Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Jan. 07, 2021 | Apr. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | Anixa Biosciences Inc | ||
Entity Central Index Key | 0000715446 | ||
Document Type | 10-K | ||
Document Period End Date | Oct. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 35,235,950 | ||
Entity Common Stock, Shares Outstanding | 26,076,819 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 6,417,061 | $ 3,491,625 |
Short-term investments in certificates of deposit | 2,640,000 | 2,350,000 |
Receivables | 2,231 | 66,527 |
Prepaid expenses and other current assets | 309,332 | 184,972 |
Total current assets | 9,368,624 | 6,093,124 |
Property and equipment, net of accumulated depreciation of $-0- and $95,015, respectively | 200,569 | |
Operating lease right-of-use asset | 54,340 | |
Other assets | 30,000 | |
Total assets | 9,452,964 | 6,293,693 |
Current liabilities: | ||
Accounts payable | 232,368 | 585,817 |
Accrued expenses | 901,025 | 895,498 |
Operating lease liability | 55,198 | |
Total current liabilities | 1,188,591 | 1,481,315 |
Commitments and contingencies (Note 6) | ||
Shareholders' equity: | ||
Preferred stock, value | ||
Common stock, par value $.01 per share; 100,000,000 and 48,000,000 shares authorized, respectively; 24,248,695 and 20,331,754 shares issued and outstanding, respectively | 242,486 | 203,317 |
Additional paid-in capital | 200,354,488 | 186,849,299 |
Accumulated deficit | (191,835,618) | (181,817,263) |
Total shareholders' equity | 8,761,356 | 5,235,353 |
Noncontrolling interest (Note 2) | (496,983) | (422,975) |
Total equity | 8,264,373 | 4,812,378 |
Total liabilities and equity | 9,452,964 | 6,293,693 |
Series A Convertible Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred stock, value |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Property and equipment, accumulated depreciation | $ 0 | $ 95,015 |
Preferred stock, par value | $ 100 | $ 100 |
Preferred stock, shares authorized | 19,860 | 19,860 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ .01 | $ .01 |
Common stock, shares authorized | 100,000,000 | 48,000,000 |
Common stock, shares issued | 24,248,695 | 20,331,754 |
Common stock, shares outstanding | 24,248,695 | 20,331,754 |
Series A Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 100 | $ 100 |
Preferred stock, shares authorized | 140 | 140 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 250,000 | |
Operating costs and expenses: | ||
Inventor royalties, contingent legal fees, litigation and licensing expenses | 166,250 | |
Amortization of patents | 418,750 | |
Research and development expenses (including non-cash share based compensation expenses of $1,484,545 and $2,825,630, respectively) | 4,381,205 | 5,473,427 |
General and administrative expenses (including non-cash share based compensation expenses of $2,652,915 and $2,888,115, respectively) | 5,596,997 | 5,662,828 |
Impairment in carrying amount of patent assets (Note 2) | 418,750 | |
Total operating costs and expenses | 9,978,202 | 12,140,005 |
Loss from operations | (9,978,202) | (11,890,005) |
Loss on disposal of property and equipment | (148,084) | |
Interest income | 33,923 | 71,353 |
Net loss | (10,092,363) | (11,818,652) |
Less: Net loss attributable to noncontrolling interest | (74,008) | (171,598) |
Net loss attributable to common stockholders | $ (10,018,355) | $ (11,647,054) |
Net loss per share: Basic and diluted | $ (0.45) | $ (.59) |
Weighted average common shares outstanding: Basic and diluted | 22,229,042 | 19,789,795 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Research and Development Expense [Member] | ||
Non-cash share based compensation expenses | $ 1,484,545 | $ 2,825,630 |
General and Administrative Expense [Member] | ||
Non-cash share based compensation expenses | $ 2,652,915 | $ 2,888,115 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total Shareholders' Equity [Member] | Non-controlling Interest [Member] | Total |
Beginning balance at Oct. 31, 2018 | $ 189,086 | $ 175,415,931 | $ (170,170,209) | $ 5,434,808 | $ (251,377) | $ 5,183,431 |
Beginning balance, shares at Oct. 31, 2018 | 18,908,632 | |||||
Stock option compensation to employees and directors | 3,560,883 | 3,560,883 | 3,560,883 | |||
Stock options and warrants issued to consultants | 198,421 | 198,421 | 198,421 | |||
Common stock issued upon exercise of stock options | $ 476 | 121,594 | 122,070 | $ 122,070 | ||
Common stock issued upon exercise of stock options, shares | 47,600 | 47,600 | ||||
Restricted stock award compensation to employee pursuant to stock incentive plan | 1,954,441 | 1,954,441 | $ 1,954,441 | |||
Restricted stock award compensation to employee pursuant to stock incentive plan, shares | ||||||
Common stock issued pursuant to employee stock purchase plan | $ 116 | 38,970 | 39,086 | 39,086 | ||
Common stock issued pursuant to employee stock purchase plan, shares | 11,650 | |||||
Common stock issued in at-the-market offering | $ 13,639 | 5,513,789 | 5,527,428 | 5,527,428 | ||
Common stock issued in at-the-market offering | 1,363,872 | |||||
Shareholder derivative complaint settlement | 45,270 | 45,270 | 45,270 | |||
Net loss | (11,647,054) | (11,647,054) | (171,598) | (11,818,652) | ||
Ending balance at Oct. 31, 2019 | $ 203,317 | 186,849,299 | (181,817,263) | 5,235,353 | (422,975) | 4,812,378 |
Ending balance, shares at Oct. 31, 2019 | 20,331,754 | |||||
Stock option compensation to employees and directors | 3,922,719 | 3,922,719 | 3,922,719 | |||
Stock options issued to consultants | 214,741 | 214,741 | 214,741 | |||
Common stock issued upon exercise of stock options | $ 511 | 121,759 | 122,270 | $ 122,270 | ||
Common stock issued upon exercise of stock options, shares | 51,100 | 51,100 | ||||
Common stock issued pursuant to employee stock purchase plan | $ 115 | 18,336 | 18,451 | $ 18,451 | ||
Common stock issued pursuant to employee stock purchase plan, shares | 11,536 | |||||
Common stock issued in at-the-market offering | $ 38,543 | 9,227,634 | 9,266,177 | 9,266,177 | ||
Common stock issued in at-the-market offering | 3,854,305 | |||||
Net loss | (10,018,355) | (10,018,355) | (74,008) | (10,092,363) | ||
Ending balance at Oct. 31, 2020 | $ 242,486 | $ 200,354,488 | $ (191,835,618) | $ 8,761,356 | $ (496,983) | $ 8,264,373 |
Ending balance, shares at Oct. 31, 2020 | 24,248,695 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Reconciliation of net loss to net cash used in operating activities: | ||
Net loss | $ (10,092,363) | $ (11,818,652) |
Stock option compensation to employees and directors | 3,922,719 | 3,560,883 |
Stock options and warrants issued to consultants | 214,741 | 198,421 |
Restricted stock award compensation to employee pursuant to stock incentive plan | 1,954,441 | |
Amortization of patents | 418,750 | |
Depreciation of property and equipment | 38,276 | 47,558 |
Loss on disposal of property and equipment | 148,084 | |
Amortization of operating lease right-of-use asset | 51,881 | |
Impairment in carrying amount of patent assets | 418,750 | |
Change in operating assets and liabilities: | ||
Receivables | 64,296 | 271,700 |
Prepaid expenses and other current assets | (124,360) | (9,481) |
Accounts payable | (353,449) | 3,805 |
Accrued expenses | 5,527 | 212,399 |
Operating lease liability | (51,023) | |
Net cash used in operating activities | (6,175,671) | (4,741,426) |
Cash flows from investing activities: | ||
Disbursements to acquire short-term investments in certificates of deposit | (5,010,000) | (3,850,000) |
Proceeds from maturities of short-term investments in certificates of deposit | 4,720,000 | 3,500,000 |
Purchase of property and equipment | (15,791) | (175,457) |
Net cash used in investing activities | (305,791) | (525,457) |
Cash flows from financing activities: | ||
Proceeds from sale of common stock in at-the-market offering | 9,266,177 | 5,527,428 |
Proceeds from sale of common stock pursuant to employee stock purchase plan | 18,451 | 39,086 |
Proceeds from settlement of shareholder derivative complaint | 14,034 | |
Proceeds from exercise of stock options and warrants | 122,270 | 122,070 |
Net cash provided by financing activities | 9,406,898 | 5,702,618 |
Net increase in cash and cash equivalents | 2,925,436 | 435,735 |
Cash and cash equivalents at beginning of year | 3,491,625 | 3,055,890 |
Cash and cash equivalents at end of year | 6,417,061 | 3,491,625 |
Supplemental cash flow information: | ||
Cash proceeds from interest income | 39,890 | 55,729 |
Supplemental disclosure of non-cash investing activity: | ||
Disposal of fully depreciated property and equipment | (6,343) | |
Supplemental disclosure of non-cash financing activity: | ||
Note receivable issued for settlement of shareholder derivative complaint | $ 31,236 |
Business and Funding
Business and Funding | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Business and Funding | 1. BUSINESS AND FUNDING Description of Business As used herein, “we,” “us,” “our,” the “Company” or “Anixa” means Anixa Biosciences, Inc. and its consolidated subsidiaries. Our primary operations involve developing therapies and vaccines that are focused on critical unmet needs in oncology and infectious disease. Our therapeutics programs include the development of a chimeric endocrine receptor T-cell technology, a novel form of CAR-T technology, initially focused on treating ovarian cancer, and the discovery and ultimately development of anti-viral drug candidates for the treatment of COVID-19 focused on inhibiting certain viral protein functions of the virus. Our vaccine programs include the development of a vaccine against triple negative breast cancer (“TNBC”), the most lethal form of breast cancer, and a vaccine against ovarian cancer. Our subsidiary, Certainty Therapeutics, Inc. (“Certainty”), is developing immuno-therapy drugs against cancer. Certainty holds an exclusive worldwide, royalty-bearing license to use certain intellectual property owned or controlled by The Wistar Institute (“Wistar”) relating to Wistar’s CAR-T technology. We have initially focused on the development of a treatment for ovarian cancer, but we may also pursue applications of the technology for the development of treatments for additional solid tumors. The license agreement requires Certainty to make certain cash and equity payments to Wistar. With respect to Certainty’s equity obligations to Wistar, Certainty issued to Wistar shares of its common stock equal to five percent (5%) of the common stock of Certainty. Certainty, in collaboration with the H. Lee Moffitt Cancer Center and Research Institute, Inc. (“Moffitt”), is advancing toward human clinical testing its CAR-T technology for treating ovarian cancer. In April 2020, in collaboration with OntoChem GmbH (“OntoChem”), we commenced a project to discover and ultimately develop anti-viral drug candidates against COVID-19. Through this collaboration, we utilized advanced computational methods, machine learning, and molecular modeling techniques to perform in silico We hold an exclusive worldwide, royalty-bearing license to use certain intellectual property owned or controlled by The Cleveland Clinic Foundation (“Cleveland Clinic”) relating to certain breast cancer vaccine technology developed at Cleveland Clinic. We are working in collaboration with Cleveland Clinic to develop a method to vaccinate women against contracting breast cancer, focused specifically on TNBC. A specific protein, alpha-lactalbumin, has been identified that is only present during lactation in healthy women, but reappears in many forms of breast cancer, especially TNBC. Studies have shown that vaccinating against this protein prevents breast cancer in mice. We are working with researchers and clinicians at Cleveland Clinic to prepare for treatment of patients in a Phase 1a clinical trial. In November 2020, we executed a license agreement with Cleveland Clinic pursuant to which the Company was granted an exclusive worldwide, royalty-bearing license to use certain intellectual property owned or controlled by Cleveland Clinic relating to certain ovarian cancer vaccine technology. This technology pertains to the use of vaccines for the treatment or prevention of ovarian cancers which express the extracellular domain of anti-Mullerian hormone receptor II (“AMHR2-ED”). In healthy tissue, this protein regulates growth and development of egg-containing follicles in the ovary. While expression of AMHR2-ED naturally and markedly declines after menopause, AMHR2-ED is expressed at high levels in the ovaries of postmenopausal women with ovarian cancer. Researchers at Cleveland Clinic believe that a vaccination targeting AMHR2-ED could prevent the occurrence of ovarian cancer. On July 2, 2020, we implemented a strategic realignment of our business and redirected resources to exclusively focus on the development of therapeutics and vaccines. Accordingly, we suspended operations of our subsidiary, Anixa Diagnostics Corporation, and the development of the Cchek™ artificial intelligence driven platform of non-invasive blood tests for the early detection of cancer. Over the next several quarters, we expect the development of our breast and ovarian cancer vaccines, our COVID-19 therapeutic discovery program and Certainty’s CAR-T technology to be the primary focus of the Company. As part of our legacy operations, the Company remains engaged in limited patent licensing activities regarding the Cchek™ liquid biopsy platform, as well as 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 nor do we expect these activities to require material financial resources or attention of senior management. Over the past several years, our revenue was derived from technology licensing and the sale of patented technologies, including revenue from the settlement of litigation. We have not generated any revenue to date from our therapeutics or vaccine programs. In addition, while we pursue our therapeutics and vaccine programs, we may also make investments in and form new companies to develop additional emerging technologies. We do not expect to begin generating revenue with respect to any of our current therapy or vaccine programs in the near term. We hope to achieve a profitable outcome by eventually licensing our technologies to large pharmaceutical companies that have the resources and infrastructure in place to manufacture, market and sell our technologies as therapeutics or vaccines. The eventual licensing of any of our technologies may take several years, and may depend on positive results from human clinical trials. Funding Based on currently available information as of January 7, 2021, we believe that our existing cash, cash equivalents, short-term investments and expected cash flows will be sufficient to fund our activities for the next twelve months. We have implemented a business model that conserves funds by collaborating with third parties to develop our technologies. However, our projections of future cash needs and cash flows may differ from actual results. 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, or if we elect to invest in or acquire a company or companies or new technology or technologies that are synergistic with or complementary to our technologies, we may be required to obtain more working capital. During fiscal year 2020, we raised approximately $9,266,000, net of expenses, through at-the-market equity offerings of 3,854,305 shares of common stock. This included approximately $427,000, net of expenses, through the sale of 112,238 shares of common stock in an at-the market equity offering which expired in November 2019 and approximately $8,839,000, net of expenses, through the sale of 3,742,067 shares of common stock in an at-the-market equity offering under which we may issue up to $50 million of common stock. Under our current at-the-market equity program which is currently effective and may remain available for us to use in the future, we may sell an additional approximately $40,811,000 of common stock. We may seek to obtain working capital during our fiscal year 2021 or thereafter through sales of our equity securities or through bank credit facilities or public or private debt from various financial institutions where possible. 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. 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, such failure 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements include the accounts of Anixa Biosciences, Inc. and its wholly and majority owned subsidiaries. All intercompany transactions have been eliminated. Noncontrolling Interest Noncontrolling interest represents Wistar’s equity ownership in Certainty and is presented as a component of equity. The following table sets forth the changes in noncontrolling interest for the two years ended October 31, 2020: Balance October 31, 2018 $ (251,377 ) Net loss attributable to noncontrolling interest (171,598 ) Balance October 31, 2019 (422,975 ) Net loss attributable to noncontrolling interest (74,008 ) Balance October 31, 2020 $ (496,983 ) Revenue Recognition Since fiscal 2016 our revenue has been derived solely from technology licensing and the sale of patented technologies. Revenue is recognized upon transfer of control of intellectual property rights and satisfaction of other contractual performance obligations to licensees in an amount that reflects the consideration we expect to receive. On November 1, 2018 we adopted Accounting Standards Update 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers” using the modified retrospective method. Upon adoption of ASU 2014-09 we are required to make certain judgments and estimates in connection with the accounting for revenue. Such areas may include determining the existence of a contract and identifying each party’s rights and obligations to transfer goods and services, identifying the performance obligations in the contract, determining the transaction price and allocating the transaction price to separate performance obligations, estimating the timing of satisfaction of performance obligations, determining whether a promise to grant a license is distinct from other promised goods or services and evaluating whether a license transfers to a customer at a point in time or over time. Our revenue arrangements provide for the payment of contractually determined, one-time, paid-up license 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 have no further obligations with respect to the granted intellectual property rights, including no obligation to maintain or upgrade the technology, or provide future support or services. Licensees obtained control of the intellectual property rights they have acquired upon execution of the agreement. Accordingly, the performance obligations from these agreements were satisfied and 100% of the revenue was recognized upon the execution of the agreements. Cost of Revenues Cost of revenues include the costs and expenses incurred in connection with our patent licensing and enforcement activities, including inventor royalties paid to original patent owners, contingent legal fees paid to external counsel, other patent-related legal expenses paid to external counsel, licensing and enforcement related research, consulting and other expenses paid to third-parties and the amortization of patent-related investment costs. These costs are included under the caption “Operating costs and expenses” in the accompanying consolidated statements of operations. Research and Development Expenses Research and development expenses, consisting primarily of employee compensation, payments to third parties for research and development activities and other direct costs associated with developing a platform for non-invasive blood tests for early detection of cancer, developing immuno-therapy drugs against cancer, development of our breast cancer vaccine, development of our ovarian cancer vaccine and development of anti-viral drug candidates for COVID-19, are expensed in the consolidated financial statements in the year incurred. Fair Value Measurements Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures” (“ASC 820”) defines fair value, establishes a framework for measuring fair value under U.S. generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. In accordance with ASC 820, 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 consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: Level 1 – Financial instruments 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 instruments 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 instruments 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 instrument. The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of October 31, 2020: Level 1 Level 2 Level 3 Total Money market funds: Cash and cash equivalents $ 3,902,292 $ - $ - $ 3,902,292 Certificates of deposit: Cash and cash equivalents 2,250,000 - - 2,250,000 Short term investments - 2,640,000 - 2,640,000 Total financial assets $ 6,152,292 $ 2,640,000 $ - $ 8,792,292 The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of October 31, 2019: Level 1 Level 2 Level 3 Total Money market funds: Cash and cash equivalents $ 2,706,944 $ - $ - $ 2,706,944 Certificates of deposit: Cash and cash equivalents 500,000 - 500,000 Short term investments - 2,350,000 - 2,350,000 Total financial assets $ 3,206,944 $ 2,350,000 $ - $ 5,556,944 Our non-financial assets that are measured on a non-recurring basis include our 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 accounts receivable, 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. Cash and Cash Equivalents Cash equivalents consists of highly liquid, short-term investments with original maturities of three months or less when purchased. Short-term Investments At October 31, 2020 and 2019, we had certificates of deposit with maturities greater than 90 days and less than 12 months when acquired of $2,640,000 and $2,350,000, respectively, that were classified as short-term investments and reported at fair value. Patents 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. No patent acquisition costs were capitalized during the years ended October 31, 2020 and 2019. We recorded patent amortization expense of $-0- and approximately $419,000, respectively, during the years ended October 31, 2020 and 2019. In evaluating the carrying amount of capitalized patents at January 31, 2019, we determined that a write-down of the carrying amount of approximately $419,000, to a carrying value of approximately $168,000, should be recorded as of January 31, 2019. The write-down was based on estimated undiscounted future cash flows of the capitalized patents compared to the carrying value. Our estimates of future cash flows was based on our most recent assessment of the market for potential licensees, as well as the status of ongoing negotiations with potential licensees. While we may be able to generate future cash flows from this patent portfolio, as of October 31, 2020 and 2019, we could not reasonably determine an estimate of any such future cash flows. The carrying value of capitalized patents is $-0- as of October 31, 2020 and 2019. Property and equipment We capitalized computers and test equipment used in our cancer diagnostics and therapeutics programs and charged depreciation on a straight-line basis over 60 months. Equipment purchases during the years ended October 31, 2020 and 2019 were approximately $16,000 and $175,000, respectively. We recorded depreciation expense of approximately $38,000 and 48,000, respectively, during the years ended October 31, 2020 and 2019. As a result of the suspension of operations of our subsidiary, Anixa Diagnostics Corporation, as discussed in Note 1, we recorded a loss on disposal of property and equipment of approximately $148,000 during the year ended October 31, 2020. Income Taxes 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. Stock-Based Compensation We maintain stock equity incentive plans under which we may grant non-qualified stock options, incentive stock options, stock appreciation rights, stock awards, performance awards and stock units to employees, non-employee directors and consultants. Stock Option Compensation Expense We account for stock options granted to employees and directors using the accounting guidance in ASC 718 “Stock Compensation” (“ASC 718”). In accordance with ASC 718, we estimate the fair value of service-based options on the date of grant, using the Black-Scholes pricing model. We recognize compensation expense for stock option awards over the requisite or implied service period of the grant. We recorded stock-based compensation expense, related to service-based stock options granted to employees and directors, of approximately $3,923,000 and $3,185,000, during the years ended October 31, 2020 and 2019, respectively. Included in stock-based compensation cost for service-based options granted to employees and directors during the years ended October 31, 2020 and 2019 was approximately $3,011,000 and $3,166,000, respectively, related to the amortization of compensation cost for stock options granted in prior periods but not yet vested. As of October 31, 2020, there was unrecognized compensation cost related to non-vested service-based stock options granted to employees and directors of approximately $2,605,000, which will be recognized over a weighted-average period of 1.5 years. For stock options granted to employees that vest based on market conditions, such as the trading price of the Company’s common stock exceeding certain price targets, we use a Monte Carlo Simulation in estimating the fair value at grant date and recognize compensation cost over the implied service period (median time to vest). On May 8, 2018, we issued market condition options to purchase 1,500,000 shares of common stock, to our Chairman, President and Chief Executive Officer, vesting at target trading prices of $5.00 to $8.00 per share before May 31, 2021, with implied service periods of three to seven months. The assumptions used in the Monte Carlo Simulation were stock price on date of grant and exercise price of $3.70, contract term of 10 years, expected volatility of 119.6% and risk-free interest rate of 2.97%. We recorded stock-based compensation expense related to market condition stock options granted to employees of $-0- and approximately $376,000 during the years ended October 31, 2020 and 2019, respectively, which included $-0- and approximately $376,000, respectively, of expense related to the amortization of compensation cost for stock options granted in prior periods but not yet vested. As of October 31, 2020, there was no unrecognized compensation cost related to market condition stock options. On November 1, 2018 we adopted Accounting Standards Update 2018-07 (“ASU 2018-07”) for stock options granted to consultants. Upon adoption of ASU 2018-07 we estimated the fair value of unvested service-based and performance-based stock options at the date of adoption, using the Black-Scholes pricing model. Subsequent to adoption of ASU 2018-07, future grants to consultants are measured at the grant date, based on the fair value of the award using the Black-Scholes pricing model, consistent with our policy for grants to employees and directors. In prior periods, in accordance with U.S. GAAP, we estimated the fair value of service-based and performance-based stock options granted to consultants at each reporting period using the Black-Scholes pricing model. We recognize the fair value of stock options granted to consultants as consulting expense over the requisite or implied service period of the grant. We recorded consulting expense, related to service based and performance-based stock options granted to consultants, during the years ended October 31, 2020 and 2019 of approximately $215,000 and $113,000, respectively. Included in stock-based consulting expense for the years ended October 31, 2020 and 2019 was approximately $123,000 and $99,000, respectively, related to compensation cost for stock options granted in prior periods but not yet vested. As of October 31, 2020, there was unrecognized consulting expense related to non-vested stock options granted to consultants, related to service-based options of approximately $340,000, which will be recognized over a weighted-average period of --1.9 years. Fair Value Determination We use the Black-Scholes pricing model in estimating the fair value of stock options granted to employees, directors and consultants which vest over a specific period of time. The stock options we granted during each of the years ended October 31, 2020 and 2019 consisted of awards with 5-year and 10-year terms that vest over 12 to 36 months. The following weighted average assumptions were used in estimating the fair value of stock options granted during the years ended October 31, 2020 and 2019: For the Year 2020 2019 Weighted average fair value at grant date $ 2.97 $ 3.87 Valuation assumptions: Expected life (years) 5.86 5.47 Expected volatility 114.22 % 116.72 % Risk-free interest rate 1.45 % 1.61 % Expected dividend yield 0 % 0 % The expected term of stock options represents the weighted average period the stock options are expected to remain outstanding. For employees and directors, we use the simplified method, which is a weighted average of the vesting term and contractual term, to determine expected term. The simplified method was adopted since we do not believe that historical experience is representative of future performance because of the impact of the changes in our operations and the change in terms from historical options which vested immediately to terms including vesting periods of up to three years. For consultants we use the contract term for expected term. Under the Black-Scholes pricing model, we estimated the expected volatility of our shares of common stock based upon the historical volatility of our share price over a period of time equal to the expected term of the options. We estimated the risk-free interest rate based on the implied yield available on the applicable grant date of a U.S. Treasury note with a term equal to the expected term of the underlying grants. We made the dividend yield assumption based on our history of not paying dividends and our expectation not to pay dividends in the future. Under ASC 718, the amount of stock-based compensation expense recognized is based on the portion of the awards that are ultimately expected to vest. Accordingly, if deemed necessary, we reduce the fair value of the stock option awards for expected forfeitures, which are forfeitures of the unvested portion of surrendered options. Based on our historical experience and future expectations, we have not reduced the amount of stock-based compensation expenses for anticipated forfeitures. We will reconsider use of the Black-Scholes pricing model if additional information becomes available in the future that indicates another model would be more appropriate. If factors change and we employ different assumptions in the application of ASC 718 in future periods, the compensation expense that we record under ASC 718 may differ significantly from what we have recorded in the current period. Stock Award Compensation Expense We account for stock awards granted to employees and directors in accordance with ASC 718. On May 8, 2018, a restricted stock award of 1,500,000 shares of common stock was granted to our Chairman, President and Chief Executive Officer. The restricted stock award vests in its entirety upon achievement of a target trading price of $11.00 per share of the Company’s common stock before May 31, 2021. For restricted stock awards vesting upon achievement of a price target of our common stock we use a Monte Carlo Simulation in estimating the fair value at grant date and recognize compensation cost over the implied service period (median time to vest). The assumptions used in the Monte Carlo Simulation were stock price on date of grant of $3.70, contract term of 3.06 years, expected volatility of 128.8% and risk-free interest rate of 2.66%. During the years ended October 31, 2020 and 2019 we recorded compensation expense related to the restricted stock award of $-0- and approximately $1,954,000, respectively. We did not issue any stock awards during the years ended October 31, 2020 and 2019. As of October 31, 2020, there was no unrecognized compensation cost related to the restricted stock awards. Warrants For warrants granted to consultants for services rendered we estimate the fair value using the Black-Scholes pricing model on the date of grant. During the years ended October 31, 2020 and 2019 we recorded consulting expense, based on the fair value, of $-0- and approximately $85,000, respectively, for warrants granted to consultants. Net Loss Per Share of Common Stock In accordance with ASC 260, “Earnings Per Share”, basic net loss per common share (“Basic EPS”) is computed by dividing net loss by the weighted average number of common shares outstanding. Diluted net loss per common share (“Diluted EPS”) is computed by dividing net loss by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. Diluted EPS for all years 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 years ended October 31, 2020 and 2019 were options to purchase 7,952,195 and 7,632,068 shares, respectively, and warrants to purchase 560,000 shares and 525,000 shares, respectively. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are used for, but not limited to, determining stock-based compensation, asset impairment evaluations, tax assets and liabilities, license fee revenue, the allowance for doubtful accounts, depreciation lives and other contingencies. Actual results could differ from those estimates. Effect of Recently Issued Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02 (“ASU 2016-02”) Accounting Standards Codification Topic 842, Leases (“ASC 842”), which supersedes Topic 840, Leases, and which requires lessees to recognize most leases on the balance sheet. The new lease standard does not substantially change lessor accounting. For public companies, the standard was effective for the first interim reporting period within annual periods beginning after December 15, 2018, although early adoption was permitted. Lessees and lessors were 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. In July 2018, FASB issued ASU 2018-11, Leases, which provides an additional transition option for an entity to apply the provisions of ASC 842 by recognizing a cumulative effect adjustment at the effective date of adoption without adjusting the prior comparative periods presented. The requirements of this standard include a significant increase in required disclosures. The Company adopted ASU 2016-02 on November 1, 2019. The adoption of this standard did not have a material impact on our consolidated financial statements. See Note 5 regarding the accounting and disclosures related to our office lease. Concentration of Credit Risks Financial instruments that potentially subject us to concentrations of credit risk are cash equivalents, short-term investments and accounts receivable. Cash equivalents are primarily highly rated money market funds. Short-term investments are certificates of deposit within federally insured limits. Where applicable, management reviews our accounts receivable and other receivables for potential doubtful accounts and maintains an allowance for estimated uncollectible amounts. Our policy is to write-off uncollectable amounts at the time it is determined that collection will not occur. One licensee accounted for 100% of revenues from patent licensing activities during fiscal year 2019. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Oct. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 3. ACCRUED EXPENSES Accrued liabilities consist of the following as of: October 31, 2020 2019 Payroll and related expenses 415,331 72,850 Accrued royalty and contingent legal fees 449,691 449,691 Accrued collaborative research and license expense 30,000 371,710 Accrued other 6,003 1,247 $ 901,025 $ 895,498 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Oct. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | 4. SHAREHOLDERS’ EQUITY Stock Option Plans During the year ended October 31, 2020, we had three stock option plans: the Anixa Biosciences, Inc. 2003 Share Incentive Plan (the “2003 Share Plan”), the Anixa Biosciences, Inc. 2010 Share Incentive Plan (the “2010 Share Plan”) and the Anixa Biosciences, Inc. 2018 Share Incentive Plan (the “2018 Share Plan”) which were adopted by our Board of Directors on April 21, 2003, July 14, 2010 and January 25, 2018, respectively. The 2018 Share Plan was approved by our shareholders on March 29, 2018 During the years ended October 31, 2020 and 2019, stock options to purchase 51,100 and 47,600 shares of common stock, respectively, were exercised with aggregate proceeds of approximately $122,000 and $122,000, respectively. 2003 Plan The 2003 Share Plan provided for the grant of nonqualified stock options, stock appreciation rights, stock awards, performance awards and stock units to employees, directors and consultants. The exercise price with respect to all of the options granted under the 2003 Share Plan since its inception was equal to the fair market value of the underlying common stock at the grant date. In accordance with the provisions of the 2003 Share Plan, the plan terminated with respect to the grant of future options on April 21, 2013. Information regarding the 2003 Share Plan for the two years ended October 31, 2020 is as follows: Shares Weighted Aggregate Value Options Outstanding at October 31, 2018 12,000 $ 2.77 Exercised (11,600 ) $ 2.94 Options Outstanding at October 31, 2019 400 $ 17.00 Forfeited/Expired (400 ) $ 17.00 Options Outstanding and Exercisable at October 31, 2020 - $ -0- $ -0- 2010 Plan The 2010 Share Plan provides for the grant of nonqualified stock options, stock appreciation rights, stock awards, performance awards and stock units to employees, directors and consultants. On the first business day of each calendar year the maximum aggregate number of shares available for future issuance is replenished such that 800,000 shares are available. The exercise price with respect to all of the options granted under the 2010 Share Plan was equal to the fair market value of the underlying common stock at the grant date. In accordance with the provisions of the 2010 Share Plan, the plan terminated with respect to the grant of future options on July 14, 2020. Information regarding the 2010 Share Plan for the two years ended October 31, 2020 is as follows: Shares Weighted Aggregate Intrinsic Value Options Outstanding at October 31, 2018 2,131,868 $ 2.11 Granted 10,000 $ 3.64 Exercised (32,000 ) $ 2.27 Forfeited (111,200 ) $ 3.89 Options Outstanding at October 31, 2019 1,998,668 $ 2.80 Exercised (51,100 ) $ 2.39 Forfeited/Expired (40,034 ) $ 2.34 Options Outstanding at October 31, 2020 1,907,534 $ 2.82 $ 327,340 Options Exercisable at October 31, 2020 1,791,284 $ 2.84 $ 280,878 The following table summarizes information about stock options outstanding under the 2010 Share Plan as of October 31, 2020: Options Outstanding Options Exercisable Range of Number Weighted (in years) Weighted Number Weighted (in years) Weighted $ 0.67 - $2.30 549,000 5.45 $ 1.57 507,750 5.35 $ 1.62 $ 2.58 - $3.13 834,000 2.84 $ 2.79 834,000 3.13 $ 2.79 $ 3.46 - $5.75 524,534 7.25 $ 4.17 449,534 7.17 $ 4.49 2018 Plan The 2018 Share Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, stock awards, performance awards and stock units to employees, directors and consultants. On the first business day of each calendar year the maximum aggregate number of shares available for future issuance is replenished such that 2,000,000 shares are available. The exercise price with respect to all of the options granted under the 2018 Share Plan was equal to the fair market value of the underlying common stock at the grant date. As of October 31, 2020, the 2018 Share Plan had 2,388,339 shares available for future grants. Information regarding the 2018 Share Plan for the two years ended October 31, 2020 is as follows: Shares Weighted Aggregate Intrinsic Value Options Outstanding at October 31, 2018 3,482,000 $ 3.73 Granted 465,000 $ 3.87 Exercised (4,000 ) $ 3.84 Forfeited/Expired (8,000 ) $ 3.84 Options Outstanding at October 31, 2019 3,935,000 $ 3.74 Granted 1,045,000 $ 3.56 Forfeited/Expired (633,339 ) $ 3.83 Options Outstanding at October 31, 2020 4,346,661 $ 3.69 $ -0- Options Exercisable at October 31, 2020 2,456,109 $ 3.74 $ -0- The following table summarizes information about stock options outstanding under the 2018 Share Plan as of October 31, 2020: Options Outstanding Options Exercisable Prices Number Weighted (in years) Weighted Number Weighted (in years) Weighted $ 2.09 - $3.70 3,247,781 7.70 $ 3.62 1,861,948 7.58 $ 3.68 $ 3.84 - $4.61 1,098,880 8.49 $ 3.90 594,161 8.25 $ 3.92 Non-Plan Options In addition to options granted under the 2003 Share Plan, the 2010 Share Plan and the 2018 Share Plan, during the years ended October 31, 2012 and 2013, the Board of Directors approved the grant of stock options to certain employees and directors (the “Non-Plan Options”). Information regarding the Non-Plan Options for the two years ended October 31, 2020 is as follows: Shares Weighted Aggregate Options Outstanding at October 31, 2018 1,780,000 $ 1.58 Forfeited (82,000 ) $ 5.32 Options Outstanding and Exercisable at October 31, 2019 and 2020 1,698,000 $ 2.58 $ -0- The following table summarizes information about outstanding and exercisable Non-Plan Options as of October 31, 2020: Range of Number and Exercisable Weighted Average (in years) Weighted Price $ 2.58 1,698,000 1.75 $ 2.58 Re-Priced Stock Options On August 21, 2019, the Company entered into a settlement agreement in connection with a putative shareholder derivative complaint filed in the Court of Chancery of the State of Delaware on November 5, 2018. Pursuant to the settlement agreement the Company agreed, among other things, to reprice certain stock options that were repriced on September 6, 2017 to $0.67 to the option price immediately prior to that repricing. Accordingly, 4,000 stock options in the 2003 Share Plan with exercise prices of $2.58, 878,400 stock options in the 2010 Share Plan with exercise prices ranging from $0.96 to $5.30 and 1,046,000 Non-Plan Options with exercise prices of $2.58, were re-priced to the option price immediately prior to the September 6, 2017 repricing. In addition, certain individual defendants in the derivative complaint who had exercised stock options that were re-priced in the 2017 re-pricing and sold the underlying shares paid approximately $45,000 to the Company representing a portion of the amount received for those shares. Employee Stock Purchase Plan The Company maintains the Anixa Biosciences, Inc. Employee Stock Purchase Plan which permits eligible employees to purchase shares at not less than 85% of the market value of the Company’s common stock on the offering date or the purchase date of the applicable offering period, whichever is lower. The plan was adopted by our Board of Directors on August 13, 2018 and approved by our shareholders on September 27, 2018. During the years ended October 31, 2020 and 2019, employees purchased 11,536 and 11,650 shares, respectively, with aggregate proceeds of approximately $18,000 and $39,000, respectively. Common Stock Purchase Warrants During the year ended October 31, 2019 we issued a warrant, expiring on November 1, 2023, to purchase 25,000 shares of common stock at $4.04 per share, vesting over 12 months, to a consultant for investor relations services. On November 1, 2019 the warrant was exchanged for a stock option with the same terms as the warrant. We recorded consulting expense of approximately $85,000 during the year ended October 31, 2019, based on the fair value of the warrant recognized on a straight-line basis over the vesting period. On October 30, 2020 we issued a warrant, expiring on October 30, 2025, to purchase 60,000 shares of common stock at $2.06 per share, vesting over five months, to a consultant for investor relations services. Information regarding the Company’s warrants for the two years ended October 31, 2020 is as follows: Shares Weighted Warrants Outstanding at October 31, 2018 829,400 $ 7.04 Issued 25,000 $ 4.04 Expired (329,400 ) $ 10.09 Warrants Outstanding at October 31, 2019 525,000 $ 4.98 Issued 60,000 $ 2.06 Exchanged (25,000 ) $ 4.04 Warrants Outstanding at October 31, 2020 560,000 $ 4.71 Warrants Exercisable at October 31, 2020 510,000 $ 4.97 |
Leases
Leases | 12 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Leases | 5. LEASES We lease approximately 2,000 square feet of office space at 3150 Almaden Expressway, San Jose, California (our principal executive offices) from an unrelated party pursuant to an operating lease that expires September 30, 2021. Our base rent is approximately $5,000 per month and the lease provides for annual increases of approximately 3% and an escalation clause for increases in certain operating costs. Under an operating lease that expired on May 31, 2019 we also leased approximately 3,000 square feet of office space at 12100 Wilshire Boulevard, Los Angeles, California (our former executive offices) from an unrelated party. As of August 1, 2018, we had subleased these facilities. Rent expense was approximately $64,000 and $60,000, respectively, for the years ended October 31, 2020 and 2019. On November 1, 2019, the Company adopted ASC 842, which increases transparency and comparability by recognizing a lessee’s rights and obligations resulting from leases by recording them on the balance sheet as lease assets and lease liabilities. The new guidance requires the recognition of the right-of-use (“ROU”) assets and related operating lease liabilities on the balance sheet. The Company adopted the new guidance using the modified retrospective approach on November 1, 2019. As a result, the consolidated balance sheet as of October 31, 2019 was not restated and is not comparative. The adoption of ASC 842 resulted in the recognition of ROU assets of $106,221, and lease liabilities for operating leases of $106,299 on the Company’s consolidated balance sheet as of November 1, 2019. The difference between the ROU assets and the operating lease liability represents the difference between the lease cost and the amount of rent paid in October 2019. The Company elected the package of practical expedients permitted within the standard, which allow an entity to forgo reassessing (i) whether a contract contains a lease, (ii) classification of leases, and (iii) whether capitalized costs associated with a lease meet the definition of initial direct costs. Also, the Company elected the expedient allowing an entity to use hindsight to determine the lease term and impairment of ROU assets and the expedient to allow the Company to not have to separate lease and non-lease components. The Company has also elected the short-term lease accounting policy under which Anixa would not recognize a lease liability or ROU asset for any lease that at the commencement date has a lease term of twelve months or less and does not include a purchase option that Anixa is more than reasonably certain to exercise. For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments. The remaining 11-month lease term as of October 31, 2020 for the Company’s lease includes the noncancelable period of the lease. The lease does not contain a Company option to extend the lease or an option to extend the lease controlled by the lessor. All ROU assets are reviewed for impairment. Balance sheet information related to the Company’s lease is presented below: Balance Sheet October 31, November 1, October 31, Operating Lease: Right-of-use asset Operating lease right- of-use asset $ 54,340 $ 106,221 $ - Right-of-use liability, Operating lease liability 55,198 51,101 - Right-of-use liability, Not presented - 55,198 - As of October 31, 2020, the annual minimum lease payments of our operating lease liability were as follows: Operating Leases Fiscal year 2021 future minimum payments, undiscounted $ 59,136 Less: Imputed interest 3,938 Present value of future minimum lease payments $ 55,198 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. COMMITMENTS AND CONTINGENCIES Litigation Matters Other than lawsuits we bring to enforce our patent rights, we are not involved in any litigation or other legal proceedings and management is not aware of any pending litigation or legal proceeding against us that would have a material adverse effect upon our results of operations or financial condition. Collaborative Research and License Commitments As of October 31, 2020, our commitments under the collaborative and license agreements with Moffitt, Wistar, Cleveland Clinic and OntoChem for the year ending October 31, 2021 were approximately $188,000. |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. INCOME TAXES Income tax provision (benefit) consists of the following: Year Ended October 31, 2020 2019 Federal: Current $ - $ - Deferred 404,000 (948,000 ) State: Current - - Deferred (800,000 ) (995,000 ) Adjustment to valuation allowance related to net deferred tax assets 396,000 1,943,000 $ - $ - The tax effects of temporary differences that give rise to significant portions of the deferred tax asset, net, at October 31, 2020 and 2019, are as follows: October 31, 2020 2019 Long-term deferred tax assets: Federal and state NOL and tax credit carryforwards $ 19,727,000 $ 19,593,000 Deferred compensation 8,009,000 7,619,000 Intangibles 828,000 943,000 Other 192,000 205,000 Subtotal 28,756,000 28,360,000 Less: valuation allowance (28,756,000 ) (28,360,000 ) Deferred tax asset, net $ - $ - As of October 31, 2020, we had tax net operating loss and tax credit carryforwards of approximately $81,316,000 and $1,545,000, respectively, available within statutory limits (expiring at various dates between 2021 and 2040), to offset any future regular Federal corporate taxable income and taxes payable. If the tax benefits relating to deductions of option holders’ income are ultimately realized, those benefits will be credited directly to additional paid-in capital. Certain changes in stock ownership can result in a limitation on the amount of net operating loss and tax credit carryovers that can be utilized each year. As of October 31, 2020, management has not determined the extent of any such limitations, if any. We had California tax net operating loss carryforwards of approximately $26,671,000 as of October 31, 2020, available within statutory limits (expiring at various dates between 2021 and 2040), to offset future corporate taxable income and taxes payable, if any, under certain computations of such taxes. We have provided a valuation allowance against our deferred tax asset due to our current and historical pre-tax losses and the uncertainty regarding their realizability. The primary differences from the Federal statutory rate of 21% and the effective rate of 0% is attributable to expiring net operating losses and a change in the valuation allowance. The following is a reconciliation of income taxes at the Federal statutory tax rate to income tax expense (benefit): Year Ended October 31, 2020 2019 Income tax benefit at U.S. Federal statutory income tax rate $ (2,119,000 ) (21.00 )% $ (2,482,000 ) (21.00 )% State income taxes (705,000 ) (6.98 )% (1,045,000 ) (8.84 )% Permanent differences 32,000 0.32 % 30,000 0.25 % Expiring net operating losses, credits and other 2,396,000 23.74 % 1,554,000 13.15 % Change in valuation allowance 396,000 3.92 % 1,943,000 16.44 % Income tax provision $ - 0.00 % $ - 0.00 % During the two fiscal years ended October 31, 2020, we incurred no Federal and no State income taxes. We have no unrecognized tax benefits as of October 31, 2020 and 2019 and we account for interest and penalties related to income tax matters in general and administrative expenses. Tax years to which our net operating losses relate remain open to examination by Federal and California authorities to the extent which the net operating losses have yet to be utilized. |
Segment Information
Segment Information | 12 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 8. SEGMENT INFORMATION We follow the accounting guidance of ASC 280 “Segment Reporting” (“ASC 280”). Reportable operating segments are determined based on the management approach. The management approach, as defined by ASC 280, is based on the way that the chief operating decision-maker organizes the segments within an enterprise for making operating decisions and assessing performance. While our results of operations are primarily reviewed on a consolidated basis, the chief operating decision-maker manages the enterprise in five reportable segments, each with different operating and potential revenue generating characteristics: (i) CAR-T Therapeutics, (ii) Cancer Vaccines, (iii) Anti-Viral Therapeutics, (iv) Cancer Diagnostics and (v) our legacy Patent Licensing activities. The following represents selected financial information for our segments for the years ended October 31, 2020 and 2019: Year Ended October 31, 2020 2019 Net loss: CAR-T Therapeutics $ (2,241,443 ) $ (5,074,868 ) Cancer Vaccines (828,136 ) (677,450 ) Anti-Viral Therapeutics (1,168,969 ) - Cancer Diagnostics (5,836,594 ) (5,196,471 ) Patent Licensing (17,221 ) (869,863 ) Total $ (10,092,363 ) $ (11,818,652 ) Total operating costs and expenses $ 9,978,202 $ 12,140,005 Less non-cash share-based compensation (4,137,460 ) (5,713,746 ) Operating costs and expenses excluding non-cash share-based compensation $ 5,840,742 $ 6,426,259 Operating costs and expenses excluding non-cash share based compensation: CAR-T Therapeutics $ 1,141,542 $ 2,212,090 Cancer Vaccines 365,681 458,392 Anti-Viral Therapeutics 739,140 - Cancer Diagnostics 3,581,377 2,689,761 Patent Licensing 13,002 1,066,016 Total $ 5,840,742 $ 6,426,259 October 31, 2020 2019 Total assets: CAR-T Therapeutics $ 2,988,124 $ 2,382,460 Cancer Vaccines 946,923 489,881 Anti-Viral Therapeutics 2,464,361 - Cancer Diagnostics 2,869,529 2,921,784 Patent Licensing 184,027 499,568 Total $ 9,452,964 $ 6,293,693 Operating costs and expenses excluding non-cash share-based compensation is the measurement the chief operating decision-maker uses in managing the enterprise. The Company’s consolidated revenue of $250,000, inventor royalties, contingent legal fees, litigation and licensing expense of $166,250, amortization of patents of $418,750 and impairment in carrying amount of patent assets of $418,750 for the year ended October 31, 2019 were solely related to our patent licensing segment. All our revenue is generated domestically (United States) based on the country in which the licensee is located. |
Impact of Coronavirus Pandemic
Impact of Coronavirus Pandemic | 12 Months Ended |
Oct. 31, 2020 | |
Impact Of Coronavirus Pandemic | |
Impact of Coronavirus Pandemic | 9. IMPACT OF CORONAVIRUS PANDEMIC On March 10, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic. The virus and actions taken to mitigate its spread have had and are expected to continue to have a broad adverse impact on the economies and financial markets of many countries, including the geographical areas in which the Company operates and conducts its business and which the Company’s partners operate and conduct their business. We are currently following the recommendations of local health authorities to minimize exposure risk for our team members and visitors. However, the scale and scope of this pandemic is unknown and the duration of the business disruption and related financial impact cannot be reasonably estimated at this time. While we have implemented specific business continuity plans to reduce the potential impact of COVID-19, there is no guarantee that our continuity plans will be successful. We have already experienced certain disruptions to our business such as temporary closure of our offices and similar disruptions have occurred for our partners. Specifically, the outbreak has caused shutdowns of the laboratories and other service providers that we rely on to develop our programs, and those laboratories and service providers that have been operating or that have begun operating recently have been doing so with more limited capacity due to social distancing requirements. As a result, our progress has been slowed and there is no assurance that we will be able to meet our previously announced timelines regarding the advancement of our programs. The extent to which COVID-19 or any other health epidemic may impact our results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19 and the actions to contain COVID-19 or treat its impact, among others. Accordingly, COVID-19 could have a material adverse effect on our business, results of operations, financial condition and prospects. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2020 | |
Summary Of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Anixa Biosciences, Inc. and its wholly and majority owned subsidiaries. All intercompany transactions have been eliminated. |
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interest represents Wistar’s equity ownership in Certainty and is presented as a component of equity. The following table sets forth the changes in noncontrolling interest for the two years ended October 31, 2020: Balance October 31, 2018 $ (251,377 ) Net loss attributable to noncontrolling interest (171,598 ) Balance October 31, 2019 (422,975 ) Net loss attributable to noncontrolling interest (74,008 ) Balance October 31, 2020 $ (496,983 ) |
Revenue Recognition | Revenue Recognition Since fiscal 2016 our revenue has been derived solely from technology licensing and the sale of patented technologies. Revenue is recognized upon transfer of control of intellectual property rights and satisfaction of other contractual performance obligations to licensees in an amount that reflects the consideration we expect to receive. On November 1, 2018 we adopted Accounting Standards Update 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers” using the modified retrospective method. Upon adoption of ASU 2014-09 we are required to make certain judgments and estimates in connection with the accounting for revenue. Such areas may include determining the existence of a contract and identifying each party’s rights and obligations to transfer goods and services, identifying the performance obligations in the contract, determining the transaction price and allocating the transaction price to separate performance obligations, estimating the timing of satisfaction of performance obligations, determining whether a promise to grant a license is distinct from other promised goods or services and evaluating whether a license transfers to a customer at a point in time or over time. Our revenue arrangements provide for the payment of contractually determined, one-time, paid-up license 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 have no further obligations with respect to the granted intellectual property rights, including no obligation to maintain or upgrade the technology, or provide future support or services. Licensees obtained control of the intellectual property rights they have acquired upon execution of the agreement. Accordingly, the performance obligations from these agreements were satisfied and 100% of the revenue was recognized upon the execution of the agreements. |
Cost of Revenues | Cost of Revenues Cost of revenues include the costs and expenses incurred in connection with our patent licensing and enforcement activities, including inventor royalties paid to original patent owners, contingent legal fees paid to external counsel, other patent-related legal expenses paid to external counsel, licensing and enforcement related research, consulting and other expenses paid to third-parties and the amortization of patent-related investment costs. These costs are included under the caption “Operating costs and expenses” in the accompanying consolidated statements of operations. |
Research and Development Expenses | Research and Development Expenses Research and development expenses, consisting primarily of employee compensation, payments to third parties for research and development activities and other direct costs associated with developing a platform for non-invasive blood tests for early detection of cancer, developing immuno-therapy drugs against cancer, development of our breast cancer vaccine, development of our ovarian cancer vaccine and development of anti-viral drug candidates for COVID-19, are expensed in the consolidated financial statements in the year incurred. |
Fair Value Measurements | Fair Value Measurements Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures” (“ASC 820”) defines fair value, establishes a framework for measuring fair value under U.S. generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. In accordance with ASC 820, 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 consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: Level 1 – Financial instruments 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 instruments 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 instruments 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 instrument. The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of October 31, 2020: Level 1 Level 2 Level 3 Total Money market funds: Cash and cash equivalents $ 3,902,292 $ - $ - $ 3,902,292 Certificates of deposit: Cash and cash equivalents 2,250,000 - - 2,250,000 Short term investments - 2,640,000 - 2,640,000 Total financial assets $ 6,152,292 $ 2,640,000 $ - $ 8,792,292 The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of October 31, 2019: Level 1 Level 2 Level 3 Total Money market funds: Cash and cash equivalents $ 2,706,944 $ - $ - $ 2,706,944 Certificates of deposit: Cash and cash equivalents 500,000 - 500,000 Short term investments - 2,350,000 - 2,350,000 Total financial assets $ 3,206,944 $ 2,350,000 $ - $ 5,556,944 Our non-financial assets that are measured on a non-recurring basis include our 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 accounts receivable, 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consists of highly liquid, short-term investments with original maturities of three months or less when purchased. |
Short-term Investment | Short-term Investments At October 31, 2020 and 2019, we had certificates of deposit with maturities greater than 90 days and less than 12 months when acquired of $2,640,000 and $2,350,000, respectively, that were classified as short-term investments and reported at fair value. |
Patents | Patents 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. No patent acquisition costs were capitalized during the years ended October 31, 2020 and 2019. We recorded patent amortization expense of $-0- and approximately $419,000, respectively, during the years ended October 31, 2020 and 2019. In evaluating the carrying amount of capitalized patents at January 31, 2019, we determined that a write-down of the carrying amount of approximately $419,000, to a carrying value of approximately $168,000, should be recorded as of January 31, 2019. The write-down was based on estimated undiscounted future cash flows of the capitalized patents compared to the carrying value. Our estimates of future cash flows was based on our most recent assessment of the market for potential licensees, as well as the status of ongoing negotiations with potential licensees. While we may be able to generate future cash flows from this patent portfolio, as of October 31, 2020 and 2019, we could not reasonably determine an estimate of any such future cash flows. The carrying value of capitalized patents is $-0- as of October 31, 2020 and 2019. |
Property and Equipment | Property and equipment We capitalized computers and test equipment used in our cancer diagnostics and therapeutics programs and charged depreciation on a straight-line basis over 60 months. Equipment purchases during the years ended October 31, 2020 and 2019 were approximately $16,000 and $175,000, respectively. We recorded depreciation expense of approximately $38,000 and 48,000, respectively, during the years ended October 31, 2020 and 2019. As a result of the suspension of operations of our subsidiary, Anixa Diagnostics Corporation, as discussed in Note 1, we recorded a loss on disposal of property and equipment of approximately $148,000 during the year ended October 31, 2020. |
Income Taxes | Income Taxes 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. |
Share-Based Compensation | Stock-Based Compensation We maintain stock equity incentive plans under which we may grant non-qualified stock options, incentive stock options, stock appreciation rights, stock awards, performance awards and stock units to employees, non-employee directors and consultants. |
Stock Option Compensation Expense | Stock Option Compensation Expense We account for stock options granted to employees and directors using the accounting guidance in ASC 718 “Stock Compensation” (“ASC 718”). In accordance with ASC 718, we estimate the fair value of service-based options on the date of grant, using the Black-Scholes pricing model. We recognize compensation expense for stock option awards over the requisite or implied service period of the grant. We recorded stock-based compensation expense, related to service-based stock options granted to employees and directors, of approximately $3,923,000 and $3,185,000, during the years ended October 31, 2020 and 2019, respectively. Included in stock-based compensation cost for service-based options granted to employees and directors during the years ended October 31, 2020 and 2019 was approximately $3,011,000 and $3,166,000, respectively, related to the amortization of compensation cost for stock options granted in prior periods but not yet vested. As of October 31, 2020, there was unrecognized compensation cost related to non-vested service-based stock options granted to employees and directors of approximately $2,605,000, which will be recognized over a weighted-average period of 1.5 years. For stock options granted to employees that vest based on market conditions, such as the trading price of the Company’s common stock exceeding certain price targets, we use a Monte Carlo Simulation in estimating the fair value at grant date and recognize compensation cost over the implied service period (median time to vest). On May 8, 2018, we issued market condition options to purchase 1,500,000 shares of common stock, to our Chairman, President and Chief Executive Officer, vesting at target trading prices of $5.00 to $8.00 per share before May 31, 2021, with implied service periods of three to seven months. The assumptions used in the Monte Carlo Simulation were stock price on date of grant and exercise price of $3.70, contract term of 10 years, expected volatility of 119.6% and risk-free interest rate of 2.97%. We recorded stock-based compensation expense related to market condition stock options granted to employees of $-0- and approximately $376,000 during the years ended October 31, 2020 and 2019, respectively, which included $-0- and approximately $376,000, respectively, of expense related to the amortization of compensation cost for stock options granted in prior periods but not yet vested. As of October 31, 2020, there was no unrecognized compensation cost related to market condition stock options. On November 1, 2018 we adopted Accounting Standards Update 2018-07 (“ASU 2018-07”) for stock options granted to consultants. Upon adoption of ASU 2018-07 we estimated the fair value of unvested service-based and performance-based stock options at the date of adoption, using the Black-Scholes pricing model. Subsequent to adoption of ASU 2018-07, future grants to consultants are measured at the grant date, based on the fair value of the award using the Black-Scholes pricing model, consistent with our policy for grants to employees and directors. In prior periods, in accordance with U.S. GAAP, we estimated the fair value of service-based and performance-based stock options granted to consultants at each reporting period using the Black-Scholes pricing model. We recognize the fair value of stock options granted to consultants as consulting expense over the requisite or implied service period of the grant. We recorded consulting expense, related to service based and performance-based stock options granted to consultants, during the years ended October 31, 2020 and 2019 of approximately $215,000 and $113,000, respectively. Included in stock-based consulting expense for the years ended October 31, 2020 and 2019 was approximately $123,000 and $99,000, respectively, related to compensation cost for stock options granted in prior periods but not yet vested. As of October 31, 2020, there was unrecognized consulting expense related to non-vested stock options granted to consultants, related to service-based options of approximately $340,000, which will be recognized over a weighted-average period of --1.9 years. |
Fair Value Determination | Fair Value Determination We use the Black-Scholes pricing model in estimating the fair value of stock options granted to employees, directors and consultants which vest over a specific period of time. The stock options we granted during each of the years ended October 31, 2020 and 2019 consisted of awards with 5-year and 10-year terms that vest over 12 to 36 months. The following weighted average assumptions were used in estimating the fair value of stock options granted during the years ended October 31, 2020 and 2019: For the Year 2020 2019 Weighted average fair value at grant date $ 2.97 $ 3.87 Valuation assumptions: Expected life (years) 5.86 5.47 Expected volatility 114.22 % 116.72 % Risk-free interest rate 1.45 % 1.61 % Expected dividend yield 0 % 0 % The expected term of stock options represents the weighted average period the stock options are expected to remain outstanding. For employees and directors, we use the simplified method, which is a weighted average of the vesting term and contractual term, to determine expected term. The simplified method was adopted since we do not believe that historical experience is representative of future performance because of the impact of the changes in our operations and the change in terms from historical options which vested immediately to terms including vesting periods of up to three years. For consultants we use the contract term for expected term. Under the Black-Scholes pricing model, we estimated the expected volatility of our shares of common stock based upon the historical volatility of our share price over a period of time equal to the expected term of the options. We estimated the risk-free interest rate based on the implied yield available on the applicable grant date of a U.S. Treasury note with a term equal to the expected term of the underlying grants. We made the dividend yield assumption based on our history of not paying dividends and our expectation not to pay dividends in the future. Under ASC 718, the amount of stock-based compensation expense recognized is based on the portion of the awards that are ultimately expected to vest. Accordingly, if deemed necessary, we reduce the fair value of the stock option awards for expected forfeitures, which are forfeitures of the unvested portion of surrendered options. Based on our historical experience and future expectations, we have not reduced the amount of stock-based compensation expenses for anticipated forfeitures. We will reconsider use of the Black-Scholes pricing model if additional information becomes available in the future that indicates another model would be more appropriate. If factors change and we employ different assumptions in the application of ASC 718 in future periods, the compensation expense that we record under ASC 718 may differ significantly from what we have recorded in the current period. |
Stock Award Compensation Expense | Stock Award Compensation Expense We account for stock awards granted to employees and directors in accordance with ASC 718. On May 8, 2018, a restricted stock award of 1,500,000 shares of common stock was granted to our Chairman, President and Chief Executive Officer. The restricted stock award vests in its entirety upon achievement of a target trading price of $11.00 per share of the Company’s common stock before May 31, 2021. For restricted stock awards vesting upon achievement of a price target of our common stock we use a Monte Carlo Simulation in estimating the fair value at grant date and recognize compensation cost over the implied service period (median time to vest). The assumptions used in the Monte Carlo Simulation were stock price on date of grant of $3.70, contract term of 3.06 years, expected volatility of 128.8% and risk-free interest rate of 2.66%. During the years ended October 31, 2020 and 2019 we recorded compensation expense related to the restricted stock award of $-0- and approximately $1,954,000, respectively. We did not issue any stock awards during the years ended October 31, 2020 and 2019. As of October 31, 2020, there was no unrecognized compensation cost related to the restricted stock awards. |
Warrants | Warrants For warrants granted to consultants for services rendered we estimate the fair value using the Black-Scholes pricing model on the date of grant. During the years ended October 31, 2020 and 2019 we recorded consulting expense, based on the fair value, of $-0- and approximately $85,000, respectively, for warrants granted to consultants. |
Net Loss Per Share of Common Stock | Net Loss Per Share of Common Stock In accordance with ASC 260, “Earnings Per Share”, basic net loss per common share (“Basic EPS”) is computed by dividing net loss by the weighted average number of common shares outstanding. Diluted net loss per common share (“Diluted EPS”) is computed by dividing net loss by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. Diluted EPS for all years 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 years ended October 31, 2020 and 2019 were options to purchase 7,952,195 and 7,632,068 shares, respectively, and warrants to purchase 560,000 shares and 525,000 shares, respectively. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are used for, but not limited to, determining stock-based compensation, asset impairment evaluations, tax assets and liabilities, license fee revenue, the allowance for doubtful accounts, depreciation lives and other contingencies. Actual results could differ from those estimates. |
Effect of Recently Issued Pronouncements | Effect of Recently Issued Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02 (“ASU 2016-02”) Accounting Standards Codification Topic 842, Leases (“ASC 842”), which supersedes Topic 840, Leases, and which requires lessees to recognize most leases on the balance sheet. The new lease standard does not substantially change lessor accounting. For public companies, the standard was effective for the first interim reporting period within annual periods beginning after December 15, 2018, although early adoption was permitted. Lessees and lessors were 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. In July 2018, FASB issued ASU 2018-11, Leases, which provides an additional transition option for an entity to apply the provisions of ASC 842 by recognizing a cumulative effect adjustment at the effective date of adoption without adjusting the prior comparative periods presented. The requirements of this standard include a significant increase in required disclosures. The Company adopted ASU 2016-02 on November 1, 2019. The adoption of this standard did not have a material impact on our consolidated financial statements. See Note 5 regarding the accounting and disclosures related to our office lease. |
Concentration of Credit Risks | Concentration of Credit Risks Financial instruments that potentially subject us to concentrations of credit risk are cash equivalents, short-term investments and accounts receivable. Cash equivalents are primarily highly rated money market funds. Short-term investments are certificates of deposit within federally insured limits. Where applicable, management reviews our accounts receivable and other receivables for potential doubtful accounts and maintains an allowance for estimated uncollectible amounts. Our policy is to write-off uncollectable amounts at the time it is determined that collection will not occur. One licensee accounted for 100% of revenues from patent licensing activities during fiscal year 2019. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Summary Of Significant Accounting Policies | |
Schedule of Changes in Noncontrolling Interest | The following table sets forth the changes in noncontrolling interest for the two years ended October 31, 2020: Balance October 31, 2018 $ (251,377 ) Net loss attributable to noncontrolling interest (171,598 ) Balance October 31, 2019 (422,975 ) Net loss attributable to noncontrolling interest (74,008 ) Balance October 31, 2020 $ (496,983 ) |
Schedule of Hierarchy of Financial Assets | The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of October 31, 2020: Level 1 Level 2 Level 3 Total Money market funds: Cash and cash equivalents $ 3,902,292 $ - $ - $ 3,902,292 Certificates of deposit: Cash and cash equivalents 2,250,000 - - 2,250,000 Short term investments - 2,640,000 - 2,640,000 Total financial assets $ 6,152,292 $ 2,640,000 $ - $ 8,792,292 The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of October 31, 2019: Level 1 Level 2 Level 3 Total Money market funds: Cash and cash equivalents $ 2,706,944 $ - $ - $ 2,706,944 Certificates of deposit: Cash and cash equivalents 500,000 - 500,000 Short term investments - 2,350,000 - 2,350,000 Total financial assets $ 3,206,944 $ 2,350,000 $ - $ 5,556,944 |
Schedule of Weighted Average Assumptions Used in Estimating Fair Value of Stock Options | The following weighted average assumptions were used in estimating the fair value of stock options granted during the years ended October 31, 2020 and 2019: For the Year 2020 2019 Weighted average fair value at grant date $ 2.97 $ 3.87 Valuation assumptions: Expected life (years) 5.86 5.47 Expected volatility 114.22 % 116.72 % Risk-free interest rate 1.45 % 1.61 % Expected dividend yield 0 % 0 % |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued liabilities consist of the following as of: October 31, 2020 2019 Payroll and related expenses 415,331 72,850 Accrued royalty and contingent legal fees 449,691 449,691 Accrued collaborative research and license expense 30,000 371,710 Accrued other 6,003 1,247 $ 901,025 $ 895,498 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Schedule of Option Activity | Information regarding the Non-Plan Options for the two years ended October 31, 2020 is as follows: Shares Weighted Aggregate Options Outstanding at October 31, 2018 1,780,000 $ 1.58 Forfeited (82,000 ) $ 5.32 Options Outstanding and Exercisable at October 31, 2019 and 2020 1,698,000 $ 2.58 $ -0- |
Schedule of Outstanding and Exercisable | The following table summarizes information about outstanding and exercisable Non-Plan Options as of October 31, 2020: Range of Number and Exercisable Weighted Average (in years) Weighted Price $ 2.58 1,698,000 1.75 $ 2.58 |
Schedule of Warrants Activity | Information regarding the Company’s warrants for the two years ended October 31, 2020 is as follows: Shares Weighted Warrants Outstanding at October 31, 2018 829,400 $ 7.04 Issued 25,000 $ 4.04 Expired (329,400 ) $ 10.09 Warrants Outstanding at October 31, 2019 525,000 $ 4.98 Issued 60,000 $ 2.06 Exchanged (25,000 ) $ 4.04 Warrants Outstanding at October 31, 2020 560,000 $ 4.71 Warrants Exercisable at October 31, 2020 510,000 $ 4.97 |
2003 Plan [Member] | |
Schedule of Option Activity | Information regarding the 2003 Share Plan for the two years ended October 31, 2020 is as follows: Shares Weighted Aggregate Value Options Outstanding at October 31, 2018 12,000 $ 2.77 Exercised (11,600 ) $ 2.94 Options Outstanding at October 31, 2019 400 $ 17.00 Forfeited/Expired (400 ) $ 17.00 Options Outstanding and Exercisable at October 31, 2020 - $ -0- $ -0- |
2010 Plan [Member] | |
Schedule of Option Activity | Information regarding the 2010 Share Plan for the two years ended October 31, 2020 is as follows: Shares Weighted Aggregate Intrinsic Value Options Outstanding at October 31, 2018 2,131,868 $ 2.11 Granted 10,000 $ 3.64 Exercised (32,000 ) $ 2.27 Forfeited (111,200 ) $ 3.89 Options Outstanding at October 31, 2019 1,998,668 $ 2.80 Exercised (51,100 ) $ 2.39 Forfeited/Expired (40,034 ) $ 2.34 Options Outstanding at October 31, 2020 1,907,534 $ 2.82 $ 327,340 Options Exercisable at October 31, 2020 1,791,284 $ 2.84 $ 280,878 |
Schedule of Outstanding and Exercisable | The following table summarizes information about stock options outstanding under the 2010 Share Plan as of October 31, 2020: Options Outstanding Options Exercisable Range of Number Weighted (in years) Weighted Number Weighted (in years) Weighted $ 0.67 - $2.30 549,000 5.45 $ 1.57 507,750 5.35 $ 1.62 $ 2.58 - $3.13 834,000 2.84 $ 2.79 834,000 3.13 $ 2.79 $ 3.46 - $5.75 524,534 7.25 $ 4.17 449,534 7.17 $ 4.49 |
2018 Plan [Member] | |
Schedule of Option Activity | Information regarding the 2018 Share Plan for the two years ended October 31, 2020 is as follows: Shares Weighted Aggregate Intrinsic Value Options Outstanding at October 31, 2018 3,482,000 $ 3.73 Granted 465,000 $ 3.87 Exercised (4,000 ) $ 3.84 Forfeited/Expired (8,000 ) $ 3.84 Options Outstanding at October 31, 2019 3,935,000 $ 3.74 Granted 1,045,000 $ 3.56 Forfeited/Expired (633,339 ) $ 3.83 Options Outstanding at October 31, 2020 4,346,661 $ 3.69 $ -0- Options Exercisable at October 31, 2020 2,456,109 $ 3.74 $ -0- |
Schedule of Outstanding and Exercisable | The following table summarizes information about stock options outstanding under the 2018 Share Plan as of October 31, 2020: Options Outstanding Options Exercisable Prices Number Weighted (in years) Weighted Number Weighted (in years) Weighted $ 2.09 - $3.70 3,247,781 7.70 $ 3.62 1,861,948 7.58 $ 3.68 $ 3.84 - $4.61 1,098,880 8.49 $ 3.90 594,161 8.25 $ 3.92 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease | Balance sheet information related to the Company’s lease is presented below: Balance Sheet October 31, November 1, October 31, Operating Lease: Right-of-use asset Operating lease right- of-use asset $ 54,340 $ 106,221 $ - Right-of-use liability, Operating lease liability 55,198 51,101 - Right-of-use liability, Not presented - 55,198 - |
Schedule of Minimum Lease Payments | As of October 31, 2020, the annual minimum lease payments of our operating lease liability were as follows: Operating Leases Fiscal year 2021 future minimum payments, undiscounted $ 59,136 Less: Imputed interest 3,938 Present value of future minimum lease payments $ 55,198 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision (Benefit) | Income tax provision (benefit) consists of the following: Year Ended October 31, 2020 2019 Federal: Current $ - $ - Deferred 404,000 (948,000 ) State: Current - - Deferred (800,000 ) (995,000 ) Adjustment to valuation allowance related to net deferred tax assets 396,000 1,943,000 $ - $ - |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax asset, net, at October 31, 2020 and 2019, are as follows: October 31, 2020 2019 Long-term deferred tax assets: Federal and state NOL and tax credit carryforwards $ 19,727,000 $ 19,593,000 Deferred compensation 8,009,000 7,619,000 Intangibles 828,000 943,000 Other 192,000 205,000 Subtotal 28,756,000 28,360,000 Less: valuation allowance (28,756,000 ) (28,360,000 ) Deferred tax asset, net $ - $ - |
Schedule of Reconciliation of Income Taxes | The following is a reconciliation of income taxes at the Federal statutory tax rate to income tax expense (benefit): Year Ended October 31, 2020 2019 Income tax benefit at U.S. Federal statutory income tax rate $ (2,119,000 ) (21.00 )% $ (2,482,000 ) (21.00 )% State income taxes (705,000 ) (6.98 )% (1,045,000 ) (8.84 )% Permanent differences 32,000 0.32 % 30,000 0.25 % Expiring net operating losses, credits and other 2,396,000 23.74 % 1,554,000 13.15 % Change in valuation allowance 396,000 3.92 % 1,943,000 16.44 % Income tax provision $ - 0.00 % $ - 0.00 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following represents selected financial information for our segments for the years ended October 31, 2020 and 2019: Year Ended October 31, 2020 2019 Net loss: CAR-T Therapeutics $ (2,241,443 ) $ (5,074,868 ) Cancer Vaccines (828,136 ) (677,450 ) Anti-Viral Therapeutics (1,168,969 ) - Cancer Diagnostics (5,836,594 ) (5,196,471 ) Patent Licensing (17,221 ) (869,863 ) Total $ (10,092,363 ) $ (11,818,652 ) Total operating costs and expenses $ 9,978,202 $ 12,140,005 Less non-cash share-based compensation (4,137,460 ) (5,713,746 ) Operating costs and expenses excluding non-cash share-based compensation $ 5,840,742 $ 6,426,259 Operating costs and expenses excluding non-cash share based compensation: CAR-T Therapeutics $ 1,141,542 $ 2,212,090 Cancer Vaccines 365,681 458,392 Anti-Viral Therapeutics 739,140 - Cancer Diagnostics 3,581,377 2,689,761 Patent Licensing 13,002 1,066,016 Total $ 5,840,742 $ 6,426,259 October 31, 2020 2019 Total assets: CAR-T Therapeutics $ 2,988,124 $ 2,382,460 Cancer Vaccines 946,923 489,881 Anti-Viral Therapeutics 2,464,361 - Cancer Diagnostics 2,869,529 2,921,784 Patent Licensing 184,027 499,568 Total $ 9,452,964 $ 6,293,693 |
Business and Funding (Details N
Business and Funding (Details Narrative) | 12 Months Ended |
Oct. 31, 2020USD ($)shares | |
Sale of shares of common stock, value | $ 40,811,000 |
Our at-the-Market Equity Offerings [Member] | |
Net of expenses | $ 9,266,000 |
Sale of shares of common stock | shares | 3,854,305 |
An at-the-Market Equity Offerings [Member] | |
Net of expenses | $ 8,839,000 |
Sale of shares of common stock | shares | 3,742,067 |
Shares of common stock, value | $ 50,000,000 |
An at-the-Market Equity Offerings [Member] | November 2019 [Member] | |
Net of expenses | $ 427,000 |
Sale of shares of common stock | shares | 112,238 |
Wistar Institute [Member] | |
Ownership Percentage | 5.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | May 08, 2018 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 30, 2020 |
Certificates of deposit fair value | $ 2,640,000 | $ 2,350,000 | ||
Amortization expense | 418,750 | |||
Equipment purchases | 16,000 | 175,000 | ||
Depreciation | 38,276 | 47,558 | ||
Loss on disposal of property and equipment | (148,084) | |||
Stock-based compensation expense | $ 3,922,719 | $ 3,560,883 | ||
Exercise term | 5 years 10 months 10 days | 5 years 5 months 20 days | ||
Expected volatility rate | 114.22% | 116.72% | ||
Risk free interest rate | 1.45% | 1.61% | ||
Warrants [Member] | ||||
Vesting terms | 12 months | |||
Antidilutive securities excluded from the calculation of Diluted EPS | 560,000 | 525,000 | ||
Consultants [Member] | Warrants [Member] | ||||
Stock-based compensation expense | $ 0 | $ 85,000 | ||
Vesting terms | 5 months | |||
Stock Option [Member] | ||||
Unrecognized compensation cost | $ 2,605,000 | |||
Weighted-average period recognition | 1 year 6 months | |||
Antidilutive securities excluded from the calculation of Diluted EPS | 7,952,195 | |||
Stock Option [Member] | Minimum [Member] | ||||
Expiration period | 5 years | |||
Vesting terms | 12 months | |||
Stock Option [Member] | Maximum [Member] | ||||
Expiration period | 10 years | |||
Vesting terms | 36 months | |||
Stock Option [Member] | Chairman, President and Chief Executive Officer [Member] | ||||
Stock-based compensation expense | $ 0 | 1,954,000 | ||
Number of shares issued | 1,500,000 | |||
Trading prices | $ 11 | |||
Expiration date | May 31, 2021 | |||
Exercise price | $ 3.7 | |||
Exercise term | 3 years 22 days | |||
Expected volatility rate | 128.80% | |||
Risk free interest rate | 266.00% | |||
Non-vested Stock Option [Member] | ||||
Stock-based compensation expense | $ 3,011,000 | 3,166,000 | ||
Antidilutive securities excluded from the calculation of Diluted EPS | 7,632,068 | |||
Non-vested Stock Option [Member] | Chairman, President and Chief Executive Officer [Member] | ||||
Stock-based compensation expense | $ 376,000 | 0 | ||
Non-vested Stock Option [Member] | Consultants [Member] | ||||
Stock-based compensation expense | 123,000 | 99,000 | ||
Market Conditions Stock Option [Member] | Chairman, President and Chief Executive Officer [Member] | ||||
Stock-based compensation expense | 376,000 | 0 | ||
Number of shares issued | 1,500,000 | |||
Expiration date | May 31, 2021 | |||
Exercise price | $ 3.70 | |||
Exercise term | 10 years | |||
Expected volatility rate | 119.60% | |||
Risk free interest rate | 2.97% | |||
Market Conditions Stock Option [Member] | Chairman, President and Chief Executive Officer [Member] | Minimum [Member] | ||||
Trading prices | $ 5 | |||
Implied service period | 3 months | |||
Market Conditions Stock Option [Member] | Chairman, President and Chief Executive Officer [Member] | Maximum [Member] | ||||
Trading prices | $ 8 | |||
Implied service period | 7 months | |||
Service based and Performance-based Stock Options [Member] | Consultants [Member] | ||||
Stock-based compensation expense | 215,000 | 113,000 | ||
Unrecognized compensation cost | $ 340,000 | |||
Weighted-average period recognition | 1 year 10 months 25 days | |||
Computer and Tes Equipment [Member] | ||||
Useful life | 60 months | |||
Patents [Member] | ||||
Amortization expense | $ 0 | 419,000 | ||
Write down value | 419,000 | |||
Carrying value | 168,000 | |||
Capitalzed Patents [Member] | ||||
Carrying value | $ 0 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Changes in Noncontrolling Interest (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Accounting Policies [Abstract] | ||
Balance | $ (422,975) | $ (251,377) |
Net loss attributable to noncontrolling interest | (74,008) | (171,598) |
Balance | $ (496,983) | $ (422,975) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Hierarchy of Financial Assets (Details) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Total financial assets | $ 8,972,292 | $ 5,556,944 |
Level 1 [Member] | ||
Total financial assets | 6,152,292 | 3,206,944 |
Level 2 [Member] | ||
Total financial assets | 2,640,000 | 2,350,000 |
Level 3 [Member] | ||
Total financial assets | ||
Money Market Funds [Member] | Fair Value, Recurring [Member] | ||
Cash and cash equivalents | 3,092,292 | 2,706,944 |
Money Market Funds [Member] | Level 1 [Member] | Fair Value, Recurring [Member] | ||
Cash and cash equivalents | 3,902,292 | 2,706,944 |
Money Market Funds [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Cash and cash equivalents | ||
Money Market Funds [Member] | Level 3 [Member] | Fair Value, Recurring [Member] | ||
Cash and cash equivalents | ||
Certificates of Deposit [Member] | Fair Value, Recurring [Member] | ||
Cash and cash equivalents | 2,250,000 | 500,000 |
Short-term investments | 2,640,000 | 2,350,000 |
Certificates of Deposit [Member] | Level 1 [Member] | Fair Value, Recurring [Member] | ||
Cash and cash equivalents | 2,250,000 | 500,000 |
Short-term investments | ||
Certificates of Deposit [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Cash and cash equivalents | ||
Short-term investments | 2,640,000 | 2,350,000 |
Certificates of Deposit [Member] | Level 3 [Member] | Fair Value, Recurring [Member] | ||
Cash and cash equivalents | ||
Short-term investments |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Weighted Average Assumptions Used in Estimating Fair Value of Stock Options (Details) - $ / shares | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Accounting Policies [Abstract] | ||
Weighted average fair value at grant date | $ 2.97 | $ 3.87 |
Expected life (years) | 5 years 10 months 10 days | 5 years 5 months 20 days |
Expected volatility | 114.22% | 116.72% |
Risk-free interest rate | 1.45% | 1.61% |
Expected dividend yield | 0.00% | 0.00% |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Payables and Accruals [Abstract] | ||
Payroll and related expenses | $ 415,331 | $ 72,850 |
Accrued royalty and contingent legal fees | 449,691 | 449,691 |
Accrued collaborative research and license expense | 30,000 | 371,710 |
Accrued other | 6,003 | 1,247 |
Accrued expenses | $ 901,025 | $ 895,498 |
Shareholders' Equity (Details N
Shareholders' Equity (Details Narrative) - USD ($) | Aug. 21, 2019 | Sep. 06, 2017 | Oct. 31, 2020 | Oct. 31, 2019 |
Stock options exercised, shares | 51,100 | 47,600 | ||
Aggregate proceeds from stock options | $ 122,270 | $ 122,070 | ||
Weighted average exercise per share | $ .67 | |||
Vesting percentage | 85.00% | |||
Common stock issued pursuant to employee stock purchase plan | $ 18,451 | $ 39,086 | ||
Warrants [Member] | ||||
Vesting period | 12 months | |||
Warrant expiration date | Nov. 1, 2023 | |||
Warrants purchase of common stock shares | 25,000 | |||
Warrant exercise price | $ 4.04 | |||
Consulting expense | $ 85,000 | |||
Warrants [Member] | Consultants [Member] | ||||
Vesting period | 5 months | |||
Warrant expiration date | Oct. 30, 2025 | |||
Warrants purchase of common stock shares | 60,000 | |||
Warrant exercise price | $ 2.06 | |||
Settlement Agreement [Member] | ||||
Aggregate proceeds from stock options | $ 45,000 | |||
2010 Plan [Member] | ||||
Stock options exercised, shares | 51,100 | 32,000 | ||
Number of shares avaliable for future issuance | 800,000 | |||
Weighted average exercise per share | $ 2.39 | $ 2.27 | ||
2010 Plan [Member] | Settlement Agreement [Member] | ||||
Stock options exercised, shares | 878,400 | |||
2010 Plan [Member] | Settlement Agreement [Member] | Minimum [Member] | ||||
Weighted average exercise per share | $ .96 | |||
2010 Plan [Member] | Settlement Agreement [Member] | Maximum [Member] | ||||
Weighted average exercise per share | $ 5.30 | |||
2018 Plan [Member] | ||||
Stock options exercised, shares | 4,000 | |||
Number of shares avaliable for future issuance | 2,000,000 | |||
Shares available for future grants | 2,388,339 | |||
Weighted average exercise per share | $ 3.84 | |||
2003 Plan [Member] | ||||
Stock options exercised, shares | 11,600 | |||
Weighted average exercise per share | $ 2.94 | |||
2003 Plan [Member] | Settlement Agreement [Member] | ||||
Stock options exercised, shares | 4,000 | |||
Weighted average exercise per share | $ 2.58 | |||
Outside of Plans [Member] | Settlement Agreement [Member] | ||||
Stock options exercised, shares | 1,046,000 | |||
Weighted average exercise per share | $ 2.58 | |||
Employee Stock Purchase Plan [Member] | ||||
Common stock issued pursuant to employee stock purchase plan, shares | 11,536 | 11,650 | ||
Common stock issued pursuant to employee stock purchase plan | $ 18,000 | $ 39,000 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Option Activity (Details) - USD ($) | Sep. 06, 2017 | Oct. 31, 2020 | Oct. 31, 2019 |
Shares, Options outstanding, Beginning balance | 1,780,000 | ||
Shares, Options, Exercised | (51,100) | (47,600) | |
Shares, Options, Forfeited/Expired | (82,000) | ||
Shares, Options outstanding and Exercisable | 1,698,000 | 1,698,000 | |
Weighted Average Exercise Price Per Share, Outstanding Beginning balance | $ 1.58 | ||
Weighted Average Exercise Price Per Share, Exercised | $ .67 | ||
Weighted Average Exercise Price Per Share, Forfeited/Expired | 5.32 | ||
Weighted Average Exercise Price Per Share, Outstanding and Exercisable | $ 2.58 | $ 2.58 | |
Aggregate Intrinsic Value, Outstanding and Exercisable | $ 0 | $ 0 | |
2003 Plan [Member] | |||
Shares, Options outstanding, Beginning balance | 400 | 12,000 | |
Shares, Options, Exercised | (11,600) | ||
Shares, Options, Forfeited/Expired | (400) | ||
Shares, Options outstanding and Exercisable | |||
Shares, Options outstanding, Ending balance | 400 | ||
Weighted Average Exercise Price Per Share, Outstanding Beginning balance | $ 17 | $ 2.77 | |
Weighted Average Exercise Price Per Share, Exercised | 2.94 | ||
Weighted Average Exercise Price Per Share, Forfeited/Expired | 17 | ||
Weighted Average Exercise Price Per Share, Outstanding and Exercisable | $ 0 | ||
Weighted Average Exercise Price Per Share, Outstanding Ending balance | $ 17 | ||
Aggregate Intrinsic Value, Outstanding and Exercisable | $ 0 | ||
2010 Plan [Member] | |||
Shares, Options outstanding, Beginning balance | 1,998,668 | 2,131,868 | |
Shares, Options, Granted | 10,000 | ||
Shares, Options, Exercised | (51,100) | (32,000) | |
Shares, Options, Forfeited/Expired | (40,034) | (111,200) | |
Shares, Options outstanding, Ending balance | 1,907,534 | 1,998,668 | |
Shares, Options outstanding, Exercisable | 1,791,284 | ||
Weighted Average Exercise Price Per Share, Outstanding Beginning balance | $ 2.80 | $ 2.11 | |
Weighted Average Exercise Price Per Share, Granted | 3.64 | ||
Weighted Average Exercise Price Per Share, Exercised | 2.39 | 2.27 | |
Weighted Average Exercise Price Per Share, Forfeited/Expired | 2.34 | 3.89 | |
Weighted Average Exercise Price Per Share, Outstanding Ending balance | 2.82 | $ 2.80 | |
Weighted Average Exercise Price Per Share, Exercisable | $ 2.84 | ||
Aggregate Intrinsic Value, Outstanding Ending balance | $ 327,340 | ||
Aggregate Intrinsic Value, Exercisable | $ 280,878 | ||
2018 Plan [Member] | |||
Shares, Options outstanding, Beginning balance | 3,935,000 | 3,482,000 | |
Shares, Options, Granted | 1,045,000 | 465,000 | |
Shares, Options, Exercised | (4,000) | ||
Shares, Options, Forfeited/Expired | (633,339) | (8,000) | |
Shares, Options outstanding, Ending balance | 4,346,661 | 3,935,000 | |
Shares, Options outstanding, Exercisable | 2,456,109 | ||
Weighted Average Exercise Price Per Share, Outstanding Beginning balance | $ 3.74 | $ 3.73 | |
Weighted Average Exercise Price Per Share, Granted | 3.56 | 3.87 | |
Weighted Average Exercise Price Per Share, Exercised | 3.84 | ||
Weighted Average Exercise Price Per Share, Forfeited/Expired | 3.83 | 3.84 | |
Weighted Average Exercise Price Per Share, Outstanding Ending balance | 3.69 | $ 3.74 | |
Weighted Average Exercise Price Per Share, Exercisable | $ 3.74 | ||
Aggregate Intrinsic Value, Outstanding Ending balance | $ 0 | ||
Aggregate Intrinsic Value, Exercisable | $ 0 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Outstanding and Exercisable (Details) - $ / shares | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Number Outstanding and Exercisable | 1,780,000 | ||
Weighted Average Exercise Price | $ 1.58 | ||
2010 Plan [Member] | |||
Number Outstanding and Exercisable | 1,907,534 | 1,998,668 | 2,131,868 |
Weighted Average Exercise Price | $ 2.82 | $ 2.80 | $ 2.11 |
Number Exercisable, Options Exercisable | 1,791,284 | ||
Weighted Average Exercise Price, Options Exercisable | $ 2.84 | ||
2010 Plan [Member] | Range 1 [Member] | |||
Range of Exercise Prices, Lower limit | 0.67 | ||
Range of Exercise Prices, Upper limit | $ 2.30 | ||
Number Outstanding and Exercisable | 549,000 | ||
Weighted Average Remaining Contractual Life (in years) | 5 years 5 months 12 days | ||
Weighted Average Exercise Price | $ 1.57 | ||
Number Exercisable, Options Exercisable | 507,750 | ||
Weighted Average Remaining Contractual Life (in years), Options Exercisable | 5 years 4 months 6 days | ||
Weighted Average Exercise Price, Options Exercisable | $ 1.62 | ||
2010 Plan [Member] | Range 2 [Member] | |||
Range of Exercise Prices, Lower limit | 2.58 | ||
Range of Exercise Prices, Upper limit | $ 3.13 | ||
Number Outstanding and Exercisable | 834,000 | ||
Weighted Average Remaining Contractual Life (in years) | 2 years 10 months 3 days | ||
Weighted Average Exercise Price | $ 2.79 | ||
Number Exercisable, Options Exercisable | 834,000 | ||
Weighted Average Remaining Contractual Life (in years), Options Exercisable | 3 years 1 month 16 days | ||
Weighted Average Exercise Price, Options Exercisable | $ 2.79 | ||
2010 Plan [Member] | Range 3 [Member] | |||
Range of Exercise Prices, Lower limit | 3.46 | ||
Range of Exercise Prices, Upper limit | $ 5.75 | ||
Number Outstanding and Exercisable | 532,034 | ||
Weighted Average Remaining Contractual Life (in years) | 7 years 2 months 30 days | ||
Weighted Average Exercise Price | $ 4.17 | ||
Number Exercisable, Options Exercisable | 449,534 | ||
Weighted Average Remaining Contractual Life (in years), Options Exercisable | 7 years 2 months 1 day | ||
Weighted Average Exercise Price, Options Exercisable | $ 4.49 | ||
2018 Plan [Member] | |||
Number Outstanding and Exercisable | 4,346,661 | 3,935,000 | 3,482,000 |
Weighted Average Exercise Price | $ 3.69 | $ 3.74 | $ 3.73 |
Number Exercisable, Options Exercisable | 2,456,109 | ||
Weighted Average Exercise Price, Options Exercisable | $ 3.74 | ||
2018 Plan [Member] | Range 1 [Member] | |||
Range of Exercise Prices, Lower limit | 2.09 | ||
Range of Exercise Prices, Upper limit | $ 3.70 | ||
Number Outstanding and Exercisable | 3,247,781 | ||
Weighted Average Remaining Contractual Life (in years) | 7 years 8 months 12 days | ||
Weighted Average Exercise Price | $ 3.62 | ||
Number Exercisable, Options Exercisable | 1,861,948 | ||
Weighted Average Remaining Contractual Life (in years), Options Exercisable | 7 years 6 months 29 days | ||
Weighted Average Exercise Price, Options Exercisable | $ 3.68 | ||
2018 Plan [Member] | Range 2 [Member] | |||
Range of Exercise Prices, Lower limit | 3.84 | ||
Range of Exercise Prices, Upper limit | $ 4.61 | ||
Number Outstanding and Exercisable | 1,098,880 | ||
Weighted Average Remaining Contractual Life (in years) | 8 years 5 months 27 days | ||
Weighted Average Exercise Price | $ 3.90 | ||
Number Exercisable, Options Exercisable | 594,161 | ||
Weighted Average Remaining Contractual Life (in years), Options Exercisable | 8 years 2 months 30 days | ||
Weighted Average Exercise Price, Options Exercisable | $ 3.92 | ||
Outside of Plans [Member] | Range 1 [Member] | |||
Range of Exercise Prices, Lower limit | $ 2.58 | ||
Number Outstanding and Exercisable | 1,698,000 | ||
Weighted Average Remaining Contractual Life (in years) | 1 year 9 months | ||
Weighted Average Exercise Price | $ 2.58 |
Shareholders' Equity - Schedu_3
Shareholders' Equity - Schedule of Warrants Activity (Details) - $ / shares | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Stockholders' Equity Note [Abstract] | ||
Warrants Outstanding, Beginning balance | 525,000 | 829,400 |
Warrants Outstanding, Issued | 60,000 | 25,000 |
Warrants Outstanding, Expired | (329,400) | |
Warrants Outstanding, Exchanged | (25,000) | |
Warrants Outstanding, Ending balance | 560,000 | 525,000 |
Warrants Exercisable, Ending balance | 510,000 | |
Weighted Average Exercise Price Per Share Warrants Outstanding, Beginning balance | $ 4.98 | $ 7.04 |
Weighted Average Exercise Price Per Share, Issued | 2.06 | 4.04 |
Weighted Average Exercise Price Per Share, Expired | 10.09 | |
Weighted Average Exercise Price Per Share, Exchanged | 4.04 | |
Weighted Average Exercise Price Per Share Warrants Outstanding, Ending balance | 4.71 | $ 4.98 |
Weighted Average Exercise Price Per Share, Warrants Exercisable | $ 4.97 |
Leases (Details Narrative)
Leases (Details Narrative) | 12 Months Ended | ||
Oct. 31, 2020USD ($)ft² | Oct. 31, 2019USD ($) | Nov. 02, 2019USD ($) | |
Rent expenses | $ 64,000 | $ 60,000 | |
Right of use assets | 54,340 | ||
Operating lease liabilities | $ 55,198 | ||
ASC 842 [Member] | |||
Right of use assets | $ 106,221 | ||
Operating lease liabilities | $ 106,299 | ||
Almaden Expressway, San Jose [Member] | |||
Area of land | ft² | 2,000 | ||
Operating lease, expiration date | Sep. 30, 2021 | ||
Rent expenses | $ 5,000 | ||
Rent percentage | 3.00% | ||
Operating lease remaining term | 11 months | ||
Wilshire Boulevard, Los Angeles [Member] | |||
Area of land | ft² | 3,000 | ||
Operating lease, expiration date | May 31, 2019 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease (Details) - USD ($) | Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2019 |
Right-of-use asset | $ 54,340 | ||
Right-of-use liability, current | 55,198 | ||
Other Liabilities [Member] | |||
Right-of-use asset | 54,340 | $ 106,221 | |
Right-of-use liability, current | 55,198 | 51,101 | |
Right-of-use liability, long-term | $ 55,198 |
Leases - Schedule of Minimum Le
Leases - Schedule of Minimum Lease Payments (Details) | Oct. 31, 2020USD ($) |
Leases [Abstract] | |
Fiscal year 2021 future minimum payments, undiscounted | $ 59,136 |
Less: Imputed interest | 3,938 |
Present value of future minimum lease payments | $ 55,198 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | Oct. 31, 2020USD ($) |
Agreement with Moffitt, Cleveland Clinic and OntoChem [Member] | |
Other commitment, due in next twelve months | $ 188,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% |
Effective Income Tax Rate Reconciliation, Percent | 0.00% | 0.00% |
Unrecognized income tax benefits, penalties | ||
Federal Corporate Taxable [Member] | ||
Operating Loss Carryforwards | 81,316,000 | |
Tax Credit Carryforward, Amount | 1,545,000 | |
CALIFORNIA [Member] | ||
Operating Loss Carryforwards | $ 26,671,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision (Benefit) (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal, Current | ||
Federal, Deferred | 404,000 | (948,000) |
State, Current | ||
State, Deferred | (800,000) | (995,000) |
Adjustment to valuation allowance related to net deferred tax assets | 396,000 | 1,943,000 |
Income Tax Provision (Benefit) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Federal and state NOL and tax credit carryforwards | $ 19,727,000 | $ 19,593,000 |
Deferred compensation | 8,009,000 | 7,619,000 |
Intangibles | 828,000 | 943,000 |
Other | 192,000 | 205,000 |
Subtotal | 28,756,000 | 28,360,000 |
Less: valuation allowance | (28,756,000) | (28,360,000) |
Deferred tax asset, net |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit at U.S. Federal statutory income tax rate | $ (2,119,000) | $ (2,482,000) |
Income tax benefit at U.S. Federal statutory income tax rate | (21.00%) | (21.00%) |
State income taxes | $ (705,000) | $ (1,045,000) |
State income taxes | (6.98%) | (8.84%) |
Permanent differences | $ 32,000 | $ 30,000 |
Permanent differences | 32.00% | 0.25% |
Expiring net operating losses, credits and other | $ 2,396,000 | $ 1,554,000 |
Expiring net operating losses, credits and other | 23.74% | 13.15% |
Change in valuation allowance | $ 396,000 | $ 1,943,000 |
Change in valuation allowance | 3.92% | 16.44% |
Income tax provision | ||
Income tax provision | 0.00% | 0.00% |
Segment Information (Details Na
Segment Information (Details Narrative) | 12 Months Ended | |
Oct. 31, 2020USD ($)Numbers | Oct. 31, 2019USD ($) | |
Number of Reportable Segments | Numbers | 5 | |
Revenues | $ 250,000 | |
Inventor royalties, contingent legal fees, litigation and licensing expenses | 166,250 | |
Amortization of patents | 418,750 | |
Patent Licensing [Member] | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 418,750 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Net Loss | $ (10,092,363) | $ (11,818,652) |
Total operating costs and expenses | 9,978,202 | 12,140,005 |
Less non-cash share-based compensation | (4,137,460) | (5,713,746) |
Operating costs and expenses excluding non-cash share-based compensation | 5,840,742 | 6,426,259 |
Total assets | 9,452,964 | 6,293,693 |
CAR-T Therapeutics [Member] | ||
Net Loss | (2,241,443) | (5,074,868) |
Operating costs and expenses excluding non-cash share-based compensation | 1,141,542 | 2,212,090 |
Total assets | 2,988,124 | 2,382,460 |
Cancer Vaccines [Member] | ||
Net Loss | (828,136) | (677,450) |
Operating costs and expenses excluding non-cash share-based compensation | 365,681 | 458,392 |
Total assets | 946,923 | 489,881 |
Anti-Viral Therapeutics [Member] | ||
Net Loss | (1,168,969) | |
Operating costs and expenses excluding non-cash share-based compensation | 739,140 | |
Total assets | 2,464,361 | |
Cancer Diagnostics [Member] | ||
Net Loss | (5,836,594) | (5,196,471) |
Operating costs and expenses excluding non-cash share-based compensation | 3,581,377 | 2,689,761 |
Total assets | 2,869,529 | 2,921,784 |
Patent Licensing [Member] | ||
Net Loss | (17,221) | (869,863) |
Operating costs and expenses excluding non-cash share-based compensation | 13,002 | 1,066,016 |
Total assets | $ 184,027 | $ 499,568 |