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 $)
 6 Months Ended
Apr. 30, 2013
Apr. 30, 2012
Cash flows from operating activities:    
Payments to suppliers, employees and consultants $ (1,805,659) $ (1,553,792)
Cash received from sales of products and services 2,130 3,925
Interest received 792  
Net cash used in operating activities (1,802,737) (1,549,867)
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit   (1,000,000)
Proceeds from maturities of short-term investments in U.S. government securities and certificates of deposit 500,000 1,699,706
Proceeds from sale of Digital Info Security Co. Inc. common stock 1,135  
Payments for purchases of property and equipment (714) (1,600)
Net cash provided by investing activities 500,421 698,106
Cash flows from financing activities:    
Proceeds from issuance of convertible debentures 1,765,000  
Proceeds from sale of common stock, net of expense 458,325  
Proceeds from exercise of stock options 13,050 208,450
Net cash provided by financing activities 2,236,375 208,450
Net increase (decrease) in cash and cash equivalents 934,059 (643,311)
Cash and cash equivalents at beginning of year 339,693 774,040
Cash and cash equivalents at end of period 1,273,752 130,729
Reconciliation of net loss to net cash used in operating activities:    
Net loss (4,571,440) (1,763,194)
Common stock issued to employees pursuant to stock incentive plans   524,609
Common stock issued to consultants 51,875 39,607
Common stock issued to acquire patent license 42,000  
Warrants issued for fees in connection with issuance of convertible debentures 7,166  
Provision for excess inventory 26,490  
Amortization of convertible debenture discount 801,125  
Common stock issued to pay interest on convertible debentures 34,761  
Other 2,153 3,433
Change in operating assets and liabilities:    
Prepaid expenses and other current assets 3,715 (10,341)
Accounts payable and accrued liabilities 508,858 238,254
Derivative liability (210,000)  
Deferred revenue   (693,340)
Other liabilities 45,600  
Net cash used in operating activities (1,802,737) (1,549,867)
Employees [Member]
    
Reconciliation of net loss to net cash used in operating activities:    
Stock option compensation 1,027,832 111,105
Nonemployees [Member]
    
Reconciliation of net loss to net cash used in operating activities:    
Stock option compensation 427,128  
Stock Issued Upon Conversion Of Debenture [Member]
    
Supplemental disclosure of non-cash financing actives:    
Stock Issued upon Conversion 750,000  
Debenture Conversion Feature[Member]
    
Supplemental disclosure of non-cash financing actives:    
Stock Issued upon Conversion 1,180,000  
Convertible Debenture Warrant [Member]
    
Supplemental disclosure of non-cash financing actives:    
Stock Issued upon Conversion $ 214,819