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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>File No. 333-[___]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As filed with the Securities and Exchange
Commission on November 13, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WASHINGTON, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM S-1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>REGISTRATION STATEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNDER</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>THE SECURITIES ACT OF 1933</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADVAXIS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>(Exact name of registrant as specified
in its charter)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; font-size: 10pt; font-weight: bold; text-align: center">Delaware</TD>
    <TD STYLE="width: 32%; font-size: 10pt; font-weight: bold; text-align: center">2836</TD>
    <TD STYLE="width: 34%; font-size: 10pt; font-weight: bold; text-align: center">02-0563870</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(State or other jurisdiction</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">of incorporation or organization)</P></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Primary Standard Industrial</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Classification Code Number)</P></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(I.R.S. Employer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Identification No.)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>305 College Road East</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Princeton, New Jersey 08540</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(609) 452-9813</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address, including zip code, and telephone
number, including area code, of registrant&rsquo;s principal executive office)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Mr. Thomas A. Moore</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Chief Executive Officer</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>305 College Road East</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Princeton, New Jersey 08540</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(609) 452-9813</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name, address, including zip code, and
telephone number, including area code, of agent for service)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>Copies to:</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Robert H. Cohen, Esq.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Greenberg Traurig, LLP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>The MetLife Building</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>200 Park Avenue</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>New York, New York 10166</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Phone: (212) 801-9200</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Fax: (212) 801-6400</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Approximate date of commencement of
proposed sale to the public.</B> &nbsp;&nbsp;&nbsp;From time to time after this Registration Statement becomes effective, as determined
by the selling stockholder named in the prospectus contained herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If any of the Securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, as amended,
check the following box: <FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities
Act Registration Statement number of the earlier effective Registration Statement for the same offering: <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If this Form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act, please check the following box and list the Securities Act Registration
Statement number of the earlier effective Registration Statement for the same offering: <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If this Form is a post-effective amendment
filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act Registration Statement
number of the earlier effective Registration Statement for the same offering: <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.&nbsp;&nbsp;See the
definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer&rdquo; and &ldquo;smaller reporting company&rdquo;
in Rule 12b-2 of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 69%; font-size: 10pt">Large accelerated filer <FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD STYLE="width: 31%; font-size: 10pt">Accelerated filer <FONT STYLE="font-family: Wingdings">&uml;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">Non-accelerated filer <FONT STYLE="font-family: Wingdings">&uml;</FONT> (Do not check if smaller
    reporting company)</TD>
    <TD STYLE="font-size: 10pt">Smaller reporting company <FONT STYLE="font-family: Wingdings">x</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CALCULATION OF REGISTRATION FEE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Title&nbsp;of&nbsp;each</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>class</B>&nbsp;<B>of&nbsp;securities</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>to&nbsp;be</B>&nbsp;<B>registered</B></P></TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Amount <BR> to&nbsp;be <BR>
    registered(1)</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Proposed</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>maximum</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>offering&nbsp;price</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>per</B>&nbsp;<B>share</B></P></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Proposed <BR> maximum <BR> aggregate
    <BR> offering&nbsp;price</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Amount&nbsp;of</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>registration</B>&nbsp;<B>fee</B></P></TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Common Stock, par value $0.001 per share</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">115,000,000&nbsp;shares</TD>
    <TD>(2)</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">0.03745</TD>
    <TD NOWRAP>(3)</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">4,307,750.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD NOWRAP STYLE="text-align: right">587.44</TD>
    <TD NOWRAP>(3)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%">&nbsp;</TD>
    <TD STYLE="width: 3%">(1)</TD>
    <TD STYLE="width: 90%">Pursuant to Rule 416 under the Securities Act of 1933, as amended, this Registration Statement shall
    be deemed to cover the additional securities (i) to be offered or issued in connection with any provision of any securities
    purported to be registered hereby to be offered pursuant to terms which provide for a change in the amount of securities being
    offered or issued to prevent dilution resulting from stock splits, stock dividends or similar transactions and (ii) of the
    same class as the securities covered by this Registration Statement issued or issuable prior to completion of the distribution
    of the securities covered by this Registration Statement as a result of a split of, or a stock dividend on, the registered
    securities.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(2)</TD>
    <TD>Represents shares of the registrant&rsquo;s issued and outstanding common stock being registered for resale.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(3)</TD>
    <TD>Estimated solely for purposes of calculating the registration fee pursuant to Rule 457(c) of the Securities Act of 1933,
    as amended, based on the average of the high and low prices of the common stock of the registrant as reported on the OTC Bulletin
    Board on November 8, 2012.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The registrant hereby amends this Registration Statement
on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which
specifically states that this Registration Statement shall thereafter become effective in accordance with section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become effective on such date as the commission, acting pursuant
to section 8(a) may determine.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The information in this prospectus is not complete and may
be changed.&nbsp;&nbsp;The selling stockholder may not sell these securities until the registration statement filed with the Securities
and Exchange Commission is effective.&nbsp;&nbsp;This prospectus is not an offer to sell these securities, and it is not soliciting
offers to buy these securities, in any state where the offer or sale of these securities is not permitted.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>PROSPECTUS, SUBJECT TO COMPLETION,
DATED NOVEMBER 13, 2012</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADVAXIS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>115,000,000 Shares</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus relates to the disposition
from time to time of up to 115,000,000 shares of our common stock, which are held or may be held by the selling shareholder named
in this prospectus. We are not selling any common stock under this prospectus and will not receive any of the proceeds from the
sale of shares by the selling shareholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The selling shareholder identified in this
prospectus, or its permitted transferees or other successors-in-interest, may offer the shares from time to time through public
or private transactions at prevailing market prices, at prices related to prevailing market prices, or at privately negotiated
prices. We provide more information about how the selling shareholder may sell its shares of common stock in the section entitled
&ldquo;Plan of Distribution&rdquo; beginning on page 76 of this prospectus. We will not be paying any underwriting discounts
or commissions in connection with any offering of common stock under this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our common stock is quoted on the
Over-The-Counter Bulletin Board, or OTC Bulletin Board, under the symbol ADXS.OB.&nbsp;&nbsp;On&nbsp;November 12, 2012, the
last reported sale price per share for our common stock as reported by the OTC Bulletin Board&nbsp;was $0.04.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Investing in our common stock involves
a high degree of risk.&nbsp;&nbsp;We urge you to carefully consider the &lsquo;&lsquo;Risk Factors&rsquo;&rsquo; beginning on
page 2.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or
accuracy of the prospectus.&nbsp;&nbsp;Any representation to the contrary is a criminal offense.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The date of this prospectus is
November 13, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TABLE OF CONTENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; width: 90%">ABOUT THIS PROSPECTUS</TD>
    <TD STYLE="vertical-align: bottom; width: 10%; text-align: right">i</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">PROSPECTUS SUMMARY</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">ii</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">THE OFFERING</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">1</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">RISK FACTORS</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">2</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">16</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">USE OF PROCEEDS</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">17</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">EQUITY ENHANCEMENT PROGRAM</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">17</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">MARKET PRICE OF AND DIVIDENDS ON OUR COMMON STOCK AND RELATED STOCKHOLDER MATTERS</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">21</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
    OPERATIONS</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">22</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">DESCRIPTION OF BUSINESS</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">37</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">MANAGEMENT</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">51</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">EXECUTIVE COMPENSATION</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">55</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">STOCK OWNERSHIP</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">64</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">66</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">DESCRIPTION OF OUR CAPITAL STOCK</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">67</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">SHARES ELIGIBLE FOR FUTURE SALE</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">74</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">SELLING STOCKHOLDER</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">75</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">PLAN OF DISTRIBUTION</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">77</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">LEGAL MATTERS</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">79</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">EXPERTS</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">79</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">INTERESTS OF NAMED EXPERTS AND COUNSEL</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">79</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">WHERE YOU CAN FIND ADDITIONAL INFORMATION</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">79</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">INDEX TO FINANCIAL STATEMENTS</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">F-1</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ABOUT THIS PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You should only rely on the information
contained in this prospectus.&nbsp;&nbsp;We have not authorized anyone to give any information or make any representation about
this offering that differs from, or adds to, the information in this prospectus or in its documents that are publicly filed with
the SEC.&nbsp;&nbsp;Therefore, if anyone does give you different or additional information, you should not rely on it.&nbsp;&nbsp;The
delivery of this prospectus does not mean that there have not been any changes in our condition since the date of this prospectus.&nbsp;&nbsp;If
you are in a jurisdiction where it is unlawful to offer the securities offered by this prospectus, or if you are a person to whom
it is unlawful to direct such activities, then the offer presented by this prospectus does not extend to you.&nbsp;&nbsp;This
prospectus speaks only as of its date except where it indicates that another date applies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Market data and certain industry forecasts
used in this prospectus were obtained from market research, publicly available information and industry publications. We believe
that these sources are generally reliable, but the accuracy and completeness of such information is not guaranteed. We have not
independently verified this information, and we do not make any representation as to the accuracy of such information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In this prospectus, the terms &ldquo;we&rdquo;,
&ldquo;us&rdquo;, &ldquo;our&rdquo; and &ldquo;our company&rdquo; refer to Advaxis, Inc., a Delaware corporation, resulting from
the reincorporation of our company from Colorado to Delaware described elsewhere in this prospectus (unless the context references
such entity prior to the June 20, 2006 reincorporation from Colorado to Delaware, in which case it refers to the Colorado entity).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The name Advaxis is our trademark. Other
trademarks and product names appearing in this prospectus are the property of their respective owners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: center"><B>PROSPECTUS SUMMARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in"><I>This summary highlights some
important information from this prospectus, and it may not contain all of the information that is important to you.&nbsp;&nbsp;You
should read the following summary together with the more detailed information regarding us and our common stock being sold in
this offering, including &ldquo;Risk Factors&rdquo; and our financial statements and related notes, included elsewhere in this
prospectus.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt"><B>Our Company</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">We are a development stage biotechnology
company with the intent to develop safe and effective immunotherapies for cancer and infectious diseases. These immunotherapies
are based on a platform technology under exclusive license from the University of Pennsylvania, which we refer to as Penn, that
utilizes live attenuated <I>Listeria monocytogenes</I>, which we refer to as <I>Listeria</I> or <I>Lm</I>, bioengineered to secrete
antigen/adjuvant fusion proteins. These <I>Lm</I>-LLO strains use a fragment of the protein listeriolysin (LLO), fused to a tumor
associated antigen (TAA) or other antigen of interest. We believe these <I>Lm</I>-LLO agents redirect the potent immune response
to <I>Lm</I> which is inherent in humans, to the TAA or antigen of interest. The immune response to a live, metabolically competent
pathogen is much more complex than the response to a synthetic or organic molecule and may enable a more comprehensive therapeutic
outcome than current treatment modalities. We believe this to be a broadly enabling platform technology that can be applied to
the treatment of many types of cancers and infectious diseases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">The discoveries that underlie
this innovative technology are based upon the work of Yvonne Paterson, Ph.D., Professor of Microbiology at Penn. <I>Lm</I>-LLO
based immunotherapies stimulate the immune system to induce antigen-specific anti-tumor immune responses involving both innate
and adaptive arms of the immune system. In addition, this technology facilitates the immune response by altering the microenvironment
of tumors to make them more susceptible to immune attack.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">We have focused our initial development
efforts on therapeutic immunotherapies targeting HPV-associated diseases: cervical intraepithelial neoplasia, which we refer to
as CIN 2/3, recurrent or refractory cervical cancer, and head and neck cancer. In addition we have developed immunotherapies for
prostate cancer, and HER2 expressing cancers (such as breast, gastric, bladder, brain, pancreatic and ovarian cancer). Our lead
drug candidates in clinical development are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 16%; border-bottom: black 1pt solid; font-weight: bold">Immunotherapy</TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 33%; border-bottom: black 1pt solid; font-weight: bold">Indication</TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 47%; border-bottom: black 1pt solid; font-weight: bold">Stage</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>ADXS-HPV</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">Cervical Cancer</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD><B>Phase 1</B> Company sponsored &amp; completed in 2007 with 15 patients.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">Cervical Intraepithelial Neoplasia</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD><B>Phase 2</B> Company sponsored study, initiated in March 2010 in the US. The Company completed enrollment of the low-dose
    cohort in September 2011 (41 patients) and in June 2012 (40 patients) in the mid-dose cohort.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">Cervical Cancer</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD><B>Phase 2</B> Company sponsored study initiated in November 2010 in India in 110 patients with recurrent or refractory
    cervical cancer. The Company completed enrollment (110 patients) in May 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">Cervical Cancer</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD><B>Phase 2</B> The Gynecologic Oncology Group (GOG) of the National Cancer Institute is conducting a study in 67
    patients     with recurrent or refractory cervical cancer which is currently open to enrollment. As of October 3, 2012, 6 out
    of 67     patients have     been enrolled in the safety run-in phase.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">Head &amp; Neck Cancer</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD><B>Phase 1</B> The Cancer Research UK (CRUK) is funding a study of  27 patients with head &amp; neck cancer at 3 UK
    sites.     As of October 3, 2012,  6 patients have been enrolled.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>ADXS-PSA</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">Prostate Cancer</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD><B>Phase 1</B> Company sponsored (timing to be determined).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>ADXS-HER2</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">HER2 Expressing Cancer</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD><B>Phase 1</B> Company sponsored (timing to be determined).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>ADXS-HER2</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">Canine Osteosarcoma</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD><B>Phase 1</B> Company sponsored study, initiated in July 2011 in the US. As of October 3, 2012, 2 dogs have been dosed.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">We have sustained losses from
operations in each fiscal year since our inception, and we expect these losses to continue for the indefinite future, due to the
substantial investment in research and development.&nbsp;&nbsp;As of October 31, 2011 and July 31, 2012, we had an accumulated
deficit of $35,531,740 and $45,611,368, respectively and shareholders&rsquo; deficiency of $12,279,713 and $4,999,243, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">To date, we have outsourced many
functions of drug development including manufacturing and clinical trials management. Accordingly, the expenses of these outsourced
services account for a significant amount of our accumulated loss. We cannot predict when, if ever, any of our immunotherapies
will become commercially viable or approved by the United States Food and Drug Administration, which we refer to as the FDA. We
expect to spend substantial additional sums on the continued administration and research and development of proprietary products
and technologies, including conducting clinical trials for our immunotherapies, with no certainty that our immunotherapies will
become commercially viable or profitable as a result of these expenditures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">We intend to continue devoting
a substantial portion of our resources to the continued pre-clinical development and optimization of our platform technology so
as to develop it to its full potential and to further identify appropriate new drug candidates. Specifically, we intend to conduct
research relating to developing the next generations of our <I>Lm</I>-LLO based immunotherapies using new antigens of interest;
improving the <I>Lm</I>-LLO based platform technology by developing new strains of <I>Listeria</I> which may be more suitable
as live vaccine vectors; and continuing to develop the use of the LLO as a component of a fusion protein based immunotherapy.
These activities may require significant financial resources, as well as areas of expertise beyond those readily available. In
order to provide additional resources and capital, we may enter into research, collaborative or commercial partnerships, joint
ventures, or other arrangements with competitive or complementary companies, including major international pharmaceutical companies
or universities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt"><B>Recent Developments</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt"><B><I>Equity Enhancement Program</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">On October 26, 2012, we
entered into a Common Stock Purchase Agreement, which we refer to as the Purchase Agreement, with Hanover Holdings I, LLC, a
New York limited liability company, which we refer to as Hanover, whereby we may, subject to certain customary conditions,
pursuant to a financing arrangement that is sometimes referred to as a committed equity line financing facility, which we
refer to this prospectus as the Equity Enhancement Program, require Hanover to purchase up to $10.0 million of shares of
our common stock over the 24-month term following the effectiveness of the resale registration statement described below.
Over the 24-month term following the effectiveness of the resale registration statement, we generally have the right, but not
the obligation, to direct Hanover to periodically purchase shares of our common stock in specific amounts under
certain conditions at our sole discretion. The purchase price for such shares of common stock will be the higher of (i) the
minimum price, which we refer to as the Floor Price, set forth in our notice electing to effect such issuance, which we refer
to as the Draw Down Notice, and (ii) 90% of the arithmetic average of the five lowest closing sale prices of the common
stock during the applicable ten trading day pricing period (or, if less, the arithmetic average of all trading days with
closing sale prices in excess of the Floor Price), subject to adjustment upon an alternative transaction. Each trading day
with a closing sale price less than the Floor Price is excluded from the calculation of the purchase price and automatically
reduces the number of trading days in the applicable pricing period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">In consideration for Hanover&rsquo;s execution
and delivery of the Purchase Agreement, in connection with the execution and delivery of the Purchase Agreement, we have issued
Hanover 3,500,000 shares of our common stock, which we refer to as the Commitment Fee Shares. We have also agreed to issue Hanover
up to 1,800,000 additional shares of our common stock, which we refer to as the Maintenance Fee Shares, during any full calendar
quarter during the term of the Purchase Agreement, if no shares of common stock have been purchased or sold because we did not
deliver a Draw Down Notice to Hanover. The number of Maintenance Fee Shares to be delivered to Hanover, from time to time, with
respect to any calendar quarter, will be equal to approximately $15,000 worth of shares of common stock at a 10% discount to market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">The Purchase Agreement provides for indemnification
of Hanover and its affiliates in the event that Hanover incurs losses, liabilities, obligations, claims, contingencies, damages,
costs and expenses related to a breach by us of any of our representations and warranties under the Purchase Agreement or the other
related transaction documents or any action instituted against Hanover or its affiliates due to the transactions contemplated by
the Purchase Agreement or other transaction documents, subject to certain limitations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">In connection with the Purchase Agreement,
on October 26, 2012, we entered into a registration rights agreement with Hanover, which we refer to as the Registration Rights
Agreement, pursuant to which we granted to Hanover certain registration rights related to the Commitment Fee Shares, the Maintenance
Fee Shares, and the shares issuable under the Purchase Agreement, which we refer to as the Registrable Securities. Under the Registration
Rights Agreement, we agreed to prepare and file with the SEC one or more registration statements for the purpose of registering
the resale of the Registrable Securities. We agreed to file the initial registration statement with the SEC within 12 calendar
days of the Purchase Agreement and to use our commercially reasonable efforts to cause such registration statement to be declared
effective within 90 calendar days of the Purchase Agreement (120 calendar days if the registration statement is reviewed by the
SEC).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">We also agreed, among other things, to indemnify
Hanover from certain liabilities and fees and expenses of Hanover incident to our obligations under the Registration Rights Agreement,
including certain liabilities under the Securities Act. Hanover has agreed to indemnify us and hold harmless each of our directors,
officers and persons who control us against certain liabilities that may be based upon written information furnished by Hanover
to us for inclusion in a registration statement pursuant to the Registration Rights Agreement, including certain liabilities under
the Securities Act of 1933, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">For a more detailed description of the
Equity Enhancement Program see &ldquo;Equity Enhancement Program&rdquo; on page 17 below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0"><B><I>Private Placements of Convertible Notes to Hanover</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">On September 19, 2012, in a private placement
pursuant to a note purchase agreement, we issued Hanover a convertible promissory note in the aggregate principal amount of $132,500,
for a purchase price of $132,500, which we refer to as the Initial Hanover PIPE Note. On October 19, 2012, in a private placement
pursuant to a note purchase agreement, we issued Hanover a convertible promissory note in the aggregate principal amount of $132,500,
for a purchase price of $132,500, which we refer to as the Second Hanover PIPE Note, which, together with the Initial Hanover PIPE
Note we refer to as the Hanover PIPE Notes. The Hanover PIPE Notes bear interest at a rate of 12%, which interest accrues, but
does not become payable until maturity or acceleration of the principal of such Hanover PIPE Notes. The Hanover PIPE Notes are
convertible into shares of our common stock at a conversion price equal to 65% of the arithmetic average of the five lowest closing
trading prices for the common stock during the 10 trading day period ending on the latest complete trading day prior to the applicable
conversion date. The Hanover PIPE Notes mature eight months from their respective issuance dates. To the extent Hanover does not
elect to convert the Hanover PIPE Notes as described above, the principal amount and interest of such Hanover PIPE Notes shall
be payable in cash at maturity. The Hanover PIPE Notes may be converted at any time by Hanover, at its option, in whole or in part.
The Hanover PIPE Notes include a limitation on conversion, which provides that at no time will Hanover be entitled to convert any
portion of the Hanover PIPE Notes to the extent that after such conversion Hanover (together with its affiliates) would beneficially
own more than 4.99% of the outstanding shares of the common stock as of such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0"><B><I>Other Hanover Related Transactions</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">In October 2012, pursuant to the terms
of various Assignment Agreements, which we refer to as the Assignment Agreements, Magna Group, LLC, an affiliate of Hanover, which
we refer to as Magna, acquired $400,075.88 in aggregate principal amount of our outstanding convertible notes from certain third
parties and entered into agreements to acquire an additional $340,522.90 in aggregate principal amount of our outstanding convertible
notes from other third parties. Pursuant to the terms of such Assignment Agreements, we delivered two convertible notes to Magna
in an aggregate principal amount of $740,598.74, in anticipation of the closing of all of the transactions contemplated by such
Assignment Agreements. On October 25, 2012, the convertible note in the aggregate principal amount of $617,722.92 previously delivered
to Magna was exchanged for a new convertible note in the aggregate principal amount of $400,075.77, convertible into share of
common stock, which we refer to as the Magna Exchange Note, to reflect such portion of the convertible notes actually issued as
of October 25, 2012 pursuant to the Assignment Agreements, and the remaining convertible note in the aggregate principal amount
of $122,875.82 previously delivered to Magna was returned to us and cancelled. The Magna Exchange Note bears interest at a rate
of 6%, which interest accrues, but does not become payable until maturity or acceleration of the principal of the Magna Exchange
Note. The Magna Exchange Note is convertible into shares of our common stock at a conversion price equal to 73% of the arithmetic
average of the five lowest closing trading prices for the common stock during the 10 trading day period ending on the lowest complete
trading day prior to the applicable conversion date. The Magna Exchange Note matures on October 17, 2013. To the extent Magna
does not elect to convert the Magna Exchange Note as described above, the principal amount and interest of the Magna Exchange
Note shall be payable in cash at maturity. Upon the closing of the remaining transactions contemplated by such applicable Assignment
Agreements, we are obligated to issue additional convertible notes in the form of the Magna Exchange Note with respect to the
outstanding $340,522.90 in aggregate principal amount of convertible notes held by the third party signatories to the other Assignment
Agreements, which we anticipate to occur during the fourth quarter of 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">The Magna Exchange Note may be converted
at any time by Magna, at its option, in whole or in part. The Magna Exchange Note includes a limitation on conversion, which provides
that at no time will Magna be entitled to convert any portion of the Magna Exchange Note to the extent that after such conversion
Magna (together with its affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock as of
such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0"><B><I>Warrants &ndash; 2007 Private Placement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">On October 17, 2012, warrants to purchase
15,869,507 shares of our common stock expired unexercised. As of November 5, 2012, we have warrants to purchase 149,786,934 shares
of our common stock outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0"><B><I>French Note</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">On September 27, 2012, in a private placement
pursuant to a note purchase agreement, we issued our employee Christine French a convertible promissory note in the aggregate principal
amount of $25,000, for a purchase price of $25,000, which we refer to as the French Note. The French Note bears interest at a rate
of 12%, compounded annually. The French Note is convertible into shares of our common stock at a conversion price equal to the
arithmetic average of the five lowest closing trading prices for the common stock during the 10 trading day period ending on the
latest complete trading day prior to the applicable conversion date. The French Note matures one month from its issuance date.
Additionally, Ms. French will receive a warrant, which we refer to as the French Warrant, to purchase such number of shares of
our common stock equal to 50% of such number of shares of our common stock issuable upon conversion of the French Note at an exercise
price equal to the conversion price then in effect. These warrants have not yet been issued. The French Warrant may be exercised
on a cashless basis under certain circumstances. The French Note and the French Warrant each include a limitation on conversion
or exercise, as applicable, which provides that at no time will Ms. French be entitled to convert any portion of the French Note
or French Warrant to the extent that after such conversion or exercise, as applicable, Ms. French (together with her affiliates)
would beneficially own more than 4.99% of the outstanding shares of the common stock as of such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0"><B><I>Paterson Note</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">On September 25, 2012, in a private placement
pursuant to a note purchase agreement, we issued our affiliate Dr. Yvonne Paterson a convertible promissory note in the aggregate
principal amount of $100,000, for a purchase price of $100,000, which we refer to as the Paterson Note. The Paterson Note bears
interest at a rate of 12%, compounded annually. The Paterson Note is convertible into shares of our common stock at a conversion
price equal to the arithmetic average of the five lowest closing trading prices for the common stock during the 10 trading day
period ending on the latest complete trading day prior to the applicable conversion date. The Paterson Note matures one month
from its issuance date. Additionally, Dr. Paterson will receive a warrant, which we refer to as the Paterson Warrant, to purchase
such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable upon conversion of
the Patterson Note at an exercise price equal to the conversion price then in effect. These warrants have not yet been issued.
The Paterson Warrant may be exercised on a cashless basis under certain circumstances. The Paterson Note and the Paterson Warrant
each include a limitation on conversion or exercise, as applicable, which provides that at no time will Dr. Paterson be entitled
to convert any portion of the Paterson Note or Paterson Warrant to the extent that after such conversion or exercise, as applicable,
Dr. Paterson (together with her affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock
as of such date.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0"><B><I>Asher Note</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">On September 11, 2012, in a private placement
pursuant to a note purchase agreement, we issued Asher Enterprises, Inc, which we refer to as Asher, a convertible promissory note
in the aggregate principal amount of $103,500, for a purchase price of $100,000, which we refer to as the Asher Note. The Asher
Note bears interest at a rate of 8%, which interest accrues, but does not become payable until maturity or acceleration of the
principal of the Asher Note. The Asher Note is convertible into shares of our common stock at a conversion price equal to 61% of
the arithmetic average of the five lowest closing trading prices for the common stock during the 10 trading day period ending on
the latest complete trading day prior to the applicable conversion date. The Asher Note matures on June 13, 2013, nine months from
its issuance date. The Asher Note may be converted by Asher, at its option, in whole or in part. The Asher Note includes a limitation
on conversion, which provides that at no time will Asher be entitled to convert any portion of the Asher Note to the extent that
after such conversion Asher (together with its affiliates) would beneficially own more than 4.99% of the outstanding shares of
the common stock as of such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0"><B><I>August 2012 Note</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">On August 27, 2012, in a private placement
pursuant to a note purchase agreement, we issued JMJ Financial a convertible promissory note in the aggregate principal amount
of $100,000 for a purchase price of $100,000, which we refer to as the August 2012 Note. The August 2012 Note is initially convertible
at a per share conversion price equal to $0.15. In addition, if the August 2012 Note is converted after November 30, 2012 and the
market price of our common stock is less than $0.16 per share on the date of conversion, then the conversion price shall equal
95% of the arithmetic average of the three lowest closing trading prices for the common stock during the 15 trading day period
ending on the latest complete trading day prior to the applicable conversion date. The August 2012 Note matures on August 29, 2013.
To the extent JMJ Financial does not elect to convert the August 2012 Note as described above, the principal amount and interest
of such note shall be payable in cash at maturity. The August 2012 Note may be converted by JMJ Financial, at its option, in whole
or in part. The August 2012 Note includes a limitation on conversion, which provides that at no time will JMJ Financial be entitled
to convert any portion of the August 2012 Note to the extent that after such conversion JMJ Financial (together with its affiliates)
would beneficially own more than 4.99% of the outstanding shares of the common stock as of such date. Pursuant to the terms of
the August 2012 Note, we agreed to register up to 3,250,000 shares of our common stock which may be issuable upon conversion of
the August 2012 Note with the SEC. These shares were registered on August 31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0"><B><I>JMJ August 2012 Settlement Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">On August 27, 2012, we entered into a settlement
agreement with JMJ Financial pursuant to which we issued to JMJ Financial 4,076,923 shares of our common stock for the mutual release
of any claims held by our company or JMJ Financial relating to our failure to file the registration statement related to the May
2012 issuance of 4,000,000 shares of our common stock to JMJ Financial and have the registration statement declared effective by
certain prescribed deadlines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0"><B><I>Amendment to Certificate of Incorporation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">On August 16, 2012, we filed a certificate
of amendment to our amended and restated certificate of incorporation with the Delaware Secretary of State to increase the total
number of authorized shares of capital stock available for issuance from 505,000,000, consisting of 500,000,000 shares of our common
stock and 5,000,000 shares of &ldquo;blank check&rdquo; preferred stock, to 1,005,000,000, consisting of 1,000,000,000 shares of
our common stock and 5,000,000 shares of &ldquo;blank check&rdquo; preferred stock. The certificate of amendment became effective
upon filing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0"><B><I>Patton Note</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">On August 2, 2012, in a private
placement pursuant to a note purchase agreement, we issued Dr. James Patton, a member of our board of directors, a convertible
promissory note, which we refer to as the Patton Note, in the principal amount of $66,667 for a purchase price of $50,000. The
Patton Note was issued with an original issue discount of 25%. Dr. Patton paid $0.75 for each $1.00 of principal amount of the
Patton Note purchased. The Patton Note is convertible into shares of our common stock at a per share conversion price equal to
$0.15. Additionally, Dr. Patton received a warrant, which we refer to as the Patton Warrant, to purchase such number of shares
of our common stock equal to 50% of such number of shares of our common stock issuable upon conversion of the Patton Note at an
exercise price of $0.15 per share. The Patton Note and Patton Warrant also provide that on December 1, 2012, solely to the extent
the conversion price of the Patton Note or the exercise price of the Patton Warrant, as applicable, is less than the Market Price
(as defined in the Patton Note or the Patton Warrant, as applicable), such conversion price or exercise price, as applicable,
shall be reduced to such Market Price. The Patton Note matures on August 2, 2013. We may redeem the Patton Note under certain
circumstances. The Patton Warrant is exercisable at any time on or before August 2, 2017. The Patton Warrant may be exercised
on a cashless basis under certain circumstances. The Patton Note and the Patton Warrant each include a limitation on conversion
or exercise, as applicable, which provides that at no time will Dr. Patton be entitled to convert any portion of the Patton Note
or Patton Warrant to the extent that after such conversion or exercise, as applicable, Dr. Patton (together with his affiliates)
would beneficially own more than 4.99% of the outstanding shares of the common stock as of such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt"><B>Our History</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">We were originally incorporated
in the State of Colorado on June 5, 1987 under the name Great Expectations, Inc.&nbsp;&nbsp;We were administratively dissolved
on January 1, 1997 and reinstated on June 18, 1998 under the name Great Expectations and Associates, Inc.&nbsp;&nbsp;In 1999,
we became a reporting company under the Securities Exchange Act of 1934, as amended.&nbsp;&nbsp;We were a publicly-traded &ldquo;shell&rdquo;
company without any business until November 12, 2004 when we acquired Advaxis, Inc., a Delaware corporation, through a Share Exchange
and Reorganization Agreement, dated as of August 25, 2004, which we refer to as the Share Exchange, by and among Advaxis, the
stockholders of Advaxis and us.&nbsp;&nbsp;As a result of the Share Exchange, Advaxis became our wholly-owned subsidiary and our
sole operating company.&nbsp;&nbsp;On December 23, 2004, we amended and restated our articles of incorporation and changed our
name to Advaxis, Inc.&nbsp;&nbsp;On June 6, 2006, our shareholders approved the reincorporation of our company from Colorado to
Delaware by merging the Colorado entity into our wholly-owned Delaware subsidiary. Our date of inception, for financial statement
purposes, is March 1, 2002. Our statements of income and cash flows disclose our accumulated losses and net cash increases (decreases),
respectively since inception.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt"><B>Principal Executive Offices</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">Our principal executive offices
are located at 305 College Road East, Princeton, New Jersey 08540 and our telephone number is (609) 452-9813.&nbsp;&nbsp;We maintain
a website at <U>www.advaxis.com</U> which contains descriptions of our technology, our drugs and the trial status of each drug.&nbsp;&nbsp;The
information on our website is not incorporated into this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>THE OFFERING</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>Shares of common stock offered by us</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">None</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Shares of common stock which may be sold by</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">the selling stockholder</P></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">The selling shareholder named in this prospectus may offer and sell up to 115,000,000  shares of our common
    stock<SUP> (1)</SUP>.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Use of proceeds</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">We will not receive any proceeds from the resale of the shares of common stock offered by the selling stockholder
    as all of such proceeds will be paid to the selling stockholder.&nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Risk factors</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">The purchase of our common stock involves a high degree of risk.&nbsp;&nbsp;You should carefully review and
    consider the &ldquo;Risk Factors&rdquo; section of this prospectus for a discussion of factors to consider before deciding
    to invest in shares of our common stock.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-left: 0.25in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>OTC Bulletin Board&nbsp;market symbol</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">ADXS.OB</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 37%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 17%; border-bottom: windowtext 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 44%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">(1) These shares represent
approximately 29.0% of our currently outstanding shares of common stock (based on 396,938,817 shares of common stock
outstanding as of November 5, 2012). These shares also represent approximately 17.5% of our currently outstanding shares of
common stock (based on 655,356,226 shares of common stock outstanding as of November 5, 2012) on a fully diluted basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RISK FACTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>An investment in our common stock is
highly speculative, involves a high degree of risk and should be made only by investors who can afford a complete loss of their
investment.&nbsp;&nbsp;You should carefully consider, together with the other matters referred to in this prospectus, the following
risk factors before you decide whether to buy our common stock.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risks Related to our Business</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We are a development stage company.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are an early development stage biotechnology
company with a history of losses and can provide no assurance as to future operating results.&nbsp;&nbsp;As a result of losses
which will continue throughout our development stage, we may exhaust our financial resources and be unable to complete the development
of our production.&nbsp;&nbsp;Our deficit will continue to grow during our drug development period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have sustained losses from operations
in each fiscal year since our inception, and we expect losses to continue for the indefinite future, due to the substantial investment
in research and development.&nbsp;&nbsp;As of October 31, 2011 and July 31, 2012, we had an accumulated deficit of $35,531,740
and $45,611,368, respectively and shareholders&rsquo; deficiency of $12,279,713 and $4,999,243, respectively.&nbsp;&nbsp;We expect
to spend substantial additional sums on the continued administration and research and development of proprietary products and
technologies with no certainty that our immunotherapies will become commercially viable or profitable as a result of these expenditures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>As a result of our current lack of financial liquidity
and negative stockholders equity, our auditors have expressed substantial concern about our ability to continue as a &ldquo;going
concern&rdquo; .</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our limited capital resources and operations
to date have been funded primarily with the proceeds from public and private equity and debt financings, NOL and Research tax
credits and income earned on investments and grants. Based on our currently available cash, we do not have adequate cash on hand
to cover our anticipated expenses for the next 12 months. If we fail to raise a significant amount of capital, we may need to
significantly curtail operations, cease operations or seek federal bankruptcy protection in the near future. These conditions
have caused our auditors to raise substantial doubt about our ability to continue as a going concern.&nbsp;&nbsp;Consequently,
the audit report prepared by our independent public accounting firm relating to our financial statements for the year ended October
31, 2011 included a going concern explanatory paragraph.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>There can be no assurance that we will receive funding
from Optimus in connection with the Series B preferred equity financing and if the average closing sale price of our common stock
on each tranche notice date is less than $0.15 per share, we may not be able to require Optimus to purchase the entire $7.5 million
of Series B preferred stock issuable under the Series B purchase agreement, as amended.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.75in">On July 19, 2010, we entered into a
Series B preferred stock purchase agreement, which we refer to as the Series B purchase agreement, with Optimus Capital
Partners, LLC, which we refer to as Optimus, which was subsequently amended on April 4, 2011. Pursuant to the Series B
purchase agreement, Optimus remains obligated to purchase $2.84 million of our non-convertible, redeemable Series B preferred
stock, which we refer to as our Series B preferred stock, at a price of $10,000 per share from time to time, subject to our
ability to effect and maintain an effective registration statement for the remaining 25,610,038 shares underlying the
warrants issued to an affiliate of Optimus in connection with the transaction.&nbsp;&nbsp;As of November 5, 2012, Optimus had
purchased an aggregate of 466 shares of Series B preferred stock and remains obligated, from time to time until July 19,
2013, to purchase up to an additional 284 shares of Series B preferred stock, for an aggregate purchase price of $2,840,000,
upon notice from us to Optimus, if certain conditions set forth in the Series B purchase agreement, as amended, are
satisfied, including among other&nbsp;things that: (i) we must be in compliance with our SEC reporting obligations, (ii) our
common stock must be quoted on an eligible trading market, (iii) a material adverse effect relating to, among other things,
our results of operations, assets, business or financial condition must not have occurred since July 19, 2010, other than
losses incurred in the ordinary course of business, (iv) we must not be in default under any material agreement, (v) Optimus
and its affiliates must not own more than 9.99% of our outstanding common stock, and (vi) we must comply with certain other
requirements set forth in the Series B purchase agreement, as amended.&nbsp;&nbsp;If we fail to comply with any of these
requirements, Optimus will not be obligated to purchase our Series B preferred stock and we will not receive any funding from
Optimus. Moreover, if we exercise our option to require Optimus to purchase our Series B preferred stock, and our common
stock has a closing price of less than $0.15 per share on the trading day immediately preceding our delivery of the exercise
notice, we may trigger at closing certain anti-dilution protection provisions in certain outstanding warrants that would
result in an adjustment to the number and price of certain outstanding warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with our Series B preferred
equity financing, we originally issued to an affiliate of Optimus a three-year warrant to purchase up to 40,500,000 shares of
our common stock, at an initial exercise price of $0.25 per share, of which no shares of our common stock remain available to
purchase.&nbsp;&nbsp;In connection with the amendment to the Series B purchase agreement, we subsequently issued to an affiliate
of Optimus a three-year warrant to purchase up to an additional 25,560,000 shares of our common stock, at an initial exercise
price of $0.15 per share.&nbsp;&nbsp;The warrants provide that on each tranche notice date under the Series B purchase agreement,
as amended, (i) that portion of the warrants, in the aggregate, equal to 135% of the tranche amount will vest and become exercisable
(and such vested portion may be exercised at any time during the exercise period on or after such tranche notice date) and (ii)
the exercise price will be adjusted to the closing sale price of a share of our common stock on such tranche notice date.&nbsp;&nbsp;We
are not permitted to deliver a tranche notice under the Series B purchase agreement, as amended, and require Optimus to purchase
shares of Series B preferred stock if the number of registered shares underlying the warrant issued to the affiliate of Optimus
is insufficient to cover the portion of the warrant that will vest and become exercisable in connection with such tranche notice.&nbsp;&nbsp;If
the average closing sale price of our common stock on each tranche notice date is less than $0.15 per share, we may not be able
to require Optimus to purchase the remaining $2.84 million of Series B preferred stock issuable under the Series B purchase agreement,
as amended, without issuing additional warrant shares.&nbsp;&nbsp;We cannot assure you that we will be able to timely effect and
maintain a registration statement for the remaining 25,560,000 warrant shares&nbsp; (or any additional warrant shares that may
be necessary) so as to permit us to require Optimus to purchase the remaining $2,840,000 of Series B preferred stock under the
Series B purchase agreement, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our business will require substantial additional investment
that we have not yet secured, and our failure to raise capital and/or pursue partnering opportunities will materially adversely
affect our business, financial condition and results of operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We expect to continue to spend substantial
amounts on research and development, including conducting clinical trials for our immunotherapies. However, we will not have sufficient
resources to develop fully any new products or technologies unless we are able to raise substantial additional financing on acceptable
terms, secure funds from new partners or consummate a preferred equity financing under the Series B purchase agreement, as amended.
We cannot be assured that financing will be available at all.&nbsp;&nbsp;Our failure to raise a significant amount of capital
in the near future will materially adversely affect our business, financial condition and results of operations, and we may need
to significantly curtail operations, cease operations or seek federal bankruptcy protection in the near future.&nbsp;&nbsp;Any
additional investments or resources required would be approached, to the extent appropriate in the circumstances, in an incremental
fashion to attempt to cause minimal disruption or dilution.&nbsp;&nbsp;Any additional capital raised through the sale of equity
or convertible debt securities will result in dilution to our existing stockholders.&nbsp;&nbsp;No assurances can be given, however,
that we will be able to achieve these goals or that we will be able to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We have significant indebtedness which may restrict our
business and operations, adversely affect our cash flow and restrict our future access to sufficient funding to finance desired
growth.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of November 5, 2012, our
total outstanding indebtedness was approximately $3.2 million, which included the face value of all our outstanding junior
bridge notes in the amount of approximately $0.2 million, a note outstanding to our chief executive officer in the amount
of approximately $0.4 million,  debt acquired in October 2011 with a remaining aggregate balance of approximately $0.06
million, debt acquired in January 2012 with a remaining aggregate balance of approximately $0.2 million, debt acquired in May
2012 with a remaining aggregate principal amount of approximately $1.0 million, debt acquired in July and August 2012 with a
remaining aggregate principal balance at approximately $0.4 million and debt acquired in September and October 2012 with a
remaining aggregate principal amount of approximately $0.9 million. Approximately $1.0 million of the aggregate $3.2 million
is due on May 18, 2013. Maturity dates for the remaining $2.2 million range between October 2011 and on or about September
30, 2014. Certain of our indebtedness contain restrictive covenants that limit our ability to issue certain types of
indebtedness, which may prevent us from obtaining additional indebtedness on commercially reasonable terms, or at all.
&nbsp;We dedicate a substantial portion of our cash to pay interest and principal on our debt. If we are not able to service
our debt, we would need to refinance all or part of that debt, sell assets, borrow more money or sell securities, which we
may not be able to do on commercially reasonable terms, or at all.&nbsp;&nbsp;In addition, our failure to timely repay (or
extend) amounts due and owing under our outstanding junior bridge notes issued in October 2009 may trigger the anti-dilution
protection provisions in certain of our warrants, in which case holders of our common stock will experience significant additional dilution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The terms of our notes include customary
events of default and covenants that restrict our ability to incur additional indebtedness. These restrictions and covenants may
prevent us from engaging in transactions that might otherwise be considered beneficial to us. A breach of the provisions of our
indebtedness could result in an event of default under our outstanding notes.&nbsp;&nbsp;If an event of default occurs under our
notes (after any applicable notice and cure periods), the holders would be entitled to accelerate the repayment of amounts outstanding,
plus accrued and unpaid interest.&nbsp;&nbsp;&nbsp;In the event of a default under our senior indebtedness, the holders could
also foreclose against the assets securing such obligations.&nbsp;&nbsp;In the event of a foreclosure on all or substantially
all of our assets, we may not be able to continue to operate as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our limited operating history does not afford investors
a sufficient history on which to base an investment decision.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We commenced our <I>Lm</I>-LLO based immunotherapy
development business in February 2002 and have existed as a development stage company since such time.&nbsp;&nbsp;Prior thereto
we conducted no business.&nbsp;&nbsp;Accordingly, we have a limited operating history.&nbsp;&nbsp;Investors must consider the
risks and difficulties we have encountered in the rapidly evolving vaccine and therapeutic biopharmaceutical industry.&nbsp;&nbsp;Such
risks include the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>competition from companies that have substantially greater assets and financial resources than we have;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>need for acceptance of our immunotherapies;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>ability to anticipate and adapt to a competitive market and rapid technological developments;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>amount and timing of operating costs and capital expenditures relating to expansion of our business, operations and infrastructure;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>need to rely on multiple levels of complex financing agreements with outside funding due to the length of drug development
    cycles and governmental approved protocols associated with the pharmaceutical industry; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>dependence upon key personnel including key independent consultants and advisors.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We cannot be certain that our strategy
will be successful or that we will successfully address these risks.&nbsp;&nbsp;In the event that we do not successfully address
these risks, our business, prospects, financial condition and results of operations could be materially and adversely affected.&nbsp;&nbsp;We
may be required to reduce our staff, discontinue certain research or development programs of our future products and cease to
operate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We can provide no assurance of the successful and timely
development of new products.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our immunotherapies are at various stages
of research and development. Further development and extensive testing will be required to determine their technical feasibility
and commercial viability. Our success will depend on our ability to achieve scientific and technological advances and to translate
such advances into licensable, FDA-approvable, commercially competitive products on a timely basis. Immunotherapies and vaccines
that we may develop are not likely to be commercially available until five to ten or more years. The proposed development schedules
for our immunotherapies may be affected by a variety of factors, including technological difficulties, clinical trial failures,
regulatory hurdles, competitive products, intellectual property challenges and/or changes in governmental regulation, many of
which will not be within our control. Any delay in the development, introduction or marketing of our products could result either
in such products being marketed at a time when their cost and performance characteristics would not be competitive in the marketplace
or in the shortening of their commercial lives. In light of the long-term nature of our projects, the unproven technology involved
and the other factors described elsewhere in &ldquo;Risk Factors,&rdquo; there can be no assurance that we will be able to successfully
complete the development or marketing of any new products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our research and development expenses
are subject to uncertainty.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Factors affecting our research and development
expenses include, but are not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>competition from companies that have substantially greater assets and financial resources than we have;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>need for acceptance of our immunotherapies;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>ability to anticipate and adapt to a competitive market and rapid technological developments;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>amount and timing of operating costs and capital expenditures relating to expansion of our business, operations and infrastructure;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>need to rely on multiple levels of outside funding due to the length of drug development cycles and governmental approved
    protocols associated with the pharmaceutical industry; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>dependence upon key personnel including key independent consultants and advisors.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We are subject to numerous risks inherent in conducting
clinical trials.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We outsource the management of our clinical
trials to third parties. Agreements with clinical investigators and medical institutions for clinical testing and with other third
parties for data management services, place substantial responsibilities on these parties which, if unmet, could result in delays
in, or termination of, our clinical trials. For example, if any of our clinical trial sites fail to comply with FDA-approved good
clinical practices, we may be unable to use the data gathered at those sites. If these clinical investigators, medical institutions
or other third parties do not carry out their contractual duties or obligations or fail to meet expected deadlines, or if the
quality or accuracy of the clinical data they obtain is compromised due to their failure to adhere to our clinical protocols or
for other reasons, our clinical trials may be extended, delayed or terminated, and we may be unable to obtain regulatory approval
for or successfully commercialize agents such as ADXS-HPV. We are not certain that we will successfully recruit enough patients
to complete our clinical trials nor that we will reach our primary endpoints. Delays in recruitment, lack of clinical benefit
or unacceptable side effects would delay or prevent the initiation of the Phase 3 trials of ADXS-HPV.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We or our regulators may suspend or terminate
our clinical trials for a number of reasons.&nbsp;&nbsp;We may voluntarily suspend or terminate our clinical trials if at any
time we believe they present an unacceptable risk to the patients enrolled in our clinical trials or do not demonstrate clinical
benefit.&nbsp;&nbsp;In addition, regulatory agencies may order the temporary or permanent discontinuation of our clinical trials
at any time if they believe that the clinical trials are not being conducted in accordance with applicable regulatory requirements
or that they present an unacceptable safety risk to the patients enrolled in our clinical trials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our clinical trial operations are subject
to regulatory inspections at any time.&nbsp;&nbsp;If regulatory inspectors conclude that we or our clinical trial sites are not
in compliance with applicable regulatory requirements for conducting clinical trials, we may receive reports of observations or
warning letters detailing deficiencies, and we will be required to implement corrective actions.&nbsp;&nbsp;If regulatory agencies
deem our responses to be inadequate, or are dissatisfied with the corrective actions we or our clinical trial sites have implemented,
our clinical trials may be temporarily or permanently discontinued, we may be fined, we or our investigators may be precluded
from conducting any ongoing or any future clinical trials, the government may refuse to approve our marketing applications or
allow us to manufacture or market our products, and we may be criminally prosecuted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The successful development of biopharmaceuticals is highly
uncertain.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Successful development of biopharmaceuticals
is highly uncertain and is dependent on numerous factors, many of which are beyond our control.&nbsp;&nbsp;Immunotherapies that
appear promising in the early phases of development may fail to reach the market for several reasons including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Preclinical study results that may show the immunotherapy to be less effective than desired (e.g., the study failed to
    meet its primary objectives) or to have harmful or problematic side effects;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Clinical study results that may show the immunotherapy to be less effective than expected (e.g., the study failed to meet
    its primary endpoint) or to have unacceptable side effects;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Failure to receive the necessary regulatory approvals or a delay in receiving such approvals. Among other things, such
    delays may be caused by slow enrollment in clinical studies, length of time to achieve study endpoints, additional time requirements
    for data analysis, or Biologics License Application preparation, discussions with the FDA, an FDA request for additional preclinical
    or clinical data, or unexpected safety or manufacturing issues;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Manufacturing costs, formulation issues, pricing or reimbursement issues, or other factors that make the immunotherapy
    uneconomical; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>The proprietary rights of others and their competing products and technologies that may prevent the immunotherapy from
    being commercialized.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Success in preclinical and early clinical
studies does not ensure that large-scale clinical studies will be successful.&nbsp;&nbsp;Clinical results are frequently susceptible
to varying interpretations that may delay, limit or prevent regulatory approvals. The length of time necessary to complete clinical
studies and to submit an application for marketing approval for a final decision by a regulatory authority varies significantly
from one immunotherapy to the next, and may be difficult to predict.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We must comply with significant government regulations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The research and development, manufacture
and marketing of human therapeutic and diagnostic products are subject to regulation, primarily by the FDA in the U.S. and by
comparable authorities in other countries.&nbsp;&nbsp;These national agencies and other federal, state, local and foreign entities
regulate, among other things, research and development activities (including testing in animals and in humans) and the testing,
manufacturing, handling, labeling, storage, record keeping, approval, advertising and promotion of the products that we are developing.&nbsp;&nbsp;Noncompliance
with applicable requirements can result in various adverse consequences, including delay in approving or refusal to approve product
licenses or other applications, suspension or termination of clinical investigations, revocation of approvals previously granted,
fines, criminal prosecution, recall or seizure of products, injunctions against shipping products and total or partial suspension
of production and/or refusal to allow a company to enter into governmental supply contracts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The process of obtaining requisite FDA
approval has historically been costly and time-consuming. Current FDA requirements for a new human biological product to be marketed
in the U.S. include: (1) the successful conclusion of preclinical laboratory and animal tests, if appropriate, to gain preliminary
information on the product&rsquo;s safety; (2) filing with the FDA of an Investigational New Drug Application, which we refer
to as an IND, to conduct human clinical trials for drugs or biologics; (3) the successful completion of adequate and well-controlled
human clinical trials to establish the safety and efficacy of the investigational new drug for its recommended use; and (4) filing
by a company and acceptance and approval by the FDA of a Biologic License Application, which we refer to as a BLA, for a biological
investigational new drug, to allow commercial distribution of a biologic product. A delay in one or more of the procedural steps
outlined above could be harmful to us in terms of getting our immunotherapies through clinical testing and to market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We can provide no assurance that our investigational
new drugs will obtain regulatory approval or that the results of clinical studies will be favorable.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In February 2006, we received permission
from the appropriate governmental/regulatory agencies in Israel, Mexico and Serbia to conduct a Phase 1 clinical study of ADXS-HPV,
our first <I>Lm</I>-LLO based immunotherapy targeting HPV16-E7 to determine safety and the maximum tolerated dose in patients
with recurrent or refractory cervical cancer. The study was completed in the fiscal quarter ended January 31, 2008. The next step
was to test ADXS-HPV in the U.S. which required the filing of an IND with the FDA. The filing included the required preclinical
animal pharmacology and toxicology studies, manufacturing information, proposed clinical protocol and investigator information
as well as the data generated from the Phase 1 study. Unlike the Phase 2 study patient population of late stage cervical cancer
patients, the clinical protocol submitted in the IND proposed to evaluate the safety and efficacy of ADXS-HPV in healthy young
patients with CIN 2/3, the pre-neoplastic stage of cervical cancer. On January 6, 2009 we received permission from the FDA to
conduct the Phase 2 clinical trial and the trial was initiated in March 2010. However, even though we were allowed to initiate
this trial, as with any investigational new drug under an IND, we are always at risk of a clinical hold. There can be delays in
obtaining FDA or any other necessary regulatory approvals of any investigational new drug and failure to receive such approvals
would have an adverse effect on the investigational new drug&rsquo;s potential commercial success and on our business, prospects,
financial condition and results of operations. In addition, it is possible that an approved product may be found to be ineffective
or unsafe due to conditions or facts which arise after development has been completed and regulatory approvals have been obtained.
In this event, we may be required to withdraw such product from the market. To the extent that our success will depend on any
regulatory approvals from governmental authorities outside of the U.S. that perform roles similar to that of the FDA, uncertainties
similar to those stated above will also exist.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We rely upon patents to protect our technology.&nbsp;&nbsp;We
may be unable to protect our intellectual property rights and we may be liable for infringing the intellectual property rights
of others.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our ability to compete effectively will
depend on our ability to maintain the proprietary nature of our technologies, including the <I>Lm</I>-LLO based immunotherapy
platform technology, and the proprietary technology of others with whom we have entered into collaboration and licensing agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of November 5, 2012 we have 39
patents that have been issued and licenses for 39 patent applications that are pending (including the 23 patent applications
obtained in May 2010 and 2 patent applications obtained in November 2011).&nbsp;&nbsp;We have licensed most of these patents
and applications from Penn and we have obtained the rights to all future patent applications originating in the laboratories
of Dr. Yvonne Paterson and Dr. Fred Frankel.&nbsp;&nbsp;Further, we rely on a combination of trade secrets and nondisclosure,
and other contractual agreements and technical measures to protect our rights in the technology.&nbsp;&nbsp;We depend upon
confidentiality agreements with our officers, employees, consultants, and subcontractors to maintain the proprietary nature
of the technology. These measures may not afford us sufficient or complete protection, and others may independently develop
technology similar to ours, otherwise avoid the confidentiality agreements, or produce patents that would materially and
adversely affect our business, prospects, financial condition, and results of operations.&nbsp;&nbsp;Such competitive events,
technologies and patents may limit our ability to raise funds, prevent other companies from collaborating with us, and in
certain cases prevent us from further developing our technology due to third party patent blocking rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are aware of Aduro Biotech, a company
comprised in part of former Cerus and Anza (two former biotech companies) employees that is investigating <I>Listeria</I> vaccines.
We believe that through our exclusive worldwide license with Penn we have the earliest known and dominant patent positions in
the U.S. and rest of world for the use of recombinant <I>Listeria monocytogenes</I> expressing fusion proteins or tumor antigens
as an immunotherapy for the treatment of infectious diseases and cancer.&nbsp;&nbsp;We successfully defended our intellectual
property by contesting a challenge made by Anza to our patent position in Europe on a claim not available in the U.S.&nbsp;&nbsp;The
European Patent Office, which we refer to as the EPO, Board of Appeals in Munich, Germany has ruled in favor of The Trustees of
Penn and its exclusive licensee Advaxis and reversed a patent ruling that revoked a technology patent that had resulted from an
opposition filed by Anza.&nbsp;&nbsp;The ruling of the EPO Board of Appeals is final and cannot be appealed.&nbsp;&nbsp;The granted
claims, the subject matter of which was discovered by Dr. Yvonne Paterson, scientific founder of Advaxis, are directed to the
method of preparation and composition of matter of recombinant bacteria expressing tumor antigens for treatment of patients with
cancer.&nbsp;&nbsp;Based on searches of publicly available databases, we do not believe that Anza, Aduro or any other third party
owns any published <I>Listeria</I> patents or has any issued patent claims that might materially and adversely affect our ability
to operate our business as currently contemplated in the field of recombinant <I>Listeria</I> monocytogenes.&nbsp;&nbsp;Additionally,
our proprietary position is that the issued patents and licenses for pending applications restricts anyone from using plasmid
based <I>Listeria</I> constructs, or those that are bioengineered to deliver antigens fused to LLO, ActA, or fragments of LLO
or ActA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We are dependent upon our license agreement with Penn;
if we fail to make payments due and owing to Penn under our license agreement, our business will be materially and adversely affected.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the terms of our Second and
Third Amendment Agreements with Penn, as amended, we have acquired exclusive worldwide licenses for an additional 25 patent applications
related to our proprietary <I>Listeria</I> vaccine technology. As of November 5, 2012, we owed Penn approximately $510,000
in patent expenses (including licensing fees).&nbsp; We can provide no assurance that we will be able to make all payments due
and owing thereunder, that such licenses will not be terminated or expire during critical periods, that we will be able to obtain
licenses for other rights which may be important to us, or, if obtained, that such licenses will be obtained on commercially reasonable
terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If we are unable to maintain and/or obtain
licenses, we may have to develop alternatives to avoid infringing on the patents of others, potentially causing increased costs
and delays in drug development and introduction or precluding the development, manufacture, or sale of planned products. Some
of our licenses provide for limited periods of exclusivity that require minimum license fees and payments and/or may be extended
only with the consent of the licensor. We can provide no assurance that we will be able to meet these minimum license fees in
the future or that these third parties will grant extensions on any or all such licenses. This same restriction may be contained
in licenses obtained in the future. Additionally, we can provide no assurance that the patents underlying any licenses will be
valid and enforceable. To the extent any products developed by us are based on licensed technology, royalty payments on the licenses
will reduce our gross profit from such product sales and may render the sales of such products uneconomical.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We have no manufacturing, sales, marketing or distribution
capability and we must rely upon third parties for such.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We do not intend to create facilities to
manufacture our products and therefore are dependent upon third parties to do so. We currently have agreements with Recipharm
Cobra Biologics Limited, which we refer to as Recipharm Cobra, and Vibalogics GmbH for production of our immunotherapies for research
and development and testing purposes. Our reliance on third parties for the manufacture of our drug substance, investigational
new drugs and approved products creates a dependency that could severely disrupt our research and development, our clinical testing,
and ultimately our sales and marketing efforts if the source of such supply proves to be unreliable or unavailable. If the contracted
manufacturing source is unreliable or unavailable, we may not be able to manufacture clinical drug supplies of our immunotherapies,
and our preclinical and clinical testing programs may not be able to move forward and our entire business plan could fail.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;<B><I>If we are unable to establish or manage strategic
collaborations in the future, our revenue and drug development may be limited.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our strategy includes eventual substantial
reliance upon strategic collaborations for marketing and commercialization of ADXS-HPV, and we may rely even more on strategic
collaborations for research, development, marketing and commercialization of our other immunotherapies. To date, we have not entered
into any strategic collaborations with third parties capable of providing these services although we have been heavily reliant
upon third party outsourcing for our clinical trials execution and production of drug supplies for use in clinical trials. In
addition, we have not yet licensed, marketed or sold any of our immunotherapies or entered into successful collaborations for
these services in order to ultimately commercialize our immunotherapies. Establishing strategic collaborations is difficult and
time-consuming. Our discussion with potential collaborators may not lead to the establishment of collaborations on favorable terms,
if at all. For example, potential collaborators may reject collaborations based upon their assessment of our financial, clinical,
regulatory or intellectual property position. If we successfully establish new collaborations, these relationships may never result
in the successful development or commercialization of our immunotherapies or the generation of sales revenue. To the extent that
we enter into co-promotion or other collaborative arrangements, our product revenues are likely to be lower than if we directly
marketed and sold any products that we may develop.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Management of our relationships with our
collaborators will require:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>significant time and effort from our management team;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>coordination of our research and development programs with the research and development priorities of our collaborators;
    and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>effective allocation of our resources to multiple projects.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If we continue to enter into research and
development collaborations at the early phases of drug development, our success will in part depend on the performance of our
corporate collaborators. We will not directly control the amount or timing of resources devoted by our corporate collaborators
to activities related to our immunotherapies. Our corporate collaborators may not commit sufficient resources to our research
and development programs or the commercialization, marketing or distribution of our immunotherapies. If any corporate collaborator
fails to commit sufficient resources, our preclinical or clinical development programs related to this collaboration could be
delayed or terminated. Also, our collaborators may pursue existing or other development-stage products or alternative technologies
in preference to those being developed in collaboration with us. Finally, if we fail to make required milestone or royalty payments
to our collaborators or to observe other obligations in our agreements with them, our collaborators may have the right to terminate
those agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may incur substantial liabilities from any product
liability claims if our insurance coverage for those claims is inadequate.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We face an inherent risk of product liability
exposure related to the testing of our immunotherapies in human clinical trials, and will face an even greater risk if the approved
products are sold commercially. An individual may bring a liability claim against us if one of the immunotherapies causes, or
merely appears to have caused, an injury. If we cannot successfully defend ourselves against the product liability claim, we will
incur substantial liabilities. Regardless of merit or eventual outcome, liability claims may result in:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>decreased demand for our immunotherapies;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>damage to our reputation;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>withdrawal of clinical trial participants;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>costs of related litigation;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>substantial monetary awards to patients or other claimants;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>loss of revenues;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>the inability to commercialize immunotherapies; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>increased difficulty in raising required additional funds in the private and public capital markets.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have insurance coverage on our clinical
trials for each clinical trial site. We do not have product liability insurance because we do not have products on the market.
We currently are in the process of obtaining insurance coverage and to expand such coverage to include the sale of commercial
products if marketing approval is obtained for any of our immunotherapies. However, insurance coverage is increasingly expensive
and we may not be able to maintain insurance coverage at a reasonable cost and we may not be able to obtain insurance coverage
that will be adequate to satisfy any liability that may arise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may incur significant costs complying with environmental
laws and regulations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We and our contracted third parties will
use hazardous materials, including chemicals and biological agents and compounds that could be dangerous to human health and safety
or the environment.&nbsp;&nbsp;As appropriate, we will store these materials and wastes resulting from their use at our or our
outsourced laboratory facility pending their ultimate use or disposal.&nbsp;&nbsp;We will contract with a third party to properly
dispose of these materials and wastes.&nbsp;&nbsp;We will be subject to a variety of federal, state and local laws and regulations
governing the use, generation, manufacture, storage, handling and disposal of these materials and wastes.&nbsp;&nbsp;We may also
incur significant costs complying with environmental laws and regulations adopted in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we use biological and hazardous materials in a manner
that causes injury, we may be liable for damages.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our research and development and manufacturing
activities will involve the use of biological and hazardous materials.&nbsp;&nbsp;Although we believe our safety procedures for
handling and disposing of these materials will comply with federal, state and local laws and regulations, we cannot entirely eliminate
the risk of accidental injury or contamination from the use, storage, handling or disposal of these materials.&nbsp;&nbsp;We do
not carry specific biological or hazardous waste insurance coverage, workers compensation or property and casualty and general
liability insurance policies which include coverage for damages and fines arising from biological or hazardous waste exposure
or contamination.&nbsp;&nbsp;Accordingly, in the event of contamination or injury, we could be held liable for damages or penalized
with fines in an amount exceeding our resources, and our clinical trials or regulatory approvals could be suspended or terminated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We need to attract and retain highly skilled personnel;
we may be unable to effectively manage growth with our limited resources.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of November 5, 2012, we had 12
employees, all of which were full time employees.&nbsp;&nbsp;We do not intend to significantly expand our operations and
staff unless we get adequate financing.&nbsp;&nbsp;If we receive such funding then our new employees may include key
managerial, technical, financial, research and development and operations personnel who will not have been fully integrated
into our operations.&nbsp;&nbsp;We will be required to expand our operational and financial systems significantly and to
expand, train and manage our work force in order to manage the expansion of our operations.&nbsp;&nbsp;Our failure to fully
integrate any new employees into our operations could have a material adverse effect on our business, prospects, financial
condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We operate under an agreement with AlphaStaff,
a professional employment organization that provides us with payroll and human resources services.&nbsp;&nbsp;Our ability to attract
and retain highly skilled personnel is critical to our operations and expansion.&nbsp;&nbsp;We face competition for these types
of personnel from other technology companies and more established organizations, many of which have significantly larger operations
and greater financial, technical, human and other resources than we have.&nbsp;&nbsp;We may not be successful in attracting and
retaining qualified personnel on a timely basis, on competitive terms, or at all.&nbsp;&nbsp;If we are not successful in attracting
and retaining these personnel, our business, prospects, financial condition and results of operations will be materially adversely
affected.&nbsp;&nbsp;In such circumstances we may be unable to conduct certain research and development programs, unable to adequately
manage our clinical trials&nbsp;&nbsp;and other products, and unable to adequately address our management needs.&nbsp;&nbsp;In
addition, from time to time, we are unable to make payroll due to our lack of cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;<B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We depend upon our senior management and key consultants
and their loss or unavailability could put us at a competitive disadvantage.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We depend upon the efforts and abilities
of our senior executives, as well as the services of several key consultants, including Yvonne Paterson, Ph.D.&nbsp;&nbsp;The
loss or unavailability of the services of any of these individuals for any significant period of time could have a material adverse
effect on our business, prospects, financial condition and results of operations.&nbsp;&nbsp;We have not obtained, do not own,
nor are we the beneficiary of, key-person life insurance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risks Related to the Biotechnology / Biopharmaceutical Industry</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The biotechnology and biopharmaceutical industries are
characterized by rapid technological developments and a high degree of competition.&nbsp;&nbsp;We may be unable to compete with
more substantial enterprises.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The biotechnology and biopharmaceutical
industries are characterized by rapid technological developments and a high degree of competition.&nbsp;&nbsp;Competition in the
biopharmaceutical industry is based significantly on scientific and technological factors.&nbsp;&nbsp;These factors include the
availability of patent and other protection for technology and products, the ability to commercialize technological developments
and the ability to obtain governmental approval for testing, manufacturing and marketing.&nbsp;&nbsp;We compete with specialized
biopharmaceutical firms in the U.S., Europe and elsewhere, as well as a growing number of large pharmaceutical companies that
are applying biotechnology to their operations.&nbsp;&nbsp;Many biopharmaceutical companies have focused their development efforts
in the human therapeutics area, including cancer.&nbsp;&nbsp;Many major pharmaceutical companies have developed or acquired internal
biotechnology capabilities or made commercial arrangements with other biopharmaceutical companies.&nbsp;&nbsp;These companies,
as well as academic institutions and governmental agencies and private research organizations, also compete with us in recruiting
and retaining highly qualified scientific personnel and consultants.&nbsp;&nbsp;Our ability to compete successfully with other
companies in the pharmaceutical field will also depend to a considerable degree on the continuing availability of capital to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are aware of certain investigational
new drugs under development or approved products by competitors that are used for the prevention, diagnosis, or treatment of certain
diseases we have targeted for drug development. Various companies are developing biopharmaceutical products that have the potential
to directly compete with our immunotherapies even though their approach to may be different. The biotechnology and biopharmaceutical
industries are highly competitive, and this competition comes from both biotechnology firms and from major pharmaceutical companies,
including companies like: Aduro Biotech, Agenus Inc., Bionovo Inc., Bristol-Myers Squibb, Celgene Corporation, Celldex Therapeutics,
Dendreon Corporation, Inovio Pharmaceutical Inc., Oncolytics Biotech Inc., Oncothyreon Inc., et al.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe that our immunotherapies under
development and in clinical trials will address unmet medical needs in the treatment of cancer. Our competition will be determined
in part by the potential indications for which drugs are developed and ultimately approved by regulatory authorities. Additionally,
the timing of market introduction of some of our potential products or of competitors&rsquo; products may be an important competitive
factor. Accordingly, the relative speed with which we can develop immunotherapies, complete preclinical testing, clinical trials
and approval processes and supply commercial quantities to market is expected to be important competitive factors. We expect that
competition among products approved for sale will be based on various factors, including product efficacy, safety, reliability,
availability, price and patent position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risks Related to the Securities Markets and Investments
in our Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The price of our common stock may be volatile.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The trading price of our common stock may
fluctuate substantially.&nbsp;&nbsp;The price of our common stock that will prevail in the market after the sale of the shares
of common stock by a selling stockholder may be higher or lower than the price you have paid, depending on many factors, some
of which are beyond our control and may not be related to our operating performance.&nbsp;&nbsp;These fluctuations could cause
you to lose part or all of your investment in our common stock.&nbsp;&nbsp;Those factors that could cause fluctuations include,
but are not limited to, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>price and volume fluctuations in the overall stock market from time to time;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>fluctuations in stock market prices and trading volumes of similar companies;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>actual or anticipated changes in our net loss or fluctuations in our operating results or in the expectations of securities
    analysts;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>the issuance of new equity securities pursuant to a future offering, including issuances of preferred stock pursuant to
    the Series B purchase agreement, as amended;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>general economic conditions and trends;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>major catastrophic events;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>sales of large blocks of our stock;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>significant dilution caused by the anti-dilutive clauses in our financial agreements;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>departures of key personnel;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>changes in the regulatory status of our immunotherapies, including results of our clinical trials;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>events affecting Penn or any future collaborators;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>announcements of new products or technologies, commercial relationships or other events by us or our competitors;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>regulatory developments in the U.S. and other countries;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>failure of our common stock to be listed or quoted on the Nasdaq Stock Market, NYSE Amex Equities or other national market
    system;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>changes in accounting principles; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>discussion of us or our stock price by the financial and scientific press and in online investor communities.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the past, following periods of volatility
in the market price of a company&rsquo;s securities, securities class action litigation has often been brought against that company.&nbsp;&nbsp;Due
to the potential volatility of our stock price, we may therefore be the target of securities litigation in the future.&nbsp;&nbsp;Securities
litigation could result in substantial costs and divert management&rsquo;s attention and resources from our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>You may have difficulty selling our shares because they
are deemed &ldquo;penny stocks.&rdquo;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our common stock is deemed to be &ldquo;penny
stock&rdquo; as that term is defined in Rule 3a51-1, promulgated under the Exchange Act.&nbsp;&nbsp;Penny stocks are, generally,
stocks:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>with a price of less than $5.00 per share;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>that are neither traded on a &ldquo;recognized&rdquo; national exchange nor listed on an automated quotation system sponsored
    by a registered national securities association meeting certain minimum initial listing standards; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>of issuers with net tangible assets less than $2.0 million (if the issuer has been in continuous operation for at least
    three years) or $5.0 million (if in continuous operation for less than three years), or with average revenue of less than
    $6.0 million for the last three years.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Section 15(g) of the Exchange Act and Rule
15g-2 promulgated thereunder require broker-dealers dealing in penny stocks to provide potential investors with a document disclosing
the risks of penny stocks and to obtain a manually signed and dated written receipt of the document before effecting any transaction
in a &ldquo;penny stock&rdquo; for the investor&rsquo;s account.&nbsp;&nbsp;We urge potential investors to obtain and read this
disclosure carefully before purchasing any shares that are deemed to be &ldquo;penny stock.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Rule 15g-9 promulgated under the Exchange
Act requires broker-dealers in penny stocks to approve the account of any investor for transactions in such stocks before selling
any &ldquo;penny stock&rdquo; to that investor.&nbsp;&nbsp;This procedure requires the broker-dealer to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>obtain from the investor information about his or her financial situation, investment experience and investment objectives;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>reasonably determine, based on that information, that transactions in penny stocks are suitable for the investor and that
    the investor has enough knowledge and experience to be able to evaluate the risks of &ldquo;penny stock&rdquo; transactions;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>provide the investor with a written statement setting forth the basis on which the broker-dealer made his or her determination;
    and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>receive a signed and dated copy of the statement from the investor, confirming that it accurately reflects the investor&rsquo;s
    financial situation, investment experience and investment objectives.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Compliance with these requirements may
make it harder for investors in our common stock to resell their shares to third parties.&nbsp;&nbsp;Accordingly, our common stock
should only be purchased by investors, who understand that such investment is a long-term and illiquid investment, and are capable
of and prepared to bear the risk of holding our common stock for an indefinite period of time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>A limited public trading market may cause volatility
in the price of our common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our common stock began trading on the OTC
Bulletin Board on July 28, 2005 and&nbsp;is quoted under the symbol ADXS.OB.&nbsp;&nbsp;The quotation of our common stock on the
OTC Bulletin Board&nbsp;does not assure that a meaningful, consistent and liquid trading market currently exists, and in recent
years such market has experienced extreme price and volume fluctuations that have particularly affected the market prices of many
smaller companies like us.&nbsp;&nbsp;Our common stock is thus subject to this volatility.&nbsp;&nbsp;Sales of substantial amounts
of common stock, or the perception that such sales might occur, could adversely affect prevailing market prices of our common
stock and our stock price may decline substantially in a short time and our stockholders could suffer losses or be unable to liquidate
their holdings.&nbsp;&nbsp;Also there are large blocks of restricted stock that have met the holding requirements under Rule 144
that can be unrestricted and sold.&nbsp;&nbsp;Our stock is thinly traded due to the limited number of shares available for trading
on the market thus causing large swings in price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>There is no assurance of an established public trading
market.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A regular trading market for our common
stock may not be sustained in the future.&nbsp;&nbsp;The effect on the OTC Bulletin Board&nbsp;of these rule changes and other
proposed changes cannot be determined at this time.&nbsp;&nbsp;The OTC Bulletin Board&nbsp;is an inter-dealer, over-the-counter
market that provides significantly less liquidity than the Nasdaq Stock Market.&nbsp;&nbsp;Quotes for stocks included on the OTC&nbsp;Bulletin
Board&nbsp;are not listed in the financial sections of newspapers. As such, investors and potential investors may find it difficult
to obtain accurate stock price quotations, and holders of our common stock may be unable to resell their securities at or near
their original offering price or at any price.&nbsp;&nbsp;Market prices for our common stock will be influenced by a number of
factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>the issuance of new equity securities pursuant to a future offering, including issuances of preferred stock pursuant to
    the Series B purchase agreement, as amended;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>changes in interest rates;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>significant dilution caused by the anti-dilutive clauses in our financial agreements;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>competitive developments, including announcements by competitors of new products or services or significant contracts,
    acquisitions, strategic partnerships, joint ventures or capital commitments;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>variations in quarterly operating results;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>change in financial estimates by securities analysts;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>the depth and liquidity of the market for our common stock;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>investor perceptions of our company and the technologies industries generally; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>general economic and other national conditions.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may not be able to achieve secondary trading of our
stock in certain states because our common stock is not nationally traded.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Because our common stock is not listed
for trading on a national securities exchange, our common stock is subject to the securities laws of the various states and jurisdictions
of the U.S. in addition to federal securities law.&nbsp;&nbsp;This regulation covers any primary offering we might attempt and
all secondary trading by our stockholders.&nbsp;&nbsp;If we fail to take appropriate steps to register our common stock or qualify
for exemptions for our common stock in certain states or jurisdictions of the U.S., the investors in those jurisdictions where
we have not taken such steps may not be allowed to purchase our stock or those who presently hold our stock may not be able to
resell their shares without substantial effort and expense.&nbsp;&nbsp;These restrictions and potential costs could be significant
burdens on our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we fail to remain current on our reporting requirements,
we could be removed from the OTC Bulletin Board, which would limit the ability of broker-dealers to sell our securities and the
ability of stockholders to sell their securities in the secondary market.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Companies trading on the OTC Bulletin Board,
such as us, must be reporting issuers under Section 12 of the Exchange Act, as amended, and must be current in their reports under
Section 13, in order to maintain price quotation privileges on the OTC Bulletin Board.&nbsp;&nbsp;For our third quarter 2009 and
fiscal year ended October 31, 2009, we were unable to file our respective quarterly report on Form 10-Q and annual report on Form
10-K in a timely manner, but we were able to make the filings and cure our compliance deficiencies with the OTC Bulletin Board
within the grace period allowed by the OTC Bulletin Board.&nbsp;&nbsp;If we fail to remain current on our reporting requirements,
we could be removed from the OTC Bulletin Board.&nbsp;&nbsp;As a result, the market liquidity for our securities could be severely
adversely affected by limiting the ability of broker-dealers to sell our securities and the ability of stockholders to sell their
securities in the secondary market.&nbsp; In addition, we may not be able to deliver a tranche notice to Optimus under the Series
B purchase agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our internal control over financial reporting and our
disclosure controls and procedures have been ineffective in the past, and may be ineffective again in the future, and failure
to improve them at such time could lead to errors in our financial statements that could require a restatement or untimely filings,
which could cause investors to lose confidence in our reported financial information, and a decline in our stock price.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our internal control over financial reporting
and our disclosure controls and procedures have been ineffective in the past. We have taken steps to improve our disclosure controls
and procedures and our internal control over financial reporting, and as of July 31, 2012, our chief executive officer and chief
financial officer concluded that our disclosure controls and procedures and internal control over financial reporting were effective.
However, there is no assurance that our disclosure controls and procedures will remain effective or that there will be no material
weaknesses in our internal control over financial reporting in the future. Additionally, as a result of the historical material
weaknesses in our internal control over financial reporting and the historical ineffectiveness of our disclosure controls and
procedures, current and potential stockholders could lose confidence in our financial reporting, which would harm our business
and the trading price of our stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our executive officers and directors can exert significant
influence over us and may make decisions that do not always coincide with the interests of other stockholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of November 5, 2012, our officers
and directors and their affiliates, in the aggregate, beneficially own approximately 11.4% of the outstanding shares of our
common stock.&nbsp;&nbsp;As a result, such persons, acting together, have the ability to substantially influence all matters submitted
to our stockholders for approval, including the election and removal of directors, any merger, consolidation or sale of all or
substantially all of our assets, an increase in the number of shares authorized for issuance under our stock option plans, and
to control our management and affairs.&nbsp;&nbsp;Accordingly, such concentration of ownership may have the effect of delaying,
deferring or preventing a change in or discouraging a potential acquirer from making a tender offer or otherwise attempting to
obtain control of our business, even if such a transaction would be beneficial to other stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Sales of additional equity securities may adversely affect
the market price of our common stock and your rights in us may be reduced.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We expect to continue to incur drug development
and selling, general and administrative costs, and to satisfy our funding requirements, we will need to sell additional equity
securities, which may be subject to registration rights and warrants with anti-dilutive protective provisions.&nbsp;&nbsp;The
sale or the proposed sale of substantial amounts of our common stock in the public markets may adversely affect the market price
of our common stock and our stock price may decline substantially.&nbsp;&nbsp;Our stockholders may experience substantial dilution
and a reduction in the price that they are able to obtain upon sale of their shares.&nbsp;&nbsp;Also, new equity securities issued
may have greater rights, preferences or privileges than our existing common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Additional authorized shares of common stock available
for issuance may adversely affect the market.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are authorized to
issue 1,000,000,000 shares of our common stock. As of November 5, 2012, we had 396,938,817 shares of our common stock issued
and outstanding, excluding shares issuable upon exercise of our outstanding warrants, options and convertible promissory
notes. As of November 5, 2012, we had outstanding options to purchase 44,807,424 shares of our common stock at a weighted
average exercise price of approximately $0.16 per share and outstanding warrants to purchase 149,786,934 shares of our common
stock. To the extent the shares of common stock are issued, options
and warrants are exercised or convertible promissory notes are converted, holders of our common stock will experience
dilution. In addition, in the event of any future financing of equity securities or securities convertible into or
exchangeable for, common stock, holders of our common stock may experience dilution. As of November 5, 2012, warrants to
purchase 62,308,937 shares of our common stock are exercisable at $0.03146 per share and are subject to &ldquo;full ratchet&rdquo;
anti-dilution protection upon certain equity issuances below $0.03146 per share (as may be further adjusted).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We are able to issue shares of preferred stock with rights
superior to those of holders of our common stock.&nbsp;&nbsp;Such issuances can dilute the tangible net book value of shares of
our common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our Amended and Restated Certification
of Incorporation provides for the authorization of 5,000,000 shares of &ldquo;blank check&rdquo; preferred stock.&nbsp;&nbsp;Pursuant
to our Amended and Restated Certificate of Incorporation, our board of directors is authorized to issue such &ldquo;blank check&rdquo;
preferred stock with rights that are superior to the rights of stockholders of our common stock, at a purchase price then approved
by our board of directors, which purchase price may be substantially lower than the market price of shares of our common stock,
without stockholder approval.&nbsp;&nbsp;Such issuances can dilute the tangible net book value of shares of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We do not intend to pay cash dividends.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have not declared or paid any cash dividends
on our common stock, and we do not anticipate declaring or paying cash dividends for the foreseeable future. Any future determination
as to the payment of cash dividends on our common stock will be at our board of directors&rsquo; discretion and will depend on
our financial condition, operating results, capital requirements and other factors that our board of directors considers to be
relevant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risks Related to the Offering</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Our management has broad discretion
over the use of the net proceeds that we may receive under our committed equity line financing facility, and we may not use the
net proceeds in ways that would increase the value of our stock price.</I></B><FONT STYLE="font-family: Times New Roman, Times, Serif">
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white">We have broad
discretion over the use of the net proceeds that we may receive if we sell shares of common stock to Hanover, and we could spend
the proceeds in ways that do may not necessarily improve our results of operations or enhance the value of our common stock. Our
failure to apply these funds effectively could have a material adverse effect on our business, delay the development of our product
candidates and cause the price of our common stock to decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>If we sell shares of our common
stock under our committed equity line financing facility, our existing shareholders will experience immediate dilution and, as
a result, our stock price may go down.</I></B><FONT STYLE="font-family: Times New Roman, Times, Serif"> </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white"><FONT STYLE="color: black">In
October 19, 2012, we entered into a committed equity line financing facility, or financing arrangement, under which we may
sell up to $10.0 million of our common stock to Hanover over a 24-month period subject to a maximum of   115,000,000 shares
of our common stock. In connection with such financing arrangement, we issued 3,500,000 shares of common stock to Hanover
upon receipt of their commitment to purchase our common stock in the financing arrangement and we agreed to pay up to
1,800,000 additional shares of our common stock to Hanover to maintain such financing arrangement for the 24-month term,
which together with the other 109,700,000  shares of our common stock being registered hereunder, represents approximately
29.0% of our outstanding shares of our common stock as of November 5, 2012 (approximately 18.4% on a fully diluted basis).
The issuance of such shares of our common stock to Hanover will have an immediately dilutive impact on our
existing shareholders. See also &ldquo;Equity Enhancement Program </FONT>&ndash;<FONT STYLE="color: black"> Commitment Fee
Shares and Maintenance Fee Shares&rdquo; below. If we elect to use the committed equity line financing facility, the sale of
shares of our common stock to Hanover will have an additional dilutive impact on our existing shareholders. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white">Hanover may resell
some or all of the shares we issue to them pursuant to the financing arrangement and such sales could cause the market price of
our common stock to decline significantly with advances under the financing arrangement. To the extent of any such decline, any
subsequent advances would require us to issue a greater number of shares of common stock to Hanover in exchange for each dollar
of the advance. Under these circumstances, our existing shareholders would experience greater dilution and the total amount of
financing that we will be able to raise pursuant to the financing arrangement could be significantly lower than $10.0 million.
Although Hanover is precluded from short sales of shares acquired pursuant to advances under the financing arrangement, the sale
of our common stock under the financing arrangement could encourage short sales by third parties, which could contribute to the
further decline of our stock price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>If we are not able to satisfy
the conditions to each draw down under the committed equity line financing facility, we will not be able to sell our common stock
pursuant to the committed equity line financing facility.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white">Our ability to
sell securities pursuant to the committed equity line financing facility is subject to conditions to each draw down notice that
we present to Hanover requiring Hanover to purchase a specified number of shares of our common stock, which we refer to in this
prospectus as a draw down, that must be satisfied prior to the closing of any sale of our common stock pursuant to such draw down.
These include, among others:</P>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 42.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Accuracy
                                                                                                                 in all material
                                                                                                                 respects of our
                                                                                                                 representations
                                                                                                                 and warranties
                                                                                                                 (except for such
                                                                                                                 representations
                                                                                                                 and warranties
                                                                                                                 qualified by
                                                                                                                 materiality,
                                                                                                                 which shall be
                                                                                                                 accurate in all
                                                                                                                 respects) and
                                                                                                                 our compliance
                                                                                                                 with covenants
                                                                                                                 in all material
                                                                                                                 respects (including,
                                                                                                                 without limitation,
                                                                                                                 our prior delivery
                                                                                                                 to Hanover of
                                                                                                                 any commitment
                                                                                                                 fee shares or
                                                                                                                 maintenance fee
                                                                                                                 shares to be
                                                                                                                 issued to Hanover
                                                                                                                 pursuant to the
                                                                                                                 Purchase Agreement).
                                                                                                                 See &ldquo;Equity
                                                                                                                 Enhancement Program
                                                                                                                 &ndash; Representations
                                                                                                                 and Warranties&rdquo;,
                                                                                                                 &ldquo;Equity
                                                                                                                 Enhancement Program
                                                                                                                 &ndash; Covenants&rdquo;
                                                                                                                 and &ldquo;Equity
                                                                                                                 Enhancement Program
                                                                                                                 &ndash;Fees and
                                                                                                                 Expenses&rdquo;
                                                                                                                 below;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 42.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">A
                                                                                                                 resale registration
                                                                                                                 statement with
                                                                                                                 respect to shares
                                                                                                                 of our common
                                                                                                                 stock to be purchased
                                                                                                                 by Hanover in
                                                                                                                 such draw down
                                                                                                                 must have been
                                                                                                                 declared effective
                                                                                                                 by the SEC and
                                                                                                                 must be available
                                                                                                                 for resale of
                                                                                                                 such shares of
                                                                                                                 our common stock
                                                                                                                 by Hanover; </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 42.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">No
                                                                                                                 material adverse
                                                                                                                 effect on us
                                                                                                                 shall have occurred
                                                                                                                 or be continuing;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 42.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">All
                                                                                                                 the material
                                                                                                                 filings by us
                                                                                                                 required under
                                                                                                                 the Securities
                                                                                                                 Exchange Act
                                                                                                                 of 1934, as amended,
                                                                                                                 shall have been
                                                                                                                 filed with the
                                                                                                                 SEC; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 42.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">The
                                                                                                                 number of shares
                                                                                                                 of our common
                                                                                                                 stock in such
                                                                                                                 draw down shall
                                                                                                                 not exceed:</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 96.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 78.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD>300%
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 average
                                                                                                                                 trading
                                                                                                                                 volume
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 during
                                                                                                                                 the
                                                                                                                                 10
                                                                                                                                 trading
                                                                                                                                 day
                                                                                                                                 period
                                                                                                                                 prior
                                                                                                                                 to
                                                                                                                                 such
                                                                                                                                 draw
                                                                                                                                 down
                                                                                                                                 date;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 96.5pt; text-indent: -0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 96.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 78.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD><FONT STYLE="font-size: 10pt">Together
                                                                                                                                 with
                                                                                                                                 the
                                                                                                                                 shares
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 in
                                                                                                                                 all
                                                                                                                                 prior
                                                                                                                                 draw
                                                                                                                                 downs,
                                                                                                                                 $10
                                                                                                                                 million
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 shares
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock;
                                                                                                                                 or</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 96.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 78.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD><FONT STYLE="font-size: 10pt">Such
                                                                                                                                 number
                                                                                                                                 of
                                                                                                                                 shares
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 that
                                                                                                                                 would
                                                                                                                                 result
                                                                                                                                 in
                                                                                                                                 Hanover
                                                                                                                                 beneficially
                                                                                                                                 owning
                                                                                                                                 more
                                                                                                                                 than
                                                                                                                                 9.99%
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 after
                                                                                                                                 giving
                                                                                                                                 effect
                                                                                                                                 to
                                                                                                                                 such
                                                                                                                                 draw
                                                                                                                                 down.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white"><FONT STYLE="color: black">See
&ldquo;</FONT>Equity Enhancement Program<FONT STYLE="color: black"> </FONT>&ndash; Overview<FONT STYLE="color: black">&rdquo;
below. We may not be able to satisfy these conditions and/or the other conditions to a draw down under the committed equity line
financing facility. If we are unable to satisfy such conditions, we will not be able to sell any of our common stock pursuant
to the committed equity line financing facility.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Shares eligible for future sale may adversely affect
the market.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Sales of a significant number of shares
of our common stock in the public market could harm the market price of our common stock. As additional shares of our common stock
become available for resale in the public market pursuant to this offering, and otherwise, the supply of our common stock will
increase, which could decrease its price. Some or all of the shares of common stock may be offered from time to time in the open
market pursuant to Rule 144, and these sales may have a depressive effect on the market for our shares of common stock. In general,
under Rule 144 as currently in effect, a non-affiliate of ours who has beneficially owned shares of our common stock for at least
six months is entitled to sell his or her shares without any volume limitations, and an affiliate of ours can sell such number
of shares within any three-month period as does not exceed the greater of 1% of the number of shares of our common stock then
outstanding, which equaled approximately 3,969,388 shares as of November 5, 2012, or the average weekly trading volume of
our common stock on the OTC Bulletin Board during the four calendar weeks preceding the filing of a notice on Form 144 with respect
to that sale. Sales under Rule 144 by our affiliates are also subject to manner-of-sale provisions, notice requirements and the
availability of current public information about us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SPECIAL NOTE REGARDING FORWARD-LOOKING
STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus contains forward-looking
statements.&nbsp;&nbsp;We have based these forward-looking statements on our current expectations and projections about future
events.&nbsp;&nbsp;These statements include, but are not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>statements as to the anticipated timing of clinical studies and other business developments;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>statements as to the development of new immunotherapies;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>expectations as to the adequacy of our cash balances to support our operations for specified periods of time and as to
    the nature and level of cash expenditures; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>expectations as to the market opportunities for our immunotherapies, as well as our ability to take advantage of those
    opportunities.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">These statements may be found in the sections
of this prospectus titled &ldquo;Prospectus Summary,&rdquo; &ldquo;Risk Factors,&rdquo; &ldquo;Management&rsquo;s Discussion and
Analysis and Results of Operations,&rdquo; and &ldquo;Description of our Business,&rdquo; as well as in this prospectus generally.&nbsp;&nbsp;Actual
results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including
all the risks discussed in &ldquo;Risk Factors&rdquo; and elsewhere in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, statements that use the terms
&ldquo;can,&rdquo; &ldquo;continue,&rdquo; &ldquo;could,&rdquo; &ldquo;may,&rdquo; &ldquo;potential,&rdquo; &ldquo;predicts,&rdquo;
&ldquo;should,&rdquo; &ldquo;will,&rdquo; &ldquo;believe,&rdquo; &ldquo;expect,&rdquo; &ldquo;plan,&rdquo; &ldquo;intend,&rdquo;
&ldquo;estimate,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;scheduled&rdquo; and similar expressions are intended to identify forward-looking
statements.&nbsp;&nbsp;All forward-looking statements in this prospectus reflect our current views about future events and are
based on assumptions and are subject to risks and uncertainties that could cause our actual results to differ materially from
future results expressed or implied by the forward-looking statements.&nbsp;&nbsp;Many of these factors are beyond our ability
to control or predict.&nbsp;&nbsp;Forward-looking statements do not guarantee future performance and involve risks and uncertainties.&nbsp;&nbsp;Actual
results will differ, and may differ materially, from projected results as a result of certain risks and uncertainties.&nbsp;&nbsp;The
risks and uncertainties include, without limitation, those described under &ldquo;Risk Factors&rdquo; and those detailed from
time to time in our filings with the SEC, and include, among others, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Our limited operating history and ability to continue as a going concern;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Our ability to successfully develop and commercialize products based on our <I>Lm</I>-LLO based immunotherapy platform
    technology;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>A lengthy approval process and the uncertainty of FDA and other government regulatory requirements may have a material
    adverse effect on our ability to commercialize our applications;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Clinical trials may fail to demonstrate the safety and effectiveness of our applications or therapies, which could have
    a material adverse effect on our ability to obtain government regulatory approval;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>The degree and nature of our competition;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Our ability to employ and retain qualified employees; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>The other factors referenced in this prospectus, including, without limitation, under the sections titled &ldquo;Risk
    Factors,&rdquo; &ldquo;Management&rsquo;s Discussion and Analysis and Results of Operations,&rdquo; and &ldquo;Description
    of our Business.&rdquo;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">These risks are not exhaustive.&nbsp;&nbsp;Other
sections of this prospectus may include additional factors which could adversely impact our business and financial performance.&nbsp;&nbsp;Moreover,
we operate in a very competitive and rapidly changing environment.&nbsp;&nbsp;New risk factors emerge from time to time and it
is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or
the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained
in any forward-looking statements.&nbsp;&nbsp;Given these risks and uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual results.&nbsp;&nbsp;These forward-looking statements are made only as of
the date of this prospectus.&nbsp;&nbsp;Except for our ongoing obligation to disclose material information as required by federal
securities laws, we do not intend to update you concerning any future revisions to any forward-looking statements to reflect events
or circumstances occurring after the date of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>USE OF PROCEEDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will not receive any proceeds from the
resale of the shares of common stock offered by the selling stockholder as all of such proceeds will be paid to the selling stockholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EQUITY ENHANCEMENT PROGRAM</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On October 26, 2012, we entered into
the Purchase Agreement with Hanover providing for
a financing arrangement that is sometimes referred to as a committed equity line financing facility, which we refer to in this
prospectus as the Equity Enhancement Program. The Equity Enhancement Program was entered into in reliance upon the provisions
of Section&nbsp;4(a)(2) and Rule 506 of Regulation D promulgated by the SEC under the Securities Act of 1933, as amended, or the
Securities Act. The Purchase Agreement provides that Hanover has committed to purchase up to $10 million of shares of our common
stock, in one or more draw downs, over the 24-month term of the Purchase Agreement under certain specified conditions and limitations
as specified in the Purchase Agreement, which include:</P>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 42.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Accuracy
                                                                                                                 of our representations
                                                                                                                 and warranties
                                                                                                                 and our compliance
                                                                                                                 with covenants
                                                                                                                 in all material
                                                                                                                 respects;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 42.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">A
                                                                                                                 resale registration
                                                                                                                 statement with
                                                                                                                 respect to shares
                                                                                                                 of our common
                                                                                                                 stock to be purchased
                                                                                                                 by Hanover in
                                                                                                                 such draw down
                                                                                                                 must have been
                                                                                                                 declared effective
                                                                                                                 by the SEC and
                                                                                                                 must be available
                                                                                                                 for resale of
                                                                                                                 such shares by
                                                                                                                 Hanover;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 42.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">No
                                                                                                                 stop order or
                                                                                                                 injunction with
                                                                                                                 respect to our
                                                                                                                 common stock
                                                                                                                 or such offering
                                                                                                                 shall be in effect;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 42.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">All
                                                                                                                 the material
                                                                                                                 filings by us
                                                                                                                 required under
                                                                                                                 the Securities
                                                                                                                 Exchange Act
                                                                                                                 of 1934, as amended,
                                                                                                                 or the Exchange
                                                                                                                 Act shall have
                                                                                                                 been filed with
                                                                                                                 the SEC;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 42.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">No
                                                                                                                 suspension of
                                                                                                                 trading or delisting
                                                                                                                 of our common
                                                                                                                 stock shall have
                                                                                                                 occurred;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 42.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Our
                                                                                                                 compliance in
                                                                                                                 all material
                                                                                                                 respect with
                                                                                                                 applicable laws
                                                                                                                 with respect
                                                                                                                 to such offering;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 42.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">No
                                                                                                                 action, suit,
                                                                                                                 proceeding or
                                                                                                                 other litigations
                                                                                                                 shall be pending
                                                                                                                 or threatened
                                                                                                                 to restrain,
                                                                                                                 prevent or change
                                                                                                                 the transactions
                                                                                                                 contemplated
                                                                                                                 by the Purchase
                                                                                                                 Agreement;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 42.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">The
                                                                                                                 number of shares
                                                                                                                 of our common
                                                                                                                 stock in such
                                                                                                                 draw down shall
                                                                                                                 not exceed the
                                                                                                                 lesser of:</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 96.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 78.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD>300%
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 average
                                                                                                                                 trading
                                                                                                                                 volume
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 during
                                                                                                                                 the
                                                                                                                                 10
                                                                                                                                 trading
                                                                                                                                 day
                                                                                                                                 period
                                                                                                                                 prior
                                                                                                                                 to
                                                                                                                                 such
                                                                                                                                 draw
                                                                                                                                 down
                                                                                                                                 date;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 96.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 78.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD><FONT STYLE="font-size: 10pt">Together
                                                                                                                                 with
                                                                                                                                 the
                                                                                                                                 shares
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 in
                                                                                                                                 all
                                                                                                                                 prior
                                                                                                                                 draw
                                                                                                                                 downs,
                                                                                                                                 $10
                                                                                                                                 million
                                                                                                                                 worth
                                                                                                                                 of
                                                                                                                                 shares
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock;
                                                                                                                                 and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 96.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 78.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD><FONT STYLE="font-size: 10pt">Such
                                                                                                                                 number
                                                                                                                                 of
                                                                                                                                 shares
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 that
                                                                                                                                 would
                                                                                                                                 result
                                                                                                                                 in
                                                                                                                                 Hanover
                                                                                                                                 beneficially
                                                                                                                                 owning
                                                                                                                                 more
                                                                                                                                 than
                                                                                                                                 9.99%
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 after
                                                                                                                                 giving
                                                                                                                                 effect
                                                                                                                                 to
                                                                                                                                 such
                                                                                                                                 draw
                                                                                                                                 down.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 42.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">No
                                                                                                                 material adverse
                                                                                                                 effect on us
                                                                                                                 shall have occurred
                                                                                                                 or be continuing;
                                                                                                                 and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 42.45pt"></TD><TD STYLE="width: 18.05pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">The
                                                                                                                 shares of our
                                                                                                                 common stock
                                                                                                                 to be delivered
                                                                                                                 in such draw
                                                                                                                 down shall be
                                                                                                                 duly authorized,
                                                                                                                 validly issued
                                                                                                                 and delivered
                                                                                                                 electronically
                                                                                                                 to Hanover&rsquo;s
                                                                                                                 or its designee&rsquo;s
                                                                                                                 account at DTC.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, we have agreed to (a) reserve
and keep available at all times such number of authorized but unissued shares of our common stock as required to be issued pursuant
to the Purchase Agreement, from time to time and (b) take all action necessary to cause our common stock to continue to be registered
under the Exchange Act and listed on the OTC Bulletin Board and use commercially reasonable efforts to comply with the reporting
and filing obligations under applicable securities laws, rules and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Mechanics of each Draw Down Notice</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">From time to time over the term of the
Purchase Agreement, and in our sole discretion, subject to the satisfaction of the conditions described above, we may present
Hanover with a draw down based on a purchase price per share calculated over 10 consecutive trading days following the start date
we designate in our draw down, which we refer to in this prospectus as the Pricing Period (subject to adjustment as described
in &ldquo;Mechanics of Each Draw Down Notice &ndash; Purchase Price of Required Shares&rdquo; below). Only one draw down may be
made during any Pricing Period and at least five trading days must elapse before a subsequent Pricing Period may occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Closing of Draw Down</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Each closing of a draw down shall occur
no later than the 12<SUP>th</SUP> business day following the commencement of the applicable Pricing Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Floor Price; Reduction in Required
Purchase of Shares</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The purchase price of our common stock
to be sold in connection with such draw down is subject to the Floor Price. If the closing sale price of our common stock on any trading day in the applicable Pricing Period
falls below the Floor Price, the number of shares of our common stock required to be purchased by Hanover will be reduced by 10%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Purchase Price of Required Shares</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The purchase price per share for any shares
of our common stock required to be purchased by Hanover will be equal to 90% of the arithmetic average of the five lowest closing
sale prices of our common stock during the applicable Pricing Period (or, if less, the arithmetic average of all trading days
with closing sale prices in excess of the Floor Price), subject to adjustment upon an alternative transaction as describe below.
See &ldquo;Mechanics of Each Draw Down &ndash; Alternative Transactions&rdquo; below. Each trading day with a closing sale price
less than the Floor Price is excluded from the calculation of the purchase price and automatically reduces the number of trading
days in the applicable Pricing Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Purchase Price Adjustment upon an Alternate
Transaction</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In connection with any proposed draw down,
if a third party purchases our common stock and/or securities convertible or exercisable or exchangeable into common stock during
the period beginning at the start of the applicable Pricing Period and ending on the second trading day after the closing date
of such draw down at a purchase price per share of our common stock that is less than the purchase price in such proposed draw
down, the proposed draw down purchase price shall be adjusted downward to the purchase price in such alternate transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Commitment Fee Shares and Maintenance Fee Shares</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In consideration for Hanover&rsquo;s execution
and delivery of the Purchase Agreement, in connection with the execution and delivery of the Purchase Agreement, we have issued
Hanover 3,500,000 Commitment Fee Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">We have also agreed to issue Hanover up
to 1,800,000 Maintenance Fee Shares, during any
full calendar quarter during the term of the Purchase Agreement, if no shares of our common stock have been purchased or sold
because we did not deliver a draw down to Hanover. The number of Maintenance Fee Shares to be delivered to Hanover, from time
to time, with respect to any calendar quarter, shall be equal to approximately $15,000 worth of shares of our common stock at
a 10% discount to market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The offering contemplated hereunder includes
the 3,500,000 Commitment Fee Shares previously issued to Hanover and the 1,800,000 Maintenance Fee Shares that may become issuable
to Hanover as described above pursuant to the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Selling Restrictions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Hanover has agreed that during the term
of the Purchase Agreement, that neither Hanover nor any of its affiliates will, directly or indirectly, engage in any short sales
involving our securities or grant any option to purchase, or acquire any right to dispose of or otherwise dispose for value of,
any shares of our common stock or any securities convertible into or exercisable or exchangeable for any shares of our common
stock, or enter into any swap, hedge or other similar agreement that transfers, in whole or in part, the economic risk of ownership
of any shares of our common stock. The foregoing restrictions do not prohibit Hanover from engaging in transactions relating to
any of the shares of our common stock that it owns, including the Commitment Fee Shares, or that it is obligated to purchase under
a pending draw down.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Termination </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Purchase Agreement may be terminated
at any time by the mutual written consent of the parties. Unless earlier terminated, the Purchase Agreement will terminate automatically
on the earlier to occur of (i)&nbsp;the first day of the month next following the 24-month anniversary of the effective date of
the registration statement of which this prospectus forms a part (which term may not be extended by the parties) or (ii)&nbsp;the
date on which Hanover purchases the entire commitment amount under the Purchase Agreement. We may terminate the Purchase Agreement
effective upon one trading day prior written notice to Hanover, subject to certain conditions. Hanover may terminate the Purchase
Agreement effective upon one trading day prior written notice to us under certain circumstances, including the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 2%">&bull;</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top">The existence of any condition, occurrence, state of facts or event having, or insofar as
    reasonably can be foreseen would likely have, any effect on our business, operations, properties or financial condition that
    is material and adverse to us;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 2%">&bull;</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top">We enter into an agreement providing for certain types of financing transactions that are
    similar to the equity line with Hanover;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 2%">&bull;</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Certain transactions involving a change in control of the company or the sale of all or substantially
    all of our assets have occurred;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 2%">&bull;</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top">We are in breach or default in any material respect under any of the provisions of the Purchase
    Agreement or the Registration Rights Agreement, and, if such breach or default is capable of being cured, such breach or default
    is not cured within 10 trading days after notice of such breach or default is delivered to us.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 2%">&bull;</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top">While Hanover holds any shares issued under the Purchase Agreement, the effectiveness of the
    registration statement that includes this prospectus is suspended or the use of this prospectus is suspended or prohibited,
    and such suspension or prohibition continues for a period of 20 consecutive trading days or for more than an aggregate of
    60 trading days in any 365-day period, subject to certain exceptions.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 2%">&bull;</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Trading in our common stock is suspended or our common stock ceases to be listed or quoted
    on a trading market, and such suspension or failure continues for a period of 20 consecutive trading days or for more than
    an aggregate of 60 trading days in any 365-day period.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 2%">&bull;</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top">We have filed for and/or are subject to any bankruptcy, insolvency, reorganization or liquidation
    proceedings.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Purchase Agreement provides that no
termination of the Purchase Agreement will limit, alter, modify, change or otherwise affect any of the parties&rsquo; rights or
obligations with respect to any pending draw down, and that the parties must fully perform their respective obligations with respect
to any such pending draw down under the Purchase Agreement, provided all of the conditions to the settlement thereof are timely
satisfied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Indemnification</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Purchase Agreement also provides for
indemnification of Hanover and its affiliates in the event that Hanover incurs losses, liabilities, obligations, claims, contingencies,
damages, costs and expenses related to a breach by us of any of our representations and warranties under the Purchase Agreement
or the other related transaction documents or any action instituted against Hanover or its affiliates due to the transactions
contemplated by the Purchase Agreement or other transaction documents, subject to certain limitations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Registration Rights Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In connection with the Purchase Agreement,
we entered into the Registration Rights
Agreement, pursuant to which we granted to Hanover certain registration rights related to the Commitment Fee Shares, the Maintenance
Fee Shares, and the shares issuable under the Purchase Agreement. Pursuant to the Registration Rights Agreement, we have filed
with the SEC a registration statement, of which this prospectus is a part, relating to the selling stockholder&rsquo;s resale
of the Commitment Fee Shares, the Maintenance Fee Shares, and any shares of common stock purchased by Hanover under the Purchase
Agreement. As previously noted above, the effectiveness of this registration statement is a condition precedent to our ability
to sell common stock to Hanover under the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">We also agreed, among other things, to
indemnify Hanover from certain liabilities and fees and expenses of Hanover incident to our obligations under the Registration
Rights Agreement, including certain liabilities under the Securities Act. Hanover has agreed to indemnify and hold harmless us
and each of our directors, officers and persons who control us against certain liabilities that may be based upon written information
furnished by Hanover to us for inclusion in a registration statement pursuant to the Registration Rights Agreement, including
certain liabilities under the Securities Act of 1933.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>The foregoing description of the Purchase
Agreement and the Registration Rights Agreement does not purport to be complete and is qualified in its entirety by reference
to the full text of the Purchase Agreement and Registration Rights Agreement, copies of which have been filed or incorporated
by reference as exhibits to the registration statement of which this prospectus is a part. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MARKET PRICE OF AND DIVIDENDS ON OUR
COMMON STOCK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AND RELATED STOCKHOLDER MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Since July 28, 2005, our common stock&nbsp;has
been quoted on&nbsp;the OTC Bulletin Board under the symbol ADXS.OB.&nbsp;&nbsp;The following table shows, for the periods indicated,
the high and low bid prices per share of our common stock as reported by the OTC Bulletin Board.&nbsp;&nbsp;These bid prices represent
prices quoted by broker-dealers on the OTC Bulletin Board.&nbsp;&nbsp;The quotations reflect inter-dealer prices, without retail
mark-up, mark-down or commissions, and may not represent actual transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Fiscal&nbsp;2012</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Fiscal&nbsp;2011</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">High</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Low</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">High</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Low</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 34%">First Quarter (November 1-January 31)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 8%; text-align: right">0.19</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 8%; text-align: right">0.14</TD>
    <TD NOWRAP STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 8%; text-align: right">0.16</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 8%; text-align: right">0.11</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Second Quarter (February 1- April 30) (1)</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">0.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">0.11</TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">0.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">0.11</TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Third Quarter (May 1 - July 31</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">0.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$&nbsp;</TD>
    <TD STYLE="text-align: right">0.07</TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">0.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">0.14</TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Fourth Quarter (August 1 - October 31)</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">0.08</TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">0.04</TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">0.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">0.13</TD>
    <TD>&nbsp;</TD>
    </TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 31px">(1)</TD>
    <TD STYLE="text-align: justify">From March 1, 2011 through April 1, 2011, our common stock was traded on the OTCQB Market
    place, a new market for OTC-traded companies that are registered and current in their reporting obligations to the SEC or
    a U.S. banking or insurance regulator.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of November 5, 2012, there were
approximately 93 stockholders of record.&nbsp;&nbsp;Because shares of our common stock are held by depositaries, brokers and
other nominees, the number of beneficial holders of our shares is substantially larger than the number
of&nbsp;&nbsp;stockholders of record. Based on information available to us, we believe there are approximately 3,500
beneficial owners of our shares of our common stock in addition to the stockholders of record. On&nbsp;November 12, 2012,
the last reported sale price per share for our common stock as reported by the OTC Bulletin Board&nbsp;was $0.04.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have not declared or paid any cash dividends
on our common stock, and we do not anticipate declaring or paying cash dividends for the foreseeable future. We are not subject
to any legal restrictions respecting the payment of dividends, except that we may not pay dividends if the payment would render
us insolvent.&nbsp;&nbsp;Any future determination as to the payment of cash dividends on our common stock will be at our board
of directors&rsquo; discretion and will depend on our financial condition, operating results, capital requirements and other factors
that our board of directors considers to be relevant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders of Series B preferred stock will
be entitled to receive dividends, which will accrue in shares of Series B preferred stock on an annual basis at a rate equal to
10% per annum from the issuance date. Accrued dividends will be payable upon redemption of the Series B preferred stock or upon
the liquidation, dissolution or winding up of our company. The Series B preferred stock ranks, with respect to dividend rights
and rights upon liquidation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>senior to our common stock and any other class or series of preferred stock (other than Series A preferred stock or any
    class or series of preferred stock that we intend to cause to be listed for trading or quoted on Nasdaq, NYSE Amex or the
    New York Stock Exchange);</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD><I>pari passu</I> with any outstanding shares of our Series A preferred stock (none of which are issued and outstanding
    as of the date hereof); and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>junior to all of our existing and future indebtedness and any class or series of preferred stock that we intend to cause
    to be listed for trading or quoted on Nasdaq, NYSE Amex or the New York Stock Exchange.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS
OF</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>This Management&rsquo;s Discussion and
Analysis of Financial Conditions and Results of Operations and other portions of this prospectus contain forward-looking information
that involves risks and uncertainties.&nbsp;&nbsp;Our actual results could differ materially from those anticipated by the forward-looking
information.&nbsp;&nbsp;Factors that may cause such differences include, but are not limited to, availability and cost of financial
resources, product demand, market acceptance and other factors discussed in this prospectus under the heading &ldquo;Risk Factors&rdquo;.&nbsp;&nbsp;This
Management&rsquo;s Discussion and Analysis of Financial Conditions&nbsp;and Results of Operations should be read in conjunction
with our financial statements and the related notes included elsewhere in this prospectus.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Advaxis is a development stage biotechnology
company with the intent to develop safe and effective immunotherapies for cancer and infectious diseases. These immunotherapies
are based on a platform technology under exclusive worldwide license from Penn that utilizes live attenuated <I>Listeria monocytogenes
</I>bioengineered to secrete antigen/adjuvant fusion proteins. These <I>Lm</I>-LLO strains use a fragment of the protein listeriolysin
(LLO), fused to a tumor associated antigen (TAA) or other antigen of interest. We believe these <I>Lm</I>-LLO agents redirect
the potent immune response to Lm which are inherent in humans, to the TAA or antigen of interest. The immune response to a live,
metabolically competent pathogen is much more complex than the response to a synthetic or organic molecule and may enable a more
comprehensive therapeutic outcome than current treatment modalities. We believe this to be a broadly enabling platform technology
that can be applied to the treatment of many types of cancers and infectious diseases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have no customers. Since our inception
in 2002, we have focused our development efforts on understanding our technology and establishing a drug development pipeline
that incorporates this technology into therapeutic immunotherapies (currently those targeting HPV-associated diseases (CIN 2/3,
cervical cancer, head and neck cancer), prostate cancer, and HER2 expressing cancers (breast, gastric, bladder, brain, pancreatic
and ovarian cancers). Although no immunotherapies have been commercialized to date, research and development and investment continues
to be placed behind the pipeline and the advancement of this technology. Pipeline development and the further exploration of the
technology for advancement entail risk and expense. We anticipate that our ongoing operational costs will increase significantly
as we continue conducting our clinical development program.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following factors, among others, could
cause actual results to differ from those indicated in the above forward-looking statements: increased length and scope of our
clinical trials, failure to recruit patients, increased costs related to intellectual property related expenses, increased cost
of manufacturing and higher consulting costs. These factors or additional risks and uncertainties not known to us or that we currently
deem immaterial may impair business operations and may cause our actual results to differ materially from any forward-looking
statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Although we believe the expectations reflected
in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We expect our future sources of liquidity
to be primarily debt and equity capital raised from investors, as well as licensing fees and milestone payments in the event we
enter into licensing agreements with third parties, and research collaboration fees in the event we enter into research collaborations
with third parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If additional capital were raised through
the sale of equity or convertible debt securities, including pursuant to our committed equity line financing facility, the issuance
of such securities would result in additional dilution to our existing stockholders. If we fail to raise a significant amount
of capital, we may need to significantly curtail operations or cease operations in the near future.&nbsp;&nbsp;Any sale of our
common stock or issuance of rights to acquire our common stock below $0.03146 per share (as may be further adjusted) will trigger
a significant dilution due to the anti-dilution protection provisions in certain of our outstanding warrants and debt instruments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Plan of Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If we are successful in our financing plans
we intend to use the majority of the proceeds to complete our two Phase 2 clinical trials of ADXS-HPV, our first <I>Lm</I>-LLO
based immunotherapy targeting diseases associated with the Human Papilloma Virus, which we refer to as HPV. One trial is a 120
patient study in the U.S. in CIN 2/3, and the other trial is a 110 patient study in India in recurrent or refractory cervical
cancer. We also anticipate using the funds to further our preclinical and clinical research and development efforts in developing
immunotherapies in prostate cancer, HER2 expressing cancers (such as breast, gastric, bladder, brain, pancreatic and ovarian cancer)
and for general and administrative activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During the next 24 months, our strategic
focus will be to achieve the following goals and objectives:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Complete our two Phase 2 clinical studies of ADXS-HPV in the treatment of CIN 2/3 and recurrent or refractory cervical
    cancer;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Continue an additional Phase 2 clinical trial of ADXS-HPV in the treatment of advanced cervical cancer with the Gynecologic
    Oncology Group, which we refer to as the GOG, largely underwritten by the NCI;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Continue to focus on our collaboration with the CRUK to carry out our Phase 1/2 clinical trial of ADXS-HPV in the treatment
    of head and neck cancer entirely underwritten by the CRUK;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>To support our Cooperative Research and Development Agreement with the NCI to understand the mechanisms of action of <I>Lm</I>-LLO
    based immunotherapies, to develop new constructs, and to advance them to clinical testing;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Continue to further our structured collaboration with the University of British Columbia on innovative uses of <I>Listeria
    </I>constructs in infectious disease, parasitical disease and neonatal immunity;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Continue to focus on our collaboration with the School of Veterinary Medicine at Penn to carry out our Phase 1 clinical
    trial of ADXS-HER2 in canine osteosarcoma;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Continue to develop strategic and development collaborations with academic laboratories and potential commercial partners;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Continue the development work necessary to bring ADXS-PSA for the treatment of prostate cancer into clinical trials, and
    initiate that trial provided that funding is available;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Continue the development work necessary to bring ADXS-HER2 for the treatment of HER2 expressing cancers (such as breast,
    gastric, bladder, brain, pancreatic and ovarian cancer) into clinical trials, and initiate these trials when and if funding
    is available; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Continue the preclinical development of other immunotherapies, as well as continue research to expand our technology platform.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our projected annual staff, overhead, laboratory
and nonclinical expenses are estimated to be approximately $4.1 million starting in fiscal year beginning November 1, 2011. The
cost of our Phase 2 clinical studies in therapeutic treatment of CIN 2/3 and recurrent and refractory cervical cancer is estimated
to be approximately $11.2 million over the estimated 30 month period of the trial. While approximately $6 million has already
been paid towards these costs, we must raise additional funds in order to complete the Phase 2 trials. If we can raise additional
funds, we intend to commence the clinical work in prostate cancer and a HER2 expressing cancer in 2012. The timing and estimated
costs of these projects are difficult to predict.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the clinical progress continues to be
successful and the value of our company increases, we may attempt to accelerate the timing of the required financing and, conversely,
if the trial or trials are not successful we may slow our spending and defer the timing of additional financing. While we will
attempt to attract a corporate partnership and grants, we have not assumed the receipt of any additional financial resources in
our cash planning.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We anticipate that our research and development
expenses will increase significantly as a result of our expanded development and commercialization efforts related to clinical
trials, drug development, and development of strategic and other relationships required ultimately for the licensing, manufacture
and distribution of our immunotherapies. We regard to three of our immunotherapies as major research and development projects.
The timing, costs and uncertainties of those projects are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>ADXS-HPV - Phase 2 CIN 2/3 Trial Summary Information (U.S.:
target enrollment: 120 Patients)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The ADXS-HPV CIN 2/3 study is a randomized, single blind, placebo
controlled Phase 2 dose-ranging study designed to assess the safety and efficacy of ADXS-HPV in up to 3 different dose cohorts:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Cost incurred through July 31, 2012: approximately $4.9 million.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Estimated future clinical costs: approximately $2.3 million.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Anticipated Timing: commenced in March 2010 (with patient dosing having commenced in June 2010); reporting of low dose
cohort in early 2012, mid dose cohort is actively enrolling; completion October 2012 or beyond. High dose cohort commenced recruiting
in April 2012, completion anticipated in February-March 2013.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Uncertainties:</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>The FDA (or relevant foreign regulatory authority) may place the project on clinical hold or stop the project;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>One or more serious adverse events in otherwise healthy patients enrolled in the trial;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Lack of clinical benefit;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Difficulty in recruiting patients;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Delays in the program;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Material cash flows; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Anticipated Timing: 2012/2013 and dependent upon completion and results from each dose cohort adequate fund raising, entering
    a licensing deal or pursuant to a marketing collaboration subject to regulatory approval to market and sell the product.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>ADXS-HPV - Phase 2 Cervical Cancer Trial Summary Information
(India: target enrollment: 110 Patients)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The ADXS-HPV cervical cancer trial in India is a Phase 2 study
of ADXS-HPV +/- Cisplatin in patients with recurrent or refractory cervical cancer that has failed previous treatment:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Cost incurred through July 31, 2012: approximately $2.3 million.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Estimated future clinical costs: approximately $2.5 million.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Anticipated Timing: commenced in November 2010; reporting of preliminary survival data began in January 2012, completion
    2012 or beyond.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Additional Uncertainties:</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>One or more serious adverse events in these advanced cancer patients enrolled in the trial; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Lack of clinical benefit.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>ADXS-HPV - Phase 2 Cervical Cancer Trial Summary Information
(U.S. GOG/NCI: target enrollment: 67 Patients)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The ADXS-HPV cervical cancer trial in the US is a randomized,
active therapy controlled Phase 2 study to assess the safety and efficacy of ADXS-HPV +/- cisplatin as second line therapy for
the treatment of recurrent or refractory cervical cancer that has not responded to previous treatment:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Cost incurred through July 31, 2012: Minimal<B></B>.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Estimated future clinical costs: $500,000 (NCI underwriting costs of $4.0 million to $5.0 million).</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Anticipated Timing: commenced September 2011 and open to enrollment; 1st patient dosed on January 9, 2012; completion
    2013 and beyond.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Additional Uncertainties:</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Unknown timing in recruiting patients and conducting the study based on GOG/NCI controlled study; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Delays in the program;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>One or more serious adverse events in these advanced cancer patients enrolled in the trial; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Lack of clinical benefit.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>ADXS-HPV - Phase 2 Cancer of the Head and Neck Trial Summary
Information (U.K. CRUK: target enrollment: 45 Patients)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The ADXS-HPV head and neck cancer trial is a Phase 1/2 dose
escalation trial of ADXS-HPV in patients with head &amp; neck cancer:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Cost incurred through July 31, 2012: Minimal.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Estimated future clinical costs: approximately $50,000 (CRUK to underwrite costs of $3.0 million to $4.0 million).</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Anticipated Timing: the CRUK is funding a study of up to 45 patients at 3 UK sites that we expect will commence in late
    2012.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Additional Uncertainties:</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Unknown timing in recruiting patients and conducting the study based on CRUK controlling the study;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Delays in the program;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>One or more serious adverse events in these advanced patients enrolled in the trial; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Lack of clinical benefit.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>ADXS-HER2 Phase 1/2 Trial Summary Information (Canine Osterosarcoma:
target enrollment: 9-18 dogs)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The ADXS-HER2 canine osteosarcoma trial is a Phase 1 study
to evaluate the safety of ADXS-HER2 for the treatment of osteosarcoma in dogs:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Cost incurred through July 31, 2012: Minimal.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Estimated future costs: approximately $<B></B>500,000<B></B>.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Anticipated Timing: to be determined.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Additional Uncertainties:</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Unknown timing in recruiting dogs and conducting the study based on Penn controlling the study;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Delays in the program;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>One or more serious adverse events in these dogs enrolled in the trial; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Lack of clinical benefit.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>ADXS-PSA - GMP Production and Phase 1/2 Trial Summary Information
(Prostate Cancer: target enrollment: 20-35 Patients)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ADXS-PSA is an <I>Lm</I>-LLO based immunotherapy that is designed
to target PSA and intended for the treatment of castration resistant prostate cancer:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Cost incurred through July 31, 2012: Minimal<B></B>.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Estimated future costs: approximately $3.5 million.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Anticipated Timing: to be determined.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Additional Uncertainties:</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>FDA (or foreign regulatory authority) may not approve the study.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>ADXS-HER2 - GMP Production and Phase 1/2 Trial Summary Information
(HER2 Expressing Cancer: target enrollment: 15-35 Patients)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ADXS-HER2 is an <I>Lm</I>-LLO based immunotherapy that is designed
to target the HER2 antigen and intended for the treatment of HER2 expressing cancers (breast, gastric, bladder, brain, pancreatic
and ovarian):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Cost incurred through July 31, 2012: Minimal.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Estimated future costs: to be determined.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38pt; text-indent: -19pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 25px; font-family: Symbol">&middot;</TD>
    <TD>Anticipated Timing: to be determined.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="margin: 0 0 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Additional Uncertainties:</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>FDA (or foreign regulatory authority) may not approve the study.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Results of Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Three Months Ended July 31, 2012 Compared to Three Months
Ended July 31, 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Revenue</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We did not record any
revenue for the three months ended July 31, 2012 and 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Research and Development Expenses</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Research and development expenses decreased
by approximately $627,000 or 32% to approximately $1,331,000 for the three months ended July 31, 2012 as compared with approximately
$1,959,000 for the same period a year ago principally attributable to decreases in clinical trial expenses and related manufacturing
costs as well as lower overall supply costs. In addition, there was an overall decrease in compensation expense resulting from
bonuses paid to employees in the period a year ago that were not repeated in the current period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We anticipate continued overall decrease
in R&amp;D expenses resulting from lower clinical trial costs more than offsetting expanded development efforts primarily related
to new clinical trials and product development. In addition, expenses will be incurred in the development of strategic and other
relationships required to license, manufacture and distribute our product candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>General and Administrative Expenses</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">General and administrative expenses increased
by approximately $613,000 or 37%, to approximately $2,252,000 for the three months ended July 31, 2012 as compared with approximately
$1,638,000 for the same period a year ago. This was primarily the result of noncash expenses related to the issuance of shares
of our common stock related to the Numoda-Socius various agreements entered into in the current period resulting in certain shares
being issued to Socius. These increases were offset by decreases in cash spending for legal and consulting fees in the current
period when compared with the same period a year ago as well as decreases in compensation expense resulting from bonuses paid to
employees in the period a year ago that were not repeated in the current period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Interest Expense</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For the three months
ended July 31, 2012, interest expense decreased approximately $725,000 to approximately $1,045,000 for the three months ended July
31, 2012 as compared with approximately $1,770,000 in the period a year ago. The Company recorded less interest expense in the
current period primarily resulting from the exchange of convertible promissory notes in the aggregate principal amount of approximately
$4.5 million for (i) an aggregate of approximately 52.2 million shares of our common stock and (ii) warrants to purchase up to
approximately 5.8 million shares of our common stock. This decrease was slightly offset by additional interest expense related
to the issuance of May 2012 convertible promissory notes in the current period and the issuance of shares to JMJ under the above
mentioned Settlement Agreement, resulting in noncash expense from the recognition of a beneficial conversion feature.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Additionally, the debt discounts related
to the original fair values of both warrants and embedded derivatives are amortized to interest expense over the life of these
convertible promissory notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Other Expense/ Income</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Other income was approximately $25,000 for
the three months ended July 31, 2012 as compared with other expense of approximately $4,000 in the same period a year ago as a
result of favorable changes in foreign exchange rates relating to transactions with certain vendors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>(Loss) on Note Retirement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the three months ended July 31, 2012,
we recorded a charge to income of approximately $932,000 primarily resulting from the Company entering into exchange agreements
with convertible note holders in which these investors exchanged convertible promissory notes in the aggregate principal amount
of approximately $4.5 million for (i) an aggregate of approximately 52.2 million shares of our common stock and (ii) warrants to
purchase up to approximately 5.8 million shares of our common stock at an exercise price of $0.15. These charges were partially
offset by noncash income resulting from the issuance of 15 million shares in payment of $2.25 million of trade accounts payable
under a stock purchase and the July warrant exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the three months ended July 31, 2011,
the Company recorded a charge to income of approximately $115,000 primarily due to the exchange by an investor of 2007 warrants
that contained anti-dilution provisions, for a larger number of warrants with no anti-dilution provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Changes in Fair Values</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For the three months
ended July 31, 2012, the Company recorded income from changes in the fair value of the warrant liability and embedded derivative
liability of approximately $2.4 million compared with income of approximately $9.1 million in same period a year ago. In the current
period, the Company recorded income of approximately $2.2 million resulting from a decrease in the Black-Scholes value of each
liability warrant primarily due to a decrease in our share price from $0.13, at April 30, 2012 to $0.07, at July 31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the three months ended July 31, 2011,
the Company recorded income from the change in fair value of the common stock warrant liability and embedded derivative liability
of approximately $9.1 million resulting from decreases in the underlying stock price (and therefore decreases in the corresponding
warrant liability and embedded derivative liability).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Potential future increases or decreases
in our stock price will result in increased or decreased warrant and embedded derivative liabilities, respectively, on our balance
sheet and therefore increased or decreased expenses being recognized in our statement of operations in future periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Nine Months Ended July 31, 2012 Compared to Nine Months Ended
July 31, 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Revenue</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We did not record any
revenue for the nine months ended July 31, 2012 and 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Research and Development Expenses</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Research and development expenses were approximately
$5,760,000 for the nine months ended July 31, 2012 as compared with approximately $6,393,000 for the same period a year ago principally
attributable to decreases in clinical trial expenses and related manufacturing costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We anticipate continued overall decrease
in R&amp;D expenses resulting from lower clinical trial costs more than offsetting expanded development efforts primarily related
to new clinical trials and product development. In addition, expenses will be incurred in the development of strategic and other
relationships required to license, manufacture and distribute our product candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>General and Administrative Expenses</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">General and administrative expenses increased
by approximately $715,000 or 20%, to approximately $4,297,000 for the nine months ended July 31, 2012 as compared with approximately
$3,582,000 for the same period a year ago. This was primarily the result of noncash expenses related to the issuance of shares
of our common stock related to the Numado-Socius various agreements entered into in the current period resulting in certain shares
being issued to Socius. These increases were offset by decreases in cash spending for legal and consulting fees in the current
period when compared with the same period a year ago as well as decreases in compensation expense resulting from bonuses paid to
employees in the period a year ago that were not repeated in the current period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Interest Expense</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For the nine months
ended July 31, 2012, interest expense increased to approximately $4,242,000 from approximately $2,721,000 primarily due to the
sale of convertible promissory notes in May, October and December 2011. In addition, the Company recorded interest expense resulting
from the issuance of 4 million shares to JMJ under the above mentioned Settlement Agreement, resulting in noncash expense from
the recognition of a beneficial conversion feature. Additionally, the debt discounts related to the original fair values of both
warrants and embedded derivatives are amortized to interest expense over the life of these convertible promissory notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Other Expense/ Income</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Interest Income was $0 as compared with
approximately $102,000 in the same period a year ago. We record all interest earned on Optimus promissory notes to equity in accordance
with ASC 505 10-45. The Optimus promissory notes are classified in the equity section of the balance sheet as a promissory note
receivable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Other income was approximately $26,000 for
the nine months ended July 31, 2012 as compared with other expense of approximately $49,000 in the same period a year ago as a
result of favorable changes in foreign exchange rates relating to transactions with certain vendors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Gain (Loss) on Note Retirement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the nine months ended July
31, 2012, we recorded a charge to income of approximately $2,173,000 primarily resulting from the Company entering into
exchange agreements with May, October and December 2011 investors in which these investors exchanged convertible promissory
notes in the aggregate principal amount of approximately $4.5 million for (i) an aggregate of approximately 52.2 million
shares of our common stock and (ii) warrants to purchase up to approximately 5.8 million shares of common stock at an
exercise price of $0.15 per share. In addition, the Company recognized noncash expense resulting from the conversion of
promissory notes, by investors, during the nine months ended July 31, 2012. These expenses were partially offset by noncash
income resulting from the issuance of shares to Numoda Corporation, which we refer to as Numoda, under a stock purchase
agreement and the July warrant exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the nine months ended July 31, 2011,
we recorded a charge to income of approximately $109,000 primarily due to the exchange by an investor of 2007 warrants that contained
anti-dilution provisions, for a larger number of warrants with no anti-dilution provisions.. In the period a year ago, we recorded
a gain of approximately $77,000 primarily resulting from repayments of bridge notes in the same period a year ago.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Changes in Fair Values</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For the nine months
ended July 31, 2012, the Company recorded income from changes in the fair value of the warrant liability and embedded derivative
liability of approximately $6.0 million compared with income of approximately $7.1 million in same period a year ago. In the current
period, the Company recorded income of approximately $4.9 million resulting from a decrease in the Black-Scholes value of each
liability warrant due primarily to a decrease in our share price from $0.15, at October 31, 2010 to $0.07, at July 31, 2012. In
addition, there was a decrease in the Black Scholes value of each liability warrant due to a smaller range of share prices used
in the calculation of the BSM Model volatility input.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the nine months ended July 31, 2011,
the Company recorded income from changes in the fair value of the warrant liability and embedded derivative liability of approximately
$7.1 million resulting from a change in fair values of our common stock warrant liability providing a gain of $5.8 million and
a $1.3 million (gain) change in fair value associated with embedded derivative liabilities from the May 2011 Notes ($1.2 million
of the total $1.3 million gain) that were established on May 12, 2011 and revalued on July 31, 2011. The change in fair value for
both derivative instruments resulted from a decrease in our share price during the current quarter of $0.21 on April 30, 2011 ($0.18
on May 12, 2011) compared with $0.1485.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Potential future increases or decreases
in our stock price will result in increased or decreased warrant and embedded derivative liabilities, respectively, on our balance
sheet and therefore increased or decreased expenses being recognized in our statement of operations in future periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Income Tax Benefit</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the nine months ended July 31, 2012,
the income tax benefit was approximately $347,000 due to the receipt of a NOL tax credit from the State of New Jersey tax program
compared to approximately $379,000 in NOL tax credits received from the State of New Jersey tax program in the nine months ended
July 31, 2011.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Fiscal Year 2011 Compared to Fiscal Year 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Revenue</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We recorded no revenue for the fiscal year
ended October 31, 2011 as compared with $508,481 in grant revenue for the same period a year ago resulting from multiple grants
received by the Company to support research related to our <I>LM</I>-LLO based immunotherapies (i.e. &ndash; constructs, delivery).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Research and Development Expenses</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Research and development expenses increased
by approximately $3,175,000 to approximately $8,079,000 for the fiscal year ended October 31, 2011 as compared with approximately
$4,904,000 for the same period a year ago. This is mostly attributable to clinical trial expenses, which increased significantly
in the current fiscal year due to our clinical trial activity in the United States and India, initiated during the first fiscal
quarter of 2010. In addition, overall compensation expense was higher in the current fiscal year resulting from additional employees,
increased stock-based compensation and increases in salaries and bonus. Lastly, research and development expenses increased in
the current fiscal year due to higher general and due diligence costs associated with our intangible assets (patents).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We anticipate a significant increase in
research and development expenses as a result of expanded development and commercialization efforts primarily related to clinical
trials and product development. In addition, expenses will be incurred in the development of strategic and other relationships
required to license manufacture and distribute our product candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>General and Administrative Expenses</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">General and administrative expenses increased
by approximately $1,410,000 or 40%, to approximately $4,940,000 for the fiscal year ended October 31, 2011 as compared with approximately
$3,530,000 for the same period a year ago. This was the result of higher legal, professional and other consulting fees in the current
period as compared with the same period a year ago primarily due to the sale of convertible debt instruments. Overall compensation
expense was also higher in the current fiscal year resulting from bonuses paid to employees. Additionally, office and related expenses
increased in the current fiscal year resulting from the relocation of our operations to Princeton, NJ in April 2011. Lastly, we
recorded non-cash expense related to the issuance of warrants to investors and our chief executive officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Interest Expense</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the fiscal year ended October 31, 2011,
net interest expense increased by approximately $884,000 to approximately $4,699,000 compared to approximately $3,815,000 for the
same period a year ago, primarily due to the sale of convertible promissory notes in May 2011 in addition to bridge notes sold
during the fiscal year ended October 31, 2011. Additionally, the debt discounts related to the original fair values of both warrants
and embedded derivatives are amortized to interest expense over the life of such short-term convertible promissory notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Other Expense / Income</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Interest income decreased to $0 for the
fiscal year ended October 31, 2011 as compared to approximately $80,000 in the same period a year ago. We record all interest earned
on Optimus promissory notes to equity in accordance with ASC 505 10-45. The Optimus promissory notes are classified in the equity
section of the balance sheet as a promissory note receivable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Other expense increased to approximately
$46,000 for the fiscal year ended October 31, 2011 as compared to $0 in the same period a year ago as a result of changes in foreign
exchange rates relating to transactions with certain vendors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Gain on Note Retirement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the fiscal year ended October 31, 2011,
we recorded a charge to income of approximately $462,000 primarily due to the exchange by an investor of 2007 warrants that contained
anti-dilution provisions, for a larger number of warrants with no anti-dilution provisions. In the period a year ago, we recorded
a gain of approximately $124,000 resulting from the elimination of embedded conversion features associated with bridge notes that
were repaid.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Write-off of Intangible Assets</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the fiscal year ended October 31, 2011,
the Company wrote off approximately $33,000 in capitalized patent costs related to four patent applications that had either expired
or been abandoned.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Changes in Fair Values</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The change in fair value of the common stock
warrant liability and embedded derivative liability increased income by approximately $9.8 million for the fiscal year ended October
31, 2011 compared to approximately $446,000 in the same period a year ago. During the current fiscal year, we recorded income as
the fair value of its warrant and embedded derivative liability decreased primarily due to declines in the underlying stock price
(and therefore decreases in the corresponding warrant liability and embedded derivative liability) from share prices as high as
$0.21, at April 30, 2011, to share prices as low as $0.14 at October 31, 2011. In addition, the number of warrants increased in
the current fiscal year, increasing the income recorded due to changes in fair value from decreases in the underlying stock price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the first nine months of the fiscal
year ending October 31, 2010, the Black-Scholes-Merton (BSM) values associated with these warrants and embedded derivatives increased
resulting from the increase in the price of our common stock, from $0.135 at October 31, 2009 to $0.17 at July 31, 2010. However,
from July 31 to October 31, 2010, the number of outstanding warrants increased due to a decrease in their exercise price (resulting
from a &ldquo;ratchet&rdquo; in September 2010). In addition, the BSM values decreased due to a decline in the price of our common
stock, and as a result we recorded some income for the full fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Potential future increases or decreases
in our stock price will result in increased or decreased warrant and embedded derivative liabilities, respectively, on our balance
sheet and therefore increased expenses being recognized in our statement of operations in future periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Income Tax Benefit</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the fiscal year ended October 31, 2011,
the Company recorded an income tax benefit of approximately $379,000 in income, due to the receipt of a NOL tax credit from the
State of New Jersey tax program compared to approximately $279,000 in NOL tax credits received from the State of New Jersey tax
program in the year ended October 31, 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Liquidity and Capital Resources</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Since our inception through July 31, 2012,
the Company has reported accumulated net losses of approximately $45.6 million and recurring negative cash flows from operations.
We anticipate that we will continue to generate significant losses from operations for the foreseeable future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Cash used in operating activities, for the
nine months ended July 31, 2012, was approximately $3.9 million, primarily as a result of the following: increased R&amp;D spending
on clinical trials and higher general and administrative&nbsp;spending.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Cash used in investing activities, for the
nine months ended July 31, 2012, was approximately $351,000 resulting from spending in support of our intangible assets (patents),
costs paid to the University of Pennsylvania for patents and the purchase of equipment for use in research and development activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Cash provided by financing activities,
for the nine months ended July 31, 2012, was approximately $3.2 million, resulting from net proceeds received from the sale
of convertible promissory notes ($2.8 million) and the exercise of warrants of approximately $400,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our limited capital resources and operations
to date have been funded primarily with the proceeds from public and private equity and debt financings, NOL tax sales and income
earned on investments and grants.&nbsp;&nbsp;We have sustained losses from operations in each fiscal year since our inception,
and we expect losses to continue for the indefinite future, due to the substantial investment in research and development.&nbsp;&nbsp;As
of October 31, 2011 and July 31, 2012, we had an accumulated deficit of $35,531,740 and $45,611,368, respectively and shareholders&rsquo;
deficiency of $12,279,713 and $4,999,243, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During May 2011, we sold approximately $7.1
million of convertible promissory notes for a net purchase price of approximately $6.0 million and received cash from warrant exercises
in the amount of approximately $350,000. During October 2011, we sold approximately $2.3 million of convertible promissory notes
for a net purchase price of approximately $2.0 million. This cash was used to reduce overdue payables and finance day to day operations.
During January 2012, we sold approximately $1.2 million of convertible promissory notes for a net purchase price of approximately
$1.0 million. This cash was used to reduce overdue payables and finance day to day operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During May 2012, we closed on the sale of
approximately $1.0 million of convertible promissory notes for a net purchase price of approximately $0.7 million. This cash will
be used to reduce overdue payables and finance day to day operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Effective May 14, 2012, we entered
into exchange agreements with certain holders of an aggregate of approximately $4.5 million of the existing notes originally issued
either on May 12, 2011, October 31, 2011 or January 9, 2012, pursuant to which such holders received (i) an aggregate of approximately
52.2 million shares of our common stock, and (ii) warrants to purchase an aggregate of approximately 5.8 million shares of our
common stock in exchange for (i) surrendering or converting the existing notes and surrendering warrants to purchase an aggregate
of approximately 31.3 million shares of our common stock originally issued in the prior offerings, and (ii) amending the note purchase
agreements between the Company and the holders of the existing notes, dated as of May 9, 2011, October 28, 2011 or December 29,
2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 2, 2012, in a private placement
pursuant to a note purchase agreement, we issued Dr. James Patton, a member of our board of directors, a convertible promissory
note in the principal amount of $66,667 for a purchase price of $50,000. The Patton Note was issued with an original issue discount
of 25%. Dr. Patton paid $0.75 for each $1.00 of principal amount of the Patton Note purchased. The Patton Note is convertible into
shares of our common stock at a per share conversion price equal to $0.15. Additionally, Dr. Patton received a warrant to purchase
such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable upon conversion of
the Patton Note at an exercise price of $0.15 per share. The Patton Note and Patton Warrant also provide that on December 1, 2012,
solely to the extent the conversion price of the Patton Note or the exercise price of the Patton Warrant, as applicable, is less
than the Market Price (as defined in the Patton Note or the Patton Warrant, as applicable), such conversion price or exercise price,
as applicable, shall be reduced to such Market Price. The Patton Note matures on August 2, 2013. We may redeem the Patton Note
under certain circumstances. The Patton Warrant is exercisable at any time on or before August 2, 2017. The Patton Warrant may
be exercised on a cashless basis under certain circumstances. The Patton Note and the Patton Warrant each include a limitation
on conversion or exercise, as applicable, which provides that at no time will Dr. Patton be entitled to convert any portion of
the Patton Note or Patton Warrant to the extent that after such conversion or exercise, as applicable, Dr. Patton (together with
his affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock as of such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 27, 2012, we entered into a settlement
agreement with JMJ Financial pursuant to which we issued to JMJ Financial 4,076,923 shares of our common stock for the mutual release
of any claims held by our company or JMJ Financial relating to our failure to file the registration statement related to the May
2012 issuance of 4,000,000 shares of our common stock to JMJ Financial and have the registration statement declared effective by
certain prescribed deadlines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 27, 2012, in a private placement
pursuant to a note purchase agreement, we issued JMJ Financial a convertible promissory note in the aggregate principal amount
of $100,000 for a purchase price of $100,000. The August 2012 Note is initially convertible at a per share conversion price equal
to $0.15. In addition, if the August 2012 Note is converted after November 30, 2012 and the market price of our common stock is
less than $0.16 per share on the date of conversion, then the conversion price shall equal 95% of the arithmetic average of the
three lowest closing trading prices for the common stock during the 15 trading day period ending on the latest complete trading
day prior to the applicable conversion date. The August 2012 Note matures on August 29, 2013. To the extent JMJ Financial does
not elect to convert the August 2012 Note as described above, the principal amount and interest of such note shall be payable in
cash at maturity. The August 2012 Note may be converted by JMJ Financial, at its option, in whole or in part. The August 2012 Note
includes a limitation on conversion, which provides that at no time will JMJ Financial be entitled to convert any portion of the
August 2012 Note to the extent that after such conversion JMJ Financial (together with its affiliates) would beneficially own
more than 4.99% of the outstanding shares of the common stock as of such date. Pursuant to the terms of the August 2012 Note, we
agreed to register up to 3,250,000 shares of our common stock which may be issuable upon conversion of the August 2012 Note with
the SEC. These shares were registered on August 31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 11, 2012, in a private placement
pursuant to a note purchase agreement, we issued Asher a convertible promissory note in the aggregate principal amount of $103,500,
for a purchase price of $100,000. The Asher Note bears interest at a rate of 8%, which interest accrues, but does not become payable
until maturity or acceleration of the principal of the Asher Note. The Asher Note is convertible into shares of our common stock
at a conversion price equal to 61% of the arithmetic average of the five lowest closing trading prices for the common stock during
the 10 trading day period ending on the latest complete trading day prior to the applicable conversion date. The Asher Note matures
on June 13, 2013, nine months from its issuance date. The Asher Note may be converted by Asher, at its option, in whole or in part.
The Asher Note includes a limitation on conversion, which provides that at no time will Asher be entitled to convert any portion
of the Asher Note to the extent that after such conversion Asher (together with its affiliates) would beneficially own more than
4.99% of the outstanding shares of the common stock as of such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 19, 2012, in a private
placement pursuant to a note purchase agreement, we issued Hanover a convertible promissory note in the aggregate principal
amount of $132,500, for a purchase price of $132,500. On October 19, 2012, in a private placement pursuant to a note purchase
agreement, we issued Hanover a convertible promissory note in the aggregate principal amount of $132,500, for a purchase
price of $132,500. The Hanover PIPE Notes bear interest at a rate of 12%, which interest accrues, but does not become payable
until maturity or acceleration of the principal of such Hanover PIPE Notes. The Hanover PIPE Notes are convertible into
shares of our common stock at a conversion price equal to 65% of the arithmetic average of the five lowest closing trading
prices for the common stock during the 10 trading day period ending on the latest complete trading day prior to the
applicable conversion date. The Hanover PIPE Notes mature eight months from their respective issuance dates. To the extent
Hanover does not elect to convert the Hanover PIPE Notes as described above, the principal amount and interest of such
Hanover PIPE Notes shall be payable in cash at maturity. The Hanover PIPE Notes may be converted at any time by Hanover, at
its option, in whole or in part. The Hanover PIPE Notes include a limitation on conversion, which provides that at no time
will Hanover be entitled to convert any portion of the Hanover PIPE Notes to the extent that after such conversion Hanover
(together with its affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock as of
such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 25, 2012, in a private placement
pursuant to a note purchase agreement, we issued our affiliate Dr. Yvonne Paterson a convertible promissory note in the aggregate
principal amount of $100,000, for a purchase price of $100,000. The Paterson Note bears interest at a rate of 12%, compounded annually.
The Paterson Note is convertible into shares of our common stock at a conversion price equal to the arithmetic average of the five
lowest closing trading prices for the common stock during the 10 trading day period ending on the latest complete trading day prior
to the applicable conversion date. The Paterson Note matures one month from its issuance date. Additionally, Dr. Paterson will
receive a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock
issuable upon conversion of the Patterson Note at an exercise price equal to the conversion price then in effect. These warrants
have not yet been issued. The Paterson Warrant may be exercised on a cashless basis under certain circumstances. The Paterson Note
and the Paterson Warrant each include a limitation on conversion or exercise, as applicable, which provides that at no time will
Dr. Paterson be entitled to convert any portion of the Paterson Note or Paterson Warrant, to the extent that after such conversion
or exercise, as applicable, Dr. Paterson (together with her affiliates) would beneficially own more than 4.99% of the outstanding
shares of the common stock as of such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 27, 2012, in a private placement
pursuant to a note purchase agreement, we issued our employee Christine French a convertible promissory note in the aggregate principal
amount of $25,000, for a purchase price of $25,000. The French Note bears interest at a rate of 12%, compounded annually. The French
Note is convertible into shares of our common stock at a conversion price equal to the arithmetic average of the five lowest closing
trading prices for the common stock during the 10 trading day period ending on the latest complete trading day prior to the applicable
conversion date. The French Note matures one month from its issuance date. Additionally, Ms. French will receive a warrant to purchase
such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable upon conversion of
the French Note at an exercise price equal to the conversion price then in effect. These warrants have not yet been issued. The
French Warrant may be exercised on a cashless basis under certain circumstances. The French Note and the French Warrant each include
a limitation on conversion or exercise, as applicable, which provides that at no time will Ms. French be entitled to convert any
portion of the French Note or French Warrant to the extent that after such conversion or exercise, as applicable, Ms. French (together
with her affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock as of such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In October 2012, pursuant to the
terms of various Assignment Agreements, Magna Group acquired $400,075.88 in aggregate principal amount of our outstanding
convertible notes from certain third parties and entered into agreements to acquire an additional $340,522.90 in aggregate
principal amount of our outstanding convertible notes from other third parties. Pursuant to the terms of such Assignment
Agreements, we delivered two convertible notes to Magna in an aggregate principal amount of $740,598.74, in anticipation of
the closing of all of the transactions contemplated by such Assignment Agreements. On October 25, 2012, the convertible note
in the aggregate principal amount of $617,722.92 previously delivered to Magna was exchanged for a new convertible note in
the aggregate principal amount of $400,075.77, convertible into share of common stock to reflect such portion of the
convertible notes actually issued as of October 25, 2012 pursuant to the Assignment Agreements, and the remaining convertible
note in the aggregate principal amount of $122,875.82 previously delivered to Magna was returned to us and cancelled. The
Magna Exchange Note bears interest at a rate of 6%, which interest accrues, but does not become payable until maturity or
acceleration of the principal of the Magna Exchange Note. The Magna Exchange Note is convertible into shares of our common
stock at a conversion price equal to 73% of the arithmetic average of the five lowest closing trading prices for the common
stock during the 10 trading day period ending on the lowest complete trading day prior to the applicable conversion date. The
Magna Exchange Note matures on October 17, 2013. To the extent Magna does not elect to convert the Magna Exchange Note as
described above, the principal amount and interest of the Magna Exchange Note shall be payable in cash at maturity. Upon the
closing of the remaining transactions contemplated by such applicable Assignment Agreements, we are obligated to
issue additional convertible notes in the form of the Magna Exchange Note with respect to the outstanding $340,522.90 in
aggregate principal amount of convertible notes held by the third party signatories to the other Assignment Agreements, which
we anticipate to occur during the fourth quarter of 2012. The Magna Exchange Note may be converted at any time by Magna, at
its option, in whole or in part. The Magna Exchange Note includes a limitation on conversion, which provides that at no time
will Magna be entitled to convert any portion of the Magna Exchange Note to the extent that after such conversion Magna
(together with its affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock as of
such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Based on our available cash of
approximately $1,000 on November 5, 2012, we do not have adequate cash on hand to cover our anticipated expenses for the next
12 months.&nbsp;&nbsp;If we fail to raise a significant amount of capital, we may need to significantly curtail or cease
operations in the near future.&nbsp;&nbsp;These conditions have caused our auditors to raise substantial doubt about our
ability to continue as a going concern.&nbsp;&nbsp;Consequently, the audit report prepared by our independent public
accounting firm relating to our financial statements for the year ended October 31, 2011 includes a going concern explanatory
paragraph.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our business will require substantial additional
investment that we have not yet secured, and our failure to raise capital and/or pursue partnering opportunities will materially
adversely affect our business, financial condition and results of operations. We expect to spend substantial additional sums on
the continued administration and research and development of proprietary products and technologies, including conducting clinical
trials for our immunotherapies, with no certainty that our immunotherapies will become commercially viable or profitable as a result
of these expenditures.&nbsp;&nbsp;Further, we will not have sufficient resources to develop fully any new immunotherapies or technologies
unless we are able to raise substantial additional financing on acceptable terms or secure funds from new partners. We cannot be
assured that financing will be available at all. Any additional investments or resources required would be approached, to the extent
appropriate in the circumstances, in an incremental fashion to attempt to cause minimal disruption or dilution.&nbsp;&nbsp;Any
additional capital raised through the sale of equity or convertible debt securities will result in dilution to our existing stockholders.&nbsp;&nbsp;However,
no assurances can be given that we will be able to achieve these goals or that we will be able to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are pursuing additional
investments, grants, partnerships as well as collaborations and exploring other financing options, with the objective of minimizing
dilution and disruption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the Series B purchase agreement,
as amended, Optimus has agreed to purchase, upon the terms and subject to the conditions set forth therein and described below,
up to $7.5 million of our newly authorized, non-convertible, redeemable Series B preferred stock at a price of $10,000 per share,
of which $2.84 million of Series B preferred stock remains available for purchase. Under the terms of the Series B purchase agreement,
as amended, we may from time to time until July 19, 2013, present Optimus with a notice to purchase a specified amount of Series
B preferred stock. Subject to satisfaction of certain closing conditions, Optimus is obligated to purchase such shares of Series
B preferred stock on the 10th trading day after the date of the notice. We will determine, in our sole discretion, the timing and
amount of Series B preferred stock to be purchased by Optimus, and may sell such shares in multiple tranches. Optimus will not
be obligated to purchase the Series B preferred stock upon our notice (i) in the event the closing price of our common stock during
the nine trading days following delivery of our notice falls below 75% of the closing price on the trading day prior to the date
such notice is delivered to Optimus or (ii) to the extent such purchase would result in Optimus and its affiliates beneficially
owning more than 9.99% of our outstanding common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of July 31, 2012, we had issued and sold
466 shares of Series B preferred stock to Optimus pursuant to the terms of the Series B purchase agreement, as amended. We received
net proceeds of approximately $4.19 million from this transaction. The aggregate purchase price for the Series B preferred stock
was $4.66 million.&nbsp;&nbsp;As of July 31, 2012, under the terms of the Series B purchase agreement, as amended, Optimus remained
obligated, from time to time until July 19, 2013, to purchase up to an additional 284 shares of Series B preferred stock at a purchase
price of $10,000 per share upon notice from us to Optimus, if certain conditions set forth in the Series B purchase agreement,
as amended, are satisfied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On December 30, 2010, immediately following
the closing of the sale of 72 shares of Series B preferred stock to Optimus pursuant to the terms of the Series B purchase agreement,
we redeemed 226 shares of Series B Preferred Stock held by Optimus for an aggregate redemption price of $3,141,004 consisting of
(i) cash in an amount of $76,622 and (ii) the cancellation of certain promissory notes issued by an affiliate of Optimus to us
in the aggregate amount of $3,064,382. We redeemed the shares of Series B Preferred Stock , at a price per share equal to 136%
of the Liquidation Value (defined as the original price per share plus all accrued dividends thereon) since the redemption was
prior to the first anniversary of the issuance date, as stated in the Series B purchase agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the Series B preferred
equity financing, an affiliate of Optimus was granted on July 19, 2010 a warrant to purchase up to 40,500,000 shares of our common
stock at an exercise price of $0.25 to be adjusted in connection with the draw down of each tranche. As permitted by the terms
of such warrant, the aggregate exercise price of $6,291,000 received by us as of July 31, 2012 is payable pursuant to four year
full recourse promissory notes each bearing interest at the rate of 2% per year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 24, 2009, we entered into a
preferred stock purchase agreement with Optimus, which we refer to as the Series A purchase agreement, pursuant to which Optimus
agreed to purchase, upon the terms and subject to the conditions set forth therein, up to $5.0 million of Series A preferred stock
at a price of $10,000 per share. As of May 13, 2010, all 500 shares of Series A preferred stock were issued and sold to Optimus.
On July 19, 2010, we issued 500 shares of Series B preferred stock to Optimus, which we refer to as the Series B exchange shares,
in exchange for the 500 shares of Series A preferred stock so that all shares of our preferred stock held or subsequently purchased
by Optimus under the Series B purchase agreement, as amended, would be redeemable upon substantially identical terms. In connection
with the Series A preferred equity financing, an affiliate of Optimus was granted on September 24, 2009 a warrant to purchase up
to 33,750,000 shares of our common stock at an exercise price of $0.20 to be adjusted in connection with the draw down of each
tranche. On January 11, 2010, the draw down date of the first tranche, the affiliate of Optimus exercised a portion of the warrant
to purchase 11,563,000 shares of common stock at an adjusted exercise price of $0.17 per share. On March 29, 2010, the draw down
date of the second tranche, the affiliate of Optimus exercised a portion of the warrant to purchase 14,580,000 shares of common
stock at an exercise price of $0.20 per share. On May 13, 2010, the draw down date of the final tranche, the affiliate of Optimus
exercised the remainder of the warrant to purchase 7,607,000 shares of common stock at an adjusted exercise price of $0.18 per
share. In each case, we agreed with Optimus and its affiliate to waive certain terms and conditions in the Series A purchase agreement
and the warrant in order to permit the affiliate of Optimus to exercise the warrant at such adjusted exercise prices prior to the
closing of the purchase of the Series A preferred stock and acquire beneficial ownership of more than 4.99% of our common stock
on the date of each exercise. As permitted by the terms of such warrant, the aggregate exercise prices of $1,965,710, $2,916,000
and $1,369,260 for the first tranche, second tranche and final tranche, respectively, received by us is payable pursuant to three
separate four year full recourse promissory notes each bearing interest at the rate of 2% per year. In addition, in connection
with the draw down of the final tranche, we issued an additional warrant to an affiliate of Optimus to purchase up to 2,818,000
shares of common stock at an exercise price of $0.18 per share, subject to customary anti-dilution adjustments (the exercise price
of which may also be paid at the option of the affiliate of Optimus in cash or by its issuance of a promissory note on the same
terms as the foregoing promissory notes). The foregoing promissory notes are not due or payable at any time that (a) we are in
default of under the Series A preferred stock purchase agreement, any loan agreement or other material agreement or (b) there are
any Series B exchange shares issued or outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On June 18, 2009, we completed the senior
bridge financing. The senior bridge financing was a private placement with certain accredited investors pursuant to which we issued
(i) senior bridge notes in the aggregate principal face amount of $1,131,353, for an aggregate net purchase price of $961,650 and
(ii) senior bridge warrants to purchase 2,404,125 shares of our common stock at an exercise price of $0.20 per share (prior to
giving effect to anti-dilution adjustments which have subsequently reduced the exercise price to $0.15 per share), subject to adjustments
upon the occurrence of certain events. Each of the senior bridge notes were issued with an original issue discount of 15% and were
convertible into shares of our common stock in certain circumstances. The senior bridge notes had an initial maturity date of December
31, 2009. We have agreed to issue additional consideration, including warrants to senior bridge note holders, all of whom agreed
to extend the maturity period beyond December 31, 2009. In August 2011, we issued 768,633 shares of common stock to the last remaining
senior bridge note holder in full satisfaction of his senior bridge note. As of October 31, 2011, no senior bridge notes remained
outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the fiscal year ending October 31, 2011,
we issued to certain accredited investors (i) junior bridge notes in the aggregate principal face amount of approximately $1,887,000
(including note exchanges which resulted in additional interest of approximately $25,000) for an aggregate net purchase price of
approximately $1,670,000 and (ii) warrants to purchase 7,305,790 shares of our common stock (including additional warrants issued
as a result of note exchanges), which we refer to as junior bridge warrants, at original exercise prices ranging from $0.15 to
$0.17 per share, subject to adjustments upon the occurrence of certain events. These junior bridge notes were issued with original
issue discounts ranging from 5% to 18% and are convertible into shares of our common stock. Approximately an aggregate of $184,000
of principal amount of these junior bridge notes matured on or before November 5, 2012 and remain overdue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the fiscal year ending October 31, 2011,
we repaid a total of approximately $530,000 in principal value of junior bridge notes and converted approximately 1.3 million in
principal value of junior bridge notes into approximately 8,652,737 shares of our common stock. At January 31, 2011, approximately
$756,000 in principal value of junior bridge notes remained outstanding and is classified as a current liability on the balance
sheet. The indebtedness represented by these junior bridge notes is expressly subordinate to our currently outstanding senior secured
indebtedness (however, no senior bridge notes are outstanding as of October 31, 2011).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a result of anti-dilution
protection provisions contained in certain of our outstanding warrants, we (i) reduced the exercise price from $0.20 to $0.17
per share in January 2010 and further reduced the exercise price from $0.17 to $0.15 per share in September 2010 with respect
to substantially all the warrants to purchase shares of our common stock and (ii) correspondingly adjusted the amount of
warrant shares issuable such that approximately 11.4 million additional warrant shares are issuable related to the January
2010 repricing and approximately 10.4 million additional warrant shares are issuable related to the September 2010
repricing.&nbsp;&nbsp;In November 2012, we reduced the exercise price from $0.15 per share to $0.03146 per share with
respect to an aggregate of approximately 13  million warrants such that approximately 49 million additional shares of our
common stock are issuable upon exercise of such warrants at $0.03146 per share. As of November 5, 2012, warrants to purchase
62,308,937 shares of our common stock are exercisable at $0.03146 per share and are subject to &ldquo;full ratchet&rdquo;
anti-dilution protection upon certain equity issuances below $0.03146 per share (as may be further adjusted).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 22, 2008 we entered into a
note purchase agreement with our Chief Executive Officer, Thomas A. Moore, pursuant to which we agreed to sell to Mr. Moore, from
time to time, Moore Notes, which we refer to as the Moore Agreement. The Moore Notes have been amended from time to time. During
2010, we agreed to amend the terms of the Moore Notes such that Mr. Moore may elect, at his option, to receive accumulated interest
thereon (of which we paid $130,000 on March 17, 2010) and that we will begin to make installment payments on the outstanding principal
beginning on April 15, 2010 (of which $250,000 was paid during the year ended October 31, 2010); provided, however, that the balance
of the principal will be repaid in full as a result of either (i) consummation of our next equity financing resulting in gross
proceeds to the company of at least $6.0 million or (ii) default by the company as defined under the terms of the Moore Agreement.
Additionally, we agreed to retain $200,000 of the repayment amount for investment in our next equity financing (Mr. Moore exchanged
debt with the principal amount of $200,000 into 1,176,471 shares of our common stock in May 2010).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with a loan made by Mr. Moore
to the company in the amount of $230,000, we agreed to amend and restate the terms of the Moore Notes on March 17, 2011 to increase
the principal amount by $230,000.&nbsp;&nbsp;Under the terms of the amended and restated Moore Notes: (i) the maturity date is
the earlier of (x) the date of consummation of an equity financing by us in an amount of $6.0 million or more and (y) the occurrence
of any event of default as defined in the Moore Notes, (ii) Mr. Moore may elect, at his option, to receive accumulated interest
thereon on or after April 15, 2011 (which amounted to approximately $91,000), (iii) we will make monthly installment payments of
$100,000 on the outstanding principal amount beginning on June 15, 2011, and (iv) we may retain, at the option of Mr. Moore, $200,000
of the repayment amount for investment in our next equity financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mr. Moore acquired a convertible promissory
note in the offering completed in October 2011 in exchange for the cancellation of $400,000 of outstanding indebtedness owed by
us to Mr. Moore under the Moore Notes, and Mr. Moore acquired a convertible promissory note in the offering completed in May 2012,
which we refer to as the May 2012 offering, for a purchase price of $90,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Moore Notes bear interest at a rate
of 12% per annum and may be prepaid in whole or in part at our option without penalty at any time prior to maturity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the nine months ending July 31, 2012,
we paid Mr. Moore $35,000 in principal. As of July 31, 2012, we were not in default under the terms of the Moore Agreement. As
of July 31, 2012, we owed Mr. Moore approximately $238,000 in principal and approximately $158,000 in accrued interest under the
Moore Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We received approximately $379,000 from
selling our 2009 NOL on February 4, 2011. We have received notification from the State of New Jersey that we are eligible to sell
approximately $408,000 in NOLs related to our 2010 fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Off-Balance Sheet Arrangements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of July 31, 2012, we had no off-balance
sheet arrangements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Critical Accounting Estimates</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The preparation of financial statements
in accordance with GAAP accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts
and related disclosures in the financial statements. Management considers an accounting estimate to be critical if:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>It requires assumption to be made that were uncertain at the time the estimate was made, and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Changes in the estimate of difference estimates that could have been selected could have material impact in our results of
operations or financial condition.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Actual results could differ from those estimates
and the differences could be material. The most significant estimates impact the following transactions or account balances: stock
compensation, warrant valuation, impairment of intangibles, dilution caused by ratchets in the warrants and other agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Share-Based Payment.&nbsp;&nbsp;</I>
We record compensation expense associated with stock options in accordance with Financial Accounting Standards Board (&ldquo;FASB&rdquo;)
Accounting Standards Codification (&ldquo;ASC&rdquo;) Topic 718, Stock Compensation (formerly, FASB Statement 123R). We adopted
the modified prospective transition method provided under SFAS No. 123R. Under this transition method, compensation expense associated
with stock options recognized in the first quarter of fiscal year 2007, and in subsequent quarters, includes expense related to
the remaining unvested portion of all stock option awards granted prior to April 1, 2006, the estimated fair value of each option
award granted was determined on the date of grant using the Black-Scholes option valuation model, based on the grant date fair
value estimated in accordance with the original provisions of SFAS No. 123.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We estimate the value of stock options awards
on the date of grant using the Black-Scholes-Merton option-pricing model. The determination of the fair value of the share-based
payment awards on the date of grant is affected by our stock price as well as assumptions regarding a number of complex and subjective
variables. These variables include our expected stock price volatility over the term of the awards, expected term, risk-free interest
rate, expected dividends and expected forfeiture rates. The forfeiture rate is estimated using historical option cancellation information,
adjusted for anticipated changes in expected exercise and employment termination behavior. Our outstanding awards do not contain
market or performance conditions; therefore we have elected to recognize share based employee compensation expense on a straight-line
basis over the requisite service period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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 relative to
new grants may differ significantly from what we have recorded in the current period. There is a high degree of subjectivity involved
when using option-pricing models to estimate share-based compensation under ASC 718. Consequently, there is a risk that our estimates
of the fair values of our share-based compensation awards on the grant dates may bear little resemblance to the actual values realized
upon the exercise, expiration, early termination or forfeiture of those share-based payments in the future. Employee stock options
may expire worthless or otherwise result in zero intrinsic value as compared to the fair values originally estimated on the grant
date and reported in our financial statements. Alternatively, value may be realized from these instruments that are significantly
in excess of the fair values originally estimated on the grant date and reported in our financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Warrants</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Warrants were issued in connection with
the equity financings completed in October 2007, the sale of preferred stock, and our short-term convertible promissory notes issued
from June 2009 through October 2011. At July 31, 2012, we estimated the fair value of the outstanding instruments using the Black-Scholes-Merton
valuation model (BSM Model), which takes into account a variety of factors, including historical stock price volatility, risk-free
interest rates, remaining term and the closing price of our common stock. For those warrants with anti-dilution provisions, we
utilized multiple BSM values in order to estimate fair value. Changes in assumptions used to estimate the fair value of these derivative
instruments could result in a material change in the fair value of the instruments. We believe the assumptions used to estimate
the fair values of the warrants are reasonable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of November 5, 2012, we had outstanding warrants to purchase 149,786,934 shares of our common stock
(adjusted for anti-dilution provisions to date) certain of which have an exercise price of $0.15 per share. These warrants include
25,560,000 warrants owned by Optimus as part of the Series B purchase agreement. As of November 5, 2012, warrants to purchase 62,308,937
shares of our common stock are currently exercisable at $0.03146 per share and are subject to &ldquo;full ratchet&rdquo; anti-dilution
protection upon certain equity issuances below $0.03146 per share (as may be further adjusted).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Embedded Conversion Feature</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Substantially all of our convertible promissory
notes contain embedded conversion features. At July 31, 2012, we estimated the fair value of these embedded conversion features
using the BSM Model, which takes into account a variety of factors, including historical stock price volatility, risk-free interest
rates, remaining term of the notes and closing price of our common stock. These embedded conversion features are recorded as liabilities
on the balance sheet. Changes in assumptions used to estimate the fair value of these derivative instruments could result in a
material change in the fair value of the instruments. We believe that the assumptions used to estimate the fair values of the warrants
are reasonable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>New Accounting Pronouncements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Management does not believe that any other
recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying
financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DESCRIPTION OF BUSINESS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are a development stage biotechnology
company with the intent to develop safe and effective immunotherapies for cancer and infectious diseases. These immunotherapies
are based on a platform technology under exclusive license from Penn that utilizes live attenuated <I>Listeria monocytogenes</I>
bioengineered to secrete antigen/adjuvant fusion proteins. These <I>Lm</I>-LLO strains use a fragment of the protein listeriolysin
(LLO), fused to a tumor associated antigen (TAA) or other antigen of interest. We believe these <I>Lm</I>-LLO agents redirect the
potent immune response to <I>Lm</I> which are inherent in humans, to the TAA or antigen of interest. The immune response to a live,
metabolically competent pathogen is much more complex than the response to a synthetic or organic molecule and may enable a more
comprehensive therapeutic outcome than current treatment modalities. We believe this to be a broadly enabling platform technology
that can be applied to the treatment of many types of cancers and infectious diseases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The discoveries that underlie this innovative
technology are based upon the work of Yvonne Paterson, Ph.D., Professor of Microbiology at Penn. <I>Lm</I>-LLO based immunotherapies
stimulate the immune system to induce antigen-specific anti-tumor immune responses involving both innate and adaptive arms of the
immune system. In addition, this technology facilitates the immune response by altering the microenvironment of tumors to make
them more susceptible to immune attack.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have focused our initial development
efforts on therapeutic immunotherapies targeting HPV-associated diseases: cervical intraepithelial neoplasia, recurrent or refractory
cervical cancer, and head and neck cancer. In addition we have developed immunotherapies for prostate cancer, and HER2 expressing
cancers (such as breast, gastric, bladder, brain, pancreatic and ovarian cancer). Our lead drug candidates in clinical development
are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman,Times,Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; font-weight: bold">Immunotherapy</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 22%; border-bottom: windowtext 1pt solid; font-weight: bold">Indication</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 61%; border-bottom: windowtext 1pt solid; font-weight: bold">Stage&nbsp;of&nbsp;Clinical&nbsp;Development</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>ADXS-HPV</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">Cervical Cancer</TD>
    <TD>&nbsp;</TD>
    <TD><B>Phase 1</B> Company sponsored &amp; completed in 2007 with 15 patients.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">Cervical Intraepithelial Neoplasia</TD>
    <TD>&nbsp;</TD>
    <TD><B>Phase 2</B> Company sponsored study, initiated in March 2010 in the US. The Company completed enrollment of the
    low-dose cohort in September 2011 (41 patients) and in June 2012 (40 patients) in the mid-dose cohort.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">Cervical Cancer</TD>
    <TD>&nbsp;</TD>
    <TD><B>Phase 2</B> Company sponsored study initiated in November 2010 in India in 110 patients with recurrent or refractory
    cervical cancer. The Company completed enrollment (110 patients) in May 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">Cervical Cancer</TD>
    <TD>&nbsp;</TD>
    <TD><B>Phase 2</B> The Gynecologic Oncology Group (GOG) of the National Cancer Institute is conducting a study in 67
    patients     with recurrent or refractory cervical cancer which is currently open to enrollment. As of October 3, 2012, 6 out
    of 67     patients have     been enrolled in the safety run-in phase.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">Head &amp; Neck Cancer</TD>
    <TD>&nbsp;</TD>
    <TD><B>Phase 1</B> The Cancer Research UK (CRUK) is funding a study of 27  patients with head &amp; neck cancer at 3 UK
    sites. As of October 3, 2012, 6  patients have been enrolled.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>ADXS-PSA</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">Prostate Cancer</TD>
    <TD>&nbsp;</TD>
    <TD><B>Phase 1</B> Company sponsored (timing to be determined).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>ADXS-HER2</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">HER2 Expressing Cancer</TD>
    <TD>&nbsp;</TD>
    <TD><B>Phase 1</B> Company sponsored (timing to be determined).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>ADXS-HER2</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">Canine Osteosarcoma</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD><B>Phase 1</B> Company sponsored study, initiated in July 2011 in the US. As of October 3, 2012, 2 dogs have been dosed.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have sustained losses from operations
in each fiscal year since our inception, and we expect these losses to continue for the indefinite future, due to the substantial
investment in research and development.&nbsp;&nbsp;As of October 31, 2011 and July 31, 2012, we had an accumulated deficit of $35,531,740
and $45,611,368, respectively and shareholders&rsquo; deficiency of $12,279,713 and $4,999,243, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To date, we have outsourced many functions
of drug development including manufacturing and clinical trials management. Accordingly, the expenses of these outsourced services
account for a significant amount of our accumulated loss. We cannot predict when, if ever, any of our immunotherapies will become
commercially viable or approved by the FDA. We expect to spend substantial additional sums on the continued administration and
research and development of proprietary products and technologies, including conducting clinical trials for our immunotherapies,
with no certainty that our immunotherapies will become commercially viable or profitable as a result of these expenditures.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Strategy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During the next 24 months, data from two
Phase 2 trials evaluating the safety and efficacy of ADXS-HPV, our first <I>Lm</I>-LLO based immunotherapy, will mature on the
safety and effectiveness of ADXS-HPV in recurrent and refractory cervical cancer and its dysplasic precursor, CIN 2/3. In the U.S.,
we have initiated a randomized, placebo controlled single blind, dose ranging Phase 2 study of ADXS-HPV with three dose cohorts
in patients with CIN 2/3. In India, we have an ongoing randomized Phase 2 study in 110 patients with recurrent or refractory cervical
cancer who have failed previous therapies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In January 2012, we initiated a NCI-supported
study in recurrent or refractory cervical cancer. In the next three months, we will initiate a trial in head and neck cancer study
with CRUK in the United Kingdom, which we refer to as the U.K. We have signed an agreement to collaborate on a clinical trial with
the Gynecologic Oncology Group (GOG), one of NIH&rsquo;s clinical research groups, which will underwrite the cost and whose members
will execute the trial. It is expected that this U.S. Phase 2 multi-center study will result in a cost avoidance benefit to us
valued at between $7 million to $8 million in trial expenses. The CRUK initial study is expected to be worth between $2.5 and 3.5
million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have entered into a clinical trials agreement
with the School of Veterinary Medicine at Penn to investigate the use of ADXS-HER2 for the treatment of osteosarcoma in dogs, a
leading cancer killer of large dogs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have also initiated GMP production of
two new <I>Lm</I>-LLO based immunotherapies for use in clinical trials which will be initiated in 2012 once the regulatory requirements
for the respective INDs have been completed and approved. Planning has begun for Phase 1 trials for ADXS-PSA for the treatment
of prostate cancer, and ADXS-HER2 for the treatment of HER2 expressing cancers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Although we have been successful in obtaining
clinical funding from the U.S. and the U.K., in order to implement our strategy, we will require substantial additional investment
in the near future. Our failure to raise capital or pursue partnering opportunities will materially and adversely affect both our
ability to commence or continue the clinical trials described above and our business, financial condition and results of operations,
and could force us to significantly curtail or cease operations. Further, we will not have sufficient resources to fully develop
any new immunotherapies or technologies unless we are able to raise substantial additional financing on acceptable terms or secure
funds from new partners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Given our expertise in bioengineering live
attenuated <I>Listeria</I> to create immunotherapies for many different diseases, our longer term strategy will be to license the
commercial development of ADXS-HPV for the indications of CIN 2/3, cervical cancer and head and neck cancer. On a global basis,
these indications are extremely large and will require one or more significant partners. We do not intend to engage in commercial
development beyond Phase 2 without entering into one or more partnerships or a license agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We intend to continue to devote a substantial
portion of our resources to basic science and the continued preclinical development and optimization of our platform technology
so as to develop it to its full potential and to find additional new drug candidates. These activities may require significant
financial resources, as well as areas of expertise beyond those readily available. In order to provide additional resources and
capital, we may enter into research, collaborative or commercial partnerships, joint ventures, or other arrangements with competitive
or complementary companies, including major international pharmaceutical companies or universities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Background</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>Cancer</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Cancer is the second largest cause of death
in the U.S., exceeded only by heart disease. The cost of treating cancer patients in 2008 was estimated to be $228.1 billion in
healthcare costs and another $188 billion in indirect costs resulting from morbidity and lost productivity (source: Facts &amp;
Figures 2009, American Cancer Society).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The National Institutes of Health estimated the 2010 overall
annual costs of cancer:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Total cost: $263.8 billion</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Direct medical costs (total of all health
expenditures): $102.8 billion</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Indirect morbidity costs (cost of lost productivity
due to illness): $20.9 billion</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Indirect mortality costs (cost of lost productivity
due to premature death): $140.1 billion</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The American Cancer Society states that
cancer is the second most common cause of death and that 571,950 people in the US will die from cancer in 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>HPV / CIN</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">According to the American Cancer Society,
in the United States, more than 6 million people (men and women) get an HPV infection every year. In fact, at least one-half of
the people who have ever had sex will have HPV at some time in their life. In 2009, the CDC reported that about 45% of women aged
20 to 24 had HPV. The American Cancer Society&rsquo;s estimates for newly diagnosed cervical cancer in the U.S. in 2010 was 12,200
and about 500,000 patients per year are diagnosed with high grade CIN (2-3), the predecessor condition to cervical cancer (source:
Jones HW, Cancer 1995:76:1914-18; Jones BA and Davey, Arch Pathol Lab Med 2000; 124:672-81).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Prostate Cancer</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">According to the American Cancer Society,
prostate cancer is the most common type of cancer found in American men, other than skin cancer. Prostate cancer is the second
leading cause of cancer death in men, behind only lung cancer. One man in six will get prostate cancer during his lifetime, and
one man in 36 will die of this disease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>HER2 Expressing Cancers</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">HER2 (human epidermal growth factor receptor
2) is a gene which is over expressed in a percentage of certain types of cancers such as breast, gastric, bladder, pancreatic,
brain, and ovarian. The American Cancer Society estimates that in 2011 in the US there will be 230,480 diagnoses of invasive breast
cancer, 21,520 new cases of stomach cancer, 69,250 new cases of bladder cancer, 44,030 new cases of pancreatic cancer, 22,340 new
cases of brain/spinal cord cancer, and 21,900 new cases of ovarian cancer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Canine Osteosarcoma</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">According the University of Pennsylvania
School of Veterinary Medicine, canine osteosarcoma (bone cancer) is most commonly seen in large breed dogs. It is an aggressive
cancer with a poor prognosis. Despite chemotherapy and limb amputation, dogs will most likely succumb to the illness within one
year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>Immune System and Normal Antigen Processing</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">People are continually confronted with potentially
infectious agents.&nbsp;&nbsp;The immune system has evolved multiple mechanisms to fight disease, including innate immunity, two
forms of adaptive immunity-humoral (antibody) and cellular immunity that mobilize the body&rsquo;s natural defenses against these
foreign agents to eliminate them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>Innate Immunity:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Innate immunity is the first step in the
recognition of a foreign antigen.&nbsp;&nbsp;It is a non-specific protective response that also underlies the generation of an
adaptive (antigen- specific) immune responses. It is characterized by the release of various soluble mediators of immune response
such as cytokines, chemokines and other molecules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>Exogenous pathway of Adaptive Immunity (Class II
pathway):</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Proteins and foreign molecules ingested
by Antigen Presenting Cells, or APCs, are broken down inside digestive vacuoles into small pieces, and the pieces are combined
with proteins called Class 2 MHC (for Major Histocompatibility Complex) in a part of the cell called the endoplasmic reticulum.&nbsp;&nbsp;The
MHC-peptide, termed and MHC-2 complex from the Class 2 (or exogenous) pathway, migrates to the cell surface where it interacts
with certain classes of lymphocytes (CD4+) called helper T-cells that support the function of cytotoxic T-lymphocytes (killer T
cells).&nbsp;&nbsp;This interaction renders CD4+ cells antigen specific, and they express their function whenever they encounter
the antigen to which they&rsquo;ve been activated.&nbsp;&nbsp;This system is called the exogenous pathway, since it is the prototypical
response to an antigen from outside of the cell, like bacteria.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>Endogenous pathway of Adaptive Immunity (Class
I pathway):</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The endogenous pathway provides immune protection
against antigens created within the cytoplasm of the APC (as opposed to exogenous molecules contained within the digestive phagosome).&nbsp;&nbsp;These
intracellular antigens are typically broken down within the cell and directed to the endoplasmic reticulum, where they are incorporated
into an MHC-1 protein and trafficked to the cell surface.&nbsp;&nbsp;MHC-1 complexes activate CD8+ cytotoxic T-lymphocytes, which
then kill cells that express the specific antigen to which these cells are now activated.&nbsp;&nbsp;The endogenous pathway is
needed for elimination of virus-infected or cancerous cells.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Listeria</I> generated adaptive immune
responses are directed at the activation of T cells.&nbsp;&nbsp; <I>Listeria</I> tends not to stimulate antibody formation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Listeria</I> based vaccines are unique
for many reasons, one of which is that unlike viral vectors, DNA or peptide antigens or other vaccines, <I>Listeria</I> stimulates
all of the above mechanisms of immune action. We use a live attenuated bioengineered <I>Listeria</I> that secrets an antigen-adjuvant
fusion protein that stimulates the body&rsquo;s own immune system to target cancer and infectious diseases. Our technology allows
the body to recognize tumor-associated antigens or antigens of interest as foreign, thus creating the immune response needed to
attack the cancer or infectious disease. It does this by utilizing a number of biological characteristics of the <I>Listeria</I>
bacteria and the Advaxis proprietary antigen-adjuvant fusion protein technology to stimulate multiple therapeutic immune mechanisms
simultaneously in an integrated and coordinated manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>Mechanism of Action</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Wild type <I>Listeria</I> is a common environmental
microbe that is found in the soil, on leafy vegetables, and in meat and dairy products. People are constantly exposed to it and
most people are unaware of that fact that they have ingested <I>Listeria</I>. However, wild type <I>Listeria</I> causes nearly
1,600 reported illnesses each year in the US, typically as a result of contaminated food and results in more than 1,400 hospitalizations
and 250 deaths. <I>Listerial</I> infections frequently present as severe, persistent flu-like symptoms and if detected early, can
be easily treated with many common antibiotics. Severe infections are rare and if not detected early are usually not diagnosed
until <I>Listeria</I> can be cultured from the cerebrospinal fluid, at which time it is very difficult to treat. Advaxis has bioengineered
strains of <I>Listeria monocytogenes</I> for use as vectors for immunotherapy. These vectors are highly attenuated, making them
much less pathogenic than wild type <I>Listeria</I>. Advaxis <I>Lm</I>-LLO based immunotherapies are between 10,000 and 100,000
times less pathogenic than wild type <I>Listeria</I> .</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Live <I>Listeria</I> is a strong stimulator
of both the innate and adaptive arms of the immune system. The innate immune response can primarily be attributed to pattern recognition
receptors on immune cells recognizing patterns on the bacterium, leading to a rapid, non-specific activation of the immune system.
This response itself provides a basic level of immune protection, but at the same time serves to prime the adaptive arm of the
immune system to respond in an antigen specific manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Antigen presenting cells (APCs) are phagocytic
sentinel cells that circulate through the body taking up and breaking down foreign and dying cells. The breakdown of the antigens
that APCs take up result in peptide fragments that are presented on the surface of the APC to activate CD4+ and CD8+ T cells to
target specific cells that express these antigens. APCs actively and rapidly phagocytose <I>Listeria</I>, so in effect Advaxis
<I>Lm</I>-LLO based immunotherapies are specifically targeted to the cells that will lead to a strong adaptive immune response.
As <I>Listeria</I> is taken up by the APCs, it enters a cellular compartment called the phagolysosome, where enzymes kill and degrade
the majority of the bacteria. A small percentage (5-10%), escape from this compartment and enter the cytoplasm of the cell, where
they produce the LLO-antigen fusion protein that they have been bioengineered to express.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The specific details of the intracellular
life cycle of <I>Listeria</I> are important for the understanding of the Advaxis platform technology. In order to escape from the
phagolysosome of the APC, <I>Listeria</I> produces a protein called listeriolysin O (LLO), which forms pores in the membrane of
the phagolysosome allowing <I>Listeria</I> to escape into the cytosol. Once in the cytoplasm the bacterium ceases to secrete LLO,
which protects the cell wall and the host cell. It is at this stage however that the fusion LLO-antigen protein is produced and
secreted by <I>Listeria</I>. This version of LLO does not form pores and harm the cell as it is truncated and engineered to be
targeted to the cellular degredative machinery, leading to peptides that can be presented to T cells on the surface of the APC.
Due to the attenuation of the <I>Listeria</I> strains used in Advaxis immunotherapies, the <I>Listeria</I> do not replicate and
spread from cell to cell at this point, limiting the potential for listeriosis from our immunotherapies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Listeria</I> and/or <I>Lm</I>-LLO fusion
proteins stimulate many complimentary immune mechanisms of action:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman,Times,Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 29pt"><FONT STYLE="font-size: 10pt">1.</FONT></TD><TD><FONT STYLE="font-size: 10pt">Strong innate immune effects.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt"><FONT STYLE="font-size: 10pt">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Lm</I> -LLO vaccines are cleared in SCID and IFN-</FONT><FONT STYLE="font-family: Symbol">g </FONT><FONT STYLE="font-size: 10pt">knockout
mice</FONT>.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman,Times,Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 29pt"><FONT STYLE="font-size: 10pt">2.</FONT></TD><TD><FONT STYLE="font-size: 10pt">Strong adaptive immune effects.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;High
titers of activated CD4+T cells, CD8+T cells, APCs, and TILs.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,Times,Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 29pt">3.</TD><TD>A brief exposure to the antigen results in normal memory generation.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt">a. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Antibiotics
immediately after dosing do not impair long term responses.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,Times,Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 29pt"><FONT STYLE="font-size: 10pt">4.</FONT></TD><TD><FONT STYLE="font-size: 10pt">Alters the tumor microenvironment</FONT>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reduces
both Tregs and MDSCs in tumors but not in other tissues or systemically.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,Times,Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 29pt"><FONT STYLE="font-size: 10pt">5.</FONT></TD><TD><FONT STYLE="font-size: 10pt">Induces cytokine and chemokine secretion from non-infected cells adjacent to infected cells.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,Times,Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 29pt">6.</TD><TD>Synthesis of new immune cells and maturation of existing cells.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 81pt; text-indent: -0.25in">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marrow, tissue, and blood
borne effects.	</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,Times,Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 29pt"><FONT STYLE="font-size: 10pt">7.</FONT></TD><TD><FONT STYLE="font-size: 10pt">Chemotaxis and extravasation of activated immune cells.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chemokine
mediated effects and effects directly on vascular endothelium increase TIL.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,Times,Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 29pt"><FONT STYLE="font-size: 10pt">8.</FONT></TD><TD><FONT STYLE="font-size: 10pt">Upregulation of tumor chemokines and chemokines receptors.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CXCL8,
CXCL9, CXCL10, CXCR3 on T cells in TDLN.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,Times,Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 29pt"><FONT STYLE="font-size: 10pt">9.</FONT></TD><TD><FONT STYLE="font-size: 10pt">Epitope and antigen spreading</FONT>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vaccines
directed against one antigen result in immune activation against other antigens.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,Times,Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 29pt"><FONT STYLE="font-size: 10pt">10.</FONT></TD><TD><FONT STYLE="font-size: 10pt">Predominantly a cellular immune response.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Little
antibody
 formation so Listeria is not neutralized by humoral immunity. This is a
 useful property for cellular immune vaccines because
it allows for follow-up dosing.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt"><img src="tlogo.jpg"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Figure 1: Live attenuated bioengineered
<I>LM</I> (<I>Lm</I>-LLO) being phagocytosed by an APC leading to the stimulation of CD4+ and CD8+ T cells.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Research and Development Program</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>Overview</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We use live attenuated bioengineered <I>Listeria</I>
monocytogenes as a therapeutic agent. We start with a live, attenuated strain of <I>Listeria</I>, and then add to this bacterium
multiple copies of a plasmid that encodes a fusion protein sequence that includes a fragment of the LLO molecule joined to the
tumor associated antigen or antigen of interest. This fusion protein is secreted by the <I>Listeria</I> inside the antigen presenting
cells, and other cells that <I>Listeria</I> infects which then results in the immune response as discussed above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We can fuse different antigens of interest
(specific to tumors or for infectious disease), to LLO making this a versatile platform technology. Our first <I>Lm</I> -LLO based
immunotherapy, ADXS-HPV, uses an antigen that is present in HPV. HPV induced disease include CIN, cervical cancer, anal cancer,
vulvar cancer, penile cancer, head and neck cancer, and others. ADXS-PSA is directed against PSA, an important antigen in prostate
cancer. ADXS-cHER2 that uses Advaxis proprietary chimeric HER2 antigen is directed to HER2, an antigen found in HER2 expressing
cancers such as breast, gastric, bladder, pancreatic, CNS, and ovarian cancer. By varying the antigen, we create different therapeutic
agents that induce an immune response that should be useful in treating multiple disease states.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Collaborations, Partnerships and Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>University of Pennsylvania</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 1, 2002 we entered into a 20-year
exclusive worldwide license agreement with Penn with respect to the innovative work of Yvonne Paterson, Ph.D., Professor of Microbiology
in the area of innate immunity, or the immune response attributed to immune cells, including dendritic cells, macrophages and natural
killer cells, that respond to pathogens non-specifically.&nbsp;&nbsp;This agreement has been amended from time to time and was
amended and restated as of February 13, 2007.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This license, unless sooner terminated in
accordance with its terms, terminates upon the later (a) expiration of the last to expire Penn patent rights; or (b) twenty years
after the effective date of the license. The license provides us with the exclusive commercial rights to the patent portfolio developed
at Penn as of the effective date of the license, in connection with Dr. Paterson and requires us to raise capital and pay various
milestone, legal, filing and licensing payments to commercialize the technology. In exchange for the license, Penn received shares
of our common stock which currently represents approximately 0.2% of our common stock outstanding on a fully-diluted basis. In
addition, Penn is entitled to receive a non-refundable initial license fee, license fees, royalty payments and milestone payments
based on net sales and percentages of sublicense fees and certain commercial milestones. Under the licensing agreement, Penn is
entitled to receive 1.5% royalties on net sales in all countries. Notwithstanding these royalty rates, we have agreed to pay Penn
a total of $525,000 over a three-year period as an advance minimum royalty after the first commercial sale of a product under each
license (which we are not expecting to begin paying within the next five years). In addition, under the license, we are obligated
to pay an annual maintenance fee of $100,000 on December 31, 2010, 2011 and 2012 and each December 31st thereafter for the remainder
of the term of the agreement until the first commercial sale of a Penn licensed product. Overall the amended and restated agreement
payment terms reflect lower near term requirements but the savings are offset by higher long term milestone payments for the initiation
of a Phase 3 clinical trial and the regulatory approval for the first Penn licensed product. We are responsible for filing new
patents and maintaining and defending the existing patents licensed to use and we are obligated to reimburse Penn for all attorneys
fees, expenses, official fees and other charges incurred in the preparation, prosecution and maintenance of the patents licensed
from Penn.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Furthermore, upon the achievement of the
first sale of a product in certain fields, Penn will be entitled to certain milestone payments, as follows: $2.5 million will be
due for first commercial sale of the first product in the cancer field.&nbsp;&nbsp;In addition, $1.0 million will be due upon the
date of first commercial sale of a product in each of the secondary strategic fields sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a result of our payment obligations under
the license, assuming we have net sales in the aggregate amount of $100.0 million from our cancer products, our total payments
to Penn over the next ten years could reach an aggregate of $5.4 million.&nbsp;&nbsp;If over the next 10 years our net sales total
an aggregate amount of only $10.0 million from our cancer products, total payments to Penn could be $4.4 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to Amendment No. 1 to the Penn
license agreement, which we entered into on March 26, 2007 with Penn the list of list of intellectual property licensed to us was
amended to include Penn docket R3702, The Construction of L. Monocytogenes Strains that Express and Secrete HER-2neu Fragments
and the Efficacy of such Strains in Inducing a CTL Response and Controlling Tumor Growth in Vivo. Amendment No. 1 also required
us to pay to Penn an option exercise fee of $10,000 and to pay for all historically accrued patent and licensing expenses incurred
by Penn before the effective date of Amendment No. 1, totaling approximately $33,800 as of March 22, 2007. The Penn license agreement,
as amended, terminates upon the expiration of the last to expire or become abandoned of the patent rights licensed thereunder;
provided, that Penn may earlier terminate the Penn license agreement upon the occurrence of certain defaults by us, including,
but not limited to, a material breach by us of the Penn license agreement that is not cured within 60 days after notice of the
breach is provided to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 10, 2010, we entered into a
second amendment to the Penn license agreement pursuant to which we acquired exclusive licenses for an additional 27 patent
applications related to our proprietary Listeria vaccine technology.&nbsp;&nbsp;As per the terms of the second amendment, we
acknowledged that we owed Penn approximately $249,000 in patent expenses and $130,000 in sponsored research agreement fees;
such fees being paid prior to October 31, 2010. As part of this amendment we exercised our option for the rights to seven
additional patent dockets, including 23 additional patent applications, for (i) an option exercise fee payable in the form of
$35,000 in cash and $70,000 in our common stock (approximately 388,889 shares of our common stock based on a price of $0.18
per share) and (ii) the assumption of certain historical costs of approximately $462,000 associated with the 23 additional
patent applications acquired under the second amendment.&nbsp;&nbsp;As of November 5, 2012, approximately $138,000 of these
historical costs remained outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On December 12, 2011, we entered into a
third amendment to the Penn license agreement pursuant to which we acquired an exclusive worldwide license agreement for additional
patent applications from the laboratory of Dr. Yvonne Paterson. One application pertains to the antigen ISG15 from Penn for use
in our <I>Lm</I> -LLO based immunotherapies for the treatment of cancer and other diseases. This intellectual property resulted
from work performed in the laboratory of Dr. Yvonne Paterson that demonstrated ISG15 was an effective immunological target for
the treatment of a number of different cancers in animal models, including ovarian, colon, breast and other cancers. SG-15 expression
is elevated in &ldquo;triple negative&rdquo; breast cancer, a disease in which HER2, estrogen and progesterone receptors are lacking,
and thus has no defined therapeutic immune target at the moment. An <I>Lm</I>-LLO vaccine that targets ISG-15 may prove to be an
effective agent in an area where there is a significant unmet medical need.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Strategically we intend to maintain our
relationship with Dr. Paterson and Penn to generate new intellectual property and to exploit all existing intellectual property
covered by the license.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Penn is not involved in the management of
our company or in our decisions with respect to exploitation of the patent portfolio.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Dr. Yvonne Paterson</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Dr. Paterson is a Professor in the Department
of Microbiology at Penn and the inventor of our licensed technology.&nbsp;&nbsp;She is a fellow of the American Academy for the
Advancement of Science, and has been an invited speaker at national and international health field conferences and leading academic
institutions.&nbsp;&nbsp;She has served on many federal advisory boards, such as the NIH expert panel to review primate centers,
the Office of AIDS Research Planning Fiscal Workshop, and the Allergy and Immunology NIH Study Section.&nbsp;&nbsp;She has written
over one hundred publications in immunology with emphasis during the last several years on the areas of HIV, AIDS and cancer research.&nbsp;&nbsp;She
has trained over forty post-doctoral and doctoral students in the fields of Biochemistry and Immunology.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Consulting Agreement</I>.&nbsp;&nbsp;On
January 28, 2005 we entered into a consulting agreement with Dr. Paterson, which expired on January 31, 2009.&nbsp;&nbsp;Dr. Paterson
has advised us on an exclusive basis on various issues related to our technology, manufacturing issues, establishing our lab, knowledge
transfer, and our long-term research and development program.&nbsp;&nbsp;Pursuant to the expired agreement, Dr. Paterson received
$7,000 per month.&nbsp;&nbsp;Upon the closing of an additional $9.0 million in equity capital, Dr. Paterson&rsquo;s rates would
have increased to $9,000 per month.&nbsp;&nbsp;Also, under the prior Agreement, on February 1, 2005, she received options to purchase
400,000 shares of our common stock at an exercise price of $0.287 per share which are now fully vested.&nbsp;&nbsp;In November
2011, we granted Dr. Patterson options to purchase 600,000 shares of our common stock at an exercise price of $0.148 per share.
In total she holds 704,365 shares of our common stock and options to purchase 1,169,048 shares of our common stock, of which options
569,048 are fully vested. We are currently negotiating a follow-on consulting agreement with Penn and Dr. Paterson.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Cancer Research UK</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On February 9, 2010, we announced that Cancer
Research UK (CRUK), the UK organization dedicated to cancer research, has agreed to fund the cost of a clinical trial to investigate
the use of ADXS-HPV, our Lm-LLO based immunotherapy targeted to HPV, for the treatment of head and neck cancer. This Phase 1/2
clinical trial will investigate the safety and efficacy of ADXS-HPV in 45 head and neck cancer patients who have previously failed
treatment with surgery, radiotherapy and chemotherapy &ndash; alone or in combination. We will provide the study drug, with all
other associated costs to be funded by CRUK. The study is to be conducted at 3 sites in the UK (Aintree Hospital at the University
of Liverpool, The Royal Marsden Hospital in London, and Cardiff Hospital at the University of Wales).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>National Cancer Institute Gynecologic
Oncology Group</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On December 15, 2009, we announced that
GOG will conduct a multicenter, Phase 2 clinical trial of ADXS-HPV, our <I>Lm</I>-LLO based immunotherapy targeted to HPV, in 67
patients with recurrent or refractory cervical cancer who have failed prior cytotoxic therapy. This Phase 2 trial is underwritten
by GOG and will be conducted by GOG investigators. This patient population is similar to the patient population that in the cervical
cancer study being conducted in India as well as the patients in the Phase I trial of ADXS-HPV. Under this Clinical Trial Services
Agreement, dated December 13, 2009, we are responsible for covering the costs of translational research and have agreed to pay
a total of $8,003 per patient, with the majority of the costs of this study underwritten by NCI. This agreement shall continue
in force until we receive completed case histories for all participants in the clinical trial and questions about data submitted
have been resolved, unless terminated earlier upon the occurrence of certain events, including, but not limited to, the FDA imposing
a permanent hold on the drug which is subject to the clinical trial, a material breach by us of the agreement that is not cured
within a reasonable time period after notice of the breach is provided to us, or sixty days prior written notice by either party
for any reason.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>National Cancer Institute Vaccine Section</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On November 1, 2010 we entered into a Cooperative
Research and Development Agreement (CRADA) with the Vaccine Section of National Cancer Institute for the development of live attenuated
<I>Listeria</I> vaccines for the treatment of cancer. We will provide all live <I>Listeria</I> vaccines. NCI will use different
in vitro and in vivo models to elucidate the effect of our live attenuated <I>Listeria</I> vaccines on many different types of
immune cells, and will investigate the mechanisms by which live <I>Listeria</I> vaccines reduce cancer induced immune inhibition
that protects tumors from immune attack. We and NCI will use the results of this work to enhance the anti-tumor effects of live
<I>Listeria</I> vaccines as therapeutic agents for the treatment of cancer and as therapeutic immune adjuvants that alter the tumor
milieu which will enable them to be used with other modalities of cancer treatment. We have paid a total of $150,000 pursuant to
this three year CRADA. The first patient was dosed on January 9, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>University of British Columbia</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We entered into a structured
collaboration with the laboratory of Dr. Tobias Kollmann at the University of British Columbia to develop live attenuated <I>Listeria</I>
vaccines for the treatment of infectious disease and to develop new dosage forms of <I>Listeria</I> vaccines. The same
immune-stimulating properties that we have under development to develop live <I>Listeria</I> vaccines as safe and effective
therapies for the treatment of cancer, also may have application for the treatment of infectious disease. Dr. Kollmann is an
immunologist and neonatal vaccinologist who has published extensively on the use of <I>Listeria</I> vaccines as potential
therapeutic agents for the treatment of childhood diseases. Under the terms of this collaboration, Dr. Kollmann will use our
proprietary <I>Listeria</I> vaccine vectors for the development of novel infectious disease applications. From inception
through November 5, 2012, we have paid approximately $110,000 pursuant to this collaboration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>School of Veterinary Medicine at Penn</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have entered into a clinical trial agreement
with the School of Veterinary Medicine at Penn to investigate the use of ADXS-HER2 for the treatment of osteosarcoma in dogs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Recipharm Cobra Biologics Limited (formerly
Cobra Biomanufacturing PLC)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In July 2003, we entered into an agreement
with Cobra Biomanufacturing PLC, which has recently been purchased by Recipharm AB,&nbsp;&nbsp;for the purpose of manufacturing
our cervical cancer vaccine ADXS-HPV.&nbsp;&nbsp;Recipharm Cobra has extensive experience in manufacturing gene therapy products
for investigational studies.&nbsp;&nbsp;Recipharm Cobra is a manufacturing organization that manufactures and supplies biologic
therapeutics for the pharmaceutical and biotech industry.&nbsp;&nbsp;These services include the Good Manufacturing Practices, or
GMP, manufacturing of DNA, recombinant protein, viruses, mammalian cell products and cell banking.&nbsp;&nbsp;Recipharm Cobra&rsquo;s
manufacturing plan for us involves several manufacturing stages, including process development, manufacturing of non-GMP material
for toxicology studies and manufacturing of GMP material for the Phase 1 trial.&nbsp;&nbsp;The agreement to manufacture expired
in December 2005 upon the delivery and completion of stability testing of the GMP material for the Phase 1 trial.&nbsp;&nbsp;Recipharm
Cobra has agreed to surrender the right to $300,000 of its outstanding fees for manufacturing in exchange for future royalties
from the sales of ADXS-HPV at the rate of 1.5% of net sales, with royalty payments not to exceed $2.0 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On October 20, 2007, we entered into a production
agreement with Recipharm Cobra to manufacture our Phase 2 clinical materials using a new methodology now required by the U.K.,
and likely to be required by other regulatory bodies in the future.&nbsp;&nbsp;Currently we have two agreements with Recipharm
Cobra; one to conduct ongoing stability testing of the ADXS-HPV vaccine which they have manufactured, and another to provide analytic
services and certification necessary to import ADXS-HPV for use in the U.K. head and neck study mentioned above.&nbsp;&nbsp;From
inception through November 5, 2012, we have paid Recipharm Cobra approximately $1.6 million under all agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Vibalogics GmbH</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In April of 2008, we entered into a series
of agreements with Vibalogics GmbH in Cuxhaven Germany to provide fill and finish services for our final clinical materials that
were made for the scheduled clinical trials described above.&nbsp;&nbsp;These agreements cover the fill and finish operations as
well as specific tests that have to be performed in order to release the clinical materials for human use.&nbsp;&nbsp;We have recently
entered into agreements with Vibalogics to produce two new vaccines, ADXS-PSA and ADXS-HER2 for human use and clinical development.&nbsp;&nbsp;As
of November 5, 2012, approximately $401,000 in invoices from Vibalogics GmbH remain outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Numoda Corporation</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On June 19, 2009, we entered into a Master
Agreement and on July 8, 2009 we entered into a Project Agreement with Numoda, a leading clinical trial and logistics management
company, to oversee Phase 2 clinical activity with ADXS-HPV for the multicenter Phase 2 U.S. trial of ADXS-HPV in CIN and to act
as our U.S. CRO for the multicenter Phase 2 study of ADXS-HPV in recurrent and refractory cervical cancer being conducted in India.
The scope of this agreement covers over three years and is estimated to cost approximately $12.2 million for both trials. In May
2010, we issued 3,500,000 shares of common stock to Numoda Capital at a price per share of $0.17 in satisfaction of $350,000 of
services rendered to us by the Numoda Corporation. As of November 5, 2012, we have paid Numoda approximately $7.4 million for
clinical trial activities. The Master Agreement with Numoda terminates on June 12, 2012, or earlier upon the occurrence of certain
defaults by us, including, but not limited to, a material breach by us of the Master Agreement that is not cured within 30 days
after notice of the breach is provided to us. The Project Agreement with Numoda shall continue until the project which is the subject
of such agreement is completed, unless earlier terminated in accordance with the Master Agreement with Numoda.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On June 13, 2012, we entered into
a stock purchase agreement with Numoda, pursuant to which we issued to Numoda 15 million shares of our common stock, which
we refer to as the AR Cancellation Shares, at a purchase price per share of $0.15, in exchange for the immediate cancellation
of $2,250,000 of accounts receivables owed by us to Numoda pursuant to the Master Agreement, dated June 19, 2009, between
Numoda and us. Numoda has agreed not to sell the AR Cancellation Shares until July 3, 2012, twenty calendar days from the
closing of the transaction on June 13, 2012, which period we refer to as the Lock-Up Period. During the Lock-Up Period, we
have the option, in our sole discretion, to redeem up to 100% of the AR Cancellation Shares at a purchase price per share of
$0.15. In connection with such issuance, we have also agreed to register the resale by Numoda of the AR Cancellation Shares
with the SEC within thirty business days from the closing of the transaction on June 13, 2012. We fulfilled this obligation
by filing a registration statement on Form S-1 (File No. 333-183690) with the SEC on August
31, 2012, which was declared effective by the SEC on September 13, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Pharm-Olam International Ltd.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In April 2005, we entered into a consulting
agreement with Pharm-Olam International Ltd., which we refer to as POI, whereby POI is to execute and manage our Phase 1 clinical
trial in ADXS-HPV for a fee of $430,000 plus reimbursement of certain expenses.&nbsp;&nbsp;As of November 5, 2012 we have an
outstanding balance due to POI of $223,620.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Wistar Institute</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are collaborating with the Wistar Institute
to explore the potential of FAP as a target for immune attack and as the basis for the development of an Advaxis immunotherapy.
Therapeutically targeting FAP (fibroblast activation protein) might significantly reduce tumor growth, as it has in some mouse
studies. There is no financial obligation in our collaboration with the Wistar Institute.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Montefiore Medical Center</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are collaborating with the Albert Einstein
College of Medicine and Montefiore Medical Center to develop the ADXS-PSA immunotherapy for the treatment of prostate cancer. The
goal of the collaboration is to investigate how ADXS-PSA can be combined with conventional chemo-radiation therapy to treat solid
tumors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Patents and Licenses</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Dr. Paterson and Penn have invested significant
resources and time in developing a broad base of intellectual property around the cancer vaccine platform technology for which
on July 1, 2002 we entered into a 20-year exclusive worldwide license and a right to grant sublicenses pursuant to our license
agreement with Penn.&nbsp;&nbsp;As of November 5, 2012, Penn has 39 issued and 39 pending patents in the U.S. and other large
countries including Japan, and the European Union, through the Patent Cooperation Treaty system pursuant to which we have an exclusive
license to exploit the patents.&nbsp;&nbsp;On May 10, 2010, we entered into a second amendment to the 20-year exclusive worldwide
license agreement with Penn, which we refer to as the Second Amendment Agreement. Pursuant to the Second Amendment Agreement, we
acquired exclusive licenses for additional patent applications related to our proprietary <I>Listeria</I> vaccine technology that
were not included in the initial agreement.&nbsp;&nbsp;As of November 5, 2012, we owe Penn approximately $138,000 in patent
expenses pursuant to the Second Amendment Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On December 12, 2011, we entered into a
third amendment to the Penn license agreement pursuant to which we acquired an exclusive worldwide license agreement for additional
patent applications from the laboratory of Dr. Yvonne Paterson. One application pertains to the antigen ISG15 from Penn for use
in our <I>Lm</I> -LLO based immunotherapies for the treatment of cancer and other diseases. This intellectual property resulted
from work performed in the laboratory of Dr. Yvonne Paterson that demonstrated ISG15 was an effective immunological target for
the treatment of a number of different cancers in animal models, including ovarian, colon, breast and other cancers. SG-15 expression
is elevated in &ldquo;triple negative&rdquo; breast cancer, a disease in which HER2, estrogen and progesterone receptors are lacking,
and thus has no defined therapeutic immune target at the moment. An <I>Lm</I>-LLO vaccine that targets ISG-15 may prove to be an
effective agent in an area where there is a significant unmet medical need.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Another patent application which we licensed
on November 15, 2011 is a collaborative provisional application between the laboratories of Dr. Paterson and Dr. Don Harn at the
University of Georgia. In this work, <I>Lm</I>-LLO immunotherapies were found in a number of animal models to have the unusual
ability to induce therapeutic Th-1 immune responses, which are the type of response that is desirable when treating cancer, in
animals that were previously unable to mount a Th-1 response. This finding may have great utility because parasitic diseases that
are endemic to the third world, and other kinds of disease, prevent patients from mounting Th-1 type responses. The ability to
induce a Th-1 therapeutic response in these patients would make them susceptible to treatment with immunotherapy where they might
not otherwise respond. Moreover, since chemotherapy and radiotherapy have immune components, the use of an effective <I>Lm</I>-LLO
agent as part of a combination regimen might improve the therapeutic efficiency of other agents as well.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our approach to the intellectual property
portfolio is to create significant offensive and defensive patent protection for every immunotherapy and technology platform that
we develop.&nbsp;&nbsp;We work closely with our patent counsel to maintain a coherent and aggressive strategic approach to building
our patent portfolio with an emphasis in the field of cancer vaccines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are aware of Aduro Biotech, a company
comprised in part of former Cerus and Anza employees that is investigating <I>Listeria</I> vaccines based upon Anza&rsquo;s technology
and is conducting clinical trials using <I>Listeria</I>-based investigational new drugs. We believe that through our exclusive
license with Penn, we have the earliest known and dominant patent position in the U.S. for the use of recombinant <I>Listeria</I>
monocytogenes expressing proteins or tumor antigens as a vaccine for the treatment of infectious diseases and tumors. We successfully
defended our intellectual property by contesting a challenge made by Anza to our patent position in Europe on a claim not available
in the U.S. The European Patent Office ( EPO) Board of Appeals in Munich, Germany has ruled in favor of The Trustees of Penn and
its exclusive licensee Advaxis and reversed a patent ruling that revoked a technology patent that had resulted from an opposition
filed by Anza. The ruling of the EPO Board of Appeals is final and cannot be appealed. The granted claims, the subject matter of
which was discovered by Dr. Yvonne Paterson, scientific founder of Advaxis, are directed to the method of preparation and composition
of matter of recombinant bacteria expressing tumor antigens for treatment of patients with cancer. Subsequently, we challenged
a patent by Aduro. The patent was upheld by the USPTO, and the decision resulted in a precise and limiting definition of the approved
claims. The Aduro patent that we challenged does not cover our technology, or limit our business plans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Based on searches of publicly available
databases, we do not believe that Anza, Aduro or any other third party owns any published <I>Listeria</I> patents or has any issued
patent claims that might materially and adversely affect our ability to operate our business as currently contemplated in the field
of recombinant <I>Listeria</I> monocytogenes. Additionally, our proprietary position that is the issued patents and licenses for
pending applications restricts anyone from using plasmid based <I>Listeria</I> constructs, or those that are bioengineered to deliver
antigens fused to LLO, ActA, or fragments of LLO or ActA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 26, 2009, the United States Patent
and Trademark Office, which we refer to as the PTO, approved our patent application &ldquo;<I>Compositions and Methods for Enhancing
the Immunogenicity of Antigens</I>&rdquo;. This patent application covers the use of <I>Listeria</I> <I>monocytogenes</I> protein
ActA and fragments of this protein for use in the creation of antigen fusion proteins.&nbsp;&nbsp;This intellectual property protects
a unique strain of <I>Listeria</I> <I>monocytogenes</I> for use as a vaccine vector.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On February 10, 2009 the PTO issued patent
7,488,487 &ldquo;<I>Methods of Inducing Immune response Through the Administration of Auxotrophic Attenuated dat/dal Double Mutant
Listeria Strains</I> &rdquo;, assigned to Penn and licensed to us.&nbsp;&nbsp;This intellectual property protects a unique strain
of <I>Listeria</I> for use as a vaccine vector.&nbsp;&nbsp;This new strain of <I>Listeria</I> is an improvement over the strain
currently in clinical testing as it is more attenuated, more immunogenic, and does not contain an antibiotic resistance gene.&nbsp;&nbsp;We
believe that this strain may be result in more effective immunotherapies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Between February and December of 2009 the
U.S., Japanese, and European patent offices have approved patents for a newly developed strain of <I>Listeria</I> that uses a novel
method of attenuation.&nbsp;&nbsp;This strain is attenuated by deleting genes that are responsible for making a protein that is
essential for the bacterial cell wall, and by engineering back the ability to make this protein at a reduced level.&nbsp;&nbsp;In
developing this strain, the objective was to improve upon the useful properties of <I>Listeria</I> while reducing potential disease
causing properties of the bacterium, and, in preliminary testing this strain of <I>Listeria</I> appears to be more immunogenic
and less virulent that prior vaccine strains.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Between January and March of 2010, the USPTO
issued two patents to Penn (each of which are covered by the Penn license agreement) that cover the composition of matter, uses
and methods using the <I>Lm</I> protein Act A in antigen fusion proteins.&nbsp;&nbsp;We are currently holding patents relating
to two families of antigen-adjuvant fusion proteins; one based on LLO and one based on ActA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Material patents currently underlying the
license agreement with Penn are shown in the table below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman,Times,Serif; width: 80%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 40%; vertical-align: bottom; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Title</P></TD>
    <TD STYLE="width: 1%; vertical-align: top; padding-bottom: 1pt">
<!-- Field: Rule-Page --><DIV STYLE="text-align: left; margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD NOWRAP="nowrap" STYLE="width: 8%; vertical-align: bottom; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Expiration</P></TD>
    <TD STYLE="width: 1%; vertical-align: top; padding-bottom: 1pt">
<!-- Field: Rule-Page --><DIV STYLE="text-align: left; margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="width: 25%; vertical-align: bottom; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Product
        Candidate</P></TD>
    <TD STYLE="width: 1%; vertical-align: top; padding-bottom: 1pt">
<!-- Field: Rule-Page --><DIV STYLE="text-align: left; margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="width: 24%; vertical-align: bottom; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Jurisdiction</P></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Specific Immunotherapy of Cancer Using a Live Recombinant Bacterial Vaccine Vector</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">18-Apr-2017</TD>
    <TD>&nbsp;</TD>
    <TD>All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA</TD>
    <TD>&nbsp;</TD>
    <TD>US, Germany, Switzerland, France, Ireland, UK, Belgium, Japan, Canada</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Live, Recombinant Listeria Monocytogenes and Production of Cytotoxic T-Cell Response</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">03-Nov-2015</TD>
    <TD>&nbsp;</TD>
    <TD>All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA</TD>
    <TD>&nbsp;</TD>
    <TD>US</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Methods and Compositions for Immunotherapy of Cancer</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">08-Nov-2014</TD>
    <TD>&nbsp;</TD>
    <TD>All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA</TD>
    <TD>&nbsp;</TD>
    <TD>US</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Fusion of Non-Hemolytic, Truncated Form of Listeriolysin O to Antigens to Enhance Immunogenicity</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">2-Aug-2020</TD>
    <TD>&nbsp;</TD>
    <TD>All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA</TD>
    <TD>&nbsp;</TD>
    <TD>US, Germany, France, Great Britain Israel, European Union</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Compositions and Methods for Enhancing Immunogenicity of Antigens</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">2-Aug-2020</TD>
    <TD>&nbsp;</TD>
    <TD>All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA</TD>
    <TD>&nbsp;</TD>
    <TD>US, Germany, France European Union, Israel</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Compositions and Methods for Enhancing Immunogenicity of Antigens</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">15-Nov-2023</TD>
    <TD>&nbsp;</TD>
    <TD>All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA</TD>
    <TD>&nbsp;</TD>
    <TD>US</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Methods and Compositions for Immunotherapy of Cancer</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">08-Nov-2014</TD>
    <TD>&nbsp;</TD>
    <TD>All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA</TD>
    <TD>&nbsp;</TD>
    <TD>US</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Compositions and Methods for Enhancing Immunogenicity of Antigens</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">29-Mar-2020</TD>
    <TD>&nbsp;</TD>
    <TD>All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA</TD>
    <TD>&nbsp;</TD>
    <TD>US</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman,Times,Serif; width: 80%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 40%; vertical-align: bottom; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Title</P></TD>
    <TD STYLE="width: 1%; vertical-align: top; padding-bottom: 1pt">
<!-- Field: Rule-Page --><DIV STYLE="text-align: left; margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD NOWRAP="nowrap" STYLE="width: 8%; vertical-align: bottom; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Expiration</P></TD>
    <TD STYLE="width: 1%; vertical-align: top; padding-bottom: 1pt">
<!-- Field: Rule-Page --><DIV STYLE="text-align: left; margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="width: 25%; vertical-align: bottom; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Product
        Candidate</P></TD>
    <TD STYLE="width: 1%; vertical-align: top; padding-bottom: 1pt">
<!-- Field: Rule-Page --><DIV STYLE="text-align: left; margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="width: 24%; vertical-align: bottom; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Jurisdiction</P></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Immunogenic Compositions Comprising DAL/DAT Double-Mutant, Auxotrophic, Attenuated Strains of Listeria and their Methods of Use</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">18-Nov-2017</TD>
    <TD>&nbsp;</TD>
    <TD>ADXS-PSA and ADXS-HER</TD>
    <TD>&nbsp;</TD>
    <TD>US, Canada, European Union, Great Britian, Germany</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Isolated Nucleic Acids Comprising Listeria DAL and DAT Genes</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">18-Nov-2017</TD>
    <TD>&nbsp;</TD>
    <TD>ADXS-PSA and ADXS-HER</TD>
    <TD>&nbsp;</TD>
    <TD>US</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Isolated Nucleic Acids Comprising Listeria DAL and DAT Genes</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">18-Nov-2017</TD>
    <TD>&nbsp;</TD>
    <TD>ADXS-PSA and ADXS-HER</TD>
    <TD>&nbsp;</TD>
    <TD>US</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Immunogenic Compositions Comprising DAL/DAT Double Mutant, Auxotrophic Attenuated Strains of Listeria and their Methods of Use</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">31-Jan-2020</TD>
    <TD>&nbsp;</TD>
    <TD>ADXS-PSA and ADXS-HER</TD>
    <TD>&nbsp;</TD>
    <TD>US</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Methods and Compositions for Immunotherapy of Cancer</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">13-Jul-2016</TD>
    <TD>&nbsp;</TD>
    <TD>ADXS-HER2</TD>
    <TD>&nbsp;</TD>
    <TD>US</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Listeria-based and LLO-based Vaccines</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP="nowrap">24-Sep-2024</TD>
    <TD>&nbsp;</TD>
    <TD>ADXS-HER2</TD>
    <TD>&nbsp;</TD>
    <TD>US</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Governmental Regulation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>The Drug Development Process</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The FDA requires that pharmaceutical and
certain other therapeutic products undergo significant clinical experimentation and clinical testing prior to their marketing or
introduction to the general public.&nbsp;&nbsp;Clinical testing, known as clinical trials or clinical studies, is either conducted
internally by pharmaceutical or biotechnology companies or is conducted on behalf of these companies by Clinical Research Organizations,
which we refer to as CROs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The process of conducting clinical studies
is highly regulated by the FDA, as well as by other governmental and professional bodies.&nbsp;&nbsp;Below, we describe the principal
framework in which clinical studies are conducted, as well as describe a number of the parties involved in these studies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Protocols</I>.&nbsp;&nbsp;Before commencing
clinical studies, the sponsor of an investigational new drug must typically receive governmental and institutional approval.&nbsp;&nbsp;In
the U.S., Federal approval is obtained by submitting an IND to the FDA and amending it for each new proposed study. The clinical
research plan is known in the industry as a <I>protocol</I>.&nbsp;&nbsp;A protocol is the blueprint for each drug study.&nbsp;&nbsp;The
protocol sets forth, among other things, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Criteria for subject or patient inclusion/exclusion;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Dosing requirements and timing;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Tests to be performed; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Evaluations and&nbsp;&nbsp;data&nbsp;&nbsp;assessment.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Institutional Review Board (Ethics Committee)</I>.
An institutional review board is an independent committee of professionals and lay persons which reviews clinical research studies
involving human beings and is required to adhere to guidelines issued by the FDA. The institutional review board does not report
to the FDA and its members are not appointed by the FDA, but its records are audited by the FDA. All clinical studies must be approved
by an institutional review board. The institutional review board is convened by the site or institution where the protocol will
be conducted and its role is to protect the rights of the subjects and patients in the clinical studies. It must approve the protocols
to be used and then oversee the conduct of the study, including oversight of the communications which we or the CRO conducting
the study at that specific site proposes to use to recruit subjects or patients, and the informed consent form which the subjects
or patients will be required to sign prior to their enrollment in the clinical studies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Clinical Trials</I>.&nbsp;&nbsp;Human
clinical studies or testing of an investigational new drug prior to FDA approval are generally done in three stages known as Phase
1, Phase 2, and Phase 3 testing.&nbsp;&nbsp;The names of the phases are derived from the CFR 21 that regulates the FDA. Generally,
there are multiple studies conducted in each phase.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Phase 1</I>.&nbsp;&nbsp;Phase 1 studies
involve testing a investigational new drug on a limited number of patients. Phase 1 studies determine a drug&rsquo;s basic safety,
maximum tolerated dose, and how the drug is absorbed by, and eliminated from, the body. This phase lasts an average of six months
to a year. Typically, cancer therapies are initially tested on late stage cancer patients.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Phase 2</I>.&nbsp;&nbsp;Phase 2 trials
involve larger numbers of patients that have been diagnosed with the targeted disease or condition. Phase 2 testing typically lasts
an average of one to three years. In Phase 2, the drug is tested to determine its safety and effectiveness for treating a specific
disease or condition. Phase 2 testing also involves determining acceptable dosage levels of the drug. If Phase 2 studies show that
an investigational new drug has an acceptable range of safety risks and probable effectiveness, a company will continue to evaluate
the investigational new drug in Phase 3 studies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Phase 3</I>.&nbsp;&nbsp;Phase 3 studies
involve testing even larger numbers of patients, typically several hundred to several thousand patients. The purpose is to confirm
effectiveness and long-term safety on a large scale. These studies generally last two to six years. Given the larger number of
patients required to conduct Phase 3 studies, they are generally conducted at multiple sites and often times multiple countries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Biologic License Application.&nbsp;&nbsp;</I>The
results of the clinical trials using biologics are submitted to the FDA as part of Biologic License Application, which we refer
to as BLA. Following the completion of Phase 3 studies, if the Sponsor of a potential product in the U.S. believes it has sufficient
information to support the safety and effectiveness of the investigational new drug, the Sponsor submits a BLA to the FDA requesting
that the investigational new drug be approved for sale. The application is a comprehensive, multi-volume filing that includes the
results of all preclinical and clinical studies, information about the drug&rsquo;s composition, and the Sponsor&rsquo;s plans
for manufacturing, packaging, labeling and testing the investigational new drug. The FDA&rsquo;s review of an application is designated
either as a standard review with a target review time of 10 months or a priority review with a target of 6 months. Depending upon
the completeness of the application and the number and complexity of requests and responses between the FDA and the Sponsor, the
review time can take months to many years, with the mean review lasting 13.1 months. Once approved, drugs and other products may
be marketed in the U.S., subject to any conditions imposed by the FDA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The drug approval process is time-consuming,
involves substantial expenditures of resources, and depends upon a number of factors, including the severity of the illness in
question, the availability of alternative treatments, and the risks and benefits demonstrated in the clinical trials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On November 21, 1997, former President Clinton
signed into law the FDA Modernization Act.&nbsp;&nbsp;That act codified the FDA&rsquo;s policy of granting &ldquo;Fast Track&rdquo;
approval for cancer therapies and other therapies intended to treat serious or life threatening diseases and that demonstrate the
potential to address unmet medical needs.&nbsp;&nbsp;The Fast Track program emphasizes close, early communications between the
FDA and the sponsor to improve the efficiency of preclinical and clinical development, and to reach agreement on the design of
the major clinical efficacy studies that will be needed to support approval.&nbsp;&nbsp;Under the Fast Track program, a sponsor
also has the option to submit and receive review of parts of the NDA or BLA on a rolling schedule approved by FDA, which expedites
the review process.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The FDA&rsquo;s Guidelines for Industry
Fast Track Development Programs require that a clinical development program must continue to meet the criteria for Fast Track designation
for an application to be reviewed under the Fast Track Program. Previously, the FDA approved cancer therapies primarily based on
patient survival rates or data on improved quality of life. While the FDA could consider evidence of partial tumor shrinkage, which
is often part of the data relied on for approval, such information alone was usually insufficient to warrant approval of a cancer
therapy, except in limited situations. Under the FDA&rsquo;s new policy, which became effective on February 19, 1998, Fast Track
designation ordinarily allows an investigational new drug to be considered for accelerated approval through the use of surrogate
endpoints to demonstrate effectiveness. As a result of these provisions, the FDA has broadened authority to consider evidence of
partial tumor shrinkage or other surrogate endpoints of clinical benefit for approval. This new policy is intended to facilitate
the study of cancer therapies and shorten the total time for marketing approvals. Under accelerated approval, the manufacturer
must continue with the clinical testing of the product after marketing approval to validate that the surrogate endpoint did predict
meaningful clinical benefit. To the extent applicable, we intend to take advantage of the Fast Track Program to obtain accelerated
approval on our immunotherapies, however, it is too early to tell what effect, if any, these provisions may have on the approval
of our immunotherapies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Other Regulations</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Various Federal and state laws, regulations,
and recommendations relating to safe working conditions, laboratory practices, the experimental use of animals, and the purchase,
storage, movement, import, export, use, and disposal of hazardous or potentially hazardous substances, including radioactive compounds
and infectious disease agents, are used in connection with our research or applicable to our activities. They include, among others,
the U.S. Atomic Energy Act, the Clean Air Act, the Clean Water Act, the Occupational Safety and Health Act, the National Environmental
Policy Act, the Toxic Substances Control Act, and Resources Conservation and Recovery Act, national restrictions on technology
transfer, import, export, and customs regulations, and other present and possible future local, state, or federal regulation. The
extent of governmental regulation which might result from future legislation or administrative action cannot be accurately predicted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There is a series of international harmonization
treaties, known as the ICH treaties, that enable drug development to be conducted on an international basis.&nbsp;&nbsp;These treaties
specify the manner in which clinical trials are to be conducted, and if trials adhere to the specified requirements, then they
are accepted by the regulatory bodies in the signatory countries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Manufacturing</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The FDA requires that any drug or formulation
to be tested in humans be manufactured in accordance with its GMP regulations.&nbsp;&nbsp;This has been extended to include any
drug that will be tested for safety in animals in support of human testing.&nbsp;&nbsp;The GMPs set certain minimum requirements
for procedures, record-keeping, and the physical characteristics of the laboratories used in the production of these drugs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have entered into agreements with&nbsp;&nbsp;Recipharm
Cobra and Vibalogics GmbH for the manufacture of a portion of our vaccines.&nbsp;&nbsp;Both companies have extensive experience
in manufacturing gene therapy products for investigational studies.&nbsp;&nbsp;Both companies are full service manufacturing organizations
that manufacture and supply biologic based therapeutics for the pharmaceutical and biotech industry.&nbsp;&nbsp;These services
include the GMP manufacturing of stability testing and cell banking.&nbsp;&nbsp;Recipharm&rsquo;s manufacturing plan for us calls
for several manufacturing stages, including process development, manufacturing of non-GMP material for toxicology studies and manufacturing
of GMP material for the Phase 1 and Phase 2 trials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Beginning in April 2008, we entered into
a number of Agreements with Vibalogics to manufacture GMP material for two new vaccines ADXS-PSA, an Lm-LLO based immunotherapy
for the treatment of prostate cancer, and ADXS-HER2, an <I>Lm</I>-LLO based immunotherapy for the treatment of HER2 expressing
cancers (such as breast, gastric, bladder, brain, pancreatic and ovarian cancer) . The Agreement with Recipharm Cobra covers GMP
manufacturing in several stages, including process development, manufacturing of non-GMP material for toxicology studies and manufacturing
of GMP material for the Phase 1 and Phase 2 trials, filling, finishing, and the development of a stable, room temperature storage,
dried formulation of our vaccines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Competition</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The biotechnology and biopharmaceutical
industries are characterized by rapid technological developments and a high degree of competition. As a result, our actual or proposed
immunotherapies could become obsolete before we recoup any portion of our related research and development and commercialization
expenses. The biotechnology and biopharmaceutical industries are highly competitive, and this competition comes from both biotechnology
firms and from major pharmaceutical companies, including: Aduro Biotech, Agenus Inc., Bionovo Inc., Bristol-Myers Squibb, Celgene
Corporation, Celldex Therapeutics, Dendreon Corporation, Inovio Pharmaceutical Inc., Oncolytics Biotech Inc., Oncothyreon Inc.,
et al., each of which is pursuing cancer vaccines and/or immunotherapies. Many of these companies have substantially greater financial,
marketing, and human resources than we do (including, in some cases, substantially greater experience in clinical testing, manufacturing,
and marketing of pharmaceutical products). We also experience competition in the development of our immunotherapies from universities
and other research institutions and compete with others in acquiring technology from such universities and institutions. In addition,
certain of our immunotherapies may be subject to competition from investigational new drugs and/or products developed using other
technologies, some of which have completed numerous clinical trials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We expect that our immunotherapies under
development and in clinical trials will address major markets within the cancer therapeutic area. Our competition will be determined
in part by the potential indications for which drugs are developed and ultimately approved by regulatory authorities. Additionally,
the timing of market introduction of some of our potential immunotherapies or of competitors&rsquo; products may be an important
competitive factor. Accordingly, the speed with which we can develop immunotherapies, complete preclinical testing, clinical trials
and approval processes and supply commercial quantities to market are expected to be important competitive factors. We expect that
competition among products approved for sale will be based on various factors, including product efficacy, safety, reliability,
availability, price and patent position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Merck has developed the drug Gardasil and
GSK has developed the drug Cervarix which can prevent cervical cancer by vaccinating women against the HPV virus, the cause of
the disease. Gardasil is directed against four HPV strains while Cervarix is directed against two. Neither of these agents has
an approved indication for women who have a prior exposure to the HPV strains that they protect against, nor are women protected
from other strains of HPV that the drugs do not treat.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The presence of these agents in the market
does not eliminate the market for a therapeutic vaccine directed against invasive cervical cancer and CIN 2/3 for a number of reasons:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">HPV is the most common sexually treated
disease in the U.S., and since prior exposure to the virus renders these anti-viral agents ineffective they tend to be limited
to younger women and do not offer protection for women who are already infected.&nbsp;&nbsp;The number of women who are already
infected with HPV is estimated to be as much as (or more than) 25% of the female population of the U.S.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There are approximately 10 high risk strains
of HPV, but these agents only protect against the most common 2-4 strains.&nbsp;&nbsp;If a woman contracts a high risk HPV species
that is not one of those, the drugs will not work.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Women with HPV are typically infected for
over twenty years or more before they manifest cervical cancer.&nbsp;&nbsp;Thus, the true prophylactic effect of these drugs can
only be inferred at this time.&nbsp;&nbsp;We believe that there currently exists a significant population of young woman who have
not received these agents, or for whom they will not work, and who will manifest HPV related cervical disease for the next 40+
years. We believe this population will continue to grow until such time as a significant percentage of women who have not been
exposed to HPV are vaccinated; which we believe is not likely to occur within the next decade or longer.&nbsp;&nbsp;We do not know
at this time whether a significant number of women will be vaccinated to have an effect on the epidemiology of this disease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">With the exception of the campaign to eradicate
polio in which vaccination was mandatory for all school age children, vaccination is a difficult model to accomplish because it
is virtually impossible to treat everyone in any given country, much less the entire world.&nbsp;&nbsp;This is especially true
for cervical cancer, as the incentive for men to be vaccinated is small, and infected men keep the pathogen circulating in the
population.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Taken together, experts believe that there
will be a cervical cancer and CIN 2/3 market for the foreseeable future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Employees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of November 5, 2012, we had 12 employees,
all of which were full time employees.&nbsp;&nbsp;We believe our relations with employees are good.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We do not anticipate any significant increase
in the number of employees in the clinical area and the research and development area to support clinical requirements, and in
the general and administrative and business development areas over the next two years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Description of Property</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our corporate offices are currently located
at 305 College Road East, Princeton, New Jersey 08540. On April 1, 2011, we entered into a Sublease Agreement for such office,
which is a 9143 square foot leased facility in Princeton, NJ approximately 12 miles south of our prior location. The agreement
is for a period of approximately twenty months at the rate of approximately $15,600 per month plus utilities. Utility costs are
estimated to be $7,200 per month and are capped at approximately $10,700 per month. The agreement required an initial payment of
approximately $54,000 prior to entering the new facility, which we have paid. As an inducement to enter into the agreement, the
company received an abatement through July 31, 2011. The agreement has a termination date of November 29, 2012 and we are in discussions
with building owner for lease terms beyond this date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Legal Proceedings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of the date hereof, there are no material
pending legal proceedings to which we are a party or of which any of our property is the subject.&nbsp;&nbsp;In the ordinary course
of our business we may become subject to litigation regarding our immunotherapies or our compliance with applicable laws, rules,
and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MANAGEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Executive Officers, Directors and Key Employees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following are our executive officers
and directors and their respective ages and positions as of November 5, 2012:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; width: 25%; border-bottom: black 1pt solid; font-weight: bold; text-align: center">Name</TD>
    <TD STYLE="vertical-align: top; width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 6%; border-bottom: black 1pt solid; font-weight: bold; text-align: center">Age</TD>
    <TD STYLE="vertical-align: top; width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 65%; border-bottom: black 1pt solid; font-weight: bold; text-align: center">Position</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">Thomas A. Moore</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">60</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Chief Executive Officer and Chairman of our Board of Directors</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">Dr. James P. Patton</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">54</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Director</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">Roni A. Appel</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">45</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Director</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">Dr. Thomas L. McKearn</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">61</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Director</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">Richard L. Berman</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">69</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Director</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">John Rothman, Ph.D.</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">63</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Executive Vice President of Clinical and Scientific Operations</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">Mark J. Rosenblum</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">59</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Chief Financial Officer, Senior Vice President and Secretary</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Thomas A. Moore.</I></B> Mr. Moore
joined our Board as an independent director in September 2006. Effective December 15, 2006, Mr. Moore was appointed our Chairman
and Chief Executive Officer. He is currently also a director of Opt-e-scrip, Inc., which markets a clinical system to compare multiple
drugs in the same patient. He also serves on the board of directors of Mayan Pigments, Inc., which has developed and patented Mayan
pigment technology. Previously, from June 2002 to June 2004 Mr. Moore was President and Chief Executive Officer of Biopure Corporation,
a developer of oxygen therapeutics that are intravenously administered to deliver oxygen to the body&rsquo;s tissues. From 1996
to November 2000 he was President and Chief Executive Officer of Nelson Communications. Prior to 1996, Mr. Moore had a 23-year
career with the Procter &amp; Gamble Company in multiple managerial positions, including President of Health Care Products where
he was responsible for prescription and over-the-counter medications worldwide, and Group Vice President of the Procter &amp; Gamble
Company. Mr. Moore is a graduate of Princeton University. Mr. Moore&rsquo;s extensive business, managerial, executive and leadership
experience in the healthcare industry make him particularly qualified to serve on our Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Dr. James P. Patton.</I></B> Dr. Patton
has served as a member of our board of directors since February 2002, as Chairman of our board of directors from November 2004
until December 31, 2005 and as our Chief Executive Officer from February 2002 to November 2002. Since February 1999, Dr. Patton
has been the Vice President of Millennium Oncology Management, Inc., which provides management services for radiation oncology
care to four sites. Dr. Patton has been a trustee of Dundee Wealth US, a mutual fund family since October 2006. In addition, he
has been President of Comprehensive Oncology Care, LLC since 1999, a company which owned and operated a cancer treatment facility
in Exton, Pennsylvania until its sale in 2008. From February 1999 to September 2003, Dr. Patton also served as a consultant to
LibertyView Equity Partners SBIC, LP, a venture capital fund based in Jersey City, New Jersey. From July 2000 to December 2002,
Dr. Patton served as a director of Pinpoint Data Corp. From February 2000 to November 2000, Dr. Patton served as a director of
Healthware Solutions. From June 2000 to June 2003, Dr. Patton served as a director of LifeStar Response. He earned his B.S. from
the University of Michigan, his Medical Doctorate from Medical College of Pennsylvania, and his M.B.A. from Penn&rsquo;s Wharton
School. Dr. Patton was also a Robert Wood Johnson Foundation Clinical Scholar. He has published papers regarding scientific research
in human genetics, diagnostic test performance and medical economic analysis. Dr. Patton&rsquo;s experience as a trustee and consultant
to funds that invest in life science companies provide him with the perspective from which we benefit. Additionally, Dr. Patton&rsquo;s
medical experience and service as a principal and director of other life science companies makes Dr. Patton particularly qualified
to serve as our director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Roni A. Appel.</I></B> Mr. Appel has
served as a member of our board of directors since November 2004. He was our President and Chief Executive Officer from January
1, 2006 and Secretary and Chief Financial Officer from November 2004, until he resigned as our Chief Financial Officer on September
7, 2006 and as our President, Chief Executive Officer and Secretary on December 15, 2006. From 1999 to 2004, he was a partner and
managing director of LV Equity Partners (f/k/a LibertyView Equity Partners). From 1998 until 1999, he was a director of business
development at Americana Financial Services, Inc. From 1994 to 1998 he was an attorney and completed his MBA at Columbia University.
Mr. Appel&rsquo;s longstanding service with us and his entrepreneurial investment career in early stage biotech businesses qualify
him to serve as our director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Dr. Thomas L. McKearn</I></B>. Dr.
McKearn has served as a member of our board of directors since July 2002. He brings more than 25 years of experience in the translation
of biotechnology science into oncology products. First as one of the founders of Cytogen Corporation, then as an Executive Director
of Strategic Science and Medicine at Bristol-Myers Squibb and now as the VP Strategic Clinical Affairs at Agennix, Inc. (formerly
GPC-Biotech), he has worked at bringing the most innovative laboratory findings into the clinic and through the FDA regulatory
process for the benefit of cancer patients who need better ways to cope with their afflictions. Prior to entering the biotechnology
industry in 1981, Dr. McKearn received his medical, graduate and post-graduate training at the University of Chicago and served
on the faculty of the Medical School at the University of Pennsylvania. Dr. McKearn&rsquo;s experience in managing life science
companies, his knowledge of medicine and his commercialization of biotech products particularly qualify him to serve as our director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Richard L. Berman.</I></B> Mr. Berman
has served as a member of our board of directors since September 1, 2005. Mr. Berman&rsquo;s business career spans over 35 years
of venture capital, senior management and merger and acquisitions experience. In the past five years, Mr. Berman has served as
a director and/or officer of over a dozen public and private companies. From 2006 to 2011, Mr. Berman was Chairman of National
Investment Managers, a company with $12 billion in pension administration assets. In June 2011, he became chairman of the International
Corporation for Project Finance LLC, a leading private infrastructure finance company involved in over $10 billion of projects.
Mr. Berman is currently a director of four public companies: Broadcaster, Inc., Easylink Services International, Inc., Advaxis,
Inc., and Neostem, Inc. From 1998 to 2000, he was employed by Internet Commerce Corporation (now Easylink Services) as Chairman
and CEO. Prior to 1998, Mr. Berman worked at Goldman Sachs and was Senior Vice President of Bankers Trust Company. Mr. Berman is
a past Director of the Stern School of Business of NYU where he obtained his BS and MBA. He also has U.S. and foreign law degrees
from Boston College and The Hague Academy of International Law, respectively. Mr. Berman&rsquo;s extensive knowledge of our industry,
his role in the governance of publically held companies and his directorships in other life science companies qualify him to serve
as our director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>John Rothman, Ph.D</I>.&nbsp;</B>
Dr. Rothman joined our company in March 2005 as Vice President of Clinical Development and as of December 12, 2008 he was appointed
to Executive Vice President of Clinical and Scientific Operations.&nbsp;&nbsp;From 2002 to 2005, Dr. Rothman was Vice President
and Chief Technology Officer of Princeton Technology Partners.&nbsp;&nbsp;Prior to that he was involved in the development of the
first interferon at Schering Inc., was director of a variety of clinical development sections at Hoffman LaRoche, and the Senior
Director of Clinical Data Management at Roche.&nbsp;&nbsp;While at Roche his work in Kaposi&rsquo;s Sarcoma became the clinical
basis for the first filed BLA which involved the treatment of AIDS patients with interferon.&nbsp;&nbsp;Dr. Rothman completed his
doctorate at City University of Los Angeles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Mark J. Rosenblum.</I></B> Effective
as of January 5, 2010, Mr. Rosenblum joined our company as our Chief Financial Officer, Senior Vice President and Secretary. Mr.
Rosenblum was the Chief Financial Officer of HemobioTech, Inc., a public company primarily engaged in the commercialization of
human blood substitute technology licensed from Texas Tech University, from April 1, 2005 until December 31, 2009. From August
1985 through June 2003, Mr. Rosenblum was employed by Wellman, Inc., a public chemical manufacturing company. Between 1996 and
2003, Mr. Rosenblum was the Chief Accounting Officer, Vice President and Controller at Wellman, Inc. Mr. Rosenblum holds both a
Masters in Accountancy and a B.S. degree from the University of South Carolina. Mr. Rosenblum is a certified public accountant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Board of Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Each director is elected for a period of
one year and serves until the next annual meeting of stockholders, or until his or her successor is duly elected and qualified.
Officers are elected by, and serve at the discretion of, our board of directors. The board of directors may also appoint additional
directors up to the maximum number permitted under our by-laws, which is currently nine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Director Independence</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In accordance with the disclosure requirements
of the SEC, and since the OTC Bulletin Board&nbsp;does not have its own rules for director independence, we have adopted the NASDAQ
listing standards for independence effective April 2010. Although we are not presently listed on any national securities exchange,
each of our directors, other than Mr. Thomas A. Moore and Mr. Roni Appel, is independent in accordance with the definition set
forth in the NASDAQ rules. Each current member of the Audit Committee and Compensation Committee is an independent director under
the NASDAQ standards. The Board considered the information included in transactions with related parties as outlined below along
with other information the Board considered relevant, when considering the independence of each director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Committees of the Board of Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our board of directors has three standing
committees: the audit committee, the compensation committee, and the nominating and corporate governance committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Audit Committee</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The audit committee of our board of directors
is currently composed of two directors, both of whom satisfy the independence standards for audit committee members under the NASDAQ
rules (although our securities are not listed on the NASDAQ stock market but are quoted on the OTC Bulletin Board). For fiscal
2011, the audit committee was composed of Mr. Berman and Dr. Patton, with Mr. Berman serving as the audit committee&rsquo;s financial
expert as defined under Item 407 of Regulation S-K of the Securities Act of 1933, as amended, which we refer to as the Securities
Act. Our board of directors has determined that the audit committee financial expert is independent as defined in (i) Rule 10A-3(b)(i)(ii)
under the Exchange Act and (ii) under Section 121 B(2)(a) of the NYSE Amex Equities Company Guide (although our securities are
not listed on the NYSE Amex Equities but are quoted on the OTC Bulletin Board).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The audit committee is responsible for the
following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>reviewing the results of the audit engagement with the independent registered public accounting firm;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>identifying irregularities in the management of our business in consultation with our independent accountants, and suggesting
an appropriate course of action;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>reviewing the adequacy, scope, and results of the internal accounting controls and procedures;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>reviewing the degree of independence of the auditors, as well as the nature and scope of our relationship with our independent
registered public accounting firm;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>reviewing the auditors&rsquo; fees; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>recommending the engagement of auditors to the full board of directors.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Compensation Committee</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The compensation committee of our board
of directors consists of Mr. Berman and Dr. McKearn.&nbsp;&nbsp;The compensation committee determines the salaries and incentive
compensation of our officers subject to applicable employment agreements, and provides recommendations for the salaries and incentive
compensation of our other employees and consultants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Nominating and Corporate Governance Committee</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The nominating and corporate governance
committee of our board of directors currently consists of Mr. Berman and Mr. Moore. The nominating and corporate governance committee
did not meet in fiscal 2011.&nbsp;&nbsp;The functions of the nominating and corporate governance committee include the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>identifying and recommending to the board of directors individuals qualified to serve as members of our board of directors
and on the committees of the board;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>advising the board with respect to matters of board composition, procedures and committees;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>developing and recommending to the board a set of corporate governance principles applicable to us and overseeing corporate
governance matters generally including review of possible conflicts and transactions with persons affiliated with directors or
members of management; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>overseeing the annual evaluation of the board and our management.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The nominating and corporate governance
committee will consider director candidates recommended by eligible stockholders. Stockholders may recommend director nominees
for consideration by the nominating and corporate governance committee by writing to the Nominating and Corporate Governance, Attention:
Chairman, Advaxis, Inc., 305 College Road East, Princeton, New Jersey 08540. Any recommendations for director made to the nominating
and corporate governance committee should include the nominee&rsquo;s name and qualifications for membership on our board of directors,
and should include the following information for each person being recommended or nominated for election as a director:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The name, age, business address and residence address of the person;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The principal occupation or employment of the person;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The number of shares of our common stock which the person owns beneficially or of record; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Any other information relating to the person that must be disclosed in a proxy statement or other filings required to be made
in connection with solicitations of proxies for election of directors under Section 14 of the Exchange Act and its rules and regulations.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, the stockholder&rsquo;s notice
must include the following information about such stockholder:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The stockholder&rsquo;s name and record address;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The number of shares of our common stock that the stockholder owns beneficially or of record;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>A description of all arrangements or understandings between the stockholder and each proposed nominee and any other person
or persons, including their names, pursuant to which the nomination is to be made;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>A representation that the stockholder&nbsp;&nbsp;intends to appear in person or by proxy at the annual meeting to nominate
the person or persons named in such stockholder&rsquo;s notice; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Any other information about the stockholder that must be disclosed in a proxy statement or other filings required to be made
in connection with solicitations of proxies for election of directors under Section 14 of the Exchange Act and its rules and regulations.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The notice must include a written consent
by each proposed nominee to being named as a nominee and to serve as a director if elected. No person will be eligible for election
as a director of ours unless recommended by the nominating and corporate governance committee and nominated by our board of directors
or nominated in accordance with the procedures set forth above. Candidates proposed by stockholders for nomination are evaluated
using the same criteria as candidates initially proposed by the nominating and corporate governance committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We must receive the written nomination for
an annual meeting not less than 90 days and not more than 120 days prior to the first anniversary of the previous year&rsquo;s
annual meeting of stockholders, or, if no annual meeting was held the previous year or the date of the annual meeting is advanced
more than 30 days before or delayed more than 60 days after the anniversary date, we must receive the written nomination not more
than 120 days prior to the annual meeting and not less than the later of 90 days prior to the annual meeting or ten days following
the day on which public announcement of the date of the annual meeting is first made. For a special meeting, we must receive the
written nomination not less than the later of 90 days prior to the special meeting or ten days following the day on which public
announcement of the date of the special meeting is first made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The nominating and corporate governance
committee expects, as minimum qualifications, that nominees to our board of directors (including incumbent directors) will enhance
our board of director&rsquo;s management, finance and/or scientific expertise, will not have a conflict of interest and will have
a high ethical standard. A director nominee&rsquo;s knowledge and/or experience in areas such as, but not limited to, the medical,
biotechnology, or life sciences industry, equity and debt capital markets and financial accounting are likely to be considered
both in relation to the individual&rsquo;s qualification to serve on our board of directors and the needs of our board of directors
as a whole. Other characteristics, including but not limited to, the director nominee&rsquo;s material relationships with us, time
availability, service on other boards of directors and their committees, or any other characteristics which may prove relevant
at any given time as determined by the nominating and corporate governance committee shall be reviewed for purposes of determining
a director nominee&rsquo;s qualification.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Candidates for director nominees are evaluated
by the nominating and corporate governance committee in the context of the current composition of our board of directors, our operating
requirements and the long-term interests of our stockholders. The nominating and corporate governance committee then uses its network
of contacts to compile a list of potential candidates, but may also engage, if it deems appropriate, a professional search firm.
The nominating and corporate governance committee conducts any appropriate and necessary inquiries into the backgrounds and qualifications
of possible candidates after considering the function and needs of our board of directors. In the case of incumbent directors whose
terms of office are set to expire, the nominating and corporate governance committee reviews such directors&rsquo; overall service
to us during their term, including the number of meetings attended, level of participation, quality of performance, and any other
relationships and transactions that might impair such directors&rsquo; independence. The nominating and corporate governance committee
meets to discuss and consider such candidates&rsquo; qualifications and then selects a nominee for recommendation to our board
of directors by majority vote. To date, the nominating and corporate governance committee has not paid a fee to any third party
to assist in the process of identifying or evaluating director candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Compensation Committee Interlocks and Insider Participation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The current members of the compensation
committee are Mr. Berman and Dr. McKearn. Currently, none of such persons is an officer or employee of us or any of our subsidiaries.
During fiscal 2011, none of our executive officers served as a director or member of a compensation committee (or other committee
serving an equivalent function) of any other entity, whose executive officers served as a director or member of our compensation
committee. No interlocking relationship, as defined by the Securities Exchange Act of 1934, as amended, exists between our board
of directors or our Compensation Committee and the board of directors or compensation committee of any other company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="margin: 0 0 0in"></P>

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<P STYLE="margin: 0 0 0in"></P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXECUTIVE COMPENSATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Summary Compensation Table</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table sets forth the information
as to compensation paid to or earned by our Chief Executive Officer and our two other most highly compensated executive officers
during the fiscal years ended October 31, 2011 and 2010.&nbsp;&nbsp;These individuals are referred to in this prospectus as our
named executive officers.&nbsp;&nbsp;As none of our named executive officers received non-equity incentive plan compensation or
nonqualified deferred compensation earnings during the fiscal years ended October 31, 2011 and 2010, we have omitted those columns
from the table.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Name&nbsp;and <BR> Principal <BR> Position</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Fiscal&nbsp;Year</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Salary</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Bonus</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Stock <BR> Award(s) <BR> (1)</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Option <BR> Award(s) <BR> (1)</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">All&nbsp;Other <BR> Compensation</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Total</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD STYLE="width: 23%">Thomas A. Moore,</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">2011</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 8%; text-align: right">350,000</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 8%; text-align: right">-</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 8%; text-align: right">-</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 8%; text-align: right">-</TD>
    <TD STYLE="width: 1%">(7)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 8%; text-align: right">21,294</TD>
    <TD STYLE="width: 1%">(2)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 8%; text-align: right">371,294</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD STYLE="padding-left: 9pt">CEO and Chairman</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">350,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">135,000</TD>
    <TD>(6)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">224,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">142,174</TD>
    <TD>(2)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">851,974</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD>Dr. John Rothman,</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">275,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">83,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">30,000</TD>
    <TD>(3)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>(8)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">34,665</TD>
    <TD>(4)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">422,665</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: #CCFFCC">
    <TD STYLE="vertical-align: bottom; padding-left: 9pt">Executive VP of Science &amp; Operations</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">2010</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">250,000</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">50,000</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">30,000</TD>
    <TD STYLE="vertical-align: top">(3)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">252,900</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">29,451</TD>
    <TD STYLE="vertical-align: top">(4)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">612,351</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD>Mark J. Rosenblum</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">72,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>(9)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">19,211</TD>
    <TD>(5)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">341,211</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD STYLE="padding-left: 9pt">Chief Financial Officer</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">225,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">134,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">8,494</TD>
    <TD>(5)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">368,374</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">(1)</TD>
    <TD STYLE="width: 95%">The amounts shown in this column represent the fair value on grant date in accordance with ASC 718 using the assumptions described under Stock Compensation in Note 2 to our financial statements included elsewhere in this prospectus.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(2)</TD>
    <TD>Based on our cost of Mr. Moore&rsquo;s coverage for health care and interest received for the Moore Notes.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(3)</TD>
    <TD>Represents $30,000 of base salary paid in shares of our common stock in lieu of cash, based on the average monthly stock price.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(4)</TD>
    <TD>Based on our cost of his coverage for health care and the 401K company match he received.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(5)</TD>
    <TD>Based on our cost of his coverage for health care.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(6)</TD>
    <TD>For 2010, represents 750,000 shares of our common stock granted to Mr. Moore based on the financial raise milestone in his employment agreement valued at the market close price on June 29, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(7)</TD>
    <TD>In the fiscal year ended October 31, 2011, we did not grant any stock options to purchase shares of our common stock to Mr. Moore. However, in the fiscal year ended October 31, 2012, we granted stock options to purchase 4,000,000 shares of our common stock to Mr. Moore in connection with services he performed in fiscal 2011. The material terms of this grant is described below under the heading &ldquo;Discussion of Summary Compensation Table.&rdquo;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(8)</TD>
    <TD>In the fiscal year ended October 31, 2011, we did not grant any stock options to purchase shares of our common stock to Dr. Rothman. However, in the fiscal year ended October 31, 2012, we granted stock options to purchase 3,000,000 shares of our common stock to Dr. Rothman in connection with services he performed in fiscal 2011. The material terms of this grant is described below under the heading &ldquo;Discussion of Summary Compensation Table.&rdquo;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(9)</TD>
    <TD>In the fiscal year ended October 31, 2011, we did not grant any stock options to purchase shares of our common stock to Mr. Rosenblum. However, in the fiscal year ended October 31, 2012, we granted stock options to purchase 2,100,000 shares of our common stock to Mr. Rosenblum in connection with services he performed in fiscal 2011. The material terms of this grant is described below under the heading &ldquo;Discussion of Summary Compensation Table.&rdquo;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Discussion of Summary Compensation Table</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are party to an employment agreement
with each of our named executive officers who is presently employed by us, other than Mr. Rosenblum and Mr. Rothman. Each employment
agreement sets forth the terms of that officer&rsquo;s employment, including among other things, salary, bonus, non-equity incentive
plan and other compensation, and its material terms are described below. In fiscal 2010, we granted stock options to our named
executive officers to purchase shares of our common stock and issued stock to our Chief Executive Officer. In fiscal 2011, we did
not grant any stock options to purchase shares of our common stock to our named executive officers. However, in fiscal 2012, we
granted stock options to purchase shares of our common stock to our named executive officers in connection with services they performed
in fiscal 2011. The material terms of these grants are also described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Moore Employment Agreement and Option
Agreements.&nbsp;&nbsp;</I> We are party to an employment agreement with Mr. Moore, dated as of August 21, 2007 (memorializing
an oral agreement dated December 15, 2006), that provides that he will serve as our Chairman of the Board and Chief Executive Officer
for an initial term of two years.&nbsp;&nbsp;For so long as Mr. Moore is employed by us, Mr. Moore is also entitled to nominate
one additional person to serve on our board of directors.&nbsp;&nbsp;Following the initial term of employment, the agreement was
renewed for a one year term, and is automatically renewable for additional successive one year terms, subject to our right and
Mr. Moore&rsquo;s right not to renew the agreement upon at least 90 days&rsquo; written notice prior to the expiration of any one
year term.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the terms of the agreement, Mr. Moore
was entitled to receive a base salary of $250,000 per year, subject to increase to $350,000 per year upon our successful raise
of at least $4.0 million (which condition was satisfied on November 1, 2007) and subject to annual review for increases by our
board of directors in its sole discretion. The agreement also provides that Mr. Moore is entitled to receive family health insurance
at no cost to him. Mr. Moore&rsquo;s employment agreement does not provide for the payment of a bonus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with our hiring of Mr. Moore,
we agreed to grant Mr. Moore up to 1,500,000 shares of our common stock, of which 750,000 shares were issued on November 1, 2007
upon our successful raise of $4.0 million and 750,000 shares were issued on June 29, 2010 upon our successful raise of an additional
$6.0 million (which condition was satisfied in January 2010). In addition, on December 15, 2006, we granted Mr. Moore options to
purchase 2,400,000 shares of our common stock. Each option is exercisable at $0.143 per share (which was equal to the closing sale
price of our common stock on December 15, 2006) and expires on December 15, 2016. The options vested in 24 equal monthly installments.
On July 21, 2009, we granted Mr. Moore options to purchase 2,500,000 shares of our common stock. Each option is exercisable at
$0.10 per share (which was equal to the closing sale price of our common stock on July 21, 2009) and expires on July 21, 2019.
One-third of these options vested on the grant date, one-third of these options vested on the first anniversary of the grant and
the remaining one-third will vest on the second anniversary of the grant. On October 14, 2010, we granted Mr. Moore options to
purchase 2,000,000 shares of our common stock. Each option is exercisable at $0.15 per share. These options vest over a three year
period beginning one year from the grant date. On November 8, 2011, we granted Mr. Moore options to purchase 4,000,000 shares of
our common stock. Each option is exercisable at $0.148 per share. These options vest over a three year period beginning one year
from the grant date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have also agreed to grant Mr. Moore options
to purchase an additional 1,500,000 shares of our common stock if the price of common stock (adjusted for any splits) is equal
to or greater than $0.40 for 40 consecutive business days.&nbsp;&nbsp;Pursuant to the terms of his employment agreement, all options
will be awarded and vested upon a merger of the company which is a change of control or a sale of the company while Mr. Moore is
employed.&nbsp;&nbsp;In addition, if Mr. Moore&rsquo;s employment is terminated by us, Mr. Moore is entitled to receive severance
payments equal to one year&rsquo;s salary at the then current compensation level.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mr. Moore has agreed to refrain from engaging
in certain activities that are competitive with us and our business during his employment and for a period of 12 months thereafter
under certain circumstances.&nbsp;&nbsp;In addition, Mr. Moore is subject to a non-solicitation provision for 12 months after termination
of his employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Rothman Employment Agreement and Option
Agreements.</I> &nbsp;&nbsp;We previously entered into an employment agreement with Dr. Rothman, Ph.D., dated as of March 7, 2005,
that provided that he would serve as our Vice President of Clinical Development for an initial term of one year.&nbsp;&nbsp;Dr.
Rothman&rsquo;s current salary is $305,000, consisting of $275,000 in cash and $30,000 in stock, payable in our common stock, based
on the average closing stock price for such six month period.&nbsp;&nbsp;While the employment agreement has expired and has not
been formally renewed in accordance with the agreement, Dr. Rothman remains employed by us and is currently our Executive V.P.
of Clinical and Scientific Operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, on March 1, 2005, we granted
Dr. Rothman options to purchase 360,000 shares of our common stock. Each option is exercisable at $0.287 per share (which was equal
to the closing sale price of our common stock on March 1, 2005) and expires on March 1, 2015. All of these options have vested.
On March 29, 2006, we granted Dr. Rothman options to purchase 150,000 shares of our common stock. Each option is exercisable at
$0.26 per share (which was equal to the closing sale price of our common stock on March 29, 2006) and expires on March 29, 2016.
One-fourth of these options vested on the first anniversary of the grant date, and the remaining vest in 12 equal quarterly installments.
On February 15, 2007, we granted Dr. Rothman options to purchase 300,000 shares of our common stock. Each option is exercisable
at $0.165 per share (which was equal to the closing sale price of our common stock on February 15, 2007) and expires on February
15, 2017. One-fourth of these options vested on the first anniversary of the grant date, and the remaining vest in 12 equal quarterly
installments. Pursuant to the terms of the 2005 plan, at least 75% of Dr. Rothman&rsquo;s options will be vested upon a merger
of the company which is a change of control or a sale of the company while Dr. Rothman is employed, unless the administrator of
the plan otherwise allows for all options to become vested. On July 21, 2009, we granted Mr. Rothman options to purchase 1,750,000
shares of our common stock. Each option is exercisable at $0.10 per share (which was equal to the closing sale price of our common
stock on July 21, 2009) and expires on July 21, 2019. One-third of these options vested on the grant date, one-third of these options
vested on the first anniversary of the grant and the remaining one-third will vest on the second anniversary of the grant. On October
14, 2010, we granted Dr. Rothman options to purchase 2,250,000 shares of our common stock. Each option is exercisable at $0.15
per share. These options vest over a three year period beginning one year from the grant date. On November 8, 2011, we granted
Dr. Rothman options to purchase 3,000,000 shares of our common stock. Each option is exercisable at $0.148 per share. These options
vest over a three year period beginning one year from the grant date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Dr. Rothman has agreed to refrain from engaging
in certain activities that are competitive with us and our business during his employment and for a period of 18 months thereafter
under certain circumstances.&nbsp;&nbsp;In addition, Dr. Rothman is subject to a non-solicitation provision for 18 months after
termination of his employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Rosenblum Compensation</I>.&nbsp;&nbsp;Mr.
Rosenblum serves as our Chief Financial Officer, Senior Vice President and Secretary.&nbsp;&nbsp;His current salary is $240,000
per annum, with a discretionary bonus of up to 30% of his base compensation awarded annually in March beginning in 2011.&nbsp;&nbsp;While
an employment agreement has not been formally entered into, Mr. Rosenblum remains employed by us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, on January 5, 2010, Mr. Rosenblum
was granted options to purchase 1,000,000 shares of the our common stock with an exercise price equal to $0.128.&nbsp;&nbsp;One
third of these options vested on the date of grant, one third vested on January 5, 2011, and one third vests on the second anniversary
of the date of grant.&nbsp;&nbsp;On October 14, 2010, we granted Mr. Rosenblum options to purchase 1,200,000 shares of our common
stock. Each option is exercisable at $0.15 per share. These options vest over a three year period beginning one year from the grant
date. On November 8, 2011, we granted Mr. Rosenblum options to purchase 2,100,000 shares of our common stock. Each option is exercisable
at $0.148 per share. These options vest over a three year period beginning one year from the grant date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Outstanding Equity Awards at Fiscal Year-End</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table provides information
about the number of outstanding equity awards held by our named executive officers at October 31, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 7pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; font-size: 7pt">
    <TD NOWRAP STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="13" NOWRAP STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center; font-size: 7pt"><FONT STYLE="font-size: 7pt"><B>Option
    Awards</B></FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="10" NOWRAP STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center; font-size: 7pt"><FONT STYLE="font-size: 7pt"><B>Stock
    Awards</B></FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font-size: 7pt">
    <TD NOWRAP STYLE="width: 20%; border-bottom: black 1pt solid; font-weight: bold; text-align: center; font-size: 7pt"><FONT STYLE="font-size: 7pt"><B>Name</B></FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: black 1pt solid; font-weight: bold; text-align: center; font-size: 7pt"><FONT STYLE="font-size: 7pt"><B>Number
    of </B><BR>
    <B>Securities </B><BR>
    <B>Underlying </B><BR>
    <B>Unexercised </B><BR>
    <B>Options (#) </B><BR>
    <B>Exercisable</B></FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: black 1pt solid; font-weight: bold; text-align: center; font-size: 7pt"><FONT STYLE="font-size: 7pt"><B>Number
    of </B><BR>
    <B>Securities </B><BR>
    <B>Underlying </B><BR>
    <B>Unexercised </B><BR>
    <B>Options (#) </B><BR>
    <B>Unexercisable</B></FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: black 1pt solid; font-weight: bold; text-align: center; font-size: 7pt"><FONT STYLE="font-size: 7pt"><B>Equity
    </B><BR>
    <B>Incentive </B><BR>
    <B>Plan Awards: </B><BR>
    <B>Number of </B><BR>
    <B>Securities </B><BR>
    <B>Underlying </B><BR>
    <B>Unexercised </B><BR>
    <B>Unearned </B><BR>
    <B>Options (#)</B></FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: black 1pt solid; font-weight: bold; text-align: center; font-size: 7pt"><FONT STYLE="font-size: 7pt"><B>Option
    </B><BR>
    <B>Exercise </B><BR>
    <B>Price ($)</B></FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: black 1pt solid; font-weight: bold; text-align: center; font-size: 7pt"><FONT STYLE="font-size: 7pt"><B>Option
    </B><BR>
    <B>Expiration </B><BR>
    <B>Date</B></FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: black 1pt solid; font-weight: bold; text-align: center; font-size: 7pt"><FONT STYLE="font-size: 7pt"><B>Number
    of </B><BR>
    <B>Shares or </B><BR>
    <B>Units of </B><BR>
    <B>Stock That </B><BR>
    <B>Have Not </B><BR>
    <B>Vested (#)</B></FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: black 1pt solid; font-weight: bold; text-align: center; font-size: 7pt"><FONT STYLE="font-size: 7pt"><B>Market
    </B><BR>
    <B>Value </B><BR>
    <B>of Shares</B><BR>
    <B>or </B><BR>
    <B>Units of </B><BR>
    <B>Stock </B><BR>
    <B>That Have </B><BR>
    <B>Not Vested </B><BR>
    <B>($)</B></FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: black 1pt solid; font-weight: bold; text-align: center; font-size: 7pt"><FONT STYLE="font-size: 7pt"><B>Equity
    </B><BR>
    <B>Incentive </B><BR>
    <B>Plan Awards: </B><BR>
    <B>Number of </B><BR>
    <B>Unearned </B><BR>
    <B>Shares, Units </B><BR>
    <B>or </B><BR>
    <B>Other Rights </B><BR>
    <B>That Have</B><BR>
    <B>Not </B><BR>
    <B>Vested (#)</B></FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: black 1pt solid; font-weight: bold; text-align: center; font-size: 7pt"><FONT STYLE="font-size: 7pt"><B>Equity
    </B><BR>
    <B>Incentive </B><BR>
    <B>Plan Awards: </B><BR>
    <B>Market or </B><BR>
    <B>Payout </B><BR>
    <B>Value of </B><BR>
    <B>Unearned </B><BR>
    <B>Shares, </B><BR>
    <B>Units or Other </B><BR>
    <B>Rights That </B><BR>
    <B>Have </B><BR>
    <B>Not </B><BR>
    <B>Vested ($)</B></FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font-size: 7pt">
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">Thomas A. Moore</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 2,500,000</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">(1)</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 0.100</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">7/21/19</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&mdash;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 2,400,000</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 0.143</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">12/15/16</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 666,667</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 1,333,333</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">(2)</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 0.15</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">10/14/20</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">Dr. John Rothman</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 1,750,000</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">(3)</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 0.100</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">7/21/19</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 360,000</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 0.287</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">3/1/15</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 150,000</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 0.260</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">3/29/16</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 300,000</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">(4)</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 0.165</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">2/15/17</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; &mdash;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 750,000</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 1,500,000</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">(5)</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 0.15</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">10/14/20</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">Mark J. Rosenblum</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 666,666</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 333,334</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">(6)</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 0.1291</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">1/05/20</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 400,000</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 800,000</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">(7)</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp; 0.15</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">10/14/20</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">(1)</TD>
    <TD STYLE="width: 95%">Of these options, approximately 833,333 became exercisable on July 21, 2009, approximately 833,333 became exercisable on July 21, 2010 and approximately 833,333 became exercisable on July 21, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(2)</TD>
    <TD>Of these options, approximately 666,666 became exercisable on October 14, 2011, approximately 666,667 will become exercisable on October 14, 2012 and approximately 666,667 will become exercisable on October 14, 2013.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(3)</TD>
    <TD>Of these options, approximately 583,333 became exercisable on July 21, 2009, approximately 583,333 became exercisable on July 21, 2010 and approximately 583,333 became exercisable on July 21, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(4)</TD>
    <TD>Of these options, 75,000 became exercisable on February 15, 2008, 18,750 became exercisable in each quarter from the quarter ended April 30, 2008 through the quarter ended October 31, 2010, and 18,750 became exercisable on February 15, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(5)</TD>
    <TD>Of these options, 750,000 became exercisable on October 14, 2011, 750,000 will become exercisable on October 14, 2012 and 750,000 will become exercisable on October 14, 2013.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">(6)</TD>
    <TD STYLE="width: 95%">Of these options, 333,333 became exercisable on January 5, 2010, 333,333 became exercisable on January 5, 2011 and 333,334 became exercisable on January 5, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(7)</TD>
    <TD>Of these options, 400,000 became exercisable on October 14, 2011, 400,000 will become exercisable on October 14, 2012 and 400,000 will become exercisable on October 14, 2013.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Director Compensation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">All of our non-employee directors earn a
combination of cash compensation and awards of shares of our common stock.&nbsp;&nbsp;Each non-employee director (other than Mr.
Berman) earns 6,000 shares of our common stock per quarter. Additionally, each non-employee director earns $2,000 for each board
meeting attended in person and $750 for each telephonic board meeting. In addition, each member of a committee of the Board earns
$2,000 per meeting attended in person held on days other than board meeting days and $750 for each telephonic committee meeting.
In addition, Mr. Berman, earns $2,000 a month in shares of our common stock based on the average closing price of our common stock
for the preceding month.&nbsp;&nbsp;The non-employee director compensation that was earned for the twelve months ended October
31, 2011, was not paid or issued. Our employee director does not receive any compensation for his services as a director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The table below summarizes the compensation
that was earned by our non-employee directors for fiscal 2011. As none of our non-employee directors received non-equity incentive
plan compensation or nonqualified deferred compensation earnings during fiscal 2011, we have omitted those columns from the table.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 75%; font: 10pt Times New Roman, Times, Serif; margin-left: 1in">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Name</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fees <BR> Earned <BR> or&nbsp;Paid <BR> in&nbsp;Cash <BR> ($)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Stock <BR> Awards <BR> ($)(1)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option <BR> Awards <BR> ($)(1)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">All&nbsp;other <BR> Compensation <BR> ($)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total <BR> ($)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 35%; text-align: left">Roni A. Appel</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">5,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">3,879</TD><TD STYLE="width: 1%; text-align: left">(2)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">8,879</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Dr. James Patton</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,750</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,879</TD><TD STYLE="text-align: left">(2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,629</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Dr. Thomas McKearn</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,879</TD><TD STYLE="text-align: left">(2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,879</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Richard Berman</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,000</TD><TD STYLE="text-align: left">(3)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,250</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">(1)</TD>
    <TD STYLE="width: 95%">The amounts shown in this column represent the fair value on grant date in accordance with ASC 718 using the assumptions described under Stock Compensation in Note 2 to our financial statements included elsewhere in this prospectus.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(2)</TD>
    <TD>Represents the grant date fair value of 6,000 shares of our common stock a quarter earned (but not paid or issued) if the member attends at least 75% of the meetings annually.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(3)</TD>
    <TD>Based on $24,000 of compensation in the form of shares of our common stock earned but not issued to date.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>2004 Stock Option Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In November 2004, our board of directors
adopted and our stockholders approved the 2004 Stock Option Plan, which we refer to as the 2004 plan.&nbsp;&nbsp;The 2004 plan
provides for the grant of options to purchase up to 2,381,525 shares of our common stock to employees, officers, directors and
consultants.&nbsp;&nbsp;Options may be either &ldquo;incentive stock options&rdquo; or non-qualified options under the Federal
tax laws.&nbsp;&nbsp;Incentive stock options may be granted only to our employees, while non-qualified options may be issued, in
addition to employees, to non-employee directors and consultants.&nbsp;&nbsp;As of November 5, 2012, all options to purchase
shares of our common stock have been granted under the 2004 plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The 2004 plan is administered by &ldquo;disinterested
members&rdquo; of our board of directors or the compensation committee, who determine, among other things, the individuals who
will receive options, the time period during which the options may be partially or fully exercised, the number of shares of common
stock issuable upon the exercise of each option and the option exercise price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Subject to a number of exceptions, the exercise
price per share of common stock subject to an incentive option may not be less than the fair market value per share of common stock
on the date the option is granted.&nbsp;&nbsp;The per share exercise price of our common stock subject to a non-qualified option
may be established by our board of directors, but will not, however, be less than 85% of the fair market value per share of common
stock on the date the option is granted.&nbsp;&nbsp;The aggregate fair market value of common stock for which any person may be
granted incentive stock options which first become exercisable in any calendar year may not exceed $100,000 on the date of grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">No stock option may be transferred by an
optionee other than by will or the laws of descent and distribution, and, during the lifetime of an optionee, the option will be
exercisable only by the optionee.&nbsp;&nbsp;In the event of termination of employment or engagement other than by death or disability,
the optionee will have no more than three months after such termination during which the optionee will be entitled to exercise
the option to the extent vested at termination, unless otherwise determined by our board of directors.&nbsp;&nbsp;Upon termination
of employment or engagement of an optionee by reason of death or permanent and total disability, the optionee&rsquo;s options remain
exercisable for one year to the extent the options were exercisable on the date of such termination.&nbsp;&nbsp;No similar limitation
applies to non-qualified options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We must grant options under the 2004 plan
within ten years from the effective date of the 2004 plan.&nbsp;&nbsp;The effective date of the 2004 plan was November 12, 2004.&nbsp;&nbsp;Subject
to a number of exceptions, holders of incentive stock options granted under the 2004 plan cannot exercise these options more than
ten years from the date of grant.&nbsp;&nbsp;Options granted under the 2004 plan generally provide for the payment of the exercise
price in cash and may provide for the payment of the exercise price by delivery to us of shares of common stock already owned by
the optionee having a fair market value equal to the exercise price of the options being exercised, or by a combination of these
methods.&nbsp;&nbsp;Therefore, if it is provided in an optionee&rsquo;s options, the optionee may be able to tender shares of common
stock to purchase additional shares of common stock and may theoretically exercise all of his stock options with no additional
investment other than the purchase of his original shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Any unexercised options that expire or that
terminate upon an employee&rsquo;s ceasing to be employed by us become available again for issuance under the 2004 plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of September 27, 2011, the date on which
the Advaxis, Inc. 2011 Omnibus Incentive Plan was approved by our shareholders, no further awards may be made under the 2004 plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>2005 Stock Option Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In June 2006 our board of directors adopted,
and on June 6, 2006 our stockholders approved, the 2005 Stock Option Plan, which we refer to as the 2005 plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The 2005 plan provides for the grant of
options to purchase up to 5,600,000 shares of our common stock to employees, officers, directors and consultants.&nbsp;&nbsp;Options
may be either &ldquo;incentive stock options&rdquo; or non-qualified options under the Federal tax laws.&nbsp;&nbsp;Incentive stock
options may be granted only to our employees, while non-qualified options may be issued to non-employee directors, consultants
and others, as well as to our employees.&nbsp;&nbsp;As of November 5, 2012, all options to purchase shares of our common stock
have been granted under the 2005 plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The 2005 plan is administered by &ldquo;disinterested
members&rdquo; of our board of directors or the compensation committee, who determine, among other things, the individuals who
will receive options, the time period during which the options may be partially or fully exercised, the number of shares of common
stock issuable upon the exercise of each option and the option exercise price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Subject to a number of exceptions, the exercise
price per share of common stock subject to an incentive option may not be less than the fair market value per share of common stock
on the date the option is granted.&nbsp;&nbsp;The per share exercise price of our common stock subject to a non-qualified option
may be established by our board of directors, but will not, however, be less than 85% of the fair market value per share of common
stock on the date the option is granted.&nbsp;&nbsp;The aggregate fair market value of common stock for which any person may be
granted incentive stock options which first become exercisable in any calendar year may not exceed $100,000 on the date of grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Except when agreed to by our board of directors
or the administrator of the 2005 plan, no stock option may be transferred by an optionee other than by will or the laws of descent
and distribution, and, during the lifetime of an optionee, the option will be exercisable only by the optionee.&nbsp;&nbsp;In the
event of termination of employment or engagement other than by death or disability, the optionee will have no more than three months
after such termination during which the optionee will be entitled to exercise the option, unless otherwise determined by our board
of directors.&nbsp;&nbsp;Upon termination of employment or engagement of an optionee by reason of death or permanent and total
disability, the optionee&rsquo;s options remain exercisable for one year to the extent the options were exercisable on the date
of such termination.&nbsp;&nbsp;No similar limitation applies to non-qualified options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We must grant options under the 2005 plan
within ten years from the effective date of the 2005 plan.&nbsp;&nbsp;The effective date of the 2005 plan was January 1, 2005.&nbsp;&nbsp;Subject
to a number of exceptions, holders of incentive stock options granted under the 2005 plan cannot exercise these options more than
ten years from the date of grant.&nbsp;&nbsp;Options granted under the 2005 plan generally provide for the payment of the exercise
price in cash and may provide for the payment of the exercise price by delivery to us of shares of common stock already owned by
the optionee having a fair market value equal to the exercise price of the options being exercised, or by a combination of these
methods.&nbsp;&nbsp;Therefore, if it is provided in an optionee&rsquo;s options, the optionee may be able to tender shares of common
stock to purchase additional shares of common stock and may theoretically exercise all of his stock options with no additional
investment other than the purchase of his original shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Any unexercised options that expire or that
terminate upon an employee&rsquo;s ceasing to be employed by us become available again for issuance under the 2005 plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of September 27, 2011, the date on which
the Advaxis, Inc. 2011 Omnibus Incentive Plan was approved by our shareholders, no further awards may be made under the 2005 plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>2009 Stock Option Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our board of directors adopted the 2009
Stock Option Plan effective July 21, 2009, and recommended that it be submitted to our shareholders for their approval at the next
annual meeting. On April 23, 2010, our board of directors approved and adopted, and on June 1, 2010 our stockholders approved,
the amended and restated 2009 Stock Option Plan, which we refer to as the 2009 plan. An aggregate of 20,000,000 shares of our common
stock (subject to adjustment by the compensation committee) are reserved for issuance upon the exercise of options granted under
the 2009 plan. As of September 27, 2011, the date on which the Advaxis, Inc. 2011 Omnibus Incentive Plan was approved by our shareholders,
no further awards may be made under the 2009 plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The 2009 plan is to be administered by the
compensation committee of our board of directors; provided, however, that except as otherwise expressly provided in the 2009 plan,
our board of directors may exercise any power or authority granted to the compensation committee under the 2009 plan. Subject to
the terms of the 2009 plan, the compensation committee is authorized to select eligible persons to receive options, determine the
type, number and other terms and conditions of, and all other matters relating to, options, prescribe option agreements (which
need not be identical for each participant), and the rules and regulations for the administration of the 2009 plan, construe and
interpret the 2009 plan and option agreements, correct defects, supply omissions or reconcile inconsistencies therein, and make
all other decisions and determinations as the compensation committee may deem necessary or advisable for the administration of
the 2009 plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The maximum number of shares of common stock
to which options may be granted to any one individual under the 2009 plan is 6,000,000 (subject to adjustment by the compensation
committee).&nbsp;&nbsp;The shares acquired upon exercise of options granted under the 2009 plan will be authorized and issued shares
of our common stock.&nbsp;&nbsp;Our shareholders will not have any preemptive rights to purchase or subscribe for any common stock
by reason of the reservation and issuance of common stock under the 2009 plan.&nbsp;&nbsp;If any option granted under the 2009
plan should expire or terminate for any reason other than having been exercised in full, the unpurchased shares subject to that
option will again be available for purposes of the 2009 plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The persons eligible to receive awards under
the 2009 plan are the officers, directors, employees, consultants and other persons who provide services to us or any related entity.&nbsp;&nbsp;An
employee on leave of absence may be considered as still in our or a related entity&rsquo;s employ for purposes of eligibility for
participation in the 2009 plan.&nbsp;&nbsp;All options granted under the 2009 plan must be evidenced by a written agreement.&nbsp;&nbsp;The
agreement will contain such terms and conditions as the compensation committee shall prescribe, consistent with the 2009 plan,
including, without limitation, the exercise price, term and any restrictions on the exercisability of the options granted.&nbsp;&nbsp;For
any option granted under the 2009 plan, the exercise price per share of common stock may be any price determined by the compensation
committee; however, the exercise price per share of any incentive stock option may not be less than the fair market value of the
common stock on the date such incentive stock option is granted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The compensation committee may permit the
exercise price of an option to be paid for in cash, by certified or official bank check or personal check, by money order, with
already owned shares of common stock that have been held by the optionee for at least six (6) months (or such other shares as we
determine will not cause us to recognize for financial accounting purposes a charge for compensation expense), the withholding
of shares of common stock issuable upon exercise of the option, by delivery of a properly executed exercise notice together with
such documentation as shall be required by the compensation committee (or, if applicable, the broker) to effect a cashless exercise,
or a combination of the above.&nbsp;&nbsp;If paid in whole or in part with shares of already owned common stock, the value of the
shares surrendered is deemed to be their fair market value on the date the option is exercised.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">No incentive stock option, and unless the
prior written consent of our compensation committee is obtained (which consent may be withheld for any reason) and the transaction
does not violate the requirements of Rule 16b-3 of the Exchange Act, no non-qualified stock option granted under the 2009 plan
is assignable or transferable, other than by will or by the laws of descent and distribution.&nbsp;&nbsp;During the lifetime of
an optionee, an option is exercisable only by him or her, or in the case of a non-qualified stock option, by his or her permitted
assignee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The expiration date of an option under the
2009 plan will be determined by our compensation committee at the time of grant, but in no event may such an option be exercisable
after 10 years from the date of grant.&nbsp;&nbsp;An option may be exercised at any time or from time to time or only after a period
of time in installments, as determined by our compensation committee.&nbsp;&nbsp;Our compensation committee may in its sole discretion
accelerate the date on which any option may be exercised. Each outstanding option granted under the 2009 plan may become immediately
fully exercisable in the event of certain transactions, including certain changes in control of us, certain mergers and reorganizations,
and certain dispositions of substantially all our assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Unless otherwise provided in the option
agreement, the unexercised portion of any option granted under the 2009 plan shall automatically be terminated (a) three months
after the date on which the optionee&rsquo;s employment is terminated for any reason other than (i) cause (as defined in the 2009
plan), (ii) mental or physical disability, or (iii) death; (b) immediately upon the termination of the optionee&rsquo;s employment
for cause; (c) one year after the date on which the optionee&rsquo;s employment is terminated by reason of mental or physical disability;
or (d) one year after the date on which the optionee&rsquo;s employment is terminated by reason of optionee&rsquo;s death, or if
later, three months after the date of optionee&rsquo;s death if death occurs during the one year period following the termination
of the optionee&rsquo;s employment by reason of mental or physical disability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Unless earlier terminated by our board,
the 2009 plan will terminate at the earliest of (a) such time as no shares of common stock remain available for issuance under
the 2009 plan, (b) termination of the 2009 plan by our board, or (c) the tenth anniversary of the effective date of the 2009 plan.&nbsp;&nbsp;Options
outstanding upon expiration of the 2009 plan shall remain in effect until they have been exercised or terminated, or have expired.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>2011 Omnibus Incentive Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our board of directors adopted the 2011
Omnibus Incentive Plan on August 22, 2011, and recommended that it be submitted to our shareholders for their approval at the next
annual meeting.&nbsp;&nbsp;On September 27, 2011, our stockholders approved the 2011 Omnibus Incentive Plan, which we refer to
as the 2011 plan.&nbsp;On June 28, 2012, our board of directors adopted an amendment to the 2011 plan, subject to stockholder approval,
to increase the number of shares covered by, and reserved for issuance under, the 2011 plan from 20,000,000 shares to 65,000,000
shares. On August 13, 2012, our stockholders approved the amendment to the 2011 plan. An aggregate of 65,000,000 shares of our
common stock (subject to adjustment by the compensation committee) are reserved and available for delivery under the 2011 plan.&nbsp;&nbsp;During
November 2011, we granted options to purchase 17,540,000 shares of our common stock from the 2011 plan to our employees, officers
and directors. As of November 5, 2012, 47,460,000 shares of our common stock are available for grant under the 2011 plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Upon receiving stockholder approval of the
2011 plan on September 27, 2011, no further awards were permitted to be made under the 2004 plan, the 2005 plan or the 2009 plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During any 12-month period, no participant
in the 2011 plan may be granted (i) stock options or stock appreciation rights with respect to more than 4,000,000 shares of our
common stock, or (ii) shares of restricted stock, restricted stock units, performance shares and other stock based-awards with
respect to more than 4,000,000 shares of our common stock. The maximum amount that may be paid out as performance units with respect
to any 12-month performance period is $2,500,000 (pro-rated for any 12-month performance period that is less than 12 months), and
with respect to any performance period that is more than 12 months, $2,000,000 multiplied by the number of full 12 month periods
that are in the performance period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Committee, as defined below, is authorized
to adjust the limitations described above and is authorized to adjust outstanding awards (including adjustments to exercise prices
of options and other affected terms of awards) in the event that a dividend or other distribution, recapitalization, forward or
reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, share exchange or other similar corporate
transaction or event affects our common stock so that an adjustment is appropriate. The Committee is also authorized to adjust
performance conditions and other terms of awards in response to these kinds of events or in response to changes in applicable laws,
regulations or accounting principles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The persons eligible to receive awards under
the 2011 plan are the officers, directors, employees, consultants and other persons who provide services to us on a full-time basis.
The foregoing notwithstanding, only our full-time employees, or any of our parent corporations or subsidiary corporations, shall
be eligible for purposes of receiving any incentive stock options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The 2011 plan is to be administered by a
committee designated by our board of directors consisting of not less than two directors (the &ldquo;Committee&rdquo;), provided,
however, that except as otherwise expressly provided in the 2011 plan, our board of directors may exercise any power or authority
granted to the Committee under the 2011 plan. Subject to the terms of the 2011 plan, the Committee is authorized to select eligible
persons to receive awards, determine the type, number and other terms and conditions of, and all other matters relating to, awards,
prescribe award agreements, and the rules and regulations for the administration of the 2011 plan, construe and interpret the 2011
plan and award agreements, correct defects, supply omissions or reconcile inconsistencies therein, and make all other decisions
and determinations as the Committee may deem necessary or advisable for the administration of the 2011 plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Committee is authorized to grant stock
options, including both incentive stock options and non-qualified stock options, and stock appreciation rights entitling the participant
to receive the amount by which the fair market value of a share of our common stock on the date of exercise exceeds the grant price
of the stock appreciation right. The maximum term of each option or stock appreciation right, the times at which each option or
stock appreciation right will be exercisable, and provisions requiring forfeiture of unexercised options or stock appreciation
rights at or following termination of employment generally are fixed by the Committee, except that no option or stock appreciation
right may have a term exceeding ten years. Methods of exercise and settlement and other terms of the options and stock appreciation
right are determined by the Committee. The Committee, thus, may permit the exercise price of options awarded under the 2011 plan
to be paid in cash, shares, other awards or other property (including loans to participants).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Committee is authorized to grant restricted
stock and restricted stock units. Restricted stock is a grant of shares of our common stock which may not be sold or disposed of,
and which shall be subject to such risks of forfeiture and other restrictions as the Committee may impose. An award of restricted
stock units confers upon a participant the right to receive shares of our common stock or cash equal to the fair market value of
the specified number of shares of our common stock covered by the restricted stock units at the end of a specified deferral period,
subject to such risks of forfeiture and other restrictions as the Committee may impose. Prior to settlement, an award of restricted
stock units carries no voting or dividend rights or other rights associated with share ownership, although dividend equivalents
may be granted, as discussed below.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Committee is authorized to grant dividend
equivalents conferring on participants the right to receive, currently or on a deferred basis, cash, shares of our common stock,
other awards or other property equal in value to dividends paid on a specific number of shares of our common stock or other periodic
payments. Dividend equivalents may be granted alone or in connection with another award, may be paid currently or on a deferred
basis and, if deferred, may be deemed to have been reinvested in additional shares of our common stock, awards or otherwise as
specified by the Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Committee is authorized to grant shares
of our common stock as a bonus free of restrictions, or to grant shares of our common stock or other awards in lieu of our obligations
to pay cash under the 2011 plan or other plans or compensatory arrangements, subject to such terms as the Committee may specify.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Committee or our board of directors
is authorized to grant awards that are denominated or payable in, valued by reference to, or otherwise based on or related to shares
of our common stock. The Committee determines the terms and conditions of such awards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Committee is authorized to grant performance
awards to participants on terms and conditions established by the Committee. The performance criteria to be achieved during any
performance period and the length of the performance period are determined by the Committee upon the grant of the performance award.
Performance awards may be settled by delivery of cash, shares or other property, or any combination thereof, as determined by the
Committee. The Committee may, in its discretion, determine that the amount payable as a performance award will be reduced from
the amount of any potential award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Awards may be settled in the form of cash,
shares of our common stock, other awards or other property, in the discretion of the Committee. The Committee may require or permit
participants to defer the settlement of all or part of an award in accordance with such terms and conditions as the Committee may
establish, including payment or crediting of interest or dividend equivalents on deferred amounts, and the crediting of earnings,
gains and losses based on deemed investment of deferred amounts in specified investment vehicles. The Committee may condition any
payment relating to an award on the withholding of taxes and may provide that a portion of any shares of our common stock or other
property to be distributed will be withheld (or previously acquired shares of our common stock or other property be surrendered
by the participant) to satisfy withholding and other tax obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Committee may, in its discretion, accelerate
the exercisability, the lapsing of restrictions or the expiration of deferral or vesting periods of any award, and such accelerated
exercisability, lapse, expiration and if so provided in the award agreement or otherwise determined by the Committee, vesting shall
occur automatically in the case of a &ldquo;change in control&rdquo; of the Company, as defined in the 2011 plan (including the
cash settlement of stock appreciation rights which may be exercisable in the event of a change in control).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our board of directors may amend, alter,
suspend, discontinue or terminate the 2011 plan or the Committee&rsquo;s authority to grant awards without further stockholder
approval, except that stockholder approval must be obtained for any amendment or alteration if such approval is required by law
or regulation or under the rules of any stock exchange or quotation system on which shares of our common stock are then listed
or quoted. Thus, stockholder approval may not necessarily be required for every amendment to the 2011 plan which might increase
the cost of the 2011 plan or alter the eligibility of persons to receive awards. Stockholder approval will not be deemed to be
required under laws or regulations, such as those relating to incentive stock options, that condition favorable treatment of participants
on such approval, although our board of directors may, in its discretion, seek stockholder approval in any circumstance in which
it deems such approval advisable. Unless earlier terminated by our board of directors, the 2011 plan will terminate at the earliest
of (a) such time as no shares of our common stock remain available for issuance under the 2011 plan, (b) termination of the 2011
plan by our board of directors, or (c) the tenth anniversary of the effective date of the 2011 plan. Awards outstanding upon expiration
of the 2011 plan shall remain in effect until they have been exercised or terminated, or have expired.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>2011 Employee Stock Purchase Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our board of directors adopted the Advaxis,
Inc. 2011 Employee Stock Purchase Plan, which we refer to as the ESPP, on August 22, 2011, and our stockholders approved the ESPP
on September 27, 2011. The ESPP becomes effective November 1, 2011. On December 14, 2011, our board of directors approved an amendment
to the ESPP effective as of October 31, 2011. The ESPP was amended to change the first offering date that our employees were eligible
to participate in the ESPP from November 1, 2011 to December 30, 2011. 5,000,000 shares of our common stock are reserved for issuance
under the ESPP. As of November 5, 2012, approximately 4,793,000 shares of our common stock are available for grant under the
ESPP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The compensation committee of our board
of directors will administer the ESPP. The ESPP vests the compensation committee with the authority to interpret the ESPP, to prescribe,
amend and rescind rules and regulations relating to the ESPP, and to make all other determinations necessary or advisable for the
administration of the ESPP; however, our board of directors may exercise that authority in lieu of the compensation committee.
The ESPP is required to be administered in a manner consistent with Rule 16b-3 of the Exchange Act and subject to the provisions
of Section 423 of the Internal Revenue Code.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our employees that have been designated
by our board of directors as eligible to participate in the ESPP are eligible to become participants if they have been employed
by us or any of our subsidiaries for six months and are scheduled to work at least 20 hours per week and more than five months
per calendar year. Individuals who satisfy these requirements after November 1, 2011, would be eligible to become participants
on the February 1, May 1, August 1, or November 1, as the case may be, immediately following their completion of these eligibility
requirements. These eligible employees may become participants in the ESPP by completing an enrollment agreement and filing it
with us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The ESPP generally is implemented through
a series of 24-month-long offering periods, beginning on November 1 and ending on the October 31 that is 24 months later. Shares
of our common stock are available for purchase under the ESPP on periodic exercise dates within each offering period. Exercise
dates are the last business days in January, April, July and October during each offering period. On the first business day of
each offering period (or if later, the first day within the offering period on which a participant becomes eligible to participate),
a participant is granted the option to purchase shares of our common stock on the exercise dates within that offering period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the share price is ever lower on an exercise
date than it was on the first business day of the offering period in which that exercise date falls, then the offering period in
progress ends immediately after the close of trading on that exercise date, and a new offering period begins on the next February
1, May 1, August 1 or November 1, as the case may be, and extends for a new 24-month-long period ending on January 31, April 30,
July 31 or October 31, as the case may be.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">No participant is eligible for the grant
of any option under the ESPP if, immediately after the grant, the participant would own, directly or indirectly, stock possessing
5% or more of the total combined voting power or value of all classes of our stock or of any of our subsidiaries. Additionally,
no participant may be granted any option that would permit the participant to buy our common stock that accrues at a rate that
exceeds $25,000 (based on the fair market value of our common stock on the date the option is granted) for each calendar year in
which such option is outstanding at any time. Finally, no participant may purchase more than 166,666 shares of our common stock
on any one exercise date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The enrollment agreement that each participant
must submit authorizes after-tax payroll deductions from the participant&rsquo;s compensation during each payroll period. Participants
may elect a payroll deduction amount of at least 1%, and up to 15%, of their compensation. A participant may change or terminate
his or her payroll deductions at any time during an offering period, but may only begin payroll deductions on specified dates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The exercise price per share at which shares
are sold in an offering under the ESPP is the lower of (i) 85% of the fair market value of a share of our common stock on the first
day of the offering period or, (ii) 85% of the fair market value of a share of our common stock on the exercise date. Unless otherwise
determined by the compensation committee, the term fair market value is defined to mean the ratio of the value traded (the price
of a share of our common stock multiplied by number of shares of common stock traded) to total volume traded over the 10-day period
ending on the valuation date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A participant may withdraw from participation
in the ESPP at any time by completing a withdrawal form and delivering it to us. If a participant&rsquo;s employment terminates
for any reason, he or she is treated as having withdrawn from the ESPP. All options granted to the participant under the ESPP,
but not yet exercised, automatically terminate, and no further purchases of common stock are made for the participant&rsquo;s account
following the effectiveness of the participant&rsquo;s withdrawal. After a participant withdraws, or is treated as having withdrawn,
the participant is not permitted to participate again in the ESPP until the next entry date that is at least six months after his
or her date of withdrawal. In order to rejoin the ESPP, a former participant must submit a new enrollment agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The ESPP will terminate following the last
exercise date before 10th anniversary of effective date, or if sooner, on the date on which all shares reserved for issuance under
the ESPP have been sold. Additionally, our board of directors may terminate the ESPP earlier. Our board of directors or the compensation
committee may amend the ESPP at any time, provided that no amendment may change any option in a way that adversely affects the
rights of the holder of the option, no amendment may in any way cause rights issued under the ESPP to fail to meet the requirements
for employee stock purchase plans under Section 423 of the Code, and no amendment may cause the ESPP to fail to comply with Rule
16b-3 under the Exchange Act. To the extent necessary to comply with Rule 16b-3 under the Exchange Act, Section 423 of the Code,
or any other applicable law or regulation, we will obtain shareholder approval of any such amendment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">5,000,000 shares of our common stock are
reserved for issuance under the ESPP. That amount will be increased each year by the lowest of (i) 500,000 shares, (ii) one percent
of all shares of common stock outstanding at the end of the previous year, or (iii) an amount determined by the board. If any option
granted under the ESPP expires or terminates for any reason without having been exercised in full, the unpurchased shares subject
to that option will again be available for issuance under the ESPP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The ESPP provides for appropriate adjustment
of the number of shares of common stock for which options may be granted, the number of shares subject to outstanding options and
the exercise price of outstanding options in the event of any increase or decrease in the number of issued and outstanding shares
of our common stock as a result of one or more reorganizations, restructurings, recapitalizations, reclassifications, stock splits,
reverse stock splits, or stock dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>STOCK OWNERSHIP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table sets forth certain information
with respect to the beneficial ownership of our common stock as of November 5, 2012 of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4.5%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 92.5%">each person who is known by us to be the beneficial owner of more than 5% of our outstanding common stock;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&middot;</TD>
    <TD>each of our directors;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&middot;</TD>
    <TD>each of our named executive officers; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&middot;</TD>
    <TD>all of our directors and executive officers as a group.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As used in the table below and elsewhere
in this prospectus, the term beneficial ownership with respect to our common stock consists of sole or shared voting power (which
includes the power to vote, or to direct the voting of shares of our common stock) or sole or shared investment power (which includes
the power to dispose, or direct the disposition of, shares of our common stock) through any contract, arrangement, understanding,
relationship or otherwise, including a right to acquire such power(s) during the 60 days following November 5, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Unless otherwise indicated in the footnotes
to this table, and subject to community property laws where applicable, we believe each of the stockholders named in this table
has sole voting and investment power with respect to the shares indicated as beneficially owned. Applicable percentages are based
on 396,938,817 shares of common stock outstanding as of November 5, 2012, adjusted as required by the rules promulgated by
the SEC. Unless otherwise indicated, the address for each of the individuals and entities listed in this table is 305 College Road
East, Princeton, New Jersey 08540.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 57%; font-weight: bold; text-align: center">Name&nbsp;and&nbsp;Address <BR> of&nbsp;Beneficial&nbsp;Owner</TD>
    <TD NOWRAP STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 21%; font-weight: bold; text-align: center">Number&nbsp;of<BR> Shares&nbsp;of&nbsp;our&nbsp;Common<BR> Stock <BR> Beneficially&nbsp;Owned</TD>
    <TD NOWRAP STYLE="width: 2%; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 17%; font-weight: bold; text-align: center">Percentage<BR> of&nbsp;Class<BR> Beneficially&nbsp;Owned</TD>
    <TD NOWRAP STYLE="width: 1%; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Thomas A. Moore</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">20,283,843</TD>
    <TD>(1)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">4.99</TD>
    <TD>%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Roni A. Appel</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">7,371,431</TD>
    <TD>(2)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1.8</TD>
    <TD>%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Richard Berman</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2,305,111</TD>
    <TD>(3)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">*</TD>
    <TD></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Dr. James Patton</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">4,016,259</TD>
    <TD>(4)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1.0</TD>
    <TD>%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Dr. Thomas McKearn</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,564,344</TD>
    <TD>(5)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">*</TD>
    <TD></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Dr. John Rothman</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">7,164,004</TD>
    <TD>(6)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1.8</TD>
    <TD>%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Mark J. Rosenblum</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">3,205,119</TD>
    <TD>(7)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">*</TD>
    <TD></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>All Current Directors and Executive Officers as a Group (7 people)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">45,910,111</TD>
    <TD>(8)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">11.4</TD>
    <TD>%</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">* Less than 1%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">(1)</TD>
    <TD STYLE="width: 95%">Represents 10,842,367 issued shares of our common stock, options to purchase 7,541,476 shares of our common stock exercisable within 60 days and warrants to purchase 1,900,000 shares of our common stock exercisable within 60 days. However, it excludes warrants to purchase 9,164,611 shares of our common stock and promissory notes convertible into 800,000 shares of our common stock, limited by a 4.99% beneficial ownership provision in the warrants and notes that would prohibit him from exercising any of such warrants or converting any such notes to the extent that upon such exercise or conversion he, together with his affiliates, would beneficially own more than 4.99% of the total number of shares of our common stock then issued and outstanding (unless Mr. Moore provides us with 61 days' notice of the holders waiver of such provisions).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(2)</TD>
    <TD>Represents 4,212,134 issued shares of our common stock, options to purchase 3,139,297 shares of our common stock exercisable within 60 days and 20,000 shares of our common stock earned but not yet issued.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(3)</TD>
    <TD>Represents 677,632 issued shares of our common stock, options to purchase 1,412,291 shares of our common stock exercisable within 60 days and 215,188 shares of our common stock earned but not yet issued.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(4)</TD>
    <TD>Represents 2,940,576 issued shares of our common stock, options to purchase 833,460 shares of our common stock
    exercisable within 60 days, warrants to purchase 222,223 shares of our common
    stock exercisable within 60 days and 20,000 shares earned but not yet issued.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">(5)</TD>
    <TD STYLE="width: 95%">Represents 299,290 issued shares of our common stock, options to purchase 1,245,054 shares of our common stock exercisable within 60 days and 20,000 shares of our common stock earned but not yet issued.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(6)</TD>
    <TD>Represents 275,775 issued shares of our common stock, options to purchase 5,051,524 shares of our common stock exercisable within 60 days and 1,836,705 shares of our common stock earned but not yet issued.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(7)</TD>
    <TD>Represents 716,261 issued shares of our common stock, options to purchase 2,488,858 shares of our common stock exercisable within 60 days.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(8)</TD>
    <TD>Represents an aggregate of 19,964,035 shares of our common stock, options to purchase 21,711,960 shares of our common stock exercisable within 60 days, warrants to purchase 2,122,223 shares of our common stock exercisable within 60 days, and 2,111,893 shares of our common stock earned but not yet issued.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our policy is to enter into transactions
with related parties on terms that, on the whole, are no more favorable, or no less favorable, than those available from unaffiliated
third parties.&nbsp;&nbsp;Based on our experience in the business sectors in which we operate and the terms of our transactions
with unaffiliated third parties, we believe that all of the transactions described below met this policy standard at the time they
occurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 22, 2008, we entered into a
note purchase agreement with our Chief Executive Officer, Thomas A. Moore, which we refer to as the Moore Note Purchase Agreement,
pursuant to which we agreed to sell to Mr. Moore, from time to time, one or more senior promissory notes, which we refer to as
the Moore Notes. On June 15, 2009, we amended the terms of the Moore Notes to increase the amounts available from $800,000 to $950,000
and to change the maturity date of the Moore Notes from June 15, 2009 to the earlier of January 1, 2010 or our next equity financing
resulting in gross proceeds to us of at least $6.0 million. On February 15, 2010, we agreed to amend the terms of the Moore Notes
such that (i) Mr. Moore had the option to elect to receive accumulated interest thereon on or after March 17, 2010 (which amounted
to approximately $130,000), (ii) we were to begin to make monthly installment payments of $100,000 on the outstanding principal
amount on April 15, 2010; provided, however, that the balance of the principal will be repaid in full on consummation of our next
equity financing resulting in gross proceeds to us of at least $6.0 million and (iii) we will retain $200,000 of the repayment
amount for investment in our next equity financing. In May 2010, we issued 1,176,471 shares of common stock to Mr. Moore (based
on a price of $0.17 per share) in satisfaction of $200,000 of Moore Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with a loan made by Mr. Moore
to us in the amount of $230,000, we agreed to further amend and restate the terms of the Moore Notes on March 17, 2011 to increase
the principal amount due by $230,000.&nbsp;&nbsp;Under the terms of the amended and restated Moore Notes: (i) the maturity date
is the earlier of (x) the date of consummation of an equity financing by us in an amount of $6.0 million or more and (y) the occurrence
of any event of default as defined in the Moore Notes, (ii) Mr. Moore may elect, at his option, to receive accumulated interest
thereon on or after April 15, 2011 (which amounted to approximately $91,000), (iii) we will make monthly installment payments of
$100,000 on the outstanding principal amount beginning on June 15, 2011, and (iv) we may retain, at the option of Mr. Moore, $200,000
of the repayment amount for investment in our next equity financing.&nbsp; In addition, Mr. Moore made a loan to us in the amount
of $65,000 in April 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Moore Notes bear interest at a rate
of 12% per annum, compounded quarterly, and may be prepaid in whole or in part at our option without penalty at any time prior
to maturity.&nbsp;&nbsp;In consideration of Mr. Moore&rsquo;s original agreement to purchase the Moore Notes, we agreed that concurrently
with an equity financing resulting in gross proceeds to us of at least $6.0 million, we will issue to Mr. Moore a warrant to purchase
our common stock, which will entitle Mr. Moore to purchase a number of shares of our common stock equal to one share per $1.00
invested by Mr. Moore in the purchase of the Moore Notes.&nbsp;&nbsp;The terms of these warrants were subsequently modified by
our board of directors based on the terms of the senior bridge financing increasing the number of shares underlying the warrant
from one share per $1.00 invested to two and one-half shares.&nbsp;&nbsp;The terms of these warrants were further modified by our
board of directors to increase the number of shares underlying the warrant from two and one-half shares per $1.00 invested to three
shares.&nbsp;&nbsp;The final terms are anticipated to contain the same terms and conditions as warrants issued to investors in
the subsequent financing (which are currently exercisable at $0.15 per share).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the period from September 22, 2008 through
May 11, 2011, Mr. Moore made loans to us in the aggregate amount of $1,372,985, making him eligible to receive warrants to purchase
4,118,956 shares of our common stock on the occurrence of certain events as set forth in the terms of the Moore Notes described
above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In an effort to reduce the number of the
warrants outstanding from our October 17, 2007 private placement, we have entered into exchange agreements with certain of the
holders of such warrants, including Mr. Moore, pursuant to which such holders received shares of our common stock and/or additional
warrants in amounts that were determined in such negotiations. As of November 5, 2012, we have exchanged October 2007 warrants
to purchase 39,690,911 shares of our common stock in return for 7,437,857 shares of our common stock and new warrants to purchase
21,040,303 shares of our common stock (which number includes warrants issued to Mr. Moore in exchange for his October 2007 warrants
as described below). The new warrants issued pursuant to the exchanges are identical to the October 2007 warrants, except that
such warrants do not contain any economic anti-dilution adjustment rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 29, 2011, Mr. Moore entered into
an exchange agreement, pursuant to which he received a new warrant to purchase 7,674,512 shares of our common stock in exchange
for (i) surrendering an October 2007 warrant to purchase 2,666,667 shares of our common stock (as described above) and (ii) amending
the Moore Note Purchase Agreement to terminate his right to receive warrants in connection with an equity financing, including
the equity financing we completed in May 2011, which otherwise would have permitted Mr. Moore to receive the aforementioned warrant
to purchase 4,118,956 shares of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the offering completed
in October 2011, we issued $470,588.24 of convertible promissory notes to Mr. Moore for a purchase price of $400,000.00. Additionally,
Mr. Moore received a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our
common stock issuable upon conversion of the convertible promissory note issued to Mr. Moore at an exercise price of $0.15 per
share. The convertible promissory note purchased in the offering completed in October 2011 by Mr. Moore was paid for in exchange
for the cancellation of $400,000.00 of outstanding indebtedness owed by us to Mr. Moore under the Moore Notes. As of November 5,
2012, approximately $238,000 in principal amount of Moore Notes was outstanding and payable to Mr. Moore. In connection with
the offering completed in October 2011, we also issued $58,823.53 of convertible promissory notes to an IRA account in the name
of our Chief Financial Officer, Mark J. Rosenblum, for a purchase price of $50,000.00. Additionally, Mr. Rosenblum received a warrant
to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable upon conversion
of the convertible promissory note issued to Mr. Rosenblum at an exercise price of $0.15 per share. The convertible promissory
notes purchased in the offering by Mr. Rosenblum were paid for in cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the May 2012 offering,
we issued $120,000 of convertible promissory notes to Mr. Moore for a purchase price of $90,000. Additionally, Mr. Moore received
a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable
upon conversion of the convertible promissory note issued to Mr. Moore at an exercise price of $0.15 per share. The convertible
promissory notes purchased in the May 2012 offering by Mr. Moore were paid for in cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: black">Effective May
14, 2012, we entered into an exchange agreement with Mr. Moore, pursuant to which Mr. Moore received approximately 5.4 million
shares of our common stock in exchange for (i) surrendering the existing notes held by Mr. Moore and surrendering warrants to purchase
an aggregate of approximately 1,568,627 shares of our common stock originally issued on October 31, 2011, and (ii) amending the
note purchase agreements between us and Mr. Moore, dated as of October 28, 2011</FONT>, to terminate (x) Mr. Moore&rsquo;s right
to liquidated damages if we fail for any reason to satisfy the current public information requirement under Rule 144(c) promulgated
under the Securities Act, (y) Mr. Moore&rsquo;s right to participate in any proposed or intended issuance or sale or exchange of
the our securities, and (z) the prohibition on our ability to effect, or enter into an agreement to effect, any issuance of our
securities for cash consideration involving a variable rate transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In June 2012, Mr. Moore loaned the Company
$50,000. As of November 5, 2012, the Company owed Mr. Moore an aggregate of approximately $558,000 in principal pursuant to
the multiple promissory notes described above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: black">Effective May
14, 2012, we entered into an exchange agreement with </FONT>Mr. Rosenblum<FONT STYLE="color: black">, pursuant to which </FONT>Mr.
Rosenblum<FONT STYLE="color: black"> received approximately 686,000 shares of our common stock in exchange for (i) surrendering
the existing notes held by Mr. Rosenblum and surrendering warrants to purchase an aggregate of approximately 196,000 shares of
our common stock originally issued on October 31, 2011, and (ii) amending the note purchase agreements between us and </FONT>Mr.
Rosenblum<FONT STYLE="color: black">, dated as of October 28, 2011</FONT>, to terminate (x) Mr. Rosenblum&rsquo;s right to liquidated
damages if we fail for any reason to satisfy the current public information requirement under Rule 144(c) promulgated under the
Securities Act, (y) Mr. Rosenblum&rsquo;s right to participate in any proposed or intended issuance or sale or exchange of the
our securities, and (z) the prohibition on our ability to effect, or enter into an agreement to effect, any issuance of our securities
for cash consideration involving a variable rate transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On June 8, 2012, Thomas A. Moore, our Chief
Executive Officer, waived our obligation to keep reserved from our authorized and available shares of common stock, such number
of shares of our common stock necessary to effect the exercise or conversion, as applicable, in full, of (i) warrants to purchase
an aggregate of 11,064,611 shares of our common stock and (ii) promissory notes convertible into 800,000 shares of our common stock.
This waiver expired on August 29, 2012, the date that we filed an amendment to our certificate of incorporation with the Secretary
of State of the State of Delaware to effect an increase to our authorized shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 5, 2012, in consideration for the
waiver described above, we entered into an exchange agreement with Mr. Moore, with an effective date of June 8, 2012, pursuant
to which Mr. Moore surrendered warrants to purchase an aggregate of approximately 11,064,611 shares of our common stock to us in
exchange for receiving warrants to purchase an aggregate of approximately 11,064,611 shares of our common stock that were not exercisable
and for which no shares of our common stock were reserved until we filed an amendment to our certificate of incorporation with
the Secretary of State of the State of Delaware to effect an increase to our authorized shares of common stock. Mr. Moore also
agreed pursuant to the exchange agreement not to convert the promissory notes convertible into 800,000 shares of our common stock
until the Company filed on amendment to its certificate of incorporation with the Secretary of State of the State of Delaware to
effect an increase to its authorized shares of common stock. In addition, certain of the warrants received in the exchange have
an extended expiration date which is two years following the date we obtained stockholder approval to increase our authorized shares
of common stock and filed an amendment to our certificate of incorporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 2, 2012, in a private placement
pursuant to a note purchase agreement, we issued Dr. James Patton, a member of our board of directors, a convertible promissory
note in the principal amount of $66,667 for a purchase price of $50,000. The Patton Note was issued with an original issue discount
of 25%. Dr. Patton paid $0.75 for each $1.00 of principal amount of the Patton Note purchased. The Patton Note is convertible into
shares of our common stock at a per share conversion price equal to $0.15. Additionally, Dr. Patton received a warrant to purchase
such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable upon conversion of
the Patton Note at an exercise price of $0.15 per share. The Patton Note and Patton Warrant also provide that on December 1, 2012,
solely to the extent the conversion price of the Patton Note or the exercise price of the Patton Warrant, as applicable, is less
than the Market Price (as defined in the Patton Note or the Patton Warrant, as applicable), such conversion price or exercise price,
as applicable, shall be reduced to such Market Price. The Patton Note matures on August 2, 2013. We may redeem the Patton Note
under certain circumstances. The Patton Warrant is exercisable at any time on or before August 2, 2017. The Patton Warrant may
be exercised on a cashless basis under certain circumstances. The Patton Note and the Patton Warrant each include a limitation
on conversion or exercise, as applicable, which provides that at no time will Dr. Patton be entitled to convert any portion of
the Patton Note or Patton Warrant to the extent that after such conversion or exercise, as applicable, Dr. Patton (together with
his affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock as of such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 25, 2012, in a private placement
pursuant to a note purchase agreement, we issued our affiliate Dr. Yvonne Paterson a convertible promissory note in the aggregate
principal amount of $100,000, for a purchase price of $100,000. The Paterson Note bears interest at a rate of 12%, compounded annually.
The Paterson Note is convertible into shares of our common stock at a conversion price equal to the arithmetic average of the five
lowest closing trading prices for the common stock during the 10 trading day period ending on the latest complete trading day prior
to the applicable conversion date. The Paterson Note matures one month from its issuance date. Additionally, Dr. Paterson will
receive a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock
issuable upon conversion of the Patterson Note at an exercise price equal to the conversion price then in effect. These warrants
have not yet been issued. The Paterson Warrant may be exercised on a cashless basis under certain circumstances. The Paterson Note
and the Paterson Warrant each include a limitation on conversion or exercise, as applicable, which provides that at no time will
Dr. Paterson be entitled to convert any portion of the Paterson Note or Paterson Warrant to the extent that after such conversion
or exercise, as applicable, Dr. Paterson (together with her affiliates) would beneficially own more than 4.99% of the outstanding
shares of the common stock as of such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 27, 2012, in a private placement pursuant to a note purchase agreement, we issued our employee
Christine French a convertible promissory note in the aggregate principal amount of $25,000, for a purchase price of $25,000. The
French Note bears interest at a rate of 12%, compounded annually. The French Note is convertible into shares of our common stock
at a conversion price equal to the arithmetic average of the five lowest closing trading prices for the common stock during the
10 trading day period ending on the latest complete trading day prior to the applicable conversion date. The French Note matures
one month from its issuance date. Additionally, Ms. French will receive a warrant to purchase such number of shares of our common
stock equal to 50% of such number of shares of our common stock issuable upon conversion of the French Note at an exercise price
equal to the conversion price then in effect. These warrants have not yet been issued. The French Warrant may be exercised on a
cashless basis under certain circumstances. The French Note and the French Warrant each include a limitation on conversion or exercise,
as applicable, which provides that at no time will Ms. French be entitled to convert any portion of the French Note or French Warrant
to the extent that after such conversion or exercise, as applicable, Ms. French (together with her affiliates) would beneficially
own more than 4.99% of the outstanding shares of the common stock as of such date.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DESCRIPTION OF OUR CAPITAL STOCK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At the date hereof, we are authorized by
our certificate of incorporation to issue an aggregate of 1,000,000,000 shares of common stock, par value $0.001 per share, and
5,000,000 shares of &ldquo;blank check&rdquo; preferred stock, par value $0.001 per share. As of November 5, 2012, there were
396,938,817 shares of common stock, no shares of Series A preferred stock and 740 shares of Series B preferred stock outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders of our common stock are entitled
to one vote for each share held of record on each matter submitted to a vote of stockholders.&nbsp;&nbsp;Holders of our common
stock do not have cumulative voting rights, which means that the holders of more than one half of the outstanding shares of common
stock, subject to the rights of the holders of the preferred stock, if any, can elect all of our directors, if they choose to do
so.&nbsp;&nbsp;In this event, the holders of the remaining shares of common stock would not be able to elect any directors.&nbsp;&nbsp;Except
as otherwise required by Delaware law, and subject to the rights of the holders of preferred stock, if any, all stockholder action
is taken by the vote of a majority of the outstanding shares of common stock voting as a single class present at a meeting of stockholders
at which a quorum consisting of a majority of the outstanding shares of common stock is present in person or proxy.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Subject to the prior rights of any class
or series of preferred stock which may from time to time be outstanding, if any, holders of our common stock are entitled to receive
ratably, dividends when, as, and if declared by our board of directors out of funds legally available for that purpose and, upon
our liquidation, dissolution, or winding up, are entitled to share ratably in all assets remaining after payment of liabilities
and payment of accrued dividends and liquidation preferences on the preferred stock, if any.&nbsp;&nbsp;Holders of our common stock
have no preemptive rights and have no rights to convert their common stock into any other securities. The outstanding common stock
is validly authorized and issued, fully-paid and nonassessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Common Stock in this Offering</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The 3,500,000 Commitment Fee Shares were
fully paid and are not liable for further call or assessment, and the 1,800,000 Maintenance Fee Shares and the shares issuable
under the Purchase Agreement offered in this prospectus when issued and paid for in accordance with the terms of the Purchase Agreement
will be fully paid and are not liable for further call or assessment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Preferred Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>General</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are authorized to issue up to 5,000,000
shares of &ldquo;blank check&rdquo; preferred stock.&nbsp;&nbsp;Preferred stock may be issued in one or more series and having
the rights, privileges and limitations, including voting rights, conversion privileges and redemption rights, as may, from time
to time, be determined by our board of directors.&nbsp;&nbsp;Preferred stock may be issued in the future in connection with acquisitions,
financings, or other matters as our board of directors deems appropriate.&nbsp;&nbsp;In the event that any shares of preferred
stock are to be issued, a certificate of designation containing the rights, privileges and limitations of such series of preferred
stock will be filed with the Secretary of State of the State of Delaware.&nbsp;&nbsp;The effect of such preferred stock is that,
subject to Federal securities laws and Delaware law, our board of directors alone, may be able to authorize the issuance of preferred
stock which could have the effect of delaying, deferring, or preventing a change in control of us without further action by the
stockholders, and may adversely affect the voting and other rights of the holders of our common stock.&nbsp;&nbsp;The issuance
of preferred stock with voting and conversion rights may also adversely affect the voting power of holders of our common stock,
including the loss of voting control to others.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our board of directors has authorized the
issuance of up to 1,000 shares of Series A Preferred Stock, $0.001 par value per share, none of which are outstanding as of the
date hereof, and up to 2,500 shares of Series B Preferred Stock, $0.001 par value per share, 740 shares of which are outstanding
as of the date hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Description of Series B Preferred Stock</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>The following description is qualified
in its entirety by the terms and conditions set forth in the certificate of designations of Preferences, Rights and Limitations
of Series B Preferred Stock attached as exhibit 4.3 to this registration statement, which we refer to as the Series B Certificate
of Designations. The following description may not contain all the information with respect to such Series B Preferred Stock important
to you. We encourage you to read the Series B Certificate of Designations attached as exhibit 4.3 to this registration statement.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders of Series B preferred stock will
be entitled to receive dividends, which will accrue in shares of Series B preferred stock on an annual basis at a rate equal to
10% per annum from the issuance date. Accrued dividends will be payable upon redemption of the Series B preferred stock or upon
the liquidation, dissolution or winding up of our company. The Series B preferred stock ranks, with respect to dividend rights
and rights upon liquidation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4.5%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 92.5%">senior to our common stock and any other class or series of preferred stock (other than Series A preferred stock or any class or series of preferred stock that we intend to cause to be listed for trading or quoted on Nasdaq, NYSE Amex or the New York Stock Exchange);</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&nbsp;</TD>
    <TD STYLE="font-style: italic">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&middot;</TD>
    <TD><I>pari passu</I> with any outstanding shares of our Series A preferred stock (none of which are issued and outstanding as of the date hereof); and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&middot;</TD>
    <TD>junior to all of our existing and future indebtedness and any class or series of preferred stock that we intend to cause to be listed for trading or quoted on Nasdaq, NYSE Amex or the New York Stock Exchange.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Series B preferred stock has a liquidation
preference per share equal to the original price per share thereof plus all accrued dividends thereon, and is subject to repurchase
following the consummation of certain fundamental transactions by us.&nbsp;&nbsp;Upon or after the fourth anniversary of the applicable
issuance date, we have the right, at our option, to redeem all or a portion of the shares of Series B preferred stock, at their
liquidation value.&nbsp;&nbsp;We also have the right, at our option, to redeem all or a portion of the shares of Series B preferred
stock, at a price per share equal to: (i) 136% of their liquidation value if redeemed on or after the applicable issuance date
but prior to the first anniversary of the applicable issuance date, (ii) 127% of their liquidation value if redeemed on or after
the first anniversary but prior to the second anniversary of the applicable issuance date, (iii) 118% of their liquidation value
if redeemed on or after the second anniversary but prior to the third anniversary of the applicable issuance date, and (iv) 109%
of their liquidation value if redeemed on or after the third anniversary but prior to the fourth anniversary of the applicable
issuance date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Description of The Optimus Transactions</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%">&nbsp;</TD>
    <TD STYLE="width: 7%; font-style: italic">A.</TD>
    <TD STYLE="width: 86%; font-style: italic; text-align: justify">Exchange of Series A Preferred Stock for Series B Preferred Stock</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 13, 2010, we issued and sold an aggregate
of 500 shares of Series A preferred stock to Optimus.&nbsp;&nbsp;The aggregate purchase price for the Series A preferred stock
was $5.0 million. On July 19, 2010, we issued 500 shares of Series B preferred stock to Optimus, which we refer to as the Series
B exchange shares, in exchange for the 500 shares of Series A preferred stock so that all shares of our preferred stock held or
subsequently purchased by Optimus under the Series B purchase agreement, as amended, would be redeemable upon substantially identical
terms.&nbsp;&nbsp;Any accrued and unpaid dividends on the Series A preferred stock were deemed cancelled and such amount of accrued
and unpaid dividends were reflected as accrued and unpaid dividends of the Series B preferred stock issued to Optimus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%">&nbsp;</TD>
    <TD STYLE="width: 7%; font-style: italic">B.</TD>
    <TD STYLE="width: 86%; font-style: italic; text-align: justify">Offering of Series B Preferred Stock</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the Series B purchase
agreement, as amended, Optimus agreed to purchase, upon the terms and subject to the conditions set forth therein and
described below, up to $7.5 million of our Series B preferred stock, at a price of $10,000 per share, of which $2.84 million
of our Series B preferred stock remains available for purchase.&nbsp;&nbsp;As of November 5, 2012, we issued and sold an
aggregate of 466 shares of Series B preferred stock to Optimus.&nbsp;&nbsp;The aggregate purchase price for the Series B
preferred stock was $4.66 million.&nbsp;&nbsp;Under the terms of the Series B purchase agreement, as amended, Optimus remains
obligated, from time to time until July 19, 2013, to purchase up to an additional 284 shares of Series B preferred stock upon
notice from us to Optimus.&nbsp;&nbsp;Subject to satisfaction of certain closing conditions, Optimus is obligated to purchase
such shares of Series B preferred stock on the 10th trading day after the date of the notice.&nbsp;&nbsp;We will determine,
in our sole discretion, the timing and amount of Series B preferred stock to be purchased by Optimus, and may sell such
shares in multiple tranches. Optimus will not be obligated to purchase the Series B preferred stock upon our notice (i) in
the event the average closing sale price of our common stock during the nine trading days following delivery of our notice
falls below 75% of the closing sale price of our common stock on the trading day prior to the date such notice is delivered
to Optimus, or (ii) to the extent such purchase would result in Optimus and its affiliates beneficially owning more than
9.99% of our outstanding common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%">&nbsp;</TD>
    <TD STYLE="width: 7%">C.</TD>
    <TD STYLE="width: 86%; font-style: italic; text-align: justify">Redemption of Series B Preferred Stock</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On December 30, 2010, immediately following
the closing of the sale of 72 shares of Series B preferred stock to Optimus pursuant to the terms of the Series B purchase agreement,
we redeemed 226 shares of Series B Preferred Stock held by Optimus for an aggregate redemption price of $3,141,004 consisting of
(i) cash in an amount of $76,622 and (ii) the cancellation of certain promissory notes issued by an affiliate of Optimus to us
in the aggregate amount of $3,064,382.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%">&nbsp;</TD>
    <TD STYLE="width: 7%">D.</TD>
    <TD STYLE="width: 86%; font-style: italic; text-align: justify">Rights to Issue Additional Series B Preferred Stock</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the Series B purchase agreement, we
may deliver a notice to Optimus requesting that Optimus purchase additional shares of Series B preferred stock. Optimus&rsquo;s
obligation to accept a notice and to acquire and pay for the Series B preferred stock subject to such notice at a tranche closing
are subject to the satisfaction of certain conditions, which include, among others:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4.5%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 92.5%">our common stock must be listed for trading or quoted on an eligible trading market, and we must be in compliance with all requirements under the Securities Exchange Act of 1934, as amended, in order to maintain such listing;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&middot;</TD>
    <TD>either (i) we have a current, valid and effective registration statement covering the resale of all warrant shares or (ii) all warrant shares are eligible for resale without limitation under Rule 144 (assuming cashless exercise of the warrant);</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&middot;</TD>
    <TD>there must not be any material adverse effect with respect to our company since the date of the Series B purchase agreement, as amended, other than losses incurred in the ordinary course of business;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&middot;</TD>
    <TD>we must not be in default under any material agreement;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&middot;</TD>
    <TD>certain lock-up agreements with our senior officers and directors and certain beneficial owners of 10% or more of our outstanding common stock must be effective;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&middot;</TD>
    <TD>there must not be any legal restraint prohibiting the transactions contemplated by the Series B purchase agreement, as amended; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4.5%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 92.5%">the aggregate of all shares of our common stock beneficially owned by Optimus and its affiliates must not exceed 9.99% of our outstanding common stock.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Stock Symbol</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our common stock is quoted on the OTC
Bulletin Board&nbsp;under the symbol ADXS.OB.&nbsp;&nbsp;On&nbsp;November  12, 2012, the last reported sale price
per share for our common stock as reported by the OTC Bulletin Board&nbsp;was $0.04.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>The following description
is qualified in its entirety by the terms and conditions set forth in the forms of such warrants attached as exhibits to this registration
statement. The following description may not contain all the information with respect to such warrants important to you. We encourage
you to read the forms of each warrant attached as exhibits to this registration statement.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Warrants - 2007 Private Placement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As part of the October 17, 2007 private
placement, investors were issued units consisting of one share of common stock and &frac34; of a five-year warrant to purchase
one share of common stock at an exercise price of $0.20 per share (prior to anti-dilution adjustments).&nbsp;&nbsp;The October
2007 warrants provide for adjustment of their exercise prices upon the occurrence of certain events, such as payment of a stock
dividend, a stock split, a reverse split, a reclassification of shares, or any subsequent equity sale, rights offering, pro rata
distribution (full ratchet), or any fundamental transaction such as a merger, sale of all of its assets, tender offer or exchange
offer, or reclassification of its common stock.&nbsp;&nbsp;If at any time after October 17, 2008 there is no effective registration
statement registering, or no current prospectus available for, the resale of the shares underlying the warrants by the holder of
such warrants, then the warrants may also be exercised at such time by means of a &ldquo;cashless exercise.&rdquo; The October
2007 warrants provide that they may not be exercised if, following the exercise, the holder will be deemed to be the beneficial
owner of more than 9.99% of our outstanding shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In an effort to reduce the number of our
October 2007 warrants outstanding, we may from time to time enter into exchange agreements with the holders of such warrants pursuant
to which such holders may receive shares of our common stock and/or additional warrants in amounts to be determined in such negotiations.
As of November 5, 2012, we have exchanged October 2007 warrants to purchase 39,690,911 shares of our common stock with certain
investors in return for 7,437,857 shares of our common stock and new warrants to purchase 21,040,303 shares of our common stock
(which warrants are identical to the October 2007 warrants, except that such warrants do not contain any economic anti-dilution
adjustment rights).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.75in">On October 17, 2012, October 2007
warrants to purchase 15,869,507 shares of our common stock expired unexercised.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Warrants - Series A Preferred Stock Offering</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At the time of the execution of the Series
A purchase agreement, an affiliate of Optimus was granted on September 24, 2009 a warrant to purchase up to 33,750,000 shares of
our common stock at an exercise price of $0.20 to be adjusted in connection with the draw down of each tranche.&nbsp;&nbsp;As permitted
by the terms of such warrant, the aggregate exercise price of $6,250,970 received by us as of November 5, 2012 is payable pursuant
to four-year full recourse promissory notes each bearing interest at the rate of 2% per year.&nbsp;&nbsp;In addition, in connection
with the draw down of the final tranche, we issued an additional warrant to an affiliate of Optimus to purchase up to 2,818,000
shares of common stock at an exercise price of $0.18 per share.&nbsp;&nbsp;As permitted by the terms of such warrant, the aggregate
exercise price of $507,240 received by us as of July 31, 2011 is payable pursuant to a four-year full recourse promissory note
bearing interest at the rate of 2% per year.&nbsp;&nbsp;The foregoing promissory notes are not due or payable at any time that
(a) we are in default of under the Series A purchase agreement, any loan agreement or other material agreement or (b) there are
any Series B exchange shares issued or outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Warrants - Series B Preferred Stock Offering</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At the time of execution of the Series B
purchase agreement, we issued to Optimus a three-year warrant to purchase up to 40,500,000 shares of our common stock, at an initial
exercise price of $0.25 per share, of which no shares of our common stock remain available to purchase.&nbsp;&nbsp;As permitted
by the terms of this warrant, the aggregate exercise price of $6,291,000 received by us as of November 5, 2012 are payable pursuant
to four-year full recourse promissory notes bearing interest at the rate of 2% per year.&nbsp;&nbsp;On December 30, 2010, certain
of these promissory notes in the aggregate amount of $3,064,382 were cancelled as part of the redemptions price in connection with
our redemption of 226 shares of Series B Preferred Stock held by Optimus.&nbsp;&nbsp;As of November 5, 2012 we have issued to
Optimus warrants to purchase an aggregate of 102,628,000 shares of our common stock of which the 25,560,000 described below remain
outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On April 4, 2011, in connection with the
amendment to the Series B purchase agreement, we issued an additional warrant to an affiliate of Optimus to purchase up to 25,560,000
shares of common stock at an initial exercise price of $0.15 per share.&nbsp;&nbsp;The warrant became exercisable on June 24, 2011,
which is the date on which a registration statement registering for resale the shares of our common stock issuable upon exercise
of the warrant became effective.&nbsp;&nbsp;The warrant consists of and is exercisable in tranches, with a separate tranche being
created upon each delivery of a tranche notice under the Series B purchase agreement, as amended.&nbsp;&nbsp;On each tranche notice
date, that portion of the warrant equal to 135% of the tranche amount will vest and become exercisable, and such vested portion
may be exercised at any time during the exercise period on or after such tranche notice date.&nbsp;&nbsp;On each tranche notice
date, the exercise price of the warrant will be adjusted to the closing sale price of a share of our common stock on the applicable
tranche notice date.&nbsp; The exercise price of the warrant may be paid (at the option of the affiliate of Optimus) in cash or
by issuance of a four-year, full-recourse promissory note, bearing interest at 2% per annum, and secured by a specified portfolio
of assets.&nbsp;&nbsp;However, such promissory note is not due or payable at any time that (a) we are in default of any preferred
stock purchase agreement for Series B preferred stock or any warrant issued pursuant thereto, any loan agreement or other material
agreement or (b) there are any shares of the Series B preferred stock issued or outstanding.&nbsp;&nbsp;The warrant also provides
for cashless exercise in certain circumstances. If Optimus fails to acquire and pay for the Series B preferred stock upon delivery
of our notice in accordance with the terms of the Series B purchase agreement, as amended, (assuming the timely and full satisfaction
of all of the conditions set forth therein) and the warrant has not previously been exercised in full, we have the right to demand
surrender of the warrant (or any remaining portion thereof) without compensation, and the warrant will automatically be cancelled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Warrants - Bridge Offerings</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the senior bridge
financing and junior bridge financings, we have issued warrants to purchase an aggregate of 15,789,125 shares of our common
stock with terms ranging from two to five years and exercise prices ranging from $0.15 to $0.25 per share (with most subject
to anti-dilution adjustments).&nbsp;&nbsp;In return for extending the maturity dates of certain senior bridge notes, we
issued additional warrants to purchase an aggregate of 2,468,901 shares of our common stock with terms similar to their
original warrants.&nbsp;&nbsp;Due to the anti-dilution provisions contained in our warrant agreements, we issued an aggregate
of 3,556,285 additional warrants as a result of &ldquo;ratchets&rdquo; that occurred in January 2010 and September
2010.&nbsp;&nbsp;In December 2010, we issued an aggregate of 815,790 additional warrants to certain of our junior bridge note
holders, with terms similar to their original warrants, and new promissory notes in the aggregate principal amount of
$343,000&nbsp;in return for extending the maturity dates of their original promissory notes.&nbsp;&nbsp;As of November 5,
2012, we reduced the exercise price from $0.15 per share to $0.03146 per share with respect to approximately 13 million bridge
note warrants such that approximately 49 million additional shares of our common stock are issuable upon exercise of such
warrants at $0.03146 per share. As of November 5, 2012, we had approximately  150 million bridge note warrants outstanding.
The senior bridge warrants and junior bridge warrants provide for adjustment of their exercise prices upon the occurrence of
certain events, such as payment of a stock dividend, a stock split, a reverse split, a reclassification of shares, or any
subsequent equity sale, rights offering, pro rata distribution (full ratchet), or any fundamental transaction such as a
merger, sale of all of its assets, tender offer or exchange offer, or reclassification of its common stock.&nbsp;&nbsp;Each
of the senior bridge warrants and some of the junior bridge warrants may be exercised on a cashless basis under certain
circumstances.&nbsp;&nbsp;Each of the senior bridge warrants and junior bridge warrants provide that they may not be
exercised if, following the exercise, the holder will be deemed to be the beneficial owner of more than 9.99% of our
outstanding shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Warrants - May 2011 Private Placement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the issuance of approximately
$7.0 million of our convertible promissory notes to certain accredited investors in May 2011, which we refer to as the May 2011
offering, we issued warrants to purchase an aggregate of 25,480,570 shares of our common stock, of which warrants to purchase an
aggregate of 23,593,122 shares of our common stock were issued to the investors in the May 2011 offering and warrants to purchase
an aggregate of 1,887,448 shares of our common stock were issued to Rodman &amp; Renshaw, LLC, which we refer to as Rodman, as
the placement agent for the May 2011 offering. Each May 2011 warrant has an exercise price of $0.15 per share. The May 2011 warrants
are exercisable at any time on or before the third anniversary of the issue date of the May 2011 warrants, or May 12, 2014. The
May 2011 warrants may be exercised on a cashless basis under certain circumstances. The May 2011 warrants include a limitation
on conversion or exercise, which provides that at no time will an investor be entitled to exercise any number of May 2011 warrants
that would result in the beneficial ownership by the investor and its affiliates of more than 4.99% of the outstanding shares of
our common stock on such date. The May 2011 warrants were exchanged in the May 2012 exchange for substantially identical warrants,
except that the expiration date of the new warrants has been extended for one additional year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Warrants - October 2011 Private Placement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the issuance of approximately
$2.3 million of our convertible promissory notes to certain accredited investors in October 2011, which we refer to as the October
2011 offering, we issued warrants to purchase an aggregate of 8,620,977 shares of our common stock, of which warrants to purchase
an aggregate of 7,754,899 shares of our common stock were issued to the investors in the October 2011 offering and warrants to
purchase an aggregate of 866,078 shares of our common stock were issued to Rodman as the placement agent for the October 2011 offering.
Each October 2011 warrant has an exercise price of $0.15 per share. The October 2011 warrants are exercisable at any time on or
before the third anniversary of the issue date of the October 2011 warrants, or October 31, 2014. The October 2011 warrants may
be exercised on a cashless basis under certain circumstances. The October 2011 warrants include a limitation on conversion or exercise,
which provides that at no time will an investor be entitled to exercise any number of October 2011 warrants that would result in
the beneficial ownership by the investor and its affiliates of more than 4.99% of the outstanding shares of our common stock on
such date. Certain of the October 2011 warrants were exchanged in the May 2012 exchange for substantially identical warrants, except
that the expiration date of the new warrants has been extended for one additional year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Warrants - December 2011 Private Placement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the issuance of approximately
$1.2 million of our convertible promissory notes to certain accredited investors in December 2011, which we refer to as the December
2011 offering, we issued warrants to purchase an aggregate of 4,682,940 shares of our common stock, of which warrants to purchase
an aggregate of 4,107,842 shares of our common stock were issued to the investors in the December 2011 offering and warrants to
purchase an aggregate of 575,098 shares of our common stock were issued to Rodman as the placement agent for the December 2011
offering. Each December 2011 warrant has an exercise price of $0.15 per share. The December 2011 warrants are exercisable at any
time on or before the third anniversary of the issue date of the December 2011 warrants, or January 9, 2015. The December 2011
warrants may be exercised on a cashless basis under certain circumstances. The December 2011 warrants include a limitation on conversion
or exercise, which provides that at no time will an investor be entitled to exercise any number of December 2011 warrants that
would result in the beneficial ownership by the investor and its affiliates of more than 4.99% of the outstanding shares of our
common stock on such date. Certain of the December 2011 warrants were exchanged in the May 2012 exchange for substantially identical
warrants, except that the expiration date of the new warrants has been extended for one additional year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Warrants - May 2012 Private Placement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the May
2012 offering, we issued warrants to purchase an aggregate of 3,533,333 shares of our common stock, of which warrants to
purchase an aggregate of 3,177,777 shares of our common stock were issued to the investors in the May 2012 offering and
warrants to purchase an aggregate of 231,112 shares of our common stock were issued to Rodman as the placement agent for the
May 2012 offering and 124,444 were issued to certain employees of Rodman. Each warrant, which we refer to as the May 2012 Warrant,
has an exercise price of $0.15 per share. The May 2012 Warrants are exercisable at any time on or before the fifth
anniversary of the issue date of the May 2012 Warrants, or May 18, 2017. The May 2012 Warrants may be exercised on a cashless
basis under certain circumstances. The May 2012 Warrants include a limitation on conversion or exercise, which provides that
at no time will an investor be entitled to exercise any number of May 2012 Warrants that would result in the beneficial
ownership by the investor and its affiliates of more than 4.99% of the outstanding shares of our common stock on such
date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Warrants - July 2012 Exchanges</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In July 2012, we entered into exchange agreements
with certain holders of warrants to purchase shares of our common stock, including Thomas A. Moore, our Chief Executive Officer.
After giving effect to these exchanges and the August 16, 2012 amendment to our amended and restated certificate of incorporation,
there were warrants to purchase 89,178,770 shares of our common stock outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Warrants - August and September 2012 Issuance</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the Patton purchase agreement,
we issued a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock
issuable upon conversion of the Patton Note at an exercise price of $0.15 per share. The Patton Warrant is exercisable at any time
on or before the fifth anniversary of the issue date of the Patton Warrant, or August 2, 2017. The Patton Warrant may be exercised
on a cashless basis under certain circumstances. The Patton Warrant includes a limitation on exercise, which provides that at no
time will Dr. Patton be entitled to exercise the Patton Warrant for such number of shares of our common stock that would result
in the beneficial ownership by Dr. Patton and his affiliates of more than 4.99% of the outstanding shares of our common stock on
such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the Paterson purchase
agreement, we issued a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our
common stock issuable upon conversion of the Paterson Note at an exercise price equal to the conversion price then in effect. These
warrants have not yet been issued. The Paterson Warrant may be exercised on a cashless basis under certain circumstances. The Paterson
Warrant includes a limitation on exercise, which provides that at no time will Dr. Paterson be entitled to exercise the Paterson
Warrant to the extent for such number of shares of our common stock that would result in the beneficial ownership by Dr. Paterson
and her affiliates of more than 4.99% of the outstanding shares of our common stock on such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the French purchase agreement,
we issued a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock
issuable upon conversion of the French Note at an exercise price equal to the conversion price then in effect. These warrants have
not yet been issued. The French Warrant may be exercised on a cashless basis under certain circumstances. The French Warrant includes
a limitation on exercise, which provides that at no time will Ms. French be entitled to exercise the French Warrant to the extent
for such number of shares of our common stock that would result in the beneficial ownership by Ms. French and her affiliates of
more than 4.99% of the outstanding shares of our common stock on such date.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Antidilution Adjustments</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a result of
anti-dilution protection provisions contained in certain of our outstanding warrants (including the senior bridge warrants
and the junior bridge warrants), in November 2012, we reduced the exercise price from $0.15 per share to $0.03146 per share
with respect to an aggregate of approximately 13 million warrants such that approximately 49 million additional shares of our
common stock are issuable upon exercise of such warrants at $0.03146 per share. As of November 5, 2012, warrants to purchase
62,308,937 shares of our common stock are exercisable at $0.03146 per share and are subject to &ldquo;full ratchet&rdquo;
anti-dilution protection upon certain equity issuances below $0.03146 per share (as may be further adjusted).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Registration Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>The following description
is qualified in its entirety by the terms and conditions set forth in the registration rights agreements with respect to the offerings
described below attached as exhibits to this registration statement. The following description may not contain all the information
with respect to such registration rights important to you. We encourage you to read the registration rights agreements attached
as exhibits to this registration statement.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Registration Rights - 2007 Private Placement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with our October 2007 private
placement, we entered into a registration rights agreement with the investors in that offering pursuant to which we agreed to file
a registration statement with the SEC within 45 days after the final closing of the offering covering all of the shares of common
stock sold to the investors in the October 2007 private placement and all of the shares of common stock underlying the warrants
that were sold to the investors in that offering.&nbsp;&nbsp;Accordingly, we initially filed a registration statement on Form SB-2
with the SEC on November 30, 2007 to register all of such shares of common stock.&nbsp;&nbsp;The Form SB-2 registration statement
was declared effective by the SEC on January 22, 2008. Under the terms of the registration rights agreement, we agreed to keep
the registration statement effective until the earlier of (i) the date on which all of those shares of common stock may be resold
without registration under the Securities Act without regard to any volume limitations under Rule 144 under the Securities Act
or (ii) the date on which all of those shares of common stock have been resold pursuant to the registration statement or Rule 144
under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The registration rights agreement provides
that if, among other things, the registration statement ceases for any reason to remain continuously effective, or the selling
stockholder is otherwise not permitted to use it to resell their shares of common stock for more than 10 consecutive calendar days
or more than a total of twenty calendar days (which need not be consecutive calendar days) during any 12-month period, then we
are required to pay as partial liquidated damages an amount equal to 1.5% of the aggregate purchase price paid by any selling stockholder
for such common stock, up to a maximum of 15% of such purchase price.&nbsp;&nbsp;If we fail to pay any required partial liquidated
damages in full within seven days after the date payable, we are then required to pay interest thereon at a rate of 15% per annum
(or such lesser maximum amount that is permitted to be paid by applicable law) to the selling stockholder, accruing daily from
the date such partial liquidated damages are due until such amounts, plus all such interest thereon, are paid in full.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We filed a post-effective amendment on Form
S-1 to our original registration statement on Form SB-2 to, among other things, update the information included in the original
registration statement, convert the original registration statement to a registration statement on Form S-1, and to deregister
shares of our common stock which were covered by the original registration statement, but are no longer required to be registered
under the terms of our registration rights agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Registration Rights - Series B Preferred
Stock Offering</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the terms of the Series B purchase
agreement, as amended, our rights to deliver a notice to Optimus requiring Optimus to acquire and pay for the Series B preferred
stock are subject to having a current, valid and effective registration statement covering the resale of all shares underlying
the warrants unless all shares underlying the warrants are eligible for resale without limitation under Rule 144 (assuming cashless
exercise of the warrant).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Registration Rights - May 2011 Private
Placement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the May 2011 offering,
we entered into a registration rights agreement, dated as of May 9, 2011 with the investors in the May 2011 offering. Pursuant
to such agreement, we agreed with such investors to provide certain rights to register under the Securities Act of 1933, as amended,
the shares of our common stock issuable upon any conversion of the May 2011 notes and the exercise of the May 2011 warrants, and
agreed to file a registration statement within 45 days of the closing of the May 2011 offering to register the offering of the
shares of our common stock issuable upon conversion of the May 2011 notes and the exercise of the May 2011 warrants. We fulfilled
this obligation by filing a registration statement on Form S-1 (File No. 333-175145) with the SEC on June 27, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Registration Rights - October 2011 Private
Placement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the October 2011 offering,
we entered into a registration rights agreement, dated as of October 28, 2011 with the investors in the October 2011 offering.
Pursuant to such agreement, we agreed with such investors to provide certain rights to register under the Securities Act of 1933,
as amended, the shares of our common stock issuable upon any conversion of the October 2011 notes and the exercise of the October
2011 warrants, and agreed to file a registration statement within 45 days of the closing of the October 2011 offering to register
the offering of the shares of our common stock issuable upon conversion of the October 2011 notes and the exercise of the October
2011 warrants. We fulfilled this obligation by filing a registration statement on Form S-1 (File No. 333-178172) with the SEC on
November 23, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Registration Rights - December 2011
Private Placement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the December 2011 offering,
we entered into a registration rights agreement, dated as of January 9, 2012 with the investors in the December 2011 offering.
Pursuant to such agreement, we agreed with such investors to provide certain rights to register under the Securities Act of 1933,
as amended, the shares of our common stock issuable upon any conversion of the December 2011 notes and the exercise of the December
2011 warrants, and agreed to file a registration statement within 7 business days of the closing of the December 2011 offering
to register the offering of the shares of our common stock issuable upon conversion of the December 2011 notes and the exercise
of the December 2011 warrants. We fulfilled this obligation by filing a registration statement on Form S-1 (File No. 333-179208)
with the SEC on January 27, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Registration Rights - JMJ Financial Private Placement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the settlement agreement
we entered into with JMJ Financial, pursuant to which we agreed to issue <FONT STYLE="color: black">4 million shares of our common
stock to JMJ Financial as consideration for the cancellation of certain notes and a release, we</FONT> entered into a registration
rights agreement, dated as of May 8, 2012 with JMJ Financial. Pursuant to such agreement, we agreed with JMJ Financial to provide
certain rights to register under the Securities Act of 1933, as amended, the 4 million shares of our common stock, and agreed to
file a registration statement within thirty days of the date of the JMJ Financial registration rights agreement to register the
offering of the 4,000,000 shares of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Registration Rights - May 2012 Private Placement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the May 2012 offering,
we entered into a registration rights agreement, dated as of May 18, 2012 with the investors in the May 2012 offering. Pursuant
to such agreement, we agreed with such investors to provide certain rights to register under the Securities Act of 1933, as amended,
the shares of our common stock issuable upon any conversion of the approximately $953,333 of our convertible promissory notes that
investors acquired in the May 2012 offering, which we refer to as the May 2012 Notes, and the exercise of the May 2012 Warrants,
and agreed to file a registration statement within thirty business days of the closing of the May 2012 offering to register the
offering of the shares of our common stock issuable upon conversion of the May 2012 Notes and the exercise of the May 2012 Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Registration Rights - Numoda Private Placement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the terms of the stock
purchase agreement we entered into with Numoda, pursuant to which we agreed to issue 15<FONT STYLE="color: black"> million
shares of our common stock to Numoda in exchange for the immediate cancellation of $2,250,000 of accounts receivables owed by
us to Numoda pursuant to the Master Agreement, dated June 19, 2009, between Numoda and us, we</FONT> agreed to register the
resale by Numoda of the 15 million shares with the SEC within thirty business days from the closing of the transaction on
June 13, 2012. We fulfilled this obligation by filing a registration statement on Form S-1 (File
No. 133-183690) with the SEC on August 31, 2012, which was declared effective by the SEC on September 13, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Registration Rights - JMJ Financial August 2012 Settlement
and Note Issuance</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the settlement agreement we
entered into with JMJ Financial, dated as of August 27, 2012, we agreed with JMJ Financial to provide certain rights to register
under the Securities Act of 1933, as amended, the 4,076,925 shares of our common stock, and agreed to file a registration statement
no later than August 31, 2012 to register the offering of the 8,076,923 shares of our common stock, including the 4,000,000 shares
of our common stock issued to JMJ Financial in May 2012 and the 4,076,925 shares of our common stock issued to JMJ Financial pursuant
to the Settlement Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the terms of the
August 2012 Note, we agreed to include up to 3,250,000 shares of our common stock which may be issuable upon conversion of
the August 2012 Note on the next registration statement that we filed with the Securities and Exchange Commission after
the issuance date of the August 2012 Note. We fulfilled this obligation by filing a registration statement on Form S-1 (File
No. 133-183682) with the SEC on August 31, 2012, which was declared effective by the SEC on September 13, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Registration Rights &ndash; Equity Enhancement Program</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.75in">In connection with the Purchase
Agreement we entered into with Hanover, dated as of October 26, 2012, we agreed with Hanover to certain rights to register
under the Securities Act of 1933, as amended, the Registrable Securities and agreed to file a registration statement within
12 calendar days of the Purchase Agreement to register the resale of the Registrable Securities. For a more
detailed description of these registration rights see &ldquo;Equity Enhancement Program &ndash; Registration Rights
Agreement&rdquo; on Page 20 above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Transfer Agent and Registrar</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The transfer agent and registrar for our
common stock is Securities Transfer Corporation, 2591 Dallas Parkway, Suite 102, Frisco, TX 75034.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SHARES ELIGIBLE FOR FUTURE SALE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of November 5, 2012, we had
396,938,817 shares of common stock outstanding, not including shares issuable upon conversion of certain of our notes or
shares issuable upon exercise of our options or warrants. All shares sold in this offering will be freely tradable without
restriction or further registration under the Securities Act, unless they are purchased by our &ldquo;affiliates,&rdquo; as
that term is defined in Rule 144 promulgated under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The outstanding shares of our common stock
not included in this prospectus will be available for sale in the public market as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Public Float</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Of our outstanding shares, as of
November 5, 2012 approximately 19,964,035 shares are beneficially owned by executive officers, directors and affiliates
(excluding shares of our common stock which (i) have been earned but not yet issued and (ii) may be acquired upon exercise of
stock options and warrants which are currently exercisable or which become exercisable within 60 days of November 5, 2012).
The approximately 376,974,782 remaining shares constitute our public float.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Rule 144</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In general, under Rule 144, as currently
in effect, a person who has beneficially owned shares of our common stock for at least six months, including the holding period
of prior owners other than affiliates, is entitled to sell his or her shares without any volume limitations; an affiliate, however,
can sell such number of shares within any three-month period as does not exceed the greater of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4.5%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 92.5%">1% of the number of shares of our common stock then outstanding, which equaled 3,969,388 shares as
    of November 5, 2012, or</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&middot;</TD>
    <TD>the average weekly trading volume of our common stock on the OTC Bulletin&nbsp;Board&nbsp;during the four calendar weeks preceding the filing of a notice on Form 144 with respect to that sale.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Sales under Rule 144 are also subject to
manner-of-sale provisions, notice requirements and the availability of current public information about us.&nbsp;&nbsp;In order
to effect a Rule 144 sale of our common stock, our transfer agent will require an opinion from legal counsel.&nbsp;&nbsp;We may
charge a fee to persons requesting sales under Rule 144 to obtain the necessary legal opinions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of November 5, 2012, approximately
267,074,297 shares of our common stock were available for sale by non-affiliates of ours under Rule 144.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Rule 701</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Rule 701 permits our employees, officers
or directors who purchased shares of our common stock pursuant to a written compensatory plan or contract to resell such shares
in reliance upon Rule 144 but without compliance with specific restrictions.&nbsp;&nbsp;Rule 701 provides that affiliates may sell
their Rule 701 shares of common stock under Rule 144 without complying with the holding period requirement and that non-affiliates
may sell such shares in reliance on Rule 144 without complying with the holding period, public information, volume limitation or
notice provisions of Rule 144.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Stock Options and Awards</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have registered, by means of a registration
statement on Form S-8 under the Securities Act of 1933, 2,381,525 shares of common stock reserved for issuance under our 2004 plan.&nbsp;&nbsp;As
of November 5, 2012, options to purchase 2,381,525 shares of our common stock remain outstanding under the 2004 plan, all of
which options to purchase shares of common stock have vested and have not been exercised.&nbsp;&nbsp;Shares of common stock issued
upon exercise of a share option and registered under registration statement on Form S-8 will, subject to vesting provisions and
Rule 144 volume limitations applicable to our affiliates, be available for sale in the open market immediately.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our 2005 plan was approved by the
stockholders on June 6, 2006, and has 5,600,000 shares of common stock reserved for issuance.&nbsp;&nbsp;As of November 5,
2012, options to purchase 5,444,000 shares of our common stock remain outstanding under our 2005 plan, all of which have
vested and have not been exercised.&nbsp;&nbsp;Shares of common stock issued upon exercise of a share option may be eligible
for sale, subject to vesting provisions, volume limitations and other limitations of Rule 144.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our 2009 plan was approved by the stockholders
on June 1, 2010, and has 20,000,000 shares of common stock reserved for issuance. As of November 5, 2012, options to purchase
19,441,899 shares of our common stock remain outstanding under our 2009 plan, of which options to purchase approximately 15,126,203
shares of common stock have vested and have not been exercised. Shares of common stock issued upon exercise of a share option may
be eligible for sale, subject to vesting provisions, volume limitations and other limitations of Rule 144.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our 2011 plan was approved by the stockholders
on September 27, 2011, and, after giving effect to the amendment to the 2011 plan approved by our stockholders on August 13, 2012,
has 65,000,000 shares of common stock reserved for issuance.&nbsp;&nbsp;As of November 5, 2012, options to purchase 17,540,000
shares of our common stock have been granted under our 2011 plan.&nbsp;&nbsp;Shares of common stock issued pursuant to an award
granted under the 2011 plan may be eligible for sale, subject to vesting provisions, volume limitations and other limitations of
Rule 144.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our ESPP was approved by the stockholders
on September 27, 2011, and has 5,000,000 shares of common stock reserved for issuance. As of November 5, 2012, 207,078 shares
of common stock have been issued under our ESPP. Shares of common stock issued may be eligible for sale, subject to vesting provisions,
volume limitations and other limitations of Rule 144.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Lock Up of Shares</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In order to induce Optimus to enter into
the Series B purchase agreement, our executive officers, directors and beneficial owners of 10% or more of our common stock agreed
that, for a period of ten trading days beginning on each date we deliver a notice exercising the put described in the Series B
purchase agreement, as amended, to Optimus and ending on the closing date of the put exercise, they will not, without the prior
written consent of Optimus, (a) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase
or otherwise dispose of or agree to dispose of, directly or indirectly, in respect of, or establish or increase a put equivalent
position or liquidate or decrease a call equivalent position with respect to, any of our common stock or any securities convertible
into or exercisable or exchangeable for our common stock, or warrants or other rights to purchase our common stock or any such
securities, or any securities substantially similar to our common stock, (b) enter into any swap or other arrangement that transfers
to another, in whole or in part, any of the economic consequences of ownership of our common stock or any securities convertible
into or exercisable or exchangeable for our common stock or any such securities, or warrants or other rights to purchase our common
stock, whether any such transaction is to be settled by delivery of our common stock or such other securities, in cash or otherwise
or (c) publicly announce an intention to effect any transaction specified in clause (a) or (b).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SELLING STOCKHOLDER</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This prospectus relates
to the possible resale from time to time by the selling stockholder of any or all of the shares of common stock that have been
or may be issued by us to Hanover under the Purchase Agreement. We are registering the shares of common stock pursuant to the provisions
of the Registration Rights Agreement we entered into with Hanover on October 19, 2012 in order to permit the selling stockholder
to offer the shares for resale from time to time. Except for the transactions contemplated by the Purchase Agreement and the Registration
Rights Agreement, Hanover has not had any material relationship with us within the past three years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The table below presents
information regarding the selling stockholder and the shares of common stock that it may offer from time to time under this prospectus.
This table is prepared based on information supplied to us by the selling stockholder, and reflects holdings as of November 5,
2012. As used in this prospectus, the term &ldquo;selling stockholder&rdquo; includes Hanover and any donees, pledgees, transferees
or other successors in interest selling shares received after the date of this prospectus from the selling stockholder as a gift,
pledge, or other non-sale related transfer. The number of shares in the column &ldquo;Maximum Number of Shares of Common Stock
to be Offered Pursuant to this Prospectus&rdquo; represents all of the shares of common stock that the selling stockholder may
offer under this prospectus. The selling stockholder may sell some, all or none of its shares in this offering. We do not know
how long the selling stockholder will hold the shares before selling them, and we currently have no agreements, arrangements or
understandings with the selling stockholder regarding the sale of any of the shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Beneficial
ownership is determined in accordance with Rule 13d-3(d) promulgated by the SEC under the Exchange Act, and includes shares
of common stock with respect to which the selling stockholder has voting and investment power. The percentage of shares of
common stock beneficially owned by the selling stockholder prior to the offering shown in the table below is based on an
aggregate of  396,938,817 shares of our common stock outstanding on November 5, 2012. Because the purchase price of the
shares of common stock issuable under the Purchase Agreement is determined on each settlement date, the number of shares that
may actually be sold by the Company under the Purchase Agreement may be fewer than the number of shares being offered by this
prospectus. The fourth column assumes the sale of all of the shares offered by the selling stockholder pursuant to this
prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center"><B>Number of Shares of Common<BR>
Stock Owned Prior to Offering</B></TD>
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center"><B>Maximum Number of<BR>
Shares of Common<BR>
Stock to be Offered<BR>
Pursuant to this </B></TD>
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP COLSPAN="5" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center"><B>Number of Shares of Common<BR>
Stock Owned After Offering</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: justify"><B>Name of Selling Stockholder</B></TD>
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center"><B>Number(1)</B>(2)</TD>
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center"><B>Percent(3)</B></TD>
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center"><B>Prospectus</B></TD>
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center"><B>Number(4)</B></TD>
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center"><B>Percent(3)</B></TD>
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCFFCC">
    <TD STYLE="vertical-align: top">Hanover Holdings I, LLC(5)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">17,416,793</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">4.24</TD>
    <TD STYLE="vertical-align: bottom">%</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">115,000,000</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">13,916,793</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">3.39</TD>
    <TD STYLE="vertical-align: bottom">%</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 15%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">*&#9;Represents beneficial ownership of less than one percent
of the outstanding shares of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>Rider Selling Stockholder Table</U></B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(1)</TD><TD>This number represents (i) the 3,500,00 shares of common stock we issued to Hanover on November 13, 2012 as Commitment
                                                            Shares in consideration for entering into the Purchase Agreement with us, (ii) 4,452,507 shares of our common stock
                                                            issuable                                                             upon conversion of the Magna Exchange Note at a
                                                            conversion price of $0.03146 per share, which was the conversion price on
                                                            November 5, 2012, and (iii)  9,464,286 shares of our common stock issuable upon conversion of the Hanover PIPE Notes at an
                                                            estimated conversion price of $0.0280 per share, which was the conversion price on November 5, 2012. The Magna Exchange Note
                                                            and the                                                             Hanover
                                                            PIPE Notes are subject to limitations on conversion if                                                             after
                                                            giving effect to such conversion Hanover would beneficially
                                                            own more than 4.99% of our common stock. For purposes of the numbers set forth in this footnote and the selling stockholder
                                                            table above, we have disregarded such limitations.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(2)</TD><TD>In accordance with Rule 13d-3(d) under the Exchange Act, we have excluded from the number of shares beneficially owned prior
to the offering (i) up to 1,800,000 shares that may be issued to Hanover as Maintenance Fee Shares under the terms of the Purchase
Agreement because the issuance of such shares is dependent on whether we chose to execute any draw downs during a calendar quarter
while the Purchase Agreement is in effect and (ii) all of the shares that Hanover may be required to purchase under the Purchase
Agreement because the issuance of such shares is solely at our discretion and is subject to certain conditions, the satisfaction
of all of which are outside of Hanover&rsquo;s control, including the registration statement of which this prospectus is a part
becoming and remaining effective. Furthermore, the maximum dollar value of each put of common stock to Hanover under the Purchase
Agreement is subject to certain agreed upon threshold limitations set forth in the Purchase Agreement. Also, under the terms of
the Purchase Agreement, we may not issue shares of our common stock to Hanover to the extent that Hanover or any of its affiliates
would, at any time, beneficially own more than 9.99% of our outstanding common stock.</TD></TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>


<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(3)</TD><TD STYLE="text-align: justify">Applicable percentage ownership is based on 396,938,817<FONT STYLE="color: black"> shares
of our common stock outstanding as of November 5, 2012.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(4)</TD><TD STYLE="text-align: justify">Assumes the sale of all shares being offered pursuant to this prospectus.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(5)</TD><TD STYLE="text-align: justify">The business address of Hanover is c/o Magna Group, 5 Hanover Square, New York, New York
                                                            10004. We have been advised that Hanover is not a member of the Financial Industry Regulatory Authority, or FINRA, or an
                                                            independent broker-dealer, and that neither Hanover nor any of its affiliates is an affiliate or an associated person of any
                                                            FINRA member or independent broker-dealer. Joshua Sason has voting control and investment discretion over securities owned
                                                            by                                                             Hanover. The foregoing should not be construed in and of
                                                            itself as an admission by Mr. Sason as
                                                            to beneficial ownership of the securities owned by Hanover.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>Recent Selling Stockholder
Transactions </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 19, 2012, in a private placement
pursuant to a note purchase agreement, we issued Hanover a convertible promissory note in the aggregate principal amount of $132,500,
for a purchase price of $132,500, which we refer to as the Initial Hanover PIPE Note. On October 19, 2012, in a private placement
pursuant to a note purchase agreement, we issued Hanover a convertible promissory note in the aggregate principal amount of $132,500,
for a purchase price of $132,500, which we refer to as the Second Hanover PIPE Note, which, together with the Initial Hanover PIPE
Note we refer to as the Hanover PIPE Notes. The Hanover PIPE Notes bear interest at a rate of 12%, which interest accrues, but
does not become payable until maturity or acceleration of the principal of such Hanover PIPE Notes. The Hanover PIPE Notes are
convertible into shares of our common stock at a conversion price equal to 65% of the arithmetic average of the five lowest closing
trading prices for the common stock during the 10 trading day period ending on the latest complete trading day prior to the applicable
conversion date. The Hanover PIPE Notes mature eight months from their respective issuance dates. To the extent Hanover does not
elect to convert the Hanover PIPE Notes as described above, the principal amount and interest of such Hanover PIPE Notes shall
be payable in cash at maturity. The Hanover PIPE Notes may be converted at any time by Hanover, at its option, in whole or in part.
The Hanover PIPE Notes include a limitation on conversion, which provides that at no time will Hanover be entitled to convert any
portion of the Hanover PIPE Notes to the extent that after such conversion Hanover (together with its affiliates) would beneficially
own more than 4.99% of the outstanding shares of the common stock as of such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In October 2012, pursuant to the terms
of various Assignment Agreements, which we refer to as the Assignment Agreements, Magna Group, LLC, an affiliate of Hanover, which
we refer to as Magna, acquired $400,075.88 in aggregate principal amount of our outstanding convertible notes from certain third
parties and entered into agreements to acquire an additional $340,522.90 in aggregate principal amount of our outstanding convertible
notes from other third parties. Pursuant to the terms of such Assignment Agreements, we delivered two convertible notes to Magna
in an aggregate principal amount of $740,598.74, in anticipation of the closing of all of the transactions contemplated by such
Assignment Agreements. On October 25, 2012, the convertible note in the aggregate principal amount of $617,722.92 previously delivered
to Magna was exchanged for a new convertible note in the aggregate principal amount of $400,075.77, convertible into share of
common stock, which we refer to as the Magna Exchange Note, to reflect such portion of the convertible notes actually issued as
of October 25, 2012 pursuant to the Assignment Agreements, and the remaining convertible note in the aggregate principal amount
of $122,875.82 previously delivered to Magna was returned to us and cancelled. The Magna Exchange Note bears interest at a rate
of 6%, which interest accrues, but does not become payable until maturity or acceleration of the principal of the Magna Exchange
Note. The Magna Exchange Note is convertible into shares of our common stock at a conversion price equal to 73% of the arithmetic
average of the five lowest closing trading prices for the common stock during the 10 trading day period ending on the lowest complete
trading day prior to the applicable conversion date. The Magna Exchange Note matures on October 17, 2013. To the extent Magna
does not elect to convert the Magna Exchange Note as described above, the principal amount and interest of the Magna Exchange
Note shall be payable in cash at maturity. Upon the closing of the remaining transactions contemplated by such applicable Assignment
Agreements, we are obligated to issue additional convertible notes in the form of the Magna Exchange Note with respect to the
outstanding $340,522.90 in aggregate principal amount of convertible notes held by the third party signatories to the other Assignment
Agreements, which we anticipate to occur during the fourth quarter of 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Magna Exchange Note may be converted
at any time by Magna, at its option, in whole or in part. The Magna Exchange Note includes a limitation on conversion, which provides
that at no time will Magna be entitled to convert any portion of the Magna Exchange Note to the extent that after such conversion
Magna (together with its affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock as of
such date.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><B>PLAN OF DISTRIBUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are registering
shares of common stock that have been or may be issued by us from time to time to Hanover under the Purchase Agreement to permit
the resale of these shares of common stock after the issuance thereof by the selling stockholder from time to time after the date
of this prospectus. We will not receive any of the proceeds from the sale by the selling stockholder of the shares of common stock.
We will bear all fees and expenses incident to our obligation to register the shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The selling stockholder
may decide not to sell any shares of common stock. The selling stockholder may sell all or a portion of the shares of common stock
beneficially owned by it and offered hereby from time to time directly or through one or more underwriters, broker-dealers or agents,
who may receive compensation in the form of discounts, concessions or commissions from the selling stockholder and/or the purchasers
of the shares of common stock for whom they may act as agent. In effecting sales, broker-dealers that are engaged by the selling
stockholder may arrange for other broker-dealers to participate. Hanover is an &ldquo;underwriter&rdquo; within the meaning of
the Securities Act. Any brokers, dealers or agents who participate in the distribution of the shares of common stock by the selling
stockholder may also be deemed to be &ldquo;underwriters,&rdquo; and any profits on the sale of the shares of common stock by them
and any discounts, commissions or concessions received by any such brokers, dealers or agents may be deemed to be underwriting
discounts and commissions under the Securities Act. Hanover has advised us that it will use an unaffiliated broker-dealer to effectuate
all resales of our common stock. To our knowledge, Hanover has not entered into any agreement, arrangement or understanding with
any particular broker-dealer or market maker with respect to the shares of common stock offered hereby, nor do we know the identity
of the broker-dealers or market makers that may participate in the resale of the shares. Because Hanover is, and any other selling
stockholder, broker, dealer or agent may be deemed to be, an &ldquo;underwriter&rdquo; within the meaning of the Securities Act,
Hanover will (and any other selling stockholder, broker, dealer or agent may) be subject to the prospectus delivery requirements
of the Securities Act and may be subject to certain statutory liabilities of the Securities Act (including, without limitation,
Sections 11, 12 and 17 thereof) and Rule 10b-5 under the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The selling stockholder
will act independently of us in making decisions with respect to the timing, manner and size of each sale. The shares of common
stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying
prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may involve
crosses or block transactions, pursuant to one or more of the following methods:</P>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">on any national securities exchange or quotation service on which the securities may be listed
or quoted at the time of sale;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">in the over-the-counter market in accordance with the rules of NASDAQ;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">in transactions otherwise than on these exchanges or systems or in the over-the-counter market;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">through the writing or settlement of options, whether such options are listed on an options exchange
or otherwise;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">block trades in which the broker-dealer will attempt to sell the shares as agent but may position
and resell a portion of the block as principal to facilitate the transaction;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">purchases by a broker-dealer as principal and resale by the broker-dealer for its account;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">an exchange distribution in accordance with the rules of the applicable exchange;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">privately negotiated transactions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">broker-dealers may agree with the selling stockholder to sell a specified number of such shares
at a stipulated price per share;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">a combination of any such methods of sale; and</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">any other method permitted pursuant to applicable law.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The selling stockholder
may also sell shares of common stock covered by this prospectus pursuant to Rule 144 promulgated under the Securities Act, if available,
rather than under this prospectus. In addition, the selling stockholder may transfer the shares of common stock by other means
not described in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any broker-dealer participating
in such transactions as agent may receive commissions from the selling stockholder (and, if they act as agent for the purchaser
of such shares, from such purchaser). Hanover has informed us that each such broker-dealer will receive commissions from Hanover
which will not exceed customary brokerage commissions. Broker-dealers may agree with the selling stockholder to sell a specified
number of shares at a stipulated price per share, and, to the extent such a broker-dealer is unable to do so acting as agent for
the selling stockholder, to purchase as principal any unsold shares at the price required to fulfill the broker-dealer commitment
to the selling stockholder. Broker-dealers who acquire shares as principal may thereafter resell such shares from time to time
in one or more transactions (which may involve crosses and block transactions and which may involve sales to and through other
broker-dealers, including transactions of the nature described above and pursuant to the one or more of the methods described above)
at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated
prices, and in connection with such resales may pay to or receive from the purchasers of such shares commissions computed as described
above. To the extent required under the Securities Act, an amendment to this prospectus or a supplemental prospectus will be filed,
disclosing:</P>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the name of any such broker-dealers;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the number of shares involved;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the price at which such shares are to be sold;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the commission paid or discounts or concessions allowed to such broker-dealers, where applicable;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">that such broker-dealers did not conduct any investigation to verify the information set out or
incorporated by reference in this prospectus, as supplemented; and</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">other facts material to the transaction.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Hanover has informed
us that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute
the common stock. Pursuant to a requirement of the Financial Industry Regulatory Authority, or FINRA, the maximum commission or
discount and other compensation to be received by any FINRA member or independent broker-dealer shall not be greater than eight
percent (8%) of the gross proceeds received by us for the sale of any securities being registered pursuant to Rule 415 under the
Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the securities
laws of some states, the shares of common stock may be sold in such states only through registered or licensed brokers or dealers.
In addition, in some states the shares of common stock may not be sold unless such shares have been registered or qualified for
sale in such state or an exemption from registration or qualification is available and is complied with.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There can be no assurance
that the selling stockholder will sell any or all of the shares of common stock registered pursuant to the registration statement,
of which this prospectus forms a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Underwriters and purchasers
that are deemed underwriters under the Securities Act may engage in transactions that stabilize, maintain or otherwise affect the
price of the common stock, including the entry of stabilizing bids or syndicate covering transactions or the imposition of penalty
bids. The selling stockholder and any other person participating in the sale or distribution of the shares of common stock will
be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder (including, without limitation,
Regulation M of the Exchange Act), which may restrict certain activities of, and limit the timing of purchases and sales of any
of the shares of common stock by, the selling stockholder and any other participating person. To the extent applicable, Regulation
M may also restrict the ability of any person engaged in the distribution of the shares of common stock to engage in market-making
and certain other activities with respect to the shares of common stock. In addition, the anti-manipulation rules under the Exchange
Act may apply to sales of the shares of common stock in the market. All of the foregoing may affect the marketability of the shares
of common stock and the ability of any person or entity to engage in market-making activities with respect to the shares of common
stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have agreed to pay
all expenses of the registration of the shares of common stock pursuant to the registration rights agreement, estimated to be $587.44
in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities
or &ldquo;Blue Sky&rdquo; laws; provided, however, Hanover will pay all selling commissions, concessions and discounts, and other
amounts payable to underwriters, dealers or agents, if any, as well as transfer taxes and certain other expenses associated with
the sale of the shares of common stock. We have agreed to indemnify Hanover and certain other persons against certain liabilities
in connection with the offering of shares of common stock offered hereby, including liabilities arising under the Securities Act
or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities. Hanover has agreed
to indemnify us against liabilities under the Securities Act that may arise from any written information furnished to us by Hanover
specifically for use in this prospectus or, if such indemnity is unavailable, to contribute amounts required to be paid in respect
of such liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At any time a particular
offer of the shares of common stock is made by the selling stockholder, a revised prospectus or prospectus supplement, if required,
will be distributed. Such prospectus supplement or post-effective amendment will be filed with the Securities and Exchange Commission
to reflect the disclosure of any required additional information with respect to the distribution of the shares of common stock.
We may suspend the sale of shares by the selling stockholder pursuant to this prospectus for certain periods of time for certain
reasons, including if the prospectus is required to be supplemented or amended to include additional material information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The validity of the shares of common stock
offered by the selling stockholder will be passed upon for us by our counsel, Greenberg Traurig, LLP, New York, New York.&nbsp;&nbsp;A
shareholder of Greenberg Traurig, LLP owns 4,088,686 shares of our common stock and warrants to purchase 518,566 shares of
our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXPERTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The financial statements appearing in this
Prospectus and Registration Statement have been audited by McGladrey LLP (formerly McGladrey &amp; Pullen, LLP), an independent
registered public accounting firm, as stated in their report appearing elsewhere herein, which report expresses an unqualified
opinion and includes an explanatory paragraph relating to the Company's ability to continue as a going concern and are included
in reliance upon such report and upon the authority of such firm as experts in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INTERESTS OF NAMED EXPERTS AND COUNSEL</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Except as set forth above under the caption
&ldquo;Legal Matters,&rdquo; no expert or counsel named in this prospectus as having prepared or certified any part of this prospectus
or having given an opinion upon the validity of the securities being registered or upon other legal matters in connection with
the registration or offering of our common stock was employed on a contingency basis or had, or is to receive, in connection with
the offering, a substantial interest, directly or indirectly, in the registrant or any of its parents or subsidiaries.&nbsp;&nbsp;Nor
was any such person connected with the registrant or any of its parents, subsidiaries as a promoter, managing or principal underwriter,
voting trustee, director, officer or employee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WHERE YOU CAN FIND ADDITIONAL INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus is part of a registration
statement we have filed with the SEC.&nbsp;&nbsp;We have not included in this prospectus all of the information contained in the
registration statement, and you should refer to the registration statement and its exhibits for further information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We file annual, quarterly, and current reports,
proxy statements, and other information with the SEC.&nbsp;&nbsp;You may read and copy any materials we file at the SEC&rsquo;s
Public Reference Room at 100 F Street, NE., Washington, DC 20549, on official business days during the hours of 10 a.m. to 3 p.m.&nbsp;&nbsp;You
may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.&nbsp;&nbsp;The SEC maintains
an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically
with the SEC at http://www.sec.gov.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our Web site address is www.advaxis.com.
The information on our web site is not incorporated into this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>ADVAXIS, INC.</B></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>FINANCIAL STATEMENTS</B></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>INDEX</B></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 88%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; width: 10%; font-size: 10pt; text-align: center; text-indent: 0pt">Page</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt; padding-left: 9pt; text-indent: -9pt"><B>Audited Financial
    Statements</B></TD>
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Report of Independent Registered Public Accounting Firm</TD>
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: center; text-indent: 0pt">F-1</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 10pt; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Balance Sheets as of October 31, 2011&nbsp; and&nbsp; 2010</TD>
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: center; text-indent: 0pt">F-2</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 10pt; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Statements of Operations for the years ended October 31, 2011 and 2010 and the cumulative period from March 1, 2002 (Inception) to October 31, 2011</TD>
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: center; text-indent: 0pt">F-3</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 10pt; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Statements of Stockholders&#8217; Equity (Deficiency) for the Period from March 1, 2002 (Inception) to October 31, 2011</TD>
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: center; text-indent: 0pt">F-4</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 10pt; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Statements of Cash Flows for the years ended October 31, 2011 and 2010 and the cumulative period from March 1, 2002 (Inception) to October 31, 2011</TD>
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: center; text-indent: 0pt">F-5</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 10pt; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Notes to the Financial Statements</TD>
    <TD STYLE="text-align: left; vertical-align: top; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: center; text-indent: 0pt">F-7</TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="width: 88%; padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: center; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; padding-left: 9pt; text-indent: -9pt">Unaudited Interim Financial Statements</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold; padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt">Balance Sheets as of July 31, 2012 (unaudited) and October 31, 2011</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">F-33</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt">Statements of Operations for the three month period ended July 31, 2012 and 2011, the nine month period ended July 31, 2012 and 2011 and the period from March 1, 2002 (Inception) to July 31, 2012 (unaudited)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">F-34</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt">Statement of Shareholders&rsquo; Deficiency for the nine month period ended July 31, 2012 (unaudited)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">F-35</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt">Statements of Cash Flow for the nine month period ended July 31, 2012 and 2011 and the period from March 1, 2002 (Inception) to July 31, 2012 (unaudited)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">F-36</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt">Supplemental Disclosures of Cash Flow Information</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">F-37</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt">Supplemental Disclosures of Noncash Investing and Financing Schedules</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">F-37</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt">Notes to Unaudited Financial Statements</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">F-38</TD></TR>
</TABLE>


<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;<BR></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>Report of Independent
Registered Public Accounting Firm</B></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">To the Board of Directors
and Shareholders</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Advaxis, Inc.</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Princeton, New Jersey</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">We have audited the accompanying
balance sheets of Advaxis, Inc. as of October 31, 2011 and 2010, and the related statements of operations, stockholders' equity
(deficiency), and cash flows for the years then ended and for the cumulative period from March 1, 2002 (inception) to October 31,
2011.&nbsp; These financial statements are the responsibility of the Company's management.&nbsp; Our responsibility is to express
an opinion on these financial statements based on our audits.&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">We conducted our audits
in accordance with the standards of the Public Company Accounting Oversight Board (United States).&nbsp; Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.&nbsp;
The Company is not required to have, nor were we engaged to perform an audit of its internal control over financial reporting.&nbsp;
Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company&#8217;s
internal control over financial reporting.&nbsp; Accordingly, we express no such opinion.&nbsp; An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement presentation.&nbsp; We
believe that our audits provide a reasonable basis for our opinion.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial position of Advaxis, Inc. as of October 31,
2011 and 2010, and the results of its operations and its cash flows for the years then ended and the cumulative period from March
1, 2002 (inception) to October 31, 2011 in conformity with U.S. generally accepted accounting principles.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The accompanying financial
statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial
statements, the Company&#8217;s products are being developed and have not generated significant revenues. As a result, the Company
has suffered recurring losses and its liabilities exceed its assets. This raises substantial doubt about the Company&#8217;s ability
to continue as a going concern. Management&#8217;s plans in regard to these matters are also described in Note 1. The financial
statements do not include any adjustments that might result from the outcome of this uncertainty.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">/s/ MCGLADREY &amp; PULLEN,
LLP</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">MCGLADREY &amp; PULLEN,
LLP</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">New York, New York</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">January 26, 2012</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>ADVAXIS, INC.</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>(A Development Stage
Company)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>Balance Sheet</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP="nowrap" STYLE="border-bottom: black 2px solid; text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>October&nbsp;31,</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>2011</B></P></TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: center; font-size: 10pt; font-weight: bold"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 2px; font-size: 10pt; font-weight: bold; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP="nowrap" STYLE="border-bottom: black 2px solid; text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>October&nbsp;31,</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>2010</B></P></TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; font-weight: bold; text-indent: 0pt">ASSETS</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; text-indent: 0pt">Current Assets:</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-left: 0.12in; text-align: left; width: 76%; font-size: 10pt; text-indent: 0pt">Cash</TD>
    <TD STYLE="text-align: right; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%; font-size: 10pt">$</TD>
    <TD STYLE="text-align: right; width: 9%; font-size: 10pt">1,096,538</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%; font-size: 10pt">$</TD>
    <TD STYLE="text-align: right; width: 9%; font-size: 10pt">108,381</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 0; text-indent: 0pt">Other Current Asset&nbsp;Receivable</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">477,788</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 0; text-indent: 0pt">Grant Receivable</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">244,479</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 0; text-indent: 0pt">Prepaid expenses</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">37,474</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">38,511</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt; text-indent: 0pt; padding-left: 0">Other Current Assets</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">2,221</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 0; text-indent: 0pt">Total Current Assets</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">1,614,021</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">391,371</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; text-indent: 0pt">Deferred expenses</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">1,380,103</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">233,322</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Property and Equipment (net of accumulated depreciation)</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">28,406</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Intangible Assets (net of accumulated amortization)</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">2,256,852</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">2,125,991</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Deferred Financing Cost</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">65,848</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt; text-indent: 0pt">Other Assets</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">323,738</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">96,096</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-bottom: 4px; text-align: center; font-size: 10pt; text-indent: 0pt">TOTAL ASSETS</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 10pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 10pt">5,640,562</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 10pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 10pt">2,875,186</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; font-weight: bold; text-indent: 0pt">LIABILITIES AND SHAREHOLDERS&#8217; DEFICIENCY</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; text-indent: 0pt">Current Liabilities:</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 0; text-indent: 0pt">Accounts payable</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">$</TD>
    <TD STYLE="text-align: right; font-size: 10pt">2,420,260</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">$</TD>
    <TD STYLE="text-align: right; font-size: 10pt">2,586,008</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 0; text-indent: 0pt">Accrued expenses</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">2,976,334</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">647,125</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 0; text-indent: 0pt">Short-term Convertible Notes and fair value of embedded derivative</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">5,091,298</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">751,456</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt; padding-left: 0; text-indent: 0pt">Notes payable &#8211; current portion, including interest payable</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">408,069</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">687,034</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 0; text-indent: 0pt">Total Current Liabilities</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">10,895,961</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">4,671,623</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; text-indent: 0pt">Deferred Rent</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">62,441</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; text-indent: 0pt">Long-term Convertible Notes</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">570,802</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt; text-indent: 0pt">Common Stock Warrant</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">6,391,071</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">13,006,194</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt; text-indent: 0pt">Total Liabilities</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">17,920,275</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">17,677,817</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; text-indent: 0pt">Shareholders&#8217; Deficiency:</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Preferred stock, $0.001 par value; 5,000,000 shares authorized; Series B Preferred Stock; issued and outstanding 740 at October 31, 2011 and 789 at October 31, 2010. Series A Preferred Stock; issued and outstanding 0 at October 31, 2011 and 0 at October 31, 2010</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Common Stock - $0.001 par value; authorized 500,000,000 shares, issued and outstanding&nbsp; 250,173,570 in 2011 and 198,100,817 in 2010</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">250,173</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">198,101</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; text-indent: 0pt">Additional Paid-In Capital</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">33,000,064</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">23,074,978</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; text-indent: 0pt">Promissory Note Receivable</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(9,998,210</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(10,659,710</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt; text-indent: 0pt">Deficit accumulated during the development stage</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">(35,531,740</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">(27,416,000</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt; text-indent: 0pt">Total Shareholders&#8217; Deficiency</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">(12,279,713</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">(14,802,631</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt; font-weight: bold; text-indent: 0pt">TOTAL LIABILITIES &amp; SHAREHOLDERS&#8217; DEFICIENCY</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 10pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 10pt">5,640,562</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 10pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 10pt">2,875,186</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The accompanying notes and
the report of independent registered public accounting firm should be read in conjunction with the financial statements.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><BR></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>ADVAXIS, INC.</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>(A Development Stage
Company)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>Statement of Operations</B></P>

<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Year&nbsp;Ended</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>October&nbsp;31,</B></P></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 10pt; font-weight: bold"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Year&nbsp;Ended</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>October&nbsp;31,</B></P></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 10pt; font-weight: bold"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Period&nbsp;from</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>March&nbsp;1,&nbsp;2002</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Inception)&nbsp;to</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>October&nbsp;31,</B></P></TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; font-size: 10pt; font-weight: bold; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; font-size: 10pt; font-weight: bold; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; font-size: 10pt; font-weight: bold; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; width: 64%; font-size: 10pt; text-indent: 0pt">Revenue</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; width: 1%; font-size: 10pt">$</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; width: 9%; font-size: 10pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; width: 1%; font-size: 10pt">$</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; width: 9%; font-size: 10pt">508,481</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; width: 1%; font-size: 10pt">$</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; width: 9%; font-size: 10pt">1,863,343</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; width: 1%; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; text-indent: 0pt">Research &amp; Development Expenses</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">8,078,901</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">4, 904,298</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">23,156,740</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt; text-indent: 0pt">General &amp; Administrative Expenses</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">4,939,935</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">3,530,198</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">21,179,833</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt; text-indent: 0pt">Total Operating expenses</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">13,018,836</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">8,434,496</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">44,336,573</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; text-indent: 0pt">Loss from Operations</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(13,018,836</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(7,926,015</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(42,473,230</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; text-indent: 0pt">Other Income (expense):</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; text-indent: 0pt">Interest expense</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(4,698,983</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(3,814,863</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(10,449,337</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; text-indent: 0pt">Other Income</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(45,700</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">80,161</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">280,918</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">(Gain) Loss on note retirement</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">461,595</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">123,963</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">1,194,845</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Write-off of intangible assets</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(33,211</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(33,211</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Net changes in fair value of common stock warrant liability and embedded derivative liability</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">9,763,113</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">445,576</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">14,411,686</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; text-indent: 0pt">Net Loss before income tax benefit</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(8,495,212</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(11,091,178</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(37,068,329</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt; text-indent: 0pt">Income Tax Benefit</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">379,472</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">278,978</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">1,580,473</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-size: 10pt; text-indent: 0pt">Net Loss</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(8,115,740</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(10,812,200</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">(35,487,856</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt; text-indent: 0pt">Dividends attributable to preferred shares</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">1,538,686</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 10pt">1,582,570</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt; text-indent: 0pt">Net Loss applicable to Common Stock</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 10pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 10pt">(9,654,426</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 10pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 10pt">(10,812,200</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 10pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 10pt">(37,070,426</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt; text-indent: 0pt">Net Loss per share, basic</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 10pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 10pt">(0.04</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 10pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 10pt">(0.07</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="padding-bottom: 4px; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Net Loss per share, diluted</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 10pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 10pt">(0.04</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 10pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 10pt">(0.07</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">)</TD>
    <TD STYLE="padding-bottom: 4px; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Weighted average number of shares outstanding, basic</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 10pt">222,918,519</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 10pt">150,928,808</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt; padding-left: 9pt; text-indent: -9pt">Weighted average number of shares outstanding, diluted</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 10pt">222,918,519</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 10pt">150,928,808</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 10pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The accompanying notes and
the report of independent registered public accounting firm should be read in conjunction with the financial statements.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>ADVAXIS, INC.</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>(a development stage
company)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF SHAREHOLDERS&#8217;
EQUITY (DEFICIENCY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>Period from March
1, 2002 (inception) to October 31, 2011</B></P>

<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 7pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom; font-size: 7pt">
    <TD NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-weight: bold; font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt"><B>Preferred&nbsp;Stock</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-weight: bold; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-weight: bold; font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt"><B>Common&nbsp;Stock</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-weight: bold; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt"><B>Deficit</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: bottom; font-size: 7pt">
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-weight: bold; font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; font-weight: bold; font-size: 7pt"><B>Number&nbsp;of</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-weight: bold; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-weight: bold; font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-weight: bold; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-weight: bold; font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-weight: bold; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt"><B>Stock</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt"><B>Accumulated</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: bottom; font-size: 7pt">
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-weight: bold; font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 7pt; text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 7pt; text-align: center"><B>Shares&nbsp;of</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 7pt; text-align: center"><B>Outstanding</B></P></TD>
    <TD NOWRAP STYLE="text-align: center; font-weight: bold; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-weight: bold; font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt"><B>Amount</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-weight: bold; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 7pt; text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 7pt; text-align: center"><B>Number&nbsp;of&nbsp;shares</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 7pt; text-align: center"><B>of&nbsp;outstanding</B></P></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-weight: bold; font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt"><B>Amount</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-weight: bold; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt"><B>Subscription<BR>
Receivable</B></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 7pt; text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 7pt; text-align: center"><B>Additional&nbsp;Paid-</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 7pt; text-align: center"><B>in&nbsp;Capital</B></P></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 7pt; text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 7pt; text-align: center"><B>During&nbsp;the</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 7pt; text-align: center"><B>Development&nbsp;Stage</B></P></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-size: 7pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; font-size: 7pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 7pt; text-align: center"><B>Shareholders&#8217;</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 7pt; text-align: center"><B>Equity&nbsp;(Deficiency)</B></P></TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 7pt"><B>&nbsp;</B></TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Preferred stock issued</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">3,418</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">235,000</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">235,000</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Common Stock Issued</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">40,000</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">40</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(40</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Options granted to consultants &amp; professionals</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">10,493</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">10,493</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; text-indent: 0pt; font-size: 7pt">Net Loss</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(166,936</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(166,936</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Retroactive restatement to reflect re-capitalization on Nov. 12, 2004</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(3,481</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(235,000</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">15,557,723</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">15,558</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">219,442</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Balance at December 31, 2002</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">15,597,723</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">15,598</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">229,895</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(166,936</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">78,557</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Note payable converted into preferred stock</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">232</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">15,969</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">15,969</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Options granted to consultants and professionals</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">8,484</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">8,484</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; text-indent: 0pt; font-size: 7pt">Net loss</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(909,745</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(909,745</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Retroactive restatement to reflect re-capitalization on Nov. 12, 2004</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(232</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(15,969</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">15,969</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Balance at December 31, 2003</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">15,597,723</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">15,598</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">254,348</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(1,076,681</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(806,735</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Stock dividend on preferred stock</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">638</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">43,884</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(43,884</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; text-indent: 0pt; font-size: 7pt">Net loss</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(538,076</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(538,076</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Options granted to consultants and professionals</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">5,315</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">5,315</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Retroactive restatement to reflect re-capitalization on Nov. 12, 2004</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(638</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(43,884</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">43,884</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Balance at October 31, 2004</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">15,597,723</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">15,598</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">303,547</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(1,658,641</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(1,339,496</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Common Stock issued to Placement Agent on re-capitalization</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">752,600</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">753</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(753</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Effect of re-capitalization</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">752,600</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">753</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(753</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Options granted to consultants and professionals</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">64,924</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">64,924</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Conversion of Note payable to Common Stock</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">2,136,441</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">2,136</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">611,022</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">613,158</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Issuance of Common Stock for cash, net of shares to Placement Agent</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">17,450,693</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">17,451</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">4,335,549</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">4,353,000</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Issuance of common stock to consultants</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">586,970</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">587</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">166,190</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">166,777</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Issuance of common stock in connection with the registration statement</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">409,401</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">408</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">117,090</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">117,498</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Issuance costs</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(329,673</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(329,673</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; text-indent: 0pt; font-size: 7pt">Net loss</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(1,805,789</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(1,805,789</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Restatement to reflect re- capitalization on Nov. 12, 2004 including cash paid of $44,940</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(88,824</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(88,824</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Balance at October 31, 2005</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">37,686,428</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">37,686</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">5,178,319</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(3,464,430</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">1,751,575</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Options granted to consultants and professionals</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">172,831</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">172,831</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Options granted to employees and directors</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">71,667</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">71,667</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Conversion of debenture to Common Stock</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">1,766,902</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">1,767</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">298,233</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">300,000</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Issuance of Common Stock to employees and directors</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">229,422</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">229</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">54,629</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">54,858</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Issuance of common stock to consultants</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">556,240</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">557</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">139,114</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">139,674</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; text-indent: 0pt; font-size: 7pt">Net loss</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(6,197,744</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(6,197,744</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Balance at October 31, 2006</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">40,238,992</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">40,239</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">5,914,793</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(9,662,173</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(3,707,141</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 27pt; text-indent: -27pt; font-size: 7pt">Common Stock issued</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">59,228,334</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">59,228</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">9,321,674</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">9,380,902</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 27pt; text-indent: -27pt; font-size: 7pt">Offering Expenses</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(2,243,535</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(2,243,535</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Options granted to consultants and professionals</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">268,577</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">268,577</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Options granted to employees and directors</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">222,501</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">222,501</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Conversion of debenture to Common Stock</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">6,974,202</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">6,974</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">993,026</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">1,000,010</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Issuance of Common Stock to employees and directors</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">416,448</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">416</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">73,384</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">73,800</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Issuance of common stock to consultants</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">1,100,001</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">1,100</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">220,678</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">221,778</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Warrants issued on conjunction with issuance of common stock</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">1,505,550</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">1,505,550</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; text-indent: 0pt; font-size: 7pt">Net loss</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(2,454,453</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(2,454,453</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Balance at October 31, 2007</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">107,957,977</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">107,957</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">16,276,648</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(12,116,626</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">4,267,979</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Common Stock Penalty Shares</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">211,853</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">212</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">31,566</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">31,778</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Offering Expenses</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(78,013</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(78,013</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Options granted to consultants and professionals</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(42,306</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(42,306</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Options granted to employees and directors</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">257,854</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">257,854</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Issuance of Common Stock to employees and directors</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">995,844</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">996</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">85,005</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">86,001</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Issuance of common stock to consultants</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">153,846</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">154</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">14,462</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">14,616</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Warrants issued to consultant</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">39,198</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">39,198</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Net loss</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(5,416,418</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(5,416,418</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Balance at October 31, 2008</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">109,319,520</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">109,319</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">16,584,414</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(17,533,044</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(839,311</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Common stock issued upon exercise of warrants</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">3,299,999</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">3,300</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(3,300</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">0</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Warrants classified as a&nbsp; liability</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(12,785,695</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(12,785,695</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Issuance of common Stock Warrants</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(3,587,625</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(3,587,625</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Options granted to professionals and consultants</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">12,596</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">12,596</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Options granted to employees and directors</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">0</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">467,304</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">467,304</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Issuance of common stock to employees and directors</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">422,780</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">423</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">17,757</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">18,180</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Issuance of common stock to consultants</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">2,595,944</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">2,596</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">49,383</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">51,979</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="padding-bottom: 2px; text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Net Income/ (Loss)</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">929,244</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">929,244</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Balance at October 31, 2009</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">115,638,243</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">115,638</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">754,834</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(16,603,800</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(15,733,328</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Preferred Stock issued</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">789</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">6,828,293</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">6,828,293</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; width: 28%; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Common stock issued upon exercise of warrants</TD>
    <TD STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 6%; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 6%; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 6%; font-size: 7pt">62,265,059</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 6%; font-size: 7pt">62,265</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 6%; font-size: 7pt">(10,659,710</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%; font-size: 7pt">)</TD>
    <TD STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 6%; font-size: 7pt">18,647,522</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 6%; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 6%; font-size: 7pt">8,050,077</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Options granted to employees and directors</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">455,166</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">455,166</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Common stock issued upon conversion of Bridge Notes</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">15,413,960</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">15,414</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">3,306,677</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">3,322,091</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Common stock issued to Numoda</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">3,500,000</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">3,500</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">591,500</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">595,000</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; text-indent: 0pt; font-size: 7pt">&nbsp;Common stock issued to University of Pennsylvania</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">388,889</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">389</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">69,611</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">70,000</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Common stock issued to employees and directors</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">750,000</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">750</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">114,750</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">115,500</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Common stock issued to former employees</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">144,666</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">145</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(145</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Issuance of common stock warrants</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(7,693,230</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(7,865,520</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="padding-bottom: 2px; text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Net Income/ (Loss)</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">(10,812,200</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">(10,812,200</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Balance at October 31, 2010</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">789</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">198,100,817</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">198,101</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(10,659,710</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">23,074,978</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(27,416,000</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(14,802,631</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Preferred Stock issued</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">177</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">1,676,554</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">1,676,554</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Preferred Stock redeemed</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(226</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">3,051,000</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(3,141,003</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(90,003</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Common stock issued upon exercise of warrants</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">22,986,244</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">22,986</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(2,389,500</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">5,782,511</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">3,415,997</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Options granted to employees and directors</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">717,029</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">717,029</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Options granted to consultants</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">28,197</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">28,197</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Common stock issued upon conversion of Bridge Notes</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">9,513,210</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">9,513</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">1,809,204</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">1,818,717</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Common stock issued upon exchange of warrants</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">5,840,748</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">5,841</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">1,528,124</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">1,533,965</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Common stock issued upon conversion of May 2011 Notes</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">12,647,076</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">12,647</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">2,250,536</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">2,263,183</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Common stock issued to former employee</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">752,142</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">752</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">80,779</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">81,531</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Common stock issued to consultants</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">333,333</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">333</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">49,667</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">50,000</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Reclassification of warrant liability to equity</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">36,982</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">36,982</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Reclassification of Embedded Derivative Liability to Beneficial Conversion Feature</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">132,488</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">132,488</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Interest on Optimus Notes Receivable</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">202,856</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">202,856</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Issuance of common stock warrants</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(1,228,838</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 7pt">(1,228,838</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="padding-bottom: 2px; text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Net Income/ (Loss)</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">(8,115,740</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="padding-bottom: 2px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; font-size: 7pt">(8,115,740</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-size: 7pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom; font-size: 7pt">
    <TD STYLE="padding-bottom: 4px; text-align: left; padding-left: 9pt; text-indent: -9pt; font-size: 7pt">Balance at October 31, 2011</TD>
    <TD STYLE="padding-bottom: 4px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 7pt">740</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 7pt">-</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 7pt">250,173,570</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 7pt">250,173</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 7pt">(9,998,210</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="padding-bottom: 4px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 7pt">33,000,064</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 7pt">(35,531,740</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 7pt">)</TD>
    <TD STYLE="padding-bottom: 4px; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-size: 7pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-size: 7pt">(12,279,713</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-size: 7pt">)</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The accompanying notes and
the report of independent registered public accounting firm should be read in conjunction with the financial statements.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><BR></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>ADVAXIS, INC.</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>(A Development Stage
Company)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>Statement of Cash
Flows</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">Period&nbsp;from</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">March&nbsp;1</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">2002</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">Year&nbsp;ended</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">Year&nbsp;ended</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">(Inception)&nbsp;to</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">October&nbsp;31,</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">October&nbsp;31,</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">October&nbsp;31,</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">2011</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">2010</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">2011</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; font-weight: bold; text-indent: 0pt">OPERATING ACTIVITIES</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; width: 64%; text-indent: 0pt">Net Loss</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 9%; text-indent: 0pt">(8,115,740</TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: center; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 9%; text-indent: 0pt">(10,812,200&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 9%; text-indent: 0pt">(35,487,856</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Adjustments to reconcile net loss to net cash used in operating activities:</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; padding-left: 9pt; text-indent: -9pt">Non-cash charges to consultants and employees for options and stock</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">795,226</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">570,664&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">3,800,645</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; padding-left: 9pt; text-indent: -9pt">Amortization of deferred financing costs</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">260,000</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; padding-left: 9pt; text-indent: -9pt">Amortization of discount on Bridge Loans</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">482,507</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">550,040&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">1,156,393</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; padding-left: 9pt; text-indent: -9pt">Impairment of intangible assets</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">26,087</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; padding-left: 9pt; text-indent: -9pt">Non-cash interest expense</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">4,106,212</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">3,238,054&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">8,570,732</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; padding-left: 9pt; text-indent: -9pt">(Gain) Loss on change in value of warrants and embedded derivative</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(9,763,113</TD>
    <TD STYLE="vertical-align: top; text-align: center; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(445,576&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(14,411,686</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; padding-left: 9pt; text-indent: -9pt">Warrant Expense</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">557,935</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">206,275&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">764,210</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; padding-left: 9pt; text-indent: -9pt">Value of penalty shares issued</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">149,276</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Depreciation expense</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">28,406</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">38,528&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">195,672</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Amortization expense of intangibles</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">132,288</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">100,420&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">594,640</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Interest Income</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">267</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">267</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Write-off of intangible assets</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">33,211</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">33,211</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">(Gain) Loss&nbsp;on note retirement</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">461,594</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(123,963&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(1,194,845</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-decoration: underline; text-indent: 0pt">Change in operating assets and liabilities:</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">(Increase) decrease in prepaid expenses</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">1,037</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(2,066&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(37,473</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">(Increase) decrease in grant receivable</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">244,479</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(244,479&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">(Increase) decrease in other current assets</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(2,221</TD>
    <TD STYLE="vertical-align: top; text-align: center; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(2,221</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">(Increase) in other assets</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(38,438</TD>
    <TD STYLE="vertical-align: top; text-align: center; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(89,956&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(132,271</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">(Increase) decrease in deferred expenses</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(1,146,783</TD>
    <TD STYLE="vertical-align: top; text-align: center; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">212,952&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(872,375</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Increase in accounts payable</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">739,536</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">388,924&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">3,906,728</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Increase in accrued expenses</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">2,383,767</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">167,143&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">3,018,528</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">(Decrease) increase in interest payable</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">94,547</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(178,700&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(65,862</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0pt">Increase in deferred rent</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">62,441</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">62,441</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0pt">Net cash used in operating activities</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">(8,942,842</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top; text-align: center; text-indent: 0pt">)</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">(6,423,940&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top; text-indent: 0pt">)</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">(29,665,759</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; font-weight: bold; text-indent: 0pt">INVESTING ACTIVITIES</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Cash paid on acquisition of Great Expectations</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(44,940</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Purchase of property and equipment</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(12,436&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(150,093</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0pt">Cost of intangible assets</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">(296,358</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top; text-align: center; text-indent: 0pt">)</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">(854,773&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top; text-indent: 0pt">)</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">(2,915,740</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0pt">Net cash used in Investing Activities</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">(296,358</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top; text-align: center; text-indent: 0pt">)</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">(867,209&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top; text-indent: 0pt">)</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">(3,110,773</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; font-weight: bold; text-indent: 0pt">FINANCING ACTIVITIES</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Proceeds from convertible secured debenture</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">955,000</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">80,000&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">1,995,000</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">(Increase) decrease in deferred offering expenses</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(52,000</TD>
    <TD STYLE="vertical-align: top; text-align: center; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(52,000</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Cash paid for deferred financing costs</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(25,000</TD>
    <TD STYLE="vertical-align: top; text-align: center; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(584,493</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Proceeds from notes payable</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">7,691,063</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">1,255,000&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">13,951,952</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Payment on notes payable</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(769,379</TD>
    <TD STYLE="vertical-align: top; text-align: center; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(1,798,119&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(2,691,089</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Net proceeds of issuance of Preferred Stock</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">1,342,672</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">7,032,827&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">8,610,499</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Payment on cancellation of Warrants</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(600,000</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Proceeds from the exercise of warrants</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">1,085,001</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">170,000&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">1,255,001</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0pt">Net proceeds of issuance of Common Stock</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">11,988,230</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0pt">Net cash provided by Financing Activities</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">10,227,357</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">6,739,708&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">33,873,070</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Net increase (decrease) in cash</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">988,157</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(551,441)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">1,096,538</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0pt">Cash at beginning of period</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">108,381</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">659,822&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: bottom; text-indent: 0pt">Cash at end of period</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">1,096,538</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">108,381&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">1,096,538</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The accompanying notes and
the report of independent registered public accounting firm should be read in conjunction with the financial statements.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;<BR></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>Supplemental Disclosures
of Cash Flow Information</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; text-indent: 0pt">October&nbsp;31,</TD>
    <TD NOWRAP STYLE="text-align: left; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Period&nbsp;from</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>March&nbsp;1,&nbsp;2002</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Inception)&nbsp;to</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>October&nbsp;31,</B></P></TD>
    <TD NOWRAP STYLE="text-align: left; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 4px; text-align: left; width: 64%; text-indent: 0pt">Cash paid for Interest</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; width: 1%">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; width: 9%">148,392</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; width: 1%">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; width: 9%">311,784</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; width: 1%">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; width: 9%">681,992</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; width: 1%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B><U>Supplemental Schedule
of Noncash Investing and Financing Activities</U></B></P>

<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">Period&nbsp;from</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">March&nbsp;1,&nbsp;2002</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">Year&nbsp;ended</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">Year&nbsp;ended</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">(Inception)&nbsp;to</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">October 31,</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">October&nbsp;31,</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">October&nbsp;31,</TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; width: 64%; text-indent: 0pt">Equipment acquired under notes payable</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="vertical-align: top; width: 9%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="vertical-align: top; width: 9%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 9%; text-indent: 0pt">45,580</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Common Stock issued to Founders</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">$</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">$</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">40</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Notes payable and accrued interest converted to Preferred Stock</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">15,969</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Stock dividend on Preferred Stock</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">43,884</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Accounts payable from consultants settled with common stock</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">51,978</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Notes payable and embedded derivative liabilities &nbsp; converted to Common Stock</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">4,149,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">3,322,092</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">5,835,250</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Intangible assets acquired with notes payable</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">360,000</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Intangible assets acquired with common stock</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">70,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">70,000</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Debt discount in connection with recording the original value of the embedded derivative liability</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">3,505,605</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">578,770</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">6,166,817</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Allocation of the original secured convertible debentures to warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">214,950</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Allocation of the warrants on Bridge Notes as debt discount</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">778,052</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">712,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">2,431,049</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Note Receivable in connection with the exercise of warrants</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(661,500</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">10,659,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">9,998,210</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Warrants issued in connection with issuance of Common Stock</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">1,505,550</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Warrants issued in connection with issuance of Preferred Stock</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">3,587,625</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The accompanying notes and
the report of independent registered public accounting firm should be read in conjunction with the financial statements.</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><BR></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>ADVAXIS, INC.</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>(a development stage
company)</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>NOTES TO FINANCIAL
STATEMENTS</B></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>1. PRINCIPAL BUSINESS
ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Advaxis is a biotechnology
company developing the next generation of immunotherapies for cancer and infectious diseases. Our novel platform technology is
designed to generate a comprehensive immune response by serving as its own adjuvant, directing antigen presentation, increasing
tumor infiltrating killer T-cells, and decreasing Tregs/MDSCs in the tumor. Today, the Company has approximately 19 (19) distinct
constructs in various stages of development, directly developed by the Company and through strategic collaborations with recognized
<U>centers of excellence</U> such as: the <U>National Cancer Institute</U> , <U>Cancer Research &#8211; UK</U> , the <U>Wistar
Institute</U> , and the <U>University of Pennsylvania.</U></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Since the Company&#8217;s
inception in 2002, it has focused its initial development efforts upon immunotherapies targeting cervical cancer, its predecessor
condition, cervical intraepithelial neoplasia, head and neck cancer, breast cancer, prostate cancer, and other cancers and infectious
diseases. Although no products have been commercialized to date, research and development and investment continue to be placed
behind the pipeline and the advancement of this technology. Pipeline development entails risk and expense. It is anticipated that
ongoing operational costs for the Company will continue to increase significantly due to several ongoing clinical trials that began
this fiscal year.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Basis of Presentation</I></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The preparation of financial
statements in accordance with GAAP involves the use of estimates and assumptions that affect the recorded amounts of assets and
liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.&nbsp;
Actual results may differ substantially from these estimates.&nbsp; Significant estimates include the fair value and recoverability
of the carrying value of intangible assets (patents and licenses), the fair value of options, the fair value of embedded conversion
features, warrants and related disclosure of contingent assets and liabilities.&nbsp; On an on-going basis, we evaluate our estimates,
based on historical experience and on various other assumptions that we believe to be reasonable under the circumstances.&nbsp;
Actual results may differ from estimates.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Company&#8217;s products
are being developed and have not generated significant revenues.&nbsp; As a result, the Company has suffered recurring losses and
its liabilities exceed its assets which raises substantial doubt about its ability to continue as a going concern.&nbsp; These
losses are expected to continue for an extended period of time.&nbsp; The Company intends to continue raising funds through the
sale of both debt and equity in order to continue funding ongoing clinical trials activity.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The accompanying financial
statements have been prepared assuming that the Company will continue as a going concern. There is a working capital deficiency,
a shareholders&#8217; deficiency and recurring losses from operations that raise substantial doubt about its ability to continue
as a going concern. The financial statements do not include any adjustments to the carrying amount and classification of recorded
assets and liabilities should the Company be unable to continue operations.&nbsp; Management&#8217;s plans are to continue to raise
additional funds through the sales of debt or equity securities. Results of operations for the interim periods presented are not
necessarily indicative of results to be expected for the year.</P>

<P STYLE="text-indent: 0pt; margin: 0pt 0">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B><U>Summary of Significant
Accounting Policies</U></B></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Revenue Recognition</I></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Revenue from license fees
and grants is recognized when the following criteria are met; persuasive evidence of an arrangement exists, services have been
rendered, the contract price is fixed or determinable, and collection is reasonably assured. In licensing arrangements, delivery
does not occur for revenue recognition purposes until the license term begins. Nonrefundable upfront fees received in exchange
for products delivered or services performed that do not represent the culmination of a separate earnings process will be deferred
and recognized over the term of the agreement using the straight line method or another method if it better represents the timing
and pattern of performance. Since its inception, all of the Company&#8217;s revenues have been from multiple grants. For the year
ended October 31, 2011, the Company did not receive any revenue from grants.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">For revenue contracts that
contain multiple elements, revenue arrangements with multiple deliverables are divided into separate units of accounting if the
delivered item has value to the customer on a standalone basis and there is objective and reliable evidence of the fair value of
the undelivered item.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Concentration of Credit
Risk</I></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Company maintains its
cash in bank deposit accounts (money market) that at times exceed federally insured limits.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Fixed Assets</I></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Equipment is stated at
cost. Depreciation and amortization are provided for on a straight-line basis over the estimated useful life of the asset ranging
from 3 to 5 years. Expenditures for maintenance and repairs that do not materially extend the useful lives of the respective assets
are charged to expense as incurred. The cost and accumulated depreciation and/or amortization of assets retired or sold are removed
from the respective accounts and any gain or loss is recognized in operations.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Intangible Assets</I></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Intangible assets, which
consist primarily of legal and filing costs in obtaining patents and licenses and are being amortized on a straight-line basis
over 20 years.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">We review our long-lived
assets for impairment whenever events and circumstances indicate that the carrying value of an asset might not be recoverable and
its carrying amount exceeds its fair value, which is based upon estimated undiscounted future cash flows. Net assets recorded on
the balance sheet for patents and licenses related to ADXS-HPV, ADXS-PSA and ADXS-HER2 and other products are in development. However,
if a competitor were to gain FDA approval for a treatment before us or if future clinical trials fail to meet the targeted endpoints,
we would likely record an impairment related to these assets. In addition, if an application is rejected or fails to be issued
we would record an impairment of its estimated book value.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Net Loss Per Share</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Basic net income or
basic net loss per common share is computed by dividing net income available to common shareholders by the weighted average number
of common shares outstanding during the periods. Diluted earnings per share give effect to dilutive options, warrants, convertible
debt&nbsp;and other potential common stock outstanding during the period. Therefore, in the case of a net loss the impact of the
potential common stock resulting from warrants, outstanding stock options and convertible debt&nbsp;are not included in the computation
of diluted loss per share, as the effect would be anti-dilutive. In the case of net income the impact of the potential common stock
resulting from these instruments that have intrinsic value are included in the diluted earnings per share. The table sets forth
the number of potential shares of common stock that have been excluded from diluted net loss per share. For 2011 and 2010, approximately
49.4 million warrants and 86 million warrants, respectively (excluding approximately 25.6 million warrants and 15.8 million warrants,
respectively, held by an affiliate of Optimus as defined&nbsp; in Note #11) include anti-dilutive provisions to adjust the number
and price of the warrants based on certain types of equity transactions.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%">
<TR>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">As&nbsp;of&nbsp;October&nbsp;31,</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">2011</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 2px solid; vertical-align: bottom; font-weight: bold; text-align: center; text-indent: 0pt">2010</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; width: 70%; text-indent: 0pt">Warrants</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 12%; text-indent: 0pt">137,841,857</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 12%; text-indent: 0pt">103,139,628</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Stock Options</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">27,317,424</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">26,467,424</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0pt">Convertible Debt (using the if-converted method)</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">61,660,382</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">4,358,176</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: bottom; text-indent: 0pt">Total</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">226,819,663</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">133,965,228</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: top">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Income Taxes</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Deferred income taxes
are provided for the differences between the bases of assets and liabilities for financial reporting and income tax purposes. Future
ownership changes may limit the future utilization of these net operating loss and research and development tax credit carry-forwards
as defined by the Internal Revenue Code. The amount of any potential limitation is unknown. The net deferred tax asset has been
fully offset by a valuation allowance due to our history of taxable losses and uncertainty regarding our ability to generate sufficient
taxable income in the future to utilize these deferred tax assets.</P>

<P STYLE="text-indent: 0pt; margin: 0pt 0">&nbsp;&nbsp;</P>

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<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Accounts Payable</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Accounts payable consists
entirely of trade accounts payable.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Research and Development
Expenses</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Research and development
expenses include, but are not limited to, payroll and personnel expenses, lab expenses, clinical trial and related clinical manufacturing
costs, facilities and related overhead costs.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Accounting for Stock-Based
Compensation</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Stock-based compensation
is estimated at the grant date based on the award&#8217;s fair value as calculated by the Black-Scholes-Merton option-pricing model
(hereinafter referred to as the &#8220;BSM model&#8221;) and is recognized as expense over the requisite service period. The BSM
model requires various assumptions including volatility, forfeiture rates and expected option life. If any of the assumptions used
in the BSM model change significantly, stock-based compensation expense may differ materially in the future from that recorded
in the current period. See Note #2 for information on stock-based compensation expense incurred (in addition to the various assumptions
utilized in the BSM Model) in the years ending October 31, 2011 and 2010.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Warrant Liability/Embedded
Derivative Liability</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Company has outstanding
Warrants and convertible features (Embedded Derivatives) in its outstanding short-term convertible promissory notes (which include
our Bridge Notes, May 2011 Notes and October 2011 Notes). The Warrants and Embedded Derivatives are recorded at their relative
fair values at issuance.&nbsp; Those Warrants, which are classified as liabilities, along with all Embedded Derivatives will continue
to be recorded at fair value each subsequent balance sheet date. Any change in fair value between reporting periods will be reported
on the statement of operations. As of October 31, 2011, the Company had approximately 101 million of its outstanding warrants classified
as liabilities (liability warrants) and approximately 36.8 million of its outstanding warrants classified as equity (equity warrants).&nbsp;
At issuance, equity warrants are recorded at fair value in the stockholders equity section of the balance sheet. Our equity warrants
can only be settled through the issuance of shares and are not subject to anti-dilution provisions.&nbsp; A certain number of liability
warrants contain a cash settlement provision in the event of a fundamental transaction (as defined in the common stock purchase
warrant) and approximately 49.4 million of our approximately 101 million liability warrants are subject to anti-dilution provisions.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Recent Accounting Pronouncements</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Management does not
believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect
on the accompanying financial statements.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>2.&nbsp; SHARE-BASED
COMPENSATION EXPENSE</B></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Company adopted
ASC 718 and&nbsp;uses the modified prospective transition method, which requires the application of the accounting standard as
of November 1, 2005, the first day of the Company&#8217;s fiscal year 2006. In accordance with the modified prospective transition
method, the Company&#8217;s Financial Statements for prior periods were not restated to reflect, and do not include the impact
of ASC 718.&nbsp;The Company began recognizing expense in an amount equal to the fair value of share-based payments (stock option
awards) on their date of grant, over the requisite service period of the awards (usually the vesting period). Under the modified
prospective method, compensation expense for the Company is recognized for&nbsp;all share based payments granted and vested on
or after November&nbsp;1, 2005 and all awards granted to employees prior to November 1, 2005 that were unvested on that date but
vested in the period over the requisite service periods in the Company&#8217;s Statement of Operations. Prior to the adoption of
the fair value method, the Company accounted for stock-based compensation to employees under the intrinsic value method of accounting
set forth in Accounting Principles Board Opinion No.&nbsp;25, <I>Accounting for Stock Issued to Employees</I> , and related interpretations.
Therefore, compensation expense related to employee stock options was not reflected in operating expenses in any period prior to
the fiscal year of 2006 and prior period results have not been restated. Since the date of inception to October 31, 2005 had the
Company adopted the fair value based method of accounting for stock-based employee compensation under the provisions of ASC 718,
Stock Compensation expense would have totaled $328,176 and the effect on the Company&#8217;s net loss would have been as follows
for the period March 1, 2002 (date of inception) to October 31, 2011:</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%">
<TR>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; vertical-align: bottom; text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt"><B>March&nbsp;1,&nbsp;2002</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt"><B>(date&nbsp;of</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt"><B>inception)&nbsp;to</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt"><B>October&nbsp;31,</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt"><B>2011</B></P></TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; width: 82%; text-indent: 0pt">Net Loss as reported</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 15%; text-indent: 0pt">(35,487,856</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Add: Stock based option expense included in recorded net loss</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">89,217</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0pt">Deduct stock option compensation expense determined under fair value based method</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">(328,176</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: bottom; text-indent: 0pt">Adjusted Net Loss</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; vertical-align: top; text-indent: 0pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">(35,726,815</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The fair value of each
option granted from the Company&#8217;s stock option plans during the years ended October 31, 2011 and 2010 was estimated on the
date of grant using the Black-Scholes option-pricing model. Using this model, fair value is calculated based on assumptions with
respect to (i)&nbsp;expected volatility of the Company&#8217;s Common Stock price, (ii) the periods of time over which employees
and Board Directors are expected to hold their options prior to exercise (expected lives), (iii)&nbsp;expected dividend yield
on the Company&#8217;s Common Stock, and (iv)&nbsp;risk-free interest rates, which are based on quoted U.S. Treasury rates for
securities with maturities approximating the options&#8217; expected lives.&nbsp; The company used their own historical volatility
in determining the volatility to be used. Expected lives are based on contractual terms given the early stage of the business
and lack of intrinsic value. The expected dividend yield is zero as the Company has never paid dividends to common shareholders
and does not currently anticipate paying any in the foreseeable future.<BR></P>

<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; text-indent: 0pt">Year&nbsp;Ended</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; text-indent: 0pt">Year&nbsp;Ended</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: center"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 2px; font-weight: bold; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>October&nbsp;31,</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>2011</B></P></TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: center; font-weight: bold"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 2px; font-weight: bold; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>October&nbsp;31,</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>2010</B></P></TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: center; font-weight: bold"><B>&nbsp;</B></TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 70%; text-indent: 0pt">Expected volatility</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 12%">150.44</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%">%</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 12%">156.5</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%">%</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Expected Life</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; text-indent: 0pt">10.0 years</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; text-indent: 0pt">10.0 years</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Dividend yield</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Risk-free interest rate</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3.50</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">%</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2.75</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">%</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Stock-based compensation
expense recognized during the period is based on the value of the portion of share-based payment awards that vested during the
period. Stock-based compensation expense for the twelve months ended October 31, 2011 includes compensation expense for share-based
payment awards granted prior to, but not yet vested as of October&nbsp;31, 2005 based on the grant date fair value and compensation
expense for the share-based payment awards granted subsequent to October 31, 2005 based on the grant date fair value estimated
in accordance with the provisions of ASC 718. Compensation expense for all share-based payment awards to be recognized using the
straight line method over the requisite service period. As stock-based compensation expense for the fiscal years 2011 and 2010
is based on awards granted and vested, it has been reduced for estimated forfeitures (4.4%). ASC 718 requires forfeitures to be
estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.
In the Company&#8217;s pro forma information required under SFAS 123 for the periods prior to fiscal 2006, the Company accounted
for forfeitures as they occurred.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Company accounts for
nonemployee stock-based awards in which goods or services are the consideration received for the equity instruments issued based
on the fair value of the equity instruments.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>3. INTANGIBLE ASSETS</B></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Intangible assets primarily
consist of legal and filing costs associated with obtaining patents and licenses. The license and patent costs capitalized primarily
represent the value assigned to the Company&#8217;s 20-year exclusive worldwide license agreement with Penn which are amortized
on a straight-line basis over their remaining useful lives which are estimated to be twenty years from the effective date of Penn
Agreement dated July 1, 2002. The value of the license and patents are based on management&#8217;s assessment regarding the ultimate
recoverability of the amounts paid and the potential for alternative future uses. This license now includes the exclusive right
to exploit 39 patents issued and 37 patents pending and applied for in most of the largest markets in the world.&nbsp;</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">As of October 31, 2011,
all gross capitalized costs associated with the licenses and patents filed and granted as well as costs associated with patents
pending are $2,769,497 as shown under licenses and patents on the table below. The expirations of the existing patents range from
2014 to 2023 but the expirations can be extended based on market approval if granted and/or based on existing laws and regulations.
Capitalized costs associated with patent applications that are abandoned without future value are charged to expense when the determination
is made not to pursue the application. During the fiscal year ended October 31, 2011,&nbsp;the Company wrote off approximately
$33,000 in capitalized patent costs related to four patent applications that had expired or were abandoned. Nopatent applications
with future value were abandoned or expired and charged to expense in the prior year. Amortization expense for licensed technology
and capitalized patent cost is included in general and administrative expenses.</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;<BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Under the amended and
restated agreement we are billed actual patent expenses as they are passed through from Penn and or billed directly from our patent
attorney. The following is a summary of intangible assets as of the end of the following fiscal periods:&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%">
<TR>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; vertical-align: bottom; text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>October&nbsp;31,</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>2011</B></P></TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: center; vertical-align: top"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: center; vertical-align: top"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; vertical-align: bottom; text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>October&nbsp;31,</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>2010</B></P></TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; width: 76%; text-indent: 0pt">License</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 9%; text-indent: 0pt">651,992</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 9%; text-indent: 0pt">651,992</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0pt">Patents</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">2,117,505</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">1,854,355</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Total intangibles</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">2,769,497</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">2,506,347</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0pt">Accumulated Amortization</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">(512,645</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top; text-indent: 0pt">)</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">(380,356</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: bottom; text-indent: 0pt">Intangible Assets</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; vertical-align: top; text-indent: 0pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">2,256,852</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; vertical-align: top; text-indent: 0pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">2,125,991</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: top">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Estimated amortization
expense for the next five years is as follows:&nbsp;</P>

<P STYLE="text-align: left; margin-left: 27pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%">
<TR>
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Year ended October 31,</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; width: 82%; text-indent: 0pt">2012</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 15%; text-indent: 0pt">140,000</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">2013</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">140,000</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">2014</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">140,000</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">2015</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">140,000</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">2016</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">140,000</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp; <B>4. ACCRUED EXPENSES:</B></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The following table represents
the major components of accrued expenses:&nbsp;</P>

<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>October&nbsp;31,</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>2011</B></P></TD>
    <TD NOWRAP="nowrap" STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>October&nbsp;31,</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>2010</B></P></TD>
    <TD NOWRAP="nowrap" STYLE="text-align: center"><B>&nbsp;</B></TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 70%; text-indent: 0pt">Salaries and other compensation</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">$</TD>
    <TD STYLE="text-align: right; width: 12%">531,041</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">$</TD>
    <TD STYLE="text-align: right; width: 12%">500,927</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-left: 9pt; text-align: left; text-indent: 0pt">Sponsored Research Agreement</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">119,698</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-left: 9pt; text-align: left; text-indent: 0pt">Clinical Research Organization (CRO)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,358,247</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-left: 9pt; text-align: left; text-indent: 0pt">Consultants</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">32,200</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18,000</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-left: 9pt; text-align: left; text-indent: 0pt">Legal</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">46,346</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-left: 9pt; text-align: left; text-indent: 0pt">Other</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,500</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,500</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">2,976,334</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">647,125</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;<B>5. NOTES PAYABLE:</B></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Moore Notes</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On September 22, 2008,
Advaxis entered into an agreement (the &#8220;Moore Agreement&#8221;) with the Company&#8217;s Chief Executive Officer, Thomas
Moore, pursuant to which the Company agreed to sell senior promissory notes to Mr. Moore, from time to time (&#8220;the Moore Notes&#8221;).
On June 15, 2009, Mr. Moore and the Company amended the Moore Notes to increase the amounts available pursuant to the Moore Agreement
from $800,000 to $950,000 and change the maturity date of the Moore Notes from June 15, 2009 to the earlier of January 1, 2010
or the Company&#8217;s next equity financing resulting in gross proceeds to the Company of at least $6 million.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On February 15, 2010, we
agreed to amend the terms of the Moore Notes such that (i) Mr. Moore may elect, at his option, to receive accumulated interest
thereon on or after March 17, 2010, (ii) we would begin to make monthly installment payments of $100,000 on the outstanding principal
amount beginning on April 15, 2010; provided, however, that the balance of the principal will be repaid in full on consummation
of our next equity financing resulting in gross proceeds to us of at least $6.0 million and (iii) we would retain $200,000 of the
repayment amount for investment in our next equity financing.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On March 17, 2011, in
connection with a loan made by our Chief Executive Officer, Thomas A. Moore, to us in the amount of $230,000, we agreed to further
amend and restate the terms of the amended and restated senior promissory note held by Mr. Moore (the &#8220;Moore Notes&#8221;)
..&nbsp; Under the terms of the amended and restated Moore Notes: (i) the maturity date is the earlier of (x) the date of consummation
of an equity financing by us in an amount of $6.0 million or more and (y) the occurrence of any event of default as defined in
the Moore Notes, (ii) Mr. Moore may elect, at his option, to receive accumulated interest thereon on or after April 15, 2011,
(iii) we will make monthly installment payments of $100,000 on the outstanding principal amount beginning on June 15, 2011, and
(iv) we may retain, at the option of Mr. Moore, $200,000 of the repayment amount for investment in our next equity financing.&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;In addition, Mr.
Moore acquired a Note in the October 2011 Offering in exchange for the cancellation of $400,000 of outstanding indebtedness owed
by the Company under the Moore Notes.&nbsp; As an investor in the October 2011 Offering, Mr. Moore received 1,568,627 warrants
at an exercise price of $0.15. These warrants expire in October 2014.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;For the twelve months
ending October 31, 2011, the Company paid Mr. Moore $200,000 in principal and approximately $5,500 in interest on the Moore Notes.&nbsp;
As of October 31, 2011 and October 31, 2010, respectively, the Company was not in default under the terms of the Moore Agreement.&nbsp;
As of October 31, 2011, the Company owed Mr. Moore approximately $273,000 in principal and approximately $135,000 in accrued interest
under the Moore Notes.&nbsp; As of October 31, 2010, the Company owed Mr. Moore approximately $573,000 in principal and approximately
$57,000 in accrued interest under the Moore Notes.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Senior Convertible Promissory
Notes</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Effective June 18, 2009,
the Company entered into a Note Purchase Agreement with certain accredited investors, pursuant to which such investors acquired
senior convertible promissory notes of the Company.&nbsp; At July 31, 2011, the Company had one outstanding senior convertible
promissory note with $88,824 in principal value and $26,471 in accrued interest remaining.&nbsp; On August 19, 2011, the Company
issued 768,633 shares of common stock to this investor in full satisfaction of this senior convertible promissory note.&nbsp; As
of October 31, 2011, the Company had no remaining senior convertible promissory notes outstanding.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Junior Subordinated
Convertible Promissory Notes</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">At October 31, 2010,
the Company had approximately $688,000 in outstanding principal related to its Junior Subordinated Convertible Promissory Notes.&nbsp;
During the twelve months ended October 31, 2011, the Company entered into Junior Subordinated Convertible Promissory Notes in the
aggregate principal value of&nbsp; $1,886,851 for aggregate net purchase prices of $1,670,000.&nbsp; These notes had maturity dates
ranging from December 31, 2010 to October 31, 2012.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">During the twelve month
period ended October 31, 2011, the Company reached agreement with ten investors, whose notes were to mature on dates ranging from
December 31, 2010 to April 30, 2011, in the aggregate principal value of approximately $479,000 (included in the above aggregate
principal value of $1,886,851) to exchange their original notes for new notes due on dates ranging from March 31, 2011 to August
2, 2011.&nbsp; In return for exchanging their notes, these investors received additional interest of $25,208 plus approximately
816,000 additional warrants, valued using the BSM model, at approximately $87,000.&nbsp;</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">During the twelve month
period ended October 31, 2011,the Company reached agreement with three investors, whose notes were to mature on dates ranging
between August 1 and October 31, 2011,in the aggregate principal value of approximately$318,000 (included in the above aggregate
principal value of $1,886,851) to make partial repayments on their notes totaling $99,000 and exchanged the remaining principal
on the original notes for new notes (with the same amount of principal) due on dates ranging from March 31, 2012 to May 31, 2012.&nbsp;&nbsp;These
three investors also received approximately 730,000 additional warrants, valued using the BSM model, totaling approximately $80,000.<BR>
&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Company accounted
for two of these three note exchanges as substantial debt modifications under ASC 470-50: <U>Debt Modifications and Extinguishments</U>.
Therefore, the Company recorded the present values of the principal on the new notes along with the fair value of the additional
warrants issued and wrote off the remaining principal on the old notes.&nbsp;&nbsp;The Company then recorded a loss on exchange
of approximately $22,000 (other income/(expense)) for the difference between (1) the sum of the remaining principal on the old
notes and (2) the sum of the present values of the principal on the new notes and the fair value of the additional warrants. For
the third investor, the Company recorded approximately $27,000 to equity (included in the above fair value of $80,000), representing
the fair value of the additional warrants issued upon exchange of their note.</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">During the twelve month
period ended October 31, 2011, the Company repaid approximately $530,000 in principal and interest.&nbsp; In addition, the Company
converted approximately $1.3 million of principal and interest on these outstanding junior subordinated convertible promissory
notes into 8,652,737 shares of the Company&#8217;s common stock at a conversion price of $0.15 per share.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">As of October 31, 2011,
the Company had approximately $756,000(in principal to be repaid to investors) in outstanding junior subordinated convertible promissory
notes with Original Issue Discount (&#8220;OID&#8221;) amounts ranging from 10% to 15% and with maturity dates ranging from October
19, 2011 to May 12, 2012.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">We refer to all Senior
Convertible Promissory Notes and Junior Subordinated Convertible Promissory Notes as &#8220;Bridge Notes&#8221;.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Bridge Notes are
convertible into shares of the Company&#8217;s common stock at an exercise price contingent on the completion of an equity financing.
For every dollar invested in our Bridge Notes, each Investor received warrants to purchase between 1&frac12; and 2 &frac12; shares
of common stock (the &#8220;Bridge Warrants&#8221;) subject to adjustments upon the occurrence of certain events as more particularly
described below and in the form of Warrant. As of October 31, 2011, substantially all of the Bridge Warrants have an exercise
price of $.15 per share. The Bridge Notes may be prepaid in whole or in part at the option of the Company without penalty at any
time prior to the Maturity Date. The warrants may be exercised on a cashless basis under certain circumstances.&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>May 2011 Note Financing</I></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On May 9, 2011, we entered
into a Note Purchase Agreement with certain accredited investors, whereby the Company issued to investors acquired approximately
$7.1 million of our convertible promissory notes, which we refer to as the May 2011 Notes, for an aggregate purchase price of approximately
$6.0 million in a private placement.&nbsp; The May 2011 Notes were issued with an original issue discount of 15%. Each investor
paid $0.85 for each $1.00 of principal amount of May 2011 Notes purchased at the closing on May 12, 2011. The May 2011 Notes are
convertible into shares of our common stock, at a per share conversion price equal to $0.15. Additionally, each investor received
a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable
upon conversion of the May 2011 Note at an exercise price of $0.15 per share.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The May 2011 Notes mature
on May 12, 2012. We may redeem the May 2011 Notes, at the option of the Company only, under certain circumstances. The warrants
are exercisable at any time on or before May 12, 2014. The warrants may be exercised on a cashless basis under certain circumstances.&nbsp;
To the extent an investor does not elect to convert its May 2011 Notes as described above, the principal amount not so converted
on or prior to the maturity date shall be payable in cash on the maturity date.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The May 2011Notes may be
converted by the investors, at the option of such investor, in whole or in part. However, except as otherwise provided, only 85%
of the initial principal amount of each May 2011 Note is convertible prior to maturity. The May 2011 Notes and warrants include
a limitation on conversion or exercise, which provides that at no time will an investor be entitled to convert any portion of the
May 2011 Notes or exercise any of the warrants, to the extent that after such conversion or exercise, such investor (together with
its affiliates) would beneficially own more than 4.99% of the outstanding shares of our common stock as of such date.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">During the twelve months
ended October 31, 2011, the Company converted approximately $1,897,000 in principal into 12,647,077 shares of the Company&#8217;s
common stock at a conversion price of $0.15.&nbsp; At October 31, 2011, the Company had approximately $5.18 million in principal
outstanding on the May 2011 Notes.</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>October 2011 Note Financing</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0 0pt 18pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On October 28, 2011, we
entered into a Note Purchase Agreement, which we refer to as the October 2011 Notes, with certain accredited investors, including
Thomas A. Moore, our Chairman and Chief Executive Officer, and Mark J. Rosenblum, our Chief Financial Officer, (Mr. Rosenblum acquired
a note in the principal amount of approximately $59,000 for an aggregate purchase price of $50,000) whereby the investors acquired
approximately $2.3 million of our convertible promissory notes, which we refer to as the Notes, for an aggregate purchase price
of approximately $2.0 million in a private placement, which we refer to as the October 2011 offering. The Notes were issued with
an original issue discount of 15%. Each investor paid $0.85 for each $1.00 of principal amount of Notes purchased at the closing
of the October 2011 offering, which took place on October 31, 2011. The Notes are convertible into shares of our common stock,
at a per share conversion price equal to $0.15. Additionally, each investor received a warrant, which we refer to as the Warrants,
to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable upon conversion
of the Note at an exercise price of $0.15 per share.&nbsp; The Notes purchased in the October 2011 offering were paid for in cash
or, with respect to Notes acquired by Mr. Moore, in exchange for the cancellation of $400,000 of outstanding indebtedness owed
by us to Mr. Moore.</P>

<P STYLE="text-align: justify; text-indent: 27pt; margin: 0pt 0 0pt 18pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Notes mature on October
31, 2012. We may redeem the Notes under certain circumstances. The Warrants are exercisable at any time on or before October 31,
2014. The Warrants may be exercised on a cashless basis under certain circumstances.</P>

<P STYLE="text-align: justify; text-indent: 27pt; margin: 0pt 0 0pt 9pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">To the extent an investor
does not elect to convert its Notes as described above, the principal amount of the Notes not so converted on or prior to the maturity
date shall be payable in cash on the maturity date.</P>

<P STYLE="text-align: justify; text-indent: 27pt; margin: 0pt 0 0pt 9pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Notes may be converted
by the investors, at the option of such investor, in whole or in part.&nbsp; However, except as otherwise provided in the Notes,
only 85% of the initial principal amount of each Note is convertible prior to maturity.&nbsp; The Notes and Warrants include a
limitation on conversion or exercise, which provides that at no time will an investor be entitled to convert any portion of the
Notes or exercise any of the Warrants, to the extent that after such conversion or exercise, such investor (together with its affiliates)
would beneficially own more than 4.99% of the outstanding shares of our common stock as of such date.</P>

<P STYLE="text-align: justify; text-indent: 27pt; margin: 0pt 0 0pt 9pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In connection with the
October 2011 offering, we entered into a Registration Rights Agreement, dated as of October 28, 2011 with the investors.&nbsp;
Pursuant to such agreement, we agreed with the investors to provide certain rights to register under the Securities Act of 1933,
as amended, the shares of our common stock issuable upon any conversion of the Notes and the exercise of the Warrants, and filed
a registration statement to register the offering of the shares of our common stock issuable upon conversion of the Notes and the
exercise of the Warrants which became effective on November 23, 2011.</P>

<P STYLE="text-align: justify; text-indent: 27pt; margin: 0pt 0 0pt 9pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Rodman &amp; Renshaw, LLC,
which we refer to as Rodman, a subsidiary of Rodman &amp; Renshaw Capital Group, Inc. (NASDAQ:RODM) acted as the exclusive placement
agent in connection with the October 2011 offering and received compensation of a cash placement fee equal to 7% of the aggregate
purchase price paid by investors in the October 2011 offering (approximately $110,000) and Warrants to purchase 866,078 shares
of our common stock (approximately 7% of the shares of our common stock issuable upon conversion of the Notes, except for the Notes
issued to Mr. Moore), which warrants are exercisable at $0.15 per share and shall expire on October 31, 2014.</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0">&nbsp;&nbsp;<BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">As of October 31, 2011,
all the October 2011 Notes remained outstanding.</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">We refer to all convertible
promissory notes with a maturity date less than one year (the Bridge Notes, May 2011 Notes and October 2011 Notes) collectively
as &#8220;Short-term Convertible Promissory Notes&#8221;&nbsp;</P>

<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%">
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; width: 82%; text-indent: 0pt">Short-term Convertible Promissory Notes &#8211; Principal Value - Issued</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 15%; text-indent: 0pt">16,039,350&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Principal payments on Bridge Notes</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(2,071,910&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Short-term Convertible Promissory Note Conversions</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(5,704,169&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Bridge Note Exchanges</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(26,357)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Original Issue Discount, net of accreted interest</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(1,300,347&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Fair Value of Attached Warrants at issuance</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(5,234,373&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Fair Value of Embedded Derivatives at issuance</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(5,727,932&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0pt">Accreted interest on embedded derivative and warrant liabilities</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">8,170,990&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0pt">Convertible Notes- as of&nbsp; October 31, 2011</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">4,145,252&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0pt">Embedded Derivatives Liability at October 31, 2011</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">946,046&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: bottom; text-indent: 0pt">Short-Term Convertible Promissory Notes&nbsp; and fair value of embedded derivative</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; vertical-align: top; text-indent: 0pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">5,091,298&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: top">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>BioAdvance Note</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">BioAdvance Biotechnology
Greenhouse of Southeastern Pennsylvania Notes (&#8220;BioAdvance&#8221;) received notes from the Company for $10,000 dated November
13, 2003 and $40,000 dated December 17, 2003 that were each due on the fifth anniversary date thereof.&nbsp; At October 31, 2010,
the Company owed approximately $40,000 in principal and approximately $12,000 in interest to BioAdvance.&nbsp; During the year
ended October 31, 2011, the Company accrued additional interest of approximately $1,600, for total accrued interest of approximately
$13,630.&nbsp; In May 2011, the Company repaid BioAdvance&nbsp;$50,000 in full satisfaction of the outstanding note.&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;<BR></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Long-term Convertible
Promissory Notes</I></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On April 28, 2011, Advaxis,
Inc. issued and sold to an accredited investor a convertible promissory note of the Company (&#8220;Long-term Convertible Promissory
Notes&#8221;) in the aggregate principal amount of $500,000 (together with the related ancillary documents, the &#8220; <U>A-Note</U>
&#8221;) in return for the payment in cash from the Investor of $500,000.&nbsp; The A-Note bears interest in the form of a one
time interest charge of 8% of the principal amount of the A-Note, payable with the A-Note&#8217;s aggregate principal amount outstanding
on the maturity date, April 28, 2014.&nbsp; The A-Note is convertible, in whole or in part, into shares of the Company&#8217;s
common stock, $0.001 par value. at a per share conversion price equal to 80% of the average of the two lowest trade prices for
the Common Stock in the 20 trading days previous to the effective date of each such conversion, subject to a conversion floor of
$0.15.&nbsp; The A-Note may be prepaid by the Company without penalty beginning twelve months after issue date of the A-Note.&nbsp;
To the extent the Investor does not elect to convert the A-Note as described above, the principal amount of the A-Note not so converted
shall be payable in cash on the maturity date.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On April 28, 2011, the
Company also issued and sold to the same accredited investor a convertible promissory note of the Company (&#8220;Long-term Convertible
Promissory Notes&#8221;) in the aggregate principal amount of $800,000 (together with the related ancillary documents, the &#8220;
<U>B-Note</U> &#8221; and together with the A-Note, the &#8220; <U>Company Notes</U> &#8221;). The B-Note bears interest in the
form of a one time interest charge of 8% of the principal amount of the B-Note, payable with the B-Note&#8217;s aggregate principal
amount outstanding on the maturity date, April 28, 2014.&nbsp; All or any portion of the aggregate principal and interest outstanding
under the B-Note is convertible, at the option of the Investor from time to time (subject to the prior pre-payment of the such
principal amount of the C-Note (as defined below) equal to the such principal amount of the B-Note subject to such conversion),
into shares of Common Stock, at a per share conversion price equal to 80% of the average of the two lowest trade prices for the
Common Stock in the 20 trading days previous to the effective date of each such conversion, subject to a conversion floor of $0.15.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Concurrently with the issuance
of the B-Note, the Investor issued and delivered to the Company a secured and collateralized promissory note (together with the
related ancillary documents, the &#8220; <U>C-Note</U> &#8221;), which served as the sole consideration paid to the Company for
the Company&#8217;s issuance of the B-Note to the Investor.&nbsp; The C-Note was issued in the aggregate principal amount of $800,000,
bears interest in the form of a one time interest charge of 8% of the principal amount of the C-Note, payable with the C-Note&#8217;s
aggregate principal amount outstanding on the maturity date, April 28, 2014.&nbsp; The C-Note is to be secured by $800,000 of an
unspecified money market fund, or other assets, having a value of at least $800,000.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Immediately after the purchase
by the Investor of the B-Note for the C-Note, the Investor delivered to the Company the sum of $80,000 in cash as a pre payment
on the principal amount outstanding under the C-Note.&nbsp; In September 2011, the investor delivered another $80,000 under this
note.&nbsp; While no further mandatory principal or interest payments are due on the C-Note until its maturity date, the C-Note
contemplates (but does not require) further voluntary pre payments by the Investor on the C-Note to the Company at the approximate
rate of $250,000 per month, beginning seven months after the issuance of the C-Note, or commencing on or about November 28, 2011,
but only provided: (i) all requests by the Investor for conversion of principal and interest on the B-Note are honored and (ii)
the Common Stock issued upon such conversions of portions of the principal and interest on the B-Note may be freely resold by the
Investor without the requirement of any restrictive legend pursuant to applicable securities laws, rules and regulations.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Additionally, the Investor
may purchase up to an additional $2.3 million in aggregate principal amount of notes in the form of the B-Note from the Company
(each, an &#8220; <U>Additional B-Note</U> s&#8221;).&nbsp; The purchase price for each such Additional B-Note issued to the Investor
will be paid by the issuance by the Investor to the Company of an additional note in the form of the C-Note (each, an &#8220; <U>Additional
C-Note</U> &#8221;), with such Additional B-Notes and Additional C-Notes containing the same terms and provisions described above.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">We refer to all convertible
promissory notes, with a maturity date greater than one year collectively as &#8220;Long-term Convertible Promissory Notes.&#8221;</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">As of October 31, 2011,
the Company owed $712,800 in outstanding principal under the Long-term Convertible Promissory Notes.&nbsp; Due to the conversion
feature into a variable number of shares these notes are valued at fair value at each report period.&nbsp; As of October 31, 2011,
the fair value of the notes was $570,802.&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>6.&nbsp; DERIVATIVES</B></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The table below lists the
Company&#8217;s derivative instruments as of October 31, 2011:</P>

<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD NOWRAP STYLE="text-align: left; vertical-align: bottom">Description</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="vertical-align: bottom; text-align: center">Principal</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="vertical-align: bottom; text-align: center">
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Original</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Issue</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Discount</P></TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="vertical-align: bottom; text-align: center">
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Warrant</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Liability</P></TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="vertical-align: bottom; text-align: center">
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Embedded</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Derivative</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Liability</P></TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 52%; text-indent: 0pt">Bridge Note 1-June 18, 2009</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; width: 9%; text-indent: 0pt">1,131,353&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; width: 9%; text-indent: 0pt">169,703</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; width: 9%; text-indent: 0pt">250,392&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; width: 9%; text-indent: 0pt">711,258</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Bridge Note II &amp; III-October 26 &amp; 30, 2009</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">2,147,059&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">322,059</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">690,119&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">868,388</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Optimus September 24, 2009</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">3,587,625&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Other outstanding warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">12,785,695&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">&nbsp; Total Valuation at Origination</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">3,278,412&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">491,762</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">17,313,831&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">1,579,646</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Change in fair value</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(5,352,697&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(493,132</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Accreted interest</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(123,846</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">Total Valuation as of October 31, 2009</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">3,278,412&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">367,916</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">11,961,734&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">1,086,514</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Bridge Notes IV-December 1, 2009 through January 31. 2010</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">555,882&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">83,382</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">207,617&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">164,400</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Bridge Note I- Extension of Maturity Date</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">202,500&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">103,400</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Change in fair value</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">1,995,372&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(905,259</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Accreted interest</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(225,321</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Exercise of Common Stock Warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(1,702,073&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">Total Valuation as of January 31, 2010</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">3,834,294&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">225,977</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">12,665,150&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">449,055</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Bridge Note V</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">640,307&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">97,807</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">229,619&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">271,554</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Change in fair value</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">5,363,854&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">421,404</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Accreted interest</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(251,188</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Exercise of common stock warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(1,790,823&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Note Payoffs</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(1,040,177&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(4,222</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(64,354</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">Total Valuation as of April 30, 2010</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">3,434,424&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">68,374</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">16,467,800&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">1,077,659</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Issuance of Optimus Warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">6,856,946&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Bridge Note Conversions</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(2,420,373&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(701,718</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Change in fair value</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(3,866,801&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(260,843</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Accreted interest</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(50,842</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Exercise of common stock warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(1,475,758&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Note Payoffs</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(88,236&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(12,665</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">Total Valuation as of July 31, 2010</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">925,815&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">17,532</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">17,982,187&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">102,433</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Bridge Note VI</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">265,457&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">25,457</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">72,300&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">39,416</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Note Payoff</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(414,118&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(46,945</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Issuance of Warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">1,042,559&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Accreted Interest</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(21,052</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Exercise of Warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(4,156,797&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-left: 9pt; text-align: left; text-indent: 0pt">Change in FV</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(1,934,055&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(13,876</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-left: 9pt; text-align: left; font-weight: bold; text-indent: 0pt">Total Valuation at October 31, 2010</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">777,154&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">21,937</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">13,006,194&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">81,028</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-left: 9pt; text-align: left; text-indent: 0pt">Issuance of November 2010 Bridge Notes</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">931,579&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">96,579</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">391,076&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">150,156</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Exchange of November 2010 Bridge Notes</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">17,175&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">17,175</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">86,963&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">9,389</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Issuance of January 2011 Bridge Notes</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">452,941&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">57,941</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">173,808&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">41,024</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Note Payoffs</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(187,582&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Issuance of Warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">35,523&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Accreted Interest</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(73,363</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Exercise of Warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(1,382,847&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Change in FV</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(3,789,889&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(51,972</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">Total Valuation at January 31, 2011</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">1,991,267&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">120,269</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">8,520,828&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">229,625</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Issuance of Q2 2011 Bridge Notes</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">473,392&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">43,392</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">121,238&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">71,336</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Issuance of Long-term Convertible Promissory Notes</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">626,400&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Note Payoffs</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(159,675&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(5,904</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Issuance of Warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">2,990,520&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Accreted Interest</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(74,422</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Exercise of Warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(639,960&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Change in FV</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">4,915,676&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">763,523</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">Total Valuation at April 30, 2011</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">2,931,384&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">89,239</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">15,908,302&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">1,058,580</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Issuance of Q3 2011 Bridge Notes</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">11,765&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">1,765</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">4,968&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">5,051</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Issuance of May 2011 Notes</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">7,077,936&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">1,553,254</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">2,719,345</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Note Payoffs</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(26,316&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(8,860</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Additional warrants issued to Bridge Note holder</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">36,376&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Exchange of&nbsp; Bridge Notes</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">8,033&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">8,033</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">2,656</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Conversion of Bridge Notes</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(1,164,947&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(381,209</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Conversion of May 2011 Notes</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(671,500&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(166,980</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Exchanges/Exercises of October 2007 Warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(1,186,959&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Accreted Interest</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(340,050</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Change in FV</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(6,826,019&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(2,141,984</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">Total Valuation at July 31, 2011</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">8,166,355&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">1,312,241</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">7,936,668&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; text-indent: 0pt">1,086,599</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Issuance of October 2011 Notes</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">2,326,471&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">459,396</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">396,818</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Note Payoffs</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(155,806&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Issuance of Long-term Convertible Promissory Notes</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">86,400&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Conversion of Bridge Notes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(221,788)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(10,530</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Conversion of May 2011 Notes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(1,225,561)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(110,494</TD>
    <TD STYLE="text-align: left; font-weight: bold; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Reclassification of Warrant liability to Equity</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(186,908)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Exchange of Warrants</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">816,259&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Accreted Interest</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(471,290</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; text-indent: 0pt">Change in FV</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; text-indent: 0pt">(2,174,948&nbsp;)</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; text-indent: 0pt">(416,347</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; font-weight: bold; text-indent: 0pt">)&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-bottom: 4px; text-align: left; font-weight: bold; text-indent: 0pt">Total Valuation at October 31, 2011</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left; font-weight: bold; text-indent: 0pt">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-weight: bold; text-indent: 0pt">8,976,071&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-weight: bold; text-indent: 0pt">1,300,347</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-weight: bold; text-indent: 0pt">6,391,071&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; font-weight: bold; text-indent: 0pt">946,046</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin: 0pt 0">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Warrants</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">As of October 31, 2011,
there were outstanding warrants to purchase 137,841,857 shares of our common stock with exercise prices ranging from $0.15 to
$0.1952 per share. Information on the outstanding warrants is as follows:<BR></P>

<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 2px solid; text-align: center">Type</TD>
    <TD STYLE="padding-bottom: 2px; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center">
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Exercise</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Price</P></TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center">Amount</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: center">Expiration&nbsp;Date</TD>
    <TD STYLE="padding-bottom: 2px; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: center">Type&nbsp;of&nbsp;Financing</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: top">
    <TD STYLE="text-align: left; width: 23%; text-indent: 0pt">Common Stock Purchase Warrant</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">$</TD>
    <TD STYLE="text-align: right; width: 9%">0.15</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 9%">47,090,487</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 22%; text-indent: 0pt">August &#8211; October 2012</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 30%; text-indent: 0pt">2007&nbsp; Securities Purchase Agreement</TD></TR>
<TR STYLE="background-color: white; vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0pt">Common Stock Purchase Warrant</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.15</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">287,001</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">August 2012</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">August 2007 Notes</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0pt">Common Stock Purchase Warrant</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.15</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,593,122</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">May 2014</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">May 2011 Convertible Debt Financing</TD></TR>
<TR STYLE="background-color: white; vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0pt">Common Stock Purchase Warrant</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.15</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,754,902</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">October 2014</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">October 2011 Convertible Debt Financing</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0pt">Common Stock Purchase Warrant</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: right">0.15 - $0.17</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,630,101</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">January 2013 &#8211; April 2015</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">Bridge Notes</TD></TR>
<TR STYLE="background-color: white; vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0pt">Common Stock Purchase Warrant</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.15</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,674,512</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">August 2014</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">Executive Officer</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0pt">Common Stock Purchase Warrant</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: right">0.15-$0.1952</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">446,956</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">February 2012</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">Vendor &amp; Other</TD></TR>
<TR STYLE="background-color: white; vertical-align: top">
    <TD STYLE="padding-bottom: 2px; text-align: left; text-indent: 0pt">Common Stock Purchase Warrant</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">0.15</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">2,804,776</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; text-indent: 0pt">May 2014 - November 2015</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; text-indent: 0pt">Placement Agent &#8211; Convertible Debt Financing</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; font-weight: bold; text-indent: 0pt">Subtotal</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left; font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">112,281,857</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0pt">Common Stock Purchase Warrant</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; text-indent: 0pt">TBD (1)</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,560,000</TD>
    <TD NOWRAP="nowrap" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">April 2014</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">Optimus Preferred Stock Agreement (4/04/2011)</TD></TR>
<TR STYLE="background-color: white; vertical-align: top">
    <TD STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-weight: bold; text-indent: 0pt">Grand Total</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">137,841,857</TD>
    <TD NOWRAP="nowrap" STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">(1)&nbsp; &nbsp; For purposes
of this warrant, exercise price means an amount per warrant share equal to the closing sale price of a share of common stock on
the applicable tranche notice date.</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><I>&nbsp;</I></P>

<P STYLE="text-indent: 0pt; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><I>Warrant Liability/Embedded
Derivative Liability</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp; The fair value
of the Warrants and Embedded Derivatives are estimated using an adjusted BSM model. The Company computes multiple valuations, each
quarter, using the BSM model for each derivative instrument to account for the various possibilities that could occur due to changes
in the inputs to the BSM model as a result of contractually-obligated changes (for example, changes in strike price to account
for down-round provisions).&nbsp;The Company effectively weights each calculation based on the likelihood of occurrence to determine
the value of the derivative at the reporting date. As of October 31, 2011, the fair value of the Warrants and Embedded Derivatives
were determined to be approximately $6.4 million and $946,000, respectively.&nbsp; As of October 31, 2010, the fair value of the
Warrants and Embedded Derivatives were determined to be approximately $13.0 million and $81,000, respectively. We increased income
approximately $9.8 million for net changes in the fair value of the common stock warrant liability and embedded derivative liability
for the year ending October 31, 2011. We increased income approximately $446,000 for net changes in the fair value of the common
stock warrant liability and embedded derivative liability for year ending October 31, 2010.&nbsp;</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">During the year ended
October 31, 2011, investors in the Company exercised 7,233,341 warrants at a price of $0.15, resulting in total proceeds to the
Company of approximately $1,085,000 In addition, in an effort to reduce the number of the warrants outstanding from the October
17, 2007 private placement by Advaxis, Inc. (the &#8220; <U>Company</U> &#8221;), the Company has entered into exchange agreements
with certain of the holders of such warrants pursuant to which such holders received shares of the Company&#8217;s common stock,
par value $0.001 per share (the &#8220; <U>Common Stock</U> &#8221;), and/or warrants to purchase shares of Common Stock in amounts
that were determined in such negotiations. As of October 31, 2011, the Company has exchanged October 2007 warrants to purchase
28,511,125 shares of Common Stock, including Mr. Moore, in return for 5,840,748 shares of Common Stock and new warrants to purchase
14,651,854 shares of Common Stock (which number includes the warrants issued to Mr. Moore in exchange for his October 2007 warrants
as described below). The new warrants issued pursuant to the exchanges are identical to the October 2007 warrants, except that
such warrants do not contain any economic anti-dilution adjustment.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Furthermore, during the
year ended October 31, 2011, Mr. Moore entered into an exchange agreement with the Company (the &#8220; <U>Exchange Agreement</U>
&#8221;), pursuant to which he received a new warrant to purchase 7,674,512 shares of Common Stock (which new warrant (the &#8220;
<U>Warrant</U> &#8221;) is identical to the October 2007 warrant except that it does not contain any economic anti-dilution adjustment
rights, all as more particularly described in the Warrant attached hereto as Exhibit 4.1) in exchange for (i) surrendering an October
2007 warrant to purchase 2,666,667 shares of Common Stock and (ii) amending a Note Purchase Agreement, dated as of September 22,
2008, by and between the Company and Mr. Moore, to terminate his right to receive warrants in connection with an equity financing,
including the equity financing the Company completed in May 2011, which otherwise would have permitted Mr. Moore to receive a warrant
to purchase 4,118,956 shares of Common Stock.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;Therefore, primarily
as a result of these efforts, the Company reduced the total number of outstanding warrants, subject to anti-dilution provisions,
to approximately 49.4 million warrants, as of October 31, 2011.&nbsp; In addition, the Company recorded a non-cash charge of approximately
$458,000 to other expense (loss on retirement) and approximately $486,000 in non-cash warrant expense, for the fiscal year ended
October 31, 2011, as a result of these warrant exchanges (including Mr. Moore).</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The company recognized
non-cash warrant expense of approximately $72,000, for the year ending October 31, 2011, related to the fair value of the additional
warrants issued to bridge note holders as well as a placement agent for the sale of junior unsecured convertible promissory notes.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>7. STOCK OPTIONS:</B></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><U>2004 Stock
Option Plan</U></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In November 2004, our board
of directors adopted and our stockholders approved the 2004 Stock Option Plan, which we refer to as the 2004 plan.&nbsp; The 2004
plan provides for the grant of options to purchase up to 2,381,525 shares of our common stock to employees, officers, directors
and consultants.&nbsp; Options may be either &#8220;incentive stock options&#8221; or non-qualified options under the Federal tax
laws.&nbsp; Incentive stock options may be granted only to our employees, while non-qualified options may be issued, in addition
to employees, to non-employee directors and consultants.&nbsp; As of October 31, 2011, all options to purchase shares of our common
stock have been granted under the 2004 plan.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The 2004 plan is administered
by &#8220;disinterested members&#8221; of our board of directors or the compensation committee, who determine, among other things,
the individuals who will receive options, the time period during which the options may be partially or fully exercised, the number
of shares of common stock issuable upon the exercise of each option and the option exercise price.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Subject to a number of
exceptions, the exercise price per share of common stock subject to an incentive option may not be less than the fair market value
per share of common stock on the date the option is granted.&nbsp; The per share exercise price of our common stock subject to
a non-qualified option may be established by our board of directors, but will not, however, be less than 85% of the fair market
value per share of common stock on the date the option is granted.&nbsp; The aggregate fair market value of common stock for which
any person may be granted incentive stock options which first become exercisable in any calendar year may not exceed $100,000 on
the date of grant.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp; No stock option
may be transferred by an optionee other than by will or the laws of descent and distribution, and, during the lifetime of an optionee,
the option will be exercisable only by the optionee.&nbsp; In the event of termination of employment or engagement other than by
death or disability, the optionee will have no more than three months after such termination during which the optionee will be
entitled to exercise the option to the extent vested at termination, unless otherwise determined by our board of directors.&nbsp;
Upon termination of employment or engagement of an optionee by reason of death or permanent and total disability, the optionee&#8217;s
options remain exercisable for one year to the extent the options were exercisable on the date of such termination.&nbsp; No similar
limitation applies to non-qualified options.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">We must grant options under
the 2004 plan within ten years from the effective date of the 2004 plan.&nbsp; The effective date of the 2004 plan was November
12, 2004.&nbsp; Subject to a number of exceptions, holders of incentive stock options granted under the 2004 plan cannot exercise
these options more than ten years from the date of grant.&nbsp; Options granted under the 2004 plan generally provide for the payment
of the exercise price in cash and may provide for the payment of the exercise price by delivery to us of shares of common stock
already owned by the optionee having a fair market value equal to the exercise price of the options being exercised, or by a combination
of these methods.&nbsp; Therefore, if it is provided in an optionee&#8217;s options, the optionee may be able to tender shares
of common stock to purchase additional shares of common stock and may theoretically exercise all of his stock options with no additional
investment other than the purchase of his original shares.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Any unexercised options
that expire or that terminate upon an employee&#8217;s ceasing to be employed by us become available again for issuance under the
2004 plan.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">As of September 27, 2011,
the date on which the Advaxis, Inc. 2011 Omnibus Incentive Plan was approved by our shareholders, no further awards may be made
under the 2004 plan.&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 9pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><U>2005 Stock Option
Plan</U></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In June 2006 our board
of directors adopted, and on June 6, 2006 our stockholders approved, the 2005 Stock Option Plan, which we refer to as the 2005
plan.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The 2005 plan provides
for the grant of options to purchase up to 5,600,000 shares of our common stock to employees, officers, directors and consultants.&nbsp;
Options may be either &#8220;incentive stock options&#8221; or non-qualified options under the Federal tax laws.&nbsp; Incentive
stock options may be granted only to our employees, while non-qualified options may be issued to non-employee directors, consultants
and others, as well as to our employees.&nbsp; As of October 31, 2011, all options to purchase shares of our common stock have
been granted under the 2005 plan.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The 2005 plan is administered
by &#8220;disinterested members&#8221; of our board of directors or the compensation committee, who determine, among other things,
the individuals who will receive options, the time period during which the options may be partially or fully exercised, the number
of shares of common stock issuable upon the exercise of each option and the option exercise price.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Subject to a number of
exceptions, the exercise price per share of common stock subject to an incentive option may not be less than the fair market value
per share of common stock on the date the option is granted.&nbsp; The per share exercise price of our common stock subject to
a non-qualified option may be established by our board of directors, but will not, however, be less than 85% of the fair market
value per share of common stock on the date the option is granted.&nbsp; The aggregate fair market value of common stock for which
any person may be granted incentive stock options which first become exercisable in any calendar year may not exceed $100,000 on
the date of grant.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Except when agreed to by
our board of directors or the administrator of the 2005 plan, no stock option may be transferred by an optionee other than by will
or the laws of descent and distribution, and, during the lifetime of an optionee, the option will be exercisable only by the optionee.&nbsp;
In the event of termination of employment or engagement other than by death or disability, the optionee will have no more than
three months after such termination during which the optionee will be entitled to exercise the option, unless otherwise determined
by our board of directors.&nbsp; Upon termination of employment or engagement of an optionee by reason of death or permanent and
total disability, the optionee&#8217;s options remain exercisable for one year to the extent the options were exercisable on the
date of such termination.&nbsp; No similar limitation applies to non-qualified options.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp; We must grant options
under the 2005 plan within ten years from the effective date of the 2005 plan.&nbsp; The effective date of the 2005 plan was January
1, 2005.&nbsp; Subject to a number of exceptions, holders of incentive stock options granted under the 2005 plan cannot exercise
these options more than ten years from the date of grant.&nbsp; Options granted under the 2005 plan generally provide for the payment
of the exercise price in cash and may provide for the payment of the exercise price by delivery to us of shares of common stock
already owned by the optionee having a fair market value equal to the exercise price of the options being exercised, or by a combination
of these methods.&nbsp; Therefore, if it is provided in an optionee&#8217;s options, the optionee may be able to tender shares
of common stock to purchase additional shares of common stock and may theoretically exercise all of his stock options with no additional
investment other than the purchase of his original shares.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Any unexercised options
that expire or that terminate upon an employee&#8217;s ceasing to be employed by us become available again for issuance under the
2005 plan.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">As of September 27, 2011,
the date on which the Advaxis, Inc. 2011 Omnibus Incentive Plan was approved by our shareholders, no further awards may be made
under the 2005 plan.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: justify; text-indent: 9pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><U>2009 Stock Option
Plan</U></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Our board of directors
adopted the 2009 Stock Option Plan effective July 21, 2009, and recommended that it be submitted to our shareholders for their
approval at the next annual meeting.&nbsp;&nbsp;On April 23, 2010, our board of directors approved and adopted, and on June 1,
2010 our stockholders approved, the amended and restated 2009 Stock Option Plan, which we refer to as the 2009 plan.&nbsp;&nbsp;An
aggregate of 20,000,000 shares of our common stock (subject to adjustment by the compensation committee) are reserved for issuance
upon the exercise of options granted under the 2009 plan.&nbsp;&nbsp;As of October 31, 2011, options to purchase 358,101 shares
of our common stock are available for grant under the 2009 plan. However, due to the approval of the Advaxis, Inc. 2011 Omnibus
Incentive Plan by our shareholders, on September 27, 2011, no further awards may be made under the 2009 plan (see Note #7 for
details on the Advaxis Inc. 2011 Omnibus Incentive Plan).</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The 2009 plan is to be
administered by the compensation committee of our board of directors; provided, however, that except as otherwise expressly provided
in the 2009 plan, our board of directors may exercise any power or authority granted to the compensation committee under the 2009
plan. Subject to the terms of the 2009 plan, the compensation committee is authorized to select eligible persons to receive options,
determine the type, number and other terms and conditions of, and all other matters relating to, options, prescribe option agreements
(which need not be identical for each participant), and the rules and regulations for the administration of the 2009 plan, construe
and interpret the 2009 plan and option agreements, correct defects, supply omissions or reconcile inconsistencies therein, and
make all other decisions and determinations as the compensation committee may deem necessary or advisable for the administration
of the 2009 plan.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The maximum number of shares
of common stock to which options may be granted to any one individual under the 2009 plan is 6,000,000 (subject to adjustment by
the compensation committee).&nbsp; The shares acquired upon exercise of options granted under the 2009 plan will be authorized
and issued shares of our common stock.&nbsp; Our shareholders will not have any preemptive rights to purchase or subscribe for
any common stock by reason of the reservation and issuance of common stock under the 2009 plan.&nbsp; If any option granted under
the 2009 plan should expire or terminate for any reason other than having been exercised in full, the unpurchased shares subject
to that option will again be available for purposes of the 2009 plan.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The persons eligible to
receive awards under the 2009 plan are the officers, directors, employees, consultants and other persons who provide services to
us or any related entity.&nbsp; An employee on leave of absence may be considered as still in our or a related entity&#8217;s employ
for purposes of eligibility for participation in the 2009 plan.&nbsp; All options granted under the 2009 plan must be evidenced
by a written agreement.&nbsp; The agreement will contain such terms and conditions as the compensation committee shall prescribe,
consistent with the 2009 plan, including, without limitation, the exercise price, term and any restrictions on the exercisability
of the options granted.&nbsp; For any option granted under the 2009 plan, the exercise price per share of common stock may be any
price determined by the compensation committee; however, the exercise price per share of any incentive stock option may not be
less than the fair market value of the common stock on the date such incentive stock option is granted.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The compensation committee
may permit the exercise price of an option to be paid for in cash, by certified or official bank check or personal check, by money
order, with already owned shares of common stock that have been held by the optionee for at least six (6) months (or such other
shares as we determine will not cause us to recognize for financial accounting purposes a charge for compensation expense), the
withholding of shares of common stock issuable upon exercise of the option, by delivery of a properly executed exercise notice
together with such documentation as shall be required by the compensation committee (or, if applicable, the broker) to effect a
cashless exercise, or a combination of the above.&nbsp; If paid in whole or in part with shares of already owned common stock,
the value of the shares surrendered is deemed to be their fair market value on the date the option is exercised.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">No incentive stock option,
and unless the prior written consent of our compensation committee is obtained (which consent may be withheld for any reason) and
the transaction does not violate the requirements of Rule 16b-3 of the Exchange Act, no non-qualified stock option granted under
the 2009 plan is assignable or transferable, other than by will or by the laws of descent and distribution.&nbsp; During the lifetime
of an optionee, an option is exercisable only by him or her, or in the case of a non-qualified stock option, by his or her permitted
assignee.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The expiration date of
an option under the 2009 plan will be determined by our compensation committee at the time of grant, but in no event may such an
option be exercisable after 10 years from the date of grant.&nbsp; An option may be exercised at any time or from time to time
or only after a period of time in installments, as determined by our compensation committee.&nbsp; Our compensation committee may
in its sole discretion accelerate the date on which any option may be exercised. Each outstanding option granted under the 2009
plan may become immediately fully exercisable in the event of certain transactions, including certain changes in control of us,
certain mergers and reorganizations, and certain dispositions of substantially all our assets.</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Unless otherwise provided
in the option agreement, the unexercised portion of any option granted under the 2009 plan shall automatically be terminated (a)
three months after the date on which the optionee&#8217;s employment is terminated for any reason other than (i) cause (as defined
in the 2009 plan), (ii) mental or physical disability, or (iii) death; (b) immediately upon the termination of the optionee&#8217;s
employment for cause; (c) one year after the date on which the optionee&#8217;s employment is terminated by reason of mental or
physical disability; or (d) one year after the date on which the optionee&#8217;s employment is terminated by reason of optionee&#8217;s
death, or if later, three months after the date of optionee&#8217;s death if death occurs during the one year period following
the termination of the optionee&#8217;s employment by reason of mental or physical disability.</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Unless earlier terminated
by our board, the 2009 plan will terminate at the earliest of (a) such time as no shares of common stock remain available for issuance
under the 2009 plan, (b) termination of the 2009 plan by our board, or (c) the tenth anniversary of the effective date of the 2009
plan.&nbsp; Options outstanding upon expiration of the 2009 plan shall remain in effect until they have been exercised or terminated,
or have expired.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">As of September 27, 2011,
the date on which the Advaxis, Inc. 2011 Omnibus Incentive Plan was approved by our shareholders, no further awards may be made
under the 2009 plan.&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>2011 Omnibus Incentive
Plan</B></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Our board of directors
adopted the 2011 Omnibus Incentive Plan on August 22, 2011, and recommended that it be submitted to our shareholders for their
approval at the next annual meeting.&nbsp; On September 27, 2011, our stockholders approved the 2011 Omnibus Incentive Plan, which
we refer to as the 2011 plan.&nbsp; An aggregate of 20,000,000 shares of our common stock (subject to adjustment by the compensation
committee) are reserved and available for delivery under the 2011 plan.&nbsp; &nbsp;As of October 31, 2011, no grants had been
made under the 2011 Omnibus Incentive Plan.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Upon receiving stockholder
approval of the 2011 plan on September 27, 2011, no further awards were permitted to be made under the 2004 plan, the 2005 plan
or the 2011 plan.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">During any 12-month period,
no participant in the 2011 plan may be granted (i) stock options or stock appreciation rights with respect to more than 4,000,000
shares of our common stock, or (ii) shares of restricted stock, restricted stock units, performance shares and other stock based-awards
with respect to more than 4,000,000 shares of our common stock.&nbsp; The maximum amount that may be paid out as performance units
with respect to any 12-month performance period is $2,500,000 (pro-rated for any 12-month performance period that is less than
12 months), and with respect to any performance period that is more than 12 months, $2,000,000 multiplied by the number of full
12 month periods that are in the performance period.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Committee, as defined
below, is authorized to adjust the limitations described above and is authorized to adjust outstanding awards (including adjustments
to exercise prices of options and other affected terms of awards) in the event that a dividend or other distribution, recapitalization,
forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, share exchange or other similar
corporate transaction or event affects our common stock so that an adjustment is appropriate. The Committee is also authorized
to adjust performance conditions and other terms of awards in response to these kinds of events or in response to changes in applicable
laws, regulations or accounting principles.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The persons eligible to
receive awards under the 2011 plan are the officers, directors, employees, consultants and other persons who provide services to
us on a full-time basis. The foregoing notwithstanding, only our full-time employees, or any of our parent corporations or subsidiary
corporations, shall be eligible for purposes of receiving any incentive stock options.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The 2011 plan is to be
administered by a committee designated by our board of directors consisting of not less than two directors (the &#8220;Committee&#8221;),
provided, however, that except as otherwise expressly provided in the 2011 plan, our board of directors may exercise any power
or authority granted to the Committee under the 2011 plan. Subject to the terms of the 2011 plan, the Committee is authorized to
select eligible persons to receive awards, determine the type, number and other terms and conditions of, and all other matters
relating to, awards, prescribe award agreements, and the rules and regulations for the administration of the 2011 plan, construe
and interpret the 2011 plan and award agreements, correct defects, supply omissions or reconcile inconsistencies therein, and make
all other decisions and determinations as the Committee may deem necessary or advisable for the administration of the 2011 plan.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Committee is authorized
to grant stock options, including both incentive stock options and non-qualified stock options, and stock appreciation rights entitling
the participant to receive the amount by which the fair market value of a share of our common stock on the date of exercise exceeds
the grant price of the stock appreciation right. The maximum term of each option or stock appreciation right, the times at which
each option or stock appreciation right will be exercisable, and provisions requiring forfeiture of unexercised options or stock
appreciation rights at or following termination of employment generally are fixed by the Committee, except that no option or stock
appreciation right may have a term exceeding ten years. Methods of exercise and settlement and other terms of the options and stock
appreciation right are determined by the Committee. The Committee, thus, may permit the exercise price of options awarded under
the 2011 plan to be paid in cash, shares, other awards or other property (including loans to participants).</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Committee is authorized
to grant restricted stock and restricted stock units. Restricted stock is a grant of shares of our common stock which may not be
sold or disposed of, and which shall be subject to such risks of forfeiture and other restrictions as the Committee may impose.
An award of restricted stock units confers upon a participant the right to receive shares of our common stock or cash equal to
the fair market value of the specified number of shares of our common stock covered by the restricted stock units at the end of
a specified deferral period, subject to such risks of forfeiture and other restrictions as the Committee may impose. Prior to settlement,
an award of restricted stock units carries no voting or dividend rights or other rights associated with share ownership, although
dividend equivalents may be granted, as discussed below.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Committee is authorized
to grant dividend equivalents conferring on participants the right to receive, currently or on a deferred basis, cash, shares
of our common stock, other awards or other property equal in value to dividends paid on a specific number of shares of our common
stock or other periodic payments. Dividend equivalents may be granted alone or in connection with another award, may be paid currently
or on a deferred basis and, if deferred, may be deemed to have been reinvested in additional shares of our common stock, awards
or otherwise as specified by the Committee.&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><BR></P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Committee is authorized
to grant shares of our common stock as a bonus free of restrictions, or to grant shares of our common stock or other awards in
lieu of our obligations to pay cash under the 2011 plan or other plans or compensatory arrangements, subject to such terms as the
Committee may specify.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Committee or our board
of directors is authorized to grant awards that are denominated or payable in, valued by reference to, or otherwise based on or
related to shares of our common stock. The Committee determines the terms and conditions of such awards.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Committee is authorized
to grant performance awards to participants on terms and conditions established by the Committee. The performance criteria to be
achieved during any performance period and the length of the performance period are determined by the Committee upon the grant
of the performance award. Performance awards may be settled by delivery of cash, shares or other property, or any combination thereof,
as determined by the Committee. The Committee may, in its discretion, determine that the amount payable as a performance award
will be reduced from the amount of any potential award.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Awards may be settled in
the form of cash, shares of our common stock, other awards or other property, in the discretion of the Committee. The Committee
may require or permit participants to defer the settlement of all or part of an award in accordance with such terms and conditions
as the Committee may establish, including payment or crediting of interest or dividend equivalents on deferred amounts, and the
crediting of earnings, gains and losses based on deemed investment of deferred amounts in specified investment vehicles. The Committee
may condition any payment relating to an award on the withholding of taxes and may provide that a portion of any shares of our
common stock or other property to be distributed will be withheld (or previously acquired shares of our common stock or other property
be surrendered by the participant) to satisfy withholding and other tax obligations.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Committee may, in its
discretion, accelerate the exercisability, the lapsing of restrictions or the expiration of deferral or vesting periods of any
award, and such accelerated exercisability, lapse, expiration and if so provided in the award agreement or otherwise determined
by the Committee, vesting shall occur automatically in the case of a &#8220;change in control&#8221; of the Company, as defined
in the 2011 plan (including the cash settlement of stock appreciation rights which may be exercisable in the event of a change
in control).</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Our board of directors
may amend, alter, suspend, discontinue or terminate the 2011 plan or the Committee&#8217;s authority to grant awards without further
stockholder approval, except that stockholder approval must be obtained for any amendment or alteration if such approval is required
by law or regulation or under the rules of any stock exchange or quotation system on which shares of our common stock are then
listed or quoted. Thus, stockholder approval may not necessarily be required for every amendment to the 2011 plan which might increase
the cost of the 2011 plan or alter the eligibility of persons to receive awards. Stockholder approval will not be deemed to be
required under laws or regulations, such as those relating to incentive stock options, that condition favorable treatment of participants
on such approval, although our board of directors may, in its discretion, seek stockholder approval in any circumstance in which
it deems such approval advisable. Unless earlier terminated by our board of directors, the 2011 plan will terminate at the earliest
of (a) such time as no shares of our common stock remain available for issuance under the 2011 plan, (b) termination of the 2011
plan by our board of directors, or (c) the tenth anniversary of the effective date of the 2011 plan. Awards outstanding upon expiration
of the 2011 plan shall remain in effect until they have been exercised or terminated, or have expired.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 9pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">A summary of the grants,
cancellations and expirations (none were exercised) of the Company&#8217;s outstanding options for the periods starting with October
31, 2009 through October 31, 2011 is as follows:</P>

<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; text-indent: 0"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center"><B>Shares</B></TD>
    <TD NOWRAP STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Weighted</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Average</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Exercise</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Price</B></P></TD>
    <TD NOWRAP STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Weighted&nbsp;Average</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Remaining</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Contractual&nbsp;Life&nbsp;In</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Years</B></P></TD>
    <TD NOWRAP STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Aggregate</B></P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Intrinsic&nbsp;Value</B></P></TD>
    <TD NOWRAP STYLE="text-align: center"><B>&nbsp;</B></TD></TR>
<TR>
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #d0ffd0">
    <TD STYLE="text-align: left; vertical-align: bottom; width: 52%; text-indent: 0">Outstanding as of October 31, 2009</TD>
    <TD STYLE="text-align: left; vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 10%; text-indent: 0pt">18,331,591</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 9%; text-indent: 0pt">0.16</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 9%; text-indent: 0pt">6.0</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; vertical-align: top; width: 9%; text-indent: 0pt">306,500</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0">Granted</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom; text-indent: 0pt">11,075,000</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">0.16</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">9.8</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">42,500</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #d0ffd0">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0">Exercised</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom; text-indent: 0pt">(306,000</TD>
    <TD STYLE="vertical-align: top">)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">0.09</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">8.1</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">(16,860</TD>
    <TD STYLE="text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0">Cancelled or Expired</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">(2,633,167</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top">)</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">0.12</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">8.6</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">(104,912</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: top; text-indent: 0pt">)</TD></TR>
<TR STYLE="background-color: #d0ffd0">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0">Outstanding as of October 31, 2010</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom; text-indent: 0pt">26,467,424</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">0.16</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">7.4</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">415,967</TD>
    <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; text-indent: 0">Granted</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom; text-indent: 0pt">850,000</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">0.12</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">9.2</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top; text-indent: 0pt">15,200</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #d0ffd0">
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0">Cancelled or Expired</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: bottom; text-indent: 0pt">-</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: top; text-indent: 0pt">-</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: bottom; text-indent: 0">Outstanding as of October 31, 2011</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: bottom; text-indent: 0pt">27,317,424</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">0.16</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">8.1</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">367,417</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #d0ffd0">
    <TD STYLE="vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: bottom; text-indent: 0">Vested &amp; Exercisable at October 31, 2011</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: bottom; text-indent: 0pt">20,451,266</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; vertical-align: top">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">0.16</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">6.75</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; vertical-align: top">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: top; text-indent: 0pt">337,082</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: top">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin: 0pt 0">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The fair value
of options granted for the year ended October 31, 2011 amounted to $103,125</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">As of October 31, 2011,
there was approximately $759,000 of unrecognized compensation cost related to non-vested stock option awards, which is expected
to be recognized over a remaining average vesting period of 2.3 years.<BR></P>

<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left">
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt">A&nbsp;summary&nbsp;of&nbsp;the&nbsp;status&nbsp;of&nbsp;the&nbsp;Company&#8217;s&nbsp;nonvested&nbsp;shares&nbsp;as</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt">of&nbsp;October&nbsp;31,&nbsp;2009,&nbsp;and&nbsp;changes&nbsp;during&nbsp;the&nbsp;years&nbsp;ended</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt">October&nbsp;31,&nbsp;2010&nbsp;and&nbsp;2011&nbsp;are&nbsp;presented&nbsp;below:</P></TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: black 2px solid; text-align: center">
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Number&nbsp;of</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Shares</P></TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center">
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Weighted</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Average</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Exercise</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Price&nbsp;at</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Grant&nbsp;Date</P></TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: black 2px solid; text-align: center">
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Weighted&nbsp;Average</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Remaining</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">Contractual&nbsp;Term</P>
        <P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center">(in&nbsp;years)</P></TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 65%; text-indent: 0pt">Non-vested shares at October 31, 2009</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 10%; text-indent: 0pt">6,720,417&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; width: 9%; text-indent: 0pt">0.10</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 9%; text-indent: 0pt">8.7</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Options Granted</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">10,108,333&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">0.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">2.8</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; text-indent: 0pt">Options Vested</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; text-indent: 0pt">(4,518,333&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-indent: 0pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; text-indent: 0pt">0.10</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; text-indent: 0pt">1.0</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Non-vested shares at October 31, 2010</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">12,310,417&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">0.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">2.3</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Options Granted</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">850,000&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">0.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">9.5</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-left: 9pt; padding-bottom: 2px; text-align: left; vertical-align: bottom; text-indent: 0pt">Options Vested</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; vertical-align: bottom; text-indent: 0pt">(6,294,259)</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; vertical-align: top; text-indent: 0pt">0.13</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; vertical-align: bottom; text-indent: 0pt">8.45</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc">
    <TD STYLE="padding-left: 9pt; padding-bottom: 4px; text-align: left; vertical-align: bottom; text-indent: 0pt">Non-Vested shares at October 31, 2011</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right; vertical-align: bottom; text-indent: 0pt">6,866,158&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; vertical-align: top; text-indent: 0pt">.15</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; vertical-align: bottom; text-indent: 0pt">9.0</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>8. COMMITMENTS AND CONTINGENCIES</B>
:</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>University of Pennsylvania</I></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On May 10, 2010, we
entered into a second amendment to the Penn license agreement pursuant to which we acquired exclusive licenses for an additional
27 patent applications related to our proprietary <I>Listeria</I> vaccine technology.&nbsp; &nbsp;As part of this amendment we
exercised our option for the rights to seven additional patent dockets, including 23 additional patent applications, at an option
exercise fee payable in the form of $35,000 in cash and $70,000 in our common stock (approximately 388,889 shares of our common
stock based on a price of $0.18 per share) and agreed to pay historical patent costs incurred by the University of Pennsylvania
at a cost of approximately $462,000. As of October 31, 2011, the Company owed Penn approximately $249,000 under all licensing agreements.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">During the year ended
October 31, 2011, the Company paid approximately $405,000 to Penn under all licensing agreements.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Other</I></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Pursuant to a Clinical
Research Service Agreement, the Company is obligated to pay Pharm&#8211;Olam International for service fees related to our Phase
I clinical trial. As of October 31, 2011, the Company has an outstanding balance of $223,620 on this agreement.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On June 19, 2009 we entered
into a Master Agreement and on July 8, 2009 we entered into a Project Agreement with Numoda, a leading clinical trial and logistics
management company, to oversee Phase II clinical activity with ADXS11-001 for the treatment of invasive cervical cancer and CIN.&nbsp;
Numoda will be responsible globally for integrating oversight and logistical functions with the clinical research organizations,
contract laboratories, academic laboratories and statistical groups involved.&nbsp; The scope of this agreement covers over three
years and is estimated to cost approximately $12.2 million for both trials. Per the agreement, the Company is permitted to pay
a portion of outstanding charges to Numoda in the form of the Company&#8217;s common stock and during May 2010, the Company issued
3,500,000 shares of its common stock to an affiliate of Numoda in satisfaction of $350,000 in services rendered by Numoda to the
Company under the Master Agreement. The Company has recorded deferred expenses on the balance sheet for this amount and amortizes
this amount to expense over thelife of the agreement. At October 31, 2011, there was a balance of approximately $1.1 million in
deferred expenses related to the Numoda project.&nbsp; From inception of these agreements through October 31, 2011, the Company
has paid Numoda approximately $6.3 million.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>New Office &amp; Laboratory
Lease</I></P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In April 2011, the Company
entered into a Sublease Agreement and relocated the current offices and laboratory to a 9,143 square foot leased facility in Princeton,
NJ approximately 12 miles south of its former location.&nbsp; The agreement is for a period of approximately twenty months at the
rate of approximately $15,600 per month plus utilities. Utility costs are estimated to be $7,200 per month and are capped at approximately
$10,700 per month. Under the current lease, the Company expects to spend approximately $72,000 through October 31, 2011 and approximately
$288,000 for the fiscal year ended October 31, 2012.&nbsp; The Company made an initial payment of approximately $54,000 prior to
entering the new facility.&nbsp; &nbsp;As an inducement to enter into the agreement, the company will receive rent abatement for
a specified number of months through July 31, 2011. The agreement has a termination date of November 29, 2012 and the Company is
in discussions with building owner for lease terms beyond this date.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">As a result of the rent
abatement period, the Company recorded differences between actual rent payments and straight-line rent expense to a deferred liability
account.&nbsp;&nbsp;As of October 31, 2011, this amount was approximately $62,000.&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><BR></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Moore Employment Agreement
and Option Agreements.</I> We are party to an employment agreement with Mr. Moore, dated as of August 21, 2007 (memorializing an
oral agreement dated December 15, 2006), that provides that he will serve as our Chairman of the Board and Chief Executive Officer
for an initial term of two years.&nbsp; For so long as Mr. Moore is employed by us, Mr. Moore is also entitled to nominate one
additional person to serve on our board of directors.&nbsp; Following the initial term of employment, the agreement was renewed
for a one year term, and is automatically renewable for additional successive one year terms, subject to our right and Mr. Moore&#8217;s
right not to renew the agreement upon at least 90 days&#8217; written notice prior to the expiration of any one year term.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Under the terms of the
agreement, Mr. Moore was entitled to receive a base salary of $250,000 per year, subject to increase to $350,000 per year, his
current salary, upon our successful raise of at least $4.0 million (which condition was satisfied on November 1, 2007) and subject
to annual review for increases by our board of directors in its sole discretion.&nbsp; The agreement also provides that Mr. Moore
is entitled to receive family health insurance at no cost to him.&nbsp; Mr. Moore&#8217;s employment agreement does not provide
for the payment of a bonus.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In connection with our
hiring of Mr. Moore, we agreed to grant Mr. Moore up to 1,500,000 shares of our common stock, of which 750,000 shares were issuable
on November 1, 2007 upon our successful raise of $4.0 million and 750,000 shares are issuable upon our successful raise of an additional
$6.0 million (which condition was satisfied in January 2010 and the shares were then issued in June 2010).&nbsp; In addition, on
December 15, 2006, we granted Mr. Moore options to purchase 2,400,000 shares of our common stock.&nbsp; Each option is exercisable
at $0.143 per share (which was equal to the closing sale price of our common stock on December 15, 2006) and expires on December
15, 2016.&nbsp; The options vest in 24 equal monthly installments.&nbsp; On July 21, 2009, we granted Mr. Moore options to purchase
2,500,000 shares of our common stock.&nbsp; Each option is exercisable at $0.10 per share (which was equal to the closing sale
price of our common stock on July 21, 2009) and expires on July 21, 2019.&nbsp; One-third of these options vested on the grant
date, and the remaining vest in one third installments on the first and second anniversary of the grant. On October 14, 2010, we
granted Mr. Moore options to purchase 2,000,000 shares of our common stock. Each option is exercisable at $0.15 per share. These
options vest over a three year period beginning one year from the grant date.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">We have also agreed
to grant Mr. Moore 1,500,000 shares of our common stock if the price of common stock (adjusted for any splits) is equal to or
greater than $0.40 for 40 consecutive business days.&nbsp; Pursuant to the terms of his employment agreement, all options will
be awarded and vested upon a merger of the company which is a change of control or a sale of the company while Mr. Moore is employed.&nbsp;
In addition, if Mr. Moore&#8217;s employment is terminated by us, Mr. Moore is entitled to receive severance payments equal to
one year&#8217;s salary at the then current compensation level.&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><BR></P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Mr. Moore has agreed to
refrain from engaging in certain activities that are competitive with us and our business during his employment and for a period
of&nbsp;12 months thereafter under certain circumstances.&nbsp; In addition, Mr. Moore is subject to a non-solicitation provision
for 12 months after termination of his employment.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><I>Rothman Employment Agreement
and Option Agreements.</I> &nbsp; We previously entered into an employment agreement with Dr. Rothman, Ph.D., dated as of March
7, 2005, that provided that he&nbsp;would serve as our Vice President of Clinical Development for an initial term of one year.&nbsp;
Dr. Rothman&#8217;s current salary is $305,000, consisting of $275,000 in cash and $30,000 in stock, payable in our common stock,
issued on a semi-annual basis, based on the average closing stock price for such six month period, with a minimum price of $0.20.&nbsp;
While the employment agreement has expired and has not been formally renewed in accordance with the agreement, Dr. Rothman remains
employed by us&nbsp;and is currently our Executive V.P. of Clinical and Scientific Operations.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In addition, on March 1,
2005, we granted Dr. Rothman options to purchase 360,000 shares of our common stock.&nbsp; Each option is exercisable at $0.287
per share (which was equal to the closing sale price of our common stock on March 1, 2005) and expires on March 1, 2015.&nbsp;
All of these options have vested.&nbsp; On March 29, 2006, we granted Dr. Rothman options to purchase 150,000 shares of our common
stock.&nbsp; Each option is exercisable at $0.26 per share (which was equal to the closing sale price of our common stock on March
29, 2006) and expires on March 29, 2016.&nbsp; One-fourth of these options vested on the first anniversary of the grant date, and
the remaining vest in 12 equal quarterly installments. &nbsp; On February 15, 2007, we granted Dr. Rothman options to purchase
300,000 shares of our common stock.&nbsp; Each option is exercisable at $0.165 per share (which was equal to the closing sale price
of our common stock on February 15, 2007) and expires on February 15, 2017.&nbsp; One-fourth of these options vested on the first
anniversary of the grant date, and the remaining vest in 12 equal quarterly installments. &nbsp; Pursuant to the terms of the 2005
plan, at least 75% of Dr. Rothman&#8217;s options will be vested upon a merger of the company which is a change of control or a
sale of the company while Dr. Rothman is employed, unless the administrator of the plan otherwise allows for all options to become
vested.&nbsp; On July 21, 2009, we granted Mr. Rothman options to purchase 1,750,000 shares of our common stock. Each option is
exercisable at $0.10 per share (which was equal to the closing sale price of our common stock on July 21, 2009) and expires on
July 21, 2019.&nbsp; One-third of these options vested on the grant date, and the remaining vest, in one third installments&nbsp;on
the first and second anniversary of the grant.&nbsp; On October 14, 2010, we granted Dr. Rothman options to purchase 2,250,000
shares of our common stock. Each option&nbsp; is exercisable at $0.15 per share. These options vest over a three year period beginning
one year from the grant date.</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt"><BR>
</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Dr. Rothman has agreed
to refrain from engaging in certain activities that are competitive with us and our business during his employment and for a period
of&nbsp;18 months thereafter under certain circumstances.&nbsp; In addition, Dr. Rothman is subject to a non-solicitation provision
for&nbsp;18 months after termination of his employment.</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0"><BR>
<B>9.&nbsp; &nbsp; INCOME TAXES:</B>&nbsp;</P>

<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Company has a net
operating loss carry forward of approximately $32,485,000 and $20,095,000 at October 31, 2011 and 2010, respectively, available
to offset taxable income through 2030.&nbsp; Due to change in control provisions, the Company&#8217;s utilization of these losses
may be limited. The tax effects of loss carry forwards give rise to a deferred tax asset and a related valuation allowance at
October 31, as follows:&nbsp;</P>

<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; width: 72%">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; width: 11%; font-weight: bold; text-align: center; text-indent: 0pt">2011</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; width: 11%; font-weight: bold; text-align: center; text-indent: 0pt">2010</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; width: 1%">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Net operating loss carryforwards-federal</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">12,994,244</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">8,038,146</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Stock based compensation</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">1,474,016</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">1,202,168</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left">Valuation on warrants</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(3,241,085</TD>
    <TD STYLE="text-align: left">)&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Others</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">(613,170</TD>
    <TD STYLE="text-align: left">)&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px; text-align: left; text-indent: 0pt">Less valuation allowance</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; text-indent: 0pt">(10,614,005</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; text-indent: 0pt">)</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right; text-indent: 0pt">(9,240,314</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left; text-indent: 0pt">)&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">$</TD>
    <TD STYLE="text-align: right; text-indent: 0pt">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The difference between
income taxes computed at the statutory federal rate of 34% and the provision for income taxes relates to the following:&nbsp;</P>

<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;&nbsp;</P>



<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt"></P>

<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: black 1.5pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Year&nbsp;ended</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>October&nbsp;31,</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2011</B></P></TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center"><B>&nbsp;</B></TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><B>Year ended <BR>
    October 31, <BR>
    2010</B><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P></TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD STYLE="width: 72%">Pre-Tax Book Income (Loss)</TD>
    <TD STYLE="width: 1%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: right">34.00</TD>
    <TD NOWRAP STYLE="width: 1%">%</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: right">34.00</TD>
    <TD NOWRAP STYLE="width: 1%">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Perm Item</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">-19.61</TD>
    <TD NOWRAP>%</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD>Change in Valuation Allowance</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">-16.93</TD>
    <TD NOWRAP>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(34</TD>
    <TD NOWRAP>)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Other</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right">2.54</TD>
    <TD NOWRAP>%</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right">-</TD>
    <TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD>Total</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">-</TD>
    <TD NOWRAP>%</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">-</TD>
    <TD NOWRAP>%</TD></TR>
</TABLE>


<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt"></P>

<P STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;&nbsp;</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In a letter dated November
13, 2008 from the New Jersey Economic Development Authority we were notified that our application for the New Jersey Technology
Tax Certificate Transfer Program was preliminarily approved. Under the State of New Jersey NOL Transfer Program for small business
we received a net cash amount of $922,020 on December 12, 2008 from the sale of our State Net Operating Losses (&#8220;NOL&#8221;)
through December 31, 2007 of $1,084,729. In January 2010, the company received a net cash amount of $278,978 from the sale of some
of our State Net Operating Losses (&#8220;NOL&#8221;) through December 31, 2008.&nbsp;&nbsp;In February 2011, the Company received
a net cash amount of $379,742 from the sale of our State Net Operating Losses (&#8220;NOL&#8221;) through the year ending October
31, 2009.&nbsp;&nbsp;We have received notification from the State of New Jersey that the Company is eligible to sell approximately
$408,000 in Net Operating Losses related to our 2010 fiscal year.</P>

<P STYLE="text-align: left; text-indent: 36pt; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-indent: 0pt; margin: 0pt 0"></P>

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<P STYLE="text-indent: 0pt; margin: 0pt 0"></P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We adopted ASC 740, Income Taxes, formerly Financial Interpretation
Number 48, &ldquo;Accounting for Uncertain Tax Positions&rdquo; (&ldquo;FIN 48&rdquo;) on November&nbsp;1, 2007. ASC 740 clarifies
the accounting for uncertainty in income taxes recognized in an enterprise&rsquo;s financial statements in accordance with FASB
Statement No.&nbsp;109,&rdquo; Accounting for Income Taxes.&rdquo; ASC 740 prescribes a recognition threshold and measurement
of a tax position taken or expected to be taken in a tax return. We did not establish any additional reserves for uncertain tax
liabilities upon adoption of ASC 740. There were no adjustments for uncertain tax positions in the current year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will account for interest and penalties related to uncertain
tax positions, if any, as part of our provision for federal and state income taxes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We do not expect that the amounts of unrecognized benefits
will change significantly within the next 12&nbsp;months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are no longer subject to audit under the statute of limitations
by the Internal Revenue Service and state jurisdictions through 2006.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>10. &nbsp;CAPITALIZATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On November 12, 2004, Great Expectations
and Associates, Inc. (&quot;Great Expectations&quot;) acquired the Company through a share exchange and reorganization (the &quot;Recapitalization&quot;),
pursuant to which the Company became a wholly owned subsidiary of Great Expectations. Great Expectations acquired (i) all of the
issued and outstanding shares of common stock of the Company and the Series A preferred stock of the Company in exchange for an
aggregate of 15,597,723 shares of authorized, but theretofore unissued, shares of common stock, no par value, of Great Expectations;.
Prior to the closing of the Recapitalization, Great Expectations performed a 200-for-1 reverse stock split, thus reducing the
issued and outstanding shares of common stock of Great Expectations from 150,520,000 shares to 752,600 shares. Additionally, 752,600
shares of common stock of Great Expectations were issued to the financial advisor in connection with the Recapitalization. Accordingly,
the transaction is treated as a recapitalization, rather than a business combination. The historical financial statements of Advaxis
are now the historical financial statements of the Company. Historical shareholders' equity (deficiency) of Advaxis has been restated
to reflect the recapitalization, and include the shares received in the transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On November 12, 2004, the Company completed
an initial closing of a private placement offering (the &ldquo;Private Placement&rdquo;), whereby it sold an aggregate of $2.925
million <B>&nbsp;</B> worth of units to accredited investors. Each unit was sold for $25,000 (the &ldquo;Unit Price&rdquo;) and
consisted of (a) 87,108 shares of common stock and (b) a warrant to purchase, at any time prior to the fifth anniversary following
the date of issuance of the warrant, to purchase 87,108 shares of common stock included at a price equal to $0.40 per share of
common stock (a &ldquo;Unit&rdquo;). In consideration of the investment, the Company granted to each investor certain registration
rights and anti-dilution rights. Also, in November 2004, the Company converted approximately $618,000 of aggregate principal promissory
notes and accrued interest outstanding into Units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On December 8, 2004, the Company completed
a second closing of the Private Placement, whereby it sold an aggregate of $200,000 of Units to accredited investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On January 4, 2005, the Company completed
a third and final closing of the Private Placement, whereby it sold an aggregate of $128,000 of Units to accredited investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the terms of a investment banking
agreement, dated March 19, 2004, by and between the Company and Sunrise Securities, Corp. (the &ldquo;Placement Agent&rdquo;),
the Company issued to the Placement Agent and its designees an aggregate of 2,283,445 shares of common stock and warrants to purchase
up to an aggregate of 2,666,900 shares of common stock. The shares were issued as part consideration for the services of the Placement
Agent, as placement agent for the Company in the Private Placement. In addition, the Company paid the Placement Agent a total
cash fee of $50,530.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On January 12, 2005, the Company completed
a second private placement offering whereby it sold an aggregate of $1,100,000 of units to a single investor. As with the Private
Placement, each unit issued and sold in this subsequent private placement was sold at $25,000 per unit and is comprised of (i)
87,108 shares of common stock, and (ii) a five-year warrant to purchase 87,108 shares of our common stock at an exercise price
of $0.40 per share. Upon the closing of this second private placement offering the Company issued to the investor 3,832,753 shares
of common stock and warrants to purchase up to an aggregate of 3,832,753 shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The aggregate sale from the four private
placements was $4,353,000, which was netted against transaction costs of $329,673 for net proceeds of $4,023,327.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to a Securities Purchase Agreement
dated February 2, 2006 ($1,500,000 principal amount) and March 8, 2006 ($1,500,000 principal amount) we issued to Cornell Capital
Partners, LP (&ldquo;Cornell&rdquo;) $3,000,000 principal amount of the Company&rsquo;s Secured Convertible Debentures due February
1, 2009 (the &ldquo;Debentures&rdquo;) at face amount, and five year Warrants to purchase 4,200,000 shares of Common Stock at
the price of $0.287 per share and five year B Warrants to purchase 300,000 shares of Common Stock at a price of $0.3444 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Debentures were convertible at a price
equal to the lesser of (i) $0.287 per share (&ldquo;Fixed Conversion Price&rdquo;), or (ii) 95% of the lowest volume weighted
average price of the Common Stock on the market on which the shares are listed or traded during the 30 trading days immediately
preceding the date of conversion (&ldquo;Market Conversion Price&rdquo;). Interest was payable at maturity at the rate of 6% per
annum in cash or shares of Common Stock valued at the conversion price then in effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Cornell agreed that (i) it would not convert
the Debenture or exercise the Warrants if the effect of such conversion or exercise would result in its and its affiliates&rsquo;
holdings of more than 4.9% of the outstanding shares of Common Stock, (ii) neither it nor its affiliates will maintain a short
position or effect short sales of the Common Stock while the Debentures are outstanding, and (iii) no more than $300,000 principal
amount of the Debenture could be converted at the Market Conversion Price during a calendar month.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 24, 2007, we issued and sold
an aggregate of $600,000 principal amount promissory notes bearing interest at a rate of 12% per annum and warrants to purchase
an aggregate of 150,000 shares of our common stock to three investors including Thomas Moore, our Chief Executive Officer. Mr.
Moore invested $400,000 and received warrants for the purchase of 100,000 shares of Common Stock. The promissory note and accrued
but unpaid interest thereon are convertible at the option of the holder into shares of our common stock upon the closing by the
Company of a sale of its equity securities aggregating $3,000,000 or more in gross proceeds to the Company at a conversion rate
which shall be the greater of a price at which such equity securities were sold or the price per share of the last reported trade
of our common stock on the market on which the common stock is then listed, as quoted by Bloomberg LP. At any time prior to conversion,
we have the right to prepay the promissory notes and accrued but unpaid interest thereon. Mr. Moore converted his $400,000 bridge
investment into 2,666,667 shares of common stock and 2,000,000 $0.20 Warrants based on the terms of the Private Placement. He
was paid $7,101 interest in cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On October 17, 2007, pursuant to a Securities
Purchase Agreement, we completed a private placement resulting in $7,384,235.10 in gross proceeds, pursuant to which we sold 49,228,334
shares of common stock at a purchase price of $0.15 per share solely to institutional and accredited investors. Each investor
received a five-year warrant to purchase an amount of shares of common stock that equals 75% of the number of shares of common
stock purchased by such investor in the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Concurrent with the closing of the private
placement, the Company sold for $1,996,700 to CAMOFI Master LDC and CAMHZN Master LDC, affiliates of its financial advisor, Centrecourt
Asset Management (&ldquo;Centrecourt&rdquo;), an aggregate of (i)&nbsp;10,000,000 shares of Common Stock, (ii)&nbsp;10,000,000
warrants exercisable at $0.20 (prior to anti-dilution adjustments) per share, and (iii) 5-year warrants to purchase an additional
3,333,333 shares of Common Stock at a purchase price of $0.001 per share (the &ldquo;$0.001 Warrants&rdquo;). The Company and
the two purchasers agreed that the purchasers would be bound by and entitled to the benefits of the Securities Purchase Agreement
as if they had been signatories thereto. The $0.20 (prior to anti-dilution adjustments) Warrants and $0.001 Warrants contain the
same terms, except for the exercise price. Both warrants provide that they may not be exercised if, following the exercise, the
holder will be deemed to be the beneficial owner of more than 9.99% of the Company&rsquo;s outstanding shares of Common Stock.
Pursuant to a consulting agreement dated August 1, 2007 with Centrecourt with respect to the anticipated financing, in which Centrecourt
was engaged to act as the Company&rsquo;s financial advisor, Registrant paid Centrecourt $328,000 in cash and issued 2,483,333
warrants exercisable at $0.20 (prior to anti-dilution adjustments) per share to Centrecourt, which Centrecourt assigned to the
two affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">All of the $0.20 (prior to anti-dilution
adjustments) Warrants and $0.001 Warrants provide for adjustment of their exercise prices upon the occurrence of certain events,
such as payment of a stock dividend, a stock split, a reverse split, a reclassification of shares, or any subsequent equity sale,
rights offering, <I>pro rata</I> distribution, or any fundamental transaction such as a merger, sale of all of its assets, tender
offer or exchange offer, or reclassification of its common stock. If at any time after October 17, 2008 there is no effective
registration statement registering, or no current prospectus available for, the resale of the shares underlying the warrants by
the holder of such warrants, then the warrants may also be exercised at such time by means of a &ldquo;cashless exercise.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the private placement,
we entered into a registration rights agreement with the purchasers of the securities pursuant to which we agreed to file a registration
statement with the Securities and Exchange Commission with an effectiveness date within 90 days after the final closing of the
offering. The registration statement was declared effective on January 22, 2008.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At the closing of this private placement,
we exercised our right under an agreement dated August 23, 2007 with YA Global Investments, L.P. f/k/a Cornell Capital Partners,
L.P. (&ldquo;Yorkville&rdquo;), to redeem the outstanding $1,700,000 principal amount of our Secured Convertible Debentures due
February 1, 2009 owned by Yorkville, and to acquire from Yorkville warrants expiring February 1, 2011 to purchase an aggregate
of 4,500,000 shares of our common stock. We paid an aggregate of (i)&nbsp;$2,289,999 to redeem the debentures at the principal
amount plus a 20% premium and accrued and unpaid interest, and (ii)&nbsp;$600,000 to repurchase the warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>11. <U>SHAREHOLDERS&rsquo; EQUITY</U> :</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Series B Preferred Stock Financing</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 19, 2010, the Company entered into
a Series B Preferred Stock Purchase Agreement with Optimus (the &ldquo;Series B Purchase Agreement&rdquo;), pursuant to which
Optimus agreed to purchase, upon the terms and subject to the conditions set forth therein and described below, up to $7.5 million
of the Company&rsquo;s newly authorized, non-convertible, redeemable Series B preferred stock (&ldquo;Series B Preferred Stock&rdquo;)
at a price of $10,000 per share.&nbsp; Under the terms of the Series B Purchase Agreement, subject to the Company&rsquo;s ability
to maintain an effective registration statement for the Warrant Shares (as defined below), the Company may from time to time until
July 19, 2013, present Optimus with a notice to purchase a specified amount of Series B Preferred Stock. Subject to satisfaction
of certain closing conditions, Optimus is obligated to purchase such shares of Series B Preferred Stock on the 10th trading day
after the date of the notice. The Company will determine, in its sole discretion, the timing and amount of Series B Preferred
Stock to be purchased by Optimus, and may sell such shares in multiple tranches. Optimus will not be obligated to purchase the
Series B Preferred Stock upon the Company&rsquo;s notice (i) in the event the average closing sale price of the Company&rsquo;s
common stock during the nine trading days following delivery of such notice falls below 75% of the closing sale price of the Company&rsquo;s
common stock on the trading day prior to the date such notice is delivered to Optimus, or (ii) to the extent such purchase would
result in the Company and its affiliates beneficially owning more than 9.99% of the Company&rsquo;s outstanding common stock.&nbsp;
The Series B Preferred Stock is only redeemable at the option of the Company as set forth in the Company&rsquo;s Certificate of
Designations of Preferences, Rights and Limitations of Series B Preferred Stock and not otherwise subject to redemption or repurchase
by the Company in any circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the Series B Purchase Agreement,
on July 19, 2010, the Company issued to an affiliate of Optimus a three-year warrant to purchase up to 40,500,000 shares of the
Company&rsquo;s common stock (the &ldquo;Warrant Shares&rdquo;), at an initial exercise price of $0.25 per share, subject to adjustment
as described below.&nbsp; The warrant consists of and is exercisable in tranches, with a separate tranche being created upon each
delivery of a tranche notice under the Series B Purchase Agreement. On each tranche notice date, that portion of the warrant equal
to 135% of the tranche amount will vest and become exercisable, and such vested portion may be exercised at any time during the
exercise period on or after such tranche notice date. On and after the first tranche notice date and each subsequent tranche notice
date, the exercise price of the warrant will be adjusted to the closing sale price of a share of the Company&rsquo;s common stock
on the applicable tranche notice date. The exercise price of the warrant may be paid (at the option of the affiliate of Optimus)
in cash or by its issuance of a four-year, full-recourse promissory note, bearing interest at 2% per annum, and secured by a specified
portfolio of assets. However, such promissory note is not due or payable at any time that (a) the Company is in default of any
preferred stock purchase agreement for Series B Preferred Stock or any warrant issued pursuant thereto, any loan agreement or
other material agreement or (b) there are any shares of the Series B Preferred Stock issued or outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On April 4, 2011,
the&nbsp;&nbsp;<U>Company </U>and Optimus&nbsp;&nbsp;entered into an amendment to the Preferred Stock Purchase Agreement
dated July 19, 2010&nbsp;&nbsp;between the Company and Optimus.&nbsp; Under the amendment Optimus&nbsp;&nbsp;remains
obligated, from time to time until July 19, 2013, to purchase up to an additional 284 shares of non-convertible, redeemable
Series B Preferred Stock, $0.001 par value per share (the &ldquo; <U>Series B Preferred Stock</U> &rdquo;) at a purchase
price of $10,000 per share upon notice from the Company to the Investor, subject to the satisfaction of certain conditions
set forth in the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In order to satisfy certain
conditions set forth in the Purchase Agreement that would allow the Company to require the Investor to
purchase the remaining shares of Series B Preferred Stock under the Purchase Agreement, the Amendment
provides that, among other things, the Company will issue to the Holder a three-year warrant (the &ldquo; <U>Additional
Warrant</U> &rdquo;) to purchase up to an additional 25,560,000 shares of the Company&rsquo;s common stock, at an initial
exercise price of $0.15 per share, subject to adjustment as described below.&nbsp; The Additional Warrant will become
exercisable on the earlier of (i) the date on which a registration statement registering for resale the shares of the
Company&rsquo;s common stock issuable upon exercise of the Additional Warrant (the &ldquo; <U>Warrant Shares</U> &rdquo;)
becomes effective and (ii) the first date on which such Warrant Shares are eligible for resale without limitation under Rule
144 (assuming a cashless exercise of the Additional Warrant).&nbsp; The Additional Warrant consists of and is exercisable in
tranches, with a separate tranche being created upon each delivery of a tranche notice under the Purchase
Agreement.&nbsp; On each tranche notice date, that portion of the Additional Warrant equal to 135% of the tranche amount will
vest and become exercisable, and such vested portion may be exercised at any time during the exercise period on or after such
tranche notice date.&nbsp; On and after the first tranche notice date and each subsequent tranche notice date, the exercise
price of the Additional Warrant will be adjusted to the closing sale price of a share of the Company&rsquo;s common stock on
the applicable tranche notice date.&nbsp; The exercise price of the Additional Warrant may be paid (at the option of the
Investor) in cash or by the Investor&rsquo;s issuance of a four-year, full-recourse promissory note (each, a &ldquo; <U>Promissory
Note</U> &rdquo;), bearing interest at 2% per annum, and secured by specified portfolio of assets.&nbsp; However, no
Promissory Note will be due or payable at any time that (a) the Company is in default of any preferred stock purchase
agreement for Series B Preferred Stock or any warrant issued pursuant thereto, any loan agreement or other material agreement
or (b) there are any shares of the Company&rsquo;s Series B Preferred Stock issued or outstanding.&nbsp; The Additional
Warrant also provides for cashless exercise in certain circumstances. If a &ldquo;Funding Default&rdquo; (as such term is
defined in the Additional Warrant) occurs and the Additional Warrant has not previously been exercised in full, the Company
has the right to demand surrender of the Additional Warrant (or any remaining portion thereof) without compensation, and the
Additional Warrant will automatically be cancelled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On April 4, 2011, the Company and the Holder
also entered into an Amended and Restated Security Agreement to ensure that any Promissory Note issued upon exercise of the Additional
Warrant will be entitled to the benefits of the security and collateral provisions of the Security Agreement dated as of July
19, 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">From November 1, 2010, through October
31, 2011 the Company issued and sold 177 shares of non-convertible, redeemable Series B Preferred Stock to Optimus pursuant to
the terms of a Preferred Stock Purchase.&nbsp; Prior to closing on the Preferred Stock purchase, the company received $300,000
from Optimus in exchange for promissory notes (subsequently repaid at closing).&nbsp; The Company received gross proceeds of $1.47
million (net proceeds of $1.34 million) from this transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with these transactions,
Optimus exercised 15,752,903 warrants at exercise prices ranging from $.15 to $.155. In addition, on April 4, 2011, under an amendment
to the Preferred Stock Purchase Agreement dated July 19, 2010, the Company issued Optimus a three-year warrant to purchase 25,560,000
shares of the Company&rsquo;s common stock at an initial exercise price of $0.15.&nbsp; As of October 31, 2011, 25,560,000 warrants
remained outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of October 31, 2011, the Company continued
to have 284 shares of its Series B Preferred Stock available for sale to Optimus at a gross purchase price of $10,000.&nbsp; Under
the terms of the May 2011 Notes, the Company may issue Optimus securities only to the extent the net proceeds of such issuance
are used to repay May 2011 Noteholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Warrants</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Some of our warrants (except the warrants
issued to an affiliate of Optimus) contain &ldquo;full-ratchet&rdquo; anti-dilution provisions originally set at $0.20 with a
term of five years.&nbsp; The Optimus transaction on January 11, 2010 triggered the anti-dilution provisions of the warrant agreements
requiring a reset of both the price of these warrants (from $.20 to $.17) and an increase in amount of warrants.&nbsp; Subsequently,
the Optimus transaction on September 28, 2010 triggered the anti-dilution provisions of the warrant agreements requiring a reset
of both the price of these warrants (from $0.17 to $0.15) and an increase in the amount of warrants.&nbsp; Therefore, any future
financial offering or instrument issuance below $0.15 per share of the Company&rsquo;s common stock or warrants will cause further
anti-dilution and/or repricing provisions in approximately 49.4 million of our outstanding warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>12.&nbsp;Fair Value</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The authoritative guidance for fair
value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a
liability (an exit price) in the principal or the most advantageous market for the asset or liability in an orderly
transaction betweenmarket participants on the measurement date. Market participants are buyers and sellers in the principal
market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The guidance
describes a fair value hierarchy based on the levels of inputs, of which the first two are considered observable and the last
unobservable, that may be used to measure fair value which are the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Symbol">&middot;</FONT> &nbsp; Level
1 &mdash; Quoted prices in active markets for identical assets or liabilities</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Symbol">&middot;</FONT> &nbsp; Level
2&mdash; Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets
or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable
market data or substantially the full term of the assets or liabilities</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Symbol">&middot;</FONT> &nbsp; Level
3 &mdash; Unobservable inputs that are supported by little or no market activity and that are significant to the value of the
assets or liabilities</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In accordance with FASB ASC 820, &ldquo;Fair
Value Measurements and Disclosures&rdquo;, the following table represents the Company&rsquo;s fair value hierarchy for its financial
liabilities measured at fair value on a recurring basis as of October 31, 2011:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="font: 10pt times new roman; width: 70%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level&nbsp;3&nbsp;&mdash;&nbsp;2011</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD STYLE="width: 80%; font-weight: bold">Fair Value of Embedded Derivative</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 17%; text-align: right">946,046</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">Common Stock Warrants</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">$</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,391,071</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">Total</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">$</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,337,117</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Accordingly, the derivatives were valued
using the Black-Scholes model as described in Note 6.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In accordance with the fair value hierarchy
described above, the following table shows the fair value of the Company's financial instruments that are required to be measured
at fair value as of October 31, 2011 and October 31, 2010:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">October&nbsp;31,&nbsp;2011</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center">Level&nbsp;1</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center">Level&nbsp;2</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center">Level&nbsp;3</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center">Total</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD STYLE="width: 52%">Common stock warrant liability, warrants exercisable at $.15 - $0.1952 from February 2011 through November
    2015</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 9%; text-align: right">-</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 9%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 9%; text-align: right">6,391,071</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 9%; text-align: right">6,391,071</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Embedded derivative liability, convertible at $0.15 from August 2011 through May 2012</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">946,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">946,046</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">October&nbsp;31,&nbsp;2010</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center">Level&nbsp;1</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center">Level&nbsp;2</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center">Level&nbsp;3</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center">Total</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD STYLE="width: 52%">Common stock warrant liability, warrants exercisable at $.15 - $0.287 from February 2011 through August
    2015</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 9%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 9%; text-align: right">-</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 9%; text-align: right">13,006,194</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 9%; text-align: right">13,006,194</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="text-indent: -9pt">C Embedded derivative liability, convertible at $0.15 from October 2010 through May 2011</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">81,028</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">81,028</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of October 31, 2011, the fair values of the Company's Level
3 financial instruments were $7,337,117. As of October 31, 2010, the fair values of these financial instruments, classified as
Level 3 financial instruments, were $13,087,222.&nbsp; These financial instruments consist of common stock warrants and embedded
derivatives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of October 31, 2011 and October 31, 2010, the Company held
no Level 2 or Level 1 financial instruments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of October 31, 2011, the fair value of the Company's Level
3 financial instruments totaled $7,491,422.&nbsp; The Level 3 financial instruments consist of common stock warrants issued by
the Company between October 2005 and May 2011, which include features requiring liability treatment of the warrants. The fair
value of warrants issued to purchase 91,415,804 shares of the Company&rsquo;s common stock was estimated by the Company using
the Black-Scholes model (BSM Model).&nbsp; The Company computes valuations, each quarter, using the BSM model for each warrant
to account for the various possibilities that could occur due to changes in the inputs to the BSM model as a result of contractually-obligated
changes (for example, changes in strike price to account for down-round provisions). The Company effectively weights each calculation
based on the likelihood of occurrence to determine the value of the warrant at the reporting date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There were no transfers of assets or liabilities between level
1, level 2 and level 3 during the twelve months ended October 31, 2011 or 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table summarizes the changes in fair value of
the Company's Level 3 financial instruments for the twelve months ended October 31, 2011:&nbsp;&nbsp;The following table summarizes
the changes in fair value of the Company&rsquo;s Level 3 financial instruments for the twelve months ended October 31, 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Embedded derivative liability</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt times new roman; width: 92%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">October&nbsp;31,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">2011</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">October&nbsp;31,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">2010</P></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD STYLE="width: 70%">Beginning balance at October 31, 2010 and 2009</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 12%; text-align: right">81,028</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 12%; text-align: right">1,086,514&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Issuance of embedded derivatives associated with convertible notes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">3,505,605</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">522,530&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD>Note Conversions and Payoffs</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(683,977</TD>
    <TD>&nbsp;)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(825,682&nbsp;</TD>
    <TD>)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Reclassification of embedded derivative liability to equity</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(190,449</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD STYLE="padding-bottom: 1pt">Change in fair value</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,766,161</TD>
    <TD STYLE="padding-bottom: 1pt">)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(702,334)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-bottom: 2.5pt">Ending balance</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">946,046</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">81,028&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Common stock warrant liability:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt times new roman; width: 92%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">October&nbsp;31,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">2011</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">October&nbsp;31,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">2010</P></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD STYLE="width: 70%">Beginning balance at October 31, 2010 and 2009</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 12%; text-align: right">13,006,194</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 12%; text-align: right">11,961,734</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Issuance of common stock warrants</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">5,065,326</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">8,579,900</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD>Exercises and Exchanges of warrants</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(3,826,409</TD>
    <TD>&nbsp;)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(7,792,198</TD>
    <TD>)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Reclassification of&nbsp;&nbsp;common stock warrant liability to equity</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">101,867</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD STYLE="padding-bottom: 1pt">Change in fair value</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(7,955,907</TD>
    <TD STYLE="padding-bottom: 1pt">)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">256,758</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-bottom: 2.7pt">Ending balance</TD>
    <TD STYLE="padding-bottom: 2.7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">6,391,071</TD>
    <TD STYLE="padding-bottom: 2.7pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">13,006,194</TD>
    <TD STYLE="padding-bottom: 2.7pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>13. SUBSEQUENT EVENTS&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>December&nbsp;2011 Note Financing</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On&nbsp;December&nbsp;29, 2011, we entered
into a Note Purchase Agreement, which we refer to as the&nbsp;December 2011 purchase agreement, with certain accredited investors,
whereby the investors acquired approximately $1.2 million of our convertible promissory notes, which we refer to as the Notes,
for an aggregate purchase price of approximately $1.0 million in a private placement, which we refer to as the&nbsp;December 2011
offering. The Notes were issued with an original issue discount of 15%. Each investor paid $0.85 for each $1.00 of principal amount
of Notes purchased at the closing of the&nbsp;December 2011 offering. The Notes are convertible into shares of our common stock,
at a per share conversion price equal to $0.15. Additionally, each investor received a warrant, which we refer to as the Warrants,
to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable upon
conversion of the Note at an exercise price of $0.15 per share.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 63pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes mature on January 9, 2013. We
may redeem the Notes under certain circumstances. The Warrants are exercisable at any time on or before January 9, 2015. The Warrants
may be exercised on a cashless basis under certain circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 63pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To the extent an investor does not elect
to convert its Notes as described above, the principal amount of the Notes not so converted on or prior to the maturity date shall
be payable in cash on the maturity date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 63pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes may be converted by the investors,
at the option of such investor, in whole or in part.&nbsp;&nbsp;However, except as otherwise provided in the Notes, only 85% of
the initial principal amount of each Note is convertible prior to maturity.&nbsp;&nbsp;The Notes and Warrants include a limitation
on conversion or exercise, which provides that at no time will an investor be entitled to convert any portion of the Notes or
exercise any of the Warrants, to the extent that after such conversion or exercise, such investor (together with its affiliates)
would beneficially own more than 4.99% of the outstanding shares of our common stock as of such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 63pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the&nbsp;December 2011
offering, we intend to enter into a Registration Rights Agreement with the investors.&nbsp;&nbsp;Pursuant to such agreement, we
agree with the investors to provide certain rights to register under the Securities Act of 1933, as amended, the shares of our
common stock issuable upon any conversion of the Notes and the exercise of the Warrants, and agree to file a registration statement
within 45 days of the closing of the&nbsp;December 2011 offering to register the offering of the shares of our common stock issuable
upon conversion of the Notes and the exercise of the Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 63pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Rodman &amp; Renshaw, LLC, which we refer
to as Rodman, a subsidiary of Rodman &amp; Renshaw Capital Group, Inc. (NASDAQ:RODM) acted as the exclusive placement agent in
connection with the&nbsp;December 2011 offering and received compensation of a cash placement fee equal to 7% of the aggregate
purchase price paid by investors in the&nbsp;December 2011 offering (approximately $73,000) and Warrants to purchase 575,098 shares
of our common stock (approximately 7% of the shares of our common stock issuable upon conversion of the Notes), which warrants
are exercisable at $0.15 per share and shall expire on&nbsp;January 9, 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Junior Subordinated Convertible Promissory Notes</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During November and December 2011, the
Company converted approximately $169,000 in principal into 1,126,667 shares of the Company&rsquo;s common stock at an conversion
price of $0.15, in full satisfaction of these junior subordinated convertible promissory notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, the Company paid approximately $53,000 in principal
on an outstanding junior subordinated convertible promissory note.&nbsp;&nbsp;In exchange for extending the remaining principal
on this note, of approximately $300,000, for an additional nine months, the Company agreed to issue this investor approximately
2.3 million additional warrants at an exercise price of $0.15 as well as pay additional interest in the amount of approximately
$53,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>May 2011 Notes</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During November and December 2011, the Company converted approximately
$1.7m&nbsp;in principal into 11,313,727 shares of the Company&rsquo;s common stock at an conversion price of $0.15.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>October 2011 Notes</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During December 2011 and January 2012, the Company converted
$1.28 million&nbsp;in principal into 8,183,333 shares of the Company&rsquo;s common stock at an conversion price of $0.15.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>University of Pennsylvania</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On December&nbsp;12, 2011, we entered into
a third amendment to the Penn license agreement pursuant to which we acquired an exclusive worldwide license agreement for additional
patent applications from the laboratory of Dr. Yvonne Paterson.&nbsp;&nbsp;One application pertains to the antigen ISG15 from
Penn for use in our <I>Lm</I> -LLO based immunotherapies for the treatment of cancer and other diseases.&nbsp;&nbsp;This intellectual
property resulted from work performed in the laboratory of Dr. Yvonne Paterson that demonstrated ISG15 was an effective immunological
target for the treatment of a number of different cancers in animal models, including ovarian, colon, breast and other cancers.&nbsp;&nbsp;SG-15
expression is elevated in &ldquo;triple negative&rdquo; breast cancer, a disease in which HER2, estrogen and progesterone receptors
are lacking, and thus has no defined therapeutic immune target at the moment.&nbsp;&nbsp;An <I>Lm</I>-LLO vaccine that targets
ISG-15 may prove to be an effective agent in an area where there is a significant unmet medical need.&nbsp;&nbsp;As part of this
amendment, we exercised our option for the rights to two additional patent dockets at an option exercise fee payable in the form
of $20,000 in cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADVAXIS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BALANCE SHEETS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">(unaudited)<BR> July 31,<BR> 2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">October&nbsp;31,<BR> 2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">ASSETS</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current Assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%; padding-left: 9pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">5,288</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,096,538</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Other Current Asset Receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">477,788</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,926</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,474</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9pt">Other Current Assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">33,182</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,221</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 0.25in">Total Current Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">78,396</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,614,021</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Deferred expenses - clinical</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,014,178</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,380,103</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Property, Plant &amp; Equipment (net of accumulated depreciation)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">82,660</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Intangible Assets (net of accumulated amortization)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,405,934</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,256,852</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Deferred Financing Cost</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68,188</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65,848</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Interest Receivable &amp; Other Assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">473,848</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">323,738</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: center; padding-bottom: 2.5pt">TOTAL ASSETS</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">4,123,204</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,640,562</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: left">LIABILITIES AND SHAREHOLDERS&rsquo; DEFICIENCY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current Liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt">Accounts payable and Accrued Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">6,053,853</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,396,594</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Deferred Investment Funds</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt">Notes Payable &ndash; convertible promissory notes and fair value of embedded derivative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,085,571</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,091,298</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Notes payable &ndash;Officer (including interest payable)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">395,566</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">408,069</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt">Notes Payable &ndash; other&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">250,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9pt">Interest Payable &ndash; other</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,260</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Total Current Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,837,250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,895,961</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Deferred Rent</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,212</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">62,441</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Long-term Convertible Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">570,802</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Common Stock Warrant</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,265,985</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,391,071</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Total Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,122,447</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,920,275</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Shareholders&rsquo; Deficiency:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Preferred stock, $0.001 par value; 5,000,000 shares authorized; Series B Preferred Stock; issued and outstanding 740 at July 31, 2012 and at October 31, 2011.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Common Stock - $0.001 par value; authorized 500,000,000 shares, issued and outstanding 375,135,008 at July 31, 2012 and 250,173,570 at October 31, 2011.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">375,135</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">250,173</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Additional Paid-In Capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,235,200</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,000,064</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Promissory Note Receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,998,210</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,998,210</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Deficit accumulated during the development stage</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(45,611,368</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(35,531,740</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Total Shareholders&rsquo; Deficiency</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(4,999,243</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(12,279,713</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">TOTAL LIABILITIES  AND SHAREHOLDERS&rsquo;
    DEFICIENCY</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">4,123,204</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,640,562</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The accompanying notes are an integral part of these financial
statements.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADVAXIS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>STATEMENTS OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three&nbsp;Months&nbsp;Ended<BR> July&nbsp;31,</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Nine&nbsp;months&nbsp;Ended<BR> July&nbsp;31,</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Period&nbsp;from<BR> March&nbsp;1,&nbsp;2002<BR> (Inception)&nbsp;to<BR> July&nbsp;31,</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 45%; padding-bottom: 1pt">Revenue</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 8%; border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 8%; border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 8%; border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 8%; border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 8%; border-bottom: Black 1pt solid; text-align: right">1,863,343</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Research &amp; Development Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,331,415</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,958,518</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,760,158</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,392,919</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,916,898</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">General &amp; Administrative Expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,251,725</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,638,287</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,297,110</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,581,888</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">25,476,943</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Total Operating expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,583,140</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,596,805</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">10,057,268</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9,974,807</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">54,393,841</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Loss from Operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,583,140</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,596,805</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10,057,268</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,974,807</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(52,530,498</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Other Income (expense):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,045,297</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,769,974</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,241,805</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,721,020</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14,691,142</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Other Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,375</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,004</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,715</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,603</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">273,422</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">(Loss) on note retirement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(932,421</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(115,396</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,173,491</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(109,492</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(978,646</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Net changes in fair value of common stock warrant liability and embedded derivative liability</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,430,914</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9,127,394</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,020,434</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,134,709</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">20,423,120</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net (Loss) Income before benefits for income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,104,569</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,641,215</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10,426,415</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,617,007</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(47,494,744</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Income tax benefit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">346,787</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">379,472</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,927,260</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net Income (Loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,104,569</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,641,215</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10,079,628</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,237,535</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(45,567,484</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Dividends attributable to preferred shares</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">185,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">185,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">555,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,353,686</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,137,570</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net Income (Loss) applicable to Common Stock</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(3,289,569</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3,456,215</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(10,634,628</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(6,591,221</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(47,705,054</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net Income (Loss) per share, basic</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(.01</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">.02</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(.03</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(.03</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net Income (Loss) per share, diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(.01</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">.01</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(.03</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(.03</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Weighted average number of shares outstanding, basic</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">346,851,744</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">228,375,277</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">298,430,345</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">212,269,995</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Weighted average number of shares outstanding, diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">346,851,744</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">300,847,826</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">298,430,345</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">212,388,256</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The accompanying notes are an integral part of these financial
statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADVAXIS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(a development stage company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>STATEMENT OF SHAREHOLDERS&rsquo; DEFICIENCY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Period from November 1, 2011 to July
31, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Preferred&nbsp;Stock</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Common&nbsp;Stock</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Deficit</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Number&nbsp;of</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Stock</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Accumulated</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Shares&nbsp;of<BR> Outstanding</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Amount</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Number&nbsp;of&nbsp;shares<BR>
    of&nbsp;outstanding</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Amount</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Subscription<BR> Receivable</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Additional&nbsp;Paid-<BR> in&nbsp;Capital</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">During&nbsp;the<BR> Development&nbsp;Stage</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Shareholders&rsquo;<BR> Equity&nbsp;(Deficiency)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 44%; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Balance at October 31, 2011</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 4%; text-align: right"><FONT STYLE="font-size: 7pt">740</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="width: 4%; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="width: 4%; text-align: right"><FONT STYLE="font-size: 7pt">250,173,570</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="width: 4%; text-align: right"><FONT STYLE="font-size: 7pt">250,173</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="width: 4%; text-align: right"><FONT STYLE="font-size: 7pt">(9,998,210</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="width: 4%; text-align: right"><FONT STYLE="font-size: 7pt">33,000,064</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="width: 4%; text-align: right"><FONT STYLE="font-size: 7pt">(35,531,740</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="width: 4%; text-align: right"><FONT STYLE="font-size: 7pt">(12,279,713</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common Stock Issued
    Upon Exercise of Warrants</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">2,745,097</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">2,745</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">409,019</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">411,764</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Options granted to employees
    and directors</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">289,725</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">289,725</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Options granted to consultants</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">10,459</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">10,459</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common stock issued
    upon conversion of Bridge Notes</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">1,126,667</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">1,127</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">167,873</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">169,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common stock issued
    upon conversion of May 2011 Notes</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">12,827,060</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">12,827</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">2,332,698</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">2,029,936</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common stock issued
    upon conversion of October 2011 Notes</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">8,183,333</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">8,183</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">1,636,237</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">1,348,784</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Issuance of common stock
    warrants with December 2011 Notes</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">279,807</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">279,807</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Interest on Optimus
    Notes</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">50,402</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">50,402</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common stock issued
    upon partial conversion of long-term convertible promissory notes</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">3,600,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">3,600</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">382,237</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">385,837</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">Net Loss</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">(4,365,544</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">(3,754,319</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Balance at January
    31, 2012</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">740</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">278,655,727</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">278,655</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">(9,998,210</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">38,558,521</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">(39,897,284</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">(11,058,318</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common Stock Issued
    Upon Exchange of Warrants</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">1,597,112</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">1,597</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">221,998</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">223,595</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Options granted to employees</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">279,045</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">279,045</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Options granted to consultants</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">8,333</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">8,333</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common stock issued
    upon conversion of May 2011 Notes</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">253,333</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">253</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">37,745</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">35,460</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common stock issued
    upon conversion of December 2011 Notes</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">5,516,666</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">5,517</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">972,594</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">772,697</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Interest on Optimus
    Notes</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">49,306</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">49,306</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Exchange of Bridge Notes</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">260,706</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">260,706</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Issuance of shares to directors</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">999,632</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">999</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">31,558</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">32,557</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Issuance of shares to
    employees under Employee Stock Purchase Plan</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">15,862</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">16</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">2,146</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">2,162</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">Net Loss</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">(2,609,515</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">(2,401,563</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Balance at April
    30, 2012</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">740</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">287,038,332</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">287,037</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">(9,998,210</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">40,421,952</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">(42,506,799</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">(11,796,020</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD></TR>

<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common Stock Issued
    Upon Exchange of Rodman May 2011 Notes</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">37,552,901</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">37,553</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">4,134,466</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">4,172,019</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Options granted to employees</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">293,528</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">293,528</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Options granted to consultants</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">(3,839</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">(3,839</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common stock issued
    upon Exchange of October 2011 Notes</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">12,135,049</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">12,135</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">1,486,639</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">1,498,774</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common stock issued
    upon Exchange of December 2011 Notes</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">2,504,902</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">2,505</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">294,308</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">296,813</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Interest on Optimus
    Notes</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">50,401</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">50,401</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common Stock Issued
    Upon Exchange of Bridge Note</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">583,333</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">584</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">81,208</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">81,792</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Issuance of settlement shares</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">4,000,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">4,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">801,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">805,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common Stock issued
    upon conversion of long-term convertible promissory note</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">4,725,927</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">4,726</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">275,478</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">280,204</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common Stock issued
    to consultants</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">415,167</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">416</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">39,442</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">39,858</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common Stock issued
    under Numoda Stock Purchase Agreement</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">15,000,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">15,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">1,365,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">1,380,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Common Stock issued
    to Socius</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">11,111,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">11,111</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">988,880</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">999,991</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Issuance of shares to
    employees under Employee Stock Purchase Plan</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">68,397</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">68</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">6,737</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">6,805</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">Net Loss</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">(3,104,569</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">(3,104,569</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -6.35pt; padding-left: 6.35pt"><FONT STYLE="font-size: 7pt">Balance at July
    31, 2012</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">740</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">375,135,008</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">375,135</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">(9,998,210</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">50,235,200</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">(45,611,368</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 7pt">(4,999,243</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Page; Sequence: 128; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->35<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADVAXIS,&nbsp;INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A&nbsp;Development&nbsp;Stage&nbsp;Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>STATEMENTS&nbsp;OF&nbsp;CASH</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FLOWS<BR>
(unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; padding-right: 0; padding-left: 0; text-indent: 0">Nine months&nbsp;Ended<BR> July 31,</TD><TD NOWRAP STYLE="font-weight: bold; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; padding-right: 0; padding-left: 0; text-indent: 0"><B>&nbsp;Period&nbsp;from<BR> March&nbsp;1,</B> <B> 2002<BR>
    (Inception)&nbsp;to<BR> July 31,</B> <B></B></TD><TD NOWRAP STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; padding-right: 0; padding-left: 0; text-indent: 0">2012</TD><TD NOWRAP STYLE="font-weight: bold; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; padding-right: 0; padding-left: 0; text-indent: 0">2011</TD><TD NOWRAP STYLE="font-weight: bold; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; padding-right: 0; padding-left: 0; text-indent: 0">2012</TD><TD NOWRAP STYLE="font-weight: bold; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: left">OPERATING ACTIVITIES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 61%; text-align: left">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(10,079,628</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(5,237,535</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(45,567,484</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Adjustments to reconcile net loss to net cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Non-cash charges to consultants and employees for options and stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">877,251</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">619,326</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,677,896</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Amortization of deferred financing costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">260,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Amortization of discount on convertible promissory notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,331,368</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">455,619</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,487,761</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Impairment of intangible assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,087</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Non-cash interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,885,053</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,198,214</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,455,784</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">(Gain) loss on change in value of warrants and embedded derivative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,020,434</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,134,709</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20,432,120</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Warrant Expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">71,899</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">764,210</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Employee Stock Purchase Plan expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,727</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,727</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Value of penalty shares issued</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">149,276</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Depreciation expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,184</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,406</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">204,858</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Amortization expense of intangibles</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">109,859</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">99,274</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">704,499</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,478</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Loss (Gain) on note retirement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,173,491</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">109,492</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">978,646</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-decoration: underline; text-align: left">Changes in operating assets and liabilities :</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Decrease (increase) in prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,452</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,352</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(39,925</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Decrease in grant receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">244,479</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Decrease (increase) in other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(30,961</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(27,221</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(33,182</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Increase in other assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(140,222</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(132,271</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Decrease (increase) in deferred expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">365,925</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(43,830</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(506,450</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Increase in accounts payable and accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,445,333</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,258,911</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,370,590</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">(Decrease) increase in deferred rent</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(43,228</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,231</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,212</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Increase (decrease) in interest payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,759</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">51,469</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(41,104</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: left">Net cash used in operating activities</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(3,944,753</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(7,397,549</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(33,610,512</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><B>INVESTING ACTIVITIES</B> &nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Purchase of property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(91,844</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(241,937</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Cost of intangible assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(258,940</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(239,019</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,219,620</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Net cash used in Investing Activities</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(350,784</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(239,019</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(3,461,557</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><B>FINANCING ACTIVITIES</B> &nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Proceeds from convertible debenture</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">875,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,495,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">(Increase) in deferred offering expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(58,500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(23,500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(110,500</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Cash paid for deferred financing costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(584,493</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Principal payments on notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(87,941</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(613,573</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,779,030</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Proceeds from notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,388,963</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,701,775</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,340,885</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Deferred Investment Funds</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net proceeds of issuance of Preferred Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,342,672</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,610,499</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Cancellation of warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(600,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Proceeds from exercise of warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">411,765</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,085,001</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,666,766</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Net proceeds of issuance of common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,988,230</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Net cash provided by Financing Activities</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">3,204,287</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">9,342,375</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">37,077,357</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Net increase (decrease) in cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,091,250</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,705,807</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,288</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Cash at beginning of period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,096,538</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">108,381</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Cash at end of period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,288</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,814,188</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,288</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The accompanying notes are an integral part of these financial
statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><B>Supplemental Disclosures
of Cash Flow Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center">Nine months&nbsp;ended<BR> July 31,</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Period&nbsp;from<BR> March&nbsp;1,&nbsp;2002<BR> (Inception)&nbsp;to<BR> July 31,</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 61%; text-align: left; padding-bottom: 2.5pt">Cash paid for Interest</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 2.5pt double; text-align: right">53,027</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 2.5pt double; text-align: right">70,372</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 2.5pt double; text-align: right">788,017</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Supplemental Schedule of Noncash Investing
and Financing Activities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center">Nine months&nbsp;ended<BR> July 31,</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Period&nbsp;from<BR> March&nbsp;1,&nbsp;2002<BR> (Inception)&nbsp;to<BR> July 31,</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 61%; text-align: left; padding-bottom: 1pt">Equipment acquired under notes payable</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; text-align: right">45,580</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Common stock issued to Founders</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">40</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Notes payable and accrued interest converted to Preferred Stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">15,969</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Stock dividend on Preferred Stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">43,884</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Accounts Payable from vendors settled in Common Stock&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,249,990</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,249,990</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Accounts Payable from consultants settled with Common Stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">62,275</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">114,253</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Notes payable and embedded derivative liabilities converted to Common Stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9,224,971</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,638,673</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">15,060,221</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Intangible assets acquired with notes payable</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">360,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Intangible assets acquired with common stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">70,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Debt discount in connection with recording the original value of the embedded derivative liability</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">306,568</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,622,701</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,527,552</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Allocation of the original secured convertible debentures to warrants</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">214,950</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Allocation of the warrants on convertible notes as debt discount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">571,207</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">778,052</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,001,806</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Cancellation of Note Receivable in connection with Preferred Stock Redemption</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(3,051,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(3,051,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Note receivable in connection with exercise of warrants</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,389,500</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9,998,210</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Common stock issued in exchange for warrants</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">134,796</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">134,796</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Warrants Issued in connection with issuance of Common Stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">517,797</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,023,347</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Warrants Issued in connection with issuance of Preferred Stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,587,625</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The accompanying notes are an integral part of these financial
statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADVAXIS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO THE FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Nature of Operations</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Advaxis Inc. (the &ldquo;Company&rdquo;)
is a biotechnology company developing the next generation of immunotherapies for cancer and infectious diseases. Our platform technology
is designed to generate a comprehensive immune response by serving as its own adjuvant, directing antigen presentation, increasing
tumor infiltrating killer T-cells, and decreasing Tregs/MDSCs in the tumor. Today, the Company has over fifteen distinct constructs
in various stages of development, directly developed by the Company and through strategic collaborations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Since the Company&rsquo;s inception in 2002,
it has focused its initial development efforts upon immunotherapies targeting cervical cancer, its predecessor condition, cervical
intraepithelial neoplasia, head and neck cancer, breast cancer, prostate cancer, and other cancers and infectious diseases. Although
no products have been commercialized to date, research and development and investment continue to be placed behind the pipeline
and the advancement of this technology. Pipeline development entails risk and expense. It is anticipated that ongoing operational
costs for the Company will continue to increase significantly due to several ongoing clinical trials in this fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Basis of Presentation</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The accompanying unaudited interim financial
statements include all adjustments (consisting only of those of a normal recurring nature) necessary for a fair statement of the
results of the interim period. The October 31, 2011 balance sheet is derived from the audited balance sheet included in the Company&rsquo;s
Annual Report on Form 10-K for the fiscal year ended October 31, 2011 (the &ldquo;Form 10-K&rsquo;). These interim financial statements
should be read in conjunction with the Company&rsquo;s financial statements and notes for the fiscal year ended October 31, 2011
included in the Form 10-K. The Company believes these financial statements reflect all adjustments and reclassifications that are
necessary for a fair presentation of its financial position and results of operations for the periods presented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The accompanying financial statements have
been prepared assuming that the Company will continue as a going concern. There is a working capital deficiency, a shareholders&rsquo;
deficiency and recurring losses from operations that raise substantial doubt about its ability to continue as a going concern.
Please refer to Footnote #14: Subsequent Events for the Company&rsquo;s financing activities that occurred subsequent to July 31,
2012. The financial statements do not include any adjustments to the carrying amount and classification of recorded assets and
liabilities should the Company be unable to continue operations.&nbsp; Management&rsquo;s plans are to continue to raise additional
funds through the sales of debt or equity securities. Results of operations for the interim periods presented are not necessarily
indicative of results to be expected for the year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Prior Period Restatements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company intends to restate its financial
statements for the three month period ended January 31, 2012 as well as the three and six month periods ended April 30, 2012
in order to correct the losses (which were understated) recognized on conversions of its May, October and December 2011 Notes
into shares of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Use of Estimates</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The preparation of financial statements
in conformity with generally accepted accounting principles required management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates
and the differences could be material. The most significant estimates impact the following transactions or account balances: stock
compensation, liabilities (including the embedded derivative liability), warrant valuation, impairment of intangibles and projected
operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Concentration of Credit Risk</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company maintains its cash in bank deposit
accounts (checking) that at times exceed federally insured limits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Intangible Assets</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Intangible assets primarily consist of legal
and filing costs associated with obtaining patents and licenses. The license and patent costs capitalized primarily represent the
value assigned to the Company&rsquo;s 20-year exclusive worldwide license agreement with Penn, which are amortized on a straight-line
basis over their remaining useful lives which are estimated to be twenty years from the effective date of Penn Agreement dated
July 1, 2002. The value of the license and patents are based on management&rsquo;s assessment regarding the ultimate recoverability
of the amounts paid and the potential for alternative future uses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We review our long-lived assets for impairment
whenever events and circumstances indicate that the carrying value of an asset might not be recoverable and its carrying amount
exceeds its fair value, which is based upon estimated undiscounted future cash flows. Net assets are recorded on the balance sheet
for patents and licenses related to ADXS-HPV, ADXS-PSA and ADXS-HER2 and other products that are in development. However, if a
competitor were to gain FDA approval for a treatment before us or if future clinical trials fail to meet the targeted endpoints,
we would likely record an impairment related to these assets. In addition, if an application is rejected or fails to be issued
we would record an impairment of its estimated book value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Research and Development Expenses</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Research and development costs are expensed
as incurred and include but are not limited to clinical trial and related manufacturing costs, payroll and personnel expenses,
lab expenses, facilities and related overhead costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Accounting for Stock-Based Compensation</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Stock-based compensation is estimated at
the grant date based on the award&rsquo;s fair value as calculated by the Black-Scholes-Merton option-pricing model (hereinafter
referred to as the &ldquo;BSM model&rdquo;) and is recognized as expense over the requisite service period. The BSM model requires
various assumptions including volatility, forfeiture rates and expected option life. If any of the assumptions used in the BSM
model change significantly, stock-based compensation expense may differ materially in the future from that recorded in the current
period. See Note 10 for information on stock-based compensation expense incurred in the three and nine month periods ending July
31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Warrants/Embedded Derivatives</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company has outstanding Warrants in
conjunction with its convertible promissory notes (&ldquo;Bridge Notes&rdquo;) and the May 2011, October 2011 December 2011, and
the May 2012 Notes).&nbsp; The Company has two classifications of warrants: liability or equity. The liability warrants are recorded
at fair value at issuance, using the Black-Scholes valuation model (BSM Model), and will continue to be recorded at fair value
each subsequent balance sheet date. Any change in value between reporting periods will be recorded on the statement of operations
at each reporting date. The liability warrants will remain until such time as they are exercised or expire at which time they will
be adjusted to fair value and reclassified from liabilities to equity. The equity warrants are recorded at their relative fair
values at issuance, using the Relative Fair Value Method.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company has convertible features (embedded
derivatives) in its convertible promissory notes . The embedded derivatives are recorded at fair value and classified as liabilities
on the balance sheet. The embedded derivatives will continue to be recorded at fair value each subsequent balance sheet date. Any
change in value between reporting periods will be recorded on the statement of operations at each reporting date. These embedded
derivatives will remain until such time as they are exercised or expire at which time they will be adjusted to fair value and reclassified
from liabilities to equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Recent Accounting Pronouncements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Management does not believe that any recently issued, but not
yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>3. NET LOSS PER SHARE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Basic net income or basic net loss per common
share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding
during the periods. Diluted earnings per share give effect to dilutive options, warrants, convertible debt and other potential
common stock outstanding during the period. Therefore, in the case of a net loss the impact of the potential common stock resulting
from warrants, outstanding stock options and convertible debt are not included in the computation of diluted loss per share, as
the effect would be anti-dilutive. In the case of net income the impact of the potential common stock resulting from these instruments
that have intrinsic value are included in the diluted earnings per share.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The table sets forth
the number of potential shares of common stock that have been excluded from diluted net loss per share:&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As&nbsp;of&nbsp;July 31&nbsp;,</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%; padding-left: 9pt">Warrants (includes Optimus warrant of 25,560,000 at July 31, 2012 and
2011 and exchange warrants(see Note 12) of 34,791,156 at July 31, 2012)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">114,738,770</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">96,994</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Stock Options</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,807,424</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,317,424</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Convertible Debt (using as-if converted method)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">11,594,873</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">171,141,067</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,414,418</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>4. INTANGIBLE ASSETS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following is a summary of intangible
assets as of the end of the following fiscal periods:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">(Unaudited)</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">July 31,<BR> 2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">October&nbsp;31,<BR> 2011</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">License</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">651,992</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">651,992</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Patents</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,376,445</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,117,505</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Total intangibles</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,028,437</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,769,497</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Accumulated Amortization</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(622,503</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(512,645</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Intangible Assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2,405,934</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2,256,852</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The expirations of the existing patents
range from 2014 to 2023 but the expirations can be extended if market approval is granted and/or based on existing laws and regulations.
Amortization expense amounted to $37,435 and $34,018 for the three months ended July 31, 2012 and July 31, 2011, respectively.
Amortization expense amounted to $109,858 and $99,274 for the nine months ended July 31, 2012 and July 31, 2011, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>5. ACCOUNTS PAYABLE AND ACCRUED EXPENSES:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table represents the major components of accounts
payable and accrued expenses:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">(Unaudited)</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">July 31,<BR> 2012</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">October&nbsp;31,<BR> 2011</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%; text-align: left">Accounts Payable</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">4,947,357</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">4,778,508</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Salaries and other compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">696,645</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">531,040</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Clinical Trial</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">56,468</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Vendors</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">77,512</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Consultants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,200</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Financing Costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">140,492</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Legal</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">81,231</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,346</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Other</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">21,768</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,500</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">6,053,853</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,396,594</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>6. DEFERRED INVESTMENT FUNDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During the nine months ended July 31, 2012,
the Company received funds in the aggregate amount of $290,000 from four accredited investors, including $50,000 from our chief
executive officer, Thomas A. Moore. During the nine months ended July 31, 2012, $240,000 of these funds were invested into the
Rodman May 2012 Convertible Debt Financing (See Footnote #7). At July 31, 2012, the Company recorded a current liability for Mr.
Moore&rsquo;s funds of $50,000 that had not yet been invested in the next financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>7. NOTES PAYABLE - CONVERTIBLE PROMISSORY NOTES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"><I>Convertible Promissory
Notes</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We refer to all Convertible
Promissory Notes as &ldquo;Bridge Notes&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bridge Notes are
convertible into shares of the Company&rsquo;s common stock at a fixed exercise price. For every dollar invested in our Bridge
Notes, each Investor received warrant coverage ranging from approximately 23% to 75%, subject to adjustments upon the occurrence
of certain events as more particularly described below and in the form of Warrant. As of July 31, 2012, substantially all of the
Bridge Warrants have an exercise price of $0.15 per share. The Bridge Notes may be prepaid in whole or in part at the option of
the Company without penalty at any time prior to the Maturity Date. The warrants may be exercised on a cashless basis under certain
circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months
ended July 31, 2012, the Company entered into an exchange agreement with an accredited investor in which the investor exchanged
a convertible promissory note in the aggregate principal amount of $50,000 for (i) an aggregate of approximately 583,000 shares
of our common stock and (ii) a warrant to purchase up to 20,834 shares of common stock at an exercise price of $0.15 per share.
The warrant expires in October 2015. The Company recorded noncash expense of approximately $24,000 to the loss on note retirement
account resulting from this exchange for the three months ended July 31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the nine months
ended July 31, 2012, the Company entered into an exchange agreement with an accredited investor in which the investor exchanged
a convertible promissory note in the aggregate principal amount of $300,000 for (i) a convertible promissory note in the aggregate
principal amount $352,941 and in substantially the same form as the existing note except with a maturity date of June 30, 2012
and (ii) a warrant to purchase up to 2,352,940 shares of common stock at an exercise price of $0.15 per share. The warrants expire
in February 2015. The Company recorded noncash expense of approximately $247,000 to the loss on note retirement account resulting
from this exchange for the nine months ended July 31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the nine months
ended July 31, 2012, the Company paid approximately $53,000 in principal on its Bridge Notes. In addition, the Company converted
approximately $169,000 of principal on these Bridge Notes into 1,126,667 shares of the Company&rsquo;s common stock at a conversion
price of $0.15 per share. The Company recorded noncash expense of approximately $27,000 to the loss on note retirement account
resulting from these conversions for the nine months ended July 31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of July 31, 2012,
the Company had approximately $536,000 in principal outstanding on its junior subordinated convertible promissory notes with Original
Issue Discount (&ldquo;OID&rdquo;) amounts ranging from 10% to 15% and with maturity dates ranging from October 19, 2011 to June
30, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Rodman 2011 Financings</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During the months of May, October and December
2011, the Company entered into various Note Purchase agreements with accredited investors including Thomas A. Moore, our Chairman
and Chief Executive Officer, and Mark J. Rosenblum, our Chief Financial Officer. Mr. Rosenblum acquired a note in the principal
amount of approximately $59,000 for an aggregate purchase price of $50,000. Mr. Moore acquired his note in exchange for the cancellation
of $400,000 of outstanding indebtedness owed by us to Mr. Moore. The Company issued $10.6 million of our convertible promissory
notes for an aggregate purchase price of approximately $9.0 million in the private placement. In connection with these financings,
the Company issued 38,784,491warrants to purchase shares of the Company&rsquo;s common stock at a conversion price equal to $0.15
per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Effective May 14, 2012,the Company entered
into exchange agreements with certain holders of an aggregate of approximately $4.5 million of the outstanding principal amount
of certain convertible promissory notes of the Company, pursuant to which such holders received an aggregate of approximately 52.2
million shares of Common Stock and warrants to purchase an aggregate of approximately 5.8 million shares of Common Stock in exchange
for surrendering or converting the Existing Notes and surrendering warrants to purchase an aggregate of approximately 31.3 million
shares of Common Stock originally issued in the Prior Offerings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Exchange Agreements also provides that,
for three months from the date of the Exchange Agreements, if the Company offers, issues, or agrees to issue any of its securities,
other than Exempt Issuances (as defined in the Exchange Agreements), at an effective price per share less than the Base Share Price
(as defined in the Exchange Agreements), then the Company shall issue additional shares of Common Stock to each Existing Investor
in accordance with the formula set forth in the Exchange Agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company accounted for the exchange
as an extinguishment of a liability and recorded a noncash expense of approximately $1.5 million to the loss on
note retirement account resulting from this exchange for the three months ended July 31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The remaining holders (who did not participate
in the above exchange agreements) of an aggregate of approximately $249,000 in principal related to the convertible promissory
notes entered into Amendment, Consent and Waiver Agreements with our company, pursuant to which such holders agreed to amend the
note purchase agreements between our company and such holders to terminate (i) such holders&rsquo; right to participate in any
proposed or intended issuance or sale or exchange of our securities, and (ii) the prohibition on our ability to effect, or enter
into an agreement to effect, any issuance of our securities for cash consideration involving a variable rate transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition to the exchange discussed above,
during the nine months ended July 31, 2012, the Company converted approximately $4,017,000 into 26,780,392 shares of the Company&rsquo;s
common stock at a conversion price of $0.15.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Rodman 2012 Financings</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Effective May 14, 2012, we entered into
a Note Purchase Agreement with certain accredited investors, whereby the investors acquired approximately $953,333 of our convertible
promissory notes for an aggregate purchase price of approximately $715,000 in cash which represented an original issue discount
of 25%. The May 2012 Notes are convertible into shares of our common stock at $0.15 per share. Additionally, each investor received
a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable
upon conversion of the May 2012 Notes at an exercise price of $0.15 per share. The Notes and Warrants also provide that on December
1, 2012, solely to the extent the conversion price of the Notes or the exercise price of the Warrants, as applicable, is less than
the &ldquo;Market Price&rdquo; (as defined in the Notes or the Warrants, as applicable), such conversion price or exercise price,
as applicable, shall be reduced to such Market Price. The May 2012 Notes mature on May 18, 2013. We may redeem the May 2012 Notes
under certain circumstances. The May 2012 Warrants are exercisable at any time on or before May 18, 2017. The May 2012 Warrants
may be exercised on a cashless basis under certain circumstances and expire on May 18, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company elected to apply the fair-value
option to account for the May 2012 notes and have recorded the May 2012 Notes at a fair value of $454,680 upon issuance. Unrealized
losses on the mark-to-market of the notes which amounted to $18,190 for the period from the date of issuance or May, 14, 2012 through
July 31, 2012 were recognized as a noncash expense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, as a result of the reset provisions
discussed above, the warrants which have been recorded at a fair value of $291,400 on May 14, 2012 are being reflected as a warrant
liability as of the date of issuance. As of July 31, 2012, the warrant liability amounted to $222,467 which resulted in a noncash
income of approximately $69,000 for the three months ended July 31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Rodman &amp; Renshaw, LLC acted as
the exclusive placement agent in connection with the May 2012 offering and received compensation of a cash placement fee
equal to 7% of the aggregate purchase price paid by investors (Rodman raised $400,000 of the total purchase price of
$715,000) in the May 2012 offering amounting to$28,000 and warrants to purchase 355,556 shares of our common stock, which
warrants are exercisable at $0.15 per share and shall expire on May 18, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>July 2012 Note</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 21, 2012, we received $250,000 from
an accredited investor in return for issuing a promissory note in the principal amount of $250,000, which bears interest at 33%
per annum, compounded annually and matures on December 31, 2012. We may not redeem this Note without the written consent of the
investor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We refer to all convertible promissory notes
with a maturity date less than one year collectively as &ldquo;Short-term Convertible Promissory Notes.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%; text-align: left; padding-left: 9pt">Short-term Convertible Promissory Notes &ndash; Principal Value &ndash; Issued</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">18,225,036</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Principal payments on Bridge Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,124,851</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Short-term Convertible Promissory Note Conversions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,890,228</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">May, October and December 2011 Debt for Equity Exchanges</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,114,176</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Bridge Note Exchanges</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,712</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Original Issue Discount, net of accreted interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(26,525</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Fair Value of Attached Warrants at issuance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,805,580</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Fair Value of Embedded Derivatives at issuance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,034,500</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Accreted interest on embedded derivative and warrant liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,097,689</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt; padding-bottom: 1pt">Adjustments to fair value &ndash; May 2012 Notes</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(248,142</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Convertible Notes- as of&nbsp; July 31, 2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,083,435</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Embedded Derivatives Liability at July 31, 2012</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,136</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Notes Payable &ndash; convertible promissory notes&nbsp; and fair value of embedded derivative</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,085,571</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Long-term Convertible Promissory Notes</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On April 28, 2011, Advaxis, Inc. issued
and sold to an accredited investor convertible promissory notes of the Company in the aggregate principal amount of $660,000 to
JMJ Financial for cash. The notes bear interest in the form of a one-time interest charge of 8%. and mature onApril 28, 2014. The
notes are convertible, in whole or in part, into shares of the Company&rsquo;s common stock, at a per share conversion price equal
to 80% of the average of the two lowest trade prices for the Common Stock in the 20 trading days previous to the effective date
of each such conversion, subject to a conversion floor of $0.15.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company elected to apply
the fair-value option to account for these notes and have recorded the notes at a fair value of approximately $820,000
upon issuance. Unrealized gains on the mark-to-market of the notes which amounted to approximately $17,000 and $186,000 for
the three and nine months ended July 31, 2012, respectively, were recognized as a noncash income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In November and December, 2011, the Company
converted $500,000 into 3,600,000 shares of common stock. As a result, the Company recorded a noncash income of approximately $36,000
related to the conversion of these notes to equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 8, 2012, the Company
entered into a Settlement Agreement (the &ldquo; Settlement Agreement &rdquo;) with JMJ Financial which provides for (i)
an additional borrowing by the Company of $500,000 from JMJ Financial on the principal amount outstanding under one of the
notes issued by JMJ to the Company in April 2011, (ii) the cancellation of all of the outstanding notes issued by JMJ to
the Company in April 2011, (iii) the cancellation of all of the outstanding notes issued by the Company to JMJ in April
2011, other than the portion of such notes for which JMJ has paid cash to the Company, (iv) a mutual release of any claims
held by the Company or JMJ relating to an outstanding dispute and (v) the issuance by the Company of 4,000,000 newly issued
shares of the Company&rsquo;s common stock (the &ldquo; Settlement Shares &rdquo;) to JMJ as consideration for the
cancellation of the notes and the release. As a result of the Settlement Agreement, no further payments will be made by
either the Company or JMJ under the notes issued by each party in April 2011. The Company recorded noncash expense of
approximately $805,000 for the issuance of the Settlement Shares to JMJ under the Settlement Agreement and recognition of a
beneficial conversion feature, resulting from the issuance of shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company elected to apply the fair-value
option to account for the note and has recorded the note at a fair value of approximately $324,000 upon issuance. Unrealized gains
on the mark-to-market of the note which amounted to $75,000 for the three months ended July 31, 2012 was recognized as a noncash
income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During the three months ended July 31, 2012,
the Company converted all of the notes outstanding totaling $660,000 into 4,725,927 shares of the Company&rsquo;s common stock..&nbsp;The
Company recorded noncash income of approximately $250,000 upon conversion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>8. NOTES PAYABLE &ndash; OFFICER</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On September 22, 2008,
Advaxis entered into an agreement (the &ldquo;Moore Agreement&rdquo;) with the Company&rsquo;s Chief Executive Officer, Thomas
A. Moore, pursuant to which the Company agreed to sell senior promissory notes to Mr. Moore, from time to time (&ldquo;the Moore
Notes&rdquo;). The terms and maturity date of the Moore Notes have been amended from time to time to change maturity dates and
repayment provisions. Currently, under the terms of the amended and restated Moore Notes: (i) the maturity date is the earlier
of (x) the date of consummation of an equity financing by us in an amount of $6.0 million or more and (y) the occurrence of any
event of default as defined in the Moore Notes, (ii) Mr. Moore may elect, at his option, to receive accumulated interest thereon
on or after April 15, 2011, (iii) we will make monthly installment payments of $100,000 on the outstanding principal amount beginning
on June 15, 2011, and (iv) we may retain, at the option of Mr. Moore, $200,000 of the repayment amount for investment in our next
equity financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During the nine months ended July
31, 2012, the Company paid Mr. Moore $35,000 in principal.&nbsp; As of July 31, 2012, the Company was not in default under the
terms of the Moore Agreement.&nbsp; As of July 31, 2012, the Company owed Mr. Moore approximately $396,000, inclusive of accrued
interest in the amount of approximately $158,000 in the form of a Note Payable &ndash; Officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>9.</B> <B>DERIVATIVE INSTRUMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The table below lists the Company&rsquo;s
derivative instruments as of July 31, 2012:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>Description</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Principal</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Original<BR> Issue<BR> Discount</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Warrant<BR> Liability</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Embedded<BR> Derivative<BR> Liability</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 48%; font-weight: bold">Total Valuation at October 31, 2011</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 10%; font-weight: bold; text-align: right">8,976,071</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 10%; font-weight: bold; text-align: right">1,300,347</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 10%; font-weight: bold; text-align: right">6,391,071</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 10%; font-weight: bold; text-align: right">946,046</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Issuance of December 2011 Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,232,353</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">258,178</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">306,568</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Conversion of Bridge Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(169,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Conversion of May 2011 Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,924,060</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(341,342</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Conversion of October 2011 Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,227,500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(329,433</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Partial Note Repayments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(52,941</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Conversion of Long-term Convertible Promissory Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(540,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Exchange of Warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">59,572</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Accreted Interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(532,559</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Change in FV</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(923,052</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">159,657</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">Total Valuation at January 31, 2012</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">6,294,923</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,025,966</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">5,527,591</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">741,496</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Exchange of Bridge Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">52,941</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Conversion of May 2011 Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(38,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,016</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Conversion of December 2011 Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(827,500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(160,677</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Exchange of Warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(134,796</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accreted Interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(569,419</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Change in FV</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,302,707</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(438,054</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">Total Valuation at April 30, 2012</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">5,482,364</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">456,547</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,090,088</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">137,749</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>

<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 48%">Issuance of May 2012 Notes</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">953,333</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">291,400</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Debt for Equity Exchange: May and October 2011, December 2011 Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,473,673</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(200,632</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(115,046</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Debt for Equity Exchange: Bridge Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(50,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,750</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>July 2012Exchange of Warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(407,501</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">JMJ Settlement Agreement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">540,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">JMJ Note Conversions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(712,800</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accreted Interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(229,392</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Change in FV</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,703,252</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(20,567</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">Total Valuation at July 31, 2012</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,739,224</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">26,523</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,265,985</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,136</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Warrant Liability/Embedded Derivative Liability</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Warrant Liability</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of July 31,
2012, the Company had approximately 99.6 million of its total approximately 114.7 million total warrants classified as
liabilities (liability warrants). Of these 99.6 million liability warrants, approximately 64.8 million warrants are
outstanding and 34.8 million warrants are exchange warrants &ndash; nonexercisable. The Company utilizes the BSM Model to
calculate the fair value of these warrants at issuance and at each subsequent reporting date. For those warrants with
exercise price reset features (anti-dilution provisions), the Company computes multiple valuations, each quarter, using an
adjusted BSM model, to account for the various possibilities that could occur due to changes in the inputs to the BSM model
as a result of contractually-obligated changes (for example, changes in strike price to account for down-round
provisions).&nbsp;The Company effectively weights each calculation based on the likelihood of occurrence to determine the
value of the warrants at the reporting date. Approximately 47 million of our 99.6 million liability warrants are subject to
anti-dilution provisions. A certain number of liability warrants contain a cash settlement provision in the event of a
fundamental transaction (as defined in the common stock purchase warrant). Any changes in the fair value of the warrant
liability (i.e. - the total fair value of all outstanding liability warrants at the balance sheet date) between reporting
periods will be reported on the statement of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At July 31, 2012, the
fair value of the warrant liability was approximately $1,266,000. For the three months ended July 31, 2012 and July 31, 2011, the
Company reported income of approximately $1.7 million and $6.9 million, respectively, due to changes in the fair value of the warrant
liability. For the nine months ended July 31, 2012 and July 31, 2011, the Company reported income of approximately $4.9 million
and approximately $5.8 million, respectively, due to changes in the fair value of the warrant liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Embedded Derivative Liability</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has convertible
features (Embedded Derivatives) in its outstanding convertible promissory notes .&nbsp; The Embedded Derivatives are recorded as
liabilities at issuance.&nbsp; These Embedded Derivatives are valued using the Black-Scholes Model (BSM Model) and are subject
to revaluation at each reporting date. Any change in fair value between reporting periods will be reported on the statement of
operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At July 31, 2012, the
fair value of the Embedded Derivative Liability was approximately $2,140. For the three months ended July 31, 2012 and July 31,
2011, the Company reported income of approximately $28,000 and approximately $2.2 million, respectively, due to changes in the
fair value of the Embedded Derivative Liability partially resulting from debt to equity exchanges during the period. . For the
nine months ended July 31, 2012 and July 31, 2011, the Company recorded income of approximately $307,000 and approximately $1.3
million, respectively, due to changes in the fair value of the Embedded Derivative Liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>10. ACCOUNTING FOR STOCK BASED COMPENSATION PLANS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company records
compensation expense associated with stock options based on the estimated fair value of each option award that was granted using
the Black-Scholes option valuation model.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The table below summarizes compensation
expenses from share-based payment awards:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="text-align: center">Three&nbsp;Months&nbsp;Ended</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="text-align: center">Nine months&nbsp;Ended</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="text-align: center">July 31,</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="text-align: center">July 31,</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 48%; text-align: left">Research &amp; Development</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">128,011</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">95,263</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">397,231</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">265,768</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 8.65pt">General &amp; Administrative</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">161,678</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">104,005</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">480,020</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">353,531</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Total stock compensation recognized</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">289,689</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">199,268</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">877,251</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">619,299</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Total unrecognized estimated compensation
expense related to non-vested stock options granted and outstanding as of July 31, 2012 was approximately $2.25 million which is
expected to be recognized over a weighted-average period of approximately 2.0 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">No options were exercised over the three
and nine month periods ended July 31, 2012. For the nine month period ended July 31, 2012, the Company granted 17,740,000
options at an exercise price of approximately $0.15. The Company utilized the following assumptions in the Black-Scholes valuation
model to arrive at a fair value of $0.1448 per option granted during the three and nine months ended July 31, 2012:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%; text-align: left; vertical-align: top">Exercise Price:</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">0.148</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; vertical-align: top">Stock Price:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.148</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; vertical-align: bottom">Days to Maturity:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">3,650 days (10-year life for all<BR>
 options granted </TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; vertical-align: top">Risk-free Rate:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.10</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; vertical-align: top">Volatility:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">143</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A summary of changes
in the stock option plan for nine months ended July 31, 2012 is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Number&nbsp;of</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Weighted-Average</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Options</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Exercise&nbsp;Price</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Outstanding at October 31, 2011:</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">27,317,424</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">0.16</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Granted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,740,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.15</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Expired</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Outstanding at January 31, 2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45,057,424</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.16</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Cancelled</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">250,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.15</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Outstanding at April 30, 2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,807,424</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.16</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Outstanding at July 31, 2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,807,424</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.16</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Exercisable at July 31, 2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,560,653</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.16</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Not Exercisable at July 31, 2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,246,771</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.15</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>2011 Employee Stock Purchase Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our board of directors adopted the Advaxis,
Inc. 2011 Employee Stock Purchase Plan, which we refer to as the ESPP, on August 22, 2011, and our stockholders approved the ESPP
on September 27, 2011. The ESPP allows employees to purchase common stock of the Company at an 85% discount to the market price
on designated exercise dates. Employees were eligible to participate in the ESPP beginning December 30, 2011. 5,000,000 shares
of our common stock are reserved for issuance under the ESPP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During the three months ended July 31, 2012
approximately $8,535 was withheld from employees, on an after-tax basis, in order to purchase 122,819 shares of our common stock
in August 2012. During the nine months ended July 31, 2012, approximately $18,300 was withheld from employees, on an after-tax
basis, in order to purchase 15,862 shares of our common stock in February 2012, another 68,397 shares of our common stock in May
2012 and another 122,819 shares of our common stock in August 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.75in">Subsequent to July 31, at our annual meeting held on August
13, 2012, shareholders ratified &amp; approved an amendment to our 2011 Omnibus Incentive Plan to increase the aggregate number
of shares of common stock authorized for issuance under such plan by 45,000,000 shares.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>11. COMMITMENTS AND CONTINGENCIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>University of Pennsylvania</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 10, 2010, we
entered into a second amendment to the Penn license agreement pursuant to which we acquired exclusive licenses for an additional
27 patent applications related to our proprietary <I>Listeria</I> vaccine technology.&nbsp; &nbsp;As part of this amendment we
exercised our option for the rights to seven additional patent dockets, including 23 additional patent applications, at an option
exercise fee payable in the form of $35,000 in cash and $70,000 in our common stock (approximately 388,889 shares of our common
stock based on a price of $0.18 per share) and agreed to pay historical patent costs incurred by the University of Pennsylvania.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On December 12, 2011,
we entered into a third amendment to the Penn license agreement pursuant to which we acquired an exclusive worldwide license agreement
for additional patent applications from the laboratory of Dr. Yvonne Paterson at an option exercise fee of $20,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of July 31, 2012,
the Company owed approximately $507,000 to Penn under all licensing agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Numoda</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On June 19, 2009 we entered into a Master
Agreement and on July 8, 2009 we entered into a Project Agreement with Numoda, a leading clinical trial and logistics management
company, to oversee Phase II clinical activity with ADXS11-001 for the treatment of invasive cervical cancer and CIN.&nbsp; Numoda
will be responsible globally for integrating oversight and logistical functions with the clinical research organizations, contract
laboratories, academic laboratories and statistical groups involved.&nbsp; The scope of this agreement covers over three years
and is estimated to cost approximately $12.2 million for both trials. Per the agreement, the Company is permitted to pay a portion
of outstanding charges to Numoda in the form of the Company&rsquo;s common stock and during May 2010, the Company issued 3,500,000
shares of its common stock to an affiliate of Numoda in satisfaction of $350,000 in services rendered by Numoda to the Company
under the Master Agreement. The Company has recorded a deferred expense on the balance sheet for this amount and amortizes this
amount to expense over the life of the agreement. As the Company is billed by Numoda on a monthly basis, these costs are capitalized
to deferred expenses. As the clinical trials progress in terms of patient enrollment and time, the Company reduces the deferred
expense balance and recognizes clinical trials expense on the statement of operations. From inception through July 31, 2012, the
Company has paid Numoda approximately $7.4 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt"><I>Numoda -Stock Purchase Agreement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">On June 13, 2012, we entered into
a stock purchase agreement with Numoda Corporation pursuant to which we issued to Numoda 15 million shares of our common stock,
which we refer to as the AR Cancellation Shares, at a purchase price per share of $0.15, in exchange for the immediate cancellation
of $2,250,000 of accounts receivables owed by us to Numoda pursuant to the Master Agreement, dated June 19, 2009, between Numoda
and us.. In connection with such issuance, we have also agreed to register the resale by Numoda of the AR Cancellation Shares with
the SEC . The Company recorded noncash income of approximately $869,000 as a result of this stock purchase agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt"><I>Numoda- Socius Stock Issuance</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">On July 24, 2012, the
Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida entered an Order Approving Stipulation for
Settlement of Claim, which we refer to as the Order, in the matter titled Socius CG II, Ltd. v. Advaxis, Inc. The Order,
together with the Stipulation for Settlement Claim, which we refer to as the Stipulation, provide for the full and final
settlement of Socius&rsquo;s $2,888,860 claim against the Company ($1.8 million claim from Numoda plus approximately $1 million in
transaction related costs) in connection with past due invoices relating to clinical trial services, which we refer to as the
Claim. Socius purchased approximately $1.8 million of the Claim against us from Numoda Corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">Pursuant to the terms of the Order
and the Stipulation, we issued and delivered to Socius an aggregate of 11,111,000 shares of our common stock for one-half of the
Claim, which are subject to adjustment as described in the Stipulation. The Company recorded noncash income of approximately $444,000
related to the issuance of stock to Socius in settlement of one-half of the Claim.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of July 31, 2012, the Company owed Numoda
approximately $1.7 million, which is recorded in our Accounts Payable at the balance sheet date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Office &amp; Laboratory Lease </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In April 2011, the Company entered into
a Sublease Agreement and relocated the current offices and laboratory to a 9,143 square foot leased facility in Princeton, NJ approximately
12 miles south of its former location.&nbsp; The agreement is for a period of approximately twenty months at the rate of approximately
$15,600 per month plus utilities. Utility costs are estimated to be $7,200 per month and are capped at approximately $10,700 per
month. Under the current lease, the Company expects to spend approximately $288,000 for the fiscal year ended October 31, 2012.&nbsp;
As an inducement to enter into the agreement, the company will receive rent abatement for a specified number of months through
July 31, 2011. The agreement has a termination date of November 29, 2012 and the Company is in discussions with building owner
for lease terms beyond this date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a result of the rent abatement period,
the Company recorded differences between actual rent payments and straight-line rent expense to a deferred liability account.&nbsp;&nbsp;As
of July 31, 2012, this amount was approximately $19,200.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Other</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;Pursuant to a Clinical Research Service Agreement, the
Company is obligated to pay Pharm&ndash;Olam International for service fees related to our Phase I clinical trial. As of July 31,
2012, the Company has an outstanding balance of $223,620 on this agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>12. SHAREHOLDERS&rsquo; EQUITY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Series B Preferred Stock Financing</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On April 4, 2011, the&nbsp;Company and Optimus&nbsp;entered
into an amendment to the Preferred Stock Purchase Agreement dated July 19, 2010&nbsp;&nbsp;between the Company and Optimus.&nbsp;
Under the amendment Optimus&nbsp;remains obligated, from time to time until July 19, 2013, to purchase up to an additional 284
shares of non-convertible, redeemable Series B Preferred Stock, $0.001 par value per share (the &ldquo; <U>Series B Preferred Stock</U>
&rdquo;) at a purchase price of $10,000 per share upon notice from the Company to the Investor, subject to the satisfaction of
certain conditions set forth in the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During December 2011, the Company unreserved
for issuance shares related to the Optimus warrants. If exercisable, exercise price means an amount per warrant share equal to
the closing sale price of a share of common stock on the applicable tranche notice date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the three and nine months ended July
31, 2012, the Company did not issue and sell any shares of non-convertible, redeemable Series B Preferred Stock to Optimus pursuant
to the terms of a Preferred Stock Purchase.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of July 31, 2012, the Company continued
to have 284 shares of its Series B Preferred Stock available for sale to Optimus at a gross purchase price of $10,000 per share
in addition to 25,560,000 warrants remaining outstanding. These warrants may vest and become exercisable only if the Company delivers
a tranche notice. During December 2011, the Company unreserved common shares related to these warrants.&nbsp; In addition, under
the terms of each of the May, October and December 2011 Notes, the Company may issue Optimus securities only to the extent the
net proceeds of such issuance are used to repay May, October and December 2011 Noteholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Warrants</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the nine months ending July 31, 2012, investors in the Company exercised 2,745,097 warrants at a price of $0.15 per share, resulting
in total proceeds to the Company of approximately $412,000.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>2011 Warrant Exchange</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, in an
effort to reduce the number of the warrants outstanding from the October 17, 2007 private placement by the Company, the Company
has entered into exchange agreements with certain of the holders of such warrants pursuant to which such holders received shares
of the Company&rsquo;s common stock, par value $0.001 per share (the &ldquo;<U>Common Stock</U>&rdquo;), and/or warrants to purchase
shares of Common Stock in amounts that were determined in such negotiations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For the three months
ended January 31, 2012, the Company exchanged October 2007 warrants to purchase 4,791,337 shares of Common Stock for new warrants
to purchase 6,388,449 shares of Common Stock. The new warrants issued pursuant to the exchanges are identical to the October 2007
warrants, except that such warrants do not contain any economic anti-dilution adjustment. The Company recorded noncash expense
of approximately $25,000 to the changes in fair value account resulting from this exchange for the three months ended January 31,
2012. Subsequently, in the three months ended April 30, 2012, the Company exchanged these new warrants, in the amount of 6,388,449
for shares of our common stock in the amount of 1,597,112. The Company recorded noncash income of approximately $54,000 due to
the changes in fair value at the date of exchange and a noncash expense of approximately $89,000 resulting from this exchange of
warrants for shares of our common stock during the six month period ended April 30, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of July 31,
2012, the Company had approximately 47  million warrants subject to anti-dilution provisions. Therefore, any future financial
offering or instrument issuance below $0.15 per share of the Company&rsquo;s common stock or warrants will cause further
anti-dilution and/or repricing provisions in these 47  million warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt"><I>July 2012 Warrant Exchange</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: 0.5in">On June 8, 2012, Thomas A. Moore,
our Chief Executive Officer, waived our obligation to keep reserved from our authorized and available shares of common stock, such
number of shares of our common stock necessary to effect the exercise or conversion, as applicable, in full, of (i) warrants to
purchase an aggregate of 11,064,611 shares of our common stock and (ii) promissory notes convertible into 800,000 shares of our
common stock. This waiver expired on August 16, 2012, the date that we filed an amendment to our certificate of incorporation with
the Secretary of State of the State of Delaware to effect an increase to our authorized shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On July 5, 2012, in
consideration for the waiver described above, we entered into an exchange agreement with Mr. Moore, with an effective date of June
8, 2012, pursuant to which Mr. Moore surrendered warrants to purchase an aggregate of approximately 11,064,611 shares of our common
stock to us in exchange for receiving warrants to purchase an aggregate of approximately 11,064,611 shares of our common stock
that were not exercisable and for which no shares of our common stock were reserved until we filed an amendment to our certificate
of incorporation with the Secretary of State of the State of Delaware to effect an increase to our authorized shares of common
stock. Mr. Moore also agreed pursuant to the exchange agreement not to convert the promissory notes convertible into 800,000 shares
of our common stock until the Company filed on amendment to its certificate of incorporation with the Secretary of State of the
State of Delaware to effect an increase to its authorized shares of common stock. In addition, the warrants to be issued in the
exchange have an extended expiration date of two years following issuance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In July 2012, we entered
into exchange agreements with certain additional holders of an additional 23,726,545 warrants to purchase shares of our common
stock. Similar to Mr. Moore, these holders have surrendered warrants to purchase an aggregate of approximately 23,726,545 shares
of our common stock to us in exchange for receiving warrants to purchase the same aggregate amount of our common stock .These warrant
shares were not exercisable and no shares of our common stock were reserved until we filed an amendment to our certificate of incorporation
with the Secretary of State of the State of Delaware to effect an increase to our authorized shares of common stock. In addition,
warrants to be issued in the exchange have an extended expiration date of two years following issuance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company recorded
noncash income of approximately $408,000 as a result of these exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has included
the above exchanged warrants, aggregating to 34,791,156, in its total warrants of 114,738,770 as of July 31, 2012 . These new warrants
are expected to be issued during 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of July 31, 2012, there were
outstanding warrants to purchase 79,947,614 shares of our common stock and exchange warrants - nonexercisable to purchase
34,791,156 shares of our common stock with exercise prices ranging from $0.15 to $0.17 per share. Information on the
outstanding warrants is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center">Type</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Exercise <BR>Price</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Amount</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">Expiration Date</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">Type of Financing</TD>
    <TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; width: 30%">Common Stock Purchase Warrant (2)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.15</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">50,660,663</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 15%">October 2012</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 28%; text-align: right">2007&nbsp;&nbsp;Securities Purchase Agreement</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Common Stock Purchase Warrant</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.15</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,578,949</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">May 2014</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">May 2011Convertible Debt Financing</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Common Stock Purchase Warrant</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.15</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,453,553</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">October 2014</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">October 2011 Convertible Debt Financing</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Common Stock Purchase Warrant</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.15</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,213,234</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">January 2015</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">December 2011 Convertible Debt Financing</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Common Stock Purchase Warrant</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.15</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,777,777</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">May 2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">May 2012 Convertible Debt Financing</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Common Stock Purchase Warrant</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"> 0.15-$0.17</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,712,208</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">January 2013 &ndash; April 2015</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">Bridge Notes</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Common Stock Purchase Warrant</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.15</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,956</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">N/A</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">Vendor &amp; Other</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Common Stock Purchase Warrant</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.15</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,735,430</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">May 2014 - November 2015</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">Placement Agent &ndash; Convertible Debt Financing</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Exchange warrants &ndash; nonexercisable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,791,156</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;July 2012 Warrant Exchanges</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Common Stock Purchase Warrant</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">TBD (1)</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">25,560,000</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 1pt">April 2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 1pt">Optimus Preferred Stock Agreement (04/04/2011)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt"></TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD NOWRAP STYLE="text-align: center"><B>Grand Total</B></TD><TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">114,738,770</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 21.75pt">(1)</TD><TD>During December 2011, the Company unreserved for issuance shares related to the Optimus warrants. If exercisable, exercise
price means an amount per warrant share equal to the closing sale price of a share of common stock on the applicable tranche notice
date.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At July 31, 2012, the
Company had approximately 15.1 million of its total 114.7 million outstanding warrants classified as equity (equity warrants). At
issuance, equity warrants are recorded at their relative fair values, using the Relative Fair Value Method, in the stockholders
equity section of the balance sheet. Our equity warrants can only be settled through the issuance of shares and are not subject
to anti-dilution provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>13.&nbsp; &nbsp;&nbsp;FAIR VALUE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The authoritative guidance for fair value
measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit
price) in the principal or the most advantageous market for the asset or liability in an orderly transaction between market participants
on the measurement date. Market participants are buyers and sellers in the principal market that are (i) independent, (ii)knowledgeable,
(iii) able to transact, and (iv) willing to transact. The guidance describes a fair value hierarchy based on the levels of inputs,
of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the
following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
&nbsp; Level 1 &mdash; Quoted prices in active markets for identical assets or liabilities</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
&nbsp; Level 2&mdash; Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar
assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable
market data or substantially the full term of the assets or liabilities</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
&nbsp; Level 3 &mdash; Unobservable inputs that are supported by little or no market activity and that are significant to the value
of the assets or liabilities</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table provides the liabilities carried at fair
value measured on a recurring basis as of July 31, 2012:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">July 31, 2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Level&nbsp;1</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Level&nbsp;2</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Level&nbsp;3</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Total</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 52%; text-align: left">Common stock warrant liability, warrants exercisable at $0.15 - $0.17 from October 2012 through November 2015</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,265,985</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,265,985</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Embedded derivative liability, convertible at $0.15 from May 2012 through January 2013</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,136</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,136</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>May 2012 Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">472,840</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">472,870</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table summarizes the changes in fair value of
the Company's Level 3 financial instruments for the three and nine months ended July 31, 2012 and July 31, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Embedded derivative liability</U></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">July 31,<BR> 2012</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">July 31,<BR> 2011</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%; text-align: left">Beginning balance at October 31, 2011 and 2010</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">946,046</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">81,028</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Issuance of embedded derivatives associated with convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">306,568</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,569</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Note Conversions and Payoffs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(670,755</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9pt">Change in fair value</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">159,657</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(51,972</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Balance at January 31, 2012 and 2011</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">741,496</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">229,625</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Issuance of embedded derivatives associated with convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">697,736</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt">Note Conversions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(165,693</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Note Payoffs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,904</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9pt">Change in fair value</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(438,054</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">918,870</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Balance at April 30, 2012 and 2011</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><B>$</B></TD><TD STYLE="text-align: right"><B>137,749</B></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><B>$</B></TD><TD STYLE="text-align: right"><B>1,840,327</B></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt">Issuance of embedded derivatives associated with convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,719,345</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Debt for Equity Exchanges: May, October and December 2011 Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(115,046</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt">Note Conversions and Payoffs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(739,787</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Reclassification of JMJ Note</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(516,571</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9pt">Change in fair value</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(20,567</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,216,715</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt; padding-bottom: 2.5pt">Balance at July 31, 2012 and 2011</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 2.5pt double">2,136</TD><TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 2.5pt double">1,086,599</TD><TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Common stock warrant liability:</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">July 31,<BR> 2012</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">July 31,<BR> 2011</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%; text-align: left">Beginning balance at October 31, 2011 and 2010</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">6,391,071</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">13,006,194</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Issuance of common stock warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">600,407</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Exercises and Exchanges of warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">59,572</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,295,884</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Change in fair value</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(923,052</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(3,789,889</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">Balance at January 31, 2012 and 2011</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>5,527,591</B></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>8,520,828</B></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Issuance of common stock warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,111,758</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Exercises of warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(639,960</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Exchanges of warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(134,796</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Change in fair value</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(2,302,707</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">4,915,676</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">Balance at April 30, 2012 and 2011</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><B>$</B></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><B>3,090,088</B></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><B>$</B></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><B>15,908,302</B></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Issuance of common stock warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">291,400</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,376</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Reclassification of liabilities to equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">613,003</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Debt for Equity Exchange:&nbsp; Bridge Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,750</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>July Warrant Exchanges</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(407,501</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Exercises and/or Exchanges of warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,714,266</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Change in fair value</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,703,252</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(6,906,747</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Balance at July 31, 2012 and 2011</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,265,985</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">7,936,668</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 87%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt"><B><U>May 2012 Notes</U></B></TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt; text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><B>July 31, 2012</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 86%; font-size: 10pt">Issuance of notes</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">687,000</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">Issuance of C/S warrants</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(291,400</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Changes in fair value</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">77,270</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">472,870</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In fair valuing the embedded derivative liability, at July 31, 2012 and July 31, 2011, the Company used the following inputs:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">in its BSM Model:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">7/31/2012</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">7/31/2011</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 72%; font-size: 10pt">Exercise Price:</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">0.15</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">0.15</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Stock Price</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.073</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.1485</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Expected term:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">92-162 days</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">92-286 days</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Volatility %</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">79.53%-86%</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">54.73%-78.46%</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Risk Free Rate:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">.11%-.15%</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">.10-.18%</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In fair valuing the warrant liability, at July 31, 2012 and July 31, 2011, the Company used the following inputs:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">in its BSM Model:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt; padding-left: 0; padding-right: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">7/31/2012</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">7/31/2011</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-left: 0; padding-right: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; padding-left: 0; padding-right: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 72%; font-size: 10pt; padding-left: 0; padding-right: 0">Exercise Price:</TD><TD STYLE="width: 2%; font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">0.15</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">0.15</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; padding-left: 0; padding-right: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-left: 0; padding-right: 0">Stock Price</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">0.073</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">0.1485</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; padding-left: 0; padding-right: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0; padding-right: 0">Expected term:</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">15-1752 days</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">185-1825 days</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; padding-left: 0; padding-right: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-left: 0; padding-right: 0">Volatility %</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">65.59%-91.95%</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">65.68%-174.18%</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; padding-left: 0; padding-right: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0; padding-right: 0">Risk Free Rate:</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">.07%-.27%</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding-right: 0; padding-left: 0">.10-.18%</TD><TD STYLE="font-size: 10pt; text-align: left; padding-right: 0; padding-left: 0">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For those warrants with exercise price reset features (anti-dilution
provisions), the Company computes multiple valuations, each quarter, using an adjusted BSM model, to account for the various possibilities
that could occur due to changes in the inputs to the BSM model as a result of contractually-obligated changes (for example, changes
in strike price to account for down-round provisions). As of July 31, 2012, the Company utilized different exercise prices of $0.15
and $0.10, weighting the possibility of warrants being exercised at $0.15 between 50% and 70% and warrants being exercised at $0.10
between 50% and 30%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In fair valuing the embedded conversion feature related to
the May 2012 Notes, at July 31, 2012, the Company used the following inputs in its BSM Model:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 86%; font-size: 10pt">Exercise Price:</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">0.15</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">Stock Price</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.073</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left">Expected term:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">291 days</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">Volatility %</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">71.25</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left">Risk Free Rate:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.15</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>14. SUBSEQUENT EVENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Accredited Investor Note</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 2, 2012, we issued a one year
convertible promissory note to an accredited investor in the principal amount of $66,667 . for a purchase price of $50,000. The
Note was issued with an original issue discount of 25%. The investor paid $0.75 for each $1.00 of principal amount of the Note
purchased. The Note is convertible into shares of our common stock, at a per share conversion price equal to $0.15, with a reset
provision on December 1, 2012. We may redeem or exchange the Note under certain circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>August 2012 Note- JMJ Financial</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 27, 2012, we issued a convertible
promissory note in the aggregate principal amount of $100,000 to JMJ Financial, for an aggregate purchase price of $100,000. There
are no periodic payments of interest on the August 2012 Note. The August 2012 Note is initially convertible at a per share conversion
price equal to $0.15. In addition, if the August 2012 Note is converted after November 30, 2012 and the market price of our common
stock is less than $0.16 per share on the date of conversion, then the conversion price shall equal 95% of the average of the three
lowest closing prices in the 15 trading days prior to the date of the conversion. The August 2012 Note matures on August 29, 2013.
To the extent JMJ Financial does not elect to convert the August 2012 Note as described above, the principal amount of the August
2012 Note not so converted on or prior to the maturity date shall be payable in cash on the maturity date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The August 2012 Note may be converted by
JMJ Financial, at its option, in whole or in part. The August 2012 Note includes a limitation on conversion, which provides that
at no time will JMJ Financial be entitled to convert any portion of the August 2012 Note, to the extent that after such conversion,
JMJ Financial (together with its affiliates) would beneficially own more than 4.99% of the outstanding shares of our common stock
as of such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the terms of the August 2012
Note, we agreed to register up to 3,250,000 shares of our common stock which may be issuable upon conversion of the August 2012
Note with the Securities and Exchange Commission.. These shares were registered on August 31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>JMJ August 2012 Settlement Agreement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 27, 2012, we entered into a settlement
agreement with JMJ Financial pursuant to which we issued to JMJ Financial 4,076,923 shares of our common stock for the mutual release
of any claims held by our company or JMJ Financial relating to our failure to file the registration statement related to the May
2012 issuance of 4,000,000 shares of our common stock to JMJ Financial and have the registration statement declared effective by
certain prescribed deadlines. A registration statement filed with the Securities and Exchange Commission on August 31, 2012 included
the above mentioned shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Additional Convertible Promissory Notes</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During September, 2012 we issued two convertible
promissory notes in the principal amounts of $100,000 and $132,500 to two accredited investors The notes bear interest at the rate
of 8 and 12% respectively and there are re are no periodic payments of interest on the notes. The notes are convertible at a per
share conversion price equal to between 69% and 65% respectively of the market price of our shares in a formula prescribed in the
notes.. The notes mature in 9.and 8 months respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Amendment to Certificate of Incorporation</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 16, 2012, we filed a certificate
of amendment to our amended and restated certificate of incorporation with the Delaware Secretary of State to increase the total
number of authorized shares of capital stock available for issuance from 505,000,000, consisting of 500,000,000 shares of our common
stock and 5,000,000 shares of &ldquo;blank check&rdquo; preferred stock, to 1,005,000,000, consisting of 1,000,000,000 shares of
our common stock and 5,000,000 shares of &ldquo;blank check&rdquo; preferred stock. The certificate of amendment became effective
upon filing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>15. <FONT STYLE="text-transform: uppercase">Prior Period
Adjustment </FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company has restated its July 31, 2012 Balance Sheet and
Statement of Operations for the nine months ended July 31, 2012 for the correction of an error made in the first and second fiscal
quarters of 2012. These non-cash errors relate to the interpretation and application of accounting standards in calculating its
loss on conversions of convertible notes with bifurcated embedded derivative liabilities. The correction of these errors amounting
to approximately an additional $819,000 Loss on note retirement, no material effect on Net Loss per share, and no effect on Shareholders&rsquo;
Deficiency. The Company plans to restate its Form 10-Q for periods ended January 31, 2012 and April 30, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PART II&nbsp;&nbsp;&nbsp;- INFORMATION
NOT REQUIRED IN PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 13.&nbsp;&nbsp;Other Expenses of Issuance and Distribution.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table sets forth the costs
and expenses other than underwriting discounts and commissions, if any, payable by the registrant relating to the sale of common
stock being registered.&nbsp;&nbsp;All amounts are estimates except the SEC registration fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 96%; font: 10pt Times New Roman,Times,Serif; margin-left: 0.2in">
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD STYLE="width: 83%">Printing and engraving expenses</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 14%; text-align: right">5,000</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Legal fees and expenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">30,000</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD>Accounting fees and expenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">5,000</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Transfer agent and registrar&rsquo;s fees and expenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,000</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCFFCC">
    <TD STYLE="padding-bottom: 1pt">Miscellaneous expense</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">750</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-bottom: 2.5pt">Total</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">41,750</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 14.&nbsp;&nbsp;Indemnification of Directors and Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Delaware General Corporation Law</I>.&nbsp;&nbsp;The
registrant is a Delaware corporation. Section 102(b)(7) of the Delaware General Corporation Law (the &ldquo;DGCL&rdquo;) enables
a corporation to eliminate or limit the personal liability of a director to the corporation or its stockholders for monetary damages
for breach of the director&rsquo;s fiduciary duty, except:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman,Times,Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 63pt">&nbsp;</TD>
    <TD STYLE="width: 13.5pt; font-family: Symbol">&middot;</TD>
    <TD>for any breach of the director&rsquo;s duty of loyalty to the corporation or its stockholders;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&middot;</TD>
    <TD>for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&middot;</TD>
    <TD>pursuant to Section 174 of the DGCL (providing for liability of directors for unlawful payment of dividends or unlawful
    stock purchases or redemptions); or</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&middot;</TD>
    <TD>for any transaction from which the director derived an improper personal benefit.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In accordance with Section 102(b)(7) of
the DGCL, the registrant&rsquo;s certificate of incorporation includes a provision eliminating, to the fullest extent permitted
by the DGCL, the liability of the registrant&rsquo;s directors to the registrant or its stockholders for monetary damages for
breach of fiduciary as director. If the DGCL is subsequently amended to further eliminate or limit the liability of a director,
then a director of the registrant, in addition to the circumstances in which a director is not personally liable as set forth
in provision described in the preceding sentence, will not be liable to the fullest extent permitted by the amended DGCL.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Subsection (a) of Section 145 of the DGCL
provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action
by or in the right of the corporation) by reason of the fact that he is or was a director, officer, employee or agent of the corporation,
or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, against expenses (including attorneys&rsquo; fees), judgments, fines and amounts paid
in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding if he acted in good faith
and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to
any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. Section 145 of the DGCL further
provides that a corporation similarly may indemnify any such person serving in any such capacity who was or is a party or is threatened
to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment
in its favor, against expenses (including attorneys&rsquo; fees) actually and reasonably incurred in connection with the defense
or settlement of such action or suit if he acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the corporation and except that no indemnification shall be made in respect of any claim, issue or matter
as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Delaware
Court of Chancery or such other court in which such action or suit was brought shall determine upon application that, despite
the adjudication of liability but in view of all of the circumstances of the case, such person is fairly and reasonably entitled
to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Certificate of Incorporation and Bylaws</I>.&nbsp;&nbsp;The
registrant&rsquo;s amended and restated certificate of incorporation contains provisions which provide that the registrant will
indemnify the registrant&rsquo;s directors and officers in each and every situation where, under Section 145 of the DGCL, as amended
from time to time, the registrant is permitted or empowered to make such indemnification, and to the fullest extent permitted
by law. The registrant may, in the sole discretion of its Board of Directors, indemnify any other person who may be indemnified
pursuant to Section 145 of the DGCL to the extent the Board of Directors deems advisable, as permitted by Section 145 of the DGCL.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The registrant&rsquo;s bylaws contain provisions
which provide, among other things, that the registrant shall indemnify any officer or director who was or is a party or is threatened
to be made a party to any threatened, pending or completed (i) action, suit or proceeding, whether civil, criminal, administrative
or investigative (other than an action by or in the right of the registrant) by reason of the fact that he is or was a director,
officer, employee or agent of the registrant, or is or was serving at the request of the registrant as a director, officer, employee
or agent of another registrant, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise,
against expenses (including attorneys&rsquo; fees), judgments, fines and amounts paid in settlement actually and reasonably incurred
by him in connection with such action, suit or proceeding if he acted in good faith and in a manner he reasonably believed to
be in or not opposed to the best interests of the registrant, and, with respect to any criminal action or proceeding, had no reasonable
cause to believe his conduct was unlawful and (ii) action or suit by or in the right of the registrant to procure a judgment in
its favor by reason of the fact that he is or was a director, officer, employee or agent of the registrant, or is or was serving
at the request of the registrant as a director, officer, employee or agent of another registrant, partnership, limited liability
company, joint venture, trust, employee benefit plan or other enterprise against expenses (including attorneys&rsquo; fees) actually
and reasonably incurred by him in connection with the defense or settlement of such action or suit if he acted in good faith and
in a manner he reasonably believed to be in or not opposed to the best interests of the registrant; except that no indemnification
shall be made in respect of any claim, issue or matters as to which such person shall have been adjudged to be liable to the registrant
unless and only to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine
upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is
fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.&nbsp;&nbsp;Any
indemnification under the provisions in the bylaws (unless ordered by a court) shall be made by the registrant only as authorized
in the specific case upon a determination that indemnification of the director, officer, employee or agent is proper in the circumstances
because he has met the applicable standard of conduct set forth above.&nbsp;&nbsp;Such determination shall be made (i) by a majority
vote of the directors who were not parties to such action, suit or proceeding even though less than a quorum, or (ii) if there
are no such directors, or, if such directors so direct, by independent legal counsel in a written opinion, or (iii) by the stockholders.
To the extent, however, that a director, officer, employee or agent of the registrant has been successful on the merits or otherwise
in defense of any action, suit or proceeding described above, or in defense of any claim, issue or matter therein, he shall be
indemnified against expenses (including attorneys&rsquo; fees) actually and reasonably incurred by him in connection therewith,
without the necessity of authorization in the specific case.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The DGCL provides that the indemnification
described above shall not be deemed exclusive of any other indemnification that may be granted by a corporation pursuant to its
by-laws, disinterested directors&rsquo; vote, stockholders&rsquo; vote, agreement or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Insurance Policies</I>.&nbsp;&nbsp;The
DGCL also provides corporations with the power to purchase and maintain insurance on behalf of any person who is or was a director,
officer, employee or agent of the corporation, or is or was serving at the request of the corporation in a similar capacity for
another corporation, partnership, joint venture, trust or other enterprise, against any liability asserted against him or her
in any such capacity, or arising out of his or her status as such, whether or not the corporation would have the power to indemnify
him or her against such liability as described above. The registrant has directors and officer&rsquo;s liability insurance in
an amount not less than $5 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors, officers, or persons controlling the registrant pursuant
to the foregoing provisions, the registrant has been informed that in the opinion of the Commission such indemnification is against
public policy as expressed in such Securities Act and is therefore unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 15.&nbsp;&nbsp;Recent Sales of Unregistered Securities.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During the last three years, the registrant
has issued unregistered securities to the persons, as described below.&nbsp;&nbsp;None of these transactions involved any underwriters,
underwriting discounts or commissions, except as specified below, or any public offering, and the registrant believes that, except
as set forth below, each transaction was exempt from the registration requirements of the Securities Act of 1933 by virtue of
Section 4(2) thereof and/or Regulation D promulgated thereunder.&nbsp;&nbsp;All recipients had adequate access, though their relationships
with the registrant, to information about the registrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On June 18, 2009, the registrant completed
a private placement with certain accredited investors pursuant to which it issued (i) senior convertible promissory notes in the
aggregate principal face amount of $1,131,353, for an aggregate net purchase price of $961,650 and (ii) senior bridge warrants
to purchase 2,404,125 shares of its common stock at an exercise price of $0.20 per share (subject to adjustment upon the occurrence
of certain events).&nbsp;&nbsp;In consideration for the agreement of the holders of the senior bridge notes to extend the maturity
date of such notes to periods into February and March 2010, the registrant issued warrants to purchase an additional 1,228,441
shares of common stock. In addition, as a result of the anti-dilution protection provisions in the senior bridge warrants, the
registrant reduced the exercise price of the senior bridge warrants to $0.17 per share and issued warrants to purchase an additional
641,039 shares of common stock at an exercise price of $0.17 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 21, 2009, the registrant issued
options to certain of its officers, directors and employees to purchase up to an aggregate of 10,150,000 shares of common stock
pursuant to the registrant&rsquo;s 2009 Stock Option Plan.&nbsp;&nbsp;The exercise price per share was $0.10.&nbsp;&nbsp;No consideration
was paid to the registrant by the recipient of the foregoing options for the grant of stock options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 24, 2009, the registrant entered
into a preferred stock purchase agreement (the &ldquo;Optimus purchase agreement&rdquo;) with Optimus Capital Partners, LLC (&ldquo;Optimus&rdquo;),
pursuant to which Optimus committed to purchase up to $5.0 million shares of the Series A preferred stock at a price of $10,000
per share of Series A preferred stock, subject to satisfaction of certain closing conditions.&nbsp;&nbsp;At the time of execution
of the Optimus purchase agreement, the registrant issued to an affiliate of Optimus a three-year warrant to purchase up to 33,750,000
shares of the registrant&rsquo;s common stock, at an initial exercise price of $0.20 per share, subject to adjustment as provided
in the warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On January 5, 2010, the registrant issued
options to one of its executive officers to purchase up to 1,000,000 shares of common stock pursuant to the registrant&rsquo;s
2009 Stock Option Plan.&nbsp;&nbsp;The exercise price per share was $0.10.&nbsp;&nbsp;No consideration was paid to the registrant
by the recipient of the foregoing options for the grant of stock options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On January 11, 2010, the registrant issued
and sold 145 shares of Series A preferred stock to Optimus for an aggregate purchase price of $1.45 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On March 29, 2010, the registrant issued
and sold 200 shares of Series A preferred stock to Optimus pursuant to the terms of the Optimus purchase agreement. On April 1,
2010, the registrant issued and sold an additional 16 shares of Series A preferred stock to Optimus pursuant to the terms of the
Optimus purchase agreement. The aggregate purchase price for the 216 shares of Series A preferred stock was $2.16 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On April 29, 2010, the registrant agreed
with its Chief Executive Officer, Thomas A. Moore, to make a payment of $200,000 due to Mr. Moore under certain of the registrant&rsquo;s
senior promissory notes held by Mr. Moore in the form of 1,176,471 shares of the registrant&rsquo;s common stock based on a price
of $0.17 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of April 30, 2010, the registrant agreed
with certain of the holders of its junior unsecured convertible promissory notes to make payments of approximately $2.42 million
aggregate principal amount due to such holders under certain of such notes in the form of 14,237,489 shares of its common stock
based on a price of $0.17 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 10, 2010, the registrant entered
into a Stock Purchase Agreement with Numoda Capital Innovations, LLC (&ldquo;Numoda&rdquo;) pursuant to which the registrant agreed
to issue 3,500,000 shares of its common stock to Numoda, at a price per share of $0.17, in satisfaction of $595,000 of services
rendered to the registrant by Numoda Corporation.&nbsp;&nbsp;The registrant has agreed to register such shares of common stock
within 120 days of May 10, 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 10, 2010, the registrant and the
University of Pennsylvania (&ldquo;Penn&rdquo;) entered into a Second Amendment Agreement to their 20-year exclusive worldwide
license agreement. As part of this amendment the registrant exercised its option for the rights to seven additional patent dockets
at an option exercise fee payable in the form of $35,000 in cash and $70,000 in shares of common stock (approximately 388,889
shares of our common stock based on a price of $0.18 per share).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 13, 2010, the registrant issued
and sold 139 shares of Series A preferred stock to Optimus pursuant to the terms of the Optimus purchase agreement.&nbsp;&nbsp;The
aggregate purchase price for the shares of Series A preferred stock was $1.39 million.&nbsp;&nbsp;In connection with such issuance,
the registrant issued an additional three-year warrant to an affiliate of Optimus to purchase up to 2,818,000 shares of common
stock at an exercise price of $0.18 per share, subject to customary anti-dilution adjustments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of April 30, 2010, the registrant issued
in private placements to certain accredited investors (i) junior bridge notes in the aggregate principal face amount of $3,343,249,
for an aggregate net purchase price of $2,840,000 and (ii) junior bridge warrants to purchase 5,743,750 shares of our common stock
at an exercise price of $0.20 per share (prior to giving effect to anti-dilution adjustments which have subsequently reduced the
exercise price to $0.17 per share), subject to adjustments upon the occurrence of certain events.&nbsp;&nbsp;&nbsp;As a result
of the anti-dilution protection provisions in the junior bridge warrant, the registrant reduced the exercise price of the junior
bridge warrants to $0.17 per share (subject to further adjustment upon the occurrence of certain events) and issued warrants to
purchase an additional 1,013,603 shares of common stock at an exercise price of $0.17 per share (subject to adjustment upon the
occurrence of certain events).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On June 29, 2010, the registrant issued
750,000 shares of its common stock to its chief executive officer in satisfaction of certain conditions set forth in his employment
agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 19, 2010, the registrant entered
into a preferred stock purchase agreement with Optimus, pursuant to which Optimus committed to purchase up to $7.5 million shares
of the Series B preferred stock at a price of $10,000 per share of Series B preferred stock, subject to satisfaction of certain
closing conditions, of which $2.84 million of Series B preferred stock remains available for purchase.&nbsp;&nbsp;At the time
of the satisfaction of the conditions necessary to effect the commitment closing under the preferred stock purchase agreement,
the registrant issued to an affiliate of Optimus a three-year warrant to purchase up to 40,500,000 shares of the registrant&rsquo;s
common stock, at an initial exercise price of $0.25 per share, subject to adjustment as provided in the warrant. The warrant will
become exercisable on the earlier of (i) the date on which this registration statement becomes effective and (ii) the first date
on which the shares of common stock underlying the warrant are eligible for resale without limitation under Rule 144 (assuming
a cashless exercise of the warrant).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 19, 2010, the registrant issued
500 shares of Series B preferred stock to Optimus in exchange for 500 shares of Series A preferred stock.&nbsp;&nbsp;Such transaction
was exempt from the registration requirements of the Securities Act of 1933 by virtue of Section 3(a)(9) thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 13, 2010, the registrant issued
and sold 124 shares of Series B preferred stock to Optimus for an aggregate purchase price of $1.24 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 28, 2010, the registrant issued
and sold 165 shares of Series B preferred stock to Optimus for an aggregate purchase price of $1.65 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On October 14, 2010, the registrant issued
options to certain of its officers, directors and employees to purchase up to an aggregate of 6,750,000 shares of common stock
pursuant to the registrant&rsquo;s 2009 Stock Option Plan. The exercise price per share was $0.15. No consideration was paid to
the registrant by the recipient of the foregoing options for the grant of stock options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In November 2010, the registrant issued
in private placements to certain accredited investors convertible promissory notes of the Company in the aggregate principal face
amount of $931,579, for an aggregate net purchase price of $835,000.&nbsp;&nbsp;In connection with the purchase of these notes,
the registrant issued to such investors warrants to purchase an aggregate of 3,087,500 shares of its common stock, each at an
exercise price of $0.17 per share, subject to adjustments upon the occurrence of certain events.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On November 15, 2010, the registrant issued
and sold 61 shares of Series B preferred stock to Optimus for an aggregate purchase price of $610,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On December 30, 2010, the registrant issued
and sold 72 shares of Series B preferred stock to Optimus for an aggregate purchase price of $720,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;In January and February 2011, the
registrant issued in private placements to certain accredited investors, (i) junior unsecured convertible promissory notes in
the aggregate principal face amount of $452,941, for an aggregate net purchase price of $395,000 and (ii) warrants to purchase
an aggregate of 1,642,500 shares of its common stock, each at an exercise price of $0.15 per share, subject to adjustments upon
the occurrence of certain events.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">From February 1, 2011 through March 15,
2011, the registrant issued in private placements to certain accredited investors (i) junior unsecured convertible promissory
notes in the aggregate principal face amount of $246,000, for an aggregate net purchase price of $225,000 and (ii) warrants to
purchase 487,500 shares of our common stock at an exercise price of $0.17 per share, subject to adjustments upon the occurrence
of certain events.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On March 14, 2011, the registrant issued
and sold 44 shares of Series B preferred stock to Optimus for an aggregate purchase price of $440,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On April 28, 2011, the registrant issued
and sold to JMJ Financial, an accredited investor, an aggregate of $1,300,000 of its convertible promissory notes in return for
the payment in cash of $580,000 and a secured and collateralized promissory note issued by JMJ Financial to the registrant in
the principal amount of $800,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 12, 2011, the registrant issued
in a private placement to certain accredited investors (i) convertible promissory notes in the aggregate principal face amount
of $7,077,936, for an aggregate purchase price of $6,016,250 and (ii) warrants to purchase an aggregate of 23,593,122 shares of
its common stock, each at an exercise price of $0.15 per share.&nbsp;&nbsp;Also on May 12, 2011, the registrant issued warrants
to purchase an aggregate of 1,887,448 shares of its common stock to Rodman &amp; Renshaw, LLC as partial compensation for its
services in connection with the offering to the investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">From June 2011 through November 2011, the
registrant has entered into exchange agreements with certain of the holders of the warrants outstanding from its October 17, 2007
private placement , including its Chief Executive Officer, Thomas A. Moore, pursuant to which such holders received shares of
the registrant&rsquo;s common stock and/or warrants to purchase shares of the registrant&rsquo;s common stock in amounts that
were determined in such negotiations. As of November 5, 2012, the registrant has exchanged October 2007 warrants to purchase
39,690,911 shares of its common stock in return for 7,437,857 shares of its common stock and new warrants to purchase 21,040,303
shares of its common stock. The new warrants issued pursuant to the exchanges are substantially identical to the October 2007
warrants, except that such warrants do not contain any economic anti-dilution adjustment rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On October 31, 2011, the registrant issued
in a private placement to certain accredited investors (i) convertible promissory notes in the aggregate principal face amount
of $2,326,471, for an aggregate purchase price of $1,977,500 and (ii) warrants to purchase an aggregate of 8,620,977 shares of
its common stock, each at an exercise price of $0.15 per share.&nbsp;&nbsp;The convertible promissory notes purchased in this
offering were paid for in cash or, with respect to the convertible promissory notes acquired by Thomas A. Moore, the registrant&rsquo;s
Chairman and Chief Executive Officer, in exchange for the cancellation of $400,000.00 of outstanding indebtedness owed by the
registrant. Also on October 31, 2011, the registrant issued warrants to purchase an aggregate of 866,078 shares of its common
stock to Rodman &amp; Renshaw, LLC as partial compensation for its services in connection with the offering to the investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On January 9, 2012, the registrant issued
in a private placement to certain accredited investors (i) convertible promissory notes in the aggregate principal face amount
of $ $1,232,353, for an aggregate purchase price of $1,047,500 and (ii) warrants to purchase an aggregate of 4,107,842 shares
of its common stock, each at an exercise price of $0.15 per share.&nbsp;&nbsp;Also on January 9, 2012, the registrant issued warrants
to purchase an aggregate of 575,098 shares of its common stock to Rodman &amp; Renshaw, LLC as partial compensation for its services
in connection with the offering to the investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 8, 2012, the registrant entered
into a settlement agreement with JMJ Financial, pursuant to which the registrant agreed to issue <FONT STYLE="color: black">4,000,000
newly issued</FONT> <FONT STYLE="color: black">shares of its common stock to JMJ Financial as consideration for the cancellation
of certain notes and a release.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Effective May 14, 2012, the registrant
entered into exchange agreements with certain holders of an aggregate of approximately $4.5 million of outstanding principal amount
of convertible promissory notes, which we refer to as the existing notes, originally issued either on May 12, 2011, October 31,
2011 or January 9, 2012, pursuant to which such holders received (i) an aggregate of approximately 52.2 million shares of registrant&rsquo;s
common stock, and (ii) warrants to purchase an aggregate of approximately 5.8 million shares of registrant&rsquo;s common stock
in exchange for (i) surrendering or converting the existing notes and surrendering warrants to purchase an aggregate of approximately
31.3 million shares of the registrant&rsquo;s common stock originally issued in the prior offerings, and (ii) amending the note
purchase agreements between the Company and the holders of the existing notes, dated as of May 9, 2011, October 28, 2011 or December
29, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.75in">On May 18, 2012, the registrant
issued in a private placement to certain accredited investors (i) convertible promissory notes in the aggregate principal
face amount of $953,333, for an aggregate purchase price of $715,000 at a conversion price of $0.03146 per share as of
November 5, 2012 and (ii) warrants to purchase an aggregate of 3,533,333 shares of its common stock at an exercise price of
$0.15 per share. The convertible promissory notes purchased in this offering were paid for in cash. Also on May 18, 2012, the
registrant issued warrants to purchase an aggregate of 231,112 shares of its common stock to Rodman &amp; Renshaw, LLC and
124.444 were issued to certain employees of Rodman &amp; Renshaw, LLC as partial compensation for its services in
connection with the offering to the investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On June 13, 2012, the registrant entered
into a stock purchase agreement with Numoda Corporation (&ldquo;Numoda&rdquo;), pursuant to which the registrant agreed to issue
to Numoda 15 million shares of its common stock at a purchase price per share of $0.15, in exchange for the immediate cancellation
of $2,250,000 of accounts receivables owed by the registrant to Numoda pursuant to the Master Agreement, dated June 19, 2009,
between Numoda and the registrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 6, 9, 10, 12, 13, 19, 20 and
23, 2012, the registrant entered into exchange agreements with certain holders of warrants, including Mr. Moore on July 5,
pursuant to which holders surrendered warrants to purchase an aggregate of approximately 34,791,156 shares of the
registrant&rsquo;s common stock to the registrant in exchange for receiving warrants to purchase an aggregate of
approximately 34,791,156 shares of the registrant&rsquo;s common stock that were not exercisable and for which no shares of
the registrant&rsquo;s common stock were reserved until August 16, 2012, when the registrant filed an amendment to
its certificate of incorporation with the Secretary of State of the State of Delaware to effect an increase to its
authorized shares of common stock. In addition, certain of the warrants received in the exchange have an extended expiration
date which is two years following the date the registrant obtained stockholder approval to increase its authorized shares of
common stock and filed an amendment to its certificate of incorporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 24, 2012, the Circuit Court of
the 11th Judicial Circuit in and for Miami-Dade County, Florida entered an Order Approving Stipulation for Settlement of Claim
(the &ldquo;Order&rdquo;), in the matter titled Socius CG II, Ltd. v. Advaxis, Inc. The Order, together with the Stipulation for
Settlement Claim (the &ldquo;Stipulation&rdquo;), provide for the full and final settlement of Socius&rsquo;s $2,888,860 claim
against the registrant in connection with past due invoices relating to clinical trial services (the &ldquo;Claim&rdquo;). Socius
purchased the Claim against the registrant from Numoda Corporation. Pursuant to the terms of the Order and the Stipulation, the
registrant issued and delivered to Socius 11,111,000 shares of the registrant&rsquo;s common stock, par value $0.001 per share,
for one-half of the Claim and will issue and deliver a number of shares of common stock for the remaining half of the Claim on
the twenty-first trading day following the issuance of the 11,111,000 shares, subject to adjustment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 2, 2012, the
registrant issued and sold to Dr. James Patton, a member of its board of directors, a convertible promissory note in the
principal face amount of $66,667 for a purchase price of $50,000 and warrants to purchase such number of shares of the
registrant&rsquo;s common stock equal to 50% of such number of shares of its common stock issuable upon conversion of the
convertible promissory note at an exercise price of $0.15 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 27, 2012, the registrant entered
into a settlement agreement with JMJ Financial, pursuant to which the registrant agreed to issue 4,076,923 shares of its common
stock to JMJ Financial for the mutual release of any claims held by the registrant or JMJ Financial relating to the registrant&rsquo;s
failure to file the registration statement related to the May 2012 issuance of 4,000,000 shares of the registrant&rsquo;s common
stock to JMJ Financial and have the registration statement declared effective by certain prescribed deadlines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 27, 2012, the registrant issued
and sold to JMJ Financial a convertible promissory note in the aggregate principal face amount of $100,000, for an aggregate purchase
price of $100,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 11, 2012, the registrant issued
and sold to Asher Enterprises, Inc. (&ldquo;Asher&rdquo;) a convertible promissory note in the aggregate principal face amount
of $103,500, for an aggregate purchase price of $100,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 19, 2012, the registrant issued
and sold to Hanover Holdings I, LLC, a New York limited liability company (&ldquo;Hanover&rdquo;), a convertible promissory note
in the aggregate principal face amount of $132,500, for an aggregate purchase price of $132,500.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On September
25, 2012, the registrant issued and sold to its affiliate Dr. Yvonne Paterson a convertible promissory note in the principal face
amount of $100,000 for a purchase price of $100,000 </FONT>and warrants to purchase such number of shares of the registrant&rsquo;s
common stock equal to 50% of such number of shares of its common stock issuable upon conversion of the convertible promissory note
at an exercise price equal to the conversion price then in effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On September
27, 2012, the registrant issued and sold to its employee Christine French a convertible promissory note in the principal face amount
of $25,000 for a purchase price of $25,000 </FONT>and warrants to purchase such number of shares of the registrant&rsquo;s common
stock equal to 50% of such number of shares of its common stock issuable upon conversion of the convertible promissory note at
an exercise price equal to the conversion price then in effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On October 19, 2012, the registrant issued
and sold to Hanover a convertible promissory note in the aggregate principal face amount of $132,500, for an aggregate purchase
price of $132,500.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In October 2012, the registrant delivered
two convertible notes to Magna Group, LLC (&ldquo;Magna&rdquo;) in an aggregate principal amount of $740,598.74. On October 25,
2012, the convertible note in the aggregate principal amount of $617,722.92 previously delivered to Magna was exchanged for a new
convertible note in the aggregate principal amount of $400,075.77, and the remaining convertible note in the aggregate principal
amount of $122,875.82 previously delivered to Magna was returned to the registrant and canceled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On October 26, 2012, the registrant entered
into common stock purchase agreement (the &ldquo;Hanover Purchase Agreement&rdquo;) with Hanover, pursuant to which Hanover committed
to purchase up to $10.0 million shares of the registrant&rsquo;s common stock, subject to certain customary conditions, over the
24-month term. In connection with the execution and delivery of the Hanover Purchase Agreement, the registrant issued to Hanover
3,500,000 shares of its common stock and agreed to issue up to 1,800,000 additional shares of its common stock during any full
calendar quarter during the term of the Hanover Purchase Agreement, if no shares of common stock were purchased or sold because
the registrant did not deliver a notice electing to effect such issuance to Hanover.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 24.5pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 16.&nbsp;&nbsp;Exhibits and Financial Statement Schedules.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(a) <I>Exhibits.&nbsp;&nbsp;</I> The following
exhibits are included herein or incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Number</B></P></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 86%; border-bottom: windowtext 1pt solid; font-weight: bold">Description&nbsp;of&nbsp;Exhibit</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>2.1</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement Plan and Merger of Advaxis, Inc. (a Colorado corporation) and Advaxis, Inc. (a Delaware corporation). &nbsp;Incorporated by reference to Annex B to DEF 14A Proxy Statement filed with the SEC on May 15, 2006.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3.1</TD>
    <TD>&nbsp;</TD>
    <TD>Amended and Restated Certificate of Incorporation. &nbsp;Incorporated by reference to Annex C to DEF 14A Proxy Statement filed with the SEC on May 15, 2006.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3.2</TD>
    <TD>&nbsp;</TD>
    <TD>Amended and Restated Bylaws. &nbsp;Incorporated by reference to Exhibit 10.4 to Quarterly Report on Form 10-QSB filed with the SEC on September 13, 2006.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3.3</TD>
    <TD>&nbsp;</TD>
    <TD>Certificate of Amendment to Amended and Restated Certificate of Incorporation filed with the Delaware Secretary of State on August 16, 2012. Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed with the SEC on August 17, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of common stock certificate. &nbsp;Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on October 23, 2007.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.2</TD>
    <TD>&nbsp;</TD>
    <TD>Certificate of Designations of Preferences, Rights and Limitations of Series A Preferred Stock of the registrant, dated September 24, 2009. Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on September 25, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.3</TD>
    <TD>&nbsp;</TD>
    <TD>Certificate of Designations of Preferences, Rights and Limitations of Series B Preferred Stock of the registrant, dated July 19, 2010. Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on July 20, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.4</TD>
    <TD>&nbsp;</TD>
    <TD>Form of warrant issued in the August 2007 financing. &nbsp;Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on August 27, 2007.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.5</TD>
    <TD>&nbsp;</TD>
    <TD>Form of warrant to purchase shares of the registrant&rsquo;s common stock at the price of $0.20 per share (the &ldquo;$0.20 warrant&rdquo;). &nbsp;Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on October 23, 2007.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.6</TD>
    <TD>&nbsp;</TD>
    <TD>Form of warrant to purchase shares of the registrant&rsquo;s common stock at the price of $0.001 per share (the &ldquo;$0.001 warrant&rdquo;). &nbsp;Incorporated by reference to Exhibit 4.3 to Current Report on Form 8-K filed with the SEC on October 23, 2007.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.7</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Purchase Warrant. Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on June 19, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.8</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued to Optimus CG II Ltd. pursuant to the Series A Preferred Stock Purchase Agreement. &nbsp;Incorporated by reference to Exhibit A to the Purchase Agreement included as Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on September 25, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.9</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Purchase Warrant, issued in the junior bridge financing. &nbsp;Incorporated by reference to Exhibit 4.12 to Registration Statement on Form S-1 (File No. 333-162632) filed with the SEC on October 22, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.10</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Amended and Restated Common Stock Purchase Warrant. &nbsp;Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K/A filed with the SEC on February 11, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.11</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Purchase Warrant. &nbsp;Incorporated by reference to Exhibit 4.3 to Current Report on Form 8-K/A filed with the SEC on February 11, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.12</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Additional Common Stock Purchase Warrant issued to Optimus CG II Ltd. &nbsp;Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on May 14, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.13</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued to Optimus CG II Ltd. pursuant to the Series B Preferred Stock Purchase Agreement. &nbsp;Incorporated by reference to Exhibit A to the Purchase Agreement included as Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on July 20, 2010.</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Number</B></P></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 86%; border-bottom: windowtext 1pt solid; font-weight: bold">Description of Exhibit</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.14</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Convertible Promissory Note. &nbsp;Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on November 12, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.15</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Purchase Warrant. &nbsp;Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on November 12, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.16</TD>
    <TD>&nbsp;</TD>
    <TD>Warrant to Purchase Common Stock issued to Optimus CG II Ltd. pursuant to Amendment No. 1 to the Series B Preferred Stock Purchase Agreement. &nbsp;Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on April 7, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.17</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Purchase Warrant. &nbsp;Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on May 9, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.18</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Purchase Warrant. &nbsp;Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on August 31, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.19</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Purchase Warrant. &nbsp;Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on November 2, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.20</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Purchase Warrant. &nbsp;Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on January 5, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.21</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Purchase Warrant issued pursuant to the Exchange Agreements, dated as of May 14, 2012, by and between Advaxis, Inc. and each investor identified on the signature pages thereto. Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on May 18, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Purchase Warrant issued pursuant to the Note Purchase Agreement, dated as of May 14, 2012, by and between Advaxis, Inc. and each investor identified on the signature pages thereto. Incorporated by reference to Exhibit 4.3 to Current Report on Form 8-K filed with the SEC on May 18, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.23</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Purchase Warrant issued to Dr. James Patton. &nbsp;Incorporated by reference to Exhibit 4.23 to Amendment No. 1 to Registration Statement on Form S-1 (File No. 333-183682) filed with the SEC on September 11, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>5.1*</TD>
    <TD>&nbsp;</TD>
    <TD>Opinion of Greenberg Traurig, LLP.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement between the registrant and the purchasers in the private placement (the &ldquo;SPA&rdquo;), dated as of October 17, 2007, and Disclosure Schedules thereto. &nbsp;Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on October 23, 2007.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.2</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement dated February 2, 2006 between the registrant and Cornell Capital Partners, LP. &nbsp;Incorporated by reference to Exhibit 10.01 to Report on Form 8-K filed with the SEC on February 8, 2006.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.3</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement between the registrant and the parties to the SPA, dated as of October 17, 2007. &nbsp;Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on October 23, 2007.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.4</TD>
    <TD>&nbsp;</TD>
    <TD>Placement Agency Agreement between the registrant and Carter Securities, LLC, dated as of October 17, 2007. &nbsp;Incorporated by reference to Exhibit 10.3 to Current Report on Form 8-K filed with the SEC on October 23, 2007.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.5</TD>
    <TD>&nbsp;</TD>
    <TD>Engagement Letter between the registrant and Carter Securities, LLC, dated August 15, 2007. &nbsp;Incorporated by reference to Exhibit 10.3(a) to Current Report on Form 8-K filed with the SEC on October 23, 2007.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.6</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement between the registrant and YA Global Investments, L.P. f/k/a Cornell Capital Partners, L.P., dated August 23, 2007. &nbsp;Incorporated by reference to Exhibit 10.4 to Current Report on Form 8-K filed with the SEC on October 23, 2007.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.7</TD>
    <TD>&nbsp;</TD>
    <TD>Memorandum of Agreement between the registrant and CAMHZN Master LDC and CAMOFI Master LDC, purchasers of the Units consisting of common stock, $0.20 warrants, and $0.001 warrants, dated October 17, 2007. &nbsp;Incorporated by reference to Exhibit 10.5 to Current Report on Form 8-K filed with the SEC on October 23, 2007.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.8</TD>
    <TD>&nbsp;</TD>
    <TD>Advisory Agreement between the registrant and Centrecourt Asset Management LLC, dated August 1, 2007. &nbsp;Incorporated by reference to Exhibit 10.6 to Current Report on Form 8-K filed with the SEC on October 23, 2007.</TD></TR>
</TABLE>


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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Number</B></P></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 86%; border-bottom: windowtext 1pt solid; font-weight: bold">Description&nbsp;of&nbsp;Exhibit</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.9</TD>
    <TD>&nbsp;</TD>
    <TD>Share Exchange and Reorganization Agreement, dated as of August 25, 2004, by and among the registrant, Advaxis and the shareholders of Advaxis. &nbsp;Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on November 18, 2004.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.10</TD>
    <TD>&nbsp;</TD>
    <TD>Security Agreement dated February 2, 2006 between the registrant and Cornell Capital Partners, L.P. &nbsp;Incorporated by reference to Exhibit 10.06 to Current Report on Form 8-K filed with the SEC on February 8, 2006.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.11</TD>
    <TD>&nbsp;</TD>
    <TD>Investor Registration Rights Agreement dated February 2, 2006 between the registrant and Cornell Capital Partners, LP. &nbsp;Incorporated by reference to Exhibit 10.05 to Current Report on Form 8-K filed with the SEC on February 8, 2006.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.12</TD>
    <TD>&nbsp;</TD>
    <TD>2004 Stock Option Plan of the registrant. &nbsp;Incorporated by reference to Exhibit 4.1 to Report on Form S-8 filed with the SEC on December 1, 2005.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.13</TD>
    <TD>&nbsp;</TD>
    <TD>2005 Stock Option Plan of the registrant. &nbsp;Incorporated by reference to Annex A to DEF 14A Proxy Statement filed with the SEC on May 15, 2006.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.14</TD>
    <TD>&nbsp;</TD>
    <TD>License Agreement, between University of Pennsylvania and the registrant dated as of June 17, 2002, as Amended and Restated on February 13, 2007. &nbsp;Incorporated by reference to Exhibit 10.11 to Annual Report on Form 10-KSB filed with the SEC on February 13, 2007.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.15</TD>
    <TD>&nbsp;</TD>
    <TD>Sponsored Research Agreement dated November 1, 2006 by and between University of Pennsylvania (Dr. Paterson Principal Investigator) and the registrant. &nbsp;Incorporated by reference to Exhibit 10.44 to Annual Report on 10-KSB filed with the SEC on February 13, 2007.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.16</TD>
    <TD>&nbsp;</TD>
    <TD>Non-Exclusive License and Bailment, dated as of March 17, 2004, between The Regents of the University of California and Advaxis, Inc. &nbsp;Incorporated by reference to Exhibit 10.8 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2 (File No. 333-122504).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.17</TD>
    <TD>&nbsp;</TD>
    <TD>Consultancy Agreement, dated as of January 19, 2005, by and between LVEP Management, LLC. &nbsp;and the registrant. &nbsp;Incorporated by reference to Exhibit 10.9 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2 (File No. 333-122504).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.18</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment to Consultancy Agreement, dated as of April 4, 2005, between LVEP Management LLC and the registrant. &nbsp;Incorporated by reference to Exhibit 10.27 to Annual Report on Form 10-KSB filed with the SEC on January 25, 2006.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.19</TD>
    <TD>&nbsp;</TD>
    <TD>Second Amendment dated October 31, 2005 to Consultancy Agreement between LVEP Management LLC and the registrant. &nbsp;Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on November 9, 2005.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.20</TD>
    <TD>&nbsp;</TD>
    <TD>Third Amendment dated December 15, 2006 to Consultancy Agreement between LVEP Management LLC and the registrant. &nbsp;Incorporated by reference to Exhibit 9.01 to Current Report on Form 8-K filed with the SEC on December 15, 2006.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.21</TD>
    <TD>&nbsp;</TD>
    <TD>Consultancy Agreement, dated as of January 22, 2005, by and between Dr. Yvonne Paterson and Advaxis, Inc. &nbsp;Incorporated by reference to Exhibit 10.12 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2 (File No. 333-122504).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.22</TD>
    <TD>&nbsp;</TD>
    <TD>Consultancy Agreement, dated as of March 15, 2003, by and between Dr. Joy A. Cavagnaro and Advaxis, Inc. &nbsp;Incorporated by reference to Exhibit 10.13 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2 (File No. 333-122504).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.23</TD>
    <TD>&nbsp;</TD>
    <TD>Consulting Agreement, dated as of July 2, 2004, by and between Sentinel Consulting Corporation and Advaxis, Inc. &nbsp;Incorporated by reference to Exhibit 10.15 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2 (File No. 333-122504).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.24</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement, dated July 7, 2003, by and between Cobra Biomanufacturing PLC and Advaxis, Inc. &nbsp;Incorporated by reference to Exhibit 10.16 to Pre-Effective Amendment No. 4 filed on June 9, 2005 to Registration Statement on Form SB-2 (File No. 333-122504).</TD></TR>
</TABLE>


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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Number</B></P></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 86%; border-bottom: windowtext 1pt solid; font-weight: bold">Description&nbsp;of&nbsp;Exhibit</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.25&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated as of January 12, 2005, by and between the registrant and Harvest Advaxis LLC.&nbsp;&nbsp;Incorporated
    by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on January 18, 2005.&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.26</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated as of January 12, 2005, by and between the registrant and Harvest Advaxis LLC.&nbsp;&nbsp;Incorporated
    by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on January 18, 2005.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.27</TD>
    <TD>&nbsp;</TD>
    <TD>Letter Agreement, dated as of January 12, 2005 by and between the registrant and Robert
    T. Harvey. Incorporated     by reference to Exhibit 10.3 to Current Report on Form 8-K filed with the SEC on
    January 18, 2005.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.28</TD>
    <TD>&nbsp;</TD>
    <TD>Consultancy Agreement, dated as of January 15, 2005, by and between Dr. David Filer and the registrant. Incorporated
    by reference to Exhibit 10.20 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2
    (File No. 333-122504).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.29</TD>
    <TD>&nbsp;</TD>
    <TD>Consulting Agreement, dated as of January 15, 2005, by and between Pharm-Olam International Ltd. and the registrant.
    Incorporated     by reference to Exhibit 10.21 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration
    Statement on Form SB-2     (File No. 333-122504).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.30</TD>
    <TD>&nbsp;</TD>
    <TD>Letter Agreement, dated February 10, 2005, by and between Richard Berman and the registrant. Incorporated by
    reference to Exhibit 10.23 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2
    (File No. 333-122504).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.31</TD>
    <TD>&nbsp;</TD>
    <TD>Employment Agreement, dated February 8, 2005, by and between Vafa Shahabi and the registrant. Incorporated
    by reference to Exhibit 10.24 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2
    (File No. 333-122504).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.32</TD>
    <TD>&nbsp;</TD>
    <TD>Employment Agreement, dated March 1, 2005, by and between John Rothman and the registrant. Incorporated by
    reference to Exhibit 10.25 to Pre-Effective Amendment No. 2 filed on April 8, 2005 to Registration Statement on Form SB-2/A
    (File No. 333-122504).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.33</TD>
    <TD>&nbsp;</TD>
    <TD>Clinical Research Services Agreement, dated April 6, 2005, between Pharm-Olam International Ltd. and the registrant.
    Incorporated     by reference to Exhibit 10.26 to Pre-Effective Amendment No. 4 filed on June 9, 2005 to Registration
    Statement on Form SB-2     (File No. 333-122504).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.34</TD>
    <TD>&nbsp;</TD>
    <TD>Royalty Agreement, dated as of May 11, 2003, by and between Cobra Bio-Manufacturing PLC and the registrant. Incorporated
    by reference to Exhibit 10.28 to Pre-Effective Amendment No. 4 filed on June 9, 2005 to Registration Statement on Form SB-2
    (File No. 333-122504).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.35</TD>
    <TD>&nbsp;</TD>
    <TD>Letter Agreement between the registrant and Investors Relations Group Inc., dated September 27, 2005. Incorporated
    by reference to Exhibit 10.31 to Post-Effective Amendment filed on January 5, 2006 to Registration Statement on Form SB-2
    (File No. 333-122504).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.36</TD>
    <TD>&nbsp;</TD>
    <TD>Consultancy Agreement between the registrant and Freemind Group LLC, dated October 17, 2005. Incorporated by
    reference to Exhibit 10.32 to Post-Effective Amendment filed on January 5, 2006 to Registration Statement on Form SB-2 (File
    No. 333-122504).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.37</TD>
    <TD>&nbsp;</TD>
    <TD>Employment Agreement dated August 21, 2007 between the registrant and Thomas Moore. Incorporated by reference
    to Exhibit 10.3 to Current Report on Form 8-K filed with the SEC on August 27, 2007.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.38</TD>
    <TD>&nbsp;</TD>
    <TD>Employment Agreement dated February 9, 2006 between the registrant and Fred Cobb. Incorporated by reference
    to Exhibit 10.35 to the Registration Statement on Form SB-2 (File No. 333-132298) filed with the SEC on March 9, 2006.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.39</TD>
    <TD>&nbsp;</TD>
    <TD>Termination of Employment Agreement between J. Todd Derbin and the registrant dated October 31, 2005. Incorporated
    by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on November 9, 2005.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.40</TD>
    <TD>&nbsp;</TD>
    <TD>Consulting Agreement dated June 1, 2006 between the registrant and Biologics Consulting Group Inc. Incorporated
    by reference to Exhibit 10.40 to Annual Report on Form 10-KSB field with the SEC on February 13, 2007.</TD></TR>
</TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Number</B></P></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 86%; border-bottom: windowtext 1pt solid; font-weight: bold">Description&nbsp;of&nbsp;Exhibit</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.41</TD>
    <TD>&nbsp;</TD>
    <TD>Consulting Agreement dated June 1, 2006 between the registrant and Biologics Consulting Group Inc., as amended on June 1, 2007. &nbsp;Incorporated by reference to Exhibit 10.42(i) to Annual Report on Form 10-KSB filed with the SEC on January 16, 2008.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.42</TD>
    <TD>&nbsp;</TD>
    <TD>Master Contract Service Agreement between the registrant and MediVector, Inc. dated May 20, 2007. Incorporated by reference to Exhibit 10.44 to Annual Report on Form 10-KSB filed with the SEC on January 16, 2008.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.43</TD>
    <TD>&nbsp;</TD>
    <TD>Form of note issued in the August 2007 financing. &nbsp;Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on August 27, 2007.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.44</TD>
    <TD>&nbsp;</TD>
    <TD>Letter of Agreement, dated November 21, 2007, between Crystal Research Associates, LLC and the registrant. Incorporated by reference to Exhibit 10.45 to Annual Report on Form 10-KSB filed with the SEC on January 16, 2008.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.45</TD>
    <TD>&nbsp;</TD>
    <TD>Service Proposal O781, dated May 14, 2007, to the Strategic Collaboration and Long Term Vaccine Supply Agreement, dated October 31, 2005, between the registrant and Cobra Biomanufacturing Plc. Incorporated by reference to Exhibit 10.46 to Annual Report on Form 10-KSB filed with the SEC on January 16, 2008.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.46</TD>
    <TD>&nbsp;</TD>
    <TD>Service Proposal, dated September 20, 2007, to the Strategic Collaboration and Long Term Vaccine Supply Agreement, dated October 31, 2005, between the registrant and Cobra Biomanufacturing Plc. Incorporated by reference to Exhibit 10.47 to Annual Report on Form 10-KSB filed with the SEC on January 16, 2008.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.47</TD>
    <TD>&nbsp;</TD>
    <TD>Consulting Agreement, dated May 1, 2007 between the registrant and Bridge Ventures, Inc. Incorporated by reference to Exhibit 10.48 to Annual Report on Form 10-KSB filed with the SEC on January 16, 2008.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.48</TD>
    <TD>&nbsp;</TD>
    <TD>Consulting Agreement, dated August 1, 2007 between the registrant and Dr. David Filer. Incorporated by reference to Exhibit 10.49 to Annual Report on Form 10-KSB filed with the SEC on January 16, 2008.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.49</TD>
    <TD>&nbsp;</TD>
    <TD>Employment Agreement dated February 29, 2008 between the registrant and Christine Chansky. Incorporated by reference to Exhibit 10.50 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.50</TD>
    <TD>&nbsp;</TD>
    <TD>Note Purchase Agreement, dated September 22, 2008 by and between Thomas A. Moore and the registrant. Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on September 30, 2008.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.51</TD>
    <TD>&nbsp;</TD>
    <TD>Lease Extension Agreement dated June 1, 2008 by and between New Jersey Economic Development Authority and the registrant. Incorporated by reference to Exhibit 10.55 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.52</TD>
    <TD>&nbsp;</TD>
    <TD>Technical/Quality Agreement dated May 6, 2008 by and between Vibalogics GmbH and the registrant. Incorporated by reference to Exhibit 10.57 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.53</TD>
    <TD>&nbsp;</TD>
    <TD>Master Service Agreement dated April 7, 2008 by and between Vibalogics GmbH and the registrant. Incorporated by reference to Exhibit 10.58 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.54</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement, dated as of December 8, 2008, by and between The Sage Group and the registrant. Incorporated by reference to Exhibit 10.59 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.55</TD>
    <TD>&nbsp;</TD>
    <TD>Service Agreement dated January 1, 2009 by and between AlphaStaff, Inc. and the registrant. Incorporated by reference to Exhibit 10.60 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.56</TD>
    <TD>&nbsp;</TD>
    <TD>Promissory Note issued to Biotechnology Greenhouse Corporation of Southeastern Pennsylvania, dated November 10, 2003. &nbsp;Incorporated by reference to Exhibit 10.53 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.57</TD>
    <TD>&nbsp;</TD>
    <TD>Promissory Note issued to Biotechnology Greenhouse Corporation of Southeastern Pennsylvania, dated December 17, &nbsp;2003. &nbsp;Incorporated by reference to Exhibit 10.54 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.</TD></TR>
</TABLE>


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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Number</B></P></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 86%; border-bottom: windowtext 1pt solid; font-weight: bold">Description&nbsp;of&nbsp;Exhibit</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.58</TD>
    <TD>&nbsp;</TD>
    <TD>Letter of Intent dated November 20, 2008 by and between Numoda Corporation and the registrant. Incorporated by reference to Exhibit 10.61 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.59</TD>
    <TD>&nbsp;</TD>
    <TD>Consulting Agreement dated December 1, 2008 by and between Conrad Mir and the registrant. Incorporated by reference to Exhibit 10.62 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.60</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Note Purchase Agreement. Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on June 19, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.61</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Senior Secured Convertible Note. Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on June 19, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.62</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Senior Promissory Note as amended, between the registrant and Thomas Moore. Incorporated by reference to Exhibit 4.3 to Current Report on Form 8-K filed with the SEC on June 19, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.63</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Security Agreement. Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on June 19, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.64</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Subordination Agreement. Incorporated by reference to Exhibit 10.3 to Current Report on Form 8-K filed with the SEC on June 19, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.65</TD>
    <TD>&nbsp;</TD>
    <TD>Series A Preferred Stock Purchase Agreement dated September 24, 2009 by and between Optimus Capital Partners, LLC and the registrant. Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on September 25, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.66</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Note Purchase Agreement, entered into in connection with the junior bridge financing. &nbsp;Incorporated by reference to Exhibit 10.61 to Registration Statement on Form S-1 (File No. 333-162632) filed with the SEC on October 22, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.67</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Convertible Promissory Note, issued in the junior bridge financing. &nbsp;Incorporated by reference to Exhibit 4.13 to Registration Statement on Form S-1 (File No. 333-162632) filed with the SEC on October 22, 2009.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.68</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Amended and Restated Senior Promissory Note, between the registrant and Thomas Moore. &nbsp;Incorporated by reference to Exhibit 4.17 to Annual Report on Form 10-K filed with the SEC on February 19, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.69</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment to Senior Promissory Note. &nbsp;Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K/A filed with the SEC on February 11, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.70</TD>
    <TD>&nbsp;</TD>
    <TD>Amended and Restated 2009 Stock Option Plan of the registrant. &nbsp;Incorporated by reference to Annex A to DEF 14A Proxy Statement filed with the SEC on April 30, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.71</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Stock Purchase Agreement dated May 10, 2010 between the registrant and Numoda Capital Innovations, LLC. &nbsp;Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on May 14, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.72</TD>
    <TD>&nbsp;</TD>
    <TD>Second Amendment to the Amended and Restated Patent License Agreement between the registrant and the University of Pennsylvania dated as of May 10, 2010. &nbsp;Incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q filed with the SEC on June 3, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.73</TD>
    <TD>&nbsp;</TD>
    <TD>Series B Preferred Stock Purchase Agreement dated July 19, 2010 by and between Optimus Capital Partners, LLC and the registrant. Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on July 20, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.74</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Amended and Restated Promissory Note between Optimus CG II Ltd. and the registrant. Incorporated by reference to Exhibit G to the Purchase Agreement included as Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on July 20, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.75</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Security Agreement between Optimus CG II Ltd. and the registrant. Incorporated by reference to Exhibit H to the Purchase Agreement included as Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on July 20, 2010.</TD></TR>
</TABLE>


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<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Number</B></P></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 86%; border-bottom: windowtext 1pt solid; font-weight: bold">Description&nbsp;of&nbsp;Exhibit</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.76</TD>
    <TD>&nbsp;</TD>
    <TD>Separation Agreement and General Release dated January 6, 2010 between the Company and Fred Cobb. &nbsp;Incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q filed with the SEC on September 14, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.77</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Note Purchase Agreement. &nbsp;Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on November 12, 2010.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.78</TD>
    <TD>&nbsp;</TD>
    <TD>Amended and Restated Senior Promissory Note, dated March 17, 2011, between the registrant and Thomas A. Moore. &nbsp;Incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q filed with the SEC on March 17, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.79</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment No. 1 to Series B Preferred Stock Purchase Agreement dated April 4, 2011 by and between Optimus Life Sciences Capital Partners, LLC, Optimus CG II Ltd. and the registrant. Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on April 7, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.80</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Promissory Note between Optimus CG II Ltd. and the registrant. Incorporated by reference to Appendix 2 to the Warrant included as Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on April 7, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.81</TD>
    <TD>&nbsp;</TD>
    <TD>Amended and Restated Security Agreement between Optimus CG II Ltd. and the registrant. Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on April 7, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.82</TD>
    <TD>&nbsp;</TD>
    <TD>Form of $500,000 Convertible Promissory Note (A-Note), issued by Advaxis, Inc. to JMJ Financial and related ancillary documents. &nbsp;Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on May 4, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.83</TD>
    <TD>&nbsp;</TD>
    <TD>Form of $800,000 Convertible Promissory Note (B-Note), issued by Advaxis, Inc. to JMJ Financial and related ancillary documents. &nbsp;Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on May 4, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.84</TD>
    <TD>&nbsp;</TD>
    <TD>Form of $800,000 Secured and Collateralized Promissory Note (C-Note), issued by JMJ Financial to Advaxis, Inc. and related ancillary documents. &nbsp;Incorporated by reference to Exhibit 4.3 to Current Report on Form 8-K filed with the SEC on May 4, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.85</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Convertible Promissory Note. &nbsp;Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on May 9, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.86</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Note Purchase Agreement, dated as of May 9, 2011, by and between Advaxis, Inc. and each investor identified on the signature pages thereto. &nbsp;Incorporated by reference to Exhibit 10.1 to Amendment to Current Report on Form 8-K/A filed with the SEC on May 12, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.87</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Registration Rights Agreement, dated as of May 9, 2011, by and between Advaxis, Inc. and each of the several investors signatory thereto. &nbsp;Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on May 9, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.88</TD>
    <TD>&nbsp;</TD>
    <TD>Exchange and Amendment Agreement, dated as of August 29, 2011, by and between Advaxis, Inc. and Thomas A. Moore. &nbsp;Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on August 31, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.89</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Convertible Promissory Note. &nbsp;Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on November 2, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.90</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Note Purchase Agreement, dated as of October 28, 2011, by and between Advaxis, Inc. and each investor identified on the signature pages thereto. &nbsp;Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on November 2, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.91</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Registration Rights Agreement, dated as of October 28, 2011, by and between Advaxis, Inc. and each of the several investors signatory thereto. &nbsp;Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on November 2, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.92</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment No. 1 to the Advaxis, Inc. 2011 Employee Stock Purchase Plan. &nbsp;Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on December 20, 2011.</TD></TR>
</TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Number</B></P></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 86%; border-bottom: windowtext 1pt solid; font-weight: bold">Description&nbsp;of&nbsp;Exhibit</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.93</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Convertible Promissory Note. &nbsp;Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on January 5, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.94</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Note Purchase Agreement, dated as of December 29, 2011, by and between Advaxis, Inc. and each investor identified on the signature pages thereto. &nbsp;Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on January 5, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.95</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Registration Rights Agreement, by and between Advaxis, Inc. and each of the several investors signatory thereto. &nbsp;Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on January 5, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.96</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Exchange Agreement, dated as of May 14, 2012, by and between Advaxis, Inc. and each investor identified on the signature pages thereto. &nbsp;Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on May 18, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.97</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Amendment, Consent and Waiver Agreement, dated as of May 14, 2012, by and between Advaxis, Inc. and each investor identified on the signature pages thereto. &nbsp;Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on May 18, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.98</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Convertible Promissory Note issued pursuant to the Note Purchase Agreement, dated as of May 14, 2012, by and between Advaxis, Inc. and each investor identified on the signature pages thereto. &nbsp;Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on May 18, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.99</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Note Purchase Agreement, dated as of May 14, 2012, by and between Advaxis, Inc. and each investor identified on the signature pages thereto. &nbsp;Incorporated by reference to Exhibit 10.3 to Current Report on Form 8-K filed with the SEC on May 18, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.100</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Registration Rights Agreement, dated as of May 14, 2012, by and between Advaxis, Inc. and each investor identified on the signature pages thereto. &nbsp;Incorporated by reference to Exhibit 10.4 to Current Report on Form 8-K filed with the SEC on May 18, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.101</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Purchase Agreement, dated as of June 13, 2012, by and between Advaxis, Inc. and Numoda Corporation. &nbsp;Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on June 14, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.102</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment No. 1, dated as of March 26, 2007, to the License Agreement, between University of Pennsylvania and Advaxis, Inc. dated as of June 17, 2002, as amended and restated on February 13, 2007. &nbsp;Incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q filed with the SEC on June 14, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.103</TD>
    <TD>&nbsp;</TD>
    <TD>Master Agreement, dated June 19, 2009, by and between Numoda Corporation and Advaxis, Inc. &nbsp;Incorporated by reference to Exhibit 10.2 to Quarterly Report on Form 10-Q filed with the SEC on June 14, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.104</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Project Agreement by and between Numoda Corporation and Advaxis, Inc. &nbsp;Incorporated by reference to Exhibit 10.3 to Quarterly Report on Form 10-Q filed with the SEC on June 14, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.105</TD>
    <TD>&nbsp;</TD>
    <TD>Clinical Trial Services Agreement, dated December 13, 2009, by and between the Gynecologic Oncology Group and Advaxis, Inc. &nbsp;Incorporated by reference to Exhibit 10.4 to Quarterly Report on Form 10-Q filed with the SEC on June 14, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.106</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment No. 3, dated as of December 12, 2011, to the License Agreement, between University of Pennsylvania and Advaxis, Inc. dated as of June 17, 2002, as amended and restated on February 13, 2007. &nbsp;Incorporated by reference to Exhibit 10.5 to Quarterly Report on Form 10-Q filed with the SEC on June 14, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.107</TD>
    <TD>&nbsp;</TD>
    <TD>Exchange Agreement, dated as of July 5, 2012, by and between Advaxis, Inc. and Thomas A. Moore, Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on July 11, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.108</TD>
    <TD>&nbsp;</TD>
    <TD>Agreed Order Granting Joint Expedited Motion for Order Approving Settlement of Claim entered by the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida, dated July 24, 2012. Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on July 25, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.109</TD>
    <TD>&nbsp;</TD>
    <TD>Stipulation for Settlement of Claim between Socius CG II, Ltd. and Advaxis, Inc., dated July 23, 2012. Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on July 25, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.110</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment No. 1 to 2011 Omnibus Incentive Plan of registrant. Incorporated by reference to Annex B to DEF 14A Proxy Statement filed with the SEC on July 19, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.111</TD>
    <TD>&nbsp;</TD>
    <TD>Promissory Note issued to JLSI, LLC on July 21, 2012. &nbsp;Incorporated by reference to Exhibit 10.111 to Registration Statement on Form S-1 (File No. 333-183682) filed with the SEC on August 31, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.112</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Convertible Promissory Note issued to Dr. James Patton. &nbsp;Incorporated by reference to Exhibit 10.112 to Amendment No. 1 to Registration Statement on Form S-1 (File No. 333-183682) filed with the SEC on September 11, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.113</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Convertible Promissory Note issued to JMJ Financial on August 27, 2012. &nbsp;Incorporated by reference to Exhibit 10.113 to Registration Statement on Form S-1 (File No. 333-183682) filed with the SEC on August 31, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.114</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Note Purchase Agreement, by and between Advaxis, Inc. and Dr. James Patton. &nbsp;Incorporated by reference to Exhibit 10.114 to Amendment No. 1 to Registration Statement on Form S-1 (File No. 333-183682) filed with the SEC on September 11, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.115</TD>
    <TD>&nbsp;</TD>
    <TD>Common Stock Purchase Agreement, dated as of October 26, 2012, by and between Advaxis, Inc. and Hanover Holdings I, LLC. Incorporated
by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on October 31, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.116</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated as of October 26, 2012, by and between Advaxis, Inc. and Hanover Holdings I, LLC. Incorporated
by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on October 31, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>14.1</TD>
    <TD>&nbsp;</TD>
    <TD>Code of Business Conduct and Ethics dated November 12, 2004. &nbsp;Incorporated by reference to Exhibit 14.1 to Current Report on Form 8-K filed with the SEC on November 18, 2004.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>23.1*</TD>
    <TD>&nbsp;</TD>
    <TD>Consent of McGladrey LLP (formerly McGladrey &amp; Pullen, LLP).</TD></TR>
</TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Number</B></P></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 86%; border-bottom: windowtext 1pt solid; font-weight: bold">Description&nbsp;of&nbsp;Exhibit</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>23.2</TD>
    <TD>&nbsp;</TD>
    <TD>Consent of Greenberg Traurig LLP (See Exhibit 5.1 above).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>24.1</TD>
    <TD>&nbsp;</TD>
    <TD>Power of Attorney (Included in the signature page of this Registration Statement).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>101.INS**</TD>
    <TD>&nbsp;</TD>
    <TD>XBRL Instance Document</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>101.SCH**</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;XBRL Taxonomy Extension Schema Document</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>101.CAL**</TD>
    <TD>&nbsp;</TD>
    <TD>XBRL Taxonomy Extension Calculation Linkbase Document</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>101.DEF**</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;XBRL Taxonomy Extension Definitions Linkbase Document</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>101.LAB**</TD>
    <TD>&nbsp;</TD>
    <TD>XBRL Taxonomy Extension Label Linkbase Document</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>101.PRE**</TD>
    <TD>&nbsp;</TD>
    <TD>XBRL Taxonomy Extension Presentation Linkbase Document</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">* Filed herewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">** Furnished herewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
Statement Schedules.&nbsp;&nbsp;See page F-1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 17.&nbsp;&nbsp;Undertakings.</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The undersigned registrant hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high
end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price represent no more than a twenty percent change in the maximum aggregate
offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
remove from registration by means of a post-effective amendment, any of the securities being registered which remain unsold at
the termination of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining liability under the Securities Act of 1933 to any purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the registrant is relying on Rule 430B:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0.5in">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the
date the filed prospectus was deemed part of and included in the registration statement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0.5in">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance
on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information
required by section 10(a) of the Securities Act of 1933, shall be deemed to be part of and included in the registration statement
as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale
of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and
any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement
relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities
at that time shall be deemed to be the initial <I>bona fide</I> offering thereof. Provided, however, that no statement made in
a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed
incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to
a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the
registration statement or prospectus that was part of the registration statement or made in any such document immediately prior
to such effective date; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating
to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A,
shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness.
Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement
or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part
of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify
any statement that was made in the registration statement or prospectus that was part of the registration statement or made in
any such document immediately prior to such date of first use.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant
to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification
is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel
the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication
of such issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized in the City of Princeton, State of New Jersey, on November 13, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">ADVAXIS, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 51%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 44%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid">/s/ Thomas A. Moore</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Name: Thomas A. Moore</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Title: Chief Executive Officer and Chairman of</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 27pt">the Board of Directors</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">KNOW ALL MEN BY THESE PRESENTS, that each
of the undersigned directors and officers of Advaxis, Inc., a Delaware corporation, which is filing a registration statement on
Form S-1 with the Securities and Exchange Commission under the provisions of the Securities Act of 1933 hereby constitutes and
appoints Thomas A. Moore and/or Mark J. Rosenblum, and each of them, his or her true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, and in any and all
capacities, to sign and file (i) any and all amendments (including post-effective amendments) to this registration statement,
with all exhibits thereto, and other documents in connection therewith, and (ii) a registration statement, and any and all amendments
thereto, relating to the offering covered hereby filed pursuant to Rule 462(b) under the Securities Act of 1933, with the Securities
and Exchange Commission, it being understood that said attorneys-in-fact and agents, and each of them, shall have full power and
authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully
to all intents and purposes as he or she might or could do in person and that each of the undersigned hereby ratifies and confirms
all that said attorneys-in-fact as agents or any of them, or their substitute or substitutes, may lawfully do or cause to be done
by virtue hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the date indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">Signature</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 39%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">Title</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 15%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">Date</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center">/s/ THOMAS A. MOORE</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Chief Executive Officer and Chairman
        of</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">the Board of Directors</P></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center">November 13, 2012</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; text-align: center">Thomas A. Moore</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;(Principal Executive Officer)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center">/s/ MARK J. ROSENBLUM</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">Chief Financial Officer, Senior Vice President and Secretary</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center">November 13, 2012</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; text-align: center">Mark J. Rosenblum</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;(Principal Financial and Accounting Officer)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center">/s/ RONI A. APPEL</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">Director</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center">November 13, 2012</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; text-align: center">Roni A. Appel</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center">/s/ DR. THOMAS MCKEARN</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">Director</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center">November 13, 2012</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; text-align: center">Dr. Thomas McKearn</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center">/s/ DR. JAMES PATTON</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">Director</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center">November 13, 2012</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; text-align: center">Dr. James Patton</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center">/s/ RICHARD BERMAN</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">Director</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">November 13, 2012</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; text-align: center">Richard Berman</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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{"company-data": {"conformed-name": "Advaxis, Inc.", "cik": "0001100397", "assigned-sic": "2834", "irs-number": "841521955", "state-of-incorporation": "DE", "fiscal-year-end": "1031"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-184928", "film-number": "121200514"}, "business-address": {"street1": "TECHNOLOGY CENTRE OF NEW JERSEY", "street2": "675 ROUTE 1", "city": "NORTH BRUNSWICK", "state": "NJ", "zip": "08902", "phone": "732 545 1590"}, "mail-address": {"street1": "TECHNOLOGY CENTRE OF NEW JERSEY", "street2": "675 ROUTE 1", "city": "NORTH BRUNSWICK", "state": "NJ", "zip": "08902"}, "former-company": {"former-conformed-name": "GREAT EXPECTATIONS & ASSOCIATES INC", "date-changed": "19991203"}}
File No. 333-[___]
As filed with the Securities and Exchange
Commission on November 13, 2012
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
ADVAXIS, INC.
(Exact name of registrant as specified
in its charter)
Delaware
2836
02-0563870
(State or other jurisdiction
of incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification No.)
305 College Road East
Princeton, New Jersey 08540
(609) 452-9813
(Address, including zip code, and telephone
number, including area code, of registrant's principal executive office)
Mr. Thomas A. Moore
Chief Executive Officer
305 College Road East
Princeton, New Jersey 08540
(609) 452-9813
(Name, address, including zip code, and
telephone number, including area code, of agent for service)
Copies to:
Robert H. Cohen, Esq.
Greenberg Traurig, LLP
The MetLife Building
200 Park Avenue
New York, New York 10166
Phone: (212) 801-9200
Fax: (212) 801-6400
Approximate date of commencement of
proposed sale to the public.
From time to time after this Registration Statement becomes effective, as determined
by the selling stockholder named in the prospectus contained herein.
If any of the Securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, as amended,
check the following box:
x
If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities
Act Registration Statement number of the earlier effective Registration Statement for the same offering:
¨
If this Form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act, please check the following box and list the Securities Act Registration
Statement number of the earlier effective Registration Statement for the same offering:
¨
If this Form is a post-effective amendment
filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act Registration Statement
number of the earlier effective Registration Statement for the same offering:
¨
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the
definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company"
in Rule 12b-2 of the Exchange Act.
Large accelerated filer
¨
Accelerated filer
¨
Non-accelerated filer
¨
(Do not check if smaller
    reporting company)
Smaller reporting company
x
CALCULATION OF REGISTRATION FEE
Title of each
class
of securities
to be
registered
Amount
to be
registered(1)
Proposed
maximum
offering price
per
share
Proposed
maximum
aggregate
offering price
Amount of
registration
fee
Common Stock, par value $0.001 per share
115,000,000 shares
(2)
$
0.03745
(3)
$
4,307,750.00
$
587.44
(3)
(1)
Pursuant to Rule 416 under the Securities Act of 1933, as amended, this Registration Statement shall
    be deemed to cover the additional securities (i) to be offered or issued in connection with any provision of any securities
    purported to be registered hereby to be offered pursuant to terms which provide for a change in the amount of securities being
    offered or issued to prevent dilution resulting from stock splits, stock dividends or similar transactions and (ii) of the
    same class as the securities covered by this Registration Statement issued or issuable prior to completion of the distribution
    of the securities covered by this Registration Statement as a result of a split of, or a stock dividend on, the registered
    securities.
(2)
Represents shares of the registrant's issued and outstanding common stock being registered for resale.
(3)
Estimated solely for purposes of calculating the registration fee pursuant to Rule 457(c) of the Securities Act of 1933,
    as amended, based on the average of the high and low prices of the common stock of the registrant as reported on the OTC Bulletin
    Board on November 8, 2012.
The registrant hereby amends this Registration Statement
on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which
specifically states that this Registration Statement shall thereafter become effective in accordance with section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become effective on such date as the commission, acting pursuant
to section 8(a) may determine.
The information in this prospectus is not complete and may
be changed.  The selling stockholder may not sell these securities until the registration statement filed with the Securities
and Exchange Commission is effective.  This prospectus is not an offer to sell these securities, and it is not soliciting
offers to buy these securities, in any state where the offer or sale of these securities is not permitted.
PROSPECTUS, SUBJECT TO COMPLETION,
DATED NOVEMBER 13, 2012
ADVAXIS, INC.
115,000,000 Shares
Common Stock
This prospectus relates to the disposition
from time to time of up to 115,000,000 shares of our common stock, which are held or may be held by the selling shareholder named
in this prospectus. We are not selling any common stock under this prospectus and will not receive any of the proceeds from the
sale of shares by the selling shareholder.
The selling shareholder identified in this
prospectus, or its permitted transferees or other successors-in-interest, may offer the shares from time to time through public
or private transactions at prevailing market prices, at prices related to prevailing market prices, or at privately negotiated
prices. We provide more information about how the selling shareholder may sell its shares of common stock in the section entitled
"Plan of Distribution" beginning on page 76 of this prospectus. We will not be paying any underwriting discounts
or commissions in connection with any offering of common stock under this prospectus.
Our common stock is quoted on the
Over-The-Counter Bulletin Board, or OTC Bulletin Board, under the symbol ADXS.OB.  On November 12, 2012, the
last reported sale price per share for our common stock as reported by the OTC Bulletin Board was $0.04.
Investing in our common stock involves
a high degree of risk.  We urge you to carefully consider the ''Risk Factors'' beginning on
page 2.
Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or
accuracy of the prospectus.  Any representation to the contrary is a criminal offense.
The date of this prospectus is
November 13, 2012.
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS
i
PROSPECTUS SUMMARY
ii
THE OFFERING
1
RISK FACTORS
2
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
16
USE OF PROCEEDS
17
EQUITY ENHANCEMENT PROGRAM
17
MARKET PRICE OF AND DIVIDENDS ON OUR COMMON STOCK AND RELATED STOCKHOLDER MATTERS
21
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
    OPERATIONS
22
DESCRIPTION OF BUSINESS
37
MANAGEMENT
51
EXECUTIVE COMPENSATION
55
STOCK OWNERSHIP
64
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
66
DESCRIPTION OF OUR CAPITAL STOCK
67
SHARES ELIGIBLE FOR FUTURE SALE
74
SELLING STOCKHOLDER
75
PLAN OF DISTRIBUTION
77
LEGAL MATTERS
79
EXPERTS
79
INTERESTS OF NAMED EXPERTS AND COUNSEL
79
WHERE YOU CAN FIND ADDITIONAL INFORMATION
79
INDEX TO FINANCIAL STATEMENTS
F-1
ABOUT THIS PROSPECTUS
You should only rely on the information
contained in this prospectus.  We have not authorized anyone to give any information or make any representation about
this offering that differs from, or adds to, the information in this prospectus or in its documents that are publicly filed with
the SEC.  Therefore, if anyone does give you different or additional information, you should not rely on it.  The
delivery of this prospectus does not mean that there have not been any changes in our condition since the date of this prospectus.  If
you are in a jurisdiction where it is unlawful to offer the securities offered by this prospectus, or if you are a person to whom
it is unlawful to direct such activities, then the offer presented by this prospectus does not extend to you.  This
prospectus speaks only as of its date except where it indicates that another date applies.
Market data and certain industry forecasts
used in this prospectus were obtained from market research, publicly available information and industry publications. We believe
that these sources are generally reliable, but the accuracy and completeness of such information is not guaranteed. We have not
independently verified this information, and we do not make any representation as to the accuracy of such information.
In this prospectus, the terms "we",
"us", "our" and "our company" refer to Advaxis, Inc., a Delaware corporation, resulting from
the reincorporation of our company from Colorado to Delaware described elsewhere in this prospectus (unless the context references
such entity prior to the June 20, 2006 reincorporation from Colorado to Delaware, in which case it refers to the Colorado entity).
The name Advaxis is our trademark. Other
trademarks and product names appearing in this prospectus are the property of their respective owners.
i
PROSPECTUS SUMMARY
This summary highlights some
important information from this prospectus, and it may not contain all of the information that is important to you.  You
should read the following summary together with the more detailed information regarding us and our common stock being sold in
this offering, including "Risk Factors" and our financial statements and related notes, included elsewhere in this
prospectus.
Our Company
We are a development stage biotechnology
company with the intent to develop safe and effective immunotherapies for cancer and infectious diseases. These immunotherapies
are based on a platform technology under exclusive license from the University of Pennsylvania, which we refer to as Penn, that
utilizes live attenuated
Listeria monocytogenes
, which we refer to as
Listeria
or
Lm
, bioengineered to secrete
antigen/adjuvant fusion proteins. These
Lm
-LLO strains use a fragment of the protein listeriolysin (LLO), fused to a tumor
associated antigen (TAA) or other antigen of interest. We believe these
Lm
-LLO agents redirect the potent immune response
to
Lm
which is inherent in humans, to the TAA or antigen of interest. The immune response to a live, metabolically competent
pathogen is much more complex than the response to a synthetic or organic molecule and may enable a more comprehensive therapeutic
outcome than current treatment modalities. We believe this to be a broadly enabling platform technology that can be applied to
the treatment of many types of cancers and infectious diseases.
The discoveries that underlie
this innovative technology are based upon the work of Yvonne Paterson, Ph.D., Professor of Microbiology at Penn.
Lm
-LLO
based immunotherapies stimulate the immune system to induce antigen-specific anti-tumor immune responses involving both innate
and adaptive arms of the immune system. In addition, this technology facilitates the immune response by altering the microenvironment
of tumors to make them more susceptible to immune attack.
We have focused our initial development
efforts on therapeutic immunotherapies targeting HPV-associated diseases: cervical intraepithelial neoplasia, which we refer to
as CIN 2/3, recurrent or refractory cervical cancer, and head and neck cancer. In addition we have developed immunotherapies for
prostate cancer, and HER2 expressing cancers (such as breast, gastric, bladder, brain, pancreatic and ovarian cancer). Our lead
drug candidates in clinical development are as follows:
Immunotherapy
Indication
Stage
ADXS-HPV
Cervical Cancer
Phase 1
Company sponsored & completed in 2007 with 15 patients.
Cervical Intraepithelial Neoplasia
Phase 2
Company sponsored study, initiated in March 2010 in the US. The Company completed enrollment of the low-dose
    cohort in September 2011 (41 patients) and in June 2012 (40 patients) in the mid-dose cohort.
Cervical Cancer
Phase 2
Company sponsored study initiated in November 2010 in India in 110 patients with recurrent or refractory
    cervical cancer. The Company completed enrollment (110 patients) in May 2012.
Cervical Cancer
Phase 2
The Gynecologic Oncology Group (GOG) of the National Cancer Institute is conducting a study in 67
    patients     with recurrent or refractory cervical cancer which is currently open to enrollment. As of October 3, 2012, 6 out
    of 67     patients have     been enrolled in the safety run-in phase.
Head & Neck Cancer
Phase 1
The Cancer Research UK (CRUK) is funding a study of  27 patients with head & neck cancer at 3 UK
    sites.     As of October 3, 2012,  6 patients have been enrolled.
ADXS-PSA
Prostate Cancer
Phase 1
Company sponsored (timing to be determined).
ADXS-HER2
HER2 Expressing Cancer
Phase 1
Company sponsored (timing to be determined).
ADXS-HER2
Canine Osteosarcoma
Phase 1
Company sponsored study, initiated in July 2011 in the US. As of October 3, 2012, 2 dogs have been dosed.
We have sustained losses from
operations in each fiscal year since our inception, and we expect these losses to continue for the indefinite future, due to the
substantial investment in research and development.  As of October 31, 2011 and July 31, 2012, we had an accumulated
deficit of $35,531,740 and $45,611,368, respectively and shareholders' deficiency of $12,279,713 and $4,999,243, respectively.
ii
To date, we have outsourced many
functions of drug development including manufacturing and clinical trials management. Accordingly, the expenses of these outsourced
services account for a significant amount of our accumulated loss. We cannot predict when, if ever, any of our immunotherapies
will become commercially viable or approved by the United States Food and Drug Administration, which we refer to as the FDA. We
expect to spend substantial additional sums on the continued administration and research and development of proprietary products
and technologies, including conducting clinical trials for our immunotherapies, with no certainty that our immunotherapies will
become commercially viable or profitable as a result of these expenditures.
We intend to continue devoting
a substantial portion of our resources to the continued pre-clinical development and optimization of our platform technology so
as to develop it to its full potential and to further identify appropriate new drug candidates. Specifically, we intend to conduct
research relating to developing the next generations of our
Lm
-LLO based immunotherapies using new antigens of interest;
improving the
Lm
-LLO based platform technology by developing new strains of
Listeria
which may be more suitable
as live vaccine vectors; and continuing to develop the use of the LLO as a component of a fusion protein based immunotherapy.
These activities may require significant financial resources, as well as areas of expertise beyond those readily available. In
order to provide additional resources and capital, we may enter into research, collaborative or commercial partnerships, joint
ventures, or other arrangements with competitive or complementary companies, including major international pharmaceutical companies
or universities.
Recent Developments
Equity Enhancement Program
On October 26, 2012, we
entered into a Common Stock Purchase Agreement, which we refer to as the Purchase Agreement, with Hanover Holdings I, LLC, a
New York limited liability company, which we refer to as Hanover, whereby we may, subject to certain customary conditions,
pursuant to a financing arrangement that is sometimes referred to as a committed equity line financing facility, which we
refer to this prospectus as the Equity Enhancement Program, require Hanover to purchase up to $10.0 million of shares of
our common stock over the 24-month term following the effectiveness of the resale registration statement described below.
Over the 24-month term following the effectiveness of the resale registration statement, we generally have the right, but not
the obligation, to direct Hanover to periodically purchase shares of our common stock in specific amounts under
certain conditions at our sole discretion. The purchase price for such shares of common stock will be the higher of (i) the
minimum price, which we refer to as the Floor Price, set forth in our notice electing to effect such issuance, which we refer
to as the Draw Down Notice, and (ii) 90% of the arithmetic average of the five lowest closing sale prices of the common
stock during the applicable ten trading day pricing period (or, if less, the arithmetic average of all trading days with
closing sale prices in excess of the Floor Price), subject to adjustment upon an alternative transaction. Each trading day
with a closing sale price less than the Floor Price is excluded from the calculation of the purchase price and automatically
reduces the number of trading days in the applicable pricing period.
In consideration for Hanover's execution
and delivery of the Purchase Agreement, in connection with the execution and delivery of the Purchase Agreement, we have issued
Hanover 3,500,000 shares of our common stock, which we refer to as the Commitment Fee Shares. We have also agreed to issue Hanover
up to 1,800,000 additional shares of our common stock, which we refer to as the Maintenance Fee Shares, during any full calendar
quarter during the term of the Purchase Agreement, if no shares of common stock have been purchased or sold because we did not
deliver a Draw Down Notice to Hanover. The number of Maintenance Fee Shares to be delivered to Hanover, from time to time, with
respect to any calendar quarter, will be equal to approximately $15,000 worth of shares of common stock at a 10% discount to market.
The Purchase Agreement provides for indemnification
of Hanover and its affiliates in the event that Hanover incurs losses, liabilities, obligations, claims, contingencies, damages,
costs and expenses related to a breach by us of any of our representations and warranties under the Purchase Agreement or the other
related transaction documents or any action instituted against Hanover or its affiliates due to the transactions contemplated by
the Purchase Agreement or other transaction documents, subject to certain limitations.
In connection with the Purchase Agreement,
on October 26, 2012, we entered into a registration rights agreement with Hanover, which we refer to as the Registration Rights
Agreement, pursuant to which we granted to Hanover certain registration rights related to the Commitment Fee Shares, the Maintenance
Fee Shares, and the shares issuable under the Purchase Agreement, which we refer to as the Registrable Securities. Under the Registration
Rights Agreement, we agreed to prepare and file with the SEC one or more registration statements for the purpose of registering
the resale of the Registrable Securities. We agreed to file the initial registration statement with the SEC within 12 calendar
days of the Purchase Agreement and to use our commercially reasonable efforts to cause such registration statement to be declared
effective within 90 calendar days of the Purchase Agreement (120 calendar days if the registration statement is reviewed by the
SEC).
We also agreed, among other things, to indemnify
Hanover from certain liabilities and fees and expenses of Hanover incident to our obligations under the Registration Rights Agreement,
including certain liabilities under the Securities Act. Hanover has agreed to indemnify us and hold harmless each of our directors,
officers and persons who control us against certain liabilities that may be based upon written information furnished by Hanover
to us for inclusion in a registration statement pursuant to the Registration Rights Agreement, including certain liabilities under
the Securities Act of 1933, as amended.
For a more detailed description of the
Equity Enhancement Program see "Equity Enhancement Program" on page 17 below.
iii
Private Placements of Convertible Notes to Hanover
On September 19, 2012, in a private placement
pursuant to a note purchase agreement, we issued Hanover a convertible promissory note in the aggregate principal amount of $132,500,
for a purchase price of $132,500, which we refer to as the Initial Hanover PIPE Note. On October 19, 2012, in a private placement
pursuant to a note purchase agreement, we issued Hanover a convertible promissory note in the aggregate principal amount of $132,500,
for a purchase price of $132,500, which we refer to as the Second Hanover PIPE Note, which, together with the Initial Hanover PIPE
Note we refer to as the Hanover PIPE Notes. The Hanover PIPE Notes bear interest at a rate of 12%, which interest accrues, but
does not become payable until maturity or acceleration of the principal of such Hanover PIPE Notes. The Hanover PIPE Notes are
convertible into shares of our common stock at a conversion price equal to 65% of the arithmetic average of the five lowest closing
trading prices for the common stock during the 10 trading day period ending on the latest complete trading day prior to the applicable
conversion date. The Hanover PIPE Notes mature eight months from their respective issuance dates. To the extent Hanover does not
elect to convert the Hanover PIPE Notes as described above, the principal amount and interest of such Hanover PIPE Notes shall
be payable in cash at maturity. The Hanover PIPE Notes may be converted at any time by Hanover, at its option, in whole or in part.
The Hanover PIPE Notes include a limitation on conversion, which provides that at no time will Hanover be entitled to convert any
portion of the Hanover PIPE Notes to the extent that after such conversion Hanover (together with its affiliates) would beneficially
own more than 4.99% of the outstanding shares of the common stock as of such date.
Other Hanover Related Transactions
In October 2012, pursuant to the terms
of various Assignment Agreements, which we refer to as the Assignment Agreements, Magna Group, LLC, an affiliate of Hanover, which
we refer to as Magna, acquired $400,075.88 in aggregate principal amount of our outstanding convertible notes from certain third
parties and entered into agreements to acquire an additional $340,522.90 in aggregate principal amount of our outstanding convertible
notes from other third parties. Pursuant to the terms of such Assignment Agreements, we delivered two convertible notes to Magna
in an aggregate principal amount of $740,598.74, in anticipation of the closing of all of the transactions contemplated by such
Assignment Agreements. On October 25, 2012, the convertible note in the aggregate principal amount of $617,722.92 previously delivered
to Magna was exchanged for a new convertible note in the aggregate principal amount of $400,075.77, convertible into share of
common stock, which we refer to as the Magna Exchange Note, to reflect such portion of the convertible notes actually issued as
of October 25, 2012 pursuant to the Assignment Agreements, and the remaining convertible note in the aggregate principal amount
of $122,875.82 previously delivered to Magna was returned to us and cancelled. The Magna Exchange Note bears interest at a rate
of 6%, which interest accrues, but does not become payable until maturity or acceleration of the principal of the Magna Exchange
Note. The Magna Exchange Note is convertible into shares of our common stock at a conversion price equal to 73% of the arithmetic
average of the five lowest closing trading prices for the common stock during the 10 trading day period ending on the lowest complete
trading day prior to the applicable conversion date. The Magna Exchange Note matures on October 17, 2013. To the extent Magna
does not elect to convert the Magna Exchange Note as described above, the principal amount and interest of the Magna Exchange
Note shall be payable in cash at maturity. Upon the closing of the remaining transactions contemplated by such applicable Assignment
Agreements, we are obligated to issue additional convertible notes in the form of the Magna Exchange Note with respect to the
outstanding $340,522.90 in aggregate principal amount of convertible notes held by the third party signatories to the other Assignment
Agreements, which we anticipate to occur during the fourth quarter of 2012.
iv
The Magna Exchange Note may be converted
at any time by Magna, at its option, in whole or in part. The Magna Exchange Note includes a limitation on conversion, which provides
that at no time will Magna be entitled to convert any portion of the Magna Exchange Note to the extent that after such conversion
Magna (together with its affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock as of
such date.
Warrants – 2007 Private Placement
On October 17, 2012, warrants to purchase
15,869,507 shares of our common stock expired unexercised. As of November 5, 2012, we have warrants to purchase 149,786,934 shares
of our common stock outstanding.
French Note
On September 27, 2012, in a private placement
pursuant to a note purchase agreement, we issued our employee Christine French a convertible promissory note in the aggregate principal
amount of $25,000, for a purchase price of $25,000, which we refer to as the French Note. The French Note bears interest at a rate
of 12%, compounded annually. The French Note is convertible into shares of our common stock at a conversion price equal to the
arithmetic average of the five lowest closing trading prices for the common stock during the 10 trading day period ending on the
latest complete trading day prior to the applicable conversion date. The French Note matures one month from its issuance date.
Additionally, Ms. French will receive a warrant, which we refer to as the French Warrant, to purchase such number of shares of
our common stock equal to 50% of such number of shares of our common stock issuable upon conversion of the French Note at an exercise
price equal to the conversion price then in effect. These warrants have not yet been issued. The French Warrant may be exercised
on a cashless basis under certain circumstances. The French Note and the French Warrant each include a limitation on conversion
or exercise, as applicable, which provides that at no time will Ms. French be entitled to convert any portion of the French Note
or French Warrant to the extent that after such conversion or exercise, as applicable, Ms. French (together with her affiliates)
would beneficially own more than 4.99% of the outstanding shares of the common stock as of such date.
Paterson Note
On September 25, 2012, in a private placement
pursuant to a note purchase agreement, we issued our affiliate Dr. Yvonne Paterson a convertible promissory note in the aggregate
principal amount of $100,000, for a purchase price of $100,000, which we refer to as the Paterson Note. The Paterson Note bears
interest at a rate of 12%, compounded annually. The Paterson Note is convertible into shares of our common stock at a conversion
price equal to the arithmetic average of the five lowest closing trading prices for the common stock during the 10 trading day
period ending on the latest complete trading day prior to the applicable conversion date. The Paterson Note matures one month
from its issuance date. Additionally, Dr. Paterson will receive a warrant, which we refer to as the Paterson Warrant, to purchase
such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable upon conversion of
the Patterson Note at an exercise price equal to the conversion price then in effect. These warrants have not yet been issued.
The Paterson Warrant may be exercised on a cashless basis under certain circumstances. The Paterson Note and the Paterson Warrant
each include a limitation on conversion or exercise, as applicable, which provides that at no time will Dr. Paterson be entitled
to convert any portion of the Paterson Note or Paterson Warrant to the extent that after such conversion or exercise, as applicable,
Dr. Paterson (together with her affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock
as of such date.
v
Asher Note
On September 11, 2012, in a private placement
pursuant to a note purchase agreement, we issued Asher Enterprises, Inc, which we refer to as Asher, a convertible promissory note
in the aggregate principal amount of $103,500, for a purchase price of $100,000, which we refer to as the Asher Note. The Asher
Note bears interest at a rate of 8%, which interest accrues, but does not become payable until maturity or acceleration of the
principal of the Asher Note. The Asher Note is convertible into shares of our common stock at a conversion price equal to 61% of
the arithmetic average of the five lowest closing trading prices for the common stock during the 10 trading day period ending on
the latest complete trading day prior to the applicable conversion date. The Asher Note matures on June 13, 2013, nine months from
its issuance date. The Asher Note may be converted by Asher, at its option, in whole or in part. The Asher Note includes a limitation
on conversion, which provides that at no time will Asher be entitled to convert any portion of the Asher Note to the extent that
after such conversion Asher (together with its affiliates) would beneficially own more than 4.99% of the outstanding shares of
the common stock as of such date.
August 2012 Note
On August 27, 2012, in a private placement
pursuant to a note purchase agreement, we issued JMJ Financial a convertible promissory note in the aggregate principal amount
of $100,000 for a purchase price of $100,000, which we refer to as the August 2012 Note. The August 2012 Note is initially convertible
at a per share conversion price equal to $0.15. In addition, if the August 2012 Note is converted after November 30, 2012 and the
market price of our common stock is less than $0.16 per share on the date of conversion, then the conversion price shall equal
95% of the arithmetic average of the three lowest closing trading prices for the common stock during the 15 trading day period
ending on the latest complete trading day prior to the applicable conversion date. The August 2012 Note matures on August 29, 2013.
To the extent JMJ Financial does not elect to convert the August 2012 Note as described above, the principal amount and interest
of such note shall be payable in cash at maturity. The August 2012 Note may be converted by JMJ Financial, at its option, in whole
or in part. The August 2012 Note includes a limitation on conversion, which provides that at no time will JMJ Financial be entitled
to convert any portion of the August 2012 Note to the extent that after such conversion JMJ Financial (together with its affiliates)
would beneficially own more than 4.99% of the outstanding shares of the common stock as of such date. Pursuant to the terms of
the August 2012 Note, we agreed to register up to 3,250,000 shares of our common stock which may be issuable upon conversion of
the August 2012 Note with the SEC. These shares were registered on August 31, 2012.
JMJ August 2012 Settlement Agreement
On August 27, 2012, we entered into a settlement
agreement with JMJ Financial pursuant to which we issued to JMJ Financial 4,076,923 shares of our common stock for the mutual release
of any claims held by our company or JMJ Financial relating to our failure to file the registration statement related to the May
2012 issuance of 4,000,000 shares of our common stock to JMJ Financial and have the registration statement declared effective by
certain prescribed deadlines.
Amendment to Certificate of Incorporation
On August 16, 2012, we filed a certificate
of amendment to our amended and restated certificate of incorporation with the Delaware Secretary of State to increase the total
number of authorized shares of capital stock available for issuance from 505,000,000, consisting of 500,000,000 shares of our common
stock and 5,000,000 shares of "blank check" preferred stock, to 1,005,000,000, consisting of 1,000,000,000 shares of
our common stock and 5,000,000 shares of "blank check" preferred stock. The certificate of amendment became effective
upon filing.
vi
Patton Note
On August 2, 2012, in a private
placement pursuant to a note purchase agreement, we issued Dr. James Patton, a member of our board of directors, a convertible
promissory note, which we refer to as the Patton Note, in the principal amount of $66,667 for a purchase price of $50,000. The
Patton Note was issued with an original issue discount of 25%. Dr. Patton paid $0.75 for each $1.00 of principal amount of the
Patton Note purchased. The Patton Note is convertible into shares of our common stock at a per share conversion price equal to
$0.15. Additionally, Dr. Patton received a warrant, which we refer to as the Patton Warrant, to purchase such number of shares
of our common stock equal to 50% of such number of shares of our common stock issuable upon conversion of the Patton Note at an
exercise price of $0.15 per share. The Patton Note and Patton Warrant also provide that on December 1, 2012, solely to the extent
the conversion price of the Patton Note or the exercise price of the Patton Warrant, as applicable, is less than the Market Price
(as defined in the Patton Note or the Patton Warrant, as applicable), such conversion price or exercise price, as applicable,
shall be reduced to such Market Price. The Patton Note matures on August 2, 2013. We may redeem the Patton Note under certain
circumstances. The Patton Warrant is exercisable at any time on or before August 2, 2017. The Patton Warrant may be exercised
on a cashless basis under certain circumstances. The Patton Note and the Patton Warrant each include a limitation on conversion
or exercise, as applicable, which provides that at no time will Dr. Patton be entitled to convert any portion of the Patton Note
or Patton Warrant to the extent that after such conversion or exercise, as applicable, Dr. Patton (together with his affiliates)
would beneficially own more than 4.99% of the outstanding shares of the common stock as of such date.
vii
Our History
We were originally incorporated
in the State of Colorado on June 5, 1987 under the name Great Expectations, Inc.  We were administratively dissolved
on January 1, 1997 and reinstated on June 18, 1998 under the name Great Expectations and Associates, Inc.  In 1999,
we became a reporting company under the Securities Exchange Act of 1934, as amended.  We were a publicly-traded "shell"
company without any business until November 12, 2004 when we acquired Advaxis, Inc., a Delaware corporation, through a Share Exchange
and Reorganization Agreement, dated as of August 25, 2004, which we refer to as the Share Exchange, by and among Advaxis, the
stockholders of Advaxis and us.  As a result of the Share Exchange, Advaxis became our wholly-owned subsidiary and our
sole operating company.  On December 23, 2004, we amended and restated our articles of incorporation and changed our
name to Advaxis, Inc.  On June 6, 2006, our shareholders approved the reincorporation of our company from Colorado to
Delaware by merging the Colorado entity into our wholly-owned Delaware subsidiary. Our date of inception, for financial statement
purposes, is March 1, 2002. Our statements of income and cash flows disclose our accumulated losses and net cash increases (decreases),
respectively since inception.
viii
Principal Executive Offices
Our principal executive offices
are located at 305 College Road East, Princeton, New Jersey 08540 and our telephone number is (609) 452-9813.  We maintain
a website at
www.advaxis.com
which contains descriptions of our technology, our drugs and the trial status of each drug.  The
information on our website is not incorporated into this prospectus.
ix
THE OFFERING
Shares of common stock offered by us
None
Shares of common stock which may be sold by
the selling stockholder
The selling shareholder named in this prospectus may offer and sell up to 115,000,000  shares of our common
    stock
(1)
.
Use of proceeds
We will not receive any proceeds from the resale of the shares of common stock offered by the selling stockholder
    as all of such proceeds will be paid to the selling stockholder.
Risk factors
The purchase of our common stock involves a high degree of risk.  You should carefully review and
    consider the "Risk Factors" section of this prospectus for a discussion of factors to consider before deciding
    to invest in shares of our common stock.
OTC Bulletin Board market symbol
ADXS.OB
(1) These shares represent
approximately 29.0% of our currently outstanding shares of common stock (based on 396,938,817 shares of common stock
outstanding as of November 5, 2012). These shares also represent approximately 17.5% of our currently outstanding shares of
common stock (based on 655,356,226 shares of common stock outstanding as of November 5, 2012) on a fully diluted basis.
1
RISK FACTORS
An investment in our common stock is
highly speculative, involves a high degree of risk and should be made only by investors who can afford a complete loss of their
investment.  You should carefully consider, together with the other matters referred to in this prospectus, the following
risk factors before you decide whether to buy our common stock.
Risks Related to our Business
We are a development stage company.
We are an early development stage biotechnology
company with a history of losses and can provide no assurance as to future operating results.  As a result of losses
which will continue throughout our development stage, we may exhaust our financial resources and be unable to complete the development
of our production.  Our deficit will continue to grow during our drug development period.
We have sustained losses from operations
in each fiscal year since our inception, and we expect losses to continue for the indefinite future, due to the substantial investment
in research and development.  As of October 31, 2011 and July 31, 2012, we had an accumulated deficit of $35,531,740
and $45,611,368, respectively and shareholders' deficiency of $12,279,713 and $4,999,243, respectively.  We expect
to spend substantial additional sums on the continued administration and research and development of proprietary products and
technologies with no certainty that our immunotherapies will become commercially viable or profitable as a result of these expenditures.
As a result of our current lack of financial liquidity
and negative stockholders equity, our auditors have expressed substantial concern about our ability to continue as a "going
concern" .
Our limited capital resources and operations
to date have been funded primarily with the proceeds from public and private equity and debt financings, NOL and Research tax
credits and income earned on investments and grants. Based on our currently available cash, we do not have adequate cash on hand
to cover our anticipated expenses for the next 12 months. If we fail to raise a significant amount of capital, we may need to
significantly curtail operations, cease operations or seek federal bankruptcy protection in the near future. These conditions
have caused our auditors to raise substantial doubt about our ability to continue as a going concern.  Consequently,
the audit report prepared by our independent public accounting firm relating to our financial statements for the year ended October
31, 2011 included a going concern explanatory paragraph.
There can be no assurance that we will receive funding
from Optimus in connection with the Series B preferred equity financing and if the average closing sale price of our common stock
on each tranche notice date is less than $0.15 per share, we may not be able to require Optimus to purchase the entire $7.5 million
of Series B preferred stock issuable under the Series B purchase agreement, as amended.
On July 19, 2010, we entered into a
Series B preferred stock purchase agreement, which we refer to as the Series B purchase agreement, with Optimus Capital
Partners, LLC, which we refer to as Optimus, which was subsequently amended on April 4, 2011. Pursuant to the Series B
purchase agreement, Optimus remains obligated to purchase $2.84 million of our non-convertible, redeemable Series B preferred
stock, which we refer to as our Series B preferred stock, at a price of $10,000 per share from time to time, subject to our
ability to effect and maintain an effective registration statement for the remaining 25,610,038 shares underlying the
warrants issued to an affiliate of Optimus in connection with the transaction.  As of November 5, 2012, Optimus had
purchased an aggregate of 466 shares of Series B preferred stock and remains obligated, from time to time until July 19,
2013, to purchase up to an additional 284 shares of Series B preferred stock, for an aggregate purchase price of $2,840,000,
upon notice from us to Optimus, if certain conditions set forth in the Series B purchase agreement, as amended, are
satisfied, including among other things that: (i) we must be in compliance with our SEC reporting obligations, (ii) our
common stock must be quoted on an eligible trading market, (iii) a material adverse effect relating to, among other things,
our results of operations, assets, business or financial condition must not have occurred since July 19, 2010, other than
losses incurred in the ordinary course of business, (iv) we must not be in default under any material agreement, (v) Optimus
and its affiliates must not own more than 9.99% of our outstanding common stock, and (vi) we must comply with certain other
requirements set forth in the Series B purchase agreement, as amended.  If we fail to comply with any of these
requirements, Optimus will not be obligated to purchase our Series B preferred stock and we will not receive any funding from
Optimus. Moreover, if we exercise our option to require Optimus to purchase our Series B preferred stock, and our common
stock has a closing price of less than $0.15 per share on the trading day immediately preceding our delivery of the exercise
notice, we may trigger at closing certain anti-dilution protection provisions in certain outstanding warrants that would
result in an adjustment to the number and price of certain outstanding warrants.
2
In connection with our Series B preferred
equity financing, we originally issued to an affiliate of Optimus a three-year warrant to purchase up to 40,500,000 shares of
our common stock, at an initial exercise price of $0.25 per share, of which no shares of our common stock remain available to
purchase.  In connection with the amendment to the Series B purchase agreement, we subsequently issued to an affiliate
of Optimus a three-year warrant to purchase up to an additional 25,560,000 shares of our common stock, at an initial exercise
price of $0.15 per share.  The warrants provide that on each tranche notice date under the Series B purchase agreement,
as amended, (i) that portion of the warrants, in the aggregate, equal to 135% of the tranche amount will vest and become exercisable
(and such vested portion may be exercised at any time during the exercise period on or after such tranche notice date) and (ii)
the exercise price will be adjusted to the closing sale price of a share of our common stock on such tranche notice date.  We
are not permitted to deliver a tranche notice under the Series B purchase agreement, as amended, and require Optimus to purchase
shares of Series B preferred stock if the number of registered shares underlying the warrant issued to the affiliate of Optimus
is insufficient to cover the portion of the warrant that will vest and become exercisable in connection with such tranche notice.  If
the average closing sale price of our common stock on each tranche notice date is less than $0.15 per share, we may not be able
to require Optimus to purchase the remaining $2.84 million of Series B preferred stock issuable under the Series B purchase agreement,
as amended, without issuing additional warrant shares.  We cannot assure you that we will be able to timely effect and
maintain a registration statement for the remaining 25,560,000 warrant shares  (or any additional warrant shares that may
be necessary) so as to permit us to require Optimus to purchase the remaining $2,840,000 of Series B preferred stock under the
Series B purchase agreement, as amended.
Our business will require substantial additional investment
that we have not yet secured, and our failure to raise capital and/or pursue partnering opportunities will materially adversely
affect our business, financial condition and results of operations.
We expect to continue to spend substantial
amounts on research and development, including conducting clinical trials for our immunotherapies. However, we will not have sufficient
resources to develop fully any new products or technologies unless we are able to raise substantial additional financing on acceptable
terms, secure funds from new partners or consummate a preferred equity financing under the Series B purchase agreement, as amended.
We cannot be assured that financing will be available at all.  Our failure to raise a significant amount of capital
in the near future will materially adversely affect our business, financial condition and results of operations, and we may need
to significantly curtail operations, cease operations or seek federal bankruptcy protection in the near future.  Any
additional investments or resources required would be approached, to the extent appropriate in the circumstances, in an incremental
fashion to attempt to cause minimal disruption or dilution.  Any additional capital raised through the sale of equity
or convertible debt securities will result in dilution to our existing stockholders.  No assurances can be given, however,
that we will be able to achieve these goals or that we will be able to continue as a going concern.
We have significant indebtedness which may restrict our
business and operations, adversely affect our cash flow and restrict our future access to sufficient funding to finance desired
growth.
As of November 5, 2012, our
total outstanding indebtedness was approximately $3.2 million, which included the face value of all our outstanding junior
bridge notes in the amount of approximately $0.2 million, a note outstanding to our chief executive officer in the amount
of approximately $0.4 million,  debt acquired in October 2011 with a remaining aggregate balance of approximately $0.06
million, debt acquired in January 2012 with a remaining aggregate balance of approximately $0.2 million, debt acquired in May
2012 with a remaining aggregate principal amount of approximately $1.0 million, debt acquired in July and August 2012 with a
remaining aggregate principal balance at approximately $0.4 million and debt acquired in September and October 2012 with a
remaining aggregate principal amount of approximately $0.9 million. Approximately $1.0 million of the aggregate $3.2 million
is due on May 18, 2013. Maturity dates for the remaining $2.2 million range between October 2011 and on or about September
30, 2014. Certain of our indebtedness contain restrictive covenants that limit our ability to issue certain types of
indebtedness, which may prevent us from obtaining additional indebtedness on commercially reasonable terms, or at all.
 We dedicate a substantial portion of our cash to pay interest and principal on our debt. If we are not able to service
our debt, we would need to refinance all or part of that debt, sell assets, borrow more money or sell securities, which we
may not be able to do on commercially reasonable terms, or at all.  In addition, our failure to timely repay (or
extend) amounts due and owing under our outstanding junior bridge notes issued in October 2009 may trigger the anti-dilution
protection provisions in certain of our warrants, in which case holders of our common stock will experience significant additional dilution.
The terms of our notes include customary
events of default and covenants that restrict our ability to incur additional indebtedness. These restrictions and covenants may
prevent us from engaging in transactions that might otherwise be considered beneficial to us. A breach of the provisions of our
indebtedness could result in an event of default under our outstanding notes.  If an event of default occurs under our
notes (after any applicable notice and cure periods), the holders would be entitled to accelerate the repayment of amounts outstanding,
plus accrued and unpaid interest.   In the event of a default under our senior indebtedness, the holders could
also foreclose against the assets securing such obligations.  In the event of a foreclosure on all or substantially
all of our assets, we may not be able to continue to operate as a going concern.
Our limited operating history does not afford investors
a sufficient history on which to base an investment decision.
We commenced our
Lm
-LLO based immunotherapy
development business in February 2002 and have existed as a development stage company since such time.  Prior thereto
we conducted no business.  Accordingly, we have a limited operating history.  Investors must consider the
risks and difficulties we have encountered in the rapidly evolving vaccine and therapeutic biopharmaceutical industry.  Such
risks include the following:
·
competition from companies that have substantially greater assets and financial resources than we have;
·
need for acceptance of our immunotherapies;
·
ability to anticipate and adapt to a competitive market and rapid technological developments;
3
·
amount and timing of operating costs and capital expenditures relating to expansion of our business, operations and infrastructure;
·
need to rely on multiple levels of complex financing agreements with outside funding due to the length of drug development
    cycles and governmental approved protocols associated with the pharmaceutical industry; and
·
dependence upon key personnel including key independent consultants and advisors.
We cannot be certain that our strategy
will be successful or that we will successfully address these risks.  In the event that we do not successfully address
these risks, our business, prospects, financial condition and results of operations could be materially and adversely affected.  We
may be required to reduce our staff, discontinue certain research or development programs of our future products and cease to
operate.
We can provide no assurance of the successful and timely
development of new products.
Our immunotherapies are at various stages
of research and development. Further development and extensive testing will be required to determine their technical feasibility
and commercial viability. Our success will depend on our ability to achieve scientific and technological advances and to translate
such advances into licensable, FDA-approvable, commercially competitive products on a timely basis. Immunotherapies and vaccines
that we may develop are not likely to be commercially available until five to ten or more years. The proposed development schedules
for our immunotherapies may be affected by a variety of factors, including technological difficulties, clinical trial failures,
regulatory hurdles, competitive products, intellectual property challenges and/or changes in governmental regulation, many of
which will not be within our control. Any delay in the development, introduction or marketing of our products could result either
in such products being marketed at a time when their cost and performance characteristics would not be competitive in the marketplace
or in the shortening of their commercial lives. In light of the long-term nature of our projects, the unproven technology involved
and the other factors described elsewhere in "Risk Factors," there can be no assurance that we will be able to successfully
complete the development or marketing of any new products.
Our research and development expenses
are subject to uncertainty.
Factors affecting our research and development
expenses include, but are not limited to:
·
competition from companies that have substantially greater assets and financial resources than we have;
·
need for acceptance of our immunotherapies;
·
ability to anticipate and adapt to a competitive market and rapid technological developments;
·
amount and timing of operating costs and capital expenditures relating to expansion of our business, operations and infrastructure;
·
need to rely on multiple levels of outside funding due to the length of drug development cycles and governmental approved
    protocols associated with the pharmaceutical industry; and
·
dependence upon key personnel including key independent consultants and advisors.
We are subject to numerous risks inherent in conducting
clinical trials.
We outsource the management of our clinical
trials to third parties. Agreements with clinical investigators and medical institutions for clinical testing and with other third
parties for data management services, place substantial responsibilities on these parties which, if unmet, could result in delays
in, or termination of, our clinical trials. For example, if any of our clinical trial sites fail to comply with FDA-approved good
clinical practices, we may be unable to use the data gathered at those sites. If these clinical investigators, medical institutions
or other third parties do not carry out their contractual duties or obligations or fail to meet expected deadlines, or if the
quality or accuracy of the clinical data they obtain is compromised due to their failure to adhere to our clinical protocols or
for other reasons, our clinical trials may be extended, delayed or terminated, and we may be unable to obtain regulatory approval
for or successfully commercialize agents such as ADXS-HPV. We are not certain that we will successfully recruit enough patients
to complete our clinical trials nor that we will reach our primary endpoints. Delays in recruitment, lack of clinical benefit
or unacceptable side effects would delay or prevent the initiation of the Phase 3 trials of ADXS-HPV.
We or our regulators may suspend or terminate
our clinical trials for a number of reasons.  We may voluntarily suspend or terminate our clinical trials if at any
time we believe they present an unacceptable risk to the patients enrolled in our clinical trials or do not demonstrate clinical
benefit.  In addition, regulatory agencies may order the temporary or permanent discontinuation of our clinical trials
at any time if they believe that the clinical trials are not being conducted in accordance with applicable regulatory requirements
or that they present an unacceptable safety risk to the patients enrolled in our clinical trials.
4
Our clinical trial operations are subject
to regulatory inspections at any time.  If regulatory inspectors conclude that we or our clinical trial sites are not
in compliance with applicable regulatory requirements for conducting clinical trials, we may receive reports of observations or
warning letters detailing deficiencies, and we will be required to implement corrective actions.  If regulatory agencies
deem our responses to be inadequate, or are dissatisfied with the corrective actions we or our clinical trial sites have implemented,
our clinical trials may be temporarily or permanently discontinued, we may be fined, we or our investigators may be precluded
from conducting any ongoing or any future clinical trials, the government may refuse to approve our marketing applications or
allow us to manufacture or market our products, and we may be criminally prosecuted.
The successful development of biopharmaceuticals is highly
uncertain.
Successful development of biopharmaceuticals
is highly uncertain and is dependent on numerous factors, many of which are beyond our control.  Immunotherapies that
appear promising in the early phases of development may fail to reach the market for several reasons including:
·
Preclinical study results that may show the immunotherapy to be less effective than desired (e.g., the study failed to
    meet its primary objectives) or to have harmful or problematic side effects;
·
Clinical study results that may show the immunotherapy to be less effective than expected (e.g., the study failed to meet
    its primary endpoint) or to have unacceptable side effects;
·
Failure to receive the necessary regulatory approvals or a delay in receiving such approvals. Among other things, such
    delays may be caused by slow enrollment in clinical studies, length of time to achieve study endpoints, additional time requirements
    for data analysis, or Biologics License Application preparation, discussions with the FDA, an FDA request for additional preclinical
    or clinical data, or unexpected safety or manufacturing issues;
·
Manufacturing costs, formulation issues, pricing or reimbursement issues, or other factors that make the immunotherapy
    uneconomical; and
·
The proprietary rights of others and their competing products and technologies that may prevent the immunotherapy from
    being commercialized.
Success in preclinical and early clinical
studies does not ensure that large-scale clinical studies will be successful.  Clinical results are frequently susceptible
to varying interpretations that may delay, limit or prevent regulatory approvals. The length of time necessary to complete clinical
studies and to submit an application for marketing approval for a final decision by a regulatory authority varies significantly
from one immunotherapy to the next, and may be difficult to predict.
We must comply with significant government regulations.
The research and development, manufacture
and marketing of human therapeutic and diagnostic products are subject to regulation, primarily by the FDA in the U.S. and by
comparable authorities in other countries.  These national agencies and other federal, state, local and foreign entities
regulate, among other things, research and development activities (including testing in animals and in humans) and the testing,
manufacturing, handling, labeling, storage, record keeping, approval, advertising and promotion of the products that we are developing.  Noncompliance
with applicable requirements can result in various adverse consequences, including delay in approving or refusal to approve product
licenses or other applications, suspension or termination of clinical investigations, revocation of approvals previously granted,
fines, criminal prosecution, recall or seizure of products, injunctions against shipping products and total or partial suspension
of production and/or refusal to allow a company to enter into governmental supply contracts.
The process of obtaining requisite FDA
approval has historically been costly and time-consuming. Current FDA requirements for a new human biological product to be marketed
in the U.S. include: (1) the successful conclusion of preclinical laboratory and animal tests, if appropriate, to gain preliminary
information on the product's safety; (2) filing with the FDA of an Investigational New Drug Application, which we refer
to as an IND, to conduct human clinical trials for drugs or biologics; (3) the successful completion of adequate and well-controlled
human clinical trials to establish the safety and efficacy of the investigational new drug for its recommended use; and (4) filing
by a company and acceptance and approval by the FDA of a Biologic License Application, which we refer to as a BLA, for a biological
investigational new drug, to allow commercial distribution of a biologic product. A delay in one or more of the procedural steps
outlined above could be harmful to us in terms of getting our immunotherapies through clinical testing and to market.
5
We can provide no assurance that our investigational
new drugs will obtain regulatory approval or that the results of clinical studies will be favorable.
In February 2006, we received permission
from the appropriate governmental/regulatory agencies in Israel, Mexico and Serbia to conduct a Phase 1 clinical study of ADXS-HPV,
our first
Lm
-LLO based immunotherapy targeting HPV16-E7 to determine safety and the maximum tolerated dose in patients
with recurrent or refractory cervical cancer. The study was completed in the fiscal quarter ended January 31, 2008. The next step
was to test ADXS-HPV in the U.S. which required the filing of an IND with the FDA. The filing included the required preclinical
animal pharmacology and toxicology studies, manufacturing information, proposed clinical protocol and investigator information
as well as the data generated from the Phase 1 study. Unlike the Phase 2 study patient population of late stage cervical cancer
patients, the clinical protocol submitted in the IND proposed to evaluate the safety and efficacy of ADXS-HPV in healthy young
patients with CIN 2/3, the pre-neoplastic stage of cervical cancer. On January 6, 2009 we received permission from the FDA to
conduct the Phase 2 clinical trial and the trial was initiated in March 2010. However, even though we were allowed to initiate
this trial, as with any investigational new drug under an IND, we are always at risk of a clinical hold. There can be delays in
obtaining FDA or any other necessary regulatory approvals of any investigational new drug and failure to receive such approvals
would have an adverse effect on the investigational new drug's potential commercial success and on our business, prospects,
financial condition and results of operations. In addition, it is possible that an approved product may be found to be ineffective
or unsafe due to conditions or facts which arise after development has been completed and regulatory approvals have been obtained.
In this event, we may be required to withdraw such product from the market. To the extent that our success will depend on any
regulatory approvals from governmental authorities outside of the U.S. that perform roles similar to that of the FDA, uncertainties
similar to those stated above will also exist.
We rely upon patents to protect our technology.  We
may be unable to protect our intellectual property rights and we may be liable for infringing the intellectual property rights
of others.
Our ability to compete effectively will
depend on our ability to maintain the proprietary nature of our technologies, including the
Lm
-LLO based immunotherapy
platform technology, and the proprietary technology of others with whom we have entered into collaboration and licensing agreements.
As of November 5, 2012 we have 39
patents that have been issued and licenses for 39 patent applications that are pending (including the 23 patent applications
obtained in May 2010 and 2 patent applications obtained in November 2011).  We have licensed most of these patents
and applications from Penn and we have obtained the rights to all future patent applications originating in the laboratories
of Dr. Yvonne Paterson and Dr. Fred Frankel.  Further, we rely on a combination of trade secrets and nondisclosure,
and other contractual agreements and technical measures to protect our rights in the technology.  We depend upon
confidentiality agreements with our officers, employees, consultants, and subcontractors to maintain the proprietary nature
of the technology. These measures may not afford us sufficient or complete protection, and others may independently develop
technology similar to ours, otherwise avoid the confidentiality agreements, or produce patents that would materially and
adversely affect our business, prospects, financial condition, and results of operations.  Such competitive events,
technologies and patents may limit our ability to raise funds, prevent other companies from collaborating with us, and in
certain cases prevent us from further developing our technology due to third party patent blocking rights.
We are aware of Aduro Biotech, a company
comprised in part of former Cerus and Anza (two former biotech companies) employees that is investigating
Listeria
vaccines.
We believe that through our exclusive worldwide license with Penn we have the earliest known and dominant patent positions in
the U.S. and rest of world for the use of recombinant
Listeria monocytogenes
expressing fusion proteins or tumor antigens
as an immunotherapy for the treatment of infectious diseases and cancer.  We successfully defended our intellectual
property by contesting a challenge made by Anza to our patent position in Europe on a claim not available in the U.S.  The
European Patent Office, which we refer to as the EPO, Board of Appeals in Munich, Germany has ruled in favor of The Trustees of
Penn and its exclusive licensee Advaxis and reversed a patent ruling that revoked a technology patent that had resulted from an
opposition filed by Anza.  The ruling of the EPO Board of Appeals is final and cannot be appealed.  The granted
claims, the subject matter of which was discovered by Dr. Yvonne Paterson, scientific founder of Advaxis, are directed to the
method of preparation and composition of matter of recombinant bacteria expressing tumor antigens for treatment of patients with
cancer.  Based on searches of publicly available databases, we do not believe that Anza, Aduro or any other third party
owns any published
Listeria
patents or has any issued patent claims that might materially and adversely affect our ability
to operate our business as currently contemplated in the field of recombinant
Listeria
monocytogenes.  Additionally,
our proprietary position is that the issued patents and licenses for pending applications restricts anyone from using plasmid
based
Listeria
constructs, or those that are bioengineered to deliver antigens fused to LLO, ActA, or fragments of LLO
or ActA.
We are dependent upon our license agreement with Penn;
if we fail to make payments due and owing to Penn under our license agreement, our business will be materially and adversely affected.
Pursuant to the terms of our Second and
Third Amendment Agreements with Penn, as amended, we have acquired exclusive worldwide licenses for an additional 25 patent applications
related to our proprietary
Listeria
vaccine technology. As of November 5, 2012, we owed Penn approximately $510,000
in patent expenses (including licensing fees).  We can provide no assurance that we will be able to make all payments due
and owing thereunder, that such licenses will not be terminated or expire during critical periods, that we will be able to obtain
licenses for other rights which may be important to us, or, if obtained, that such licenses will be obtained on commercially reasonable
terms.
6
If we are unable to maintain and/or obtain
licenses, we may have to develop alternatives to avoid infringing on the patents of others, potentially causing increased costs
and delays in drug development and introduction or precluding the development, manufacture, or sale of planned products. Some
of our licenses provide for limited periods of exclusivity that require minimum license fees and payments and/or may be extended
only with the consent of the licensor. We can provide no assurance that we will be able to meet these minimum license fees in
the future or that these third parties will grant extensions on any or all such licenses. This same restriction may be contained
in licenses obtained in the future. Additionally, we can provide no assurance that the patents underlying any licenses will be
valid and enforceable. To the extent any products developed by us are based on licensed technology, royalty payments on the licenses
will reduce our gross profit from such product sales and may render the sales of such products uneconomical.
We have no manufacturing, sales, marketing or distribution
capability and we must rely upon third parties for such.
We do not intend to create facilities to
manufacture our products and therefore are dependent upon third parties to do so. We currently have agreements with Recipharm
Cobra Biologics Limited, which we refer to as Recipharm Cobra, and Vibalogics GmbH for production of our immunotherapies for research
and development and testing purposes. Our reliance on third parties for the manufacture of our drug substance, investigational
new drugs and approved products creates a dependency that could severely disrupt our research and development, our clinical testing,
and ultimately our sales and marketing efforts if the source of such supply proves to be unreliable or unavailable. If the contracted
manufacturing source is unreliable or unavailable, we may not be able to manufacture clinical drug supplies of our immunotherapies,
and our preclinical and clinical testing programs may not be able to move forward and our entire business plan could fail.
If we are unable to establish or manage strategic
collaborations in the future, our revenue and drug development may be limited.
Our strategy includes eventual substantial
reliance upon strategic collaborations for marketing and commercialization of ADXS-HPV, and we may rely even more on strategic
collaborations for research, development, marketing and commercialization of our other immunotherapies. To date, we have not entered
into any strategic collaborations with third parties capable of providing these services although we have been heavily reliant
upon third party outsourcing for our clinical trials execution and production of drug supplies for use in clinical trials. In
addition, we have not yet licensed, marketed or sold any of our immunotherapies or entered into successful collaborations for
these services in order to ultimately commercialize our immunotherapies. Establishing strategic collaborations is difficult and
time-consuming. Our discussion with potential collaborators may not lead to the establishment of collaborations on favorable terms,
if at all. For example, potential collaborators may reject collaborations based upon their assessment of our financial, clinical,
regulatory or intellectual property position. If we successfully establish new collaborations, these relationships may never result
in the successful development or commercialization of our immunotherapies or the generation of sales revenue. To the extent that
we enter into co-promotion or other collaborative arrangements, our product revenues are likely to be lower than if we directly
marketed and sold any products that we may develop.
Management of our relationships with our
collaborators will require:
·
significant time and effort from our management team;
·
coordination of our research and development programs with the research and development priorities of our collaborators;
    and
·
effective allocation of our resources to multiple projects.
If we continue to enter into research and
development collaborations at the early phases of drug development, our success will in part depend on the performance of our
corporate collaborators. We will not directly control the amount or timing of resources devoted by our corporate collaborators
to activities related to our immunotherapies. Our corporate collaborators may not commit sufficient resources to our research
and development programs or the commercialization, marketing or distribution of our immunotherapies. If any corporate collaborator
fails to commit sufficient resources, our preclinical or clinical development programs related to this collaboration could be
delayed or terminated. Also, our collaborators may pursue existing or other development-stage products or alternative technologies
in preference to those being developed in collaboration with us. Finally, if we fail to make required milestone or royalty payments
to our collaborators or to observe other obligations in our agreements with them, our collaborators may have the right to terminate
those agreements.
We may incur substantial liabilities from any product
liability claims if our insurance coverage for those claims is inadequate.
We face an inherent risk of product liability
exposure related to the testing of our immunotherapies in human clinical trials, and will face an even greater risk if the approved
products are sold commercially. An individual may bring a liability claim against us if one of the immunotherapies causes, or
merely appears to have caused, an injury. If we cannot successfully defend ourselves against the product liability claim, we will
incur substantial liabilities. Regardless of merit or eventual outcome, liability claims may result in:
·
decreased demand for our immunotherapies;
·
damage to our reputation;
7
·
withdrawal of clinical trial participants;
·
costs of related litigation;
·
substantial monetary awards to patients or other claimants;
·
loss of revenues;
·
the inability to commercialize immunotherapies; and
·
increased difficulty in raising required additional funds in the private and public capital markets.
We have insurance coverage on our clinical
trials for each clinical trial site. We do not have product liability insurance because we do not have products on the market.
We currently are in the process of obtaining insurance coverage and to expand such coverage to include the sale of commercial
products if marketing approval is obtained for any of our immunotherapies. However, insurance coverage is increasingly expensive
and we may not be able to maintain insurance coverage at a reasonable cost and we may not be able to obtain insurance coverage
that will be adequate to satisfy any liability that may arise.
We may incur significant costs complying with environmental
laws and regulations.
We and our contracted third parties will
use hazardous materials, including chemicals and biological agents and compounds that could be dangerous to human health and safety
or the environment.  As appropriate, we will store these materials and wastes resulting from their use at our or our
outsourced laboratory facility pending their ultimate use or disposal.  We will contract with a third party to properly
dispose of these materials and wastes.  We will be subject to a variety of federal, state and local laws and regulations
governing the use, generation, manufacture, storage, handling and disposal of these materials and wastes.  We may also
incur significant costs complying with environmental laws and regulations adopted in the future.
If we use biological and hazardous materials in a manner
that causes injury, we may be liable for damages.
Our research and development and manufacturing
activities will involve the use of biological and hazardous materials.  Although we believe our safety procedures for
handling and disposing of these materials will comply with federal, state and local laws and regulations, we cannot entirely eliminate
the risk of accidental injury or contamination from the use, storage, handling or disposal of these materials.  We do
not carry specific biological or hazardous waste insurance coverage, workers compensation or property and casualty and general
liability insurance policies which include coverage for damages and fines arising from biological or hazardous waste exposure
or contamination.  Accordingly, in the event of contamination or injury, we could be held liable for damages or penalized
with fines in an amount exceeding our resources, and our clinical trials or regulatory approvals could be suspended or terminated.
We need to attract and retain highly skilled personnel;
we may be unable to effectively manage growth with our limited resources.
As of November 5, 2012, we had 12
employees, all of which were full time employees.  We do not intend to significantly expand our operations and
staff unless we get adequate financing.  If we receive such funding then our new employees may include key
managerial, technical, financial, research and development and operations personnel who will not have been fully integrated
into our operations.  We will be required to expand our operational and financial systems significantly and to
expand, train and manage our work force in order to manage the expansion of our operations.  Our failure to fully
integrate any new employees into our operations could have a material adverse effect on our business, prospects, financial
condition and results of operations.
We operate under an agreement with AlphaStaff,
a professional employment organization that provides us with payroll and human resources services.  Our ability to attract
and retain highly skilled personnel is critical to our operations and expansion.  We face competition for these types
of personnel from other technology companies and more established organizations, many of which have significantly larger operations
and greater financial, technical, human and other resources than we have.  We may not be successful in attracting and
retaining qualified personnel on a timely basis, on competitive terms, or at all.  If we are not successful in attracting
and retaining these personnel, our business, prospects, financial condition and results of operations will be materially adversely
affected.  In such circumstances we may be unable to conduct certain research and development programs, unable to adequately
manage our clinical trials  and other products, and unable to adequately address our management needs.  In
addition, from time to time, we are unable to make payroll due to our lack of cash.
8
We depend upon our senior management and key consultants
and their loss or unavailability could put us at a competitive disadvantage.
We depend upon the efforts and abilities
of our senior executives, as well as the services of several key consultants, including Yvonne Paterson, Ph.D.  The
loss or unavailability of the services of any of these individuals for any significant period of time could have a material adverse
effect on our business, prospects, financial condition and results of operations.  We have not obtained, do not own,
nor are we the beneficiary of, key-person life insurance.
Risks Related to the Biotechnology / Biopharmaceutical Industry
The biotechnology and biopharmaceutical industries are
characterized by rapid technological developments and a high degree of competition.  We may be unable to compete with
more substantial enterprises.
The biotechnology and biopharmaceutical
industries are characterized by rapid technological developments and a high degree of competition.  Competition in the
biopharmaceutical industry is based significantly on scientific and technological factors.  These factors include the
availability of patent and other protection for technology and products, the ability to commercialize technological developments
and the ability to obtain governmental approval for testing, manufacturing and marketing.  We compete with specialized
biopharmaceutical firms in the U.S., Europe and elsewhere, as well as a growing number of large pharmaceutical companies that
are applying biotechnology to their operations.  Many biopharmaceutical companies have focused their development efforts
in the human therapeutics area, including cancer.  Many major pharmaceutical companies have developed or acquired internal
biotechnology capabilities or made commercial arrangements with other biopharmaceutical companies.  These companies,
as well as academic institutions and governmental agencies and private research organizations, also compete with us in recruiting
and retaining highly qualified scientific personnel and consultants.  Our ability to compete successfully with other
companies in the pharmaceutical field will also depend to a considerable degree on the continuing availability of capital to us.
We are aware of certain investigational
new drugs under development or approved products by competitors that are used for the prevention, diagnosis, or treatment of certain
diseases we have targeted for drug development. Various companies are developing biopharmaceutical products that have the potential
to directly compete with our immunotherapies even though their approach to may be different. The biotechnology and biopharmaceutical
industries are highly competitive, and this competition comes from both biotechnology firms and from major pharmaceutical companies,
including companies like: Aduro Biotech, Agenus Inc., Bionovo Inc., Bristol-Myers Squibb, Celgene Corporation, Celldex Therapeutics,
Dendreon Corporation, Inovio Pharmaceutical Inc., Oncolytics Biotech Inc., Oncothyreon Inc., et al.
We believe that our immunotherapies under
development and in clinical trials will address unmet medical needs in the treatment of cancer. Our competition will be determined
in part by the potential indications for which drugs are developed and ultimately approved by regulatory authorities. Additionally,
the timing of market introduction of some of our potential products or of competitors' products may be an important competitive
factor. Accordingly, the relative speed with which we can develop immunotherapies, complete preclinical testing, clinical trials
and approval processes and supply commercial quantities to market is expected to be important competitive factors. We expect that
competition among products approved for sale will be based on various factors, including product efficacy, safety, reliability,
availability, price and patent position.
Risks Related to the Securities Markets and Investments
in our Common Stock
The price of our common stock may be volatile.
The trading price of our common stock may
fluctuate substantially.  The price of our common stock that will prevail in the market after the sale of the shares
of common stock by a selling stockholder may be higher or lower than the price you have paid, depending on many factors, some
of which are beyond our control and may not be related to our operating performance.  These fluctuations could cause
you to lose part or all of your investment in our common stock.  Those factors that could cause fluctuations include,
but are not limited to, the following:
·
price and volume fluctuations in the overall stock market from time to time;
·
fluctuations in stock market prices and trading volumes of similar companies;
·
actual or anticipated changes in our net loss or fluctuations in our operating results or in the expectations of securities
    analysts;
·
the issuance of new equity securities pursuant to a future offering, including issuances of preferred stock pursuant to
    the Series B purchase agreement, as amended;
·
general economic conditions and trends;
·
major catastrophic events;
·
sales of large blocks of our stock;
·
significant dilution caused by the anti-dilutive clauses in our financial agreements;
9
·
departures of key personnel;
·
changes in the regulatory status of our immunotherapies, including results of our clinical trials;
·
events affecting Penn or any future collaborators;
·
announcements of new products or technologies, commercial relationships or other events by us or our competitors;
·
regulatory developments in the U.S. and other countries;
·
failure of our common stock to be listed or quoted on the Nasdaq Stock Market, NYSE Amex Equities or other national market
    system;
·
changes in accounting principles; and
·
discussion of us or our stock price by the financial and scientific press and in online investor communities.
In the past, following periods of volatility
in the market price of a company's securities, securities class action litigation has often been brought against that company.  Due
to the potential volatility of our stock price, we may therefore be the target of securities litigation in the future.  Securities
litigation could result in substantial costs and divert management's attention and resources from our business.
You may have difficulty selling our shares because they
are deemed "penny stocks."
Our common stock is deemed to be "penny
stock" as that term is defined in Rule 3a51-1, promulgated under the Exchange Act.  Penny stocks are, generally,
stocks:
·
with a price of less than $5.00 per share;
·
that are neither traded on a "recognized" national exchange nor listed on an automated quotation system sponsored
    by a registered national securities association meeting certain minimum initial listing standards; and
·
of issuers with net tangible assets less than $2.0 million (if the issuer has been in continuous operation for at least
    three years) or $5.0 million (if in continuous operation for less than three years), or with average revenue of less than
    $6.0 million for the last three years.
Section 15(g) of the Exchange Act and Rule
15g-2 promulgated thereunder require broker-dealers dealing in penny stocks to provide potential investors with a document disclosing
the risks of penny stocks and to obtain a manually signed and dated written receipt of the document before effecting any transaction
in a "penny stock" for the investor's account.  We urge potential investors to obtain and read this
disclosure carefully before purchasing any shares that are deemed to be "penny stock."
Rule 15g-9 promulgated under the Exchange
Act requires broker-dealers in penny stocks to approve the account of any investor for transactions in such stocks before selling
any "penny stock" to that investor.  This procedure requires the broker-dealer to:
·
obtain from the investor information about his or her financial situation, investment experience and investment objectives;
·
reasonably determine, based on that information, that transactions in penny stocks are suitable for the investor and that
    the investor has enough knowledge and experience to be able to evaluate the risks of "penny stock" transactions;
·
provide the investor with a written statement setting forth the basis on which the broker-dealer made his or her determination;
    and
·
receive a signed and dated copy of the statement from the investor, confirming that it accurately reflects the investor's
    financial situation, investment experience and investment objectives.
Compliance with these requirements may
make it harder for investors in our common stock to resell their shares to third parties.  Accordingly, our common stock
should only be purchased by investors, who understand that such investment is a long-term and illiquid investment, and are capable
of and prepared to bear the risk of holding our common stock for an indefinite period of time.
10
A limited public trading market may cause volatility
in the price of our common stock.
Our common stock began trading on the OTC
Bulletin Board on July 28, 2005 and is quoted under the symbol ADXS.OB.  The quotation of our common stock on the
OTC Bulletin Board does not assure that a meaningful, consistent and liquid trading market currently exists, and in recent
years such market has experienced extreme price and volume fluctuations that have particularly affected the market prices of many
smaller companies like us.  Our common stock is thus subject to this volatility.  Sales of substantial amounts
of common stock, or the perception that such sales might occur, could adversely affect prevailing market prices of our common
stock and our stock price may decline substantially in a short time and our stockholders could suffer losses or be unable to liquidate
their holdings.  Also there are large blocks of restricted stock that have met the holding requirements under Rule 144
that can be unrestricted and sold.  Our stock is thinly traded due to the limited number of shares available for trading
on the market thus causing large swings in price.
There is no assurance of an established public trading
market.
A regular trading market for our common
stock may not be sustained in the future.  The effect on the OTC Bulletin Board of these rule changes and other
proposed changes cannot be determined at this time.  The OTC Bulletin Board is an inter-dealer, over-the-counter
market that provides significantly less liquidity than the Nasdaq Stock Market.  Quotes for stocks included on the OTC Bulletin
Board are not listed in the financial sections of newspapers. As such, investors and potential investors may find it difficult
to obtain accurate stock price quotations, and holders of our common stock may be unable to resell their securities at or near
their original offering price or at any price.  Market prices for our common stock will be influenced by a number of
factors, including:
·
the issuance of new equity securities pursuant to a future offering, including issuances of preferred stock pursuant to
    the Series B purchase agreement, as amended;
·
changes in interest rates;
·
significant dilution caused by the anti-dilutive clauses in our financial agreements;
·
competitive developments, including announcements by competitors of new products or services or significant contracts,
    acquisitions, strategic partnerships, joint ventures or capital commitments;
·
variations in quarterly operating results;
·
change in financial estimates by securities analysts;
·
the depth and liquidity of the market for our common stock;
·
investor perceptions of our company and the technologies industries generally; and
·
general economic and other national conditions.
We may not be able to achieve secondary trading of our
stock in certain states because our common stock is not nationally traded.
Because our common stock is not listed
for trading on a national securities exchange, our common stock is subject to the securities laws of the various states and jurisdictions
of the U.S. in addition to federal securities law.  This regulation covers any primary offering we might attempt and
all secondary trading by our stockholders.  If we fail to take appropriate steps to register our common stock or qualify
for exemptions for our common stock in certain states or jurisdictions of the U.S., the investors in those jurisdictions where
we have not taken such steps may not be allowed to purchase our stock or those who presently hold our stock may not be able to
resell their shares without substantial effort and expense.  These restrictions and potential costs could be significant
burdens on our stockholders.
If we fail to remain current on our reporting requirements,
we could be removed from the OTC Bulletin Board, which would limit the ability of broker-dealers to sell our securities and the
ability of stockholders to sell their securities in the secondary market.
Companies trading on the OTC Bulletin Board,
such as us, must be reporting issuers under Section 12 of the Exchange Act, as amended, and must be current in their reports under
Section 13, in order to maintain price quotation privileges on the OTC Bulletin Board.  For our third quarter 2009 and
fiscal year ended October 31, 2009, we were unable to file our respective quarterly report on Form 10-Q and annual report on Form
10-K in a timely manner, but we were able to make the filings and cure our compliance deficiencies with the OTC Bulletin Board
within the grace period allowed by the OTC Bulletin Board.  If we fail to remain current on our reporting requirements,
we could be removed from the OTC Bulletin Board.  As a result, the market liquidity for our securities could be severely
adversely affected by limiting the ability of broker-dealers to sell our securities and the ability of stockholders to sell their
securities in the secondary market.  In addition, we may not be able to deliver a tranche notice to Optimus under the Series
B purchase agreement.
Our internal control over financial reporting and our
disclosure controls and procedures have been ineffective in the past, and may be ineffective again in the future, and failure
to improve them at such time could lead to errors in our financial statements that could require a restatement or untimely filings,
which could cause investors to lose confidence in our reported financial information, and a decline in our stock price.
11
Our internal control over financial reporting
and our disclosure controls and procedures have been ineffective in the past. We have taken steps to improve our disclosure controls
and procedures and our internal control over financial reporting, and as of July 31, 2012, our chief executive officer and chief
financial officer concluded that our disclosure controls and procedures and internal control over financial reporting were effective.
However, there is no assurance that our disclosure controls and procedures will remain effective or that there will be no material
weaknesses in our internal control over financial reporting in the future. Additionally, as a result of the historical material
weaknesses in our internal control over financial reporting and the historical ineffectiveness of our disclosure controls and
procedures, current and potential stockholders could lose confidence in our financial reporting, which would harm our business
and the trading price of our stock.
Our executive officers and directors can exert significant
influence over us and may make decisions that do not always coincide with the interests of other stockholders.
As of November 5, 2012, our officers
and directors and their affiliates, in the aggregate, beneficially own approximately 11.4% of the outstanding shares of our
common stock.  As a result, such persons, acting together, have the ability to substantially influence all matters submitted
to our stockholders for approval, including the election and removal of directors, any merger, consolidation or sale of all or
substantially all of our assets, an increase in the number of shares authorized for issuance under our stock option plans, and
to control our management and affairs.  Accordingly, such concentration of ownership may have the effect of delaying,
deferring or preventing a change in or discouraging a potential acquirer from making a tender offer or otherwise attempting to
obtain control of our business, even if such a transaction would be beneficial to other stockholders.
Sales of additional equity securities may adversely affect
the market price of our common stock and your rights in us may be reduced.
We expect to continue to incur drug development
and selling, general and administrative costs, and to satisfy our funding requirements, we will need to sell additional equity
securities, which may be subject to registration rights and warrants with anti-dilutive protective provisions.  The
sale or the proposed sale of substantial amounts of our common stock in the public markets may adversely affect the market price
of our common stock and our stock price may decline substantially.  Our stockholders may experience substantial dilution
and a reduction in the price that they are able to obtain upon sale of their shares.  Also, new equity securities issued
may have greater rights, preferences or privileges than our existing common stock.
Additional authorized shares of common stock available
for issuance may adversely affect the market.
We are authorized to
issue 1,000,000,000 shares of our common stock. As of November 5, 2012, we had 396,938,817 shares of our common stock issued
and outstanding, excluding shares issuable upon exercise of our outstanding warrants, options and convertible promissory
notes. As of November 5, 2012, we had outstanding options to purchase 44,807,424 shares of our common stock at a weighted
average exercise price of approximately $0.16 per share and outstanding warrants to purchase 149,786,934 shares of our common
stock. To the extent the shares of common stock are issued, options
and warrants are exercised or convertible promissory notes are converted, holders of our common stock will experience
dilution. In addition, in the event of any future financing of equity securities or securities convertible into or
exchangeable for, common stock, holders of our common stock may experience dilution. As of November 5, 2012, warrants to
purchase 62,308,937 shares of our common stock are exercisable at $0.03146 per share and are subject to "full ratchet"
anti-dilution protection upon certain equity issuances below $0.03146 per share (as may be further adjusted).
12
We are able to issue shares of preferred stock with rights
superior to those of holders of our common stock.  Such issuances can dilute the tangible net book value of shares of
our common stock.
Our Amended and Restated Certification
of Incorporation provides for the authorization of 5,000,000 shares of "blank check" preferred stock.  Pursuant
to our Amended and Restated Certificate of Incorporation, our board of directors is authorized to issue such "blank check"
preferred stock with rights that are superior to the rights of stockholders of our common stock, at a purchase price then approved
by our board of directors, which purchase price may be substantially lower than the market price of shares of our common stock,
without stockholder approval.  Such issuances can dilute the tangible net book value of shares of our common stock.
We do not intend to pay cash dividends.
We have not declared or paid any cash dividends
on our common stock, and we do not anticipate declaring or paying cash dividends for the foreseeable future. Any future determination
as to the payment of cash dividends on our common stock will be at our board of directors' discretion and will depend on
our financial condition, operating results, capital requirements and other factors that our board of directors considers to be
relevant.
Risks Related to the Offering
Our management has broad discretion
over the use of the net proceeds that we may receive under our committed equity line financing facility, and we may not use the
net proceeds in ways that would increase the value of our stock price.
We have broad
discretion over the use of the net proceeds that we may receive if we sell shares of common stock to Hanover, and we could spend
the proceeds in ways that do may not necessarily improve our results of operations or enhance the value of our common stock. Our
failure to apply these funds effectively could have a material adverse effect on our business, delay the development of our product
candidates and cause the price of our common stock to decline.
13
If we sell shares of our common
stock under our committed equity line financing facility, our existing shareholders will experience immediate dilution and, as
a result, our stock price may go down.
In
October 19, 2012, we entered into a committed equity line financing facility, or financing arrangement, under which we may
sell up to $10.0 million of our common stock to Hanover over a 24-month period subject to a maximum of   115,000,000 shares
of our common stock. In connection with such financing arrangement, we issued 3,500,000 shares of common stock to Hanover
upon receipt of their commitment to purchase our common stock in the financing arrangement and we agreed to pay up to
1,800,000 additional shares of our common stock to Hanover to maintain such financing arrangement for the 24-month term,
which together with the other 109,700,000  shares of our common stock being registered hereunder, represents approximately
29.0% of our outstanding shares of our common stock as of November 5, 2012 (approximately 18.4% on a fully diluted basis).
The issuance of such shares of our common stock to Hanover will have an immediately dilutive impact on our
existing shareholders. See also "Equity Enhancement Program
–
Commitment Fee
Shares and Maintenance Fee Shares" below. If we elect to use the committed equity line financing facility, the sale of
shares of our common stock to Hanover will have an additional dilutive impact on our existing shareholders.
Hanover may resell
some or all of the shares we issue to them pursuant to the financing arrangement and such sales could cause the market price of
our common stock to decline significantly with advances under the financing arrangement. To the extent of any such decline, any
subsequent advances would require us to issue a greater number of shares of common stock to Hanover in exchange for each dollar
of the advance. Under these circumstances, our existing shareholders would experience greater dilution and the total amount of
financing that we will be able to raise pursuant to the financing arrangement could be significantly lower than $10.0 million.
Although Hanover is precluded from short sales of shares acquired pursuant to advances under the financing arrangement, the sale
of our common stock under the financing arrangement could encourage short sales by third parties, which could contribute to the
further decline of our stock price.
If we are not able to satisfy
the conditions to each draw down under the committed equity line financing facility, we will not be able to sell our common stock
pursuant to the committed equity line financing facility.
Our ability to
sell securities pursuant to the committed equity line financing facility is subject to conditions to each draw down notice that
we present to Hanover requiring Hanover to purchase a specified number of shares of our common stock, which we refer to in this
prospectus as a draw down, that must be satisfied prior to the closing of any sale of our common stock pursuant to such draw down.
These include, among others:
·
Accuracy
                                                                                                                 in all material
                                                                                                                 respects of our
                                                                                                                 representations
                                                                                                                 and warranties
                                                                                                                 (except for such
                                                                                                                 representations
                                                                                                                 and warranties
                                                                                                                 qualified by
                                                                                                                 materiality,
                                                                                                                 which shall be
                                                                                                                 accurate in all
                                                                                                                 respects) and
                                                                                                                 our compliance
                                                                                                                 with covenants
                                                                                                                 in all material
                                                                                                                 respects (including,
                                                                                                                 without limitation,
                                                                                                                 our prior delivery
                                                                                                                 to Hanover of
                                                                                                                 any commitment
                                                                                                                 fee shares or
                                                                                                                 maintenance fee
                                                                                                                 shares to be
                                                                                                                 issued to Hanover
                                                                                                                 pursuant to the
                                                                                                                 Purchase Agreement).
                                                                                                                 See "Equity
                                                                                                                 Enhancement Program
                                                                                                                 – Representations
                                                                                                                 and Warranties",
                                                                                                                 "Equity
                                                                                                                 Enhancement Program
                                                                                                                 – Covenants"
                                                                                                                 and "Equity
                                                                                                                 Enhancement Program
                                                                                                                 –Fees and
                                                                                                                 Expenses"
                                                                                                                 below;
·
A
                                                                                                                 resale registration
                                                                                                                 statement with
                                                                                                                 respect to shares
                                                                                                                 of our common
                                                                                                                 stock to be purchased
                                                                                                                 by Hanover in
                                                                                                                 such draw down
                                                                                                                 must have been
                                                                                                                 declared effective
                                                                                                                 by the SEC and
                                                                                                                 must be available
                                                                                                                 for resale of
                                                                                                                 such shares of
                                                                                                                 our common stock
                                                                                                                 by Hanover;
·
No
                                                                                                                 material adverse
                                                                                                                 effect on us
                                                                                                                 shall have occurred
                                                                                                                 or be continuing;
·
All
                                                                                                                 the material
                                                                                                                 filings by us
                                                                                                                 required under
                                                                                                                 the Securities
                                                                                                                 Exchange Act
                                                                                                                 of 1934, as amended,
                                                                                                                 shall have been
                                                                                                                 filed with the
                                                                                                                 SEC; and
·
The
                                                                                                                 number of shares
                                                                                                                 of our common
                                                                                                                 stock in such
                                                                                                                 draw down shall
                                                                                                                 not exceed:
o
300%
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 average
                                                                                                                                 trading
                                                                                                                                 volume
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 during
                                                                                                                                 the
                                                                                                                                 10
                                                                                                                                 trading
                                                                                                                                 day
                                                                                                                                 period
                                                                                                                                 prior
                                                                                                                                 to
                                                                                                                                 such
                                                                                                                                 draw
                                                                                                                                 down
                                                                                                                                 date;
14
o
Together
                                                                                                                                 with
                                                                                                                                 the
                                                                                                                                 shares
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 in
                                                                                                                                 all
                                                                                                                                 prior
                                                                                                                                 draw
                                                                                                                                 downs,
                                                                                                                                 $10
                                                                                                                                 million
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 shares
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock;
                                                                                                                                 or
o
Such
                                                                                                                                 number
                                                                                                                                 of
                                                                                                                                 shares
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 that
                                                                                                                                 would
                                                                                                                                 result
                                                                                                                                 in
                                                                                                                                 Hanover
                                                                                                                                 beneficially
                                                                                                                                 owning
                                                                                                                                 more
                                                                                                                                 than
                                                                                                                                 9.99%
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 after
                                                                                                                                 giving
                                                                                                                                 effect
                                                                                                                                 to
                                                                                                                                 such
                                                                                                                                 draw
                                                                                                                                 down.
See
"
Equity Enhancement Program
– Overview
"
below. We may not be able to satisfy these conditions and/or the other conditions to a draw down under the committed equity line
financing facility. If we are unable to satisfy such conditions, we will not be able to sell any of our common stock pursuant
to the committed equity line financing facility.
Shares eligible for future sale may adversely affect
the market.
Sales of a significant number of shares
of our common stock in the public market could harm the market price of our common stock. As additional shares of our common stock
become available for resale in the public market pursuant to this offering, and otherwise, the supply of our common stock will
increase, which could decrease its price. Some or all of the shares of common stock may be offered from time to time in the open
market pursuant to Rule 144, and these sales may have a depressive effect on the market for our shares of common stock. In general,
under Rule 144 as currently in effect, a non-affiliate of ours who has beneficially owned shares of our common stock for at least
six months is entitled to sell his or her shares without any volume limitations, and an affiliate of ours can sell such number
of shares within any three-month period as does not exceed the greater of 1% of the number of shares of our common stock then
outstanding, which equaled approximately 3,969,388 shares as of November 5, 2012, or the average weekly trading volume of
our common stock on the OTC Bulletin Board during the four calendar weeks preceding the filing of a notice on Form 144 with respect
to that sale. Sales under Rule 144 by our affiliates are also subject to manner-of-sale provisions, notice requirements and the
availability of current public information about us.
15
SPECIAL NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This prospectus contains forward-looking
statements.  We have based these forward-looking statements on our current expectations and projections about future
events.  These statements include, but are not limited to:
·
statements as to the anticipated timing of clinical studies and other business developments;
·
statements as to the development of new immunotherapies;
·
expectations as to the adequacy of our cash balances to support our operations for specified periods of time and as to
    the nature and level of cash expenditures; and
·
expectations as to the market opportunities for our immunotherapies, as well as our ability to take advantage of those
    opportunities.
These statements may be found in the sections
of this prospectus titled "Prospectus Summary," "Risk Factors," "Management's Discussion and
Analysis and Results of Operations," and "Description of our Business," as well as in this prospectus generally.  Actual
results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including
all the risks discussed in "Risk Factors" and elsewhere in this prospectus.
In addition, statements that use the terms
"can," "continue," "could," "may," "potential," "predicts,"
"should," "will," "believe," "expect," "plan," "intend,"
"estimate," "anticipate," "scheduled" and similar expressions are intended to identify forward-looking
statements.  All forward-looking statements in this prospectus reflect our current views about future events and are
based on assumptions and are subject to risks and uncertainties that could cause our actual results to differ materially from
future results expressed or implied by the forward-looking statements.  Many of these factors are beyond our ability
to control or predict.  Forward-looking statements do not guarantee future performance and involve risks and uncertainties.  Actual
results will differ, and may differ materially, from projected results as a result of certain risks and uncertainties.  The
risks and uncertainties include, without limitation, those described under "Risk Factors" and those detailed from
time to time in our filings with the SEC, and include, among others, the following:
·
Our limited operating history and ability to continue as a going concern;
·
Our ability to successfully develop and commercialize products based on our
Lm
-LLO based immunotherapy platform
    technology;
·
A lengthy approval process and the uncertainty of FDA and other government regulatory requirements may have a material
    adverse effect on our ability to commercialize our applications;
·
Clinical trials may fail to demonstrate the safety and effectiveness of our applications or therapies, which could have
    a material adverse effect on our ability to obtain government regulatory approval;
·
The degree and nature of our competition;
·
Our ability to employ and retain qualified employees; and
·
The other factors referenced in this prospectus, including, without limitation, under the sections titled "Risk
    Factors," "Management's Discussion and Analysis and Results of Operations," and "Description
    of our Business."
These risks are not exhaustive.  Other
sections of this prospectus may include additional factors which could adversely impact our business and financial performance.  Moreover,
we operate in a very competitive and rapidly changing environment.  New risk factors emerge from time to time and it
is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or
the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained
in any forward-looking statements.  Given these risks and uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual results.  These forward-looking statements are made only as of
the date of this prospectus.  Except for our ongoing obligation to disclose material information as required by federal
securities laws, we do not intend to update you concerning any future revisions to any forward-looking statements to reflect events
or circumstances occurring after the date of this prospectus.
16
USE OF PROCEEDS
We will not receive any proceeds from the
resale of the shares of common stock offered by the selling stockholder as all of such proceeds will be paid to the selling stockholder.
EQUITY ENHANCEMENT PROGRAM
Overview
On October 26, 2012, we entered into
the Purchase Agreement with Hanover providing for
a financing arrangement that is sometimes referred to as a committed equity line financing facility, which we refer to in this
prospectus as the Equity Enhancement Program. The Equity Enhancement Program was entered into in reliance upon the provisions
of Section 4(a)(2) and Rule 506 of Regulation D promulgated by the SEC under the Securities Act of 1933, as amended, or the
Securities Act. The Purchase Agreement provides that Hanover has committed to purchase up to $10 million of shares of our common
stock, in one or more draw downs, over the 24-month term of the Purchase Agreement under certain specified conditions and limitations
as specified in the Purchase Agreement, which include:
·
Accuracy
                                                                                                                 of our representations
                                                                                                                 and warranties
                                                                                                                 and our compliance
                                                                                                                 with covenants
                                                                                                                 in all material
                                                                                                                 respects;
·
A
                                                                                                                 resale registration
                                                                                                                 statement with
                                                                                                                 respect to shares
                                                                                                                 of our common
                                                                                                                 stock to be purchased
                                                                                                                 by Hanover in
                                                                                                                 such draw down
                                                                                                                 must have been
                                                                                                                 declared effective
                                                                                                                 by the SEC and
                                                                                                                 must be available
                                                                                                                 for resale of
                                                                                                                 such shares by
                                                                                                                 Hanover;
·
No
                                                                                                                 stop order or
                                                                                                                 injunction with
                                                                                                                 respect to our
                                                                                                                 common stock
                                                                                                                 or such offering
                                                                                                                 shall be in effect;
·
All
                                                                                                                 the material
                                                                                                                 filings by us
                                                                                                                 required under
                                                                                                                 the Securities
                                                                                                                 Exchange Act
                                                                                                                 of 1934, as amended,
                                                                                                                 or the Exchange
                                                                                                                 Act shall have
                                                                                                                 been filed with
                                                                                                                 the SEC;
·
No
                                                                                                                 suspension of
                                                                                                                 trading or delisting
                                                                                                                 of our common
                                                                                                                 stock shall have
                                                                                                                 occurred;
·
Our
                                                                                                                 compliance in
                                                                                                                 all material
                                                                                                                 respect with
                                                                                                                 applicable laws
                                                                                                                 with respect
                                                                                                                 to such offering;
·
No
                                                                                                                 action, suit,
                                                                                                                 proceeding or
                                                                                                                 other litigations
                                                                                                                 shall be pending
                                                                                                                 or threatened
                                                                                                                 to restrain,
                                                                                                                 prevent or change
                                                                                                                 the transactions
                                                                                                                 contemplated
                                                                                                                 by the Purchase
                                                                                                                 Agreement;
·
The
                                                                                                                 number of shares
                                                                                                                 of our common
                                                                                                                 stock in such
                                                                                                                 draw down shall
                                                                                                                 not exceed the
                                                                                                                 lesser of:
o
300%
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 average
                                                                                                                                 trading
                                                                                                                                 volume
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 during
                                                                                                                                 the
                                                                                                                                 10
                                                                                                                                 trading
                                                                                                                                 day
                                                                                                                                 period
                                                                                                                                 prior
                                                                                                                                 to
                                                                                                                                 such
                                                                                                                                 draw
                                                                                                                                 down
                                                                                                                                 date;
o
Together
                                                                                                                                 with
                                                                                                                                 the
                                                                                                                                 shares
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 in
                                                                                                                                 all
                                                                                                                                 prior
                                                                                                                                 draw
                                                                                                                                 downs,
                                                                                                                                 $10
                                                                                                                                 million
                                                                                                                                 worth
                                                                                                                                 of
                                                                                                                                 shares
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock;
                                                                                                                                 and
o
Such
                                                                                                                                 number
                                                                                                                                 of
                                                                                                                                 shares
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 that
                                                                                                                                 would
                                                                                                                                 result
                                                                                                                                 in
                                                                                                                                 Hanover
                                                                                                                                 beneficially
                                                                                                                                 owning
                                                                                                                                 more
                                                                                                                                 than
                                                                                                                                 9.99%
                                                                                                                                 of
                                                                                                                                 our
                                                                                                                                 common
                                                                                                                                 stock
                                                                                                                                 after
                                                                                                                                 giving
                                                                                                                                 effect
                                                                                                                                 to
                                                                                                                                 such
                                                                                                                                 draw
                                                                                                                                 down.
·
No
                                                                                                                 material adverse
                                                                                                                 effect on us
                                                                                                                 shall have occurred
                                                                                                                 or be continuing;
                                                                                                                 and
·
The
                                                                                                                 shares of our
                                                                                                                 common stock
                                                                                                                 to be delivered
                                                                                                                 in such draw
                                                                                                                 down shall be
                                                                                                                 duly authorized,
                                                                                                                 validly issued
                                                                                                                 and delivered
                                                                                                                 electronically
                                                                                                                 to Hanover's
                                                                                                                 or its designee's
                                                                                                                 account at DTC.
In addition, we have agreed to (a) reserve
and keep available at all times such number of authorized but unissued shares of our common stock as required to be issued pursuant
to the Purchase Agreement, from time to time and (b) take all action necessary to cause our common stock to continue to be registered
under the Exchange Act and listed on the OTC Bulletin Board and use commercially reasonable efforts to comply with the reporting
and filing obligations under applicable securities laws, rules and regulations.
17
Mechanics of each Draw Down Notice
From time to time over the term of the
Purchase Agreement, and in our sole discretion, subject to the satisfaction of the conditions described above, we may present
Hanover with a draw down based on a purchase price per share calculated over 10 consecutive trading days following the start date
we designate in our draw down, which we refer to in this prospectus as the Pricing Period (subject to adjustment as described
in "Mechanics of Each Draw Down Notice – Purchase Price of Required Shares" below). Only one draw down may be
made during any Pricing Period and at least five trading days must elapse before a subsequent Pricing Period may occur.
Closing of Draw Down
Each closing of a draw down shall occur
no later than the 12
th
business day following the commencement of the applicable Pricing Period.
Floor Price; Reduction in Required
Purchase of Shares
The purchase price of our common stock
to be sold in connection with such draw down is subject to the Floor Price. If the closing sale price of our common stock on any trading day in the applicable Pricing Period
falls below the Floor Price, the number of shares of our common stock required to be purchased by Hanover will be reduced by 10%.
Purchase Price of Required Shares
The purchase price per share for any shares
of our common stock required to be purchased by Hanover will be equal to 90% of the arithmetic average of the five lowest closing
sale prices of our common stock during the applicable Pricing Period (or, if less, the arithmetic average of all trading days
with closing sale prices in excess of the Floor Price), subject to adjustment upon an alternative transaction as describe below.
See "Mechanics of Each Draw Down – Alternative Transactions" below. Each trading day with a closing sale price
less than the Floor Price is excluded from the calculation of the purchase price and automatically reduces the number of trading
days in the applicable Pricing Period.
Purchase Price Adjustment upon an Alternate
Transaction
In connection with any proposed draw down,
if a third party purchases our common stock and/or securities convertible or exercisable or exchangeable into common stock during
the period beginning at the start of the applicable Pricing Period and ending on the second trading day after the closing date
of such draw down at a purchase price per share of our common stock that is less than the purchase price in such proposed draw
down, the proposed draw down purchase price shall be adjusted downward to the purchase price in such alternate transaction.
Commitment Fee Shares and Maintenance Fee Shares
In consideration for Hanover's execution
and delivery of the Purchase Agreement, in connection with the execution and delivery of the Purchase Agreement, we have issued
Hanover 3,500,000 Commitment Fee Shares.
We have also agreed to issue Hanover up
to 1,800,000 Maintenance Fee Shares, during any
full calendar quarter during the term of the Purchase Agreement, if no shares of our common stock have been purchased or sold
because we did not deliver a draw down to Hanover. The number of Maintenance Fee Shares to be delivered to Hanover, from time
to time, with respect to any calendar quarter, shall be equal to approximately $15,000 worth of shares of our common stock at
a 10% discount to market.
The offering contemplated hereunder includes
the 3,500,000 Commitment Fee Shares previously issued to Hanover and the 1,800,000 Maintenance Fee Shares that may become issuable
to Hanover as described above pursuant to the Purchase Agreement.
18
Selling Restrictions
Hanover has agreed that during the term
of the Purchase Agreement, that neither Hanover nor any of its affiliates will, directly or indirectly, engage in any short sales
involving our securities or grant any option to purchase, or acquire any right to dispose of or otherwise dispose for value of,
any shares of our common stock or any securities convertible into or exercisable or exchangeable for any shares of our common
stock, or enter into any swap, hedge or other similar agreement that transfers, in whole or in part, the economic risk of ownership
of any shares of our common stock. The foregoing restrictions do not prohibit Hanover from engaging in transactions relating to
any of the shares of our common stock that it owns, including the Commitment Fee Shares, or that it is obligated to purchase under
a pending draw down.
Termination
The Purchase Agreement may be terminated
at any time by the mutual written consent of the parties. Unless earlier terminated, the Purchase Agreement will terminate automatically
on the earlier to occur of (i) the first day of the month next following the 24-month anniversary of the effective date of
the registration statement of which this prospectus forms a part (which term may not be extended by the parties) or (ii) the
date on which Hanover purchases the entire commitment amount under the Purchase Agreement. We may terminate the Purchase Agreement
effective upon one trading day prior written notice to Hanover, subject to certain conditions. Hanover may terminate the Purchase
Agreement effective upon one trading day prior written notice to us under certain circumstances, including the following:
•
The existence of any condition, occurrence, state of facts or event having, or insofar as
    reasonably can be foreseen would likely have, any effect on our business, operations, properties or financial condition that
    is material and adverse to us;
•
We enter into an agreement providing for certain types of financing transactions that are
    similar to the equity line with Hanover;
•
Certain transactions involving a change in control of the company or the sale of all or substantially
    all of our assets have occurred;
•
We are in breach or default in any material respect under any of the provisions of the Purchase
    Agreement or the Registration Rights Agreement, and, if such breach or default is capable of being cured, such breach or default
    is not cured within 10 trading days after notice of such breach or default is delivered to us.
•
While Hanover holds any shares issued under the Purchase Agreement, the effectiveness of the
    registration statement that includes this prospectus is suspended or the use of this prospectus is suspended or prohibited,
    and such suspension or prohibition continues for a period of 20 consecutive trading days or for more than an aggregate of
    60 trading days in any 365-day period, subject to certain exceptions.
•
Trading in our common stock is suspended or our common stock ceases to be listed or quoted
    on a trading market, and such suspension or failure continues for a period of 20 consecutive trading days or for more than
    an aggregate of 60 trading days in any 365-day period.
•
We have filed for and/or are subject to any bankruptcy, insolvency, reorganization or liquidation
    proceedings.
The Purchase Agreement provides that no
termination of the Purchase Agreement will limit, alter, modify, change or otherwise affect any of the parties' rights or
obligations with respect to any pending draw down, and that the parties must fully perform their respective obligations with respect
to any such pending draw down under the Purchase Agreement, provided all of the conditions to the settlement thereof are timely
satisfied.
Indemnification
The Purchase Agreement also provides for
indemnification of Hanover and its affiliates in the event that Hanover incurs losses, liabilities, obligations, claims, contingencies,
damages, costs and expenses related to a breach by us of any of our representations and warranties under the Purchase Agreement
or the other related transaction documents or any action instituted against Hanover or its affiliates due to the transactions
contemplated by the Purchase Agreement or other transaction documents, subject to certain limitations.
19
Registration Rights Agreement
In connection with the Purchase Agreement,
we entered into the Registration Rights
Agreement, pursuant to which we granted to Hanover certain registration rights related to the Commitment Fee Shares, the Maintenance
Fee Shares, and the shares issuable under the Purchase Agreement. Pursuant to the Registration Rights Agreement, we have filed
with the SEC a registration statement, of which this prospectus is a part, relating to the selling stockholder's resale
of the Commitment Fee Shares, the Maintenance Fee Shares, and any shares of common stock purchased by Hanover under the Purchase
Agreement. As previously noted above, the effectiveness of this registration statement is a condition precedent to our ability
to sell common stock to Hanover under the Purchase Agreement.
We also agreed, among other things, to
indemnify Hanover from certain liabilities and fees and expenses of Hanover incident to our obligations under the Registration
Rights Agreement, including certain liabilities under the Securities Act. Hanover has agreed to indemnify and hold harmless us
and each of our directors, officers and persons who control us against certain liabilities that may be based upon written information
furnished by Hanover to us for inclusion in a registration statement pursuant to the Registration Rights Agreement, including
certain liabilities under the Securities Act of 1933.
The foregoing description of the Purchase
Agreement and the Registration Rights Agreement does not purport to be complete and is qualified in its entirety by reference
to the full text of the Purchase Agreement and Registration Rights Agreement, copies of which have been filed or incorporated
by reference as exhibits to the registration statement of which this prospectus is a part.
20
MARKET PRICE OF AND DIVIDENDS ON OUR
COMMON STOCK
AND RELATED STOCKHOLDER MATTERS
Since July 28, 2005, our common stock has
been quoted on the OTC Bulletin Board under the symbol ADXS.OB.  The following table shows, for the periods indicated,
the high and low bid prices per share of our common stock as reported by the OTC Bulletin Board.  These bid prices represent
prices quoted by broker-dealers on the OTC Bulletin Board.  The quotations reflect inter-dealer prices, without retail
mark-up, mark-down or commissions, and may not represent actual transactions.
Fiscal 2012
Fiscal 2011
High
Low
High
Low
First Quarter (November 1-January 31)
$
0.19
$
0.14
$
0.16
$
0.11
Second Quarter (February 1- April 30) (1)
$
0.17
$
0.11
$
0.22
$
0.11
Third Quarter (May 1 - July 31
$
0.14
$
0.07
$
0.25
$
0.14
Fourth Quarter (August 1 - October 31)
$
0.08
$
0.04
$
0.17
$
0.13
(1)
From March 1, 2011 through April 1, 2011, our common stock was traded on the OTCQB Market
    place, a new market for OTC-traded companies that are registered and current in their reporting obligations to the SEC or
    a U.S. banking or insurance regulator.
As of November 5, 2012, there were
approximately 93 stockholders of record.  Because shares of our common stock are held by depositaries, brokers and
other nominees, the number of beneficial holders of our shares is substantially larger than the number
of  stockholders of record. Based on information available to us, we believe there are approximately 3,500
beneficial owners of our shares of our common stock in addition to the stockholders of record. On November 12, 2012,
the last reported sale price per share for our common stock as reported by the OTC Bulletin Board was $0.04.
We have not declared or paid any cash dividends
on our common stock, and we do not anticipate declaring or paying cash dividends for the foreseeable future. We are not subject
to any legal restrictions respecting the payment of dividends, except that we may not pay dividends if the payment would render
us insolvent.  Any future determination as to the payment of cash dividends on our common stock will be at our board
of directors' discretion and will depend on our financial condition, operating results, capital requirements and other factors
that our board of directors considers to be relevant.
Holders of Series B preferred stock will
be entitled to receive dividends, which will accrue in shares of Series B preferred stock on an annual basis at a rate equal to
10% per annum from the issuance date. Accrued dividends will be payable upon redemption of the Series B preferred stock or upon
the liquidation, dissolution or winding up of our company. The Series B preferred stock ranks, with respect to dividend rights
and rights upon liquidation:
·
senior to our common stock and any other class or series of preferred stock (other than Series A preferred stock or any
    class or series of preferred stock that we intend to cause to be listed for trading or quoted on Nasdaq, NYSE Amex or the
    New York Stock Exchange);
·
pari passu
with any outstanding shares of our Series A preferred stock (none of which are issued and outstanding
    as of the date hereof); and
·
junior to all of our existing and future indebtedness and any class or series of preferred stock that we intend to cause
    to be listed for trading or quoted on Nasdaq, NYSE Amex or the New York Stock Exchange.
21
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Management's Discussion and
Analysis of Financial Conditions and Results of Operations and other portions of this prospectus contain forward-looking information
that involves risks and uncertainties.  Our actual results could differ materially from those anticipated by the forward-looking
information.  Factors that may cause such differences include, but are not limited to, availability and cost of financial
resources, product demand, market acceptance and other factors discussed in this prospectus under the heading "Risk Factors".  This
Management's Discussion and Analysis of Financial Conditions and Results of Operations should be read in conjunction
with our financial statements and the related notes included elsewhere in this prospectus.
Overview
Advaxis is a development stage biotechnology
company with the intent to develop safe and effective immunotherapies for cancer and infectious diseases. These immunotherapies
are based on a platform technology under exclusive worldwide license from Penn that utilizes live attenuated
Listeria monocytogenes
bioengineered to secrete antigen/adjuvant fusion proteins. These
Lm
-LLO strains use a fragment of the protein listeriolysin
(LLO), fused to a tumor associated antigen (TAA) or other antigen of interest. We believe these
Lm
-LLO agents redirect
the potent immune response to Lm which are inherent in humans, to the TAA or antigen of interest. The immune response to a live,
metabolically competent pathogen is much more complex than the response to a synthetic or organic molecule and may enable a more
comprehensive therapeutic outcome than current treatment modalities. We believe this to be a broadly enabling platform technology
that can be applied to the treatment of many types of cancers and infectious diseases.
We have no customers. Since our inception
in 2002, we have focused our development efforts on understanding our technology and establishing a drug development pipeline
that incorporates this technology into therapeutic immunotherapies (currently those targeting HPV-associated diseases (CIN 2/3,
cervical cancer, head and neck cancer), prostate cancer, and HER2 expressing cancers (breast, gastric, bladder, brain, pancreatic
and ovarian cancers). Although no immunotherapies have been commercialized to date, research and development and investment continues
to be placed behind the pipeline and the advancement of this technology. Pipeline development and the further exploration of the
technology for advancement entail risk and expense. We anticipate that our ongoing operational costs will increase significantly
as we continue conducting our clinical development program.
The following factors, among others, could
cause actual results to differ from those indicated in the above forward-looking statements: increased length and scope of our
clinical trials, failure to recruit patients, increased costs related to intellectual property related expenses, increased cost
of manufacturing and higher consulting costs. These factors or additional risks and uncertainties not known to us or that we currently
deem immaterial may impair business operations and may cause our actual results to differ materially from any forward-looking
statement.
Although we believe the expectations reflected
in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
We expect our future sources of liquidity
to be primarily debt and equity capital raised from investors, as well as licensing fees and milestone payments in the event we
enter into licensing agreements with third parties, and research collaboration fees in the event we enter into research collaborations
with third parties.
If additional capital were raised through
the sale of equity or convertible debt securities, including pursuant to our committed equity line financing facility, the issuance
of such securities would result in additional dilution to our existing stockholders. If we fail to raise a significant amount
of capital, we may need to significantly curtail operations or cease operations in the near future.  Any sale of our
common stock or issuance of rights to acquire our common stock below $0.03146 per share (as may be further adjusted) will trigger
a significant dilution due to the anti-dilution protection provisions in certain of our outstanding warrants and debt instruments.
Plan of Operations
If we are successful in our financing plans
we intend to use the majority of the proceeds to complete our two Phase 2 clinical trials of ADXS-HPV, our first
Lm
-LLO
based immunotherapy targeting diseases associated with the Human Papilloma Virus, which we refer to as HPV. One trial is a 120
patient study in the U.S. in CIN 2/3, and the other trial is a 110 patient study in India in recurrent or refractory cervical
cancer. We also anticipate using the funds to further our preclinical and clinical research and development efforts in developing
immunotherapies in prostate cancer, HER2 expressing cancers (such as breast, gastric, bladder, brain, pancreatic and ovarian cancer)
and for general and administrative activities.
During the next 24 months, our strategic
focus will be to achieve the following goals and objectives:
22
·
Complete our two Phase 2 clinical studies of ADXS-HPV in the treatment of CIN 2/3 and recurrent or refractory cervical
    cancer;
·
Continue an additional Phase 2 clinical trial of ADXS-HPV in the treatment of advanced cervical cancer with the Gynecologic
    Oncology Group, which we refer to as the GOG, largely underwritten by the NCI;
·
Continue to focus on our collaboration with the CRUK to carry out our Phase 1/2 clinical trial of ADXS-HPV in the treatment
    of head and neck cancer entirely underwritten by the CRUK;
·
To support our Cooperative Research and Development Agreement with the NCI to understand the mechanisms of action of
Lm
-LLO
    based immunotherapies, to develop new constructs, and to advance them to clinical testing;
·
Continue to further our structured collaboration with the University of British Columbia on innovative uses of
Listeria
constructs in infectious disease, parasitical disease and neonatal immunity;
·
Continue to focus on our collaboration with the School of Veterinary Medicine at Penn to carry out our Phase 1 clinical
    trial of ADXS-HER2 in canine osteosarcoma;
·
Continue to develop strategic and development collaborations with academic laboratories and potential commercial partners;
·
Continue the development work necessary to bring ADXS-PSA for the treatment of prostate cancer into clinical trials, and
    initiate that trial provided that funding is available;
·
Continue the development work necessary to bring ADXS-HER2 for the treatment of HER2 expressing cancers (such as breast,
    gastric, bladder, brain, pancreatic and ovarian cancer) into clinical trials, and initiate these trials when and if funding
    is available; and
·
Continue the preclinical development of other immunotherapies, as well as continue research to expand our technology platform.
Our projected annual staff, overhead, laboratory
and nonclinical expenses are estimated to be approximately $4.1 million starting in fiscal year beginning November 1, 2011. The
cost of our Phase 2 clinical studies in therapeutic treatment of CIN 2/3 and recurrent and refractory cervical cancer is estimated
to be approximately $11.2 million over the estimated 30 month period of the trial. While approximately $6 million has already
been paid towards these costs, we must raise additional funds in order to complete the Phase 2 trials. If we can raise additional
funds, we intend to commence the clinical work in prostate cancer and a HER2 expressing cancer in 2012. The timing and estimated
costs of these projects are difficult to predict.
If the clinical progress continues to be
successful and the value of our company increases, we may attempt to accelerate the timing of the required financing and, conversely,
if the trial or trials are not successful we may slow our spending and defer the timing of additional financing. While we will
attempt to attract a corporate partnership and grants, we have not assumed the receipt of any additional financial resources in
our cash planning.
We anticipate that our research and development
expenses will increase significantly as a result of our expanded development and commercialization efforts related to clinical
trials, drug development, and development of strategic and other relationships required ultimately for the licensing, manufacture
and distribution of our immunotherapies. We regard to three of our immunotherapies as major research and development projects.
The timing, costs and uncertainties of those projects are as follows:
ADXS-HPV - Phase 2 CIN 2/3 Trial Summary Information (U.S.:
target enrollment: 120 Patients)
The ADXS-HPV CIN 2/3 study is a randomized, single blind, placebo
controlled Phase 2 dose-ranging study designed to assess the safety and efficacy of ADXS-HPV in up to 3 different dose cohorts:
·
Cost incurred through July 31, 2012: approximately $4.9 million.
·
Estimated future clinical costs: approximately $2.3 million.
·
Anticipated Timing: commenced in March 2010 (with patient dosing having commenced in June 2010); reporting of low dose
cohort in early 2012, mid dose cohort is actively enrolling; completion October 2012 or beyond. High dose cohort commenced recruiting
in April 2012, completion anticipated in February-March 2013.
Uncertainties:
·
The FDA (or relevant foreign regulatory authority) may place the project on clinical hold or stop the project;
23
·
One or more serious adverse events in otherwise healthy patients enrolled in the trial;
·
Lack of clinical benefit;
·
Difficulty in recruiting patients;
·
Delays in the program;
·
Material cash flows; and
·
Anticipated Timing: 2012/2013 and dependent upon completion and results from each dose cohort adequate fund raising, entering
    a licensing deal or pursuant to a marketing collaboration subject to regulatory approval to market and sell the product.
ADXS-HPV - Phase 2 Cervical Cancer Trial Summary Information
(India: target enrollment: 110 Patients)
The ADXS-HPV cervical cancer trial in India is a Phase 2 study
of ADXS-HPV +/- Cisplatin in patients with recurrent or refractory cervical cancer that has failed previous treatment:
·
Cost incurred through July 31, 2012: approximately $2.3 million.
·
Estimated future clinical costs: approximately $2.5 million.
·
Anticipated Timing: commenced in November 2010; reporting of preliminary survival data began in January 2012, completion
    2012 or beyond.
Additional Uncertainties:
·
One or more serious adverse events in these advanced cancer patients enrolled in the trial; and
·
Lack of clinical benefit.
ADXS-HPV - Phase 2 Cervical Cancer Trial Summary Information
(U.S. GOG/NCI: target enrollment: 67 Patients)
The ADXS-HPV cervical cancer trial in the US is a randomized,
active therapy controlled Phase 2 study to assess the safety and efficacy of ADXS-HPV +/- cisplatin as second line therapy for
the treatment of recurrent or refractory cervical cancer that has not responded to previous treatment:
·
Cost incurred through July 31, 2012: Minimal
.
·
Estimated future clinical costs: $500,000 (NCI underwriting costs of $4.0 million to $5.0 million).
·
Anticipated Timing: commenced September 2011 and open to enrollment; 1st patient dosed on January 9, 2012; completion
    2013 and beyond.
Additional Uncertainties:
·
Unknown timing in recruiting patients and conducting the study based on GOG/NCI controlled study; and
·
Delays in the program;
·
One or more serious adverse events in these advanced cancer patients enrolled in the trial; and
·
Lack of clinical benefit.
ADXS-HPV - Phase 2 Cancer of the Head and Neck Trial Summary
Information (U.K. CRUK: target enrollment: 45 Patients)
The ADXS-HPV head and neck cancer trial is a Phase 1/2 dose
escalation trial of ADXS-HPV in patients with head & neck cancer:
·
Cost incurred through July 31, 2012: Minimal.
·
Estimated future clinical costs: approximately $50,000 (CRUK to underwrite costs of $3.0 million to $4.0 million).
·
Anticipated Timing: the CRUK is funding a study of up to 45 patients at 3 UK sites that we expect will commence in late
    2012.
Additional Uncertainties:
·
Unknown timing in recruiting patients and conducting the study based on CRUK controlling the study;
·
Delays in the program;
·
One or more serious adverse events in these advanced patients enrolled in the trial; and
·
Lack of clinical benefit.
ADXS-HER2 Phase 1/2 Trial Summary Information (Canine Osterosarcoma:
target enrollment: 9-18 dogs)
The ADXS-HER2 canine osteosarcoma trial is a Phase 1 study
to evaluate the safety of ADXS-HER2 for the treatment of osteosarcoma in dogs:
·
Cost incurred through July 31, 2012: Minimal.
24
·
Estimated future costs: approximately $
500,000
.
·
Anticipated Timing: to be determined.
Additional Uncertainties:
·
Unknown timing in recruiting dogs and conducting the study based on Penn controlling the study;
·
Delays in the program;
·
One or more serious adverse events in these dogs enrolled in the trial; and
·
Lack of clinical benefit.
ADXS-PSA - GMP Production and Phase 1/2 Trial Summary Information
(Prostate Cancer: target enrollment: 20-35 Patients)
ADXS-PSA is an
Lm
-LLO based immunotherapy that is designed
to target PSA and intended for the treatment of castration resistant prostate cancer:
·
Cost incurred through July 31, 2012: Minimal
.
·
Estimated future costs: approximately $3.5 million.
·
Anticipated Timing: to be determined.
Additional Uncertainties:
·
FDA (or foreign regulatory authority) may not approve the study.
ADXS-HER2 - GMP Production and Phase 1/2 Trial Summary Information
(HER2 Expressing Cancer: target enrollment: 15-35 Patients)
ADXS-HER2 is an
Lm
-LLO based immunotherapy that is designed
to target the HER2 antigen and intended for the treatment of HER2 expressing cancers (breast, gastric, bladder, brain, pancreatic
and ovarian):
·
Cost incurred through July 31, 2012: Minimal.
·
Estimated future costs: to be determined.
·
Anticipated Timing: to be determined.
25
Additional Uncertainties:
·
FDA (or foreign regulatory authority) may not approve the study.
Results of Operations
Three Months Ended July 31, 2012 Compared to Three Months
Ended July 31, 2011
Revenue
We did not record any
revenue for the three months ended July 31, 2012 and 2011.
Research and Development Expenses
Research and development expenses decreased
by approximately $627,000 or 32% to approximately $1,331,000 for the three months ended July 31, 2012 as compared with approximately
$1,959,000 for the same period a year ago principally attributable to decreases in clinical trial expenses and related manufacturing
costs as well as lower overall supply costs. In addition, there was an overall decrease in compensation expense resulting from
bonuses paid to employees in the period a year ago that were not repeated in the current period.
We anticipate continued overall decrease
in R&D expenses resulting from lower clinical trial costs more than offsetting expanded development efforts primarily related
to new clinical trials and product development. In addition, expenses will be incurred in the development of strategic and other
relationships required to license, manufacture and distribute our product candidates.
General and Administrative Expenses
General and administrative expenses increased
by approximately $613,000 or 37%, to approximately $2,252,000 for the three months ended July 31, 2012 as compared with approximately
$1,638,000 for the same period a year ago. This was primarily the result of noncash expenses related to the issuance of shares
of our common stock related to the Numoda-Socius various agreements entered into in the current period resulting in certain shares
being issued to Socius. These increases were offset by decreases in cash spending for legal and consulting fees in the current
period when compared with the same period a year ago as well as decreases in compensation expense resulting from bonuses paid to
employees in the period a year ago that were not repeated in the current period.
Interest Expense
For the three months
ended July 31, 2012, interest expense decreased approximately $725,000 to approximately $1,045,000 for the three months ended July
31, 2012 as compared with approximately $1,770,000 in the period a year ago. The Company recorded less interest expense in the
current period primarily resulting from the exchange of convertible promissory notes in the aggregate principal amount of approximately
$4.5 million for (i) an aggregate of approximately 52.2 million shares of our common stock and (ii) warrants to purchase up to
approximately 5.8 million shares of our common stock. This decrease was slightly offset by additional interest expense related
to the issuance of May 2012 convertible promissory notes in the current period and the issuance of shares to JMJ under the above
mentioned Settlement Agreement, resulting in noncash expense from the recognition of a beneficial conversion feature.
Additionally, the debt discounts related
to the original fair values of both warrants and embedded derivatives are amortized to interest expense over the life of these
convertible promissory notes.
Other Expense/ Income
Other income was approximately $25,000 for
the three months ended July 31, 2012 as compared with other expense of approximately $4,000 in the same period a year ago as a
result of favorable changes in foreign exchange rates relating to transactions with certain vendors.
(Loss) on Note Retirement
For the three months ended July 31, 2012,
we recorded a charge to income of approximately $932,000 primarily resulting from the Company entering into exchange agreements
with convertible note holders in which these investors exchanged convertible promissory notes in the aggregate principal amount
of approximately $4.5 million for (i) an aggregate of approximately 52.2 million shares of our common stock and (ii) warrants to
purchase up to approximately 5.8 million shares of our common stock at an exercise price of $0.15. These charges were partially
offset by noncash income resulting from the issuance of 15 million shares in payment of $2.25 million of trade accounts payable
under a stock purchase and the July warrant exchanges.
26
For the three months ended July 31, 2011,
the Company recorded a charge to income of approximately $115,000 primarily due to the exchange by an investor of 2007 warrants
that contained anti-dilution provisions, for a larger number of warrants with no anti-dilution provisions.
Changes in Fair Values
For the three months
ended July 31, 2012, the Company recorded income from changes in the fair value of the warrant liability and embedded derivative
liability of approximately $2.4 million compared with income of approximately $9.1 million in same period a year ago. In the current
period, the Company recorded income of approximately $2.2 million resulting from a decrease in the Black-Scholes value of each
liability warrant primarily due to a decrease in our share price from $0.13, at April 30, 2012 to $0.07, at July 31, 2012.
For the three months ended July 31, 2011,
the Company recorded income from the change in fair value of the common stock warrant liability and embedded derivative liability
of approximately $9.1 million resulting from decreases in the underlying stock price (and therefore decreases in the corresponding
warrant liability and embedded derivative liability).
Potential future increases or decreases
in our stock price will result in increased or decreased warrant and embedded derivative liabilities, respectively, on our balance
sheet and therefore increased or decreased expenses being recognized in our statement of operations in future periods.
Nine Months Ended July 31, 2012 Compared to Nine Months Ended
July 31, 2011
Revenue
We did not record any
revenue for the nine months ended July 31, 2012 and 2011.
Research and Development Expenses
Research and development expenses were approximately
$5,760,000 for the nine months ended July 31, 2012 as compared with approximately $6,393,000 for the same period a year ago principally
attributable to decreases in clinical trial expenses and related manufacturing costs.
We anticipate continued overall decrease
in R&D expenses resulting from lower clinical trial costs more than offsetting expanded development efforts primarily related
to new clinical trials and product development. In addition, expenses will be incurred in the development of strategic and other
relationships required to license, manufacture and distribute our product candidates.
General and Administrative Expenses
General and administrative expenses increased
by approximately $715,000 or 20%, to approximately $4,297,000 for the nine months ended July 31, 2012 as compared with approximately
$3,582,000 for the same period a year ago. This was primarily the result of noncash expenses related to the issuance of shares
of our common stock related to the Numado-Socius various agreements entered into in the current period resulting in certain shares
being issued to Socius. These increases were offset by decreases in cash spending for legal and consulting fees in the current
period when compared with the same period a year ago as well as decreases in compensation expense resulting from bonuses paid to
employees in the period a year ago that were not repeated in the current period.
27
Interest Expense
For the nine months
ended July 31, 2012, interest expense increased to approximately $4,242,000 from approximately $2,721,000 primarily due to the
sale of convertible promissory notes in May, October and December 2011. In addition, the Company recorded interest expense resulting
from the issuance of 4 million shares to JMJ under the above mentioned Settlement Agreement, resulting in noncash expense from
the recognition of a beneficial conversion feature. Additionally, the debt discounts related to the original fair values of both
warrants and embedded derivatives are amortized to interest expense over the life of these convertible promissory notes.
Other Expense/ Income
Interest Income was $0 as compared with
approximately $102,000 in the same period a year ago. We record all interest earned on Optimus promissory notes to equity in accordance
with ASC 505 10-45. The Optimus promissory notes are classified in the equity section of the balance sheet as a promissory note
receivable.
Other income was approximately $26,000 for
the nine months ended July 31, 2012 as compared with other expense of approximately $49,000 in the same period a year ago as a
result of favorable changes in foreign exchange rates relating to transactions with certain vendors.
Gain (Loss) on Note Retirement
For the nine months ended July
31, 2012, we recorded a charge to income of approximately $2,173,000 primarily resulting from the Company entering into
exchange agreements with May, October and December 2011 investors in which these investors exchanged convertible promissory
notes in the aggregate principal amount of approximately $4.5 million for (i) an aggregate of approximately 52.2 million
shares of our common stock and (ii) warrants to purchase up to approximately 5.8 million shares of common stock at an
exercise price of $0.15 per share. In addition, the Company recognized noncash expense resulting from the conversion of
promissory notes, by investors, during the nine months ended July 31, 2012. These expenses were partially offset by noncash
income resulting from the issuance of shares to Numoda Corporation, which we refer to as Numoda, under a stock purchase
agreement and the July warrant exchanges.
For the nine months ended July 31, 2011,
we recorded a charge to income of approximately $109,000 primarily due to the exchange by an investor of 2007 warrants that contained
anti-dilution provisions, for a larger number of warrants with no anti-dilution provisions.. In the period a year ago, we recorded
a gain of approximately $77,000 primarily resulting from repayments of bridge notes in the same period a year ago.
Changes in Fair Values
For the nine months
ended July 31, 2012, the Company recorded income from changes in the fair value of the warrant liability and embedded derivative
liability of approximately $6.0 million compared with income of approximately $7.1 million in same period a year ago. In the current
period, the Company recorded income of approximately $4.9 million resulting from a decrease in the Black-Scholes value of each
liability warrant due primarily to a decrease in our share price from $0.15, at October 31, 2010 to $0.07, at July 31, 2012. In
addition, there was a decrease in the Black Scholes value of each liability warrant due to a smaller range of share prices used
in the calculation of the BSM Model volatility input.
For the nine months ended July 31, 2011,
the Company recorded income from changes in the fair value of the warrant liability and embedded derivative liability of approximately
$7.1 million resulting from a change in fair values of our common stock warrant liability providing a gain of $5.8 million and
a $1.3 million (gain) change in fair value associated with embedded derivative liabilities from the May 2011 Notes ($1.2 million
of the total $1.3 million gain) that were established on May 12, 2011 and revalued on July 31, 2011. The change in fair value for
both derivative instruments resulted from a decrease in our share price during the current quarter of $0.21 on April 30, 2011 ($0.18
on May 12, 2011) compared with $0.1485.
Potential future increases or decreases
in our stock price will result in increased or decreased warrant and embedded derivative liabilities, respectively, on our balance
sheet and therefore increased or decreased expenses being recognized in our statement of operations in future periods.
28
Income Tax Benefit
In the nine months ended July 31, 2012,
the income tax benefit was approximately $347,000 due to the receipt of a NOL tax credit from the State of New Jersey tax program
compared to approximately $379,000 in NOL tax credits received from the State of New Jersey tax program in the nine months ended
July 31, 2011.
Fiscal Year 2011 Compared to Fiscal Year 2010
Revenue
We recorded no revenue for the fiscal year
ended October 31, 2011 as compared with $508,481 in grant revenue for the same period a year ago resulting from multiple grants
received by the Company to support research related to our
LM
-LLO based immunotherapies (i.e. – constructs, delivery).
Research and Development Expenses
Research and development expenses increased
by approximately $3,175,000 to approximately $8,079,000 for the fiscal year ended October 31, 2011 as compared with approximately
$4,904,000 for the same period a year ago. This is mostly attributable to clinical trial expenses, which increased significantly
in the current fiscal year due to our clinical trial activity in the United States and India, initiated during the first fiscal
quarter of 2010. In addition, overall compensation expense was higher in the current fiscal year resulting from additional employees,
increased stock-based compensation and increases in salaries and bonus. Lastly, research and development expenses increased in
the current fiscal year due to higher general and due diligence costs associated with our intangible assets (patents).
We anticipate a significant increase in
research and development expenses as a result of expanded development and commercialization efforts primarily related to clinical
trials and product development. In addition, expenses will be incurred in the development of strategic and other relationships
required to license manufacture and distribute our product candidates.
General and Administrative Expenses
General and administrative expenses increased
by approximately $1,410,000 or 40%, to approximately $4,940,000 for the fiscal year ended October 31, 2011 as compared with approximately
$3,530,000 for the same period a year ago. This was the result of higher legal, professional and other consulting fees in the current
period as compared with the same period a year ago primarily due to the sale of convertible debt instruments. Overall compensation
expense was also higher in the current fiscal year resulting from bonuses paid to employees. Additionally, office and related expenses
increased in the current fiscal year resulting from the relocation of our operations to Princeton, NJ in April 2011. Lastly, we
recorded non-cash expense related to the issuance of warrants to investors and our chief executive officer.
29
Interest Expense
In the fiscal year ended October 31, 2011,
net interest expense increased by approximately $884,000 to approximately $4,699,000 compared to approximately $3,815,000 for the
same period a year ago, primarily due to the sale of convertible promissory notes in May 2011 in addition to bridge notes sold
during the fiscal year ended October 31, 2011. Additionally, the debt discounts related to the original fair values of both warrants
and embedded derivatives are amortized to interest expense over the life of such short-term convertible promissory notes.
Other Expense / Income
Interest income decreased to $0 for the
fiscal year ended October 31, 2011 as compared to approximately $80,000 in the same period a year ago. We record all interest earned
on Optimus promissory notes to equity in accordance with ASC 505 10-45. The Optimus promissory notes are classified in the equity
section of the balance sheet as a promissory note receivable.
Other expense increased to approximately
$46,000 for the fiscal year ended October 31, 2011 as compared to $0 in the same period a year ago as a result of changes in foreign
exchange rates relating to transactions with certain vendors.
Gain on Note Retirement
For the fiscal year ended October 31, 2011,
we recorded a charge to income of approximately $462,000 primarily due to the exchange by an investor of 2007 warrants that contained
anti-dilution provisions, for a larger number of warrants with no anti-dilution provisions. In the period a year ago, we recorded
a gain of approximately $124,000 resulting from the elimination of embedded conversion features associated with bridge notes that
were repaid.
Write-off of Intangible Assets
In the fiscal year ended October 31, 2011,
the Company wrote off approximately $33,000 in capitalized patent costs related to four patent applications that had either expired
or been abandoned.
Changes in Fair Values
The change in fair value of the common stock
warrant liability and embedded derivative liability increased income by approximately $9.8 million for the fiscal year ended October
31, 2011 compared to approximately $446,000 in the same period a year ago. During the current fiscal year, we recorded income as
the fair value of its warrant and embedded derivative liability decreased primarily due to declines in the underlying stock price
(and therefore decreases in the corresponding warrant liability and embedded derivative liability) from share prices as high as
$0.21, at April 30, 2011, to share prices as low as $0.14 at October 31, 2011. In addition, the number of warrants increased in
the current fiscal year, increasing the income recorded due to changes in fair value from decreases in the underlying stock price.
For the first nine months of the fiscal
year ending October 31, 2010, the Black-Scholes-Merton (BSM) values associated with these warrants and embedded derivatives increased
resulting from the increase in the price of our common stock, from $0.135 at October 31, 2009 to $0.17 at July 31, 2010. However,
from July 31 to October 31, 2010, the number of outstanding warrants increased due to a decrease in their exercise price (resulting
from a "ratchet" in September 2010). In addition, the BSM values decreased due to a decline in the price of our common
stock, and as a result we recorded some income for the full fiscal year.
Potential future increases or decreases
in our stock price will result in increased or decreased warrant and embedded derivative liabilities, respectively, on our balance
sheet and therefore increased expenses being recognized in our statement of operations in future periods.
Income Tax Benefit
In the fiscal year ended October 31, 2011,
the Company recorded an income tax benefit of approximately $379,000 in income, due to the receipt of a NOL tax credit from the
State of New Jersey tax program compared to approximately $279,000 in NOL tax credits received from the State of New Jersey tax
program in the year ended October 31, 2010.
Liquidity and Capital Resources
Since our inception through July 31, 2012,
the Company has reported accumulated net losses of approximately $45.6 million and recurring negative cash flows from operations.
We anticipate that we will continue to generate significant losses from operations for the foreseeable future.
30
Cash used in operating activities, for the
nine months ended July 31, 2012, was approximately $3.9 million, primarily as a result of the following: increased R&D spending
on clinical trials and higher general and administrative spending.
Cash used in investing activities, for the
nine months ended July 31, 2012, was approximately $351,000 resulting from spending in support of our intangible assets (patents),
costs paid to the University of Pennsylvania for patents and the purchase of equipment for use in research and development activities.
Cash provided by financing activities,
for the nine months ended July 31, 2012, was approximately $3.2 million, resulting from net proceeds received from the sale
of convertible promissory notes ($2.8 million) and the exercise of warrants of approximately $400,000.
Our limited capital resources and operations
to date have been funded primarily with the proceeds from public and private equity and debt financings, NOL tax sales and income
earned on investments and grants.  We have sustained losses from operations in each fiscal year since our inception,
and we expect losses to continue for the indefinite future, due to the substantial investment in research and development.  As
of October 31, 2011 and July 31, 2012, we had an accumulated deficit of $35,531,740 and $45,611,368, respectively and shareholders'
deficiency of $12,279,713 and $4,999,243, respectively.
During May 2011, we sold approximately $7.1
million of convertible promissory notes for a net purchase price of approximately $6.0 million and received cash from warrant exercises
in the amount of approximately $350,000. During October 2011, we sold approximately $2.3 million of convertible promissory notes
for a net purchase price of approximately $2.0 million. This cash was used to reduce overdue payables and finance day to day operations.
During January 2012, we sold approximately $1.2 million of convertible promissory notes for a net purchase price of approximately
$1.0 million. This cash was used to reduce overdue payables and finance day to day operations.
During May 2012, we closed on the sale of
approximately $1.0 million of convertible promissory notes for a net purchase price of approximately $0.7 million. This cash will
be used to reduce overdue payables and finance day to day operations.
Effective May 14, 2012, we entered
into exchange agreements with certain holders of an aggregate of approximately $4.5 million of the existing notes originally issued
either on May 12, 2011, October 31, 2011 or January 9, 2012, pursuant to which such holders received (i) an aggregate of approximately
52.2 million shares of our common stock, and (ii) warrants to purchase an aggregate of approximately 5.8 million shares of our
common stock in exchange for (i) surrendering or converting the existing notes and surrendering warrants to purchase an aggregate
of approximately 31.3 million shares of our common stock originally issued in the prior offerings, and (ii) amending the note purchase
agreements between the Company and the holders of the existing notes, dated as of May 9, 2011, October 28, 2011 or December 29,
2011.
On August 2, 2012, in a private placement
pursuant to a note purchase agreement, we issued Dr. James Patton, a member of our board of directors, a convertible promissory
note in the principal amount of $66,667 for a purchase price of $50,000. The Patton Note was issued with an original issue discount
of 25%. Dr. Patton paid $0.75 for each $1.00 of principal amount of the Patton Note purchased. The Patton Note is convertible into
shares of our common stock at a per share conversion price equal to $0.15. Additionally, Dr. Patton received a warrant to purchase
such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable upon conversion of
the Patton Note at an exercise price of $0.15 per share. The Patton Note and Patton Warrant also provide that on December 1, 2012,
solely to the extent the conversion price of the Patton Note or the exercise price of the Patton Warrant, as applicable, is less
than the Market Price (as defined in the Patton Note or the Patton Warrant, as applicable), such conversion price or exercise price,
as applicable, shall be reduced to such Market Price. The Patton Note matures on August 2, 2013. We may redeem the Patton Note
under certain circumstances. The Patton Warrant is exercisable at any time on or before August 2, 2017. The Patton Warrant may
be exercised on a cashless basis under certain circumstances. The Patton Note and the Patton Warrant each include a limitation
on conversion or exercise, as applicable, which provides that at no time will Dr. Patton be entitled to convert any portion of
the Patton Note or Patton Warrant to the extent that after such conversion or exercise, as applicable, Dr. Patton (together with
his affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock as of such date.
On August 27, 2012, we entered into a settlement
agreement with JMJ Financial pursuant to which we issued to JMJ Financial 4,076,923 shares of our common stock for the mutual release
of any claims held by our company or JMJ Financial relating to our failure to file the registration statement related to the May
2012 issuance of 4,000,000 shares of our common stock to JMJ Financial and have the registration statement declared effective by
certain prescribed deadlines.
On August 27, 2012, in a private placement
pursuant to a note purchase agreement, we issued JMJ Financial a convertible promissory note in the aggregate principal amount
of $100,000 for a purchase price of $100,000. The August 2012 Note is initially convertible at a per share conversion price equal
to $0.15. In addition, if the August 2012 Note is converted after November 30, 2012 and the market price of our common stock is
less than $0.16 per share on the date of conversion, then the conversion price shall equal 95% of the arithmetic average of the
three lowest closing trading prices for the common stock during the 15 trading day period ending on the latest complete trading
day prior to the applicable conversion date. The August 2012 Note matures on August 29, 2013. To the extent JMJ Financial does
not elect to convert the August 2012 Note as described above, the principal amount and interest of such note shall be payable in
cash at maturity. The August 2012 Note may be converted by JMJ Financial, at its option, in whole or in part. The August 2012 Note
includes a limitation on conversion, which provides that at no time will JMJ Financial be entitled to convert any portion of the
August 2012 Note to the extent that after such conversion JMJ Financial (together with its affiliates) would beneficially own
more than 4.99% of the outstanding shares of the common stock as of such date. Pursuant to the terms of the August 2012 Note, we
agreed to register up to 3,250,000 shares of our common stock which may be issuable upon conversion of the August 2012 Note with
the SEC. These shares were registered on August 31, 2012.
On September 11, 2012, in a private placement
pursuant to a note purchase agreement, we issued Asher a convertible promissory note in the aggregate principal amount of $103,500,
for a purchase price of $100,000. The Asher Note bears interest at a rate of 8%, which interest accrues, but does not become payable
until maturity or acceleration of the principal of the Asher Note. The Asher Note is convertible into shares of our common stock
at a conversion price equal to 61% of the arithmetic average of the five lowest closing trading prices for the common stock during
the 10 trading day period ending on the latest complete trading day prior to the applicable conversion date. The Asher Note matures
on June 13, 2013, nine months from its issuance date. The Asher Note may be converted by Asher, at its option, in whole or in part.
The Asher Note includes a limitation on conversion, which provides that at no time will Asher be entitled to convert any portion
of the Asher Note to the extent that after such conversion Asher (together with its affiliates) would beneficially own more than
4.99% of the outstanding shares of the common stock as of such date.
31
On September 19, 2012, in a private
placement pursuant to a note purchase agreement, we issued Hanover a convertible promissory note in the aggregate principal
amount of $132,500, for a purchase price of $132,500. On October 19, 2012, in a private placement pursuant to a note purchase
agreement, we issued Hanover a convertible promissory note in the aggregate principal amount of $132,500, for a purchase
price of $132,500. The Hanover PIPE Notes bear interest at a rate of 12%, which interest accrues, but does not become payable
until maturity or acceleration of the principal of such Hanover PIPE Notes. The Hanover PIPE Notes are convertible into
shares of our common stock at a conversion price equal to 65% of the arithmetic average of the five lowest closing trading
prices for the common stock during the 10 trading day period ending on the latest complete trading day prior to the
applicable conversion date. The Hanover PIPE Notes mature eight months from their respective issuance dates. To the extent
Hanover does not elect to convert the Hanover PIPE Notes as described above, the principal amount and interest of such
Hanover PIPE Notes shall be payable in cash at maturity. The Hanover PIPE Notes may be converted at any time by Hanover, at
its option, in whole or in part. The Hanover PIPE Notes include a limitation on conversion, which provides that at no time
will Hanover be entitled to convert any portion of the Hanover PIPE Notes to the extent that after such conversion Hanover
(together with its affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock as of
such date.
On September 25, 2012, in a private placement
pursuant to a note purchase agreement, we issued our affiliate Dr. Yvonne Paterson a convertible promissory note in the aggregate
principal amount of $100,000, for a purchase price of $100,000. The Paterson Note bears interest at a rate of 12%, compounded annually.
The Paterson Note is convertible into shares of our common stock at a conversion price equal to the arithmetic average of the five
lowest closing trading prices for the common stock during the 10 trading day period ending on the latest complete trading day prior
to the applicable conversion date. The Paterson Note matures one month from its issuance date. Additionally, Dr. Paterson will
receive a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock
issuable upon conversion of the Patterson Note at an exercise price equal to the conversion price then in effect. These warrants
have not yet been issued. The Paterson Warrant may be exercised on a cashless basis under certain circumstances. The Paterson Note
and the Paterson Warrant each include a limitation on conversion or exercise, as applicable, which provides that at no time will
Dr. Paterson be entitled to convert any portion of the Paterson Note or Paterson Warrant, to the extent that after such conversion
or exercise, as applicable, Dr. Paterson (together with her affiliates) would beneficially own more than 4.99% of the outstanding
shares of the common stock as of such date.
On September 27, 2012, in a private placement
pursuant to a note purchase agreement, we issued our employee Christine French a convertible promissory note in the aggregate principal
amount of $25,000, for a purchase price of $25,000. The French Note bears interest at a rate of 12%, compounded annually. The French
Note is convertible into shares of our common stock at a conversion price equal to the arithmetic average of the five lowest closing
trading prices for the common stock during the 10 trading day period ending on the latest complete trading day prior to the applicable
conversion date. The French Note matures one month from its issuance date. Additionally, Ms. French will receive a warrant to purchase
such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable upon conversion of
the French Note at an exercise price equal to the conversion price then in effect. These warrants have not yet been issued. The
French Warrant may be exercised on a cashless basis under certain circumstances. The French Note and the French Warrant each include
a limitation on conversion or exercise, as applicable, which provides that at no time will Ms. French be entitled to convert any
portion of the French Note or French Warrant to the extent that after such conversion or exercise, as applicable, Ms. French (together
with her affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock as of such date.
32
In October 2012, pursuant to the
terms of various Assignment Agreements, Magna Group acquired $400,075.88 in aggregate principal amount of our outstanding
convertible notes from certain third parties and entered into agreements to acquire an additional $340,522.90 in aggregate
principal amount of our outstanding convertible notes from other third parties. Pursuant to the terms of such Assignment
Agreements, we delivered two convertible notes to Magna in an aggregate principal amount of $740,598.74, in anticipation of
the closing of all of the transactions contemplated by such Assignment Agreements. On October 25, 2012, the convertible note
in the aggregate principal amount of $617,722.92 previously delivered to Magna was exchanged for a new convertible note in
the aggregate principal amount of $400,075.77, convertible into share of common stock to reflect such portion of the
convertible notes actually issued as of October 25, 2012 pursuant to the Assignment Agreements, and the remaining convertible
note in the aggregate principal amount of $122,875.82 previously delivered to Magna was returned to us and cancelled. The
Magna Exchange Note bears interest at a rate of 6%, which interest accrues, but does not become payable until maturity or
acceleration of the principal of the Magna Exchange Note. The Magna Exchange Note is convertible into shares of our common
stock at a conversion price equal to 73% of the arithmetic average of the five lowest closing trading prices for the common
stock during the 10 trading day period ending on the lowest complete trading day prior to the applicable conversion date. The
Magna Exchange Note matures on October 17, 2013. To the extent Magna does not elect to convert the Magna Exchange Note as
described above, the principal amount and interest of the Magna Exchange Note shall be payable in cash at maturity. Upon the
closing of the remaining transactions contemplated by such applicable Assignment Agreements, we are obligated to
issue additional convertible notes in the form of the Magna Exchange Note with respect to the outstanding $340,522.90 in
aggregate principal amount of convertible notes held by the third party signatories to the other Assignment Agreements, which
we anticipate to occur during the fourth quarter of 2012. The Magna Exchange Note may be converted at any time by Magna, at
its option, in whole or in part. The Magna Exchange Note includes a limitation on conversion, which provides that at no time
will Magna be entitled to convert any portion of the Magna Exchange Note to the extent that after such conversion Magna
(together with its affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock as of
such date.
Based on our available cash of
approximately $1,000 on November 5, 2012, we do not have adequate cash on hand to cover our anticipated expenses for the next
12 months.  If we fail to raise a significant amount of capital, we may need to significantly curtail or cease
operations in the near future.  These conditions have caused our auditors to raise substantial doubt about our
ability to continue as a going concern.  Consequently, the audit report prepared by our independent public
accounting firm relating to our financial statements for the year ended October 31, 2011 includes a going concern explanatory
paragraph.
Our business will require substantial additional
investment that we have not yet secured, and our failure to raise capital and/or pursue partnering opportunities will materially
adversely affect our business, financial condition and results of operations. We expect to spend substantial additional sums on
the continued administration and research and development of proprietary products and technologies, including conducting clinical
trials for our immunotherapies, with no certainty that our immunotherapies will become commercially viable or profitable as a result
of these expenditures.  Further, we will not have sufficient resources to develop fully any new immunotherapies or technologies
unless we are able to raise substantial additional financing on acceptable terms or secure funds from new partners. We cannot be
assured that financing will be available at all. Any additional investments or resources required would be approached, to the extent
appropriate in the circumstances, in an incremental fashion to attempt to cause minimal disruption or dilution.  Any
additional capital raised through the sale of equity or convertible debt securities will result in dilution to our existing stockholders.  However,
no assurances can be given that we will be able to achieve these goals or that we will be able to continue as a going concern.
We are pursuing additional
investments, grants, partnerships as well as collaborations and exploring other financing options, with the objective of minimizing
dilution and disruption.
Pursuant to the Series B purchase agreement,
as amended, Optimus has agreed to purchase, upon the terms and subject to the conditions set forth therein and described below,
up to $7.5 million of our newly authorized, non-convertible, redeemable Series B preferred stock at a price of $10,000 per share,
of which $2.84 million of Series B preferred stock remains available for purchase. Under the terms of the Series B purchase agreement,
as amended, we may from time to time until July 19, 2013, present Optimus with a notice to purchase a specified amount of Series
B preferred stock. Subject to satisfaction of certain closing conditions, Optimus is obligated to purchase such shares of Series
B preferred stock on the 10th trading day after the date of the notice. We will determine, in our sole discretion, the timing and
amount of Series B preferred stock to be purchased by Optimus, and may sell such shares in multiple tranches. Optimus will not
be obligated to purchase the Series B preferred stock upon our notice (i) in the event the closing price of our common stock during
the nine trading days following delivery of our notice falls below 75% of the closing price on the trading day prior to the date
such notice is delivered to Optimus or (ii) to the extent such purchase would result in Optimus and its affiliates beneficially
owning more than 9.99% of our outstanding common stock.
33
As of July 31, 2012, we had issued and sold
466 shares of Series B preferred stock to Optimus pursuant to the terms of the Series B purchase agreement, as amended. We received
net proceeds of approximately $4.19 million from this transaction. The aggregate purchase price for the Series B preferred stock
was $4.66 million.  As of July 31, 2012, under the terms of the Series B purchase agreement, as amended, Optimus remained
obligated, from time to time until July 19, 2013, to purchase up to an additional 284 shares of Series B preferred stock at a purchase
price of $10,000 per share upon notice from us to Optimus, if certain conditions set forth in the Series B purchase agreement,
as amended, are satisfied.
On December 30, 2010, immediately following
the closing of the sale of 72 shares of Series B preferred stock to Optimus pursuant to the terms of the Series B purchase agreement,
we redeemed 226 shares of Series B Preferred Stock held by Optimus for an aggregate redemption price of $3,141,004 consisting of
(i) cash in an amount of $76,622 and (ii) the cancellation of certain promissory notes issued by an affiliate of Optimus to us
in the aggregate amount of $3,064,382. We redeemed the shares of Series B Preferred Stock , at a price per share equal to 136%
of the Liquidation Value (defined as the original price per share plus all accrued dividends thereon) since the redemption was
prior to the first anniversary of the issuance date, as stated in the Series B purchase agreement.
In connection with the Series B preferred
equity financing, an affiliate of Optimus was granted on July 19, 2010 a warrant to purchase up to 40,500,000 shares of our common
stock at an exercise price of $0.25 to be adjusted in connection with the draw down of each tranche. As permitted by the terms
of such warrant, the aggregate exercise price of $6,291,000 received by us as of July 31, 2012 is payable pursuant to four year
full recourse promissory notes each bearing interest at the rate of 2% per year.
On September 24, 2009, we entered into a
preferred stock purchase agreement with Optimus, which we refer to as the Series A purchase agreement, pursuant to which Optimus
agreed to purchase, upon the terms and subject to the conditions set forth therein, up to $5.0 million of Series A preferred stock
at a price of $10,000 per share. As of May 13, 2010, all 500 shares of Series A preferred stock were issued and sold to Optimus.
On July 19, 2010, we issued 500 shares of Series B preferred stock to Optimus, which we refer to as the Series B exchange shares,
in exchange for the 500 shares of Series A preferred stock so that all shares of our preferred stock held or subsequently purchased
by Optimus under the Series B purchase agreement, as amended, would be redeemable upon substantially identical terms. In connection
with the Series A preferred equity financing, an affiliate of Optimus was granted on September 24, 2009 a warrant to purchase up
to 33,750,000 shares of our common stock at an exercise price of $0.20 to be adjusted in connection with the draw down of each
tranche. On January 11, 2010, the draw down date of the first tranche, the affiliate of Optimus exercised a portion of the warrant
to purchase 11,563,000 shares of common stock at an adjusted exercise price of $0.17 per share. On March 29, 2010, the draw down
date of the second tranche, the affiliate of Optimus exercised a portion of the warrant to purchase 14,580,000 shares of common
stock at an exercise price of $0.20 per share. On May 13, 2010, the draw down date of the final tranche, the affiliate of Optimus
exercised the remainder of the warrant to purchase 7,607,000 shares of common stock at an adjusted exercise price of $0.18 per
share. In each case, we agreed with Optimus and its affiliate to waive certain terms and conditions in the Series A purchase agreement
and the warrant in order to permit the affiliate of Optimus to exercise the warrant at such adjusted exercise prices prior to the
closing of the purchase of the Series A preferred stock and acquire beneficial ownership of more than 4.99% of our common stock
on the date of each exercise. As permitted by the terms of such warrant, the aggregate exercise prices of $1,965,710, $2,916,000
and $1,369,260 for the first tranche, second tranche and final tranche, respectively, received by us is payable pursuant to three
separate four year full recourse promissory notes each bearing interest at the rate of 2% per year. In addition, in connection
with the draw down of the final tranche, we issued an additional warrant to an affiliate of Optimus to purchase up to 2,818,000
shares of common stock at an exercise price of $0.18 per share, subject to customary anti-dilution adjustments (the exercise price
of which may also be paid at the option of the affiliate of Optimus in cash or by its issuance of a promissory note on the same
terms as the foregoing promissory notes). The foregoing promissory notes are not due or payable at any time that (a) we are in
default of under the Series A preferred stock purchase agreement, any loan agreement or other material agreement or (b) there are
any Series B exchange shares issued or outstanding.
On June 18, 2009, we completed the senior
bridge financing. The senior bridge financing was a private placement with certain accredited investors pursuant to which we issued
(i) senior bridge notes in the aggregate principal face amount of $1,131,353, for an aggregate net purchase price of $961,650 and
(ii) senior bridge warrants to purchase 2,404,125 shares of our common stock at an exercise price of $0.20 per share (prior to
giving effect to anti-dilution adjustments which have subsequently reduced the exercise price to $0.15 per share), subject to adjustments
upon the occurrence of certain events. Each of the senior bridge notes were issued with an original issue discount of 15% and were
convertible into shares of our common stock in certain circumstances. The senior bridge notes had an initial maturity date of December
31, 2009. We have agreed to issue additional consideration, including warrants to senior bridge note holders, all of whom agreed
to extend the maturity period beyond December 31, 2009. In August 2011, we issued 768,633 shares of common stock to the last remaining
senior bridge note holder in full satisfaction of his senior bridge note. As of October 31, 2011, no senior bridge notes remained
outstanding.
34
For the fiscal year ending October 31, 2011,
we issued to certain accredited investors (i) junior bridge notes in the aggregate principal face amount of approximately $1,887,000
(including note exchanges which resulted in additional interest of approximately $25,000) for an aggregate net purchase price of
approximately $1,670,000 and (ii) warrants to purchase 7,305,790 shares of our common stock (including additional warrants issued
as a result of note exchanges), which we refer to as junior bridge warrants, at original exercise prices ranging from $0.15 to
$0.17 per share, subject to adjustments upon the occurrence of certain events. These junior bridge notes were issued with original
issue discounts ranging from 5% to 18% and are convertible into shares of our common stock. Approximately an aggregate of $184,000
of principal amount of these junior bridge notes matured on or before November 5, 2012 and remain overdue.
For the fiscal year ending October 31, 2011,
we repaid a total of approximately $530,000 in principal value of junior bridge notes and converted approximately 1.3 million in
principal value of junior bridge notes into approximately 8,652,737 shares of our common stock. At January 31, 2011, approximately
$756,000 in principal value of junior bridge notes remained outstanding and is classified as a current liability on the balance
sheet. The indebtedness represented by these junior bridge notes is expressly subordinate to our currently outstanding senior secured
indebtedness (however, no senior bridge notes are outstanding as of October 31, 2011).
As a result of anti-dilution
protection provisions contained in certain of our outstanding warrants, we (i) reduced the exercise price from $0.20 to $0.17
per share in January 2010 and further reduced the exercise price from $0.17 to $0.15 per share in September 2010 with respect
to substantially all the warrants to purchase shares of our common stock and (ii) correspondingly adjusted the amount of
warrant shares issuable such that approximately 11.4 million additional warrant shares are issuable related to the January
2010 repricing and approximately 10.4 million additional warrant shares are issuable related to the September 2010
repricing.  In November 2012, we reduced the exercise price from $0.15 per share to $0.03146 per share with
respect to an aggregate of approximately 13  million warrants such that approximately 49 million additional shares of our
common stock are issuable upon exercise of such warrants at $0.03146 per share. As of November 5, 2012, warrants to purchase
62,308,937 shares of our common stock are exercisable at $0.03146 per share and are subject to "full ratchet"
anti-dilution protection upon certain equity issuances below $0.03146 per share (as may be further adjusted).
On September 22, 2008 we entered into a
note purchase agreement with our Chief Executive Officer, Thomas A. Moore, pursuant to which we agreed to sell to Mr. Moore, from
time to time, Moore Notes, which we refer to as the Moore Agreement. The Moore Notes have been amended from time to time. During
2010, we agreed to amend the terms of the Moore Notes such that Mr. Moore may elect, at his option, to receive accumulated interest
thereon (of which we paid $130,000 on March 17, 2010) and that we will begin to make installment payments on the outstanding principal
beginning on April 15, 2010 (of which $250,000 was paid during the year ended October 31, 2010); provided, however, that the balance
of the principal will be repaid in full as a result of either (i) consummation of our next equity financing resulting in gross
proceeds to the company of at least $6.0 million or (ii) default by the company as defined under the terms of the Moore Agreement.
Additionally, we agreed to retain $200,000 of the repayment amount for investment in our next equity financing (Mr. Moore exchanged
debt with the principal amount of $200,000 into 1,176,471 shares of our common stock in May 2010).
In connection with a loan made by Mr. Moore
to the company in the amount of $230,000, we agreed to amend and restate the terms of the Moore Notes on March 17, 2011 to increase
the principal amount by $230,000.  Under the terms of the amended and restated Moore Notes: (i) the maturity date is
the earlier of (x) the date of consummation of an equity financing by us in an amount of $6.0 million or more and (y) the occurrence
of any event of default as defined in the Moore Notes, (ii) Mr. Moore may elect, at his option, to receive accumulated interest
thereon on or after April 15, 2011 (which amounted to approximately $91,000), (iii) we will make monthly installment payments of
$100,000 on the outstanding principal amount beginning on June 15, 2011, and (iv) we may retain, at the option of Mr. Moore, $200,000
of the repayment amount for investment in our next equity financing.
Mr. Moore acquired a convertible promissory
note in the offering completed in October 2011 in exchange for the cancellation of $400,000 of outstanding indebtedness owed by
us to Mr. Moore under the Moore Notes, and Mr. Moore acquired a convertible promissory note in the offering completed in May 2012,
which we refer to as the May 2012 offering, for a purchase price of $90,000.
The Moore Notes bear interest at a rate
of 12% per annum and may be prepaid in whole or in part at our option without penalty at any time prior to maturity.
For the nine months ending July 31, 2012,
we paid Mr. Moore $35,000 in principal. As of July 31, 2012, we were not in default under the terms of the Moore Agreement. As
of July 31, 2012, we owed Mr. Moore approximately $238,000 in principal and approximately $158,000 in accrued interest under the
Moore Notes.
We received approximately $379,000 from
selling our 2009 NOL on February 4, 2011. We have received notification from the State of New Jersey that we are eligible to sell
approximately $408,000 in NOLs related to our 2010 fiscal year.
Off-Balance Sheet Arrangements
As of July 31, 2012, we had no off-balance
sheet arrangements.
Critical Accounting Estimates
The preparation of financial statements
in accordance with GAAP accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts
and related disclosures in the financial statements. Management considers an accounting estimate to be critical if:
35
·
It requires assumption to be made that were uncertain at the time the estimate was made, and
·
Changes in the estimate of difference estimates that could have been selected could have material impact in our results of
operations or financial condition.
Actual results could differ from those estimates
and the differences could be material. The most significant estimates impact the following transactions or account balances: stock
compensation, warrant valuation, impairment of intangibles, dilution caused by ratchets in the warrants and other agreements.
Share-Based Payment.
We record compensation expense associated with stock options in accordance with Financial Accounting Standards Board ("FASB")
Accounting Standards Codification ("ASC") Topic 718, Stock Compensation (formerly, FASB Statement 123R). We adopted
the modified prospective transition method provided under SFAS No. 123R. Under this transition method, compensation expense associated
with stock options recognized in the first quarter of fiscal year 2007, and in subsequent quarters, includes expense related to
the remaining unvested portion of all stock option awards granted prior to April 1, 2006, the estimated fair value of each option
award granted was determined on the date of grant using the Black-Scholes option valuation model, based on the grant date fair
value estimated in accordance with the original provisions of SFAS No. 123.
We estimate the value of stock options awards
on the date of grant using the Black-Scholes-Merton option-pricing model. The determination of the fair value of the share-based
payment awards on the date of grant is affected by our stock price as well as assumptions regarding a number of complex and subjective
variables. These variables include our expected stock price volatility over the term of the awards, expected term, risk-free interest
rate, expected dividends and expected forfeiture rates. The forfeiture rate is estimated using historical option cancellation information,
adjusted for anticipated changes in expected exercise and employment termination behavior. Our outstanding awards do not contain
market or performance conditions; therefore we have elected to recognize share based employee compensation expense on a straight-line
basis over the requisite service period.
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 relative to
new grants may differ significantly from what we have recorded in the current period. There is a high degree of subjectivity involved
when using option-pricing models to estimate share-based compensation under ASC 718. Consequently, there is a risk that our estimates
of the fair values of our share-based compensation awards on the grant dates may bear little resemblance to the actual values realized
upon the exercise, expiration, early termination or forfeiture of those share-based payments in the future. Employee stock options
may expire worthless or otherwise result in zero intrinsic value as compared to the fair values originally estimated on the grant
date and reported in our financial statements. Alternatively, value may be realized from these instruments that are significantly
in excess of the fair values originally estimated on the grant date and reported in our financial statements.
Warrants
Warrants were issued in connection with
the equity financings completed in October 2007, the sale of preferred stock, and our short-term convertible promissory notes issued
from June 2009 through October 2011. At July 31, 2012, we estimated the fair value of the outstanding instruments using the Black-Scholes-Merton
valuation model (BSM Model), which takes into account a variety of factors, including historical stock price volatility, risk-free
interest rates, remaining term and the closing price of our common stock. For those warrants with anti-dilution provisions, we
utilized multiple BSM values in order to estimate fair value. Changes in assumptions used to estimate the fair value of these derivative
instruments could result in a material change in the fair value of the instruments. We believe the assumptions used to estimate
the fair values of the warrants are reasonable.
As of November 5, 2012, we had outstanding warrants to purchase 149,786,934 shares of our common stock
(adjusted for anti-dilution provisions to date) certain of which have an exercise price of $0.15 per share. These warrants include
25,560,000 warrants owned by Optimus as part of the Series B purchase agreement. As of November 5, 2012, warrants to purchase 62,308,937
shares of our common stock are currently exercisable at $0.03146 per share and are subject to "full ratchet" anti-dilution
protection upon certain equity issuances below $0.03146 per share (as may be further adjusted).
Embedded Conversion Feature
Substantially all of our convertible promissory
notes contain embedded conversion features. At July 31, 2012, we estimated the fair value of these embedded conversion features
using the BSM Model, which takes into account a variety of factors, including historical stock price volatility, risk-free interest
rates, remaining term of the notes and closing price of our common stock. These embedded conversion features are recorded as liabilities
on the balance sheet. Changes in assumptions used to estimate the fair value of these derivative instruments could result in a
material change in the fair value of the instruments. We believe that the assumptions used to estimate the fair values of the warrants
are reasonable.
36
New Accounting Pronouncements
Management does not believe that any other
recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying
financial statements.
DESCRIPTION OF BUSINESS
General
We are a development stage biotechnology
company with the intent to develop safe and effective immunotherapies for cancer and infectious diseases. These immunotherapies
are based on a platform technology under exclusive license from Penn that utilizes live attenuated
Listeria monocytogenes
bioengineered to secrete antigen/adjuvant fusion proteins. These
Lm
-LLO strains use a fragment of the protein listeriolysin
(LLO), fused to a tumor associated antigen (TAA) or other antigen of interest. We believe these
Lm
-LLO agents redirect the
potent immune response to
Lm
which are inherent in humans, to the TAA or antigen of interest. The immune response to a live,
metabolically competent pathogen is much more complex than the response to a synthetic or organic molecule and may enable a more
comprehensive therapeutic outcome than current treatment modalities. We believe this to be a broadly enabling platform technology
that can be applied to the treatment of many types of cancers and infectious diseases.
The discoveries that underlie this innovative
technology are based upon the work of Yvonne Paterson, Ph.D., Professor of Microbiology at Penn.
Lm
-LLO based immunotherapies
stimulate the immune system to induce antigen-specific anti-tumor immune responses involving both innate and adaptive arms of the
immune system. In addition, this technology facilitates the immune response by altering the microenvironment of tumors to make
them more susceptible to immune attack.
We have focused our initial development
efforts on therapeutic immunotherapies targeting HPV-associated diseases: cervical intraepithelial neoplasia, recurrent or refractory
cervical cancer, and head and neck cancer. In addition we have developed immunotherapies for prostate cancer, and HER2 expressing
cancers (such as breast, gastric, bladder, brain, pancreatic and ovarian cancer). Our lead drug candidates in clinical development
are as follows:
Immunotherapy
Indication
Stage of Clinical Development
ADXS-HPV
Cervical Cancer
Phase 1
Company sponsored & completed in 2007 with 15 patients.
Cervical Intraepithelial Neoplasia
Phase 2
Company sponsored study, initiated in March 2010 in the US. The Company completed enrollment of the
    low-dose cohort in September 2011 (41 patients) and in June 2012 (40 patients) in the mid-dose cohort.
Cervical Cancer
Phase 2
Company sponsored study initiated in November 2010 in India in 110 patients with recurrent or refractory
    cervical cancer. The Company completed enrollment (110 patients) in May 2012.
Cervical Cancer
Phase 2
The Gynecologic Oncology Group (GOG) of the National Cancer Institute is conducting a study in 67
    patients     with recurrent or refractory cervical cancer which is currently open to enrollment. As of October 3, 2012, 6 out
    of 67     patients have     been enrolled in the safety run-in phase.
Head & Neck Cancer
Phase 1
The Cancer Research UK (CRUK) is funding a study of 27  patients with head & neck cancer at 3 UK
    sites. As of October 3, 2012, 6  patients have been enrolled.
ADXS-PSA
Prostate Cancer
Phase 1
Company sponsored (timing to be determined).
ADXS-HER2
HER2 Expressing Cancer
Phase 1
Company sponsored (timing to be determined).
ADXS-HER2
Canine Osteosarcoma
Phase 1
Company sponsored study, initiated in July 2011 in the US. As of October 3, 2012, 2 dogs have been dosed.
We have sustained losses from operations
in each fiscal year since our inception, and we expect these losses to continue for the indefinite future, due to the substantial
investment in research and development.  As of October 31, 2011 and July 31, 2012, we had an accumulated deficit of $35,531,740
and $45,611,368, respectively and shareholders' deficiency of $12,279,713 and $4,999,243, respectively.
To date, we have outsourced many functions
of drug development including manufacturing and clinical trials management. Accordingly, the expenses of these outsourced services
account for a significant amount of our accumulated loss. We cannot predict when, if ever, any of our immunotherapies will become
commercially viable or approved by the FDA. We expect to spend substantial additional sums on the continued administration and
research and development of proprietary products and technologies, including conducting clinical trials for our immunotherapies,
with no certainty that our immunotherapies will become commercially viable or profitable as a result of these expenditures.
37
Strategy
During the next 24 months, data from two
Phase 2 trials evaluating the safety and efficacy of ADXS-HPV, our first
Lm
-LLO based immunotherapy, will mature on the
safety and effectiveness of ADXS-HPV in recurrent and refractory cervical cancer and its dysplasic precursor, CIN 2/3. In the U.S.,
we have initiated a randomized, placebo controlled single blind, dose ranging Phase 2 study of ADXS-HPV with three dose cohorts
in patients with CIN 2/3. In India, we have an ongoing randomized Phase 2 study in 110 patients with recurrent or refractory cervical
cancer who have failed previous therapies.
In January 2012, we initiated a NCI-supported
study in recurrent or refractory cervical cancer. In the next three months, we will initiate a trial in head and neck cancer study
with CRUK in the United Kingdom, which we refer to as the U.K. We have signed an agreement to collaborate on a clinical trial with
the Gynecologic Oncology Group (GOG), one of NIH's clinical research groups, which will underwrite the cost and whose members
will execute the trial. It is expected that this U.S. Phase 2 multi-center study will result in a cost avoidance benefit to us
valued at between $7 million to $8 million in trial expenses. The CRUK initial study is expected to be worth between $2.5 and 3.5
million.
We have entered into a clinical trials agreement
with the School of Veterinary Medicine at Penn to investigate the use of ADXS-HER2 for the treatment of osteosarcoma in dogs, a
leading cancer killer of large dogs.
We have also initiated GMP production of
two new
Lm
-LLO based immunotherapies for use in clinical trials which will be initiated in 2012 once the regulatory requirements
for the respective INDs have been completed and approved. Planning has begun for Phase 1 trials for ADXS-PSA for the treatment
of prostate cancer, and ADXS-HER2 for the treatment of HER2 expressing cancers.
Although we have been successful in obtaining
clinical funding from the U.S. and the U.K., in order to implement our strategy, we will require substantial additional investment
in the near future. Our failure to raise capital or pursue partnering opportunities will materially and adversely affect both our
ability to commence or continue the clinical trials described above and our business, financial condition and results of operations,
and could force us to significantly curtail or cease operations. Further, we will not have sufficient resources to fully develop
any new immunotherapies or technologies unless we are able to raise substantial additional financing on acceptable terms or secure
funds from new partners.
Given our expertise in bioengineering live
attenuated
Listeria
to create immunotherapies for many different diseases, our longer term strategy will be to license the
commercial development of ADXS-HPV for the indications of CIN 2/3, cervical cancer and head and neck cancer. On a global basis,
these indications are extremely large and will require one or more significant partners. We do not intend to engage in commercial
development beyond Phase 2 without entering into one or more partnerships or a license agreement.
We intend to continue to devote a substantial
portion of our resources to basic science and the continued preclinical development and optimization of our platform technology
so as to develop it to its full potential and to find additional new drug candidates. These activities may require significant
financial resources, as well as areas of expertise beyond those readily available. In order to provide additional resources and
capital, we may enter into research, collaborative or commercial partnerships, joint ventures, or other arrangements with competitive
or complementary companies, including major international pharmaceutical companies or universities.
Background
Cancer
Cancer is the second largest cause of death
in the U.S., exceeded only by heart disease. The cost of treating cancer patients in 2008 was estimated to be $228.1 billion in
healthcare costs and another $188 billion in indirect costs resulting from morbidity and lost productivity (source: Facts &
Figures 2009, American Cancer Society).
The National Institutes of Health estimated the 2010 overall
annual costs of cancer:
Total cost: $263.8 billion
Direct medical costs (total of all health
expenditures): $102.8 billion
Indirect morbidity costs (cost of lost productivity
due to illness): $20.9 billion
Indirect mortality costs (cost of lost productivity
due to premature death): $140.1 billion
38
The American Cancer Society states that
cancer is the second most common cause of death and that 571,950 people in the US will die from cancer in 2011.
HPV / CIN
According to the American Cancer Society,
in the United States, more than 6 million people (men and women) get an HPV infection every year. In fact, at least one-half of
the people who have ever had sex will have HPV at some time in their life. In 2009, the CDC reported that about 45% of women aged
20 to 24 had HPV. The American Cancer Society's estimates for newly diagnosed cervical cancer in the U.S. in 2010 was 12,200
and about 500,000 patients per year are diagnosed with high grade CIN (2-3), the predecessor condition to cervical cancer (source:
Jones HW, Cancer 1995:76:1914-18; Jones BA and Davey, Arch Pathol Lab Med 2000; 124:672-81).
Prostate Cancer
According to the American Cancer Society,
prostate cancer is the most common type of cancer found in American men, other than skin cancer. Prostate cancer is the second
leading cause of cancer death in men, behind only lung cancer. One man in six will get prostate cancer during his lifetime, and
one man in 36 will die of this disease.
HER2 Expressing Cancers
HER2 (human epidermal growth factor receptor
2) is a gene which is over expressed in a percentage of certain types of cancers such as breast, gastric, bladder, pancreatic,
brain, and ovarian. The American Cancer Society estimates that in 2011 in the US there will be 230,480 diagnoses of invasive breast
cancer, 21,520 new cases of stomach cancer, 69,250 new cases of bladder cancer, 44,030 new cases of pancreatic cancer, 22,340 new
cases of brain/spinal cord cancer, and 21,900 new cases of ovarian cancer.
Canine Osteosarcoma
According the University of Pennsylvania
School of Veterinary Medicine, canine osteosarcoma (bone cancer) is most commonly seen in large breed dogs. It is an aggressive
cancer with a poor prognosis. Despite chemotherapy and limb amputation, dogs will most likely succumb to the illness within one
year.
Immune System and Normal Antigen Processing
People are continually confronted with potentially
infectious agents.  The immune system has evolved multiple mechanisms to fight disease, including innate immunity, two
forms of adaptive immunity-humoral (antibody) and cellular immunity that mobilize the body's natural defenses against these
foreign agents to eliminate them.
Innate Immunity:
Innate immunity is the first step in the
recognition of a foreign antigen.  It is a non-specific protective response that also underlies the generation of an
adaptive (antigen- specific) immune responses. It is characterized by the release of various soluble mediators of immune response
such as cytokines, chemokines and other molecules.
Exogenous pathway of Adaptive Immunity (Class II
pathway):
Proteins and foreign molecules ingested
by Antigen Presenting Cells, or APCs, are broken down inside digestive vacuoles into small pieces, and the pieces are combined
with proteins called Class 2 MHC (for Major Histocompatibility Complex) in a part of the cell called the endoplasmic reticulum.  The
MHC-peptide, termed and MHC-2 complex from the Class 2 (or exogenous) pathway, migrates to the cell surface where it interacts
with certain classes of lymphocytes (CD4+) called helper T-cells that support the function of cytotoxic T-lymphocytes (killer T
cells).  This interaction renders CD4+ cells antigen specific, and they express their function whenever they encounter
the antigen to which they've been activated.  This system is called the exogenous pathway, since it is the prototypical
response to an antigen from outside of the cell, like bacteria.
Endogenous pathway of Adaptive Immunity (Class
I pathway):
The endogenous pathway provides immune protection
against antigens created within the cytoplasm of the APC (as opposed to exogenous molecules contained within the digestive phagosome).  These
intracellular antigens are typically broken down within the cell and directed to the endoplasmic reticulum, where they are incorporated
into an MHC-1 protein and trafficked to the cell surface.  MHC-1 complexes activate CD8+ cytotoxic T-lymphocytes, which
then kill cells that express the specific antigen to which these cells are now activated.  The endogenous pathway is
needed for elimination of virus-infected or cancerous cells.
39
Listeria
generated adaptive immune
responses are directed at the activation of T cells.
Listeria
tends not to stimulate antibody formation.
Listeria
based vaccines are unique
for many reasons, one of which is that unlike viral vectors, DNA or peptide antigens or other vaccines,
Listeria
stimulates
all of the above mechanisms of immune action. We use a live attenuated bioengineered
Listeria
that secrets an antigen-adjuvant
fusion protein that stimulates the body's own immune system to target cancer and infectious diseases. Our technology allows
the body to recognize tumor-associated antigens or antigens of interest as foreign, thus creating the immune response needed to
attack the cancer or infectious disease. It does this by utilizing a number of biological characteristics of the
Listeria
bacteria and the Advaxis proprietary antigen-adjuvant fusion protein technology to stimulate multiple therapeutic immune mechanisms
simultaneously in an integrated and coordinated manner.
Mechanism of Action
Wild type
Listeria
is a common environmental
microbe that is found in the soil, on leafy vegetables, and in meat and dairy products. People are constantly exposed to it and
most people are unaware of that fact that they have ingested
Listeria
. However, wild type
Listeria
causes nearly
1,600 reported illnesses each year in the US, typically as a result of contaminated food and results in more than 1,400 hospitalizations
and 250 deaths.
Listerial
infections frequently present as severe, persistent flu-like symptoms and if detected early, can
be easily treated with many common antibiotics. Severe infections are rare and if not detected early are usually not diagnosed
until
Listeria
can be cultured from the cerebrospinal fluid, at which time it is very difficult to treat. Advaxis has bioengineered
strains of
Listeria monocytogenes
for use as vectors for immunotherapy. These vectors are highly attenuated, making them
much less pathogenic than wild type
Listeria
. Advaxis
Lm
-LLO based immunotherapies are between 10,000 and 100,000
times less pathogenic than wild type
Listeria
.
Live
Listeria
is a strong stimulator
of both the innate and adaptive arms of the immune system. The innate immune response can primarily be attributed to pattern recognition
receptors on immune cells recognizing patterns on the bacterium, leading to a rapid, non-specific activation of the immune system.
This response itself provides a basic level of immune protection, but at the same time serves to prime the adaptive arm of the
immune system to respond in an antigen specific manner.
Antigen presenting cells (APCs) are phagocytic
sentinel cells that circulate through the body taking up and breaking down foreign and dying cells. The breakdown of the antigens
that APCs take up result in peptide fragments that are presented on the surface of the APC to activate CD4+ and CD8+ T cells to
target specific cells that express these antigens. APCs actively and rapidly phagocytose
Listeria
, so in effect Advaxis
Lm
-LLO based immunotherapies are specifically targeted to the cells that will lead to a strong adaptive immune response.
As
Listeria
is taken up by the APCs, it enters a cellular compartment called the phagolysosome, where enzymes kill and degrade
the majority of the bacteria. A small percentage (5-10%), escape from this compartment and enter the cytoplasm of the cell, where
they produce the LLO-antigen fusion protein that they have been bioengineered to express.
The specific details of the intracellular
life cycle of
Listeria
are important for the understanding of the Advaxis platform technology. In order to escape from the
phagolysosome of the APC,
Listeria
produces a protein called listeriolysin O (LLO), which forms pores in the membrane of
the phagolysosome allowing
Listeria
to escape into the cytosol. Once in the cytoplasm the bacterium ceases to secrete LLO,
which protects the cell wall and the host cell. It is at this stage however that the fusion LLO-antigen protein is produced and
secreted by
Listeria
. This version of LLO does not form pores and harm the cell as it is truncated and engineered to be
targeted to the cellular degredative machinery, leading to peptides that can be presented to T cells on the surface of the APC.
Due to the attenuation of the
Listeria
strains used in Advaxis immunotherapies, the
Listeria
do not replicate and
spread from cell to cell at this point, limiting the potential for listeriosis from our immunotherapies.
Listeria
and/or
Lm
-LLO fusion
proteins stimulate many complimentary immune mechanisms of action:
1.
Strong innate immune effects.
a.
Lm
-LLO vaccines are cleared in SCID and IFN-
g
knockout
mice
.
2.
Strong adaptive immune effects.
a.           High
titers of activated CD4+T cells, CD8+T cells, APCs, and TILs.
3.
A brief exposure to the antigen results in normal memory generation.
a.            Antibiotics
immediately after dosing do not impair long term responses.
4.
Alters the tumor microenvironment
.
a.           Reduces
both Tregs and MDSCs in tumors but not in other tissues or systemically.
5.
Induces cytokine and chemokine secretion from non-infected cells adjacent to infected cells.
6.
Synthesis of new immune cells and maturation of existing cells.
a.           Marrow, tissue, and blood
borne effects.
7.
Chemotaxis and extravasation of activated immune cells.
a.           Chemokine
mediated effects and effects directly on vascular endothelium increase TIL.
40
8.
Upregulation of tumor chemokines and chemokines receptors.
a.           CXCL8,
CXCL9, CXCL10, CXCR3 on T cells in TDLN.
9.
Epitope and antigen spreading
.
a.           Vaccines
directed against one antigen result in immune activation against other antigens.
10.
Predominantly a cellular immune response.
a.           Little
antibody
 formation so Listeria is not neutralized by humoral immunity. This is a
 useful property for cellular immune vaccines because
it allows for follow-up dosing.
Figure 1: Live attenuated bioengineered
LM
(
Lm
-LLO) being phagocytosed by an APC leading to the stimulation of CD4+ and CD8+ T cells.
Research and Development Program
Overview
We use live attenuated bioengineered
Listeria
monocytogenes as a therapeutic agent. We start with a live, attenuated strain of
Listeria
, and then add to this bacterium
multiple copies of a plasmid that encodes a fusion protein sequence that includes a fragment of the LLO molecule joined to the
tumor associated antigen or antigen of interest. This fusion protein is secreted by the
Listeria
inside the antigen presenting
cells, and other cells that
Listeria
infects which then results in the immune response as discussed above.
We can fuse different antigens of interest
(specific to tumors or for infectious disease), to LLO making this a versatile platform technology. Our first
Lm
-LLO based
immunotherapy, ADXS-HPV, uses an antigen that is present in HPV. HPV induced disease include CIN, cervical cancer, anal cancer,
vulvar cancer, penile cancer, head and neck cancer, and others. ADXS-PSA is directed against PSA, an important antigen in prostate
cancer. ADXS-cHER2 that uses Advaxis proprietary chimeric HER2 antigen is directed to HER2, an antigen found in HER2 expressing
cancers such as breast, gastric, bladder, pancreatic, CNS, and ovarian cancer. By varying the antigen, we create different therapeutic
agents that induce an immune response that should be useful in treating multiple disease states.
Collaborations, Partnerships and Agreements
University of Pennsylvania
On July 1, 2002 we entered into a 20-year
exclusive worldwide license agreement with Penn with respect to the innovative work of Yvonne Paterson, Ph.D., Professor of Microbiology
in the area of innate immunity, or the immune response attributed to immune cells, including dendritic cells, macrophages and natural
killer cells, that respond to pathogens non-specifically.  This agreement has been amended from time to time and was
amended and restated as of February 13, 2007.
41
This license, unless sooner terminated in
accordance with its terms, terminates upon the later (a) expiration of the last to expire Penn patent rights; or (b) twenty years
after the effective date of the license. The license provides us with the exclusive commercial rights to the patent portfolio developed
at Penn as of the effective date of the license, in connection with Dr. Paterson and requires us to raise capital and pay various
milestone, legal, filing and licensing payments to commercialize the technology. In exchange for the license, Penn received shares
of our common stock which currently represents approximately 0.2% of our common stock outstanding on a fully-diluted basis. In
addition, Penn is entitled to receive a non-refundable initial license fee, license fees, royalty payments and milestone payments
based on net sales and percentages of sublicense fees and certain commercial milestones. Under the licensing agreement, Penn is
entitled to receive 1.5% royalties on net sales in all countries. Notwithstanding these royalty rates, we have agreed to pay Penn
a total of $525,000 over a three-year period as an advance minimum royalty after the first commercial sale of a product under each
license (which we are not expecting to begin paying within the next five years). In addition, under the license, we are obligated
to pay an annual maintenance fee of $100,000 on December 31, 2010, 2011 and 2012 and each December 31st thereafter for the remainder
of the term of the agreement until the first commercial sale of a Penn licensed product. Overall the amended and restated agreement
payment terms reflect lower near term requirements but the savings are offset by higher long term milestone payments for the initiation
of a Phase 3 clinical trial and the regulatory approval for the first Penn licensed product. We are responsible for filing new
patents and maintaining and defending the existing patents licensed to use and we are obligated to reimburse Penn for all attorneys
fees, expenses, official fees and other charges incurred in the preparation, prosecution and maintenance of the patents licensed
from Penn.
Furthermore, upon the achievement of the
first sale of a product in certain fields, Penn will be entitled to certain milestone payments, as follows: $2.5 million will be
due for first commercial sale of the first product in the cancer field.  In addition, $1.0 million will be due upon the
date of first commercial sale of a product in each of the secondary strategic fields sold.
As a result of our payment obligations under
the license, assuming we have net sales in the aggregate amount of $100.0 million from our cancer products, our total payments
to Penn over the next ten years could reach an aggregate of $5.4 million.  If over the next 10 years our net sales total
an aggregate amount of only $10.0 million from our cancer products, total payments to Penn could be $4.4 million.
Pursuant to Amendment No. 1 to the Penn
license agreement, which we entered into on March 26, 2007 with Penn the list of list of intellectual property licensed to us was
amended to include Penn docket R3702, The Construction of L. Monocytogenes Strains that Express and Secrete HER-2neu Fragments
and the Efficacy of such Strains in Inducing a CTL Response and Controlling Tumor Growth in Vivo. Amendment No. 1 also required
us to pay to Penn an option exercise fee of $10,000 and to pay for all historically accrued patent and licensing expenses incurred
by Penn before the effective date of Amendment No. 1, totaling approximately $33,800 as of March 22, 2007. The Penn license agreement,
as amended, terminates upon the expiration of the last to expire or become abandoned of the patent rights licensed thereunder;
provided, that Penn may earlier terminate the Penn license agreement upon the occurrence of certain defaults by us, including,
but not limited to, a material breach by us of the Penn license agreement that is not cured within 60 days after notice of the
breach is provided to us.
On May 10, 2010, we entered into a
second amendment to the Penn license agreement pursuant to which we acquired exclusive licenses for an additional 27 patent
applications related to our proprietary Listeria vaccine technology.  As per the terms of the second amendment, we
acknowledged that we owed Penn approximately $249,000 in patent expenses and $130,000 in sponsored research agreement fees;
such fees being paid prior to October 31, 2010. As part of this amendment we exercised our option for the rights to seven
additional patent dockets, including 23 additional patent applications, for (i) an option exercise fee payable in the form of
$35,000 in cash and $70,000 in our common stock (approximately 388,889 shares of our common stock based on a price of $0.18
per share) and (ii) the assumption of certain historical costs of approximately $462,000 associated with the 23 additional
patent applications acquired under the second amendment.  As of November 5, 2012, approximately $138,000 of these
historical costs remained outstanding.
On December 12, 2011, we entered into a
third amendment to the Penn license agreement pursuant to which we acquired an exclusive worldwide license agreement for additional
patent applications from the laboratory of Dr. Yvonne Paterson. One application pertains to the antigen ISG15 from Penn for use
in our
Lm
-LLO based immunotherapies for the treatment of cancer and other diseases. This intellectual property resulted
from work performed in the laboratory of Dr. Yvonne Paterson that demonstrated ISG15 was an effective immunological target for
the treatment of a number of different cancers in animal models, including ovarian, colon, breast and other cancers. SG-15 expression
is elevated in "triple negative" breast cancer, a disease in which HER2, estrogen and progesterone receptors are lacking,
and thus has no defined therapeutic immune target at the moment. An
Lm
-LLO vaccine that targets ISG-15 may prove to be an
effective agent in an area where there is a significant unmet medical need.
Strategically we intend to maintain our
relationship with Dr. Paterson and Penn to generate new intellectual property and to exploit all existing intellectual property
covered by the license.
Penn is not involved in the management of
our company or in our decisions with respect to exploitation of the patent portfolio.
Dr. Yvonne Paterson
Dr. Paterson is a Professor in the Department
of Microbiology at Penn and the inventor of our licensed technology.  She is a fellow of the American Academy for the
Advancement of Science, and has been an invited speaker at national and international health field conferences and leading academic
institutions.  She has served on many federal advisory boards, such as the NIH expert panel to review primate centers,
the Office of AIDS Research Planning Fiscal Workshop, and the Allergy and Immunology NIH Study Section.  She has written
over one hundred publications in immunology with emphasis during the last several years on the areas of HIV, AIDS and cancer research.  She
has trained over forty post-doctoral and doctoral students in the fields of Biochemistry and Immunology.
42
Consulting Agreement
.  On
January 28, 2005 we entered into a consulting agreement with Dr. Paterson, which expired on January 31, 2009.  Dr. Paterson
has advised us on an exclusive basis on various issues related to our technology, manufacturing issues, establishing our lab, knowledge
transfer, and our long-term research and development program.  Pursuant to the expired agreement, Dr. Paterson received
$7,000 per month.  Upon the closing of an additional $9.0 million in equity capital, Dr. Paterson's rates would
have increased to $9,000 per month.  Also, under the prior Agreement, on February 1, 2005, she received options to purchase
400,000 shares of our common stock at an exercise price of $0.287 per share which are now fully vested.  In November
2011, we granted Dr. Patterson options to purchase 600,000 shares of our common stock at an exercise price of $0.148 per share.
In total she holds 704,365 shares of our common stock and options to purchase 1,169,048 shares of our common stock, of which options
569,048 are fully vested. We are currently negotiating a follow-on consulting agreement with Penn and Dr. Paterson.
Cancer Research UK
On February 9, 2010, we announced that Cancer
Research UK (CRUK), the UK organization dedicated to cancer research, has agreed to fund the cost of a clinical trial to investigate
the use of ADXS-HPV, our Lm-LLO based immunotherapy targeted to HPV, for the treatment of head and neck cancer. This Phase 1/2
clinical trial will investigate the safety and efficacy of ADXS-HPV in 45 head and neck cancer patients who have previously failed
treatment with surgery, radiotherapy and chemotherapy – alone or in combination. We will provide the study drug, with all
other associated costs to be funded by CRUK. The study is to be conducted at 3 sites in the UK (Aintree Hospital at the University
of Liverpool, The Royal Marsden Hospital in London, and Cardiff Hospital at the University of Wales).
National Cancer Institute Gynecologic
Oncology Group
On December 15, 2009, we announced that
GOG will conduct a multicenter, Phase 2 clinical trial of ADXS-HPV, our
Lm
-LLO based immunotherapy targeted to HPV, in 67
patients with recurrent or refractory cervical cancer who have failed prior cytotoxic therapy. This Phase 2 trial is underwritten
by GOG and will be conducted by GOG investigators. This patient population is similar to the patient population that in the cervical
cancer study being conducted in India as well as the patients in the Phase I trial of ADXS-HPV. Under this Clinical Trial Services
Agreement, dated December 13, 2009, we are responsible for covering the costs of translational research and have agreed to pay
a total of $8,003 per patient, with the majority of the costs of this study underwritten by NCI. This agreement shall continue
in force until we receive completed case histories for all participants in the clinical trial and questions about data submitted
have been resolved, unless terminated earlier upon the occurrence of certain events, including, but not limited to, the FDA imposing
a permanent hold on the drug which is subject to the clinical trial, a material breach by us of the agreement that is not cured
within a reasonable time period after notice of the breach is provided to us, or sixty days prior written notice by either party
for any reason.
National Cancer Institute Vaccine Section
On November 1, 2010 we entered into a Cooperative
Research and Development Agreement (CRADA) with the Vaccine Section of National Cancer Institute for the development of live attenuated
Listeria
vaccines for the treatment of cancer. We will provide all live
Listeria
vaccines. NCI will use different
in vitro and in vivo models to elucidate the effect of our live attenuated
Listeria
vaccines on many different types of
immune cells, and will investigate the mechanisms by which live
Listeria
vaccines reduce cancer induced immune inhibition
that protects tumors from immune attack. We and NCI will use the results of this work to enhance the anti-tumor effects of live
Listeria
vaccines as therapeutic agents for the treatment of cancer and as therapeutic immune adjuvants that alter the tumor
milieu which will enable them to be used with other modalities of cancer treatment. We have paid a total of $150,000 pursuant to
this three year CRADA. The first patient was dosed on January 9, 2012.
University of British Columbia
We entered into a structured
collaboration with the laboratory of Dr. Tobias Kollmann at the University of British Columbia to develop live attenuated
Listeria
vaccines for the treatment of infectious disease and to develop new dosage forms of
Listeria
vaccines. The same
immune-stimulating properties that we have under development to develop live
Listeria
vaccines as safe and effective
therapies for the treatment of cancer, also may have application for the treatment of infectious disease. Dr. Kollmann is an
immunologist and neonatal vaccinologist who has published extensively on the use of
Listeria
vaccines as potential
therapeutic agents for the treatment of childhood diseases. Under the terms of this collaboration, Dr. Kollmann will use our
proprietary
Listeria
vaccine vectors for the development of novel infectious disease applications. From inception
through November 5, 2012, we have paid approximately $110,000 pursuant to this collaboration.
School of Veterinary Medicine at Penn
We have entered into a clinical trial agreement
with the School of Veterinary Medicine at Penn to investigate the use of ADXS-HER2 for the treatment of osteosarcoma in dogs.
Recipharm Cobra Biologics Limited (formerly
Cobra Biomanufacturing PLC)
43
In July 2003, we entered into an agreement
with Cobra Biomanufacturing PLC, which has recently been purchased by Recipharm AB,  for the purpose of manufacturing
our cervical cancer vaccine ADXS-HPV.  Recipharm Cobra has extensive experience in manufacturing gene therapy products
for investigational studies.  Recipharm Cobra is a manufacturing organization that manufactures and supplies biologic
therapeutics for the pharmaceutical and biotech industry.  These services include the Good Manufacturing Practices, or
GMP, manufacturing of DNA, recombinant protein, viruses, mammalian cell products and cell banking.  Recipharm Cobra's
manufacturing plan for us involves several manufacturing stages, including process development, manufacturing of non-GMP material
for toxicology studies and manufacturing of GMP material for the Phase 1 trial.  The agreement to manufacture expired
in December 2005 upon the delivery and completion of stability testing of the GMP material for the Phase 1 trial.  Recipharm
Cobra has agreed to surrender the right to $300,000 of its outstanding fees for manufacturing in exchange for future royalties
from the sales of ADXS-HPV at the rate of 1.5% of net sales, with royalty payments not to exceed $2.0 million.
On October 20, 2007, we entered into a production
agreement with Recipharm Cobra to manufacture our Phase 2 clinical materials using a new methodology now required by the U.K.,
and likely to be required by other regulatory bodies in the future.  Currently we have two agreements with Recipharm
Cobra; one to conduct ongoing stability testing of the ADXS-HPV vaccine which they have manufactured, and another to provide analytic
services and certification necessary to import ADXS-HPV for use in the U.K. head and neck study mentioned above.  From
inception through November 5, 2012, we have paid Recipharm Cobra approximately $1.6 million under all agreements.
Vibalogics GmbH
In April of 2008, we entered into a series
of agreements with Vibalogics GmbH in Cuxhaven Germany to provide fill and finish services for our final clinical materials that
were made for the scheduled clinical trials described above.  These agreements cover the fill and finish operations as
well as specific tests that have to be performed in order to release the clinical materials for human use.  We have recently
entered into agreements with Vibalogics to produce two new vaccines, ADXS-PSA and ADXS-HER2 for human use and clinical development.  As
of November 5, 2012, approximately $401,000 in invoices from Vibalogics GmbH remain outstanding.
Numoda Corporation
On June 19, 2009, we entered into a Master
Agreement and on July 8, 2009 we entered into a Project Agreement with Numoda, a leading clinical trial and logistics management
company, to oversee Phase 2 clinical activity with ADXS-HPV for the multicenter Phase 2 U.S. trial of ADXS-HPV in CIN and to act
as our U.S. CRO for the multicenter Phase 2 study of ADXS-HPV in recurrent and refractory cervical cancer being conducted in India.
The scope of this agreement covers over three years and is estimated to cost approximately $12.2 million for both trials. In May
2010, we issued 3,500,000 shares of common stock to Numoda Capital at a price per share of $0.17 in satisfaction of $350,000 of
services rendered to us by the Numoda Corporation. As of November 5, 2012, we have paid Numoda approximately $7.4 million for
clinical trial activities. The Master Agreement with Numoda terminates on June 12, 2012, or earlier upon the occurrence of certain
defaults by us, including, but not limited to, a material breach by us of the Master Agreement that is not cured within 30 days
after notice of the breach is provided to us. The Project Agreement with Numoda shall continue until the project which is the subject
of such agreement is completed, unless earlier terminated in accordance with the Master Agreement with Numoda.
On June 13, 2012, we entered into
a stock purchase agreement with Numoda, pursuant to which we issued to Numoda 15 million shares of our common stock, which
we refer to as the AR Cancellation Shares, at a purchase price per share of $0.15, in exchange for the immediate cancellation
of $2,250,000 of accounts receivables owed by us to Numoda pursuant to the Master Agreement, dated June 19, 2009, between
Numoda and us. Numoda has agreed not to sell the AR Cancellation Shares until July 3, 2012, twenty calendar days from the
closing of the transaction on June 13, 2012, which period we refer to as the Lock-Up Period. During the Lock-Up Period, we
have the option, in our sole discretion, to redeem up to 100% of the AR Cancellation Shares at a purchase price per share of
$0.15. In connection with such issuance, we have also agreed to register the resale by Numoda of the AR Cancellation Shares
with the SEC within thirty business days from the closing of the transaction on June 13, 2012. We fulfilled this obligation
by filing a registration statement on Form S-1 (File No. 333-183690) with the SEC on August
31, 2012, which was declared effective by the SEC on September 13, 2012.
Pharm-Olam International Ltd.
In April 2005, we entered into a consulting
agreement with Pharm-Olam International Ltd., which we refer to as POI, whereby POI is to execute and manage our Phase 1 clinical
trial in ADXS-HPV for a fee of $430,000 plus reimbursement of certain expenses.  As of November 5, 2012 we have an
outstanding balance due to POI of $223,620.
Wistar Institute
We are collaborating with the Wistar Institute
to explore the potential of FAP as a target for immune attack and as the basis for the development of an Advaxis immunotherapy.
Therapeutically targeting FAP (fibroblast activation protein) might significantly reduce tumor growth, as it has in some mouse
studies. There is no financial obligation in our collaboration with the Wistar Institute.
Montefiore Medical Center
44
We are collaborating with the Albert Einstein
College of Medicine and Montefiore Medical Center to develop the ADXS-PSA immunotherapy for the treatment of prostate cancer. The
goal of the collaboration is to investigate how ADXS-PSA can be combined with conventional chemo-radiation therapy to treat solid
tumors.
Patents and Licenses
Dr. Paterson and Penn have invested significant
resources and time in developing a broad base of intellectual property around the cancer vaccine platform technology for which
on July 1, 2002 we entered into a 20-year exclusive worldwide license and a right to grant sublicenses pursuant to our license
agreement with Penn.  As of November 5, 2012, Penn has 39 issued and 39 pending patents in the U.S. and other large
countries including Japan, and the European Union, through the Patent Cooperation Treaty system pursuant to which we have an exclusive
license to exploit the patents.  On May 10, 2010, we entered into a second amendment to the 20-year exclusive worldwide
license agreement with Penn, which we refer to as the Second Amendment Agreement. Pursuant to the Second Amendment Agreement, we
acquired exclusive licenses for additional patent applications related to our proprietary
Listeria
vaccine technology that
were not included in the initial agreement.  As of November 5, 2012, we owe Penn approximately $138,000 in patent
expenses pursuant to the Second Amendment Agreement.
On December 12, 2011, we entered into a
third amendment to the Penn license agreement pursuant to which we acquired an exclusive worldwide license agreement for additional
patent applications from the laboratory of Dr. Yvonne Paterson. One application pertains to the antigen ISG15 from Penn for use
in our
Lm
-LLO based immunotherapies for the treatment of cancer and other diseases. This intellectual property resulted
from work performed in the laboratory of Dr. Yvonne Paterson that demonstrated ISG15 was an effective immunological target for
the treatment of a number of different cancers in animal models, including ovarian, colon, breast and other cancers. SG-15 expression
is elevated in "triple negative" breast cancer, a disease in which HER2, estrogen and progesterone receptors are lacking,
and thus has no defined therapeutic immune target at the moment. An
Lm
-LLO vaccine that targets ISG-15 may prove to be an
effective agent in an area where there is a significant unmet medical need.
Another patent application which we licensed
on November 15, 2011 is a collaborative provisional application between the laboratories of Dr. Paterson and Dr. Don Harn at the
University of Georgia. In this work,
Lm
-LLO immunotherapies were found in a number of animal models to have the unusual
ability to induce therapeutic Th-1 immune responses, which are the type of response that is desirable when treating cancer, in
animals that were previously unable to mount a Th-1 response. This finding may have great utility because parasitic diseases that
are endemic to the third world, and other kinds of disease, prevent patients from mounting Th-1 type responses. The ability to
induce a Th-1 therapeutic response in these patients would make them susceptible to treatment with immunotherapy where they might
not otherwise respond. Moreover, since chemotherapy and radiotherapy have immune components, the use of an effective
Lm
-LLO
agent as part of a combination regimen might improve the therapeutic efficiency of other agents as well.
Our approach to the intellectual property
portfolio is to create significant offensive and defensive patent protection for every immunotherapy and technology platform that
we develop.  We work closely with our patent counsel to maintain a coherent and aggressive strategic approach to building
our patent portfolio with an emphasis in the field of cancer vaccines.
We are aware of Aduro Biotech, a company
comprised in part of former Cerus and Anza employees that is investigating
Listeria
vaccines based upon Anza's technology
and is conducting clinical trials using
Listeria
-based investigational new drugs. We believe that through our exclusive
license with Penn, we have the earliest known and dominant patent position in the U.S. for the use of recombinant
Listeria
monocytogenes expressing proteins or tumor antigens as a vaccine for the treatment of infectious diseases and tumors. We successfully
defended our intellectual property by contesting a challenge made by Anza to our patent position in Europe on a claim not available
in the U.S. The European Patent Office ( EPO) Board of Appeals in Munich, Germany has ruled in favor of The Trustees of Penn and
its exclusive licensee Advaxis and reversed a patent ruling that revoked a technology patent that had resulted from an opposition
filed by Anza. The ruling of the EPO Board of Appeals is final and cannot be appealed. The granted claims, the subject matter of
which was discovered by Dr. Yvonne Paterson, scientific founder of Advaxis, are directed to the method of preparation and composition
of matter of recombinant bacteria expressing tumor antigens for treatment of patients with cancer. Subsequently, we challenged
a patent by Aduro. The patent was upheld by the USPTO, and the decision resulted in a precise and limiting definition of the approved
claims. The Aduro patent that we challenged does not cover our technology, or limit our business plans.
Based on searches of publicly available
databases, we do not believe that Anza, Aduro or any other third party owns any published
Listeria
patents or has any issued
patent claims that might materially and adversely affect our ability to operate our business as currently contemplated in the field
of recombinant
Listeria
monocytogenes. Additionally, our proprietary position that is the issued patents and licenses for
pending applications restricts anyone from using plasmid based
Listeria
constructs, or those that are bioengineered to deliver
antigens fused to LLO, ActA, or fragments of LLO or ActA.
On May 26, 2009, the United States Patent
and Trademark Office, which we refer to as the PTO, approved our patent application "
Compositions and Methods for Enhancing
the Immunogenicity of Antigens
". This patent application covers the use of
Listeria
monocytogenes
protein
ActA and fragments of this protein for use in the creation of antigen fusion proteins.  This intellectual property protects
a unique strain of
Listeria
monocytogenes
for use as a vaccine vector.
45
On February 10, 2009 the PTO issued patent
7,488,487 "
Methods of Inducing Immune response Through the Administration of Auxotrophic Attenuated dat/dal Double Mutant
Listeria Strains
", assigned to Penn and licensed to us.  This intellectual property protects a unique strain
of
Listeria
for use as a vaccine vector.  This new strain of
Listeria
is an improvement over the strain
currently in clinical testing as it is more attenuated, more immunogenic, and does not contain an antibiotic resistance gene.  We
believe that this strain may be result in more effective immunotherapies.
Between February and December of 2009 the
U.S., Japanese, and European patent offices have approved patents for a newly developed strain of
Listeria
that uses a novel
method of attenuation.  This strain is attenuated by deleting genes that are responsible for making a protein that is
essential for the bacterial cell wall, and by engineering back the ability to make this protein at a reduced level.  In
developing this strain, the objective was to improve upon the useful properties of
Listeria
while reducing potential disease
causing properties of the bacterium, and, in preliminary testing this strain of
Listeria
appears to be more immunogenic
and less virulent that prior vaccine strains.
Between January and March of 2010, the USPTO
issued two patents to Penn (each of which are covered by the Penn license agreement) that cover the composition of matter, uses
and methods using the
Lm
protein Act A in antigen fusion proteins.  We are currently holding patents relating
to two families of antigen-adjuvant fusion proteins; one based on LLO and one based on ActA.
Material patents currently underlying the
license agreement with Penn are shown in the table below.
Title
Expiration
Product
        Candidate
Jurisdiction
Specific Immunotherapy of Cancer Using a Live Recombinant Bacterial Vaccine Vector
18-Apr-2017
All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA
US, Germany, Switzerland, France, Ireland, UK, Belgium, Japan, Canada
Live, Recombinant Listeria Monocytogenes and Production of Cytotoxic T-Cell Response
03-Nov-2015
All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA
US
Methods and Compositions for Immunotherapy of Cancer
08-Nov-2014
All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA
US
Fusion of Non-Hemolytic, Truncated Form of Listeriolysin O to Antigens to Enhance Immunogenicity
2-Aug-2020
All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA
US, Germany, France, Great Britain Israel, European Union
Compositions and Methods for Enhancing Immunogenicity of Antigens
2-Aug-2020
All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA
US, Germany, France European Union, Israel
Compositions and Methods for Enhancing Immunogenicity of Antigens
15-Nov-2023
All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA
US
Methods and Compositions for Immunotherapy of Cancer
08-Nov-2014
All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA
US
Compositions and Methods for Enhancing Immunogenicity of Antigens
29-Mar-2020
All ADXS product candidates, including ADXS-HPV, ADXS-HER2, ADXS-PSA
US
46
Title
Expiration
Product
        Candidate
Jurisdiction
Immunogenic Compositions Comprising DAL/DAT Double-Mutant, Auxotrophic, Attenuated Strains of Listeria and their Methods of Use
18-Nov-2017
ADXS-PSA and ADXS-HER
US, Canada, European Union, Great Britian, Germany
Isolated Nucleic Acids Comprising Listeria DAL and DAT Genes
18-Nov-2017
ADXS-PSA and ADXS-HER
US
Isolated Nucleic Acids Comprising Listeria DAL and DAT Genes
18-Nov-2017
ADXS-PSA and ADXS-HER
US
Immunogenic Compositions Comprising DAL/DAT Double Mutant, Auxotrophic Attenuated Strains of Listeria and their Methods of Use
31-Jan-2020
ADXS-PSA and ADXS-HER
US
Methods and Compositions for Immunotherapy of Cancer
13-Jul-2016
ADXS-HER2
US
Listeria-based and LLO-based Vaccines
24-Sep-2024
ADXS-HER2
US
Governmental Regulation
The Drug Development Process
The FDA requires that pharmaceutical and
certain other therapeutic products undergo significant clinical experimentation and clinical testing prior to their marketing or
introduction to the general public.  Clinical testing, known as clinical trials or clinical studies, is either conducted
internally by pharmaceutical or biotechnology companies or is conducted on behalf of these companies by Clinical Research Organizations,
which we refer to as CROs.
The process of conducting clinical studies
is highly regulated by the FDA, as well as by other governmental and professional bodies.  Below, we describe the principal
framework in which clinical studies are conducted, as well as describe a number of the parties involved in these studies.
Protocols
.  Before commencing
clinical studies, the sponsor of an investigational new drug must typically receive governmental and institutional approval.  In
the U.S., Federal approval is obtained by submitting an IND to the FDA and amending it for each new proposed study. The clinical
research plan is known in the industry as a
protocol
.  A protocol is the blueprint for each drug study.  The
protocol sets forth, among other things, the following:
·
Criteria for subject or patient inclusion/exclusion;
·
Dosing requirements and timing;
·
Tests to be performed; and
·
Evaluations and  data  assessment.
Institutional Review Board (Ethics Committee)
.
An institutional review board is an independent committee of professionals and lay persons which reviews clinical research studies
involving human beings and is required to adhere to guidelines issued by the FDA. The institutional review board does not report
to the FDA and its members are not appointed by the FDA, but its records are audited by the FDA. All clinical studies must be approved
by an institutional review board. The institutional review board is convened by the site or institution where the protocol will
be conducted and its role is to protect the rights of the subjects and patients in the clinical studies. It must approve the protocols
to be used and then oversee the conduct of the study, including oversight of the communications which we or the CRO conducting
the study at that specific site proposes to use to recruit subjects or patients, and the informed consent form which the subjects
or patients will be required to sign prior to their enrollment in the clinical studies.
47
Clinical Trials
.  Human
clinical studies or testing of an investigational new drug prior to FDA approval are generally done in three stages known as Phase
1, Phase 2, and Phase 3 testing.  The names of the phases are derived from the CFR 21 that regulates the FDA. Generally,
there are multiple studies conducted in each phase.
Phase 1
.  Phase 1 studies
involve testing a investigational new drug on a limited number of patients. Phase 1 studies determine a drug's basic safety,
maximum tolerated dose, and how the drug is absorbed by, and eliminated from, the body. This phase lasts an average of six months
to a year. Typically, cancer therapies are initially tested on late stage cancer patients.
Phase 2
.  Phase 2 trials
involve larger numbers of patients that have been diagnosed with the targeted disease or condition. Phase 2 testing typically lasts
an average of one to three years. In Phase 2, the drug is tested to determine its safety and effectiveness for treating a specific
disease or condition. Phase 2 testing also involves determining acceptable dosage levels of the drug. If Phase 2 studies show that
an investigational new drug has an acceptable range of safety risks and probable effectiveness, a company will continue to evaluate
the investigational new drug in Phase 3 studies.
Phase 3
.  Phase 3 studies
involve testing even larger numbers of patients, typically several hundred to several thousand patients. The purpose is to confirm
effectiveness and long-term safety on a large scale. These studies generally last two to six years. Given the larger number of
patients required to conduct Phase 3 studies, they are generally conducted at multiple sites and often times multiple countries.
Biologic License Application.
The
results of the clinical trials using biologics are submitted to the FDA as part of Biologic License Application, which we refer
to as BLA. Following the completion of Phase 3 studies, if the Sponsor of a potential product in the U.S. believes it has sufficient
information to support the safety and effectiveness of the investigational new drug, the Sponsor submits a BLA to the FDA requesting
that the investigational new drug be approved for sale. The application is a comprehensive, multi-volume filing that includes the
results of all preclinical and clinical studies, information about the drug's composition, and the Sponsor's plans
for manufacturing, packaging, labeling and testing the investigational new drug. The FDA's review of an application is designated
either as a standard review with a target review time of 10 months or a priority review with a target of 6 months. Depending upon
the completeness of the application and the number and complexity of requests and responses between the FDA and the Sponsor, the
review time can take months to many years, with the mean review lasting 13.1 months. Once approved, drugs and other products may
be marketed in the U.S., subject to any conditions imposed by the FDA.
The drug approval process is time-consuming,
involves substantial expenditures of resources, and depends upon a number of factors, including the severity of the illness in
question, the availability of alternative treatments, and the risks and benefits demonstrated in the clinical trials.
On November 21, 1997, former President Clinton
signed into law the FDA Modernization Act.  That act codified the FDA's policy of granting "Fast Track"
approval for cancer therapies and other therapies intended to treat serious or life threatening diseases and that demonstrate the
potential to address unmet medical needs.  The Fast Track program emphasizes close, early communications between the
FDA and the sponsor to improve the efficiency of preclinical and clinical development, and to reach agreement on the design of
the major clinical efficacy studies that will be needed to support approval.  Under the Fast Track program, a sponsor
also has the option to submit and receive review of parts of the NDA or BLA on a rolling schedule approved by FDA, which expedites
the review process.
The FDA's Guidelines for Industry
Fast Track Development Programs require that a clinical development program must continue to meet the criteria for Fast Track designation
for an application to be reviewed under the Fast Track Program. Previously, the FDA approved cancer therapies primarily based on
patient survival rates or data on improved quality of life. While the FDA could consider evidence of partial tumor shrinkage, which
is often part of the data relied on for approval, such information alone was usually insufficient to warrant approval of a cancer
therapy, except in limited situations. Under the FDA's new policy, which became effective on February 19, 1998, Fast Track
designation ordinarily allows an investigational new drug to be considered for accelerated approval through the use of surrogate
endpoints to demonstrate effectiveness. As a result of these provisions, the FDA has broadened authority to consider evidence of
partial tumor shrinkage or other surrogate endpoints of clinical benefit for approval. This new policy is intended to facilitate
the study of cancer therapies and shorten the total time for marketing approvals. Under accelerated approval, the manufacturer
must continue with the clinical testing of the product after marketing approval to validate that the surrogate endpoint did predict
meaningful clinical benefit. To the extent applicable, we intend to take advantage of the Fast Track Program to obtain accelerated
approval on our immunotherapies, however, it is too early to tell what effect, if any, these provisions may have on the approval
of our immunotherapies.
Other Regulations
Various Federal and state laws, regulations,
and recommendations relating to safe working conditions, laboratory practices, the experimental use of animals, and the purchase,
storage, movement, import, export, use, and disposal of hazardous or potentially hazardous substances, including radioactive compounds
and infectious disease agents, are used in connection with our research or applicable to our activities. They include, among others,
the U.S. Atomic Energy Act, the Clean Air Act, the Clean Water Act, the Occupational Safety and Health Act, the National Environmental
Policy Act, the Toxic Substances Control Act, and Resources Conservation and Recovery Act, national restrictions on technology
transfer, import, export, and customs regulations, and other present and possible future local, state, or federal regulation. The
extent of governmental regulation which might result from future legislation or administrative action cannot be accurately predicted.
48
There is a series of international harmonization
treaties, known as the ICH treaties, that enable drug development to be conducted on an international basis.  These treaties
specify the manner in which clinical trials are to be conducted, and if trials adhere to the specified requirements, then they
are accepted by the regulatory bodies in the signatory countries.
Manufacturing
The FDA requires that any drug or formulation
to be tested in humans be manufactured in accordance with its GMP regulations.  This has been extended to include any
drug that will be tested for safety in animals in support of human testing.  The GMPs set certain minimum requirements
for procedures, record-keeping, and the physical characteristics of the laboratories used in the production of these drugs.
We have entered into agreements with  Recipharm
Cobra and Vibalogics GmbH for the manufacture of a portion of our vaccines.  Both companies have extensive experience
in manufacturing gene therapy products for investigational studies.  Both companies are full service manufacturing organizations
that manufacture and supply biologic based therapeutics for the pharmaceutical and biotech industry.  These services
include the GMP manufacturing of stability testing and cell banking.  Recipharm's manufacturing plan for us calls
for several manufacturing stages, including process development, manufacturing of non-GMP material for toxicology studies and manufacturing
of GMP material for the Phase 1 and Phase 2 trials.
Beginning in April 2008, we entered into
a number of Agreements with Vibalogics to manufacture GMP material for two new vaccines ADXS-PSA, an Lm-LLO based immunotherapy
for the treatment of prostate cancer, and ADXS-HER2, an
Lm
-LLO based immunotherapy for the treatment of HER2 expressing
cancers (such as breast, gastric, bladder, brain, pancreatic and ovarian cancer) . The Agreement with Recipharm Cobra covers GMP
manufacturing in several stages, including process development, manufacturing of non-GMP material for toxicology studies and manufacturing
of GMP material for the Phase 1 and Phase 2 trials, filling, finishing, and the development of a stable, room temperature storage,
dried formulation of our vaccines.
Competition
The biotechnology and biopharmaceutical
industries are characterized by rapid technological developments and a high degree of competition. As a result, our actual or proposed
immunotherapies could become obsolete before we recoup any portion of our related research and development and commercialization
expenses. The biotechnology and biopharmaceutical industries are highly competitive, and this competition comes from both biotechnology
firms and from major pharmaceutical companies, including: Aduro Biotech, Agenus Inc., Bionovo Inc., Bristol-Myers Squibb, Celgene
Corporation, Celldex Therapeutics, Dendreon Corporation, Inovio Pharmaceutical Inc., Oncolytics Biotech Inc., Oncothyreon Inc.,
et al., each of which is pursuing cancer vaccines and/or immunotherapies. Many of these companies have substantially greater financial,
marketing, and human resources than we do (including, in some cases, substantially greater experience in clinical testing, manufacturing,
and marketing of pharmaceutical products). We also experience competition in the development of our immunotherapies from universities
and other research institutions and compete with others in acquiring technology from such universities and institutions. In addition,
certain of our immunotherapies may be subject to competition from investigational new drugs and/or products developed using other
technologies, some of which have completed numerous clinical trials.
We expect that our immunotherapies under
development and in clinical trials will address major markets within the cancer therapeutic area. Our competition will be determined
in part by the potential indications for which drugs are developed and ultimately approved by regulatory authorities. Additionally,
the timing of market introduction of some of our potential immunotherapies or of competitors' products may be an important
competitive factor. Accordingly, the speed with which we can develop immunotherapies, complete preclinical testing, clinical trials
and approval processes and supply commercial quantities to market are expected to be important competitive factors. We expect that
competition among products approved for sale will be based on various factors, including product efficacy, safety, reliability,
availability, price and patent position.
Merck has developed the drug Gardasil and
GSK has developed the drug Cervarix which can prevent cervical cancer by vaccinating women against the HPV virus, the cause of
the disease. Gardasil is directed against four HPV strains while Cervarix is directed against two. Neither of these agents has
an approved indication for women who have a prior exposure to the HPV strains that they protect against, nor are women protected
from other strains of HPV that the drugs do not treat.
The presence of these agents in the market
does not eliminate the market for a therapeutic vaccine directed against invasive cervical cancer and CIN 2/3 for a number of reasons:
49
HPV is the most common sexually treated
disease in the U.S., and since prior exposure to the virus renders these anti-viral agents ineffective they tend to be limited
to younger women and do not offer protection for women who are already infected.  The number of women who are already
infected with HPV is estimated to be as much as (or more than) 25% of the female population of the U.S.
There are approximately 10 high risk strains
of HPV, but these agents only protect against the most common 2-4 strains.  If a woman contracts a high risk HPV species
that is not one of those, the drugs will not work.
Women with HPV are typically infected for
over twenty years or more before they manifest cervical cancer.  Thus, the true prophylactic effect of these drugs can
only be inferred at this time.  We believe that there currently exists a significant population of young woman who have
not received these agents, or for whom they will not work, and who will manifest HPV related cervical disease for the next 40+
years. We believe this population will continue to grow until such time as a significant percentage of women who have not been
exposed to HPV are vaccinated; which we believe is not likely to occur within the next decade or longer.  We do not know
at this time whether a significant number of women will be vaccinated to have an effect on the epidemiology of this disease.
With the exception of the campaign to eradicate
polio in which vaccination was mandatory for all school age children, vaccination is a difficult model to accomplish because it
is virtually impossible to treat everyone in any given country, much less the entire world.  This is especially true
for cervical cancer, as the incentive for men to be vaccinated is small, and infected men keep the pathogen circulating in the
population.
Taken together, experts believe that there
will be a cervical cancer and CIN 2/3 market for the foreseeable future.
Employees
As of November 5, 2012, we had 12 employees,
all of which were full time employees.  We believe our relations with employees are good.
We do not anticipate any significant increase
in the number of employees in the clinical area and the research and development area to support clinical requirements, and in
the general and administrative and business development areas over the next two years.
Description of Property
Our corporate offices are currently located
at 305 College Road East, Princeton, New Jersey 08540. On April 1, 2011, we entered into a Sublease Agreement for such office,
which is a 9143 square foot leased facility in Princeton, NJ approximately 12 miles south of our prior location. The agreement
is for a period of approximately twenty months at the rate of approximately $15,600 per month plus utilities. Utility costs are
estimated to be $7,200 per month and are capped at approximately $10,700 per month. The agreement required an initial payment of
approximately $54,000 prior to entering the new facility, which we have paid. As an inducement to enter into the agreement, the
company received an abatement through July 31, 2011. The agreement has a termination date of November 29, 2012 and we are in discussions
with building owner for lease terms beyond this date.
Legal Proceedings
As of the date hereof, there are no material
pending legal proceedings to which we are a party or of which any of our property is the subject.  In the ordinary course
of our business we may become subject to litigation regarding our immunotherapies or our compliance with applicable laws, rules,
and regulations.
50
MANAGEMENT
Executive Officers, Directors and Key Employees
The following are our executive officers
and directors and their respective ages and positions as of November 5, 2012:
Name
Age
Position
Thomas A. Moore
60
Chief Executive Officer and Chairman of our Board of Directors
Dr. James P. Patton
54
Director
Roni A. Appel
45
Director
Dr. Thomas L. McKearn
61
Director
Richard L. Berman
69
Director
John Rothman, Ph.D.
63
Executive Vice President of Clinical and Scientific Operations
Mark J. Rosenblum
59
Chief Financial Officer, Senior Vice President and Secretary
Thomas A. Moore.
Mr. Moore
joined our Board as an independent director in September 2006. Effective December 15, 2006, Mr. Moore was appointed our Chairman
and Chief Executive Officer. He is currently also a director of Opt-e-scrip, Inc., which markets a clinical system to compare multiple
drugs in the same patient. He also serves on the board of directors of Mayan Pigments, Inc., which has developed and patented Mayan
pigment technology. Previously, from June 2002 to June 2004 Mr. Moore was President and Chief Executive Officer of Biopure Corporation,
a developer of oxygen therapeutics that are intravenously administered to deliver oxygen to the body's tissues. From 1996
to November 2000 he was President and Chief Executive Officer of Nelson Communications. Prior to 1996, Mr. Moore had a 23-year
career with the Procter & Gamble Company in multiple managerial positions, including President of Health Care Products where
he was responsible for prescription and over-the-counter medications worldwide, and Group Vice President of the Procter & Gamble
Company. Mr. Moore is a graduate of Princeton University. Mr. Moore's extensive business, managerial, executive and leadership
experience in the healthcare industry make him particularly qualified to serve on our Board.
Dr. James P. Patton.
Dr. Patton
has served as a member of our board of directors since February 2002, as Chairman of our board of directors from November 2004
until December 31, 2005 and as our Chief Executive Officer from February 2002 to November 2002. Since February 1999, Dr. Patton
has been the Vice President of Millennium Oncology Management, Inc., which provides management services for radiation oncology
care to four sites. Dr. Patton has been a trustee of Dundee Wealth US, a mutual fund family since October 2006. In addition, he
has been President of Comprehensive Oncology Care, LLC since 1999, a company which owned and operated a cancer treatment facility
in Exton, Pennsylvania until its sale in 2008. From February 1999 to September 2003, Dr. Patton also served as a consultant to
LibertyView Equity Partners SBIC, LP, a venture capital fund based in Jersey City, New Jersey. From July 2000 to December 2002,
Dr. Patton served as a director of Pinpoint Data Corp. From February 2000 to November 2000, Dr. Patton served as a director of
Healthware Solutions. From June 2000 to June 2003, Dr. Patton served as a director of LifeStar Response. He earned his B.S. from
the University of Michigan, his Medical Doctorate from Medical College of Pennsylvania, and his M.B.A. from Penn's Wharton
School. Dr. Patton was also a Robert Wood Johnson Foundation Clinical Scholar. He has published papers regarding scientific research
in human genetics, diagnostic test performance and medical economic analysis. Dr. Patton's experience as a trustee and consultant
to funds that invest in life science companies provide him with the perspective from which we benefit. Additionally, Dr. Patton's
medical experience and service as a principal and director of other life science companies makes Dr. Patton particularly qualified
to serve as our director.
Roni A. Appel.
Mr. Appel has
served as a member of our board of directors since November 2004. He was our President and Chief Executive Officer from January
1, 2006 and Secretary and Chief Financial Officer from November 2004, until he resigned as our Chief Financial Officer on September
7, 2006 and as our President, Chief Executive Officer and Secretary on December 15, 2006. From 1999 to 2004, he was a partner and
managing director of LV Equity Partners (f/k/a LibertyView Equity Partners). From 1998 until 1999, he was a director of business
development at Americana Financial Services, Inc. From 1994 to 1998 he was an attorney and completed his MBA at Columbia University.
Mr. Appel's longstanding service with us and his entrepreneurial investment career in early stage biotech businesses qualify
him to serve as our director.
Dr. Thomas L. McKearn
. Dr.
McKearn has served as a member of our board of directors since July 2002. He brings more than 25 years of experience in the translation
of biotechnology science into oncology products. First as one of the founders of Cytogen Corporation, then as an Executive Director
of Strategic Science and Medicine at Bristol-Myers Squibb and now as the VP Strategic Clinical Affairs at Agennix, Inc. (formerly
GPC-Biotech), he has worked at bringing the most innovative laboratory findings into the clinic and through the FDA regulatory
process for the benefit of cancer patients who need better ways to cope with their afflictions. Prior to entering the biotechnology
industry in 1981, Dr. McKearn received his medical, graduate and post-graduate training at the University of Chicago and served
on the faculty of the Medical School at the University of Pennsylvania. Dr. McKearn's experience in managing life science
companies, his knowledge of medicine and his commercialization of biotech products particularly qualify him to serve as our director.
51
Richard L. Berman.
Mr. Berman
has served as a member of our board of directors since September 1, 2005. Mr. Berman's business career spans over 35 years
of venture capital, senior management and merger and acquisitions experience. In the past five years, Mr. Berman has served as
a director and/or officer of over a dozen public and private companies. From 2006 to 2011, Mr. Berman was Chairman of National
Investment Managers, a company with $12 billion in pension administration assets. In June 2011, he became chairman of the International
Corporation for Project Finance LLC, a leading private infrastructure finance company involved in over $10 billion of projects.
Mr. Berman is currently a director of four public companies: Broadcaster, Inc., Easylink Services International, Inc., Advaxis,
Inc., and Neostem, Inc. From 1998 to 2000, he was employed by Internet Commerce Corporation (now Easylink Services) as Chairman
and CEO. Prior to 1998, Mr. Berman worked at Goldman Sachs and was Senior Vice President of Bankers Trust Company. Mr. Berman is
a past Director of the Stern School of Business of NYU where he obtained his BS and MBA. He also has U.S. and foreign law degrees
from Boston College and The Hague Academy of International Law, respectively. Mr. Berman's extensive knowledge of our industry,
his role in the governance of publically held companies and his directorships in other life science companies qualify him to serve
as our director.
John Rothman, Ph.D
.
Dr. Rothman joined our company in March 2005 as Vice President of Clinical Development and as of December 12, 2008 he was appointed
to Executive Vice President of Clinical and Scientific Operations.  From 2002 to 2005, Dr. Rothman was Vice President
and Chief Technology Officer of Princeton Technology Partners.  Prior to that he was involved in the development of the
first interferon at Schering Inc., was director of a variety of clinical development sections at Hoffman LaRoche, and the Senior
Director of Clinical Data Management at Roche.  While at Roche his work in Kaposi's Sarcoma became the clinical
basis for the first filed BLA which involved the treatment of AIDS patients with interferon.  Dr. Rothman completed his
doctorate at City University of Los Angeles.
Mark J. Rosenblum.
Effective
as of January 5, 2010, Mr. Rosenblum joined our company as our Chief Financial Officer, Senior Vice President and Secretary. Mr.
Rosenblum was the Chief Financial Officer of HemobioTech, Inc., a public company primarily engaged in the commercialization of
human blood substitute technology licensed from Texas Tech University, from April 1, 2005 until December 31, 2009. From August
1985 through June 2003, Mr. Rosenblum was employed by Wellman, Inc., a public chemical manufacturing company. Between 1996 and
2003, Mr. Rosenblum was the Chief Accounting Officer, Vice President and Controller at Wellman, Inc. Mr. Rosenblum holds both a
Masters in Accountancy and a B.S. degree from the University of South Carolina. Mr. Rosenblum is a certified public accountant.
Board of Directors
Each director is elected for a period of
one year and serves until the next annual meeting of stockholders, or until his or her successor is duly elected and qualified.
Officers are elected by, and serve at the discretion of, our board of directors. The board of directors may also appoint additional
directors up to the maximum number permitted under our by-laws, which is currently nine.
Director Independence
In accordance with the disclosure requirements
of the SEC, and since the OTC Bulletin Board does not have its own rules for director independence, we have adopted the NASDAQ
listing standards for independence effective April 2010. Although we are not presently listed on any national securities exchange,
each of our directors, other than Mr. Thomas A. Moore and Mr. Roni Appel, is independent in accordance with the definition set
forth in the NASDAQ rules. Each current member of the Audit Committee and Compensation Committee is an independent director under
the NASDAQ standards. The Board considered the information included in transactions with related parties as outlined below along
with other information the Board considered relevant, when considering the independence of each director.
Committees of the Board of Directors
Our board of directors has three standing
committees: the audit committee, the compensation committee, and the nominating and corporate governance committee.
Audit Committee
The audit committee of our board of directors
is currently composed of two directors, both of whom satisfy the independence standards for audit committee members under the NASDAQ
rules (although our securities are not listed on the NASDAQ stock market but are quoted on the OTC Bulletin Board). For fiscal
2011, the audit committee was composed of Mr. Berman and Dr. Patton, with Mr. Berman serving as the audit committee's financial
expert as defined under Item 407 of Regulation S-K of the Securities Act of 1933, as amended, which we refer to as the Securities
Act. Our board of directors has determined that the audit committee financial expert is independent as defined in (i) Rule 10A-3(b)(i)(ii)
under the Exchange Act and (ii) under Section 121 B(2)(a) of the NYSE Amex Equities Company Guide (although our securities are
not listed on the NYSE Amex Equities but are quoted on the OTC Bulletin Board).
The audit committee is responsible for the
following:
·
reviewing the results of the audit engagement with the independent registered public accounting firm;
52
·
identifying irregularities in the management of our business in consultation with our independent accountants, and suggesting
an appropriate course of action;
·
reviewing the adequacy, scope, and results of the internal accounting controls and procedures;
·
reviewing the degree of independence of the auditors, as well as the nature and scope of our relationship with our independent
registered public accounting firm;
·
reviewing the auditors' fees; and
·
recommending the engagement of auditors to the full board of directors.
Compensation Committee
The compensation committee of our board
of directors consists of Mr. Berman and Dr. McKearn.  The compensation committee determines the salaries and incentive
compensation of our officers subject to applicable employment agreements, and provides recommendations for the salaries and incentive
compensation of our other employees and consultants.
Nominating and Corporate Governance Committee
The nominating and corporate governance
committee of our board of directors currently consists of Mr. Berman and Mr. Moore. The nominating and corporate governance committee
did not meet in fiscal 2011.  The functions of the nominating and corporate governance committee include the following:
·
identifying and recommending to the board of directors individuals qualified to serve as members of our board of directors
and on the committees of the board;
·
advising the board with respect to matters of board composition, procedures and committees;
·
developing and recommending to the board a set of corporate governance principles applicable to us and overseeing corporate
governance matters generally including review of possible conflicts and transactions with persons affiliated with directors or
members of management; and
·
overseeing the annual evaluation of the board and our management.
The nominating and corporate governance
committee will consider director candidates recommended by eligible stockholders. Stockholders may recommend director nominees
for consideration by the nominating and corporate governance committee by writing to the Nominating and Corporate Governance, Attention:
Chairman, Advaxis, Inc., 305 College Road East, Princeton, New Jersey 08540. Any recommendations for director made to the nominating
and corporate governance committee should include the nominee's name and qualifications for membership on our board of directors,
and should include the following information for each person being recommended or nominated for election as a director:
·
The name, age, business address and residence address of the person;
·
The principal occupation or employment of the person;
·
The number of shares of our common stock which the person owns beneficially or of record; and
·
Any other information relating to the person that must be disclosed in a proxy statement or other filings required to be made
in connection with solicitations of proxies for election of directors under Section 14 of the Exchange Act and its rules and regulations.
In addition, the stockholder's notice
must include the following information about such stockholder:
·
The stockholder's name and record address;
·
The number of shares of our common stock that the stockholder owns beneficially or of record;
·
A description of all arrangements or understandings between the stockholder and each proposed nominee and any other person
or persons, including their names, pursuant to which the nomination is to be made;
53
·
A representation that the stockholder  intends to appear in person or by proxy at the annual meeting to nominate
the person or persons named in such stockholder's notice; and
·
Any other information about the stockholder that must be disclosed in a proxy statement or other filings required to be made
in connection with solicitations of proxies for election of directors under Section 14 of the Exchange Act and its rules and regulations.
The notice must include a written consent
by each proposed nominee to being named as a nominee and to serve as a director if elected. No person will be eligible for election
as a director of ours unless recommended by the nominating and corporate governance committee and nominated by our board of directors
or nominated in accordance with the procedures set forth above. Candidates proposed by stockholders for nomination are evaluated
using the same criteria as candidates initially proposed by the nominating and corporate governance committee.
We must receive the written nomination for
an annual meeting not less than 90 days and not more than 120 days prior to the first anniversary of the previous year's
annual meeting of stockholders, or, if no annual meeting was held the previous year or the date of the annual meeting is advanced
more than 30 days before or delayed more than 60 days after the anniversary date, we must receive the written nomination not more
than 120 days prior to the annual meeting and not less than the later of 90 days prior to the annual meeting or ten days following
the day on which public announcement of the date of the annual meeting is first made. For a special meeting, we must receive the
written nomination not less than the later of 90 days prior to the special meeting or ten days following the day on which public
announcement of the date of the special meeting is first made.
The nominating and corporate governance
committee expects, as minimum qualifications, that nominees to our board of directors (including incumbent directors) will enhance
our board of director's management, finance and/or scientific expertise, will not have a conflict of interest and will have
a high ethical standard. A director nominee's knowledge and/or experience in areas such as, but not limited to, the medical,
biotechnology, or life sciences industry, equity and debt capital markets and financial accounting are likely to be considered
both in relation to the individual's qualification to serve on our board of directors and the needs of our board of directors
as a whole. Other characteristics, including but not limited to, the director nominee's material relationships with us, time
availability, service on other boards of directors and their committees, or any other characteristics which may prove relevant
at any given time as determined by the nominating and corporate governance committee shall be reviewed for purposes of determining
a director nominee's qualification.
Candidates for director nominees are evaluated
by the nominating and corporate governance committee in the context of the current composition of our board of directors, our operating
requirements and the long-term interests of our stockholders. The nominating and corporate governance committee then uses its network
of contacts to compile a list of potential candidates, but may also engage, if it deems appropriate, a professional search firm.
The nominating and corporate governance committee conducts any appropriate and necessary inquiries into the backgrounds and qualifications
of possible candidates after considering the function and needs of our board of directors. In the case of incumbent directors whose
terms of office are set to expire, the nominating and corporate governance committee reviews such directors' overall service
to us during their term, including the number of meetings attended, level of participation, quality of performance, and any other
relationships and transactions that might impair such directors' independence. The nominating and corporate governance committee
meets to discuss and consider such candidates' qualifications and then selects a nominee for recommendation to our board
of directors by majority vote. To date, the nominating and corporate governance committee has not paid a fee to any third party
to assist in the process of identifying or evaluating director candidates.
Compensation Committee Interlocks and Insider Participation
The current members of the compensation
committee are Mr. Berman and Dr. McKearn. Currently, none of such persons is an officer or employee of us or any of our subsidiaries.
During fiscal 2011, none of our executive officers served as a director or member of a compensation committee (or other committee
serving an equivalent function) of any other entity, whose executive officers served as a director or member of our compensation
committee. No interlocking relationship, as defined by the Securities Exchange Act of 1934, as amended, exists between our board
of directors or our Compensation Committee and the board of directors or compensation committee of any other company.
54
EXECUTIVE COMPENSATION
Summary Compensation Table
The following table sets forth the information
as to compensation paid to or earned by our Chief Executive Officer and our two other most highly compensated executive officers
during the fiscal years ended October 31, 2011 and 2010.  These individuals are referred to in this prospectus as our
named executive officers.  As none of our named executive officers received non-equity incentive plan compensation or
nonqualified deferred compensation earnings during the fiscal years ended October 31, 2011 and 2010, we have omitted those columns
from the table.
Name and
Principal
Position
Fiscal Year
Salary
Bonus
Stock
Award(s)
(1)
Option
Award(s)
(1)
All Other
Compensation
Total
Thomas A. Moore,
2011
$
350,000
$
-
$
-
$
-
(7)
$
21,294
(2)
$
371,294
CEO and Chairman
2010
350,000
-
135,000
(6)
224,800
142,174
(2)
851,974
Dr. John Rothman,
2011
275,000
83,000
30,000
(3)
-
(8)
34,665
(4)
422,665
Executive VP of Science & Operations
2010
250,000
50,000
30,000
(3)
252,900
29,451
(4)
612,351
Mark J. Rosenblum
2011
250,000
72,000
-
-
(9)
19,211
(5)
341,211
Chief Financial Officer
2010
225,000
-
-
134,880
8,494
(5)
368,374
(1)
The amounts shown in this column represent the fair value on grant date in accordance with ASC 718 using the assumptions described under Stock Compensation in Note 2 to our financial statements included elsewhere in this prospectus.
(2)
Based on our cost of Mr. Moore's coverage for health care and interest received for the Moore Notes.
(3)
Represents $30,000 of base salary paid in shares of our common stock in lieu of cash, based on the average monthly stock price.
(4)
Based on our cost of his coverage for health care and the 401K company match he received.
(5)
Based on our cost of his coverage for health care.
(6)
For 2010, represents 750,000 shares of our common stock granted to Mr. Moore based on the financial raise milestone in his employment agreement valued at the market close price on June 29, 2010.
(7)
In the fiscal year ended October 31, 2011, we did not grant any stock options to purchase shares of our common stock to Mr. Moore. However, in the fiscal year ended October 31, 2012, we granted stock options to purchase 4,000,000 shares of our common stock to Mr. Moore in connection with services he performed in fiscal 2011. The material terms of this grant is described below under the heading "Discussion of Summary Compensation Table."
(8)
In the fiscal year ended October 31, 2011, we did not grant any stock options to purchase shares of our common stock to Dr. Rothman. However, in the fiscal year ended October 31, 2012, we granted stock options to purchase 3,000,000 shares of our common stock to Dr. Rothman in connection with services he performed in fiscal 2011. The material terms of this grant is described below under the heading "Discussion of Summary Compensation Table."
(9)
In the fiscal year ended October 31, 2011, we did not grant any stock options to purchase shares of our common stock to Mr. Rosenblum. However, in the fiscal year ended October 31, 2012, we granted stock options to purchase 2,100,000 shares of our common stock to Mr. Rosenblum in connection with services he performed in fiscal 2011. The material terms of this grant is described below under the heading "Discussion of Summary Compensation Table."
Discussion of Summary Compensation Table
We are party to an employment agreement
with each of our named executive officers who is presently employed by us, other than Mr. Rosenblum and Mr. Rothman. Each employment
agreement sets forth the terms of that officer's employment, including among other things, salary, bonus, non-equity incentive
plan and other compensation, and its material terms are described below. In fiscal 2010, we granted stock options to our named
executive officers to purchase shares of our common stock and issued stock to our Chief Executive Officer. In fiscal 2011, we did
not grant any stock options to purchase shares of our common stock to our named executive officers. However, in fiscal 2012, we
granted stock options to purchase shares of our common stock to our named executive officers in connection with services they performed
in fiscal 2011. The material terms of these grants are also described below.
55
Moore Employment Agreement and Option
Agreements.
We are party to an employment agreement with Mr. Moore, dated as of August 21, 2007 (memorializing
an oral agreement dated December 15, 2006), that provides that he will serve as our Chairman of the Board and Chief Executive Officer
for an initial term of two years.  For so long as Mr. Moore is employed by us, Mr. Moore is also entitled to nominate
one additional person to serve on our board of directors.  Following the initial term of employment, the agreement was
renewed for a one year term, and is automatically renewable for additional successive one year terms, subject to our right and
Mr. Moore's right not to renew the agreement upon at least 90 days' written notice prior to the expiration of any one
year term.
Under the terms of the agreement, Mr. Moore
was entitled to receive a base salary of $250,000 per year, subject to increase to $350,000 per year upon our successful raise
of at least $4.0 million (which condition was satisfied on November 1, 2007) and subject to annual review for increases by our
board of directors in its sole discretion. The agreement also provides that Mr. Moore is entitled to receive family health insurance
at no cost to him. Mr. Moore's employment agreement does not provide for the payment of a bonus.
In connection with our hiring of Mr. Moore,
we agreed to grant Mr. Moore up to 1,500,000 shares of our common stock, of which 750,000 shares were issued on November 1, 2007
upon our successful raise of $4.0 million and 750,000 shares were issued on June 29, 2010 upon our successful raise of an additional
$6.0 million (which condition was satisfied in January 2010). In addition, on December 15, 2006, we granted Mr. Moore options to
purchase 2,400,000 shares of our common stock. Each option is exercisable at $0.143 per share (which was equal to the closing sale
price of our common stock on December 15, 2006) and expires on December 15, 2016. The options vested in 24 equal monthly installments.
On July 21, 2009, we granted Mr. Moore options to purchase 2,500,000 shares of our common stock. Each option is exercisable at
$0.10 per share (which was equal to the closing sale price of our common stock on July 21, 2009) and expires on July 21, 2019.
One-third of these options vested on the grant date, one-third of these options vested on the first anniversary of the grant and
the remaining one-third will vest on the second anniversary of the grant. On October 14, 2010, we granted Mr. Moore options to
purchase 2,000,000 shares of our common stock. Each option is exercisable at $0.15 per share. These options vest over a three year
period beginning one year from the grant date. On November 8, 2011, we granted Mr. Moore options to purchase 4,000,000 shares of
our common stock. Each option is exercisable at $0.148 per share. These options vest over a three year period beginning one year
from the grant date.
We have also agreed to grant Mr. Moore options
to purchase an additional 1,500,000 shares of our common stock if the price of common stock (adjusted for any splits) is equal
to or greater than $0.40 for 40 consecutive business days.  Pursuant to the terms of his employment agreement, all options
will be awarded and vested upon a merger of the company which is a change of control or a sale of the company while Mr. Moore is
employed.  In addition, if Mr. Moore's employment is terminated by us, Mr. Moore is entitled to receive severance
payments equal to one year's salary at the then current compensation level.
Mr. Moore has agreed to refrain from engaging
in certain activities that are competitive with us and our business during his employment and for a period of 12 months thereafter
under certain circumstances.  In addition, Mr. Moore is subject to a non-solicitation provision for 12 months after termination
of his employment.
Rothman Employment Agreement and Option
Agreements.
We previously entered into an employment agreement with Dr. Rothman, Ph.D., dated as of March 7, 2005,
that provided that he would serve as our Vice President of Clinical Development for an initial term of one year.  Dr.
Rothman's current salary is $305,000, consisting of $275,000 in cash and $30,000 in stock, payable in our common stock, based
on the average closing stock price for such six month period.  While the employment agreement has expired and has not
been formally renewed in accordance with the agreement, Dr. Rothman remains employed by us and is currently our Executive V.P.
of Clinical and Scientific Operations.
In addition, on March 1, 2005, we granted
Dr. Rothman options to purchase 360,000 shares of our common stock. Each option is exercisable at $0.287 per share (which was equal
to the closing sale price of our common stock on March 1, 2005) and expires on March 1, 2015. All of these options have vested.
On March 29, 2006, we granted Dr. Rothman options to purchase 150,000 shares of our common stock. Each option is exercisable at
$0.26 per share (which was equal to the closing sale price of our common stock on March 29, 2006) and expires on March 29, 2016.
One-fourth of these options vested on the first anniversary of the grant date, and the remaining vest in 12 equal quarterly installments.
On February 15, 2007, we granted Dr. Rothman options to purchase 300,000 shares of our common stock. Each option is exercisable
at $0.165 per share (which was equal to the closing sale price of our common stock on February 15, 2007) and expires on February
15, 2017. One-fourth of these options vested on the first anniversary of the grant date, and the remaining vest in 12 equal quarterly
installments. Pursuant to the terms of the 2005 plan, at least 75% of Dr. Rothman's options will be vested upon a merger
of the company which is a change of control or a sale of the company while Dr. Rothman is employed, unless the administrator of
the plan otherwise allows for all options to become vested. On July 21, 2009, we granted Mr. Rothman options to purchase 1,750,000
shares of our common stock. Each option is exercisable at $0.10 per share (which was equal to the closing sale price of our common
stock on July 21, 2009) and expires on July 21, 2019. One-third of these options vested on the grant date, one-third of these options
vested on the first anniversary of the grant and the remaining one-third will vest on the second anniversary of the grant. On October
14, 2010, we granted Dr. Rothman options to purchase 2,250,000 shares of our common stock. Each option is exercisable at $0.15
per share. These options vest over a three year period beginning one year from the grant date. On November 8, 2011, we granted
Dr. Rothman options to purchase 3,000,000 shares of our common stock. Each option is exercisable at $0.148 per share. These options
vest over a three year period beginning one year from the grant date.
56
Dr. Rothman has agreed to refrain from engaging
in certain activities that are competitive with us and our business during his employment and for a period of 18 months thereafter
under certain circumstances.  In addition, Dr. Rothman is subject to a non-solicitation provision for 18 months after
termination of his employment.
Rosenblum Compensation
.  Mr.
Rosenblum serves as our Chief Financial Officer, Senior Vice President and Secretary.  His current salary is $240,000
per annum, with a discretionary bonus of up to 30% of his base compensation awarded annually in March beginning in 2011.  While
an employment agreement has not been formally entered into, Mr. Rosenblum remains employed by us.
In addition, on January 5, 2010, Mr. Rosenblum
was granted options to purchase 1,000,000 shares of the our common stock with an exercise price equal to $0.128.  One
third of these options vested on the date of grant, one third vested on January 5, 2011, and one third vests on the second anniversary
of the date of grant.  On October 14, 2010, we granted Mr. Rosenblum options to purchase 1,200,000 shares of our common
stock. Each option is exercisable at $0.15 per share. These options vest over a three year period beginning one year from the grant
date. On November 8, 2011, we granted Mr. Rosenblum options to purchase 2,100,000 shares of our common stock. Each option is exercisable
at $0.148 per share. These options vest over a three year period beginning one year from the grant date.
Outstanding Equity Awards at Fiscal Year-End
The following table provides information
about the number of outstanding equity awards held by our named executive officers at October 31, 2011.
Option
    Awards
Stock
    Awards
Name
Number
    of
Securities
Underlying
Unexercised
Options (#)
Exercisable
Number
    of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
Equity
Incentive
Plan Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options (#)
Option
Exercise
Price ($)
Option
Expiration
Date
Number
    of
Shares or
Units of
Stock That
Have Not
Vested (#)
Market
Value
of Shares
or
Units of
Stock
That Have
Not Vested
($)
Equity
Incentive
Plan Awards:
Number of
Unearned
Shares, Units
or
Other Rights
That Have
Not
Vested (#)
Equity
Incentive
Plan Awards:
Market or
Payout
Value of
Unearned
Shares,
Units or Other
Rights That
Have
Not
Vested ($)
Thomas A. Moore
2,500,000
(1)
—
—
0.100
7/21/19
—
$
—
—
—
2,400,000
—
—
0.143
12/15/16
—
—
—
—
666,667
1,333,333
(2)
0.15
10/14/20
Dr. John Rothman
1,750,000
(3)
—
—
0.100
7/21/19
—
—
—
—
360,000
—
—
0.287
3/1/15
—
—
—
—
150,000
—
—
0.260
3/29/16
—
—
—
—
300,000
(4)
—
—
0.165
2/15/17
—
—
—
—
750,000
1,500,000
(5)
0.15
10/14/20
Mark J. Rosenblum
666,666
333,334
(6)
0.1291
1/05/20
400,000
800,000
(7)
0.15
10/14/20
(1)
Of these options, approximately 833,333 became exercisable on July 21, 2009, approximately 833,333 became exercisable on July 21, 2010 and approximately 833,333 became exercisable on July 21, 2011.
(2)
Of these options, approximately 666,666 became exercisable on October 14, 2011, approximately 666,667 will become exercisable on October 14, 2012 and approximately 666,667 will become exercisable on October 14, 2013.
(3)
Of these options, approximately 583,333 became exercisable on July 21, 2009, approximately 583,333 became exercisable on July 21, 2010 and approximately 583,333 became exercisable on July 21, 2011.
(4)
Of these options, 75,000 became exercisable on February 15, 2008, 18,750 became exercisable in each quarter from the quarter ended April 30, 2008 through the quarter ended October 31, 2010, and 18,750 became exercisable on February 15, 2011.
(5)
Of these options, 750,000 became exercisable on October 14, 2011, 750,000 will become exercisable on October 14, 2012 and 750,000 will become exercisable on October 14, 2013.
57
(6)
Of these options, 333,333 became exercisable on January 5, 2010, 333,333 became exercisable on January 5, 2011 and 333,334 became exercisable on January 5, 2012.
(7)
Of these options, 400,000 became exercisable on October 14, 2011, 400,000 will become exercisable on October 14, 2012 and 400,000 will become exercisable on October 14, 2013.
Director Compensation
All of our non-employee directors earn a
combination of cash compensation and awards of shares of our common stock.  Each non-employee director (other than Mr.
Berman) earns 6,000 shares of our common stock per quarter. Additionally, each non-employee director earns $2,000 for each board
meeting attended in person and $750 for each telephonic board meeting. In addition, each member of a committee of the Board earns
$2,000 per meeting attended in person held on days other than board meeting days and $750 for each telephonic committee meeting.
In addition, Mr. Berman, earns $2,000 a month in shares of our common stock based on the average closing price of our common stock
for the preceding month.  The non-employee director compensation that was earned for the twelve months ended October
31, 2011, was not paid or issued. Our employee director does not receive any compensation for his services as a director.
The table below summarizes the compensation
that was earned by our non-employee directors for fiscal 2011. As none of our non-employee directors received non-equity incentive
plan compensation or nonqualified deferred compensation earnings during fiscal 2011, we have omitted those columns from the table.
Name
Fees
Earned
or Paid
in Cash
($)
Stock
Awards
($)(1)
Option
Awards
($)(1)
All other
Compensation
($)
Total
($)
Roni A. Appel
$
5,000
$
3,879
(2)
$
—
—
$
8,879
Dr. James Patton
9,750
3,879
(2)
—
—
13,629
Dr. Thomas McKearn
8,000
3,879
(2)
—
—
11,879
Richard Berman
10,250
24,000
(3)
—
—
34,250
(1)
The amounts shown in this column represent the fair value on grant date in accordance with ASC 718 using the assumptions described under Stock Compensation in Note 2 to our financial statements included elsewhere in this prospectus.
(2)
Represents the grant date fair value of 6,000 shares of our common stock a quarter earned (but not paid or issued) if the member attends at least 75% of the meetings annually.
(3)
Based on $24,000 of compensation in the form of shares of our common stock earned but not issued to date.
2004 Stock Option Plan
In November 2004, our board of directors
adopted and our stockholders approved the 2004 Stock Option Plan, which we refer to as the 2004 plan.  The 2004 plan
provides for the grant of options to purchase up to 2,381,525 shares of our common stock to employees, officers, directors and
consultants.  Options may be either "incentive stock options" or non-qualified options under the Federal
tax laws.  Incentive stock options may be granted only to our employees, while non-qualified options may be issued, in
addition to employees, to non-employee directors and consultants.  As of November 5, 2012, all options to purchase
shares of our common stock have been granted under the 2004 plan.
The 2004 plan is administered by "disinterested
members" of our board of directors or the compensation committee, who determine, among other things, the individuals who
will receive options, the time period during which the options may be partially or fully exercised, the number of shares of common
stock issuable upon the exercise of each option and the option exercise price.
Subject to a number of exceptions, the exercise
price per share of common stock subject to an incentive option may not be less than the fair market value per share of common stock
on the date the option is granted.  The per share exercise price of our common stock subject to a non-qualified option
may be established by our board of directors, but will not, however, be less than 85% of the fair market value per share of common
stock on the date the option is granted.  The aggregate fair market value of common stock for which any person may be
granted incentive stock options which first become exercisable in any calendar year may not exceed $100,000 on the date of grant.
58
No stock option may be transferred by an
optionee other than by will or the laws of descent and distribution, and, during the lifetime of an optionee, the option will be
exercisable only by the optionee.  In the event of termination of employment or engagement other than by death or disability,
the optionee will have no more than three months after such termination during which the optionee will be entitled to exercise
the option to the extent vested at termination, unless otherwise determined by our board of directors.  Upon termination
of employment or engagement of an optionee by reason of death or permanent and total disability, the optionee's options remain
exercisable for one year to the extent the options were exercisable on the date of such termination.  No similar limitation
applies to non-qualified options.
We must grant options under the 2004 plan
within ten years from the effective date of the 2004 plan.  The effective date of the 2004 plan was November 12, 2004.  Subject
to a number of exceptions, holders of incentive stock options granted under the 2004 plan cannot exercise these options more than
ten years from the date of grant.  Options granted under the 2004 plan generally provide for the payment of the exercise
price in cash and may provide for the payment of the exercise price by delivery to us of shares of common stock already owned by
the optionee having a fair market value equal to the exercise price of the options being exercised, or by a combination of these
methods.  Therefore, if it is provided in an optionee's options, the optionee may be able to tender shares of common
stock to purchase additional shares of common stock and may theoretically exercise all of his stock options with no additional
investment other than the purchase of his original shares.
Any unexercised options that expire or that
terminate upon an employee's ceasing to be employed by us become available again for issuance under the 2004 plan.
As of September 27, 2011, the date on which
the Advaxis, Inc. 2011 Omnibus Incentive Plan was approved by our shareholders, no further awards may be made under the 2004 plan.
2005 Stock Option Plan
In June 2006 our board of directors adopted,
and on June 6, 2006 our stockholders approved, the 2005 Stock Option Plan, which we refer to as the 2005 plan.
The 2005 plan provides for the grant of
options to purchase up to 5,600,000 shares of our common stock to employees, officers, directors and consultants.  Options
may be either "incentive stock options" or non-qualified options under the Federal tax laws.  Incentive stock
options may be granted only to our employees, while non-qualified options may be issued to non-employee directors, consultants
and others, as well as to our employees.  As of November 5, 2012, all options to purchase shares of our common stock
have been granted under the 2005 plan.
The 2005 plan is administered by "disinterested
members" of our board of directors or the compensation committee, who determine, among other things, the individuals who
will receive options, the time period during which the options may be partially or fully exercised, the number of shares of common
stock issuable upon the exercise of each option and the option exercise price.
Subject to a number of exceptions, the exercise
price per share of common stock subject to an incentive option may not be less than the fair market value per share of common stock
on the date the option is granted.  The per share exercise price of our common stock subject to a non-qualified option
may be established by our board of directors, but will not, however, be less than 85% of the fair market value per share of common
stock on the date the option is granted.  The aggregate fair market value of common stock for which any person may be
granted incentive stock options which first become exercisable in any calendar year may not exceed $100,000 on the date of grant.
Except when agreed to by our board of directors
or the administrator of the 2005 plan, no stock option may be transferred by an optionee other than by will or the laws of descent
and distribution, and, during the lifetime of an optionee, the option will be exercisable only by the optionee.  In the
event of termination of employment or engagement other than by death or disability, the optionee will have no more than three months
after such termination during which the optionee will be entitled to exercise the option, unless otherwise determined by our board
of directors.  Upon termination of employment or engagement of an optionee by reason of death or permanent and total
disability, the optionee's options remain exercisable for one year to the extent the options were exercisable on the date
of such termination.  No similar limitation applies to non-qualified options.
We must grant options under the 2005 plan
within ten years from the effective date of the 2005 plan.  The effective date of the 2005 plan was January 1, 2005.  Subject
to a number of exceptions, holders of incentive stock options granted under the 2005 plan cannot exercise these options more than
ten years from the date of grant.  Options granted under the 2005 plan generally provide for the payment of the exercise
price in cash and may provide for the payment of the exercise price by delivery to us of shares of common stock already owned by
the optionee having a fair market value equal to the exercise price of the options being exercised, or by a combination of these
methods.  Therefore, if it is provided in an optionee's options, the optionee may be able to tender shares of common
stock to purchase additional shares of common stock and may theoretically exercise all of his stock options with no additional
investment other than the purchase of his original shares.
Any unexercised options that expire or that
terminate upon an employee's ceasing to be employed by us become available again for issuance under the 2005 plan.
59
As of September 27, 2011, the date on which
the Advaxis, Inc. 2011 Omnibus Incentive Plan was approved by our shareholders, no further awards may be made under the 2005 plan.
2009 Stock Option Plan
Our board of directors adopted the 2009
Stock Option Plan effective July 21, 2009, and recommended that it be submitted to our shareholders for their approval at the next
annual meeting. On April 23, 2010, our board of directors approved and adopted, and on June 1, 2010 our stockholders approved,
the amended and restated 2009 Stock Option Plan, which we refer to as the 2009 plan. An aggregate of 20,000,000 shares of our common
stock (subject to adjustment by the compensation committee) are reserved for issuance upon the exercise of options granted under
the 2009 plan. As of September 27, 2011, the date on which the Advaxis, Inc. 2011 Omnibus Incentive Plan was approved by our shareholders,
no further awards may be made under the 2009 plan.
The 2009 plan is to be administered by the
compensation committee of our board of directors; provided, however, that except as otherwise expressly provided in the 2009 plan,
our board of directors may exercise any power or authority granted to the compensation committee under the 2009 plan. Subject to
the terms of the 2009 plan, the compensation committee is authorized to select eligible persons to receive options, determine the
type, number and other terms and conditions of, and all other matters relating to, options, prescribe option agreements (which
need not be identical for each participant), and the rules and regulations for the administration of the 2009 plan, construe and
interpret the 2009 plan and option agreements, correct defects, supply omissions or reconcile inconsistencies therein, and make
all other decisions and determinations as the compensation committee may deem necessary or advisable for the administration of
the 2009 plan.
The maximum number of shares of common stock
to which options may be granted to any one individual under the 2009 plan is 6,000,000 (subject to adjustment by the compensation
committee).  The shares acquired upon exercise of options granted under the 2009 plan will be authorized and issued shares
of our common stock.  Our shareholders will not have any preemptive rights to purchase or subscribe for any common stock
by reason of the reservation and issuance of common stock under the 2009 plan.  If any option granted under the 2009
plan should expire or terminate for any reason other than having been exercised in full, the unpurchased shares subject to that
option will again be available for purposes of the 2009 plan.
The persons eligible to receive awards under
the 2009 plan are the officers, directors, employees, consultants and other persons who provide services to us or any related entity.  An
employee on leave of absence may be considered as still in our or a related entity's employ for purposes of eligibility for
participation in the 2009 plan.  All options granted under the 2009 plan must be evidenced by a written agreement.  The
agreement will contain such terms and conditions as the compensation committee shall prescribe, consistent with the 2009 plan,
including, without limitation, the exercise price, term and any restrictions on the exercisability of the options granted.  For
any option granted under the 2009 plan, the exercise price per share of common stock may be any price determined by the compensation
committee; however, the exercise price per share of any incentive stock option may not be less than the fair market value of the
common stock on the date such incentive stock option is granted.
The compensation committee may permit the
exercise price of an option to be paid for in cash, by certified or official bank check or personal check, by money order, with
already owned shares of common stock that have been held by the optionee for at least six (6) months (or such other shares as we
determine will not cause us to recognize for financial accounting purposes a charge for compensation expense), the withholding
of shares of common stock issuable upon exercise of the option, by delivery of a properly executed exercise notice together with
such documentation as shall be required by the compensation committee (or, if applicable, the broker) to effect a cashless exercise,
or a combination of the above.  If paid in whole or in part with shares of already owned common stock, the value of the
shares surrendered is deemed to be their fair market value on the date the option is exercised.
No incentive stock option, and unless the
prior written consent of our compensation committee is obtained (which consent may be withheld for any reason) and the transaction
does not violate the requirements of Rule 16b-3 of the Exchange Act, no non-qualified stock option granted under the 2009 plan
is assignable or transferable, other than by will or by the laws of descent and distribution.  During the lifetime of
an optionee, an option is exercisable only by him or her, or in the case of a non-qualified stock option, by his or her permitted
assignee.
The expiration date of an option under the
2009 plan will be determined by our compensation committee at the time of grant, but in no event may such an option be exercisable
after 10 years from the date of grant.  An option may be exercised at any time or from time to time or only after a period
of time in installments, as determined by our compensation committee.  Our compensation committee may in its sole discretion
accelerate the date on which any option may be exercised. Each outstanding option granted under the 2009 plan may become immediately
fully exercisable in the event of certain transactions, including certain changes in control of us, certain mergers and reorganizations,
and certain dispositions of substantially all our assets.
60
Unless otherwise provided in the option
agreement, the unexercised portion of any option granted under the 2009 plan shall automatically be terminated (a) three months
after the date on which the optionee's employment is terminated for any reason other than (i) cause (as defined in the 2009
plan), (ii) mental or physical disability, or (iii) death; (b) immediately upon the termination of the optionee's employment
for cause; (c) one year after the date on which the optionee's employment is terminated by reason of mental or physical disability;
or (d) one year after the date on which the optionee's employment is terminated by reason of optionee's death, or if
later, three months after the date of optionee's death if death occurs during the one year period following the termination
of the optionee's employment by reason of mental or physical disability.
Unless earlier terminated by our board,
the 2009 plan will terminate at the earliest of (a) such time as no shares of common stock remain available for issuance under
the 2009 plan, (b) termination of the 2009 plan by our board, or (c) the tenth anniversary of the effective date of the 2009 plan.  Options
outstanding upon expiration of the 2009 plan shall remain in effect until they have been exercised or terminated, or have expired.
2011 Omnibus Incentive Plan
Our board of directors adopted the 2011
Omnibus Incentive Plan on August 22, 2011, and recommended that it be submitted to our shareholders for their approval at the next
annual meeting.  On September 27, 2011, our stockholders approved the 2011 Omnibus Incentive Plan, which we refer to
as the 2011 plan. On June 28, 2012, our board of directors adopted an amendment to the 2011 plan, subject to stockholder approval,
to increase the number of shares covered by, and reserved for issuance under, the 2011 plan from 20,000,000 shares to 65,000,000
shares. On August 13, 2012, our stockholders approved the amendment to the 2011 plan. An aggregate of 65,000,000 shares of our
common stock (subject to adjustment by the compensation committee) are reserved and available for delivery under the 2011 plan.  During
November 2011, we granted options to purchase 17,540,000 shares of our common stock from the 2011 plan to our employees, officers
and directors. As of November 5, 2012, 47,460,000 shares of our common stock are available for grant under the 2011 plan.
Upon receiving stockholder approval of the
2011 plan on September 27, 2011, no further awards were permitted to be made under the 2004 plan, the 2005 plan or the 2009 plan.
During any 12-month period, no participant
in the 2011 plan may be granted (i) stock options or stock appreciation rights with respect to more than 4,000,000 shares of our
common stock, or (ii) shares of restricted stock, restricted stock units, performance shares and other stock based-awards with
respect to more than 4,000,000 shares of our common stock. The maximum amount that may be paid out as performance units with respect
to any 12-month performance period is $2,500,000 (pro-rated for any 12-month performance period that is less than 12 months), and
with respect to any performance period that is more than 12 months, $2,000,000 multiplied by the number of full 12 month periods
that are in the performance period.
The Committee, as defined below, is authorized
to adjust the limitations described above and is authorized to adjust outstanding awards (including adjustments to exercise prices
of options and other affected terms of awards) in the event that a dividend or other distribution, recapitalization, forward or
reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, share exchange or other similar corporate
transaction or event affects our common stock so that an adjustment is appropriate. The Committee is also authorized to adjust
performance conditions and other terms of awards in response to these kinds of events or in response to changes in applicable laws,
regulations or accounting principles.
The persons eligible to receive awards under
the 2011 plan are the officers, directors, employees, consultants and other persons who provide services to us on a full-time basis.
The foregoing notwithstanding, only our full-time employees, or any of our parent corporations or subsidiary corporations, shall
be eligible for purposes of receiving any incentive stock options.
The 2011 plan is to be administered by a
committee designated by our board of directors consisting of not less than two directors (the "Committee"), provided,
however, that except as otherwise expressly provided in the 2011 plan, our board of directors may exercise any power or authority
granted to the Committee under the 2011 plan. Subject to the terms of the 2011 plan, the Committee is authorized to select eligible
persons to receive awards, determine the type, number and other terms and conditions of, and all other matters relating to, awards,
prescribe award agreements, and the rules and regulations for the administration of the 2011 plan, construe and interpret the 2011
plan and award agreements, correct defects, supply omissions or reconcile inconsistencies therein, and make all other decisions
and determinations as the Committee may deem necessary or advisable for the administration of the 2011 plan.
The Committee is authorized to grant stock
options, including both incentive stock options and non-qualified stock options, and stock appreciation rights entitling the participant
to receive the amount by which the fair market value of a share of our common stock on the date of exercise exceeds the grant price
of the stock appreciation right. The maximum term of each option or stock appreciation right, the times at which each option or
stock appreciation right will be exercisable, and provisions requiring forfeiture of unexercised options or stock appreciation
rights at or following termination of employment generally are fixed by the Committee, except that no option or stock appreciation
right may have a term exceeding ten years. Methods of exercise and settlement and other terms of the options and stock appreciation
right are determined by the Committee. The Committee, thus, may permit the exercise price of options awarded under the 2011 plan
to be paid in cash, shares, other awards or other property (including loans to participants).
61
The Committee is authorized to grant restricted
stock and restricted stock units. Restricted stock is a grant of shares of our common stock which may not be sold or disposed of,
and which shall be subject to such risks of forfeiture and other restrictions as the Committee may impose. An award of restricted
stock units confers upon a participant the right to receive shares of our common stock or cash equal to the fair market value of
the specified number of shares of our common stock covered by the restricted stock units at the end of a specified deferral period,
subject to such risks of forfeiture and other restrictions as the Committee may impose. Prior to settlement, an award of restricted
stock units carries no voting or dividend rights or other rights associated with share ownership, although dividend equivalents
may be granted, as discussed below.
The Committee is authorized to grant dividend
equivalents conferring on participants the right to receive, currently or on a deferred basis, cash, shares of our common stock,
other awards or other property equal in value to dividends paid on a specific number of shares of our common stock or other periodic
payments. Dividend equivalents may be granted alone or in connection with another award, may be paid currently or on a deferred
basis and, if deferred, may be deemed to have been reinvested in additional shares of our common stock, awards or otherwise as
specified by the Committee.
The Committee is authorized to grant shares
of our common stock as a bonus free of restrictions, or to grant shares of our common stock or other awards in lieu of our obligations
to pay cash under the 2011 plan or other plans or compensatory arrangements, subject to such terms as the Committee may specify.
The Committee or our board of directors
is authorized to grant awards that are denominated or payable in, valued by reference to, or otherwise based on or related to shares
of our common stock. The Committee determines the terms and conditions of such awards.
The Committee is authorized to grant performance
awards to participants on terms and conditions established by the Committee. The performance criteria to be achieved during any
performance period and the length of the performance period are determined by the Committee upon the grant of the performance award.
Performance awards may be settled by delivery of cash, shares or other property, or any combination thereof, as determined by the
Committee. The Committee may, in its discretion, determine that the amount payable as a performance award will be reduced from
the amount of any potential award.
Awards may be settled in the form of cash,
shares of our common stock, other awards or other property, in the discretion of the Committee. The Committee may require or permit
participants to defer the settlement of all or part of an award in accordance with such terms and conditions as the Committee may
establish, including payment or crediting of interest or dividend equivalents on deferred amounts, and the crediting of earnings,
gains and losses based on deemed investment of deferred amounts in specified investment vehicles. The Committee may condition any
payment relating to an award on the withholding of taxes and may provide that a portion of any shares of our common stock or other
property to be distributed will be withheld (or previously acquired shares of our common stock or other property be surrendered
by the participant) to satisfy withholding and other tax obligations.
The Committee may, in its discretion, accelerate
the exercisability, the lapsing of restrictions or the expiration of deferral or vesting periods of any award, and such accelerated
exercisability, lapse, expiration and if so provided in the award agreement or otherwise determined by the Committee, vesting shall
occur automatically in the case of a "change in control" of the Company, as defined in the 2011 plan (including the
cash settlement of stock appreciation rights which may be exercisable in the event of a change in control).
Our board of directors may amend, alter,
suspend, discontinue or terminate the 2011 plan or the Committee's authority to grant awards without further stockholder
approval, except that stockholder approval must be obtained for any amendment or alteration if such approval is required by law
or regulation or under the rules of any stock exchange or quotation system on which shares of our common stock are then listed
or quoted. Thus, stockholder approval may not necessarily be required for every amendment to the 2011 plan which might increase
the cost of the 2011 plan or alter the eligibility of persons to receive awards. Stockholder approval will not be deemed to be
required under laws or regulations, such as those relating to incentive stock options, that condition favorable treatment of participants
on such approval, although our board of directors may, in its discretion, seek stockholder approval in any circumstance in which
it deems such approval advisable. Unless earlier terminated by our board of directors, the 2011 plan will terminate at the earliest
of (a) such time as no shares of our common stock remain available for issuance under the 2011 plan, (b) termination of the 2011
plan by our board of directors, or (c) the tenth anniversary of the effective date of the 2011 plan. Awards outstanding upon expiration
of the 2011 plan shall remain in effect until they have been exercised or terminated, or have expired.
2011 Employee Stock Purchase Plan
Our board of directors adopted the Advaxis,
Inc. 2011 Employee Stock Purchase Plan, which we refer to as the ESPP, on August 22, 2011, and our stockholders approved the ESPP
on September 27, 2011. The ESPP becomes effective November 1, 2011. On December 14, 2011, our board of directors approved an amendment
to the ESPP effective as of October 31, 2011. The ESPP was amended to change the first offering date that our employees were eligible
to participate in the ESPP from November 1, 2011 to December 30, 2011. 5,000,000 shares of our common stock are reserved for issuance
under the ESPP. As of November 5, 2012, approximately 4,793,000 shares of our common stock are available for grant under the
ESPP.
The compensation committee of our board
of directors will administer the ESPP. The ESPP vests the compensation committee with the authority to interpret the ESPP, to prescribe,
amend and rescind rules and regulations relating to the ESPP, and to make all other determinations necessary or advisable for the
administration of the ESPP; however, our board of directors may exercise that authority in lieu of the compensation committee.
The ESPP is required to be administered in a manner consistent with Rule 16b-3 of the Exchange Act and subject to the provisions
of Section 423 of the Internal Revenue Code.
62
Our employees that have been designated
by our board of directors as eligible to participate in the ESPP are eligible to become participants if they have been employed
by us or any of our subsidiaries for six months and are scheduled to work at least 20 hours per week and more than five months
per calendar year. Individuals who satisfy these requirements after November 1, 2011, would be eligible to become participants
on the February 1, May 1, August 1, or November 1, as the case may be, immediately following their completion of these eligibility
requirements. These eligible employees may become participants in the ESPP by completing an enrollment agreement and filing it
with us.
The ESPP generally is implemented through
a series of 24-month-long offering periods, beginning on November 1 and ending on the October 31 that is 24 months later. Shares
of our common stock are available for purchase under the ESPP on periodic exercise dates within each offering period. Exercise
dates are the last business days in January, April, July and October during each offering period. On the first business day of
each offering period (or if later, the first day within the offering period on which a participant becomes eligible to participate),
a participant is granted the option to purchase shares of our common stock on the exercise dates within that offering period.
If the share price is ever lower on an exercise
date than it was on the first business day of the offering period in which that exercise date falls, then the offering period in
progress ends immediately after the close of trading on that exercise date, and a new offering period begins on the next February
1, May 1, August 1 or November 1, as the case may be, and extends for a new 24-month-long period ending on January 31, April 30,
July 31 or October 31, as the case may be.
No participant is eligible for the grant
of any option under the ESPP if, immediately after the grant, the participant would own, directly or indirectly, stock possessing
5% or more of the total combined voting power or value of all classes of our stock or of any of our subsidiaries. Additionally,
no participant may be granted any option that would permit the participant to buy our common stock that accrues at a rate that
exceeds $25,000 (based on the fair market value of our common stock on the date the option is granted) for each calendar year in
which such option is outstanding at any time. Finally, no participant may purchase more than 166,666 shares of our common stock
on any one exercise date.
The enrollment agreement that each participant
must submit authorizes after-tax payroll deductions from the participant's compensation during each payroll period. Participants
may elect a payroll deduction amount of at least 1%, and up to 15%, of their compensation. A participant may change or terminate
his or her payroll deductions at any time during an offering period, but may only begin payroll deductions on specified dates.
The exercise price per share at which shares
are sold in an offering under the ESPP is the lower of (i) 85% of the fair market value of a share of our common stock on the first
day of the offering period or, (ii) 85% of the fair market value of a share of our common stock on the exercise date. Unless otherwise
determined by the compensation committee, the term fair market value is defined to mean the ratio of the value traded (the price
of a share of our common stock multiplied by number of shares of common stock traded) to total volume traded over the 10-day period
ending on the valuation date.
A participant may withdraw from participation
in the ESPP at any time by completing a withdrawal form and delivering it to us. If a participant's employment terminates
for any reason, he or she is treated as having withdrawn from the ESPP. All options granted to the participant under the ESPP,
but not yet exercised, automatically terminate, and no further purchases of common stock are made for the participant's account
following the effectiveness of the participant's withdrawal. After a participant withdraws, or is treated as having withdrawn,
the participant is not permitted to participate again in the ESPP until the next entry date that is at least six months after his
or her date of withdrawal. In order to rejoin the ESPP, a former participant must submit a new enrollment agreement.
The ESPP will terminate following the last
exercise date before 10th anniversary of effective date, or if sooner, on the date on which all shares reserved for issuance under
the ESPP have been sold. Additionally, our board of directors may terminate the ESPP earlier. Our board of directors or the compensation
committee may amend the ESPP at any time, provided that no amendment may change any option in a way that adversely affects the
rights of the holder of the option, no amendment may in any way cause rights issued under the ESPP to fail to meet the requirements
for employee stock purchase plans under Section 423 of the Code, and no amendment may cause the ESPP to fail to comply with Rule
16b-3 under the Exchange Act. To the extent necessary to comply with Rule 16b-3 under the Exchange Act, Section 423 of the Code,
or any other applicable law or regulation, we will obtain shareholder approval of any such amendment.
5,000,000 shares of our common stock are
reserved for issuance under the ESPP. That amount will be increased each year by the lowest of (i) 500,000 shares, (ii) one percent
of all shares of common stock outstanding at the end of the previous year, or (iii) an amount determined by the board. If any option
granted under the ESPP expires or terminates for any reason without having been exercised in full, the unpurchased shares subject
to that option will again be available for issuance under the ESPP.
63
The ESPP provides for appropriate adjustment
of the number of shares of common stock for which options may be granted, the number of shares subject to outstanding options and
the exercise price of outstanding options in the event of any increase or decrease in the number of issued and outstanding shares
of our common stock as a result of one or more reorganizations, restructurings, recapitalizations, reclassifications, stock splits,
reverse stock splits, or stock dividends.
STOCK OWNERSHIP
The following table sets forth certain information
with respect to the beneficial ownership of our common stock as of November 5, 2012 of:
·
each person who is known by us to be the beneficial owner of more than 5% of our outstanding common stock;
·
each of our directors;
·
each of our named executive officers; and
·
all of our directors and executive officers as a group.
As used in the table below and elsewhere
in this prospectus, the term beneficial ownership with respect to our common stock consists of sole or shared voting power (which
includes the power to vote, or to direct the voting of shares of our common stock) or sole or shared investment power (which includes
the power to dispose, or direct the disposition of, shares of our common stock) through any contract, arrangement, understanding,
relationship or otherwise, including a right to acquire such power(s) during the 60 days following November 5, 2012.
Unless otherwise indicated in the footnotes
to this table, and subject to community property laws where applicable, we believe each of the stockholders named in this table
has sole voting and investment power with respect to the shares indicated as beneficially owned. Applicable percentages are based
on 396,938,817 shares of common stock outstanding as of November 5, 2012, adjusted as required by the rules promulgated by
the SEC. Unless otherwise indicated, the address for each of the individuals and entities listed in this table is 305 College Road
East, Princeton, New Jersey 08540.
Name and Address
of Beneficial Owner
Number of
Shares of our Common
Stock
Beneficially Owned
Percentage
of Class
Beneficially Owned
Thomas A. Moore
20,283,843
(1)
4.99
%
Roni A. Appel
7,371,431
(2)
1.8
%
Richard Berman
2,305,111
(3)
*
Dr. James Patton
4,016,259
(4)
1.0
%
Dr. Thomas McKearn
1,564,344
(5)
*
Dr. John Rothman
7,164,004
(6)
1.8
%
Mark J. Rosenblum
3,205,119
(7)
*
All Current Directors and Executive Officers as a Group (7 people)
45,910,111
(8)
11.4
%
* Less than 1%.
(1)
Represents 10,842,367 issued shares of our common stock, options to purchase 7,541,476 shares of our common stock exercisable within 60 days and warrants to purchase 1,900,000 shares of our common stock exercisable within 60 days. However, it excludes warrants to purchase 9,164,611 shares of our common stock and promissory notes convertible into 800,000 shares of our common stock, limited by a 4.99% beneficial ownership provision in the warrants and notes that would prohibit him from exercising any of such warrants or converting any such notes to the extent that upon such exercise or conversion he, together with his affiliates, would beneficially own more than 4.99% of the total number of shares of our common stock then issued and outstanding (unless Mr. Moore provides us with 61 days' notice of the holders waiver of such provisions).
(2)
Represents 4,212,134 issued shares of our common stock, options to purchase 3,139,297 shares of our common stock exercisable within 60 days and 20,000 shares of our common stock earned but not yet issued.
(3)
Represents 677,632 issued shares of our common stock, options to purchase 1,412,291 shares of our common stock exercisable within 60 days and 215,188 shares of our common stock earned but not yet issued.
(4)
Represents 2,940,576 issued shares of our common stock, options to purchase 833,460 shares of our common stock
    exercisable within 60 days, warrants to purchase 222,223 shares of our common
    stock exercisable within 60 days and 20,000 shares earned but not yet issued.
64
(5)
Represents 299,290 issued shares of our common stock, options to purchase 1,245,054 shares of our common stock exercisable within 60 days and 20,000 shares of our common stock earned but not yet issued.
(6)
Represents 275,775 issued shares of our common stock, options to purchase 5,051,524 shares of our common stock exercisable within 60 days and 1,836,705 shares of our common stock earned but not yet issued.
(7)
Represents 716,261 issued shares of our common stock, options to purchase 2,488,858 shares of our common stock exercisable within 60 days.
(8)
Represents an aggregate of 19,964,035 shares of our common stock, options to purchase 21,711,960 shares of our common stock exercisable within 60 days, warrants to purchase 2,122,223 shares of our common stock exercisable within 60 days, and 2,111,893 shares of our common stock earned but not yet issued.
65
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Our policy is to enter into transactions
with related parties on terms that, on the whole, are no more favorable, or no less favorable, than those available from unaffiliated
third parties.  Based on our experience in the business sectors in which we operate and the terms of our transactions
with unaffiliated third parties, we believe that all of the transactions described below met this policy standard at the time they
occurred.
On September 22, 2008, we entered into a
note purchase agreement with our Chief Executive Officer, Thomas A. Moore, which we refer to as the Moore Note Purchase Agreement,
pursuant to which we agreed to sell to Mr. Moore, from time to time, one or more senior promissory notes, which we refer to as
the Moore Notes. On June 15, 2009, we amended the terms of the Moore Notes to increase the amounts available from $800,000 to $950,000
and to change the maturity date of the Moore Notes from June 15, 2009 to the earlier of January 1, 2010 or our next equity financing
resulting in gross proceeds to us of at least $6.0 million. On February 15, 2010, we agreed to amend the terms of the Moore Notes
such that (i) Mr. Moore had the option to elect to receive accumulated interest thereon on or after March 17, 2010 (which amounted
to approximately $130,000), (ii) we were to begin to make monthly installment payments of $100,000 on the outstanding principal
amount on April 15, 2010; provided, however, that the balance of the principal will be repaid in full on consummation of our next
equity financing resulting in gross proceeds to us of at least $6.0 million and (iii) we will retain $200,000 of the repayment
amount for investment in our next equity financing. In May 2010, we issued 1,176,471 shares of common stock to Mr. Moore (based
on a price of $0.17 per share) in satisfaction of $200,000 of Moore Notes.
In connection with a loan made by Mr. Moore
to us in the amount of $230,000, we agreed to further amend and restate the terms of the Moore Notes on March 17, 2011 to increase
the principal amount due by $230,000.  Under the terms of the amended and restated Moore Notes: (i) the maturity date
is the earlier of (x) the date of consummation of an equity financing by us in an amount of $6.0 million or more and (y) the occurrence
of any event of default as defined in the Moore Notes, (ii) Mr. Moore may elect, at his option, to receive accumulated interest
thereon on or after April 15, 2011 (which amounted to approximately $91,000), (iii) we will make monthly installment payments of
$100,000 on the outstanding principal amount beginning on June 15, 2011, and (iv) we may retain, at the option of Mr. Moore, $200,000
of the repayment amount for investment in our next equity financing.  In addition, Mr. Moore made a loan to us in the amount
of $65,000 in April 2011.
The Moore Notes bear interest at a rate
of 12% per annum, compounded quarterly, and may be prepaid in whole or in part at our option without penalty at any time prior
to maturity.  In consideration of Mr. Moore's original agreement to purchase the Moore Notes, we agreed that concurrently
with an equity financing resulting in gross proceeds to us of at least $6.0 million, we will issue to Mr. Moore a warrant to purchase
our common stock, which will entitle Mr. Moore to purchase a number of shares of our common stock equal to one share per $1.00
invested by Mr. Moore in the purchase of the Moore Notes.  The terms of these warrants were subsequently modified by
our board of directors based on the terms of the senior bridge financing increasing the number of shares underlying the warrant
from one share per $1.00 invested to two and one-half shares.  The terms of these warrants were further modified by our
board of directors to increase the number of shares underlying the warrant from two and one-half shares per $1.00 invested to three
shares.  The final terms are anticipated to contain the same terms and conditions as warrants issued to investors in
the subsequent financing (which are currently exercisable at $0.15 per share).
For the period from September 22, 2008 through
May 11, 2011, Mr. Moore made loans to us in the aggregate amount of $1,372,985, making him eligible to receive warrants to purchase
4,118,956 shares of our common stock on the occurrence of certain events as set forth in the terms of the Moore Notes described
above.
In an effort to reduce the number of the
warrants outstanding from our October 17, 2007 private placement, we have entered into exchange agreements with certain of the
holders of such warrants, including Mr. Moore, pursuant to which such holders received shares of our common stock and/or additional
warrants in amounts that were determined in such negotiations. As of November 5, 2012, we have exchanged October 2007 warrants
to purchase 39,690,911 shares of our common stock in return for 7,437,857 shares of our common stock and new warrants to purchase
21,040,303 shares of our common stock (which number includes warrants issued to Mr. Moore in exchange for his October 2007 warrants
as described below). The new warrants issued pursuant to the exchanges are identical to the October 2007 warrants, except that
such warrants do not contain any economic anti-dilution adjustment rights.
On August 29, 2011, Mr. Moore entered into
an exchange agreement, pursuant to which he received a new warrant to purchase 7,674,512 shares of our common stock in exchange
for (i) surrendering an October 2007 warrant to purchase 2,666,667 shares of our common stock (as described above) and (ii) amending
the Moore Note Purchase Agreement to terminate his right to receive warrants in connection with an equity financing, including
the equity financing we completed in May 2011, which otherwise would have permitted Mr. Moore to receive the aforementioned warrant
to purchase 4,118,956 shares of our common stock.
66
In connection with the offering completed
in October 2011, we issued $470,588.24 of convertible promissory notes to Mr. Moore for a purchase price of $400,000.00. Additionally,
Mr. Moore received a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our
common stock issuable upon conversion of the convertible promissory note issued to Mr. Moore at an exercise price of $0.15 per
share. The convertible promissory note purchased in the offering completed in October 2011 by Mr. Moore was paid for in exchange
for the cancellation of $400,000.00 of outstanding indebtedness owed by us to Mr. Moore under the Moore Notes. As of November 5,
2012, approximately $238,000 in principal amount of Moore Notes was outstanding and payable to Mr. Moore. In connection with
the offering completed in October 2011, we also issued $58,823.53 of convertible promissory notes to an IRA account in the name
of our Chief Financial Officer, Mark J. Rosenblum, for a purchase price of $50,000.00. Additionally, Mr. Rosenblum received a warrant
to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable upon conversion
of the convertible promissory note issued to Mr. Rosenblum at an exercise price of $0.15 per share. The convertible promissory
notes purchased in the offering by Mr. Rosenblum were paid for in cash.
In connection with the May 2012 offering,
we issued $120,000 of convertible promissory notes to Mr. Moore for a purchase price of $90,000. Additionally, Mr. Moore received
a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable
upon conversion of the convertible promissory note issued to Mr. Moore at an exercise price of $0.15 per share. The convertible
promissory notes purchased in the May 2012 offering by Mr. Moore were paid for in cash.
Effective May
14, 2012, we entered into an exchange agreement with Mr. Moore, pursuant to which Mr. Moore received approximately 5.4 million
shares of our common stock in exchange for (i) surrendering the existing notes held by Mr. Moore and surrendering warrants to purchase
an aggregate of approximately 1,568,627 shares of our common stock originally issued on October 31, 2011, and (ii) amending the
note purchase agreements between us and Mr. Moore, dated as of October 28, 2011
, to terminate (x) Mr. Moore's right
to liquidated damages if we fail for any reason to satisfy the current public information requirement under Rule 144(c) promulgated
under the Securities Act, (y) Mr. Moore's right to participate in any proposed or intended issuance or sale or exchange of
the our securities, and (z) the prohibition on our ability to effect, or enter into an agreement to effect, any issuance of our
securities for cash consideration involving a variable rate transaction.
In June 2012, Mr. Moore loaned the Company
$50,000. As of November 5, 2012, the Company owed Mr. Moore an aggregate of approximately $558,000 in principal pursuant to
the multiple promissory notes described above.
Effective May
14, 2012, we entered into an exchange agreement with
Mr. Rosenblum
, pursuant to which
Mr.
Rosenblum
received approximately 686,000 shares of our common stock in exchange for (i) surrendering
the existing notes held by Mr. Rosenblum and surrendering warrants to purchase an aggregate of approximately 196,000 shares of
our common stock originally issued on October 31, 2011, and (ii) amending the note purchase agreements between us and
Mr.
Rosenblum
, dated as of October 28, 2011
, to terminate (x) Mr. Rosenblum's right to liquidated
damages if we fail for any reason to satisfy the current public information requirement under Rule 144(c) promulgated under the
Securities Act, (y) Mr. Rosenblum's right to participate in any proposed or intended issuance or sale or exchange of the
our securities, and (z) the prohibition on our ability to effect, or enter into an agreement to effect, any issuance of our securities
for cash consideration involving a variable rate transaction.
On June 8, 2012, Thomas A. Moore, our Chief
Executive Officer, waived our obligation to keep reserved from our authorized and available shares of common stock, such number
of shares of our common stock necessary to effect the exercise or conversion, as applicable, in full, of (i) warrants to purchase
an aggregate of 11,064,611 shares of our common stock and (ii) promissory notes convertible into 800,000 shares of our common stock.
This waiver expired on August 29, 2012, the date that we filed an amendment to our certificate of incorporation with the Secretary
of State of the State of Delaware to effect an increase to our authorized shares of common stock.
On July 5, 2012, in consideration for the
waiver described above, we entered into an exchange agreement with Mr. Moore, with an effective date of June 8, 2012, pursuant
to which Mr. Moore surrendered warrants to purchase an aggregate of approximately 11,064,611 shares of our common stock to us in
exchange for receiving warrants to purchase an aggregate of approximately 11,064,611 shares of our common stock that were not exercisable
and for which no shares of our common stock were reserved until we filed an amendment to our certificate of incorporation with
the Secretary of State of the State of Delaware to effect an increase to our authorized shares of common stock. Mr. Moore also
agreed pursuant to the exchange agreement not to convert the promissory notes convertible into 800,000 shares of our common stock
until the Company filed on amendment to its certificate of incorporation with the Secretary of State of the State of Delaware to
effect an increase to its authorized shares of common stock. In addition, certain of the warrants received in the exchange have
an extended expiration date which is two years following the date we obtained stockholder approval to increase our authorized shares
of common stock and filed an amendment to our certificate of incorporation.
On August 2, 2012, in a private placement
pursuant to a note purchase agreement, we issued Dr. James Patton, a member of our board of directors, a convertible promissory
note in the principal amount of $66,667 for a purchase price of $50,000. The Patton Note was issued with an original issue discount
of 25%. Dr. Patton paid $0.75 for each $1.00 of principal amount of the Patton Note purchased. The Patton Note is convertible into
shares of our common stock at a per share conversion price equal to $0.15. Additionally, Dr. Patton received a warrant to purchase
such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable upon conversion of
the Patton Note at an exercise price of $0.15 per share. The Patton Note and Patton Warrant also provide that on December 1, 2012,
solely to the extent the conversion price of the Patton Note or the exercise price of the Patton Warrant, as applicable, is less
than the Market Price (as defined in the Patton Note or the Patton Warrant, as applicable), such conversion price or exercise price,
as applicable, shall be reduced to such Market Price. The Patton Note matures on August 2, 2013. We may redeem the Patton Note
under certain circumstances. The Patton Warrant is exercisable at any time on or before August 2, 2017. The Patton Warrant may
be exercised on a cashless basis under certain circumstances. The Patton Note and the Patton Warrant each include a limitation
on conversion or exercise, as applicable, which provides that at no time will Dr. Patton be entitled to convert any portion of
the Patton Note or Patton Warrant to the extent that after such conversion or exercise, as applicable, Dr. Patton (together with
his affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock as of such date.
On September 25, 2012, in a private placement
pursuant to a note purchase agreement, we issued our affiliate Dr. Yvonne Paterson a convertible promissory note in the aggregate
principal amount of $100,000, for a purchase price of $100,000. The Paterson Note bears interest at a rate of 12%, compounded annually.
The Paterson Note is convertible into shares of our common stock at a conversion price equal to the arithmetic average of the five
lowest closing trading prices for the common stock during the 10 trading day period ending on the latest complete trading day prior
to the applicable conversion date. The Paterson Note matures one month from its issuance date. Additionally, Dr. Paterson will
receive a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock
issuable upon conversion of the Patterson Note at an exercise price equal to the conversion price then in effect. These warrants
have not yet been issued. The Paterson Warrant may be exercised on a cashless basis under certain circumstances. The Paterson Note
and the Paterson Warrant each include a limitation on conversion or exercise, as applicable, which provides that at no time will
Dr. Paterson be entitled to convert any portion of the Paterson Note or Paterson Warrant to the extent that after such conversion
or exercise, as applicable, Dr. Paterson (together with her affiliates) would beneficially own more than 4.99% of the outstanding
shares of the common stock as of such date.
On September 27, 2012, in a private placement pursuant to a note purchase agreement, we issued our employee
Christine French a convertible promissory note in the aggregate principal amount of $25,000, for a purchase price of $25,000. The
French Note bears interest at a rate of 12%, compounded annually. The French Note is convertible into shares of our common stock
at a conversion price equal to the arithmetic average of the five lowest closing trading prices for the common stock during the
10 trading day period ending on the latest complete trading day prior to the applicable conversion date. The French Note matures
one month from its issuance date. Additionally, Ms. French will receive a warrant to purchase such number of shares of our common
stock equal to 50% of such number of shares of our common stock issuable upon conversion of the French Note at an exercise price
equal to the conversion price then in effect. These warrants have not yet been issued. The French Warrant may be exercised on a
cashless basis under certain circumstances. The French Note and the French Warrant each include a limitation on conversion or exercise,
as applicable, which provides that at no time will Ms. French be entitled to convert any portion of the French Note or French Warrant
to the extent that after such conversion or exercise, as applicable, Ms. French (together with her affiliates) would beneficially
own more than 4.99% of the outstanding shares of the common stock as of such date.
DESCRIPTION OF OUR CAPITAL STOCK
General
At the date hereof, we are authorized by
our certificate of incorporation to issue an aggregate of 1,000,000,000 shares of common stock, par value $0.001 per share, and
5,000,000 shares of "blank check" preferred stock, par value $0.001 per share. As of November 5, 2012, there were
396,938,817 shares of common stock, no shares of Series A preferred stock and 740 shares of Series B preferred stock outstanding.
Common Stock
Holders of our common stock are entitled
to one vote for each share held of record on each matter submitted to a vote of stockholders.  Holders of our common
stock do not have cumulative voting rights, which means that the holders of more than one half of the outstanding shares of common
stock, subject to the rights of the holders of the preferred stock, if any, can elect all of our directors, if they choose to do
so.  In this event, the holders of the remaining shares of common stock would not be able to elect any directors.  Except
as otherwise required by Delaware law, and subject to the rights of the holders of preferred stock, if any, all stockholder action
is taken by the vote of a majority of the outstanding shares of common stock voting as a single class present at a meeting of stockholders
at which a quorum consisting of a majority of the outstanding shares of common stock is present in person or proxy.
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Subject to the prior rights of any class
or series of preferred stock which may from time to time be outstanding, if any, holders of our common stock are entitled to receive
ratably, dividends when, as, and if declared by our board of directors out of funds legally available for that purpose and, upon
our liquidation, dissolution, or winding up, are entitled to share ratably in all assets remaining after payment of liabilities
and payment of accrued dividends and liquidation preferences on the preferred stock, if any.  Holders of our common stock
have no preemptive rights and have no rights to convert their common stock into any other securities. The outstanding common stock
is validly authorized and issued, fully-paid and nonassessable.
Common Stock in this Offering
The 3,500,000 Commitment Fee Shares were
fully paid and are not liable for further call or assessment, and the 1,800,000 Maintenance Fee Shares and the shares issuable
under the Purchase Agreement offered in this prospectus when issued and paid for in accordance with the terms of the Purchase Agreement
will be fully paid and are not liable for further call or assessment.
Preferred Stock
General
We are authorized to issue up to 5,000,000
shares of "blank check" preferred stock.  Preferred stock may be issued in one or more series and having
the rights, privileges and limitations, including voting rights, conversion privileges and redemption rights, as may, from time
to time, be determined by our board of directors.  Preferred stock may be issued in the future in connection with acquisitions,
financings, or other matters as our board of directors deems appropriate.  In the event that any shares of preferred
stock are to be issued, a certificate of designation containing the rights, privileges and limitations of such series of preferred
stock will be filed with the Secretary of State of the State of Delaware.  The effect of such preferred stock is that,
subject to Federal securities laws and Delaware law, our board of directors alone, may be able to authorize the issuance of preferred
stock which could have the effect of delaying, deferring, or preventing a change in control of us without further action by the
stockholders, and may adversely affect the voting and other rights of the holders of our common stock.  The issuance
of preferred stock with voting and conversion rights may also adversely affect the voting power of holders of our common stock,
including the loss of voting control to others.
Our board of directors has authorized the
issuance of up to 1,000 shares of Series A Preferred Stock, $0.001 par value per share, none of which are outstanding as of the
date hereof, and up to 2,500 shares of Series B Preferred Stock, $0.001 par value per share, 740 shares of which are outstanding
as of the date hereof.
Description of Series B Preferred Stock
The following description is qualified
in its entirety by the terms and conditions set forth in the certificate of designations of Preferences, Rights and Limitations
of Series B Preferred Stock attached as exhibit 4.3 to this registration statement, which we refer to as the Series B Certificate
of Designations. The following description may not contain all the information with respect to such Series B Preferred Stock important
to you. We encourage you to read the Series B Certificate of Designations attached as exhibit 4.3 to this registration statement.
Holders of Series B preferred stock will
be entitled to receive dividends, which will accrue in shares of Series B preferred stock on an annual basis at a rate equal to
10% per annum from the issuance date. Accrued dividends will be payable upon redemption of the Series B preferred stock or upon
the liquidation, dissolution or winding up of our company. The Series B preferred stock ranks, with respect to dividend rights
and rights upon liquidation:
·
senior to our common stock and any other class or series of preferred stock (other than Series A preferred stock or any class or series of preferred stock that we intend to cause to be listed for trading or quoted on Nasdaq, NYSE Amex or the New York Stock Exchange);
·
pari passu
with any outstanding shares of our Series A preferred stock (none of which are issued and outstanding as of the date hereof); and
·
junior to all of our existing and future indebtedness and any class or series of preferred stock that we intend to cause to be listed for trading or quoted on Nasdaq, NYSE Amex or the New York Stock Exchange.
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The Series B preferred stock has a liquidation
preference per share equal to the original price per share thereof plus all accrued dividends thereon, and is subject to repurchase
following the consummation of certain fundamental transactions by us.  Upon or after the fourth anniversary of the applicable
issuance date, we have the right, at our option, to redeem all or a portion of the shares of Series B preferred stock, at their
liquidation value.  We also have the right, at our option, to redeem all or a portion of the shares of Series B preferred
stock, at a price per share equal to: (i) 136% of their liquidation value if redeemed on or after the applicable issuance date
but prior to the first anniversary of the applicable issuance date, (ii) 127% of their liquidation value if redeemed on or after
the first anniversary but prior to the second anniversary of the applicable issuance date, (iii) 118% of their liquidation value
if redeemed on or after the second anniversary but prior to the third anniversary of the applicable issuance date, and (iv) 109%
of their liquidation value if redeemed on or after the third anniversary but prior to the fourth anniversary of the applicable
issuance date.
Description of The Optimus Transactions
A.
Exchange of Series A Preferred Stock for Series B Preferred Stock
On May 13, 2010, we issued and sold an aggregate
of 500 shares of Series A preferred stock to Optimus.  The aggregate purchase price for the Series A preferred stock
was $5.0 million. On July 19, 2010, we issued 500 shares of Series B preferred stock to Optimus, which we refer to as the Series
B exchange shares, in exchange for the 500 shares of Series A preferred stock so that all shares of our preferred stock held or
subsequently purchased by Optimus under the Series B purchase agreement, as amended, would be redeemable upon substantially identical
terms.  Any accrued and unpaid dividends on the Series A preferred stock were deemed cancelled and such amount of accrued
and unpaid dividends were reflected as accrued and unpaid dividends of the Series B preferred stock issued to Optimus.
B.
Offering of Series B Preferred Stock
Pursuant to the Series B purchase
agreement, as amended, Optimus agreed to purchase, upon the terms and subject to the conditions set forth therein and
described below, up to $7.5 million of our Series B preferred stock, at a price of $10,000 per share, of which $2.84 million
of our Series B preferred stock remains available for purchase.  As of November 5, 2012, we issued and sold an
aggregate of 466 shares of Series B preferred stock to Optimus.  The aggregate purchase price for the Series B
preferred stock was $4.66 million.  Under the terms of the Series B purchase agreement, as amended, Optimus remains
obligated, from time to time until July 19, 2013, to purchase up to an additional 284 shares of Series B preferred stock upon
notice from us to Optimus.  Subject to satisfaction of certain closing conditions, Optimus is obligated to purchase
such shares of Series B preferred stock on the 10th trading day after the date of the notice.  We will determine,
in our sole discretion, the timing and amount of Series B preferred stock to be purchased by Optimus, and may sell such
shares in multiple tranches. Optimus will not be obligated to purchase the Series B preferred stock upon our notice (i) in
the event the average closing sale price of our common stock during the nine trading days following delivery of our notice
falls below 75% of the closing sale price of our common stock on the trading day prior to the date such notice is delivered
to Optimus, or (ii) to the extent such purchase would result in Optimus and its affiliates beneficially owning more than
9.99% of our outstanding common stock.
C.
Redemption of Series B Preferred Stock
On December 30, 2010, immediately following
the closing of the sale of 72 shares of Series B preferred stock to Optimus pursuant to the terms of the Series B purchase agreement,
we redeemed 226 shares of Series B Preferred Stock held by Optimus for an aggregate redemption price of $3,141,004 consisting of
(i) cash in an amount of $76,622 and (ii) the cancellation of certain promissory notes issued by an affiliate of Optimus to us
in the aggregate amount of $3,064,382.
D.
Rights to Issue Additional Series B Preferred Stock
Under the Series B purchase agreement, we
may deliver a notice to Optimus requesting that Optimus purchase additional shares of Series B preferred stock. Optimus's
obligation to accept a notice and to acquire and pay for the Series B preferred stock subject to such notice at a tranche closing
are subject to the satisfaction of certain conditions, which include, among others:
·
our common stock must be listed for trading or quoted on an eligible trading market, and we must be in compliance with all requirements under the Securities Exchange Act of 1934, as amended, in order to maintain such listing;
·
either (i) we have a current, valid and effective registration statement covering the resale of all warrant shares or (ii) all warrant shares are eligible for resale without limitation under Rule 144 (assuming cashless exercise of the warrant);
·
there must not be any material adverse effect with respect to our company since the date of the Series B purchase agreement, as amended, other than losses incurred in the ordinary course of business;
·
we must not be in default under any material agreement;
·
certain lock-up agreements with our senior officers and directors and certain beneficial owners of 10% or more of our outstanding common stock must be effective;
·
there must not be any legal restraint prohibiting the transactions contemplated by the Series B purchase agreement, as amended; and
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·
the aggregate of all shares of our common stock beneficially owned by Optimus and its affiliates must not exceed 9.99% of our outstanding common stock.
Stock Symbol
Our common stock is quoted on the OTC
Bulletin Board under the symbol ADXS.OB.  On November  12, 2012, the last reported sale price
per share for our common stock as reported by the OTC Bulletin Board was $0.04.
Warrants
The following description
is qualified in its entirety by the terms and conditions set forth in the forms of such warrants attached as exhibits to this registration
statement. The following description may not contain all the information with respect to such warrants important to you. We encourage
you to read the forms of each warrant attached as exhibits to this registration statement.
Warrants - 2007 Private Placement
As part of the October 17, 2007 private
placement, investors were issued units consisting of one share of common stock and ¾ of a five-year warrant to purchase
one share of common stock at an exercise price of $0.20 per share (prior to anti-dilution adjustments).  The October
2007 warrants provide for adjustment of their exercise prices upon the occurrence of certain events, such as payment of a stock
dividend, a stock split, a reverse split, a reclassification of shares, or any subsequent equity sale, rights offering, pro rata
distribution (full ratchet), or any fundamental transaction such as a merger, sale of all of its assets, tender offer or exchange
offer, or reclassification of its common stock.  If at any time after October 17, 2008 there is no effective registration
statement registering, or no current prospectus available for, the resale of the shares underlying the warrants by the holder of
such warrants, then the warrants may also be exercised at such time by means of a "cashless exercise." The October
2007 warrants provide that they may not be exercised if, following the exercise, the holder will be deemed to be the beneficial
owner of more than 9.99% of our outstanding shares of common stock.
In an effort to reduce the number of our
October 2007 warrants outstanding, we may from time to time enter into exchange agreements with the holders of such warrants pursuant
to which such holders may receive shares of our common stock and/or additional warrants in amounts to be determined in such negotiations.
As of November 5, 2012, we have exchanged October 2007 warrants to purchase 39,690,911 shares of our common stock with certain
investors in return for 7,437,857 shares of our common stock and new warrants to purchase 21,040,303 shares of our common stock
(which warrants are identical to the October 2007 warrants, except that such warrants do not contain any economic anti-dilution
adjustment rights).
On October 17, 2012, October 2007
warrants to purchase 15,869,507 shares of our common stock expired unexercised.
Warrants - Series A Preferred Stock Offering
At the time of the execution of the Series
A purchase agreement, an affiliate of Optimus was granted on September 24, 2009 a warrant to purchase up to 33,750,000 shares of
our common stock at an exercise price of $0.20 to be adjusted in connection with the draw down of each tranche.  As permitted
by the terms of such warrant, the aggregate exercise price of $6,250,970 received by us as of November 5, 2012 is payable pursuant
to four-year full recourse promissory notes each bearing interest at the rate of 2% per year.  In addition, in connection
with the draw down of the final tranche, we issued an additional warrant to an affiliate of Optimus to purchase up to 2,818,000
shares of common stock at an exercise price of $0.18 per share.  As permitted by the terms of such warrant, the aggregate
exercise price of $507,240 received by us as of July 31, 2011 is payable pursuant to a four-year full recourse promissory note
bearing interest at the rate of 2% per year.  The foregoing promissory notes are not due or payable at any time that
(a) we are in default of under the Series A purchase agreement, any loan agreement or other material agreement or (b) there are
any Series B exchange shares issued or outstanding.
Warrants - Series B Preferred Stock Offering
At the time of execution of the Series B
purchase agreement, we issued to Optimus a three-year warrant to purchase up to 40,500,000 shares of our common stock, at an initial
exercise price of $0.25 per share, of which no shares of our common stock remain available to purchase.  As permitted
by the terms of this warrant, the aggregate exercise price of $6,291,000 received by us as of November 5, 2012 are payable pursuant
to four-year full recourse promissory notes bearing interest at the rate of 2% per year.  On December 30, 2010, certain
of these promissory notes in the aggregate amount of $3,064,382 were cancelled as part of the redemptions price in connection with
our redemption of 226 shares of Series B Preferred Stock held by Optimus.  As of November 5, 2012 we have issued to
Optimus warrants to purchase an aggregate of 102,628,000 shares of our common stock of which the 25,560,000 described below remain
outstanding.
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On April 4, 2011, in connection with the
amendment to the Series B purchase agreement, we issued an additional warrant to an affiliate of Optimus to purchase up to 25,560,000
shares of common stock at an initial exercise price of $0.15 per share.  The warrant became exercisable on June 24, 2011,
which is the date on which a registration statement registering for resale the shares of our common stock issuable upon exercise
of the warrant became effective.  The warrant consists of and is exercisable in tranches, with a separate tranche being
created upon each delivery of a tranche notice under the Series B purchase agreement, as amended.  On each tranche notice
date, that portion of the warrant equal to 135% of the tranche amount will vest and become exercisable, and such vested portion
may be exercised at any time during the exercise period on or after such tranche notice date.  On each tranche notice
date, the exercise price of the warrant will be adjusted to the closing sale price of a share of our common stock on the applicable
tranche notice date.  The exercise price of the warrant may be paid (at the option of the affiliate of Optimus) in cash or
by issuance of a four-year, full-recourse promissory note, bearing interest at 2% per annum, and secured by a specified portfolio
of assets.  However, such promissory note is not due or payable at any time that (a) we are in default of any preferred
stock purchase agreement for Series B preferred stock or any warrant issued pursuant thereto, any loan agreement or other material
agreement or (b) there are any shares of the Series B preferred stock issued or outstanding.  The warrant also provides
for cashless exercise in certain circumstances. If Optimus fails to acquire and pay for the Series B preferred stock upon delivery
of our notice in accordance with the terms of the Series B purchase agreement, as amended, (assuming the timely and full satisfaction
of all of the conditions set forth therein) and the warrant has not previously been exercised in full, we have the right to demand
surrender of the warrant (or any remaining portion thereof) without compensation, and the warrant will automatically be cancelled.
Warrants - Bridge Offerings
In connection with the senior bridge
financing and junior bridge financings, we have issued warrants to purchase an aggregate of 15,789,125 shares of our common
stock with terms ranging from two to five years and exercise prices ranging from $0.15 to $0.25 per share (with most subject
to anti-dilution adjustments).  In return for extending the maturity dates of certain senior bridge notes, we
issued additional warrants to purchase an aggregate of 2,468,901 shares of our common stock with terms similar to their
original warrants.  Due to the anti-dilution provisions contained in our warrant agreements, we issued an aggregate
of 3,556,285 additional warrants as a result of "ratchets" that occurred in January 2010 and September
2010.  In December 2010, we issued an aggregate of 815,790 additional warrants to certain of our junior bridge note
holders, with terms similar to their original warrants, and new promissory notes in the aggregate principal amount of
$343,000 in return for extending the maturity dates of their original promissory notes.  As of November 5,
2012, we reduced the exercise price from $0.15 per share to $0.03146 per share with respect to approximately 13 million bridge
note warrants such that approximately 49 million additional shares of our common stock are issuable upon exercise of such
warrants at $0.03146 per share. As of November 5, 2012, we had approximately  150 million bridge note warrants outstanding.
The senior bridge warrants and junior bridge warrants provide for adjustment of their exercise prices upon the occurrence of
certain events, such as payment of a stock dividend, a stock split, a reverse split, a reclassification of shares, or any
subsequent equity sale, rights offering, pro rata distribution (full ratchet), or any fundamental transaction such as a
merger, sale of all of its assets, tender offer or exchange offer, or reclassification of its common stock.  Each
of the senior bridge warrants and some of the junior bridge warrants may be exercised on a cashless basis under certain
circumstances.  Each of the senior bridge warrants and junior bridge warrants provide that they may not be
exercised if, following the exercise, the holder will be deemed to be the beneficial owner of more than 9.99% of our
outstanding shares of common stock.
Warrants - May 2011 Private Placement
In connection with the issuance of approximately
$7.0 million of our convertible promissory notes to certain accredited investors in May 2011, which we refer to as the May 2011
offering, we issued warrants to purchase an aggregate of 25,480,570 shares of our common stock, of which warrants to purchase an
aggregate of 23,593,122 shares of our common stock were issued to the investors in the May 2011 offering and warrants to purchase
an aggregate of 1,887,448 shares of our common stock were issued to Rodman & Renshaw, LLC, which we refer to as Rodman, as
the placement agent for the May 2011 offering. Each May 2011 warrant has an exercise price of $0.15 per share. The May 2011 warrants
are exercisable at any time on or before the third anniversary of the issue date of the May 2011 warrants, or May 12, 2014. The
May 2011 warrants may be exercised on a cashless basis under certain circumstances. The May 2011 warrants include a limitation
on conversion or exercise, which provides that at no time will an investor be entitled to exercise any number of May 2011 warrants
that would result in the beneficial ownership by the investor and its affiliates of more than 4.99% of the outstanding shares of
our common stock on such date. The May 2011 warrants were exchanged in the May 2012 exchange for substantially identical warrants,
except that the expiration date of the new warrants has been extended for one additional year.
Warrants - October 2011 Private Placement
In connection with the issuance of approximately
$2.3 million of our convertible promissory notes to certain accredited investors in October 2011, which we refer to as the October
2011 offering, we issued warrants to purchase an aggregate of 8,620,977 shares of our common stock, of which warrants to purchase
an aggregate of 7,754,899 shares of our common stock were issued to the investors in the October 2011 offering and warrants to
purchase an aggregate of 866,078 shares of our common stock were issued to Rodman as the placement agent for the October 2011 offering.
Each October 2011 warrant has an exercise price of $0.15 per share. The October 2011 warrants are exercisable at any time on or
before the third anniversary of the issue date of the October 2011 warrants, or October 31, 2014. The October 2011 warrants may
be exercised on a cashless basis under certain circumstances. The October 2011 warrants include a limitation on conversion or exercise,
which provides that at no time will an investor be entitled to exercise any number of October 2011 warrants that would result in
the beneficial ownership by the investor and its affiliates of more than 4.99% of the outstanding shares of our common stock on
such date. Certain of the October 2011 warrants were exchanged in the May 2012 exchange for substantially identical warrants, except
that the expiration date of the new warrants has been extended for one additional year.
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Warrants - December 2011 Private Placement
In connection with the issuance of approximately
$1.2 million of our convertible promissory notes to certain accredited investors in December 2011, which we refer to as the December
2011 offering, we issued warrants to purchase an aggregate of 4,682,940 shares of our common stock, of which warrants to purchase
an aggregate of 4,107,842 shares of our common stock were issued to the investors in the December 2011 offering and warrants to
purchase an aggregate of 575,098 shares of our common stock were issued to Rodman as the placement agent for the December 2011
offering. Each December 2011 warrant has an exercise price of $0.15 per share. The December 2011 warrants are exercisable at any
time on or before the third anniversary of the issue date of the December 2011 warrants, or January 9, 2015. The December 2011
warrants may be exercised on a cashless basis under certain circumstances. The December 2011 warrants include a limitation on conversion
or exercise, which provides that at no time will an investor be entitled to exercise any number of December 2011 warrants that
would result in the beneficial ownership by the investor and its affiliates of more than 4.99% of the outstanding shares of our
common stock on such date. Certain of the December 2011 warrants were exchanged in the May 2012 exchange for substantially identical
warrants, except that the expiration date of the new warrants has been extended for one additional year.
Warrants - May 2012 Private Placement
In connection with the May
2012 offering, we issued warrants to purchase an aggregate of 3,533,333 shares of our common stock, of which warrants to
purchase an aggregate of 3,177,777 shares of our common stock were issued to the investors in the May 2012 offering and
warrants to purchase an aggregate of 231,112 shares of our common stock were issued to Rodman as the placement agent for the
May 2012 offering and 124,444 were issued to certain employees of Rodman. Each warrant, which we refer to as the May 2012 Warrant,
has an exercise price of $0.15 per share. The May 2012 Warrants are exercisable at any time on or before the fifth
anniversary of the issue date of the May 2012 Warrants, or May 18, 2017. The May 2012 Warrants may be exercised on a cashless
basis under certain circumstances. The May 2012 Warrants include a limitation on conversion or exercise, which provides that
at no time will an investor be entitled to exercise any number of May 2012 Warrants that would result in the beneficial
ownership by the investor and its affiliates of more than 4.99% of the outstanding shares of our common stock on such
date.
Warrants - July 2012 Exchanges
In July 2012, we entered into exchange agreements
with certain holders of warrants to purchase shares of our common stock, including Thomas A. Moore, our Chief Executive Officer.
After giving effect to these exchanges and the August 16, 2012 amendment to our amended and restated certificate of incorporation,
there were warrants to purchase 89,178,770 shares of our common stock outstanding.
Warrants - August and September 2012 Issuance
In connection with the Patton purchase agreement,
we issued a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock
issuable upon conversion of the Patton Note at an exercise price of $0.15 per share. The Patton Warrant is exercisable at any time
on or before the fifth anniversary of the issue date of the Patton Warrant, or August 2, 2017. The Patton Warrant may be exercised
on a cashless basis under certain circumstances. The Patton Warrant includes a limitation on exercise, which provides that at no
time will Dr. Patton be entitled to exercise the Patton Warrant for such number of shares of our common stock that would result
in the beneficial ownership by Dr. Patton and his affiliates of more than 4.99% of the outstanding shares of our common stock on
such date.
In connection with the Paterson purchase
agreement, we issued a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our
common stock issuable upon conversion of the Paterson Note at an exercise price equal to the conversion price then in effect. These
warrants have not yet been issued. The Paterson Warrant may be exercised on a cashless basis under certain circumstances. The Paterson
Warrant includes a limitation on exercise, which provides that at no time will Dr. Paterson be entitled to exercise the Paterson
Warrant to the extent for such number of shares of our common stock that would result in the beneficial ownership by Dr. Paterson
and her affiliates of more than 4.99% of the outstanding shares of our common stock on such date.
In connection with the French purchase agreement,
we issued a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock
issuable upon conversion of the French Note at an exercise price equal to the conversion price then in effect. These warrants have
not yet been issued. The French Warrant may be exercised on a cashless basis under certain circumstances. The French Warrant includes
a limitation on exercise, which provides that at no time will Ms. French be entitled to exercise the French Warrant to the extent
for such number of shares of our common stock that would result in the beneficial ownership by Ms. French and her affiliates of
more than 4.99% of the outstanding shares of our common stock on such date.
Antidilution Adjustments
As a result of
anti-dilution protection provisions contained in certain of our outstanding warrants (including the senior bridge warrants
and the junior bridge warrants), in November 2012, we reduced the exercise price from $0.15 per share to $0.03146 per share
with respect to an aggregate of approximately 13 million warrants such that approximately 49 million additional shares of our
common stock are issuable upon exercise of such warrants at $0.03146 per share. As of November 5, 2012, warrants to purchase
62,308,937 shares of our common stock are exercisable at $0.03146 per share and are subject to "full ratchet"
anti-dilution protection upon certain equity issuances below $0.03146 per share (as may be further adjusted).
Registration Rights
The following description
is qualified in its entirety by the terms and conditions set forth in the registration rights agreements with respect to the offerings
described below attached as exhibits to this registration statement. The following description may not contain all the information
with respect to such registration rights important to you. We encourage you to read the registration rights agreements attached
as exhibits to this registration statement.
Registration Rights - 2007 Private Placement
In connection with our October 2007 private
placement, we entered into a registration rights agreement with the investors in that offering pursuant to which we agreed to file
a registration statement with the SEC within 45 days after the final closing of the offering covering all of the shares of common
stock sold to the investors in the October 2007 private placement and all of the shares of common stock underlying the warrants
that were sold to the investors in that offering.  Accordingly, we initially filed a registration statement on Form SB-2
with the SEC on November 30, 2007 to register all of such shares of common stock.  The Form SB-2 registration statement
was declared effective by the SEC on January 22, 2008. Under the terms of the registration rights agreement, we agreed to keep
the registration statement effective until the earlier of (i) the date on which all of those shares of common stock may be resold
without registration under the Securities Act without regard to any volume limitations under Rule 144 under the Securities Act
or (ii) the date on which all of those shares of common stock have been resold pursuant to the registration statement or Rule 144
under the Securities Act.
The registration rights agreement provides
that if, among other things, the registration statement ceases for any reason to remain continuously effective, or the selling
stockholder is otherwise not permitted to use it to resell their shares of common stock for more than 10 consecutive calendar days
or more than a total of twenty calendar days (which need not be consecutive calendar days) during any 12-month period, then we
are required to pay as partial liquidated damages an amount equal to 1.5% of the aggregate purchase price paid by any selling stockholder
for such common stock, up to a maximum of 15% of such purchase price.  If we fail to pay any required partial liquidated
damages in full within seven days after the date payable, we are then required to pay interest thereon at a rate of 15% per annum
(or such lesser maximum amount that is permitted to be paid by applicable law) to the selling stockholder, accruing daily from
the date such partial liquidated damages are due until such amounts, plus all such interest thereon, are paid in full.
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We filed a post-effective amendment on Form
S-1 to our original registration statement on Form SB-2 to, among other things, update the information included in the original
registration statement, convert the original registration statement to a registration statement on Form S-1, and to deregister
shares of our common stock which were covered by the original registration statement, but are no longer required to be registered
under the terms of our registration rights agreement.
Registration Rights - Series B Preferred
Stock Offering
Pursuant to the terms of the Series B purchase
agreement, as amended, our rights to deliver a notice to Optimus requiring Optimus to acquire and pay for the Series B preferred
stock are subject to having a current, valid and effective registration statement covering the resale of all shares underlying
the warrants unless all shares underlying the warrants are eligible for resale without limitation under Rule 144 (assuming cashless
exercise of the warrant).
Registration Rights - May 2011 Private
Placement
In connection with the May 2011 offering,
we entered into a registration rights agreement, dated as of May 9, 2011 with the investors in the May 2011 offering. Pursuant
to such agreement, we agreed with such investors to provide certain rights to register under the Securities Act of 1933, as amended,
the shares of our common stock issuable upon any conversion of the May 2011 notes and the exercise of the May 2011 warrants, and
agreed to file a registration statement within 45 days of the closing of the May 2011 offering to register the offering of the
shares of our common stock issuable upon conversion of the May 2011 notes and the exercise of the May 2011 warrants. We fulfilled
this obligation by filing a registration statement on Form S-1 (File No. 333-175145) with the SEC on June 27, 2011.
Registration Rights - October 2011 Private
Placement
In connection with the October 2011 offering,
we entered into a registration rights agreement, dated as of October 28, 2011 with the investors in the October 2011 offering.
Pursuant to such agreement, we agreed with such investors to provide certain rights to register under the Securities Act of 1933,
as amended, the shares of our common stock issuable upon any conversion of the October 2011 notes and the exercise of the October
2011 warrants, and agreed to file a registration statement within 45 days of the closing of the October 2011 offering to register
the offering of the shares of our common stock issuable upon conversion of the October 2011 notes and the exercise of the October
2011 warrants. We fulfilled this obligation by filing a registration statement on Form S-1 (File No. 333-178172) with the SEC on
November 23, 2011.
Registration Rights - December 2011
Private Placement
In connection with the December 2011 offering,
we entered into a registration rights agreement, dated as of January 9, 2012 with the investors in the December 2011 offering.
Pursuant to such agreement, we agreed with such investors to provide certain rights to register under the Securities Act of 1933,
as amended, the shares of our common stock issuable upon any conversion of the December 2011 notes and the exercise of the December
2011 warrants, and agreed to file a registration statement within 7 business days of the closing of the December 2011 offering
to register the offering of the shares of our common stock issuable upon conversion of the December 2011 notes and the exercise
of the December 2011 warrants. We fulfilled this obligation by filing a registration statement on Form S-1 (File No. 333-179208)
with the SEC on January 27, 2012.
Registration Rights - JMJ Financial Private Placement
In connection with the settlement agreement
we entered into with JMJ Financial, pursuant to which we agreed to issue
4 million shares of our common
stock to JMJ Financial as consideration for the cancellation of certain notes and a release, we
entered into a registration
rights agreement, dated as of May 8, 2012 with JMJ Financial. Pursuant to such agreement, we agreed with JMJ Financial to provide
certain rights to register under the Securities Act of 1933, as amended, the 4 million shares of our common stock, and agreed to
file a registration statement within thirty days of the date of the JMJ Financial registration rights agreement to register the
offering of the 4,000,000 shares of our common stock.
Registration Rights - May 2012 Private Placement
In connection with the May 2012 offering,
we entered into a registration rights agreement, dated as of May 18, 2012 with the investors in the May 2012 offering. Pursuant
to such agreement, we agreed with such investors to provide certain rights to register under the Securities Act of 1933, as amended,
the shares of our common stock issuable upon any conversion of the approximately $953,333 of our convertible promissory notes that
investors acquired in the May 2012 offering, which we refer to as the May 2012 Notes, and the exercise of the May 2012 Warrants,
and agreed to file a registration statement within thirty business days of the closing of the May 2012 offering to register the
offering of the shares of our common stock issuable upon conversion of the May 2012 Notes and the exercise of the May 2012 Warrants.
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Registration Rights - Numoda Private Placement
Pursuant to the terms of the stock
purchase agreement we entered into with Numoda, pursuant to which we agreed to issue 15
million
shares of our common stock to Numoda in exchange for the immediate cancellation of $2,250,000 of accounts receivables owed by
us to Numoda pursuant to the Master Agreement, dated June 19, 2009, between Numoda and us, we
agreed to register the
resale by Numoda of the 15 million shares with the SEC within thirty business days from the closing of the transaction on
June 13, 2012. We fulfilled this obligation by filing a registration statement on Form S-1 (File
No. 133-183690) with the SEC on August 31, 2012, which was declared effective by the SEC on September 13, 2012.
Registration Rights - JMJ Financial August 2012 Settlement
and Note Issuance
Pursuant to the settlement agreement we
entered into with JMJ Financial, dated as of August 27, 2012, we agreed with JMJ Financial to provide certain rights to register
under the Securities Act of 1933, as amended, the 4,076,925 shares of our common stock, and agreed to file a registration statement
no later than August 31, 2012 to register the offering of the 8,076,923 shares of our common stock, including the 4,000,000 shares
of our common stock issued to JMJ Financial in May 2012 and the 4,076,925 shares of our common stock issued to JMJ Financial pursuant
to the Settlement Agreement.
Pursuant to the terms of the
August 2012 Note, we agreed to include up to 3,250,000 shares of our common stock which may be issuable upon conversion of
the August 2012 Note on the next registration statement that we filed with the Securities and Exchange Commission after
the issuance date of the August 2012 Note. We fulfilled this obligation by filing a registration statement on Form S-1 (File
No. 133-183682) with the SEC on August 31, 2012, which was declared effective by the SEC on September 13, 2012.
Registration Rights – Equity Enhancement Program
In connection with the Purchase
Agreement we entered into with Hanover, dated as of October 26, 2012, we agreed with Hanover to certain rights to register
under the Securities Act of 1933, as amended, the Registrable Securities and agreed to file a registration statement within
12 calendar days of the Purchase Agreement to register the resale of the Registrable Securities. For a more
detailed description of these registration rights see "Equity Enhancement Program – Registration Rights
Agreement" on Page 20 above.
Transfer Agent and Registrar
The transfer agent and registrar for our
common stock is Securities Transfer Corporation, 2591 Dallas Parkway, Suite 102, Frisco, TX 75034.
SHARES ELIGIBLE FOR FUTURE SALE
As of November 5, 2012, we had
396,938,817 shares of common stock outstanding, not including shares issuable upon conversion of certain of our notes or
shares issuable upon exercise of our options or warrants. All shares sold in this offering will be freely tradable without
restriction or further registration under the Securities Act, unless they are purchased by our "affiliates," as
that term is defined in Rule 144 promulgated under the Securities Act.
The outstanding shares of our common stock
not included in this prospectus will be available for sale in the public market as follows:
Public Float
Of our outstanding shares, as of
November 5, 2012 approximately 19,964,035 shares are beneficially owned by executive officers, directors and affiliates
(excluding shares of our common stock which (i) have been earned but not yet issued and (ii) may be acquired upon exercise of
stock options and warrants which are currently exercisable or which become exercisable within 60 days of November 5, 2012).
The approximately 376,974,782 remaining shares constitute our public float.
Rule 144
In general, under Rule 144, as currently
in effect, a person who has beneficially owned shares of our common stock for at least six months, including the holding period
of prior owners other than affiliates, is entitled to sell his or her shares without any volume limitations; an affiliate, however,
can sell such number of shares within any three-month period as does not exceed the greater of:
·
1% of the number of shares of our common stock then outstanding, which equaled 3,969,388 shares as
    of November 5, 2012, or
·
the average weekly trading volume of our common stock on the OTC Bulletin Board during the four calendar weeks preceding the filing of a notice on Form 144 with respect to that sale.
Sales under Rule 144 are also subject to
manner-of-sale provisions, notice requirements and the availability of current public information about us.  In order
to effect a Rule 144 sale of our common stock, our transfer agent will require an opinion from legal counsel.  We may
charge a fee to persons requesting sales under Rule 144 to obtain the necessary legal opinions.
As of November 5, 2012, approximately
267,074,297 shares of our common stock were available for sale by non-affiliates of ours under Rule 144.
Rule 701
Rule 701 permits our employees, officers
or directors who purchased shares of our common stock pursuant to a written compensatory plan or contract to resell such shares
in reliance upon Rule 144 but without compliance with specific restrictions.  Rule 701 provides that affiliates may sell
their Rule 701 shares of common stock under Rule 144 without complying with the holding period requirement and that non-affiliates
may sell such shares in reliance on Rule 144 without complying with the holding period, public information, volume limitation or
notice provisions of Rule 144.
Stock Options and Awards
We have registered, by means of a registration
statement on Form S-8 under the Securities Act of 1933, 2,381,525 shares of common stock reserved for issuance under our 2004 plan.  As
of November 5, 2012, options to purchase 2,381,525 shares of our common stock remain outstanding under the 2004 plan, all of
which options to purchase shares of common stock have vested and have not been exercised.  Shares of common stock issued
upon exercise of a share option and registered under registration statement on Form S-8 will, subject to vesting provisions and
Rule 144 volume limitations applicable to our affiliates, be available for sale in the open market immediately.
74
Our 2005 plan was approved by the
stockholders on June 6, 2006, and has 5,600,000 shares of common stock reserved for issuance.  As of November 5,
2012, options to purchase 5,444,000 shares of our common stock remain outstanding under our 2005 plan, all of which have
vested and have not been exercised.  Shares of common stock issued upon exercise of a share option may be eligible
for sale, subject to vesting provisions, volume limitations and other limitations of Rule 144.
Our 2009 plan was approved by the stockholders
on June 1, 2010, and has 20,000,000 shares of common stock reserved for issuance. As of November 5, 2012, options to purchase
19,441,899 shares of our common stock remain outstanding under our 2009 plan, of which options to purchase approximately 15,126,203
shares of common stock have vested and have not been exercised. Shares of common stock issued upon exercise of a share option may
be eligible for sale, subject to vesting provisions, volume limitations and other limitations of Rule 144.
Our 2011 plan was approved by the stockholders
on September 27, 2011, and, after giving effect to the amendment to the 2011 plan approved by our stockholders on August 13, 2012,
has 65,000,000 shares of common stock reserved for issuance.  As of November 5, 2012, options to purchase 17,540,000
shares of our common stock have been granted under our 2011 plan.  Shares of common stock issued pursuant to an award
granted under the 2011 plan may be eligible for sale, subject to vesting provisions, volume limitations and other limitations of
Rule 144.
Our ESPP was approved by the stockholders
on September 27, 2011, and has 5,000,000 shares of common stock reserved for issuance. As of November 5, 2012, 207,078 shares
of common stock have been issued under our ESPP. Shares of common stock issued may be eligible for sale, subject to vesting provisions,
volume limitations and other limitations of Rule 144.
Lock Up of Shares
In order to induce Optimus to enter into
the Series B purchase agreement, our executive officers, directors and beneficial owners of 10% or more of our common stock agreed
that, for a period of ten trading days beginning on each date we deliver a notice exercising the put described in the Series B
purchase agreement, as amended, to Optimus and ending on the closing date of the put exercise, they will not, without the prior
written consent of Optimus, (a) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase
or otherwise dispose of or agree to dispose of, directly or indirectly, in respect of, or establish or increase a put equivalent
position or liquidate or decrease a call equivalent position with respect to, any of our common stock or any securities convertible
into or exercisable or exchangeable for our common stock, or warrants or other rights to purchase our common stock or any such
securities, or any securities substantially similar to our common stock, (b) enter into any swap or other arrangement that transfers
to another, in whole or in part, any of the economic consequences of ownership of our common stock or any securities convertible
into or exercisable or exchangeable for our common stock or any such securities, or warrants or other rights to purchase our common
stock, whether any such transaction is to be settled by delivery of our common stock or such other securities, in cash or otherwise
or (c) publicly announce an intention to effect any transaction specified in clause (a) or (b).
SELLING STOCKHOLDER
This prospectus relates
to the possible resale from time to time by the selling stockholder of any or all of the shares of common stock that have been
or may be issued by us to Hanover under the Purchase Agreement. We are registering the shares of common stock pursuant to the provisions
of the Registration Rights Agreement we entered into with Hanover on October 19, 2012 in order to permit the selling stockholder
to offer the shares for resale from time to time. Except for the transactions contemplated by the Purchase Agreement and the Registration
Rights Agreement, Hanover has not had any material relationship with us within the past three years.
The table below presents
information regarding the selling stockholder and the shares of common stock that it may offer from time to time under this prospectus.
This table is prepared based on information supplied to us by the selling stockholder, and reflects holdings as of November 5,
2012. As used in this prospectus, the term "selling stockholder" includes Hanover and any donees, pledgees, transferees
or other successors in interest selling shares received after the date of this prospectus from the selling stockholder as a gift,
pledge, or other non-sale related transfer. The number of shares in the column "Maximum Number of Shares of Common Stock
to be Offered Pursuant to this Prospectus" represents all of the shares of common stock that the selling stockholder may
offer under this prospectus. The selling stockholder may sell some, all or none of its shares in this offering. We do not know
how long the selling stockholder will hold the shares before selling them, and we currently have no agreements, arrangements or
understandings with the selling stockholder regarding the sale of any of the shares.
Beneficial
ownership is determined in accordance with Rule 13d-3(d) promulgated by the SEC under the Exchange Act, and includes shares
of common stock with respect to which the selling stockholder has voting and investment power. The percentage of shares of
common stock beneficially owned by the selling stockholder prior to the offering shown in the table below is based on an
aggregate of  396,938,817 shares of our common stock outstanding on November 5, 2012. Because the purchase price of the
shares of common stock issuable under the Purchase Agreement is determined on each settlement date, the number of shares that
may actually be sold by the Company under the Purchase Agreement may be fewer than the number of shares being offered by this
prospectus. The fourth column assumes the sale of all of the shares offered by the selling stockholder pursuant to this
prospectus.
75
Number of Shares of Common
Stock Owned Prior to Offering
Maximum Number of
Shares of Common
Stock to be Offered
Pursuant to this
Number of Shares of Common
Stock Owned After Offering
Name of Selling Stockholder
Number(1)
(2)
Percent(3)
Prospectus
Number(4)
Percent(3)
Hanover Holdings I, LLC(5)
17,416,793
4.24
%
115,000,000
13,916,793
3.39
%
*	Represents beneficial ownership of less than one percent
of the outstanding shares of our common stock.
Rider Selling Stockholder Table
(1)
This number represents (i) the 3,500,00 shares of common stock we issued to Hanover on November 13, 2012 as Commitment
                                                            Shares in consideration for entering into the Purchase Agreement with us, (ii) 4,452,507 shares of our common stock
                                                            issuable                                                             upon conversion of the Magna Exchange Note at a
                                                            conversion price of $0.03146 per share, which was the conversion price on
                                                            November 5, 2012, and (iii)  9,464,286 shares of our common stock issuable upon conversion of the Hanover PIPE Notes at an
                                                            estimated conversion price of $0.0280 per share, which was the conversion price on November 5, 2012. The Magna Exchange Note
                                                            and the                                                             Hanover
                                                            PIPE Notes are subject to limitations on conversion if                                                             after
                                                            giving effect to such conversion Hanover would beneficially
                                                            own more than 4.99% of our common stock. For purposes of the numbers set forth in this footnote and the selling stockholder
                                                            table above, we have disregarded such limitations.
(2)
In accordance with Rule 13d-3(d) under the Exchange Act, we have excluded from the number of shares beneficially owned prior
to the offering (i) up to 1,800,000 shares that may be issued to Hanover as Maintenance Fee Shares under the terms of the Purchase
Agreement because the issuance of such shares is dependent on whether we chose to execute any draw downs during a calendar quarter
while the Purchase Agreement is in effect and (ii) all of the shares that Hanover may be required to purchase under the Purchase
Agreement because the issuance of such shares is solely at our discretion and is subject to certain conditions, the satisfaction
of all of which are outside of Hanover's control, including the registration statement of which this prospectus is a part
becoming and remaining effective. Furthermore, the maximum dollar value of each put of common stock to Hanover under the Purchase
Agreement is subject to certain agreed upon threshold limitations set forth in the Purchase Agreement. Also, under the terms of
the Purchase Agreement, we may not issue shares of our common stock to Hanover to the extent that Hanover or any of its affiliates
would, at any time, beneficially own more than 9.99% of our outstanding common stock.
(3)
Applicable percentage ownership is based on 396,938,817
shares
of our common stock outstanding as of November 5, 2012.
(4)
Assumes the sale of all shares being offered pursuant to this prospectus.
(5)
The business address of Hanover is c/o Magna Group, 5 Hanover Square, New York, New York
                                                            10004. We have been advised that Hanover is not a member of the Financial Industry Regulatory Authority, or FINRA, or an
                                                            independent broker-dealer, and that neither Hanover nor any of its affiliates is an affiliate or an associated person of any
                                                            FINRA member or independent broker-dealer. Joshua Sason has voting control and investment discretion over securities owned
                                                            by                                                             Hanover. The foregoing should not be construed in and of
                                                            itself as an admission by Mr. Sason as
                                                            to beneficial ownership of the securities owned by Hanover.
Recent Selling Stockholder
Transactions
On September 19, 2012, in a private placement
pursuant to a note purchase agreement, we issued Hanover a convertible promissory note in the aggregate principal amount of $132,500,
for a purchase price of $132,500, which we refer to as the Initial Hanover PIPE Note. On October 19, 2012, in a private placement
pursuant to a note purchase agreement, we issued Hanover a convertible promissory note in the aggregate principal amount of $132,500,
for a purchase price of $132,500, which we refer to as the Second Hanover PIPE Note, which, together with the Initial Hanover PIPE
Note we refer to as the Hanover PIPE Notes. The Hanover PIPE Notes bear interest at a rate of 12%, which interest accrues, but
does not become payable until maturity or acceleration of the principal of such Hanover PIPE Notes. The Hanover PIPE Notes are
convertible into shares of our common stock at a conversion price equal to 65% of the arithmetic average of the five lowest closing
trading prices for the common stock during the 10 trading day period ending on the latest complete trading day prior to the applicable
conversion date. The Hanover PIPE Notes mature eight months from their respective issuance dates. To the extent Hanover does not
elect to convert the Hanover PIPE Notes as described above, the principal amount and interest of such Hanover PIPE Notes shall
be payable in cash at maturity. The Hanover PIPE Notes may be converted at any time by Hanover, at its option, in whole or in part.
The Hanover PIPE Notes include a limitation on conversion, which provides that at no time will Hanover be entitled to convert any
portion of the Hanover PIPE Notes to the extent that after such conversion Hanover (together with its affiliates) would beneficially
own more than 4.99% of the outstanding shares of the common stock as of such date.
In October 2012, pursuant to the terms
of various Assignment Agreements, which we refer to as the Assignment Agreements, Magna Group, LLC, an affiliate of Hanover, which
we refer to as Magna, acquired $400,075.88 in aggregate principal amount of our outstanding convertible notes from certain third
parties and entered into agreements to acquire an additional $340,522.90 in aggregate principal amount of our outstanding convertible
notes from other third parties. Pursuant to the terms of such Assignment Agreements, we delivered two convertible notes to Magna
in an aggregate principal amount of $740,598.74, in anticipation of the closing of all of the transactions contemplated by such
Assignment Agreements. On October 25, 2012, the convertible note in the aggregate principal amount of $617,722.92 previously delivered
to Magna was exchanged for a new convertible note in the aggregate principal amount of $400,075.77, convertible into share of
common stock, which we refer to as the Magna Exchange Note, to reflect such portion of the convertible notes actually issued as
of October 25, 2012 pursuant to the Assignment Agreements, and the remaining convertible note in the aggregate principal amount
of $122,875.82 previously delivered to Magna was returned to us and cancelled. The Magna Exchange Note bears interest at a rate
of 6%, which interest accrues, but does not become payable until maturity or acceleration of the principal of the Magna Exchange
Note. The Magna Exchange Note is convertible into shares of our common stock at a conversion price equal to 73% of the arithmetic
average of the five lowest closing trading prices for the common stock during the 10 trading day period ending on the lowest complete
trading day prior to the applicable conversion date. The Magna Exchange Note matures on October 17, 2013. To the extent Magna
does not elect to convert the Magna Exchange Note as described above, the principal amount and interest of the Magna Exchange
Note shall be payable in cash at maturity. Upon the closing of the remaining transactions contemplated by such applicable Assignment
Agreements, we are obligated to issue additional convertible notes in the form of the Magna Exchange Note with respect to the
outstanding $340,522.90 in aggregate principal amount of convertible notes held by the third party signatories to the other Assignment
Agreements, which we anticipate to occur during the fourth quarter of 2012.
The Magna Exchange Note may be converted
at any time by Magna, at its option, in whole or in part. The Magna Exchange Note includes a limitation on conversion, which provides
that at no time will Magna be entitled to convert any portion of the Magna Exchange Note to the extent that after such conversion
Magna (together with its affiliates) would beneficially own more than 4.99% of the outstanding shares of the common stock as of
such date.
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PLAN OF DISTRIBUTION
We are registering
shares of common stock that have been or may be issued by us from time to time to Hanover under the Purchase Agreement to permit
the resale of these shares of common stock after the issuance thereof by the selling stockholder from time to time after the date
of this prospectus. We will not receive any of the proceeds from the sale by the selling stockholder of the shares of common stock.
We will bear all fees and expenses incident to our obligation to register the shares of common stock.
The selling stockholder
may decide not to sell any shares of common stock. The selling stockholder may sell all or a portion of the shares of common stock
beneficially owned by it and offered hereby from time to time directly or through one or more underwriters, broker-dealers or agents,
who may receive compensation in the form of discounts, concessions or commissions from the selling stockholder and/or the purchasers
of the shares of common stock for whom they may act as agent. In effecting sales, broker-dealers that are engaged by the selling
stockholder may arrange for other broker-dealers to participate. Hanover is an "underwriter" within the meaning of
the Securities Act. Any brokers, dealers or agents who participate in the distribution of the shares of common stock by the selling
stockholder may also be deemed to be "underwriters," and any profits on the sale of the shares of common stock by them
and any discounts, commissions or concessions received by any such brokers, dealers or agents may be deemed to be underwriting
discounts and commissions under the Securities Act. Hanover has advised us that it will use an unaffiliated broker-dealer to effectuate
all resales of our common stock. To our knowledge, Hanover has not entered into any agreement, arrangement or understanding with
any particular broker-dealer or market maker with respect to the shares of common stock offered hereby, nor do we know the identity
of the broker-dealers or market makers that may participate in the resale of the shares. Because Hanover is, and any other selling
stockholder, broker, dealer or agent may be deemed to be, an "underwriter" within the meaning of the Securities Act,
Hanover will (and any other selling stockholder, broker, dealer or agent may) be subject to the prospectus delivery requirements
of the Securities Act and may be subject to certain statutory liabilities of the Securities Act (including, without limitation,
Sections 11, 12 and 17 thereof) and Rule 10b-5 under the Exchange Act.
The selling stockholder
will act independently of us in making decisions with respect to the timing, manner and size of each sale. The shares of common
stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying
prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may involve
crosses or block transactions, pursuant to one or more of the following methods:
·
on any national securities exchange or quotation service on which the securities may be listed
or quoted at the time of sale;
·
in the over-the-counter market in accordance with the rules of NASDAQ;
·
in transactions otherwise than on these exchanges or systems or in the over-the-counter market;
·
through the writing or settlement of options, whether such options are listed on an options exchange
or otherwise;
·
ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
·
block trades in which the broker-dealer will attempt to sell the shares as agent but may position
and resell a portion of the block as principal to facilitate the transaction;
·
purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
·
an exchange distribution in accordance with the rules of the applicable exchange;
·
privately negotiated transactions;
·
broker-dealers may agree with the selling stockholder to sell a specified number of such shares
at a stipulated price per share;
·
a combination of any such methods of sale; and
·
any other method permitted pursuant to applicable law.
The selling stockholder
may also sell shares of common stock covered by this prospectus pursuant to Rule 144 promulgated under the Securities Act, if available,
rather than under this prospectus. In addition, the selling stockholder may transfer the shares of common stock by other means
not described in this prospectus.
77
Any broker-dealer participating
in such transactions as agent may receive commissions from the selling stockholder (and, if they act as agent for the purchaser
of such shares, from such purchaser). Hanover has informed us that each such broker-dealer will receive commissions from Hanover
which will not exceed customary brokerage commissions. Broker-dealers may agree with the selling stockholder to sell a specified
number of shares at a stipulated price per share, and, to the extent such a broker-dealer is unable to do so acting as agent for
the selling stockholder, to purchase as principal any unsold shares at the price required to fulfill the broker-dealer commitment
to the selling stockholder. Broker-dealers who acquire shares as principal may thereafter resell such shares from time to time
in one or more transactions (which may involve crosses and block transactions and which may involve sales to and through other
broker-dealers, including transactions of the nature described above and pursuant to the one or more of the methods described above)
at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated
prices, and in connection with such resales may pay to or receive from the purchasers of such shares commissions computed as described
above. To the extent required under the Securities Act, an amendment to this prospectus or a supplemental prospectus will be filed,
disclosing:
·
the name of any such broker-dealers;
·
the number of shares involved;
·
the price at which such shares are to be sold;
·
the commission paid or discounts or concessions allowed to such broker-dealers, where applicable;
·
that such broker-dealers did not conduct any investigation to verify the information set out or
incorporated by reference in this prospectus, as supplemented; and
·
other facts material to the transaction.
Hanover has informed
us that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute
the common stock. Pursuant to a requirement of the Financial Industry Regulatory Authority, or FINRA, the maximum commission or
discount and other compensation to be received by any FINRA member or independent broker-dealer shall not be greater than eight
percent (8%) of the gross proceeds received by us for the sale of any securities being registered pursuant to Rule 415 under the
Securities Act.
Under the securities
laws of some states, the shares of common stock may be sold in such states only through registered or licensed brokers or dealers.
In addition, in some states the shares of common stock may not be sold unless such shares have been registered or qualified for
sale in such state or an exemption from registration or qualification is available and is complied with.
There can be no assurance
that the selling stockholder will sell any or all of the shares of common stock registered pursuant to the registration statement,
of which this prospectus forms a part.
Underwriters and purchasers
that are deemed underwriters under the Securities Act may engage in transactions that stabilize, maintain or otherwise affect the
price of the common stock, including the entry of stabilizing bids or syndicate covering transactions or the imposition of penalty
bids. The selling stockholder and any other person participating in the sale or distribution of the shares of common stock will
be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder (including, without limitation,
Regulation M of the Exchange Act), which may restrict certain activities of, and limit the timing of purchases and sales of any
of the shares of common stock by, the selling stockholder and any other participating person. To the extent applicable, Regulation
M may also restrict the ability of any person engaged in the distribution of the shares of common stock to engage in market-making
and certain other activities with respect to the shares of common stock. In addition, the anti-manipulation rules under the Exchange
Act may apply to sales of the shares of common stock in the market. All of the foregoing may affect the marketability of the shares
of common stock and the ability of any person or entity to engage in market-making activities with respect to the shares of common
stock.
78
We have agreed to pay
all expenses of the registration of the shares of common stock pursuant to the registration rights agreement, estimated to be $587.44
in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities
or "Blue Sky" laws; provided, however, Hanover will pay all selling commissions, concessions and discounts, and other
amounts payable to underwriters, dealers or agents, if any, as well as transfer taxes and certain other expenses associated with
the sale of the shares of common stock. We have agreed to indemnify Hanover and certain other persons against certain liabilities
in connection with the offering of shares of common stock offered hereby, including liabilities arising under the Securities Act
or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities. Hanover has agreed
to indemnify us against liabilities under the Securities Act that may arise from any written information furnished to us by Hanover
specifically for use in this prospectus or, if such indemnity is unavailable, to contribute amounts required to be paid in respect
of such liabilities.
At any time a particular
offer of the shares of common stock is made by the selling stockholder, a revised prospectus or prospectus supplement, if required,
will be distributed. Such prospectus supplement or post-effective amendment will be filed with the Securities and Exchange Commission
to reflect the disclosure of any required additional information with respect to the distribution of the shares of common stock.
We may suspend the sale of shares by the selling stockholder pursuant to this prospectus for certain periods of time for certain
reasons, including if the prospectus is required to be supplemented or amended to include additional material information.
LEGAL MATTERS
The validity of the shares of common stock
offered by the selling stockholder will be passed upon for us by our counsel, Greenberg Traurig, LLP, New York, New York.  A
shareholder of Greenberg Traurig, LLP owns 4,088,686 shares of our common stock and warrants to purchase 518,566 shares of
our common stock.
EXPERTS
The financial statements appearing in this
Prospectus and Registration Statement have been audited by McGladrey LLP (formerly McGladrey & Pullen, LLP), an independent
registered public accounting firm, as stated in their report appearing elsewhere herein, which report expresses an unqualified
opinion and includes an explanatory paragraph relating to the Company's ability to continue as a going concern and are included
in reliance upon such report and upon the authority of such firm as experts in accounting and auditing.
INTERESTS OF NAMED EXPERTS AND COUNSEL
Except as set forth above under the caption
"Legal Matters," no expert or counsel named in this prospectus as having prepared or certified any part of this prospectus
or having given an opinion upon the validity of the securities being registered or upon other legal matters in connection with
the registration or offering of our common stock was employed on a contingency basis or had, or is to receive, in connection with
the offering, a substantial interest, directly or indirectly, in the registrant or any of its parents or subsidiaries.  Nor
was any such person connected with the registrant or any of its parents, subsidiaries as a promoter, managing or principal underwriter,
voting trustee, director, officer or employee.
WHERE YOU CAN FIND ADDITIONAL INFORMATION
This prospectus is part of a registration
statement we have filed with the SEC.  We have not included in this prospectus all of the information contained in the
registration statement, and you should refer to the registration statement and its exhibits for further information.
We file annual, quarterly, and current reports,
proxy statements, and other information with the SEC.  You may read and copy any materials we file at the SEC's
Public Reference Room at 100 F Street, NE., Washington, DC 20549, on official business days during the hours of 10 a.m. to 3 p.m.  You
may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.  The SEC maintains
an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically
with the SEC at http://www.sec.gov.
Our Web site address is www.advaxis.com.
The information on our web site is not incorporated into this prospectus.
79
ADVAXIS, INC.
FINANCIAL STATEMENTS
INDEX
Page
Audited Financial
    Statements
Report of Independent Registered Public Accounting Firm
F-1
Balance Sheets as of October 31, 2011  and  2010
F-2
Statements of Operations for the years ended October 31, 2011 and 2010 and the cumulative period from March 1, 2002 (Inception) to October 31, 2011
F-3
Statements of Stockholders' Equity (Deficiency) for the Period from March 1, 2002 (Inception) to October 31, 2011
F-4
Statements of Cash Flows for the years ended October 31, 2011 and 2010 and the cumulative period from March 1, 2002 (Inception) to October 31, 2011
F-5
Notes to the Financial Statements
F-7
Unaudited Interim Financial Statements
Balance Sheets as of July 31, 2012 (unaudited) and October 31, 2011
F-33
Statements of Operations for the three month period ended July 31, 2012 and 2011, the nine month period ended July 31, 2012 and 2011 and the period from March 1, 2002 (Inception) to July 31, 2012 (unaudited)
F-34
Statement of Shareholders' Deficiency for the nine month period ended July 31, 2012 (unaudited)
F-35
Statements of Cash Flow for the nine month period ended July 31, 2012 and 2011 and the period from March 1, 2002 (Inception) to July 31, 2012 (unaudited)
F-36
Supplemental Disclosures of Cash Flow Information
F-37
Supplemental Disclosures of Noncash Investing and Financing Schedules
F-37
Notes to Unaudited Financial Statements
F-38
Report of Independent
Registered Public Accounting Firm
To the Board of Directors
and Shareholders
Advaxis, Inc.
Princeton, New Jersey
We have audited the accompanying
balance sheets of Advaxis, Inc. as of October 31, 2011 and 2010, and the related statements of operations, stockholders' equity
(deficiency), and cash flows for the years then ended and for the cumulative period from March 1, 2002 (inception) to October 31,
2011.  These financial statements are the responsibility of the Company's management.  Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits
in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 
The Company is not required to have, nor were we engaged to perform an audit of its internal control over financial reporting. 
Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's
internal control over financial reporting.  Accordingly, we express no such opinion.  An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial position of Advaxis, Inc. as of October 31,
2011 and 2010, and the results of its operations and its cash flows for the years then ended and the cumulative period from March
1, 2002 (inception) to October 31, 2011 in conformity with U.S. generally accepted accounting principles.
The accompanying financial
statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial
statements, the Company's products are being developed and have not generated significant revenues. As a result, the Company
has suffered recurring losses and its liabilities exceed its assets. This raises substantial doubt about the Company's ability
to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The financial
statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ MCGLADREY & PULLEN,
LLP
MCGLADREY & PULLEN,
LLP
New York, New York
January 26, 2012
F-
1
ADVAXIS, INC.
(A Development Stage
Company)
Balance Sheet
October 31,
2011
October 31,
2010
ASSETS
Current Assets:
Cash
$
1,096,538
$
108,381
Other Current Asset Receivable
477,788
-
Grant Receivable
-
244,479
Prepaid expenses
37,474
38,511
Other Current Assets
2,221
-
Total Current Assets
1,614,021
391,371
Deferred expenses
1,380,103
233,322
Property and Equipment (net of accumulated depreciation)
-
28,406
Intangible Assets (net of accumulated amortization)
2,256,852
2,125,991
Deferred Financing Cost
65,848
-
Other Assets
323,738
96,096
TOTAL ASSETS
$
5,640,562
$
2,875,186
LIABILITIES AND SHAREHOLDERS' DEFICIENCY
Current Liabilities:
Accounts payable
$
2,420,260
$
2,586,008
Accrued expenses
2,976,334
647,125
Short-term Convertible Notes and fair value of embedded derivative
5,091,298
751,456
Notes payable – current portion, including interest payable
408,069
687,034
Total Current Liabilities
10,895,961
4,671,623
Deferred Rent
62,441
-
Long-term Convertible Notes
570,802
-
Common Stock Warrant
6,391,071
13,006,194
Total Liabilities
17,920,275
17,677,817
Shareholders' Deficiency:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; Series B Preferred Stock; issued and outstanding 740 at October 31, 2011 and 789 at October 31, 2010. Series A Preferred Stock; issued and outstanding 0 at October 31, 2011 and 0 at October 31, 2010
Common Stock - $0.001 par value; authorized 500,000,000 shares, issued and outstanding  250,173,570 in 2011 and 198,100,817 in 2010
250,173
198,101
Additional Paid-In Capital
33,000,064
23,074,978
Promissory Note Receivable
(9,998,210
)
(10,659,710
)
Deficit accumulated during the development stage
(35,531,740
)
(27,416,000
)
Total Shareholders' Deficiency
(12,279,713
)
(14,802,631
)
TOTAL LIABILITIES & SHAREHOLDERS' DEFICIENCY
$
5,640,562
$
2,875,186
The accompanying notes and
the report of independent registered public accounting firm should be read in conjunction with the financial statements.
F-
2
ADVAXIS, INC.
(A Development Stage
Company)
Statement of Operations
Year Ended
October 31,
Year Ended
October 31,
Period from
March 1, 2002
(Inception) to
October 31,
2011
2010
2011
Revenue
$
-
$
508,481
$
1,863,343
Research & Development Expenses
8,078,901
4, 904,298
23,156,740
General & Administrative Expenses
4,939,935
3,530,198
21,179,833
Total Operating expenses
13,018,836
8,434,496
44,336,573
Loss from Operations
(13,018,836
)
(7,926,015
)
(42,473,230
)
Other Income (expense):
Interest expense
(4,698,983
)
(3,814,863
)
(10,449,337
)
Other Income
(45,700
)
80,161
280,918
(Gain) Loss on note retirement
461,595
123,963
1,194,845
Write-off of intangible assets
(33,211
)
-
(33,211
)
Net changes in fair value of common stock warrant liability and embedded derivative liability
9,763,113
445,576
14,411,686
Net Loss before income tax benefit
(8,495,212
)
(11,091,178
)
(37,068,329
)
Income Tax Benefit
379,472
278,978
1,580,473
Net Loss
(8,115,740
)
(10,812,200
)
(35,487,856
)
Dividends attributable to preferred shares
1,538,686
-
1,582,570
Net Loss applicable to Common Stock
$
(9,654,426
)
$
(10,812,200
)
$
(37,070,426
)
Net Loss per share, basic
$
(0.04
)
$
(0.07
)
Net Loss per share, diluted
$
(0.04
)
$
(0.07
)
Weighted average number of shares outstanding, basic
222,918,519
150,928,808
Weighted average number of shares outstanding, diluted
222,918,519
150,928,808
The accompanying notes and
the report of independent registered public accounting firm should be read in conjunction with the financial statements.
F-
3
ADVAXIS, INC.
(a development stage
company)
STATEMENT OF SHAREHOLDERS'
EQUITY (DEFICIENCY)
Period from March
1, 2002 (inception) to October 31, 2011
Preferred Stock
Common Stock
Deficit
Number of
Stock
Accumulated
Shares of
Outstanding
Amount
Number of shares
of outstanding
Amount
Subscription
Receivable
Additional Paid-
in Capital
During the
Development Stage
Shareholders'
Equity (Deficiency)
Preferred stock issued
3,418
$
235,000
$
235,000
Common Stock Issued
40,000
$
40
$
(40
)
Options granted to consultants & professionals
10,493
$
10,493
Net Loss
(166,936
)
$
(166,936
)
Retroactive restatement to reflect re-capitalization on Nov. 12, 2004
(3,481
)
(235,000
)
15,557,723
15,558
219,442
Balance at December 31, 2002
15,597,723
$
15,598
$
229,895
$
(166,936
)
$
78,557
Note payable converted into preferred stock
232
15,969
$
15,969
Options granted to consultants and professionals
8,484
$
8,484
Net loss
(909,745
)
$
(909,745
)
Retroactive restatement to reflect re-capitalization on Nov. 12, 2004
(232
)
(15,969
)
15,969
Balance at December 31, 2003
15,597,723
$
15,598
$
254,348
$
(1,076,681
)
$
(806,735
)
Stock dividend on preferred stock
638
43,884
(43,884
)
Net loss
(538,076
)
$
(538,076
)
Options granted to consultants and professionals
5,315
5,315
Retroactive restatement to reflect re-capitalization on Nov. 12, 2004
(638
)
(43,884
)
43,884
Balance at October 31, 2004
15,597,723
$
15,598
$
303,547
$
(1,658,641
)
$
(1,339,496
)
Common Stock issued to Placement Agent on re-capitalization
752,600
753
(753
)
Effect of re-capitalization
752,600
753
(753
)
Options granted to consultants and professionals
64,924
64,924
Conversion of Note payable to Common Stock
2,136,441
2,136
611,022
613,158
Issuance of Common Stock for cash, net of shares to Placement Agent
17,450,693
17,451
4,335,549
4,353,000
Issuance of common stock to consultants
586,970
587
166,190
166,777
Issuance of common stock in connection with the registration statement
409,401
408
117,090
117,498
Issuance costs
(329,673
)
(329,673
)
Net loss
(1,805,789
)
(1,805,789
)
Restatement to reflect re- capitalization on Nov. 12, 2004 including cash paid of $44,940
(88,824
)
(88,824
)
Balance at October 31, 2005
37,686,428
$
37,686
$
5,178,319
$
(3,464,430
)
$
1,751,575
Options granted to consultants and professionals
172,831
172,831
Options granted to employees and directors
71,667
71,667
Conversion of debenture to Common Stock
1,766,902
1,767
298,233
300,000
Issuance of Common Stock to employees and directors
229,422
229
54,629
54,858
Issuance of common stock to consultants
556,240
557
139,114
139,674
Net loss
(6,197,744
)
(6,197,744
)
Balance at October 31, 2006
40,238,992
40,239
5,914,793
(9,662,173
)
(3,707,141
)
Common Stock issued
59,228,334
59,228
9,321,674
9,380,902
Offering Expenses
(2,243,535
)
(2,243,535
)
Options granted to consultants and professionals
268,577
268,577
Options granted to employees and directors
222,501
222,501
Conversion of debenture to Common Stock
6,974,202
6,974
993,026
1,000,010
Issuance of Common Stock to employees and directors
416,448
416
73,384
73,800
Issuance of common stock to consultants
1,100,001
1,100
220,678
221,778
Warrants issued on conjunction with issuance of common stock
1,505,550
1,505,550
Net loss
(2,454,453
)
(2,454,453
)
Balance at October 31, 2007
107,957,977
$
107,957
$
16,276,648
$
(12,116,626
)
$
4,267,979
Common Stock Penalty Shares
211,853
212
31,566
-
31,778
Offering Expenses
(78,013
)
(78,013
)
Options granted to consultants and professionals
(42,306
)
(42,306
)
Options granted to employees and directors
257,854
257,854
Issuance of Common Stock to employees and directors
995,844
996
85,005
86,001
Issuance of common stock to consultants
153,846
154
14,462
14,616
Warrants issued to consultant
39,198
39,198
Net loss
(5,416,418
)
(5,416,418
)
Balance at October 31, 2008
109,319,520
$
109,319
$
16,584,414
$
(17,533,044
)
$
(839,311
)
Common stock issued upon exercise of warrants
3,299,999
3,300
(3,300
)
0
Warrants classified as a  liability
(12,785,695
)
(12,785,695
)
Issuance of common Stock Warrants
(3,587,625
)
(3,587,625
)
Options granted to professionals and consultants
12,596
12,596
Options granted to employees and directors
0
467,304
467,304
Issuance of common stock to employees and directors
422,780
423
17,757
18,180
Issuance of common stock to consultants
2,595,944
2,596
49,383
51,979
Net Income/ (Loss)
929,244
929,244
Balance at October 31, 2009
115,638,243
$
115,638
$
754,834
$
(16,603,800
)
$
(15,733,328
)
Preferred Stock issued
789
-
6,828,293
6,828,293
Common stock issued upon exercise of warrants
62,265,059
62,265
(10,659,710
)
18,647,522
8,050,077
Options granted to employees and directors
455,166
455,166
Common stock issued upon conversion of Bridge Notes
15,413,960
15,414
3,306,677
3,322,091
Common stock issued to Numoda
3,500,000
3,500
591,500
595,000
Common stock issued to University of Pennsylvania
388,889
389
69,611
70,000
Common stock issued to employees and directors
750,000
750
114,750
115,500
Common stock issued to former employees
144,666
145
(145
)
-
Issuance of common stock warrants
(7,693,230
)
(7,865,520
)
Net Income/ (Loss)
(10,812,200
)
(10,812,200
)
Balance at October 31, 2010
789
-
198,100,817
$
198,101
$
(10,659,710
)
$
23,074,978
$
(27,416,000
)
$
(14,802,631
)
Preferred Stock issued
177
-
1,676,554
1,676,554
Preferred Stock redeemed
(226
)
-
3,051,000
(3,141,003
)
(90,003
)
Common stock issued upon exercise of warrants
22,986,244
22,986
(2,389,500
)
5,782,511
3,415,997
Options granted to employees and directors
717,029
717,029
Options granted to consultants
28,197
28,197
Common stock issued upon conversion of Bridge Notes
9,513,210
9,513
1,809,204
1,818,717
Common stock issued upon exchange of warrants
5,840,748
5,841
1,528,124
1,533,965
Common stock issued upon conversion of May 2011 Notes
12,647,076
12,647
2,250,536
2,263,183
Common stock issued to former employee
752,142
752
80,779
81,531
Common stock issued to consultants
333,333
333
49,667
50,000
Reclassification of warrant liability to equity
36,982
36,982
Reclassification of Embedded Derivative Liability to Beneficial Conversion Feature
132,488
132,488
Interest on Optimus Notes Receivable
202,856
202,856
Issuance of common stock warrants
(1,228,838
)
(1,228,838
)
Net Income/ (Loss)
(8,115,740
)
(8,115,740
)
Balance at October 31, 2011
740
-
250,173,570
$
250,173
$
(9,998,210
)
$
33,000,064
$
(35,531,740
)
$
(12,279,713
)
The accompanying notes and
the report of independent registered public accounting firm should be read in conjunction with the financial statements.
F-
4
ADVAXIS, INC.
(A Development Stage
Company)
Statement of Cash
Flows
Period from
March 1
2002
Year ended
Year ended
(Inception) to
October 31,
October 31,
October 31,
2011
2010
2011
OPERATING ACTIVITIES
Net Loss
$
(8,115,740
)
$
(10,812,200
)
$
(35,487,856
)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash charges to consultants and employees for options and stock
795,226
570,664
3,800,645
Amortization of deferred financing costs
-
-
260,000
Amortization of discount on Bridge Loans
482,507
550,040
1,156,393
Impairment of intangible assets
-
-
26,087
Non-cash interest expense
4,106,212
3,238,054
8,570,732
(Gain) Loss on change in value of warrants and embedded derivative
(9,763,113
)
(445,576
)
(14,411,686
)
Warrant Expense
557,935
206,275
764,210
Value of penalty shares issued
-
-
149,276
Depreciation expense
28,406
38,528
195,672
Amortization expense of intangibles
132,288
100,420
594,640
Interest Income
267
-
267
Write-off of intangible assets
33,211
-
33,211
(Gain) Loss on note retirement
461,594
(123,963
)
(1,194,845
)
Change in operating assets and liabilities:
(Increase) decrease in prepaid expenses
1,037
(2,066
)
(37,473
)
(Increase) decrease in grant receivable
244,479
(244,479
)
-
(Increase) decrease in other current assets
(2,221
)
-
(2,221
)
(Increase) in other assets
(38,438
)
(89,956
)
(132,271
)
(Increase) decrease in deferred expenses
(1,146,783
)
212,952
(872,375
)
Increase in accounts payable
739,536
388,924
3,906,728
Increase in accrued expenses
2,383,767
167,143
3,018,528
(Decrease) increase in interest payable
94,547
(178,700
)
(65,862
)
Increase in deferred rent
62,441
-
62,441
Net cash used in operating activities
(8,942,842
)
(6,423,940
)
(29,665,759
)
INVESTING ACTIVITIES
Cash paid on acquisition of Great Expectations
-
-
(44,940
)
Purchase of property and equipment
-
(12,436
)
(150,093
)
Cost of intangible assets
(296,358
)
(854,773
)
(2,915,740
)
Net cash used in Investing Activities
(296,358
)
(867,209
)
(3,110,773
)
FINANCING ACTIVITIES
Proceeds from convertible secured debenture
955,000
80,000
1,995,000
(Increase) decrease in deferred offering expenses
(52,000
)
-
(52,000
)
Cash paid for deferred financing costs
(25,000
)
-
(584,493
)
Proceeds from notes payable
7,691,063
1,255,000
13,951,952
Payment on notes payable
(769,379
)
(1,798,119
)
(2,691,089
)
Net proceeds of issuance of Preferred Stock
1,342,672
7,032,827
8,610,499
Payment on cancellation of Warrants
-
-
(600,000
)
Proceeds from the exercise of warrants
1,085,001
170,000
1,255,001
Net proceeds of issuance of Common Stock
-
-
11,988,230
Net cash provided by Financing Activities
10,227,357
6,739,708
33,873,070
Net increase (decrease) in cash
988,157
(551,441)
1,096,538
Cash at beginning of period
108,381
659,822
-
Cash at end of period
$
1,096,538
$
108,381
$
1,096,538
The accompanying notes and
the report of independent registered public accounting firm should be read in conjunction with the financial statements.
F-
5
Supplemental Disclosures
of Cash Flow Information
October 31,
Period from
March 1, 2002
(Inception) to
October 31,
2011
2010
2011
Cash paid for Interest
$
148,392
$
311,784
$
681,992
Supplemental Schedule
of Noncash Investing and Financing Activities
Period from
March 1, 2002
Year ended
Year ended
(Inception) to
October 31,
October 31,
October 31,
2011
2010
2011
Equipment acquired under notes payable
$
$
$
45,580
Common Stock issued to Founders
$
$
$
40
Notes payable and accrued interest converted to Preferred Stock
$
$
$
15,969
Stock dividend on Preferred Stock
$
$
$
43,884
Accounts payable from consultants settled with common stock
$
$
$
51,978
Notes payable and embedded derivative liabilities   converted to Common Stock
$
4,149,114
$
3,322,092
$
5,835,250
Intangible assets acquired with notes payable
$
$
$
360,000
Intangible assets acquired with common stock
$
$
70,000
$
70,000
Debt discount in connection with recording the original value of the embedded derivative liability
$
3,505,605
$
578,770
$
6,166,817
Allocation of the original secured convertible debentures to warrants
$
$
$
214,950
Allocation of the warrants on Bridge Notes as debt discount
$
778,052
$
712,036
$
2,431,049
Note Receivable in connection with the exercise of warrants
$
(661,500
)
$
10,659,710
$
9,998,210
Warrants issued in connection with issuance of Common Stock
$
$
$
1,505,550
Warrants issued in connection with issuance of Preferred Stock
$
-
$
$
3,587,625
The accompanying notes and
the report of independent registered public accounting firm should be read in conjunction with the financial statements.
F-
6
ADVAXIS, INC.
(a development stage
company)
NOTES TO FINANCIAL
STATEMENTS
1. PRINCIPAL BUSINESS
ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Advaxis is a biotechnology
company developing the next generation of immunotherapies for cancer and infectious diseases. Our novel platform technology is
designed to generate a comprehensive immune response by serving as its own adjuvant, directing antigen presentation, increasing
tumor infiltrating killer T-cells, and decreasing Tregs/MDSCs in the tumor. Today, the Company has approximately 19 (19) distinct
constructs in various stages of development, directly developed by the Company and through strategic collaborations with recognized
centers of excellence
such as: the
National Cancer Institute
,
Cancer Research – UK
, the
Wistar
Institute
, and the
University of Pennsylvania.
Since the Company's
inception in 2002, it has focused its initial development efforts upon immunotherapies targeting cervical cancer, its predecessor
condition, cervical intraepithelial neoplasia, head and neck cancer, breast cancer, prostate cancer, and other cancers and infectious
diseases. Although no products have been commercialized to date, research and development and investment continue to be placed
behind the pipeline and the advancement of this technology. Pipeline development entails risk and expense. It is anticipated that
ongoing operational costs for the Company will continue to increase significantly due to several ongoing clinical trials that began
this fiscal year.
Basis of Presentation
The preparation of financial
statements in accordance with GAAP involves the use of estimates and assumptions that affect the recorded amounts of assets and
liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. 
Actual results may differ substantially from these estimates.  Significant estimates include the fair value and recoverability
of the carrying value of intangible assets (patents and licenses), the fair value of options, the fair value of embedded conversion
features, warrants and related disclosure of contingent assets and liabilities.  On an on-going basis, we evaluate our estimates,
based on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. 
Actual results may differ from estimates.
The Company's products
are being developed and have not generated significant revenues.  As a result, the Company has suffered recurring losses and
its liabilities exceed its assets which raises substantial doubt about its ability to continue as a going concern.  These
losses are expected to continue for an extended period of time.  The Company intends to continue raising funds through the
sale of both debt and equity in order to continue funding ongoing clinical trials activity.
The accompanying financial
statements have been prepared assuming that the Company will continue as a going concern. There is a working capital deficiency,
a shareholders' deficiency and recurring losses from operations that raise substantial doubt about its ability to continue
as a going concern. The financial statements do not include any adjustments to the carrying amount and classification of recorded
assets and liabilities should the Company be unable to continue operations.  Management's plans are to continue to raise
additional funds through the sales of debt or equity securities. Results of operations for the interim periods presented are not
necessarily indicative of results to be expected for the year.
F-
7
Summary of Significant
Accounting Policies
Revenue Recognition
Revenue from license fees
and grants is recognized when the following criteria are met; persuasive evidence of an arrangement exists, services have been
rendered, the contract price is fixed or determinable, and collection is reasonably assured. In licensing arrangements, delivery
does not occur for revenue recognition purposes until the license term begins. Nonrefundable upfront fees received in exchange
for products delivered or services performed that do not represent the culmination of a separate earnings process will be deferred
and recognized over the term of the agreement using the straight line method or another method if it better represents the timing
and pattern of performance. Since its inception, all of the Company's revenues have been from multiple grants. For the year
ended October 31, 2011, the Company did not receive any revenue from grants.
For revenue contracts that
contain multiple elements, revenue arrangements with multiple deliverables are divided into separate units of accounting if the
delivered item has value to the customer on a standalone basis and there is objective and reliable evidence of the fair value of
the undelivered item.
Concentration of Credit
Risk
The Company maintains its
cash in bank deposit accounts (money market) that at times exceed federally insured limits.
Fixed Assets
Equipment is stated at
cost. Depreciation and amortization are provided for on a straight-line basis over the estimated useful life of the asset ranging
from 3 to 5 years. Expenditures for maintenance and repairs that do not materially extend the useful lives of the respective assets
are charged to expense as incurred. The cost and accumulated depreciation and/or amortization of assets retired or sold are removed
from the respective accounts and any gain or loss is recognized in operations.
Intangible Assets
Intangible assets, which
consist primarily of legal and filing costs in obtaining patents and licenses and are being amortized on a straight-line basis
over 20 years.
We review our long-lived
assets for impairment whenever events and circumstances indicate that the carrying value of an asset might not be recoverable and
its carrying amount exceeds its fair value, which is based upon estimated undiscounted future cash flows. Net assets recorded on
the balance sheet for patents and licenses related to ADXS-HPV, ADXS-PSA and ADXS-HER2 and other products are in development. However,
if a competitor were to gain FDA approval for a treatment before us or if future clinical trials fail to meet the targeted endpoints,
we would likely record an impairment related to these assets. In addition, if an application is rejected or fails to be issued
we would record an impairment of its estimated book value.
Net Loss Per Share
Basic net income or
basic net loss per common share is computed by dividing net income available to common shareholders by the weighted average number
of common shares outstanding during the periods. Diluted earnings per share give effect to dilutive options, warrants, convertible
debt and other potential common stock outstanding during the period. Therefore, in the case of a net loss the impact of the
potential common stock resulting from warrants, outstanding stock options and convertible debt are not included in the computation
of diluted loss per share, as the effect would be anti-dilutive. In the case of net income the impact of the potential common stock
resulting from these instruments that have intrinsic value are included in the diluted earnings per share. The table sets forth
the number of potential shares of common stock that have been excluded from diluted net loss per share. For 2011 and 2010, approximately
49.4 million warrants and 86 million warrants, respectively (excluding approximately 25.6 million warrants and 15.8 million warrants,
respectively, held by an affiliate of Optimus as defined  in Note #11) include anti-dilutive provisions to adjust the number
and price of the warrants based on certain types of equity transactions.
As of October 31,
2011
2010
Warrants
137,841,857
103,139,628
Stock Options
27,317,424
26,467,424
Convertible Debt (using the if-converted method)
61,660,382
4,358,176
Total
226,819,663
133,965,228
Income Taxes
Deferred income taxes
are provided for the differences between the bases of assets and liabilities for financial reporting and income tax purposes. Future
ownership changes may limit the future utilization of these net operating loss and research and development tax credit carry-forwards
as defined by the Internal Revenue Code. The amount of any potential limitation is unknown. The net deferred tax asset has been
fully offset by a valuation allowance due to our history of taxable losses and uncertainty regarding our ability to generate sufficient
taxable income in the future to utilize these deferred tax assets.
F-
8
Accounts Payable
Accounts payable consists
entirely of trade accounts payable.
Research and Development
Expenses
Research and development
expenses include, but are not limited to, payroll and personnel expenses, lab expenses, clinical trial and related clinical manufacturing
costs, facilities and related overhead costs.
Accounting for Stock-Based
Compensation
Stock-based compensation
is estimated at the grant date based on the award's fair value as calculated by the Black-Scholes-Merton option-pricing model
(hereinafter referred to as the "BSM model") and is recognized as expense over the requisite service period. The BSM
model requires various assumptions including volatility, forfeiture rates and expected option life. If any of the assumptions used
in the BSM model change significantly, stock-based compensation expense may differ materially in the future from that recorded
in the current period. See Note #2 for information on stock-based compensation expense incurred (in addition to the various assumptions
utilized in the BSM Model) in the years ending October 31, 2011 and 2010.
Warrant Liability/Embedded
Derivative Liability
The Company has outstanding
Warrants and convertible features (Embedded Derivatives) in its outstanding short-term convertible promissory notes (which include
our Bridge Notes, May 2011 Notes and October 2011 Notes). The Warrants and Embedded Derivatives are recorded at their relative
fair values at issuance.  Those Warrants, which are classified as liabilities, along with all Embedded Derivatives will continue
to be recorded at fair value each subsequent balance sheet date. Any change in fair value between reporting periods will be reported
on the statement of operations. As of October 31, 2011, the Company had approximately 101 million of its outstanding warrants classified
as liabilities (liability warrants) and approximately 36.8 million of its outstanding warrants classified as equity (equity warrants). 
At issuance, equity warrants are recorded at fair value in the stockholders equity section of the balance sheet. Our equity warrants
can only be settled through the issuance of shares and are not subject to anti-dilution provisions.  A certain number of liability
warrants contain a cash settlement provision in the event of a fundamental transaction (as defined in the common stock purchase
warrant) and approximately 49.4 million of our approximately 101 million liability warrants are subject to anti-dilution provisions.
Recent Accounting Pronouncements
Management does not
believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect
on the accompanying financial statements.
2.  SHARE-BASED
COMPENSATION EXPENSE
The Company adopted
ASC 718 and uses the modified prospective transition method, which requires the application of the accounting standard as
of November 1, 2005, the first day of the Company's fiscal year 2006. In accordance with the modified prospective transition
method, the Company's Financial Statements for prior periods were not restated to reflect, and do not include the impact
of ASC 718. The Company began recognizing expense in an amount equal to the fair value of share-based payments (stock option
awards) on their date of grant, over the requisite service period of the awards (usually the vesting period). Under the modified
prospective method, compensation expense for the Company is recognized for all share based payments granted and vested on
or after November 1, 2005 and all awards granted to employees prior to November 1, 2005 that were unvested on that date but
vested in the period over the requisite service periods in the Company's Statement of Operations. Prior to the adoption of
the fair value method, the Company accounted for stock-based compensation to employees under the intrinsic value method of accounting
set forth in Accounting Principles Board Opinion No. 25,
Accounting for Stock Issued to Employees
, and related interpretations.
Therefore, compensation expense related to employee stock options was not reflected in operating expenses in any period prior to
the fiscal year of 2006 and prior period results have not been restated. Since the date of inception to October 31, 2005 had the
Company adopted the fair value based method of accounting for stock-based employee compensation under the provisions of ASC 718,
Stock Compensation expense would have totaled $328,176 and the effect on the Company's net loss would have been as follows
for the period March 1, 2002 (date of inception) to October 31, 2011:
F-
9
March 1, 2002
(date of
inception) to
October 31,
2011
Net Loss as reported
$
(35,487,856
)
Add: Stock based option expense included in recorded net loss
89,217
Deduct stock option compensation expense determined under fair value based method
(328,176
)
Adjusted Net Loss
$
(35,726,815
)
The fair value of each
option granted from the Company's stock option plans during the years ended October 31, 2011 and 2010 was estimated on the
date of grant using the Black-Scholes option-pricing model. Using this model, fair value is calculated based on assumptions with
respect to (i) expected volatility of the Company's Common Stock price, (ii) the periods of time over which employees
and Board Directors are expected to hold their options prior to exercise (expected lives), (iii) expected dividend yield
on the Company's Common Stock, and (iv) risk-free interest rates, which are based on quoted U.S. Treasury rates for
securities with maturities approximating the options' expected lives.  The company used their own historical volatility
in determining the volatility to be used. Expected lives are based on contractual terms given the early stage of the business
and lack of intrinsic value. The expected dividend yield is zero as the Company has never paid dividends to common shareholders
and does not currently anticipate paying any in the foreseeable future.
Year Ended
Year Ended
October 31,
2011
October 31,
2010
Expected volatility
150.44
%
156.5
%
Expected Life
10.0 years
10.0 years
Dividend yield
0
0
Risk-free interest rate
3.50
%
2.75
%
Stock-based compensation
expense recognized during the period is based on the value of the portion of share-based payment awards that vested during the
period. Stock-based compensation expense for the twelve months ended October 31, 2011 includes compensation expense for share-based
payment awards granted prior to, but not yet vested as of October 31, 2005 based on the grant date fair value and compensation
expense for the share-based payment awards granted subsequent to October 31, 2005 based on the grant date fair value estimated
in accordance with the provisions of ASC 718. Compensation expense for all share-based payment awards to be recognized using the
straight line method over the requisite service period. As stock-based compensation expense for the fiscal years 2011 and 2010
is based on awards granted and vested, it has been reduced for estimated forfeitures (4.4%). ASC 718 requires forfeitures to be
estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.
In the Company's pro forma information required under SFAS 123 for the periods prior to fiscal 2006, the Company accounted
for forfeitures as they occurred.
The Company accounts for
nonemployee stock-based awards in which goods or services are the consideration received for the equity instruments issued based
on the fair value of the equity instruments.
3. INTANGIBLE ASSETS
Intangible assets primarily
consist of legal and filing costs associated with obtaining patents and licenses. The license and patent costs capitalized primarily
represent the value assigned to the Company's 20-year exclusive worldwide license agreement with Penn which are amortized
on a straight-line basis over their remaining useful lives which are estimated to be twenty years from the effective date of Penn
Agreement dated July 1, 2002. The value of the license and patents are based on management's assessment regarding the ultimate
recoverability of the amounts paid and the potential for alternative future uses. This license now includes the exclusive right
to exploit 39 patents issued and 37 patents pending and applied for in most of the largest markets in the world.
As of October 31, 2011,
all gross capitalized costs associated with the licenses and patents filed and granted as well as costs associated with patents
pending are $2,769,497 as shown under licenses and patents on the table below. The expirations of the existing patents range from
2014 to 2023 but the expirations can be extended based on market approval if granted and/or based on existing laws and regulations.
Capitalized costs associated with patent applications that are abandoned without future value are charged to expense when the determination
is made not to pursue the application. During the fiscal year ended October 31, 2011, the Company wrote off approximately
$33,000 in capitalized patent costs related to four patent applications that had expired or were abandoned. Nopatent applications
with future value were abandoned or expired and charged to expense in the prior year. Amortization expense for licensed technology
and capitalized patent cost is included in general and administrative expenses.
Under the amended and
restated agreement we are billed actual patent expenses as they are passed through from Penn and or billed directly from our patent
attorney. The following is a summary of intangible assets as of the end of the following fiscal periods:
F-
10
October 31,
2011
October 31,
2010
License
$
651,992
$
651,992
Patents
2,117,505
1,854,355
Total intangibles
2,769,497
2,506,347
Accumulated Amortization
(512,645
)
(380,356
)
Intangible Assets
$
2,256,852
$
2,125,991
Estimated amortization
expense for the next five years is as follows:
Year ended October 31,
2012
$
140,000
2013
140,000
2014
140,000
2015
140,000
2016
140,000
4. ACCRUED EXPENSES:
The following table represents
the major components of accrued expenses:
October 31,
2011
October 31,
2010
Salaries and other compensation
$
531,041
$
500,927
Sponsored Research Agreement
-
119,698
Clinical Research Organization (CRO)
2,358,247
-
Consultants
32,200
18,000
Legal
46,346
Other
8,500
8,500
$
2,976,334
$
647,125
5. NOTES PAYABLE:
Moore Notes
On September 22, 2008,
Advaxis entered into an agreement (the "Moore Agreement") with the Company's Chief Executive Officer, Thomas
Moore, pursuant to which the Company agreed to sell senior promissory notes to Mr. Moore, from time to time ("the Moore Notes").
On June 15, 2009, Mr. Moore and the Company amended the Moore Notes to increase the amounts available pursuant to the Moore Agreement
from $800,000 to $950,000 and change the maturity date of the Moore Notes from June 15, 2009 to the earlier of January 1, 2010
or the Company's next equity financing resulting in gross proceeds to the Company of at least $6 million.
On February 15, 2010, we
agreed to amend the terms of the Moore Notes such that (i) Mr. Moore may elect, at his option, to receive accumulated interest
thereon on or after March 17, 2010, (ii) we would begin to make monthly installment payments of $100,000 on the outstanding principal
amount beginning on April 15, 2010; provided, however, that the balance of the principal will be repaid in full on consummation
of our next equity financing resulting in gross proceeds to us of at least $6.0 million and (iii) we would retain $200,000 of the
repayment amount for investment in our next equity financing.
On March 17, 2011, in
connection with a loan made by our Chief Executive Officer, Thomas A. Moore, to us in the amount of $230,000, we agreed to further
amend and restate the terms of the amended and restated senior promissory note held by Mr. Moore (the "Moore Notes")
..  Under the terms of the amended and restated Moore Notes: (i) the maturity date is the earlier of (x) the date of consummation
of an equity financing by us in an amount of $6.0 million or more and (y) the occurrence of any event of default as defined in
the Moore Notes, (ii) Mr. Moore may elect, at his option, to receive accumulated interest thereon on or after April 15, 2011,
(iii) we will make monthly installment payments of $100,000 on the outstanding principal amount beginning on June 15, 2011, and
(iv) we may retain, at the option of Mr. Moore, $200,000 of the repayment amount for investment in our next equity financing.
F-
11
In addition, Mr.
Moore acquired a Note in the October 2011 Offering in exchange for the cancellation of $400,000 of outstanding indebtedness owed
by the Company under the Moore Notes.  As an investor in the October 2011 Offering, Mr. Moore received 1,568,627 warrants
at an exercise price of $0.15. These warrants expire in October 2014.
For the twelve months
ending October 31, 2011, the Company paid Mr. Moore $200,000 in principal and approximately $5,500 in interest on the Moore Notes. 
As of October 31, 2011 and October 31, 2010, respectively, the Company was not in default under the terms of the Moore Agreement. 
As of October 31, 2011, the Company owed Mr. Moore approximately $273,000 in principal and approximately $135,000 in accrued interest
under the Moore Notes.  As of October 31, 2010, the Company owed Mr. Moore approximately $573,000 in principal and approximately
$57,000 in accrued interest under the Moore Notes.
Senior Convertible Promissory
Notes
Effective June 18, 2009,
the Company entered into a Note Purchase Agreement with certain accredited investors, pursuant to which such investors acquired
senior convertible promissory notes of the Company.  At July 31, 2011, the Company had one outstanding senior convertible
promissory note with $88,824 in principal value and $26,471 in accrued interest remaining.  On August 19, 2011, the Company
issued 768,633 shares of common stock to this investor in full satisfaction of this senior convertible promissory note.  As
of October 31, 2011, the Company had no remaining senior convertible promissory notes outstanding.
Junior Subordinated
Convertible Promissory Notes
At October 31, 2010,
the Company had approximately $688,000 in outstanding principal related to its Junior Subordinated Convertible Promissory Notes. 
During the twelve months ended October 31, 2011, the Company entered into Junior Subordinated Convertible Promissory Notes in the
aggregate principal value of  $1,886,851 for aggregate net purchase prices of $1,670,000.  These notes had maturity dates
ranging from December 31, 2010 to October 31, 2012.
During the twelve month
period ended October 31, 2011, the Company reached agreement with ten investors, whose notes were to mature on dates ranging from
December 31, 2010 to April 30, 2011, in the aggregate principal value of approximately $479,000 (included in the above aggregate
principal value of $1,886,851) to exchange their original notes for new notes due on dates ranging from March 31, 2011 to August
2, 2011.  In return for exchanging their notes, these investors received additional interest of $25,208 plus approximately
816,000 additional warrants, valued using the BSM model, at approximately $87,000.
During the twelve month
period ended October 31, 2011,the Company reached agreement with three investors, whose notes were to mature on dates ranging
between August 1 and October 31, 2011,in the aggregate principal value of approximately$318,000 (included in the above aggregate
principal value of $1,886,851) to make partial repayments on their notes totaling $99,000 and exchanged the remaining principal
on the original notes for new notes (with the same amount of principal) due on dates ranging from March 31, 2012 to May 31, 2012.  These
three investors also received approximately 730,000 additional warrants, valued using the BSM model, totaling approximately $80,000.
The Company accounted
for two of these three note exchanges as substantial debt modifications under ASC 470-50:
Debt Modifications and Extinguishments
.
Therefore, the Company recorded the present values of the principal on the new notes along with the fair value of the additional
warrants issued and wrote off the remaining principal on the old notes.  The Company then recorded a loss on exchange
of approximately $22,000 (other income/(expense)) for the difference between (1) the sum of the remaining principal on the old
notes and (2) the sum of the present values of the principal on the new notes and the fair value of the additional warrants. For
the third investor, the Company recorded approximately $27,000 to equity (included in the above fair value of $80,000), representing
the fair value of the additional warrants issued upon exchange of their note.
During the twelve month
period ended October 31, 2011, the Company repaid approximately $530,000 in principal and interest.  In addition, the Company
converted approximately $1.3 million of principal and interest on these outstanding junior subordinated convertible promissory
notes into 8,652,737 shares of the Company's common stock at a conversion price of $0.15 per share.
As of October 31, 2011,
the Company had approximately $756,000(in principal to be repaid to investors) in outstanding junior subordinated convertible promissory
notes with Original Issue Discount ("OID") amounts ranging from 10% to 15% and with maturity dates ranging from October
19, 2011 to May 12, 2012.
We refer to all Senior
Convertible Promissory Notes and Junior Subordinated Convertible Promissory Notes as "Bridge Notes".
The Bridge Notes are
convertible into shares of the Company's common stock at an exercise price contingent on the completion of an equity financing.
For every dollar invested in our Bridge Notes, each Investor received warrants to purchase between 1½ and 2 ½ shares
of common stock (the "Bridge Warrants") subject to adjustments upon the occurrence of certain events as more particularly
described below and in the form of Warrant. As of October 31, 2011, substantially all of the Bridge Warrants have an exercise
price of $.15 per share. The Bridge Notes may be prepaid in whole or in part at the option of the Company without penalty at any
time prior to the Maturity Date. The warrants may be exercised on a cashless basis under certain circumstances.
F-
12
May 2011 Note Financing
On May 9, 2011, we entered
into a Note Purchase Agreement with certain accredited investors, whereby the Company issued to investors acquired approximately
$7.1 million of our convertible promissory notes, which we refer to as the May 2011 Notes, for an aggregate purchase price of approximately
$6.0 million in a private placement.  The May 2011 Notes were issued with an original issue discount of 15%. Each investor
paid $0.85 for each $1.00 of principal amount of May 2011 Notes purchased at the closing on May 12, 2011. The May 2011 Notes are
convertible into shares of our common stock, at a per share conversion price equal to $0.15. Additionally, each investor received
a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable
upon conversion of the May 2011 Note at an exercise price of $0.15 per share.
The May 2011 Notes mature
on May 12, 2012. We may redeem the May 2011 Notes, at the option of the Company only, under certain circumstances. The warrants
are exercisable at any time on or before May 12, 2014. The warrants may be exercised on a cashless basis under certain circumstances. 
To the extent an investor does not elect to convert its May 2011 Notes as described above, the principal amount not so converted
on or prior to the maturity date shall be payable in cash on the maturity date.
The May 2011Notes may be
converted by the investors, at the option of such investor, in whole or in part. However, except as otherwise provided, only 85%
of the initial principal amount of each May 2011 Note is convertible prior to maturity. The May 2011 Notes and warrants include
a limitation on conversion or exercise, which provides that at no time will an investor be entitled to convert any portion of the
May 2011 Notes or exercise any of the warrants, to the extent that after such conversion or exercise, such investor (together with
its affiliates) would beneficially own more than 4.99% of the outstanding shares of our common stock as of such date.
During the twelve months
ended October 31, 2011, the Company converted approximately $1,897,000 in principal into 12,647,077 shares of the Company's
common stock at a conversion price of $0.15.  At October 31, 2011, the Company had approximately $5.18 million in principal
outstanding on the May 2011 Notes.
October 2011 Note Financing
On October 28, 2011, we
entered into a Note Purchase Agreement, which we refer to as the October 2011 Notes, with certain accredited investors, including
Thomas A. Moore, our Chairman and Chief Executive Officer, and Mark J. Rosenblum, our Chief Financial Officer, (Mr. Rosenblum acquired
a note in the principal amount of approximately $59,000 for an aggregate purchase price of $50,000) whereby the investors acquired
approximately $2.3 million of our convertible promissory notes, which we refer to as the Notes, for an aggregate purchase price
of approximately $2.0 million in a private placement, which we refer to as the October 2011 offering. The Notes were issued with
an original issue discount of 15%. Each investor paid $0.85 for each $1.00 of principal amount of Notes purchased at the closing
of the October 2011 offering, which took place on October 31, 2011. The Notes are convertible into shares of our common stock,
at a per share conversion price equal to $0.15. Additionally, each investor received a warrant, which we refer to as the Warrants,
to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable upon conversion
of the Note at an exercise price of $0.15 per share.  The Notes purchased in the October 2011 offering were paid for in cash
or, with respect to Notes acquired by Mr. Moore, in exchange for the cancellation of $400,000 of outstanding indebtedness owed
by us to Mr. Moore.
The Notes mature on October
31, 2012. We may redeem the Notes under certain circumstances. The Warrants are exercisable at any time on or before October 31,
2014. The Warrants may be exercised on a cashless basis under certain circumstances.
To the extent an investor
does not elect to convert its Notes as described above, the principal amount of the Notes not so converted on or prior to the maturity
date shall be payable in cash on the maturity date.
The Notes may be converted
by the investors, at the option of such investor, in whole or in part.  However, except as otherwise provided in the Notes,
only 85% of the initial principal amount of each Note is convertible prior to maturity.  The Notes and Warrants include a
limitation on conversion or exercise, which provides that at no time will an investor be entitled to convert any portion of the
Notes or exercise any of the Warrants, to the extent that after such conversion or exercise, such investor (together with its affiliates)
would beneficially own more than 4.99% of the outstanding shares of our common stock as of such date.
In connection with the
October 2011 offering, we entered into a Registration Rights Agreement, dated as of October 28, 2011 with the investors. 
Pursuant to such agreement, we agreed with the investors to provide certain rights to register under the Securities Act of 1933,
as amended, the shares of our common stock issuable upon any conversion of the Notes and the exercise of the Warrants, and filed
a registration statement to register the offering of the shares of our common stock issuable upon conversion of the Notes and the
exercise of the Warrants which became effective on November 23, 2011.
Rodman & Renshaw, LLC,
which we refer to as Rodman, a subsidiary of Rodman & Renshaw Capital Group, Inc. (NASDAQ:RODM) acted as the exclusive placement
agent in connection with the October 2011 offering and received compensation of a cash placement fee equal to 7% of the aggregate
purchase price paid by investors in the October 2011 offering (approximately $110,000) and Warrants to purchase 866,078 shares
of our common stock (approximately 7% of the shares of our common stock issuable upon conversion of the Notes, except for the Notes
issued to Mr. Moore), which warrants are exercisable at $0.15 per share and shall expire on October 31, 2014.
As of October 31, 2011,
all the October 2011 Notes remained outstanding.
We refer to all convertible
promissory notes with a maturity date less than one year (the Bridge Notes, May 2011 Notes and October 2011 Notes) collectively
as "Short-term Convertible Promissory Notes"
Short-term Convertible Promissory Notes – Principal Value - Issued
$
16,039,350
Principal payments on Bridge Notes
(2,071,910
)
Short-term Convertible Promissory Note Conversions
(5,704,169
)
Bridge Note Exchanges
(26,357)
Original Issue Discount, net of accreted interest
(1,300,347
)
Fair Value of Attached Warrants at issuance
(5,234,373
)
Fair Value of Embedded Derivatives at issuance
(5,727,932
)
Accreted interest on embedded derivative and warrant liabilities
8,170,990
Convertible Notes- as of  October 31, 2011
$
4,145,252
Embedded Derivatives Liability at October 31, 2011
946,046
Short-Term Convertible Promissory Notes  and fair value of embedded derivative
$
5,091,298
BioAdvance Note
BioAdvance Biotechnology
Greenhouse of Southeastern Pennsylvania Notes ("BioAdvance") received notes from the Company for $10,000 dated November
13, 2003 and $40,000 dated December 17, 2003 that were each due on the fifth anniversary date thereof.  At October 31, 2010,
the Company owed approximately $40,000 in principal and approximately $12,000 in interest to BioAdvance.  During the year
ended October 31, 2011, the Company accrued additional interest of approximately $1,600, for total accrued interest of approximately
$13,630.  In May 2011, the Company repaid BioAdvance $50,000 in full satisfaction of the outstanding note.
F-
13
Long-term Convertible
Promissory Notes
On April 28, 2011, Advaxis,
Inc. issued and sold to an accredited investor a convertible promissory note of the Company ("Long-term Convertible Promissory
Notes") in the aggregate principal amount of $500,000 (together with the related ancillary documents, the "
A-Note
") in return for the payment in cash from the Investor of $500,000.  The A-Note bears interest in the form of a one
time interest charge of 8% of the principal amount of the A-Note, payable with the A-Note's aggregate principal amount outstanding
on the maturity date, April 28, 2014.  The A-Note is convertible, in whole or in part, into shares of the Company's
common stock, $0.001 par value. at a per share conversion price equal to 80% of the average of the two lowest trade prices for
the Common Stock in the 20 trading days previous to the effective date of each such conversion, subject to a conversion floor of
$0.15.  The A-Note may be prepaid by the Company without penalty beginning twelve months after issue date of the A-Note. 
To the extent the Investor does not elect to convert the A-Note as described above, the principal amount of the A-Note not so converted
shall be payable in cash on the maturity date.
On April 28, 2011, the
Company also issued and sold to the same accredited investor a convertible promissory note of the Company ("Long-term Convertible
Promissory Notes") in the aggregate principal amount of $800,000 (together with the related ancillary documents, the "
B-Note
" and together with the A-Note, the "
Company Notes
"). The B-Note bears interest in the
form of a one time interest charge of 8% of the principal amount of the B-Note, payable with the B-Note's aggregate principal
amount outstanding on the maturity date, April 28, 2014.  All or any portion of the aggregate principal and interest outstanding
under the B-Note is convertible, at the option of the Investor from time to time (subject to the prior pre-payment of the such
principal amount of the C-Note (as defined below) equal to the such principal amount of the B-Note subject to such conversion),
into shares of Common Stock, at a per share conversion price equal to 80% of the average of the two lowest trade prices for the
Common Stock in the 20 trading days previous to the effective date of each such conversion, subject to a conversion floor of $0.15.
Concurrently with the issuance
of the B-Note, the Investor issued and delivered to the Company a secured and collateralized promissory note (together with the
related ancillary documents, the "
C-Note
"), which served as the sole consideration paid to the Company for
the Company's issuance of the B-Note to the Investor.  The C-Note was issued in the aggregate principal amount of $800,000,
bears interest in the form of a one time interest charge of 8% of the principal amount of the C-Note, payable with the C-Note's
aggregate principal amount outstanding on the maturity date, April 28, 2014.  The C-Note is to be secured by $800,000 of an
unspecified money market fund, or other assets, having a value of at least $800,000.
Immediately after the purchase
by the Investor of the B-Note for the C-Note, the Investor delivered to the Company the sum of $80,000 in cash as a pre payment
on the principal amount outstanding under the C-Note.  In September 2011, the investor delivered another $80,000 under this
note.  While no further mandatory principal or interest payments are due on the C-Note until its maturity date, the C-Note
contemplates (but does not require) further voluntary pre payments by the Investor on the C-Note to the Company at the approximate
rate of $250,000 per month, beginning seven months after the issuance of the C-Note, or commencing on or about November 28, 2011,
but only provided: (i) all requests by the Investor for conversion of principal and interest on the B-Note are honored and (ii)
the Common Stock issued upon such conversions of portions of the principal and interest on the B-Note may be freely resold by the
Investor without the requirement of any restrictive legend pursuant to applicable securities laws, rules and regulations.
Additionally, the Investor
may purchase up to an additional $2.3 million in aggregate principal amount of notes in the form of the B-Note from the Company
(each, an "
Additional B-Note
s").  The purchase price for each such Additional B-Note issued to the Investor
will be paid by the issuance by the Investor to the Company of an additional note in the form of the C-Note (each, an "
Additional
C-Note
"), with such Additional B-Notes and Additional C-Notes containing the same terms and provisions described above.
We refer to all convertible
promissory notes, with a maturity date greater than one year collectively as "Long-term Convertible Promissory Notes."
As of October 31, 2011,
the Company owed $712,800 in outstanding principal under the Long-term Convertible Promissory Notes.  Due to the conversion
feature into a variable number of shares these notes are valued at fair value at each report period.  As of October 31, 2011,
the fair value of the notes was $570,802.
F-
14
6.  DERIVATIVES
The table below lists the
Company's derivative instruments as of October 31, 2011:
Description
Principal
Original
Issue
Discount
Warrant
Liability
Embedded
Derivative
Liability
Bridge Note 1-June 18, 2009
$
1,131,353
$
169,703
$
250,392
$
711,258
Bridge Note II & III-October 26 & 30, 2009
2,147,059
322,059
690,119
868,388
Optimus September 24, 2009
-
-
3,587,625
-
Other outstanding warrants
-
-
12,785,695
-
Total Valuation at Origination
3,278,412
491,762
17,313,831
1,579,646
Change in fair value
-
-
(5,352,697
)
(493,132
)
Accreted interest
-
(123,846
)
-
-
Total Valuation as of October 31, 2009
$
3,278,412
$
367,916
$
11,961,734
$
1,086,514
Bridge Notes IV-December 1, 2009 through January 31. 2010
555,882
83,382
207,617
164,400
Bridge Note I- Extension of Maturity Date
-
-
202,500
103,400
Change in fair value
-
-
1,995,372
(905,259
)
Accreted interest
-
(225,321
)
-
-
Exercise of Common Stock Warrants
-
-
(1,702,073
)
-
Total Valuation as of January 31, 2010
$
3,834,294
$
225,977
$
12,665,150
$
449,055
Bridge Note V
640,307
97,807
229,619
271,554
Change in fair value
-
-
5,363,854
421,404
Accreted interest
-
(251,188
)
-
-
Exercise of common stock warrants
-
-
(1,790,823
)
-
Note Payoffs
(1,040,177
)
(4,222
)
-
(64,354
)
Total Valuation as of April 30, 2010
3,434,424
68,374
16,467,800
1,077,659
Issuance of Optimus Warrants
-
-
6,856,946
-
Bridge Note Conversions
(2,420,373
)
-
-
(701,718
)
Change in fair value
-
-
(3,866,801
)
(260,843
)
Accreted interest
-
(50,842
)
-
-
Exercise of common stock warrants
-
-
(1,475,758
)
-
Note Payoffs
(88,236
)
(12,665
)
Total Valuation as of July 31, 2010
$
925,815
$
17,532
$
17,982,187
$
102,433
Bridge Note VI
265,457
25,457
72,300
39,416
Note Payoff
(414,118
)
-
-
(46,945
)
Issuance of Warrants
-
-
1,042,559
-
Accreted Interest
-
(21,052
)
-
-
Exercise of Warrants
-
-
(4,156,797
)
-
Change in FV
-
-
(1,934,055
)
(13,876
)
Total Valuation at October 31, 2010
$
777,154
$
21,937
$
13,006,194
$
81,028
Issuance of November 2010 Bridge Notes
931,579
96,579
391,076
150,156
Exchange of November 2010 Bridge Notes
17,175
17,175
86,963
9,389
Issuance of January 2011 Bridge Notes
452,941
57,941
173,808
41,024
Note Payoffs
(187,582
)
Issuance of Warrants
35,523
Accreted Interest
(73,363
)
Exercise of Warrants
(1,382,847
)
Change in FV
(3,789,889
)
(51,972
)
Total Valuation at January 31, 2011
1,991,267
120,269
8,520,828
229,625
Issuance of Q2 2011 Bridge Notes
473,392
43,392
121,238
71,336
Issuance of Long-term Convertible Promissory Notes
626,400
-
Note Payoffs
(159,675
)
(5,904
)
Issuance of Warrants
2,990,520
Accreted Interest
(74,422
)
Exercise of Warrants
(639,960
)
Change in FV
4,915,676
763,523
Total Valuation at April 30, 2011
$
2,931,384
$
89,239
$
15,908,302
$
1,058,580
Issuance of Q3 2011 Bridge Notes
11,765
1,765
4,968
5,051
Issuance of May 2011 Notes
7,077,936
1,553,254
-
2,719,345
Note Payoffs
(26,316
)
(8,860
)
Additional warrants issued to Bridge Note holder
36,376
Exchange of  Bridge Notes
8,033
8,033
2,656
Conversion of Bridge Notes
(1,164,947
)
(381,209
)
Conversion of May 2011 Notes
(671,500
)
(166,980
)
Exchanges/Exercises of October 2007 Warrants
(1,186,959
)
Accreted Interest
(340,050
)
Change in FV
(6,826,019
)
(2,141,984
)
Total Valuation at July 31, 2011
$
8,166,355
1,312,241
7,936,668
1,086,599
Issuance of October 2011 Notes
2,326,471
459,396
-
396,818
Note Payoffs
(155,806
)
Issuance of Long-term Convertible Promissory Notes
86,400
Conversion of Bridge Notes
(221,788)
(10,530
)
Conversion of May 2011 Notes
(1,225,561)
(110,494
)
Reclassification of Warrant liability to Equity
(186,908)
Exchange of Warrants
816,259
Accreted Interest
(471,290
)
Change in FV
(2,174,948 )
(416,347
)
Total Valuation at October 31, 2011
$
8,976,071
1,300,347
6,391,071
946,046
F-
15
Warrants
As of October 31, 2011,
there were outstanding warrants to purchase 137,841,857 shares of our common stock with exercise prices ranging from $0.15 to
$0.1952 per share. Information on the outstanding warrants is as follows:
Type
Exercise
Price
Amount
Expiration Date
Type of Financing
Common Stock Purchase Warrant
$
0.15
47,090,487
August – October 2012
2007  Securities Purchase Agreement
Common Stock Purchase Warrant
$
0.15
287,001
August 2012
August 2007 Notes
Common Stock Purchase Warrant
$
0.15
23,593,122
May 2014
May 2011 Convertible Debt Financing
Common Stock Purchase Warrant
$
0.15
7,754,902
October 2014
October 2011 Convertible Debt Financing
Common Stock Purchase Warrant
$
0.15 - $0.17
22,630,101
January 2013 – April 2015
Bridge Notes
Common Stock Purchase Warrant
$
0.15
7,674,512
August 2014
Executive Officer
Common Stock Purchase Warrant
$
0.15-$0.1952
446,956
February 2012
Vendor & Other
Common Stock Purchase Warrant
$
0.15
2,804,776
May 2014 - November 2015
Placement Agent – Convertible Debt Financing
Subtotal
112,281,857
Common Stock Purchase Warrant
TBD (1)
25,560,000
April 2014
Optimus Preferred Stock Agreement (4/04/2011)
Grand Total
137,841,857
(1)    For purposes
of this warrant, exercise price means an amount per warrant share equal to the closing sale price of a share of common stock on
the applicable tranche notice date.
F-
16
Warrant Liability/Embedded
Derivative Liability
The fair value
of the Warrants and Embedded Derivatives are estimated using an adjusted BSM model. The Company computes multiple valuations, each
quarter, using the BSM model for each derivative instrument to account for the various possibilities that could occur due to changes
in the inputs to the BSM model as a result of contractually-obligated changes (for example, changes in strike price to account
for down-round provisions). The Company effectively weights each calculation based on the likelihood of occurrence to determine
the value of the derivative at the reporting date. As of October 31, 2011, the fair value of the Warrants and Embedded Derivatives
were determined to be approximately $6.4 million and $946,000, respectively.  As of October 31, 2010, the fair value of the
Warrants and Embedded Derivatives were determined to be approximately $13.0 million and $81,000, respectively. We increased income
approximately $9.8 million for net changes in the fair value of the common stock warrant liability and embedded derivative liability
for the year ending October 31, 2011. We increased income approximately $446,000 for net changes in the fair value of the common
stock warrant liability and embedded derivative liability for year ending October 31, 2010.
During the year ended
October 31, 2011, investors in the Company exercised 7,233,341 warrants at a price of $0.15, resulting in total proceeds to the
Company of approximately $1,085,000 In addition, in an effort to reduce the number of the warrants outstanding from the October
17, 2007 private placement by Advaxis, Inc. (the "
Company
"), the Company has entered into exchange agreements
with certain of the holders of such warrants pursuant to which such holders received shares of the Company's common stock,
par value $0.001 per share (the "
Common Stock
"), and/or warrants to purchase shares of Common Stock in amounts
that were determined in such negotiations. As of October 31, 2011, the Company has exchanged October 2007 warrants to purchase
28,511,125 shares of Common Stock, including Mr. Moore, in return for 5,840,748 shares of Common Stock and new warrants to purchase
14,651,854 shares of Common Stock (which number includes the warrants issued to Mr. Moore in exchange for his October 2007 warrants
as described below). The new warrants issued pursuant to the exchanges are identical to the October 2007 warrants, except that
such warrants do not contain any economic anti-dilution adjustment.
Furthermore, during the
year ended October 31, 2011, Mr. Moore entered into an exchange agreement with the Company (the "
Exchange Agreement
"), pursuant to which he received a new warrant to purchase 7,674,512 shares of Common Stock (which new warrant (the "
Warrant
") is identical to the October 2007 warrant except that it does not contain any economic anti-dilution adjustment
rights, all as more particularly described in the Warrant attached hereto as Exhibit 4.1) in exchange for (i) surrendering an October
2007 warrant to purchase 2,666,667 shares of Common Stock and (ii) amending a Note Purchase Agreement, dated as of September 22,
2008, by and between the Company and Mr. Moore, to terminate his right to receive warrants in connection with an equity financing,
including the equity financing the Company completed in May 2011, which otherwise would have permitted Mr. Moore to receive a warrant
to purchase 4,118,956 shares of Common Stock.
Therefore, primarily
as a result of these efforts, the Company reduced the total number of outstanding warrants, subject to anti-dilution provisions,
to approximately 49.4 million warrants, as of October 31, 2011.  In addition, the Company recorded a non-cash charge of approximately
$458,000 to other expense (loss on retirement) and approximately $486,000 in non-cash warrant expense, for the fiscal year ended
October 31, 2011, as a result of these warrant exchanges (including Mr. Moore).
The company recognized
non-cash warrant expense of approximately $72,000, for the year ending October 31, 2011, related to the fair value of the additional
warrants issued to bridge note holders as well as a placement agent for the sale of junior unsecured convertible promissory notes.
7. STOCK OPTIONS:
2004 Stock
Option Plan
In November 2004, our board
of directors adopted and our stockholders approved the 2004 Stock Option Plan, which we refer to as the 2004 plan.  The 2004
plan provides for the grant of options to purchase up to 2,381,525 shares of our common stock to employees, officers, directors
and consultants.  Options may be either "incentive stock options" or non-qualified options under the Federal tax
laws.  Incentive stock options may be granted only to our employees, while non-qualified options may be issued, in addition
to employees, to non-employee directors and consultants.  As of October 31, 2011, all options to purchase shares of our common
stock have been granted under the 2004 plan.
The 2004 plan is administered
by "disinterested members" of our board of directors or the compensation committee, who determine, among other things,
the individuals who will receive options, the time period during which the options may be partially or fully exercised, the number
of shares of common stock issuable upon the exercise of each option and the option exercise price.
Subject to a number of
exceptions, the exercise price per share of common stock subject to an incentive option may not be less than the fair market value
per share of common stock on the date the option is granted.  The per share exercise price of our common stock subject to
a non-qualified option may be established by our board of directors, but will not, however, be less than 85% of the fair market
value per share of common stock on the date the option is granted.  The aggregate fair market value of common stock for which
any person may be granted incentive stock options which first become exercisable in any calendar year may not exceed $100,000 on
the date of grant.
No stock option
may be transferred by an optionee other than by will or the laws of descent and distribution, and, during the lifetime of an optionee,
the option will be exercisable only by the optionee.  In the event of termination of employment or engagement other than by
death or disability, the optionee will have no more than three months after such termination during which the optionee will be
entitled to exercise the option to the extent vested at termination, unless otherwise determined by our board of directors. 
Upon termination of employment or engagement of an optionee by reason of death or permanent and total disability, the optionee's
options remain exercisable for one year to the extent the options were exercisable on the date of such termination.  No similar
limitation applies to non-qualified options.
We must grant options under
the 2004 plan within ten years from the effective date of the 2004 plan.  The effective date of the 2004 plan was November
12, 2004.  Subject to a number of exceptions, holders of incentive stock options granted under the 2004 plan cannot exercise
these options more than ten years from the date of grant.  Options granted under the 2004 plan generally provide for the payment
of the exercise price in cash and may provide for the payment of the exercise price by delivery to us of shares of common stock
already owned by the optionee having a fair market value equal to the exercise price of the options being exercised, or by a combination
of these methods.  Therefore, if it is provided in an optionee's options, the optionee may be able to tender shares
of common stock to purchase additional shares of common stock and may theoretically exercise all of his stock options with no additional
investment other than the purchase of his original shares.
Any unexercised options
that expire or that terminate upon an employee's ceasing to be employed by us become available again for issuance under the
2004 plan.
As of September 27, 2011,
the date on which the Advaxis, Inc. 2011 Omnibus Incentive Plan was approved by our shareholders, no further awards may be made
under the 2004 plan.
F-
17
2005 Stock Option
Plan
In June 2006 our board
of directors adopted, and on June 6, 2006 our stockholders approved, the 2005 Stock Option Plan, which we refer to as the 2005
plan.
The 2005 plan provides
for the grant of options to purchase up to 5,600,000 shares of our common stock to employees, officers, directors and consultants. 
Options may be either "incentive stock options" or non-qualified options under the Federal tax laws.  Incentive
stock options may be granted only to our employees, while non-qualified options may be issued to non-employee directors, consultants
and others, as well as to our employees.  As of October 31, 2011, all options to purchase shares of our common stock have
been granted under the 2005 plan.
The 2005 plan is administered
by "disinterested members" of our board of directors or the compensation committee, who determine, among other things,
the individuals who will receive options, the time period during which the options may be partially or fully exercised, the number
of shares of common stock issuable upon the exercise of each option and the option exercise price.
Subject to a number of
exceptions, the exercise price per share of common stock subject to an incentive option may not be less than the fair market value
per share of common stock on the date the option is granted.  The per share exercise price of our common stock subject to
a non-qualified option may be established by our board of directors, but will not, however, be less than 85% of the fair market
value per share of common stock on the date the option is granted.  The aggregate fair market value of common stock for which
any person may be granted incentive stock options which first become exercisable in any calendar year may not exceed $100,000 on
the date of grant.
Except when agreed to by
our board of directors or the administrator of the 2005 plan, no stock option may be transferred by an optionee other than by will
or the laws of descent and distribution, and, during the lifetime of an optionee, the option will be exercisable only by the optionee. 
In the event of termination of employment or engagement other than by death or disability, the optionee will have no more than
three months after such termination during which the optionee will be entitled to exercise the option, unless otherwise determined
by our board of directors.  Upon termination of employment or engagement of an optionee by reason of death or permanent and
total disability, the optionee's options remain exercisable for one year to the extent the options were exercisable on the
date of such termination.  No similar limitation applies to non-qualified options.
We must grant options
under the 2005 plan within ten years from the effective date of the 2005 plan.  The effective date of the 2005 plan was January
1, 2005.  Subject to a number of exceptions, holders of incentive stock options granted under the 2005 plan cannot exercise
these options more than ten years from the date of grant.  Options granted under the 2005 plan generally provide for the payment
of the exercise price in cash and may provide for the payment of the exercise price by delivery to us of shares of common stock
already owned by the optionee having a fair market value equal to the exercise price of the options being exercised, or by a combination
of these methods.  Therefore, if it is provided in an optionee's options, the optionee may be able to tender shares
of common stock to purchase additional shares of common stock and may theoretically exercise all of his stock options with no additional
investment other than the purchase of his original shares.
Any unexercised options
that expire or that terminate upon an employee's ceasing to be employed by us become available again for issuance under the
2005 plan.
As of September 27, 2011,
the date on which the Advaxis, Inc. 2011 Omnibus Incentive Plan was approved by our shareholders, no further awards may be made
under the 2005 plan.
2009 Stock Option
Plan
Our board of directors
adopted the 2009 Stock Option Plan effective July 21, 2009, and recommended that it be submitted to our shareholders for their
approval at the next annual meeting.  On April 23, 2010, our board of directors approved and adopted, and on June 1,
2010 our stockholders approved, the amended and restated 2009 Stock Option Plan, which we refer to as the 2009 plan.  An
aggregate of 20,000,000 shares of our common stock (subject to adjustment by the compensation committee) are reserved for issuance
upon the exercise of options granted under the 2009 plan.  As of October 31, 2011, options to purchase 358,101 shares
of our common stock are available for grant under the 2009 plan. However, due to the approval of the Advaxis, Inc. 2011 Omnibus
Incentive Plan by our shareholders, on September 27, 2011, no further awards may be made under the 2009 plan (see Note #7 for
details on the Advaxis Inc. 2011 Omnibus Incentive Plan).
F-
18
The 2009 plan is to be
administered by the compensation committee of our board of directors; provided, however, that except as otherwise expressly provided
in the 2009 plan, our board of directors may exercise any power or authority granted to the compensation committee under the 2009
plan. Subject to the terms of the 2009 plan, the compensation committee is authorized to select eligible persons to receive options,
determine the type, number and other terms and conditions of, and all other matters relating to, options, prescribe option agreements
(which need not be identical for each participant), and the rules and regulations for the administration of the 2009 plan, construe
and interpret the 2009 plan and option agreements, correct defects, supply omissions or reconcile inconsistencies therein, and
make all other decisions and determinations as the compensation committee may deem necessary or advisable for the administration
of the 2009 plan.
The maximum number of shares
of common stock to which options may be granted to any one individual under the 2009 plan is 6,000,000 (subject to adjustment by
the compensation committee).  The shares acquired upon exercise of options granted under the 2009 plan will be authorized
and issued shares of our common stock.  Our shareholders will not have any preemptive rights to purchase or subscribe for
any common stock by reason of the reservation and issuance of common stock under the 2009 plan.  If any option granted under
the 2009 plan should expire or terminate for any reason other than having been exercised in full, the unpurchased shares subject
to that option will again be available for purposes of the 2009 plan.
The persons eligible to
receive awards under the 2009 plan are the officers, directors, employees, consultants and other persons who provide services to
us or any related entity.  An employee on leave of absence may be considered as still in our or a related entity's employ
for purposes of eligibility for participation in the 2009 plan.  All options granted under the 2009 plan must be evidenced
by a written agreement.  The agreement will contain such terms and conditions as the compensation committee shall prescribe,
consistent with the 2009 plan, including, without limitation, the exercise price, term and any restrictions on the exercisability
of the options granted.  For any option granted under the 2009 plan, the exercise price per share of common stock may be any
price determined by the compensation committee; however, the exercise price per share of any incentive stock option may not be
less than the fair market value of the common stock on the date such incentive stock option is granted.
The compensation committee
may permit the exercise price of an option to be paid for in cash, by certified or official bank check or personal check, by money
order, with already owned shares of common stock that have been held by the optionee for at least six (6) months (or such other
shares as we determine will not cause us to recognize for financial accounting purposes a charge for compensation expense), the
withholding of shares of common stock issuable upon exercise of the option, by delivery of a properly executed exercise notice
together with such documentation as shall be required by the compensation committee (or, if applicable, the broker) to effect a
cashless exercise, or a combination of the above.  If paid in whole or in part with shares of already owned common stock,
the value of the shares surrendered is deemed to be their fair market value on the date the option is exercised.
No incentive stock option,
and unless the prior written consent of our compensation committee is obtained (which consent may be withheld for any reason) and
the transaction does not violate the requirements of Rule 16b-3 of the Exchange Act, no non-qualified stock option granted under
the 2009 plan is assignable or transferable, other than by will or by the laws of descent and distribution.  During the lifetime
of an optionee, an option is exercisable only by him or her, or in the case of a non-qualified stock option, by his or her permitted
assignee.
The expiration date of
an option under the 2009 plan will be determined by our compensation committee at the time of grant, but in no event may such an
option be exercisable after 10 years from the date of grant.  An option may be exercised at any time or from time to time
or only after a period of time in installments, as determined by our compensation committee.  Our compensation committee may
in its sole discretion accelerate the date on which any option may be exercised. Each outstanding option granted under the 2009
plan may become immediately fully exercisable in the event of certain transactions, including certain changes in control of us,
certain mergers and reorganizations, and certain dispositions of substantially all our assets.
Unless otherwise provided
in the option agreement, the unexercised portion of any option granted under the 2009 plan shall automatically be terminated (a)
three months after the date on which the optionee's employment is terminated for any reason other than (i) cause (as defined
in the 2009 plan), (ii) mental or physical disability, or (iii) death; (b) immediately upon the termination of the optionee's
employment for cause; (c) one year after the date on which the optionee's employment is terminated by reason of mental or
physical disability; or (d) one year after the date on which the optionee's employment is terminated by reason of optionee's
death, or if later, three months after the date of optionee's death if death occurs during the one year period following
the termination of the optionee's employment by reason of mental or physical disability.
Unless earlier terminated
by our board, the 2009 plan will terminate at the earliest of (a) such time as no shares of common stock remain available for issuance
under the 2009 plan, (b) termination of the 2009 plan by our board, or (c) the tenth anniversary of the effective date of the 2009
plan.  Options outstanding upon expiration of the 2009 plan shall remain in effect until they have been exercised or terminated,
or have expired.
As of September 27, 2011,
the date on which the Advaxis, Inc. 2011 Omnibus Incentive Plan was approved by our shareholders, no further awards may be made
under the 2009 plan.
F-
19
2011 Omnibus Incentive
Plan
Our board of directors
adopted the 2011 Omnibus Incentive Plan on August 22, 2011, and recommended that it be submitted to our shareholders for their
approval at the next annual meeting.  On September 27, 2011, our stockholders approved the 2011 Omnibus Incentive Plan, which
we refer to as the 2011 plan.  An aggregate of 20,000,000 shares of our common stock (subject to adjustment by the compensation
committee) are reserved and available for delivery under the 2011 plan.   As of October 31, 2011, no grants had been
made under the 2011 Omnibus Incentive Plan.
Upon receiving stockholder
approval of the 2011 plan on September 27, 2011, no further awards were permitted to be made under the 2004 plan, the 2005 plan
or the 2011 plan.
During any 12-month period,
no participant in the 2011 plan may be granted (i) stock options or stock appreciation rights with respect to more than 4,000,000
shares of our common stock, or (ii) shares of restricted stock, restricted stock units, performance shares and other stock based-awards
with respect to more than 4,000,000 shares of our common stock.  The maximum amount that may be paid out as performance units
with respect to any 12-month performance period is $2,500,000 (pro-rated for any 12-month performance period that is less than
12 months), and with respect to any performance period that is more than 12 months, $2,000,000 multiplied by the number of full
12 month periods that are in the performance period.
The Committee, as defined
below, is authorized to adjust the limitations described above and is authorized to adjust outstanding awards (including adjustments
to exercise prices of options and other affected terms of awards) in the event that a dividend or other distribution, recapitalization,
forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, share exchange or other similar
corporate transaction or event affects our common stock so that an adjustment is appropriate. The Committee is also authorized
to adjust performance conditions and other terms of awards in response to these kinds of events or in response to changes in applicable
laws, regulations or accounting principles.
The persons eligible to
receive awards under the 2011 plan are the officers, directors, employees, consultants and other persons who provide services to
us on a full-time basis. The foregoing notwithstanding, only our full-time employees, or any of our parent corporations or subsidiary
corporations, shall be eligible for purposes of receiving any incentive stock options.
The 2011 plan is to be
administered by a committee designated by our board of directors consisting of not less than two directors (the "Committee"),
provided, however, that except as otherwise expressly provided in the 2011 plan, our board of directors may exercise any power
or authority granted to the Committee under the 2011 plan. Subject to the terms of the 2011 plan, the Committee is authorized to
select eligible persons to receive awards, determine the type, number and other terms and conditions of, and all other matters
relating to, awards, prescribe award agreements, and the rules and regulations for the administration of the 2011 plan, construe
and interpret the 2011 plan and award agreements, correct defects, supply omissions or reconcile inconsistencies therein, and make
all other decisions and determinations as the Committee may deem necessary or advisable for the administration of the 2011 plan.
The Committee is authorized
to grant stock options, including both incentive stock options and non-qualified stock options, and stock appreciation rights entitling
the participant to receive the amount by which the fair market value of a share of our common stock on the date of exercise exceeds
the grant price of the stock appreciation right. The maximum term of each option or stock appreciation right, the times at which
each option or stock appreciation right will be exercisable, and provisions requiring forfeiture of unexercised options or stock
appreciation rights at or following termination of employment generally are fixed by the Committee, except that no option or stock
appreciation right may have a term exceeding ten years. Methods of exercise and settlement and other terms of the options and stock
appreciation right are determined by the Committee. The Committee, thus, may permit the exercise price of options awarded under
the 2011 plan to be paid in cash, shares, other awards or other property (including loans to participants).
The Committee is authorized
to grant restricted stock and restricted stock units. Restricted stock is a grant of shares of our common stock which may not be
sold or disposed of, and which shall be subject to such risks of forfeiture and other restrictions as the Committee may impose.
An award of restricted stock units confers upon a participant the right to receive shares of our common stock or cash equal to
the fair market value of the specified number of shares of our common stock covered by the restricted stock units at the end of
a specified deferral period, subject to such risks of forfeiture and other restrictions as the Committee may impose. Prior to settlement,
an award of restricted stock units carries no voting or dividend rights or other rights associated with share ownership, although
dividend equivalents may be granted, as discussed below.
The Committee is authorized
to grant dividend equivalents conferring on participants the right to receive, currently or on a deferred basis, cash, shares
of our common stock, other awards or other property equal in value to dividends paid on a specific number of shares of our common
stock or other periodic payments. Dividend equivalents may be granted alone or in connection with another award, may be paid currently
or on a deferred basis and, if deferred, may be deemed to have been reinvested in additional shares of our common stock, awards
or otherwise as specified by the Committee.
F-
20
The Committee is authorized
to grant shares of our common stock as a bonus free of restrictions, or to grant shares of our common stock or other awards in
lieu of our obligations to pay cash under the 2011 plan or other plans or compensatory arrangements, subject to such terms as the
Committee may specify.
The Committee or our board
of directors is authorized to grant awards that are denominated or payable in, valued by reference to, or otherwise based on or
related to shares of our common stock. The Committee determines the terms and conditions of such awards.
The Committee is authorized
to grant performance awards to participants on terms and conditions established by the Committee. The performance criteria to be
achieved during any performance period and the length of the performance period are determined by the Committee upon the grant
of the performance award. Performance awards may be settled by delivery of cash, shares or other property, or any combination thereof,
as determined by the Committee. The Committee may, in its discretion, determine that the amount payable as a performance award
will be reduced from the amount of any potential award.
Awards may be settled in
the form of cash, shares of our common stock, other awards or other property, in the discretion of the Committee. The Committee
may require or permit participants to defer the settlement of all or part of an award in accordance with such terms and conditions
as the Committee may establish, including payment or crediting of interest or dividend equivalents on deferred amounts, and the
crediting of earnings, gains and losses based on deemed investment of deferred amounts in specified investment vehicles. The Committee
may condition any payment relating to an award on the withholding of taxes and may provide that a portion of any shares of our
common stock or other property to be distributed will be withheld (or previously acquired shares of our common stock or other property
be surrendered by the participant) to satisfy withholding and other tax obligations.
The Committee may, in its
discretion, accelerate the exercisability, the lapsing of restrictions or the expiration of deferral or vesting periods of any
award, and such accelerated exercisability, lapse, expiration and if so provided in the award agreement or otherwise determined
by the Committee, vesting shall occur automatically in the case of a "change in control" of the Company, as defined
in the 2011 plan (including the cash settlement of stock appreciation rights which may be exercisable in the event of a change
in control).
Our board of directors
may amend, alter, suspend, discontinue or terminate the 2011 plan or the Committee's authority to grant awards without further
stockholder approval, except that stockholder approval must be obtained for any amendment or alteration if such approval is required
by law or regulation or under the rules of any stock exchange or quotation system on which shares of our common stock are then
listed or quoted. Thus, stockholder approval may not necessarily be required for every amendment to the 2011 plan which might increase
the cost of the 2011 plan or alter the eligibility of persons to receive awards. Stockholder approval will not be deemed to be
required under laws or regulations, such as those relating to incentive stock options, that condition favorable treatment of participants
on such approval, although our board of directors may, in its discretion, seek stockholder approval in any circumstance in which
it deems such approval advisable. Unless earlier terminated by our board of directors, the 2011 plan will terminate at the earliest
of (a) such time as no shares of our common stock remain available for issuance under the 2011 plan, (b) termination of the 2011
plan by our board of directors, or (c) the tenth anniversary of the effective date of the 2011 plan. Awards outstanding upon expiration
of the 2011 plan shall remain in effect until they have been exercised or terminated, or have expired.
A summary of the grants,
cancellations and expirations (none were exercised) of the Company's outstanding options for the periods starting with October
31, 2009 through October 31, 2011 is as follows:
Shares
Weighted
Average
Exercise
Price
Weighted Average
Remaining
Contractual Life In
Years
Aggregate
Intrinsic Value
Outstanding as of October 31, 2009
18,331,591
0.16
6.0
$
306,500
Granted
11,075,000
0.16
9.8
42,500
Exercised
(306,000
)
0.09
8.1
(16,860
)
Cancelled or Expired
(2,633,167
)
0.12
8.6
(104,912
)
Outstanding as of October 31, 2010
26,467,424
0.16
7.4
415,967
Granted
850,000
0.12
9.2
15,200
Cancelled or Expired
-
-
-
-
Outstanding as of October 31, 2011
27,317,424
0.16
8.1
367,417
Vested & Exercisable at October 31, 2011
20,451,266
$
0.16
6.75
$
337,082
F-
21
The fair value
of options granted for the year ended October 31, 2011 amounted to $103,125
As of October 31, 2011,
there was approximately $759,000 of unrecognized compensation cost related to non-vested stock option awards, which is expected
to be recognized over a remaining average vesting period of 2.3 years.
A summary of the status of the Company's nonvested shares as
of October 31, 2009, and changes during the years ended
October 31, 2010 and 2011 are presented below:
Number of
Shares
Weighted
Average
Exercise
Price at
Grant Date
Weighted Average
Remaining
Contractual Term
(in years)
Non-vested shares at October 31, 2009
6,720,417
$
0.10
8.7
Options Granted
10,108,333
$
0.14
2.8
Options Vested
(4,518,333
)
$
0.10
1.0
Non-vested shares at October 31, 2010
12,310,417
$
0.13
2.3
Options Granted
850,000
$
0.12
9.5
Options Vested
(6,294,259)
0.13
8.45
Non-Vested shares at October 31, 2011
6,866,158
.15
9.0
8. COMMITMENTS AND CONTINGENCIES
:
University of Pennsylvania
On May 10, 2010, we
entered into a second amendment to the Penn license agreement pursuant to which we acquired exclusive licenses for an additional
27 patent applications related to our proprietary
Listeria
vaccine technology.   As part of this amendment we
exercised our option for the rights to seven additional patent dockets, including 23 additional patent applications, at an option
exercise fee payable in the form of $35,000 in cash and $70,000 in our common stock (approximately 388,889 shares of our common
stock based on a price of $0.18 per share) and agreed to pay historical patent costs incurred by the University of Pennsylvania
at a cost of approximately $462,000. As of October 31, 2011, the Company owed Penn approximately $249,000 under all licensing agreements.
During the year ended
October 31, 2011, the Company paid approximately $405,000 to Penn under all licensing agreements.
Other
Pursuant to a Clinical
Research Service Agreement, the Company is obligated to pay Pharm–Olam International for service fees related to our Phase
I clinical trial. As of October 31, 2011, the Company has an outstanding balance of $223,620 on this agreement.
On June 19, 2009 we entered
into a Master Agreement and on July 8, 2009 we entered into a Project Agreement with Numoda, a leading clinical trial and logistics
management company, to oversee Phase II clinical activity with ADXS11-001 for the treatment of invasive cervical cancer and CIN. 
Numoda will be responsible globally for integrating oversight and logistical functions with the clinical research organizations,
contract laboratories, academic laboratories and statistical groups involved.  The scope of this agreement covers over three
years and is estimated to cost approximately $12.2 million for both trials. Per the agreement, the Company is permitted to pay
a portion of outstanding charges to Numoda in the form of the Company's common stock and during May 2010, the Company issued
3,500,000 shares of its common stock to an affiliate of Numoda in satisfaction of $350,000 in services rendered by Numoda to the
Company under the Master Agreement. The Company has recorded deferred expenses on the balance sheet for this amount and amortizes
this amount to expense over thelife of the agreement. At October 31, 2011, there was a balance of approximately $1.1 million in
deferred expenses related to the Numoda project.  From inception of these agreements through October 31, 2011, the Company
has paid Numoda approximately $6.3 million.
New Office & Laboratory
Lease
In April 2011, the Company
entered into a Sublease Agreement and relocated the current offices and laboratory to a 9,143 square foot leased facility in Princeton,
NJ approximately 12 miles south of its former location.  The agreement is for a period of approximately twenty months at the
rate of approximately $15,600 per month plus utilities. Utility costs are estimated to be $7,200 per month and are capped at approximately
$10,700 per month. Under the current lease, the Company expects to spend approximately $72,000 through October 31, 2011 and approximately
$288,000 for the fiscal year ended October 31, 2012.  The Company made an initial payment of approximately $54,000 prior to
entering the new facility.   As an inducement to enter into the agreement, the company will receive rent abatement for
a specified number of months through July 31, 2011. The agreement has a termination date of November 29, 2012 and the Company is
in discussions with building owner for lease terms beyond this date.
As a result of the rent
abatement period, the Company recorded differences between actual rent payments and straight-line rent expense to a deferred liability
account.  As of October 31, 2011, this amount was approximately $62,000.
F-
22
Moore Employment Agreement
and Option Agreements.
We are party to an employment agreement with Mr. Moore, dated as of August 21, 2007 (memorializing an
oral agreement dated December 15, 2006), that provides that he will serve as our Chairman of the Board and Chief Executive Officer
for an initial term of two years.  For so long as Mr. Moore is employed by us, Mr. Moore is also entitled to nominate one
additional person to serve on our board of directors.  Following the initial term of employment, the agreement was renewed
for a one year term, and is automatically renewable for additional successive one year terms, subject to our right and Mr. Moore's
right not to renew the agreement upon at least 90 days' written notice prior to the expiration of any one year term.
Under the terms of the
agreement, Mr. Moore was entitled to receive a base salary of $250,000 per year, subject to increase to $350,000 per year, his
current salary, upon our successful raise of at least $4.0 million (which condition was satisfied on November 1, 2007) and subject
to annual review for increases by our board of directors in its sole discretion.  The agreement also provides that Mr. Moore
is entitled to receive family health insurance at no cost to him.  Mr. Moore's employment agreement does not provide
for the payment of a bonus.
In connection with our
hiring of Mr. Moore, we agreed to grant Mr. Moore up to 1,500,000 shares of our common stock, of which 750,000 shares were issuable
on November 1, 2007 upon our successful raise of $4.0 million and 750,000 shares are issuable upon our successful raise of an additional
$6.0 million (which condition was satisfied in January 2010 and the shares were then issued in June 2010).  In addition, on
December 15, 2006, we granted Mr. Moore options to purchase 2,400,000 shares of our common stock.  Each option is exercisable
at $0.143 per share (which was equal to the closing sale price of our common stock on December 15, 2006) and expires on December
15, 2016.  The options vest in 24 equal monthly installments.  On July 21, 2009, we granted Mr. Moore options to purchase
2,500,000 shares of our common stock.  Each option is exercisable at $0.10 per share (which was equal to the closing sale
price of our common stock on July 21, 2009) and expires on July 21, 2019.  One-third of these options vested on the grant
date, and the remaining vest in one third installments on the first and second anniversary of the grant. On October 14, 2010, we
granted Mr. Moore options to purchase 2,000,000 shares of our common stock. Each option is exercisable at $0.15 per share. These
options vest over a three year period beginning one year from the grant date.
We have also agreed
to grant Mr. Moore 1,500,000 shares of our common stock if the price of common stock (adjusted for any splits) is equal to or
greater than $0.40 for 40 consecutive business days.  Pursuant to the terms of his employment agreement, all options will
be awarded and vested upon a merger of the company which is a change of control or a sale of the company while Mr. Moore is employed. 
In addition, if Mr. Moore's employment is terminated by us, Mr. Moore is entitled to receive severance payments equal to
one year's salary at the then current compensation level.
F-
23
Mr. Moore has agreed to
refrain from engaging in certain activities that are competitive with us and our business during his employment and for a period
of 12 months thereafter under certain circumstances.  In addition, Mr. Moore is subject to a non-solicitation provision
for 12 months after termination of his employment.
Rothman Employment Agreement
and Option Agreements.
We previously entered into an employment agreement with Dr. Rothman, Ph.D., dated as of March
7, 2005, that provided that he would serve as our Vice President of Clinical Development for an initial term of one year. 
Dr. Rothman's current salary is $305,000, consisting of $275,000 in cash and $30,000 in stock, payable in our common stock,
issued on a semi-annual basis, based on the average closing stock price for such six month period, with a minimum price of $0.20. 
While the employment agreement has expired and has not been formally renewed in accordance with the agreement, Dr. Rothman remains
employed by us and is currently our Executive V.P. of Clinical and Scientific Operations.
In addition, on March 1,
2005, we granted Dr. Rothman options to purchase 360,000 shares of our common stock.  Each option is exercisable at $0.287
per share (which was equal to the closing sale price of our common stock on March 1, 2005) and expires on March 1, 2015. 
All of these options have vested.  On March 29, 2006, we granted Dr. Rothman options to purchase 150,000 shares of our common
stock.  Each option is exercisable at $0.26 per share (which was equal to the closing sale price of our common stock on March
29, 2006) and expires on March 29, 2016.  One-fourth of these options vested on the first anniversary of the grant date, and
the remaining vest in 12 equal quarterly installments.   On February 15, 2007, we granted Dr. Rothman options to purchase
300,000 shares of our common stock.  Each option is exercisable at $0.165 per share (which was equal to the closing sale price
of our common stock on February 15, 2007) and expires on February 15, 2017.  One-fourth of these options vested on the first
anniversary of the grant date, and the remaining vest in 12 equal quarterly installments.   Pursuant to the terms of the 2005
plan, at least 75% of Dr. Rothman's options will be vested upon a merger of the company which is a change of control or a
sale of the company while Dr. Rothman is employed, unless the administrator of the plan otherwise allows for all options to become
vested.  On July 21, 2009, we granted Mr. Rothman options to purchase 1,750,000 shares of our common stock. Each option is
exercisable at $0.10 per share (which was equal to the closing sale price of our common stock on July 21, 2009) and expires on
July 21, 2019.  One-third of these options vested on the grant date, and the remaining vest, in one third installments on
the first and second anniversary of the grant.  On October 14, 2010, we granted Dr. Rothman options to purchase 2,250,000
shares of our common stock. Each option  is exercisable at $0.15 per share. These options vest over a three year period beginning
one year from the grant date.
Dr. Rothman has agreed
to refrain from engaging in certain activities that are competitive with us and our business during his employment and for a period
of 18 months thereafter under certain circumstances.  In addition, Dr. Rothman is subject to a non-solicitation provision
for 18 months after termination of his employment.
9.    INCOME TAXES:
The Company has a net
operating loss carry forward of approximately $32,485,000 and $20,095,000 at October 31, 2011 and 2010, respectively, available
to offset taxable income through 2030.  Due to change in control provisions, the Company's utilization of these losses
may be limited. The tax effects of loss carry forwards give rise to a deferred tax asset and a related valuation allowance at
October 31, as follows:
2011
2010
Net operating loss carryforwards-federal
$
12,994,244
$
8,038,146
Stock based compensation
1,474,016
1,202,168
Valuation on warrants
(3,241,085
)
-
Others
(613,170
)
-
Less valuation allowance
(10,614,005
)
(9,240,314
)
$
-
$
-
The difference between
income taxes computed at the statutory federal rate of 34% and the provision for income taxes relates to the following:
Year ended
October 31,
2011
Year ended
October 31,
2010
Pre-Tax Book Income (Loss)
34.00
%
34.00
%
Perm Item
-19.61
%
-
Change in Valuation Allowance
-16.93
%
(34
)
Other
2.54
%
-
Total
-
%
-
%
In a letter dated November
13, 2008 from the New Jersey Economic Development Authority we were notified that our application for the New Jersey Technology
Tax Certificate Transfer Program was preliminarily approved. Under the State of New Jersey NOL Transfer Program for small business
we received a net cash amount of $922,020 on December 12, 2008 from the sale of our State Net Operating Losses ("NOL")
through December 31, 2007 of $1,084,729. In January 2010, the company received a net cash amount of $278,978 from the sale of some
of our State Net Operating Losses ("NOL") through December 31, 2008.  In February 2011, the Company received
a net cash amount of $379,742 from the sale of our State Net Operating Losses ("NOL") through the year ending October
31, 2009.  We have received notification from the State of New Jersey that the Company is eligible to sell approximately
$408,000 in Net Operating Losses related to our 2010 fiscal year.
F-
24
We adopted ASC 740, Income Taxes, formerly Financial Interpretation
Number 48, "Accounting for Uncertain Tax Positions" ("FIN 48") on November 1, 2007. ASC 740 clarifies
the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with FASB
Statement No. 109," Accounting for Income Taxes." ASC 740 prescribes a recognition threshold and measurement
of a tax position taken or expected to be taken in a tax return. We did not establish any additional reserves for uncertain tax
liabilities upon adoption of ASC 740. There were no adjustments for uncertain tax positions in the current year.
We will account for interest and penalties related to uncertain
tax positions, if any, as part of our provision for federal and state income taxes.
We do not expect that the amounts of unrecognized benefits
will change significantly within the next 12 months.
We are no longer subject to audit under the statute of limitations
by the Internal Revenue Service and state jurisdictions through 2006.
10.  CAPITALIZATION
On November 12, 2004, Great Expectations
and Associates, Inc. ("Great Expectations") acquired the Company through a share exchange and reorganization (the "Recapitalization"),
pursuant to which the Company became a wholly owned subsidiary of Great Expectations. Great Expectations acquired (i) all of the
issued and outstanding shares of common stock of the Company and the Series A preferred stock of the Company in exchange for an
aggregate of 15,597,723 shares of authorized, but theretofore unissued, shares of common stock, no par value, of Great Expectations;.
Prior to the closing of the Recapitalization, Great Expectations performed a 200-for-1 reverse stock split, thus reducing the
issued and outstanding shares of common stock of Great Expectations from 150,520,000 shares to 752,600 shares. Additionally, 752,600
shares of common stock of Great Expectations were issued to the financial advisor in connection with the Recapitalization. Accordingly,
the transaction is treated as a recapitalization, rather than a business combination. The historical financial statements of Advaxis
are now the historical financial statements of the Company. Historical shareholders' equity (deficiency) of Advaxis has been restated
to reflect the recapitalization, and include the shares received in the transaction.
On November 12, 2004, the Company completed
an initial closing of a private placement offering (the "Private Placement"), whereby it sold an aggregate of $2.925
million
worth of units to accredited investors. Each unit was sold for $25,000 (the "Unit Price") and
consisted of (a) 87,108 shares of common stock and (b) a warrant to purchase, at any time prior to the fifth anniversary following
the date of issuance of the warrant, to purchase 87,108 shares of common stock included at a price equal to $0.40 per share of
common stock (a "Unit"). In consideration of the investment, the Company granted to each investor certain registration
rights and anti-dilution rights. Also, in November 2004, the Company converted approximately $618,000 of aggregate principal promissory
notes and accrued interest outstanding into Units.
On December 8, 2004, the Company completed
a second closing of the Private Placement, whereby it sold an aggregate of $200,000 of Units to accredited investors.
On January 4, 2005, the Company completed
a third and final closing of the Private Placement, whereby it sold an aggregate of $128,000 of Units to accredited investors.
Pursuant to the terms of a investment banking
agreement, dated March 19, 2004, by and between the Company and Sunrise Securities, Corp. (the "Placement Agent"),
the Company issued to the Placement Agent and its designees an aggregate of 2,283,445 shares of common stock and warrants to purchase
up to an aggregate of 2,666,900 shares of common stock. The shares were issued as part consideration for the services of the Placement
Agent, as placement agent for the Company in the Private Placement. In addition, the Company paid the Placement Agent a total
cash fee of $50,530.
On January 12, 2005, the Company completed
a second private placement offering whereby it sold an aggregate of $1,100,000 of units to a single investor. As with the Private
Placement, each unit issued and sold in this subsequent private placement was sold at $25,000 per unit and is comprised of (i)
87,108 shares of common stock, and (ii) a five-year warrant to purchase 87,108 shares of our common stock at an exercise price
of $0.40 per share. Upon the closing of this second private placement offering the Company issued to the investor 3,832,753 shares
of common stock and warrants to purchase up to an aggregate of 3,832,753 shares of common stock.
The aggregate sale from the four private
placements was $4,353,000, which was netted against transaction costs of $329,673 for net proceeds of $4,023,327.
F-
25
Pursuant to a Securities Purchase Agreement
dated February 2, 2006 ($1,500,000 principal amount) and March 8, 2006 ($1,500,000 principal amount) we issued to Cornell Capital
Partners, LP ("Cornell") $3,000,000 principal amount of the Company's Secured Convertible Debentures due February
1, 2009 (the "Debentures") at face amount, and five year Warrants to purchase 4,200,000 shares of Common Stock at
the price of $0.287 per share and five year B Warrants to purchase 300,000 shares of Common Stock at a price of $0.3444 per share.
The Debentures were convertible at a price
equal to the lesser of (i) $0.287 per share ("Fixed Conversion Price"), or (ii) 95% of the lowest volume weighted
average price of the Common Stock on the market on which the shares are listed or traded during the 30 trading days immediately
preceding the date of conversion ("Market Conversion Price"). Interest was payable at maturity at the rate of 6% per
annum in cash or shares of Common Stock valued at the conversion price then in effect.
Cornell agreed that (i) it would not convert
the Debenture or exercise the Warrants if the effect of such conversion or exercise would result in its and its affiliates'
holdings of more than 4.9% of the outstanding shares of Common Stock, (ii) neither it nor its affiliates will maintain a short
position or effect short sales of the Common Stock while the Debentures are outstanding, and (iii) no more than $300,000 principal
amount of the Debenture could be converted at the Market Conversion Price during a calendar month.
On August 24, 2007, we issued and sold
an aggregate of $600,000 principal amount promissory notes bearing interest at a rate of 12% per annum and warrants to purchase
an aggregate of 150,000 shares of our common stock to three investors including Thomas Moore, our Chief Executive Officer. Mr.
Moore invested $400,000 and received warrants for the purchase of 100,000 shares of Common Stock. The promissory note and accrued
but unpaid interest thereon are convertible at the option of the holder into shares of our common stock upon the closing by the
Company of a sale of its equity securities aggregating $3,000,000 or more in gross proceeds to the Company at a conversion rate
which shall be the greater of a price at which such equity securities were sold or the price per share of the last reported trade
of our common stock on the market on which the common stock is then listed, as quoted by Bloomberg LP. At any time prior to conversion,
we have the right to prepay the promissory notes and accrued but unpaid interest thereon. Mr. Moore converted his $400,000 bridge
investment into 2,666,667 shares of common stock and 2,000,000 $0.20 Warrants based on the terms of the Private Placement. He
was paid $7,101 interest in cash.
On October 17, 2007, pursuant to a Securities
Purchase Agreement, we completed a private placement resulting in $7,384,235.10 in gross proceeds, pursuant to which we sold 49,228,334
shares of common stock at a purchase price of $0.15 per share solely to institutional and accredited investors. Each investor
received a five-year warrant to purchase an amount of shares of common stock that equals 75% of the number of shares of common
stock purchased by such investor in the offering.
Concurrent with the closing of the private
placement, the Company sold for $1,996,700 to CAMOFI Master LDC and CAMHZN Master LDC, affiliates of its financial advisor, Centrecourt
Asset Management ("Centrecourt"), an aggregate of (i) 10,000,000 shares of Common Stock, (ii) 10,000,000
warrants exercisable at $0.20 (prior to anti-dilution adjustments) per share, and (iii) 5-year warrants to purchase an additional
3,333,333 shares of Common Stock at a purchase price of $0.001 per share (the "$0.001 Warrants"). The Company and
the two purchasers agreed that the purchasers would be bound by and entitled to the benefits of the Securities Purchase Agreement
as if they had been signatories thereto. The $0.20 (prior to anti-dilution adjustments) Warrants and $0.001 Warrants contain the
same terms, except for the exercise price. Both warrants provide that they may not be exercised if, following the exercise, the
holder will be deemed to be the beneficial owner of more than 9.99% of the Company's outstanding shares of Common Stock.
Pursuant to a consulting agreement dated August 1, 2007 with Centrecourt with respect to the anticipated financing, in which Centrecourt
was engaged to act as the Company's financial advisor, Registrant paid Centrecourt $328,000 in cash and issued 2,483,333
warrants exercisable at $0.20 (prior to anti-dilution adjustments) per share to Centrecourt, which Centrecourt assigned to the
two affiliates.
All of the $0.20 (prior to anti-dilution
adjustments) Warrants and $0.001 Warrants provide for adjustment of their exercise prices upon the occurrence of certain events,
such as payment of a stock dividend, a stock split, a reverse split, a reclassification of shares, or any subsequent equity sale,
rights offering,
pro rata
distribution, or any fundamental transaction such as a merger, sale of all of its assets, tender
offer or exchange offer, or reclassification of its common stock. If at any time after October 17, 2008 there is no effective
registration statement registering, or no current prospectus available for, the resale of the shares underlying the warrants by
the holder of such warrants, then the warrants may also be exercised at such time by means of a "cashless exercise."
In connection with the private placement,
we entered into a registration rights agreement with the purchasers of the securities pursuant to which we agreed to file a registration
statement with the Securities and Exchange Commission with an effectiveness date within 90 days after the final closing of the
offering. The registration statement was declared effective on January 22, 2008.
At the closing of this private placement,
we exercised our right under an agreement dated August 23, 2007 with YA Global Investments, L.P. f/k/a Cornell Capital Partners,
L.P. ("Yorkville"), to redeem the outstanding $1,700,000 principal amount of our Secured Convertible Debentures due
February 1, 2009 owned by Yorkville, and to acquire from Yorkville warrants expiring February 1, 2011 to purchase an aggregate
of 4,500,000 shares of our common stock. We paid an aggregate of (i) $2,289,999 to redeem the debentures at the principal
amount plus a 20% premium and accrued and unpaid interest, and (ii) $600,000 to repurchase the warrants.
F-
26
11.
SHAREHOLDERS' EQUITY
:
Series B Preferred Stock Financing
On July 19, 2010, the Company entered into
a Series B Preferred Stock Purchase Agreement with Optimus (the "Series B Purchase Agreement"), pursuant to which
Optimus agreed to purchase, upon the terms and subject to the conditions set forth therein and described below, up to $7.5 million
of the Company's newly authorized, non-convertible, redeemable Series B preferred stock ("Series B Preferred Stock")
at a price of $10,000 per share.  Under the terms of the Series B Purchase Agreement, subject to the Company's ability
to maintain an effective registration statement for the Warrant Shares (as defined below), the Company may from time to time until
July 19, 2013, present Optimus with a notice to purchase a specified amount of Series B Preferred Stock. Subject to satisfaction
of certain closing conditions, Optimus is obligated to purchase such shares of Series B Preferred Stock on the 10th trading day
after the date of the notice. The Company will determine, in its sole discretion, the timing and amount of Series B Preferred
Stock to be purchased by Optimus, and may sell such shares in multiple tranches. Optimus will not be obligated to purchase the
Series B Preferred Stock upon the Company's notice (i) in the event the average closing sale price of the Company's
common stock during the nine trading days following delivery of such notice falls below 75% of the closing sale price of the Company's
common stock on the trading day prior to the date such notice is delivered to Optimus, or (ii) to the extent such purchase would
result in the Company and its affiliates beneficially owning more than 9.99% of the Company's outstanding common stock. 
The Series B Preferred Stock is only redeemable at the option of the Company as set forth in the Company's Certificate of
Designations of Preferences, Rights and Limitations of Series B Preferred Stock and not otherwise subject to redemption or repurchase
by the Company in any circumstances.
Pursuant to the Series B Purchase Agreement,
on July 19, 2010, the Company issued to an affiliate of Optimus a three-year warrant to purchase up to 40,500,000 shares of the
Company's common stock (the "Warrant Shares"), at an initial exercise price of $0.25 per share, subject to adjustment
as described below.  The warrant consists of and is exercisable in tranches, with a separate tranche being created upon each
delivery of a tranche notice under the Series B Purchase Agreement. On each tranche notice date, that portion of the warrant equal
to 135% of the tranche amount will vest and become exercisable, and such vested portion may be exercised at any time during the
exercise period on or after such tranche notice date. On and after the first tranche notice date and each subsequent tranche notice
date, the exercise price of the warrant will be adjusted to the closing sale price of a share of the Company's common stock
on the applicable tranche notice date. The exercise price of the warrant may be paid (at the option of the affiliate of Optimus)
in cash or by its issuance of a four-year, full-recourse promissory note, bearing interest at 2% per annum, and secured by a specified
portfolio of assets. However, such promissory note is not due or payable at any time that (a) the Company is in default of any
preferred stock purchase agreement for Series B Preferred Stock or any warrant issued pursuant thereto, any loan agreement or
other material agreement or (b) there are any shares of the Series B Preferred Stock issued or outstanding.
On April 4, 2011,
the
Company
and Optimus  entered into an amendment to the Preferred Stock Purchase Agreement
dated July 19, 2010  between the Company and Optimus.  Under the amendment Optimus  remains
obligated, from time to time until July 19, 2013, to purchase up to an additional 284 shares of non-convertible, redeemable
Series B Preferred Stock, $0.001 par value per share (the "
Series B Preferred Stock
") at a purchase
price of $10,000 per share upon notice from the Company to the Investor, subject to the satisfaction of certain conditions
set forth in the Purchase Agreement.
In order to satisfy certain
conditions set forth in the Purchase Agreement that would allow the Company to require the Investor to
purchase the remaining shares of Series B Preferred Stock under the Purchase Agreement, the Amendment
provides that, among other things, the Company will issue to the Holder a three-year warrant (the "
Additional
Warrant
") to purchase up to an additional 25,560,000 shares of the Company's common stock, at an initial
exercise price of $0.15 per share, subject to adjustment as described below.  The Additional Warrant will become
exercisable on the earlier of (i) the date on which a registration statement registering for resale the shares of the
Company's common stock issuable upon exercise of the Additional Warrant (the "
Warrant Shares
")
becomes effective and (ii) the first date on which such Warrant Shares are eligible for resale without limitation under Rule
144 (assuming a cashless exercise of the Additional Warrant).  The Additional Warrant consists of and is exercisable in
tranches, with a separate tranche being created upon each delivery of a tranche notice under the Purchase
Agreement.  On each tranche notice date, that portion of the Additional Warrant equal to 135% of the tranche amount will
vest and become exercisable, and such vested portion may be exercised at any time during the exercise period on or after such
tranche notice date.  On and after the first tranche notice date and each subsequent tranche notice date, the exercise
price of the Additional Warrant will be adjusted to the closing sale price of a share of the Company's common stock on
the applicable tranche notice date.  The exercise price of the Additional Warrant may be paid (at the option of the
Investor) in cash or by the Investor's issuance of a four-year, full-recourse promissory note (each, a "
Promissory
Note
"), bearing interest at 2% per annum, and secured by specified portfolio of assets.  However, no
Promissory Note will be due or payable at any time that (a) the Company is in default of any preferred stock purchase
agreement for Series B Preferred Stock or any warrant issued pursuant thereto, any loan agreement or other material agreement
or (b) there are any shares of the Company's Series B Preferred Stock issued or outstanding.  The Additional
Warrant also provides for cashless exercise in certain circumstances. If a "Funding Default" (as such term is
defined in the Additional Warrant) occurs and the Additional Warrant has not previously been exercised in full, the Company
has the right to demand surrender of the Additional Warrant (or any remaining portion thereof) without compensation, and the
Additional Warrant will automatically be cancelled.
On April 4, 2011, the Company and the Holder
also entered into an Amended and Restated Security Agreement to ensure that any Promissory Note issued upon exercise of the Additional
Warrant will be entitled to the benefits of the security and collateral provisions of the Security Agreement dated as of July
19, 2010.
F-
27
From November 1, 2010, through October
31, 2011 the Company issued and sold 177 shares of non-convertible, redeemable Series B Preferred Stock to Optimus pursuant to
the terms of a Preferred Stock Purchase.  Prior to closing on the Preferred Stock purchase, the company received $300,000
from Optimus in exchange for promissory notes (subsequently repaid at closing).  The Company received gross proceeds of $1.47
million (net proceeds of $1.34 million) from this transaction.
In connection with these transactions,
Optimus exercised 15,752,903 warrants at exercise prices ranging from $.15 to $.155. In addition, on April 4, 2011, under an amendment
to the Preferred Stock Purchase Agreement dated July 19, 2010, the Company issued Optimus a three-year warrant to purchase 25,560,000
shares of the Company's common stock at an initial exercise price of $0.15.  As of October 31, 2011, 25,560,000 warrants
remained outstanding.
As of October 31, 2011, the Company continued
to have 284 shares of its Series B Preferred Stock available for sale to Optimus at a gross purchase price of $10,000.  Under
the terms of the May 2011 Notes, the Company may issue Optimus securities only to the extent the net proceeds of such issuance
are used to repay May 2011 Noteholders.
F-
28
Warrants
Some of our warrants (except the warrants
issued to an affiliate of Optimus) contain "full-ratchet" anti-dilution provisions originally set at $0.20 with a
term of five years.  The Optimus transaction on January 11, 2010 triggered the anti-dilution provisions of the warrant agreements
requiring a reset of both the price of these warrants (from $.20 to $.17) and an increase in amount of warrants.  Subsequently,
the Optimus transaction on September 28, 2010 triggered the anti-dilution provisions of the warrant agreements requiring a reset
of both the price of these warrants (from $0.17 to $0.15) and an increase in the amount of warrants.  Therefore, any future
financial offering or instrument issuance below $0.15 per share of the Company's common stock or warrants will cause further
anti-dilution and/or repricing provisions in approximately 49.4 million of our outstanding warrants.
F-
29
12. Fair Value
The authoritative guidance for fair
value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a
liability (an exit price) in the principal or the most advantageous market for the asset or liability in an orderly
transaction betweenmarket participants on the measurement date. Market participants are buyers and sellers in the principal
market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The guidance
describes a fair value hierarchy based on the levels of inputs, of which the first two are considered observable and the last
unobservable, that may be used to measure fair value which are the following:
·
Level
1 — Quoted prices in active markets for identical assets or liabilities
·
Level
2— Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets
or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable
market data or substantially the full term of the assets or liabilities
·
Level
3 — Unobservable inputs that are supported by little or no market activity and that are significant to the value of the
assets or liabilities
F-
30
In accordance with FASB ASC 820, "Fair
Value Measurements and Disclosures", the following table represents the Company's fair value hierarchy for its financial
liabilities measured at fair value on a recurring basis as of October 31, 2011:
Level 3 — 2011
Fair Value of Embedded Derivative
$
946,046
Common Stock Warrants
$
6,391,071
Total
$
7,337,117
Accordingly, the derivatives were valued
using the Black-Scholes model as described in Note 6.
In accordance with the fair value hierarchy
described above, the following table shows the fair value of the Company's financial instruments that are required to be measured
at fair value as of October 31, 2011 and October 31, 2010:
October 31, 2011
Level 1
Level 2
Level 3
Total
Common stock warrant liability, warrants exercisable at $.15 - $0.1952 from February 2011 through November
    2015
$
-
$
$
6,391,071
$
6,391,071
Embedded derivative liability, convertible at $0.15 from August 2011 through May 2012
$
-
$
$
946,046
$
946,046
October 31, 2010
Level 1
Level 2
Level 3
Total
Common stock warrant liability, warrants exercisable at $.15 - $0.287 from February 2011 through August
    2015
$
$
-
$
13,006,194
$
13,006,194
C Embedded derivative liability, convertible at $0.15 from October 2010 through May 2011
$
-
$
-
$
81,028
$
81,028
As of October 31, 2011, the fair values of the Company's Level
3 financial instruments were $7,337,117. As of October 31, 2010, the fair values of these financial instruments, classified as
Level 3 financial instruments, were $13,087,222.  These financial instruments consist of common stock warrants and embedded
derivatives.
As of October 31, 2011 and October 31, 2010, the Company held
no Level 2 or Level 1 financial instruments.
As of October 31, 2011, the fair value of the Company's Level
3 financial instruments totaled $7,491,422.  The Level 3 financial instruments consist of common stock warrants issued by
the Company between October 2005 and May 2011, which include features requiring liability treatment of the warrants. The fair
value of warrants issued to purchase 91,415,804 shares of the Company's common stock was estimated by the Company using
the Black-Scholes model (BSM Model).  The Company computes valuations, each quarter, using the BSM model for each warrant
to account for the various possibilities that could occur due to changes in the inputs to the BSM model as a result of contractually-obligated
changes (for example, changes in strike price to account for down-round provisions). The Company effectively weights each calculation
based on the likelihood of occurrence to determine the value of the warrant at the reporting date.
There were no transfers of assets or liabilities between level
1, level 2 and level 3 during the twelve months ended October 31, 2011 or 2010.
The following table summarizes the changes in fair value of
the Company's Level 3 financial instruments for the twelve months ended October 31, 2011:  The following table summarizes
the changes in fair value of the Company's Level 3 financial instruments for the twelve months ended October 31, 2010.
Embedded derivative liability
October 31,
2011
October 31,
2010
Beginning balance at October 31, 2010 and 2009
$
81,028
$
1,086,514
Issuance of embedded derivatives associated with convertible notes
3,505,605
522,530
Note Conversions and Payoffs
(683,977
)
(825,682
)
Reclassification of embedded derivative liability to equity
(190,449
)
-
Change in fair value
(1,766,161
)
(702,334)
Ending balance
$
946,046
$
81,028
Common stock warrant liability:
October 31,
2011
October 31,
2010
Beginning balance at October 31, 2010 and 2009
$
13,006,194
$
11,961,734
Issuance of common stock warrants
5,065,326
8,579,900
Exercises and Exchanges of warrants
(3,826,409
)
(7,792,198
)
Reclassification of  common stock warrant liability to equity
101,867
-
Change in fair value
(7,955,907
)
256,758
Ending balance
$
6,391,071
$
13,006,194
F-
31
13. SUBSEQUENT EVENTS
December 2011 Note Financing
On December 29, 2011, we entered
into a Note Purchase Agreement, which we refer to as the December 2011 purchase agreement, with certain accredited investors,
whereby the investors acquired approximately $1.2 million of our convertible promissory notes, which we refer to as the Notes,
for an aggregate purchase price of approximately $1.0 million in a private placement, which we refer to as the December 2011
offering. The Notes were issued with an original issue discount of 15%. Each investor paid $0.85 for each $1.00 of principal amount
of Notes purchased at the closing of the December 2011 offering. The Notes are convertible into shares of our common stock,
at a per share conversion price equal to $0.15. Additionally, each investor received a warrant, which we refer to as the Warrants,
to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable upon
conversion of the Note at an exercise price of $0.15 per share.
The Notes mature on January 9, 2013. We
may redeem the Notes under certain circumstances. The Warrants are exercisable at any time on or before January 9, 2015. The Warrants
may be exercised on a cashless basis under certain circumstances.
To the extent an investor does not elect
to convert its Notes as described above, the principal amount of the Notes not so converted on or prior to the maturity date shall
be payable in cash on the maturity date.
The Notes may be converted by the investors,
at the option of such investor, in whole or in part.  However, except as otherwise provided in the Notes, only 85% of
the initial principal amount of each Note is convertible prior to maturity.  The Notes and Warrants include a limitation
on conversion or exercise, which provides that at no time will an investor be entitled to convert any portion of the Notes or
exercise any of the Warrants, to the extent that after such conversion or exercise, such investor (together with its affiliates)
would beneficially own more than 4.99% of the outstanding shares of our common stock as of such date.
In connection with the December 2011
offering, we intend to enter into a Registration Rights Agreement with the investors.  Pursuant to such agreement, we
agree with the investors to provide certain rights to register under the Securities Act of 1933, as amended, the shares of our
common stock issuable upon any conversion of the Notes and the exercise of the Warrants, and agree to file a registration statement
within 45 days of the closing of the December 2011 offering to register the offering of the shares of our common stock issuable
upon conversion of the Notes and the exercise of the Warrants.
Rodman & Renshaw, LLC, which we refer
to as Rodman, a subsidiary of Rodman & Renshaw Capital Group, Inc. (NASDAQ:RODM) acted as the exclusive placement agent in
connection with the December 2011 offering and received compensation of a cash placement fee equal to 7% of the aggregate
purchase price paid by investors in the December 2011 offering (approximately $73,000) and Warrants to purchase 575,098 shares
of our common stock (approximately 7% of the shares of our common stock issuable upon conversion of the Notes), which warrants
are exercisable at $0.15 per share and shall expire on January 9, 2015.
Junior Subordinated Convertible Promissory Notes
During November and December 2011, the
Company converted approximately $169,000 in principal into 1,126,667 shares of the Company's common stock at an conversion
price of $0.15, in full satisfaction of these junior subordinated convertible promissory notes.
In addition, the Company paid approximately $53,000 in principal
on an outstanding junior subordinated convertible promissory note.  In exchange for extending the remaining principal
on this note, of approximately $300,000, for an additional nine months, the Company agreed to issue this investor approximately
2.3 million additional warrants at an exercise price of $0.15 as well as pay additional interest in the amount of approximately
$53,000.
May 2011 Notes
During November and December 2011, the Company converted approximately
$1.7m in principal into 11,313,727 shares of the Company's common stock at an conversion price of $0.15.
October 2011 Notes
During December 2011 and January 2012, the Company converted
$1.28 million in principal into 8,183,333 shares of the Company's common stock at an conversion price of $0.15.
University of Pennsylvania
On December 12, 2011, we entered into
a third amendment to the Penn license agreement pursuant to which we acquired an exclusive worldwide license agreement for additional
patent applications from the laboratory of Dr. Yvonne Paterson.  One application pertains to the antigen ISG15 from
Penn for use in our
Lm
-LLO based immunotherapies for the treatment of cancer and other diseases.  This intellectual
property resulted from work performed in the laboratory of Dr. Yvonne Paterson that demonstrated ISG15 was an effective immunological
target for the treatment of a number of different cancers in animal models, including ovarian, colon, breast and other cancers.  SG-15
expression is elevated in "triple negative" breast cancer, a disease in which HER2, estrogen and progesterone receptors
are lacking, and thus has no defined therapeutic immune target at the moment.  An
Lm
-LLO vaccine that targets
ISG-15 may prove to be an effective agent in an area where there is a significant unmet medical need.  As part of this
amendment, we exercised our option for the rights to two additional patent dockets at an option exercise fee payable in the form
of $20,000 in cash.
F-
32
ADVAXIS, INC.
(A Development Stage Company)
BALANCE SHEETS
(unaudited)
July 31,
2012
October 31,
2011
ASSETS
Current Assets:
Cash
$
5,288
$
1,096,538
Other Current Asset Receivable
-
477,788
Prepaid expenses
39,926
37,474
Other Current Assets
33,182
2,221
Total Current Assets
78,396
1,614,021
Deferred expenses - clinical
1,014,178
1,380,103
Property, Plant & Equipment (net of accumulated depreciation)
82,660
-
Intangible Assets (net of accumulated amortization)
2,405,934
2,256,852
Deferred Financing Cost
68,188
65,848
Interest Receivable & Other Assets
473,848
323,738
TOTAL ASSETS
$
4,123,204
$
5,640,562
LIABILITIES AND SHAREHOLDERS' DEFICIENCY
Current Liabilities:
Accounts payable and Accrued Expenses
$
6,053,853
$
5,396,594
Deferred Investment Funds
50,000
-
Notes Payable – convertible promissory notes and fair value of embedded derivative
1,085,571
5,091,298
Notes payable –Officer (including interest payable)
395,566
408,069
Notes Payable – other
250,000
-
Interest Payable – other
2,260
-
Total Current Liabilities
7,837,250
10,895,961
Deferred Rent
19,212
62,441
Long-term Convertible Notes
-
570,802
Common Stock Warrant
1,265,985
6,391,071
Total Liabilities
9,122,447
17,920,275
Shareholders' Deficiency:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; Series B Preferred Stock; issued and outstanding 740 at July 31, 2012 and at October 31, 2011.
Common Stock - $0.001 par value; authorized 500,000,000 shares, issued and outstanding 375,135,008 at July 31, 2012 and 250,173,570 at October 31, 2011.
375,135
250,173
Additional Paid-In Capital
50,235,200
33,000,064
Promissory Note Receivable
(9,998,210
)
(9,998,210
)
Deficit accumulated during the development stage
(45,611,368
)
(35,531,740
)
Total Shareholders' Deficiency
(4,999,243
)
(12,279,713
)
TOTAL LIABILITIES  AND SHAREHOLDERS'
    DEFICIENCY
$
4,123,204
$
5,640,562
The accompanying notes are an integral part of these financial
statements.
F-
33
ADVAXIS, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
July 31,
Nine months Ended
July 31,
Period from
March 1, 2002
(Inception) to
July 31,
2012
2011
2012
2011
2012
Revenue
$
-
$
-
$
-
$
-
$
1,863,343
Research & Development Expenses
1,331,415
1,958,518
5,760,158
6,392,919
28,916,898
General & Administrative Expenses
2,251,725
1,638,287
4,297,110
3,581,888
25,476,943
Total Operating expenses
3,583,140
3,596,805
10,057,268
9,974,807
54,393,841
Loss from Operations
3,583,140
(3,596,805
)
(10,057,268
)
(9,974,807
)
(52,530,498
)
Other Income (expense):
Interest expense
(1,045,297
)
(1,769,974
)
(4,241,805
)
(2,721,020
)
(14,691,142
)
Other Income
25,375
(4,004
)
25,715
53,603
273,422
(Loss) on note retirement
(932,421
)
(115,396
)
(2,173,491
)
(109,492
)
(978,646
)
Net changes in fair value of common stock warrant liability and embedded derivative liability
2,430,914
9,127,394
6,020,434
7,134,709
20,423,120
Net (Loss) Income before benefits for income taxes
(3,104,569
)
3,641,215
(10,426,415
)
(5,617,007
)
(47,494,744
)
Income tax benefit
-
-
346,787
379,472
1,927,260
Net Income (Loss)
(3,104,569
)
3,641,215
(10,079,628
)
(5,237,535
)
(45,567,484
)
Dividends attributable to preferred shares
185,000
185,000
555,000
1,353,686
2,137,570
Net Income (Loss) applicable to Common Stock
$
(3,289,569
)
$
3,456,215
(10,634,628
)
$
(6,591,221
)
$
(47,705,054
)
Net Income (Loss) per share, basic
(.01
)
$
.02
(.03
)
(.03
)
Net Income (Loss) per share, diluted
$
(.01
)
$
.01
(.03
)
$
(.03
)
Weighted average number of shares outstanding, basic
346,851,744
228,375,277
298,430,345
212,269,995
Weighted average number of shares outstanding, diluted
346,851,744
300,847,826
298,430,345
212,388,256
The accompanying notes are an integral part of these financial
statements.
F-
34
ADVAXIS, INC.
(a development stage company)
STATEMENT OF SHAREHOLDERS' DEFICIENCY
Period from November 1, 2011 to July
31, 2012
(Unaudited)
Preferred Stock
Common Stock
Deficit
Number of
Stock
Accumulated
Shares of
Outstanding
Amount
Number of shares
of outstanding
Amount
Subscription
Receivable
Additional Paid-
in Capital
During the
Development Stage
Shareholders'
Equity (Deficiency)
Balance at October 31, 2011
740
$
-
$
250,173,570
$
250,173
$
(9,998,210
)
$
33,000,064
$
(35,531,740
)
$
(12,279,713
)
Common Stock Issued
    Upon Exercise of Warrants
2,745,097
2,745
409,019
411,764
Options granted to employees
    and directors
289,725
289,725
Options granted to consultants
10,459
10,459
Common stock issued
    upon conversion of Bridge Notes
1,126,667
1,127
167,873
169,000
Common stock issued
    upon conversion of May 2011 Notes
12,827,060
12,827
2,332,698
2,029,936
Common stock issued
    upon conversion of October 2011 Notes
8,183,333
8,183
1,636,237
1,348,784
Issuance of common stock
    warrants with December 2011 Notes
279,807
279,807
Interest on Optimus
    Notes
50,402
50,402
Common stock issued
    upon partial conversion of long-term convertible promissory notes
3,600,000
3,600
382,237
385,837
Net Loss
(4,365,544
)
(3,754,319
)
Balance at January
    31, 2012
740
$
-
278,655,727
$
278,655
$
(9,998,210
)
$
38,558,521
$
(39,897,284
)
$
(11,058,318
)
Common Stock Issued
    Upon Exchange of Warrants
1,597,112
1,597
221,998
223,595
Options granted to employees
279,045
279,045
Options granted to consultants
8,333
8,333
Common stock issued
    upon conversion of May 2011 Notes
253,333
253
37,745
35,460
Common stock issued
    upon conversion of December 2011 Notes
5,516,666
5,517
972,594
772,697
Interest on Optimus
    Notes
49,306
49,306
Exchange of Bridge Notes
260,706
260,706
Issuance of shares to directors
999,632
999
31,558
32,557
Issuance of shares to
    employees under Employee Stock Purchase Plan
15,862
16
2,146
2,162
Net Loss
(2,609,515
)
(2,401,563
Balance at April
    30, 2012
740
$
-
287,038,332
$
287,037
$
(9,998,210
)
$
40,421,952
$
(42,506,799
)
$
(11,796,020
)
Common Stock Issued
    Upon Exchange of Rodman May 2011 Notes
37,552,901
37,553
4,134,466
4,172,019
Options granted to employees
293,528
293,528
Options granted to consultants
(3,839
)
(3,839
)
Common stock issued
    upon Exchange of October 2011 Notes
12,135,049
12,135
1,486,639
1,498,774
Common stock issued
    upon Exchange of December 2011 Notes
2,504,902
2,505
294,308
296,813
Interest on Optimus
    Notes
50,401
50,401
Common Stock Issued
    Upon Exchange of Bridge Note
583,333
584
81,208
81,792
Issuance of settlement shares
4,000,000
4,000
801,000
805,000
Common Stock issued
    upon conversion of long-term convertible promissory note
4,725,927
4,726
275,478
280,204
Common Stock issued
    to consultants
415,167
416
39,442
39,858
Common Stock issued
    under Numoda Stock Purchase Agreement
15,000,000
15,000
1,365,000
1,380,000
Common Stock issued
    to Socius
11,111,000
11,111
988,880
999,991
Issuance of shares to
    employees under Employee Stock Purchase Plan
68,397
68
6,737
6,805
Net Loss
(3,104,569
)
(3,104,569
)
Balance at July
    31, 2012
740
-
375,135,008
375,135
(9,998,210
)
50,235,200
(45,611,368
)
(4,999,243
)
F-
35
ADVAXIS, INC.
(A Development Stage Company)
STATEMENTS OF CASH
FLOWS
(unaudited)
Nine months Ended
July 31,
Period from
March 1,
2002
(Inception) to
July 31,
2012
2011
2012
OPERATING ACTIVITIES
Net loss
$
(10,079,628
)
$
(5,237,535
)
$
(45,567,484
)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash charges to consultants and employees for options and stock
877,251
619,326
4,677,896
Amortization of deferred financing costs
-
-
260,000
Amortization of discount on convertible promissory notes
1,331,368
455,619
2,487,761
Impairment of intangible assets
-
-
26,087
Non-cash interest expense
2,885,053
2,198,214
11,455,784
(Gain) loss on change in value of warrants and embedded derivative
(6,020,434
)
(7,134,709
)
(20,432,120
)
Warrant Expense
-
71,899
764,210
Employee Stock Purchase Plan expense
9,727
-
9,727
Value of penalty shares issued
-
-
149,276
Depreciation expense
9,184
28,406
204,858
Amortization expense of intangibles
109,859
99,274
704,499
Other Income
-
-
33,478
Loss (Gain) on note retirement
2,173,491
109,492
978,646
Changes in operating assets and liabilities :
Decrease (increase) in prepaid expenses
(2,452
)
(12,352
)
(39,925
)
Decrease in grant receivable
-
244,479
-
Decrease (increase) in other current assets
(30,961
)
(27,221
)
(33,182
)
Increase in other assets
-
(140,222
)
(132,271
)
Decrease (increase) in deferred expenses
365,925
(43,830
)
(506,450
)
Increase in accounts payable and accrued expenses
4,445,333
1,258,911
11,370,590
(Decrease) increase in deferred rent
(43,228
)
61,231
19,212
Increase (decrease) in interest payable
24,759
51,469
(41,104
)
Net cash used in operating activities
(3,944,753
)
(7,397,549
)
(33,610,512
)
INVESTING ACTIVITIES
Purchase of property and equipment
(91,844
)
-
(241,937
)
Cost of intangible assets
(258,940
)
(239,019
)
(3,219,620
)
Net cash used in Investing Activities
(350,784
)
(239,019
)
(3,461,557
)
FINANCING ACTIVITIES
Proceeds from convertible debenture
500,000
875,000
2,495,000
(Increase) in deferred offering expenses
(58,500
)
(23,500
)
(110,500
)
Cash paid for deferred financing costs
-
(25,000
)
(584,493
)
Principal payments on notes payable
(87,941
)
(613,573
)
(2,779,030
)
Proceeds from notes payable
2,388,963
6,701,775
16,340,885
Deferred Investment Funds
50,000
-
50,000
Net proceeds of issuance of Preferred Stock
-
1,342,672
8,610,499
Cancellation of warrants
-
-
(600,000
)
Proceeds from exercise of warrants
411,765
1,085,001
1,666,766
Net proceeds of issuance of common stock
-
-
11,988,230
Net cash provided by Financing Activities
3,204,287
9,342,375
37,077,357
Net increase (decrease) in cash
(1,091,250
)
1,705,807
5,288
Cash at beginning of period
1,096,538
108,381
-
Cash at end of period
$
5,288
$
1,814,188
$
5,288
The accompanying notes are an integral part of these financial
statements.
F-
36
Supplemental Disclosures
of Cash Flow Information
Nine months ended
July 31,
Period from
March 1, 2002
(Inception) to
July 31,
2012
2011
2012
Cash paid for Interest
$
53,027
$
70,372
$
788,017
Supplemental Schedule of Noncash Investing
and Financing Activities
Nine months ended
July 31,
Period from
March 1, 2002
(Inception) to
July 31,
2012
2011
2012
Equipment acquired under notes payable
$
-
$
-
$
45,580
Common stock issued to Founders
$
-
$
-
$
40
Notes payable and accrued interest converted to Preferred Stock
$
-
$
-
$
15,969
Stock dividend on Preferred Stock
$
-
$
-
$
43,884
Accounts Payable from vendors settled in Common Stock
$
3,249,990
$
-
$
3,249,990
Accounts Payable from consultants settled with Common Stock
$
62,275
$
-
$
114,253
Notes payable and embedded derivative liabilities converted to Common Stock
$
9,224,971
$
1,638,673
$
15,060,221
Intangible assets acquired with notes payable
$
-
$
-
$
360,000
Intangible assets acquired with common stock
$
-
$
-
$
70,000
Debt discount in connection with recording the original value of the embedded derivative liability
$
306,568
$
3,622,701
$
6,527,552
Allocation of the original secured convertible debentures to warrants
$
-
$
-
$
214,950
Allocation of the warrants on convertible notes as debt discount
$
571,207
$
778,052
$
3,001,806
Cancellation of Note Receivable in connection with Preferred Stock Redemption
$
-
$
(3,051,000
)
$
(3,051,000
)
Note receivable in connection with exercise of warrants
$
-
$
2,389,500
$
9,998,210
Common stock issued in exchange for warrants
$
134,796
$
-
$
134,796
Warrants Issued in connection with issuance of Common Stock
$
517,797
$
-
$
2,023,347
Warrants Issued in connection with issuance of Preferred Stock
$
-
$
-
$
3,587,625
The accompanying notes are an integral part of these financial
statements.
F-
37
ADVAXIS, INC.
NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION
Nature of Operations
Advaxis Inc. (the "Company")
is a biotechnology company developing the next generation of immunotherapies for cancer and infectious diseases. Our platform technology
is designed to generate a comprehensive immune response by serving as its own adjuvant, directing antigen presentation, increasing
tumor infiltrating killer T-cells, and decreasing Tregs/MDSCs in the tumor. Today, the Company has over fifteen distinct constructs
in various stages of development, directly developed by the Company and through strategic collaborations.
Since the Company's inception in 2002,
it has focused its initial development efforts upon immunotherapies targeting cervical cancer, its predecessor condition, cervical
intraepithelial neoplasia, head and neck cancer, breast cancer, prostate cancer, and other cancers and infectious diseases. Although
no products have been commercialized to date, research and development and investment continue to be placed behind the pipeline
and the advancement of this technology. Pipeline development entails risk and expense. It is anticipated that ongoing operational
costs for the Company will continue to increase significantly due to several ongoing clinical trials in this fiscal year.
Basis of Presentation
The accompanying unaudited interim financial
statements include all adjustments (consisting only of those of a normal recurring nature) necessary for a fair statement of the
results of the interim period. The October 31, 2011 balance sheet is derived from the audited balance sheet included in the Company's
Annual Report on Form 10-K for the fiscal year ended October 31, 2011 (the "Form 10-K'). These interim financial statements
should be read in conjunction with the Company's financial statements and notes for the fiscal year ended October 31, 2011
included in the Form 10-K. The Company believes these financial statements reflect all adjustments and reclassifications that are
necessary for a fair presentation of its financial position and results of operations for the periods presented.
The accompanying financial statements have
been prepared assuming that the Company will continue as a going concern. There is a working capital deficiency, a shareholders'
deficiency and recurring losses from operations that raise substantial doubt about its ability to continue as a going concern.
Please refer to Footnote #14: Subsequent Events for the Company's financing activities that occurred subsequent to July 31,
2012. The financial statements do not include any adjustments to the carrying amount and classification of recorded assets and
liabilities should the Company be unable to continue operations.  Management's plans are to continue to raise additional
funds through the sales of debt or equity securities. Results of operations for the interim periods presented are not necessarily
indicative of results to be expected for the year.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Prior Period Restatements
The Company intends to restate its financial
statements for the three month period ended January 31, 2012 as well as the three and six month periods ended April 30, 2012
in order to correct the losses (which were understated) recognized on conversions of its May, October and December 2011 Notes
into shares of our common stock.
Use of Estimates
The preparation of financial statements
in conformity with generally accepted accounting principles required management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates
and the differences could be material. The most significant estimates impact the following transactions or account balances: stock
compensation, liabilities (including the embedded derivative liability), warrant valuation, impairment of intangibles and projected
operating results.
F-
38
Concentration of Credit Risk
The Company maintains its cash in bank deposit
accounts (checking) that at times exceed federally insured limits.
Intangible Assets
Intangible assets primarily consist of legal
and filing costs associated with obtaining patents and licenses. The license and patent costs capitalized primarily represent the
value assigned to the Company's 20-year exclusive worldwide license agreement with Penn, which are amortized on a straight-line
basis over their remaining useful lives which are estimated to be twenty years from the effective date of Penn Agreement dated
July 1, 2002. The value of the license and patents are based on management's assessment regarding the ultimate recoverability
of the amounts paid and the potential for alternative future uses.
We review our long-lived assets for impairment
whenever events and circumstances indicate that the carrying value of an asset might not be recoverable and its carrying amount
exceeds its fair value, which is based upon estimated undiscounted future cash flows. Net assets are recorded on the balance sheet
for patents and licenses related to ADXS-HPV, ADXS-PSA and ADXS-HER2 and other products that are in development. However, if a
competitor were to gain FDA approval for a treatment before us or if future clinical trials fail to meet the targeted endpoints,
we would likely record an impairment related to these assets. In addition, if an application is rejected or fails to be issued
we would record an impairment of its estimated book value.
Research and Development Expenses
Research and development costs are expensed
as incurred and include but are not limited to clinical trial and related manufacturing costs, payroll and personnel expenses,
lab expenses, facilities and related overhead costs.
Accounting for Stock-Based Compensation
Stock-based compensation is estimated at
the grant date based on the award's fair value as calculated by the Black-Scholes-Merton option-pricing model (hereinafter
referred to as the "BSM model") and is recognized as expense over the requisite service period. The BSM model requires
various assumptions including volatility, forfeiture rates and expected option life. If any of the assumptions used in the BSM
model change significantly, stock-based compensation expense may differ materially in the future from that recorded in the current
period. See Note 10 for information on stock-based compensation expense incurred in the three and nine month periods ending July
31, 2012.
Warrants/Embedded Derivatives
The Company has outstanding Warrants in
conjunction with its convertible promissory notes ("Bridge Notes") and the May 2011, October 2011 December 2011, and
the May 2012 Notes).  The Company has two classifications of warrants: liability or equity. The liability warrants are recorded
at fair value at issuance, using the Black-Scholes valuation model (BSM Model), and will continue to be recorded at fair value
each subsequent balance sheet date. Any change in value between reporting periods will be recorded on the statement of operations
at each reporting date. The liability warrants will remain until such time as they are exercised or expire at which time they will
be adjusted to fair value and reclassified from liabilities to equity. The equity warrants are recorded at their relative fair
values at issuance, using the Relative Fair Value Method.
The Company has convertible features (embedded
derivatives) in its convertible promissory notes . The embedded derivatives are recorded at fair value and classified as liabilities
on the balance sheet. The embedded derivatives will continue to be recorded at fair value each subsequent balance sheet date. Any
change in value between reporting periods will be recorded on the statement of operations at each reporting date. These embedded
derivatives will remain until such time as they are exercised or expire at which time they will be adjusted to fair value and reclassified
from liabilities to equity.
Recent Accounting Pronouncements
Management does not believe that any recently issued, but not
yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.
F-
39
3. NET LOSS PER SHARE
Basic net income or basic net loss per common
share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding
during the periods. Diluted earnings per share give effect to dilutive options, warrants, convertible debt and other potential
common stock outstanding during the period. Therefore, in the case of a net loss the impact of the potential common stock resulting
from warrants, outstanding stock options and convertible debt are not included in the computation of diluted loss per share, as
the effect would be anti-dilutive. In the case of net income the impact of the potential common stock resulting from these instruments
that have intrinsic value are included in the diluted earnings per share.
The table sets forth
the number of potential shares of common stock that have been excluded from diluted net loss per share:
As of July 31 ,
2012
2011
Warrants (includes Optimus warrant of 25,560,000 at July 31, 2012 and
2011 and exchange warrants(see Note 12) of 34,791,156 at July 31, 2012)
114,738,770
96,994
Stock Options
44,807,424
27,317,424
Convertible Debt (using as-if converted method)
11,594,873
-
Total
171,141,067
27,414,418
4. INTANGIBLE ASSETS
The following is a summary of intangible
assets as of the end of the following fiscal periods:
(Unaudited)
July 31,
2012
October 31,
2011
License
$
651,992
$
651,992
Patents
2,376,445
2,117,505
Total intangibles
3,028,437
2,769,497
Accumulated Amortization
(622,503
)
(512,645
)
Intangible Assets
$
2,405,934
$
2,256,852
The expirations of the existing patents
range from 2014 to 2023 but the expirations can be extended if market approval is granted and/or based on existing laws and regulations.
Amortization expense amounted to $37,435 and $34,018 for the three months ended July 31, 2012 and July 31, 2011, respectively.
Amortization expense amounted to $109,858 and $99,274 for the nine months ended July 31, 2012 and July 31, 2011, respectively.
5. ACCOUNTS PAYABLE AND ACCRUED EXPENSES:
The following table represents the major components of accounts
payable and accrued expenses:
(Unaudited)
July 31,
2012
October 31,
2011
Accounts Payable
$
4,947,357
$
4,778,508
Salaries and other compensation
696,645
531,040
Clinical Trial
56,468
-
Vendors
77,512
-
Consultants
32,200
32,200
Financing Costs
140,492
-
Legal
81,231
46,346
Other
21,768
8,500
$
6,053,853
$
5,396,594
F-
40
6. DEFERRED INVESTMENT FUNDS
During the nine months ended July 31, 2012,
the Company received funds in the aggregate amount of $290,000 from four accredited investors, including $50,000 from our chief
executive officer, Thomas A. Moore. During the nine months ended July 31, 2012, $240,000 of these funds were invested into the
Rodman May 2012 Convertible Debt Financing (See Footnote #7). At July 31, 2012, the Company recorded a current liability for Mr.
Moore's funds of $50,000 that had not yet been invested in the next financing.
7. NOTES PAYABLE - CONVERTIBLE PROMISSORY NOTES
Convertible Promissory
Notes
We refer to all Convertible
Promissory Notes as "Bridge Notes".
The Bridge Notes are
convertible into shares of the Company's common stock at a fixed exercise price. For every dollar invested in our Bridge
Notes, each Investor received warrant coverage ranging from approximately 23% to 75%, subject to adjustments upon the occurrence
of certain events as more particularly described below and in the form of Warrant. As of July 31, 2012, substantially all of the
Bridge Warrants have an exercise price of $0.15 per share. The Bridge Notes may be prepaid in whole or in part at the option of
the Company without penalty at any time prior to the Maturity Date. The warrants may be exercised on a cashless basis under certain
circumstances.
During the three months
ended July 31, 2012, the Company entered into an exchange agreement with an accredited investor in which the investor exchanged
a convertible promissory note in the aggregate principal amount of $50,000 for (i) an aggregate of approximately 583,000 shares
of our common stock and (ii) a warrant to purchase up to 20,834 shares of common stock at an exercise price of $0.15 per share.
The warrant expires in October 2015. The Company recorded noncash expense of approximately $24,000 to the loss on note retirement
account resulting from this exchange for the three months ended July 31, 2012.
During the nine months
ended July 31, 2012, the Company entered into an exchange agreement with an accredited investor in which the investor exchanged
a convertible promissory note in the aggregate principal amount of $300,000 for (i) a convertible promissory note in the aggregate
principal amount $352,941 and in substantially the same form as the existing note except with a maturity date of June 30, 2012
and (ii) a warrant to purchase up to 2,352,940 shares of common stock at an exercise price of $0.15 per share. The warrants expire
in February 2015. The Company recorded noncash expense of approximately $247,000 to the loss on note retirement account resulting
from this exchange for the nine months ended July 31, 2012.
During the nine months
ended July 31, 2012, the Company paid approximately $53,000 in principal on its Bridge Notes. In addition, the Company converted
approximately $169,000 of principal on these Bridge Notes into 1,126,667 shares of the Company's common stock at a conversion
price of $0.15 per share. The Company recorded noncash expense of approximately $27,000 to the loss on note retirement account
resulting from these conversions for the nine months ended July 31, 2012.
As of July 31, 2012,
the Company had approximately $536,000 in principal outstanding on its junior subordinated convertible promissory notes with Original
Issue Discount ("OID") amounts ranging from 10% to 15% and with maturity dates ranging from October 19, 2011 to June
30, 2012.
Rodman 2011 Financings
During the months of May, October and December
2011, the Company entered into various Note Purchase agreements with accredited investors including Thomas A. Moore, our Chairman
and Chief Executive Officer, and Mark J. Rosenblum, our Chief Financial Officer. Mr. Rosenblum acquired a note in the principal
amount of approximately $59,000 for an aggregate purchase price of $50,000. Mr. Moore acquired his note in exchange for the cancellation
of $400,000 of outstanding indebtedness owed by us to Mr. Moore. The Company issued $10.6 million of our convertible promissory
notes for an aggregate purchase price of approximately $9.0 million in the private placement. In connection with these financings,
the Company issued 38,784,491warrants to purchase shares of the Company's common stock at a conversion price equal to $0.15
per share.
Effective May 14, 2012,the Company entered
into exchange agreements with certain holders of an aggregate of approximately $4.5 million of the outstanding principal amount
of certain convertible promissory notes of the Company, pursuant to which such holders received an aggregate of approximately 52.2
million shares of Common Stock and warrants to purchase an aggregate of approximately 5.8 million shares of Common Stock in exchange
for surrendering or converting the Existing Notes and surrendering warrants to purchase an aggregate of approximately 31.3 million
shares of Common Stock originally issued in the Prior Offerings.
F-
41
The Exchange Agreements also provides that,
for three months from the date of the Exchange Agreements, if the Company offers, issues, or agrees to issue any of its securities,
other than Exempt Issuances (as defined in the Exchange Agreements), at an effective price per share less than the Base Share Price
(as defined in the Exchange Agreements), then the Company shall issue additional shares of Common Stock to each Existing Investor
in accordance with the formula set forth in the Exchange Agreements.
The Company accounted for the exchange
as an extinguishment of a liability and recorded a noncash expense of approximately $1.5 million to the loss on
note retirement account resulting from this exchange for the three months ended July 31, 2012.
The remaining holders (who did not participate
in the above exchange agreements) of an aggregate of approximately $249,000 in principal related to the convertible promissory
notes entered into Amendment, Consent and Waiver Agreements with our company, pursuant to which such holders agreed to amend the
note purchase agreements between our company and such holders to terminate (i) such holders' right to participate in any
proposed or intended issuance or sale or exchange of our securities, and (ii) the prohibition on our ability to effect, or enter
into an agreement to effect, any issuance of our securities for cash consideration involving a variable rate transaction.
In addition to the exchange discussed above,
during the nine months ended July 31, 2012, the Company converted approximately $4,017,000 into 26,780,392 shares of the Company's
common stock at a conversion price of $0.15.
Rodman 2012 Financings
Effective May 14, 2012, we entered into
a Note Purchase Agreement with certain accredited investors, whereby the investors acquired approximately $953,333 of our convertible
promissory notes for an aggregate purchase price of approximately $715,000 in cash which represented an original issue discount
of 25%. The May 2012 Notes are convertible into shares of our common stock at $0.15 per share. Additionally, each investor received
a warrant to purchase such number of shares of our common stock equal to 50% of such number of shares of our common stock issuable
upon conversion of the May 2012 Notes at an exercise price of $0.15 per share. The Notes and Warrants also provide that on December
1, 2012, solely to the extent the conversion price of the Notes or the exercise price of the Warrants, as applicable, is less than
the "Market Price" (as defined in the Notes or the Warrants, as applicable), such conversion price or exercise price,
as applicable, shall be reduced to such Market Price. The May 2012 Notes mature on May 18, 2013. We may redeem the May 2012 Notes
under certain circumstances. The May 2012 Warrants are exercisable at any time on or before May 18, 2017. The May 2012 Warrants
may be exercised on a cashless basis under certain circumstances and expire on May 18, 2017.
The Company elected to apply the fair-value
option to account for the May 2012 notes and have recorded the May 2012 Notes at a fair value of $454,680 upon issuance. Unrealized
losses on the mark-to-market of the notes which amounted to $18,190 for the period from the date of issuance or May, 14, 2012 through
July 31, 2012 were recognized as a noncash expense.
In addition, as a result of the reset provisions
discussed above, the warrants which have been recorded at a fair value of $291,400 on May 14, 2012 are being reflected as a warrant
liability as of the date of issuance. As of July 31, 2012, the warrant liability amounted to $222,467 which resulted in a noncash
income of approximately $69,000 for the three months ended July 31, 2012.
Rodman & Renshaw, LLC acted as
the exclusive placement agent in connection with the May 2012 offering and received compensation of a cash placement fee
equal to 7% of the aggregate purchase price paid by investors (Rodman raised $400,000 of the total purchase price of
$715,000) in the May 2012 offering amounting to$28,000 and warrants to purchase 355,556 shares of our common stock, which
warrants are exercisable at $0.15 per share and shall expire on May 18, 2017.
F-
42
July 2012 Note
On July 21, 2012, we received $250,000 from
an accredited investor in return for issuing a promissory note in the principal amount of $250,000, which bears interest at 33%
per annum, compounded annually and matures on December 31, 2012. We may not redeem this Note without the written consent of the
investor.
We refer to all convertible promissory notes
with a maturity date less than one year collectively as "Short-term Convertible Promissory Notes."
Short-term Convertible Promissory Notes – Principal Value – Issued
$
18,225,036
Principal payments on Bridge Notes
(2,124,851
)
Short-term Convertible Promissory Note Conversions
(9,890,228
)
May, October and December 2011 Debt for Equity Exchanges
(4,114,176
)
Bridge Note Exchanges
4,712
Original Issue Discount, net of accreted interest
(26,525
)
Fair Value of Attached Warrants at issuance
(5,805,580
)
Fair Value of Embedded Derivatives at issuance
(6,034,500
)
Accreted interest on embedded derivative and warrant liabilities
11,097,689
Adjustments to fair value – May 2012 Notes
(248,142
)
Convertible Notes- as of  July 31, 2012
$
1,083,435
Embedded Derivatives Liability at July 31, 2012
2,136
Notes Payable – convertible promissory notes  and fair value of embedded derivative
$
1,085,571
Long-term Convertible Promissory Notes
On April 28, 2011, Advaxis, Inc. issued
and sold to an accredited investor convertible promissory notes of the Company in the aggregate principal amount of $660,000 to
JMJ Financial for cash. The notes bear interest in the form of a one-time interest charge of 8%. and mature onApril 28, 2014. The
notes are convertible, in whole or in part, into shares of the Company's common stock, at a per share conversion price equal
to 80% of the average of the two lowest trade prices for the Common Stock in the 20 trading days previous to the effective date
of each such conversion, subject to a conversion floor of $0.15.
The Company elected to apply
the fair-value option to account for these notes and have recorded the notes at a fair value of approximately $820,000
upon issuance. Unrealized gains on the mark-to-market of the notes which amounted to approximately $17,000 and $186,000 for
the three and nine months ended July 31, 2012, respectively, were recognized as a noncash income.
In November and December, 2011, the Company
converted $500,000 into 3,600,000 shares of common stock. As a result, the Company recorded a noncash income of approximately $36,000
related to the conversion of these notes to equity.
F-
43
On May 8, 2012, the Company
entered into a Settlement Agreement (the " Settlement Agreement ") with JMJ Financial which provides for (i)
an additional borrowing by the Company of $500,000 from JMJ Financial on the principal amount outstanding under one of the
notes issued by JMJ to the Company in April 2011, (ii) the cancellation of all of the outstanding notes issued by JMJ to
the Company in April 2011, (iii) the cancellation of all of the outstanding notes issued by the Company to JMJ in April
2011, other than the portion of such notes for which JMJ has paid cash to the Company, (iv) a mutual release of any claims
held by the Company or JMJ relating to an outstanding dispute and (v) the issuance by the Company of 4,000,000 newly issued
shares of the Company's common stock (the " Settlement Shares ") to JMJ as consideration for the
cancellation of the notes and the release. As a result of the Settlement Agreement, no further payments will be made by
either the Company or JMJ under the notes issued by each party in April 2011. The Company recorded noncash expense of
approximately $805,000 for the issuance of the Settlement Shares to JMJ under the Settlement Agreement and recognition of a
beneficial conversion feature, resulting from the issuance of shares.
The Company elected to apply the fair-value
option to account for the note and has recorded the note at a fair value of approximately $324,000 upon issuance. Unrealized gains
on the mark-to-market of the note which amounted to $75,000 for the three months ended July 31, 2012 was recognized as a noncash
income.
During the three months ended July 31, 2012,
the Company converted all of the notes outstanding totaling $660,000 into 4,725,927 shares of the Company's common stock.. The
Company recorded noncash income of approximately $250,000 upon conversion.
8. NOTES PAYABLE – OFFICER
On September 22, 2008,
Advaxis entered into an agreement (the "Moore Agreement") with the Company's Chief Executive Officer, Thomas
A. Moore, pursuant to which the Company agreed to sell senior promissory notes to Mr. Moore, from time to time ("the Moore
Notes"). The terms and maturity date of the Moore Notes have been amended from time to time to change maturity dates and
repayment provisions. Currently, under the terms of the amended and restated Moore Notes: (i) the maturity date is the earlier
of (x) the date of consummation of an equity financing by us in an amount of $6.0 million or more and (y) the occurrence of any
event of default as defined in the Moore Notes, (ii) Mr. Moore may elect, at his option, to receive accumulated interest thereon
on or after April 15, 2011, (iii) we will make monthly installment payments of $100,000 on the outstanding principal amount beginning
on June 15, 2011, and (iv) we may retain, at the option of Mr. Moore, $200,000 of the repayment amount for investment in our next
equity financing.
During the nine months ended July
31, 2012, the Company paid Mr. Moore $35,000 in principal.  As of July 31, 2012, the Company was not in default under the
terms of the Moore Agreement.  As of July 31, 2012, the Company owed Mr. Moore approximately $396,000, inclusive of accrued
interest in the amount of approximately $158,000 in the form of a Note Payable – Officer.
F-
44
9.
DERIVATIVE INSTRUMENTS
The table below lists the Company's
derivative instruments as of July 31, 2012:
Description
Principal
Original
Issue
Discount
Warrant
Liability
Embedded
Derivative
Liability
Total Valuation at October 31, 2011
$
8,976,071
$
1,300,347
$
6,391,071
$
946,046
Issuance of December 2011 Notes
1,232,353
258,178
-
306,568
Conversion of Bridge Notes
(169,000
)
-
Conversion of May 2011 Notes
(1,924,060
)
(341,342
)
Conversion of October 2011 Notes
(1,227,500
)
(329,433
)
Partial Note Repayments
(52,941
)
Conversion of Long-term Convertible Promissory Notes
(540,000
)
Exchange of Warrants
59,572
Accreted Interest
(532,559
)
Change in FV
(923,052
)
159,657
Total Valuation at January 31, 2012
$
6,294,923
$
1,025,966
$
5,527,591
$
741,496
Exchange of Bridge Notes
52,941
-
Conversion of May 2011 Notes
(38,000
)
(5,016
)
Conversion of December 2011 Notes
(827,500
)
(160,677
)
Exchange of Warrants
(134,796
)
Accreted Interest
(569,419
)
Change in FV
(2,302,707
)
(438,054
)
Total Valuation at April 30, 2012
$
5,482,364
$
456,547
$
3,090,088
$
137,749
Issuance of May 2012 Notes
953,333
291,400
Debt for Equity Exchange: May and October 2011, December 2011 Notes
(4,473,673
)
(200,632
)
(115,046
)
Debt for Equity Exchange: Bridge Notes
(50,000
)
(4,750
)
July 2012Exchange of Warrants
(407,501
)
JMJ Settlement Agreement
540,000
JMJ Note Conversions
(712,800
)
Accreted Interest
(229,392
)
Change in FV
(1,703,252
)
(20,567
)
Total Valuation at July 31, 2012
$
1,739,224
26,523
1,265,985
2,136
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45
Warrant Liability/Embedded Derivative Liability
Warrant Liability
As of July 31,
2012, the Company had approximately 99.6 million of its total approximately 114.7 million total warrants classified as
liabilities (liability warrants). Of these 99.6 million liability warrants, approximately 64.8 million warrants are
outstanding and 34.8 million warrants are exchange warrants – nonexercisable. The Company utilizes the BSM Model to
calculate the fair value of these warrants at issuance and at each subsequent reporting date. For those warrants with
exercise price reset features (anti-dilution provisions), the Company computes multiple valuations, each quarter, using an
adjusted BSM model, to account for the various possibilities that could occur due to changes in the inputs to the BSM model
as a result of contractually-obligated changes (for example, changes in strike price to account for down-round
provisions). The Company effectively weights each calculation based on the likelihood of occurrence to determine the
value of the warrants at the reporting date. Approximately 47 million of our 99.6 million liability warrants are subject to
anti-dilution provisions. A certain number of liability warrants contain a cash settlement provision in the event of a
fundamental transaction (as defined in the common stock purchase warrant). Any changes in the fair value of the warrant
liability (i.e. - the total fair value of all outstanding liability warrants at the balance sheet date) between reporting
periods will be reported on the statement of operations.
At July 31, 2012, the
fair value of the warrant liability was approximately $1,266,000. For the three months ended July 31, 2012 and July 31, 2011, the
Company reported income of approximately $1.7 million and $6.9 million, respectively, due to changes in the fair value of the warrant
liability. For the nine months ended July 31, 2012 and July 31, 2011, the Company reported income of approximately $4.9 million
and approximately $5.8 million, respectively, due to changes in the fair value of the warrant liability.
Embedded Derivative Liability
The Company has convertible
features (Embedded Derivatives) in its outstanding convertible promissory notes .  The Embedded Derivatives are recorded as
liabilities at issuance.  These Embedded Derivatives are valued using the Black-Scholes Model (BSM Model) and are subject
to revaluation at each reporting date. Any change in fair value between reporting periods will be reported on the statement of
operations.
At July 31, 2012, the
fair value of the Embedded Derivative Liability was approximately $2,140. For the three months ended July 31, 2012 and July 31,
2011, the Company reported income of approximately $28,000 and approximately $2.2 million, respectively, due to changes in the
fair value of the Embedded Derivative Liability partially resulting from debt to equity exchanges during the period. . For the
nine months ended July 31, 2012 and July 31, 2011, the Company recorded income of approximately $307,000 and approximately $1.3
million, respectively, due to changes in the fair value of the Embedded Derivative Liability.
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46
10. ACCOUNTING FOR STOCK BASED COMPENSATION PLANS
The Company records
compensation expense associated with stock options based on the estimated fair value of each option award that was granted using
the Black-Scholes option valuation model.
The table below summarizes compensation
expenses from share-based payment awards:
Three Months Ended
Nine months Ended
July 31,
July 31,
2012
2011
2012
2011
Research & Development
$
128,011
$
95,263
$
397,231
$
265,768
General & Administrative
161,678
104,005
480,020
353,531
Total stock compensation recognized
$
289,689
$
199,268
$
877,251
$
619,299
Total unrecognized estimated compensation
expense related to non-vested stock options granted and outstanding as of July 31, 2012 was approximately $2.25 million which is
expected to be recognized over a weighted-average period of approximately 2.0 years.
No options were exercised over the three
and nine month periods ended July 31, 2012. For the nine month period ended July 31, 2012, the Company granted 17,740,000
options at an exercise price of approximately $0.15. The Company utilized the following assumptions in the Black-Scholes valuation
model to arrive at a fair value of $0.1448 per option granted during the three and nine months ended July 31, 2012:
Exercise Price:
$
0.148
Stock Price:
$
0.148
Days to Maturity:
3,650 days (10-year life for all
options granted
)
Risk-free Rate:
2.10
%
Volatility:
143
%
A summary of changes
in the stock option plan for nine months ended July 31, 2012 is as follows:
Number of
Weighted-Average
Options
Exercise Price
Outstanding at October 31, 2011:
27,317,424
$
0.16
Granted
17,740,000
$
0.15
Exercised
-
—
Expired
-
Outstanding at January 31, 2012
45,057,424
$
0.16
Cancelled
250,000
0.15
Outstanding at April 30, 2012
44,807,424
0.16
Outstanding at July 31, 2012
44,807,424
0.16
Exercisable at July 31, 2012
27,560,653
$
0.16
Not Exercisable at July 31, 2012
17,246,771
$
0.15
2011 Employee Stock Purchase Plan
Our board of directors adopted the Advaxis,
Inc. 2011 Employee Stock Purchase Plan, which we refer to as the ESPP, on August 22, 2011, and our stockholders approved the ESPP
on September 27, 2011. The ESPP allows employees to purchase common stock of the Company at an 85% discount to the market price
on designated exercise dates. Employees were eligible to participate in the ESPP beginning December 30, 2011. 5,000,000 shares
of our common stock are reserved for issuance under the ESPP.
During the three months ended July 31, 2012
approximately $8,535 was withheld from employees, on an after-tax basis, in order to purchase 122,819 shares of our common stock
in August 2012. During the nine months ended July 31, 2012, approximately $18,300 was withheld from employees, on an after-tax
basis, in order to purchase 15,862 shares of our common stock in February 2012, another 68,397 shares of our common stock in May
2012 and another 122,819 shares of our common stock in August 2012.
Subsequent to July 31, at our annual meeting held on August
13, 2012, shareholders ratified & approved an amendment to our 2011 Omnibus Incentive Plan to increase the aggregate number
of shares of common stock authorized for issuance under such plan by 45,000,000 shares.
11. COMMITMENTS AND CONTINGENCIES
University of Pennsylvania
On May 10, 2010, we
entered into a second amendment to the Penn license agreement pursuant to which we acquired exclusive licenses for an additional
27 patent applications related to our proprietary
Listeria
vaccine technology.   As part of this amendment we
exercised our option for the rights to seven additional patent dockets, including 23 additional patent applications, at an option
exercise fee payable in the form of $35,000 in cash and $70,000 in our common stock (approximately 388,889 shares of our common
stock based on a price of $0.18 per share) and agreed to pay historical patent costs incurred by the University of Pennsylvania.
F-
47
On December 12, 2011,
we entered into a third amendment to the Penn license agreement pursuant to which we acquired an exclusive worldwide license agreement
for additional patent applications from the laboratory of Dr. Yvonne Paterson at an option exercise fee of $20,000.
As of July 31, 2012,
the Company owed approximately $507,000 to Penn under all licensing agreements.
Numoda
On June 19, 2009 we entered into a Master
Agreement and on July 8, 2009 we entered into a Project Agreement with Numoda, a leading clinical trial and logistics management
company, to oversee Phase II clinical activity with ADXS11-001 for the treatment of invasive cervical cancer and CIN.  Numoda
will be responsible globally for integrating oversight and logistical functions with the clinical research organizations, contract
laboratories, academic laboratories and statistical groups involved.  The scope of this agreement covers over three years
and is estimated to cost approximately $12.2 million for both trials. Per the agreement, the Company is permitted to pay a portion
of outstanding charges to Numoda in the form of the Company's common stock and during May 2010, the Company issued 3,500,000
shares of its common stock to an affiliate of Numoda in satisfaction of $350,000 in services rendered by Numoda to the Company
under the Master Agreement. The Company has recorded a deferred expense on the balance sheet for this amount and amortizes this
amount to expense over the life of the agreement. As the Company is billed by Numoda on a monthly basis, these costs are capitalized
to deferred expenses. As the clinical trials progress in terms of patient enrollment and time, the Company reduces the deferred
expense balance and recognizes clinical trials expense on the statement of operations. From inception through July 31, 2012, the
Company has paid Numoda approximately $7.4 million.
Numoda -Stock Purchase Agreement
On June 13, 2012, we entered into
a stock purchase agreement with Numoda Corporation pursuant to which we issued to Numoda 15 million shares of our common stock,
which we refer to as the AR Cancellation Shares, at a purchase price per share of $0.15, in exchange for the immediate cancellation
of $2,250,000 of accounts receivables owed by us to Numoda pursuant to the Master Agreement, dated June 19, 2009, between Numoda
and us.. In connection with such issuance, we have also agreed to register the resale by Numoda of the AR Cancellation Shares with
the SEC . The Company recorded noncash income of approximately $869,000 as a result of this stock purchase agreement.
Numoda- Socius Stock Issuance
On July 24, 2012, the
Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida entered an Order Approving Stipulation for
Settlement of Claim, which we refer to as the Order, in the matter titled Socius CG II, Ltd. v. Advaxis, Inc. The Order,
together with the Stipulation for Settlement Claim, which we refer to as the Stipulation, provide for the full and final
settlement of Socius's $2,888,860 claim against the Company ($1.8 million claim from Numoda plus approximately $1 million in
transaction related costs) in connection with past due invoices relating to clinical trial services, which we refer to as the
Claim. Socius purchased approximately $1.8 million of the Claim against us from Numoda Corporation.
Pursuant to the terms of the Order
and the Stipulation, we issued and delivered to Socius an aggregate of 11,111,000 shares of our common stock for one-half of the
Claim, which are subject to adjustment as described in the Stipulation. The Company recorded noncash income of approximately $444,000
related to the issuance of stock to Socius in settlement of one-half of the Claim.
As of July 31, 2012, the Company owed Numoda
approximately $1.7 million, which is recorded in our Accounts Payable at the balance sheet date.
Office & Laboratory Lease
In April 2011, the Company entered into
a Sublease Agreement and relocated the current offices and laboratory to a 9,143 square foot leased facility in Princeton, NJ approximately
12 miles south of its former location.  The agreement is for a period of approximately twenty months at the rate of approximately
$15,600 per month plus utilities. Utility costs are estimated to be $7,200 per month and are capped at approximately $10,700 per
month. Under the current lease, the Company expects to spend approximately $288,000 for the fiscal year ended October 31, 2012. 
As an inducement to enter into the agreement, the company will receive rent abatement for a specified number of months through
July 31, 2011. The agreement has a termination date of November 29, 2012 and the Company is in discussions with building owner
for lease terms beyond this date.
As a result of the rent abatement period,
the Company recorded differences between actual rent payments and straight-line rent expense to a deferred liability account.  As
of July 31, 2012, this amount was approximately $19,200.
Other
Pursuant to a Clinical Research Service Agreement, the
Company is obligated to pay Pharm–Olam International for service fees related to our Phase I clinical trial. As of July 31,
2012, the Company has an outstanding balance of $223,620 on this agreement.
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48
12. SHAREHOLDERS' EQUITY
Series B Preferred Stock Financing
On April 4, 2011, the Company and Optimus entered
into an amendment to the Preferred Stock Purchase Agreement dated July 19, 2010  between the Company and Optimus. 
Under the amendment Optimus remains obligated, from time to time until July 19, 2013, to purchase up to an additional 284
shares of non-convertible, redeemable Series B Preferred Stock, $0.001 par value per share (the "
Series B Preferred Stock
") at a purchase price of $10,000 per share upon notice from the Company to the Investor, subject to the satisfaction of
certain conditions set forth in the Purchase Agreement.
During December 2011, the Company unreserved
for issuance shares related to the Optimus warrants. If exercisable, exercise price means an amount per warrant share equal to
the closing sale price of a share of common stock on the applicable tranche notice date.
For the three and nine months ended July
31, 2012, the Company did not issue and sell any shares of non-convertible, redeemable Series B Preferred Stock to Optimus pursuant
to the terms of a Preferred Stock Purchase.
As of July 31, 2012, the Company continued
to have 284 shares of its Series B Preferred Stock available for sale to Optimus at a gross purchase price of $10,000 per share
in addition to 25,560,000 warrants remaining outstanding. These warrants may vest and become exercisable only if the Company delivers
a tranche notice. During December 2011, the Company unreserved common shares related to these warrants.  In addition, under
the terms of each of the May, October and December 2011 Notes, the Company may issue Optimus securities only to the extent the
net proceeds of such issuance are used to repay May, October and December 2011 Noteholders.
F-
49
Warrants
During the nine months ending July 31, 2012, investors in the Company exercised 2,745,097 warrants at a price of $0.15 per share, resulting
in total proceeds to the Company of approximately $412,000.
2011 Warrant Exchange
In addition, in an
effort to reduce the number of the warrants outstanding from the October 17, 2007 private placement by the Company, the Company
has entered into exchange agreements with certain of the holders of such warrants pursuant to which such holders received shares
of the Company's common stock, par value $0.001 per share (the "
Common Stock
"), and/or warrants to purchase
shares of Common Stock in amounts that were determined in such negotiations.
For the three months
ended January 31, 2012, the Company exchanged October 2007 warrants to purchase 4,791,337 shares of Common Stock for new warrants
to purchase 6,388,449 shares of Common Stock. The new warrants issued pursuant to the exchanges are identical to the October 2007
warrants, except that such warrants do not contain any economic anti-dilution adjustment. The Company recorded noncash expense
of approximately $25,000 to the changes in fair value account resulting from this exchange for the three months ended January 31,
2012. Subsequently, in the three months ended April 30, 2012, the Company exchanged these new warrants, in the amount of 6,388,449
for shares of our common stock in the amount of 1,597,112. The Company recorded noncash income of approximately $54,000 due to
the changes in fair value at the date of exchange and a noncash expense of approximately $89,000 resulting from this exchange of
warrants for shares of our common stock during the six month period ended April 30, 2012.
As of July 31,
2012, the Company had approximately 47  million warrants subject to anti-dilution provisions. Therefore, any future financial
offering or instrument issuance below $0.15 per share of the Company's common stock or warrants will cause further
anti-dilution and/or repricing provisions in these 47  million warrants.
July 2012 Warrant Exchange
On June 8, 2012, Thomas A. Moore,
our Chief Executive Officer, waived our obligation to keep reserved from our authorized and available shares of common stock, such
number of shares of our common stock necessary to effect the exercise or conversion, as applicable, in full, of (i) warrants to
purchase an aggregate of 11,064,611 shares of our common stock and (ii) promissory notes convertible into 800,000 shares of our
common stock. This waiver expired on August 16, 2012, the date that we filed an amendment to our certificate of incorporation with
the Secretary of State of the State of Delaware to effect an increase to our authorized shares of common stock.
On July 5, 2012, in
consideration for the waiver described above, we entered into an exchange agreement with Mr. Moore, with an effective date of June
8, 2012, pursuant to which Mr. Moore surrendered warrants to purchase an aggregate of approximately 11,064,611 shares of our common
stock to us in exchange for receiving warrants to purchase an aggregate of approximately 11,064,611 shares of our common stock
that were not exercisable and for which no shares of our common stock were reserved until we filed an amendment to our certificate
of incorporation with the Secretary of State of the State of Delaware to effect an increase to our authorized shares of common
stock. Mr. Moore also agreed pursuant to the exchange agreement not to convert the promissory notes convertible into 800,000 shares
of our common stock until the Company filed on amendment to its certificate of incorporation with the Secretary of State of the
State of Delaware to effect an increase to its authorized shares of common stock. In addition, the warrants to be issued in the
exchange have an extended expiration date of two years following issuance.
In July 2012, we entered
into exchange agreements with certain additional holders of an additional 23,726,545 warrants to purchase shares of our common
stock. Similar to Mr. Moore, these holders have surrendered warrants to purchase an aggregate of approximately 23,726,545 shares
of our common stock to us in exchange for receiving warrants to purchase the same aggregate amount of our common stock .These warrant
shares were not exercisable and no shares of our common stock were reserved until we filed an amendment to our certificate of incorporation
with the Secretary of State of the State of Delaware to effect an increase to our authorized shares of common stock. In addition,
warrants to be issued in the exchange have an extended expiration date of two years following issuance.
The Company recorded
noncash income of approximately $408,000 as a result of these exchanges.
The Company has included
the above exchanged warrants, aggregating to 34,791,156, in its total warrants of 114,738,770 as of July 31, 2012 . These new warrants
are expected to be issued during 2012.
As of July 31, 2012, there were
outstanding warrants to purchase 79,947,614 shares of our common stock and exchange warrants - nonexercisable to purchase
34,791,156 shares of our common stock with exercise prices ranging from $0.15 to $0.17 per share. Information on the
outstanding warrants is as follows:
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50
Type
Exercise
Price
Amount
Expiration Date
Type of Financing
Common Stock Purchase Warrant (2)
$
0.15
50,660,663
October 2012
2007  Securities Purchase Agreement
Common Stock Purchase Warrant
$
0.15
3,578,949
May 2014
May 2011Convertible Debt Financing
Common Stock Purchase Warrant
$
0.15
1,453,553
October 2014
October 2011 Convertible Debt Financing
Common Stock Purchase Warrant
$
0.15
2,213,234
January 2015
December 2011 Convertible Debt Financing
Common Stock Purchase Warrant
$
0.15
2,777,777
May 2017
May 2012 Convertible Debt Financing
Common Stock Purchase Warrant
$
0.15-$0.17
24,712,208
January 2013 – April 2015
Bridge Notes
Common Stock Purchase Warrant
$
0.15
46,956
N/A
Vendor & Other
Common Stock Purchase Warrant
$
0.15
3,735,430
May 2014 - November 2015
Placement Agent – Convertible Debt Financing
Exchange warrants – nonexercisable
34,791,156
July 2012 Warrant Exchanges
Common Stock Purchase Warrant
TBD (1)
25,560,000
April 2014
Optimus Preferred Stock Agreement (04/04/2011)
Grand Total
114,738,770
(1)
During December 2011, the Company unreserved for issuance shares related to the Optimus warrants. If exercisable, exercise
price means an amount per warrant share equal to the closing sale price of a share of common stock on the applicable tranche notice
date.
At July 31, 2012, the
Company had approximately 15.1 million of its total 114.7 million outstanding warrants classified as equity (equity warrants). At
issuance, equity warrants are recorded at their relative fair values, using the Relative Fair Value Method, in the stockholders
equity section of the balance sheet. Our equity warrants can only be settled through the issuance of shares and are not subject
to anti-dilution provisions.
13.    FAIR VALUE
The authoritative guidance for fair value
measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit
price) in the principal or the most advantageous market for the asset or liability in an orderly transaction between market participants
on the measurement date. Market participants are buyers and sellers in the principal market that are (i) independent, (ii)knowledgeable,
(iii) able to transact, and (iv) willing to transact. The guidance describes a fair value hierarchy based on the levels of inputs,
of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the
following:
·
Level 1 — Quoted prices in active markets for identical assets or liabilities
·
Level 2— Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar
assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable
market data or substantially the full term of the assets or liabilities
·
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the value
of the assets or liabilities
The following table provides the liabilities carried at fair
value measured on a recurring basis as of July 31, 2012:
July 31, 2012
Level 1
Level 2
Level 3
Total
Common stock warrant liability, warrants exercisable at $0.15 - $0.17 from October 2012 through November 2015
$
-
$
$
1,265,985
$
1,265,985
Embedded derivative liability, convertible at $0.15 from May 2012 through January 2013
$
-
$
$
2,136
$
2,136
May 2012 Notes
$
472,840
$
472,870
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51
The following table summarizes the changes in fair value of
the Company's Level 3 financial instruments for the three and nine months ended July 31, 2012 and July 31, 2011.
Embedded derivative liability
July 31,
2012
July 31,
2011
Beginning balance at October 31, 2011 and 2010
$
946,046
$
81,028
Issuance of embedded derivatives associated with convertible notes
306,568
200,569
Note Conversions and Payoffs
(670,755
)
-
Change in fair value
159,657
(51,972
)
Balance at January 31, 2012 and 2011
741,496
229,625
Issuance of embedded derivatives associated with convertible notes
-
697,736
Note Conversions
(165,693
)
-
Note Payoffs
-
(5,904
)
Change in fair value
(438,054
)
918,870
Balance at April 30, 2012 and 2011
$
137,749
$
1,840,327
Issuance of embedded derivatives associated with convertible notes
2,719,345
Debt for Equity Exchanges: May, October and December 2011 Notes
(115,046
)
Note Conversions and Payoffs
-
(739,787
)
Reclassification of JMJ Note
(516,571
)
Change in fair value
(20,567
)
(2,216,715
)
Balance at July 31, 2012 and 2011
2,136
1,086,599
Common stock warrant liability:
July 31,
2012
July 31,
2011
Beginning balance at October 31, 2011 and 2010
$
6,391,071
$
13,006,194
Issuance of common stock warrants
-
600,407
Exercises and Exchanges of warrants
59,572
(1,295,884
)
Change in fair value
(923,052
)
(3,789,889
)
Balance at January 31, 2012 and 2011
$
5,527,591
$
8,520,828
Issuance of common stock warrants
-
3,111,758
Exercises of warrants
-
(639,960
)
Exchanges of warrants
(134,796
)
-
Change in fair value
(2,302,707
)
4,915,676
Balance at April 30, 2012 and 2011
$
3,090,088
$
15,908,302
Issuance of common stock warrants
291,400
36,376
Reclassification of liabilities to equity
-
613,003
Debt for Equity Exchange:  Bridge Notes
(4,750
)
-
July Warrant Exchanges
(407,501
)
-
Exercises and/or Exchanges of warrants
-
(1,714,266
)
Change in fair value
(1,703,252
)
(6,906,747
)
Balance at July 31, 2012 and 2011
1,265,985
7,936,668
May 2012 Notes
July 31, 2012
Issuance of notes
687,000
Issuance of C/S warrants
(291,400
)
Changes in fair value
77,270
$
472,870
In fair valuing the embedded derivative liability, at July 31, 2012 and July 31, 2011, the Company used the following inputs:
in its BSM Model:
7/31/2012
7/31/2011
Exercise Price:
0.15
0.15
Stock Price
0.073
0.1485
Expected term:
92-162 days
92-286 days
Volatility %
79.53%-86%
54.73%-78.46%
Risk Free Rate:
.11%-.15%
.10-.18%
In fair valuing the warrant liability, at July 31, 2012 and July 31, 2011, the Company used the following inputs:
in its BSM Model:
7/31/2012
7/31/2011
Exercise Price:
0.15
0.15
Stock Price
0.073
0.1485
Expected term:
15-1752 days
185-1825 days
Volatility %
65.59%-91.95%
65.68%-174.18%
Risk Free Rate:
.07%-.27%
.10-.18%
For those warrants with exercise price reset features (anti-dilution
provisions), the Company computes multiple valuations, each quarter, using an adjusted BSM model, to account for the various possibilities
that could occur due to changes in the inputs to the BSM model as a result of contractually-obligated changes (for example, changes
in strike price to account for down-round provisions). As of July 31, 2012, the Company utilized different exercise prices of $0.15
and $0.10, weighting the possibility of warrants being exercised at $0.15 between 50% and 70% and warrants being exercised at $0.10
between 50% and 30%.
In fair valuing the embedded conversion feature related to
the May 2012 Notes, at July 31, 2012, the Company used the following inputs in its BSM Model:
Exercise Price:
0.15
Stock Price
0.073
Expected term:
291 days
Volatility %
71.25
%
Risk Free Rate:
0.15
%
F-
52
14. SUBSEQUENT EVENTS
Accredited Investor Note
On August 2, 2012, we issued a one year
convertible promissory note to an accredited investor in the principal amount of $66,667 . for a purchase price of $50,000. The
Note was issued with an original issue discount of 25%. The investor paid $0.75 for each $1.00 of principal amount of the Note
purchased. The Note is convertible into shares of our common stock, at a per share conversion price equal to $0.15, with a reset
provision on December 1, 2012. We may redeem or exchange the Note under certain circumstances.
August 2012 Note- JMJ Financial
On August 27, 2012, we issued a convertible
promissory note in the aggregate principal amount of $100,000 to JMJ Financial, for an aggregate purchase price of $100,000. There
are no periodic payments of interest on the August 2012 Note. The August 2012 Note is initially convertible at a per share conversion
price equal to $0.15. In addition, if the August 2012 Note is converted after November 30, 2012 and the market price of our common
stock is less than $0.16 per share on the date of conversion, then the conversion price shall equal 95% of the average of the three
lowest closing prices in the 15 trading days prior to the date of the conversion. The August 2012 Note matures on August 29, 2013.
To the extent JMJ Financial does not elect to convert the August 2012 Note as described above, the principal amount of the August
2012 Note not so converted on or prior to the maturity date shall be payable in cash on the maturity date.
The August 2012 Note may be converted by
JMJ Financial, at its option, in whole or in part. The August 2012 Note includes a limitation on conversion, which provides that
at no time will JMJ Financial be entitled to convert any portion of the August 2012 Note, to the extent that after such conversion,
JMJ Financial (together with its affiliates) would beneficially own more than 4.99% of the outstanding shares of our common stock
as of such date.
Pursuant to the terms of the August 2012
Note, we agreed to register up to 3,250,000 shares of our common stock which may be issuable upon conversion of the August 2012
Note with the Securities and Exchange Commission.. These shares were registered on August 31, 2012.
JMJ August 2012 Settlement Agreement
On August 27, 2012, we entered into a settlement
agreement with JMJ Financial pursuant to which we issued to JMJ Financial 4,076,923 shares of our common stock for the mutual release
of any claims held by our company or JMJ Financial relating to our failure to file the registration statement related to the May
2012 issuance of 4,000,000 shares of our common stock to JMJ Financial and have the registration statement declared effective by
certain prescribed deadlines. A registration statement filed with the Securities and Exchange Commission on August 31, 2012 included
the above mentioned shares.
Additional Convertible Promissory Notes
During September, 2012 we issued two convertible
promissory notes in the principal amounts of $100,000 and $132,500 to two accredited investors The notes bear interest at the rate
of 8 and 12% respectively and there are re are no periodic payments of interest on the notes. The notes are convertible at a per
share conversion price equal to between 69% and 65% respectively of the market price of our shares in a formula prescribed in the
notes.. The notes mature in 9.and 8 months respectively.
Amendment to Certificate of Incorporation
On August 16, 2012, we filed a certificate
of amendment to our amended and restated certificate of incorporation with the Delaware Secretary of State to increase the total
number of authorized shares of capital stock available for issuance from 505,000,000, consisting of 500,000,000 shares of our common
stock and 5,000,000 shares of "blank check" preferred stock, to 1,005,000,000, consisting of 1,000,000,000 shares of
our common stock and 5,000,000 shares of "blank check" preferred stock. The certificate of amendment became effective
upon filing.
15.
Prior Period
Adjustment
The Company has restated its July 31, 2012 Balance Sheet and
Statement of Operations for the nine months ended July 31, 2012 for the correction of an error made in the first and second fiscal
quarters of 2012. These non-cash errors relate to the interpretation and application of accounting standards in calculating its
loss on conversions of convertible notes with bifurcated embedded derivative liabilities. The correction of these errors amounting
to approximately an additional $819,000 Loss on note retirement, no material effect on Net Loss per share, and no effect on Shareholders'
Deficiency. The Company plans to restate its Form 10-Q for periods ended January 31, 2012 and April 30, 2012.
F-
53
PART II   - INFORMATION
NOT REQUIRED IN PROSPECTUS
Item 13.  Other Expenses of Issuance and Distribution.
The following table sets forth the costs
and expenses other than underwriting discounts and commissions, if any, payable by the registrant relating to the sale of common
stock being registered.  All amounts are estimates except the SEC registration fee.
Printing and engraving expenses
5,000
Legal fees and expenses
30,000
Accounting fees and expenses
5,000
Transfer agent and registrar's fees and expenses
1,000
Miscellaneous expense
750
Total
$
41,750
Item 14.  Indemnification of Directors and Officers.
Delaware General Corporation Law
.  The
registrant is a Delaware corporation. Section 102(b)(7) of the Delaware General Corporation Law (the "DGCL") enables
a corporation to eliminate or limit the personal liability of a director to the corporation or its stockholders for monetary damages
for breach of the director's fiduciary duty, except:
·
for any breach of the director's duty of loyalty to the corporation or its stockholders;
·
for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law;
·
pursuant to Section 174 of the DGCL (providing for liability of directors for unlawful payment of dividends or unlawful
    stock purchases or redemptions); or
·
for any transaction from which the director derived an improper personal benefit.
In accordance with Section 102(b)(7) of
the DGCL, the registrant's certificate of incorporation includes a provision eliminating, to the fullest extent permitted
by the DGCL, the liability of the registrant's directors to the registrant or its stockholders for monetary damages for
breach of fiduciary as director. If the DGCL is subsequently amended to further eliminate or limit the liability of a director,
then a director of the registrant, in addition to the circumstances in which a director is not personally liable as set forth
in provision described in the preceding sentence, will not be liable to the fullest extent permitted by the amended DGCL.
Subsection (a) of Section 145 of the DGCL
provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action
by or in the right of the corporation) by reason of the fact that he is or was a director, officer, employee or agent of the corporation,
or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid
in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding if he acted in good faith
and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to
any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. Section 145 of the DGCL further
provides that a corporation similarly may indemnify any such person serving in any such capacity who was or is a party or is threatened
to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment
in its favor, against expenses (including attorneys' fees) actually and reasonably incurred in connection with the defense
or settlement of such action or suit if he acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the corporation and except that no indemnification shall be made in respect of any claim, issue or matter
as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Delaware
Court of Chancery or such other court in which such action or suit was brought shall determine upon application that, despite
the adjudication of liability but in view of all of the circumstances of the case, such person is fairly and reasonably entitled
to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.
Certificate of Incorporation and Bylaws
.  The
registrant's amended and restated certificate of incorporation contains provisions which provide that the registrant will
indemnify the registrant's directors and officers in each and every situation where, under Section 145 of the DGCL, as amended
from time to time, the registrant is permitted or empowered to make such indemnification, and to the fullest extent permitted
by law. The registrant may, in the sole discretion of its Board of Directors, indemnify any other person who may be indemnified
pursuant to Section 145 of the DGCL to the extent the Board of Directors deems advisable, as permitted by Section 145 of the DGCL.
II-
1
The registrant's bylaws contain provisions
which provide, among other things, that the registrant shall indemnify any officer or director who was or is a party or is threatened
to be made a party to any threatened, pending or completed (i) action, suit or proceeding, whether civil, criminal, administrative
or investigative (other than an action by or in the right of the registrant) by reason of the fact that he is or was a director,
officer, employee or agent of the registrant, or is or was serving at the request of the registrant as a director, officer, employee
or agent of another registrant, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise,
against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred
by him in connection with such action, suit or proceeding if he acted in good faith and in a manner he reasonably believed to
be in or not opposed to the best interests of the registrant, and, with respect to any criminal action or proceeding, had no reasonable
cause to believe his conduct was unlawful and (ii) action or suit by or in the right of the registrant to procure a judgment in
its favor by reason of the fact that he is or was a director, officer, employee or agent of the registrant, or is or was serving
at the request of the registrant as a director, officer, employee or agent of another registrant, partnership, limited liability
company, joint venture, trust, employee benefit plan or other enterprise against expenses (including attorneys' fees) actually
and reasonably incurred by him in connection with the defense or settlement of such action or suit if he acted in good faith and
in a manner he reasonably believed to be in or not opposed to the best interests of the registrant; except that no indemnification
shall be made in respect of any claim, issue or matters as to which such person shall have been adjudged to be liable to the registrant
unless and only to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine
upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is
fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.  Any
indemnification under the provisions in the bylaws (unless ordered by a court) shall be made by the registrant only as authorized
in the specific case upon a determination that indemnification of the director, officer, employee or agent is proper in the circumstances
because he has met the applicable standard of conduct set forth above.  Such determination shall be made (i) by a majority
vote of the directors who were not parties to such action, suit or proceeding even though less than a quorum, or (ii) if there
are no such directors, or, if such directors so direct, by independent legal counsel in a written opinion, or (iii) by the stockholders.
To the extent, however, that a director, officer, employee or agent of the registrant has been successful on the merits or otherwise
in defense of any action, suit or proceeding described above, or in defense of any claim, issue or matter therein, he shall be
indemnified against expenses (including attorneys' fees) actually and reasonably incurred by him in connection therewith,
without the necessity of authorization in the specific case.
The DGCL provides that the indemnification
described above shall not be deemed exclusive of any other indemnification that may be granted by a corporation pursuant to its
by-laws, disinterested directors' vote, stockholders' vote, agreement or otherwise.
Insurance Policies
.  The
DGCL also provides corporations with the power to purchase and maintain insurance on behalf of any person who is or was a director,
officer, employee or agent of the corporation, or is or was serving at the request of the corporation in a similar capacity for
another corporation, partnership, joint venture, trust or other enterprise, against any liability asserted against him or her
in any such capacity, or arising out of his or her status as such, whether or not the corporation would have the power to indemnify
him or her against such liability as described above. The registrant has directors and officer's liability insurance in
an amount not less than $5 million.
Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors, officers, or persons controlling the registrant pursuant
to the foregoing provisions, the registrant has been informed that in the opinion of the Commission such indemnification is against
public policy as expressed in such Securities Act and is therefore unenforceable.
Item 15.  Recent Sales of Unregistered Securities.
During the last three years, the registrant
has issued unregistered securities to the persons, as described below.  None of these transactions involved any underwriters,
underwriting discounts or commissions, except as specified below, or any public offering, and the registrant believes that, except
as set forth below, each transaction was exempt from the registration requirements of the Securities Act of 1933 by virtue of
Section 4(2) thereof and/or Regulation D promulgated thereunder.  All recipients had adequate access, though their relationships
with the registrant, to information about the registrant.
On June 18, 2009, the registrant completed
a private placement with certain accredited investors pursuant to which it issued (i) senior convertible promissory notes in the
aggregate principal face amount of $1,131,353, for an aggregate net purchase price of $961,650 and (ii) senior bridge warrants
to purchase 2,404,125 shares of its common stock at an exercise price of $0.20 per share (subject to adjustment upon the occurrence
of certain events).  In consideration for the agreement of the holders of the senior bridge notes to extend the maturity
date of such notes to periods into February and March 2010, the registrant issued warrants to purchase an additional 1,228,441
shares of common stock. In addition, as a result of the anti-dilution protection provisions in the senior bridge warrants, the
registrant reduced the exercise price of the senior bridge warrants to $0.17 per share and issued warrants to purchase an additional
641,039 shares of common stock at an exercise price of $0.17 per share.
On July 21, 2009, the registrant issued
options to certain of its officers, directors and employees to purchase up to an aggregate of 10,150,000 shares of common stock
pursuant to the registrant's 2009 Stock Option Plan.  The exercise price per share was $0.10.  No consideration
was paid to the registrant by the recipient of the foregoing options for the grant of stock options.
II-
2
On September 24, 2009, the registrant entered
into a preferred stock purchase agreement (the "Optimus purchase agreement") with Optimus Capital Partners, LLC ("Optimus"),
pursuant to which Optimus committed to purchase up to $5.0 million shares of the Series A preferred stock at a price of $10,000
per share of Series A preferred stock, subject to satisfaction of certain closing conditions.  At the time of execution
of the Optimus purchase agreement, the registrant issued to an affiliate of Optimus a three-year warrant to purchase up to 33,750,000
shares of the registrant's common stock, at an initial exercise price of $0.20 per share, subject to adjustment as provided
in the warrant.
On January 5, 2010, the registrant issued
options to one of its executive officers to purchase up to 1,000,000 shares of common stock pursuant to the registrant's
2009 Stock Option Plan.  The exercise price per share was $0.10.  No consideration was paid to the registrant
by the recipient of the foregoing options for the grant of stock options.
On January 11, 2010, the registrant issued
and sold 145 shares of Series A preferred stock to Optimus for an aggregate purchase price of $1.45 million.
On March 29, 2010, the registrant issued
and sold 200 shares of Series A preferred stock to Optimus pursuant to the terms of the Optimus purchase agreement. On April 1,
2010, the registrant issued and sold an additional 16 shares of Series A preferred stock to Optimus pursuant to the terms of the
Optimus purchase agreement. The aggregate purchase price for the 216 shares of Series A preferred stock was $2.16 million.
On April 29, 2010, the registrant agreed
with its Chief Executive Officer, Thomas A. Moore, to make a payment of $200,000 due to Mr. Moore under certain of the registrant's
senior promissory notes held by Mr. Moore in the form of 1,176,471 shares of the registrant's common stock based on a price
of $0.17 per share.
As of April 30, 2010, the registrant agreed
with certain of the holders of its junior unsecured convertible promissory notes to make payments of approximately $2.42 million
aggregate principal amount due to such holders under certain of such notes in the form of 14,237,489 shares of its common stock
based on a price of $0.17 per share.
On May 10, 2010, the registrant entered
into a Stock Purchase Agreement with Numoda Capital Innovations, LLC ("Numoda") pursuant to which the registrant agreed
to issue 3,500,000 shares of its common stock to Numoda, at a price per share of $0.17, in satisfaction of $595,000 of services
rendered to the registrant by Numoda Corporation.  The registrant has agreed to register such shares of common stock
within 120 days of May 10, 2010.
On May 10, 2010, the registrant and the
University of Pennsylvania ("Penn") entered into a Second Amendment Agreement to their 20-year exclusive worldwide
license agreement. As part of this amendment the registrant exercised its option for the rights to seven additional patent dockets
at an option exercise fee payable in the form of $35,000 in cash and $70,000 in shares of common stock (approximately 388,889
shares of our common stock based on a price of $0.18 per share).
On May 13, 2010, the registrant issued
and sold 139 shares of Series A preferred stock to Optimus pursuant to the terms of the Optimus purchase agreement.  The
aggregate purchase price for the shares of Series A preferred stock was $1.39 million.  In connection with such issuance,
the registrant issued an additional three-year warrant to an affiliate of Optimus to purchase up to 2,818,000 shares of common
stock at an exercise price of $0.18 per share, subject to customary anti-dilution adjustments.
As of April 30, 2010, the registrant issued
in private placements to certain accredited investors (i) junior bridge notes in the aggregate principal face amount of $3,343,249,
for an aggregate net purchase price of $2,840,000 and (ii) junior bridge warrants to purchase 5,743,750 shares of our common stock
at an exercise price of $0.20 per share (prior to giving effect to anti-dilution adjustments which have subsequently reduced the
exercise price to $0.17 per share), subject to adjustments upon the occurrence of certain events.   As a result
of the anti-dilution protection provisions in the junior bridge warrant, the registrant reduced the exercise price of the junior
bridge warrants to $0.17 per share (subject to further adjustment upon the occurrence of certain events) and issued warrants to
purchase an additional 1,013,603 shares of common stock at an exercise price of $0.17 per share (subject to adjustment upon the
occurrence of certain events).
On June 29, 2010, the registrant issued
750,000 shares of its common stock to its chief executive officer in satisfaction of certain conditions set forth in his employment
agreement.
On July 19, 2010, the registrant entered
into a preferred stock purchase agreement with Optimus, pursuant to which Optimus committed to purchase up to $7.5 million shares
of the Series B preferred stock at a price of $10,000 per share of Series B preferred stock, subject to satisfaction of certain
closing conditions, of which $2.84 million of Series B preferred stock remains available for purchase.  At the time
of the satisfaction of the conditions necessary to effect the commitment closing under the preferred stock purchase agreement,
the registrant issued to an affiliate of Optimus a three-year warrant to purchase up to 40,500,000 shares of the registrant's
common stock, at an initial exercise price of $0.25 per share, subject to adjustment as provided in the warrant. The warrant will
become exercisable on the earlier of (i) the date on which this registration statement becomes effective and (ii) the first date
on which the shares of common stock underlying the warrant are eligible for resale without limitation under Rule 144 (assuming
a cashless exercise of the warrant).
On July 19, 2010, the registrant issued
500 shares of Series B preferred stock to Optimus in exchange for 500 shares of Series A preferred stock.  Such transaction
was exempt from the registration requirements of the Securities Act of 1933 by virtue of Section 3(a)(9) thereof.
II-
3
On August 13, 2010, the registrant issued
and sold 124 shares of Series B preferred stock to Optimus for an aggregate purchase price of $1.24 million.
On September 28, 2010, the registrant issued
and sold 165 shares of Series B preferred stock to Optimus for an aggregate purchase price of $1.65 million.
On October 14, 2010, the registrant issued
options to certain of its officers, directors and employees to purchase up to an aggregate of 6,750,000 shares of common stock
pursuant to the registrant's 2009 Stock Option Plan. The exercise price per share was $0.15. No consideration was paid to
the registrant by the recipient of the foregoing options for the grant of stock options.
In November 2010, the registrant issued
in private placements to certain accredited investors convertible promissory notes of the Company in the aggregate principal face
amount of $931,579, for an aggregate net purchase price of $835,000.  In connection with the purchase of these notes,
the registrant issued to such investors warrants to purchase an aggregate of 3,087,500 shares of its common stock, each at an
exercise price of $0.17 per share, subject to adjustments upon the occurrence of certain events.
On November 15, 2010, the registrant issued
and sold 61 shares of Series B preferred stock to Optimus for an aggregate purchase price of $610,000.
On December 30, 2010, the registrant issued
and sold 72 shares of Series B preferred stock to Optimus for an aggregate purchase price of $720,000.
In January and February 2011, the
registrant issued in private placements to certain accredited investors, (i) junior unsecured convertible promissory notes in
the aggregate principal face amount of $452,941, for an aggregate net purchase price of $395,000 and (ii) warrants to purchase
an aggregate of 1,642,500 shares of its common stock, each at an exercise price of $0.15 per share, subject to adjustments upon
the occurrence of certain events.
From February 1, 2011 through March 15,
2011, the registrant issued in private placements to certain accredited investors (i) junior unsecured convertible promissory
notes in the aggregate principal face amount of $246,000, for an aggregate net purchase price of $225,000 and (ii) warrants to
purchase 487,500 shares of our common stock at an exercise price of $0.17 per share, subject to adjustments upon the occurrence
of certain events.
On March 14, 2011, the registrant issued
and sold 44 shares of Series B preferred stock to Optimus for an aggregate purchase price of $440,000.
On April 28, 2011, the registrant issued
and sold to JMJ Financial, an accredited investor, an aggregate of $1,300,000 of its convertible promissory notes in return for
the payment in cash of $580,000 and a secured and collateralized promissory note issued by JMJ Financial to the registrant in
the principal amount of $800,000.
On May 12, 2011, the registrant issued
in a private placement to certain accredited investors (i) convertible promissory notes in the aggregate principal face amount
of $7,077,936, for an aggregate purchase price of $6,016,250 and (ii) warrants to purchase an aggregate of 23,593,122 shares of
its common stock, each at an exercise price of $0.15 per share.  Also on May 12, 2011, the registrant issued warrants
to purchase an aggregate of 1,887,448 shares of its common stock to Rodman & Renshaw, LLC as partial compensation for its
services in connection with the offering to the investors.
From June 2011 through November 2011, the
registrant has entered into exchange agreements with certain of the holders of the warrants outstanding from its October 17, 2007
private placement , including its Chief Executive Officer, Thomas A. Moore, pursuant to which such holders received shares of
the registrant's common stock and/or warrants to purchase shares of the registrant's common stock in amounts that
were determined in such negotiations. As of November 5, 2012, the registrant has exchanged October 2007 warrants to purchase
39,690,911 shares of its common stock in return for 7,437,857 shares of its common stock and new warrants to purchase 21,040,303
shares of its common stock. The new warrants issued pursuant to the exchanges are substantially identical to the October 2007
warrants, except that such warrants do not contain any economic anti-dilution adjustment rights.
On October 31, 2011, the registrant issued
in a private placement to certain accredited investors (i) convertible promissory notes in the aggregate principal face amount
of $2,326,471, for an aggregate purchase price of $1,977,500 and (ii) warrants to purchase an aggregate of 8,620,977 shares of
its common stock, each at an exercise price of $0.15 per share.  The convertible promissory notes purchased in this
offering were paid for in cash or, with respect to the convertible promissory notes acquired by Thomas A. Moore, the registrant's
Chairman and Chief Executive Officer, in exchange for the cancellation of $400,000.00 of outstanding indebtedness owed by the
registrant. Also on October 31, 2011, the registrant issued warrants to purchase an aggregate of 866,078 shares of its common
stock to Rodman & Renshaw, LLC as partial compensation for its services in connection with the offering to the investors.
II-
4
On January 9, 2012, the registrant issued
in a private placement to certain accredited investors (i) convertible promissory notes in the aggregate principal face amount
of $ $1,232,353, for an aggregate purchase price of $1,047,500 and (ii) warrants to purchase an aggregate of 4,107,842 shares
of its common stock, each at an exercise price of $0.15 per share.  Also on January 9, 2012, the registrant issued warrants
to purchase an aggregate of 575,098 shares of its common stock to Rodman & Renshaw, LLC as partial compensation for its services
in connection with the offering to the investors.
On May 8, 2012, the registrant entered
into a settlement agreement with JMJ Financial, pursuant to which the registrant agreed to issue
4,000,000
newly issued
shares of its common stock to JMJ Financial as consideration for the cancellation
of certain notes and a release.
Effective May 14, 2012, the registrant
entered into exchange agreements with certain holders of an aggregate of approximately $4.5 million of outstanding principal amount
of convertible promissory notes, which we refer to as the existing notes, originally issued either on May 12, 2011, October 31,
2011 or January 9, 2012, pursuant to which such holders received (i) an aggregate of approximately 52.2 million shares of registrant's
common stock, and (ii) warrants to purchase an aggregate of approximately 5.8 million shares of registrant's common stock
in exchange for (i) surrendering or converting the existing notes and surrendering warrants to purchase an aggregate of approximately
31.3 million shares of the registrant's common stock originally issued in the prior offerings, and (ii) amending the note
purchase agreements between the Company and the holders of the existing notes, dated as of May 9, 2011, October 28, 2011 or December
29, 2011.
On May 18, 2012, the registrant
issued in a private placement to certain accredited investors (i) convertible promissory notes in the aggregate principal
face amount of $953,333, for an aggregate purchase price of $715,000 at a conversion price of $0.03146 per share as of
November 5, 2012 and (ii) warrants to purchase an aggregate of 3,533,333 shares of its common stock at an exercise price of
$0.15 per share. The convertible promissory notes purchased in this offering were paid for in cash. Also on May 18, 2012, the
registrant issued warrants to purchase an aggregate of 231,112 shares of its common stock to Rodman & Renshaw, LLC and
124.444 were issued to certain employees of Rodman & Renshaw, LLC as partial compensation for its services in
connection with the offering to the investors.
On June 13, 2012, the registrant entered
into a stock purchase agreement with Numoda Corporation ("Numoda"), pursuant to which the registrant agreed to issue
to Numoda 15 million shares of its common stock at a purchase price per share of $0.15, in exchange for the immediate cancellation
of $2,250,000 of accounts receivables owed by the registrant to Numoda pursuant to the Master Agreement, dated June 19, 2009,
between Numoda and the registrant.
On July 6, 9, 10, 12, 13, 19, 20 and
23, 2012, the registrant entered into exchange agreements with certain holders of warrants, including Mr. Moore on July 5,
pursuant to which holders surrendered warrants to purchase an aggregate of approximately 34,791,156 shares of the
registrant's common stock to the registrant in exchange for receiving warrants to purchase an aggregate of
approximately 34,791,156 shares of the registrant's common stock that were not exercisable and for which no shares of
the registrant's common stock were reserved until August 16, 2012, when the registrant filed an amendment to
its certificate of incorporation with the Secretary of State of the State of Delaware to effect an increase to its
authorized shares of common stock. In addition, certain of the warrants received in the exchange have an extended expiration
date which is two years following the date the registrant obtained stockholder approval to increase its authorized shares of
common stock and filed an amendment to its certificate of incorporation.
On July 24, 2012, the Circuit Court of
the 11th Judicial Circuit in and for Miami-Dade County, Florida entered an Order Approving Stipulation for Settlement of Claim
(the "Order"), in the matter titled Socius CG II, Ltd. v. Advaxis, Inc. The Order, together with the Stipulation for
Settlement Claim (the "Stipulation"), provide for the full and final settlement of Socius's $2,888,860 claim
against the registrant in connection with past due invoices relating to clinical trial services (the "Claim"). Socius
purchased the Claim against the registrant from Numoda Corporation. Pursuant to the terms of the Order and the Stipulation, the
registrant issued and delivered to Socius 11,111,000 shares of the registrant's common stock, par value $0.001 per share,
for one-half of the Claim and will issue and deliver a number of shares of common stock for the remaining half of the Claim on
the twenty-first trading day following the issuance of the 11,111,000 shares, subject to adjustment.
On August 2, 2012, the
registrant issued and sold to Dr. James Patton, a member of its board of directors, a convertible promissory note in the
principal face amount of $66,667 for a purchase price of $50,000 and warrants to purchase such number of shares of the
registrant's common stock equal to 50% of such number of shares of its common stock issuable upon conversion of the
convertible promissory note at an exercise price of $0.15 per share.
On August 27, 2012, the registrant entered
into a settlement agreement with JMJ Financial, pursuant to which the registrant agreed to issue 4,076,923 shares of its common
stock to JMJ Financial for the mutual release of any claims held by the registrant or JMJ Financial relating to the registrant's
failure to file the registration statement related to the May 2012 issuance of 4,000,000 shares of the registrant's common
stock to JMJ Financial and have the registration statement declared effective by certain prescribed deadlines.
On August 27, 2012, the registrant issued
and sold to JMJ Financial a convertible promissory note in the aggregate principal face amount of $100,000, for an aggregate purchase
price of $100,000.
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5
On September 11, 2012, the registrant issued
and sold to Asher Enterprises, Inc. ("Asher") a convertible promissory note in the aggregate principal face amount
of $103,500, for an aggregate purchase price of $100,000.
On September 19, 2012, the registrant issued
and sold to Hanover Holdings I, LLC, a New York limited liability company ("Hanover"), a convertible promissory note
in the aggregate principal face amount of $132,500, for an aggregate purchase price of $132,500.
On September
25, 2012, the registrant issued and sold to its affiliate Dr. Yvonne Paterson a convertible promissory note in the principal face
amount of $100,000 for a purchase price of $100,000
and warrants to purchase such number of shares of the registrant's
common stock equal to 50% of such number of shares of its common stock issuable upon conversion of the convertible promissory note
at an exercise price equal to the conversion price then in effect.
On September
27, 2012, the registrant issued and sold to its employee Christine French a convertible promissory note in the principal face amount
of $25,000 for a purchase price of $25,000
and warrants to purchase such number of shares of the registrant's common
stock equal to 50% of such number of shares of its common stock issuable upon conversion of the convertible promissory note at
an exercise price equal to the conversion price then in effect.
On October 19, 2012, the registrant issued
and sold to Hanover a convertible promissory note in the aggregate principal face amount of $132,500, for an aggregate purchase
price of $132,500.
In October 2012, the registrant delivered
two convertible notes to Magna Group, LLC ("Magna") in an aggregate principal amount of $740,598.74. On October 25,
2012, the convertible note in the aggregate principal amount of $617,722.92 previously delivered to Magna was exchanged for a new
convertible note in the aggregate principal amount of $400,075.77, and the remaining convertible note in the aggregate principal
amount of $122,875.82 previously delivered to Magna was returned to the registrant and canceled.
On October 26, 2012, the registrant entered
into common stock purchase agreement (the "Hanover Purchase Agreement") with Hanover, pursuant to which Hanover committed
to purchase up to $10.0 million shares of the registrant's common stock, subject to certain customary conditions, over the
24-month term. In connection with the execution and delivery of the Hanover Purchase Agreement, the registrant issued to Hanover
3,500,000 shares of its common stock and agreed to issue up to 1,800,000 additional shares of its common stock during any full
calendar quarter during the term of the Hanover Purchase Agreement, if no shares of common stock were purchased or sold because
the registrant did not deliver a notice electing to effect such issuance to Hanover.
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6
Item 16.  Exhibits and Financial Statement Schedules.
(a)
Exhibits.
The following
exhibits are included herein or incorporated herein by reference.
Exhibit
Number
Description of Exhibit
2.1
Agreement Plan and Merger of Advaxis, Inc. (a Colorado corporation) and Advaxis, Inc. (a Delaware corporation).  Incorporated by reference to Annex B to DEF 14A Proxy Statement filed with the SEC on May 15, 2006.
3.1
Amended and Restated Certificate of Incorporation.  Incorporated by reference to Annex C to DEF 14A Proxy Statement filed with the SEC on May 15, 2006.
3.2
Amended and Restated Bylaws.  Incorporated by reference to Exhibit 10.4 to Quarterly Report on Form 10-QSB filed with the SEC on September 13, 2006.
3.3
Certificate of Amendment to Amended and Restated Certificate of Incorporation filed with the Delaware Secretary of State on August 16, 2012. Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed with the SEC on August 17, 2012.
4.1
Form of common stock certificate.  Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on October 23, 2007.
4.2
Certificate of Designations of Preferences, Rights and Limitations of Series A Preferred Stock of the registrant, dated September 24, 2009. Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on September 25, 2009.
4.3
Certificate of Designations of Preferences, Rights and Limitations of Series B Preferred Stock of the registrant, dated July 19, 2010. Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on July 20, 2010.
4.4
Form of warrant issued in the August 2007 financing.  Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on August 27, 2007.
4.5
Form of warrant to purchase shares of the registrant's common stock at the price of $0.20 per share (the "$0.20 warrant").  Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on October 23, 2007.
4.6
Form of warrant to purchase shares of the registrant's common stock at the price of $0.001 per share (the "$0.001 warrant").  Incorporated by reference to Exhibit 4.3 to Current Report on Form 8-K filed with the SEC on October 23, 2007.
4.7
Form of Common Stock Purchase Warrant. Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on June 19, 2009.
4.8
Form of Warrant issued to Optimus CG II Ltd. pursuant to the Series A Preferred Stock Purchase Agreement.  Incorporated by reference to Exhibit A to the Purchase Agreement included as Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on September 25, 2009.
4.9
Form of Common Stock Purchase Warrant, issued in the junior bridge financing.  Incorporated by reference to Exhibit 4.12 to Registration Statement on Form S-1 (File No. 333-162632) filed with the SEC on October 22, 2009.
4.10
Form of Amended and Restated Common Stock Purchase Warrant.  Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K/A filed with the SEC on February 11, 2010.
4.11
Form of Common Stock Purchase Warrant.  Incorporated by reference to Exhibit 4.3 to Current Report on Form 8-K/A filed with the SEC on February 11, 2010.
4.12
Form of Additional Common Stock Purchase Warrant issued to Optimus CG II Ltd.  Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on May 14, 2010.
4.13
Form of Warrant issued to Optimus CG II Ltd. pursuant to the Series B Preferred Stock Purchase Agreement.  Incorporated by reference to Exhibit A to the Purchase Agreement included as Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on July 20, 2010.
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Exhibit
Number
Description of Exhibit
4.14
Form of Convertible Promissory Note.  Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on November 12, 2010.
4.15
Form of Common Stock Purchase Warrant.  Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on November 12, 2010.
4.16
Warrant to Purchase Common Stock issued to Optimus CG II Ltd. pursuant to Amendment No. 1 to the Series B Preferred Stock Purchase Agreement.  Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on April 7, 2011.
4.17
Form of Common Stock Purchase Warrant.  Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on May 9, 2011.
4.18
Form of Common Stock Purchase Warrant.  Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on August 31, 2011.
4.19
Form of Common Stock Purchase Warrant.  Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on November 2, 2011.
4.20
Form of Common Stock Purchase Warrant.  Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on January 5, 2012.
4.21
Form of Common Stock Purchase Warrant issued pursuant to the Exchange Agreements, dated as of May 14, 2012, by and between Advaxis, Inc. and each investor identified on the signature pages thereto. Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on May 18, 2012.
4.22
Form of Common Stock Purchase Warrant issued pursuant to the Note Purchase Agreement, dated as of May 14, 2012, by and between Advaxis, Inc. and each investor identified on the signature pages thereto. Incorporated by reference to Exhibit 4.3 to Current Report on Form 8-K filed with the SEC on May 18, 2012.
4.23
Form of Common Stock Purchase Warrant issued to Dr. James Patton.  Incorporated by reference to Exhibit 4.23 to Amendment No. 1 to Registration Statement on Form S-1 (File No. 333-183682) filed with the SEC on September 11, 2012.
5.1*
Opinion of Greenberg Traurig, LLP.
10.1
Securities Purchase Agreement between the registrant and the purchasers in the private placement (the "SPA"), dated as of October 17, 2007, and Disclosure Schedules thereto.  Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on October 23, 2007.
10.2
Securities Purchase Agreement dated February 2, 2006 between the registrant and Cornell Capital Partners, LP.  Incorporated by reference to Exhibit 10.01 to Report on Form 8-K filed with the SEC on February 8, 2006.
10.3
Registration Rights Agreement between the registrant and the parties to the SPA, dated as of October 17, 2007.  Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on October 23, 2007.
10.4
Placement Agency Agreement between the registrant and Carter Securities, LLC, dated as of October 17, 2007.  Incorporated by reference to Exhibit 10.3 to Current Report on Form 8-K filed with the SEC on October 23, 2007.
10.5
Engagement Letter between the registrant and Carter Securities, LLC, dated August 15, 2007.  Incorporated by reference to Exhibit 10.3(a) to Current Report on Form 8-K filed with the SEC on October 23, 2007.
10.6
Agreement between the registrant and YA Global Investments, L.P. f/k/a Cornell Capital Partners, L.P., dated August 23, 2007.  Incorporated by reference to Exhibit 10.4 to Current Report on Form 8-K filed with the SEC on October 23, 2007.
10.7
Memorandum of Agreement between the registrant and CAMHZN Master LDC and CAMOFI Master LDC, purchasers of the Units consisting of common stock, $0.20 warrants, and $0.001 warrants, dated October 17, 2007.  Incorporated by reference to Exhibit 10.5 to Current Report on Form 8-K filed with the SEC on October 23, 2007.
10.8
Advisory Agreement between the registrant and Centrecourt Asset Management LLC, dated August 1, 2007.  Incorporated by reference to Exhibit 10.6 to Current Report on Form 8-K filed with the SEC on October 23, 2007.
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Exhibit
Number
Description of Exhibit
10.9
Share Exchange and Reorganization Agreement, dated as of August 25, 2004, by and among the registrant, Advaxis and the shareholders of Advaxis.  Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on November 18, 2004.
10.10
Security Agreement dated February 2, 2006 between the registrant and Cornell Capital Partners, L.P.  Incorporated by reference to Exhibit 10.06 to Current Report on Form 8-K filed with the SEC on February 8, 2006.
10.11
Investor Registration Rights Agreement dated February 2, 2006 between the registrant and Cornell Capital Partners, LP.  Incorporated by reference to Exhibit 10.05 to Current Report on Form 8-K filed with the SEC on February 8, 2006.
10.12
2004 Stock Option Plan of the registrant.  Incorporated by reference to Exhibit 4.1 to Report on Form S-8 filed with the SEC on December 1, 2005.
10.13
2005 Stock Option Plan of the registrant.  Incorporated by reference to Annex A to DEF 14A Proxy Statement filed with the SEC on May 15, 2006.
10.14
License Agreement, between University of Pennsylvania and the registrant dated as of June 17, 2002, as Amended and Restated on February 13, 2007.  Incorporated by reference to Exhibit 10.11 to Annual Report on Form 10-KSB filed with the SEC on February 13, 2007.
10.15
Sponsored Research Agreement dated November 1, 2006 by and between University of Pennsylvania (Dr. Paterson Principal Investigator) and the registrant.  Incorporated by reference to Exhibit 10.44 to Annual Report on 10-KSB filed with the SEC on February 13, 2007.
10.16
Non-Exclusive License and Bailment, dated as of March 17, 2004, between The Regents of the University of California and Advaxis, Inc.  Incorporated by reference to Exhibit 10.8 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2 (File No. 333-122504).
10.17
Consultancy Agreement, dated as of January 19, 2005, by and between LVEP Management, LLC.  and the registrant.  Incorporated by reference to Exhibit 10.9 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2 (File No. 333-122504).
10.18
Amendment to Consultancy Agreement, dated as of April 4, 2005, between LVEP Management LLC and the registrant.  Incorporated by reference to Exhibit 10.27 to Annual Report on Form 10-KSB filed with the SEC on January 25, 2006.
10.19
Second Amendment dated October 31, 2005 to Consultancy Agreement between LVEP Management LLC and the registrant.  Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on November 9, 2005.
10.20
Third Amendment dated December 15, 2006 to Consultancy Agreement between LVEP Management LLC and the registrant.  Incorporated by reference to Exhibit 9.01 to Current Report on Form 8-K filed with the SEC on December 15, 2006.
10.21
Consultancy Agreement, dated as of January 22, 2005, by and between Dr. Yvonne Paterson and Advaxis, Inc.  Incorporated by reference to Exhibit 10.12 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2 (File No. 333-122504).
10.22
Consultancy Agreement, dated as of March 15, 2003, by and between Dr. Joy A. Cavagnaro and Advaxis, Inc.  Incorporated by reference to Exhibit 10.13 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2 (File No. 333-122504).
10.23
Consulting Agreement, dated as of July 2, 2004, by and between Sentinel Consulting Corporation and Advaxis, Inc.  Incorporated by reference to Exhibit 10.15 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2 (File No. 333-122504).
10.24
Agreement, dated July 7, 2003, by and between Cobra Biomanufacturing PLC and Advaxis, Inc.  Incorporated by reference to Exhibit 10.16 to Pre-Effective Amendment No. 4 filed on June 9, 2005 to Registration Statement on Form SB-2 (File No. 333-122504).
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Exhibit
Number
Description of Exhibit
10.25
Securities Purchase Agreement, dated as of January 12, 2005, by and between the registrant and Harvest Advaxis LLC.  Incorporated
    by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on January 18, 2005.
10.26
Registration Rights Agreement, dated as of January 12, 2005, by and between the registrant and Harvest Advaxis LLC.  Incorporated
    by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on January 18, 2005.
10.27
Letter Agreement, dated as of January 12, 2005 by and between the registrant and Robert
    T. Harvey. Incorporated     by reference to Exhibit 10.3 to Current Report on Form 8-K filed with the SEC on
    January 18, 2005.
10.28
Consultancy Agreement, dated as of January 15, 2005, by and between Dr. David Filer and the registrant. Incorporated
    by reference to Exhibit 10.20 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2
    (File No. 333-122504).
10.29
Consulting Agreement, dated as of January 15, 2005, by and between Pharm-Olam International Ltd. and the registrant.
    Incorporated     by reference to Exhibit 10.21 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration
    Statement on Form SB-2     (File No. 333-122504).
10.30
Letter Agreement, dated February 10, 2005, by and between Richard Berman and the registrant. Incorporated by
    reference to Exhibit 10.23 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2
    (File No. 333-122504).
10.31
Employment Agreement, dated February 8, 2005, by and between Vafa Shahabi and the registrant. Incorporated
    by reference to Exhibit 10.24 to Pre-Effective Amendment No. 2 filed on April 28, 2005 to Registration Statement on Form SB-2
    (File No. 333-122504).
10.32
Employment Agreement, dated March 1, 2005, by and between John Rothman and the registrant. Incorporated by
    reference to Exhibit 10.25 to Pre-Effective Amendment No. 2 filed on April 8, 2005 to Registration Statement on Form SB-2/A
    (File No. 333-122504).
10.33
Clinical Research Services Agreement, dated April 6, 2005, between Pharm-Olam International Ltd. and the registrant.
    Incorporated     by reference to Exhibit 10.26 to Pre-Effective Amendment No. 4 filed on June 9, 2005 to Registration
    Statement on Form SB-2     (File No. 333-122504).
10.34
Royalty Agreement, dated as of May 11, 2003, by and between Cobra Bio-Manufacturing PLC and the registrant. Incorporated
    by reference to Exhibit 10.28 to Pre-Effective Amendment No. 4 filed on June 9, 2005 to Registration Statement on Form SB-2
    (File No. 333-122504).
10.35
Letter Agreement between the registrant and Investors Relations Group Inc., dated September 27, 2005. Incorporated
    by reference to Exhibit 10.31 to Post-Effective Amendment filed on January 5, 2006 to Registration Statement on Form SB-2
    (File No. 333-122504).
10.36
Consultancy Agreement between the registrant and Freemind Group LLC, dated October 17, 2005. Incorporated by
    reference to Exhibit 10.32 to Post-Effective Amendment filed on January 5, 2006 to Registration Statement on Form SB-2 (File
    No. 333-122504).
10.37
Employment Agreement dated August 21, 2007 between the registrant and Thomas Moore. Incorporated by reference
    to Exhibit 10.3 to Current Report on Form 8-K filed with the SEC on August 27, 2007.
10.38
Employment Agreement dated February 9, 2006 between the registrant and Fred Cobb. Incorporated by reference
    to Exhibit 10.35 to the Registration Statement on Form SB-2 (File No. 333-132298) filed with the SEC on March 9, 2006.
10.39
Termination of Employment Agreement between J. Todd Derbin and the registrant dated October 31, 2005. Incorporated
    by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on November 9, 2005.
10.40
Consulting Agreement dated June 1, 2006 between the registrant and Biologics Consulting Group Inc. Incorporated
    by reference to Exhibit 10.40 to Annual Report on Form 10-KSB field with the SEC on February 13, 2007.
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Exhibit
Number
Description of Exhibit
10.41
Consulting Agreement dated June 1, 2006 between the registrant and Biologics Consulting Group Inc., as amended on June 1, 2007.  Incorporated by reference to Exhibit 10.42(i) to Annual Report on Form 10-KSB filed with the SEC on January 16, 2008.
10.42
Master Contract Service Agreement between the registrant and MediVector, Inc. dated May 20, 2007. Incorporated by reference to Exhibit 10.44 to Annual Report on Form 10-KSB filed with the SEC on January 16, 2008.
10.43
Form of note issued in the August 2007 financing.  Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on August 27, 2007.
10.44
Letter of Agreement, dated November 21, 2007, between Crystal Research Associates, LLC and the registrant. Incorporated by reference to Exhibit 10.45 to Annual Report on Form 10-KSB filed with the SEC on January 16, 2008.
10.45
Service Proposal O781, dated May 14, 2007, to the Strategic Collaboration and Long Term Vaccine Supply Agreement, dated October 31, 2005, between the registrant and Cobra Biomanufacturing Plc. Incorporated by reference to Exhibit 10.46 to Annual Report on Form 10-KSB filed with the SEC on January 16, 2008.
10.46
Service Proposal, dated September 20, 2007, to the Strategic Collaboration and Long Term Vaccine Supply Agreement, dated October 31, 2005, between the registrant and Cobra Biomanufacturing Plc. Incorporated by reference to Exhibit 10.47 to Annual Report on Form 10-KSB filed with the SEC on January 16, 2008.
10.47
Consulting Agreement, dated May 1, 2007 between the registrant and Bridge Ventures, Inc. Incorporated by reference to Exhibit 10.48 to Annual Report on Form 10-KSB filed with the SEC on January 16, 2008.
10.48
Consulting Agreement, dated August 1, 2007 between the registrant and Dr. David Filer. Incorporated by reference to Exhibit 10.49 to Annual Report on Form 10-KSB filed with the SEC on January 16, 2008.
10.49
Employment Agreement dated February 29, 2008 between the registrant and Christine Chansky. Incorporated by reference to Exhibit 10.50 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.
10.50
Note Purchase Agreement, dated September 22, 2008 by and between Thomas A. Moore and the registrant. Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on September 30, 2008.
10.51
Lease Extension Agreement dated June 1, 2008 by and between New Jersey Economic Development Authority and the registrant. Incorporated by reference to Exhibit 10.55 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.
10.52
Technical/Quality Agreement dated May 6, 2008 by and between Vibalogics GmbH and the registrant. Incorporated by reference to Exhibit 10.57 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.
10.53
Master Service Agreement dated April 7, 2008 by and between Vibalogics GmbH and the registrant. Incorporated by reference to Exhibit 10.58 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.
10.54
Agreement, dated as of December 8, 2008, by and between The Sage Group and the registrant. Incorporated by reference to Exhibit 10.59 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.
10.55
Service Agreement dated January 1, 2009 by and between AlphaStaff, Inc. and the registrant. Incorporated by reference to Exhibit 10.60 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.
10.56
Promissory Note issued to Biotechnology Greenhouse Corporation of Southeastern Pennsylvania, dated November 10, 2003.  Incorporated by reference to Exhibit 10.53 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.
10.57
Promissory Note issued to Biotechnology Greenhouse Corporation of Southeastern Pennsylvania, dated December 17,  2003.  Incorporated by reference to Exhibit 10.54 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.
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Exhibit
Number
Description of Exhibit
10.58
Letter of Intent dated November 20, 2008 by and between Numoda Corporation and the registrant. Incorporated by reference to Exhibit 10.61 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.
10.59
Consulting Agreement dated December 1, 2008 by and between Conrad Mir and the registrant. Incorporated by reference to Exhibit 10.62 to Annual Report on Form 10-KSB filed with the SEC on January 29, 2009.
10.60
Form of Note Purchase Agreement. Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on June 19, 2009.
10.61
Form of Senior Secured Convertible Note. Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on June 19, 2009.
10.62
Form of Senior Promissory Note as amended, between the registrant and Thomas Moore. Incorporated by reference to Exhibit 4.3 to Current Report on Form 8-K filed with the SEC on June 19, 2009.
10.63
Form of Security Agreement. Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on June 19, 2009.
10.64
Form of Subordination Agreement. Incorporated by reference to Exhibit 10.3 to Current Report on Form 8-K filed with the SEC on June 19, 2009.
10.65
Series A Preferred Stock Purchase Agreement dated September 24, 2009 by and between Optimus Capital Partners, LLC and the registrant. Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on September 25, 2009.
10.66
Form of Note Purchase Agreement, entered into in connection with the junior bridge financing.  Incorporated by reference to Exhibit 10.61 to Registration Statement on Form S-1 (File No. 333-162632) filed with the SEC on October 22, 2009.
10.67
Form of Convertible Promissory Note, issued in the junior bridge financing.  Incorporated by reference to Exhibit 4.13 to Registration Statement on Form S-1 (File No. 333-162632) filed with the SEC on October 22, 2009.
10.68
Form of Amended and Restated Senior Promissory Note, between the registrant and Thomas Moore.  Incorporated by reference to Exhibit 4.17 to Annual Report on Form 10-K filed with the SEC on February 19, 2010.
10.69
Amendment to Senior Promissory Note.  Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K/A filed with the SEC on February 11, 2010.
10.70
Amended and Restated 2009 Stock Option Plan of the registrant.  Incorporated by reference to Annex A to DEF 14A Proxy Statement filed with the SEC on April 30, 2010.
10.71
Form of Stock Purchase Agreement dated May 10, 2010 between the registrant and Numoda Capital Innovations, LLC.  Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on May 14, 2010.
10.72
Second Amendment to the Amended and Restated Patent License Agreement between the registrant and the University of Pennsylvania dated as of May 10, 2010.  Incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q filed with the SEC on June 3, 2010.
10.73
Series B Preferred Stock Purchase Agreement dated July 19, 2010 by and between Optimus Capital Partners, LLC and the registrant. Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on July 20, 2010.
10.74
Form of Amended and Restated Promissory Note between Optimus CG II Ltd. and the registrant. Incorporated by reference to Exhibit G to the Purchase Agreement included as Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on July 20, 2010.
10.75
Form of Security Agreement between Optimus CG II Ltd. and the registrant. Incorporated by reference to Exhibit H to the Purchase Agreement included as Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on July 20, 2010.
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Exhibit
Number
Description of Exhibit
10.76
Separation Agreement and General Release dated January 6, 2010 between the Company and Fred Cobb.  Incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q filed with the SEC on September 14, 2010.
10.77
Form of Note Purchase Agreement.  Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on November 12, 2010.
10.78
Amended and Restated Senior Promissory Note, dated March 17, 2011, between the registrant and Thomas A. Moore.  Incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q filed with the SEC on March 17, 2011.
10.79
Amendment No. 1 to Series B Preferred Stock Purchase Agreement dated April 4, 2011 by and between Optimus Life Sciences Capital Partners, LLC, Optimus CG II Ltd. and the registrant. Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on April 7, 2011.
10.80
Form of Promissory Note between Optimus CG II Ltd. and the registrant. Incorporated by reference to Appendix 2 to the Warrant included as Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on April 7, 2011.
10.81
Amended and Restated Security Agreement between Optimus CG II Ltd. and the registrant. Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on April 7, 2011.
10.82
Form of $500,000 Convertible Promissory Note (A-Note), issued by Advaxis, Inc. to JMJ Financial and related ancillary documents.  Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on May 4, 2011.
10.83
Form of $800,000 Convertible Promissory Note (B-Note), issued by Advaxis, Inc. to JMJ Financial and related ancillary documents.  Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on May 4, 2011.
10.84
Form of $800,000 Secured and Collateralized Promissory Note (C-Note), issued by JMJ Financial to Advaxis, Inc. and related ancillary documents.  Incorporated by reference to Exhibit 4.3 to Current Report on Form 8-K filed with the SEC on May 4, 2011.
10.85
Form of Convertible Promissory Note.  Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on May 9, 2011.
10.86
Form of Note Purchase Agreement, dated as of May 9, 2011, by and between Advaxis, Inc. and each investor identified on the signature pages thereto.  Incorporated by reference to Exhibit 10.1 to Amendment to Current Report on Form 8-K/A filed with the SEC on May 12, 2011.
10.87
Form of Registration Rights Agreement, dated as of May 9, 2011, by and between Advaxis, Inc. and each of the several investors signatory thereto.  Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on May 9, 2011.
10.88
Exchange and Amendment Agreement, dated as of August 29, 2011, by and between Advaxis, Inc. and Thomas A. Moore.  Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on August 31, 2011.
10.89
Form of Convertible Promissory Note.  Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on November 2, 2011.
10.90
Form of Note Purchase Agreement, dated as of October 28, 2011, by and between Advaxis, Inc. and each investor identified on the signature pages thereto.  Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on November 2, 2011.
10.91
Form of Registration Rights Agreement, dated as of October 28, 2011, by and between Advaxis, Inc. and each of the several investors signatory thereto.  Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on November 2, 2011.
10.92
Amendment No. 1 to the Advaxis, Inc. 2011 Employee Stock Purchase Plan.  Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on December 20, 2011.
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Exhibit
Number
Description of Exhibit
10.93
Form of Convertible Promissory Note.  Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on January 5, 2012.
10.94
Form of Note Purchase Agreement, dated as of December 29, 2011, by and between Advaxis, Inc. and each investor identified on the signature pages thereto.  Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on January 5, 2012.
10.95
Form of Registration Rights Agreement, by and between Advaxis, Inc. and each of the several investors signatory thereto.  Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on January 5, 2012.
10.96
Form of Exchange Agreement, dated as of May 14, 2012, by and between Advaxis, Inc. and each investor identified on the signature pages thereto.  Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on May 18, 2012.
10.97
Form of Amendment, Consent and Waiver Agreement, dated as of May 14, 2012, by and between Advaxis, Inc. and each investor identified on the signature pages thereto.  Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on May 18, 2012.
10.98
Form of Convertible Promissory Note issued pursuant to the Note Purchase Agreement, dated as of May 14, 2012, by and between Advaxis, Inc. and each investor identified on the signature pages thereto.  Incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the SEC on May 18, 2012.
10.99
Form of Note Purchase Agreement, dated as of May 14, 2012, by and between Advaxis, Inc. and each investor identified on the signature pages thereto.  Incorporated by reference to Exhibit 10.3 to Current Report on Form 8-K filed with the SEC on May 18, 2012.
10.100
Form of Registration Rights Agreement, dated as of May 14, 2012, by and between Advaxis, Inc. and each investor identified on the signature pages thereto.  Incorporated by reference to Exhibit 10.4 to Current Report on Form 8-K filed with the SEC on May 18, 2012.
10.101
Stock Purchase Agreement, dated as of June 13, 2012, by and between Advaxis, Inc. and Numoda Corporation.  Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on June 14, 2012.
10.102
Amendment No. 1, dated as of March 26, 2007, to the License Agreement, between University of Pennsylvania and Advaxis, Inc. dated as of June 17, 2002, as amended and restated on February 13, 2007.  Incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q filed with the SEC on June 14, 2012.
10.103
Master Agreement, dated June 19, 2009, by and between Numoda Corporation and Advaxis, Inc.  Incorporated by reference to Exhibit 10.2 to Quarterly Report on Form 10-Q filed with the SEC on June 14, 2012.
10.104
Form of Project Agreement by and between Numoda Corporation and Advaxis, Inc.  Incorporated by reference to Exhibit 10.3 to Quarterly Report on Form 10-Q filed with the SEC on June 14, 2012.
10.105
Clinical Trial Services Agreement, dated December 13, 2009, by and between the Gynecologic Oncology Group and Advaxis, Inc.  Incorporated by reference to Exhibit 10.4 to Quarterly Report on Form 10-Q filed with the SEC on June 14, 2012.
10.106
Amendment No. 3, dated as of December 12, 2011, to the License Agreement, between University of Pennsylvania and Advaxis, Inc. dated as of June 17, 2002, as amended and restated on February 13, 2007.  Incorporated by reference to Exhibit 10.5 to Quarterly Report on Form 10-Q filed with the SEC on June 14, 2012.
10.107
Exchange Agreement, dated as of July 5, 2012, by and between Advaxis, Inc. and Thomas A. Moore, Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on July 11, 2012.
10.108
Agreed Order Granting Joint Expedited Motion for Order Approving Settlement of Claim entered by the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida, dated July 24, 2012. Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on July 25, 2012.
10.109
Stipulation for Settlement of Claim between Socius CG II, Ltd. and Advaxis, Inc., dated July 23, 2012. Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on July 25, 2012.
10.110
Amendment No. 1 to 2011 Omnibus Incentive Plan of registrant. Incorporated by reference to Annex B to DEF 14A Proxy Statement filed with the SEC on July 19, 2012.
10.111
Promissory Note issued to JLSI, LLC on July 21, 2012.  Incorporated by reference to Exhibit 10.111 to Registration Statement on Form S-1 (File No. 333-183682) filed with the SEC on August 31, 2012.
10.112
Form of Convertible Promissory Note issued to Dr. James Patton.  Incorporated by reference to Exhibit 10.112 to Amendment No. 1 to Registration Statement on Form S-1 (File No. 333-183682) filed with the SEC on September 11, 2012.
10.113
Form of Convertible Promissory Note issued to JMJ Financial on August 27, 2012.  Incorporated by reference to Exhibit 10.113 to Registration Statement on Form S-1 (File No. 333-183682) filed with the SEC on August 31, 2012.
10.114
Form of Note Purchase Agreement, by and between Advaxis, Inc. and Dr. James Patton.  Incorporated by reference to Exhibit 10.114 to Amendment No. 1 to Registration Statement on Form S-1 (File No. 333-183682) filed with the SEC on September 11, 2012.
10.115
Common Stock Purchase Agreement, dated as of October 26, 2012, by and between Advaxis, Inc. and Hanover Holdings I, LLC. Incorporated
by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on October 31, 2012.
10.116
Registration Rights Agreement, dated as of October 26, 2012, by and between Advaxis, Inc. and Hanover Holdings I, LLC. Incorporated
by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on October 31, 2012.
14.1
Code of Business Conduct and Ethics dated November 12, 2004.  Incorporated by reference to Exhibit 14.1 to Current Report on Form 8-K filed with the SEC on November 18, 2004.
23.1*
Consent of McGladrey LLP (formerly McGladrey & Pullen, LLP).
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Exhibit
Number
Description of Exhibit
23.2
Consent of Greenberg Traurig LLP (See Exhibit 5.1 above).
24.1
Power of Attorney (Included in the signature page of this Registration Statement).
101.INS**
XBRL Instance Document
101.SCH**
XBRL Taxonomy Extension Schema Document
101.CAL**
XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**
XBRL Taxonomy Extension Definitions Linkbase Document
101.LAB**
XBRL Taxonomy Extension Label Linkbase Document
101.PRE**
XBRL Taxonomy Extension Presentation Linkbase Document
* Filed herewith.
** Furnished herewith.
(b)          Financial
Statement Schedules.  See page F-1.
Item 17.  Undertakings.
The undersigned registrant hereby undertakes:
(1)          To
file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i)           To
include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii)          To
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high
end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price represent no more than a twenty percent change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement; and
(iii)         To
include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement.
(2)          That,
for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
(3)          To
remove from registration by means of a post-effective amendment, any of the securities being registered which remain unsold at
the termination of the offering.
(4)          That,
for the purpose of determining liability under the Securities Act of 1933 to any purchaser:
(i)           If
the registrant is relying on Rule 430B:
(A)          Each
prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the
date the filed prospectus was deemed part of and included in the registration statement; and
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(B)           Each
prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance
on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information
required by section 10(a) of the Securities Act of 1933, shall be deemed to be part of and included in the registration statement
as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale
of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and
any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement
relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities
at that time shall be deemed to be the initial
bona fide
offering thereof. Provided, however, that no statement made in
a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed
incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to
a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the
registration statement or prospectus that was part of the registration statement or made in any such document immediately prior
to such effective date; or
(ii)           If
the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating
to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A,
shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness.
Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement
or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part
of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify
any statement that was made in the registration statement or prospectus that was part of the registration statement or made in
any such document immediately prior to such date of first use.
Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant
to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification
is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel
the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication
of such issue.
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SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized in the City of Princeton, State of New Jersey, on November 13, 2012.
ADVAXIS, INC.
By:
/s/ Thomas A. Moore
Name: Thomas A. Moore
Title: Chief Executive Officer and Chairman of
the Board of Directors
KNOW ALL MEN BY THESE PRESENTS, that each
of the undersigned directors and officers of Advaxis, Inc., a Delaware corporation, which is filing a registration statement on
Form S-1 with the Securities and Exchange Commission under the provisions of the Securities Act of 1933 hereby constitutes and
appoints Thomas A. Moore and/or Mark J. Rosenblum, and each of them, his or her true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, and in any and all
capacities, to sign and file (i) any and all amendments (including post-effective amendments) to this registration statement,
with all exhibits thereto, and other documents in connection therewith, and (ii) a registration statement, and any and all amendments
thereto, relating to the offering covered hereby filed pursuant to Rule 462(b) under the Securities Act of 1933, with the Securities
and Exchange Commission, it being understood that said attorneys-in-fact and agents, and each of them, shall have full power and
authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully
to all intents and purposes as he or she might or could do in person and that each of the undersigned hereby ratifies and confirms
all that said attorneys-in-fact as agents or any of them, or their substitute or substitutes, may lawfully do or cause to be done
by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the date indicated.
Signature
Title
Date
/s/ THOMAS A. MOORE
Chief Executive Officer and Chairman
        of
the Board of Directors
November 13, 2012
Thomas A. Moore
(Principal Executive Officer)
/s/ MARK J. ROSENBLUM
Chief Financial Officer, Senior Vice President and Secretary
November 13, 2012
Mark J. Rosenblum
(Principal Financial and Accounting Officer)
/s/ RONI A. APPEL
Director
November 13, 2012
Roni A. Appel
/s/ DR. THOMAS MCKEARN
Director
November 13, 2012
Dr. Thomas McKearn
/s/ DR. JAMES PATTON
Director
November 13, 2012
Dr. James Patton
/s/ RICHARD BERMAN
Director
November 13, 2012
Richard Berman
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