v3.6.0.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Jan. 31, 2017
Oct. 31, 2016
Current assets:    
Cash and cash equivalents $ 1,399,954 $ 2,488,323
Short-term investments in certificates of deposit 600,000 750,000
Prepaid expenses and other current assets 68,589 162,069
Total current assets 2,068,543 3,400,392
Patents, net of accumulated amortization of $1,046,365 and $965,040, respectively 1,989,747 2,071,071
Property and equipment, net of accumulated depreciation of $57,455 and $46,950, respectively 160,260 156,644
Total assets 4,218,550 5,628,107
Current liabilities:    
Accounts payable and accrued expenses 723,947 468,756
Secured debenture (Note 6) 3,000,000  
Total current liabilities 3,723,947 468,756
Patent acquisition obligation (Note 10) 4,313,175 4,171,876
Total liabilities 8,037,122 4,640,632
Commitments and contingencies (Note 10)
Shareholders’ equity:    
Preferred stock, par value $100 per share; 19,860 shares authorized; no shares issued or outstanding and Series A convertible preferred stock, par value $100 per share; 140 shares authorized; -0- and 140 shares issued and outstanding, respectively 14,000
Common stock, par value $0.01 per share; 24,000,000 shares authorized; 8,758,050 and 8,752,387 shares issued and outstanding, respectively 87,581 87,524
Additional paid-in capital 148,848,300 152,051,144
Accumulated deficit (152,754,453) (151,165,193)
Total shareholders’ (deficiency) equity (3,818,572) 987,475
Total liabilities and shareholders’ equity 4,218,550 5,628,107
Preferred Stock [Member]    
Shareholders’ equity:    
Preferred stock, par value $100 per share; 19,860 shares authorized; no shares issued or outstanding and Series A convertible preferred stock, par value $100 per share; 140 shares authorized; -0- and 140 shares issued and outstanding, respectively
Series A Preferred Stock [Member]    
Shareholders’ equity:    
Preferred stock, par value $100 per share; 19,860 shares authorized; no shares issued or outstanding and Series A convertible preferred stock, par value $100 per share; 140 shares authorized; -0- and 140 shares issued and outstanding, respectively $ 14,000

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v3.6.0.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
3 Months Ended
Jan. 31, 2017
Jan. 31, 2016
Revenue
Operating costs and expenses:    
Litigation and licensing expense 2,121 59,641
Amortization of patents 81,324 81,324
Research and development expenses (including non-cash stock option compensation expenses of $79,700 and $18,946, respectively) 451,630 458,051
Marketing, general and administrative expenses (including non-cash stock option compensation expenses of $180,037 and $93,549, respectively) 859,885 873,423
Total operating costs and expenses 1,394,960 1,472,439
Loss from operations (1,394,960) (1,472,439)
Interest expense (Notes 6 and 10) (195,299) (123,901)
Interest income 999 3,251
Loss before income taxes (1,589,260) (1,593,089)
Provision for income taxes
Net loss (1,589,260) (1,593,089)
Deemed dividend to preferred stockholder (Note 6) (2,008,775)  
Net loss attributable to common stockholders $ (3,598,035) $ (1,593,089)
Net loss per common share:    
Basic and diluted (in Dollars per share) $ (0.41) $ (0.18)
Weighted average common shares outstanding:    
Basic and diluted (in Shares) 8,755,057 8,727,035

Source

v3.6.0.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
3 Months Ended
Jan. 31, 2017
Jan. 31, 2016
Reconciliation of net loss to net cash used in operating activities:    
Net loss $ (1,589,260) $ (1,593,089)
Stock option compensation to employees and directors 259,737 112,495
Common stock issued to consultants 17,811 6,360
Depreciation of property and equipment 10,505 3,849
Amortization of patents 81,324 81,324
Accretion of interest on patent acquisition obligations to interest expense 141,299 123,901
Accrued interest on secured debenture 54,000  
Common stock issued to acquire patent license   11,800
Change in operating assets and liabilities:    
Prepaid expenses and other current assets 93,480 70,754
Accounts payable and accrued expenses 201,191 655,453
Royalties and contingent legal fees payable   (5,228)
Net cash used in operating activities (729,913) (532,381)
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit   (250,000)
Proceeds from maturities of short-term investments in certificates of deposit 150,000 500,000
Payments for purchases of property and equipment (14,121) (106,012)
Net cash provided by investing activities 135,879 143,988
Cash flows from financing activities:    
Redemption of convertible preferred stock (500,000)  
Exercise of stock options 5,665  
Net cash used in financing activities (494,335)  
Net decrease in cash and cash equivalents (1,088,369) (388,393)
Cash and cash equivalents at beginning of period 2,488,323 4,369,219
Cash and cash equivalents at end of period 1,399,954 $ 3,980,826
Supplemental disclosure of non-cash financing activities:    
Redemption of Series A Preferred Stock into secured debenture (Note 6) $ (3,000,000)  

Source