v3.7.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Apr. 30, 2017
Oct. 31, 2016
Current assets:    
Cash and cash equivalents $ 2,876,897 $ 2,488,323
Short-term investments in certificates of deposit 2,250,000 750,000
Prepaid expenses and other current assets 64,647 162,069
Total current assets 5,191,544 3,400,392
Patents, net of accumulated amortization of $1,127,688 and $965,040, respectively 1,908,423 2,071,071
Property and equipment, net of accumulated depreciation of $68,228 and $46,950, respectively 149,487 156,644
Total assets 7,249,454 5,628,107
Current liabilities:    
Accounts payable and accrued expenses 660,023 468,756
Secured debenture (Note 7) 3,000,000
Total current liabilities 3,660,023 468,756
Patent acquisition obligation 4,171,876
Total liabilities 3,660,023 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 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 $.01 per share; 24,000,000 shares authorized; 11,694,863 and 8,752,387 shares issued and outstanding, respectively 116,949 87,524
Additional paid-in capital 156,066,446 152,051,144
Accumulated deficit (152,593,964) (151,165,193)
Total shareholders’ equity 3,589,431 987,475
Total liabilities and shareholders’ equity 7,249,454 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 and 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 and Series A convertible preferred stock, par value $100 per share; 140 shares authorized; -0- and 140 shares issued and outstanding, respectively

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v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
3 Months Ended 6 Months Ended
Apr. 30, 2017
Apr. 30, 2016
Apr. 30, 2017
Apr. 30, 2016
Revenue
Operating costs and expenses:        
Litigation and licensing expenses 225 15,521 2,346 75,162
Amortization of patents 81,324 81,324 162,648 162,648
Research and development expenses (including non-cash stock option compensation expenses of $68,928, $72,496, $148,628 and $91,442, respectively) 431,124 392,589 882,754 850,910
Marketing, general and administrative expenses (including non-cash stock option compensation expenses of $122,991, $144,758, $303,028 and $238,307, respectively) 699,345 658,953 1,559,230 1,532,106
Total operating costs and expenses 1,212,018 1,148,387 2,606,978 2,620,826
Loss from operations (1,212,018) (1,148,387) (2,606,978) (2,620,826)
Gain on extinguishment of patent acquisition obligation (Note 6) 1,547,608 1,547,608
Interest expense (175,727) (126,980) (371,026) (250,881)
Interest income 626 3,473 1,625 6,724
Income (loss) before income taxes 160,489 (1,271,894) (1,428,771) (2,864,983)
Provision for income taxes
Net income (loss) 160,489 (1,271,894) (1,428,771) (2,864,983)
Deemed dividend to preferred stockholder (Note 7) (2,008,775)
Net loss attributable to common stockholders $ 160,489 $ (1,271,894) $ (3,437,546) $ (2,864,983)
Net income (loss) per common share:        
Basic (in Dollars per share) $ 0.02 $ (0.15)
Diluted (in Dollars per share) 0.02 (0.15)
Basic and diluted (in Dollars per share) $ (0.37) $ (0.33)
Weighted average common shares outstanding:        
Basic (in Shares) 9,734,171 8,736,024
Diluted (in Shares) 9,736,571 8,736,024
Basic and diluted (in Shares) 9,236,351 8,731,489

Source

v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
6 Months Ended
Apr. 30, 2017
Apr. 30, 2016
Reconciliation of net loss to net cash used in operating activities:    
Net loss $ (1,428,771) $ (2,864,983)
Stock option compensation to employees and directors 451,655 329,749
Common stock issued to consultants 17,811 11,361
Depreciation of property and equipment 21,278 13,881
Amortization of patents 162,648 162,648
Accretion of interest on patent acquisition obligations to interest expense 228,026 250,881
Accrued interest on secured debenture 30,000
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:    
Prepaid expenses and other current assets 97,422 87,496
Accounts payable and accrued expenses 161,267 132,031
Royalties and contingent legal fees payable (18,883)
Net cash used in operating activities (1,806,272) (1,884,019)
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (2,250,000) (1,550,000)
Proceeds from maturities of short-term investments in certificates of deposit 750,000 1,800,000
Payments for purchases of property and equipment (14,121) (141,110)
Net cash (used in) provided by investing activities (1,514,121) 108,890
Cash flows from financing activities:    
Redemption of convertible preferred stock (500,000)
Proceeds from sale of common stock through a rights offering to shareholders 4,203,302
Proceeds from exercise of employee stock options 5,665 18,231
Net cash provided by financing activities 3,708,967 18,231
Net increase (decrease) in cash and cash equivalents 388,574 (1,756,898)
Cash and cash equivalents at beginning of period 2,488,323 4,369,219
Cash and cash equivalents at end of period 2,876,897 2,612,321
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) $ (4,399,902)

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