Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v2.4.1.9
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 6 Months Ended
Apr. 30, 2015
Apr. 30, 2014
Reconciliation of net income (loss) to net cash provided by (used in) operating activities:    
Net income (loss) $ 1,515,549us-gaap_NetIncomeLoss $ (6,863,871)us-gaap_NetIncomeLoss
Stock option compensation to employees and consultants 1,557,708us-gaap_StockOptionPlanExpense 1,877,106us-gaap_StockOptionPlanExpense
Common stock issued to consultants 6,100us-gaap_IssuanceOfStockAndWarrantsForServicesOrClaims 35,148us-gaap_IssuanceOfStockAndWarrantsForServicesOrClaims
Common stock issued to pay interest on convertible debentures    61,778us-gaap_PaidInKindInterest
Amortization of patents 162,648us-gaap_AmortizationOfIntangibleAssets 151,840us-gaap_AmortizationOfIntangibleAssets
Accretion of interest on patent acquisition obligations to interest expense 217,798itus_AccretionOfInterestOnPatentAcquisitionObligationsToInterestExpense 186,234itus_AccretionOfInterestOnPatentAcquisitionObligationsToInterestExpense
Amortization of convertible debenture discount to interest expense    446,565us-gaap_AmortizationOfDebtDiscountPremium
Loss on extinguishment of debt    482,915us-gaap_GainsLossesOnExtinguishmentOfDebt
Change in value of derivative liabilities    2,310,704us-gaap_DerivativeGainLossOnDerivativeNet
Loss on acquisition of 800,000 shares of common stock and cancellation of warrants to purchase 400,000 shares of common stock 101,280itus_GainLossOnSaleOnAcquisitionOfCommonStockAndCancellationOfWarrants   
Other 15,532us-gaap_OtherNoncashIncomeExpense (1,403)us-gaap_OtherNoncashIncomeExpense
Change in operating assets and liabilities:    
Accounts receivable 400,000us-gaap_IncreaseDecreaseInAccountsReceivable (653,367)us-gaap_IncreaseDecreaseInAccountsReceivable
Prepaid expenses and other current assets 18,051us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets 26,463us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
Accounts payable and accrued expenses (803,989)us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities (14,749)us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
Royalties and contingent legal fees payable (316,837)itus_IncreaseDecreaseInRoyaltiesAndContingentLegalFeesPayable 274,803itus_IncreaseDecreaseInRoyaltiesAndContingentLegalFeesPayable
Net cash provided by (used in) operating activities 2,873,840us-gaap_NetCashProvidedByUsedInOperatingActivities (1,679,834)us-gaap_NetCashProvidedByUsedInOperatingActivities
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (2,400,000)us-gaap_PaymentsToAcquireShortTermInvestments (2,700,000)us-gaap_PaymentsToAcquireShortTermInvestments
Proceeds from sales of short-term investments in certificates of deposit 2,500,000us-gaap_ProceedsFromSaleOfShortTermInvestments 650,000us-gaap_ProceedsFromSaleOfShortTermInvestments
Payments for purchases of property and equipment (54,776)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment   
Other    (1,329)us-gaap_PaymentsForProceedsFromOtherInvestingActivities
Net cash provided by (used in) investing activities 45,224us-gaap_NetCashProvidedByUsedInInvestingActivities (2,051,329)us-gaap_NetCashProvidedByUsedInInvestingActivities
Cash flows from financing activities:    
Proceeds from issuance of convertible debentures    3,500,000us-gaap_ProceedsFromConvertibleDebt
Proceeds from exercise of warrants to purchase common stock    149,985us-gaap_ProceedsFromWarrantExercises
Proceeds from exercise of employee stock options    725us-gaap_ProceedsFromStockOptionsExercised
Payments to redeem convertible debentures    (200,000)us-gaap_RepaymentsOfConvertibleDebt
Payments to acquire 800,000 share common stock and cancellation of warrants to purchase 400,000 shares common stock (200,000)itus_PaymentsForRepurchaseOfCommonStockAndCancellationOfWarrant   
Net cash (used in) provided by financing activities (200,000)us-gaap_NetCashProvidedByUsedInFinancingActivities 3,450,710us-gaap_NetCashProvidedByUsedInFinancingActivities
Net increase (decrease) in cash and cash equivalents 2,719,064us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease (280,453)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 6,080,310us-gaap_CashAndCashEquivalentsAtCarryingValue 617,719us-gaap_CashAndCashEquivalentsAtCarryingValue
Supplemental disclosure of financing activities:    
Common stock issued upon conversion of debentures    2,735,349us-gaap_StockIssuedDuringPeriodValueConversionOfConvertibleSecurities
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