Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

v2.4.1.9
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 3 Months Ended
Jan. 31, 2015
Jan. 31, 2014
Reconciliation of net income (loss) to net cash provided by (used in) operating activities:    
Net income (loss) $ 3,752,220us-gaap_NetIncomeLoss $ (3,614,428)us-gaap_NetIncomeLoss
Stock option compensation to employees and consultants 491,779us-gaap_StockOptionPlanExpense 720,638us-gaap_StockOptionPlanExpense
Common stock issued to consultants 4,000us-gaap_IssuanceOfStockAndWarrantsForServicesOrClaims 28,348us-gaap_IssuanceOfStockAndWarrantsForServicesOrClaims
Common stock issued to pay interest on convertible debentures   28,800us-gaap_PaidInKindInterest
Amortization of patents 81,324us-gaap_AmortizationOfIntangibleAssets 70,481us-gaap_AmortizationOfIntangibleAssets
Amortized interest on patent acquisition obligations to interest expense 109,186itus_AmortizedInterestOnPatentAcquisitionObligationsToInterestExpense 86,466itus_AmortizedInterestOnPatentAcquisitionObligationsToInterestExpense
Amortization of convertible debenture discount to interest expense   217,316us-gaap_AmortizationOfDebtDiscountPremium
Change in value of derivative liabilities   1,320,000us-gaap_DerivativeGainLossOnDerivativeNet
Other 7,656us-gaap_OtherNoncashIncomeExpense (2,096)us-gaap_OtherNoncashIncomeExpense
Change in operating assets and liabilities:    
Accounts receivable 355,000us-gaap_IncreaseDecreaseInAccountsReceivable 175,000us-gaap_IncreaseDecreaseInAccountsReceivable
Prepaid expenses and other current assets (5,922)us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets 19,347us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
Accounts payable and accrued expenses 152,219us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities (60,045)us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
Royalties and contingent legal fees payable (294,368)itus_IncreaseDecreaseInRoyaltiesAndContingentLegalFeesPayable (161,858)itus_IncreaseDecreaseInRoyaltiesAndContingentLegalFeesPayable
Net cash provided by (used in) operating activities 4,653,094us-gaap_NetCashProvidedByUsedInOperatingActivities (1,172,031)us-gaap_NetCashProvidedByUsedInOperatingActivities
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (650,000)us-gaap_PaymentsToAcquireShortTermInvestments (2,700,000)us-gaap_PaymentsToAcquireShortTermInvestments
Proceeds from sales of short-term investments in certificates of deposit 500,000us-gaap_ProceedsFromSaleOfShortTermInvestments 250,000us-gaap_ProceedsFromSaleOfShortTermInvestments
Payments for purchases of property and equipment (54,776)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment  
Net cash (used in) investing activities (204,776)us-gaap_NetCashProvidedByUsedInInvestingActivities (2,450,000)us-gaap_NetCashProvidedByUsedInInvestingActivities
Cash flows from financing activities:    
Proceeds from issuance of convertible debentures   3,500,000us-gaap_ProceedsFromConvertibleDebt
Net cash provided by financing activities   3,500,000us-gaap_NetCashProvidedByUsedInFinancingActivities
Net increase (decrease) in cash and cash equivalents 4,448,318us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease (122,031)us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease
Cash and cash equivalents at beginning of period 3,361,246us-gaap_CashAndCashEquivalentsAtCarryingValue 898,172us-gaap_CashAndCashEquivalentsAtCarryingValue
Cash and cash equivalents at end of period 7,809,564us-gaap_CashAndCashEquivalentsAtCarryingValue 776,141us-gaap_CashAndCashEquivalentsAtCarryingValue
Supplemental disclosure of financing activities:    
Fair value of debenture embedded conversion feature at date of issuance   1,570,000us-gaap_DebtInstrumentConvertibleBeneficialConversionFeature
Relative fair value of warrants issued with convertible debentures   $ 513,122us-gaap_FairValueAdjustmentOfWarrants