Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
 3 Months Ended
Jan. 31, 2016
Jan. 31, 2015
Reconciliation of net (loss) income to net cash (used in) provided by operating activities:    
Net (loss) income $ (1,593,089) $ 3,752,220
Stock option compensation to employees, directors and consultants 112,495 491,779
Common stock issued to consultants 6,360 4,000
Depreciation of property and equipment 3,849 1,021
Amortization of patents 81,324 81,324
Accretion of interest on patent acquisition obligations to interest expense 123,901 $ 109,186
Common stock issued to acquire patent license $ 11,800
Other $ 6,635
Change in operating assets and liabilities:    
Accounts receivable 355,000
Prepaid expenses and other current assets $ 70,754 (5,922)
Accounts payable and accrued expenses 655,453 152,219
Royalties and contingent legal fees payable (5,228) (294,368)
Net cash (used in) provided by operating activities (532,381) 4,653,094
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (250,000) (650,000)
Proceeds from maturities of short-term investments in certificates of deposit 500,000 500,000
Payments for purchases of property and equipment (106,012) (54,776)
Net cash provided by (used in) investing activities 143,988 (204,776)
Net (decrease) increase in cash and cash equivalents (388,393) 4,448,318
Cash and cash equivalents at beginning of period 4,369,219 3,361,246
Cash and cash equivalents at end of period $ 3,980,826 $ 7,809,564