Annual report pursuant to Section 13 and 15(d)

Consolidated Statement of Cash Flows

v3.5.0.2
Consolidated Statement of Cash Flows - USD ($)
 12 Months Ended
Oct. 31, 2010
Oct. 31, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,778,316) $ (9,433,139)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 274,019 689,744
Stock based compensation 51,771 290,722
Impairment of goodwill 142,430
Non cash interest expense 1,128,224 1,292,167
Amortization of debt issuance cost 1,271,170 242,128
Write-off of common stock subscription (19,350)
Impairment of investment in marketable securities 782,000
Bad debt expense 9,325 238,458
Change in fair value of warrant liability (2,557,543)
Loss on abandonment of fixed assets 11,370
Gain on settlement of payables (694,510)
(Gain) loss on investment in marketable securities (13,625) 11,636
(Increase) decrease in operating assets:    
Accounts receivable 160,712 593,621
Inventory 1,018,311 (445,850)
Prepaid expenses 29,075 138,696
Other receivables 208,423 (161,462)
Increase (decrease) in operating liabilities:    
Accounts payable and accrued expenses (313,602) 4,055,979
Deferred revenues 815,701
Due to related parties 40,228
Net cash used in operating activities (256,415) (1,665,070)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Proceeds from sale (payment for purchases) of property and equipment 46,271 (47,758)
Purchases of intangible assets (20,635) (18,524)
Proceeds from sales of marketable securities 49,750
Acquisition Payments (10,061) (181,317)
Change in restricted cash 166,815 22,926
Cash acquired in acquisitions 877
Net cash provided by (used in) investing activities 232,140 (223,796)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net proceeds from loans and notes payable 246,319 (1,530,086)
Preferred stock dividend (101,256)
Net cash used in financing activities 246,319 (1,631,342)
Effect of exchange rate changes on cash (282,725) (100,056)
Net decrease in cash (60,681) (3,620,264)
Cash and cash equivalents, beginning of year 275,885 3,896,149
Cash and cash equivalents, end of year 215,204 275,885
Cash paid for:    
Interest 716,387 172,842
Income taxes
Supplemental Disclosures of Non-cash Investing and Financing Activities:    
Cumulative effect of warrant liability (4,929,623)
Reclassification of common stock subscription to accrued liabilities 62,000
Dragon Design Ltd [Member]    
Acquisition    
Current assets acquired 147,039
Cash acquired 877
Equipment acquired 51,336
Goodwill and other intangible assets 342,013
Liabilities assumed (201,166)
Deferred payments (250,782)
Cash Paid for Acquisition 89,317
Tactical Intelligence LLC [Member]    
Acquisition    
Equipment acquired 5,000
Goodwill and other intangible assets 252,430
Options issued (7,430)
Deferred note payable (125,000)
Cash Paid for Acquisition $ 125,000