Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Feb. 12, 2015 | |
Document and Entity Information: | ||
Entity Registrant Name | VITRO DIAGNOSTICS INC | |
Entity Trading Symbol | VODG | |
Document Type | 10-K | |
Document Period End Date | 31-Oct-14 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 793171 | |
Current Fiscal Year End Date | -21 | |
Entity Common Stock, Shares Outstanding | 19,971,822 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | FY | |
Entity Public Float | $2,711,833 |
Balance_Sheets
Balance Sheets (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Current assets: | ||
Cash | $2,767 | $2,197 |
Accounts receivable, net of allowances of $2,500 and $-0- | 2,635 | 4,733 |
Accounts receivable - related parties (Note B) | 18,993 | 700 |
Inventory, at cost | 22,330 | 25,224 |
Prepaid and other current assets | 0 | 302 |
Total current assets | 46,725 | 33,156 |
Equipment, net of accumulated depreciation of $121,560 and $107,092 | 41,851 | 10,764 |
Patents, net of accumulated amortization of $17,195 and $13,999 (Note A) | 14,780 | 17,976 |
Deferred costs (Note A) | 777 | 12,829 |
Other assets | 1,449 | 1,449 |
Total assets | 105,582 | 76,174 |
Current liabilities: | ||
Current maturities on capital lease obligation | 22,957 | 0 |
Lines of credit (Note D) | 38,923 | 37,292 |
Accounts payable | 47,976 | 28,238 |
Accounts payable - related parties (Note B) | 29,766 | 30,391 |
Other accrued liabilities | 2,156 | 0 |
Advances and accrued interest payable to officer (Note B) | 917,852 | 710,924 |
Accrued payroll expenses (Note B) | 1,205,958 | 1,202,808 |
Total liabilities | 2,265,588 | 2,009,653 |
Commitments and contingencies (Notes A, B, C, D, E, F, G,H,I and J) | ||
Shareholders' deficit (Note F): | ||
Preferred stock, $.001 par value; 5,000,000 shares -0- shares issued and outstanding authorized; | 0 | 0 |
Common stock, $.001 par value; 50,000,000 shares authorized; 19,971,822 and 19,803,403 shares issued and outstanding | 19,971 | 19,803 |
Additional paid-in capital | 5,432,847 | 5,413,015 |
Services prepaid with common stock | 0 | 0 |
Accumulated deficit | -7,612,824 | -7,366,297 |
Total shareholders' deficit | -2,160,006 | -1,933,479 |
Total liabilities and shareholders' deficit | $105,582 | $76,174 |
Balance_Sheets_Parentheticals
Balance Sheets (Parentheticals) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Parentheticals | ||
Equipment, accumulated depreciation | $121,560 | $107,092 |
Patents, accumulated amortization | $17,195 | $13,999 |
Preferred Stock, Par Value | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value | $0.00 | $0.00 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares Issued | 19,971,822 | 19,803,403 |
Common Stock, Shares Outstanding | 19,971,822 | 19,803,403 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
REVENUE | ||
Product sales | $94,582 | $34,868 |
Cost of goods sold | -23,019 | -15,069 |
Gross profit | 71,563 | 19,799 |
Professional services income | 48,155 | 3,150 |
Net revenue | 119,718 | 22,949 |
Operating costs and expenses: | ||
Research and development | 182,631 | 119,724 |
Selling, general and administrative | 108,128 | 54,545 |
Total operating costs and expenses | 290,759 | 174,269 |
Loss from operations | -171,041 | -151,320 |
Other income (expense): | ||
Interest expense | -75,486 | -59,884 |
Loss before income taxes | -246,527 | -211,204 |
Provision for income taxes (Note C) | 0 | 0 |
Net (loss) | ($246,527) | ($211,204) |
Net loss per common share, basic and diluted | ($0.01) | ($0.01) |
Shares used in computing net loss per common share: | ||
Basic and diluted | 19,881,321 | 19,589,439 |
Statement_of_Changes_in_Shareh
Statement of Changes in Shareholders' Deficit (USD $) | Preferred Stock Shares | Preferred Amount | Common Stock Shares | Common Stock | Additional Paid-in Capital | Services Prepaid With Common Stock | Accumulated Deficit | Total |
Balance at Oct. 31, 2012 | 0 | 0 | 19,308,912 | 19,309 | 5,382,509 | -1,458 | -7,155,093 | -1,754,733 |
Prepaid services earned(Note-F) | $0 | $0 | $0 | $11,458 | $0 | $11,458 | ||
Common stock issued to director for future services(Note-F) | 0 | 169,491 | 169 | 9,831 | -10,000 | 0 | 0 | |
Common stock issued for consulting services(Note-G) | 0 | 75,000 | 75 | 5,925 | 0 | 0 | 6,000 | |
Conversion of accounts payable(Note-F) | 0 | 250,000 | 250 | 14,750 | 0 | 0 | 15,000 | |
Net loss for the year October 31, 2013 | 0 | 0 | 0 | 0 | 0 | -211,204 | -211,204 | |
Balance at Oct. 31, 2013 | 0 | 19,803,403 | 19,803 | 5,413,015 | 0 | -7,366,297 | -1,933,479 | |
Prepaid services earned; | 0 | 0 | 0 | 20,000 | 0 | 20,000 | ||
Common stock issued to director for future services; | 0 | 168,419 | 168 | 19,832 | -20,000 | 0 | 0 | |
Net loss for the year ended October 31, 2014 | $0 | $0 | $0 | $0 | ($246,527) | ($246,527) | ||
Balance at Oct. 31, 2014 | 0 | 0 | 19,971,822 | 19,971 | 5,432,847 | 0 | -7,612,824 | -2,160,006 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Cash Flows from operating activities: | ||
Net loss | ($246,527) | ($211,204) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Bad debt expense | 2,500 | 0 |
Depreciation and amortization | 17,664 | 15,298 |
Impairment of deferred patent costs | 13,460 | 0 |
Stock-based compensation | 20,000 | 11,458 |
Common stock issued for consulting services | 0 | 6,000 |
Changes in current assets and current liabilities: | ||
Increase in accounts receivable, inventories, prepaid expenses and deposits | -15,499 | 407 |
Increase in accounts payable and accrued expenses | 88,424 | 70,506 |
Net cash used in operating activities | -119,978 | -107,535 |
Cash flows from investing activities: | ||
Purchases of equipment | -1,255 | -5,839 |
Payments for patents and deferred costs | -1,408 | -3,948 |
Net cash used in investing activities | -2,663 | -9,787 |
Cash flows from financing activities: | ||
Proceeds from advances from officer | 141,100 | 114,032 |
Draws (payments) on lines of credit, net | 1,631 | 201 |
Principal payments on capital lease | -19,520 | 0 |
Net cash provided by financing activities | 123,211 | 114,233 |
Net change in cash | 570 | -3,089 |
Cash, beginning of year | 2,197 | 5,286 |
Cash, end of period | 2,767 | 2,197 |
Supplemental disclosure of cash flow information: | ||
Interest | 9,658 | 7,050 |
Income taxes | 0 | 0 |
Non-cash investing and financing activities: | ||
Common stock issued to directors for services | 20,000 | 10,000 |
Common stock issued for consulting services | 0 | 6,000 |
Common stock issued upon conversion of accounts payable | 0 | 15,000 |
Purchase of equipment under capital lease | $44,300 | $0 |
NATURE_OF_ORGANIZATION_AND_SUM
NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||
Oct. 31, 2014 | ||||
NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | ||||
NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE A: NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Nature of Organization | ||||
The Company was incorporated under the laws of Nevada on February 3, 1986. From November of 1990 through July 31, 2000, the Company was engaged in the development, manufacturing and distribution of purified human antigens (“Diagnostics”) that were derived primarily from human tissues. The Company also developed cell technology including immortalization of certain cells that allowed entry into other markets besides diagnostics. However, during the 1990’s, the Company’s sales were solely attributable to the sales of purified human antigens for diagnostic applications. | ||||
Following the sale of its Diagnostics operations in August of 2000, the Company began devoting all efforts to its cellular generation technology which evolved from a focus on induction of cellular immortalization to technology related to stem cells. Stem cell technology has potentially broad application to many medical areas, including drug discovery and development together with numerous therapeutic applications to diseases involving cellular degeneration, injury or to the treatment of cancer. The Company launched a series of products targeting basic research in stem cell technology in 2009. These “Tools for Stem Cell and Drug Discovery™” offer researchers basic tools needed to advance stem cell technology including stem cells and their derivatives, media for growth and differentiation of stem cells and advanced tools for measurement of stem cell quality, potency and response to toxic agents. The Company has been granted patents for its proprietary technology related to the immortalization of human cells and subsequently expanded this technology to include patented and patent-pending technology involving generation of stem cells with potential application to a variety of commercial opportunities including the treatment of degenerative diseases and drug discovery. | ||||
The Company also owns patented technology related to treatment of human infertility. The Company also owns patented technology that provides protection to a specific cell line derived from human pancreatic tissues that gives rise to structures comparable to the Islets of Langerhans (beta islets). These islets also synthesize and secrete insulin in response to elevated glucose levels, as do beta islets contained within pancreatic tissue. Vitro has also developed a process for the commercial production of its cell line-derived islets. Furthermore, the Company previously obtained regulatory approval for an animal protocol to determine reversal of Type I diabetes, a critical step in the demonstration of efficacy. This patent affords an exclusive proprietary position to the Company for a new cellular therapy to treat Type I diabetes. | ||||
The Company is currently focused on revenue generation from its stem cell-based research products and to expanded opportunities for revenue generation in drug discovery and development together with select opportunities in regenerative medicine. | ||||
Basis of Presentation – Going Concern | ||||
The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. However, the Company has suffered significant losses since inception and has working capital and shareholders’ deficits of $(2,218,863) and $(2,160,006), respectively, at October 31, 2014, which raise substantial doubt about its ability to continue as a going concern. In view of these matters, realization of certain of the assets in the accompanying balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to meet its financial requirements, raise additional capital, and generate revenues and profits from operations. | ||||
The financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company has financed its operations primarily through cash advances from the Company’s president, as well as through various private placements of equity securities. Since the year ended October 31, 2012, the President has advanced the Company a total of $255,132 for working capital on an “as needed” basis, including $141,100 during the year ended October 31, 2014. There is no assurance that these advances will continue in the future. | ||||
The Company has various initiatives underway to increase revenue generation through diversified offerings of products and services related to its stem cell technology and analytical capabilities. The goal of these initiatives is to achieve profitable operations as quickly as possible. Also, management has ongoing discussions with potential financial partners who have expressed interest in funding the Company and we intend to pursue these discussions to the full extent possible. Various strategic alliances that are ongoing and under development, are also critical aspects of management’s overall growth and development strategy. | ||||
There is no assurance that these initiatives will yield sufficient capital to maintain the Company’s operations. In such an event, management intends to pursue various strategic alternatives. | ||||
Summary of Significant Accounting Policies | ||||
Use of estimates | ||||
The preparation of the 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||
Cash equivalents | ||||
For the purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. | ||||
Accounts receivable | ||||
Accounts receivable consists of amounts due from customers. The Company considers accounts more than 30 days old to be past due. The Company uses the allowance method for recognizing bad debts. When an account is deemed uncollectible, it is written off against the allowance. The Company generally does not require collateral for its accounts receivable. At October 31, 2014 and 2013, accounts receivable are net of allowances of $2,500 and $-0-, respectively. | ||||
Inventory | ||||
Inventories, consisting of raw materials and finished goods, are stated at the lower of cost (using the specific identification method) or market. Finished goods inventories include certain allocations of labor and overhead. At October 31, 2014 and 2013, finished goods included approximately $5,915 and $9,800, respectively, of labor and overhead allocations. Inventories consisted of the following: | ||||
31-Oct-14 | 31-Oct-13 | |||
Raw materials | $ 12,702 | $ 9,735 | ||
Finished goods | 9,628 | 15,489 | ||
$ 22,330 | $ 25,224 | |||
Shipping and freight costs | ||||
All freight costs associated with the receiving of goods and materials are expensed during the period in which it is received. For the years ended October 31, 2014 and 2013, $6,291 and $4,600, respectively, are included in research and development costs in the accompanying statements of operations. Shipping costs for products shipped to customers is generally charged to the customer at invoicing and are considered a component of the sale transaction. For the years ended October 31, 2014 and 2013, $1,464 and $1,579, respectively, are included in product sales in the accompanying statements of operations. | ||||
Research and development | ||||
The Company’s operations are predominantly in research and development (“R&D”). These costs are expensed as incurred and are primarily comprised of costs for: salaries, overhead and occupancy, contract services and other outside costs, quality assurance and analytical testing. As the Company’s operations include manufacturing and R&D, we report cost of goods sold, including estimates of labor, materials and overhead allocations to the production of specific products manufactured for sale. | ||||
Property, equipment and depreciation | ||||
Property and equipment, generally consisting of laboratory equipment and office equipment and furniture, are stated at cost and are depreciated over the assets’ estimated useful lives ranging from three to seven years using the straight-line method. Depreciation expense totaled $14,468 and $12,101 for the years ended October 31, 2014 and 2013, respectively. | ||||
Upon retirement or disposition of equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in operations. Repairs and maintenance are charged to expense as incurred and expenditures for additions and improvements are capitalized. | ||||
Patents, deferred costs and amortization | ||||
Patents consist of costs incurred to acquire issued patents. Amortization commences once a patent is granted. Costs incurred to acquire patents that have not been issued are reported as deferred costs. If a patent application is denied or expires, the costs incurred are charged to operations in the year the application is denied or expires. | ||||
The Company amortizes patents over a period of ten years. Amortization expense totaled $3,196 and $3,197 for the years ended October 31, 2014 and 2013, respectively. | ||||
Estimated future amortization expense for each of the next five fiscal years is as follows: | ||||
Year ended October 31, | ||||
2015 | $ | 3,198 | ||
2016 | 3,198 | |||
2017 | 3,198 | |||
2018 | 3,198 | |||
2019 | 1,988 | |||
$ | 14,780 | |||
At October 31, 2014, the Company had one patent as follows: | ||||
Generation and differentiation of adult stem cell lines | $ | 31,975 | ||
(This patent is for a proprietary stem cell line with potential application to treatment of diabetes in both animals and humans.) | ||||
Less accumulated amortization | -17,195 | |||
$ | 14,780 | |||
The Company has incurred costs relating to the filing of a United States patent application entitled “POU5-F1 Expression in Human Mesenchymal Stem Cells” and the development of new technology related to generation of human induced pluripotent stem cells (iPS). These costs totaled $10,549 and $10,459 at October 31, 2014 and 2013, respectively. The Company has determined that further pursuit of this patent application has no economic value given its current operating plans. As such, on October 31, 2014 the entire amount of $10,549 was written off and is included in research and development expenses on the accompanying Statements of Operations. | ||||
The Company has also incurred costs relating to the filing of a United States patent application entitled “Methods to Culture Mesenchymal Stem Cells and Related Materials” and the development of new technology related to this patent application. These costs totaled $2,911 and $2,370 at October 31, 2014 and 2013, respectively. The Company has determined that further pursuit of this patent application has no economic value given its current operating plans. As such, on October 31, 2014 the entire amount of $2,911 was written off and is included in research and development expenses on the accompanying Statements of Operations. | ||||
In October 2014, Company incurred costs relating to the provisional filing of a new United States patent application entitled “Treatment of Neurological Conditions by Activation of Neural Stem Cells”. These costs totaled $777, and are included as deferred patent costs in the accompanying balance sheet at October 31, 2014. | ||||
Impairment and Disposal of Long-Lived Assets | ||||
The Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate, in management's judgment, that the carrying value of such assets may not be recoverable. If such assets are considered impaired, the impairment to be recognized is determined as the amount by which the carrying value exceeds the fair value of the assets. | ||||
The Company periodically reviews the carrying amount of it long-lived assets for possible impairment. With the exception of the write offs of certain deferred patent costs as discussed above, the Company recorded no asset impairment charges during either of the years ended October 31, 2014 or 2013. A contingency exists with respect to these matters, the ultimate resolution of which cannot presently be determined. | ||||
Income taxes | ||||
The Company uses the liability method of accounting for income taxes. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. | ||||
Revenue recognition and concentration of revenues | ||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred (or service has been performed), the sales price is fixed and determinable, and collectability is reasonably assured. | ||||
The Company derives a portion of its revenue from data and analysis services, and is included in Professional services income in the accompanying statement of operations. Any costs associated with this revenue are included in the Company’s operating costs and expenses. | ||||
For the year ended October 31, 2014, 54% of the Company’s revenues were attributed to customers of a company controlled by a director. In addition, 24% of revenues were attributed to one other non-related party customer. For the year ended October 31, 2013, 51% of the Company’s revenues were made to customers of a company controlled by this director. Of the remaining 49%, no significant concentrations existed. | ||||
Advertising Costs | ||||
The Company expenses all advertising costs as they are incurred. Advertising costs were $4,724 and $2,119 for the years ended October 31, 2014 and 2013, respectively. | ||||
Consulting Expenses | ||||
From time-to-time the Company engages consultants to perform various professional and administrative functions including public relations and corporate marketing. Expenses for consulting services are generally recognized when services are performed and billable by the consultant. In the event an agreement requires payments in which the timing of the payments is not consistent with the performance of services, expense is recognized as either service events occur, or recognized evenly over the period of the consulting agreement where specific services performed under the agreement are not readily identifiable. Consulting agreements in which compensation is contingent upon the successful occurrence of one or more events are only expensed when the contingency has been, or is reasonably assured, to be met. | ||||
Fair value of financial instruments | ||||
The carrying amounts of cash, accounts receivable, accounts payable and other accrued liabilities approximate fair value due to the short-term maturity of the instruments. Based on the borrowing rates currently available to the Company for loans with similar terms and average maturities, the fair value of long-term obligations consisting of various capital lease obligations approximates its carrying value. | ||||
Concentrations of credit risk | ||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and cash equivalents, and trade accounts receivable. As of October 31, 2014 and October 31, 2013, the Company had no amounts of cash or cash equivalents in financial institutions in excess of amounts insured by agencies of the U.S. Government. | ||||
Net loss per share | ||||
The Company reports net loss per share using a dual presentation of basic and diluted loss per share. Basic net loss per share excludes the impact of common stock equivalents. Diluted net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. For each of the years ended October 31, 2014 and 2013, common stock equivalents of 300,000 representing fully vested outstanding stock options, were not included in the diluted per share calculation as all potentially dilutive securities were anti-dilutive due to the net loss in the period. | ||||
Stock-based compensation | ||||
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (the “ASC”) Topic 718, “Stock Compensation,” establishes fair value as the measurement objective in accounting for share based payment arrangements, and requires all entities to apply a fair value based measurement method in accounting for share based payment transactions with employees. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the period during which the holder is required to provide services in exchange for the award, i.e., the vesting period. | ||||
Recent accounting standards | ||||
In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605—Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This accounting standards update is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. The Company is in the process of assessing the impact of the adoption of accounting standards update No. 2014-09 on its financial position and results of operations. | ||||
In August 2014, FASB issued ASU No. 2014-15 Preparation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Under generally accepted accounting principles (“GAAP”), continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, Presentation of Financial Statements-Liquidation Basis of Accounting. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in this Update should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company will evaluate the going concern considerations in this ASU, however, management does not believe that it has met conditions which would subject these financial statements for additional disclosure. | ||||
There were various other accounting standards and interpretations issued during 2014 and 2013, none of which are expected to have a material impact on the Company’s financial position, operations, or cash flows |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | |
Oct. 31, 2014 | ||
RELATED PARTY TRANSACTIONS: | ||
RELATED PARTY TRANSACTIONS | NOTE B: RELATED PARTY TRANSACTIONS | |
Advances and accrued interest payable to officer | ||
Through October 31, 2014, the Company’s President had advanced the Company a total of $718,114 used for working capital including $141,100 during the year ended October 31, 2014. The advances are uncollateralized, due on demand and accrue interest on the unpaid principal at a rate of 10% per annum. Accrued interest payable on the advances totaled $199,738 and $133,910 at October 31, 2014 and 2013, respectively. The total advances plus accrued interest totaling $917,852 and $710,924 at October 31, 2014 and 2013, respectively, are included as “Advances and accrued interest payable to officer” in the accompanying financial statements. | ||
Employment agreements and accrued compensation | ||
Effective May 1, 2008, the Company entered into an Executive Employment Agreement with its President. The Agreement established annual base salaries of $80,000, $85,000, and $90,000 over the three years of the Agreement, which was to expire on April 30, 2011. On April 27, 2011, the Company’s board of directors ratified a modification to the original agreement establishing an annual base salary of $12,000 per year, effective February 1, 2011 and continuing for three years, expiring February 2, 2014. As of the date of this report, the agreement has expired and the Company is contemplating its options regarding the compensation of the President. The Agreement also provided for incentive compensation based on the achievement of minimum annual product sales and an option to purchase one million shares of the Company’s common stock that includes contingent vesting requirements. As of October 31, 2014, 100,000 of these common stock options were vested, and are exercisable at $0.19 per share and expire in July 2018. These options are further discussed in Note E under the “Stock options granted to officer” caption. | ||
The Company has accrued the salaries of its President due to a lack of working capital. Total accrued salaries and payroll taxes were $1,205,958 and $1,202,808 as of October 31, 2014 and 2013, respectively. The President’s accrued salaries totaled $1,158,422 and $1,155,422 as of October 31, 2014 and 2013, respectively. His salary is allocated as follows: 70% to research and development and 30% to administration. | ||
In addition, accrued salaries totaling $833 are due a former executive officer from a previous employment agreement. | ||
Total accrued payroll taxes on the above salaries totaled $46,703 and $46,553 at October 31, 2014 and 2013, respectively. | ||
Office lease | ||
On July 1, 2008, the Company entered into a five-year non-cancelable operating lease for a facility located in Golden, Colorado, which expired in June 2013. Effective July 1, 2013, the lease was renewed for an additional five-year term expiring July 2018. The facility has been leased from a company that is owned by the President’s wife. | ||
Minimum future rent payments for the remaining term of the lease are as follows: | ||
Fiscal Year Ending | ||
2015 | $ 33,168 | |
2016 | 33,168 | |
2017 | 33,168 | |
2018 | 22,112 | |
Total | $ 121,616 | |
The total rental expense was $26,619 and $26,508 and for the years ended October 31, 2014 and 2013, respectively. At October 31, 2014 and 2013, $26,135 and $26,760, respectively, were unpaid and are included in accounts payable - related parties in the accompanying balance sheets. | ||
Sales and Accounts Receivable | ||
Of the total product sales for the year ended October 31, 2014, $28,528 was made to customers of a company controlled by a director who was elected to the Company’s Board of Directors on February 20. 2013. Of the total product sales for the year ended October 31, 2013, $18,670 was made to customers of a company controlled by this director. | ||
The Company derives a portion of its revenue from data and analysis services, and is included in Professional services income in the accompanying statement of operations. For the year ended October 31, 2014, this revenue totaled $48,155, of which $47,734 of the service income billings were made to customers of a company controlled by a director who was elected to the Company’s Board of Directors on February 20, 2013. For the year ended October 31, 2013 this revenue totaled $3,150, of which $650 of the service income billings were made to customers of a company controlled by this director. | ||
At October 31, 2014 and 2013, $18,993 and $700, respectively, of these sales had not been collected and are included in Accounts receivable, related parties. | ||
In addition, $2,603 of product sales for the year ended October 31, 2014 was made to a company controlled by the President’s wife. For the year ended October 31, 2013, $650 of product sales was made to a company controlled by the President’s wife. At both October 31, 2014 and 2013 all amounts of these sales had been collected. | ||
Other | ||
The President has personally guaranteed all debt instruments of the Company including all credit card debt. | ||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||
Oct. 31, 2014 | ||||||
INCOME TAXES: | ||||||
INCOME TAXES | NOTE C: INCOME TAXES | |||||
A reconciliation of the U.S. statutory federal income tax rate to the effective rate is as follows for the years ended: | ||||||
October 31, | October 31, | |||||
2014 | 2013 | |||||
Benefit related to U.S. federal statutory graduated rate | -31.78% | -30.16% | ||||
Benefit related to State income tax rate, net of federal benefit | -3.16% | -3.23% | ||||
Accrued officer salaries | 0.45% | 1.99% | ||||
Net operating loss for which no tax benefit is currently available | 34.49% | 31.40% | ||||
Effective rate | 0.00% | 0.00% | ||||
The primary components of temporary differences that give rise to the Company’s net deferred tax assets are as follows: | ||||||
October 31, | October 31, | |||||
2014 | 2013 | |||||
Tax credits for net operating loss carry forwards | $ | 1,675,412 | $ | 1,623,138 | ||
Accrued officer salaries | 446,928 | 445,761 | ||||
Deferred tax asset (before valuation allowance) | $ | 2,122,340 | $ | 2,068,899 | ||
At October 31, 2014, deferred taxes consisted of a net tax asset of $2,122,340, due to operating loss carry forwards and other temporary differences of $8,746,467, which was fully allowed for in the valuation allowance of $2,122,340. The valuation allowance offsets the net deferred tax asset for which there is no assurance of recovery. The changes in the valuation allowance for the years ended October 31, 2014 and 2013 totaled $53,442 and $49,556, respectively. Net operating loss carry forwards will expire in various years through 2034. | ||||||
The Company is delinquent on filing its federal and state tax returns and may be subject to penalties and interest. A contingency exists with respect to this matter, the ultimate resolution of which may not be presently determined. | ||||||
The valuation allowance will be evaluated at the end of each year, considering positive and negative evidence about whether the asset will be realized. At that time, the allowance will either be increased or reduced; reduction could result in the complete elimination of the allowance if positive evidence indicates that the value of the deferred tax asset is no longer impaired and the allowance is no longer required. | ||||||
Should the Company undergo an ownership change as defined in Section 382 of the Internal Revenue Code, the Company’s tax net operating loss carry forwards generated prior to the ownership change will be subject to an annual limitation, which could reduce or defer the utilization of these losses. |
LINES_OF_CREDIT
LINES OF CREDIT | 12 Months Ended |
Oct. 31, 2014 | |
LINES OF CREDIT: | |
LINES OF CREDIT | NOTE D: LINES OF CREDIT |
The Company has a $12,500 line of credit, of which $89 was unused at October 31, 2014. The interest rate on the credit line was 21.90% at October 31, 2014. The credit line is collateralized by the Company’s checking account. Principal and interest payments are due monthly. | |
At October 31, 2014 the Company also had three credit cards with a combined credit limit of $28,600, of which $2,089 was unused. The interest rates on the credit cards range from 10.24% to 29.4%, with a weighted average rate of 14.99% at October 31, 2014. |
CAPITAL_LEASE_OBLIGATION
CAPITAL LEASE OBLIGATION | 12 Months Ended | ||
Oct. 31, 2014 | |||
CAPITAL LEASE OBLIGATION: | |||
CAPITAL LEASE OBLIGATION | NOTE E: CAPITAL LEASE OBLIGATION | ||
In November 2013, the Company entered into a capital lease agreement to acquire certain laboratory equipment. The Company is obligated to make 24 monthly payments of $2,006 plus applicable sales and use taxes through October 2015. | |||
Future maturities of the Company’s capital lease obligations are as follows: | |||
Payments due 2015 | $ 24,072 | ||
Less imputed interest | (1,115) | ||
Present value of minimum lease payments | $ 22,957 | ||
The president of the Company has personally guaranteed the lease obligation. | |||
SHAREHOLDERS_DEFICIT
SHAREHOLDERS' DEFICIT | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
SHAREHOLDERS' DEFICIT: | |||||||||||
SHAREHOLDERS' DEFICIT | NOTE F: SHAREHOLDERS’ DEFICIT | ||||||||||
Preferred Stock | |||||||||||
The Company has authorized 5,000,000 shares of $.001 par value preferred stock, of which none were issued and outstanding at October 31, 2014. These shares may be issued in series with such rights and preferences as may be determined by the Board of Directors. | |||||||||||
Stock options granted to officer | |||||||||||
On May 1, 2008, the Company granted a non-qualified stock option to its President to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $0.19 per share, and expire in 2018. On the grant date, the traded market value of the stock was $0.19 per share. The options vest upon the achievement of certain contingencies. As a result of the patent license agreements in March 2011, a contingency was met resulting in the vesting of 100,000 of these options. None of the other contingencies have been met as of October 31, 2014, and as of that date $170,100 of unamortized stock compensation expense remains for the unvested portion of these options. The weighted average exercise price and weighted average fair value of these options on the grant date were $0.19 and $0.19, respectively. | |||||||||||
The fair value of the options was determined to be $189,000, and was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: | |||||||||||
Risk-free interest rate | 3.68% | ||||||||||
Dividend yield | 0.00% | ||||||||||
Volatility factor | 228.72% | ||||||||||
Weighted average expected life | 6.5 years | ||||||||||
Common Stock Issued for Services | |||||||||||
The Company has issued shares of its common stock to certain Directors and members of the Company’s advisory boards. The value of the services is determined by the fair value of the common stock at the time the shares are considered issued. The amounts are capitalized to equity as “services prepaid with common stock” on the Company’s balance sheets until the services are considered earned, at which time they are expensed as stock-based compensation and removed from equity. | |||||||||||
On April 1, 2014, the Company’s Board of Directors ratified the issuance of 114,943 shares of the Company’s common stock to Mr. Pete Shuster, Director, as compensation for services for fiscal year ending October 31, 2014. The transaction was valued at $10,000 or $0.087 per share, which was the weighted average closing price of the Company’s common stock for the last twenty days preceding the date of the transaction. A total of $10,000 has been charged to operations as stock compensation expense for the year ended October 31, 2014. | |||||||||||
On August 18, 2014, the Company’s Board of Directors ratified the issuance of 53,476 shares of the Company’s common stock to Mr. Jeff Liter, Director, as compensation for services for fiscal year ending October 31, 2014. The transaction was valued at $10,000 or $0.187 per share, which was the weighted average closing price of the Company’s common stock for the last twenty days preceding the date of the transaction. A total of $10,000 has been charged to operations as stock compensation expense for the year ended October 31, 2014. | |||||||||||
On February 21, 2013, the Company’s Board of Directors ratified the issuance of 169,491 shares of the Company’s common stock to Mr. Pete Shuster, Director, as compensation for services for fiscal year ending October 31, 2013. The transaction was valued at $10,000 or $0.059 per share, which was the weighted average closing price of the Company’s common stock for the last twenty days preceding the date of the transaction. A total of $10,000 of stock compensation expenses was charged to operations for the year ended October 31, 2013. | |||||||||||
In addition, $1,458 of stock compensation expense was charged to operations for the year ended October 31, 2013 representing services provided by a member of the Company’s Scientific Advisory Board. No such expense was recorded for the year ended October 31, 2014. | |||||||||||
Conversion of accounts payable | |||||||||||
On May 28, 2013, the Company issued 250,000 shares of common stock, $0.001 par value to a consultant in satisfaction for certain professional accounting services previously performed totaling $15,000. The shares were valued at $0.06 per share, the closing price of the Company’s common stock on the effective date. | |||||||||||
Incentive plans | |||||||||||
Effective December 2, 2000, the Company’s Board of Directors adopted an Equity Incentive Plan (the “Plan”), which replaced the Company’s 1992 Stock Option Plan. The purpose of the Plan is to attract and retain qualified personnel, to provide additional incentives to employees, officers, consultants and directors, and to promote the Company’s business. The Plan authorizes total awards of up to 1,000,000 shares of the Company's common stock. Awards may take the form of incentive stock options, non-qualified stock options, restricted stock awards, stock bonuses and other stock grants. If an award made under the Plan expires, terminates, is canceled or settled in cash without the issuance of all shares of common stock covered by the award, those shares will be available for future awards under the Plan. Awards may not be transferred, except by will or the laws of descent and distribution. No awards may be granted, and none have been granted, under the Plan after September 30, 2010. | |||||||||||
The Plan is administered by the Company's Board of Directors, which may delegate its authority to a committee of the Board of Directors. The Board of Directors has the authority to select individuals to receive awards, to determine the time and type of awards, the number of shares covered by the awards, and the terms and conditions of such awards in accordance with the terms of the Plan. In making such determinations, the Board of Directors may take into account the recipient's current and potential contributions and any other factors the Board of Directors considers relevant. The recipient of an award has no choice regarding the form of a stock award. The Board of Directors is authorized to establish rules and regulations and make all other determinations that may be necessary or advisable for the administration of the Plan. All options granted pursuant to the Plan shall be exercisable at a price not less than the fair market value of the common stock on the date of grant. Unless otherwise specified, the options expire ten years from the date of grant. | |||||||||||
At October 31, 2014 a total of 543,500 options had been issued under the Plan, of which 43,500 have expired. The 200,000 options outstanding and vested under the Plan have a weighted average exercise price of $0.08 per share, and a weighted average remaining contractual life of 1.28 years at October 31, 2014. Three hundred thousand outstanding options not yet vested have an exercise price of $0.17 per share, and expire in April 2015. For either the years ended October 31, 2014 and 2013, no compensation expense was recognized for options under the Plan. No additional options may be issued under the Plan. | |||||||||||
The following schedule summarizes the changes in the Company’s stock options including non-qualified options and options issued under the 2000 Plan: | |||||||||||
Number of Shares | Exercise Price Per Share | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price Per Share | ||||||||
Balance at October 31, 2012 | 1,500,000 | $0.08 to $0.19 | 4.75 years | $0.17 | |||||||
Options granted | - | ||||||||||
Options exercised | - | ||||||||||
Options expired | - | ||||||||||
Balance at October 31, 2013 | 1,500,000 | $0.08 to $0.19 | 3.75 years | $0.17 | |||||||
Options granted | - | ||||||||||
Options exercised | - | ||||||||||
Options expired | - | ||||||||||
Balance at October 31, 2014 | 1,500,000 | $0.08 to $0.19 | 2.75 years | $0.17 | |||||||
Exercisable at October 31, 2014 | 300,000 | $0.08 to $0.19 | 2.10 years | $0.12 | |||||||
CONSULTING_AGREEMENTS
CONSULTING AGREEMENTS | 12 Months Ended |
Oct. 31, 2014 | |
CONSULTING AGREEMENTS: | |
CONSULTING AGREEMENTS | NOTE G: CONSULTING AGREEMENTS |
On November 1, 2013, the Company signed a consulting agreement with a financial advisory firm to provide consulting services regarding corporate development and evaluation of strategic financing options that may be available to the Company. In consideration for these services, the consultant received $5,000 upon execution of the agreement, and was entitled to an additional $2,500 per month until termination of the agreement. In addition, the consultant would have been entitled to compensation for certain completed strategic transactions dependent upon the terms of the completed transaction. The initial term of the agreement was two months from execution of the agreement, after which the agreement would automatically renew unless terminated by written notice by either party. On April 1, 2014, the Company’s Board of Directors elected to terminate the agreement effective March 31, 2014. For the year ended July 31, 2014 a total of $15,000 had been paid the consultant and is included in selling, general and administrative expenses in the accompanying statement of operations. | |
On February 7, 2012, the Company’s board of directors ratified the terms of a consulting agreement dated January 24, 2012 with a marketing firm to provide certain public and investor relations services. The agreement had an initial six-month term. It included several phases for which the consultant would be compensated upon completion. The initial phase was completed in fiscal year ended October 31, 2012 for which the consultant received cash compensation of $5,000 and 120,000 shares of the Company’s common stock. Phases II & III includes certain services regarding the Company’s online efforts, including the design and implementation of a more robust Company website, and positioning the Company as a potential investment and supplier of stem cell products within select social media. The consultant was entitled to additional compensation for completion of Phases II & III. In February 2013, it was determined that all phases of the project were complete, and as such the Company issued the consultant 75,000 shares of the Company’s common stock, valued at $6,000, and is included in selling, general and administrative expenses in the accompanying statement of operations for the year ended October 31, 2013. |
PATENT_LICENSE_AGREEMENT
PATENT LICENSE AGREEMENT | 12 Months Ended |
Oct. 31, 2014 | |
PATENT LICENSE AGREEMENT: | |
PATENT LICENSE AGREEMENT | NOTE H: PATENT LICENSE AGREEMENT |
Effective March 30, 2011, the Company entered into a Technology License, License Option and Technical Assistance Agreement with a former officer of the Company, granting him an exclusive license covering two of the Company’s patents: United States Patent Number 5,990,288, Method for Purifying FSH and United States Patent Number 6,458,593 B1, Immortalized Cell Lines and Methods of Making The Same. The patents are related to treatment of infertility and know-how relating to the commercial production and cellular generation of the hormone, follicle-stimulating hormone and related gonadotropin hormones for use in the treatment of infertility in both humans and animals. In addition, the License grants the exclusive option to license a pending patent application for the commercial production of clinical grade gonadotropin hormones and, in addition, the Company’s intellectual property related to generation of crude materials containing gonadotropin hormones from certain cellular sources. The License has an initial term of five years and shall be automatically renewed for additional two year periods until terminated by either party; however, the license can be terminated after two and one-half years if there have been no sales of licensed products. Since there continues to be opportunities for commercialization, the Company has elected not to terminate this agreement at the present time. | |
The licensee was previously an executive officer of the Company, and the Company had carried a $200,833 liability for unpaid compensation. The terms of the license agreement required payment of a non-refundable license fee of $10,000, which was paid by a reduction of the unpaid compensation liability. In addition, the license agreement also required the licensee to forgive an additional $190,000 of the unpaid compensation liability. In addition to the license fee and the forgiveness of the unpaid compensation liability, there shall be royalty payments of 3% and 4% of the gross sales of all licensed products sold by or on behalf of Licensee during the first and second years, respectively. Such royalty payment shall be 4.5% of the gross sales of all licensed products during the third year of product sales and shall remain at that level throughout the remaining term of the agreement. As of October 31, 2014, no sales have been made under this agreement. | |
The parties to this patent license have developed additional business collaborative opportunities involving the Company’s stem cell products, know-how and IP especially related to regenerative medicine applications of modern stem cell technology. |
NONBINDING_LETTER_OF_INTENT
NON-BINDING LETTER OF INTENT | 12 Months Ended |
Oct. 31, 2014 | |
NON-BINDING LETTER OF INTENT: | |
NON-BINDING LETTER OF INTENT | NOTE I: NON-BINDING LETTER OF INTENT |
On October 10, 2013, the Company signed a non-binding letter of intent to acquire and merge with Neuromics, Inc, (“Neuromics”) a privately held life-science firm located in Minneapolis, MN. This letter of intent expired on February 1, 2014 and is no longer in effect. The Company and Neuromics, Inc. now operate in close association including distribution of Vitro products by Neuromics as well as joint development of new business opportunities in regenerative medicine. The Company and Neuromics have agreed to defer any further merger discussions until Vitro achieves profitable operations. | |
Neuromics’ Chief Executive Officer is Mr. Pete Shuster, who has also been a director of Vitro Diagnostics since February 2013. During the year ended October 31, 2014 approximately 54% of Vitro’s total revenues were derived from customers of Neuromics. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Oct. 31, 2014 | |
SUBSEQUENT EVENTS: | |
SUBSEQUENT EVENTS | NOTE J: SUBSEQUENT EVENTS |
The Company has evaluated events subsequent to October 31, 2014 and through the date the financial statements were available to be issued, to assess the need for potential recognition or disclosure in this report. No events were noted that require recognition or disclosure in the financial statements.The Company has evaluated subsequent events through the date that the financial statements were available to be issued. |
Nature_of_Organization_Policie
Nature of Organization (Policies) | 12 Months Ended |
Oct. 31, 2014 | |
Nature of Organization (Policies): | |
Nature of Organization | Nature of Organization |
The Company was incorporated under the laws of Nevada on February 3, 1986. From November of 1990 through July 31, 2000, the Company was engaged in the development, manufacturing and distribution of purified human antigens (“Diagnostics”) that were derived primarily from human tissues. The Company also developed cell technology including immortalization of certain cells that allowed entry into other markets besides diagnostics. However, during the 1990’s, the Company’s sales were solely attributable to the sales of purified human antigens for diagnostic applications. | |
Following the sale of its Diagnostics operations in August of 2000, the Company began devoting all efforts to its cellular generation technology which evolved from a focus on induction of cellular immortalization to technology related to stem cells. Stem cell technology has potentially broad application to many medical areas, including drug discovery and development together with numerous therapeutic applications to diseases involving cellular degeneration, injury or to the treatment of cancer. The Company launched a series of products targeting basic research in stem cell technology in 2009. These “Tools for Stem Cell and Drug Discovery™” offer researchers basic tools needed to advance stem cell technology including stem cells and their derivatives, media for growth and differentiation of stem cells and advanced tools for measurement of stem cell quality, potency and response to toxic agents. The Company has been granted patents for its proprietary technology related to the immortalization of human cells and subsequently expanded this technology to include patented and patent-pending technology involving generation of stem cells with potential application to a variety of commercial opportunities including the treatment of degenerative diseases and drug discovery. | |
The Company also owns patented technology related to treatment of human infertility. The Company also owns patented technology that provides protection to a specific cell line derived from human pancreatic tissues that gives rise to structures comparable to the Islets of Langerhans (beta islets). These islets also synthesize and secrete insulin in response to elevated glucose levels, as do beta islets contained within pancreatic tissue. Vitro has also developed a process for the commercial production of its cell line-derived islets. Furthermore, the Company previously obtained regulatory approval for an animal protocol to determine reversal of Type I diabetes, a critical step in the demonstration of efficacy. This patent affords an exclusive proprietary position to the Company for a new cellular therapy to treat Type I diabetes. | |
The Company is currently focused on revenue generation from its stem cell-based research products and to expanded opportunities for revenue generation in drug discovery and development together with select opportunities in regenerative medicine. |
Basis_of_Presentation_Going_Co
Basis of Presentation - Going Concern (Policies) | 12 Months Ended |
Oct. 31, 2014 | |
Basis of Presentation (Policies): | |
Basis of Presentation (Policies) | Basis of Presentation – Going Concern |
The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. However, the Company has suffered significant losses since inception and has working capital and shareholders’ deficits of $(2,218,863) and $(2,160,006), respectively, at October 31, 2014, which raise substantial doubt about its ability to continue as a going concern. In view of these matters, realization of certain of the assets in the accompanying balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to meet its financial requirements, raise additional capital, and generate revenues and profits from operations. | |
The financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company has financed its operations primarily through cash advances from the Company’s president, as well as through various private placements of equity securities. Since the year ended October 31, 2012, the President has advanced the Company a total of $255,132 for working capital on an “as needed” basis, including $141,100 during the year ended October 31, 2014. There is no assurance that these advances will continue in the future. | |
The Company has various initiatives underway to increase revenue generation through diversified offerings of products and services related to its stem cell technology and analytical capabilities. The goal of these initiatives is to achieve profitable operations as quickly as possible. Also, management has ongoing discussions with potential financial partners who have expressed interest in funding the Company and we intend to pursue these discussions to the full extent possible. Various strategic alliances that are ongoing and under development, are also critical aspects of management’s overall growth and development strategy. | |
There is no assurance that these initiatives will yield sufficient capital to maintain the Company’s operations. In such an event, management intends to pursue various strategic alternatives. | |
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 12 Months Ended | |||
Oct. 31, 2014 | ||||
Accounting Policies: | ||||
Use of Estimates | Use of estimates | |||
The preparation of the 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||
Cash Equivalents | Cash equivalents | |||
For the purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. | ||||
Accounts receivable | Accounts receivable | |||
Accounts receivable consists of amounts due from customers. The Company considers accounts more than 30 days old to be past due. The Company uses the allowance method for recognizing bad debts. When an account is deemed uncollectible, it is written off against the allowance. The Company generally does not require collateral for its accounts receivable. At October 31, 2014 and 2013, accounts receivable are net of allowances of $2,500 and $-0-, respectively. | ||||
Inventory | Inventory | |||
Inventories, consisting of raw materials and finished goods, are stated at the lower of cost (using the specific identification method) or market. Finished goods inventories include certain allocations of labor and overhead. At October 31, 2014 and 2013, finished goods included approximately $5,915 and $9,800, respectively, of labor and overhead allocations. Inventories consisted of the following: | ||||
31-Oct-14 | 31-Oct-13 | |||
Raw materials | $ 12,702 | $ 9,735 | ||
Finished goods | 9,628 | 15,489 | ||
$ 22,330 | $ 25,224 | |||
Shipping and freight costs | Shipping and freight costs | |||
All freight costs associated with the receiving of goods and materials are expensed during the period in which it is received. For the year ended October 31, 2014 and 2013, $6,291 and $4,600, respectively, are included in research and development costs in the accompanying statements of operations. Shipping costs for products shipped to customers is generally charged to the customer at invoicing and are considered a component of the sale transaction. For the years ended October 31, 2014 and 2013, $1,464 and $1,579, respectively, are included in product sales in the accompanying statements of operations. | ||||
Research and development | Research and development | |||
The Company’s operations are predominantly in research and development (“R&D”). These costs are expensed as incurred and are primarily comprised of costs for: salaries, overhead and occupancy, contract services and other outside costs, quality assurance and analytical testing. As the Company’s operations include manufacturing and R&D, we report cost of goods sold, including estimates of labor, materials and overhead allocations to the production of specific products manufactured for sale. | ||||
Property, equipment and depreciation | Property, equipment and depreciation | |||
Property and equipment, generally consisting of laboratory equipment and office equipment and furniture, are stated at cost and are depreciated over the assets’ estimated useful lives ranging from three to seven years using the straight-line method. Depreciation expense totaled $14,468 and $12,101 for the years ended October 31, 2014 and 2013, respectively. | ||||
Upon retirement or disposition of equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in operations. Repairs and maintenance are charged to expense as incurred and expenditures for additions and improvements are capitalized. | ||||
Patents, deferred costs and amortization | Patents, deferred costs and amortization | |||
Patents consist of costs incurred to acquire issued patents. Amortization commences once a patent is granted. Costs incurred to acquire patents that have not been issued are reported as deferred costs. If a patent application is denied or expires, the costs incurred are charged to operations in the year the application is denied or expires. | ||||
The Company amortizes patents over a period of ten years. Amortization expense totaled $3,196 and $3,197 for the years ended October 31, 2014 and 2013, respectively. | ||||
Estimated future amortization expense for each of the next five fiscal years is as follows: | ||||
Year ended October 31, | ||||
2015 | $ | 3,198 | ||
2016 | 3,198 | |||
2017 | 3,198 | |||
2018 | 3,198 | |||
2019 | 1,988 | |||
$ | 14,780 | |||
At October 31, 2014, the Company had one patent as follows: | ||||
Generation and differentiation of adult stem cell lines | $ | 31,975 | ||
(This patent is for a proprietary stem cell line with potential application to treatment of diabetes in both animals and humans.) | ||||
Less accumulated amortization | -17,195 | |||
$ | 14,780 | |||
The Company has incurred costs relating to the filing of a United States patent application entitled “POU5-F1 Expression in Human Mesenchymal Stem Cells” and the development of new technology related to generation of human induced pluripotent stem cells (iPS). These costs totaled $10,549 and $10,459 at October 31, 2014 and 2013, respectively. The Company has determined that further pursuit of this patent application has no economic value given its current operating plans. As such, on October 31, 2014 the entire amount of $10,549 was written off and is included in research and development expenses on the accompanying Statements of Operations. | ||||
The Company has also incurred costs relating to the filing of a United States patent application entitled “Methods to Culture Mesenchymal Stem Cells and Related Materials” and the development of new technology related to this patent application. These costs totaled $2,911 and $2,370 at October 31, 2014 and 2013, respectively. The Company has determined that further pursuit of this patent application has no economic value given its current operating plans. As such, on October 31, 2014 the entire amount of $2,911 was written off and is included in research and development expenses on the accompanying Statements of Operations. | ||||
In October 2014, Company incurred costs relating to the provisional filing of a new United States patent application entitled “Treatment of Neurological Conditions by Activation of Neural Stem Cells”. These costs totaled $777, and are included as deferred patent costs in the accompanying balance sheet at October 31, 2014. | ||||
Impairment or Disposal of Long-Lived Assets | Impairment and Disposal of Long-Lived Assets | |||
The Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate, in management's judgment, that the carrying value of such assets may not be recoverable. If such assets are considered impaired, the impairment to be recognized is determined as the amount by which the carrying value exceeds the fair value of the assets. | ||||
The Company periodically reviews the carrying amount of it long-lived assets for possible impairment. With the exception of the write offs of certain deferred patent costs as discussed above, the Company recorded no asset impairment charges during either of the years ended October 31, 2014 or 2013. A contingency exists with respect to these matters, the ultimate resolution of which cannot presently be determined. | ||||
Income Taxes, Policy | Income taxes | |||
The Company uses the liability method of accounting for income taxes. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. | ||||
Revenue recognition and concentration of revenues | Revenue recognition and concentration of revenues | |||
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred (or service has been performed), the sales price is fixed and determinable, and collectability is reasonably assured. | ||||
The Company derives a portion of its revenue from data and analysis services, and is included in Professional services income in the accompanying statement of operations. Any costs associated with this revenue are included in the Company’s operating costs and expenses. | ||||
For the year ended October 31, 2014, 54% of the Company’s revenues were attributed to customers of a company controlled by a director. In addition, 24% of revenues were attributed to one other non-related party customer. For the year ended October 31, 2013, 51% of the Company’s revenues were made to customers of a company controlled by this director. Of the remaining 49%, no significant concentrations existed. | ||||
Advertising Costs, Policy | Advertising Costs | |||
The Company expenses all advertising costs as they are incurred. Advertising costs were $4,724 and $2,119 for the years ended October 31, 2014 and 2013, respectively. | ||||
Consulting Expenses | Consulting Expenses | |||
From time-to-time the Company engages consultants to perform various professional and administrative functions including public relations and corporate marketing. Expenses for consulting services are generally recognized when services are performed and billable by the consultant. In the event an agreement requires payments in which the timing of the payments is not consistent with the performance of services, expense is recognized as either service events occur, or recognized evenly over the period of the consulting agreement where specific services performed under the agreement are not readily identifiable. Consulting agreements in which compensation is contingent upon the successful occurrence of one or more events are only expensed when the contingency has been, or is reasonably assured, to be met. | ||||
Fair Value of Financial Instruments | Fair value of financial instruments | |||
The carrying amounts of cash, accounts receivable, accounts payable and other accrued liabilities approximate fair value due to the short-term maturity of the instruments. Based on the borrowing rates currently available to the Company for loans with similar terms and average maturities, the fair value of long-term obligations consisting of various capital lease obligations approximates its carrying value. | ||||
Concentrations of credit risk | Concentrations of credit risk | |||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and cash equivalents, and trade accounts receivable. As of October 31, 2014 and October 31, 2013, the Company had no amounts of cash or cash equivalents in financial institutions in excess of amounts insured by agencies of the U.S. Government. | ||||
Net loss per share | Net loss per share | |||
The Company reports net loss per share using a dual presentation of basic and diluted loss per share. Basic net loss per share excludes the impact of common stock equivalents. Diluted net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. For each of the years ended October 31, 2014 and 2013, common stock equivalents of 300,000 representing fully vested outstanding stock options, were not included in the diluted per share calculation as all potentially dilutive securities were anti-dilutive due to the net loss in the period. | ||||
Stock-based compensation | Stock-based compensation | |||
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (the “ASC”) Topic 718, “Stock Compensation,” establishes fair value as the measurement objective in accounting for share based payment arrangements, and requires all entities to apply a fair value based measurement method in accounting for share based payment transactions with employees. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the period during which the holder is required to provide services in exchange for the award, i.e., the vesting period. | ||||
Recent accounting standards | Recent accounting standards | |||
In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605—Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This accounting standards update is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. The Company is in the process of assessing the impact of the adoption of accounting standards update No. 2014-09 on its financial position and results of operations. | ||||
In August 2014, FASB issued ASU No. 2014-15 Preparation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Under generally accepted accounting principles (“GAAP”), continuation of a | ||||
reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, Presentation of Financial Statements-Liquidation Basis of Accounting. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in this Update should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company will evaluate the going concern considerations in this ASU, however, management does not believe that it has met conditions which would subject these financial statements for additional disclosure. |
Schedule_of_Inventories_Tables
Schedule of Inventories (Tables) | 12 Months Ended | |||
Oct. 31, 2014 | ||||
Schedule of Inventories (Tables): | ||||
Schedule of Inventories | Inventories consisted of the following: | |||
31-Oct-14 | 31-Oct-13 | |||
Raw materials | $ 12,702 | $ 9,735 | ||
Finished goods | 9,628 | 15,489 | ||
$ 22,330 | $ 25,224 |
Patents_deferred_costs_and_amo
Patents, deferred costs and amortization (Tables) | 12 Months Ended | ||
Oct. 31, 2014 | |||
Patents, deferred costs and amortization (Tables): | |||
Schedule of Estimated future amortization expense | Estimated future amortization expense for each of the next five fiscal years is as follows: | ||
Year ended October 31, | |||
2015 | $ | 3,198 | |
2016 | 3,198 | ||
2017 | 3,198 | ||
2018 | 3,198 | ||
2019 | 1,988 | ||
$ | 14,780 | ||
Schedule of Company had one patent as follows | At October 31, 2014, the Company had one patent as follows: | ||
Generation and differentiation of adult stem cell lines | $ | 31,975 | |
(This patent is for a proprietary stem cell line with potential application to treatment of diabetes in both animals and humans.) | |||
Less accumulated amortization | -17,195 | ||
$ | 14,780 | ||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||
Oct. 31, 2014 | ||||||
INCOME TAXES (Tables): | ||||||
Schedule of primary components of temporary differences that give rise to the Company's net deferred tax assets | The primary components of temporary differences that give rise to the Company’s net deferred tax assets are as follows: | |||||
October 31, | October 31, | |||||
2014 | 2013 | |||||
Tax credits for net operating loss carry forwards | $ | 1,675,412 | $ | 1,623,138 | ||
Accrued officer salaries | 446,928 | 445,761 | ||||
Deferred tax asset (before valuation allowance) | $ | 2,122,340 | $ | 2,068,899 | ||
Schedule of reconciliation of the U.S. statutory federal income tax rate to the effective rate | A reconciliation of the U.S. statutory federal income tax rate to the effective rate is as follows for the years ended: | |||||
October 31, | October 31, | |||||
2014 | 2013 | |||||
Benefit related to U.S. federal statutory graduated rate | -31.78% | -30.16% | ||||
Benefit related to State income tax rate, net of federal benefit | -3.16% | -3.23% | ||||
Accrued officer salaries | 0.45% | 1.99% | ||||
Net operating loss for which no tax benefit is currently available | 34.49% | 31.40% | ||||
Effective rate | 0.00% | 0.00% | ||||
Schedule_of_future_maturities_
Schedule of future maturities of the Company's capital lease obligations (Tables) | 12 Months Ended | ||
Oct. 31, 2014 | |||
Schedule of future maturities of the Company's capital lease obligations : | |||
Schedule of future maturities of the Company's capital lease obligations | Future maturities of the Company’s capital lease obligations are as follows: | ||
Payments due 2015 | $ 24,072 | ||
Less imputed interest | (1,115) | ||
Present value of minimum lease payments | $ 22,957 | ||
SHAREHOLDERS_DEFICIT_Tables
SHAREHOLDERS' DEFICIT (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
SHAREHOLDERS' DEFICIT (Tables): | |||||||||||
Schedule of fair value options estimated at the date of grant using the Black-Scholes option-pricing model | The fair value of the options was determined to be $189,000, and was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: | ||||||||||
Risk-free interest rate | 3.68% | ||||||||||
Dividend yield | 0.00% | ||||||||||
Volatility factor | 228.72% | ||||||||||
Weighted average expected life | 6.5 years | ||||||||||
Schedule of summary of the changes in the Company's stock options | The following schedule summarizes the changes in the Company’s stock options including non-qualified options and options issued under the 2000 Plan: | ||||||||||
Number of Shares | Exercise Price Per Share | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price Per Share | ||||||||
Balance at October 31, 2012 | 1,500,000 | $0.08 to $0.19 | 4.75 years | $0.17 | |||||||
Options granted | - | ||||||||||
Options exercised | - | ||||||||||
Options expired | - | ||||||||||
Balance at October 31, 2013 | 1,500,000 | $0.08 to $0.19 | 3.75 years | $0.17 | |||||||
Options granted | - | ||||||||||
Options exercised | - | ||||||||||
Options expired | - | ||||||||||
Balance at October 31, 2014 | 1,500,000 | $0.08 to $0.19 | 2.75 years | $0.17 | |||||||
Exercisable at October 31, 2014 | 300,000 | $0.08 to $0.19 | 2.10 years | $0.12 | |||||||
Basis_of_Presentation_Going_Co1
Basis of Presentation - Going Concern(Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Going concern details | ||
Working capital and shareholders' deficits | ($2,218,863) | ($2,160,006) |
Cash_Advances_Details
Cash Advances (Details) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2012 | |
Cash Asvances details | ||
Cash advances from the Company's president | $255,132 | |
President has given cash advance for working capital | $141,100 |
Accounts_receivable_Details
Accounts receivable (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Net Allowances details | ||
Accounts receivable are net of allowances | $2,500 | $0 |
InventoriesLabour_and_Overhead
Inventories-Labour and Overhead (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Labour and Overhead details | ||
Inventory, Raw Materials and Supplies, Gross | $12,702 | $9,735 |
Inventory, Finished Goods, Gross | 9,628 | 15,489 |
Inventory, Gross | $22,330 | $25,224 |
Finished_Goods_Details
Finished Goods (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Finished goods details | ||
Finished goods inventories | $5,915 | $9,800 |
Shipping_and_freight_costs_Det
Shipping and freight costs (Details) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Freight ,Goods and Materials received details | ||
All freight costs associated with the receiving of goods and materials are expensed amounted | $6,291 | $4,600 |
Shipping costs for products shipped to customers charged | $1,464 | $1,579 |
Property_equipment_and_depreci
Property, equipment and depreciation(Details) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Depreciation expenses details | ||
Depreciation expense totaled | $14,468 | $12,101 |
Patents_deferred_costs_and_amo1
Patents, deferred costs and amortization (Details) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Patents, deferred costs and amortization Details | ||
Amortization expense totaled | $3,196 | $3,197 |
Company has incurred costs relating toExpression in Human Mesenchymal Stem Cells | 10,549 | 10,459 |
Company has incurred costs relating to Methods to Culture Mesenchymal Stem Cells and Related Materials | 2,911 | 2,370 |
Company incurred costs relating to Treatment of Neurological Conditions by Activation of Neural Stem Cells | $777 | $0 |
Estimated_future_amortization_
Estimated future amortization expense (Details) (USD $) | Oct. 31, 2014 |
Future Amortization expenses | |
Estimated future amortization expense for the year 2015 | $3,198 |
Estimated future amortization expense for the year 2016 | 3,198 |
Estimated future amortization expense for the year 2017 | 3,198 |
Estimated future amortization expense for the year 2018 | 3,198 |
Estimated future amortization expense for the year 2019 | 3,198 |
Total Estimated future amortization expense for five years | $14,780 |
Patent_Details
Patent (Details) (USD $) | Oct. 31, 2014 |
Company had one patent as follows: | |
Generation and differentiation of adult stem cell lines | $31,975 |
Less accumulated amortization | -17,195 |
Patent net amount | $14,780 |
Revenue_recognition_and_concen
Revenue recognition and concentration of revenues(Details) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Revenue recognition and concentration details | ||
Company's revenues were attributed to customers of a company controlled by a director | 54.00% | |
Revenues were attributed to one other non-related party customer | 24.00% | |
Company's revenues were made to customers of a company controlled by this director | 51.00% | |
Remaining revenue s were | 49.00% |
Advertising_CostsDetails
Advertising Costs(Details) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Advertising Costs Details | ||
Advertising costs were | $4,724 | $2,119 |
Advances_and_accrued_interest_
Advances and accrued interest payable to officer(Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Advances and accrued interest details | ||
Company's President had advanced the Company a total | $718,114 | |
Accrue interest on the unpaid principal at a rate per annum | 10.00% | |
Accrued interest payable on the advances totaled | 199,738 | 133,910 |
The total advances plus accrued interest totaling | $917,852 | $710,924 |
Employment_agreements_and_accr
Employment agreements and accrued compensation(Details) (USD $) | Oct. 31, 2014 | 27-May-11 | 1-May-10 | 1-May-09 | 1-May-08 |
Employment agreement and compensation details | |||||
The Agreement established annual base salaries | $90,000 | $85,000 | $80,000 | ||
Annual base salary per year | $12,000 | ||||
Common stock options were vested | 100,000 | ||||
Exercise price per share | $0.19 |
Accured_Salaries_Details
Accured Salaries (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Accured salaries details | ||
Total accrued salaries and payroll taxes were | $1,205,958 | $1,202,808 |
The President's accrued salaries totaled | 1,158,422 | 1,155,422 |
President's salary allocated to research and development | 70.00% | |
President's salary allocated to adminstration | 30.00% | |
Accrued salaries totaling are due a former executive officer from a previous employment agreement | 833 | |
Total accrued payroll taxes on the above salaries totaled | $46,703 | $46,533 |
Office_lease_Details
Office lease (Details) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Office lease details | ||
The total rental expense was | $26,619 | $26,508 |
Rental expenses unpaid and included in accounts payable - related parties | $26,135 | $26,760 |
Sales_and_Accounts_Receivable_
Sales and Accounts Receivable (Details) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Sales and Accounts Receivable details | ||
Total product sales | $28,528 | $18,670 |
Revenue totaled | 48,155 | 3,150 |
Out of total revenue billing services | 47,734 | 650 |
Product sales Controlled by president's wife | $2,603 | $650 |
Accounts_ReceivableRelated_Par
Accounts Receivable-Related Parties(Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Accounts receivable Related Parties details | ||
Sales Included in Accounts receivable , related Parties | $18,993 | $700 |
Income_Tax_Rate_Reconciliation
Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
A reconciliation of the U.S. statutory federal income tax rate to the effective rate | ||
Benefit related to U.S. federal statutory graduated rate | -31.78% | -30.16% |
Benefit related to State income tax rate, net of federal benefit | -3.16% | -3.23% |
Accrued officer salaries | 0.45% | 1.99% |
Net operating loss for which no tax benefit is currently available | 34.49% | 31.40% |
Effective rate | 0.00% | 0.00% |
Deferred_Tax_Assets_Details
Deferred Tax Assets (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Deferred Tax Assets Details | ||
Tax credits for net operating loss carry forwards | $1,675,412 | $1,623,138 |
Accrued officer salaries | 446,928 | 445,761 |
Deferred tax asset (before valuation allowance) | $2,122,340 | $2,068,899 |
Deferred_Taxes_Details
Deferred Taxes (Details) (USD $) | Oct. 31, 2014 |
Deferred taxes details | |
Deferred taxes consisted of a net tax asset of | $2,122,340 |
Due to operating loss carry forwards and other temporary differences | 8,746,467 |
Valuation allowance | $2,122,340 |
Difference_of_Valuation_allowa
Difference of Valuation allowance (Details) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Difference of Valuation allowance Details | ||
Changes of Valuation allowance | $53,442 | $49,556 |
LINES_OF_CREDIT_Details
LINES OF CREDIT (Details) (USD $) | Oct. 31, 2014 |
Line of credit details | |
Company has line of credit | $12,500 |
Unused line of credit | 89 |
Interest Rate on line of Credit | 21.90% |
Company also had three credit cards with a combined credit limit | 28,600 |
Unused credit card limit amount | $2,089 |
The interest rate on credit cards minimum | 10.24% |
The interest rate on credit cards maximum | 29.40% |
weighted average rate on credit card | 14.99% |
CAPITAL_LEASE_OBLIGATION_Detai
CAPITAL LEASE OBLIGATION (Details) (USD $) | Oct. 31, 2014 |
Future maturities of the Company's capital lease obligations | |
Company is obligated to make 24 monthly payments | $2,006 |
Payments due 2015 | 24,072 |
Less imputed interest | -1,115 |
Present value of minimum lease payments | $22,957 |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | Oct. 31, 2014 |
Preferred Stock Details | |
The Company has authorized shares of preferred stock | 5,000,000 |
Preferred stock shares par value | $0.00 |
Stock_options_granted_to_offic
Stock options granted to officer (Details) (USD $) | Oct. 31, 2014 | Mar. 31, 2011 | 1-May-08 |
Stock options granted to officer | |||
Company granted a non-qualified stock option to its President to purchase shares | 1,000,000 | ||
Company's common stock at an exercise price | $0.19 | ||
Result of the patent license agreements was vesting of options | 100,000 | ||
Unamortized stock compensation expense remains for the unvested portion of these options | 170,100 | ||
The weighted average exercise price and weighted average fair value of these options | $0.19 | ||
The fair value of the options was determined | $189,000 |
BlackScholes_optionpricing_mod
Black-Scholes option-pricing model Assumptions (Details) | Oct. 31, 2014 |
Pricing model Assumptions | |
Risk-free interest rate | 3.68% |
Dividend yield | 0.00% |
Volatility factor | 228.72% |
Weighted average expected life in years | 6.5 |
Common_Stock_Issued_for_Servic
Common Stock Issued for Services (Details) (USD $) | Aug. 18, 2014 | Apr. 01, 2014 | Feb. 21, 2013 |
Issuance of shares to Directors | |||
Company's Board of Directors ratified the issuance of shares to Mr.Pete Shuster,Mr. Jeff Liter | 53,476 | 114,943 | 169,491 |
The transaction was valued at | $10,000 | $10,000 | $10,000 |
The transaction per share | $0.19 | $0.09 | $0.06 |
Conversion_of_accounts_payable
Conversion of accounts payable (Details) (USD $) | 28-May-13 |
Issuance of shares to a Consultant | |
Company issued common stock shares to a consultant for a Certain professional Accounting services | 250,000 |
Common stock per share value issued to a consultant | $0.00 |
Shares were issued for a Certain professional Accounting services value | $15,000 |
The closing price of the Company's common stock on the effective date. | $0.06 |
Incentive_plans_Details
Incentive plans (Details) (USD $) | Oct. 31, 2014 | Dec. 02, 2000 |
Incentive plans | ||
Shares of the Company's common stock authorized under the Incentive plan | 1,000,000 | |
Total of options issued under the Plan | 543,500 | |
Total of options expired under the Plan | 43,500 | |
Options outstanding and vested under the Plan have a weighted average exercise price per share | 0.08 | |
Weighted average remaining contractual life in years | 1.28 | |
Options outstanding and not vested under the Plan | 300,000 | |
Options outstanding and not vested under the Plan have a weighted average exercise price per share | $0.17 |
Summary_of_the_changes_in_the_
Summary of the changes in the Company's stock options issued under the 2000 Plan (Details) | Number of Shares | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price Per Share |
Balance of stock options Exercise Price Per Share ranging 0.08 to $0.19 at Oct. 31, 2012 | 1,500,000 | 4.75 | 0.17 |
Options granted | 0 | ||
Options exercised | 0 | ||
Options expired | 0 | ||
Balance of stock options Exercise Price Per Share ranging 0.08 to $0.19 at Oct. 31, 2013 | 1,500,000 | 3.75 | 0.17 |
Options granted | 0 | ||
Options exercised | 0 | ||
Options expired | 0 | ||
Exercisable stock options Exercise Price Per Share ranging 0.08 to $0.19 at Oct. 31, 2014 | 300,000 | 2.1 | 0.12 |
Balance of stock options Exercise Price Per Share ranging 0.08 to $0.19 at Oct. 31, 2014 | 1,500,000 | 2.75 | 0.17 |
Consulting_agreement_with_a_fi
Consulting agreement with a financial advisory firm (Details) (USD $) | Jul. 31, 2014 | Oct. 31, 2013 |
Consulting agreement with a financial advisory firm | ||
Amount paid upon execution of the agreement agreement with a financial advisory firm to provide consulting services | $5,000 | |
Amount payable per month until termination of the agreement with a financial advisory firm to provide consulting services | 2,500 | |
Total amount paid to the consultant and is included in selling, general and administrative expenses | $15,000 |
Consulting_agreement_with_a_ma
Consulting agreement with a marketing firm (Details) (USD $) | 12 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
Consulting agreement with a marketing firm | ||
Consultant received cash compensation | $5,000 | |
Consultant received shares of the Company's common stock | 75,000 | 120,000 |
Value of shares issued to Consultant included in selling, general and administrative expenses | $6,000 |
License_agreement_Details
License agreement (Details) (USD $) | Mar. 30, 2011 |
License agreement | |
Company had carried a liability for unpaid compensation | $200,833 |
The terms of the license agreement required payment of a non-refundable license fee | 10,000 |
License agreement also required the licensee to forgive an additional amount of the unpaid compensation liability | $190,000 |
Royalty payment shall be a percentage of the gross sales of all licensed products during the first year of product sales | 3.00% |
Royalty payment shall be a percentage of the gross sales of all licensed products during the second year of product sales | 4.00% |
Royalty payment shall be a percentage of the gross sales of all licensed products during the third year of product sales | 4.50% |