v3.8.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Apr. 30, 2018
Oct. 31, 2017
Current assets:    
Cash and cash equivalents $ 4,172,450 $ 3,339,374
Short-term investments in certificates of deposit 1,250,000 3,500,000
Prepaid expenses and other current assets 298,181 174,566
Total current assets 5,720,631 7,013,940
Patents, net of accumulated amortization of $1,452,985 and $1,290,336, respectively 1,583,127 1,745,775
Property and equipment, net of accumulated depreciation of $42,734 and $35,725, respectively 57,145 52,701
Total assets 7,360,903 8,812,416
Current liabilities:    
Accounts payable 452,106 480,324
Accrued expenses 888,151 409,169
Total current liabilities 1,340,257 889,493
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; no shares issued or outstanding
Common stock, par value $.01 per share; 48,000,000 and 24,000,000 shares authorized, respectively; 16,850,445 and 16,602,759 shares issued and outstanding, respectively 168,504 166,028
Additional paid-in capital 165,288,632 163,931,079
Accumulated deficit (159,390,790) (156,174,184)
Total shareholders’ equity 6,066,346 7,922,923
Noncontrolling interest (Note 1) (45,700)
Total equity 6,020,646 7,922,923
Total liabilities and equity 7,360,903 8,812,416
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; no shares issued or outstanding
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; no shares issued or outstanding

Source

v3.8.0.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
3 Months Ended 6 Months Ended
Apr. 30, 2018
Apr. 30, 2017
Apr. 30, 2018
Apr. 30, 2017
Revenue $ 750,000 $ 750,000
Operating costs and expenses:        
Inventor royalties, contingent legal fees, litigation and licensing expenses related to patent assertion 500,670 225 526,023 2,346
Amortization of patents 81,324 81,324 162,648 162,648
Research and development expenses (including non-cash stock option compensation expense of $155,769 and $68,928, respectively) 660,193 431,124 1,438,066 882,754
General and administrative expenses (including non-cash stock option compensation expense of $175,941 and $122,991, respectively) 908,767 699,345 1,898,803 1,559,230
Total operating costs and expenses 2,150,954 1,212,018 4,025,540 2,606,978
Loss from operations (1,400,954) (1,212,018) (3,275,540) (2,606,978)
Gain on extinguishment of patent acquisition obligation (Note 6) 1,547,608 1,547,608
Interest expense (175,727) (371,026)
Interest income 8,440 626 17,552 1,625
(Loss) income before income taxes (1,392,514) 160,489 (3,257,988) (1,428,771)
Provision for income taxes
Net (loss) income (1,392,514) 160,489 (3,257,988) (1,428,771)
Less: Net (loss) attributable to noncontrolling interest (13,980) (41,382)
Net loss attributable to common shareholders before deemed dividend (1,378,534) 160,489 (3,216,606) (1,428,771)
Deemed dividend to preferred shareholder (Note 7) (2,008,775)
Net (loss) income attributable to common shareholders $ (1,378,534) $ 160,489 $ (3,216,606) $ (3,437,546)
Net (loss) income per common share attributable to common shareholders:        
Basic (in Dollars per share) $ (0.08) $ 0.02
Diluted (in Dollars per share) (0.08) 0.02
Basic and diluted (in Dollars per share) $ (0.19) $ (0.37)
Weighted average common shares outstanding:        
Basic (in Shares) 16,713,091 9,734,171
Diluted (in Shares) 16,713,091 9,736,571
Basic and diluted (in Shares) 16,661,083 9,236,351

Source

v3.8.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
6 Months Ended
Apr. 30, 2018
Apr. 30, 2017
Reconciliation of net loss to net cash used in operating activities:    
Net loss $ (3,257,988) $ (1,428,771)
Stock option compensation to employees and directors 472,532 451,655
Stock option compensation to consultants 126,151
Common stock issued to consultants 15,002 17,811
Depreciation of property and equipment 7,369 21,278
Amortization of patents 162,648 162,648
Accretion of interest on patent acquisition obligations to interest expense 228,026
Gain on extinguishment of patent acquisition obligation (1,547,608)
Issuance of noncontrolling interest in Certainty Therapeutics, Inc. expensed as a license fee 64,656
Change in operating assets and liabilities:    
Prepaid expenses and other current assets (123,615) 97,422
Accounts payable (28,218) 75,129
Accrued expenses 478,982 116,138
Net cash used in operating activities (2,082,481) (1,806,272)
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (1,250,000) (2,250,000)
Proceeds from maturities of short-term investments in certificates of deposit 3,500,000 750,000
Purchase of property and equipment (11,813) (14,121)
Net cash provided by (used in) investing activities 2,238,187 (1,514,121)
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 sale of common stock in at-the-market offering 677,370
Proceeds from exercise of employee stock options 5,665
Net cash provided by financing activities 677,370 3,708,967
Net increase in cash and cash equivalents 833,076 388,574
Cash and cash equivalents at beginning of period 3,339,374 2,488,323
Cash and cash equivalents at end of period 4,172,450 2,876,897
Supplemental disclosure of non-cash financing and investing 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)
Issuance of non-controlling interest in Certainty Therapeutics, Inc $ 64,656

Source