire on the seventh anniversary of the effective date of the Fortress transactions. 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 0.2019 1,193,860 2015 Common Stock Offering On January 27, 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 0.2019 1,993,664 2015 Common Stock Rights Offering On July 28, 2015, the company closed a subscription rights offering for the Company’s common stock. The Company completed the rights offering through the distribution to its common and preferred stock holders, who subscribed, to purchase shares of the Company's common stock at $ 1.25 The offering allowed each holder to buy 1/2 of a common share, for each common and preferred share owned on the record date. The Company sold 3,933,879 4.9 0.4 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 were increased by a rate of 20.19 Warrant Transaction Warrants Weighted 2013 Private Placement 2,439,585 $ 2.00 2013 Fortress Credit Agreement 1,748,218 $ 2.06 2014 Private Placement 1,193,860 $ 2.45 2015 Common Stock Offering 1,993,664 $ 2.76 Total Warrants 7,375,327

STOCK OPTIONS AND STOCK BASED C

STOCK OPTIONS AND STOCK BASED COMPENSATION	12 Months Ended
	Oct. 31, 2015
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	10. 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 October 31, 2015, options to purchase 366,425 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 5,304,943 3,745,471 117,577 66,081 As of October 31, 2015, options to purchase an aggregate of 4,111,896 3,289,979 563,616 526,741 414,172 Year ended October 31, 2015 2014 Cost of revenue $ 16 $ 36 Sales and marketing 128 369 Research and development 184 541 General and administrative 704 643 Total stock-based compensation $ 1,032 $ 1,589 During the year ended October 31, 2014, share based compensation expense of approximately $ 301,000 67 117,577 415,000 133,000 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. Year ended October 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 at October 31, 2013 3,320,910 $ 2.71 6.43 $ - Granted 775,889 $ 1.98 Forfeited (602,659) $ 4.52 Exercised (390,073) $ 1.52 Outstanding and expected to vest at October 31, 2014 3,104,067 $ 2.32 7.54 $ 2.4 Granted 1,313,406 $ 1.68 Forfeited (180,430) $ 3.08 Exercised (125,147) $ 1.08 Outstanding and expected to vest at October 31, 2015 4,111,896 $ 1.86 7.26 $ 0.2 Exercisable at October 31, 2015 3,289,979 $ 1.88 6.7 $ 0.2 The weighted average fair value per option granted during the years ended October 31, 2015 and 2014 was $ 1.10 1.28 51,000 413,000 143,000 591,000 The Company granted no options to non-employees during the year ended October 31, 2015 and 10,000 14,000 At October 31, 2015, there was approximately $ 0.9 1.3 1,442,016 1,236,776 1.7 1.6 Options Outstanding Options Exercisable Weighted Average Weighted Weighted Range of Shares Remaining Average Average Exercise Prices Outstanding Contractual Term Exercise Price Shares Exercise Price $ 0.53 $ 1.10 553,766 7.76 $ 0.95 497,230 $ 0.93 $ 1.23 $ 1.28 544,625 8.03 $ 1.28 544,625 $ 1.28 $ 1.28 $ 1.34 556,013 7.41 $ 1.32 275,513 $ 1.30 $ 1.34 $ 1.70 153,436 5.53 $ 1.48 101,544 $ 1.51 $ 1.70 $ 1.75 981,752 7.62 $ 1.75 981,752 $ 1.75 $ 1.75 $ 2.28 561,142 8.57 $ 2.08 220,304 $ 2.07 $ 2.28 $ 5.99 761,162 5.13 $ 3.37 669,011 $ 3.52 $ 0.53 $ 5.99 4,111,896 7.26 $ 1.86 3,289,979 $ 1.88

INCOME TAXES

INCOME TAXES	12 Months Ended
	Oct. 31, 2015
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	11. INCOME TAXES There was no recorded income tax benefit related to the losses of fiscal years 2015 or 2014 due to the uncertainty of the Company generating taxable income to utilize its net operating loss carry-forwards. 35 Years Ended October 31, 2015 2014 Federal tax benefit at statutory rate $ (3,164) $ (3,229) State income tax, net of federal tax benefit (116) (119) Effect of foreign operations (3) (4) Research and experimentation credit (19) (19) Stock based compensation 255 2,532 Derivative Liability - 1,003 Expiration of tax attributes 105 1,169 Permanent differences and other (54) (43) Change in valuation allowance 2,996 (1,290) Tax benefit $ - $ - Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Years Ended October 31, 2015 2014 Deferred Tax Assets: Short term: Inventory and other reserves $ 2,827 $ 709 Long term: Net operating losses 48,991 47,823 Research and experimentation credits 5,172 5,198 Basis of property and equipment 336 237 Deferred stock compensation 611 561 Other (67) 345 Long term deferred tax assets 55,043 54,164 Total deferred tax assets 57,870 54,873 Deferred Tax Liabilities: Basis of property and equipment - - Deferred tax liabilities - - Valuation allowance (57,870) (54,873) Net deferred tax asset $ - $ - In assessing the usefulness of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. At the end of the fiscal years ended October 31, 2015 and 2014, a full valuation allowance has been provided due to uncertainties regarding the future realization of the net deferred tax assets. The Company had federal net operating loss carry-forwards available to reduce future taxable income of approximately $ 132 128.5 5.2 5.2 3.0 1.3 3.8 3.9 The federal net operating loss carry-forwards and research and experimentation credit carry-forwards expire from 2018 to 2035, if not utilized prior to that time. Utilization of the federal net operating losses and tax credits may be subject to substantial annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986. Any annual limitation may result in the expiration of net operating losses and research and experimentation credits before utilization. The Company does not foresee any recognition of any unrecognized tax benefits during the next twelve months. The Company has recorded no liabilities related to uncertain tax benefits. The major jurisdictions in which the Company files income tax returns include the U.S. and Germany. The Company’s income tax returns are not currently under examination by the Internal Revenue Service or other tax authorities. As of October 31, 2015, the earliest year that the Company was subject to examination in these jurisdictions was 2010. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense, if any.

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS	12 Months Ended
	Oct. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Pension and Other Postretirement Benefits Disclosure [Text Block]	12. 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 $ 184,000 184,000

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Oct. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	13. 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 29, 2015, the Company closed a subscription rights offering for the Company’s common stock, selling 3,933,879 1.25 4.9 1,537,907 1.9

PREFERRED STOCK RIGHTS

PREFERRED STOCK RIGHTS	12 Months Ended
	Oct. 31, 2015
Preferred Stock Rights [Abstract]
Preferred Stock Rights Disclosure [Text Block]	14. 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 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. Each right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series G Participating Preferred 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 October 31, 2015. There is no impact to the Company's financial results as a result of the adoption of the rights plan for the years ended October 31, 2015 or 2014.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Oct. 31, 2015
Subsequent Events [Abstract]
Subsequent Events [Text Block]	15. SUBSEQUENT EVENTS On September 23, 2014, Quantum filed a lawsuit in the U.S. District Court for the Northern District of California alleging that our StrongBox product infringes a patent owned by Quantum. On November 23, 2015, the parties settled the case.

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Oct. 31, 2015
Valuation and Qualifying Accounts [Abstract]
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]	SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Charged to Deductions Balance at Year ended October 31, 2014 Deducted from asset accounts: Allowance for doubtful accounts $ 94 $ 57 $ - $ 151 Year ended October 31, 2015 Deducted from asset accounts: Allowance for doubtful accounts $ 151 $ 63 $ (210) $ 4

ORGANIZATION AND BASIS OF PRE24

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	12 Months Ended
	Oct. 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, and proceeds from the sale of common and preferred stock will be sufficient to fund the anticipated operations for fiscal 2016. 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. KIP CR P1 LP (which we refer to as the “partnership” (see Note 9)), of which the Company is a limited partner and of which an affiliate of Fortress is the general partner, the investment in KIP CR P1 LP is accounted for using the equity method. The current investment balance is nominal at October 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 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.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents, Restricted Cash Cash and cash equivalents consist of cash on deposit and highly liquid investments with original maturities of 90 days or less at date of purchase. While the Company’s cash and cash equivalents are on deposit with high quality FDIC and Association of German Banks insured financial institutions, at times such deposits exceed insured limits. As of October 31, 2015, total uninsured deposits were $ 11.1 Restricted cash amounted to $ 6.5 6.2 0.3
Allowance For Doubtful Accounts Receivable Policy [Policy Text Block]	Allowance for Doubtful Accounts The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. The Company evaluates the adequacy of its allowance on a regular basis by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. The Company makes adjustments to the allowance balance if the evaluation of allowance requirements differs from the actual aggregate reserve. This evaluation is inherently subjective and estimates may be revised as more information becomes available.
Inventory, Policy [Policy Text Block]	Inventory Inventory is stated at the lower of cost or market. Cost is determined using standard cost, which approximates the first-in, first-out method. Adjustments to reduce the carrying value of inventory to its net realizable value are made for estimated excess, obsolete or impaired balances. These adjustments are measured as the excess of the cost of the inventory over its market value based upon assumptions about future demand and charged to cost of revenue. At the point of the loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration of the original cost basis or increases in the newly established cost basis.
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Equipment Property and equipment are stated at historical cost, net of accumulated depreciation. Depreciation is recognized using the straight-line method over the estimated useful lives of the respective assets (Note 4). Expenditures for repairs and maintenance are charged to expense when incurred; major replacements and betterments are capitalized at cost. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the related asset or the remaining life of the lease. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in operations.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	Impairment of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by comparison of its carrying amount to future undiscounted cash flows the assets are expected to generate. The Company considers historical performance and future estimated results in its evaluation of impairment. The Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value, generally measured by discounting expected future cash flows at the rate it utilizes to evaluate potential investments. Because the Company operates as a single reporting unit, the Company is considered as a whole when evaluating long-lived assets for impairment.
Derivatives, Reporting of Derivative Activity [Policy Text Block]	Derivative Liabilities In accordance with ASC 815-40-25 and ASC 815-10-15 Derivatives and Hedging and ASC 480-10-25 Liabilities-Distinguishing Liabilities from Equity, convertible preferred shares are accounted for net, outside of stockholder’s equity and warrants are accounted for as liabilities at their fair value during periods where the full ratchet anti-dilution provision is in effect. The Series F warrants are accounted for as a liability at their fair value at each reporting period. The value of the derivative warrant liability will be re-measured at each reporting period with changes in fair value recorded as earnings. To derive an estimate of the fair value of these warrants, a dynamic Black Scholes Merton formula is utilized that computes the impact of share dilution upon the exercise of the warrant shares. This process relies upon inputs such as shares outstanding, estimated stock prices, strike price and volatility assumptions to dynamically adjust the payoff of the warrants in the presence of the dilution effect. In the event the convertible preferred shares are redeemed, any redemption price in excess of the carrying amount of the convertible preferred stock will be treated as a dividend.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition Revenue consists of sales of hardware, software and services, as well as royalties the Company earns for products and the license of certain intellectual property as detailed below. Revenue is recognized when it is realizable and earned. Revenue is considered realizable and earned when: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the price to the buyer is fixed or determinable; and when collectability is reasonably assured. Product Revenue Product revenue includes software licenses delivered via license key and software solutions delivered via a hardware appliance. Product sales include a perpetual license to the Company’s software that is essential to the functionality of the hardware. Revenue for products sold to strategic partners, including value added resellers (“VARs”) and original equipment manufacturers (“OEMs”), and to end users is generally recognized upon shipment. When significant post-delivery obligations exist, the related revenue is deferred until such obligations are fulfilled. If there are customer acceptance criteria in the contract, the Company recognizes revenue upon end user acceptance, which typically occurs after delivery and installation are completed. The Company licenses certain software to OEM customers under licensing agreements that allow those customers to embed this software into specific products they offer. Licensees pay a fee based on the amount of sales of their products that incorporate the licensed software. On a periodic and timely basis, the licensees provide reports listing sales to end users for which a license fee is owed to the Company. This report is cross-referenced to the license keys electronically delivered by the Company. As the license keys substantiate delivery, and the customer reports substantiate acceptance, the Company recognizes revenue based on the information in these reports. Shipping charges billed to customers are included in product revenue and the related shipping costs are included in cost of product revenue. In the period revenue is recognized, allowances are provided for future product returns. These allowances are based on programs in existence at the time revenue is recognized and historical product return rates. Since the Company has historically been able to reliably estimate the amount of returns, revenue is recognized, net of allowances for future returns, upon shipment to customers. Out-of-warranty repairs are included in product revenue and recognized upon completion of the repair. On occasion, installation and professional services may also be delivered with the product as part of a bundled solution. Revenue related to installation and professional services is recognized upon completion. IP License, Royalty and Other Revenue IP license, royalty and other revenue consists of revenue from the licensing of intellectual property (“IP”), royalty payments from Hewlett Packard (“HP”), and sales of post-contract support (“PCS”) service. IP License Revenue The Company licenses patented technology to customers under licensing agreements that allow those customers to utilize the technology in specific products they offer. The timing and amount of revenue recognized from IP license agreements depends upon a variety of factors, including the specific terms of each agreement and the nature of the deliverables and obligations. Such agreements are reviewed for multiple elements. Multiple elements can include amounts related to initial non-refundable license fees for the use of the Company’s patents in the customer’s past shipments, patent licensing royalties on covered products sold going forward, cross-licensing terms between the Company and other parties, and settlement of patent litigation. Through October 31, 2015, no amounts have been allocated to the cross-licensing or the settlement of patent litigation elements. Revenue is only recognized after all of the following criteria are met: (1) written agreements have been executed; (2) delivery of technology or intellectual property rights has occurred; (3) fees are fixed or determinable; and (4) collectability of fees is reasonably assured. Under these IP license agreements, one or a combination of the following forms of payment is received as consideration for permitting customers to use the Company’s patents in their applications and products: Consideration for Past Sales Recurring Royalty Payments Royalty Revenue Royalty revenue consists of revenue from royalty payments from HP for product and PCS services. Revenue from royalty payments from HP is recognized when earned or when amounts can be reasonably estimated based on monthly product shipping reports received from HP. Other Revenue Other revenue consists of revenue from the sales of PCS services to customers other than HP. Most product sales include PCS services which consist of software updates and customer support. Software updates provide customers access to maintenance releases and patches released during the term of the support period. Support includes telephone and internet access to technical support personnel and hardware support. For PCS services, revenue equal to the separately stated price of these service contracts is initially deferred and recognized as revenue ratably over the contract period. Multiple Element Arrangements When elements such as hardware, software and PCS service are contained in a single arrangement, or in related arrangements with the same customer, the Company allocates revenue to each element in an arrangement based on relative selling price using a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (“VSOE”), if available. Third party evidence (“TPE”) is used only if VSOE is not available, and the Company’s best estimate of selling price (“ESP”) is used if neither VSOE nor TPE is available. The maximum revenue recognized on a delivered element is limited to the amount that is not contingent upon the delivery of additional items. For established products, the Company uses VSOE. For new products, installation and professional services for which the Company is unable to establish selling price using VSOE or TPE, the Company uses ESP. The objective of ESP is to determine the price at which the Company would transact a sale if these items were sold on a standalone basis. In determining ESP, the Company uses the cost to provide the new product, installation or professional service plus a margin. When using cost plus a margin, the Company considers the total cost of the item to establish strategic partner pricing. The Company also considers the historical margins for established products and other factors, including any changes to pricing methodologies, competitiveness of new products, installation and professional services, pricing pressures due to entering a new market, and cost drivers that could cause future margins to differ from historical margins. The Company determines VSOE for established products and PCS service based on the price charged to customers when sold separately. PCS service revenue is recognized under a proportional performance method, ratably over the life of the contract.
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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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,
Revenue Stream Sale [Policy Text Block]	October 30, 2015, we entered into an agreement with TQ Zeta LLC, an affiliate of Techquity, and Intrepidus Holdings LLC (collectively, “Techquity”), in which Techquity will share in the revenue generated from the ‘972 patent litigation. For consideration of $ 10.0 52 20 40 20 100 12 2.7 1.1 3.8 The Company will recognize other income from this transaction as the authorized expenditures are made with the unspent balance being reflected as deferred revenue
Standard Product Warranty, Policy [Policy Text Block]	Warranty Generally, the Company indemnifies, under pre-determined conditions and limitations, its customers for infringement of third-party intellectual property rights by its products or services. The Company seeks to limit its liability for such indemnity to an amount not to exceed the sales price of the products or services. The Company does not believe, based on information available, that it is probable that any material amounts will be paid under these guarantees. The Company provides for the estimated cost to repair or replace products under warranty and technical support costs when the related product revenue is recognized. The Company warrants products for a period from 12 to 39 months following the sale of its products. A reserve for warranty costs is recorded based upon the historical level of warranty claims and management’s estimate of future costs.
Income Tax, Policy [Policy Text Block]	Income Taxes The Company accounts for income taxes in accordance with the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates that are expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be realized or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company has provided a full valuation allowance against its deferred tax assets because the realization of the related tax benefits is not considered more likely than not. The Company recognizes the tax benefit from an uncertain tax position only if it meets the “more likely than not” threshold that the position will be sustained upon examination by the taxing authority, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company includes interest and penalties related to its uncertain tax positions, if any, as part of income tax expense within its consolidated statement of operations (Note 11).
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 14,278,480 11,848,928 7,375,327 2,791,257 4,111,896 Net loss available to common stockholders is calculated by deducting from net income, preferred dividends paid and accrued of $ 0.5
Advertising Costs, Policy [Policy Text Block]	Advertising Costs The Company expenses all advertising costs as incurred. Advertising costs for the years ended October 31, 2015 and 2014 were not material.
Research and Development Expense, Policy [Policy Text Block]	Research and Development Costs Expenditures relating to the development of new products are expensed as incurred. These costs include expenditures for employee compensation, materials used in the development effort, other internal costs, as well as expenditures for third party professional services. Software development costs incurred after a product has reached marketability have not been material to date.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Stock-based Compensation Stock-based compensation expense is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite employee service period (generally the vesting period), net of estimated forfeitures. The Company estimates the fair value of stock-based payments using the Black-Scholes option-pricing model, which requires a number of assumptions to determine the model inputs. The estimation of stock-based awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company’s current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class and historical experience. Additionally, the fair value of stock-based awards to non-employees are expensed over the period in which the related services are rendered. All stock-based awards are expected to be fulfilled with new shares of common stock.
Foreign Currency Transactions and Translations Policy [Policy Text Block]	Foreign Currency Translation The Company's wholly-owned subsidiary outside the United States (“U.S.”), Crossroads Europe, GmbH, has a functional currency other than the U.S. dollar. Accordingly, all balance sheet accounts of this subsidiary are translated into U.S. dollars using the current exchange rate in effect at the balance sheet date, and revenues and expenses are translated using the average exchange rate in effect during the period. The gains and losses from foreign currency translation of this subsidiary’s financial statements are recorded directly as a separate component of stockholders' equity and represent all of the balance under the caption "Accumulated other comprehensive loss." Net income recorded by Crossroads Europe, GmbH, was approximately $ 0.1 5 7
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

INVENTORY (Tables)

INVENTORY (Tables)	12 Months Ended
	Oct. 31, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventory, net consists of the following (in thousands): October 31, October 31, 2015 2014 Raw materials $ 200 $ 186 Finished goods 237 171 $ 437 $ 357

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Oct. 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): October 31, October 31, 2015 2014 Life (years) Equipment 1-3 $ 16,737 $ 16,635 Furniture and fixtures 5 633 634 Leasehold improvements 5 934 576 18,304 17,845 Less: Accumulated depreciation (17,771) (17,405) $ 533 $ 440

ACCRUED EXPENSES AND DEFERRED27

ACCRUED EXPENSES AND DEFERRED REVENUE (Tables)	12 Months Ended
	Oct. 31, 2015
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities [Table Text Block]	Accrued expenses consist of the following (in thousands): October 31, October 31, 2015 2014 Professional services $ 837 $ 394 Payroll related 657 846 Deferred rent 184 - Warranty reserve 5 48 Other 116 109 $ 1,799 $ 1,397
Schedule of Product Warranty Liability [Table Text Block]	Warranty reserve activity, included in accrued expenses, during the years ended October 31, 2014 and 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 Year ended October 31, 2015 Warranty reserve $ 48 $ 44 $ (87) $ 5
Deferred Revenue, by Arrangement, Disclosure [Table Text Block]	Deferred revenue, current portion, consists of the following (in thousands): October 31, October 31, 2015 2014 Product $ 135 $ - Services 891 1,032 Deferred revenue stream sale 6,208 - $ 7,234 $ 1,032

CONCENTRATIONS (Tables)

CONCENTRATIONS (Tables)	12 Months Ended
	Oct. 31, 2015
Sales Revenue, Goods, Net [Member]
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	The percentage of sales to significant customers was as follows: October 31, 2015 2014 Customer A 37.2 % 36.6 % Customer B 9.0 % 7.7 % Customer C 7.9 % 8.4 %
Accounts Receivable [Member]
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	The percentage of accounts receivable, net from significant customers was as follows: October 31, 2015 2014 Customer A 42.1 % 47.6 % Customer B 37.1 % 4.2 % Customer C 0.0 % 13.0 %

LINE OF CREDIT AND LONG TERM 29

LINE OF CREDIT AND LONG TERM LIABILITIES (Tables)	12 Months Ended
	Oct. 31, 2015
Debt Disclosure [Abstract]
Schedule of Debt [Table Text Block]	Principal paydown $ 2,402 Accrued Interest 24 Agreement termination fee 280 $ 2,706
Schedule of Long-term Debt Instruments [Table Text Block]	The principal balance and carrying value to Fortress is as follows (in thousands): October 31, October 31, 2015 2014 Principal balance Fortress Term Loans $ - $ 5,327 Unaccreted debt discount - (516) Net carrying value due Fortress - 4,811 Less current portion - (3,160) Long term portion $ - $ 1,651

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Oct. 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 October 31, 2015: Warrant Transaction Warrants Weighted 2013 Private Placement 2,439,585 $ 2.00 2013 Fortress Credit Agreement 1,748,218 $ 2.06 2014 Private Placement 1,193,860 $ 2.45 2015 Common Stock Offering 1,993,664 $ 2.76 Total Warrants 7,375,327

STOCK OPTIONS AND STOCK BASED31

STOCK OPTIONS AND STOCK BASED COMPENSATION (Tables)	12 Months Ended
	Oct. 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: Year ended October 31, 2015 2014 Cost of revenue $ 16 $ 36 Sales and marketing 128 369 Research and development 184 541 General and administrative 704 643 Total stock-based compensation $ 1,032 $ 1,589
Variables Used In Black Sholes Calculation [Table Text Block]	The variables used in the Black-Scholes calculation are listed below for the respective periods: Year ended October 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 years ended October 31, 2015 and 2014: Number of Weighted Weighted Average Aggregate Outstanding at October 31, 2013 3,320,910 $ 2.71 6.43 $ - Granted 775,889 $ 1.98 Forfeited (602,659) $ 4.52 Exercised (390,073) $ 1.52 Outstanding and expected to vest at October 31, 2014 3,104,067 $ 2.32 7.54 $ 2.4 Granted 1,313,406 $ 1.68 Forfeited (180,430) $ 3.08 Exercised (125,147) $ 1.08 Outstanding and expected to vest at October 31, 2015 4,111,896 $ 1.86 7.26 $ 0.2 Exercisable at October 31, 2015 3,289,979 $ 1.88 6.7 $ 0.2
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 October 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 $ 0.53 $ 1.10 553,766 7.76 $ 0.95 497,230 $ 0.93 $ 1.23 $ 1.28 544,625 8.03 $ 1.28 544,625 $ 1.28 $ 1.28 $ 1.34 556,013 7.41 $ 1.32 275,513 $ 1.30 $ 1.34 $ 1.70 153,436 5.53 $ 1.48 101,544 $ 1.51 $ 1.70 $ 1.75 981,752 7.62 $ 1.75 981,752 $ 1.75 $ 1.75 $ 2.28 561,142 8.57 $ 2.08 220,304 $ 2.07 $ 2.28 $ 5.99 761,162 5.13 $ 3.37 669,011 $ 3.52 $ 0.53 $ 5.99 4,111,896 7.26 $ 1.86 3,289,979 $ 1.88

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Oct. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	The provision for income taxes due to continuing operations differs from the amount computed by applying the federal statutory rate of 35 Years Ended October 31, 2015 2014 Federal tax benefit at statutory rate $ (3,164) $ (3,229) State income tax, net of federal tax benefit (116) (119) Effect of foreign operations (3) (4) Research and experimentation credit (19) (19) Stock based compensation 255 2,532 Derivative Liability - 1,003 Expiration of tax attributes 105 1,169 Permanent differences and other (54) (43) Change in valuation allowance 2,996 (1,290) Tax benefit $ - $ -
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	Significant components of the Company’s deferred taxes at October 31, 2015 and 2014 are as follows (in thousands): Years Ended October 31, 2015 2014 Deferred Tax Assets: Short term: Inventory and other reserves $ 2,827 $ 709 Long term: Net operating losses 48,991 47,823 Research and experimentation credits 5,172 5,198 Basis of property and equipment 336 237 Deferred stock compensation 611 561 Other (67) 345 Long term deferred tax assets 55,043 54,164 Total deferred tax assets 57,870 54,873 Deferred Tax Liabilities: Basis of property and equipment - - Deferred tax liabilities - - Valuation allowance (57,870) (54,873) Net deferred tax asset $ - $ -

ORGANIZATION AND BASIS OF PRE33

ORGANIZATION AND BASIS OF PRESENTATION (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount	14,278,480	11,848,928
Preferred Stock Dividends, Paid and Accrued	$ 500
Cash, Uninsured Amount	11,100
Income (Loss) from Subsidiaries, Net of Tax, Total	$ 100
Percentage Of Total Assets	5.00%	7.00%
Restricted Cash and Cash Equivalents	$ 6,478	$ 270
Restricted Investments	6,200
Cash Collateral for Borrowed Securities	$ 300
Sale Of Intangible Assets, Percentage Of Patent Licenses Issued In First Issue	52.00%
Sale Of Intangible Assets, Maximum Amount Of Patent Licenses Issued In First Issue	$ 20,000
Sale Of Intangible Assets, Percentage Of Patent Licenses Issued In Second Issue	40.00%
Sale Of Intangible Assets, Minimum Amount Of Patent Licenses Issued In Second Issue	$ 20,000
Sale Of Intangible Assets, Maximum Amount Of Patent Licenses Issued In Second Issue	$ 100,000
Sale Of Intangible Assets, Percentage Of Patent Licenses Issued In Third Issue	12.00%
Payment for Fortress Debt	$ 2,700
Legal Fees	1,100
Other Income	3,800
972 Patents [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Proceeds from Sale of Intangible Assets	$ 10,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount	7,375,327
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	2,791,257
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	4,111,896

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014
Inventory [Line Items]
Raw materials	$ 200	$ 186
Finished goods	237	171
Inventory, Net	$ 437	$ 357

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Property, Plant and Equipment [Line Items]
Equipment	$ 16,737	$ 16,635
Furniture and fixtures	633	634
Leasehold improvements	934	576
Property, Plant and Equipment, Gross	18,304	17,845
Less: Accumulated depreciation	(17,771)	(17,405)
Property Plant And Equipment Net	$ 533	$ 440
Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	1 year
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 (Detai36

PROPERTY AND EQUIPMENT (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Property, Plant and Equipment [Line Items]
Depreciation	$ 374	$ 631

ACCRUED EXPENSES AND DEFERRED37

ACCRUED EXPENSES AND DEFERRED REVENUE (Details) - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Deferred Revenue Arrangement [Line Items]
Professional services	$ 837	$ 394
Payroll related	657	846
Deferred rent	184	0
Warranty reserve	5	48	$ 41
Other	116	109
Accrued Liabilities Current	$ 1,799	$ 1,397

ACCRUED EXPENSES AND DEFERRED38

ACCRUED EXPENSES AND DEFERRED REVENUE (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Oct. 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	44	31
Reserve Usage, Warranty reserve	(87)	(24)
Balance at End of Period, Warranty reserve	$ 5	$ 48

ACCRUED EXPENSES AND DEFERRED39

ACCRUED EXPENSES AND DEFERRED REVENUE (Details 2) - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 7,234	$ 1,032
Product [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue	135	0
Services [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue	891	1,032
Deferred revenue stream sale [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 6,208	$ 0

ACCRUED EXPENSES AND DEFERRED40

ACCRUED EXPENSES AND DEFERRED REVENUE (Details Textual) - USD ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Oct. 31, 2015	Oct. 31, 2014
Deferred Revenue Arrangement [Line Items]
Accrued Bonuses, Current			$ 415,000	$ 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
Scenario, Forecast [Member]
Deferred Revenue Arrangement [Line Items]
Accrued Bonuses, Current	$ 133,000
Stock Issued During Period, Value, Share-Based Compensation, Net Of Forfeitures	$ 133,000

CONCENTRATIONS (Details)

CONCENTRATIONS (Details) - Sales Revenue, Net [Member]	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Customer A [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	37.20%	36.60%
Customer B [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	9.00%	7.70%
Customer C [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	7.90%	8.40%

CONCENTRATIONS (Details 1)

CONCENTRATIONS (Details 1) - Accounts Receivable [Member]	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Customer A [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	42.10%	47.60%
Customer B [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	37.10%	4.20%
Customer C [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	0.00%	13.00%

LINE OF CREDIT AND LONG TERM 43

LINE OF CREDIT AND LONG TERM LIABILITIES (Details) - Fortress Credit Agreement [Member] $ in Thousands	12 Months Ended
	Oct. 31, 2015USD ($)
Debt Instrument [Line Items]
Principal paydown	$ 2,402
Accrued Interest	24
Agreement termination fee	280
Periodic Payment, Total	$ 2,706

LINE OF CREDIT AND LONG TERM 44

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

LINE OF CREDIT AND LONG TERM 45

LINE OF CREDIT AND LONG TERM LIABILITIES (Details Textual) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended
	Jul. 24, 2013	Oct. 31, 2015	Oct. 31, 2013	Jun. 23, 2015
Line of Credit Facility [Line Items]
Class of Warrant or Right, Outstanding		7,375,327
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 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
Term Loan B [Member]
Line of Credit Facility [Line Items]
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

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Textual)	12 Months Ended
	Oct. 31, 2015USD ($)ft²	Oct. 31, 2014USD ($)	May. 02, 2014ft²
Commitments And Contingencies [Line Items]
Operating Leases, Rent Expense, Net	$ 300,000	$ 400,000
Area of Land | ft²			16,200
Lease Commitment Value	245,000
Loss Contingency, Damages Sought, Value	$ 200,000,000
Lease Expiration Date	Mar. 31, 2020
Crossroads Headquarters [Member]
Commitments And Contingencies [Line Items]
Area of Land | ft²	37,800

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - $ / shares	Oct. 31, 2015	Jul. 22, 2013
Class of Warrant or Right [Line Items]
Warrants Outstanding	7,375,327
2013 Private Placement Warrant [Member]
Class of Warrant or Right [Line Items]
Warrants Outstanding	2,439,585
Weighted Average Exercise Price	$ 2
2013 Fortress Credit Agreement Warrant [Member]
Class of Warrant or Right [Line Items]
Warrants Outstanding	1,748,218	1,454,545
Weighted Average Exercise Price	$ 2.06
2014 Private Placement Warrant [Member]
Class of Warrant or Right [Line Items]
Warrants Outstanding	1,193,860
Weighted Average Exercise Price	$ 2.45
2015 Common Stock Offering [Member]
Class of Warrant or Right [Line Items]
Warrants Outstanding	1,993,664
Weighted Average Exercise Price	$ 2.76

STOCKHOLDERS' EQUITY (Details T

STOCKHOLDERS' EQUITY (Details Textual)	1 Months Ended						12 Months Ended
	Aug. 31, 2015$ / shares	Jul. 28, 2015USD ($)$ / sharesshares	Jan. 27, 2015USD ($)$ / sharesshares	Mar. 31, 2014USD ($)$ / sharesshares	Jul. 24, 2013$ / Unit	Mar. 22, 2013USD ($)$ / shares$ / Unitshares	Oct. 31, 2015USD ($)shares	Oct. 31, 2014USD ($)$ / sharesshares	Jul. 22, 2013USD ($)$ / sharesshares
Class of Stock [Line Items]
Payments of Stock Issuance Costs | $		$ 400,000
Common Stock, Shares, Issued (in shares)							24,182,524	15,831,810
Securities Purchase Agreement, Price Per Unit Of Units Issuable | $ / Unit						2.0625
Preferred Stock, Shares Authorized							25,000,000	25,000,000
Class of Warrant or Right, Outstanding							7,375,327
Common Stock, Shares Subscribed but Unissued		3,933,879
Common Stock, Value, Subscriptions | $		$ 4,900,000
Subscription Price Per Share | $ / shares		$ 1.25
Stockholders' Equity, Reverse Stock Split							1.2019:1
Common Stock [Member]
Class of Stock [Line Items]
Stock Issued During Period Shares New Issues One							3,933,879
Warrant Increased Strike Price Percentage		20.19%
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
Securities Purchase Agreement, Exercise Price Of Warrants Issued | $ / shares						$ 2
Warrants Convertible Beneficial Conversion Feature | $						$ 1,090,000		$ 224,099
Common Stock Dividends, Shares							152,046
Stock Issued During Period, Value, Stock Dividend | $							$ 296,000	$ 612,000
Fair Value of Warrant Liability | $						$ 1,543,000
Class of Warrant or Right, Outstanding							2,439,585
Accrued Liabilities for Commissions, Expense and Taxes | $							$ 100,000
2013 Fortress Credit Agreement Warrant [Member]
Class of Stock [Line Items]
Exercise Price Per Share Of Common Stock Issued By Conversion Of Warrants | $ / shares	$ 0.2019
Fair Value Of Warrants | $									$ 1,374,000
Securities Purchase Agreement, Price Per Unit Of Units Issuable | $ / Unit					2.0625
Fair Value Of Warrants, Per Share | $ / shares									$ 1.0625
Class of Warrant or Right, Outstanding							1,748,218		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	0.2019			$ 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							1,193,860
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	$ 0.2019		$ 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							1,993,664
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)							526,940
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 BASED49

STOCK OPTIONS AND STOCK BASED COMPENSATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 1,032	$ 1,589
Cost of revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	16	36
Sales and marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	128	369
Research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	184	541
General and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 704	$ 643

STOCK OPTIONS AND STOCK BASED50

STOCK OPTIONS AND STOCK BASED COMPENSATION (Details 1)	12 Months Ended
	Oct. 31, 2015	Oct. 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 BASED51

STOCK OPTIONS AND STOCK BASED COMPENSATION (Details 2) - USD ($)	12 Months Ended
	Oct. 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, 2013	3,104,067	3,320,910
Number of Shares, Granted	1,313,406	775,889
Number of Shares, Forfeited	(180,430)	(602,659)
Number of Shares, Exercised	(125,147)	(390,073)
Number of Shares, Outstanding and expected to vest at October 31, 2014	4,111,896	3,104,067
Number of Shares, Exercisable at October 31, 2015	3,289,979
Weighted Average Exercise Price, Outstanding and expected to vest at October 31, 2013 (in dollars per share)	$ 2.32	$ 2.71
Weighted Average Exercise Price, Granted (in dollars per share)	1.68	1.98
Weighted Average Exercise Price, Forfeited (in dollars per share)	3.08	4.52
Weighted Average Exercise Price, Exercised (in dollars per share)	1.08	1.52
Weighted Average Exercise Price, Outstanding and expected to vest at October 31, 2015 (in dollars per share)	1.86	$ 2.32
Weighted Average Exercise Price, Exercisable at October 31, 2015 (in dollars per share)	$ 1.88
Weighted Average Remaining Contractual Term, Outstanding and expected to vest at end of the period (in years)	7 years 3 months 4 days	6 years 5 months 5 days
Weighted Average Remaining Contractual Term, Exercisable at October 31, 2015 (in years)	6 years 8 months 12 days	7 years 6 months 14 days
Aggregate Intrinsic Value, Outstanding and expected to vest at October 31, 2014	$ 2,400,000	$ 0
Aggregate Intrinsic Value, Outstanding and expected to vest at October 31, 2015	200,000	$ 2,400,000
Aggregate Intrinsic Value, Exercisable at October 31, 2015 (in dollars)	$ 200,000

STOCK OPTIONS AND STOCK BASED52

STOCK OPTIONS AND STOCK BASED COMPENSATION (Details 3)	12 Months Ended
	Oct. 31, 2015$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit (in dollars per share)	$ 0.53
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 5.99
Options Outstanding, Shares Outstanding (in shares) | shares	4,111,896
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	7 years 3 months 4 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 1.86
Options Exercisable, Shares (in shares) | shares	3,289,979
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 1.88
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)	0.53
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 1.10
Options Outstanding, Shares Outstanding (in shares) | shares	553,766
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	7 years 9 months 4 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 0.95
Options Exercisable, Shares (in shares) | shares	497,230
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 0.93
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)	1.23
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 1.28
Options Outstanding, Shares Outstanding (in shares) | shares	544,625
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	8 years 11 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 1.28
Options Exercisable, Shares (in shares) | shares	544,625
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 1.28
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)	1.28
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 1.34
Options Outstanding, Shares Outstanding (in shares) | shares	556,013
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	7 years 4 months 28 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 1.32
Options Exercisable, Shares (in shares) | shares	275,513
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 1.30
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)	1.34
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 1.70
Options Outstanding, Shares Outstanding (in shares) | shares	153,436
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	5 years 6 months 11 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 1.48
Options Exercisable, Shares (in shares) | shares	101,544
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 1.51
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)	1.70
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 1.75
Options Outstanding, Shares Outstanding (in shares) | shares	981,752
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	7 years 7 months 13 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 1.75
Options Exercisable, Shares (in shares) | shares	981,752
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 1.75
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)	1.75
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 2.28
Options Outstanding, Shares Outstanding (in shares) | shares	561,142
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	8 years 6 months 25 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 2.08
Options Exercisable, Shares (in shares) | shares	220,304
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 2.07
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)	2.28
Range of Exercise Prices, Upper Limit (in dollars per share)	$ 5.99
Options Outstanding, Shares Outstanding (in shares) | shares	761,162
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	5 years 1 month 17 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.37
Options Exercisable, Shares (in shares) | shares	669,011
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.52

STOCK OPTIONS AND STOCK BASED53

STOCK OPTIONS AND STOCK BASED COMPENSATION (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
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)				4,111,896	3,104,067	3,320,910
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)				$ 1.10	$ 1.28
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value				$ 51,000	$ 413,000
Proceeds from Stock Options Exercised				$ 143,000	$ 591,000
Expected Weighted Average Period Of Recognition Of Compensation Cost Related To Stock Options To Employees and Non Employees				1 year 3 months 18 days
Stock Options Vested By Shares To Employees and Non Employees During Period				1,442,016	1,236,776
Stock Options Vested To Value Of Employees and Non Employees During Period				$ 1,700,000	$ 1,600,000
Number of Shares, Granted				1,313,406	775,889
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized				$ 900,000
Stock Issued During Period, Value, Share-Based Compensation, Net Of Forfeitures			$ 301,000
Allocated Share-based Compensation Expense				$ 1,032,000	$ 1,589,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period				125,147	390,073
Accrued Bonuses, Current				$ 415,000	$ 451,000
Scenario, Forecast [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock Issued During Period, Value, Share-Based Compensation, Net Of Forfeitures		$ 133,000
Accrued Bonuses, Current		$ 133,000
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)				366,425
Stock Options Authorized To Be Issued To Employees and Non Employees				4,111,896
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				3,289,979
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% quarterly thereafter until fully vested.
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period				526,741
Common Stock, Capital Shares Reserved for Future Issuance				563,616
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)				3,745,471
Stock Options Authorized To Be Issued To Employees and Non Employees				5,250,000
Number of Shares, Granted				5,304,943
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

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Federal tax benefit at statutory rate	$ (3,164)	$ (3,229)
State income tax, net of federal tax benefit	(116)	(119)
Effect of foreign operations	(3)	(4)
Research and experimentation credit	(19)	(19)
Stock based compensation	255	2,532
Derivative Liability	0	1,003
Expiration of tax attributes	105	1,169
Permanent differences and other	(54)	(43)
Change in valuation allowance	2,996	(1,290)
Tax benefit	$ 0	$ 0

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014
Deferred Tax Assets:
Inventory and other reserves	$ 2,827	$ 709
Net operating losses	48,991	47,823
Research and experimentation credits	5,172	5,198
Basis of property and equipment	336	237
Deferred stock compensation	611	561
Other	(67)	345
Long term deferred tax assets	55,043	54,164
Total deferred tax assets	57,870	54,873
Deferred Tax Liabilities:
Basis of property and equipment	0	0
Deferred tax liabilities	0	0
Valuation allowance	(57,870)	(54,873)
Net deferred tax asset	$ 0	$ 0

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%	35.00%
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$ 3	$ 1.3
Research Tax Credit Carryforward [Member]
Operating Loss Carryforwards	$ 5.2	5.2
Domestic Tax Authority [Member]
Operating Loss Carryforwards Expiration Dates1	2018 to 2035
Operating Loss Carryforwards	$ 132	128.5
Foreign Tax Authority [Member]
Operating Loss Carryforwards	$ 3.8	$ 3.9

EMPLOYEE BENEFITS (Details Text

EMPLOYEE BENEFITS (Details Textual) - USD ($)	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
401(k) Savings Plan [Member]
Defined Contribution Plan Disclosure [Line Items]
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 184,000	$ 184,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Textual) - USD ($)	1 Months Ended				3 Months Ended	12 Months Ended
	Aug. 31, 2015	Jul. 29, 2015	Jan. 27, 2015	Mar. 31, 2014	Jan. 31, 2014	Oct. 31, 2014	Jul. 28, 2015
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	$ 0.2019			$ 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	12 Months Ended
	Oct. 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

SCHEDULE II - VALUATION AND Q60

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Deducted from asset accounts:
Allowance for doubtful accounts, Balance at Beginning of Preiod	$ 151	$ 94
Allowance for doubtful accounts, Charged to Costs and Expenses	63	57
Allowance for doubtful accounts, Deductions	(210)	0
Allowance for doubtful accounts, Balance at End of Period	$ 4	$ 151