Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
3 Months Ended
Jan. 31, 2011
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 11 - INCOME TAXES 

 

The Company has adopted FASB ASC Topic 740 Income Taxes which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes are insignificant.

 

For income tax reporting purposes, the Company’s aggregate U.S. unused net operating losses are $28,725,074 which expire through 2029, subject to limitations of Section 382 of the Internal Revenue Code, as amended. The deferred tax asset related to the carry forward is $9,766,525. The Company has provided a valuation reserve against the full amount of the net operating loss benefit, because in the opinion of management based upon the earning history of the Company, it is more likely than not that the benefits will not be realized.

 

For income tax reporting purposes, the Company’s aggregate UK unused net operating losses approximate $4,364,843 with no expiration. The deferred tax asset related to the carry-forward is approximately $1,823,000. The Company has provided a valuation reserve against the full amount of the benefits, because in the opinion of management based upon the earning history of the Company, it is more likely than not that the benefits will not be realized.

 

Components of deferred tax assets as of January 31, 2011 and October 31, 2010 are as follows:

 

Non-Current   2011     2010  
             
Net Operating Loss Carry Forward   $ 9,766,525     $ 9,607,177  
Valuation Allowance     (9,766,525 )     (9,607,177 )
                 
Net Deferred Tax Asset   $ -     $ -