Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 30, 2018 | Jun. 04, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | Advaxis, Inc. | |
Entity Central Index Key | 1,100,397 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 52,621,490 | |
Trading Symbol | ADXS | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Apr. 30, 2018 | Oct. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 48,876,630 | $ 23,899,809 |
Restricted cash | 977,000 | 587,000 |
Short-term investment securities | 8,988,858 | 46,398,304 |
Income tax receivable | 4,452,682 | |
Deferred expenses | 2,867,882 | 2,986,385 |
Prepaid expenses and other current assets | 3,765,872 | 2,918,644 |
Total current assets | 65,476,242 | 81,242,824 |
Property and equipment (net of accumulated depreciation) | 7,748,273 | 7,111,081 |
Intangible assets (net of accumulated amortization) | 5,352,487 | 4,856,775 |
Other assets | 592,598 | 431,098 |
Total assets | 79,169,600 | 93,641,778 |
Current liabilities: | ||
Accounts payable | 7,408,687 | 5,121,406 |
Accrued expenses | 4,236,983 | 8,700,036 |
Deferred revenue | 7,163,628 | 6,995,336 |
Other current liabilities | 47,520 | 47,520 |
Total current liabilities | 18,856,818 | 20,864,298 |
Deferred revenue | 13,758,091 | 17,478,758 |
Other liabilities | 1,099,373 | 1,038,555 |
Total liabilities | 33,714,282 | 39,381,611 |
Commitments and contingencies - Note 9 | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; Series B Preferred Stock; 0 shares issued and outstanding at April 30, 2018 and October 31, 2017. Liquidation preference of $0 at April 30, 2018 and October 31, 2017. | ||
Common stock - $0.001 par value; 95,000,000 shares authorized, 52,561,996 and 41,206,538 shares issued and outstanding at April 30, 2018 and October 31, 2017. | 52,563 | 41,207 |
Additional paid-in capital | 380,444,520 | 355,361,187 |
Accumulated deficit | (335,041,765) | (301,142,227) |
Total stockholders' equity | 45,455,318 | 54,260,167 |
Total liabilities and stockholders' equity | $ 79,169,600 | $ 93,641,778 |
Condensed Balance Sheets (Unau3
Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Apr. 30, 2018 | Oct. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Series B Preferred stock, shares issued | 0 | 0 |
Series B Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, liquidation preference value | $ 0 | $ 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 95,000,000 | 95,000,000 |
Common stock, shares issued | 52,561,996 | 41,206,538 |
Common stock, shares outstanding | 52,561,996 | 41,206,538 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,747,480 | $ 3,425,380 | $ 3,803,107 | $ 7,216,222 |
Operating expenses: | ||||
Research and development expenses | 10,832,692 | 16,306,860 | 27,902,958 | 29,955,414 |
General and administrative expenses | 4,467,142 | 7,778,228 | 9,999,974 | 15,106,037 |
Total operating expenses | 15,299,834 | 24,085,088 | 36,902,932 | 45,061,451 |
Loss from operations | (13,552,354) | (20,659,708) | (34,099,825) | (37,845,229) |
Other income (expense): | ||||
Interest income, net | 150,995 | 184,747 | 290,517 | 329,761 |
Net changes in fair value of derivative liabilities | 10,652 | 20,156 | ||
Other expense | (5,713) | (3,346) | (40,230) | (3,346) |
Net loss before benefit for income taxes | (13,407,072) | (20,467,655) | (33,849,538) | (37,498,658) |
Income tax expense | 50,000 | 50,000 | ||
Net loss | $ (13,407,072) | $ (20,467,655) | $ (33,899,538) | $ (37,548,658) |
Net loss per common share, basic and diluted | $ (0.27) | $ (0.51) | $ (0.74) | $ (0.93) |
Weighted average number of common shares outstanding, basic and diluted | 49,864,795 | 40,295,941 | 45,576,580 | 40,204,062 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net loss | $ (33,899,538) | $ (37,548,658) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock compensation | 4,033,726 | 10,324,150 |
Gain on change in value of warrants and embedded derivative | (20,156) | |
Loss on disposal of property and equipment | 27,361 | 3,187 |
Write-off of intangible assets | 305,004 | 89,881 |
Depreciation expense | 543,806 | 337,403 |
Amortization expense of intangible assets | 188,809 | 152,155 |
Net amortization (accretion) of premiums and discounts | (4,380) | 99,523 |
Change in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (603,725) | (5,719,085) |
Income tax receivable | 4,452,682 | 2,549,862 |
Other assets | (161,500) | 97,520 |
Accounts payable and accrued expenses | (2,187,479) | 2,818,357 |
Deferred revenue | (3,552,375) | (6,966,222) |
Other liabilities | 60,818 | 94,231 |
Net cash used in operating activities | (30,796,791) | (33,687,852) |
INVESTING ACTIVITIES | ||
Restricted cash established with letter of credit agreements | (390,000) | |
Purchases of short-term investment securities | (12,487,174) | (67,215,523) |
Sales of short-term investment securities | 49,901,000 | 21,152,333 |
Purchase of property and equipment | (1,276,652) | (2,342,515) |
Cost of intangible assets | (989,525) | (607,184) |
Net cash provided by (used in) investing activities | 34,757,649 | (49,012,889) |
FINANCING ACTIVITIES | ||
Net proceeds of issuance of common stock | 21,041,820 | |
Proceeds from employee stock purchase plan | 9,482 | 135,202 |
Tax withholdings paid related to net share settlement of equity awards | (40,438) | (264,986) |
Employee tax withholdings paid on equity awards | (269,407) | (523,513) |
Tax shares sold to pay for employee tax withholdings on equity awards | 274,506 | 627,121 |
Net cash provided by (used in) financing activities | 21,015,963 | (26,176) |
Net increase (decrease) in cash and cash equivalents | 24,976,821 | (82,726,917) |
Cash and cash equivalents at beginning of period | 23,899,809 | 112,750,980 |
Cash and cash equivalents at end of period | 48,876,630 | 30,024,063 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for taxes | 50,000 | 50,000 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH AND FINANCING ACTIVITIES | ||
Accounts payable and accrued expenses settled with common stock | 75,000 | |
Property and equipment included in accounts payable and accrued expenses | $ 56,707 | $ 175,062 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Apr. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | 1. NATURE OF OPERATIONS Advaxis, Inc. (“Advaxis” or the “Company”) is a late-stage biotechnology company focused on the discovery, development and commercialization of proprietary Listeria monocytogenes Lm Lm Lm Lm ● Awakening the immune system by activating multiple pathways in Antigen-presenting cells (“APCs”) with the equivalent of multiple adjuvants; ● Attacking the tumor by generating a strong, cancer-specific T cell response; and ● Breaking down tumor protection through suppression of the protective cells in the Tumor Microenvironment (“TME”) that shields the tumor from the immune system. This enables the activated T cells to begin working to eliminate the tumor. Advaxis’ proprietary Lm Lm Liquidity and Financial Condition The Company’s products that are being developed have not generated significant revenue. As a result, the Company has suffered recurring losses and requires significant cash resources to execute its business plans. These losses are expected to continue for an extended period of time. Our major sources of cash have been proceeds from various public and private offerings of our common stock, option and warrant exercises, and interest income. From October 2013 through May 2018, we raised approximately $245.2 million in gross proceeds from various public and private offerings of our common stock. As of April 30, 2018, the Company had approximately $58.8 million in cash, restricted cash, cash equivalents and short-term investment securities on its balance sheet and working capital of $46.6 million. The Company has completed a thorough analysis of operating expenses, as well as research and development (“R&D”) programs. Accordingly, Management’s plans to mitigate such shortfall of cash flows include the approval of a work force reduction effective June 7, 2018, and also cost reductions regarding select ongoing programs for clinical trials. Based upon these actions, we believe our current working capital position as of April 30, 2018 and cash flows expected to be generated from future operations is sufficient to enable the Company to meet its obligations as they become due in the ordinary course of business for a period of at least one year from the issuance of these financial statements. Had these actions not been taken, the Company’s future cash flows may not have been sufficient for the Company to meet its obligations as they become due. The actual amount of cash that we will need to operate is subject to many factors, and the Company has the ability to further reduce other variable costs if needed. Should further financing be needed, the Company could access additional capital through the equity capital or debt markets although no assurance can be provided that the Company would be successful in any capital raising efforts. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 6 Months Ended |
Apr. 30, 2018 | |
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/Estimates 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 (“U.S. GAAP”) for interim financial information, and in accordance with the rules and regulations of the SEC with respect to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and the accompanying unaudited condensed balance sheet as of October 31, 2017 has been derived from the Company’s October 31, 2017 audited financial statements. In the opinion of management, the unaudited interim condensed financial statements furnished include all adjustments (consisting of normal recurring accruals) necessary for a fair statement of the results for the interim periods presented. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. Operating results for interim periods are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Significant estimates include the timelines associated with revenue recognition on upfront payments received, the fair value and recoverability of the carrying value of property and equipment and intangible assets, the grant date fair value of options, deferred tax assets and any related valuation allowance 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 could materially differ from these estimates. These unaudited interim condensed financial statements should be read in conjunction with the financial statements of the Company for the year ended October 31, 2017 and notes thereto contained in the Company’s annual report on Form 10-K for the year ended October 31, 2017, as filed with the SEC on December 21, 2017. Concentration of Credit Risk Financial instruments which potentially subject the Company to concentration of credit risk, consist principally of cash and cash equivalents. All the Company’s cash and cash equivalents are deposited in accounts with financial institutions that management believes are of high credit quality and at times exceed the federally insured limits. The Company had not experienced losses in such accounts and believes it is not exposed to any significant credit risk. Restricted Cash and Letters of Credit During July 2017 and January 2018, the Company established two letters of credit with a financial institution as security for the purchase of custom equipment and as security for application fees associated with the Company’s Marketing Authorization Application (“MAA”) in Europe. The letters of credit are collateralized by cash which is unavailable for withdrawal or for usage for general obligations. No amount is outstanding under either letter of credit as of April 30, 2018. Net Income (Loss) per Share Basic net income or loss per common share is computed by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share give effect to dilutive options, warrants, restricted stock units 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, 2018 2017 Warrants 3,092,395 3,110,575 Stock Options 4,643,012 3,893,558 Restricted Stock Units 1,089,475 1,146,435 Total 8,824,882 8,150,568 Recent Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”); ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”); ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”); and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20”). The Company must adopt ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 with ASU 2014-09 (collectively, the “new revenue standards”). The new revenue standards may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We are currently evaluating which transition approach we will utilize and the impact of adopting this accounting standard on our unaudited condensed financial statements. This update will be effective for the Company beginning in the first quarter of fiscal 2019. In February 2016, the FASB issued ASU 2016-02, “Leases (“Topic 842”) (“ASU 2016-02”). The standard amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will be effective beginning in the first quarter of fiscal 2020. Early adoption of ASU 2016-02 is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting ASU 2016-02 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. |
Short-Term Investment Securitie
Short-Term Investment Securities | 6 Months Ended |
Apr. 30, 2018 | |
Schedule of Investments [Abstract] | |
Short-Term Investment Securities | 3. SHORT-TERM INVESTMENT SECURITIES The following table summarizes the Company’s investment securities at amortized cost as of April 30, 2018 and October 31, 2017: April 30, 2018 Amortized cost, as adjusted Gross unrealized holding gains Gross unrealized holding losses Estimated fair value Short-term investments: Certificates of Deposit $ 490,000 $ - $ - $ 490,000 U.S Treasury Notes 8,498,858 - 4,268 8,494,590 Total short-term investment securities $ 8,988,858 $ - $ 4,268 $ 8,984,590 October 31, 2017 Amortized cost, as adjusted Gross unrealized holding gains Gross unrealized holding losses Estimated fair value Short-term investments: Certificates of Deposit $ 11,391,147 $ - $ - $ 11,391,147 Domestic Governmental Agency Loans 499,957 - 162 499,795 U.S Treasury Notes 34,507,200 - 25,351 34,481,849 Total short-term investment securities $ 46,398,304 $ - $ 25,513 $ 46,372,791 All the Company’s short-term investment securities mature within the next 12 months. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Apr. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 4. PROPERTY AND EQUIPMENT Property and equipment, net consists of the following: April 30, 2018 October 31, 2017 Leasehold improvements $ 2,254,727 $ 2,167,990 Laboratory equipment 5,411,376 4,143,106 Furniture and fixtures 745,804 728,725 Computer equipment 394,523 394,523 Construction in progress 692,234 883,322 Total property and equipment 9,498,664 8,317,666 Accumulated depreciation and amortization (1,750,391 ) (1,206,585 ) Net property and equipment $ 7,748,273 $ 7,111,081 Depreciation expense for the three and six months ended April 30, 2018 and 2017 was $278,817, $543,806, $179,823 and $337,403, respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Apr. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5. INTANGIBLE ASSETS Intangible assets, net consist of the following: April 30, 2018 October 31, 2017 Patents $ 6,337,436 $ 5,727,298 Licenses 776,992 776,992 Software 117,196 108,604 Total intangibles 7,231,624 6,612,894 Accumulated amortization (1,879,137 ) (1,756,119 ) Intangible assets $ 5,352,487 $ 4,856,775 The expirations of the existing patents range from 2018 to 2038 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. Patent applications having a net book value of $161,889, $305,004, $89,881 and $89,881 were abandoned and were charged to research and development expenses in the Statement of Operations for the three and six months ended April 30, 2018 and 2017, respectively. Amortization expense for intangible assets aggregated $96,284, $188,809, $77,745 and $152,155 for the three and six months ended April 30, 2018 and 2017, respectively. At April 30, 2018, the estimated amortization expense by fiscal year based on the current carrying value of intangible assets is as follows: Year ended October 31, 2018 (Remaining) $ 196,506 2019 390,610 2020 373,755 2021 353,945 2022 353,945 Thereafter 3,683,726 Total $ 5,352,487 |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Apr. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 6. ACCRUED EXPENSES: The following table represents the major components of accrued expenses: April 30, 2018 October 31, 2017 Salaries and other compensation $ 2,382,100 $ 2,652,583 Vendors 1,017,033 2,811,956 Professional fees 837,850 3,235,497 Total accrued expenses $ 4,236,983 $ 8,700,036 |
Warrants
Warrants | 6 Months Ended |
Apr. 30, 2018 | |
Warrants | |
Warrants | 7. WARRANTS At April 30, 2018 and October 31, 2017, the Company had 3,092,395 warrants outstanding at a weighted average exercise price of $5.00 and a weighted average remaining contractual life of 0.42 and 0.92 years, respectively. At April 30, 2018 and October 31, 2017, all of the Company’s outstanding warrants were classified as equity (equity warrants). At issuance, equity warrants are recorded at their relative fair values, using the relative fair value method, in the stockholders’ equity section of the balance sheet. The Company’s equity warrants can only be settled through the issuance of shares and are not subject to anti-dilution provisions. |
Share Based Compensation
Share Based Compensation | 6 Months Ended |
Apr. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Based Compensation | 8. SHARE BASED COMPENSATION The following table summarizes share-based compensation expense included in the Statement of Operations: Three Months Ended April 30, Six Months Ended April 30, 2018 2017 2018 2017 Research and development $ 525,822 $ 1,531,005 $ 1,798,818 $ 2,753,488 General and administrative 698,787 3,682,720 2,234,908 7,570,662 Total $ 1,224,609 $ 5,213,725 $ 4,033,726 $ 10,324,150 Restricted Stock Units (RSUs) A summary of the Company’s RSU activity and related information for the six months ended April 30, 2018 is as follows: Number of RSUs Weighted-Average Grant Date Fair Value Balance at October 31, 2017 1,363,119 $ 8.54 Granted 335,424 3.22 Vested (461,111 ) 8.27 Cancelled (147,957 ) 9.98 Balance at April 30, 2018 1,089,475 $ 6.82 As of April 30, 2018, there was approximately $6,061,000 of unrecognized compensation cost related to non-vested RSUs, which is expected to be recognized over a remaining weighted average vesting period of approximately 1.85 years. As of April 30, 2018, the aggregate intrinsic value of non-vested RSUs was approximately $1,743,160. Employee Stock Awards Common Stock issued to executives and employees related to vested incentive retention awards, employment inducements, management purchases and employee excellence awards totaled 256,610 shares (208,094 shares on a net basis after employee taxes) and 159,544 shares (129,728 shares on a net basis after employee taxes) during the three months ended April 30, 2018 and 2017 respectively. Total stock compensation expense associated with employee awards for the three months ended April 30, 2018 and 2017 was $619,740 and $1,712,297, respectively Common Stock issued to executives and employees related to vested incentive retention awards, employment inducements, management purchases and employee excellence awards totaled 453,777 shares (403,140 shares on a net basis after employee taxes) and 253,520 shares (222,459 shares on a net basis after employee taxes) during the six months ended April 30, 2018 and 2017 respectively. Total stock compensation expense associated with employee awards for the six months ended April 30, 2018 and 2017 was $1,973,925 and $3,068,936, respectively. Included in compensation expense for the three and six months ended April 30, 2018 is $210,146 recognized as a result of the modification of certain RSU’s associated with the resignation of the Company’s Chief Financial Officer in April 2018. Pursuant to the separation agreement, the vesting was accelerated on all the outstanding RSU’s. Director Stock Awards Common stock issued to Directors for compensation related to board and committee membership totaled 30,000 shares for each of the three months ended April 30, 2018 and 2017, respectively. During the three months ended April 30, 2018 and 2017, total stock compensation expense associated with Director awards was $5,616 and $98,315, respectively. Common stock issued to Directors for compensation related to board and committee membership totaled 30,000 shares for each of the six months ended April 30, 2018 and 2017, respectively. During the six months ended April 30, 2018 and 2017, total stock compensation expense associated with Director awards was $107,244 and $199,943, respectively. Included in compensation expense for the three and six months ended April 30, 2018 is $9,850 recognized as a result of the modification of certain RSU’s associated with a Board member that decided not to run for re-election in March 2018. The vesting was accelerated on all the outstanding RSU’s. Stock Options A summary of changes in the stock option plan for the six months ended April 30, 2018 is as follows: Number of Options Weighted-Average Exercise Price Outstanding at October 31, 2017: 3,893,558 $ 12.51 Granted 1,764,185 2.26 Canceled or Expired (1,014,731 ) 11.07 Outstanding at April 30, 2018 4,643,012 8.93 Vested and Exercisable at April 30, 2018 2,823,762 $ 12.58 Total compensation cost related to the Company’s outstanding stock options, recognized in the statement of operations for the three months ended April 30, 2018 and 2017 was $599,254 and $3,006,763, respectively. For the six months ended April 30, 2018 and 2017, compensation cost related to the Company’s outstanding stock options was $1,997,558 and $6,190,221, respectively. Included in compensation expense for the three and six months ended April 30, 2018 is $76,784 recognized as a result of the modification of certain option agreements associated with two Board members that decided not to run for re-election in March 2018. For the modified options, the vesting was accelerated and the expiration dates were changed to the earlier of the original expiration date or March 21, 2023. During the six months ended April 30, 2018, 1,764,185 options were granted with a total grant date fair value of $3,122,924. During the six months ended April 30, 2017, 556,952 options were granted with a total grant date fair value of $3,542,215. As of April 30, 2018, there was approximately $3,634,000 of unrecognized compensation cost related to non-vested stock option awards, which is expected to be recognized over a remaining weighted average vesting period of approximately 2.07 years. As of April 30, 2018, the aggregate intrinsic value of vested and exercisable options was $0. In determining the fair value of the stock options granted during the six months ended April 30, 2018 and 2017, the Company used the following inputs in its BSM: Six Months Ended April 30, 2018 2017 Expected Term 5.35 – 6.51 years 5.50-6.50 years Expected Volatility 95.11 – 100.34 % 107.07-110.93 % Expected Dividends 0 % 0 % Risk Free Interest Rate 1.81 – 2.66 % 1.26-1.58 % 2018 Employee Stock Purchase Plan During the six months ended April 30, 2018, the Company issued 10,681 shares that were purchased in fiscal 2017 under the 2011 Employee Stock Purchase Plan (“ESPP”). The Advaxis, Inc. 2018 ESPP was approved by the Company’s shareholders on March 21, 2018. The ESPP allows eligible employees to purchase shares of our common stock at a 15% discount to the closing market price on designated exercise dates. 1,000,000 shares of the Company common stock are reserved for issuance under the ESPP. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Apr. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. COMMITMENTS AND CONTINGENCIES Legal Proceedings Bono On August 20, 2015, a derivative complaint was filed by a purported Company stockholder in the United States District Court for the District of New Jersey styled David Bono v. O’Connor, et al., Case No. 3:15-CV-006326-FLW-DEA (D.N.J. Aug. 20, 2015) (the “Bono Action”). The complaint was based on general allegations related to certain stock options granted to the individual defendants and generally alleged counts for breaches of fiduciary duty and unjust enrichment. The complaint also alleged additional claims for violation of Section 14(a) of the Securities Exchange Act of 1934 and for waste of corporate assets. The complaint sought damages and costs of an unspecified amount, disgorgement of compensation obtained by the individual defendants, and injunctive relief. Defendants filed a motion to dismiss the Bono Action. On May 23, 2016, the Court issued an opinion and order granting in part and denying in part defendants’ motion to dismiss. On October 5, 2016, the Court denied plaintiff’s motion for reconsideration of its May 23 order. On April 13, 2017, the parties advised the Court that they had reached a tentative agreement in principle to settle the action, subject to negotiating an award of attorneys’ fees and expenses to plaintiff’s counsel and a stipulation of settlement, and, ultimately, Court approval. The parties subsequently executed the stipulation of settlement on October 2, 2017. The Court entered an order preliminarily approving the settlement on November 7, 2017. The final fairness hearing was held January 29, 2018, and the Order and Final Judgment approving the settlement and dismissing the action with prejudice was entered on January 29, 2018. This matter is now concluded. Corporate Office & Manufacturing Facility Lease The Company leases its corporate office and manufacturing facility under an operating lease expiring in November 2025. Future minimum payments under the Company’s operating leases are as follows: Year ended October 31, 2018 (remaining) $ 523,676 2019 1,107,385 2020 1,232,907 2021 1,317,640 2022 1,368,819 Thereafter 4,378,521 Total $ 9,928,948 |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. INCOME TAXES On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly revises U.S. corporate income taxation by, among other things, lowering the U.S. corporate income tax rate from 35.0 % to 21.0% effective January 1, 2018. The decrease in the U.S. federal corporate tax rate from 35.0% to 21.0% will result in a blended statutory tax rate of 23.2% for the fiscal year ending October 31, 2018. The Company does not anticipate any impact to tax expense due to the full valuation allowance of the Company and believes that the most significant impact on its financial statements will be reduction of approximately $32.7 million for the deferred tax assets related to net operating losses and other assets. Such reduction is offset by changes to the Company’s valuation allowance. In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin 118, which allows a measurement period, not to exceed one year, to finalize the accounting for the income tax impacts of the Tax Act. Until the accounting for the income tax impacts of the Tax Act is complete, the reported amounts are based on reasonable estimates, are disclosed as provisional and reflect any adjustments in subsequent periods as they refine their estimates or complete their accounting of such tax effects. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Apr. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | 11. STOCKHOLDERS’ EQUITY During the six months ended January 31, 2018, the Company sold 881,629 shares of its Common Stock at-the-market transactions resulting in net proceeds of approximately $2,659,000. During February 2018, the Company issued 10,000,000 shares of the Company’s common stock in a public offering at $2.00 per share, less underwriting discounts and commissions. The net proceeds to the Company from the transaction was approximately $18,383,000. On March 21, 2018, the Company’s shareholders approved an amendment to the Company’s Amended and Restated Certificate of Incorporation to increase our authorized shares of common stock by 30,000,000 to 95,000,000. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Apr. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. SUBSEQUENT EVENTS Following the close of the second quarter, the Company is announcing a work force reduction effective June 7, 2018. As part of this plan, the Company will reduce employee headcount by approximately 24% as of this date. The Company intends to pay separation payments which will reflect both employee salary and healthcare coverage. Charges related to work force reduction are estimated to be approximately $905,000 which will be reflected in the third quarter results of operations. On June 6, 2018 the Company announced that Molly Henderson joined the Company as Chief Financial Officer effective as of June 6, 2018. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 6 Months Ended |
Apr. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation/Estimates | Basis of Presentation/Estimates 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 (“U.S. GAAP”) for interim financial information, and in accordance with the rules and regulations of the SEC with respect to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and the accompanying unaudited condensed balance sheet as of October 31, 2017 has been derived from the Company’s October 31, 2017 audited financial statements. In the opinion of management, the unaudited interim condensed financial statements furnished include all adjustments (consisting of normal recurring accruals) necessary for a fair statement of the results for the interim periods presented. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. Operating results for interim periods are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Significant estimates include the timelines associated with revenue recognition on upfront payments received, the fair value and recoverability of the carrying value of property and equipment and intangible assets, the grant date fair value of options, deferred tax assets and any related valuation allowance 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 could materially differ from these estimates. These unaudited interim condensed financial statements should be read in conjunction with the financial statements of the Company for the year ended October 31, 2017 and notes thereto contained in the Company’s annual report on Form 10-K for the year ended October 31, 2017, as filed with the SEC on December 21, 2017. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially subject the Company to concentration of credit risk, consist principally of cash and cash equivalents. All the Company’s cash and cash equivalents are deposited in accounts with financial institutions that management believes are of high credit quality and at times exceed the federally insured limits. The Company had not experienced losses in such accounts and believes it is not exposed to any significant credit risk. |
Restricted Cash and Letters of Credit | Restricted Cash and Letters of Credit During July 2017 and January 2018, the Company established two letters of credit with a financial institution as security for the purchase of custom equipment and as security for application fees associated with the Company’s Marketing Authorization Application (“MAA”) in Europe. The letters of credit are collateralized by cash which is unavailable for withdrawal or for usage for general obligations. No amount is outstanding under either letter of credit as of April 30, 2018. |
Net Income (Loss) Per Share | Net Income (Loss) per Share Basic net income or loss per common share is computed by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share give effect to dilutive options, warrants, restricted stock units 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, 2018 2017 Warrants 3,092,395 3,110,575 Stock Options 4,643,012 3,893,558 Restricted Stock Units 1,089,475 1,146,435 Total 8,824,882 8,150,568 |
Recent Accounting Standards | Recent Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”); ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”); ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”); and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20”). The Company must adopt ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 with ASU 2014-09 (collectively, the “new revenue standards”). The new revenue standards may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We are currently evaluating which transition approach we will utilize and the impact of adopting this accounting standard on our unaudited condensed financial statements. This update will be effective for the Company beginning in the first quarter of fiscal 2019. In February 2016, the FASB issued ASU 2016-02, “Leases (“Topic 842”) (“ASU 2016-02”). The standard amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will be effective beginning in the first quarter of fiscal 2020. Early adoption of ASU 2016-02 is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting ASU 2016-02 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 Accoun19
Summary of Significant Accounting Policies and Basis of Presentation (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Common Stock Excluded from 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, 2018 2017 Warrants 3,092,395 3,110,575 Stock Options 4,643,012 3,893,558 Restricted Stock Units 1,089,475 1,146,435 Total 8,824,882 8,150,568 |
Short-Term Investment Securit20
Short-Term Investment Securities (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Schedule of Investments [Abstract] | |
Schedule of Investment Securities at Amortized | The following table summarizes the Company’s investment securities at amortized cost as of April 30, 2018 and October 31, 2017: April 30, 2018 Amortized cost, as adjusted Gross unrealized holding gains Gross unrealized holding losses Estimated fair value Short-term investments: Certificates of Deposit $ 490,000 $ - $ - $ 490,000 U.S Treasury Notes 8,498,858 - 4,268 8,494,590 Total short-term investment securities $ 8,988,858 $ - $ 4,268 $ 8,984,590 October 31, 2017 Amortized cost, as adjusted Gross unrealized holding gains Gross unrealized holding losses Estimated fair value Short-term investments: Certificates of Deposit $ 11,391,147 $ - $ - $ 11,391,147 Domestic Governmental Agency Loans 499,957 - 162 499,795 U.S Treasury Notes 34,507,200 - 25,351 34,481,849 Total short-term investment securities $ 46,398,304 $ - $ 25,513 $ 46,372,791 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consists of the following: April 30, 2018 October 31, 2017 Leasehold improvements $ 2,254,727 $ 2,167,990 Laboratory equipment 5,411,376 4,143,106 Furniture and fixtures 745,804 728,725 Computer equipment 394,523 394,523 Construction in progress 692,234 883,322 Total property and equipment 9,498,664 8,317,666 Accumulated depreciation and amortization (1,750,391 ) (1,206,585 ) Net property and equipment $ 7,748,273 $ 7,111,081 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets, net consist of the following: April 30, 2018 October 31, 2017 Patents $ 6,337,436 $ 5,727,298 Licenses 776,992 776,992 Software 117,196 108,604 Total intangibles 7,231,624 6,612,894 Accumulated amortization (1,879,137 ) (1,756,119 ) Intangible assets $ 5,352,487 $ 4,856,775 |
Schedule of Amortization Expense | At April 30, 2018, the estimated amortization expense by fiscal year based on the current carrying value of intangible assets is as follows: Year ended October 31, 2018 (Remaining) $ 196,506 2019 390,610 2020 373,755 2021 353,945 2022 353,945 Thereafter 3,683,726 Total $ 5,352,487 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | The following table represents the major components of accrued expenses: April 30, 2018 October 31, 2017 Salaries and other compensation $ 2,382,100 $ 2,652,583 Vendors 1,017,033 2,811,956 Professional fees 837,850 3,235,497 Total accrued expenses $ 4,236,983 $ 8,700,036 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Share-based Compensation Expense | The following table summarizes share-based compensation expense included in the Statement of Operations: Three Months Ended April 30, Six Months Ended April 30, 2018 2017 2018 2017 Research and development $ 525,822 $ 1,531,005 $ 1,798,818 $ 2,753,488 General and administrative 698,787 3,682,720 2,234,908 7,570,662 Total $ 1,224,609 $ 5,213,725 $ 4,033,726 $ 10,324,150 |
Summary of RSU Activity and Related Information | A summary of the Company’s RSU activity and related information for the six months ended April 30, 2018 is as follows: Number of RSUs Weighted-Average Grant Date Fair Value Balance at October 31, 2017 1,363,119 $ 8.54 Granted 335,424 3.22 Vested (461,111 ) 8.27 Cancelled (147,957 ) 9.98 Balance at April 30, 2018 1,089,475 $ 6.82 |
Summary of Changes in Stock Option Plan | A summary of changes in the stock option plan for the six months ended April 30, 2018 is as follows: Number of Options Weighted-Average Exercise Price Outstanding at October 31, 2017: 3,893,558 $ 12.51 Granted 1,764,185 2.26 Canceled or Expired (1,014,731 ) 11.07 Outstanding at April 30, 2018 4,643,012 8.93 Vested and Exercisable at April 30, 2018 2,823,762 $ 12.58 |
Summary of Fair Value of Stock Options Granted of BSM | In determining the fair value of the stock options granted during the six months ended April 30, 2018 and 2017, the Company used the following inputs in its BSM: Six Months Ended April 30, 2018 2017 Expected Term 5.35 – 6.51 years 5.50-6.50 years Expected Volatility 95.11 – 100.34 % 107.07-110.93 % Expected Dividends 0 % 0 % Risk Free Interest Rate 1.81 – 2.66 % 1.26-1.58 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Payments of Operating Leases | Future minimum payments under the Company’s operating leases are as follows: Year ended October 31, 2018 (remaining) $ 523,676 2019 1,107,385 2020 1,232,907 2021 1,317,640 2022 1,368,819 Thereafter 4,378,521 Total $ 9,928,948 |
Nature of Operations (Details N
Nature of Operations (Details Narrative) | 6 Months Ended |
Apr. 30, 2018USD ($) | |
Cash, restricted cash, cash equivalents and investments | $ 58,800,000 |
Working capital | 46,600,000 |
October 2013 Through May 2018 [Member] | |
Proceeds from public offering | $ 245,200,000 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies and Basis of Presentation - Schedule of Common Stock Excluded from Diluted Net Loss Per Share (Details) - shares | 6 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Number of common stock excluded from diluted net loss per share | 8,824,882 | 8,150,568 |
Warrants [Member] | ||
Number of common stock excluded from diluted net loss per share | 3,092,395 | 3,110,575 |
Stock Options [Member] | ||
Number of common stock excluded from diluted net loss per share | 4,643,012 | 3,893,558 |
Restricted Stock Units [Member] | ||
Number of common stock excluded from diluted net loss per share | 1,089,475 | 1,146,435 |
Short-Term Investment Securit28
Short-Term Investment Securities (Details Narrative) | 6 Months Ended |
Apr. 30, 2018 | |
Schedule of Investments [Abstract] | |
Investments maturity description | All the Companys short-term investment securities mature within the next 12 months. |
Short-Term Investment Securit29
Short-Term Investment Securities - Schedule of Investment Securities at Amortized (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2018 | Oct. 31, 2017 | |
Amortized cost, as adjusted | $ 8,988,858 | $ 46,398,304 |
Gross unrealized holding gains | ||
Gross unrealized holding losses | 4,268 | 25,513 |
Estimated fair value | 8,984,590 | 46,372,791 |
Certificates of Deposit [Member] | ||
Amortized cost, as adjusted | 490,000 | 11,391,147 |
Gross unrealized holding gains | ||
Gross unrealized holding losses | ||
Estimated fair value | 490,000 | 11,391,147 |
U.S Treasury Notes [Member] | ||
Amortized cost, as adjusted | 8,498,858 | 34,507,200 |
Gross unrealized holding gains | ||
Gross unrealized holding losses | 4,268 | 25,351 |
Estimated fair value | $ 8,494,590 | 34,481,849 |
Domestic Governmental Agency Loans [Member] | ||
Amortized cost, as adjusted | 499,957 | |
Gross unrealized holding gains | ||
Gross unrealized holding losses | 162 | |
Estimated fair value | $ 499,795 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 278,817 | $ 179,823 | $ 543,806 | $ 337,403 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Apr. 30, 2018 | Oct. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Leasehold improvements | $ 2,254,727 | $ 2,167,990 |
Laboratory equipment | 5,411,376 | 4,143,106 |
Furniture and fixtures | 745,804 | 728,725 |
Computer equipment | 394,523 | 394,523 |
Construction in progress | 692,234 | 883,322 |
Total property and equipment | 9,498,664 | 8,317,666 |
Accumulated depreciation and amortization | (1,750,391) | (1,206,585) |
Net property and equipment | $ 7,748,273 | $ 7,111,081 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Finite lived patents expirations year | The expirations of the existing patents range from 2018 to 2038 | |||
Book value patent applications, net | $ 161,889 | $ 89,881 | $ 305,004 | $ 89,881 |
Amortization expense of intangible assets | $ 96,284 | $ 77,745 | $ 188,809 | $ 152,155 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Details) - USD ($) | Apr. 30, 2018 | Oct. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Patents | $ 6,337,436 | $ 5,727,298 |
Licenses | 776,992 | 776,992 |
Software | 117,196 | 108,604 |
Total intangibles | 7,231,624 | 6,612,894 |
Accumulated amortization | (1,879,137) | (1,756,119) |
Intangible assets | $ 5,352,487 | $ 4,856,775 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Amortization Expense (Details) | Apr. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2018 (Remaining) | $ 196,506 |
2,019 | 390,610 |
2,020 | 373,755 |
2,021 | 353,945 |
2,022 | 353,945 |
Thereafter | 3,683,726 |
Total | $ 5,352,487 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) | Apr. 30, 2018 | Oct. 31, 2017 |
Payables and Accruals [Abstract] | ||
Salaries and other compensation | $ 2,382,100 | $ 2,652,583 |
Vendors | 1,017,033 | 2,811,956 |
Professional fees | 837,850 | 3,235,497 |
Total accrued expenses | $ 4,236,983 | $ 8,700,036 |
Warrants (Details Narrative)
Warrants (Details Narrative) - $ / shares | 6 Months Ended | 12 Months Ended |
Apr. 30, 2018 | Oct. 31, 2017 | |
Warrants outstanding | 3,092,395 | 3,092,395 |
Exercise price of warrants | $ 5 | $ 5 |
Warrants [Member] | ||
Weighted average remaining contractual life | 5 months 1 day | 11 months 1 day |
Share Based Compensation (Detai
Share Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Unrecognized compensation cost related to non-vested stock option awards | $ 3,634,000 | $ 3,634,000 | ||
Stock compensation expense | 599,254 | $ 3,006,763 | $ 1,997,558 | $ 6,190,221 |
Number of options, granted | 1,764,185 | 556,952 | ||
Fair value of option granted | $ 3,122,924 | $ 3,542,215 | ||
Weighted average vesting period | 2 years 26 days | |||
Aggregate intrinsic value of vested and exercisable | $ 0 | $ 0 | ||
2011 Employee Stock Purchase Plan [Member] | ||||
Number of shares issued under employee stock purchase plan' | 10,681 | |||
Common stock discount rate | 15.00% | |||
Number of stock reserved for issuance | 1,000,000 | 1,000,000 | ||
Two Board Members [Member] | ||||
Stock compensation expense | $ 76,784 | $ 76,784 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Unrecognized compensation cost related to non-vested stock option awards | 6,061,000 | $ 6,061,000 | ||
Unrecognized compensation cost related to non-vested remaining weighted average vesting period | 1 year 10 months 6 days | |||
Options outstanding, intrinsic value | 1,743,160 | $ 1,743,160 | ||
Number of options, granted | 335,424 | |||
Employee Stock Awards [Member] | ||||
Stock compensation expense | $ 210,146 | $ 210,146 | ||
Employee Stock Awards [Member] | Executives and Employees [Member] | ||||
Share-based compensation, common stock, shares | 256,610 | 159,544 | 453,777 | 253,520 |
Share-based compensation, shares on net basis after employee payroll taxes | 208,094 | 129,728 | 403,140 | 222,459 |
Stock compensation expense | $ 619,740 | $ 1,712,297 | $ 1,973,925 | $ 3,068,936 |
Director Stock Awards [Member] | ||||
Stock compensation expense | $ 9,850 | $ 9,850 | ||
Director Stock Awards [Member] | Directors [Member] | ||||
Share-based compensation, common stock, shares | 30,000 | 30,000 | 30,000 | 30,000 |
Stock compensation expense | $ 5,616 | $ 98,315 | $ 107,244 | $ 199,943 |
Share Based Compensation - Summ
Share Based Compensation - Summary of Share-based Compensation Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Share-based compensation expense | $ 1,224,609 | $ 5,213,725 | $ 4,033,726 | $ 10,324,150 |
Research and Development [Member] | ||||
Share-based compensation expense | 525,822 | 1,531,005 | 1,798,818 | 2,753,488 |
General and Administrative [Member] | ||||
Share-based compensation expense | $ 698,787 | $ 3,682,720 | $ 2,234,908 | $ 7,570,662 |
Share Based Compensation - Su39
Share Based Compensation - Summary of RSU Activity and Related Information (Details) - $ / shares | 6 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Number of RSUs Granted | 1,764,185 | 556,952 |
Number of RSUs Cancelled | (1,014,731) | |
Restricted Stock Units (RSUs) [Member] | ||
Number of RSUs Granted, Beginning Balance | 1,363,119 | |
Number of RSUs Granted | 335,424 | |
Number of RSUs Vested | (461,111) | |
Number of RSUs Cancelled | (147,957) | |
Number of RSUs Granted, Ending Balance | 1,089,475 | |
Weighted-Average Grant Date Fair Value, Outstanding, Beginning | $ 8.54 | |
Weighted-Average Grant Date Fair Value, Granted | 3.22 | |
Weighted-Average Grant Date Fair Value, Vested | 8.27 | |
Weighted-Average Grant Date Fair Value, Cancelled | 9.98 | |
Weighted-Average Grant Date Fair Value, Outstanding, Ending | $ 6.82 |
Share Based Compensation - Su40
Share Based Compensation - Summary of Changes in Stock Option Plan (Details) - $ / shares | 6 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Number of Options, Beginning Balance | 3,893,558 | |
Number of Options, Granted | 1,764,185 | 556,952 |
Number of Options, Canceled or Expired | (1,014,731) | |
Number of Options, Ending Balance | 4,643,012 | |
Number of Options, Vested and Exercisable | 2,823,762 | |
Weighted-Average Exercise Price, Outstanding, Beginning | $ 12.51 | |
Weighted-Average Exercise Price, Granted | 2.26 | |
Weighted-Average Exercise Price, Canceled or Expired | 11.07 | |
Weighted-Average Exercise Price, Outstanding, Ending | 8.93 | |
Weighted-Average Exercise Price, Vested and Exercisable | $ 12.58 |
Share Based Compensation - Su41
Share Based Compensation - Summary of Fair Value of Stock Options Granted of BSM (Details) | 6 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Expected Volatility, Minimum | 95.11% | 107.07% |
Expected Volatility, Maximum | 100.34% | 110.93% |
Expected Dividends | 0.00% | 0.00% |
Risk Free Interest Rate, Minimum | 1.81% | 1.26% |
Risk Free Interest Rate, Maximum | 2.66% | 1.58% |
Minimum [Member] | ||
Expected Term | 5 years 4 months 6 days | 5 years 6 months |
Maximum [Member] | ||
Expected Term | 6 years 6 months 3 days | 6 years 6 months |
Commitments and Contingencies42
Commitments and Contingencies (Details Narrative) | 6 Months Ended |
Apr. 30, 2018 | |
Corporate Office & Manufacturing Facility Lease [Member] | |
Agreement expiration date | Nov. 30, 2025 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Future Minimum Payments of Operating Leases (Details) | Oct. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2018 (remaining) | $ 523,676 |
2,019 | 1,107,385 |
2,020 | 1,232,907 |
2,021 | 1,317,640 |
2,022 | 1,368,819 |
Thereafter | 4,378,521 |
Total | $ 9,928,948 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | Dec. 22, 2017 | Apr. 30, 2018 |
Income tax reconciliation description | U.S. corporate income taxation by, among other things, lowering the U.S. corporate income tax rate from 35.0 % to 21.0% effective January 1, 2018. The decrease in the U.S. federal corporate tax rate from 35.0% to 21.0% will result in a blended statutory tax rate of 23.2% for the fiscal year ending October 31, 2018. | |
Income tax effective tax rate | 21.00% | |
Net operating loss carry-forward | $ 32,700,000 | |
October 31, 2018 [Member] | ||
Income tax effective tax rate | 21.00% | |
Statutory tax rate, percentage | 23.20% |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | |||
Feb. 28, 2018 | Jan. 31, 2018 | Apr. 30, 2018 | Mar. 21, 2018 | Oct. 31, 2017 | |
Number of common stock shares sold | 881,629 | ||||
Proceeds from sale of common shares | $ 2,659,000 | ||||
Common stock, shares authorized | 95,000,000 | 30,000,000 | 95,000,000 | ||
Underwriting Agreement [Member] | |||||
Number of common stock shares sold | 10,000,000 | ||||
Sale of stock price per share | $ 2 | ||||
Sale of stock transaction during period, value | $ 18,383,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - June 7, 2018 [Member] | 6 Months Ended |
Apr. 30, 2018USD ($) | |
Employee headcount reduction, percent | 24.00% |
Work force reduction charges estimated | $ 905,000 |