Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statement of Cash Flows (Unaudited)

v3.5.0.2
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)
3 Months Ended
Jan. 31, 2011
Jan. 31, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net (loss) income $ (468,670) $ 773,103
Adjustments to reconcile net (loss) income to net cash used in (provided by) operating activities:    
Depreciation and amortization 41,969 123,376
Impairment of goodwill 31,940
Stock based compensation 279,963 6,483
Change in fair value of warrant liability (273,904) (1,554,908)
Non-cash interest expense 384,435 323,030
Amortization of deferred financing costs 60,532
Loss on investment in marketable securities 1,700
Changes in operating assets and liabilities:    
Accounts receivable (424,772) 216,390
Inventory 62,414 237,651
Prepaid expenses (67,249) 2,070
Other receivables 33,948
Unbilled receivables and Other assets (177,747)
Accounts payable and accrued expenses (543,754) (211,033)
Deferred revenues 1,045,960
Net cash (used in) provided by operating activities (107,715) 10,642
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property and equipment (84,210)
Purchases of intangible assets (48,148) (7,690)
Cash subject to restriction (101,643) (27,556)
Net cash used in investing activities (234,001) (35,246)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Repayment of loans (150,000)
Net cash used in financing activities (150,000)
Effect of exchange rate changes on cash 621,105 (55,620)
Net increase (decrease) in cash 129,389 (80,224)
Cash and cash equivalents, beginning of period 215,204 275,885
Cash and cash equivalents, end of period 344,593 195,661
Cash paid for:    
Interest 38,845 58,020
Income taxes