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 ($)
 9 Months Ended
Jul. 31, 2016
Jul. 31, 2015
Reconciliation of net loss to net cash (used in) provided by operating activities:    
Net loss income $ (3,968,758) $ (86,630)
Stock option compensation to employees, directors and consultants 570,190 2,338,299
Common stock issued to consultants 27,996 46,100
Amortization of patents 243,972 243,972
Accretion of interest on patent acquisition obligations to interest expense 383,238 333,779
Common stock issued to acquire patent license 11,800
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 24,915 19,363
Change in operating assets and liabilities:    
Accounts receivable 400,000
Prepaid expenses and other current assets 70,100 (133,035)
Accounts payable and accrued expenses 150,859 (813,300)
Royalties and contingent legal fees payable (213,017) (284,536)
Net cash (used in) provided by operating activities (2,698,705) 2,165,292
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit (1,900,000) (2,550,000)
Proceeds from maturities and sales of short-term investments in certificates of deposit 2,400,000 2,650,000
Purchase of property and equipment (144,650) (54,776)
Net cash provided by investing activities 355,350 45,224
Cash flows from financing activities:    
Proceeds from exercise of employee stock options 23,381 34,335
Payments to acquire 32,000 share common stock and cancellation of warrants to purchase 16,000 shares common stock (445,252)
Net cash provided by (used in) financing activities 23,381 (410,917)
Net (decrease) increase in cash and cash equivalents (2,319,974) 1,799,599
Cash and cash equivalents at beginning of period 4,369,219 3,361,246
Cash and cash equivalents at end of period $ 2,049,245 $ 5,160,845