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, 2018
Oct. 31, 2017
Reconciliation of net loss to net cash used in operating activities:    
Net loss $ (14,243,084) $ (5,008,991)
Stock option compensation to employees and directors 5,717,651 1,219,468
Stock options and warrants issued to consultants 318,139 3,304
Stock award compensation to employee and directors pursuant to stock incentive plan 2,859,824 454,000
Common stock issued to consultants 15,002 32,424
Amortization of patents 325,296 325,296
Accretion of interest on patent acquisition obligations to interest expense 228,026
Depreciation of property and equipment 18,435 43,216
Loss on disposal of property and equipment 45,915
Impairment in carrying amount of patent assets 582,979
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 (307,916) (12,497)
Accounts payable 101,688 107,100
Accrued expenses 273,930 313,637
Net cash used in operating activities (4,273,400) (3,796,710)
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (4,250,000) (5,501,000)
Proceeds from maturities of short-term investments in certificates of deposit 5,750,000 2,751,000
Proceeds from sale of property and equipment 45,000
Purchase of property and equipment (38,404) (30,188)
Net cash provided by (used in) investing activities 1,461,596 (2,735,188)
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 2,470,182 3,460,586
Redemption of convertible preferred stock (500,000)
Payments made on secured debenture (3,000,000)
Proceeds from exercise of stock options 58,138 7,273
Net cash provided by financing activities 2,528,320 7,382,949
Net (decrease) increase in cash and cash equivalents (283,484) 851,051
Cash and cash equivalents at beginning of year 3,339,374 2,488,323
Cash and cash equivalents at end of year 3,055,890 3,339,374
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