Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Oct. 31, 2018 | Jan. 09, 2019 | Apr. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Anixa Biosciences Inc | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Common Stock, Shares Outstanding | 19,292,264 | ||
Entity Public Float | $ 56,459,801 | ||
Amendment Flag | false | ||
Entity Central Index Key | 715,446 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Oct. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Ex Transition Period | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Oct. 31, 2018 | Oct. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 3,055,890 | $ 3,339,374 |
Short–term investments in certificates of deposit | 2,000,000 | 3,500,000 |
Prepaid expenses and other current assets | 482,482 | 174,566 |
Total current assets | 5,538,372 | 7,013,940 |
Patents, net of impairment of $582,979 in 2018 and accumulated amortization of $1,615,632 and $1,290,336, respectively | 837,500 | 1,745,775 |
Property and equipment, net of accumulated depreciation of $53,799 and $35,725, respectively | 72,670 | 52,701 |
Total assets | 6,448,542 | 8,812,416 |
Current liabilities: | ||
Accounts payable | 582,012 | 480,324 |
Accrued expenses | 683,099 | 409,169 |
Total current liabilities | 1,265,111 | 889,493 |
Commitments and contingencies (Note 6 and 7) | ||
Shareholders’ equity: | ||
Preferred stock, par value $100 per share; 19,860 shares authorized; no shares issued or outstanding and Series A convertible preferred stock, par value $100 per share; 140 shares authorized; no shares issued or outstanding | ||
Common stock, par value $.01 per share; 48,000,000 and 24,000,000 shares authorized, respectively; 18,908,632 and 16,602,759 shares issued and outstanding, respectively | 189,086 | 166,028 |
Additional paid-in capital | 175,415,931 | 163,931,079 |
Accumulated deficit | (170,170,209) | (156,174,184) |
Total shareholders’ equity | 5,434,808 | 7,922,923 |
Noncontrolling interest (Note 2) | (251,377) | |
Total equity | 5,183,431 | 7,922,923 |
Total liabilities and equity | 6,448,542 | 8,812,416 |
Series A Preferred Stock [Member] | ||
Shareholders’ equity: | ||
Preferred stock, par value $100 per share; 19,860 shares authorized; no shares issued or outstanding and Series A convertible preferred stock, par value $100 per share; 140 shares authorized; no shares issued or outstanding | ||
Preferred Stock [Member] | ||
Shareholders’ equity: | ||
Preferred stock, par value $100 per share; 19,860 shares authorized; no shares issued or outstanding and Series A convertible preferred stock, par value $100 per share; 140 shares authorized; no shares issued or outstanding |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Patents, accumulated amortization (in Dollars) | $ 1,615,632 | $ 1,290,336 |
Patents, impairment (in Dollars) | 582,979 | |
Property and equipment, accumulated depreciation (in Dollars) | $ 53,799 | $ 35,725 |
Common stock par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 48,000,000 | 24,000,000 |
Common stock, shares issued | 18,908,632 | 16,602,759 |
Common stock, shares outstanding | 18,908,632 | 16,602,759 |
Series A Preferred Stock [Member] | ||
Preferred stock par value (in Dollars per share) | $ 100 | $ 100 |
Preferred stock, shares authorized | 140 | 140 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred Stock [Member] | ||
Preferred stock par value (in Dollars per share) | $ 100 | $ 100 |
Preferred stock, shares authorized | 19,860 | 19,860 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Revenue | $ 1,112,500 | $ 362,500 |
Operating costs and expenses: | ||
Inventor royalties, contingent legal fees, litigation and licensing expenses | 768,410 | 104,556 |
Amortization of patents | 325,296 | 325,296 |
Research and development expenses (including non-cash share based compensation expenses of $4,596,866 and $288,187, respectively) | 6,813,043 | 1,597,550 |
General and administrative expenses (including non-cash share based compensation expenses of $4,298,748 and $1,388,585, respectively) | 6,911,830 | 4,410,682 |
Impairment in carrying amount of patent assets (Note 2) | 582,979 | |
Total operating costs and expenses | 15,401,558 | 6,438,084 |
Loss from operations | (14,289,058) | (6,075,584) |
Gain on extinguishment of patent acquisition obligation (Note 4) | 1,547,608 | |
Interest expense (Notes 4 and 5) | (500,455) | |
Interest income | 45,974 | 19,440 |
Loss before income taxes | (14,243,084) | (5,008,991) |
Provision for income taxes (Note 7) | ||
Net loss | (14,243,084) | (5,008,991) |
Less: Net loss attributable to noncontrolling interest | (247,059) | |
Net loss attributable to common shareholders before deemed dividend | (13,996,025) | (5,008,991) |
Deemed dividend to preferred stockholder (Note 5) | (2,008,775) | |
Net loss attributable to common stockholders | $ (13,996,025) | $ (7,017,766) |
Net loss per share: | ||
Basic and diluted (in Dollars per share) | $ (0.79) | $ (0.58) |
Weighted average common shares outstanding: | ||
Basic and diluted (in Shares) | 17,624,335 | 12,197,340 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parentheticals) - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Research and Development Expense [Member] | ||
Non-cash share-based compensation expenses | $ 4,596,866 | $ 288,187 |
Selling, General and Administrative Expenses [Member] | ||
Non-cash share-based compensation expenses | $ 4,298,748 | $ 1,388,585 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS` EQUITY - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total Shareholders Equity [Member] | Noncontrolling Interest [Member] | Total |
BALANCE at Oct. 31, 2016 | $ 14,000 | $ 87,524 | $ 152,051,144 | $ (151,165,193) | $ 987,475 | $ 987,475 | |
BALANCE (in Shares) at Oct. 31, 2016 | 140 | 8,752,387 | |||||
Stock option compensation to employees and directors | 1,219,468 | 1,219,468 | 1,219,468 | ||||
Stock options and warrants issued to consultants | 3,304 | 3,304 | 3,304 | ||||
Common stock issued upon exercise of stock options | $ 402 | 6,871 | 7,273 | 7,273 | |||
Common stock issued upon exercise of stock options (in Shares) | 40,220 | ||||||
Stock award compensation to directors and employee pursuant to stock incentive plan | $ 2,000 | 452,000 | 454,000 | 454,000 | |||
Stock award compensation to directors and employee pursuant to stock incentive plan (in Shares) | 200,000 | ||||||
Common stock issued to consultants | $ 95 | 32,329 | 32,424 | 32,424 | |||
Common stock issued to consultants (in Shares) | 9,463 | ||||||
Redemption of convertible preferred stock | $ (14,000) | (3,486,000) | (3,500,000) | (3,500,000) | |||
Redemption of convertible preferred stock (in Shares) | (140) | ||||||
Common stock issued to repay patent acquisition obligation | $ 9,476 | 2,842,818 | 2,852,294 | 2,852,294 | |||
Common stock issued to repay patent acquisition obligation (in Shares) | 947,606 | ||||||
Common stock issued in shareholder rights offering | $ 19,892 | 4,183,410 | 4,203,302 | 4,203,302 | |||
Common stock issued in shareholder rights offering (in Shares) | 1,989,207 | ||||||
Common stock issued in registered direct offering | $ 34,254 | 3,177,534 | 3,211,788 | 3,211,788 | |||
Common stock issued in registered direct offering (in Shares) | 3,425,376 | ||||||
Common stock issued in at-the-market offering | $ 12,385 | 3,448,201 | 3,460,586 | 3,460,586 | |||
Common stock issued in at-the-market offering (in Shares) | 1,238,500 | ||||||
Net Loss | (5,008,991) | (5,008,991) | (5,008,991) | ||||
BALANCE at Oct. 31, 2017 | $ 166,028 | 163,931,079 | (156,174,184) | 7,922,923 | 7,922,923 | ||
BALANCE (in Shares) at Oct. 31, 2017 | 16,602,759 | ||||||
Stock option compensation to employees and directors | 5,717,651 | 5,717,651 | 5,717,651 | ||||
Stock options and warrants issued to consultants | 318,139 | 318,139 | 318,139 | ||||
Common stock issued upon exercise of stock options | $ 766 | 57,372 | 58,138 | 58,138 | |||
Common stock issued upon exercise of stock options (in Shares) | 76,636 | ||||||
Stock award compensation to directors and employee pursuant to stock incentive plan | $ 15,000 | 2,844,824 | 2,859,824 | 2,859,824 | |||
Stock award compensation to directors and employee pursuant to stock incentive plan (in Shares) | 1,500,000 | ||||||
Common stock issued to consultants | $ 53 | 14,949 | 15,002 | 15,002 | |||
Common stock issued to consultants (in Shares) | 5,347 | ||||||
Common stock issued in at-the-market offering | $ 7,239 | 2,462,943 | 2,470,182 | 2,470,182 | |||
Common stock issued in at-the-market offering (in Shares) | 723,890 | ||||||
Issuance of noncontrolling interest in Certainty Therapeutics, Inc. | 68,974 | 68,974 | (4,318) | 64,656 | |||
Net Loss | (13,996,025) | (13,996,025) | (247,059) | (14,243,084) | |||
BALANCE at Oct. 31, 2018 | $ 189,086 | $ 175,415,931 | $ (170,170,209) | $ 5,434,808 | $ (251,377) | $ 5,183,431 | |
BALANCE (in Shares) at Oct. 31, 2018 | 18,908,632 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Reconciliation of net loss to net cash used in operating activities: | ||
Net loss | $ (14,243,084) | $ (5,008,991) |
Stock option compensation to employees and directors | 5,717,651 | 1,219,468 |
Stock options and warrants issued to consultants | 318,139 | 3,304 |
Stock award compensation to employee and directors pursuant to stock incentive plan | 2,859,824 | 454,000 |
Common stock issued to consultants | 15,002 | 32,424 |
Amortization of patents | 325,296 | 325,296 |
Accretion of interest on patent acquisition obligations to interest expense | 228,026 | |
Depreciation of property and equipment | 18,435 | 43,216 |
Loss on disposal of property and equipment | 45,915 | |
Impairment in carrying amount of patent assets | 582,979 | |
Gain on extinguishment of patent acquisition obligation | (1,547,608) | |
Issuance of noncontrolling interest in Certainty Therapeutics, Inc. expensed as a license fee | 64,656 | |
Change in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (307,916) | (12,497) |
Accounts payable | 101,688 | 107,100 |
Accrued expenses | 273,930 | 313,637 |
Net cash used in operating activities | (4,273,400) | (3,796,710) |
Cash flows from investing activities: | ||
Disbursements to acquire short-term investments in certificates of deposit | (4,250,000) | (5,501,000) |
Proceeds from maturities of short-term investments in certificates of deposit | 5,750,000 | 2,751,000 |
Proceeds from sale of property and equipment | 45,000 | |
Purchase of property and equipment | (38,404) | (30,188) |
Net cash provided by (used in) investing activities | 1,461,596 | (2,735,188) |
Cash flows from financing activities: | ||
Proceeds from sale of common stock in shareholder rights offering | 4,203,302 | |
Proceeds from sale of common stock in registered direct offering | 3,211,788 | |
Proceeds from sale of common stock in at-the-market offering | 2,470,182 | 3,460,586 |
Redemption of convertible preferred stock | (500,000) | |
Payments made on secured debenture | (3,000,000) | |
Proceeds from exercise of stock options | 58,138 | 7,273 |
Net cash provided by financing activities | 2,528,320 | 7,382,949 |
Net (decrease) increase in cash and cash equivalents | (283,484) | 851,051 |
Cash and cash equivalents at beginning of year | 3,339,374 | 2,488,323 |
Cash and cash equivalents at end of year | 3,055,890 | 3,339,374 |
Supplemental cash flow information: | ||
Cash payments for interest | 272,429 | |
Supplemental disclosure of non-cash financing activities: | ||
Redemption of Series A convertible preferred stock into secured debenture (Note 5) | 3,000,000 | |
Common stock issued to pay patent acquisition obligation (Note 4) | $ 2,852,294 |
BUSINESS AND FUNDING
BUSINESS AND FUNDING | 12 Months Ended |
Oct. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. BUSINESS AND FUNDING Description of Business As used herein, “we,” “us,” “our,” the “Company” or “Anixa” means Anixa Biosciences, Inc. and its wholly-owned subsidiaries. From inception through October 2012, our primary operations involved the development of patented technologies in the areas of thin-film displays and encryption. From October 2012 through June 2015 the primary operations of the Company involved the development, acquisition, licensing, and enforcement of patented technologies that were either owned or controlled by the Company. In June 2015, the Company announced the formation of a new subsidiary, Anixa Diagnostics Corporation (“Anixa Diagnostics”), to develop Cchek™ a platform for non-invasive blood tests for the early detection of cancer. In July 2015, the Company announced a collaborative research agreement with The Wistar Institute (“Wistar”), the nation’s first independent biomedical research institute and a leading National Cancer Institute designated cancer research center, for the purpose of validating proprietary cancer detection methodologies and establishing protocols for identifying certain biomarkers in the blood which we identified and which are known to be associated with malignancies. We have demonstrated the efficacy of our Cchek™ early cancer detection platform with 20 different types of cancer, including: breast, lung, colon, melanoma, ovarian, liver, thyroid, pancreatic, appendiceal, uterine, osteosarcoma, leiomyosarcoma, liposarcoma, vulvar, prostate, bladder, cervical, head and neck, gastric and testicular cancers. Breast, lung, colon and prostate cancers represent the four largest categories of cancer worldwide. Based on a number of factors, including key scientific, clinical, and commercial considerations, the initial commercial focus for Cchek™ will be on a prostate cancer confirmatory test. In November 2017, the Company announced the formation of a new subsidiary, Certainty Therapeutics, Inc. (“Certainty”), to develop immuno-therapy drugs against cancer. Certainty entered into a license agreement with Wistar pursuant to which Certainty was granted an exclusive worldwide, royalty-bearing license to use certain intellectual property owned or controlled by Wistar relating to Wistar’s chimeric endocrine receptor targeted therapy technology (such technology being akin to chimeric antigen receptor T-cell (“CAR-T”) technology). We have initially focused on the development of a treatment for ovarian cancer, but we also may pursue future 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. Following the formation of Certainty and the license agreement with Wistar, Certainty entered into a collaboration agreement with the H. Lee Moffitt Cancer Center and Research Institute, Inc. (“Moffitt”) to advance toward human clinical testing the CAR-T technology licensed by Certainty from Wistar aimed initially at treating ovarian cancer. Certainty is working with researchers at Moffitt to complete studies necessary to submit an Investigational New Drug (“IND”) application with the U.S. Food and Drug Administration (“FDA”). Over the next several quarters, we expect Cchek™ and Certainty’s ovarian cancer treatment to be the primary focus of the Company. As part of our legacy operations, the Company remains engaged in limited patent licensing activities in the area of encrypted audio/video conference calling. We do not expect these activities to be a significant part of the Company’s ongoing operations nor do we expect these activities to require material financial resources or attention of senior management. Over the past several quarters, our revenue was derived from technology licensing and the sale of patented technologies, including revenue from the settlement of litigation. In addition to Anixa Diagnostics and Certainty, the Company may make investments in and form new companies to develop additional emerging technologies. Funding Based on currently available information as of , 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. 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 (including for the defense of the Howland Matter), or if we elect to invest in or acquire a company or companies that are synergistic with or complimentary to our technologies, we may be required to obtain more working capital. During fiscal year 2018, we raised approximately $2,470,000 through an at-the-market equity offering which is currently effective and may remain available for us to use in the future. We may seek to obtain working capital during our fiscal year 2019 or thereafter through sales of our equity securities or through bank credit facilities or public or private debt from various financial institutions where possible. W e cannot be certain that additional funding will be available on acceptable terms, or at all. If we do identify sources for additional funding, the sale of additional equity securities or convertible debt could result in dilution to our stockholders. Additionally, the sale of equity securities or issuance of debt securities may be subject to certain security holder approvals or may result in the downward adjustment of the exercise or conversion price of our outstanding securities. We can give no assurance that we will generate sufficient cash flows in the future to satisfy our liquidity requirements or sustain future operations, or that other sources of funding, such as sales of equity or debt, would be available or would be approved by our security holders, if needed, on favorable terms or at all. If we fail to obtain additional working capital as and when needed, 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. During the year ended October 31, 2018, cash used in operating activities was approximately $4,273,000. Cash provided by investing activities was approximately $1,462,000, resulting from the proceeds on maturities of certificates of deposit totaling $5,750,000, which was offset by the purchases of certificates of deposit totaling $4,250,000 and the purchase of property and equipment of approximately $38,000. Cash provided by financing activities was approximately $2,528,000, resulting from the sale of common stock in an at-the-market equity offering of approximately $2,470,000 and the proceeds from exercise of stock options of approximately $58,000. As a result, our cash, cash equivalents, and short-term investments at October 31, 2018 decreased approximately $1,783,000 to approximately $5,056,000 from approximately $6,839,000 at the end of fiscal year 2017. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements include the accounts of Anixa Biosciences, Inc. and its wholly 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 year ended October 31, 2018: Balance October 31, 2017 $ - Issuance of noncontrolling interest in Certainty (4,318) Net loss attributable to noncontrolling interest (247,059) Balance October 31, 2018 $ (251,377) Revenue Recognition Revenue is recognized when (i) persuasive evidence of an arrangement exists, (ii) all obligations have been substantially performed pursuant to the terms of the arrangement, (iii) amounts are fixed or determinable, and (iv) the collectability of amounts is reasonably assured. Patent Licensing In certain instances, our past revenue arrangements have provided for the payment of contractually determined fees in settlement of litigation and in consideration for the grant of certain intellectual property rights for patented technologies owned or controlled by the Company. These arrangements typically include some combination of the following: (i) the grant of a non-exclusive, retroactive and future license to manufacture and/or sell products covered by patented technologies owned or controlled by the Company, (ii) a covenant-not-to-sue, (iii) the release of the licensee from certain claims, and (iv) the dismissal of any pending litigation. In such instances, the intellectual property rights granted have been perpetual in nature, extending until the expiration of the related patents. Pursuant to the terms of these agreements, we had no further obligations. As such, the earnings process was complete and revenue has been recognized upon the execution of the agreement, when collectability was reasonably assured, and when all other revenue recognition criteria were met. Inventor Royalties and Contingent Legal Fees Inventor royalties and contingent legal fees are expensed in the consolidated statements of operations in the period that the related revenues are recognized. 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 and developing immuno-therapy drugs against cancer, 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”) 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 – The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of October 31, 2018: Level 1 Level 2 Level 3 Total Money market funds – Cash and cash equivalents $ 2,031,331 $ - $ - $ 2,031,331 Certificates of deposit – Cash and cash equivalents 750,000 - - 750,000 Short term investments - 2,000,000 - 2,000,000 Total financial assets 2,781,331 2,000,000 - 4,781,331 The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of October 31, 2017: Level 1 Level 2 Level 3 Total Money market funds – Cash and cash equivalents $ 3,079,282 $ - $ - $ 3,079,282 Certificates of deposit – Short term investments - 3,500,000 - 3,500,000 Total financial assets $ 3,079,282 $ 3,500,000 $ - $ 6,579,282 Our non-financial assets that are measured on a non-recurring basis include our patents and property and equipment which are measured using fair value techniques whenever events or changes in circumstances indicate a condition of impairment exists. The estimated fair value of prepaid expenses, accounts payable and accrued expenses approximates their individual carrying amounts due to the short-term nature of these measurements. Cash and Cash Equivalents 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, 2018 and 2017, we had certificates of deposit with maturities greater than 90 days and less than 12 months when acquired of $2,000,000 and $3,500,000, 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, 2018 and 2017. We recorded patent amortization expense of approximately $325,000 during each of the years ended October 31, 2018 and 2017. Impairment Long-lived assets, including intangible assets that are amortized, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates potential impairment by comparing the carrying amount of the assets with the estimated undiscounted future cash flows associated with them. Should the analysis indicate that an asset is not recoverable, the carrying value of the asset would be reduced to fair value and a corresponding charge would be recognized. In evaluating the carrying amount of capitalized patents at October 31, 2018, we determined that based on estimated undiscounted future cash flows a write-down of the carrying amount of approximately $583,000 should be recorded as of October 31, 2018. 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 and performance-based awards, or 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. Included in stock-based compensation cost for service based options granted to employees and directors during the years ended October 31, 2018 and 2017 was approximately $785,000 and $967,000, respectively, related to the amortization of compensation cost for stock options granted in prior periods but not yet vested. As of October 31, 2018, there was unrecognized compensation cost related to non-vested service based stock options granted to employees and directors of approximately $6,920,000, which will be recognized over a weighted-average period of 2.4 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, 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 account for stock options granted to consultants using the accounting guidance included in ASC 505-50 “Equity-Based Payments to Non-Employees” (“ASC 505-50”). In accordance with ASC 505-50, we estimate the fair value of service based stock options and performance based options at each reporting period, using the Black-Scholes pricing model. service based stock options We recorded consulting expense, related to service based and performance based stock options granted to consultants, during the years ended October 31, 2018 and 2017 of approximately $261,000 and $3,000, respectively. Included stock-based consulting expense for the year ended October 31, 2018 was approximately $47,000 related to compensation cost for stock options granted in prior periods but not yet vested. Stock-based consulting expense for the year ended October 31, 2017 did not include any amortization of compensation cost for stock options granted in prior periods. As of October 31, 2018, there was unrecognized consulting expense related to non-vested stock options granted to consultants, related to service based options of approximately $249,000, which will be recognized over a weighted-average period of 2.7 years. Fair Value Determination We use the Black-Scholes pricing model in estimating the fair value of stock options granted to employees and directors which vest over a specific period of time. The stock options we granted during the year ended October 31, 2018 consisted of awards with 10-year terms that vest over 12 to 36 months. The stock options we granted during the year ended October 31, 2017 consisted of awards with 10-year terms that vest over 6 to 48 months The following weighted average assumptions were used in estimating the fair value of stock options granted during the years ended October 31, 2018 and 2017: For the Year Ended October 31, 2018 2017 Weighted average fair value at grant date $3.31 $1.72 Valuation assumptions: Expected life (years) 5.74 5.63 Expected volatility 124.94% 119.2% Risk-free interest rate 2.80% 1.94% Expected dividend yield 0% 0% The expected term of stock options represents the weighted average period the stock options are expected to remain outstanding. 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. 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. For stock awards vested at date of grant we recognize expense based on the grant date market price of the underlying common stock. During the year ended October 31, 2017 we issued 200,000 shares vested at date of grant to directors for services rendered and recorded an expense of $454,000. We did not issue any stock awards vested at date of grant during fiscal year 2018. 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 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%. We account for stock awards granted to consultants in accordance with ASC 505-50. For stock awards vested at date of grant we recognize expense based on the grant date market price of the underlying common stock. During the years ended October 31, 2018 and 2017, we issued 9,463 shares and 5,347 shares, respectively, of common stock vested at date of grant to consultants for services rendered. We recorded consulting expense for the years ended October31, 2018 and 2017 of approximately $15,000 and $32,000, respectively, for the shares of common stock issued 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, 2018 and 2017, were options to purchase 7,405,868 and 3,447,846 shares, respectively, and warrants to purchase 829,400 shares and 829,400 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. Subsequent Events We evaluated all events and transactions that occurred after the balance sheet date through the date of this filing. During this period, the Company did not have any material subsequent events that impacted its financial statements. Effect of Recently Issued Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers. This amendment updates addressing revenue from contracts with customers, which clarifies existing accounting literature relating to how and when a company recognizes revenue. Under the standard, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. This standard update was effective for interim and annual reporting periods beginning after December 15, 2016, and was to be applied retrospectively or the cumulative effect as of the date of adoption, with early application not permitted. In July 2015, a one-year deferral of the effective date of the new guidance was approved. The Company adopted ASU 2014-09 on November 1, 2018. We do not expect the adoption of ASU 2014-09 to have a material impact on our In February 2016, the FASB issued Accounting Standards Update 2016-02 (“ASU 2016-02”) which requires lessees to recognize most leases on the balance sheet. This is expected to increase both reported assets and liabilities. The new lease standard does not substantially change lessor accounting. For public companies, the standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, although early adoption is permitted. Lessees and lessors will be required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. The requirements of this standard include a significant increase in required disclosures. The disclosure requirements of ASU 2016-02 will be effective for the Company on November 1, 2019. We began a detailed assessment of the impact that this guidance will have on our consolidated financial statements and related disclosures, and our analysis is currently ongoing. In May 2017, the FASB issued Accounting Standards Update 2017-09 (“ASU 2017-09”) that provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting. This update is effective for all entities for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted. 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 each fiscal year 2018 and 2017. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Oct. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 3. ACCRUED EXPENSES Accrued liabilities consist of the following as of: October 31, 2018 2017 Accrued severance costs $ - $ 237,563 Payroll and related expenses 62,965 51,643 Accrued royalty 366,670 - Accrued collaborative research and license expense 187,500 - Accrued other 65,964 119,963 $ 683,099 $ 409,169 |
PATENT ACQUISITION OBLIGATION
PATENT ACQUISITION OBLIGATION | 12 Months Ended |
Oct. 31, 2018 | |
Patent Acquisition Obligation [Abstract] | |
Patent Acquisition Obligation [Text Block] | 4. PATENT ACQUISITION OBLIGATION In November 2013, we incurred a patent acquisition obligation due no later than November 2017 related to the acquisition of patents. The payment due in November 2017 was payable at the option of the Company in cash or common stock. We recorded interest expense of approximately $228,000 for the year ended October 31, 2017 for the accretion of interest on patent acquisition obligation. On March 27, 2017, the Company issued 947,606 shares of common stock in satisfaction of the obligation. The carrying value of the patent acquisition obligation at the date of extinguishment was approximately $4,400,000. The fair value of the shares of common stock issued to satisfy the obligation on the date of extinguishment was approximately $2,843,000, resulting in the recognition of a gain on the debt extinguishment of approximately $1,548,000. |
SHAREHOLDERS` EQUITY
SHAREHOLDERS` EQUITY | 12 Months Ended |
Oct. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 5. SHAREHOLDERS’ EQUITY Stock Option Plans As of October 31, 2018, we have 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, 2018 and 2017, stock options to purchase 76,178 and 50,200 shares of common stock, respectively, were exercised with aggregate proceeds of approximately $58,000 and $7,000, respectively. Under certain circumstances, stock options may be exercised on a cashless basis. During the years ended October 31, 2018 and 2017, 9,459 and 9,980 shares of common stock, respectively, were withheld in connection with cashless exercises of stock options. 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, 2018 is as follows: Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Shares Options Outstanding at October 31, 2016 225,600 $ 18.69 Exercised (5,800) $ 1.39 Forfeited (189,200) $ 21.55 Options Outstanding at October 31, 2017 30,600 $ 3.16 Exercised (10,600) $ 0.67 Forfeited (8,000) $ 7.04 Options Outstanding and Exercisable at October 31, 2018 12,000 $ 2.77 $ 20,530 The following table summarizes information about stock options outstanding and exercisable under the 2003 Share Plan as of October 31, 2018: Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Range of Exercise Prices Number Outstanding $0.67 - $17.50 12,000 0.74 $ 2.77 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. As of October 31, 2018, the 2010 Share Plan had 291,394 shares available for future grants. Information regarding the 2010 Share Plan as of October 31, 2018 is as follows: Weighted Average Exercise Price Per Share Aggregate Value Shares Options Outstanding at October 31, 2016 1,080,872 $ 3.12 Granted 682,000 $ 2.03 Exercised (44,400) $ 0.67 Forfeited (81,226) $ 6.20 Options Outstanding at October 31, 2017 1,637,246 $ 1.50 Granted 610,000 $ 3.68 Exercised (65,578) $ 1.33 Forfeited (49,800) $ 2.15 Options Outstanding at October 31, 2018 2,131,868 $ 2.11 $ 4,366,005 Options Exercisable at October 31, 2018 1,421,037 $ 1.77 $ 3,324,421 The following table summarizes information about stock options outstanding under the 2010 Share Plan as of October 31, 2018: Options Outstanding Options Exercisable Weighted Average Remaining Contractual Life (in years) Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Weighted Average Exercise Price Range of Exercise Prices Number Outstanding Number Exercisable $0.67 938,000 6.69 $0.67 700,919 6.08 $0.67 $2.27 - $3.01 707,134 4.23 $2.61 632,134 4.58 $2.57 $3.46 - $7.00 486,734 8.89 $4.16 87,984 4.75 $4.76 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, 2018, the 2018 Share Plan had 18,000 shares available for future grants. Information regarding the 2018 Share Plan as of October 31, 2018 is as follows: Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Shares Options Outstanding at October 31, 2017 - Granted 3,482,000 $ 3.65 Options Outstanding at October 31, 2018 3,482,000 $ 3.73 $ 1,152,620 Options Exercisable at October 31, 2018 828,611 $ 3.71 $ 280,991 The following table summarizes information about stock options outstanding under the 2018 Share Plan as of October 31, 2018: Options Outstanding Options Exercisable Weighted Average Remaining Contractual Life (in years) Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Weighted Average Exercise Price Range of Exercise Prices Number Outstanding Number Exercisable $ 3.70 - $4.61 3,482,000 9.52 $3.73 828,611 9.52 $3.71 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 purchase 1,660,000 shares and 120,000 shares, respectively. Information regarding stock options that were not granted under the 2003 Share Plan, the 2010 Share Plan or the 2018 Share Plan for the two years ended October 31, 2018 is as follows: Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Shares Options Outstanding and exercisable at October 31, 2017 1,780,000 $ 1.58 Options Outstanding and exercisable at October 31, 2018 1,780,000 $ 1.58 $ 4,497,180 The following table summarizes information about stock options outstanding and exercisable that were not granted under the 2003 Share Plan, the 2010 Share Plan or the 2018 Share Plan as of October 31, 2017: Weighted Average Remaining Contractual Life (in years) Number Outstanding Exercisable Weighted Average Exercise Price Range of Exercise Prices $0.67 1,046,000 3.80 $0.67 $ 2.58 - $ 5.56 734,000 3.34 $2.88 Re-Priced Stock Options On September 6, 2017 the Board of Directors re-priced 2,029,600 issued and outstanding stock options (the “Re-Priced Options”) for all of the officers, directors and employees of the Company. The new exercise price of the Re-Priced Options is $0.67, the closing sales price of the Company’s common stock on September 6, 2017. All other terms of the previously granted Re-Priced Options remain the same. The Company recorded additional stock-based compensation of approximately $261,000, as of September 6, 2017, related to this re-pricing. This amount was determined to be the incremental value of the fair value of the Re-Priced Options compared to the fair value of the original option immediately before the re-pricing. Accordingly, 18,200 stock options in the 2003 Share Plan with exercise prices of $2.58, 965,400 stock options in the 2010 Share Plan with exercise prices ranging from $0.82 to $5.30 and 1,046,000 stock options that were not granted under the 2003 Share Plan or the 2010 Share plan with exercise prices of $2.58, were re-priced. Preferred Stock On November 11, 2016, the holder of all our outstanding Series A Preferred Stock (the “Series A Preferred”) with an aggregate stated value of $3,500,000 exercised its right of redemption to receive such amount from proceeds from the sale of the Company’s equity securities. On December 6, 2016, we entered into an agreement with the holder of the Series A Preferred setting forth the terms under which such redemption would take place (the “Series A Redemption Terms”). Pursuant to the Series A Redemption Terms, on December 9, 2016 the holder of the Series A Preferred received (i) $500,000 in cash, (ii) a 12% secured debenture evidencing the remaining $3,000,000 amount to be redeemed, $1,000,000 of which was due on or before June 1, 2017 and the remainder of which was due November 11, 2017 (the “Redemption Debenture”), and (iii) a 5 year warrant to purchase 500,000 shares of the Company’s common stock at an exercise price equal to 10% below the thirty (30) day volume weighted average closing price of our common stock at closing (the “Redemption Warrant”). The Redemption Debenture was secured by a lien on the Company’s assets and prohibited the Company from incurring any senior indebtedness other than equipment financing in connection with the Company’s business. The Redemption Debenture was paid in full during fiscal year 2017. Interest expense during the year ended October 31, 2017 in connection with the Redemption Debenture was approximately $272,000. The difference between the fair value of the consideration given to the holder of our Series A Preferred and the carrying value of the Series A Preferred represents a return to the preferred stockholder which is treated in a similar manner as that of dividends paid on preferred stock. In the redemption, the Series A Preferred holder received $500,000 in cash, the Redemption Debenture with a present value of approximately $2,999,000 and the Redemption Warrant with a fair value of approximately $2,801,000, determined using the Black Scholes pricing model, and waived the Series A Preferred’s conversion right with an intrinsic value of approximately $792,000, resulting in total consideration given to the Series A Preferred holder of approximately $5,508,000. The difference between the fair value of the consideration and the $3,500,000 carrying value of the Series A Preferred resulted in a deemed dividend to the Series A Preferred holder of approximately $2,009,000. Common Stock Purchase Warrants During the year ended October 31, 2018 we issued a warrant, expiring on June 5, 2021, to purchase 25,000 shares of common stock at $3.65 per share and recorded approximately $57,000 of consulting expense based on the fair value of the warrant. In October 2018, we issued 9,917 shares of common stock upon the exercise of the warrant on a cashless basis. As of October 31, 2018, we had warrants to purchase 10,000 shares and 10,000 shares of common stock at $9.25 and $13.875 per share, respectively, expiring on August 19, 2019, warrants to purchase 309,400 shares of common stock at $10.00 per share expiring on July 15, 2019 and warrants to purchase 500,000 shares of common stock at $5.03 per share expiring on November 30, 2021. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Oct. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 6. COMMITMENTS AND CONTINGENCIES 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 a lease that expires September 30, 2019. Our base rent is approximately $4,000 per month and the lease provides for annual increases of approximately 3% and an escalation clause for increases in certain operating costs. We also lease approximately 3,000 square feet of office space at 12100 Wilshire Boulevard, Los Angeles, California (our former executive offices) from an unrelated party pursuant to a lease that expires May 31, 2019. Our base rent is approximately $11,000 per month and the lease provides for annual increases of approximately 3% and an escalation clause for increases in certain operating costs. During the fourth quarter of fiscal 2017 we vacated the office space at 12100 Wilshire Boulevard, Los Angeles, California and as of October 31, 2018 we have accrued an expense of approximately $31,000 related to future rents of these facilities. Litigation Matters Other than below and lawsuits we bring to enforce our patent rights we are not a party to any material pending legal proceedings other than that which arise in the ordinary course of business. We believe that any liability that may ultimately result from the resolution of these matters will not, individually or in the aggregate, have a material adverse effect on our financial position or results of operations. On November 5, 2018, a putative shareholder derivative complaint was filed in the Court of Chancery of the State of Delaware, captioned Howland v. Kumar et al., C.A. No. 2018-0804-KSJM, that alleges claims for breach of fiduciary duty and unjust enrichment. The complaint named as defendants certain of the Company’s current and former officers and directors, and the Company is named solely as a nominal defendant. The complaint seeks, on behalf of the Company, a declaration that the defendant officers and directors breached their fiduciary duties, unspecified damages, certain changes to the Company’s internal procedures, and an award of the plaintiff’s attorneys’ fees and costs. The defendants moved to dismiss the complaint on November 29, 2018 and the parties are currently engaged in briefing the motion. Due to the early nature of the complaint and that the complaint does not specify a dollar amount of damages, we cannot make a reasonable estimate of potential losses at this time. Collaborative Agreement with Moffitt As of October 31, 2018, our commitments under the collaborative agreement with Moffitt for the years ending October 31, 2019 and 2020 were approximately $455,000 and $228,000, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 7. INCOME TAXES Income tax provision (benefit) consists of the following: Year Ended October 31, 2018 2017 Federal: Current $ - $ - Deferred (1,784,000) 12,534,000 State: Current - - Deferred (1,206,000) 4,351,000 Adjustment to valuation allowance related to net deferred tax assets 2,990,000 (16,885,000) $ - $ - The tax effects of temporary differences that give rise to significant portions of the deferred tax asset, net, at October 31, 2018 and 2017, are as follows: 2018 2017 Long-term deferred tax assets: Federal and state NOL and tax credit carryforwards $ 19,282,000 $ 18,961,000 Deferred compensation 6,176,000 3,718,000 Intangibles 754,000 543,000 Other 205,000 205,000 Subtotal 26,417,000 23,427,000 Less: valuation allowance (26,417,000) (23,427,000) Deferred tax asset, net $ - $ - As a result of the passing of the Tax Cuts and Jobs Act of 2017, management has determined that the federal statutory rate used to estimate the benefit of the deferred tax asset or liability should be changed from 34% to 21%. As of October 31, 2018, we had tax net operating loss and tax credit carryforwards of approximately $82,686,000 and $1,398,000, respectively, available within statutory limits (expiring at various dates between 2019 and 2038), 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, 2018, management has not determined the extent of any such limitations, if any. We had New York and California tax net operating loss carryforwards of approximately $70,611,000 and $14,581,000, respectively, as of October 31, 2018, available within statutory limits (expiring at various dates between 2019 and 2038), 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 blended federal statutory rate in effect for our fiscal year ended October 31, 2018 of 23% and the effective rate of 0% is attributable to certain permanent differences 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, 2018 2017 Income tax benefit at U.S. Federal statutory income tax rate $ (3,276,000) (23.0)% $ (1,703,000) (34.0)% State income taxes (1,259,000) (8.84)% (443,000) (8.84)% Permanent differences 14,000 0.10% (10,000) (0.20)% Expiring net operating losses, credits and other 1,246,000 9.12% - - Rate changes 285,000 2.00% 19,041,000 380.13% Change in valuation allowance 2,990,000 20.62% (16,885,000) (337.09)% Income tax provision $ - 0.0% $ - 0.0% During the two fiscal years ended October 31, 2018, we incurred no Federal and no State income taxes. We have no unrecognized tax benefits as of October 31, 2018 and 2017 and we account for interest and penalties related to income tax matters in marketing, general and administrative expenses. Tax years to which our net operating losses relate remain open to examination by Federal authorities and other jurisdictions to the extent which the net operating losses have yet to be utilized. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Oct. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 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 three reportable segments, each with different operating and potential revenue generating characteristics: (i) development of our Cchek™ cancer detection platform, (ii) development of CAR-T therapeutics and (iii) our legacy patent licensing activities. The following represents selected financial information for our segments for the years ended October 31, 2018 and 2017: 2018 2017 Net income (loss): Cchek™ cancer detection platform $ (5,920,457) $ (5,014,164) CAR-T therapeutics (7,073,322) (504,405) Patent licensing (1,249,305) 509,578 Total $ (14,243,084) $ (5,008,991) Operating costs and expenses $ 15,401,558 $ 6,438,084 Less non-cash share based compensation (8,895,614) (1,676,772) Operating costs and expenses excluding non-cash $ 6,505,944 $ 4,761,312 Operating costs and expenses excluding non-cash share based compensation: Cchek™ cancer detection platform $ 2,431,810 $ 3,659,280 CAR-T therapeutics 2,120,614 342,064 Patent licensing 1,953,520 759,968 Total $ 6,505,944 $ 4,761,312 Total assets: Cchek™ cancer detection platform $ 2,545,803 $ 5,684,915 CAR-T therapeutics 2,157,359 521,326 Patent licensing 1,745,380 2,606,175 Total $ 6,448,542 $ 8,812,416 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 $1,112,500 and impairment in carrying amount of patent assets of $582,979 for the year ended October 31, 2018 were solely related to our patent licensing segment. The Company’s consolidated revenue of $362,500, gain on extinguishment of patent acquisition obligation of $1,547,608 and interest expense of $500,455 for the year ended October 31, 2017 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. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Oct. 31, 2018 | |
Accounting Policies, by Policy (Policies) [Line Items] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The consolidated financial statements include the accounts of Anixa Biosciences, Inc. and its wholly owned subsidiaries. All intercompany transactions have been eliminated. |
Noncontrolling Interest, Policy [Policy Text Block] | 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 year ended October 31, 2018: Balance October 31, 2017 $ - Issuance of noncontrolling interest in Certainty (4,318) Net loss attributable to noncontrolling interest (247,059) Balance October 31, 2018 $ (251,377) |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Revenue is recognized when (i) persuasive evidence of an arrangement exists, (ii) all obligations have been substantially performed pursuant to the terms of the arrangement, (iii) amounts are fixed or determinable, and (iv) the collectability of amounts is reasonably assured. Patent Licensing In certain instances, our past revenue arrangements have provided for the payment of contractually determined fees in settlement of litigation and in consideration for the grant of certain intellectual property rights for patented technologies owned or controlled by the Company. These arrangements typically include some combination of the following: (i) the grant of a non-exclusive, retroactive and future license to manufacture and/or sell products covered by patented technologies owned or controlled by the Company, (ii) a covenant-not-to-sue, (iii) the release of the licensee from certain claims, and (iv) the dismissal of any pending litigation. In such instances, the intellectual property rights granted have been perpetual in nature, extending until the expiration of the related patents. Pursuant to the terms of these agreements, we had no further obligations. As such, the earnings process was complete and revenue has been recognized upon the execution of the agreement, when collectability was reasonably assured, and when all other revenue recognition criteria were met. Inventor Royalties and Contingent Legal Fees Inventor royalties and contingent legal fees are expensed in the consolidated statements of operations in the period that the related revenues are recognized. |
Research and Development Expense, Policy [Policy Text Block] | 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 and developing immuno-therapy drugs against cancer, are expensed in the consolidated financial statements in the year incurred. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures” (“ASC 820”) 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 – The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of October 31, 2018: Level 1 Level 2 Level 3 Total Money market funds – Cash and cash equivalents $ 2,031,331 $ - $ - $ 2,031,331 Certificates of deposit – Cash and cash equivalents 750,000 - - 750,000 Short term investments - 2,000,000 - 2,000,000 Total financial assets 2,781,331 2,000,000 - 4,781,331 The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of October 31, 2017: Level 1 Level 2 Level 3 Total Money market funds – Cash and cash equivalents $ 3,079,282 $ - $ - $ 3,079,282 Certificates of deposit – Short term investments - 3,500,000 - 3,500,000 Total financial assets $ 3,079,282 $ 3,500,000 $ - $ 6,579,282 Our non-financial assets that are measured on a non-recurring basis include our patents and property and equipment which are measured using fair value techniques whenever events or changes in circumstances indicate a condition of impairment exists. The estimated fair value of prepaid expenses, accounts payable and accrued expenses approximates their individual carrying amounts due to the short-term nature of these measurements. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash equivalents consists of highly liquid, short-term investments with original maturities of three months or less when purchased. |
Investment, Policy [Policy Text Block] | Short-term Investments At October 31, 2018 and 2017, we had certificates of deposit with maturities greater than 90 days and less than 12 months when acquired of $2,000,000 and $3,500,000, respectively, that were classified as short-term investments and reported at fair value. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment Long-lived assets, including intangible assets that are amortized, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates potential impairment by comparing the carrying amount of the assets with the estimated undiscounted future cash flows associated with them. Should the analysis indicate that an asset is not recoverable, the carrying value of the asset would be reduced to fair value and a corresponding charge would be recognized. In evaluating the carrying amount of capitalized patents at October 31, 2018, we determined that based on estimated undiscounted future cash flows a write-down of the carrying amount of approximately $583,000 should be recorded as of October 31, 2018. |
Income Tax, Policy [Policy Text Block] | 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, Option and Incentive Plans Policy [Policy Text Block] | 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 and performance-based awards, or stock units to employees, non-employee directors and consultants. |
Compensation Related Costs, Policy [Policy Text Block] | 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. Included in stock-based compensation cost for service based options granted to employees and directors during the years ended October 31, 2018 and 2017 was approximately $785,000 and $967,000, respectively, related to the amortization of compensation cost for stock options granted in prior periods but not yet vested. As of October 31, 2018, there was unrecognized compensation cost related to non-vested service based stock options granted to employees and directors of approximately $6,920,000, which will be recognized over a weighted-average period of 2.4 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, 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 account for stock options granted to consultants using the accounting guidance included in ASC 505-50 “Equity-Based Payments to Non-Employees” (“ASC 505-50”). In accordance with ASC 505-50, we estimate the fair value of service based stock options and performance based options at each reporting period, using the Black-Scholes pricing model. service based stock options We recorded consulting expense, related to service based and performance based stock options granted to consultants, during the years ended October 31, 2018 and 2017 of approximately $261,000 and $3,000, respectively. Included stock-based consulting expense for the year ended October 31, 2018 was approximately $47,000 related to compensation cost for stock options granted in prior periods but not yet vested. Stock-based consulting expense for the year ended October 31, 2017 did not include any amortization of compensation cost for stock options granted in prior periods. As of October 31, 2018, there was unrecognized consulting expense related to non-vested stock options granted to consultants, related to service based options of approximately $249,000, which will be recognized over a weighted-average period of 2.7 years. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Determination We use the Black-Scholes pricing model in estimating the fair value of stock options granted to employees and directors which vest over a specific period of time. The stock options we granted during the year ended October 31, 2018 consisted of awards with 10-year terms that vest over 12 to 36 months. The stock options we granted during the year ended October 31, 2017 consisted of awards with 10-year terms that vest over 6 to 48 months The following weighted average assumptions were used in estimating the fair value of stock options granted during the years ended October 31, 2018 and 2017: For the Year Ended October 31, 2018 2017 Weighted average fair value at grant date $3.31 $1.72 Valuation assumptions: Expected life (years) 5.74 5.63 Expected volatility 124.94% 119.2% Risk-free interest rate 2.80% 1.94% Expected dividend yield 0% 0% The expected term of stock options represents the weighted average period the stock options are expected to remain outstanding. 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. 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. |
Share-based Compensation, Option and Incentive Plans, Director Policy [Policy Text Block] | Stock Award Compensation Expense We account for stock awards granted to employees and directors in accordance with ASC 718. For stock awards vested at date of grant we recognize expense based on the grant date market price of the underlying common stock. During the year ended October 31, 2017 we issued 200,000 shares vested at date of grant to directors for services rendered and recorded an expense of $454,000. We did not issue any stock awards vested at date of grant during fiscal year 2018. 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 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%. We account for stock awards granted to consultants in accordance with ASC 505-50. For stock awards vested at date of grant we recognize expense based on the grant date market price of the underlying common stock. During the years ended October 31, 2018 and 2017, we issued 9,463 shares and 5,347 shares, respectively, of common stock vested at date of grant to consultants for services rendered. We recorded consulting expense for the years ended October31, 2018 and 2017 of approximately $15,000 and $32,000, respectively, for the shares of common stock issued to consultants. |
Earnings Per Share, Policy [Policy Text Block] | 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, 2018 and 2017, were options to purchase 7,405,868 and 3,447,846 shares, respectively, and warrants to purchase 829,400 shares and 829,400 shares, respectively. |
Use of Estimates, Policy [Policy Text Block] | 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. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events We evaluated all events and transactions that occurred after the balance sheet date through the date of this filing. During this period, the Company did not have any material subsequent events that impacted its financial statements. |
New Accounting Pronouncements, Policy [Policy Text Block] | Effect of Recently Issued Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers. This amendment updates addressing revenue from contracts with customers, which clarifies existing accounting literature relating to how and when a company recognizes revenue. Under the standard, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. This standard update was effective for interim and annual reporting periods beginning after December 15, 2016, and was to be applied retrospectively or the cumulative effect as of the date of adoption, with early application not permitted. In July 2015, a one-year deferral of the effective date of the new guidance was approved. The Company adopted ASU 2014-09 on November 1, 2018. We do not expect the adoption of ASU 2014-09 to have a material impact on our In February 2016, the FASB issued Accounting Standards Update 2016-02 (“ASU 2016-02”) which requires lessees to recognize most leases on the balance sheet. This is expected to increase both reported assets and liabilities. The new lease standard does not substantially change lessor accounting. For public companies, the standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, although early adoption is permitted. Lessees and lessors will be required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. The requirements of this standard include a significant increase in required disclosures. The disclosure requirements of ASU 2016-02 will be effective for the Company on November 1, 2019. We began a detailed assessment of the impact that this guidance will have on our consolidated financial statements and related disclosures, and our analysis is currently ongoing. In May 2017, the FASB issued Accounting Standards Update 2017-09 (“ASU 2017-09”) that provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting. This update is effective for all entities for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | 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 each fiscal year 2018 and 2017. |
Patents [Member] | |
Accounting Policies, by Policy (Policies) [Line Items] | |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | 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, 2018 and 2017. We recorded patent amortization expense of approximately $325,000 during each of the years ended October 31, 2018 and 2017. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule Of Changes In Noncontrolling Interest [Table Text Block] | Balance October 31, 2017 $ - Issuance of noncontrolling interest in Certainty (4,318) Net loss attributable to noncontrolling interest (247,059) Balance October 31, 2018 $ (251,377) |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Level 1 Level 2 Level 3 Total Money market funds – Cash and cash equivalents $ 2,031,331 $ - $ - $ 2,031,331 Certificates of deposit – Cash and cash equivalents 750,000 - - 750,000 Short term investments - 2,000,000 - 2,000,000 Total financial assets 2,781,331 2,000,000 - 4,781,331 Level 1 Level 2 Level 3 Total Money market funds – Cash and cash equivalents $ 3,079,282 $ - $ - $ 3,079,282 Certificates of deposit – Short term investments - 3,500,000 - 3,500,000 Total financial assets $ 3,079,282 $ 3,500,000 $ - $ 6,579,282 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | For the Year Ended October 31, 2018 2017 Weighted average fair value at grant date $3.31 $1.72 Valuation assumptions: Expected life (years) 5.74 5.63 Expected volatility 124.94% 119.2% Risk-free interest rate 2.80% 1.94% Expected dividend yield 0% 0% |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | October 31, 2018 2017 Accrued severance costs $ - $ 237,563 Payroll and related expenses 62,965 51,643 Accrued royalty 366,670 - Accrued collaborative research and license expense 187,500 - Accrued other 65,964 119,963 $ 683,099 $ 409,169 |
SHAREHOLDERS` EQUITY (Tables)
SHAREHOLDERS` EQUITY (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
2003 Share Plan [Member] | |
SHAREHOLDERS` EQUITY (Tables) [Line Items] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Shares Options Outstanding at October 31, 2016 225,600 $ 18.69 Exercised (5,800) $ 1.39 Forfeited (189,200) $ 21.55 Options Outstanding at October 31, 2017 30,600 $ 3.16 Exercised (10,600) $ 0.67 Forfeited (8,000) $ 7.04 Options Outstanding and Exercisable at October 31, 2018 12,000 $ 2.77 $ 20,530 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Range of Exercise Prices Number Outstanding $0.67 - $17.50 12,000 0.74 $ 2.77 |
2010 Share Plan [Member] | |
SHAREHOLDERS` EQUITY (Tables) [Line Items] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted Average Exercise Price Per Share Aggregate Value Shares Options Outstanding at October 31, 2016 1,080,872 $ 3.12 Granted 682,000 $ 2.03 Exercised (44,400) $ 0.67 Forfeited (81,226) $ 6.20 Options Outstanding at October 31, 2017 1,637,246 $ 1.50 Granted 610,000 $ 3.68 Exercised (65,578) $ 1.33 Forfeited (49,800) $ 2.15 Options Outstanding at October 31, 2018 2,131,868 $ 2.11 $ 4,366,005 Options Exercisable at October 31, 2018 1,421,037 $ 1.77 $ 3,324,421 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options Outstanding Options Exercisable Weighted Average Remaining Contractual Life (in years) Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Weighted Average Exercise Price Range of Exercise Prices Number Outstanding Number Exercisable $0.67 938,000 6.69 $0.67 700,919 6.08 $0.67 $2.27 - $3.01 707,134 4.23 $2.61 632,134 4.58 $2.57 $3.46 - $7.00 486,734 8.89 $4.16 87,984 4.75 $4.76 |
2018 Share Plan [Member] | |
SHAREHOLDERS` EQUITY (Tables) [Line Items] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Shares Options Outstanding at October 31, 2017 - Granted 3,482,000 $ 3.65 Options Outstanding at October 31, 2018 3,482,000 $ 3.73 $ 1,152,620 Options Exercisable at October 31, 2018 828,611 $ 3.71 $ 280,991 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options Outstanding Options Exercisable Weighted Average Remaining Contractual Life (in years) Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Weighted Average Exercise Price Range of Exercise Prices Number Outstanding Number Exercisable $ 3.70 - $4.61 3,482,000 9.52 $3.73 828,611 9.52 $3.71 |
Stock Options Not Granted Under 2003 Share Plan 2010 Share Plan Or 2018 Share Plan [Member] | |
SHAREHOLDERS` EQUITY (Tables) [Line Items] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Shares Options Outstanding and exercisable at October 31, 2017 1,780,000 $ 1.58 Options Outstanding and exercisable at October 31, 2018 1,780,000 $ 1.58 $ 4,497,180 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Weighted Average Remaining Contractual Life (in years) Number Outstanding Exercisable Weighted Average Exercise Price Range of Exercise Prices $0.67 1,046,000 3.80 $0.67 $ 2.58 - $ 5.56 734,000 3.34 $2.88 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended October 31, 2018 2017 Federal: Current $ - $ - Deferred (1,784,000) 12,534,000 State: Current - - Deferred (1,206,000) 4,351,000 Adjustment to valuation allowance related to net deferred tax assets 2,990,000 (16,885,000) $ - $ - |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2018 2017 Long-term deferred tax assets: Federal and state NOL and tax credit carryforwards $ 19,282,000 $ 18,961,000 Deferred compensation 6,176,000 3,718,000 Intangibles 754,000 543,000 Other 205,000 205,000 Subtotal 26,417,000 23,427,000 Less: valuation allowance (26,417,000) (23,427,000) Deferred tax asset, net $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended October 31, 2018 2017 Income tax benefit at U.S. Federal statutory income tax rate $ (3,276,000) (23.0)% $ (1,703,000) (34.0)% State income taxes (1,259,000) (8.84)% (443,000) (8.84)% Permanent differences 14,000 0.10% (10,000) (0.20)% Expiring net operating losses, credits and other 1,246,000 9.12% - - Rate changes 285,000 2.00% 19,041,000 380.13% Change in valuation allowance 2,990,000 20.62% (16,885,000) (337.09)% Income tax provision $ - 0.0% $ - 0.0% |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 2018 2017 Net income (loss): Cchek™ cancer detection platform $ (5,920,457) $ (5,014,164) CAR-T therapeutics (7,073,322) (504,405) Patent licensing (1,249,305) 509,578 Total $ (14,243,084) $ (5,008,991) Operating costs and expenses $ 15,401,558 $ 6,438,084 Less non-cash share based compensation (8,895,614) (1,676,772) Operating costs and expenses excluding non-cash $ 6,505,944 $ 4,761,312 Operating costs and expenses excluding non-cash share based compensation: Cchek™ cancer detection platform $ 2,431,810 $ 3,659,280 CAR-T therapeutics 2,120,614 342,064 Patent licensing 1,953,520 759,968 Total $ 6,505,944 $ 4,761,312 Total assets: Cchek™ cancer detection platform $ 2,545,803 $ 5,684,915 CAR-T therapeutics 2,157,359 521,326 Patent licensing 1,745,380 2,606,175 Total $ 6,448,542 $ 8,812,416 |
BUSINESS AND FUNDING (Details)
BUSINESS AND FUNDING (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Accounting Policies [Abstract] | ||
Net Cash Provided by (Used in) Operating Activities | $ (4,273,400) | $ (3,796,710) |
Net Cash Provided by (Used in) Investing Activities | 1,461,596 | (2,735,188) |
Proceeds from Sale of Short-term Investments | 5,750,000 | 2,751,000 |
Payments to Acquire Short-term Investments | 4,250,000 | 5,501,000 |
Payments to Acquire Property, Plant, and Equipment | 38,404 | 30,188 |
Net Cash Provided by (Used in) Financing Activities | 2,528,320 | 7,382,949 |
Proceeds from Issuance of Common Stock | 2,470,182 | 3,460,586 |
Proceeds from Stock Options Exercised | 58,138 | 7,273 |
Cash, Period Increase (Decrease) | 1,783,000 | |
Cash, Cash Equivalents, and Short-term Investments | $ 5,056,000 | $ 6,839,000 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | May 08, 2018 | Oct. 31, 2018 | Oct. 31, 2017 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Certificates of Deposit, at Carrying Value | $ 2,000,000 | $ 3,500,000 | |
Amortization of Intangible Assets | 325,296 | 325,296 | |
Impairment of Intangible Assets (Excluding Goodwill) | 582,979 | ||
Amortization Related To Compensation Cost | 47,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 249,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 255 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years 270 days | 5 years 229 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 124.94% | 119.20% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.80% | 1.94% | |
Consultation Expense | $ 261,000 | $ 3,000 | |
Employee Stock Option [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Share-based Compensation | $ 3,759,000 | 1,959,000 | 1,223,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 375,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award (in Shares) | 1,500,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ 3.70 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 119.60% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.97% | ||
Employee Stock Option [Member] | Employees And Directors [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Amortization Related To Compensation Cost | 785,000 | $ 967,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 6,920,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 146 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | 10 years | |
Employee Stock Option [Member] | Director [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Share-based Compensation | $ 454,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in Shares) | 200,000 | ||
Employee Stock Option [Member] | Consultant [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Consultation Expense | $ 15,000 | $ 32,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in Shares) | 9,463 | 5,347 | |
Restricted Stock [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Share-based Compensation | $ 2,860,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,954,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased (in Dollars per share) | $ 3.70 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ 11 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years 21 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 128.80% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.66% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 1,500,000 | ||
Minimum [Member] | Employee Stock Option [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased (in Dollars per share) | $ 5 | ||
Minimum [Member] | Employee Stock Option [Member] | Employees And Directors [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 12 months | 6 months | |
Maximum [Member] | Employee Stock Option [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased (in Dollars per share) | $ 8 | ||
Maximum [Member] | Employee Stock Option [Member] | Employees And Directors [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 36 months | 48 months | |
Employee Stock Option [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 7,405,868 | 3,447,846 | |
Warrant [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 829,400 | 829,400 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Changes in noncontrolling interest - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Changes in noncontrolling interest [Abstract] | ||
Balance October 31, 2017 | ||
Issuance of noncontrolling interest in Certainty | (4,318) | |
Net loss attributable to noncontrolling interest | (247,059) | |
Balance October 31, 2018 | $ (251,377) |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis - USD ($) | Oct. 31, 2018 | Oct. 31, 2017 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets | $ 4,781,331 | $ 6,579,282 |
Fair Value, Inputs, Level 1 [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets | 2,781,331 | 3,079,282 |
Fair Value, Inputs, Level 2 [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets | 2,000,000 | 3,500,000 |
Fair Value, Inputs, Level 3 [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets | ||
Money Market Funds [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets | 2,031,331 | 3,079,282 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets | 2,031,331 | 3,079,282 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets | ||
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets | ||
Certificates of Deposit [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets | 750,000 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets | 750,000 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets | ||
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets | ||
Certificates of Deposit [Member] | Short-term Investments [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets | 2,000,000 | 3,500,000 |
Certificates of Deposit [Member] | Short-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets | ||
Certificates of Deposit [Member] | Short-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets | 2,000,000 | 3,500,000 |
Certificates of Deposit [Member] | Short-term Investments [Member] | Fair Value, Inputs, Level 3 [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Hierarchy for our financial assets and liabilities measured at fair value on a recurring basis [Line Items] | ||
Financial assets |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Weighted average assumptions used in estimating the fair value of stock options - $ / shares | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Weighted average assumptions used in estimating the fair value of stock options [Abstract] | ||
Weighted average fair value at grant date (in Dollars per share) | $ 3.31 | $ 1.72 |
Valuation assumptions: | ||
Expected life (years) | 5 years 270 days | 5 years 229 days |
Expected volatility | 124.94% | 119.20% |
Risk-free interest rate | 2.80% | 1.94% |
Expected dividend yield | 0.00% | 0.00% |
ACCRUED EXPENSES (Details) - Ac
ACCRUED EXPENSES (Details) - Accrued liabilities - USD ($) | Oct. 31, 2018 | Oct. 31, 2017 |
Accrued liabilities [Abstract] | ||
Accrued severance costs | $ 237,563 | |
Payroll and related expenses | 62,965 | 51,643 |
Accrued royalty | 366,670 | |
Accrued collaborative research and license expense | 187,500 | |
Accrued other | 65,964 | 119,963 |
Total | $ 683,099 | $ 409,169 |
PATENT ACQUISITION OBLIGATION (
PATENT ACQUISITION OBLIGATION (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
Patent Acquisition Obligation [Abstract] | |||
Stock Issued During Period, Shares, Acquisitions (in Shares) | 947,606 | 228,000 | |
Patent Acquisition Obligation | $ 4,400,000 | ||
Stock Issued During Period, Value, Acquisitions | $ 2,843,000 | ||
Gain (Loss) on Extinguishment of Debt | $ 1,547,608 |
SHAREHOLDERS` EQUITY (Details)
SHAREHOLDERS` EQUITY (Details) - USD ($) | Sep. 06, 2017 | Dec. 06, 2016 | Oct. 31, 2018 | Oct. 31, 2017 | Nov. 11, 2016 | Oct. 31, 2016 |
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Proceeds from Stock Options Exercised (in Dollars) | $ 58,138 | $ 7,273 | ||||
Preferred Stock, Value, Issued (in Dollars) | ||||||
Conversion of Stock, Amount Converted (in Dollars) | 3,000,000 | |||||
Consultation Expense (in Dollars) | $ 261,000 | $ 3,000 | ||||
Employee Stock Option [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 76,178 | 50,200 | ||||
Proceeds from Stock Options Exercised (in Dollars) | $ 58,000 | $ 7,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Withheld in Connection with Cashless Exercises | 9,459 | 9,980 | ||||
Re-Priced Options [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,029,600 | |||||
Series A Preferred Stock [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Preferred Stock, Value, Issued (in Dollars) | $ 3,500,000 | |||||
Preferred Stock, Redemption Terms | Pursuant to the Series A Redemption Terms, on December 9, 2016 the holder of the Series A Preferred received (i) $500,000 in cash, (ii) a 12% secured debenture evidencing the remaining $3,000,000 amount to be redeemed, $1,000,000 of which was due on or before June 1, 2017 and the remainder of which was due November 11, 2017 (the “Redemption Debenture”), and (iii) a 5 year warrant to purchase 500,000 shares of the Company’s common stock at an exercise price equal to 10% below the thirty (30) day volume weighted average closing price of our common stock at closing (the “Redemption Warrant”) | |||||
Interest Expense, Long-term Debt (in Dollars) | 272,000 | |||||
Preferred Stock, Redemption Amount (in Dollars) | 500,000 | |||||
Long-term Debt, Gross (in Dollars) | 2,999,000 | |||||
Warrants and Rights Outstanding (in Dollars) | 2,801,000 | |||||
Conversion of Stock, Amount Converted (in Dollars) | 792,000 | |||||
Conversion of Stock, Amount Issued (in Dollars) | 5,508,000 | |||||
Preferred Stock, Value, Outstanding (in Dollars) | 3,500,000 | |||||
Redeemable Preferred Stock Dividends (in Dollars) | $ 2,009,000 | |||||
Warrant with Exercise Price of $3.65 [Member] | Common Stock [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Investment Warrants Expiration Date | Jun. 5, 2021 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 25,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 3.65 | |||||
Consultation Expense (in Dollars) | $ 57,000 | |||||
Stock Issued During Period, Shares, Other | 9,917 | |||||
Warrant with Exercise Price of $9.25 [Member] | Common Stock [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Investment Warrants Expiration Date | Aug. 19, 2019 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 10,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 9.25 | |||||
Warrant with Exercise Price of $13.875 [Member] | Common Stock [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Investment Warrants Expiration Date | Aug. 19, 2019 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 10,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 13.875 | |||||
Warrant with Exercise Price of $10.00 [Member] | Common Stock [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Investment Warrants Expiration Date | Jul. 15, 2019 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 309,400 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 10 | |||||
Warrant with Exercise Price of $5.03 [Member] | Common Stock [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Investment Warrants Expiration Date | Nov. 30, 2021 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 500,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 5.03 | |||||
2010 Share Plan [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 65,578 | 44,400 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 610,000 | 682,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,131,868 | 1,637,246 | 1,080,872 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ 2.11 | $ 1.50 | $ 3.12 | |||
2010 Share Plan [Member] | Employee Stock Option [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 800,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 291,394 | |||||
2010 Share Plan [Member] | Re-Priced Options [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 965,400 | |||||
2010 Share Plan [Member] | Minimum [Member] | Re-Priced Options [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ 0.82 | |||||
2010 Share Plan [Member] | Maximum [Member] | Re-Priced Options [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | 5.30 | |||||
2018 Share Plan [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,482,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,482,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ 3.73 | |||||
2018 Share Plan [Member] | Employee Stock Option [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,000,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 18,000 | |||||
Stock Options Not Granted Under 2003 Share Plan 2010 Share Plan Or 2018 Share Plan [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ 0.67 | |||||
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost (in Dollars) | $ 261,000 | |||||
Stock Options Not Granted Under 2003 Share Plan 2010 Share Plan Or 2018 Share Plan [Member] | Employee Stock Option [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,660,000 | 120,000 | ||||
Stock Options Not Granted Under 2003 Share Plan 2010 Share Plan Or 2018 Share Plan [Member] | Re-Priced Options [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,046,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ 2.58 | |||||
2003 Share Plan [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 10,600 | 5,800 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 30,600 | 225,600 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ 3.16 | $ 18.69 | ||||
2003 Share Plan [Member] | Re-Priced Options [Member] | ||||||
SHAREHOLDERS` EQUITY (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 18,200 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ 2.58 |
SHAREHOLDERS` EQUITY (Details)
SHAREHOLDERS` EQUITY (Details) - Information regarding the 2003 Share Plan - 2003 Share Plan [Member] - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
SHAREHOLDERS` EQUITY (Details) - Information regarding the 2003 Share Plan [Line Items] | ||
Options Outstanding | 30,600 | 225,600 |
Options Outstanding | $ 3.16 | $ 18.69 |
Exercised | (10,600) | (5,800) |
Exercised | $ 0.67 | $ 1.39 |
Forfeited | (8,000) | (189,200) |
Forfeited | $ 7.04 | $ 21.55 |
Options Outstanding and Exercisable | 12,000 | |
Options Outstanding and Exercisable | $ 2.77 | |
Options Outstanding and Exercisable | $ 20,530 |
SHAREHOLDERS` EQUITY (Details_2
SHAREHOLDERS` EQUITY (Details) - Stock options outstanding and exercisable under the 2003 Share Plan - 2003 Share Plan [Member] - Range Of Exercise Prices $0.67 To $17.50 [Member] | 12 Months Ended |
Oct. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstnding and Exercisable, Numbers | shares | 12,000 |
Options Outstanding and Exercisable, Weighted Average Remaining Contractual Life | 270 days |
Options Outstanding and Exercisable, Weighted Average Exercise Price | $ / shares | $ 2.77 |
SHAREHOLDERS` EQUITY (Details_3
SHAREHOLDERS` EQUITY (Details) - Information regarding the 2010 Share Plan - 2010 Share Plan [Member] - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
SHAREHOLDERS` EQUITY (Details) - Information regarding the 2010 Share Plan [Line Items] | ||
Options Outstanding | 1,637,246 | 1,080,872 |
Options Outstanding | $ 1.50 | $ 3.12 |
Granted | 610,000 | 682,000 |
Granted | $ 3.68 | $ 2.03 |
Exercised | (65,578) | (44,400) |
Exercised | $ 1.33 | $ 0.67 |
Forfeited | (49,800) | (81,226) |
Forfeited | $ 2.15 | $ 6.20 |
Options Outstanding | 2,131,868 | 1,637,246 |
Options Outstanding | $ 2.11 | $ 1.50 |
Options Outstanding | $ 4,366,005 | |
Options Exercisable | 1,421,037 | |
Options Exercisable | $ 1.77 | |
Options Exercisable | $ 3,324,421 |
SHAREHOLDERS` EQUITY (Details_4
SHAREHOLDERS` EQUITY (Details) - Stock options outstanding and exercisable under the 2010 Share Plan - 2010 Share Plan [Member] | 12 Months Ended |
Oct. 31, 2018$ / sharesshares | |
Range Of Exercise Prices $0.67 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number | shares | 938,000 |
Options Outstanding,Weighted Average Remaining Contractual Life | 6 years 251 days |
Options Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.67 |
Options Exercisable, Number | shares | 700,919 |
Options Exercisable,Weighted Average Remaining Contractual Life | 6 years 29 days |
Options Exercisable, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.67 |
Range Of Exercise Prices $2.27 To $3.01 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number | shares | 707,134 |
Options Outstanding,Weighted Average Remaining Contractual Life | 4 years 83 days |
Options Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 2.61 |
Options Exercisable, Number | shares | 632,134 |
Options Exercisable,Weighted Average Remaining Contractual Life | 4 years 211 days |
Options Exercisable, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 2.57 |
Range Of Exercise Prices $3.46 To $7.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number | shares | 486,734 |
Options Outstanding,Weighted Average Remaining Contractual Life | 8 years 324 days |
Options Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 4.16 |
Options Exercisable, Number | shares | 87,984 |
Options Exercisable,Weighted Average Remaining Contractual Life | 4 years 9 months |
Options Exercisable, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 4.76 |
SHAREHOLDERS` EQUITY (Details_5
SHAREHOLDERS` EQUITY (Details) - Information regarding the 2018 Share Plan - 2018 Share Plan [Member] | 12 Months Ended |
Oct. 31, 2018USD ($)$ / sharesshares | |
SHAREHOLDERS` EQUITY (Details) - Information regarding the 2018 Share Plan [Line Items] | |
Options Outstanding | |
Options Outstanding | 3,482,000 |
Options Outstanding (in Dollars per share) | $ / shares | $ 3.73 |
Options Outstanding (in Dollars) | $ | $ 1,152,620 |
Options Exercisable | 828,611 |
Options Exercisable (in Dollars per share) | $ / shares | $ 3.71 |
Options Exercisable (in Dollars) | $ | $ 280,991 |
Granted | 3,482,000 |
Granted (in Dollars per share) | $ / shares | $ 3.65 |
SHAREHOLDERS` EQUITY (Details_6
SHAREHOLDERS` EQUITY (Details) - Stock options outstanding under the 2018 - 2018 Share Plan [Member] - Range Of Exercise Prices $3.70 To $4.61 [Member] | 12 Months Ended |
Oct. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number | shares | 3,482,000 |
Options Outstanding,Weighted Average Remaining Contractual Life | 9 years 189 days |
Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 3.73 |
Options Exercisable, Number | shares | 828,611 |
Options Exercisable,Weighted Average Remaining Contractual Life | 9 years 189 days |
Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 3.71 |
SHAREHOLDERS` EQUITY (Details_7
SHAREHOLDERS` EQUITY (Details) - Information regarding stock options outstanding that were not granted under the 2003 Share Plan, the 2010 Share Plan or the 2018 Share Plan - Stock Options Not Granted Under 2003 Share Plan 2010 Share Plan Or 2018 Share Plan [Member] - USD ($) | Oct. 31, 2018 | Oct. 31, 2017 |
SHAREHOLDERS` EQUITY (Details) - Information regarding stock options outstanding that were not granted under the 2003 Share Plan, the 2010 Share Plan or the 2018 Share Plan [Line Items] | ||
Options Outstanding and exercisable | 1,780,000 | 1,780,000 |
Options Outstanding and exercisable | $ 1.58 | $ 1.58 |
Options Outstanding and exercisable | $ 4,497,180 |
SHAREHOLDERS` EQUITY (Details_8
SHAREHOLDERS` EQUITY (Details) - Stock options outstanding and exercisable that were not granted under the 2003 Share Plan, the 2010 Share Plan or the 2018 Plan - Stock Options Not Granted Under 2003 Share Plan 2010 Share Plan Or 2018 Share Plan [Member] | 12 Months Ended |
Oct. 31, 2018$ / sharesshares | |
Range Of Exercise Prices $0.67 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding and Exercisable, Number | shares | 1,046,000 |
Options Outstanding and Exercisable, Weighted Average Remaining Contractual Life | 3 years 292 days |
Options Outstanding and Exercisable, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.67 |
Range Of Exercise Prices $2.58 To $5.56 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding and Exercisable, Number | shares | 734,000 |
Options Outstanding and Exercisable, Weighted Average Remaining Contractual Life | 3 years 124 days |
Options Outstanding and Exercisable, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 2.88 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||
Operating Leases, Rent Expense | $ 114,000 | $ 229,000 |
Accrued Rent, Current | 31,000 | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 129,000 | |
Collaborative Agreement With Moffitt [Member] | ||
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||
Contractual Obligation, Due in Next Fiscal Year | 455,000 | |
Contractual Obligation, Due in Second Year | $ 228,000 | |
Office Space In San Jose, California [Member] | ||
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||
Lease Expiration Date | Sep. 30, 2019 | |
Operating Leases, Rent Expense | $ 4,000 | |
Office Space In Los Angeles, California [Member] | ||
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||
Lease Expiration Date | May 31, 2019 | |
Operating Leases, Rent Expense | $ 11,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
INCOME TAXES (Details) [Line Items] | ||
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent | 34.00% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percentage Use For Deferred Tax Assets and Liabilities | 21.00% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 23.00% | 34.00% |
Effective Income Tax Rate Reconciliation, Percent | 0.00% | 0.00% |
Federal Corporate Taxable [Member] | ||
INCOME TAXES (Details) [Line Items] | ||
Operating Loss Carryforwards | $ 82,686,000 | |
Tax Credit Carryforward, Amount | 1,398,000 | |
New York [Member] | ||
INCOME TAXES (Details) [Line Items] | ||
Operating Loss Carryforwards | 70,611,000 | |
California [Member] | ||
INCOME TAXES (Details) [Line Items] | ||
Operating Loss Carryforwards | $ 14,581,000 |
INCOME TAXES (Details) - Income
INCOME TAXES (Details) - Income tax provision (benefit) - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Federal: | ||
Current | ||
Deferred | (1,784,000) | 12,534,000 |
State: | ||
Current | ||
Deferred | (1,206,000) | 4,351,000 |
Adjustment to valuation allowance related to net deferred tax assets | 2,990,000 | (16,885,000) |
Income Tax Provision (Benefit) |
INCOME TAXES (Details) - The ta
INCOME TAXES (Details) - The tax effects of temporary differences of the deferred tax - USD ($) | Oct. 31, 2018 | Oct. 31, 2017 |
Long-term deferred tax assets: | ||
Federal and state NOL and tax credit carryforwards | $ 19,282,000 | $ 18,961,000 |
Deferred compensation | 6,176,000 | 3,718,000 |
Intangibles | 754,000 | 543,000 |
Other | 205,000 | 205,000 |
Subtotal | 26,417,000 | 23,427,000 |
Less: valuation allowance | (26,417,000) | (23,427,000) |
Deferred tax asset, net |
INCOME TAXES (Details) - Reconc
INCOME TAXES (Details) - Reconciliation of income taxes at the Federal statutory tax rate - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Reconciliation of income taxes at the Federal statutory tax rate [Abstract] | ||
Income tax benefit at U.S. Federal statutory income tax rate | $ (3,276,000) | $ (1,703,000) |
Income tax benefit at U.S. Federal statutory income tax rate | (23.00%) | (34.00%) |
State income taxes | $ (1,259,000) | $ (443,000) |
State income taxes | (8.84%) | (8.84%) |
Permanent differences | $ 14,000 | $ (10,000) |
Permanent differences | 0.10% | (0.20%) |
Expiring net operating losses, credits and other | $ 1,246,000 | |
Expiring net operating losses, credits and other | 9.12% | |
Rate changes | $ 285,000 | $ 19,041,000 |
Rate changes | 2.00% | 380.13% |
Change in valuation allowance | $ 2,990,000 | $ (16,885,000) |
Change in valuation allowance | 20.62% | (337.09%) |
Income tax provision | ||
Income tax provision | 0.00% | 0.00% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Segment Reporting [Abstract] | ||
Revenues | $ 1,112,500 | $ 362,500 |
Impairment of Intangible Assets (Excluding Goodwill) | 582,979 | |
Gain (Loss) on Extinguishment of Debt | 1,547,608 | |
Interest Expense | $ 500,455 |
SEGMENT INFORMATION (Details) -
SEGMENT INFORMATION (Details) - Segments Information - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Net Income (Loss) | $ (14,243,084) | $ (5,008,991) |
Operating costs and expenses | 15,401,558 | 6,438,084 |
Less non-cash share based compensation | (8,895,614) | (1,676,772) |
Operating costs and expenses | 6,505,944 | 4,761,312 |
Total Assets | 6,448,542 | 8,812,416 |
Operating Segments [Member] | Cancer Detection Platform [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Income (Loss) | (5,920,457) | (5,014,164) |
Operating costs and expenses | 2,431,810 | 3,659,280 |
Total Assets | 2,545,803 | 5,684,915 |
Operating Segments [Member] | CAR-T Therapeutics [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Income (Loss) | (7,073,322) | (504,405) |
Operating costs and expenses | 2,120,614 | 342,064 |
Total Assets | 2,157,359 | 521,326 |
Operating Segments [Member] | Patent Licensing [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Income (Loss) | (1,249,305) | 509,578 |
Operating costs and expenses | 1,953,520 | 759,968 |
Total Assets | $ 1,745,380 | $ 2,606,175 |