Pharma-Bio Serv (PBSV) 10-K 31 Jan 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Oct. 31, 2016	Jan. 26, 2017	Apr. 29, 2016
Document And Entity Information
Entity Registrant Name	Pharma-Bio Serv, Inc.
Entity Central Index Key	1,304,161
Document Type	10-K
Document Period End Date	Oct. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 11,110,356
Entity Common Stock, Shares Outstanding		23,113,531
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Oct. 31, 2016	Oct. 31, 2015
Current assets
Cash and cash equivalents	$ 13,773,582	$ 14,893,387
Marketable securities	20,283	33,429
Accounts receivable	6,853,123	7,447,984
Other	981,105	891,905
Total current assets	21,628,093	23,266,705
Property and equipment	2,334,029	853,945
Other assets	35,579	18,256
Total assets	23,997,701	24,138,906
Current liabilities
Current portion-obligations under capital leases	22,950	22,784
Accounts payable and accrued expenses	2,090,818	2,061,889
Income taxes payable	44,770	39,177
Total current liabilities	2,158,538	2,123,850
Obligations under capital leases	29,002	51,952
Total liabilities	2,187,540	2,175,802
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value; authorized 10,000,000 shares; none issued or outstanding	0	0
Common stock, $0.0001 par value; authorized 50,000,000 shares; 23,226,268 and 23,185,975 shares issued, and 23,009,316 and 23,020,451 shares outstanding at October 31, 2016 and 2015, respectively	2,323	2,319
Additional paid-in capital	1,231,439	1,142,555
Retained earnings	20,975,050	21,231,629
Accumulated other comprehensive loss	(165,915)	(226,580)
Stockholders' equity before treasury stock	22,042,897	22,149,923
Treasury stock, at cost; 216,952 and 165,524 common shares held at October 31, 2016 and 2015, respectively	(232,736)	(186,819)
Total stockholders' equity	21,810,161	21,963,104
Total liabilities and stockholders' equity	$ 23,997,701	$ 24,138,906

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Oct. 31, 2016	Oct. 31, 2015
Stockholders' equity:
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, Authorized	10,000,000	10,000,000
Preferred stock, outstanding	0	0
Preferred stock, issued	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, Authorized	50,000,000	50,000,000
Common stock, Issued	23,226,268	23,185,975
Common stock, outstanding	23,009,316	23,020,451
Treasury stock	216,952	165,524

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Income Statement [Abstract]
REVENUES	$ 19,536,715	$ 23,384,861
COST OF SERVICES	13,753,483	15,900,406
GROSS PROFIT	5,783,232	7,484,455
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	5,874,991	5,703,111
INCOME (LOSS) FROM OPERATIONS	(91,759)	1,781,344
OTHER-THAN-TEMPORARY IMPAIRMENT ON AVAILABLE-FOR-SALE SECURITIES	(55,000)	0
OTHER INCOME (EXPENSE), NET	(56,982)	11,464
INCOME BEFORE INCOME TAXES	(203,741)	1,792,808
INCOME TAXES	52,834	167,982
NET INCOME (LOSS)	$ (256,575)	$ 1,624,826
BASIC EARNINGS PER COMMON SHARE	$ (0.011)	$ 0.07
DILUTED EARNINGS PER COMMON SHARE	$ (0.011)	$ 0.069
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC	23,015,522	23,069,817
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED	23,185,951	23,400,086

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Consolidated Statements Of Comprehensive Income
NET INCOME (LOSS)	$ (256,575)	$ 1,624,826
OTHER COMPREHENSIVE INCOME (LOSS), NET OF RECLASSIFICATION ADJUSTMENTS AND TAXES:
Foreign currency translation gain (loss)	18,811	(56,424)
Net unrealized losses on available-for-sale securities	(13,146)	(34,448)
Other-than-temporary impairment on available-for-sale securities included in net income	55,000	0
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	60,665	(90,872)
COMPREHENSIVE INCOME (LOSS)	$ (195,910)	$ 1,533,954

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Common Stock	Preferred Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Total
Beginning Balance - Shares at Oct. 31, 2014	23,049,462	0
Beginning Balance - Amount at Oct. 31, 2014	$ 2,305	$ 0	$ 1,055,436	$ 19,606,817	$ (135,708)	$ (18,089)	$ 20,510,761
Stock-based compensation			87,119				87,119
Issuance Of Common Stock Pursuant To The Cashless Exercise Of Stock Options, Shares	120,066
Issuance Of Common Stock Pursuant To The Cashless Exercise Of Stock Options, Amount	$ 12			(12)			0
Issuance Of Common Stock Pursuant To Restricted Stock Agreements With Employees, Shares	16,447
Issuance Of Common Stock Pursuant To Restricted Stock Agreements With Employees, Amount	$ 2			(2)			0
Purchase of treasury stock						(168,730)	(168,730)
NET INCOME (LOSS)				1,624,826			1,624,826
Other Comprehensive Income (Loss), Net Of Tax					(90,872)		(90,872)
Ending Balance, Shares at Oct. 31, 2015	23,185,975	0
Ending Balance, Amount at Oct. 31, 2015	$ 2,319	$ 0	1,142,555	21,231,629	(226,580)	(186,819)	21,963,104
Stock-based compensation			88,884				88,884
Issuance Of Common Stock Pursuant To The Cashless Exercise Of Stock Options, Shares	23,846
Issuance Of Common Stock Pursuant To The Cashless Exercise Of Stock Options, Amount	$ 2			(2)			0
Issuance Of Common Stock Pursuant To Restricted Stock Agreements With Employees, Shares	16,447
Issuance Of Common Stock Pursuant To Restricted Stock Agreements With Employees, Amount	$ 2			(2)			0
Purchase of treasury stock						(45,917)	(45,917)
NET INCOME (LOSS)				(256,575)			(256,575)
Other Comprehensive Income (Loss), Net Of Tax					60,665		60,665
Ending Balance, Shares at Oct. 31, 2016	23,226,268	0
Ending Balance, Amount at Oct. 31, 2016	$ 2,323	$ 0	$ 1,231,439	$ 20,975,050	$ (165,915)	$ (232,736)	$ 21,810,161

Consolidated Statements of Cha7

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - shares	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Consolidated Statements Of Changes In Stockholders Equity Parenthetical
Purchase of treasury stocks	51,428	149,974

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (256,575)	$ 1,624,826
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Gain on disposition of property and equipment	(13,635)	0
Stock-based compensation	88,884	87,119
Depreciation and amortization	312,558	357,460
Other-than-temporary impairment on available-for-sale securities	55,000	0
(Increase) decrease in accounts receivable	647,282	(1,067,445)
Increase in other assets	(107,967)	(115,861)
Decrease in liabilities	(15,894)	(513,492)
NET CASH PROVIDED BY OPERATING ACTIVITIES	709,653	372,607
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(1,808,632)	(342,364)
Proceeds from disposition of property and equipment	29,625	0
NET CASH USED IN INVESTING ACTIVITIES	(1,779,007)	(342,364)
CASH FLOW FROM FINANCING ACTIVITIES:
Repurchase of common stock	(45,917)	(168,730)
Payments on obligations under capital lease	(22,784)	(21,994)
NET CASH USED IN FINANCING ACTIVITIES	(68,701)	(190,724)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	18,250	(34,202)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,119,805)	(194,683)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR	14,893,387	15,088,070
CASH AND CASH EQUIVALENTS - END OF YEAR	13,773,582	14,893,387
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Income taxes	39,075	151,932
Interest	3,430	4,856
SUPPLEMENTARY SCHEDULES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property and equipment with accumulated depreciation of $167,061 and $770,267 disposed during the years ended October 31, 2016 and 2015, respectively.	183,051	770,267
Income tax withheld by clients to be used as a credit in the Company's income tax returns	46,124	35,586
Conversion of cashless exercise of options to shares of common stock	$ 4	$ 14

Consolidated Statements of Cas9

Consolidated Statements of Cash Flows (Parenthetical) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Statement of Cash Flows [Abstract]
Accumulated depreciation on property and equipment disposed during the years ended October 31, 2016 and 2015, respectively	$ 167,061	$ 770,267

A. ORGANIZATION AND SUMMARY OF

A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Oct. 31, 2016
A. Organization And Summary Of Significant Accounting Policies
A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Pharma-Bio Serv, Inc. (“Pharma-Bio”) is a Delaware corporation organized on January 14, 2004. Pharma-Bio is the parent company of Pharma-Bio Serv PR, Inc. (“Pharma-PR”), Pharma Serv, Inc. (“Pharma-Serv”), Scienza Labs, Inc., the three of them Puerto Rico corporations, Pharma-Bio Serv US, Inc. (“Pharma-US”), a Delaware corporation, Pharma-Bio Serv Validation & Compliance Limited (“Pharma-IR”), an Irish corporation, Pharma-Bio Serv SL (“Pharma-Spain”), a Spanish limited liability company, and Pharma-Bio Serv Brasil Servicos de Consultoria Ltda. (“Pharma-Brazil”), a Brazilian limited liability company. Pharma-Bio, Pharma-PR, Pharma-Serv, Pharma-US, Pharma-IR, Pharma-Spain and Pharma-Brazil are collectively referred to as the “Company.” The Company operates in Puerto Rico, the United States, Ireland, Spain and Brazil under the name of Pharma-Bio Serv and is engaged in providing technical compliance consulting service, and microbiological and chemical laboratory testing. Scienza Labs is a wholly owned subsidiary, which was organized in Puerto Rico in April 2016. As of October 31, 2016, this subsidiary was in development stage and has not incurred significant revenues or expenses. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation The accompanying consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from these estimates. Fair Value of Financial Instruments Accounting standards have established a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting standards have established three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets and liabilities. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Marketable securities available-for-sale consist of U.S. Treasury securities and an obligation from the Puerto Rico Government Development Bank valued using quoted market prices in active markets. Accordingly, these securities are categorized in Level 1. The carrying value of the Company's financial instruments (excluding marketable securities and obligations under capital leases): cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, are considered reasonable estimates of fair value due to their liquidity or short-term nature. Management believes, based on current rates, that the fair value of its obligations under capital leases approximates the carrying amount. Revenue Recognition Revenue is primarily derived from: (1) time and materials contracts (representing approximately 86% of total revenues), which is recognized by applying the proportional performance model, whereby revenue is recognized as performance occurs, (2) short-term fixed-fee contracts or "not to exceed" contracts (representing approximately 1% of total revenues), which revenue is recognized similarly, except that certain milestones also have to be reached before revenue is recognized, and (3) laboratory testing revenue (representing approximately 13% of total revenues), which is mainly recognized as the testing is completed and certified (normally within days of sample receipt from customer). If the Company determines that a contract will result in a loss, the Company recognizes the estimated loss in the period in which such determination is made. Cash Equivalents For purposes of the consolidated statements of cash flows, cash equivalents include investments in money market obligation’s trusts that are registered under the U.S. Investment Company Act of 1940 and liquid investments with original maturities of three months or less. Marketable Securities We consider our marketable security investment portfolio and marketable equity investments as available-for-sale and, accordingly, these investments are recorded at fair value with unrealized gains and losses generally recorded in other comprehensive income; whereas realized gains and losses are included in earnings and determined based on the specific identification method. We review our available-for-sale securities for other-than-temporary declines in fair value below their cost basis on a quarterly basis and whenever events or changes in circumstances indicate that the cost basis of an asset may not be recoverable. This evaluation is based on a number of factors including, the length of time and extent to which the fair value has been less than our cost basis and adverse conditions specifically related to the security including any changes to the rating of the security by a rating agency. Accounts Receivable Accounts receivable are recorded at their estimated realizable value. Accounts are deemed past due when payment has not been received within the stated time period. The Company's policy is to review individual past due amounts periodically and write off amounts for which all collection efforts are deemed to have been exhausted. Due to the nature of the Company’s customers, bad debts are mainly accounted for using the direct write-off method whereby an expense is recognized only when a specific account is determined to be uncollectible. The effect of using this method approximates that of the allowance method. Income Taxes The Company follows an asset and liability approach method of accounting for income taxes. This method measures deferred income taxes by applying enacted statutory rates in effect at the balance sheet date to the differences between the tax basis of assets and liabilities and their reported amounts on the financial statements. The resulting deferred tax assets or liabilities are adjusted to reflect changes in tax laws as they occur. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized. The Company follows guidance from the Financial Accounting Standards Board (“FASB”) related to Accounting for Uncertainty in Income Taxes, Property and Equipment Owned property and equipment, and leasehold improvements are stated at cost. Vehicles under capital leases are stated at the lower of fair market value or net present value of the minimum lease payments at the inception of the leases. Depreciation and amortization of owned assets are provided for, when placed in service, in amount sufficient to relate the cost of depreciable assets to operations over their estimated service lives, using straight-line basis. Assets under capital leases and leasehold improvements are amortized, over the shorter of the estimated useful lives of the assets or initial lease term. Major renewals and betterments that extend the life of the assets are capitalized, while expenditures for repairs and maintenance are expensed when incurred. The Company evaluates for impairment its long-lived assets to be held and used, and long-lived assets to be disposed of, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Stock-based Compensation Stock-based compensation expense is recognized in the consolidated financial statements based on the fair value of the awards granted. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which generally represents the vesting period, and includes an estimate of awards that will be forfeited. The Company calculates the fair value of stock options using the Black-Scholes option-pricing model at grant date, while for restricted stock units the fair market value of the units is determined by Company’s share market value at grant date. Excess tax benefits related to stock-based compensation are reflected as cash flows from financing activities rather than cash flows from operating activities. However, the Company has not recognized such cash flow from financing activities since there has been no tax benefit related to the stock-based compensation. Income Per Share of Common Stock Basic income per share of common stock is calculated dividing net income by the weighted average number of shares of common stock outstanding. Diluted income per share includes the dilution of common stock equivalents. The diluted weighted average shares of common stock outstanding were calculated using the treasury stock method for the respective periods. Foreign Operations The functional currency of the Company’s foreign subsidiaries are their respective local currencies. The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense items are translated at the average exchange rates prevailing during the period. The cumulative translation effect for subsidiaries using a functional currency other than the U.S. dollar is included as a cumulative translation adjustment in stockholders’ equity and as a component of comprehensive income. The Company’s intercompany accounts are typically denominated in the functional currency of the foreign subsidiary. Gains and losses resulting from the remeasurement of intercompany receivables that the Company considers to be of a long-term investment nature are recorded as a cumulative translation adjustment in stockholders’ equity and as a component of comprehensive income, while gains and losses resulting from the remeasurement of intercompany receivables from those international subsidiaries for which the Company anticipates settlement in the foreseeable future are recorded in the consolidated statements of operations. The net gains and losses recorded in the consolidated statements of income were not significant for the periods presented. Subsequent Events The Company has evaluated subsequent events to the date of the audit report. The Company has determined that there are no events occurring in this period that required disclosure or adjustment, except as disclosed in the accompanying consolidated financial statements. Reclassifications Certain reclassifications have been made to the October 31, 2015 consolidated financial statements to conform them to the October 31, 2016 consolidated financial statements presentation. Such reclassifications do not have effect on net income as previously reported. Recent Accounting Pronouncements In May 2014, a new accounting standard was issued that amends the guidance for the recognition of revenue from contracts with customers to transfer goods and services. This new standard will be effective for interim and annual periods beginning after December 15, 2017, including interim periods within the reporting period, reporting is required to be adopted prospectively and early adoption is not permitted. We are currently evaluating the provisions of this new standard and have not yet determined what impact it will have on our financial statements, if any.

B. MARKETABLE SECURITIES AVAILA

B. MARKETABLE SECURITIES AVAILABLE FOR SALE	12 Months Ended
	Oct. 31, 2016
Text Block [Abstract]
B. MARKETABLE SECURITIES AVAILABLE FOR SALE	The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale securities by type of security were as follows as of October 31, 2016 and 2015: Type of security as of October 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury securities $ 4,500,000 $ — $ — $ 4,500,000 Other government-related debt securities: Puerto Rico Commonwealth Government Development Bond 40,000 — (19,717 ) 20,283 Total interest-bearing and available-for-sale securities $ 4,540,000 $ — $ (19,717 ) $ 4,520,283 Type of security as of October 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury securities $ 4,500,000 $ — $ — $ 4,500,000 Other government-related debt securities: Puerto Rico Commonwealth Government Development Bond 95,000 — (61,571 ) 33,429 Total interest-bearing and available-for-sale securities $ 4,595,000 $ — $ (61,571 ) $ 4,533,429 At October 31, 2016 and 2015, the above marketable securities includes a $95,000 5.4% Puerto Rico Commonwealth Government Development Bank Bond, purchased at par and maturing in August 2019. During the fiscal year ended October 31, 2016, the Company determined that an other-than-temporary impairment of $55,000 occurred for this bond. Accordingly, the credit loss of $55,000 was recognized on earnings. The fair values of available-for-sale securities by classification in the Consolidated Balance Sheets were as follows as of October 31, 2016 and 2015: Classification in the Consolidated Balance Sheets 2016 2015 Cash and cash equivalents $ 4,500,000 $ 4,500,000 Marketable securities 20,283 33,429 Total available-for-sale securities $ 4,520,283 $ 4,533,429 Cash and cash equivalents in the table above exclude cash in banks of approximately $9.3 million and $10.4 million as of October 31, 2016 and 2015, respectively. The primary objectives of the Company’s investment portfolio are liquidity and safety of principal. Investments are made with the objective of achieving the highest rate of return consistent with these two objectives. Our investment policy limits investments to certain types of debt and money market instruments issued by institutions primarily with investment grade credit ratings and places restrictions on maturities and concentration by type and issuer.

C. PROPERTY AND EQUIPMENT

C. PROPERTY AND EQUIPMENT	12 Months Ended
	Oct. 31, 2016
Property, Plant and Equipment [Abstract]
C. PROPERTY AND EQUIPMENT	The balance of property and equipment at October 31, 2016 and 2015 consisted of the following: October 31, Useful life (years) 2016 2015 Vehicles 5 $ 256,677 $ 250,068 Leasehold improvements 5-8 674,625 647,713 Computers 3 314,380 274,063 Equipment 3-7 1,858,295 1,196,953 Furniture and fixtures 10 82,240 82,256 Projects in process - 1,084,511 194,094 Total 4,270,728 2,645,147 Less: Accumulated depreciation and amortization (1,936,6 99 ) (1,791,202 ) Property and equipment, net $ 2,334,029 $ 853,945

D. INCOME TAXES

D. INCOME TAXES	12 Months Ended
	Oct. 31, 2016
Income Tax Disclosure [Abstract]
D. INCOME TAXES	In June 2011, Pharma-Bio, Pharma-PR and Pharma-Serv obtained a Grant of Industrial Tax Exemption pursuant to the terms and conditions set forth in Act No. 73 of May 28, 2008 (“the Grant”) issued by the Puerto Rico Industrial Development Company (“PRIDCO”). The Grant was effective as of November 1, 2009 and covers a fifteen-year period. The Grant provides relief on various Puerto Rico taxes, including income tax, with certain limitations, for most of the activities carried on within Puerto Rico, including those that are for services to parties located outside of Puerto Rico. Industrial Development Income (“IDI”) covered under the Grant are subject to a fixed income tax rate of 4%. In addition, IDI earnings distributions accumulated since November 1, 2009 are totally exempt from Puerto Rico earnings distribution tax. For the years ended October 31, 2016 and 2015, the favorable consolidated net income aggregate dollar and weighted average earnings per share-basic effects of the Grant were approximately $344,000 and $852,000, and $0.015 and $0.037, respectively. Puerto Rico operations not covered in the exempt activities of the Grant are subject to Puerto Rico income tax at a maximum tax rate of 39% as provided by the 1994 Puerto Rico Internal Revenue Code, as amended. The operations carried out in the United States by the Company’s subsidiary are taxed in the United States at a maximum regular federal income tax rate of 35%. Distribution of earnings by the Puerto Rican subsidiaries to its parent are taxed at the federal level; however, the parent is able to receive a credit for the taxes paid by the subsidiary on its operations in Puerto Rico, to the extent of the federal taxes that result from those earnings. As a result, the income tax expense of the Company, under its present corporate structure, would normally be the Puerto Rico taxes on operations in Puerto Rico, federal and state taxes on operations in the United States, plus the earnings distribution tax in Puerto Rico from dividends paid to the Puerto Rican subsidiaries’ parent, and the parent’s federal income tax, if any, incurred upon the subsidiary’s earnings distribution. The reconciliation between the United States federal statutory rate and our effective tax rate for the years ended October 31, 2016, and 2015 is as follows: October 31, 2016 2015 United States federal statutory rate 35.0 % 35.0 % Puerto Rico Act 73 Tax Grant effect, including net foreign earnings invested indefinitely, net (26.6 )% (26.7 )% Other, including United States loss position for which the resulting deferred tax asset has been allowed, net (34.3 )% 1.1 % Effective tax rate (25.9 )% 9.4 % As of October 31, 2016 and 2015, the Company has not recognized deferred income taxes on $20.2 million and $19.2 million of undistributed earnings of its Puerto Rican subsidiaries, respectively, since such earnings are considered to be reinvested indefinitely. If the earnings were distributed in the form of dividends to the Company, the Company would be subject to Puerto Rico earnings distribution tax and United States federal income tax for the aggregate amount of approximately $4.6 million and $4.3 million at October 31, 2016 and 2015, respectively. At October 31, 2016, Pharma-Spain, Pharma-IR, and Pharma-Bio/Pharma-US have unused operating losses of approximately $957,000, $1,077,000 and $1,126,000, respectively. These net operating losses are available to offset future taxable income until October 31, 2028, 2029, 2030 and 2031 for the aggregate amounts of $178,000, 332,000, $266,000 and $181,000, respectively for Pharma-Spain, indefinitely for Pharma-IR, and until October 31, 2035 and 2036 for the aggregate amounts of $292,000 and $834,000, respectively for Pharma-Bio/Pharma-US. After considering various timing differences for income tax purposes, these unused operating losses result in a potential deferred tax asset for Pharma-Spain, Pharma-IR and Pharma-Bio of approximately $191,000, $135,000 and $394,000, respectively. However, an allowance has been provided covering the total amount of such balance since it is uncertain whether the net operating losses can be used to offset future taxable income. Realization of future tax benefits related to a deferred tax asset is dependent on many factors, including the company’s ability to generate taxable income. Accordingly, the income tax benefit will be recognized when realization is determined to be more probable than not. The Company files income tax returns in the United States (federal and various states jurisdictions), Puerto Rico, Ireland, Spain and Brazil. The 2012 (2011 for Puerto Rico) through 2015 tax years are open and may be subject to potential examination in one or more jurisdictions. Currently, the Company is currently not subject to a federal, state, Puerto Rico or foreign income tax examination.

E. COMMITMENTS AND CONTINGENCIE

E. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Oct. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
E. COMMITMENTS AND CONTINGENCIES	Capitalized lease obligations The following is a schedule, by year, of future minimum lease payments under the capitalized leases together with the present value of the net minimum lease payments at October 31, 2016: Twelve months ending October 31, Amount 2017 $ 24,961 2018 18,697 2019 11,232 Total future minimum lease payments 54,890 Less: Amount of imputed interest ( 2,938 ) Present value of future minimum lease payments 51,952 Current portion of obligation under capital leases (22,950 ) Long-term portion $ 29,002 Operating facilities In July 2016, with effective date January 1st, 2016, the Company renegotiated a lease agreement with an affiliate of our Chairman of the Board, for the headquarters and laboratory testing facilities in Dorado, Puerto Rico. The renegotiated lease incorporates additional space for the laboratory testing facility expansion. The lease agreement is for a five-year term, with a renewal option of five years, and monthly rental payments of $30,316 for the term of the lease agreement and renewal option. The lease agreement also requires the payment of utilities, property taxes, insurance and expenses incurred by the affiliate in connection with the maintenance of common areas. In December 2013, the Company entered into a lease agreement for the U.S. office facilities located in Plymouth, Pennsylvania. The lease was for a term of seven years, with monthly rental payments of $6,282 for the first three years, and $6,596, $6,794, $6,998, and $7,208, respectively, thereafter. In December 2016, after our year ended October 31, 2016, the Company renegotiated and cancelled the remaining forty-seven months left of this lease agreement by paying a cancellation fee of approximately $80,000. The cancellation fee was accrued and recorded as a component of non-operating expenses in other expenses for the year ended October 31, 2016. The cancelled minimum lease payments for this lease agreement amounted to approximately $325,000. The Company maintains office facilities in Los Angeles, California, Madrid, Spain, and Sao Paulo, Brazil. These facilities are under month-to-month leases with monthly payments of approximately $2,700, $2,500, and $1,500 respectively. The Company leases certain apartments as dwellings for employees. The leases are under short-term lease agreements and usually are cancelable upon 30-day notification. Minimum future rental payments under non-cancelable operating leases having remaining terms in excess of one year as of October 31, 2016 are as follows: Amount 2017 $ 376,678 2018 363,800 2019 363,800 2020 363,800 2021 60,633 Total minimum lease payments $ 1,528,711 Rent expense for the years ended October 31, 2016 and 2015 was approximately $483,000 and $687,000 respectively. Contingencies -

F. WARRANTS

F. WARRANTS	12 Months Ended
	Oct. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
F. WARRANTS	On December 2014, the Company entered into an agreement with a firm for providing (i) business development and (ii) mergers and acquisition services to the Company. Pursuant to the agreement terms, the Company issued warrants for the purchase of 1,000,000 common shares at an exercise price of $1.80 per share. As of July 31, 2016, the underlying common shares of the warrants were fully vested. The warrants expire on December 1, 2019.

G. CAPITAL TRANSACTIONS

G. CAPITAL TRANSACTIONS	12 Months Ended
	Oct. 31, 2016
Notes to Financial Statements
G. CAPITAL TRANSACTIONS	On June 13, 2014, the Board of Directors of the Company authorized the Company to repurchase up to two million shares of its outstanding common stock. The timing, manner, price and amount of any repurchases will be at the discretion of the Company, subject to the requirements of the Securities Exchange Act of 1934, as amended, and related rules. The program does not oblige the Company to repurchase any shares and it may be modified, suspended or terminated at any time and for any reason. No shares will be repurchased directly from directors or officers of the Company. As of October 31, 2016 and 2015, pursuant to the program a total of 216,952 and 165,524 shares of the Company’s common stock were purchased for an aggregate amount of $232,736 and $186,819, respectively.

H. EARNINGS PER SHARE

H. EARNINGS PER SHARE	12 Months Ended
	Oct. 31, 2016
Earnings Per Share [Abstract]
H. EARNINGS PER SHARE	The computation of basic earnings per share is based on the weighted-average number of our common shares outstanding. The computation of diluted earnings per share is based on the weighted-average number of our common shares outstanding and dilutive potential common shares, which include principally shares that may be issued under: warrants, our stock option and restricted stock unit awards, determined using the treasury stock method. The following data show the amounts used in the calculations of basic and diluted earnings per share. Years ended October 31, 2016 2015 Net income (loss) available to common equity holders - used to compute basic and diluted earnings (losses) per share $ (256,575 ) $ 1,624,826 Weighted average number of common shares - used to compute basic earnings (losses) per share 23,015,522 23,069,817 Effect of warrants to purchase common stock - - Effect of restricted stock units to issue common stock 19,224 35,878 Effect of options to purchase common stock 151,205 294,391 Weighted average number of shares - used to compute diluted earnings (losses) per share 23,185,951 23,400,086 For the year ended October 31, 2016, warrants and options for the purchase of 1,000,000 and 240,000 shares of common stock, respectively, were not included in computing earnings (losses) per share because their effect were antidilutive. Also, for the year ended on October 31, 2015, warrants and options for the purchase of 1,000,000 and 160,000 shares of common stock, respectively, were not included in computing diluted earnings (losses) per share because their effect were also antidilutive.

I. STOCK OPTIONS, RESTRCTED STO

I. STOCK OPTIONS, RESTRCTED STOCK UNITS AND STOCK BASED COMPENSATION	12 Months Ended
	Oct. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
I. STOCK OPTIONS, RESTRCTED STOCK UNITS AND STOCK BASED COMPENSATION	The Company has two incentive plans, the 2005 Long-Term Incentive Plan (the “2005 Plan”) and the 2014 Long-Term Incentive Plan (the “2014 Plan”), together the “Plans”. The 2005 Plan and the 2014 Plan cover 2,500,000 and 2,300,000 shares of the Company’s common stock, respectively. Both Plans provide for the grant of incentive and non-qualified options, stock grants, stock appreciation rights and other equity-based incentives to employees, including officers, consultants and directors for a period of ten years. The 2005 Plan expired in October 2015, accordingly no further grants have been issued under this plan. The Plans are to be administered by a committee of independent directors. In the absence of a committee, the plans are administered by the board of directors. Options intended to be incentive stock options must be granted at an exercise price per share which is not less than the fair market value of the common stock on the date of grant and may have a term which is not longer than ten years. If the option holder holds at least 10% of the Company’s common stock, the exercise price must be at least 110% of the fair market value on the date of grant and the term of the option cannot exceed five years. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which generally represents the vesting period, and includes an estimate of awards that will be forfeited. The fair value of stock-based awards to employees is calculated using the Black-Scholes option pricing model. The Black-Scholes model requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. The expected term of the option has been estimated using the “simplified” method as provided in Securities Exchange Commission (“SEC”) Staff Accounting Bulletin No. 107, for plans with insufficient exercise experience. Under this method, the expected term equals the arithmetic average of the vesting term and the contractual term of the option. The risk-free rate is based on the U.S. Treasury rates in effect during the corresponding period of grant. The expected volatility is based on the historical volatility of the Company’s stock price. These factors could change in the future, which would affect fair values of stock options granted in such future periods, and could cause volatility in the total amount of the stock-based compensation expense reported in future periods. The 2005 Plan stock options activity and status for the years ended October 31, 2016 and 2015 was as follows: Year ended October 31, 2016 2015 Weighted- Weighted- Number of Average Option Number of Average Option Shares Exercise Price Shares Exercise Price Outstanding at beginning of year 900,000 $ 0.8779 1,100,000 $ 0.7985 Granted - $ 0.000 80,000 $ 1.2800 Exercised (45,000 ) $ 0.4167 (255,000 ) 0.6763 Expired and/or forfeited (40,000 ) $ 0.7300 (25,000 ) $ 0.7300 Total outstanding at end of year 815,000 $ 0.9106 900,000 $ 0.8779 Outstanding exercisable stock options at end of year 815,000 $ 0.9106 860,000 $ 0.8592 October 31, 2016 October 31, 2015 Weighted average remaining years in contractual life for: Total outstanding options 0.8 years 1.7 years Outstanding exercisable options 0.8 years 1.6 years Shares of common stock available for issuance pursuant to future stock option grants - - The following weighted average assumptions were used to estimate the fair value of stock options granted under the 2005 Plan for the year ended October 31, 2015: Year ended October 31, 2015 Expected dividend yield 0.0 % Expected stock price volatility 61.8 % Risk free interest rate 1.0 % Expected life of options 3.2 years Weighted average fair value of options granted $ 0.5465 The 2014 Plan stock options activity and status for the years ended October 31, 2016 and 2015 was as follows: Year ended October 31, 2016 2015 Weighted- Weighted- Number of Average Option Number of Average Option Shares Exercise Price Shares Exercise Price Outstanding at beginning of year - $ - - $ - Granted 430,000 $ 0.8860 - $ - Exercised - $ - - $ - Expired and/or forfeited - $ - - $ - Total outstanding at end of year 430,000 $ 0.8860 - $ - Outstanding exercisable stock options at end of year 40,000 $ 0.9500 - $ - October 31, 2016 October 31, 2015 Weighted average remaining years in contractual life for: Total outstanding options 4.1 years 0.0 years Outstanding exercisable options 4.2 years 0.0 years Shares of common stock available for issuance pursuant to future stock option grants 1,870,000 2,300,000 The following weighted average assumptions were used to estimate the fair value of stock options granted under the 2014 Plan for the year ended October 31, 2016: Year ended October 31, 2016 Expected dividend yield 0.0 % Expected stock price volatility 68.6 % Risk free interest rate 1.3 % Expected life of options 3.4 years Weighted average fair value of options granted $ 0.4307 As of October 31, 2016, estimated stock based compensation expense to be recognized in future periods for granted nonvested stock options is attributable to stock options granted under the 2014 Plan. The nonvested stock options compensation expense in the amount of $87,900 will be recognized in a weighted average period of approximately 1.1 years. As of October 31, 2016, the aggregate intrinsic value of options outstanding under the 2014 Plan was approximately $27,500. The aggregate intrinsic value of options outstanding under the 2005 Plan at October 31, 2016 and 2015 was approximately $147,000 and $165,000, respectively. The aggregate intrinsic value represents the difference between the Company’s stock price at year end and the exercise price, multiplied by the number of in-the money options had all option holders exercised their options. This amount changes based on the fair market value of the Company’s stock. During the years ended October 31, 2016 and 2015, 45,000 and 255,000 stock options issued under the 2005 Plan were exercised on a cashless basis, resulting on the net issuance of 23,846 and 120,066 common shares, respectively. No stock options granted under the 2014 Plan have been exercised. During the year ended October 31, 2014, some employees were awarded 49,391 restricted stock units for the aggregate amount at grant date of $100,000. The restricted stock units are subject to future service and vest approximately one third per year. The average grant date fair values of these restricted stock units was $2.02 per share unit. Stock based compensation expense related to these restricted stock units was approximately $33,300 for each of the years ended October 31, 2016 and 2015. During the years ended October 31, 2016 and 2015, pursuant to the restricted units agreements, common shares were issued for an aggregate amount of 16,447 shares for each year. As of October 31, 2016, there were approximately $5,600 of unrecognized compensation costs related to nonvested restricted stock units, which are expected to be recognized over a weighted average period of 0.2 years. The following table presents the total stock-based compensation included in the Company’s consolidated statement of income and the effect in earnings per share: Year ended October 31, 2016 2015 Stock-based compensation expense: Cost of services $ - $ 2,482 Selling, general and administrative 88,884 84,637 Stock-based compensation before tax 88,884 87,119 Income tax benefit - - Net stock-based compensation expense $ 88,884 $ 87,119 Effect on earnings per share: Basic earnings per share $ (0.004 ) $ (0.004 ) Diluted earnings per share $ (0.004 ) $ (0.004 )

J. CONCENTRATIONS OF RISKS

J. CONCENTRATIONS OF RISKS	12 Months Ended
	Oct. 31, 2016
Risks and Uncertainties [Abstract]
J. CONCENTRATIONS OF RISKS	Cash and cash equivalents The Company domestic cash and cash equivalents consist of cash deposits in FDIC insured banks (substantially covered by FDIC insurance by the spread of deposits in multiple FDIC insured banks), a money market obligations trust registered under the US Investment Company Act of 1940, as amended, and U.S. Treasury securities with maturities of three months or less. In the foreign markets we serve, we also maintain cash deposits in foreign banks, which tend to be not significant and have no specific insurance. No losses have been experienced or are expected on these accounts. Accounts receivable and revenues Management deems all its accounts receivable to be fully collectible, and, as such, does not maintain any allowances for uncollectible receivables. The Company's revenues, and the related receivables, are concentrated in the pharmaceutical industry in Puerto Rico, the United States of America, Ireland and Spain. Although few customers represent a significant source of revenue, the Company’s functions are not a continuous process, accordingly, the client base for which the services are typically rendered, on a project-by-project basis, changes regularly. The Company provided a substantial portion of its services to four customers, who accounted for 10% or more of its revenues in either of the years ended October 31, 2016 or 2015. During the year ended October 31, 2016, revenues from these customers were 10.5%, 10.0%, 7.1% and 6.0%, or a total of 33.6%, as compared to the same period last year for 10.1%, 4.7%, 10.0% and 12.8%, or a total of 37.6%, respectively. At October 31, 2016 and 2015, amounts due from these customers represented 57.1% and 35.4% of total accounts receivable balance, respectively. The major customer information in the above paragraph is based on revenues earned from said customers at the segment level because in management’s opinion contracts by segments are totally independent of each other, and therefore such information is more meaningful to the reader. These revenues pertain to four global groups of affiliated companies. During the year ended October 31, 2016, aggregate revenues from these global groups of affiliated companies were 10.5%, 10.3%, 10.0% and 6.0%, or a total of 36.8%, as compared to the same period last year for 10.1%, 17.4%, 4.7%, and 12.8%, or a total of 45.0%, respectively. At October 31, 2016 and 2015, amounts due from these global groups of affiliated companies represented 58.7% and 40.6% of total accounts receivable balance, respectively. As of October 31, 2016, one of the Company’s customers owes the Company approximately $2.8 million, which represents approximately 42.5% of the Company’s total accounts receivable trade balances. We are providing multiple services to this customer related to their construction of a manufacturing facility in Puerto Rico. From this facility the customer will do the manufacturing and distribution of an existing product and an investigational new drug to be marketed to worldwide markets, once approved by regulators. A significant portion of the customer’s funding comes from different financing sourcing. As of the issuance date of this report the customer has paid $500,000 of this balance and recurrent services are provided. Management estimates that collectability of the account is reasonably assured, accordingly, no provision for losses, if any, have been recorded in the financial statements.

K. SEGMENT DISCLOSURES

K. SEGMENT DISCLOSURES	12 Months Ended
	Oct. 31, 2016
Segment Reporting [Abstract]
K. SEGMENT DISCLOSURES	The Company’s segments are based on the organizational structure for which financial results are regularly evaluated by the Company’s chief operating decision maker to determine resource allocation and assess performance. Each reportable segment is managed by its own management team and reports to executive management. The Company has four reportable segments: (i) Puerto Rico technical compliance consulting, (ii) United States technical compliance consulting, (iii) Europe technical compliance consulting, and (iv) a Puerto Rico microbiological and chemical laboratory testing division (“Lab”). These reportable segments provide services primarily to the pharmaceutical, chemical, medical device and biotechnology industries in their respective markets. The following table presents information about the reported revenue from services and earnings from operations of the Company for the years ended in October 31, 2016 and 2015. There is no intersegment revenue for the mentioned periods. Corporate expenses that support the operating units have been allocated to the segments. Asset information by reportable segment is not presented, since the Company does not produce such information internally, nor does it use such data to manage its business. Year ended October 31, 2016 2015 REVENUES: Puerto Rico consulting $ 14,579,015 $ 17,469,716 United States consulting 1,448,579 2,685,242 Europe consulting 815,931 1,082,617 Lab (microbiological and chemical testing) 2,446,594 2,005,578 Other segments¹ 246,596 141,708 Total consolidated revenues $ 19,536,715 $ 23,384,861 INCOME (LOSS) BEFORE TAXES: Puerto Rico consulting $ 623,175 $ 2,208,330 United States consulting (858,481 ) (320,897 ) Europe consulting (242,566 ) (370,995 ) Lab (microbiological and chemical testing) (45,888 ) (41,910 ) Other segments¹ 320,019 318,280 Total consolidated income before taxes $ (203,741 ) $ 1,792,808 ¹ Other segments represent activities that fall below the reportable threshold and are carried out in Puerto Rico, United States and Brazil. These activities include a Brazilian compliance consulting division, technical seminars/training division, an information technology services and consulting division, a calibrations division and corporate headquarters, as applicable. Long lived assets (property and equipment) and related depreciation and amortization expense for the years ended October 31, 2016 and 2015, were concentrated in Puerto Rico. The aggregate amount of long lived assets for other operations is considered insignificant.

L. RETIREMENT PLAN

L. RETIREMENT PLAN	12 Months Ended
	Oct. 31, 2016
Compensation and Retirement Disclosure [Abstract]
L. RETIREMENT PLAN	Pharma-PR and Pharma-US each have a separate qualified retirement plan in accordance with the applicable laws of the Commonwealth of Puerto Rico and the United States of America, for employees who meet certain age and service period requirements. The Company makes contributions to this plans as required by the provisions of the plan document. Contributions for the years ended October 31, 2016 and 2015 were $82,700 and $80,800, respectively.

M. RELATED PARTY TRANSACTIONS

M. RELATED PARTY TRANSACTIONS	12 Months Ended
	Oct. 31, 2016
Related Party Transactions [Abstract]
M. RELATED PARTY TRANSACTIONS	On December 31, 2013, the Company entered into a Consulting Agreement with a company (the “Consultant”) affiliated to our Chairman and our Chairman, effective as of January 1, 2014. Pursuant to the Consulting Agreement as amended, the Consultant will consult with the Board regarding the Company’s strategic initiatives, company services, management, operations and other matters as may be requested from time to time by the Board. Pursuant to the Consulting Agreement, the Consultant received a monthly fee of $42,000 during the term of the Consulting Agreement. Additionally, our Chairman will receive a company automobile and such insurance as she was provided by the Company during her last year of employment with the Company. The Consulting Agreement also included standard provisions relating to non-competition, confidentiality, non-transferability and non-disparagement. On December 31, 2015, the Consulting Agreement was renewed for an additional term of one year and the monthly fee for the services was changed to $31,500. Effective January 1, 2017, the Consulting Agreement was renewed for an additional one year term and the monthly fee for services was changed to $42,000. As more fully disclosed in Note E to the consolidated financial statements, the Company leases its headquarters and laboratory testing facilities in Dorado, Puerto Rico, from an affiliate of our Chairman of the Board.

N. SUBSEQUENT EVENT

N. SUBSEQUENT EVENT	12 Months Ended
	Oct. 31, 2016
Related Party Transactions [Abstract]
N. SUBSEQUENT EVENT	As more fully disclosed in Note E, on December 2016, the Company renegotiated and cancelled the remaining forty-seven months left of the lease agreement for the U.S. office facilities located in Plymouth, Pennsylvania. On January 2017, the Company renewed the Consulting Agreement with a company affiliated to our Chairman and our Chairman, as more fully disclosed in Note M.

A. ORGANIZATION AND SUMMARY O24

A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Oct. 31, 2016
A. Organization And Summary Of Significant Accounting Policies Policies
Consolidation	The accompanying consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from these estimates.
Fair Value of Financial Instruments	Accounting standards have established a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting standards have established three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets and liabilities. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Marketable securities available-for-sale consist of U.S. Treasury securities and an obligation from the Puerto Rico Government Development Bank valued using quoted market prices in active markets. Accordingly, these securities are categorized in Level 1. The carrying value of the Company's financial instruments (excluding marketable securities and obligations under capital leases): cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, are considered reasonable estimates of fair value due to their liquidity or short-term nature. Management believes, based on current rates, that the fair value of its obligations under capital leases approximates the carrying amount.
Revenue Recognition	Revenue is primarily derived from: (1) time and materials contracts (representing approximately 86% of total revenues), which is recognized by applying the proportional performance model, whereby revenue is recognized as performance occurs, (2) short-term fixed-fee contracts or "not to exceed" contracts (representing approximately 1% of total revenues), which revenue is recognized similarly, except that certain milestones also have to be reached before revenue is recognized, and (3) laboratory testing revenue (representing approximately 13% of total revenues), which is mainly recognized as the testing is completed and certified (normally within days of sample receipt from customer). If the Company determines that a contract will result in a loss, the Company recognizes the estimated loss in the period in which such determination is made.
Cash Equivalents	For purposes of the consolidated statements of cash flows, cash equivalents include investments in money market obligation’s trusts that are registered under the U.S. Investment Company Act of 1940 and liquid investments with original maturities of three months or less.
Marketable Securities	We consider our marketable security investment portfolio and marketable equity investments as available-for-sale and, accordingly, these investments are recorded at fair value with unrealized gains and losses generally recorded in other comprehensive income; whereas realized gains and losses are included in earnings and determined based on the specific identification method. We review our available-for-sale securities for other-than-temporary declines in fair value below their cost basis on a quarterly basis and whenever events or changes in circumstances indicate that the cost basis of an asset may not be recoverable. This evaluation is based on a number of factors including, the length of time and extent to which the fair value has been less than our cost basis and adverse conditions specifically related to the security including any changes to the rating of the security by a rating agency.
Accounts Receivable	Accounts receivable are recorded at their estimated realizable value. Accounts are deemed past due when payment has not been received within the stated time period. The Company's policy is to review individual past due amounts periodically and write off amounts for which all collection efforts are deemed to have been exhausted. Due to the nature of the Company’s customers, bad debts are mainly accounted for using the direct write-off method whereby an expense is recognized only when a specific account is determined to be uncollectible. The effect of using this method approximates that of the allowance method.
Income Taxes	The Company follows an asset and liability approach method of accounting for income taxes. This method measures deferred income taxes by applying enacted statutory rates in effect at the balance sheet date to the differences between the tax basis of assets and liabilities and their reported amounts on the financial statements. The resulting deferred tax assets or liabilities are adjusted to reflect changes in tax laws as they occur. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized. The Company follows guidance from the Financial Accounting Standards Board (“FASB”) related to Accounting for Uncertainty in Income Taxes,
Property and equipment	Owned property and equipment, and leasehold improvements are stated at cost. Vehicles under capital leases are stated at the lower of fair market value or net present value of the minimum lease payments at the inception of the leases. Depreciation and amortization of owned assets are provided for, when placed in service, in amount sufficient to relate the cost of depreciable assets to operations over their estimated service lives, using straight-line basis. Assets under capital leases and leasehold improvements are amortized, over the shorter of the estimated useful lives of the assets or initial lease term. Major renewals and betterments that extend the life of the assets are capitalized, while expenditures for repairs and maintenance are expensed when incurred. The Company evaluates for impairment its long-lived assets to be held and used, and long-lived assets to be disposed of, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Stock-based Compensation	Stock-based compensation expense is recognized in the consolidated financial statements based on the fair value of the awards granted. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which generally represents the vesting period, and includes an estimate of awards that will be forfeited. The Company calculates the fair value of stock options using the Black-Scholes option-pricing model at grant date, while for restricted stock units the fair market value of the units is determined by Company’s share market value at grant date. Excess tax benefits related to stock-based compensation are reflected as cash flows from financing activities rather than cash flows from operating activities. However, the Company has not recognized such cash flow from financing activities since there has been no tax benefit related to the stock-based compensation.
Income Per Share of Common Stock	Basic income per share of common stock is calculated dividing net income by the weighted average number of shares of common stock outstanding. Diluted income per share includes the dilution of common stock equivalents. The diluted weighted average shares of common stock outstanding were calculated using the treasury stock method for the respective periods.
Foreign Operations	The functional currency of the Company’s foreign subsidiaries are their respective local currencies. The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense items are translated at the average exchange rates prevailing during the period. The cumulative translation effect for subsidiaries using a functional currency other than the U.S. dollar is included as a cumulative translation adjustment in stockholders’ equity and as a component of comprehensive income. The Company’s intercompany accounts are typically denominated in the functional currency of the foreign subsidiary. Gains and losses resulting from the remeasurement of intercompany receivables that the Company considers to be of a long-term investment nature are recorded as a cumulative translation adjustment in stockholders’ equity and as a component of comprehensive income, while gains and losses resulting from the remeasurement of intercompany receivables from those international subsidiaries for which the Company anticipates settlement in the foreseeable future are recorded in the consolidated statements of operations. The net gains and losses recorded in the consolidated statements of income were not significant for the periods presented.
Subsequent Events	The Company has evaluated subsequent events to the date of the audit report. The Company has determined that there are no events occurring in this period that required disclosure or adjustment, except as disclosed in the accompanying consolidated financial statements.
Reclassifications	Certain reclassifications have been made to the October 31, 2015 consolidated financial statements to conform them to the October 31, 2016 consolidated financial statements presentation. Such reclassifications do not have effect on net income as previously reported.
Recently Accounting Pronouncements	In May 2014, a new accounting standard was issued that amends the guidance for the recognition of revenue from contracts with customers to transfer goods and services. This new standard will be effective for interim and annual periods beginning after December 15, 2017, including interim periods within the reporting period, reporting is required to be adopted prospectively and early adoption is not permitted. We are currently evaluating the provisions of this new standard and have not yet determined what impact it will have on our financial statements, if any.

B. MARKETABLE SECURITIES AVAI25

B. MARKETABLE SECURITIES AVAILABLE FOR SALE (Tables)	12 Months Ended
	Oct. 31, 2016
B. Marketable Securities Available For Sale Tables
Summary of available-for-sale securities	Type of security as of October 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury securities $ 4,500,000 $ — $ — $ 4,500,000 Other government-related debt securities: Puerto Rico Commonwealth Government Development Bond 40,000 — (19,717 ) 20,283 Total interest-bearing and available-for-sale securities $ 4,540,000 $ — $ (19,717 ) $ 4,520,283 Type of security as of October 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury securities $ 4,500,000 $ — $ — $ 4,500,000 Other government-related debt securities: Puerto Rico Commonwealth Government Development Bond 95,000 — (61,571 ) 33,429 Total interest-bearing and available-for-sale securities $ 4,595,000 $ — $ (61,571 ) $ 4,533,429
Fair values of available-for-sale securities	Classification in the Consolidated Balance Sheets 2016 2015 Cash and cash equivalents $ 4,500,000 $ 4,500,000 Marketable securities 20,283 33,429 Total available-for-sale securities $ 4,520,283 $ 4,533,429

C. PROPERTY AND EQUIPMENT (Tabl

C. PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Oct. 31, 2016
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment	October 31, Useful life (years) 2016 2015 Vehicles 5 $ 256,677 $ 250,068 Leasehold improvements 5-8 674,625 647,713 Computers 3 314,380 274,063 Equipment 3-7 1,858,295 1,196,953 Furniture and fixtures 10 82,240 82,256 Projects in process - 1,084,511 194,094 Total 4,270,728 2,645,147 Less: Accumulated depreciation and amortization ( 1,936,699 ) (1,791,202 ) Property and equipment, net $ 2,334,029 $ 853,945

D. INCOME TAXES (Tables)

D. INCOME TAXES (Tables)	12 Months Ended
	Oct. 31, 2016
D. Income Taxes Tables
Schedule of reconciliation between federal statutory rate and effective tax rate	October 31, 2016 2015 United States federal statutory rate 35.0 % 35.0 % Puerto Rico Act 73 Tax Grant effect, including net foreign earnings invested indefinitely, net (26.6 )% (26.7 )% Other, including United States loss position for which the resulting deferred tax asset has been allowed, net (34.3 )% 1.1 % Effective tax rate (25.9 )% 9.4 %

E. COMMITMENTS AND CONTINGENC28

E. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Oct. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments for Capital Leases	Twelve months ending October 31, Amount 2017 $ 24,961 2018 18,697 2019 11,232 Total future minimum lease payments 54,890 Less: Amount of imputed interest ( 2,938 ) Present value of future minimum lease payments 51,952 Current portion of obligation under capital leases (22,950 ) Long-term portion $ 29,002
Schedule of Future Minimum Rental Payments for Operating Leases	Amount 2017 $ 376,678 2018 363,800 2019 363,800 2020 363,800 2021 60,633 Total minimum lease payments $ 1,528,711

H. EARNINGS PER SHARE (Tables)

H. EARNINGS PER SHARE (Tables)	12 Months Ended
	Oct. 31, 2016
Earnings Per Share [Abstract]
Schedule of calculations of basic and diluted earnings per share	Years ended October 31, 2016 2015 Net income (loss) available to common equity holders - used to compute basic and diluted earnings (losses) per share $ (256,575 ) $ 1,624,826 Weighted average number of common shares - used to compute basic earnings (losses) per share 23,015,522 23,069,817 Effect of warrants to purchase common stock - - Effect of restricted stock units to issue common stock 19,224 35,878 Effect of options to purchase common stock 151,205 294,391 Weighted average number of shares - used to compute diluted earnings (losses) per share 23,185,951 23,400,086

I. STOCK OPTIONS AND STOCK BASE

I. STOCK OPTIONS AND STOCK BASED COMPENSATION (Tables)	12 Months Ended
	Oct. 31, 2016
I. Stock Options And Stock Based Compensation Tables
Stock options activity	The 2005 Plan stock options activity and status for the years ended October 31, 2016 and 2015 was as follows: Year ended October 31, 2016 2015 Weighted- Weighted- Number of Average Option Number of Average Option Shares Exercise Price Shares Exercise Price Outstanding at beginning of year 900,000 $ 0.8779 1,100,000 $ 0.7985 Granted - $ 0.000 80,000 $ 1.2800 Exercised (45,000 ) $ 0.4167 (255,000 ) 0.6763 Expired and/or forfeited (40,000 ) $ 0.7300 (25,000 ) $ 0.7300 Total outstanding at end of year 815,000 $ 0.9106 900,000 $ 0.8779 Outstanding exercisable stock options at end of year 815,000 $ 0.9106 860,000 $ 0.8592 October 31, 2016 October 31, 2015 Weighted average remaining years in contractual life for: Total outstanding options 0.8 years 1.7 years Outstanding exercisable options 0.8 years 1.6 years Shares of common stock available for issuance pursuant to future stock option grants - - The 2014 Plan stock options activity and status for the years ended October 31, 2016 and 2015 was as follows: Year ended October 31, 2016 2015 Weighted- Weighted- Number of Average Option Number of Average Option Shares Exercise Price Shares Exercise Price Outstanding at beginning of year - $ - - $ - Granted 430,000 $ 0.8860 - $ - Exercised - $ - - $ - Expired and/or forfeited - $ - - $ - Total outstanding at end of year 430,000 $ 0.8860 - $ - Outstanding exercisable stock options at end of year 40,000 $ 0.9500 - $ - October 31, 2016 October 31, 2015 Weighted average remaining years in contractual life for: Total outstanding options 4.1 years 0.0 years Outstanding exercisable options 4.2 years 0.0 years Shares of common stock available for issuance pursuant to future stock option grants 1,870,000 2,300,000
Assumptions used to estimate the fair value of stock options	The following weighted average assumptions were used to estimate the fair value of stock options granted under the 2005 Plan for the year ended October 31, 2015: Year ended October 31, 2015 Expected dividend yield 0.0 % Expected stock price volatility 61.8 % Risk free interest rate 1.0 % Expected life of options 3.2 years Weighted average fair value of options granted $ 0.5465 The following weighted average assumptions were used to estimate the fair value of stock options granted under the 2014 Plan for the year ended October 31, 2016: Year ended October 31, 2016 Expected dividend yield 0.0 % Expected stock price volatility 68.6 % Risk free interest rate 1.3 % Expected life of options 3.4 years Weighted average fair value of options granted $ 0.4307
Stock-based compensation	Year ended October 31, 2016 2015 Stock-based compensation expense: Cost of services $ - $ 2,482 Selling, general and administrative 88,884 84,637 Stock-based compensation before tax 88,884 87,119 Income tax benefit - - Net stock-based compensation expense $ 88,884 $ 87,119 Effect on earnings per share: Basic earnings per share $ (0.004 ) $ (0.004 ) Diluted earnings per share $ (0.004 ) $ (0.004 )

K. SEGMENT DISCLOSURES (Tables)

K. SEGMENT DISCLOSURES (Tables)	12 Months Ended
	Oct. 31, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	Year ended October 31, 2016 2015 REVENUES: Puerto Rico consulting $ 14,579,015 $ 17,469,716 United States consulting 1,448,579 2,685,242 Europe consulting 815,931 1,082,617 Lab (microbiological and chemical testing) 2,446,594 2,005,578 Other segments¹ 246,596 141,708 Total consolidated revenues $ 19,536,715 $ 23,384,861 INCOME (LOSS) BEFORE TAXES: Puerto Rico consulting $ 623,175 $ 2,208,330 United States consulting (858,481 ) (320,897 ) Europe consulting (242,566 ) (370,995 ) Lab (microbiological and chemical testing) (45,888 ) (41,910 ) Other segments¹ 320,019 318,280 Total consolidated income before taxes $ (203,741 ) $ 1,792,808 ¹ Other segments represent activities that fall below the reportable threshold and are carried out in Puerto Rico, United States and Brazil. These activities include a Brazilian compliance consulting division, technical seminars/training division, an information technology services and consulting division, a calibrations division and corporate headquarters, as applicable.

B. MARKETABLE SECURITIES AVAI32

B. MARKETABLE SECURITIES AVAILABLE FOR SALE (Details) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Available-for-sale securities
Amortized Cost	$ 4,540,000	$ 4,595,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(19,717)	(61,571)
Estimated Fair Value	4,520,283	4,533,429
U.S. Treasury securities
Available-for-sale securities
Amortized Cost	4,500,000	4,500,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	4,500,000	4,500,000
Puerto Rico Commonwealth Government Development Bond
Available-for-sale securities
Amortized Cost	40,000	95,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(19,717)	(61,571)
Estimated Fair Value	$ 20,283	$ 33,429

B. MARKETABLE SECURITIES AVAI33

B. MARKETABLE SECURITIES AVAILABLE FOR SALE (Details 1) - USD ($)	Oct. 31, 2016	Oct. 31, 2015
B. Marketable Securities Available For Sale Tables
Cash and cash equivalents	$ 4,500,000	$ 4,500,000
Marketable securities	20,283	33,429
Total available-for-sale securities	$ 4,520,283	$ 4,533,429

B. MARKETABLE SECURITIES AVAI34

B. MARKETABLE SECURITIES AVAILABLE FOR SALE (Details Narrative) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
B. Marketable Securities Available For Sale Details Narrative
Marketable securities	$ 40,000	$ 95,000
Marketable securities maturity date	Aug. 31, 2019

C. PROPERTY AND EQUIPMENT (Deta

C. PROPERTY AND EQUIPMENT (Details) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Property and equipment gross	$ 4,270,728	$ 2,645,147
Less: Accumulated depreciation and amortization	(1,936,699)	(1,791,202)
Property and equipment, net	$ 2,334,029	853,945
Vehicles
Useful life (years)	5 year
Property and equipment gross	$ 256,677	250,068
Leasehold improvements
Useful life (years)	5-8 years
Property and equipment gross	$ 674,625	647,713
Computers
Useful life (years)	3 year
Property and equipment gross	$ 314,380	274,063
Equipment
Useful life (years)	3-7 year
Property and equipment gross	$ 1,858,295	1,196,953
Furniture and fixtures
Useful life (years)	10 year
Property and equipment gross	$ 82,240	82,256
Projects in process
Property and equipment gross	$ 1,084,511	$ 194,094

D. INCOME TAXES (Details)

D. INCOME TAXES (Details)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
D. Income Taxes Tables
United States federal statutory rate	35.00%	35.00%
Puerto Rico Act 73 Tax Grant effect, including net foreign earnings invested indefinitely, net	(26.60%)	(26.70%)
Other, including United States loss position for which the resulting deferred tax asset has been allowed, net	(34.30%)	1.10%
Effective tax rate	(25.90%)	9.40%

D. INCOME TAXES (Details Narrat

D. INCOME TAXES (Details Narratives) - USD ($)	Oct. 31, 2016	Oct. 31, 2015
Undistributed earnings of Puerto Rican subsidiaries for which deferred income taxes have not been recognized	$ 20,200,000	$ 19,200,000
Approximate aggregate amount of Puerto Rico earnings distribution tax and United States federal income tax, if a distribution of Puerto Rican subsidiaries earnings is made	4,600,000	$ 4,300,000
Pharma-Spain
Unused operating losses	957,000
Potential deferred tax asset	191,000
Pharma-IR
Unused operating losses	1,077,000
Potential deferred tax asset	135,000
Pharma-Bio
Unused operating losses	1,126,000
Potential deferred tax asset	$ 394,000

E. COMMITMENTS AND CONTINGENC38

E. COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Oct. 31, 2016	Oct. 31, 2015
Twelve months ending October 31,
2,017	$ 24,961
2,018	18,697
2,019	11,232
Total future minimum lease payments	54,890
Less: Amount of imputed interest	(2,938)
Present value of future minimum lease payments	51,952
Current portion of obligation under capital leases	(22,950)	$ (22,784)
Long-term portion	$ 29,002	$ 51,952

E. COMMITMENTS AND CONTINGENC39

E. COMMITMENTS AND CONTINGENCIES (Details 1)	Oct. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,017	$ 376,678
2,018	363,800
2,019	363,800
2,020	363,800
2,021	60,633
Total minimum lease payments	$ 1,528,711

E. COMMITMENTS AND CONTINGENC40

E. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Rent expense	$ 483,000	$ 687,000
Vehicles
Leased vehicles under non-cancelable capital lease agreements	118,790	118,790
Accumulated amortization leased vehicles	73,740	49,982
Amortization expense	$ 23,758	$ 23,758

H. EARNINGS PER SHARE (Details)

H. EARNINGS PER SHARE (Details) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Notes to Financial Statements
Net income (loss) available to common equity holders - used to compute basic and diluted earnings (losses) per share	$ (256,575)	$ 1,624,826
Weighted average number of common shares - used to compute basic earnings (losses) per share	23,015,522	23,069,817
Effect of warrants to purchase common stock	0	0
Effect of restricted stock units to issue common stock	19,224	35,878
Effect of options to purchase common stock	151,205	294,391
Weighted average number of shares - used to compute diluted earnings (losses) per share	23,185,951	23,400,086

I. STOCK OPTIONS AND STOCK BA42

I. STOCK OPTIONS AND STOCK BASED COMPENSATION (Details) - $ / shares	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
2005 Plan
Shares
Options Outstanding, Beginning	900,000	1,100,000
Options Granted	0	80,000
Options Exercised	(45,000)	(255,000)
Options Expired and/or forfeited	(40,000)	(25,000)
Options Outstanding, Ending	815,000	900,000
Options Exercisable, Ending	815,000	860,000
Weighted Average Option Exercise Price
Options Outstanding, Beginning	$ 0.8779	$ 0.7985
Options Granted	0	1.2800
Options Exercised	.4167	0.6763
Options Expired and or forfeited	.7300	0.7300
Options Outstanding, Ending	.9106	0.8779
Options Exercisable, Ending	$ 0.9106	$ 0.8592
Weighted average remaining years in contractual life for: Total outstanding options	9 months 18 days	1 year 8 months 12 days
Weighted average remaining years in contractual life for: Outstanding exercisable options	9 months 18 days	1 year 7 months 6 days
Shares of common stock available for issuance pursuant to future stock option grants	0	0
2014 Plan
Shares
Options Outstanding, Beginning	0	0
Options Granted	430,000	0
Options Exercised	0	0
Options Expired and/or forfeited	0	0
Options Outstanding, Ending	430,000	0
Options Exercisable, Ending	40,000	0
Weighted Average Option Exercise Price
Options Outstanding, Beginning	$ 0	$ 0
Options Granted	.8860	0
Options Exercised	0	0
Options Expired and or forfeited	0	0
Options Outstanding, Ending	0.8860	0
Options Exercisable, Ending	$ .9500	$ 0
Weighted average remaining years in contractual life for: Total outstanding options	4 years 1 month 6 days	0 years
Weighted average remaining years in contractual life for: Outstanding exercisable options	4 years 2 months 12 days	0 years
Shares of common stock available for issuance pursuant to future stock option grants	1,870,000	2,300,000

I. STOCK OPTIONS AND STOCK BA43

I. STOCK OPTIONS AND STOCK BASED COMPENSATION (Details 1) - $ / shares	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
2005 Plan
Expected dividend yield		0.00%
Expected stock price volatility		61.80%
Risk free interest rate		1.00%
Expected life of options		3 years 2 months 12 days
Weighted average fair value of options granted		$ 0.5465
2014 Plan
Expected dividend yield	0.00%
Expected stock price volatility	68.60%
Risk free interest rate	1.30%
Expected life of options	3 years 4 months 24 days
Weighted average fair value of options granted	$ .4307

I. STOCK OPTIONS AND STOCK BA44

I. STOCK OPTIONS AND STOCK BASED COMPENSATION (Details 2) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Stock-based compensation before tax	$ 88,884	$ 87,119
Income tax benefit	0	0
Net stock-based compensation expense	$ 88,884	$ 87,119
Effect on earnings per share: Basic earnings per share	$ (0.004)	$ (0.004)
Effect on earnings per share: Diluted earnings per share	$ (0.004)	$ (0.004)
Cost of services
Stock-based compensation before tax	$ 0	$ 2,482
Selling, general and administrative
Stock-based compensation before tax	$ 88,884	$ 84,637

I. STOCK OPTIONS AND STOCK BA45

I. STOCK OPTIONS AND STOCK BASED COMPENSATION (Details Narrative) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
I. Stock Options And Stock Based Compensation Details Narrative
Aggregate intrinsic value of options outstanding	$ 147,000	$ 165,000
Stock options exercised on a cashless basis	45,000	255,000

J. CONCENTRATION OF RISKS (Deta

J. CONCENTRATION OF RISKS (Details Narrative)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Major Customer A
Revenue from major customers	10.50%	10.10%
Major Customer B
Revenue from major customers	10.00%	4.70%
Major Customer C
Revenue from major customers	7.10%	10.00%
Major Customer D
Revenue from major customers	6.00%	12.80%
Major Customer Total
Revenue from major customers	33.60%	37.60%
Amount due from major customers as percentage of accounts receivable	57.10%	35.40%
Global Customer A
Revenue from major customers	10.50%	10.10%
Global Customer B
Revenue from major customers	10.30%	17.40%
Global Customer C
Revenue from major customers	10.00%	4.70%
Global Customer D
Revenue from major customers	6.00%	12.80%
Global Customer Total
Revenue from major customers	36.80%	45.00%
Amount due from major customers as percentage of accounts receivable	58.70%	40.60%

K. SEGMENT DISCLOSURES (Details

K. SEGMENT DISCLOSURES (Details) - USD ($)		12 Months Ended
		Oct. 31, 2016	Oct. 31, 2015
Revenues		$ 19,536,715	$ 23,384,861
Income (loss) before taxes		(203,741)	1,792,808
Puerto Rico consulting
Revenues		14,579,015	17,469,716
Income (loss) before taxes		623,175	2,208,330
United States consulting
Revenues		1,448,579	2,685,242
Income (loss) before taxes		(858,481)	(320,897)
Europe consulting
Revenues		815,931	1,082,617
Income (loss) before taxes		(242,566)	(370,995)
Lab (microbiological and chemical testing)
Revenues		2,446,594	2,005,578
Income (loss) before taxes		(45,888)	(41,910)
Other segments
Revenues	[1]	246,596	141,708
Income (loss) before taxes	[1]	$ 320,019	$ 318,280
[1]	Other segments represent activities that fall below the reportable threshold and are carried out in Puerto Rico, United States and Brazil. These activities include a Brazilian compliance consulting division, technical seminars/training division, an information technology services and consulting division, a calibrations division and corporate headquarters, as applicable.

L. RETIREMENT PLAN (Details Nar

L. RETIREMENT PLAN (Details Narrative) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
L. Retirement Plan Details Narrative
Contributions made to retirement plan	$ 82,700	$ 80,800