Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Apr. 30, 2015 | Jun. 10, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | Advaxis, Inc. | |
Entity Central Index Key | 1100397 | |
Document Type | 10-Q | |
Document Period End Date | 30-Apr-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 31,396,496 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2015 |
Balance_Sheets
Balance Sheets (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
Current Assets: | ||
Cash | $45,940,718 | $17,606,860 |
Prepaid Expenses | 404,960 | 182,978 |
Income Tax Receivable | 1,731,317 | |
Other Current Assets | 8,182 | 8,182 |
Deferred Expenses - current | 2,217,281 | 964,724 |
Total Current Assets | 48,571,141 | 20,494,061 |
Property and Equipment (net of accumulated depreciation) | 73,518 | 77,369 |
Intangible Assets (net of accumulated amortization) | 3,002,957 | 2,767,945 |
Other Assets | 38,438 | 38,438 |
TOTAL ASSETS | 51,686,054 | 23,377,813 |
Current Liabilities: | ||
Accounts Payable | 3,041,852 | 1,411,058 |
Accrued Expenses | 916,223 | 1,241,796 |
Short Term Convertible Notes and Fair Value of Embedded Derivative | 29,549 | 62,882 |
Total Current Liabilities | 3,987,624 | 2,715,736 |
Common Stock Warrant Liability | 327,567 | 32,091 |
Total Liabilities | 4,315,191 | 2,747,827 |
Commitments and Contingencies | ||
Shareholders' Equity: | ||
Preferred Stock, $0.001 par value; 5,000,000 shares authorized; Series B Preferred Stock; issued and outstanding 0 at April 30, 2015 and October 31, 2014. Liquidation preference of $0 at April 30, 2015 and October 31, 2014. | ||
Common Stock - $0.001 par value; authorized 45,000,000 shares, issued and outstanding 27,508,034 at April 30, 2015 and 19,630,139 at October 31, 2014. | 27,508 | 19,630 |
Additional Paid-In Capital | 155,223,621 | 107,601,493 |
Accumulated Deficit | -107,880,266 | -86,991,137 |
Total Shareholders' Equity | 47,370,863 | 20,629,986 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $51,686,054 | $23,377,813 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, liquidation preference value | $0 | $0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 27,508,034 | 19,630,139 |
Common stock, shares outstanding | 27,508,034 | 19,630,139 |
Statements_of_Operations_Unaud
Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $1,000,000 | $1,000,000 | ||
Operating Expenses | ||||
Research and Development Expenses | 6,135,059 | 1,544,922 | 9,714,995 | 3,104,789 |
General and Administrative Expenses | 7,704,868 | 2,051,055 | 10,900,967 | 6,448,891 |
Total Operating Expenses | 13,839,927 | 3,595,977 | 20,615,962 | 9,553,680 |
Loss from Operations | -13,839,927 | -2,595,977 | -20,615,962 | -8,553,680 |
Other Income (expense): | ||||
Interest Expense | -3,238 | -5,253 | ||
Gain on Note retirement | 6,243 | |||
Debt conversion expense | -6,599 | -6,599 | ||
Net changes in fair value of derivative liabilities | -23,236 | 273,849 | -287,307 | 405,797 |
Other Income | 14,503 | 10,749 | 20,739 | 19,321 |
Net Loss before benefit for income taxes | -13,855,259 | -2,314,617 | -20,889,129 | -8,127,572 |
Income Tax Benefit | 625,563 | |||
Net Loss | ($13,855,259) | ($2,314,617) | ($20,889,129) | ($7,502,009) |
Net Loss per share, basic and diluted | ($0.52) | ($0.15) | ($0.87) | ($0.51) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 26,655,486 | 15,749,434 | 24,085,290 | 14,779,983 |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net Loss | ($20,889,129) | ($7,502,009) |
Adjustments to reconcile Net Loss to net cash used in operating activities: | ||
Non-cash charges to consultants and employees for options and stock | 9,175,100 | 2,345,301 |
Non-cash interest expense | 51 | |
Loss (Gain) on change in value of warrants and embedded derivative | 287,307 | -405,797 |
Warrant expense | 8,169 | 4,437 |
Settlement expense | 34,125 | |
Employee Stock Purchase Plan | 6,909 | 5,371 |
Depreciation expense | 14,148 | 13,806 |
Amortization expense of intangibles | 98,692 | 84,616 |
Debt conversion expense | 6,599 | |
(Gain) on note retirement | -6,243 | |
Change in operating assets and liabilities: | ||
Prepaid expenses | -221,982 | -228,941 |
Income tax receivable | 1,731,317 | |
Other current assets | -50,000 | |
Deferred expenses | -1,252,556 | 131,556 |
Accounts payable and accrued expenses | 1,305,221 | -1,850,985 |
Interest payable | -98,192 | |
Net cash used in operating activities | -9,730,205 | -7,522,904 |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | -10,298 | -24,595 |
Cost of intangible assets | -333,704 | -185,660 |
Net cash used in Investing Activities | -344,002 | -210,255 |
FINANCING ACTIVITIES | ||
Repayment of Officer Loan | -64,926 | |
Proceeds from exercise of options | 58,400 | |
Proceeds from exercise of warrants | 239,593 | 250 |
Net proceeds of issuance of Common Stock | 38,110,072 | 14,820,105 |
Net cash provided by Financing Activities | 38,408,065 | 14,755,429 |
Net increase in cash | 28,333,858 | 7,022,270 |
Cash at beginning of period | 17,606,860 | 20,552,062 |
Cash at end of period | 45,940,718 | 27,574,332 |
Supplemental Disclosures of Cash Flow Information | ||
Cash Paid for Interest | 105,409 | |
Supplemental Schedule of Non-cash Investing and Financing Activities | ||
Accounts Payable from consultants settled with Common Stock | 3,000 | |
Conversion of notes payable into common stock | 39,932 | |
Accrued Legal fees included in financing costs | $239,297 |
Organization
Organization | 6 Months Ended |
Apr. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. ORGANIZATION |
Advaxis, Inc. (“Advaxis” or the “Company”) is a clinical stage biotechnology company focused on the discovery, development and commercialization of proprietary Lm -LLO cancer immunotherapies. These immunotherapies are based on a platform technology that utilizes live attenuated Listeria monocytogenes (“Lm” or “Listeria”), bioengineered to secrete antigen/adjuvant fusion proteins. These Lm -LLO strains are believed to be a significant advancement in immunotherapy as they integrate multiple functions into a single immunotherapy as they access and direct antigen presenting cells to stimulate anti-tumor T-cell immunity, stimulate and activate the immune system with the equivalent of multiple adjuvants, and simultaneously reduce tumor protection in the tumor microenvironment to enable the T-cells to eliminate tumors. | |
ADXS-HPV is the Company’s lead Lm -LLO immunotherapy product candidate for the treatment of human papilloma virus (“HPV”) associated cancers. The Company completed a randomized Phase 2 study in 110 patients with recurrent cervical cancer that was shown to have a manageable safety profile, improved survival and objective tumor responses. In addition, the Gynecologic Oncology Group (“GOG”), now part of NRG Oncology, is conducting a Phase 2 open-label clinical study of ADXS-HPV in patients with persistent or recurrent cervical cancer with documented disease progression. The study, known as GOG 0265, has successfully completed its first stage and has met the predetermined safety and efficacy criteria required to proceed into the second stage of patient recruitment which is now enrolling. The Company plans to advance this immunotherapy into a registrational clinical trial for the treatment of women with high-risk locally advanced cervical cancer. | |
ADXS-HPV has received United States Food and Drug Administration (“FDA”) orphan drug designation for three HPV-associated cancers: cervical, head and neck, and anal cancer, and is being evaluated in Company-sponsored trials executed under an Investigational New Drug (“IND”) include the following: i) a Phase 1/2 clinical trial alone and in combination with MedImmune’s investigational anti-PD-L1 immune checkpoint inhibitor, MEDI4736, in patients with previously treated metastatic HPV-associated cervical cancer and HPV-associated head and neck cancer; ii) a Phase 2 multi-center, open-label study alone and in combination with Incyte’s investigational oral indoleamine 2,3-dioxygenase 1 (IDO1) inhibitor, epacadostat (INCB24360) in patients with Stage I-IIa HPV-associated cervical cancer; iii) a Phase 1/2 study evaluating higher doses and repeat cycles of ADXS-HPV in patients with recurrent cervical cancer; and, iv) a Phase 2 study in collaboration with and funded by Global BioPharma Inc. (“GBP”), under a development and commercialization license agreement applicable to Asia, of ADXS-HPV in HPV-associated non-small cell lung cancer. In addition to the Company-sponsored trials, ADXS-HPV is also beging evaluated in three ongoing investigator-initiated clinical trials as follows: locally advanced cervical cancer (cooperative group sponsor), head and neck cancer, and anal cancer. | |
ADXS-PSA is the Company’s Lm -LLO immunotherapy product candidate designed to target the Prostate Specific Antigen (“PSA”) associated with prostate cancer. The FDA has cleared the Company’s IND application and the Company has initiated a Phase 1/2 clinical trial alone and in combination with KEYTRUDA® (pembrolizumab), Merck’s humanized monoclonal antibody against PD-1, in patients with previously treated metastatic castration-resistant prostate cancer. | |
ADXS-HER2 is the Company’s Lm -LLO immunotherapy product candidate designed for the treatment of Human Epidermal Growth Factor Receptor 2 (“HER2”) expressing cancers, including human and canine osteosarcoma, breast, gastric and other cancers. The FDA has cleared the Company’s IND application and is in the process of initiating a Phase 1b clinical trial in patients with metastatic HER2 expressing solid tumors. The Company received orphan drug designation for ADXS-HER2 in osteosarcoma. Clinical research with ADXS-HER2 in canine osteosarcoma is being developed by the Company’s pet therapeutic partner, Aratana Therapeutics Inc. (“Aratana”), who holds exclusive rights to develop and commercialize ADXS-HER2 and three other Lm -LLO immunotherapies for pet health applications. Aratana has announced that a product license application for use of ADXS-HER2 in the treatment of canine osteosarcoma has been filed with the United States Department of Agriculture (“USDA”). Aratana received communication from the USDA in March 2015 that the efficacy data previously submitted for product license for AT-014 (ADXS-HER2), the cancer immunotherapy for canine osteosarcoma, licensed from the Company was accepted to provide a reasonable expectation of efficacy to support conditional licensure. While Aratana needs to complete additional steps, including in the areas of manufacturing and safety, Aratana anticipates that AT-014 could receive conditional licensure from the USDA in 2016. | |
Since inception in 2002, the Company has focused its development efforts on understanding its platform technology and establishing a drug development pipeline that incorporates this technology into therapeutic cancer immunotherapies, currently those targeting HPV-associated cancer (cervical cancer, head and neck cancer and anal cancer), prostate cancer, and HER2 expressing cancers. Although no immunotherapies have been commercialized to date, research and development and investment continues to be placed behind the advancement of this technology. Pipeline development and the further exploration of the technology for advancement entails risk and expense. The Company anticipates that its ongoing operational costs will increase significantly as it continues conducting and expanding its clinical development program. Further, over twenty distinct additional constructs leveraging certain antigens highly expressed in multiple tumor types, developed directly by the Company and through strategic collaborations with recognized centers of excellence, are in various stages of development. Impending priority research advances include, but are not limited to, constructs targeting pan tumor antigens and tumor stromal targets. | |
Liquidity and Financial Condition | |
The Company’s products are being developed and have not generated significant revenues. As a result, the Company has suffered recurring losses. These losses are expected to continue for an extended period of time. On December 19, 2014, the Company priced a registered direct offering of 3,940,801 shares of its Common Stock (“Common Stock”). The transaction closed on December 22, 2014, and the Company received net proceeds of approximately $15.8 million from the offering. In addition, on February 18, 2015, the Company priced an additional registered direct offering of 3,068,095 shares of its Common Stock. The transaction closed on February 19, 2015, and the Company received net proceeds of approximately $22.3 million from the offering. The shares in each offering were sold under a Registration Statement (No. 333-194009) on Form S-3, filed by the Company with the United States Securities and Exchange Commission (“SEC”). On May 5, 2015, the Company closed on an underwritten public offering of 2,800,000 shares of Common Stock at a public offering price of $19.00 per share. The gross proceeds from the public offering were $53.2 million. Excluding any underwriting commissions, the estimated expenses incurred by the Company in connection with its issuance and distribution of the shares of common stock were $340,000. On May 20, 2015, the Company closed the Underwriters’ overallotment option to purchase 420,000 shares of its Common Stock at a public offering price of $19.00 per share, resulting in additional gross proceeds of $8.0 million. | |
The Company believes its current cash position is sufficient to fund its business plan approximately through calendar 2017. The estimate is based on assumptions that may prove to be wrong, and the Company could use available capital resources sooner than currently expected. Because of the numerous risks and uncertainties associated with the development and commercialization of its product candidates, the Company is unable to estimate the amount of increased capital outlays and operating expenses associated with completing the development of its current product candidates. | |
The Company recognizes it may need to raise additional capital over and above the amount raised during December 2014, February 2015 and May 2015 in order to continue to execute its business plan. Subsequent to April 30, 2015, the Company intends to continue to raise additional funds through sales of equity securities. There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company or whether the Company will become profitable and generate positive operating cash flow. If the Company is unable to raise sufficient additional funds, it will have to scale back its business plan. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies and Basis of Presentation | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Summary of Significant Accounting Policies and Basis of Presentation | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION | ||||||||
Basis of Presentation - Unaudited Interim Financial Information | |||||||||
The accompanying unaudited interim condensed financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and in accordance with the rules and regulations of the SEC with respect to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to represent a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited interim financial statements should be read in conjunction with the financial statements of the Company for the year ended October 31, 2014 and notes thereto contained in the Company’s annual report on Form 10-K for the year ended October 31, 2014, as filed with the SEC on January 6, 2015. | |||||||||
Revenue Recognition | |||||||||
The Company is expected to derive the majority of its revenue from patent licensing. In general, these revenue arrangements provide for the payment of contractually determined fees in consideration for the grant of certain intellectual property rights for patented technologies owned or controlled by the Company. The intellectual property rights granted may be perpetual in nature, or upon the final milestones being met, or can be granted for a defined, relatively short period of time, with the licensee possessing the right to renew the agreement at the end of each contractual term for an additional minimum upfront payment. The Company recognizes licensing fees when there is persuasive evidence of a licensing arrangement, fees are fixed or determinable, delivery has occurred and collectability is reasonably assured. | |||||||||
An allowance for doubtful accounts is established based on the Company’s best estimate of the amount of probable credit losses in the Company’s existing license fee receivables, using historical experience. The Company reviews its allowance for doubtful accounts periodically. Past due accounts are reviewed individually for collectability. | |||||||||
Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. To date, this is yet to occur. | |||||||||
If product development is successful, the Company will recognize revenue from royalties based on licensees’ sales of its products or products using its technologies. Royalties are recognized as earned in accordance with the contract terms when royalties from licensees can be reasonably estimated and collectability is reasonably assured. If royalties cannot be reasonably estimated or collectability of a royalty amount is not reasonably assured, royalties are recognized as revenue when the cash is received. | |||||||||
The Company recognizes revenue from milestone payments received under collaboration agreements when earned, provided that the milestone event is substantive, its achievability was not reasonably assured at the inception of the agreement, the Company has no further performance obligations relating to the event and collection is reasonably assured. If these criteria are not met, the Company recognizes milestone payments ratably over the remaining period of the Company’s performance obligations under the collaboration agreement. All such recognized revenues are included in collaborative licensing and development revenue in the Company’s consolidated statements of operations. | |||||||||
Estimates | |||||||||
The preparation of financial statements in accordance with GAAP involves the use of estimates and assumptions that affect the recorded amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ substantially from these estimates. Significant estimates include the fair value and recoverability of the carrying value of intangible assets (patents and licenses), the fair value of options, the fair value of embedded conversion features, warrants and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, based on historical experience and on various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from estimates. | |||||||||
Concentration of Credit Risk | |||||||||
The Company maintains its cash in bank deposit accounts (checking) that at times exceed federally insured limits. Approximately $45.7 million is subject to credit risk at April 30, 2015. However, these cash balances are maintained at creditworthy financial institutions. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk. | |||||||||
Fair Value of Financial Instruments | |||||||||
The carrying amounts of financial instruments, including cash, accounts payable and accrued expenses approximated fair value as of the balance sheet date presented, because of the relatively short maturity dates on these instruments. The carrying amounts of the financing arrangements issued approximate fair value as of the balance sheet date presented, because interest rates on these instruments approximate market interest rates after consideration of stated interest rates, anti-dilution protection and associated warrants. | |||||||||
Net Loss per Share | |||||||||
Basic net income or loss per common share is computed by dividing net income or loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share give effect to dilutive options, warrants, convertible debt and other potential Common Stock outstanding during the period. In the case of a net loss the impact of the potential Common Stock resulting from warrants, outstanding stock options and convertible debt are not included in the computation of diluted loss per share, as the effect would be anti-dilutive. In the case of net income the impact of the potential Common Stock resulting from these instruments that have intrinsic value are included in the diluted earnings per share. The table sets forth the number of potential shares of Common Stock that have been excluded from diluted net loss per share. | |||||||||
As of April 30, | |||||||||
2015 | 2014 | ||||||||
Warrants | 3,862,273 | 4,541,454 | |||||||
Stock Options | 798,357 | 491,923 | |||||||
Shares earned but not issued | - | 206,989 | |||||||
Convertible Debt (using the if-converted method) | 1,576 | 3,354 | |||||||
Total | 4,662,206 | 5,243,720 | |||||||
Stock Based Compensation | |||||||||
The Company has an equity plan which allows for the granting of stock options to its employees, directors and consultants for a fixed number of shares with an exercise price equal to the fair value of the shares at date of grant. The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, the fair value of the award is measured on the grant date and for non-employees, the fair value of the award is generally measured based on contractual terms. The fair value amount is then recognized over the requisite service period, usually the vesting period, in both research and development expenses and general and administrative expenses on the statement of operations depending on the nature of the services provided by the employees or consultants. | |||||||||
The process of estimating the fair value of stock-based compensation awards and recognizing stock-based compensation cost over their requisite service period involves significant assumptions and judgments. The Company estimates the fair value of stock option awards on the date of grant using the Black Scholes Model (“BSM”) for the remaining awards, which requires that the Company makes certain assumptions regarding: (i) the expected volatility in the market price of its Common Stock; (ii) dividend yield; (iii) risk-free interest rates; and (iv) the period of time employees are expected to hold the award prior to exercise (referred to as the expected holding period). As a result, if the Company revises its assumptions and estimates, stock-based compensation expense could change materially for future grants. | |||||||||
The Company accounts for stock-based compensation using fair value recognition and records stock-based compensation as a charge to earnings net of the estimated impact of forfeited awards. As such, the Company recognizes stock-based compensation cost only for those stock-based awards that are estimated to ultimately vest over their requisite service period, based on the vesting provisions of the individual grants. | |||||||||
Recent Accounting Pronouncements | |||||||||
In January 2015, the FASB issued ASU 2015-01, Income Statement —Extraordinary and Unusual Items. The objective of this Update is to simplify the income statement presentation requirements in Subtopic 225-20 by eliminating the concept of extraordinary items. Extraordinary items are events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence. Eliminating the extraordinary classification simplifies income statement presentation by altogether removing the concept of extraordinary items from consideration. This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2014-220—Income Statement—Extraordinary Items (Subtopic 225-20), which has been deleted. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. This Update is not expected to have a material impact on the Company’s financial statements. | |||||||||
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on the accompanying condensed financial statements. |
Property_and_Equipment
Property and Equipment | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment | 3. PROPERTY AND EQUIPMENT | ||||||||
Property and equipment consists of the following: | |||||||||
30-Apr-15 | 31-Oct-14 | ||||||||
(Unaudited) | |||||||||
Laboratory Equipment | $ | 344,025 | $ | 333,727 | |||||
Accumulated Depreciation | (270,507 | ) | (256,358 | ) | |||||
Net Property and Equipment | $ | 73,518 | $ | 77,369 | |||||
Depreciation expense for the three and six months ended April 30, 2015 and 2014 was $7,246, $14,148, $6,903 and $13,806, respectively. |
Intangible_Assets
Intangible Assets | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Intangible Assets | 4. INTANGIBLE ASSETS | ||||||||
Pursuant to our license agreement with the University of Pennsylvania, the Company is billed actual patent expenses as they are passed through from Penn and are billed directly from our patent attorney. The following is a summary of intangible assets as of the end of the following fiscal periods: | |||||||||
30-Apr-15 | 31-Oct-14 | ||||||||
(Unaudited) | |||||||||
License | $ | 651,992 | $ | 651,992 | |||||
Patents | 3,445,328 | 3,111,624 | |||||||
Total intangibles | 4,097,320 | 3,763,616 | |||||||
Accumulated Amortization | (1,094,363 | ) | (995,671 | ) | |||||
Intangible Assets | $ | 3,002,957 | $ | 2,767,945 | |||||
The expirations of the existing patents range from 2015 to 2028 but the expirations can be extended based on market approval if granted and/or based on existing laws and regulations. Capitalized costs associated with patent applications that are abandoned without future value are charged to expense when the determination is made not to pursue the application. No patent applications with future value were abandoned or expired and charged to expense in the three and six months ended April 30, 2015 or 2014. Amortization expense for licensed technology and capitalized patent costs are included in general and administrative expenses and aggregated $50,389, $98,692, $42,682, and $84,616 for the three and six months ended April 30, 2015 and 2014, respectively. | |||||||||
Estimated amortization expense for the next five years is as follows: | |||||||||
Year ended October 31, | |||||||||
2015 (Remaining) | $ | 102,500 | |||||||
2016 | 205,000 | ||||||||
2017 | 205,000 | ||||||||
2018 | 205,000 | ||||||||
2019 | 205,000 |
Accrued_Expenses
Accrued Expenses | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Expenses | 5. ACCRUED EXPENSES: | ||||||||
The following table represents the major components of accrued expenses: | |||||||||
30-Apr-15 | 31-Oct-14 | ||||||||
(Unaudited) | |||||||||
Salaries and Other Compensation | $ | 682,590 | $ | 890,069 | |||||
Vendors | 61,977 | 121,200 | |||||||
Professional Fees | 52,116 | 208,000 | |||||||
Withholding Taxes Payable | 119,540 | 22,527 | |||||||
$ | 916,223 | $ | 1,241,796 |
ShortTerm_Convertible_Notes_Fa
Short-Term Convertible Notes & Fair Value of Embedded Derivative | 6 Months Ended |
Apr. 30, 2015 | |
Debt Disclosure [Abstract] | |
Short-Term Convertible Notes & Fair Value of Embedded Derivative | 6. SHORT-TERM CONVERTIBLE NOTES & FAIR VALUE OF EMBEDDED DERIVATIVE |
As of April 30, 2015 and October 31, 2014, the Company had approximately $30,000 and $63,000 in principal outstanding on its junior subordinated convertible promissory notes that are currently overdue and are recorded as current liabilities on the Company’s balance sheet at April 30, 2015 and October 31, 2014, respectively. | |
During February 2015, the Company induced certain noteholders to convert their convertible promissory notes into common shares by offering conversion prices at a $1.61 discount from the market price of the common stock. In total, $33,333 of promissory notes were converted into 4,104 shares of common stock. In connection with the note conversions, the Company recorded a debt conversion expense of $6,599 in the accompanying statement of operations. |
Derivative_Instruments
Derivative Instruments | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Derivative Instruments | 7. DERIVATIVE INSTRUMENTS | ||||||||
Warrants | |||||||||
A summary of changes in warrants for the six months ended April 30, 2015 is as follows: | |||||||||
Number of | Weighted-Average | ||||||||
Warrants | Exercise Price | ||||||||
Outstanding Warrants at October 31, 2014: | 4,158,092 | $ | 5.42 | ||||||
Issued | 2,361 | $ | 7.2 | ||||||
Exercised * | (169,121 | ) | 4.12 | ||||||
Expired | (129,059 | ) | $ | 10.46 | |||||
Outstanding Warrants at April 30, 2015 | 3,862,273 | $ | 5.12 | ||||||
* Includes the cashless exercise of 120,634 warrants that resulted in the issuance of 99,400 shares of common stock. | |||||||||
At April 30, 2015, the Company had approximately 3.83 million of its total 3.86 million outstanding warrants classified as equity (equity warrants). At October 31, 2014, the Company had approximately 4.1 million of its total 4.2 million outstanding warrants classified as equity (equity warrants). At issuance, equity warrants are recorded at their relative fair values, using the Relative Fair Value Method, in the shareholders’ equity section of the balance sheet. The equity warrants can only be settled through the issuance of shares and are not subject to anti-dilution provisions. | |||||||||
Warrant Liability/Embedded Derivative Liability | |||||||||
Warrant Liability | |||||||||
At April 30, 2015, the Company had approximately 29,000 of its total approximately 3.86 million outstanding warrants classified as liability warrants (liability warrants). As of October 31, 2014, the Company had approximately 123,000 of its total approximately 4.2 million total warrants classified as liabilities (liability warrants). All of these liability warrants at April 30, 2015 and October 31, 2014 were outstanding. The Company utilizes the BSM to calculate the fair value of these warrants at issuance and at each subsequent reporting date. For those warrants with exercise price reset features (anti-dilution provisions), the Company computes multiple valuations, each quarter, using an adjusted BSM, to account for the various possibilities that could occur due to changes in the inputs to the BSM as a result of contractually-obligated changes (for example, changes in strike price to account for down-round provisions). The Company effectively weights each calculation based on the likelihood of occurrence to determine the value of the warrants at the reporting date. At April 30, 2015, none of the 29,000 liability warrants are subject to weighted-average anti-dilution provisions. At October 31, 2014, approximately 60,000 of the 123,000 liability warrants are subject to weighted-average anti-dilution provisions. A certain number of liability warrants contain a cash settlement provision in the event of a fundamental transaction (as defined in the Common Stock purchase warrant). Any changes in the fair value of the warrant liability (i.e. - the total fair value of all outstanding liability warrants at the balance sheet date) between reporting periods will be reported on the statement of operations. | |||||||||
At April 30, 2015 and October 31, 2014, the fair value of the warrant liability was approximately $328,000 and $32,000, respectively. For the three and six months ended April 30, 2015, the Company reported losses of approximately $23,000 and $287,000, respectively, due to changes in the fair value of the warrant liability. For the three and six months ended April 30, 2014, the Company reported gains of approximately $274,000 and $406,000, respectively, due to changes in the fair value of the warrant liability. In fair valuing the warrant liability, at April 30, 2015 and October 31, 2014, the Company used the following inputs in its BSM: | |||||||||
4/30/15 | 10/31/14 | ||||||||
Exercise Price: | $ | 5.63-10.63 | $ | 2.76-21.25 | |||||
Stock Price | $ | 16.81 | $ | 3.18 | |||||
Expected term: | 184-825 days | 4-1006 days | |||||||
Volatility % | 107.86%-118.38 | % | 55.41%-129.38 | % | |||||
Risk Free Rate: | .06%-.58 | % | .01%-1.62 | % | |||||
Exercise of Warrants | |||||||||
During the six months ended April 30, 2015, warrants to purchase 169,121 shares of common stock were exercised, which resulted in cash proceeds of $239,593. | |||||||||
Expiration of Warrants | |||||||||
During the six months ended April 30, 2015, the Company had 62,430 warrants with anti-dilution provisions, and 66,629 warrants with no such anti-dilution provisions, expire unexercised. | |||||||||
Warrants with anti-dilution provisions | |||||||||
Some of the Company’s warrants contained anti-dilution provisions originally set at $25.00 with a term of five years. As of April 30, 2015, all of these warrants had expired. As of October 31, 2014, these warrants had an exercise price of approximately $7.71. If the Company issues any Common Stock, except for exempt issuances as defined in the warrant agreement, for consideration less than the exercise price then the exercise price and the amount of warrant shares available would be adjusted to a new price and amount of shares per the “weighted average” formula included in the warrant agreement. For the three and six months ended April 30, 2015, this anti-dilution provision required the Company to issue approximately 2,400 additional warrant shares; and the exercise price to be lowered to $7.20. | |||||||||
For those warrants with exercise price reset features (anti-dilution provisions), the Company computed multiple valuations, each quarter, using an adjusted BSM, to account for the various possibilities that could occur due to changes in the inputs to the BSM as a result of contractually-obligated changes (for example, changes in strike price to account for down-round provisions). The Company utilized different exercise prices of $7.20 and $6.00, weighting the possibility of warrants being exercised at $7.20 between 40% and 50% and warrants being exercised at $6.00 between 60% and 50%. | |||||||||
As of April 30, 2015, there were outstanding warrants to purchase 3,862,273 shares of the Company’s Common Stock with exercise prices ranging from $2.76 to $18.75 per share. |
Stock_Options
Stock Options | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stock Options | 8. STOCK OPTIONS: | ||||||||
A summary of changes in the stock option plan for six months ended April 30, 2015 is as follows: | |||||||||
Number of | Weighted-Average | ||||||||
Options | Exercise Price | ||||||||
Outstanding at October 31, 2014: | 467,968 | $ | 15.51 | ||||||
Granted | 400,798 | $ | 12.82 | ||||||
Exercised * | (54,267 | ) | $ | 6.34 | |||||
Expired | (16,142 | ) | $ | 36.42 | |||||
Outstanding at April 30, 2015 | 798,357 | $ | 14.35 | ||||||
Vested and Exercisable at April 30, 2015 | 796,357 | $ | 14.38 | ||||||
* Includes the cashless exercise of 34,267 options that resulted in the issuance of 14,342 shares of common stock. | |||||||||
Total compensation cost related to the Company’s outstanding stock options, recognized in the statement of operations for the three months ended April 30, 2015, was $4,717,831 of which $590,276 was included in research and development expenses and $4,127,555 was included in general and administrative expenses. For the three months ended April 30, 2014, compensation cost related to the Company’s outstanding stock options was $259,874 of which $97,793 was included in research and development expenses and $162,081 was included in general and administrative expenses. For the six months ended April 30, 2015, compensation cost related to the Company’s outstanding stock options was $4,864,686 of which $635,504 was included in research and development expenses and $4,229,182 was included in general and administrative expenses. For the six months ended April 30, 2014, compensation cost related to the Company’s outstanding stock options was $517,361 of which $188,174 was included in research and development expenses and $329,187 was included in general and administrative expenses. | |||||||||
During the six months ended April 30, 2015, 400,798 options were issued with a total grant date fair value of approximately $4,656,000. During the six months ended April 30, 2014, 36,000 options were issued with a total grant date fair value of approximately $145,000. | |||||||||
During the six months ended April 30, 2015, options to purchase 54,267 shares of common stock were exercised, which resulted in cash proceeds of $58,400. | |||||||||
As of April 30, 2015, there was approximately $5,000 of unrecognized compensation cost related to non-vested stock option awards, which is expected to be recognized over a remaining average vesting period of 0.60 years. | |||||||||
As of April 30, 2015, the aggregate intrinsic value of vested and exercisable options was approximately $2,524,000. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | ||||||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||
Commitments and Contingencies | 9. COMMITMENTS AND CONTINGENCIES: | ||||||||||||||||||||
Employment Agreements | |||||||||||||||||||||
Management voluntarily purchases restricted stock directly from the Company at market price. The respective stock purchases occur on the last trading day of each month. This voluntary election is outlined in each of Daniel J. O’Connor, Chief Executive Officer and President, David J. Mauro, Executive Vice President, Chief Medical Officer, Gregory T. Mayes, Executive Vice President, Chief Operating Officer and Secretary, Robert G. Petit, Executive Vice President, Chief Scientific Officer and Sara M. Bonstein, Senior Vice President, Chief Financial Officer, (each an “Executive”), employment agreements. The table below reflects the purchases of each Executive: | |||||||||||||||||||||
ANNUALIZED | |||||||||||||||||||||
Annual Amount | For the Six Months Ended April 30, 2015 | ||||||||||||||||||||
to be Purchased | Gross Purchase | Net Purchase | |||||||||||||||||||
Executive | $ | $ | # of | $ | # of | ||||||||||||||||
shares | shares | ||||||||||||||||||||
Daniel J. O’Connor | $ | 89,064 | $ | 42,590 | 5,391 | $ | 42,590 | 5,391 | |||||||||||||
David J. Mauro | $ | 16,531 | $ | 7,991 | 1,023 | $ | 5,822 | 794 | |||||||||||||
Gregory T. Mayes | $ | 23,477 | $ | 10,562 | 1,328 | $ | 8,772 | 1,118 | |||||||||||||
Robert G. Petit | $ | 25,225 | $ | 12,470 | 1,591 | $ | 9,473 | 1,259 | |||||||||||||
Sara M. Bonstein | $ | 19,734 | $ | 8,910 | 1,123 | $ | 7,140 | 906 | |||||||||||||
For the three months ended April 30, 2015, the Company recorded stock compensation expense of $43,925 on the statement of operations representing 3,474 shares of its Common Stock (3,129 shares on a net basis after employee payroll taxes). | |||||||||||||||||||||
For the six months ended April 30, 2015, the Company recorded stock compensation expense of $90,088 on the statement of operations representing 11,305 shares of its Common Stock (10,182 shares on a net basis after employee payroll taxes). | |||||||||||||||||||||
From 2013 to present, in addition to the purchases of Common Stock set forth in the above table, Mr. O’Connor has also purchased an additional 146,616 shares of Common Stock out of his personal funds at the then market price for an aggregate consideration of approximately $588,294. These purchases consisted of the conversion of amounts due to Mr. O’Connor under a promissory note given by Mr. O’Connor to the Company in 2012 of approximately $66,500 for 21,091 shares, 2013 base salary which he elected to receive in Common Stock of approximately $182,919 for 34,752 shares, 2013 and 2014 cash bonus voluntarily requested to receive in equity of approximately $206,125 for 57,990 shares, Fiscal 2014 voluntary request to purchase stock directly from the Company at market price purchases of $68,750 for 15,950 shares, and purchases of the Company’s Common Stock in the October 2013 and March 2014 public offerings of 13,500 shares for $54,000 and 3,333 shares for $10,000. | |||||||||||||||||||||
The Executives’ employment agreements entitle them to a performance-based year-end cash bonus. Mr. O’Connor, Dr. Mauro and Mr. Mayes voluntarily requested to be paid all of their bonus, required to be paid in cash, in the Company’s Common Stock instead of cash. Ms. Bonstein voluntarily requested to be paid 75% of her cash bonus in the Company’s Common Stock instead of cash. Dr. Petit received 100% of his bonus in cash. The total fair value of these equity purchases were $457,125, or 137,275 shares of the Company’s Common Stock (104,461 on a net basis after employee payroll taxes). | |||||||||||||||||||||
Stock Awards | |||||||||||||||||||||
During the three months ended April 30, 2015, 129,583 shares of Common Stock (83,666 shares on a net basis after employee taxes) were issued to executives and employees related to incentive retention awards, employment inducements and employee excellence awards. Accordingly, $1,138,471 was charged to stock compensation expense. | |||||||||||||||||||||
During the six months ended April 30, 2015, 163,378 shares of Common Stock (111,232 shares on a net basis after employee taxes) were issued to executives and employees related to incentive retention awards, employment inducements and employee excellence awards. Accordingly, $1,272,170 was charged to stock compensation expense. | |||||||||||||||||||||
Furthermore, non-executive employees were entitled to receive a performance-based year-end cash bonus. Several non-executive employees requested to be paid all or a portion of their cash bonus in the Company’s Common Stock instead of cash. The total fair value of these equity purchases were $67,671, or 20,322 shares of the Company’s Common Stock (14,300 on a net basis after employee payroll taxes). | |||||||||||||||||||||
On March 30, 2015, the Company granted to executives 64,652 restricted stock units (RSUs”) with a fair value of $868,923 and 1,048,197 stock options with a fair value of $12,814,963. The RSU’s and stock options vest annually in equal installments such that 100% of the RSU’s have vested by the third anniversary of the grant date. The RSU’s and stock options are contingent upon the approval of the 2015 Incentive Plan. | |||||||||||||||||||||
The Company recognizes the fair value of those vested shares in the statement of operations in the period earned. | |||||||||||||||||||||
Director Compensation | |||||||||||||||||||||
During the three months ended April 30, 2015, 23,955 shares of Common Stock were issued to the Directors for compensation related to board and committee membership. Accordingly, $96,540 was charged to stock compensation expense. | |||||||||||||||||||||
During the six months ended April 30, 2015, 215,895 shares of Common Stock (202,468 shares on a net basis after taxes) were issued to the Directors for compensation related to board and committee membership. Accordingly, $703,079 was charged to stock compensation expense. | |||||||||||||||||||||
On March 30, 2015, the Company granted to the Directors 90,000 restricted stock units (RSUs”) with a fair value of $1,209,600 and 170,000 stock options with a fair value of $2,078,372 for compensation related to board and committee membership. The RSU’s vest annually in equal installments such that 100% of the RSU’s have vested by the third anniversary of the grant date. The stock options vest annually as follows: 90,000 after the one year anniversary, 40,000 after the two year anniversary and 40,000 after the three year anniversary. The RSU’s and stock options are contingent upon the approval of the 2015 Incentive Plan. | |||||||||||||||||||||
Legal Proceedings | |||||||||||||||||||||
Iliad Research and Trading | |||||||||||||||||||||
On March 24, 2014, Iliad Research and Trading, L.P. (“Iliad”) filed a complaint (the “Complaint”) against the Company in the Third Judicial District Court of Salt Lake County, Utah, purporting to assert claims for breach of express and implied contract. Specifically, Iliad alleged that the Company granted a participation right to Tonaquint, Inc. (“Tonaquint”) in a securities purchase agreement between Tonaquint and the Company, dated as of December 13, 2012 (the “Purchase Agreement”), pursuant to which Tonaquint was entitled to participate in any transaction that the Company structured in accordance with Section 3(a)(9) or Section 3(a)(10) of the Securities Act of 1933, as amended. Iliad further alleged that the settlement that the Company entered into with Ironridge Global IV, Ltd. (“Ironridge”), pursuant to which the Company issued certain shares of its Common Stock to Ironridge in reliance on the Section 3(a)(10) exemption, occurred without adequate notice for Tonaquint to exercise its participation right. In addition, Iliad alleged that it acquired all of Tonaquint’s rights under the Purchase Agreement in April 2013. | |||||||||||||||||||||
On June 2, 2014, Iliad filed an amended complaint (the “Amended Complaint”), which purported to add claims against the Company under the federal and Utah securities laws and for common law fraud. On June 30, 2014, the Company removed the action to the United States District Court for the District of Utah. On August 1, 2014, after the Court issued its Order Granting Stipulated Motion for Leave to File Second Amended Complaint, Iliad filed a Second Amended Complaint (the “SAC”), which purported to add a sixth claim for conversion. On August 22, 2014, the Company filed papers in support of its motion to dismiss the SAC in its entirety. On November 24, 2014, the Court filed an order dismissing the conversion claim but denying the remainder of the motion to dismiss. | |||||||||||||||||||||
Meanwhile, on September 22, 2014, Iliad filed papers in support of its motion for partial summary judgment of liability on the express contact claim. On December 5, 2014, Advaxis filed papers in opposition to the motion for partial summary judgment and in support of its separate motion under Rule 56(d) to deny partial summary judgment and for allowance of discovery. On December 8, 2014, Advaxis filed its answer to the SAC and a counterclaim (the “Counterclaim”), alleging that Iliad – by purporting to have surreptitiously preserved its claim for breach of Tonaquint’s alleged right to participate in the Ironridge transaction – had fraudulently induced Advaxis to enter into the parties’ post-assignment Exchange and Settlement Agreement and, in the alternative, had breached the covenant of good faith and fair dealing implied therein. On January 23, 2015, Iliad filed its Reply to Counterclaim (rather than attempting to move to dismiss Advaxis’s Counterclaim). On May 4, 2015, the Court filed its Memorandum Decision and Order, which grants the partial motion for summary judgement and denies the Rule 56(d) motion, finding that Advaxis materially breached the Purchase Agreement. | |||||||||||||||||||||
On May 28, 2015, following a Scheduling Conference, the Court set the following case deadlines: end of discovery (January 15, 2016); dispositive and expert motions (February 12, 2016); Proposed Pretrial Order (March 23, 2016); and Final Pretrial Conference (March 25, 2016). | |||||||||||||||||||||
Iliad seeks “damages in an amount to be determined at trial” (though the common law fraud damages alone are alleged to be “greater than $300,000”) plus interest, attorneys’ fees and costs. Iliad has also asked for punitive damages in connection with its claims under the Utah Securities Act (equal to three times its actual damages), and common law fraud. The Company intends to continue to defend itself vigorously. | |||||||||||||||||||||
Numoda | |||||||||||||||||||||
On June 19, 2009, the Company entered into a master agreement and on July 8, 2009, the Company entered into a Project Agreement with Numoda Corporation (“Numoda”), to oversee Phase 2 clinical activity with ADXS-HPV for the treatment of invasive cervical cancer and CIN. | |||||||||||||||||||||
On October 1, 2014, the Company filed a Complaint against Numoda seeking a declaratory judgment that, with its tender to Numoda of a check for $68,884.00, the Company had fully performed the parties’ Project Agreement and that Numoda was not entitled to interest, costs or attorneys’ fees thereunder or otherwise. On January 9, 2015, Numoda filed papers in support of its motion to dismiss the Complaint. On January 23, 2015, the Company filed an Amended Complaint against Numoda seeking an order directing Numoda to specifically perform its obligation to deliver to Advaxis all materials, information and other data generated under the parties’ Project Agreement. On February 25, 2015, the Court endorsed a letter from Numoda’s counsel withdrawing its motion to dismiss the Complaint in light of the Amended Complaint. On February 20, 2015, Numoda filed an Answer denying liability and asserting a number of affirmative defenses. With Court approval of a stipulation of the parties, the Preliminary Conference was adjourned from May 28, 2015 until August 13, 2015. | |||||||||||||||||||||
The Company is from time to time involved in legal proceedings in the ordinary course of its business. The Company does not believe that any of these claims and proceedings against us is likely to have, individually or in the aggregate, a material adverse effect on its financial condition or results of operations. | |||||||||||||||||||||
Description of Property | |||||||||||||||||||||
The Company’s corporate offices are currently located at 305 College Road East, Princeton, New Jersey 08540. On April 1, 2011, the Company entered into a sublease agreement for such office, which agreement has a termination date of November 29, 2015. In May 2015, the Company entered into a direct lease for an expansion area, as well as a direct lease for the existing office, lab and vivarium space upon the expiration of the sublease agreement, which is approximately 20,000 square foot of space in Princeton, NJ. The Company plans to continue to rent necessary offices and laboratories to support its business. |
Sharesholders_Equity
Sharesholders' Equity | 6 Months Ended |
Apr. 30, 2015 | |
Equity [Abstract] | |
Sharesholders' Equity | 10. SHAREHOLDERS’ EQUITY |
Registered Direct Offerings | |
On December 19, 2014, the Company priced a registered direct offering of 3,940,801 shares of its Common Stock at $4.25 per share. The transaction closed on December 22, 2014, and the Company received gross proceeds of approximately $16.7 million from the offering. After deducting offering expenses, the net proceeds from the offering were approximately $15.8 million. | |
On February 18, 2015, the Company priced an additional registered direct offering of 3,068,095 shares of its Common Stock at $7.50 per share. The transaction closed on February 19, 2015, and the Company received gross proceeds of approximately $23.0 million from the offering. After deducting offering expenses, the net proceeds from the offering were approximately $22.3 million. | |
Shares Issued to consultants | |
During the six months ended April 30, 2015, 243,650 shares of Common Stock valued at $2,377,907 were issued to consultants for services, of which $807,600 was included in research and development expenses and $1,570,307 was included in general and administrative expenses. The common stock share values were based on the grant date fair values. |
Fair_Value
Fair Value | 6 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value | 11. FAIR VALUE | ||||||||||||||||
The authoritative guidance for fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The guidance describes a fair value hierarchy based on the levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: | |||||||||||||||||
● Level 1 — Quoted prices in active markets for identical assets or liabilities | |||||||||||||||||
● Level 2— Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable market data or substantially the full term of the assets or liabilities | |||||||||||||||||
● Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the value of the assets or liabilities | |||||||||||||||||
The following table provides the liabilities carried at fair value measured on a recurring basis as of April 30, 2015 and October 31, 2014: | |||||||||||||||||
30-Apr-15 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Common stock warrant liability, warrants exercisable at $5.63 - $18.75 from May 2015 through August 2017 | $ | - | $ | $ | 327,567 | $ | 327,567 | ||||||||||
31-Oct-14 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Common stock warrant liability, warrants exercisable at $2.76 - $21.25 from November 2014 through August 2017 | $ | - | $ | $ | 32,091 | $ | 32,091 | ||||||||||
Common stock warrant liability: | |||||||||||||||||
30-Apr-15 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Beginning balance: October 31, 2014 | $ | 32,091 | |||||||||||||||
Issuance of additional warrants due to anti-dilution provisions | 8,169 | ||||||||||||||||
Change in fair value | 287,307 | ||||||||||||||||
Balance at April 30, 2015 | $ | 327,567 |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Apr. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. SUBSEQUENT EVENTS |
On May 5, 2015, the Company closed an underwritten public offering of 2,800,000 shares of common stock at a public offering price of $19.00 per share. The gross proceeds from the public offering were $53.2 million. Excluding any underwriting commissions, the estimated expenses incurred by the Company in connection with its issuance and distribution of the shares of common stock were $340,000. | |
On May 8, 2015, the Company issued 58,126 shares of Common Stock to an accredited investor as payment for consulting services rendered. | |
On May 11, 2015, the Company issued 21,250 shares of Common Stock to a current Executive which represents the initial vesting period of an inducement grant pursuant to his Employment Agreement. | |
On May 12, 2015, the Company issued 427 shares of common stock to accredited investors as a result of cashless exercises of 17,545 warrants. | |
On May 20, 2015, the Company closed the Underwriters option to purchase an additional 420,000 shares of Common Stock at a public offering price of $19.00 per share, resulting in gross proceeds of $8.0 million. | |
On May 21, 2015, the Company issued 689 shares of Common Stock to an accredited investor as payment for consulting services rendered. | |
On May 21, 2015, the Company issued 9,438 shares of Common Stock to an accredited investor as a result of a cashless exercise of 25,000 options. | |
On May 26, 2015, the Company issued 116,411 shares of Common Stock to an accredited investor as a result of a cashless exercise of 153,061 warrants. | |
On May 27, 2015, the Company’s shareholders approved the 2015 Incentive Plan. | |
On May 29, 2015, the Company issued 584 shares of Common Stock to management, pursuant to their Employment Agreements. | |
On May 29, 2015, the Company issued 4,257 shares of Common Stock to management, which represents the initial vesting period of inducement grants pursuant to their respective Employment Agreements. | |
On June 1, 2015, the Company announced that the FDA had cleared the IND application to conduct a Phase 2 clinical study of ADXS-HPV alone or in combination with Incyte Corporation’s investigational oral indoleamine 2,3-dioxygenase 1 (IDO1) inhibitor, epacadostat (INCB24360), for the treatment of Stage I-IIIb HPV-associated cervical cancer. The proposed Phase 2 protocol is designed as a multicenter, open-label, preoperative window-study designed to evaluate the safety and efficacy of ADXS-HPV as monotherapy and in combination with epacadostat in approximately 30 patients with Stage I-IIIb HPV-associated cervical cancer. The results will be used to determine whether further clinical development of this combination is warranted. | |
On June 3, 2015, the Company issued 22,500 shares of Common Stock as a result of a warrant exercise. | |
On June 3, 2015, the Company issued 10,000 shares of Common Stock to an accredited investor as payment for consulting services rendered. | |
On June 3, 2015, the Company issued 8,870 shares of Common Stock to a current Executive which represents the initial vesting period of an inducement grant pursuant to his Employment Agreement. | |
On June 3, 2015, the Company issued 21,387 shares of Common Stock to an accredited investor as a result of a cashless exercise of 58,400 options. | |
On June 5, 2015, the Company issued 50,000 shares of Common Stock as a result of a warrant exercise. | |
On June 8, 2015, the Company issued 151,400 shares of Common Stock as a result of warrant exercises. | |
On June 9, 2015, the Company issued 84,580 shares of Common Stock as a result of warrant exercises. | |
On June 10, 2015, the Company issued 108,543 shares of Common Stock as a result of warrant exercises. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Basis of Presentation - Unaudited Interim Financial Information | Basis of Presentation - Unaudited Interim Financial Information | ||||||||
The accompanying unaudited interim condensed financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and in accordance with the rules and regulations of the SEC with respect to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to represent a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited interim financial statements should be read in conjunction with the financial statements of the Company for the year ended October 31, 2014 and notes thereto contained in the Company’s annual report on Form 10-K for the year ended October 31, 2014, as filed with the SEC on January 6, 2015. | |||||||||
Revenue Recognition | Revenue Recognition | ||||||||
The Company is expected to derive the majority of its revenue from patent licensing. In general, these revenue arrangements provide for the payment of contractually determined fees in consideration for the grant of certain intellectual property rights for patented technologies owned or controlled by the Company. The intellectual property rights granted may be perpetual in nature, or upon the final milestones being met, or can be granted for a defined, relatively short period of time, with the licensee possessing the right to renew the agreement at the end of each contractual term for an additional minimum upfront payment. The Company recognizes licensing fees when there is persuasive evidence of a licensing arrangement, fees are fixed or determinable, delivery has occurred and collectability is reasonably assured. | |||||||||
An allowance for doubtful accounts is established based on the Company’s best estimate of the amount of probable credit losses in the Company’s existing license fee receivables, using historical experience. The Company reviews its allowance for doubtful accounts periodically. Past due accounts are reviewed individually for collectability. | |||||||||
Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. To date, this is yet to occur. | |||||||||
If product development is successful, the Company will recognize revenue from royalties based on licensees’ sales of its products or products using its technologies. Royalties are recognized as earned in accordance with the contract terms when royalties from licensees can be reasonably estimated and collectability is reasonably assured. If royalties cannot be reasonably estimated or collectability of a royalty amount is not reasonably assured, royalties are recognized as revenue when the cash is received. | |||||||||
The Company recognizes revenue from milestone payments received under collaboration agreements when earned, provided that the milestone event is substantive, its achievability was not reasonably assured at the inception of the agreement, the Company has no further performance obligations relating to the event and collection is reasonably assured. If these criteria are not met, the Company recognizes milestone payments ratably over the remaining period of the Company’s performance obligations under the collaboration agreement. All such recognized revenues are included in collaborative licensing and development revenue in the Company’s consolidated statements of operations. | |||||||||
Estimates | Estimates | ||||||||
The preparation of financial statements in accordance with GAAP involves the use of estimates and assumptions that affect the recorded amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ substantially from these estimates. Significant estimates include the fair value and recoverability of the carrying value of intangible assets (patents and licenses), the fair value of options, the fair value of embedded conversion features, warrants and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, based on historical experience and on various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from estimates. | |||||||||
Concentration of Credit Risk | Concentration of Credit Risk | ||||||||
The Company maintains its cash in bank deposit accounts (checking) that at times exceed federally insured limits. Approximately $45.7 million is subject to credit risk at April 30, 2015. However, these cash balances are maintained at creditworthy financial institutions. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk. | |||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||||||
The carrying amounts of financial instruments, including cash, accounts payable and accrued expenses approximated fair value as of the balance sheet date presented, because of the relatively short maturity dates on these instruments. The carrying amounts of the financing arrangements issued approximate fair value as of the balance sheet date presented, because interest rates on these instruments approximate market interest rates after consideration of stated interest rates, anti-dilution protection and associated warrants. | |||||||||
Net Loss per Share | Net Loss per Share | ||||||||
Basic net income or loss per common share is computed by dividing net income or loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share give effect to dilutive options, warrants, convertible debt and other potential Common Stock outstanding during the period. In the case of a net loss the impact of the potential Common Stock resulting from warrants, outstanding stock options and convertible debt are not included in the computation of diluted loss per share, as the effect would be anti-dilutive. In the case of net income the impact of the potential Common Stock resulting from these instruments that have intrinsic value are included in the diluted earnings per share. The table sets forth the number of potential shares of Common Stock that have been excluded from diluted net loss per share. | |||||||||
As of April 30, | |||||||||
2015 | 2014 | ||||||||
Warrants | 3,862,273 | 4,541,454 | |||||||
Stock Options | 798,357 | 491,923 | |||||||
Shares earned but not issued | - | 206,989 | |||||||
Convertible Debt (using the if-converted method) | 1,576 | 3,354 | |||||||
Total | 4,662,206 | 5,243,720 | |||||||
Stock Based Compensation | Stock Based Compensation | ||||||||
The Company has an equity plan which allows for the granting of stock options to its employees, directors and consultants for a fixed number of shares with an exercise price equal to the fair value of the shares at date of grant. The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, the fair value of the award is measured on the grant date and for non-employees, the fair value of the award is generally measured based on contractual terms. The fair value amount is then recognized over the requisite service period, usually the vesting period, in both research and development expenses and general and administrative expenses on the statement of operations depending on the nature of the services provided by the employees or consultants. | |||||||||
The process of estimating the fair value of stock-based compensation awards and recognizing stock-based compensation cost over their requisite service period involves significant assumptions and judgments. The Company estimates the fair value of stock option awards on the date of grant using the Black Scholes Model (“BSM”) for the remaining awards, which requires that the Company makes certain assumptions regarding: (i) the expected volatility in the market price of its Common Stock; (ii) dividend yield; (iii) risk-free interest rates; and (iv) the period of time employees are expected to hold the award prior to exercise (referred to as the expected holding period). As a result, if the Company revises its assumptions and estimates, stock-based compensation expense could change materially for future grants. | |||||||||
The Company accounts for stock-based compensation using fair value recognition and records stock-based compensation as a charge to earnings net of the estimated impact of forfeited awards. As such, the Company recognizes stock-based compensation cost only for those stock-based awards that are estimated to ultimately vest over their requisite service period, based on the vesting provisions of the individual grants. | |||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||
In January 2015, the FASB issued ASU 2015-01, Income Statement —Extraordinary and Unusual Items. The objective of this Update is to simplify the income statement presentation requirements in Subtopic 225-20 by eliminating the concept of extraordinary items. Extraordinary items are events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence. Eliminating the extraordinary classification simplifies income statement presentation by altogether removing the concept of extraordinary items from consideration. This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2014-220—Income Statement—Extraordinary Items (Subtopic 225-20), which has been deleted. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. This Update is not expected to have a material impact on the Company’s financial statements. | |||||||||
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on the accompanying condensed financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies and Basis of Presentation (Tables) | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Schedule of Diluted Net Loss Per Share | The table sets forth the number of potential shares of Common Stock that have been excluded from diluted net loss per share. | ||||||||
As of April 30, | |||||||||
2015 | 2014 | ||||||||
Warrants | 3,862,273 | 4,541,454 | |||||||
Stock Options | 798,357 | 491,923 | |||||||
Shares earned but not issued | - | 206,989 | |||||||
Convertible Debt (using the if-converted method) | 1,576 | 3,354 | |||||||
Total | 4,662,206 | 5,243,720 |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of Property and Equipment | Property and equipment consists of the following: | ||||||||
30-Apr-15 | 31-Oct-14 | ||||||||
(Unaudited) | |||||||||
Laboratory Equipment | $ | 344,025 | $ | 333,727 | |||||
Accumulated Depreciation | (270,507 | ) | (256,358 | ) | |||||
Net Property and Equipment | $ | 73,518 | $ | 77,369 |
Intangible_Assets_Tables
Intangible Assets (Tables) | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Summary of Intangible Assets | The following is a summary of intangible assets as of the end of the following fiscal periods: | ||||||||
30-Apr-15 | 31-Oct-14 | ||||||||
(Unaudited) | |||||||||
License | $ | 651,992 | $ | 651,992 | |||||
Patents | 3,445,328 | 3,111,624 | |||||||
Total intangibles | 4,097,320 | 3,763,616 | |||||||
Accumulated Amortization | (1,094,363 | ) | (995,671 | ) | |||||
Intangible Assets | $ | 3,002,957 | $ | 2,767,945 | |||||
Schedule of Amortization Expense | Estimated amortization expense for the next five years is as follows: | ||||||||
Year ended October 31, | |||||||||
2015 (Remaining) | $ | 102,500 | |||||||
2016 | 205,000 | ||||||||
2017 | 205,000 | ||||||||
2018 | 205,000 | ||||||||
2019 | 205,000 |
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Schedule of Accrued Expenses | The following table represents the major components of accrued expenses: | ||||||||
30-Apr-15 | 31-Oct-14 | ||||||||
(Unaudited) | |||||||||
Salaries and Other Compensation | $ | 682,590 | $ | 890,069 | |||||
Vendors | 61,977 | 121,200 | |||||||
Professional Fees | 52,116 | 208,000 | |||||||
Withholding Taxes Payable | 119,540 | 22,527 | |||||||
$ | 916,223 | $ | 1,241,796 |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Schedule of Warrants Activity | A summary of changes in warrants for the six months ended April 30, 2015 is as follows: | ||||||||
Number of | Weighted-Average | ||||||||
Warrants | Exercise Price | ||||||||
Outstanding Warrants at October 31, 2014: | 4,158,092 | $ | 5.42 | ||||||
Issued | 2,361 | $ | 7.2 | ||||||
Exercised * | (169,121 | ) | 4.12 | ||||||
Expired | (129,059 | ) | $ | 10.46 | |||||
Outstanding Warrants at April 30, 2015 | 3,862,273 | $ | 5.12 | ||||||
* Includes the cashless exercise of 120,634 warrants that resulted in the issuance of 99,400 shares of common stock. | |||||||||
Schedule of Fair Value of Warrant Liability | In fair valuing the warrant liability, at April 30, 2015 and October 31, 2014, the Company used the following inputs in its BSM: | ||||||||
4/30/15 | 10/31/14 | ||||||||
Exercise Price: | $ | 5.63-10.63 | $ | 2.76-21.25 | |||||
Stock Price | $ | 16.81 | $ | 3.18 | |||||
Expected term: | 184-825 days | 4-1006 days | |||||||
Volatility % | 107.86%-118.38 | % | 55.41%-129.38 | % | |||||
Risk Free Rate: | .06%-.58 | % | .01%-1.62 | % |
Stock_Options_Tables
Stock Options (Tables) | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Summary of Changes in Stock Option Plan | A summary of changes in the stock option plan for six months ended April 30, 2015 is as follows: | ||||||||
Number of | Weighted-Average | ||||||||
Options | Exercise Price | ||||||||
Outstanding at October 31, 2014: | 467,968 | $ | 15.51 | ||||||
Granted | 400,798 | $ | 12.82 | ||||||
Exercised * | (54,267 | ) | $ | 6.34 | |||||
Expired | (16,142 | ) | $ | 36.42 | |||||
Outstanding at April 30, 2015 | 798,357 | $ | 14.35 | ||||||
Vested and Exercisable at April 30, 2015 | 796,357 | $ | 14.38 | ||||||
* Includes the cashless exercise of 34,267 options that resulted in the issuance of 14,342 shares of common stock. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | ||||||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Allocation of Base Salary | The table below reflects the purchases of each Executive: | ||||||||||||||||||||
ANNUALIZED | |||||||||||||||||||||
Annual Amount | For the Six Months Ended April 30, 2015 | ||||||||||||||||||||
to be Purchased | Gross Purchase | Net Purchase | |||||||||||||||||||
Executive | $ | $ | # of | $ | # of | ||||||||||||||||
shares | shares | ||||||||||||||||||||
Daniel J. O’Connor | $ | 89,064 | $ | 42,590 | 5,391 | $ | 42,590 | 5,391 | |||||||||||||
David J. Mauro | $ | 16,531 | $ | 7,991 | 1,023 | $ | 5,822 | 794 | |||||||||||||
Gregory T. Mayes | $ | 23,477 | $ | 10,562 | 1,328 | $ | 8,772 | 1,118 | |||||||||||||
Robert G. Petit | $ | 25,225 | $ | 12,470 | 1,591 | $ | 9,473 | 1,259 | |||||||||||||
Sara M. Bonstein | $ | 19,734 | $ | 8,910 | 1,123 | $ | 7,140 | 906 |
Fair_Value_Tables
Fair Value (Tables) | 6 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis | The following table provides the liabilities carried at fair value measured on a recurring basis as of April 30, 2015 and October 31, 2014: | ||||||||||||||||
30-Apr-15 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Common stock warrant liability, warrants exercisable at $5.63 - $18.75 from May 2015 through August 2017 | $ | - | $ | $ | 327,567 | $ | 327,567 | ||||||||||
31-Oct-14 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Common stock warrant liability, warrants exercisable at $2.76 - $21.25 from November 2014 through August 2017 | $ | - | $ | $ | 32,091 | $ | 32,091 | ||||||||||
Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation | Common stock warrant liability: | ||||||||||||||||
30-Apr-15 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Beginning balance: October 31, 2014 | $ | 32,091 | |||||||||||||||
Issuance of additional warrants due to anti-dilution provisions | 8,169 | ||||||||||||||||
Change in fair value | 287,307 | ||||||||||||||||
Balance at April 30, 2015 | $ | 327,567 |
Organization_Details_Narrative
Organization (Details Narrative) (USD $) | 0 Months Ended | 6 Months Ended | |||
Feb. 18, 2015 | Feb. 19, 2015 | Dec. 22, 2014 | Dec. 19, 2014 | Apr. 30, 2015 | |
sqft | |||||
Number of patients | 110 | ||||
Number of shares issued during period for registered direct offering | 3,068,095 | 3,940,801 | |||
Proceeds from registered direct offering | $22,300,000 | $15,800,000 | |||
May 5, 2015 [Member] | |||||
Number of shares closed under underwritten public offering | 2,800,000 | ||||
Shares closed under underwritten public offering, per share value | 19 | ||||
Proceeds from public offering | 53,200,000 | ||||
Expenses incurred in connection with issuance and distribution of shares | 340,000 | ||||
May 20, 2015 [Member] | Over-Allotment Option [Member] | |||||
Number of shares closed under underwritten public offering | 420,000 | ||||
Shares closed under underwritten public offering, per share value | 19 | ||||
Proceeds from public offering | 8,000,000 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies and Basis of Presentation (Details Narrative) (USD $) | 6 Months Ended |
Apr. 30, 2015 | |
Accounting Policies [Abstract] | |
Concentration risk credit risk financial instrument maximum exposure | $45,700,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies and Basis of Presentation - Schedule of Diluted Net Loss Per Share (Details) | 6 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Number of common stock excluded from diluted net loss per share | 4,662,206 | 5,243,720 |
Warrant [Member] | ||
Number of common stock excluded from diluted net loss per share | 3,862,273 | 4,541,454 |
Stock Options [Member] | ||
Number of common stock excluded from diluted net loss per share | 798,357 | 491,923 |
Shares Earned But not Issued [Member] | ||
Number of common stock excluded from diluted net loss per share | 206,989 | |
Convertible Debt [Member] | ||
Number of common stock excluded from diluted net loss per share | 1,576 | 3,354 |
Property_and_Equipment_Details
Property and Equipment (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expenses | $7,246 | $6,903 | $14,148 | $13,806 |
Property_and_Equipment_Schedul
Property and Equipment - Schedule of Property and Equipment (Details) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Laboratory Equipment | $344,025 | $333,727 |
Accumulated Depreciation | -270,507 | -256,358 |
Net Property and Equipment | $73,518 | $77,369 |
Intangible_Assets_Details_Narr
Intangible Assets (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
Amortization expense of licensed technology and capitalized patent costs | $50,389 | $42,682 | $98,692 | $84,616 |
Minimum [Member] | ||||
Finite lived patents expirations | 2015 | |||
Maximum [Member] | ||||
Finite lived patents expirations | 2028 |
Intangible_Assets_Summary_of_I
Intangible Assets - Summary of Intangible Assets (Details) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
License | $651,992 | $651,992 |
Patents | 3,445,328 | 3,111,624 |
Total intangibles | 4,097,320 | 3,763,616 |
Accumulated Amortization | -1,094,363 | -995,671 |
Intangible Assets | $3,002,957 | $2,767,945 |
Intangible_Assets_Schedule_of_
Intangible Assets - Schedule of Amortization Expense (Details) (USD $) | Oct. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 (Remaining) | $102,500 |
2016 | 205,000 |
2017 | 205,000 |
2018 | 205,000 |
2019 | $205,000 |
Accrued_Expenses_Schedule_of_A
Accrued Expenses - Schedule of Accrued Expenses (Details) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
Payables and Accruals [Abstract] | ||
Salaries and Other Compensation | $682,590 | $890,069 |
Vendors | 61,977 | 121,200 |
Professional Fees | 52,116 | 208,000 |
Withholding Taxes Payable | 119,540 | 22,527 |
Accrued Liabilities, Current | $916,223 | $1,241,796 |
ShortTerm_Convertible_Notes_Fa1
Short-Term Convertible Notes & Fair Value of Embedded Derivative (Details Narrative) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2015 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Oct. 31, 2014 | |
Debt Disclosure [Abstract] | ||||||
Short-term convertible notes and fair value of embedded derivative | $29,549 | $29,549 | $62,882 | |||
Conversion price of convertible promissory notes | $1.61 | |||||
Value of convertible promissory notes | 33,333 | |||||
Number of shares issued upon conversion | 4,104 | |||||
Debt conversion expense | $6,599 | $6,599 | $6,599 |
Derivative_Instruments_Details
Derivative Instruments (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Oct. 31, 2014 | Oct. 01, 2014 | |
Warrants outstanding | 3,862,273 | 3,862,273 | 4,158,092 | |||
Fair value of embedded derivative | $328,000 | $328,000 | $32,000 | |||
Gain (loss) on change in fair value of common stock warrant liability and embedded derivative liability | -23,000 | 274,000 | -287,307 | 405,797 | ||
Warrants to purchase of common stock exercised during period | 169,121 | |||||
Cash proceeds | $239,593 | $250 | ||||
Anti-dilution provision warrant | 62,430 | |||||
Anti-dilution warrants expired | 66,629 | |||||
Anti-dilution provisions warrants exercise price | $25 | |||||
Anti-dilution provision warrants period | 5 years | |||||
Warrants exercise price | $7.20 | $7.20 | $7.71 | |||
Anti-dilution provisions additional warrants issuable | 2,400 | 2,400 | ||||
Exercise price per share | $5.12 | $5.12 | $5.42 | |||
Maximum [Member] | ||||||
Exercise price per share | $18.75 | $18.75 | $21.25 | |||
Minimum [Member] | ||||||
Exercise price per share | $5.63 | $5.63 | $2.76 | |||
Warrant [Member] | Maximum [Member] | ||||||
Exercise price per share | $18.75 | $18.75 | ||||
Warrant [Member] | Minimum [Member] | ||||||
Exercise price per share | $2.76 | $2.76 | ||||
Warrant [Member] | ||||||
Warrants outstanding | 3,860,000 | 3,860,000 | ||||
Equity Warrants [Member] | ||||||
Warrants outstanding | 3,830,000 | 3,830,000 | 4,100,000 | |||
Warrant [Member] | ||||||
Warrants outstanding | 4,200,000 | |||||
Liability Warrant [Member] | ||||||
Warrants outstanding | 3,860,000 | 3,860,000 | 4,200,000 | |||
Embedded derivative liability outstanding | 29,000 | 29,000 | 123,000 | |||
Liability Warrants One [Member] | ||||||
Weighted average anti-dilutive warrants | 60,000 | |||||
Liability Warrants Two [Member] | ||||||
Weighted average anti-dilutive warrants | 29,000 | 29,000 | 123,000 | |||
Warrants With Anti Dilution Provisions [Member] | Maximum [Member] | ||||||
Anti-dilution provisions warrants exercise price | $7.20 | |||||
Probability of exercise of additional warrants at exercise price one | 50.00% | |||||
Probability of exercise of additional warrants at exercise price two | 60.00% | |||||
Warrants With Anti Dilution Provisions [Member] | Minimum [Member] | ||||||
Anti-dilution provisions warrants exercise price | $6 | |||||
Probability of exercise of additional warrants at exercise price one | 40.00% | |||||
Probability of exercise of additional warrants at exercise price two | 50.00% |
Derivative_Instruments_Schedul
Derivative Instruments - Schedule of Warrants Activity (Details) (USD $) | 6 Months Ended | |
Apr. 30, 2015 | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Number of Warrants, Outstanding, Beginning balance | 4,158,092 | |
Number of Warrants, Issued | 2,361 | |
Number of Warrants, Exercised | -169,121 | [1] |
Number of Warrants, Expired | -129,059 | |
Number of Warrants, Outstanding, Ending balance | 3,862,273 | |
Weighted-Average Exercise Price, Outstanding, Beginning | $5.42 | |
Weighted-Average Exercise Price, Issued | $7.20 | |
Weighted-Average Exercise Price, Exercised | $4.12 | [1] |
Weighted-Average Exercise Price, Expired | $10.46 | |
Weighted-Average Exercise Price, Outstanding, Ending | $5.12 | |
[1] | Includes the cashless exercise of 120,634 warrants that resulted in the issuance of 99,400 shares of common stock. |
Derivative_Instruments_Schedul1
Derivative Instruments - Schedule of Warrants Activity (Details) (Parenthetical) | 6 Months Ended |
Apr. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Cashless exercise of warrants | 120,634 |
Warrants resulted number of issuance of common stock | 99,400 |
Derivative_Instruments_Schedul2
Derivative Instruments - Schedule of Fair Value of Warrant Liability (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Oct. 31, 2014 | |
Stock Price | $16.81 | $3.18 |
Minimum [Member] | ||
Exercise Price: | $5.63 | $2.76 |
Expected term: | 184 days | 4 days |
Volatility % | 107.86% | 55.41% |
Risk Free Rate: | 0.06% | 0.01% |
Maximum [Member] | ||
Exercise Price: | $10.63 | $21.25 |
Expected term: | 825 days | 1006 days |
Volatility % | 118.38% | 129.38% |
Risk Free Rate: | 0.58% | 1.62% |
Stock_Options_Details_Narrativ
Stock Options (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
Total compensation cost | $4,717,831 | $259,874 | $4,864,686 | $517,361 |
Number of options, granted | 400,798 | 36,000 | ||
Fair value of option granted | 4,656,000 | 145,000 | ||
Number of shares exercised | 54,267 | |||
Cash proceeds from stock option exercised | 58,400 | |||
Unrecognized compensation cost related to nonvested stock option awards | 5,000 | 5,000 | ||
Recognized over a remaining average vesting period | 7 months 6 days | |||
Aggregate intrinsic value of outstanding options | 2,524,000 | 2,524,000 | ||
Research and Development Expenses [Member] | ||||
Total compensation cost | 590,276 | 97,793 | 635,504 | 188,174 |
General and Administrative Expenses [Member] | ||||
Total compensation cost | $4,127,555 | $162,081 | $4,229,182 | $329,187 |
Stock_Options_Summary_of_Chang
Stock Options - Summary of Changes in Stock Option Plan (Details) (USD $) | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of Options, Outstanding, Beginning balance | 467,968 | ||
Number of Options, Granted | 400,798 | 36,000 | |
Number of Options, Exercised | -54,267 | [1] | |
Number of Options, Expired | -16,142 | ||
Number of Options, Outstanding, Ending Balance | 798,357 | ||
Number of Options, Vested and Exercisable | 796,357 | ||
Weighted-Average Exercise Price, Outstanding, Beginning | $15.51 | ||
Weighted-Average Exercise Price, Granted | $12.82 | ||
Weighted-Average Exercise Price, Exercised | $6.34 | [1] | |
Weighted-Average Exercise Price, Expired | $36.42 | ||
Weighted-Average Exercise Price, Outstanding, Ending | $14.35 | ||
Weighted-Average Exercise Price, Vested and Exercisable | $14.38 | ||
[1] | Includes the cashless exercise of 34,267 options that resulted in the issuance of 14,342 shares of common stock. |
Stock_Options_Summary_of_Chang1
Stock Options - Summary of Changes in Stock Option Plan (Details) (Parenthetical) | 6 Months Ended |
Apr. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Cashless exercise of stock options | 34,267 |
Stock option resulted number of issuance of common stock | 14,342 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2014 | Oct. 01, 2014 | Mar. 30, 2015 | Mar. 31, 2014 | Oct. 31, 2013 | |
sqft | sqft | ||||||
Stock compensation expense | $43,925 | $90,088 | |||||
Share-based compensation, common stock, shares | 3,474 | 11,305 | |||||
Share-based compensation, shares on net basis after employee payroll taxes | 3,129 | 10,182 | |||||
Stock option granted, shares | 400,798 | 36,000 | |||||
Area of office space | 20,000 | 20,000 | |||||
Director [Member] | |||||||
Stock compensation expense | 96,540 | 703,079 | |||||
Share-based compensation, common stock, shares | 23,955 | 215,895 | |||||
Share-based compensation, shares on net basis after employee payroll taxes | 202,468 | ||||||
Numoda Corporation [Member] | |||||||
Seeking a declaratory judgement amount | 68,884 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Stock option granted, shares | 1,048,197 | ||||||
Stock option granted fair value | 12,814,963 | ||||||
Restricted stock unit percentage | 100.00% | ||||||
Restricted Stock Units (RSUs) One [Member] | |||||||
Stock option granted, shares | 170,000 | ||||||
Stock option granted fair value | 2,078,372 | ||||||
2013 Base Salary Stock [Member] | |||||||
Issuance of common stock | 34,752 | ||||||
Number of stock shares issued during period amount | 182,919 | ||||||
2014 Cash Bonus Equity [Member] | |||||||
Issuance of common stock | 57,990 | ||||||
Number of stock shares issued during period amount | 206,125 | ||||||
2014 Voluntary Request To Purchase Of Equity [Member] | |||||||
Issuance of common stock | 15,950 | ||||||
Number of stock shares issued during period amount | 68,750 | ||||||
Common Stock [Member] | |||||||
Issuance of common stock | 3,333 | 13,500 | |||||
Number of stock shares issued during period amount | 10,000 | 54,000 | |||||
Promissory Note One [Member] | |||||||
Issuance of common stock | 21,091 | ||||||
Number of stock shares issued during period amount | 66,500 | ||||||
Daniel J. O' Connor [Member] | |||||||
Issuance of common stock | 146,616 | ||||||
Number of stock shares issued during period amount | 588,294 | ||||||
Sara M. Bonstein [Member] | Stock Bonus Award [Member] | |||||||
Stock compensation expense | 1,138,471 | 1,272,170 | |||||
Share-based compensation, common stock, shares | 129,583 | 163,378 | |||||
Share-based compensation, shares on net basis after employee payroll taxes | 83,666 | 111,232 | |||||
Percentage of bonus paid | 75.00% | 75.00% | |||||
Dr. Petit [Member] | Stock Bonus Award [Member] | |||||||
Share-based compensation, shares on net basis after employee payroll taxes | 104,461 | ||||||
Percentage of bonus paid | 100.00% | 100.00% | |||||
Fair value of equity purchases value | 457,125 | ||||||
Number of shares for equity purchases | 137,275 | ||||||
Non Executive Employees [Member] | Stock Bonus Award [Member] | |||||||
Share-based compensation, shares on net basis after employee payroll taxes | 14,300 | ||||||
Fair value of equity purchases value | 67,671 | ||||||
Number of shares for equity purchases | 20,322 | ||||||
Executives [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Stock option granted, shares | 64,652 | ||||||
Stock option granted fair value | 868,923 | ||||||
Director [Member] | |||||||
Restricted stock unit percentage | 100.00% | ||||||
Director [Member] | Year One [Member] | |||||||
Number of restricted stock units vest | 90,000 | ||||||
Director [Member] | Year Two [Member] | |||||||
Number of restricted stock units vest | 40,000 | ||||||
Director [Member] | Year Three And After [Member] | |||||||
Number of restricted stock units vest | 40,000 | ||||||
Director [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Stock option granted, shares | 90,000 | ||||||
Stock option granted fair value | 1,209,600 | ||||||
Iliad Research and Trading, L.P. [Member] | |||||||
Damages on claim plus interest, attorneys' fees and costs | $300,000 | $300,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Allocation of Base Salary (Details) (USD $) | 6 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Annual Amount to be Purchased | $9,175,100 | $2,345,301 |
Cumulative Net Purchase | 38,110,072 | 14,820,105 |
Daniel J. O' Connor [Member] | ||
Annual Amount to be Purchased | 89,064 | |
Cumulative Gross Purchase | 42,590 | |
Cumulative shares Gross Purchase | 5,391 | |
Cumulative Net Purchase | 42,590 | |
Cumulative shares Net Purchase | 5,391 | |
David J. Mauro [Member] | ||
Annual Amount to be Purchased | 16,531 | |
Cumulative Gross Purchase | 7,991 | |
Cumulative shares Gross Purchase | 1,023 | |
Cumulative Net Purchase | 5,822 | |
Cumulative shares Net Purchase | 794 | |
Gregory T. Mayes [Member] | ||
Annual Amount to be Purchased | 23,477 | |
Cumulative Gross Purchase | 10,562 | |
Cumulative shares Gross Purchase | 1,328 | |
Cumulative Net Purchase | 8,772 | |
Cumulative shares Net Purchase | 1,118 | |
Robert G. Petit [Member] | ||
Annual Amount to be Purchased | 25,225 | |
Cumulative Gross Purchase | 12,470 | |
Cumulative shares Gross Purchase | 1,591 | |
Cumulative Net Purchase | 9,473 | |
Cumulative shares Net Purchase | 1,259 | |
Sara M. Bonstein [Member] | ||
Annual Amount to be Purchased | 19,734 | |
Cumulative Gross Purchase | 8,910 | |
Cumulative shares Gross Purchase | 1,123 | |
Cumulative Net Purchase | $7,140 | |
Cumulative shares Net Purchase | 906 |
Shareholders_Equity_Details_Na
Shareholders' Equity (Details Narrative) (USD $) | 0 Months Ended | 6 Months Ended | ||||
Feb. 18, 2015 | Feb. 19, 2015 | Dec. 22, 2014 | Dec. 19, 2014 | Feb. 18, 2015 | Apr. 30, 2015 | |
Number of shares issued during period for registered direct offering | 3,068,095 | 3,940,801 | ||||
Proceeds from registered direct offering, net of offering expenses | $22,300,000 | $15,800,000 | ||||
Registered Direct Offering [Member] | ||||||
Common stock price per share | 7.5 | 4.25 | $7.50 | |||
Proceeds from received from offering | 16,700,000 | 23,000,000 | ||||
Proceeds from registered direct offering, net of offering expenses | 15,800,000 | 22,300,000 | ||||
Consultants [Member] | ||||||
Stock issued during period for services | 243,650 | |||||
Stock issued during period value for services | 2,377,907 | |||||
Consultants [Member] | Research and Development Expenses [Member] | ||||||
Stock issued during period value for services | 807,600 | |||||
Consultants [Member] | General and Administrative Expenses [Member] | ||||||
Stock issued during period value for services | $1,570,307 |
Fair_Value_Fair_Value_Liabilit
Fair Value - Fair Value, Liabilities Measured on Recurring Basis (Details) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
Common stock warrant liability, warrants exercisable | $327,567 | $32,091 |
Fair Value, Inputs, Level 1 [Member] | ||
Common stock warrant liability, warrants exercisable | ||
Fair Value, Inputs, Level 2 [Member] | ||
Common stock warrant liability, warrants exercisable | ||
Fair Value, Inputs, Level 3 [Member] | ||
Common stock warrant liability, warrants exercisable | $327,567 | $32,091 |
Fair_Value_Fair_Value_Liabilit1
Fair Value - Fair Value, Liabilities Measured on Recurring Basis (Details) (Parenthetical) (USD $) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Oct. 31, 2014 | |
Exercise Price | $5.12 | $5.42 |
Warrants exercisable period | May 2015 through August 2017 | November 2014 through August 2017 |
Minimum [Member] | ||
Exercise Price | $5.63 | $2.76 |
Maximum [Member] | ||
Exercise Price | $18.75 | $21.25 |
Fair_Value_Instruments_Classif
Fair Value - Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation (Details) (Common Stock Warrant Liability [Member], USD $) | 6 Months Ended |
Apr. 30, 2015 | |
Common Stock Warrant Liability [Member] | |
Beginning balance | $32,091 |
Issuance of additional warrants due to anti-dilution provisions | 8,169 |
Change in fair value | 287,307 |
Ending Balance | $327,567 |
Subsequent_Events_Details_Narr
Subsequent Events (Details Narrative) (USD $) | 0 Months Ended | 6 Months Ended | 0 Months Ended | |||||||||||||||
Feb. 19, 2015 | Dec. 22, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Jun. 08, 2015 | Jun. 09, 2015 | Jun. 10, 2015 | Jun. 05, 2015 | Jun. 03, 2015 | 5-May-15 | 29-May-15 | Jun. 03, 2015 | 26-May-15 | 20-May-15 | 21-May-15 | 12-May-15 | 8-May-15 | 11-May-15 | |
sqft | Patient | |||||||||||||||||
Proceeds from registered direct offering, net of offering expenses | $22,300,000 | $15,800,000 | ||||||||||||||||
Stock option granted, shares | 400,798 | 36,000 | ||||||||||||||||
Cashless exercise of warrants | 120,634 | |||||||||||||||||
Number of patients | 110 | |||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||
Number of shares priced registered direct offering common stock | 2,800,000 | |||||||||||||||||
Common stock price per share | $19 | |||||||||||||||||
Gross proceeds from registered direct offering | 53,200,000 | |||||||||||||||||
Proceeds from registered direct offering, net of offering expenses | 340,000 | |||||||||||||||||
Number of shares issued as per employment agreements | 8,870 | |||||||||||||||||
Number of patients | 30 | |||||||||||||||||
Shares issued during period | 22,500 | |||||||||||||||||
Issuance of common stock shares of warrant exercises | 151,400 | 84,580 | 108,543 | 50,000 | ||||||||||||||
Subsequent Event [Member] | Management [Member] | Employment Agreement [Member] | ||||||||||||||||||
Number of shares issued as per employment agreements | 584 | |||||||||||||||||
Stock option granted, shares | 4,257 | |||||||||||||||||
Subsequent Event [Member] | Accredited Investor [Member] | ||||||||||||||||||
Number of shares priced registered direct offering common stock | 420,000 | |||||||||||||||||
Common stock price per share | $19 | |||||||||||||||||
Gross proceeds from registered direct offering | $8,000,000 | |||||||||||||||||
Common stock issued for services | 10,000 | 689 | 58,126 | |||||||||||||||
Number of shares issued during period | 21,387 | 116,411 | 9,438 | 427 | ||||||||||||||
Cashless exercise of warrants | 58,400 | 153,061 | 25,000 | 17,545 | ||||||||||||||
Subsequent Event [Member] | Executive Officers [Member] | ||||||||||||||||||
Number of shares issued as per employment agreements | 21,250 |