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Common Stock Purchase Warrants and Warrant Liability

6 Months Ended

Apr. 30, 2020

Common Stock Purchase Warrants And Warrant Liability

Common Stock Purchase Warrants and Warrant Liability

6. COMMON STOCK PURCHASE WARRANTS AND WARRANT LIABILITY

Warrants

As of April 30, 2020, there were outstanding warrants to purchase 5,398,226 shares of our common stock with exercise prices ranging from $0 to $281.25 per share. Information on the outstanding warrants is as follows:

Exercise Price		Number of Shares Underlying Warrants		Expiration Date	Type of Financing
$	-		327,338	July 2024	July 2019 Public Offering
$	281.25		25	N/A	Other warrants
$	0.372		70,863	September 2024	September 2018 Public Offering
$	1.25		5,000,000	July 2025	January 2020 Public Offering
	Grand Total		5,398,226

As of October 31, 2019, there were outstanding warrants to purchase 432,142 shares of our common stock with exercise prices ranging from $0 to $281.25 per share. Information on the outstanding warrants is as follows:

Exercise Price		Number of Shares Underlying Warrants		Expiration Date	Type of Financing
$	-		359,838	July 2024	July 2019 Public Offering
$	281.25		25	N/A	Other Warrants
$	0.372		72,279	September 2024	September 2018 Public Offering
	Grand Total		432,142

A summary of warrant activity was as follows (in thousands, except share and per share data):

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life In Years		Aggregate Intrinsic Value
Outstanding and exercisable warrants at October 31, 2019		432,142		$	0.08		4.76	$	114,069
Issued		5,000,000			1.25
Exercised *		(33,916	)		0.02
Outstanding and exercisable warrants at April 30, 2020		5,398,226		$	1.16		5.16	$	240,832

* Includes the cashless exercise of 32,500 warrants that resulted in the issuance of 32,500 shares of common stock.

As of April 30, 2020, the Company had 5,327,363 of its total 5,398,226 outstanding warrants classified as equity (equity warrants). At October 31, 2019, the Company had 359,863 of its total 432,142 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.

Warrant Liability

As of April 30, 2020, the Company had 70,863 of its total 5,398,226 outstanding warrants classified as liabilities (liability warrants). At October 31, 2019, the Company had 72,279 of its total 432,142 outstanding warrants classified as liabilities (liability warrants). These warrants contain a down round feature, except for exempt issuances as defined in the warrant agreement, in which the exercise price would immediately be reduced to match a dilutive issuance of common stock, options, convertible securities and changes in option price or rate of conversion. As of April 30, 2020, the down round feature was triggered three times and the exercise price of the warrants were reduced from $22.50 to $0.372. The warrants require liability classification as the warrant agreement requires the Company to maintain an effective registration statement and does not specify any circumstances under which settlement in other than cash would be permitted or required. As a result, net cash settlement is assumed and liability classification is warranted. For these liability warrants, the Company utilized the Monte Carlo simulation model to calculate the fair value of these warrants at issuance and at each subsequent reporting date.

In measuring the warrant liability at April 30, 2020 and October 31, 2019, the Company used the following inputs in its Monte Carlo simulation model:

	April 30, 2020			October 31, 2019
Exercise Price	$	0.372		$	0.372
Stock Price	$	0.67		$	0.32
Expected Term		4.37 years			4.87 years
Volatility %		103.81	%		100.99	%
Risk Free Rate		0.36	%		1.51	%

Common Stock Purchase Warrants and Warrant Liability - Schedule of Warrants Activity (Details) (Parenthetical)	Apr. 30, 2020 shares
Common Stock Purchase Warrants And Warrant Liability
Cashless warrant exercise	32,500

Label

Element

Value

Loss on shares issued in settlement of warrants

ADXS_LossOnSharesIssuedInSettlementOfWarrants

Loss on shares issued in settlement of warrants

ADXS_LossOnSharesIssuedInSettlementOfWarrants

1,607,000

Loss on shares issued in settlement of warrants

ADXS_LossOnSharesIssuedInSettlementOfWarrants

1,607,000

Loss on shares issued in settlement of warrants

ADXS_LossOnSharesIssuedInSettlementOfWarrants

Employee stock purchase plan expense

ADXS_EmployeeStockPurchasePlanExpense

1,000

Employee stock purchase plan expense

ADXS_EmployeeStockPurchasePlanExpense

2,000

Proceeds from cash balance funds

ADXS_ProceedsFromCashBalanceFunds

10,600,000

Warrant liability reclassified into equity

ADXS_WarrantLiabilityReclassifiedIntoEquity

2,000

Warrant liability reclassified into equity

ADXS_WarrantLiabilityReclassifiedIntoEquity

53,000

Warrant liability reclassified into equity

ADXS_WarrantLiabilityReclassifiedIntoEquity

Warrant liability reclassified into equity

ADXS_WarrantLiabilityReclassifiedIntoEquity

Warrant liability reclassified into equity

ADXS_WarrantLiabilityReclassifiedIntoEquity

53,000

Warrant liability reclassified into equity

ADXS_WarrantLiabilityReclassifiedIntoEquity

Warrant liability reclassified into equity

ADXS_WarrantLiabilityReclassifiedIntoEquity

$ 53,000

Finite lived patents expirations year

ADXS_FiniteLivedPatentsExpirationsYear

The expirations of the existing patents range from 2020 to 2040

Common stock warrant liability