v3.8.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
Oct. 31, 2017
Oct. 31, 2016
Current assets:    
Cash and cash equivalents $ 3,339,374 $ 2,488,323
Short–term investments in certificates of deposit 3,500,000 750,000
Prepaid expenses and other current assets 174,566 162,069
Total current assets 7,013,940 3,400,392
Patents, net of accumulated amortization of $1,290,336 and $965,040, respectively 1,745,775 2,071,071
Property and equipment, net of accumulated depreciation of $35,725 and $46,950, respectively 52,701 156,644
Total assets 8,812,416 5,628,107
Current liabilities:    
Accounts payable 480,324 373,224
Accrued expenses 409,169 95,532
Total current liabilities 889,493 468,756
Patent acquisition obligation (Note 4) 4,171,876
Total liabilities 889,493 4,640,632
Commitments and contingencies (Notes 6 and 7)
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 at October 31, 2017 and 2016, respectively 14,000
Common stock, par value $.01 per share; 24,000,000 shares authorized; 16,602,759 and 8,752,387 shares issued and outstanding at October 31, 2017 and 2016, respectively 166,028 87,524
Additional paid-in capital 163,931,079 152,051,144
Accumulated deficit (156,174,184) (151,165,193)
Total shareholders’ equity 7,922,923 987,475
Total liabilities and shareholders’ equity 8,812,416 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 at October 31, 2017 and 2016, 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 at October 31, 2017 and 2016, respectively

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v3.8.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
12 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Revenue $ 362,500 $ 300,000
Operating costs and expenses:    
Inventor royalties and contingent legal fees 91,451 111,192
Litigation and licensing expenses 13,105 106,224
Amortization of patents 325,296 325,296
Research and development expenses (including non-cash stock option compensation expenses of $288,187 and $259,930, respectively) 1,597,550 1,556,459
Marketing, general and administrative expenses (including non-cash stock option compensation expense of $934,585 and $613,631, respectively) 4,410,682 2,709,841
Total operating costs and expenses 6,438,084 4,809,012
Loss from operations (6,075,584) (4,509,012)
Gain on extinguishment of patent acquisition obligation (Note 4) 1,547,608
Interest expense (Notes 4 and 5) (500,455) (519,946)
Interest income 19,440 12,530
Loss before income taxes (5,008,991) (5,016,428)
Provision for income taxes (Note 7)
Net loss (5,008,991) (5,016,428)
Deemed dividend to preferred stockholder (Note 5) (2,008,775)
Net loss attributable to common stockholders $ (7,017,766) $ (5,016,428)
Net loss per share:    
Basic and diluted (in Dollars per share) $ (0.58) $ (0.57)
Weighted average common shares outstanding:    
Basic and diluted (in Shares) 12,197,340 8,739,453

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v3.8.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Cash flows from operating activities:    
Net loss $ (5,008,991) $ (5,016,428)
Stock option compensation to employees and consultants 1,222,772 873,561
Common stock issued to consultants and directors 486,424 31,360
Amortization of patents 325,296 325,296
Accretion of interest on patent acquisition obligations to interest expense 228,026 519,946
Common stock issued to acquire patent license 11,800
Depreciation and amortization of property and equipment 43,216 33,333
Loss on disposal of property and equipment 45,915
Gain on extinguishment of patent acquisition obligation (1,547,608)
Change in operating assets and liabilities:    
Prepaid expenses and other current assets (12,497) (35,541)
Accounts payable 107,100 (1,479)
Accrued expenses 313,637 89,470
Royalties and contingent legal fees payable (213,017)
Net cash used in operating activities (3,796,710) (3,381,699)
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (5,501,000) (1,900,000)
Proceeds from maturities of short-term investments in certificates of deposit 2,751,000 3,550,000
Proceeds from sale of property and equipment 45,000
Purchase of property and equipment (30,188) (146,521)
Net cash (used in) provided by investing activities (2,735,188) 1,503,479
Cash flows from financing activities:    
Proceeds from sale of common stock in shareholder rights offering 4,203,302
Proceeds from sale of common stock in registered direct offering 3,211,788
Proceeds from sale of common stock in at-the-market offering 3,460,586
Redemption of convertible preferred stock (500,000)
Payments made on secured debenture (3,000,000)
Proceeds from exercise of employee stock options 7,273 33,581
Royalty payment applied to patent acquisition obligation (36,257)
Net cash provided by (used in) financing activities 7,382,949 (2,676)
Net increase (decrease) in cash and cash equivalents 851,051 (1,880,896)
Cash and cash equivalents at beginning of year 2,488,323 4,369,219
Cash and cash equivalents at end of year 3,339,374 2,488,323
Supplemental cash flow information:    
Cash payments for interest 272,429
Supplemental disclosure of non-cash financing activities:    
Redemption of Series A convertible preferred stock into secured debenture (Note 5) 3,000,000
Common stock issued to pay patent acquisition obligation (Note 4) $ 2,852,294

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