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, 2014
Jan. 31, 2013
Reconciliation of net loss to net cash used by operating activities:    
Net loss $ (3,614,428) $ (2,094,987)
Stock option compensation to employees 465,519 473,275
Stock option compensation to consultants 255,119 241,928
Common stock issued to consultants 28,348 25,625
Common stock issued to pay interest on convertible debentures 28,800  
Amortization of patents 70,481 0
Amortized interest on patent acquisition obligations to interest expense 86,466  
Amortization of convertible debenture discount to interest expense 217,316 5,234
Change in value of derivative liabilities 1,320,000  
Other (2,096) 33,945
Change in operating assets and liabilities:    
Accounts receivable 175,000  
Prepaid expenses and other current assets 19,347 (11,172)
Accounts payable and accrued expenses (60,045) 436,142
Royalties and contingent legal fees payable (161,858)  
Net cash used by operating activities (1,172,031) (890,010)
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (2,700,000)  
Proceeds from sales of short-term investments in certificates of deposit 250,000 500,000
Other   (1,330)
Net cash (used in) provided by investing activities (2,450,000) 498,670
Cash flows from financing activities:    
Proceeds from issuance of convertible debentures 3,500,000 1,765,000
Net cash provided by financing activities 3,500,000 1,765,000
Net (decrease) increase in cash and cash equivalents (122,031) 1,373,660
Cash and cash equivalents at beginning of year 898,172 339,693
Cash and cash equivalents at end of period 776,141 1,713,353
Supplemental disclosure of financing activities:    
Stock Issued upon Conversion 1,570,000  
Debenture Conversion Feature [Member]
    
Supplemental disclosure of financing activities:    
Stock Issued upon Conversion 1,570,000 1,180,000
Convertible Debenture Warrant [Member]
    
Supplemental disclosure of financing activities:    
Stock Issued upon Conversion $ 513,122 $ 214,819