Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.2.0.727
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 9 Months Ended
Jul. 31, 2015
Jul. 31, 2014
Reconciliation of net loss to net cash provided by (used in) operating activities:    
Net loss $ (86,630) $ (6,452,870)
Stock option compensation to employees and consultants 2,338,299 2,346,587
Common stock issued to consultants $ 46,100 40,748
Common stock issued to pay interest on convertible debentures   61,778
Amortization of patents $ 243,972 233,129
Accretion of interest on patent acquisition obligations to interest expense $ 333,779 286,002
Amortization of convertible debenture discount to interest expense   575,210
Loss on extinguishment of debt   482,915
Common stock issued to acquire patent license   62,000
Change in value of derivative liabilities   $ 1,460,704
Loss on acquisition of 32,000 shares of common stock and cancellation of warrants to purchase 16,000 shares of common stock $ 101,280  
Other 19,363 $ (553)
Change in operating assets and liabilities:    
Accounts receivable 400,000 41,667
Prepaid expenses and other current assets (133,035) 60,066
Accounts payable and accrued expenses (813,300) 28,101
Royalties and contingent legal fees payable $ (284,536) (55,343)
Deferred revenue   (1,187,320)
Net cash provided by (used in) operating activities $ 2,165,292 (2,017,179)
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (2,550,000) (3,700,000)
Proceeds from maturities and sales of short-term investments in certificates of deposit 2,650,000 $ 1,150,000
Payments for purchases of property and equipment $ (54,776)  
Other   $ (3,798)
Net cash provided by (used in) investing activities $ 45,224 (2,553,798)
Cash flows from financing activities:    
Proceeds from issuance of convertible debentures   3,500,000
Proceeds from sale of common stock, net   3,673,135
Proceeds from exercise of warrants to purchase common stock   300,009
Proceeds from exercise of employee stock options $ 34,335 51,225
Payments to redeem convertible debentures   $ (200,000)
Payments to acquire 92,232 shares of common stock and cancellation of warrants to purchase 16,000 shares of common stock $ (445,252)  
Net cash (used in) provided by financing activities (410,917) $ 7,324,369
Net increase in cash and cash equivalents 1,799,599 2,753,392
Cash and cash equivalents at beginning of period 3,361,246 898,172
Cash and cash equivalents at end of period $ 5,160,845 3,651,564
Supplemental disclosure of investing and financing activities:    
Non-cash patent acquisition   3,036,011
Common stock to acquire patent license   247,600
Common stock issued upon conversion of debentures   2,735,349
Fair value of debenture embedded conversion feature at date of issuance   1,570,000
Relative fair value of warrants issued with convertible debentures   $ 513,122