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, 2012
Apr. 30, 2011
Cash flow from operating activities:    
Payments to suppliers, employees and consultants $ (1,553,792) $ (1,437,894)
Cash received from sales of product and services 3,925 102,173
Net cash used in operating activities (1,549,867) (1,335,721)
Cash flow from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (1,000,000) (1,548,927)
Proceeds from the sale or maturities of short-term investments in U.S. government securities and certificates of deposit 1,699,706 199,910
Proceeds from sale of Digital Info Security Co., Inc. common stock   118,777
Payments for purchases of property and equipment (1,600) (8,453)
Net cash provided by (used in) investing activities 698,106 (1,238,693)
Cash flow from financing activities:    
Private placement   1,250,000
Proceeds from exercise of stock options 208,450 577,400
Net cash provided by financing activities 208,450 1,827,400
Net decrease in cash and cash equivalents (643,311) (747,014)
Cash and cash equivalents at beginning of period 774,040 1,094,116
Cash and cash equivalents at end of period 130,729 347,102
Reconciliation of net loss to net cash used in operating activities:    
Net loss (1,763,194) (2,813,149)
Depreciation expense 3,911 3,985
Gain on sale of Digital Info Security Co., Inc. common stock   (30,169)
Other (478) (372)
Change in operating assets and liabilities:    
Prepaid expenses and other current assets (10,341) 52,367
Accounts payable and accrued liabilities 238,254 101,870
Deferred revenue (693,340)  
Net cash used in operating activities (1,549,867) (1,335,721)
Employees [Member]
    
Reconciliation of net loss to net cash used in operating activities:    
Stock option compensation 111,105 309,380
Stock awards granted pursuant to stock incentive plans 524,609 959,992
Nonemployees [Member]
    
Reconciliation of net loss to net cash used in operating activities:    
Stock option compensation   44,034
Stock awards granted pursuant to stock incentive plans $ 39,607 $ 36,341