v3.7.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Jul. 31, 2017
Oct. 31, 2016
Current assets:    
Cash and cash equivalents $ 1,833,768 $ 2,488,323
Short-term investments in certificates of deposit 4,251,000 750,000
Accounts receivable 221,049
Prepaid expenses and other current assets 140,274 162,069
Total current assets 6,446,091 3,400,392
Patents, net of accumulated amortization of $1,209,013 and $965,040, respectively 1,827,098 2,071,071
Property and equipment, net of accumulated depreciation of $79,046 and $46,950, respectively 141,433 156,644
Total assets 8,414,622 5,628,107
Current liabilities:    
Accounts payable and accrued expenses 926,688 468,756
Secured debenture (Note 7) 2,000,000
Total current liabilities 2,926,688 468,756
Patent acquisition obligation 4,171,876
Total liabilities 2,926,688 4,640,632
Commitments and contingencies (Note 11)
Shareholders’ equity:    
Preferred stock, par value $100 per share; 19,860 shares authorized; no shares issued or outstanding, 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 $.01 per share; 24,000,000 shares authorized;15,120,239 and 8,752,387 shares issued and outstanding, respectively 151,202 87,524
Additional paid-in capital 159,725,096 152,051,144
Accumulated deficit (154,388,364) (151,165,193)
Total shareholders’ equity 5,487,934 987,475
Total liabilities and shareholders’ equity 8,414,622 5,628,107
Series A Preferred Stock [Member]    
Shareholders’ equity:    
Preferred stock, par value $100 per share; 19,860 shares authorized; no shares issued or outstanding, Series A convertible preferred stock, par value $100 per share; 140 shares authorized; -0- and 140 shares issued and outstanding, respectively 14,000
Preferred Stock [Member]    
Shareholders’ equity:    
Preferred stock, par value $100 per share; 19,860 shares authorized; no shares issued or outstanding, Series A convertible preferred stock, par value $100 per share; 140 shares authorized; -0- and 140 shares issued and outstanding, respectively

Source

v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
3 Months Ended 9 Months Ended
Jul. 31, 2017
Jul. 31, 2016
Jul. 31, 2017
Jul. 31, 2016
Revenue $ 362,500 $ 100,000 $ 362,500 $ 100,000
Operating costs and expenses:        
Litigation and licensing expenses 8,551 2,022 83,713
Inventor royalties and contingent legal fees 141,451 61,720 141,451 61,720
Amortization of patents 81,325 81,324 243,973 243,972
Research and development expenses (including non-cash stock option compensation expenses of $64,705, $84,316,$213,333 and $171,241, respectively) 362,968 292,063 1,245,722 1,142,973
Marketing, general and administrative expenses (including non-cash stock option compensation expenses of $416,411, $156,125, $719,440 and $398,949 respectively) 1,507,681 631,226 3,067,235 2,163,332
Total operating costs and expenses 2,093,425 1,074,884 4,700,403 3,695,710
Loss from operations (1,730,925) (974,884) (4,337,903) (3,595,710)
Gain on extinguishment of patent acquisition obligation (Note 6) 1,547,608
Interest expense (71,667) (132,357) (442,693) (383,238)
Interest income 8,192 3,466 9,817 10,190
Loss before income taxes (1,794,400) (1,103,775) (3,223,171) (3,968,758)
Provision for income taxes
Net loss (1,794,400) (1,103,775) (3,223,171) (3,968,758)
Deemed dividend to preferred stockholder (Note 7) (2,008,775)
Net loss attributable to common stockholders $ (1,794,400) $ (1,103,775) $ (5,231,946) $ (3,968,758)
Net loss per common share:        
Basic and diluted (in Dollars per share) $ (0.12) $ (0.13) $ (0.47) $ (0.45)
Weighted average common shares outstanding:        
Basic and diluted (in Shares) 14,561,754 8,745,423 11,030,992 8,736,167

Source

v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
9 Months Ended
Jul. 31, 2017
Jul. 31, 2016
Reconciliation of net loss to net cash used in operating activities:    
Net loss $ (3,223,171) $ (3,968,758)
Stock option compensation to employees and directors 932,773 570,190
Common stock issued to consultants 17,811 27,996
Depreciation of property and equipment 32,096 24,915
Amortization of patents 243,973 243,972
Accretion of interest on patent acquisition obligations to interest expense 228,026 383,238
Accrued interest on secured debenture 20,667
Gain on extinguishment of patent acquisition obligation (1,547,608)
Common stock issued to acquire patent license 11,800
Change in operating assets and liabilities:    
Accounts receivable (221,049)
Prepaid expenses and other current assets 21,795 70,100
Accounts payable and accrued expenses 437,265 150,859
Royalties and contingent legal fees payable (213,017)
Net cash used in operating activities (3,057,422) (2,698,705)
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (4,251,000) (1,900,000)
Proceeds from maturities of short-term investments in certificates of deposit 750,000 2,400,000
Purchase of property and equipment (16,885) (144,650)
Net cash (used in) provided by investing activities (3,517,885) 355,350
Cash flows from financing activities:    
Redemption of convertible preferred stock (500,000)
Payments made on secured debenture (1,000,000)
Proceeds from sale of common stock through a rights offering to shareholders 4,203,302
Proceeds from sale of common stock through a public offering 3,211,785
Proceeds from exercise of employee stock options 5,665 23,381
Net cash provided by financing activities 5,920,752 23,381
Net decrease in cash and cash equivalents (654,555) (2,319,974)
Cash and cash equivalents at beginning of period 2,488,323 4,369,219
Cash and cash equivalents at end of period 1,833,768 2,049,245
Supplemental disclosure of non-cash financing activities:    
Redemption of Series A convertible preferred stock into secured debenture (Note 7) (3,000,000)
Common stock issued to pay patent acquisition obligation (Note 6) $ (2,852,294)

Source