Use of Estimates
The preparation of 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 at the date of the balance sheet. Actual results could
differ from those estimates.
Principles of Consolidation
The consolidated financial statements of the
Company include the Company and its wholly-owned and majority-owned subsidiaries. All material intercompany balances
and transactions have been eliminated.
The Company during consolidation of the foreign
subsidiary accounts for the exchange rate by using the average of the exchange rate on the first day of the period being reported
and the exchange rate on the last day of the same period.
Cash and Cash Equivalents
The Company considers all highly liquid investments
purchased with an original maturity of three months or less to be cash equivalents.
Stock Based Compensation
The company adopted the provisions of ASC 718
requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured
at grant date, based on the fair value of the award and is recognized as expense over the requisite employee service period. The
Company estimates the fair value of share-based payments using the Black-Scholes option-pricing model for common stock options
and the closing price of the companys common stock for common share issuances.
The Companys revenue is recognized pursuant
to ASC 605 Revenue Recognition. The Company recognizes its revenue from services after the services have been performed
and the revenue has been received. The Company also sells products to its clients and the revenue is recognized at the point of
sale when the product is given to the client and the payment is made by the client.
General and Administrative Expenses
The Companys general and administrative
expenses consisted of the following types of expenses during the years ended October 31, 2012 and 2011: compensation expense, payroll
expense, rent, travel and entertainment, legal and accounting, utilities, web sites, office expenses, depreciation and other administrative
Impairment of long-lived assets
The Company reviews the carrying value of its
long-lived assets annually or whenever events or changes in circumstances indicate that the historical-cost carrying value of an
asset may no longer be appropriate. The Company assesses recoverability of the asset by comparing the undiscounted future net cash
flows expected to result from the asset to its carrying value. If the carrying value exceeds the undiscounted future net cash flows
of the asset, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book
value and the fair value of the long-lived asset. Fair value is estimated based upon either discounted cash flow analysis or estimated
Basic and diluted net income per share
Basic and diluted net income per share calculations
are calculated on the basis of the weighted average number of common shares outstanding during the year. They include the dilutive
effect of common stock equivalents in years with net income. Basic and diluted net income per share is the same due to the absence
of common stock equivalents.
Income taxes are provided in accordance with
Accounting Standards Codification (ASC), Topic 740 Accounting for Income Taxes. A deferred tax asset or liability
is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax
expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced
by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred
tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates
on the date of enactment.
Recently Issued Accounting Pronouncements
The Company does not expect the adoption of
any recently issued accounting pronouncements to have a significant impact on their financial position, results of operations or