Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
 3 Months Ended
Jan. 31, 2017
Jan. 31, 2016
Reconciliation of net loss to net cash used in operating activities:    
Net loss $ (1,589,260) $ (1,593,089)
Stock option compensation to employees and directors 259,737 112,495
Common stock issued to consultants 17,811 6,360
Depreciation of property and equipment 10,505 3,849
Amortization of patents 81,324 81,324
Accretion of interest on patent acquisition obligations to interest expense 141,299 123,901
Accrued interest on secured debenture 54,000  
Common stock issued to acquire patent license   11,800
Change in operating assets and liabilities:    
Prepaid expenses and other current assets 93,480 70,754
Accounts payable and accrued expenses 201,191 655,453
Royalties and contingent legal fees payable   (5,228)
Net cash used in operating activities (729,913) (532,381)
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit   (250,000)
Proceeds from maturities of short-term investments in certificates of deposit 150,000 500,000
Payments for purchases of property and equipment (14,121) (106,012)
Net cash provided by investing activities 135,879 143,988
Cash flows from financing activities:    
Redemption of convertible preferred stock (500,000)  
Exercise of stock options 5,665  
Net cash used in financing activities (494,335)  
Net decrease in cash and cash equivalents (1,088,369) (388,393)
Cash and cash equivalents at beginning of period 2,488,323 4,369,219
Cash and cash equivalents at end of period 1,399,954 $ 3,980,826
Supplemental disclosure of non-cash financing activities:    
Redemption of Series A Preferred Stock into secured debenture (Note 6) $ (3,000,000)