**EXHIBIT      11.1 **

|                                                                                                                              |   | **Three                Months Ended****July****31,** |       | **Nine                Months Ended****July                31,** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|------------|-----------------------------------------------------------------|--------|
|                                                                                                                              |   | **2007****(Restated)**                               |       | **2008**                                                        |   | **2007****(Restated)** |   | **2008** |   |
| Numerator:                                                                                                                        |   |                                                 |       |                                                            |   |   |   |   |   |   |   |   |   |
| Net                (loss)                                                                                                         |   | $                                                    | (672,858   | )                                                               | $      | (941,686 | ) | $ | (2,046,541 | ) | $ | (1,607,842 | ) |
|                                                                                                                              |   |                                                 |       |                                                            |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                                      |   |                                                 |       |                                                            |   |   |   |   |   |   |   |   |   |
| Denominator                for basic earnings per share- weighted-average shares                                                  |   |                                                 | 14,293,560 |                                                            |   | 14,595,649 |   |   | 14,277,024 |   |   | 14,426,565 |   |
| Effect                of dilutive securities:                                                                                     |   |                                                 |       |                                                            |   |   |   |   |   |   |   |   |   |
| Employee                stock options                                                                                             |   |                                                 | -          |                                                            |   | - |   |   | - |   |   | - |   |
| Restricted                stock                                                                                                   |   |                                                 | -          |                                                            |   | - |   |   | - |   |   | - |   |
| Warrants                                                                                                                          |   |                                                 | -          |                                                            |   | - |   |   | - |   |   | - |   |
|                                                                                                                              |   |                                                 |       |                                                            |   |   |   |   |   |   |   |   |   |
| Denominator                for diluted earnings per share adjusted weighted-average shares and                assumed conversions |   |                                                 | 14,293,560 |                                                            |   | 14,595,649 |   |   | 14,277,024 |   |   | 14,426,565 |   |
|                                                                                                                              |   |                                                 |       |                                                            |   |   |   |   |   |   |   |   |   |
| Basic                and diluted (loss) per share:                                                                                |   |                                                 |       |                                                            |   |   |   |   |   |   |   |   |   |
|                                                                                                                              |   |                                                 |       |                                                            |   |   |   |   |   |   |   |   |   |
| Basic                and diluted (loss) per share                                                                                 |   | $                                                    | (0.05      | )                                                               | $      | (0.06 | ) | $ | (0.14 | ) | $ | (0.11 | ) |

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