1. NATURE OF OPERATIONS Advaxis, Inc. (Advaxis or the Company) is a clinical-stage biotechnology company focused on the discovery, 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, our product candidates have the potential to work synergistically with other immunotherapies, including checkpoint inhibitors, while having a generally well-tolerated safety profile. On June 27, 2019, Advaxis announced that it is increasing its focus on neoantigen-directed immunotherapies and closing the AIM2CERV Phase 3 clinical trial with axalimogene filolisbac (AXAL) in high-risk locally advanced cervical cancer. Advaxis intends to continue to support the clinical development of AXAL, its single-antigen construct, in other HPV-related cancers while redirecting resources towards advancing its neoantigen-directed programs. Going Concern and Managements Plans 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 suffered recurring losses and requires significant cash resources to execute its business plans. These losses are expected to continue for an extended period of time. The aforementioned factors raise substantial doubt about the Companys ability to continue as a going concern within one year from the date of filing. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern within one year after the date the financial statements are issued. 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 July 2019, the Company raised approximately $292.2 million in gross proceeds ($27.0 million in fiscal year 2019) from various public and private offerings of its common stock. As of July 31, 2019, the Company had approximately $41.8 million in cash and cash equivalents. Although the Company believes that it expects to have sufficient capital to fund its obligations, as they become due, in the ordinary course of business until at least September 2020, the actual amount of cash that it will need to operate is subject to many factors. Managements plans to mitigate an expected shortfall of capital and to support future operations include obtaining additional funds through partnerships or strategic or financing investors. The Company has reduced its operating expenses to $28.6 million for the nine months ended July 31, 2019 as compared to $53.2 million during the comparable prior period. Furthermore, the Company expects operating expenses to be between $33 million and $37 million for fiscal year 2020, which includes approximately $6 million in non-recurring costs related to programs that are winding down. The Company recognizes it will need to raise additional capital in order to continue to execute its business plan in the future. There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company or whether the Company will become profitable and generate positive operating cash flow. If the Company is unable to raise sufficient additional funds, it will have to scale back its operations.