Quarterly report pursuant to sections 13 or 15(d)

Condensed Consolidated Statements Of Cash Flows (Unaudited)

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Condensed Consolidated Statements Of Cash Flows (Unaudited) (USD $)
 3 Months Ended
Jan. 31, 2013
Jan. 31, 2012
Cash flows from operating activities:    
Payments to suppliers, employees and consultants $ (892,902) $ (659,782)
Cash received from sales of products and services 2,130 2,525
Interest received 762  
Net cash used in operating activities (890,010) (657,257)
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit   (250,000)
Proceeds from maturities of short-term investments in U.S. government securities and certificates of deposit 500,000 449,854
Proceeds from sale of Digital Info Security Co. Inc. common stock 1,135  
Payments for purchases of property and equipment (2,465) (850)
Net cash provided by investing activities 498,670 199,004
Proceeds from issuance of convertible debentures 1,765,000  
Proceeds from exercise of stock options   147,250
Net cash provided by financing activities 1,765,000 147,250
Net increase (decrease) in cash and cash equivalents 1,373,660 (311,003)
Cash and cash equivalents at beginning of year 339,693 774,040
Cash and cash equivalents at end of period 1,713,353 463,037
Reconciliation of net loss to net cash used in operating activities:    
Net loss (2,094,987) (886,085)
Warrants issued for fees in connection with issuance of convertible debentures 7,166  
Provision for excess inventory 26,490  
Amortization of convertible debenture discount 5,234  
Depreciation and amortization 1,424 2,077
Gain on sale of Digital Info Security Co., Inc. common stock (1,135)  
Other   (274)
Change in operating assets and liabilities:    
Prepaid expenses and other current assets (11,172)  
Accounts payable and accrued liabilities 436,142 150,228
Deferred revenue   (446,670)
Net cash used in operating activities (890,010) (657,257)
Employees [Member]
    
Reconciliation of net loss to net cash used in operating activities:    
Stock option compensation 473,275 80,757
Stock awards granted pursuant to stock incentive plans   405,991
Nonemployees [Member]
    
Reconciliation of net loss to net cash used in operating activities:    
Stock option compensation 241,928  
Stock awards granted pursuant to stock incentive plans $ 25,625 $ 36,719