Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 30, 2015 | Jun. 19, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | 3DX Industries, Inc. | |
Entity Central Index Key | 1,453,122 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2015 | |
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 Common Stock, Shares Outstanding | 37,461,409 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) | Apr. 30, 2015 | Oct. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 5,133 | $ 2,074 |
Accounts receivable | $ 12,514 | |
Prepaid insurance | $ 1,614 | |
Total current assets | $ 17,647 | 3,688 |
Property and equipment | ||
Manufacturing equipment | 1,254,571 | 1,254,571 |
Furniture and fixtures | 638 | 638 |
Computer equipment | 1,005 | 1,005 |
Less accumulated depreciation | (165,410) | (75,585) |
Total property and equipment | 1,090,804 | 1,180,629 |
Other assets | ||
Website development (net accumulated amortization of $2,358 and $1,691) | 1,762 | 2,429 |
Security deposit | 4,975 | 4,275 |
Total other assets | 6,737 | 6,704 |
Total assets | 1,115,188 | 1,191,021 |
Current liabilities | ||
Accounts payable and accrued expenses | 554,715 | 331,595 |
Payables to related parties | 220,945 | 149,135 |
Equipment purchase payable - current portion | 218,364 | 196,378 |
Accrued compensation - convertible | 174,000 | 174,000 |
Current portion of note payable - unrelated party | 342,414 | 236,495 |
Total current liabilities | 1,510,438 | 1,087,603 |
Long-term liabilities | ||
Equipment purchase payable | 368,818 | 479,362 |
Convertible note payable - related party | 500,000 | 500,000 |
Convertible notes payable - unrelated party | $ 312,253 | 157,541 |
Note payable - unrelated parties | 52,897 | |
Total long-term liabilities | $ 1,181,071 | 1,189,800 |
Total liabilities | $ 2,691,509 | $ 2,277,403 |
Stockholders' deficit | ||
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none outstanding | ||
Common stock, 175,000,000 shares authorized, $0.001 par value, 37,461,409 shares issued at April 30, 2015 and at October 31, 2014 | $ 37,461 | $ 37,461 |
Additional paid-in capital | 14,931,530 | 14,931,530 |
Accumulated deficit | (16,545,312) | (16,055,373) |
Total stockholder's deficit | (1,576,321) | (1,086,382) |
Total liabilities and stockholder's deficit | $ 1,115,188 | $ 1,191,021 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Apr. 30, 2015 | Oct. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accumulated amortization of website development | $ 2,358 | $ 1,691 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 37,461,409 | 37,461,409 |
Common stock, shares outstanding | 37,461,409 | 37,461,409 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 59,130 | $ 168,633 | ||
Cost of goods sold | 8,207 | 32,090 | ||
Gross profit | 50,923 | 136,543 | ||
Operating expenses | ||||
Depreciation and amortization | 44,735 | 90,492 | ||
Professional services | 68,805 | $ 36,158 | 137,152 | $ 48,419 |
General and administrative expenses | 184,344 | 102,854 | 376,716 | 9,637,777 |
Total operating expenses | $ 297,884 | 139,012 | $ 604,360 | 9,686,196 |
Other income (expense) | ||||
Gain on settlement of indebtedness | (4,831,200) | (4,829,408) | ||
Interest expense | $ (6,457) | (13,593) | $ (22,122) | (21,426) |
Total other (expense) | (6,457) | (4,844,793) | (22,122) | (4,850,834) |
Net loss | $ (253,418) | $ (4,983,805) | $ (489,939) | $ (14,537,030) |
Net loss per common share - basic and diluted | $ (0.01) | $ (0.14) | $ (0.01) | $ (0.48) |
Weighted average number of common shares outstanding | 37,461,409 | 35,419,611 | 37,461,409 | 30,485,276 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (489,939) | $ (14,537,030) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation expense | 89,825 | 271 |
Amortization expense - website development | $ 667 | 250 |
Loss on settlement of debt | 4,829,408 | |
Stock-based compensation | $ 9,450,000 | |
Changes in operating assets and liabilities | ||
(Increase) decrease in accounts receivable | $ (12,514) | |
(Increase) decrease in prepaid expenses | $ 1,614 | $ (4,811) |
(Increase) decrease in security deposit | (4,275) | |
Increase (decrease) in accounts payable | $ 184,832 | $ 27,715 |
Increase (decrease) in accounts payable - related party | $ 71,810 | |
Increase in deferred rent | $ 7,235 | |
Increase (decrease) in accrued interest | $ 16,936 | 21,427 |
Increase (decrease) in accrued compensation - related parties | (700) | 73,000 |
Net cash used in operating activities | $ (137,469) | (136,840) |
Cash flows from investing activities: | ||
Equipment purchases | (92,773) | |
Website development | (2,620) | |
Net cash used in investing activities | (95,393) | |
Cash flows from financing activities: | ||
Proceeds from third party borrowing | $ 193,000 | 250,000 |
Repayments on third party borrowing | $ (52,472) | (12,510) |
Proceeds from related party borrowing | 24,038 | |
Repayments on related party borrowing | (19,575) | |
Net cash provided by financing activities | $ 140,528 | 241,953 |
Increase (decrease) in cash | 3,059 | 9,720 |
Cash - beginning of period | 2,074 | 2,460 |
Cash - end of period | 5,133 | 12,180 |
Supplemental disclosures of cash flow information: | ||
Interest paid | $ 7,988 | $ 4,729 |
Income taxes paid |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Apr. 30, 2015 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION 3DX Industries, Inc. (the Company) was incorporated in the state of Nevada on October 23, 2008. The Companys principal activity presently is manufacturing and our head office is located near Bellingham WA, USA. The Company manufactures consumer and corporate products using an additive manufacturing method through 3D Metal printing technology and conventional precision manufacturing processes. Financial Statements Presented The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 210 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature. Operating results for the six month period ended April 30, 2015, are not necessarily indicative of the results that may be expected for the fiscal year ending October 31, 2015. For further information refer to the financial statements and footnotes thereto included in the Companys Annual Report on Form 10-K/A for the fiscal year ended October 31, 2014 as filed with the Securities and Exchange Commission on February 18, 2015. |
Going Concern
Going Concern | 6 Months Ended |
Apr. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | Going Concern The Company has incurred net losses since inception, and as of April 30, 2015 had a combined accumulated deficit of $16,545,312 and had negative working capital of $1,492,791. These conditions raise substantial doubt as to the Company's ability to continue as a going concern. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management recognizes that the Company must generate additional funds to enable it to continue operating. Management intends to raise additional financing through debt and or equity financing and by other means that it deems necessary, with the goal of moving forward and sustaining a prolonged growth in its strategy phases. However, no assurance can be given that the Company will be successful in raising additional capital. Further, even if the company raises additional capital, there can be no assurance that the Company will achieve profitability or positive cash flow. If management is unable to raise additional capital and expected significant revenues do not result in positive cash flow, the Company will not be able to meet its obligations and may have to cease operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Apr. 30, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Loss Per Share of Common Stock The Company follows Accounting Standard Codification Topic No. 260, Earnings Per Share (ASC No. 260) that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. The calculation of diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with ASC No. 260, any anti-dilutive effects on net earnings (loss) per share are excluded. Potential common shares at April 30, 2015 and April 30, 2014 that have been excluded from the computation of diluted net loss per share include an option to convert approximately $4,117 in fees due to Santeo Financial Corporation at April 30, 2015 and 2014 into 4,117,060 common shares. Potential common shares at April 30, 2015 that have been excluded from the computation of diluted net loss per share include an option to convert approximately $3,470 in fees due Santeo Financial Corporation at April 30, 2015 into 3,470,099 common shares. Accounts receivable and allowance for doubtful accounts Accounts receivable are reported at the invoiced amount less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts based on a combination of specific customer circumstances and credit conditions taking into account the history of write-offs and collections. A receivable is considered past due if payment has not been received within the period agreed upon in the invoice. Accounts receivable are written off after all collection efforts have been exhausted. Recoveries of trade receivables previously written off are recorded when received. Revenue recognition The Company recognizes revenue when it is realized or realizable and earned when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price to the buyer is fixed or determinable, and collectability is reasonably assured. Revenue is recognized upon transfer of title and risk of loss, which is generally upon the shipment of finished goods. Freight billed to customers is included in revenues, and all freight expenses paid by the Company are included in cost of revenue. Reclassification Certain reclassifications have been made to conform the 2014 amounts to 2015 classifications for comparative purposes. Recent Accounting Pronouncements The Companys management has evaluated all recent accounting pronouncements since the last audit through the issuance date of these financial statements. In the Companys opinion, none of the recent accounting pronouncements will have a material effect on the financial statements. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Apr. 30, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 3 - RELATED PARTY TRANSACTIONS On December 18, 2013, the Company purchased various equipment relating to its 3D metal printing operation from Mr. Janssen for $500,000. The $500,000 is evidenced by a promissory note assessed interest at an annual rate of 1.64%. Accrued interest is payable quarterly with the Principal balance and any unpaid accrued interest fully due and payable on December 15, 2018. Mr. Janssen has the right to convert any outstanding principal and accrued interest into restricted shares of the of the Companys common stock at a conversion price of $0.50 per share. The balance due Mr. Janssen at April 30, 2015 totaled $511,264 (October 31, 2014 - $507,022) of which the accrued interest of $11,264 was classified as a short-term liability and the $500,000 was classified as a long-term liability. The accrued interest of $11,264 was charged to operations. The Company has not paid any accrued interest. |
EQUIPMENT
EQUIPMENT | 6 Months Ended |
Apr. 30, 2015 | |
Property and equipment | |
EQUIPMENT | NOTE 4 - EQUIPMENT By way of agreement concurrent with Mr. Janssens appointment to the Board of Directors and entry into an Employment Agreement (see Note 6 Commitments and Contingencies below) and executed on December 18, 2013, the Company purchased various equipment relating to the post production processes for its 3D metal printing operation from Mr. Janssen, our sole officer and director, for $500,000 which amount has been capitalized on our balance sheet. On December 23, 2013, the Company purchased equipment from an unrelated third party for $750,000 of which $75,000 was paid on purchase. The remaining $675,000 is payable in two installments: $375,000 due June 1, 2014 and $300,000 due on September 1, 2014. The terms of the installment payments do not include a stated interest rate, therefore, the Company accounted for the purchase under ASC Topic 835-30-25 Imputation of Interest The Company failed to make the required installment payments when they became due and on October 23, 2014, the Company and the seller agreed to modify the terms of the obligation due. Under the modified terms, the balance of the note as of October 23, 2014 increased to $675,000, which is evidenced by a promissory note which is assessed interest at an annual rate of 5% per annum. Principal and accrued interest are paid in monthly installments of $20,230 commencing on December 1, 2014. During the six months ended April 30, 2015, the Company paid $60,460, of which $52,472 was applied to the principal and $7,988 applied to interest. The Company has met its payment obligations up to February 2015 and is in default of its current payment obligations. The Company has entered into negotiations with the third party to revise the payment schedule with respect to the purchase. The balance due on this obligation at April 30, 2015 is $587,182 (October 31, 2014 - $675,740). A schedule of each years principal payments for this obligation is as follows: Principal Year ended Reduction October 31, 2015 $ 107,820 October 31, 2016 223,881 October 31, 2017 235,335 October 31, 2018 20,146 $ 587,182 During the year ended October 31, 2014 in connection with the aforementioned equipment purchase, the Company capitalized an additional $23,366 in respect of installation costs. Capitalized manufacturing equipment (gross) at April 30, 2015 and October 31, 2014 totaled $1,254,571. |
NOTES PAYABLE - UNRELATED PARTY
NOTES PAYABLE - UNRELATED PARTY | 6 Months Ended |
Apr. 30, 2015 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE - UNRELATED PARTY | NOTE 5 - NOTES PAYABLE UNRELATED PARTY (1) Santeo Financial Corp (Santeo) Santeo Financial Corp advanced $25,000 to the Company on February 14, 2015. The $25,000 is evidenced by an unsecured promissory note bearing interest at a rate of 10%. The interest shall be accrued beginning on August 1, 2015. Outstanding principal and accrued interest is fully due and payable on December 31, 2016. The holder has the right to convert any or all of the outstanding principal and accrued interest into shares of the Companys common stock at a conversion rate of $0.10 per share. Upon conversion, the holder has certain registration rights. The Company is obligated to bear all costs associated with the registration of the shares. The outstanding balance at April 30, 2015 amounted to $25,000 (October 31, 2014 - $nil). As per the terms of the agreement, no accrued interest was charged during the six month period ended April 30, 2015. (2) The ExOne Company As further detailed above in Note 5 Equipment, on October 23, 2014 the Company entered into a Secured Promissory Note, Loan and Security Agreement (the Note) in the principal amount of $675,000 with interest accruing at a rate of 5% per annum. Under the terms of the Note, principal and accrued interest are paid in monthly installments of $20,230 commencing on December 1, 2014. The note is secured by a lien on the purchased equipment. During the six months ended April 30, 2015, the Company paid $60,460, of which $52,472 was applied to the principal and $7,988 applied to interest. The Company has met its payment obligations up to February 2015 and is in default of its current payment obligations. The Company has entered into negotiations with ExOne to revise the payment schedule with respect to the purchase. (3) Lender 1 a. 5% various notes payable Balance, October 31, 2014 $ 223,478 Additional: Principal 43,000 Accrued interest 6,470 Balance, April 30, 2015 $ 272,948 During the six months ended April 30, 2015, the Company received an additional $43,000 in loans from the aforementioned party which is assessed interest 5% per annum and mature at various dates through December 15, 2015. b. 5% promissory note In addition to the loans indicated above, the same lender advanced $150,000 to the Company on November 5, 2013. The $150,000 is evidenced by an unsecured promissory note bearing interest at a rate of 5%. Outstanding principal and accrued interest is fully due and payable on December 31, 2015. Effective January 1, 2015, the holder has the right to convert any or all of the outstanding principal and accrued interest into shares of the Companys common stock at a conversion rate of $0.10 per share. Upon conversion, the holder has certain registration rights. The Company is obligated to bear all costs associated with the registration of the shares. The outstanding balance at April 30, 2015 amounted to $161,260 (October 31, 2014 - $157,541). Accrued interest charged to operation for the six months period ended April 30, 2015 and 2014 totaled $3,719 and $3,760, respectively. (4) Lender 2 Balance, October 31, 2014 $ 67,855 Additional: Principal Accrued interest 1,611 Balance, April 30, 2015 $ 69,466 On September 9, 2013, the Company borrowed $30,000 from a third party. The loan is evidenced by an unsecured promissory note. The loan is assessed interest at an annual rate of 5% per annum with principal and accrued interest fully due and payable on May 1, 2014. The outstanding balance was not paid on its due date. On March 7, 2014, the Company borrowed an additional $35,000 from the same party noted above. The loan is evidenced by an unsecured promissory note. The loan is assessed interest at an annual rate of 5% per annum with principal and accrued interest fully due and payable on December 31, 2014. Accrued interest charged to operations for the six month periods ended April 30, 2015 and 2014 amounted to $1,611 and $1,130, respectively. (5) Lender 3 On November 18, 2014, the Company borrowed $25,000 from a third party (Note 1). The $25,000 is evidenced by an unsecured promissory note bearing interest at a rate of 10% beginning April 1, 2015. Outstanding principal and accrued interest is fully due and payable on December 01, 2015. The holder has the right to convert any or all of the outstanding principal and accrued interest into shares of the Companys common stock at a conversion rate of $0.30 per share. On December 10, 2014, the Company further borrowed $100,000 from a third party (Note 2). The $100,000 is evidenced by an unsecured promissory note bearing interest at a rate of 10% beginning April 1, 2015. Outstanding principal and accrued interest is fully due and payable on December 31, 2016. The holder has the right to convert any or all of the outstanding principal and accrued interest into shares of the Companys common stock at a conversion rate of $0.15 per share. Pursuant to ASC Topic 470-20, Debt with Conversion and Other Options, there is no beneficial conversion feature associated with these promissory notes because the conversion rate is equal or greater than the fair market value on the issuance date. Note 1 Note 2 Balance, October 31, 2014 $ $ Additional: Principal 25,000 100,000 Accrued interest 199 795 Balance, April 30, 2015 $ 25,199 $ 100,795 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Apr. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 6 - COMMITMENTS AND CONTINGENCIES Effective November 23, 2013, the Company entered into an employment agreement with its President and Chief Executive Officer, Roger Janssen. Under the terms of the agreement, Mr. Janssen will receive a base salary of $15,000 a month over the three-year term of the agreement. At the sole discretion of the board of directors, Mr. Janssen may be granted performance bonuses and may also participate in any incentive plans that the Company may establish. In addition, Mr. Janssen received 30,000,000 shares of the Companys restricted common stock as a signing bonus. The shares were valued at $4,800,000 based upon the trading price of the shares on the date of grant. Officers compensation for the year ended October 31, 2014 amounted to $4,887,449 including the indicated stock based compensation of $4,800,000. Accrued compensation due Mr. Janssen as of January 31, 2015 amounted to $180,238 (October 31, 2014 - $149,135), which is included in the balance of other payables related parties as reflected in the accompanying balance sheet. The $180,238 is net of $14,496 that was actually paid to Mr. Janssen during the three months ended January 31, 2015. In January 2014, the Company entered into lease for warehouse and corporate office space located in Ferndale, Washington for 26 months. The Company was granted an option to extend the lease for another two years. On March 30, 2015, the Company entered into an equipment rental agreement with Santeo Financial Corp. with respect to certain manufacturing equipment. The term of rental is 24 months, with an option to purchase the equipment at any time up to the end of the rental agreement. Under the terms of the agreement the Company paid a security deposit of $700 and agreed to a monthly rental fee of $350 with the first month payable upon signing. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Apr. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 7 SUBSEQUENT EVENTS |
SUMMARY OF SIGNIFICANT ACCOUN14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Apr. 30, 2015 | |
Accounting Policies [Abstract] | |
Loss Per Share of Common Stock | Loss Per Share of Common Stock The Company follows Accounting Standard Codification Topic No. 260, Earnings Per Share (ASC No. 260) that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. The calculation of diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with ASC No. 260, any anti-dilutive effects on net earnings (loss) per share are excluded. Potential common shares at April 30, 2015 and April 30, 2014 that have been excluded from the computation of diluted net loss per share include an option to convert approximately $4,117 in fees due to Santeo Financial Corporation at April 30, 2015 and 2014 into 4,117,060 common shares. In addition, potential common shares at April 30, 2015 that have been excluded from the computation of diluted net loss per share include an option to convert approximately $3,470 (2014 - Nil) in fees due Santeo Financial Corporation at April 30, 2015 into 3,470,099 common shares. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable are reported at the invoiced amount less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts based on a combination of specific customer circumstances and credit conditions taking into account the history of write-offs and collections. A receivable is considered past due if payment has not been received within the period agreed upon in the invoice. Accounts receivable are written off after all collection efforts have been exhausted. Recoveries of trade receivables previously written off are recorded when received. |
Revenue recognition | Revenue recognition The Company recognizes revenue when it is realized or realizable and earned when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price to the buyer is fixed or determinable, and collectability is reasonably assured. Revenue is recognized upon transfer of title and risk of loss, which is generally upon the shipment of finished goods. Freight billed to customers is included in revenues, and all freight expenses paid by the Company are included in cost of revenue. |
Reclassification | Reclassification Certain reclassifications have been made to conform the 2014 amounts to 2015 classifications for comparative purposes. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Companys management has evaluated all recent accounting pronouncements since the last audit through the issuance date of these financial statements. In the Companys opinion, none of the recent accounting pronouncements will have a material effect on the financial statements. |
EQUIPMENT (Tables)
EQUIPMENT (Tables) | 6 Months Ended |
Apr. 30, 2015 | |
Equipment Tables | |
Schedule of each year's principal payments for equipment purchase payable obligation | Principal Year ended Reduction October 31, 2015 $ 107,820 October 31, 2016 223,881 October 31, 2017 235,335 October 31, 2018 20,146 $ 587,182 |
NOTES PAYABLE - UNRELATED PAR16
NOTES PAYABLE - UNRELATED PARTY (Tables) | 6 Months Ended |
Apr. 30, 2015 | |
Notes Payable - Unrelated Party Tables | |
Lender notes payable | (3) Lender 1 a. 5% various notes payable Balance, October 31, 2014 $ 223,478 Additional: Principal 43,000 Accrued interest 6,470 Balance, April 30, 2015 $ 272,948 (4) Lender 2 Balance, October 31, 2014 $ 67,855 Additional: Principal Accrued interest 1,611 Balance, April 30, 2015 $ 69,466 (5) Lender 3 Note 1 Note 2 Balance, October 31, 2014 $ $ Additional: Principal 25,000 100,000 Accrued interest 199 795 Balance, April 30, 2015 $ 25,199 $ 100,795 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | Apr. 30, 2015 | Oct. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ (16,545,312) | $ (16,055,373) |
Working capital | $ (1,492,791) |
SUMMARY OF SIGNIFICANT ACCOUN18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 6 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Anti-dilutive effects excluded (1) | ||
Fees excluded from computation of diluted net loss per share | $ 4,117 | $ 4,117 |
Shares of common stock converted from fees excluded from computation of diluted net loss per share | 4,117,060 | 4,117,060 |
Anti-dilutive effects excluded (2) | ||
Fees excluded from computation of diluted net loss per share | $ 3,470 | |
Shares of common stock converted from fees excluded from computation of diluted net loss per share | 3,470,099 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - Equipment Purchased from Mr. Janssen - USD ($) | 6 Months Ended | ||
Apr. 30, 2015 | Oct. 31, 2014 | Dec. 18, 2013 | |
Equipment purchased from Mr. Janssen | $ 500,000 | ||
Promissory note, annual interest rate | 1.64% | ||
Due date of principal balance and any unpaid accrued interest | Dec. 15, 2018 | ||
Conversion price of note | $ 0.50 | ||
Total balance due to Mr. Janssen | $ 511,264 | $ 507,022 | |
Accrued interest classified as short-term liability | 11,264 | ||
Purchase price balance classified as long-term liability | $ 500,000 |
EQUIPMENT - Schedule of each ye
EQUIPMENT - Schedule of each year's principal payments for equipment purchase payable obligation (Details) - USD ($) | 12 Months Ended | 47 Months Ended | |||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2018 | |
Equipment - Schedule Of Each Years Principal Payments For Equipment Purchase Payable Obligation Details | |||||
Principal reduction | $ 20,146 | $ 235,335 | $ 223,881 | $ 107,820 | $ 587,182 |
EQUIPMENT (Details Narrative)
EQUIPMENT (Details Narrative) - USD ($) | Dec. 23, 2013 | Apr. 30, 2015 | Oct. 31, 2014 | Oct. 31, 2018 | Sep. 01, 2014 | Jun. 01, 2014 |
Property and equipment | ||||||
Equipment purchased from unrelated third party | $ 750,000 | |||||
Amount paid for equipment purchased | 75,000 | $ 60,460 | ||||
Payment applied to principal | 52,472 | |||||
Payment applied to interest | 7,988 | |||||
Remaining balance for equipment purchased | 675,000 | 587,182 | $ 675,740 | |||
Payment installments for equipment purchased | $ 300,000 | $ 375,000 | ||||
Discounted purchase price of equipment | $ 18,795 | |||||
Purchase price, interest rate | 5.00% | |||||
Total gross capitalized value of equipment | $ 731,025 | 1,254,571 | ||||
Monthly installment payment amount | $ 20,230 | |||||
Additional capitalized installation costs | 23,366 | |||||
Capitalized manufacturing equipment (gross) | $ 1,254,571 | $ 1,254,571 |
NOTES PAYABLE - UNRELATED PAR22
NOTES PAYABLE - UNRELATED PARTY - Lender notes payable (Details) - USD ($) | 6 Months Ended | |
Apr. 30, 2015 | Oct. 31, 2014 | |
Lender 1 - 5% promissory note | ||
Balance of notes payable | $ 272,948 | $ 223,478 |
Additional: Principal | 43,000 | |
Accrued interest | 6,470 | |
Lender 2 | ||
Balance of notes payable | $ 69,466 | $ 67,855 |
Additional: Principal | ||
Accrued interest | $ 1,611 | |
Lender 3 - Note 1 | ||
Balance of notes payable | 25,199 | |
Additional: Principal | 25,000 | |
Accrued interest | 199 | |
Lender 3 - Note 2 | ||
Balance of notes payable | 100,795 | |
Additional: Principal | 100,000 | |
Accrued interest | $ 795 |
NOTES PAYABLE - UNRELATED PAR23
NOTES PAYABLE - UNRELATED PARTY (Details Narrative) - USD ($) | 6 Months Ended | |||||||
Apr. 30, 2015 | Apr. 30, 2014 | Dec. 10, 2014 | Nov. 18, 2014 | Oct. 31, 2014 | Mar. 07, 2014 | Nov. 05, 2013 | Sep. 09, 2013 | |
Lender 1 - 5% various notes payable | ||||||||
Loans borrowed | $ 43,000 | |||||||
Interest rate on loans and advances | 5.00% | |||||||
Lender 1 - 5% promissory note | ||||||||
Loans borrowed | $ 150,000 | |||||||
Interest rate on loans and advances | 5.00% | |||||||
Outstanding balance on advance | $ 161,260 | $ 157,541 | ||||||
Accrued interest charged to operations | 3,719 | $ 3,760 | ||||||
Common stock conversion rate | $ 0.10 | |||||||
Lender 2 | ||||||||
Loans borrowed | $ 35,000 | $ 30,000 | ||||||
Interest rate on loans and advances | 5.00% | 5.00% | ||||||
Accrued interest charged to operations | $ 1,611 | $ 1,130 | ||||||
Lender 3 | ||||||||
Loans borrowed | $ 100,000 | $ 25,000 | ||||||
Interest rate on loans and advances | 10.00% | 10.00% | ||||||
Common stock conversion rate | $ 0.15 | $ 0.30 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2015 | Oct. 31, 2014 | Mar. 30, 2017 | Mar. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
CEO base monthly salary | $ 15,000 | ||||
Agreement term | 3 years | ||||
Shares of restricted common stock received by CEO as signing bonus, shares | 30,000,000 | ||||
Shares of restricted common stock received by CEO as signing bonus, value | $ 4,800,000 | ||||
Officer's compensation | 4,887,449 | ||||
Accrued compensation due to CEO, net | $ 180,238 | $ 149,135 | |||
Accrued compensation to CEO, paid | $ 14,496 | ||||
Warehouse and corporate office space lease length | 26 months | ||||
Equipment rental agreement term | 24 months | ||||
Security deposit paid on equipment rental | $ 700 | ||||
Monthly rental fee of equipment rental | $ 350 |