Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
 9 Months Ended
Jul. 31, 2014
Jul. 31, 2013
Reconciliation of net loss to net cash used in operating activities:    
Net loss $ (6,452,870) $ (7,153,332)
Stock option compensation to employees 1,562,350 2,118,424
Stock option compensation to consultants 784,237 574,374
Common stock issued to consultants 40,748 168,475
Common stock issued to pay interest on convertible debentures 61,778 69,939
Amortization of patents 233,129 0
Amortized interest on patent acquisition obligations to interest expense 286,002   
Amortization of convertible debenture discount to interest expense 575,210 893,149
Loss on extinguishment of debt 482,915 343,517
Change in value of derivative liability 1,460,704 (315,189)
Common stock issued to acquire patent license 62,000 42,000
Other (553) 35,490
Change in operating assets and liabilities:    
Accounts receivable 41,667   
Prepaid expenses and other current assets 60,066 8,574
Accounts payable and accrued expenses 28,101 572,180
Royalties and contingent legal fees payable (55,343)   
Deferred revenue (1,187,320)   
Net cash used in operating activities (2,017,179) (2,642,399)
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (3,700,000)   
Proceeds from sales of short-term investments in certificates of deposit 1,150,000 500,000
Other (3,798) (676)
Net cash (used in) provided by investing activities (2,553,798) 499,324
Cash flows from financing activities:    
Proceeds from issuance of convertible debentures 3,500,000 1,765,000
Proceeds from sale of common stock 3,673,135 589,865
Payments to redeem convertible debentures (200,000)   
Proceeds from exercise of warrants to purchase common stock 300,009 380,800
Proceeds from exercise of employee stock options 51,225 25,610
Net cash provided by financing activities 7,324,369 2,785,413
Net increase in cash and cash equivalents 2,753,392 642,338
Cash and cash equivalents at beginning of year 898,172 339,693
Cash and cash equivalents at end of period 3,651,564 982,031
Supplemental disclosure of non-cash investing and financing activities:    
Non-cash patent acquisition 3,036,111  
Common stock to acquire patent license 247,600 42,000
Common stock issued upon conversion of convertible debentures 2,735,349 1,353,364
Fair value of debenture embedded conversion feature at date of issuance 1,570,000 1,180,000
Relative fair value of warrants issued with convertible debentures 513,112 214,819
ZQX Advisors LLC [Member]
    
Cash flows from financing activities:    
Proceeds from sale of common stock    $ 24,138