Anixa Biosciences (ANIX) 10-Q 16 Mar 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Jan. 31, 2017	Mar. 14, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	ITUS CORPORATION
Document Type	10-Q
Current Fiscal Year End Date	--10-31
Entity Common Stock, Shares Outstanding		8,758,050
Amendment Flag	false
Entity Central Index Key	715,446
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jan. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jan. 31, 2017	Oct. 31, 2016
Current assets:
Cash and cash equivalents	$ 1,399,954	$ 2,488,323
Short-term investments in certificates of deposit	600,000	750,000
Prepaid expenses and other current assets	68,589	162,069
Total current assets	2,068,543	3,400,392
Patents, net of accumulated amortization of $1,046,365 and $965,040, respectively	1,989,747	2,071,071
Property and equipment, net of accumulated depreciation of $57,455 and $46,950, respectively	160,260	156,644
Total assets	4,218,550	5,628,107
Current liabilities:
Accounts payable and accrued expenses	723,947	468,756
Secured debenture (Note 6)	3,000,000
Total current liabilities	3,723,947	468,756
Patent acquisition obligation (Note 10)	4,313,175	4,171,876
Total liabilities	8,037,122	4,640,632
Commitments and contingencies (Note 10)
Shareholders’ equity:
Preferred stock, par value $100 per share; 19,860 shares authorized; no shares issued or outstanding and Series A convertible preferred stock, par value $100 per share; 140 shares authorized; -0- and 140 shares issued and outstanding, respectively		14,000
Common stock, par value $0.01 per share; 24,000,000 shares authorized; 8,758,050 and 8,752,387 shares issued and outstanding, respectively	87,581	87,524
Additional paid-in capital	148,848,300	152,051,144
Accumulated deficit	(152,754,453)	(151,165,193)
Total shareholders’ (deficiency) equity	(3,818,572)	987,475
Total liabilities and shareholders’ equity	4,218,550	5,628,107
Preferred Stock [Member]
Shareholders’ equity:
Preferred stock, par value $100 per share; 19,860 shares authorized; no shares issued or outstanding and Series A convertible preferred stock, par value $100 per share; 140 shares authorized; -0- and 140 shares issued and outstanding, respectively
Series A Preferred Stock [Member]
Shareholders’ equity:
Preferred stock, par value $100 per share; 19,860 shares authorized; no shares issued or outstanding and Series A convertible preferred stock, par value $100 per share; 140 shares authorized; -0- and 140 shares issued and outstanding, respectively		$ 14,000

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Jan. 31, 2017	Oct. 31, 2016
Patents, accumulated amortization (in Dollars)	$ 1,046,365	$ 965,040
Property and equipment, accumulated depreciation (in Dollars)	$ 57,455	$ 46,950
Common stock par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	24,000,000	24,000,000
Common stock, shares issued	8,758,050	8,752,387
Common stock, shares outstanding	8,758,050	8,752,387
Preferred Stock [Member]
Preferred stock par value (in Dollars per share)	$ 100	$ 100
Preferred stock, shares authorized	19,860	19,860
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series A Preferred Stock [Member]
Preferred stock par value (in Dollars per share)	$ 100	$ 100
Preferred stock, shares authorized	140	140
Preferred stock, shares issued	0	140
Preferred stock, shares outstanding	0	140

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Revenue
Operating costs and expenses:
Litigation and licensing expense	2,121	59,641
Amortization of patents	81,324	81,324
Research and development expenses (including non-cash stock option compensation expenses of $79,700 and $18,946, respectively)	451,630	458,051
Marketing, general and administrative expenses (including non-cash stock option compensation expenses of $180,037 and $93,549, respectively)	859,885	873,423
Total operating costs and expenses	1,394,960	1,472,439
Loss from operations	(1,394,960)	(1,472,439)
Interest expense (Notes 6 and 10)	(195,299)	(123,901)
Interest income	999	3,251
Loss before income taxes	(1,589,260)	(1,593,089)
Provision for income taxes
Net loss	(1,589,260)	(1,593,089)
Deemed dividend to preferred stockholder (Note 6)	(2,008,775)
Net loss attributable to common stockholders	$ (3,598,035)	$ (1,593,089)
Net loss per common share:
Basic and diluted (in Dollars per share)	$ (0.41)	$ (0.18)
Weighted average common shares outstanding:
Basic and diluted (in Shares)	8,755,057	8,727,035

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parentheticals) - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Research and Development Expense [Member]
Non-cash Stock Option Compensation Expenses	$ 79,700	$ 18,946
Selling and Marketing Expense [Member]
Non-cash Stock Option Compensation Expenses	$ 180,037	$ 93,549

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS` EQUITY (UNAUDITED) - 3 months ended Jan. 31, 2017 - USD ($)	Series A Preferred Stock [Member]Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Oct. 31, 2016	$ 14,000	$ 87,524	$ 152,051,144	$ (151,165,193)	$ 987,475
Balance (in Shares) at Oct. 31, 2016	140	8,752,387
Stock option compensation to employees and directors			259,737		259,737
Common stock issued upon exercise of stock options		$ 22	5,643		5,665
Common stock issued upon exercise of stock options (in Shares)		2,200
Common stock issued to consultants		$ 35	17,776		17,811
Common stock issued to consultants (in Shares)		3,463
Redemption of convertible preferred stock (Note 6)	$ (14,000)		(3,486,000)		(3,500,000)
Redemption of convertible preferred stock (Note 6) (in Shares)	(140)
Net loss				(1,589,260)	(1,589,260)
Balance at Jan. 31, 2017		$ 87,581	$ 148,848,300	$ (152,754,453)	$ (3,818,572)
Balance (in Shares) at Jan. 31, 2017		8,758,050

CONDENSED CONSOLIDATED STATEME7

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

BUSINESS AND FUNDING

BUSINESS AND FUNDING	3 Months Ended
	Jan. 31, 2017
Accounting Policies [Abstract]
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	1. BUSINESS AND FUNDING Description of Business As used herein, “we,” “us,” “our,” the “Company” or “ITUS” means ITUS Corporation and its wholly-owned subsidiaries. From inception through October 2012, our primary operations involved the development of patented technologies in the areas of thin-film displays and encryption. Beginning in October of 2012 under the leadership of a new management team, we recapitalized the Company, changed the Company’s name and ticker symbol, relocated the Company’s headquarters, and modernized its systems. In July of 2015, the Company’s stock was accepted for listing and began trading on the NASDAQ Capital Market. In June of 2015, the Company announced the formation of a new subsidiary, Anixa Diagnostics Corporation (“Anixa”), to develop a platform for non-invasive blood tests for the early detection of cancer. That platform is called Cchek Ô From October of 2015 through January of 2017, ITUS announced that we had demonstrated the efficacy of our Cchek Ô Ô Over the next several quarters, we expect Cchek™ to be the primary focus of the Company. As part of our legacy operations, the Company remains engaged in limited patent licensing activities in the area of encrypted audio/video conference calling. We do not expect these activities to be a significant part of the Company’s ongoing operations. In the past, our revenue has been derived from technology licensing and the sale of patented technologies, including in connection with the settlement of litigation. In addition to Anixa, the Company may make investments in and form new companies to develop additional emerging technologies. Funding and Management’s Plans During the three months ended January 31, 2017, cash used in operating activities was approximately $730,000. Net cash provided by investing activities was approximately $136,000, which reflected proceeds from the sale or maturity of certificates of deposit totaling $150,000, which was offset by the purchase of property and equipment of approximately $14,000. As a result, our cash, cash equivalents and short-term investments at January 31, 2017 decreased by approximately $1,238,000 to approximately $2,000,000 from approximately $3,238,000 at the end of fiscal year 2016. Based on currently available information as of March 15, 2017, we believe that our existing cash, cash equivalents, short-term investments and expected cash flows from operations may not be sufficient to fund our activities and debt obligations for the next 12 months. To date, we have relied primarily upon cash from the public and private sale of equity and debt securities to generate the working capital needed to finance our operations. If current cash on hand, cash equivalents, short term investments and cash that may be generated from our business operations are insufficient to continue to operate our business and repay our indebtedness, we will be required to obtain more working capital. We may seek to obtain working capital through sales of our equity securities or through bank credit facilities or public or private debt from various financial institutions where possible and as permitted pursuant to our existing indebtedness. On January 19, 2017, we announced a rights offering for Company shareholders of up to $12,000,000. The rights offering includes the non-transferable right to purchase one (1) share of Company common stock, at a discount, for each share of Company common stock owned by shareholders of record on March 1, 2017. The subscription period began on March 3, 2017 and will conclude on March 24, 2017, subject to extension of up to thirty (30) days at the discretion of the Company. We cannot be certain that additional funding will be available on acceptable terms, or at all. If we do identify sources for additional funding, the sale of additional equity securities or convertible debt could result in dilution to our stockholders. Additionally, the sale of equity securities or issuance of debt securities may be subject to certain security holder approvals or may result in the downward adjustment of the exercise or conversion price of our outstanding securities. We can give no assurance that we will generate sufficient cash flows in the future to satisfy our liquidity requirements or sustain future operations, or that other sources of funding, such as sales of equity or debt, would be available or would be approved by our security holders, if needed, on favorable terms or at all. If we fail to obtain additional working capital as and when needed, it could have a material adverse impact on our business, results of operations and financial condition. Furthermore, such lack of funds may inhibit our ability to respond to competitive pressures or unanticipated capital needs, or may force us to reduce operating expenses, which would significantly harm the business and development of operations. The accompanying condensed consolidated financial statements have been prepared assuming that we will continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the matters discussed herein. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, certain information and notes required by generally accepted accounting principles in annual financial statements have been omitted or condensed. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended October 31, 2016, as reported by us in our Annual Report on Form 10-K. The October 31, 2016 condensed consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“US GAAP”). The condensed consolidated financial statements include all adjustments of a normal recurring nature which, in the opinion of management, are necessary for a fair statement of our financial position as of January 31, 2017, and results of operations and cash flows for the interim periods represented. The results of operations for the three months ended January 31, 2017 are not necessarily indicative of the results to be expected for the entire year. Revenue Recognition Revenue is recognized when (i) persuasive evidence of an arrangement exists, (ii) all obligations have been substantially performed pursuant to the terms of the arrangement, (iii) amounts are fixed or determinable, and (iv) the collectability of amounts is reasonably assured. Patent Licensing In certain instances, our past revenue arrangements have provided for the payment of contractually determined fees in settlement of litigation and in consideration for the grant of certain intellectual property rights for patented technologies owned or controlled by the Company. These arrangements typically include some combination of the following: (i) the grant of a non-exclusive, retroactive and future license to manufacture and/or sell products covered by patented technologies owned or controlled by the Company, (ii) a covenant-not-to-sue, (iii) the release of the licensee from certain claims, and (iv) the dismissal of any pending litigation. In such instances, the intellectual property rights granted have been perpetual in nature, extending until the expiration of the related patents. Pursuant to the terms of these agreements, we had no further obligations. As such, the earnings process was complete and revenue has been recognized upon the execution of the agreement, when collectability was reasonably assured, and when all other revenue recognition criteria were met. Intangible Assets Our only identifiable intangible assets are patents and patent rights. We capitalize patent and patent rights acquisition costs and amortize the cost over the estimated economic useful life. We did not capitalize any patent acquisition costs during the three months ended January 31, 2017 and 2016. We recorded patent amortization expense of approximately $81,000 and $81,000 during the three months ended January 31, 2017 and 2016, respectively.

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	3 Months Ended
	Jan. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	2. STOCK BASED COMPENSATION The Company maintains stock equity incentive plans under which the Company grants non-qualified stock options, stock appreciation rights, stock awards, performance awards, or stock units to employees, directors and consultants. Stock Option Compensation Expense The compensation cost for stock options granted to employees and directors is measured at the grant date, based on the fair value of the award using the Black-Scholes pricing model, and is recognized as an expense, on a straight-line basis, over the requisite service period (the vesting period of the stock option) which is one to ten years. We recorded stock-based compensation expense, related to stock options granted to employees and directors, of approximately $260,000 and $112,000 during the three months ended January 31, 2017 and 2016, respectively. Stock Option Activity During the three months ended January 31, 2017, we granted options to purchase 106,000 shares of common stock to employees and directors at a weighted average exercise price of $5.00 per share pursuant to the ITUS Corporation 2010 Share Incentive Plan (the "2010 Share Plan”). We did not grant any stock options during the three months ended January 31, 2016. During the three months ended January 31, 2017, stock options to purchase 2,200 shares of common stock were exercised with aggregate proceeds of approximately $6,000. During the three months ended January 31, 2016 no stock options to purchase shares of common stock were exercised. During the three months ended January 31, 2017, stock options to purchase 28,000 shares of common stock expired. No stock options to purchase shares of common stock expired in the same period of the prior year. Stock Option Plans As of January 31, 2017, we have two stock option plans: the ITUS Corporation 2003 Share Incentive Plan (the "2003 Share Plan") and the ITUS Corporation 2010 Share Incentive Plan (the “2010 Share Plan”), which were adopted by our Board of Directors on April 21, 2003 and July 14, 2010, respectively. The 2003 Share Plan provides for the grant of nonqualified stock options, stock appreciation rights, stock awards, performance awards and stock units to key employees, directors and consultants. In accordance with the provisions of the 2003 Share Plan, the plan terminated with respect to the ability to grant future options on April 21, 2013. Information regarding the 2003 Share Plan for the three months ended January 31, 2017 is as follows: Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Shares Options Outstanding and exercisable at October 31, 2016 225,600 $ 18.69 Options Outstanding and exercisable at January 31, 2017 195,400 $ 19.05 $ 78,195 The following table summarizes information about stock options outstanding and exercisable under the 2003 Share Plan as of January 31, 2017: Number Outstanding and Exercisable Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Range of Exercise Prices $1.79 - $7.75 39,000 1.56 $ 2.92 $13.50 - $17.50 22,400 0.66 $ 16.33 $18.75 - $23.00 94,000 0.58 $ 22.04 $29.25 40,000 0.55 $ 29.25 The 2010 Share Plan provides for the grant of nonqualified stock options, stock appreciation rights, stock awards, performance awards and stock units to key employees, directors and consultants. As of January 31, 2017, the 2010 Share Plan had 764,000 shares available for future grants. Information regarding the 2010 Share Plan for the three months ended January 31, 2017 is as follows: Weighted Average Price Per Share Aggregate Intrinsic Value Shares Options Outstanding at October 31, 2016 1,080,872 $ 3.12 Options Outstanding at January 31, 2017 1,186,872 $ 3.29 $ 2,079,574 Options Exercisable at January 31, 2017 732,217 $ 3.14 $ 1,389,686 The following table summarizes information about stock options outstanding and exercisable under the 2010 Share Plan as of January 31, 2017: Options Outstanding Options Exercisable Weighted Average Remaining Contractual (in years) Weighted Average Remaining Contractual Weighted Average Exercise Weighted Average Exercise Price Range of Exercise Prices Number Outstanding Number Exercisable $2.58 - $9.25 1,186,872 7.67 $ 3.29 732.217 6.70 $ 3.14 . In addition to options granted under the 2003 Share Plan and the 2010 Share Plan, the Board of Directors approved the grant of stock options to purchase 1,780,000 shares. Information regarding stock options outstanding that were not granted under the 2003 Plan or the 2010 Plan for the three months ended January 31, 2017 is as follows: Weighted Average Price Per Share Aggregate Intrinsic Value Shares Options Outstanding at October 31, 2016 1,780,000 $ 2.70 Options Outstanding and exercisable at January 31, 2017 1,780,000 $ 2.70 $ 3,948,150 The following table summarizes information about stock options outstanding and exercisable that were not granted under the 2003 Share Plan or the 2010 Share Plan as of January 31, 2017: Number Outstanding and Exercisable Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Range of Exercise Prices $2.58 - $5.56 1,780,000 5.51 $ 2.70 . Stock Awards We account for stock awards granted to employees and consultants based on the grant date market price of the underlying common stock. During the three months ended January 31, 2017 and 2016, we issued 3,463 shares and 2,000 shares, respectively, of common stock to consultants for services rendered. We recorded consulting expense for the three months ended January 31, 2017 and 2016 of approximately $18,000 and $6,000, respectively, for the shares of common stock issued to consultants.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Jan. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	3. FAIR VALUE MEASUREMENTS US GAAP defines fair value and establishes a framework for measuring fair value. We have categorized our financial assets and liabilities, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded in the accompanying condensed consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: Level 1 - Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market which we have the ability to access at the measurement date. Level 2 - Financial assets and liabilities whose values are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. Level 3 – Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset and liabilities. The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of January 31, 2017: Level 1 Level 2 Level 3 Total Money market funds – Cash equivalents $ 1,090,191 $ - $ - $ 1,090,191 Certificates of deposit – Short-term investments - 600,000 - 600,000 Total financial assets $ 1,090,191 $ 600,000 $ - $ 1,690,191 The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of October 31, 2016: Level 1 Level 2 Level 3 Total Money market funds – Cash equivalents $ 1,899,136 $ - $ - $ 1,899,136 Certificates of deposit – Short-term investments - 750,000 - 750,000 Total financial assets $ 1,899,136 $ 750,000 $ - $ 2,649,136 The following table presents the hierarchy for our financial liabilities measured at fair value on a recurring basis as of January 31, 2017: Level 1 Level 2 Level 3 Total Patent acquisition obligation $ - $ - $ 4,313,175 $ 4,313,175 The following table presents the hierarchy for our financial liabilities measured at fair value on a recurring basis as of October 31, 2016: Level 1 Level 2 Level 3 Total Patent acquisition obligation $ - $ - $ 4,171,876 $ 4,171,876 The following table sets forth the changes in the fair value of the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis: Patent acquisition obligation Balance October 31, 2016 $ 4,171,876 Accreted interest on patent obligation 141,299 Balance January 31, 2017 $ 4,313,175 Our non-financial assets that are measured on a non-recurring basis include our patents and property and equipment which are measured using fair value techniques whenever events or changes in circumstances indicate a condition of impairment exists. The estimated fair value of prepaid expenses, accounts payable and accrued expenses approximates their individual carrying amounts due to the short term nature of these measurements. Cash and cash equivalents are stated at carrying value which approximates fair value.

INVESTMENTS

INVESTMENTS	3 Months Ended
	Jan. 31, 2017
Investments Schedule [Abstract]
Investment [Text Block]	4. INVESTMENTS At January 31, 2017 and October 31, 2016, we had certificates of deposit of $600,000 and $750,000, respectively, which were classified as short-term investments and reported at fair value.

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	3 Months Ended
	Jan. 31, 2017
Payables and Accruals [Abstract]
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	5. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of the following as of: January 31, 2017 October 31, 2016 Accounts payable $ 540,677 $ 373,224 Payroll and related expenses 59,788 49,901 Accrued interest on secured debenture 54,000 - Accrued other 69,482 45,631 Total $ 723,947 $ 468,756

PREFERRED STOCK REDEMPTION

PREFERRED STOCK REDEMPTION	3 Months Ended
	Jan. 31, 2017
Disclosure Text Block Supplement [Abstract]
Preferred Stock [Text Block]	6. PREFERRED STOCK REDEMPTION On November 11, 2016, the holder of all our outstanding Series A Preferred with an aggregate stated value of $3,500,000 exercised its right of redemption to receive such amount from proceeds from the sale of the Company’s equity securities. On December 6, 2016, we entered into an agreement with the holder of the Series A Preferred setting forth the terms under which such redemption would take place (the “Series A Redemption Terms”). Pursuant to the Series A Redemption Terms, on December 9, 2016 the holder of the Series A Preferred received (i) $500,000 in cash, (ii) a 12% secured debenture evidencing the remaining $3,000,000 amount to be redeemed, $1,000,000 of which is due on or before June 1, 2017 and the remainder of which is due November 11, 2017 (the “Redemption Debenture”), and (iii) a 5 year warrant to purchase 500,000 shares of the Company’s common stock at an exercise price equal to 10% below the thirty (30) day volume weighted average closing price of our common stock at closing (the “Redemption Warrant”). The Redemption Debenture is secured by a lien on the Company’s assets and prohibits the Company from incurring any senior indebtedness other than equipment financing in connection with the Company’s business. The difference between the fair value of the consideration given to the holder of our Series A Preferred and the carrying value of the Series A Preferred represents a return to the preferred stockholder which is treated in a similar manner as that of dividends paid on preferred stock. In the redemption, the Series A Preferred holder received $500,000 in cash, the Redemption Debenture with a present value of approximately $2,999,000 and the Redemption Warrant with a fair value of approximately $2,801,000, determined using the Black Scholes pricing model, and waived the Series A Preferred’s conversion right with an intrinsic value of approximately $792,000, resulting in total consideration given to the Series A Preferred holder of approximately $5,508,000. The difference between the fair value of the consideration and the $3,500,000 carrying value of the Series A Preferred resulted in a deemed dividend to the Series A Preferred holder of approximately $2,008,000.

NET LOSS PER SHARE OF COMMON ST

NET LOSS PER SHARE OF COMMON STOCK	3 Months Ended
	Jan. 31, 2017
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	7. NET LOSS PER SHARE OF COMMON STOCK Basic net loss per common share (“Basic EPS”) is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding. Diluted net loss per common share (“Diluted EPS”) is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. Net loss attributable to common stockholders includes a deemed dividend to the Series A Preferred holder of $2,008,775. Diluted EPS for all periods presented is the same as Basic EPS, as the inclusion of the effect of common share equivalents then outstanding would be anti-dilutive. For this reason, excluded from the calculation of Diluted EPS for the three months ended January 31, 2017 and 2016 were stock options to purchase 3,162,272 and 2,712,472 shares, respectively, and warrants to purchase 837,405 and 802,587 shares, respectively.

EFFECT OF RECENTLY ADOPTED AND

EFFECT OF RECENTLY ADOPTED AND ISSUED PRONOUNCEMENTS	3 Months Ended
	Jan. 31, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	8. EFFECT OF RECENTLY ADOPTED AND ISSUED PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers. This amendment updates addressing revenue from contracts with customers, which clarifies existing accounting literature relating to how and when a company recognizes revenue. Under the standard, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. This standard update was effective for interim and annual reporting periods beginning after December 15, 2016, and were to be applied retrospectively or the cumulative effect as of the date of adoption, with early application not permitted. In July 2015, a one-year deferral of the effective date of the new guidance was approved. We began a detailed assessment of the impact that this guidance will have on our consolidated financial statements and related disclosures, and our analysis is currently ongoing. In June 2014, the FASB issued Accounting Standards Update 2014-12 (“ASU 2014-12”), Compensation – Stock Compensation. This amendment requires that a performance target that affects vesting and could be achieved after the requisite service period shall be treated as a performance condition. Adoption of this standard is required for annual periods beginning after December 15, 2015. Early adoption is permitted. The adoption of this amendment on November 1, 2016 did not have an impact on our consolidated financial statements and related disclosures. In August 2014, the FASB issued Accounting Standards Update 2014-15 (“ASU 2014-15”). This amendment requires management to assess an entity’s ability to continue as a going concern every reporting period including interim periods, and to provide related footnote disclosure in certain circumstances. Adoption of this standard is required for annual periods ending after December 15, 2016 and are to be applied retrospectively or the cumulative effect as of the date of adoption. The adoption of this amendment on November 1, 2016 did not have an impact on our consolidated financial statements and related disclosures. In April 2015, the FASB issued Accounting Standards Update 2015-03 (“ASU 2015-03”) to simplify the presentation of debt issuance costs. This amendment requires debt issuance costs be presented on the balance sheet as a direct reduction from the carrying amount of the debt liability, consistent with debt discounts or premiums. Adoption of this standard is required for interim and annual periods beginning after December 15, 2015 and is to be applied retrospectively. The adoption of this amendment on November 1, 2016 did not have an impact on our consolidated financial statements and related disclosures. In November 2015, the FASB issued Accounting Standards Update 2015-17 (“ASU 2015-17”) to simplify the presentation of deferred taxes. This amendment requires that all deferred tax assets and liabilities, along with any related valuation allowances, be classified as noncurrent on the balance sheet. Adoption of this standard is required for annual periods beginning after December 15, 2016. The adoption of this amendment on November 1, 2016 did not have an impact on our consolidated financial statements and related disclosures. In February 2016, the FASB issued Accounting Standards Update 2016-02 (“ASU 2016-02”) which requires lessees to recognize most leases on the balance sheet. This is expected to increase both reported assets and liabilities. The new lease standard does not substantially change lessor accounting. For public companies, the standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, although early adoption is permitted. Lessees and lessors will be required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. The requirements of this standard include a significant increase in required disclosures. We began a detailed assessment of the impact that this guidance will have on our consolidated financial statements and related disclosures, and our analysis is ongoing. In March 2016, the FASB issued Accounting Standards Update 2016-09 (“ASU 2016-09”) that changes the accounting for certain aspects of share-based payments to employees. The new guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It also allows an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election for forfeitures as they occur. The guidance is effective for public business entities for fiscal years beginning after December 15, 2016, and interim periods within those years. Early adoption is permitted. We are currently evaluating the impact ASU 2016-09 will have on our consolidated financial statements and related disclosures.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Jan. 31, 2017
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	9. INCOME TAXES We file Federal, New York, California and Pennsylvania state income tax returns. Due to net operating losses, the statute of limitations for Federal and New York State income tax returns remains open to examination by taxing authorities since the fiscal year ended October 31, 1997. We account for interest and penalties related to income tax matters, if any, in marketing, general and administrative expenses. There are no unrecognized income tax benefits as of January 31, 2017 and October 31, 2016. We recognize deferred tax assets and liabilities for the estimated future tax effects of events that have been recognized in our financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realized. We have substantial net operating loss carryforwards for Federal and New York State income tax returns. We have provided a full valuation allowance against our deferred tax asset due to our historical pre-tax losses and the uncertainty regarding the realizability of these deferred tax assets.

COMMITMENT AND CONTINGENCES

COMMITMENT AND CONTINGENCES	3 Months Ended
	Jan. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	10. COMMITMENT AND CONTINGENCES Patent Acquisition Obligations As of January 31, 2017, we have incurred obligations due no later than November 2017 related to the acquisition of patents, which have a discounted present value of approximately $4,313,000, and which amount will be reduced by royalties paid during the period, if any. The payment due in November 2017 is payable at the option of the Company in cash or common stock. On January 27, 2017, the Company announced its intention to issue 947,606 shares of common stock in satisfaction of this obligation. We recorded interest expense of approximately $141,000 and $124,000, respectively, for the three months ended January 31, 2017 and 2016, for the accretion of interest on patent acquisition obligations. Litigation Matters Other than suits we bring to enforce our patent rights we are not a party to any material pending legal proceedings other than that which arise in the ordinary course of business. We believe that any liability that may ultimately result from the resolution of these matters will not, individually or in the aggregate, have a material adverse effect on our financial position or results of operations.

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	3 Months Ended
	Jan. 31, 2017
2003 Share Plan [Member]
STOCK BASED COMPENSATION (Tables) [Line Items]
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Shares Options Outstanding and exercisable at October 31, 2016 225,600 $ 18.69 Options Outstanding and exercisable at January 31, 2017 195,400 $ 19.05 $ 78,195
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	Number Outstanding and Exercisable Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Range of Exercise Prices $1.79 - $7.75 39,000 1.56 $ 2.92 $13.50 - $17.50 22,400 0.66 $ 16.33 $18.75 - $23.00 94,000 0.58 $ 22.04 $29.25 40,000 0.55 $ 29.25
2010 Share Plan [Member]
STOCK BASED COMPENSATION (Tables) [Line Items]
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Weighted Average Price Per Share Aggregate Intrinsic Value Shares Options Outstanding at October 31, 2016 1,080,872 $ 3.12 Options Outstanding at January 31, 2017 1,186,872 $ 3.29 $ 2,079,574 Options Exercisable at January 31, 2017 732,217 $ 3.14 $ 1,389,686
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	Options Outstanding Options Exercisable Weighted Average Remaining Contractual (in years) Weighted Average Remaining Contractual Weighted Average Exercise Weighted Average Exercise Price Range of Exercise Prices Number Outstanding Number Exercisable $2.58 - $9.25 1,186,872 7.67 $ 3.29 732.217 6.70 $ 3.14 .
Stock Options Not Granted Under 2003 Share Plan Or 2010 Share Plan [Member]
STOCK BASED COMPENSATION (Tables) [Line Items]
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Weighted Average Price Per Share Aggregate Intrinsic Value Shares Options Outstanding at October 31, 2016 1,780,000 $ 2.70 Options Outstanding and exercisable at January 31, 2017 1,780,000 $ 2.70 $ 3,948,150
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	Number Outstanding and Exercisable Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Range of Exercise Prices $2.58 - $5.56 1,780,000 5.51 $ 2.70 .

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Jan. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	Level 1 Level 2 Level 3 Total Money market funds – Cash equivalents $ 1,090,191 $ - $ - $ 1,090,191 Certificates of deposit – Short-term investments - 600,000 - 600,000 Total financial assets $ 1,090,191 $ 600,000 $ - $ 1,690,191 Level 1 Level 2 Level 3 Total Money market funds – Cash equivalents $ 1,899,136 $ - $ - $ 1,899,136 Certificates of deposit – Short-term investments - 750,000 - 750,000 Total financial assets $ 1,899,136 $ 750,000 $ - $ 2,649,136
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]	Level 1 Level 2 Level 3 Total Patent acquisition obligation $ - $ - $ 4,313,175 $ 4,313,175 Level 1 Level 2 Level 3 Total Patent acquisition obligation $ - $ - $ 4,171,876 $ 4,171,876
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	Patent acquisition obligation Balance October 31, 2016 $ 4,171,876 Accreted interest on patent obligation 141,299 Balance January 31, 2017 $ 4,313,175

ACCOUNTS PAYABLE AND ACCRUED 20

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	3 Months Ended
	Jan. 31, 2017
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]	January 31, 2017 October 31, 2016 Accounts payable $ 540,677 $ 373,224 Payroll and related expenses 59,788 49,901 Accrued interest on secured debenture 54,000 - Accrued other 69,482 45,631 Total $ 723,947 $ 468,756

BUSINESS AND FUNDING (Details)

BUSINESS AND FUNDING (Details) - USD ($)	Jan. 19, 2017	Jan. 31, 2017	Jan. 31, 2016	Oct. 31, 2016
Accounting Policies [Abstract]
Net Cash Provided by (Used in) Operating Activities		$ (729,913)	$ (532,381)
Net Cash Provided by (Used in) Investing Activities		135,879	143,988
Proceeds from Sale of Short-term Investments		150,000	500,000
Payments to Acquire Property, Plant, and Equipment		14,121	106,012
Net Cash Provided by (Used in) Financing Activities		(494,335)
Proceeds from Stock Options Exercised		5,665
Cash, Period Increase (Decrease)		1,238,000
Cash, Cash Equivalents, and Short-term Investments		2,000,000		$ 3,238,000
Rights Offering To Shareholders, Amount	$ 12,000,000
Amortization of Intangible Assets		$ 81,324	$ 81,324

STOCK BASED COMPENSATION (Detai

STOCK BASED COMPENSATION (Details) - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
STOCK BASED COMPENSATION (Details) [Line Items]
Proceeds from Stock Options Exercised (in Dollars)	$ 5,665
Employee Stock Option [Member]
STOCK BASED COMPENSATION (Details) [Line Items]
Share-based Compensation (in Dollars)	$ 260,000	$ 112,000
Employee Stock Option [Member] | 2010 Share Plan [Member]
STOCK BASED COMPENSATION (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	106,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share)	$ 5
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	2,200
Proceeds from Stock Options Exercised (in Dollars)	$ 6,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	28,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	764,000
Employee Stock Option [Member] | Stock Options Not Granted Under 2003 Share Plan Or 2010 Share Plan [Member]
STOCK BASED COMPENSATION (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	1,780,000
Employee Stock Option [Member] | Consultant [Member]
STOCK BASED COMPENSATION (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services	3,463	2,000
Consultation Fees Related To Options (in Dollars)	$ 18,000	$ 6,000
Minimum [Member] | Employee Stock Option [Member]
STOCK BASED COMPENSATION (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period	1 year
Maximum [Member] | Employee Stock Option [Member]
STOCK BASED COMPENSATION (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period	10 years

STOCK BASED COMPENSATION (Det23

STOCK BASED COMPENSATION (Details) - Information regarding the 2003 Share Plan - 2003 Share Plan [Member]	Jan. 31, 2017USD ($)$ / sharesshares
STOCK BASED COMPENSATION (Details) - Information regarding the 2003 Share Plan [Line Items]
Options Outstanding and exercisable at October 31, 2016 | shares	225,600
Options Outstanding and exercisable at October 31, 2016 | $ / shares	$ 18.69
Options Outstanding and exercisable at January 31, 2017 | shares	195,400
Options Outstanding and exercisable at January 31, 2017 | $ / shares	$ 19.05
Options Outstanding and exercisable at January 31, 2017 | $	$ 78,195

STOCK BASED COMPENSATION (Det24

STOCK BASED COMPENSATION (Details) - Stock options outstanding and exercisable under 2003 share plan - 2003 Share Plan [Member]	3 Months Ended
	Jan. 31, 2017$ / sharesshares
Range Of Exercise Prices $1.79 To $7.75 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding and Exercisable, Number | shares	39,000
Options Outstanding and Exercisable, Weighted Average Remaining Contractual Life	1 year 204 days
Options Outstanding and Exercisable, Weighted Average Exercise Price (in Dollars per share) | $ / shares	$ 2.92
Range Of Exercise Prices $13.50 To $17.50 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding and Exercisable, Number | shares	22,400
Options Outstanding and Exercisable, Weighted Average Remaining Contractual Life	240 days
Options Outstanding and Exercisable, Weighted Average Exercise Price (in Dollars per share) | $ / shares	$ 16.33
Range Of Exercise Prices $18.75 To $23.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding and Exercisable, Number | shares	94,000
Options Outstanding and Exercisable, Weighted Average Remaining Contractual Life	211 days
Options Outstanding and Exercisable, Weighted Average Exercise Price (in Dollars per share) | $ / shares	$ 22.04
Range Of Exercise Prices $29.25 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding and Exercisable, Number | shares	40,000
Options Outstanding and Exercisable, Weighted Average Remaining Contractual Life	200 days
Options Outstanding and Exercisable, Weighted Average Exercise Price (in Dollars per share) | $ / shares	$ 29.25

STOCK BASED COMPENSATION (Det25

STOCK BASED COMPENSATION (Details) - Information regarding the 2010 Share Plan - 2010 Share Plan [Member]	Jan. 31, 2017USD ($)$ / sharesshares
STOCK BASED COMPENSATION (Details) - Information regarding the 2010 Share Plan [Line Items]
Options Outstanding at October 31, 2016 | shares	1,080,872
Options Outstanding at October 31, 2016 | $ / shares	$ 3.12
Options Outstanding at January 31, 2017 | shares	1,186,872
Options Outstanding at January 31, 2017 | $ / shares	$ 3.29
Options Outstanding at January 31, 2017 | $	$ 2,079,574
Options Exercisable at January 31, 2017 | shares	732,217
Options Exercisable at January 31, 2017 | $ / shares	$ 3.14
Options Exercisable at January 31, 2017 | $	$ 1,389,686

STOCK BASED COMPENSATION (Det26

STOCK BASED COMPENSATION (Details) - Stock options outstanding under 2010 Share Plan - Range Of Exercise Prices $2.58 To $9.25 [Member] - 2010 Share Plan [Member]	3 Months Ended
	Jan. 31, 2017$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number | shares	1,186,872
Options Outstanding,Weighted Average Remaining Contractual Life	7 years 244 days
Options Outstanding, Weighted Average Exercise Price | $ / shares	$ 3.29
Options Exercisable, Number | shares	732.217
Options Exercisable,Weighted Average Remaining Contractual Life	6 years 255 days
Options Exercisable, Weighted Average Exercise Price | $ / shares	$ 3.14

STOCK BASED COMPENSATION (Det27

STOCK BASED COMPENSATION (Details) - Information regarding Stock options granted not under 2003 Share Plan and 2010 Share Plan - Stock Options Not Granted Under 2003 Share Plan Or 2010 Share Plan [Member] - USD ($)	Jan. 31, 2017	Oct. 31, 2016
STOCK BASED COMPENSATION (Details) - Information regarding Stock options granted not under 2003 Share Plan and 2010 Share Plan [Line Items]
Options Outstanding at October 31, 2016	1,780,000	1,780,000
Options Outstanding at October 31, 2016	$ 2.70	$ 2.70
Options Outstanding and exercisable at January 31, 2017	1,780,000	1,780,000
Options Outstanding and exercisable at January 31, 2017	$ 2.70	$ 2.70
Options Outstanding and exercisable at January 31, 2017	$ 3,948,150

STOCK BASED COMPENSATION (Det28

STOCK BASED COMPENSATION (Details) - Stock options outstanding not under 2003 Share Plan and 2010 Share Plan - Range Of Exercise Prices $2.58 To $5.56 [Member] - Stock Options Not Granted Under 2003 Share Plan Or 2010 Share Plan [Member]	3 Months Ended
	Jan. 31, 2017$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding and Exercisable, Number | shares	1,780,000
Options Outstanding and Exercisable, Weighted Average Remaining Contractual Life	5 years 186 days
Options Outstanding and Exercisable, Weighted Average Exercise Price | $ / shares	$ 2.70

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial assets measured at fair value - USD ($)	Jan. 31, 2017	Oct. 31, 2016
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial assets measured at fair value [Line Items]
Financial assets	$ 1,690,191	$ 2,649,136
Cash Equivalents [Member]
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial assets measured at fair value [Line Items]
Financial assets	1,090,191	1,899,136
Certificates of Deposit [Member]
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial assets measured at fair value [Line Items]
Financial assets	600,000	750,000
Fair Value, Inputs, Level 1 [Member]
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial assets measured at fair value [Line Items]
Financial assets	1,090,191	1,899,136
Fair Value, Inputs, Level 1 [Member] | Cash Equivalents [Member]
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial assets measured at fair value [Line Items]
Financial assets	1,090,191	1,899,136
Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member]
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial assets measured at fair value [Line Items]
Financial assets
Fair Value, Inputs, Level 2 [Member]
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial assets measured at fair value [Line Items]
Financial assets	600,000	750,000
Fair Value, Inputs, Level 2 [Member] | Cash Equivalents [Member]
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial assets measured at fair value [Line Items]
Financial assets
Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member]
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial assets measured at fair value [Line Items]
Financial assets	600,000	750,000
Fair Value, Inputs, Level 3 [Member]
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial assets measured at fair value [Line Items]
Financial assets
Fair Value, Inputs, Level 3 [Member] | Cash Equivalents [Member]
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial assets measured at fair value [Line Items]
Financial assets
Fair Value, Inputs, Level 3 [Member] | Certificates of Deposit [Member]
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial assets measured at fair value [Line Items]
Financial assets

FAIR VALUE MEASUREMENTS (Deta30

FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial liabilities measured at fair value - Patent Acquisition Obligation [Member] - USD ($)	Jan. 31, 2017	Oct. 31, 2016
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial liabilities measured at fair value [Line Items]
Financial Liability	$ 4,313,175	$ 4,171,876
Fair Value, Inputs, Level 1 [Member]
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial liabilities measured at fair value [Line Items]
Financial Liability
Fair Value, Inputs, Level 2 [Member]
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial liabilities measured at fair value [Line Items]
Financial Liability
Fair Value, Inputs, Level 3 [Member]
FAIR VALUE MEASUREMENTS (Details) - Hierarchy for financial liabilities measured at fair value [Line Items]
Financial Liability	$ 4,313,175	$ 4,171,876

FAIR VALUE MEASUREMENTS (Deta31

FAIR VALUE MEASUREMENTS (Details) - Changes in the fair value of the Company's Level 3 financial liabilities measured at fair value - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Changes in the fair value of the Company's Level 3 financial liabilities measured at fair value [Abstract]
Balance October 31, 2016	$ 4,171,876
Accreted interest on patent obligation	141,299	$ (124,000)
Balance January 31, 2017	$ 4,313,175

INVESTMENTS (Details)

INVESTMENTS (Details) - USD ($)	Jan. 31, 2017	Oct. 31, 2016
Investments Schedule [Abstract]
Certificates of Deposit, at Carrying Value	$ 600,000	$ 750,000

ACCOUNTS PAYABLE AND ACCRUED 33

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - Accounts payable and accrued expense - USD ($)	Jan. 31, 2017	Oct. 31, 2016
Accounts payable and accrued expense [Abstract]
Accounts payable	$ 540,677	$ 373,224
Payroll and related expenses	59,788	49,901
Accrued interest on secured debenture	54,000
Accrued other	69,482	45,631
Total	$ 723,947	$ 468,756

PREFERRED STOCK REDEMPTION (Det

PREFERRED STOCK REDEMPTION (Details) - USD ($)	Dec. 09, 2016	Jan. 31, 2017	Nov. 11, 2016
PREFERRED STOCK REDEMPTION (Details) [Line Items]
Preferred Stock, Redemption Amount			$ 3,500,000
Preferred Stock, Redemption Terms	Pursuant to the Series A Redemption Terms, on December 9, 2016 the holder of the Series A Preferred received (i) $500,000 in cash, (ii) a 12% secured debenture evidencing the remaining $3,000,000 amount to be redeemed, $1,000,000 of which is due on or before June 1, 2017 and the remainder of which is due November 11, 2017 (the “Redemption Debenture”), and (iii) a 5 year warrant to purchase 500,000 shares of the Company’s common stock at an exercise price equal to 10% below the thirty (30) day volume weighted average closing price of our common stock at closing (the “Redemption Warrant”)
Payments for Repurchase of Redeemable Convertible Preferred Stock		$ 500,000
Warrant Term		5 years
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares)		500,000
Warrant Exercise Price Percentage		10.00%
Redemption Debenture Present Value		$ 2,999,000
Preferred Stock Conversion Right Intrinsic Value		792,000
Preferred Holder Consideration Transferred		5,508,000
Redeemable Preferred Stock Dividends		2,008,000
Due on or before June 1, 2017[Member]
PREFERRED STOCK REDEMPTION (Details) [Line Items]
Debt Instrument, Face Amount		$ 1,000,000
Secured Debt [Member]
PREFERRED STOCK REDEMPTION (Details) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		12.00%
Redemption Warrant [Member]
PREFERRED STOCK REDEMPTION (Details) [Line Items]
Warrants Not Settleable in Cash, Fair Value Disclosure		$ 2,801,000
Redemption Debenture [Member]
PREFERRED STOCK REDEMPTION (Details) [Line Items]
Secured Debt		$ 3,000,000

NET LOSS PER SHARE OF COMMON 35

NET LOSS PER SHARE OF COMMON STOCK (Details) - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
NET LOSS PER SHARE OF COMMON STOCK (Details) [Line Items]
Net Income (Loss) Attributable to Parent (in Dollars)	$ (3,598,035)	$ (1,593,089)
Employee Stock Option [Member]
NET LOSS PER SHARE OF COMMON STOCK (Details) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,162,272	2,712,472
Warrant [Member]
NET LOSS PER SHARE OF COMMON STOCK (Details) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	837,405	802,587
Series A Preferred Stock [Member]
NET LOSS PER SHARE OF COMMON STOCK (Details) [Line Items]
Net Income (Loss) Attributable to Parent (in Dollars)	$ 2,008,775

COMMITMENT AND CONTINGENCES (De

COMMITMENT AND CONTINGENCES (Details) - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
COMMITMENT AND CONTINGENCES (Details) [Line Items]
Patent Acquisition Obligations Discounted, Present Value	$ 4,313,000
Interest Expense, Patent Acquisition Obligations	$ (141,299)	$ 124,000
Common Stock [Member]
COMMITMENT AND CONTINGENCES (Details) [Line Items]
Stock Issued During Period, Shares, New Issues (in Shares)	947,606