Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED BALANCE SHEETS

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jul. 31, 2014	Oct. 31, 2013
Current assets:
Cash and cash equivalents	$ 3,651,564	$ 898,172
Short-term investments in certificates of deposit	2,550,000
Accounts receivable	133,333	175,000
Prepaid expenses and other current assets	100,580	160,646
Total current assets	6,435,477	1,233,818
Investment in Videocon Industries Limited global depository receipts, at fair value	4,150,970	4,197,341
Patents, net of accumulated amortization of $233,129	2,802,982
Property and equipment, net of accumulated depreciation of $47,925 and $45,654, respectively	9,906	8,379
Total assets	13,399,335	5,439,538
Current liabilities:
Accounts payable and accrued expenses	1,304,571	1,276,470
Royalties and contingent legal fees payable	152,400	207,743
Derivative liability, at fair value	1,900,000	540,000
Loan payable to related party	5,000,000
Deferred revenue, non-refundable license fees		1,187,320
Total current liabilities	8,356,971	3,211,533
Contingencies (Note 12)
Convertible debentures due, net of discount	1,756,142	548,598
Patent acquisition obligation	3,136,513
Loan payable to related party		5,000,000
Total liabilities	13,249,626	8,760,131
Shareholders’ equity:
Preferred stock
Common stock, par value $.01 per share; 600,000,000 shares authorized; 236,822,190, 219,342,190 and 209,276,745 shares issued and outstanding at July 31, 2014, July 31, 2014 pro forma and October 31, 2013, respectively	2,368,222	2,092,767
Additional paid-in capital	144,444,136	134,750,048
Loan receivable from related party	(5,000,000)	(5,000,000)
Accumulated deficit	(141,616,278)	(135,163,408)
Accumulated other comprehensive (loss)	(46,371)
Total shareholders’ equity	149,709	(3,320,593)
Total liabilities and shareholders’ equity	13,399,335	5,439,538
Series A Preferred Stock [Member] \| Pro Forma [Member]
Shareholders’ equity:
Preferred stock	350,000
Series A Preferred Stock [Member]
Shareholders’ equity:
Preferred stock
Pro Forma [Member] \| Convertible Debentures Due November 2016 [Member]
Contingencies (Note 12)
Convertible debentures due, net of discount
Pro Forma [Member] \| Convertible Debenture Due January 2015 [Member]
Contingencies (Note 12)
Convertible debentures due, net of discount
Pro Forma [Member]
Current assets:
Cash and cash equivalents	3,651,564
Short-term investments in certificates of deposit	2,550,000
Accounts receivable	133,333
Prepaid expenses and other current assets	100,580
Total current assets	6,435,477
Investment in Videocon Industries Limited global depository receipts, at fair value
Patents, net of accumulated amortization of $233,129	2,802,982
Property and equipment, net of accumulated depreciation of $47,925 and $45,654, respectively	9,906
Total assets	9,248,365
Current liabilities:
Accounts payable and accrued expenses	1,153,488
Royalties and contingent legal fees payable	152,400
Derivative liability, at fair value
Loan payable to related party
Deferred revenue, non-refundable license fees
Total current liabilities	1,305,888
Contingencies (Note 12)
Convertible debentures due, net of discount
Patent acquisition obligation	3,136,513
Loan payable to related party
Total liabilities	4,442,401
Shareholders’ equity:
Preferred stock
Common stock, par value $.01 per share; 600,000,000 shares authorized; 236,822,190, 219,342,190 and 209,276,745 shares issued and outstanding at July 31, 2014, July 31, 2014 pro forma and October 31, 2013, respectively	2,193,422
Additional paid-in capital	144,989,691
Loan receivable from related party
Accumulated deficit	(142,727,149)
Accumulated other comprehensive (loss)
Total shareholders’ equity	4,805,964
Total liabilities and shareholders’ equity	9,248,365
Convertible Debentures Due November 2016 [Member]
Contingencies (Note 12)
Convertible debentures due, net of discount	1,756,142
Convertible Debenture Due January 2015 [Member]
Contingencies (Note 12)
Convertible debentures due, net of discount		$ 548,598