Annual report pursuant to section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 12 Months Ended
Oct. 31, 2013
Oct. 31, 2012
Cash flows from operating activities:    
Payments to suppliers, employees and consultants $ (3,401,499) $ (3,164,613)
Cash received from patent monetization and patent assertion 213,850 7,075
Dividends and interest received 851 16,790
Net cash used in operating activities (3,186,798) (3,140,748)
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (250,000) (1,200,000)
Proceeds from maturities of short-term investments in U.S. government securities and certificates of deposit 750,000 2,948,551
Other (676) (600)
Net cash provided by investing activities 499,324 1,747,951
Cash flows from financing activities:    
Proceeds from issuance of convertible debentures 1,765,000 750,000
Proceeds from sale of common stock, net of expense 1,050,405   
Proceeds from exercise of warrants to purchase common stock 380,800   
Proceeds from exercise of stock options 25,610 208,450
Proceeds received on sale of common stock held by ZQX Advisors, LLC 24,138   
Net cash provided by financing activities 3,245,953 958,450
Net increase (decrease) in cash and cash equivalents 558,479 (434,347)
Cash and cash equivalents at beginning of year 339,693 774,040
Cash and cash equivalents at end of year 898,172 339,693
Reconciliation of net loss to net cash used in operating activities:    
Net loss (10,080,086) (4,252,799)
Common stock issued 304,685 75,932
Common stock issued to acquire patent license 42,000   
Common stock issued to pay interest on convertible debentures 98,739   
Change in value of derivative liability (475,189)   
Loss on extinguishment of debt 343,517   
Amortization of convertible debenture discount to interest expense 991,180   
Impairment in value of investment in Videocon Industries Limited GDR’s 1,184,710   
Impairment in value of investment in Volga-Svet Ltd.    127,500
Other 9,753 7,956
Change in operating assets and liabilities:    
Accounts receivable (175,000)   
Prepaid expenses and other current assets (78,320) 13,382
Accounts payable and accrued expenses 641,331 174,670
Royalties and contingent legal fees payable 207,743   
Deferred revenue    (940,010)
Net cash used in operating activities (3,186,798) (3,140,748)
Employees [Member]
    
Reconciliation of net loss to net cash used in operating activities:    
Stock option compensation 2,693,121 614,914
Common stock issued    927,356
Nonemployees [Member]
    
Reconciliation of net loss to net cash used in operating activities:    
Stock option compensation 1,105,018 110,351
Common stock issued 304,685 75,932
Stock Issued Upon Conversion Of Debenture [Member]
    
Change in operating assets and liabilities:    
Stock Issued upon Conversion 1,075,000   
Debenture Conversion Feature [Member]
    
Change in operating assets and liabilities:    
Stock Issued upon Conversion 1,180,000   
Convertible Debenture Warrant [Member]
    
Change in operating assets and liabilities:    
Stock Issued upon Conversion $ 215,819