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 ($)
 6 Months Ended
Apr. 30, 2016
Apr. 30, 2015
Reconciliation of net (loss) income to net cash (used in) provided by operating activities:    
Net (loss) income $ (2,864,983) $ 1,515,549
Stock option compensation to employees, directors and consultants 329,749 1,557,708
Common stock issued to consultants 11,361 6,100
Amortization of patents 162,648 162,648
Accretion of interest on patent acquisition obligations to interest expense 250,881 217,798
Common stock issued to acquire patent license $ 11,800  
Loss on acquisition of 800,000 shares of common stock and cancellation of warrants to purchase 400,000 shares of common stock 101,280
Other $ 13,881 15,532
Change in operating assets and liabilities:    
Accounts receivable 400,000
Prepaid expenses and other current assets $ 87,496 18,051
Accounts payable and accrued expenses 132,031 (803,989)
Royalties and contingent legal fees payable (18,883) (316,837)
Net cash (used in) provided by operating activities (1,884,019) 2,873,840
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (1,550,000) (2,400,000)
Proceeds from sales of short-term investments in certificates of deposit 1,800,000 2,500,000
Purchases of property and equipment (141,110) (54,776)
Net cash provided by investing activities 108,890 $ 45,224
Cash flows from financing activities:    
Proceeds from exercise of employee stock options $ 18,231
Payments to acquire 800,000 share common stock and cancellation of warrants to purchase 400,000 shares common stock $ (200,000)
Net cash provided by (used in) financing activities $ 18,231 (200,000)
Net (decrease) increase in cash and cash equivalents (1,756,898) 2,719,064
Cash and cash equivalents at beginning of period 4,369,219 3,361,246
Cash and cash equivalents at end of period $ 2,612,321 $ 6,080,310