v3.10.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Jul. 31, 2018
Oct. 31, 2017
Current assets:    
Cash and cash equivalents $ 2,591,099 $ 3,339,374
Short-term investments in certificates of deposit 2,750,000 3,500,000
Prepaid expenses and other current assets 378,487 174,566
Total current assets 5,719,586 7,013,940
Patents, net of accumulated amortization of $1,534,308 and $1,290,336, respectively 1,501,803 1,745,775
Property and equipment, net of accumulated depreciation of $47,779 and $35,725, respectively 72,140 52,701
Total assets 7,293,529 8,812,416
Current liabilities:    
Accounts payable 419,410 480,324
Accrued expenses 710,057 409,169
Total current liabilities 1,129,467 889,493
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; 18,696,146 and 16,602,759 shares issued and outstanding, respectively 186,961 166,028
Additional paid-in capital 171,007,167 163,931,079
Accumulated deficit (164,867,716) (156,174,184)
Total shareholders’ equity 6,326,412 7,922,923
Noncontrolling interest (Note 1) (162,350)
Total equity 6,164,062 7,922,923
Total liabilities and equity 7,293,529 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

v3.10.0.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
3 Months Ended 9 Months Ended
Jul. 31, 2018
Jul. 31, 2017
Jul. 31, 2018
Jul. 31, 2017
Revenue $ 362,500 $ 362,500 $ 1,112,500 $ 362,500
Operating costs and expenses:        
Inventor royalties, contingent legal fees, litigation and licensing expenses related to patent assertion 241,157 141,127 767,180 143,473
Amortization of patents 81,324 81,325 243,972 243,973
Research and development expenses (including non-cash share-based compensation expenses of $2,472,489, $64,705, $2,668,315 and $213,333, respectively) 2,942,071 362,968 4,380,137 1,245,722
General and administrative expenses (including non-cash share-based compensation expenses of $2,098,793, $416,411, $2,516,652 and $719,440, respectively) 2,703,752 1,508,005 4,602,555 3,067,235
Total operating costs and expenses 5,968,304 2,093,425 9,993,844 4,700,403
Loss from operations (5,605,804) (1,730,925) (8,881,344) (4,337,903)
Gain on extinguishment of patent acquisition obligation (Note 6) 1,547,608
Interest expense (71,667) (442,693)
Interest income 12,228 8,192 29,780 9,817
Loss before income taxes (5,593,576) (1,794,400) (8,851,564) (3,223,171)
Provision for income taxes
Net loss (5,593,576) (1,794,400) (8,851,564) (3,223,171)
Less: Net loss attributable to noncontrolling interest (116,650) (158,032)
Net loss attributable to common shareholders before deemed dividend (5,476,926) (1,794,400) (8,693,532) (3,223,171)
Deemed dividend to preferred shareholder (Note 7) (2,008,775)
Net loss attributable to common shareholders $ (5,476,926) $ (1,794,400) $ (8,693,532) $ (5,231,946)
Net loss per common share attributable to common shareholders:        
Basic and diluted (in Dollars per share) $ (0.30) $ (0.12) $ (0.50) $ (0.47)
Weighted average common shares outstanding:        
Basic and diluted (in Shares) 18,431,025 14,561,754 17,257,546 11,030,992

Source

v3.10.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
9 Months Ended
Jul. 31, 2018
Jul. 31, 2017
Reconciliation of net loss to net cash used in operating activities:    
Net loss $ (8,851,564) $ (3,223,171)
Stock option compensation to employees and directors 3,598,986 932,773
Stock option compensation to consultants 197,040
Common stock award issued to employee pursuant to stock incentive plan 1,373,940
Warrants issued to consultant 57,050
Common stock issued to consultants 15,002 17,811
Depreciation of property and equipment 12,414 32,096
Amortization of patents 243,972 243,973
Accretion of interest on patent acquisition obligations to interest expense 228,026
Accrued interest on secured debenture 20,667
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 (203,921) (199,254)
Accounts payable (60,914) 92,191
Accrued expenses 300,888 345,074
Net cash used in operating activities (3,252,451) (3,057,422)
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (4,000,000) (4,251,000)
Proceeds from maturities of short-term investments in certificates of deposit 4,750,000 750,000
Purchase of property and equipment (31,853) (16,885)
Net cash provided by (used in) investing activities 718,147 (3,517,885)
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 sale of common stock in at-the-market offering 1,786,029
Proceeds from exercise of employee stock options 5,665
Net cash provided by financing activities 1,786,029 5,920,752
Net decrease in cash and cash equivalents (748,275) (654,555)
Cash and cash equivalents at beginning of period 3,339,374 2,488,323
Cash and cash equivalents at end of period 2,591,099 1,833,768
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) (2,852,294)
Issuance of non-controlling interest in Certainty Therapeutics, Inc $ 64,656

Source