1. NATURE OF OPERATIONS Advaxis, Inc. (Advaxis or the Company) is a clinical-stage biotechnology company focused on the development and commercialization of proprietary Listeria monocytogenes ( Lm )-based antigen delivery products. The Company is using its Lm platform directed against tumor-specific targets in order to engage the patients immune system to destroy tumor cells. Through a license from the University of Pennsylvania, Advaxis has exclusive access to this proprietary formulation of attenuated Lm called Lm Technology TM . Advaxis proprietary approach is designed to deploy a unique mechanism of action that redirects the immune system to attack cancer in three distinct ways:  Alerting and training the immune system by activating multiple pathways in Antigen-Presenting Cells (APCs) with the equivalent of multiple adjuvants;  Attacking the tumor by generating a strong, cancer-specific T cell response; and  Breaking down tumor protection through suppression of the protective cells in the tumor microenvironment (TME) that shields the tumor from the immune system. This enables the activated T cells to begin working to attack the tumor cells. Advaxis proprietary Lm platform technology has demonstrated clinical activity in several of its programs and has been dosed in over 470 patients across multiple clinical trials and in various tumor types. The Company believes that Lm Technology immunotherapies can complement and address significant unmet needs in the current oncology treatment landscape. Specifically, its product candidates have the potential to work synergistically with other immunotherapies, including checkpoint inhibitors, while having a generally well-tolerated safety profile. Liquidity and Financial Condition The Company has not yet commercialized any human products and the products that are being developed have not generated significant revenue. As a result, the Company has experienced recurring losses and requires significant cash resources to execute its business plans. Historically, the Companys major sources of cash have been comprised of proceeds from various public and private offerings of its common stock, clinical collaborations, option and warrant exercises, and interest income. From October 2013 through January 2020, the Company raised approximately $302.7 million in gross proceeds ($10.5 million in the first quarter of fiscal year 2020) from various public and private offerings of its common stock. In Note 2 of the notes to the Companys audited financial statements as of and for the year ended October 31, 2019, management stated that the Company had incurred significant losses, negative operating cash flows and as of those dates needed to raise additional funds to meet its obligations and sustain its operations. As a result, the Company concluded that there was substantial doubt as to the Companys ability to continue as a going concern. As of January 31, 2020, the Company had approximately $34.2 million in cash and cash equivalents. The Company has significantly reduced its operating expenses to $38.9 million for the fiscal year ended October 31, 2019 as compared to $76.4 million during the fiscal year ended October 31, 2018. Furthermore, the Company expects cash requirements to approximate $29 million for fiscal year 2020, which includes approximately $6 million in non-recurring costs related to programs that are winding down. The Company believes to have sufficient capital to fund its obligations, as they become due, in the ordinary course of business until at least August 2021. Given our cash balances including funds raised of $10.5 million (which yielded net proceeds of $9.6 million) in January 2020 and based on its budgeted, reduced cash flow requirements for the next twelve months from the date of filing, the Company believes such funds are sufficient to support ongoing operations at least one year after the issuance of these financial statements. Regardless of the results of any ongoing clinical trial, we have control over our expenditures and have the ability to adjust spending accordingly based on the budgeted cash flow requirements developed and the excess cash on hand.