10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended July 31, 2014

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From _____ to ____

Commission File Number 000-49845

CDEX INC.

(Exact Name of Registrant as Specified in Its Charter)

Nevada	52-2336836
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

4555 South Palo Verde Road, Suite 123, Tucson, Arizona	85714
(Address of Principal Executive Offices)	(Zip Code)

Registrant's Telephone Number, Including Area Code   520-745-5172

Indicate by check whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  

Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x  No o

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. (Check one):

Large accelerated filer: o   Accelerated filer: o   Non-accelerated filer: o   Smaller reporting company: x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No x

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12,13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes x  No ☐

As of September 9, 2014, 66,252,958 shares of the registrants Class A common stock, par value $.005 per share, were outstanding.

CDEX, INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

Part I FINANCIAL INFORMATION

ITEM 1.	Financial Statements
	Balance Sheets as of July 31, 2014 (unaudited) and   October 31, 2013	1
	Statements of Operations for the three months ended  July 31, 2014 and 2013 (unaudited)	2
	Statements of Operations for the nine months ended  July 31, 2014 and 2013 (unaudited)	3
	Statements of Cash Flow for the nine months ended   July 31, 2014 and 2013 (unaudited)	4
	Notes to Financial Statements (unaudited)	5
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	9
ITEM 4.	Controls and Procedures	14
Part II  OTHER INFORMATION
ITEM 5.	Other Information	15
ITEM 6.	Exhibits	15
Signatures		16

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PART I - FINANCIAL INFORMATION

ITEM 1. Financial Statements

CDEX INC.

BALANCE SHEETS

	July 31, 2014			October 31. 2013
	Unaudited
Assets
Current assets
Cash	$	44,751		$	98,967
Accounts receivable		11,335			23,573
Inventory - net		220,341			240,232
Prepaid expenses and deposits		5,355			9,108
Total current assets		281,782			371,880
Property and equipment, net		34,349			37,889
Patents, net		48,074			51,559
Other assets		1,399			1,504
Total assets	$	365,604		$	462,832
Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued expenses	$	56,532		$	8,140
Deferred revenue - current		67,900			72,985
Total current liabilities		124,432			81,125
Total liabilities		124,432			81,125
Commitments and Contingencies
Stockholders' equity
Preferred stock - undesignated - $.005 par value per share, 350,000 shares authorized and none outstanding		-			-
Preferred stock - series A - $.005 par value per share, 150,000 shares authorized and 6,250 outstanding at July 31, 2014 and at October 31, 2013		31			31
Class A common stock - $.005 par value per share, 300,000,000 shares authorized and 64,973,458 outstanding at July 31, 2014 and 52,946,963 outstanding at October 31, 2013		324,865			264,732
Additional paid in capital		35,519,755			35,336,108
Accumulated (deficit)		(35,603,479	)		(35,219,164	)
Total stockholders' equity		241,172			381,707
Total liabilities and stockholders' equity	$	365,604		$	462,832

The accompanying notes are an integral part of these financial statements.

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CDEX INC.

STATEMENTS OF OPERATIONS

(unaudited)

	For the three months ended
	July 31
	2014			2013
Revenue	$	27,207		$	30,574
Cost of revenue		7,522			25,755
Gross profit		19,685			4,819
Operating Expenses
Selling, general and administrative		100,918			145,045
Research and development		44,320			35,542
Total operating expenses		145,238			180,587
Loss from operations		(125,553	)		(175,768	)
Other income
Other income		-			332
Total other income		-			332
Net loss	$	(125,553	)	$	(175,436	)
Basic net loss per common share:	$	(0.01	)	$	(0.01	)
Basic weighted average common shares outstanding		63,265,125			52,922,971

The accompanying notes are an integral part of these financial statements.

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CDEX INC.

STATEMENTS OF OPERATIONS

(unaudited)

	For the nine months ended
	July 31
	2014			2013
Revenue	$	153,491		$	459,538
Cost of revenue		33,426			95,456
Gross profit		120,065			364,082
Operating Expenses
Selling, general and administrative		375,714			912,210
Research and development		135,471			95,087
Total operating expenses		511,185			1,007,297
Loss from operations		(391,120	)		(643,215	)
Other income
Other income		6,805			28,267
Total other income		6,805			28,267
Net loss	$	(384,315	)	$	(614,948	)
Basic net loss per common share:	$	(0.01	)	$	(0.01	)
Basic weighted average common shares outstanding		56,852,043			47,910,016

The accompanying notes are an integral part of these financial statements.

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CDEX INC.

STATEMENTS OF CASH FLOWS

(unaudited)

	For the nine months ended
	July 31
	2014			2013
Cash Flows from Operating Activities
Net loss	$	(384,315	)	$	(614,948	)
Adjustments to reconcile net loss to cash used by operating activities
Depreciation and amortization		17,237			23,432
Share-based compensation		8,780			415,458
Gain recognized on forgiveness of debt		-			(42,872	)
Changes in operating assets and liabilities
Accounts receivable		12,238			7,645
Inventory		19,891			(58,400	)
Deferred costs and other assets		3,858			(4,938	)
Current liabilities		43,307			(36,359	)
Net cash used by operating activities		(279,004	)		(310,982	)
Cash Flows from Investing Activities
Purchase of equipment		(10,212	)		-
Net cash used by investing activities		(10,212	)		-
Cash Flows from Financing Activities
Proceeds from warrant exchange offer		235,000			-
Net cash provided by financing activities		235,000			-
Net decrease in cash		(54,216	)		(310,982	)
Cash, beginning of the period		98,967			561,858
Cash, end of the period	$	44,751		$	250,876
Supplemental Cash Flow Information
Issuance of previously accrued common stock	$	-		$	22,790

The accompanying notes are an integral part of these financial statements.

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CDEX Inc.

NOTES TO FINANCIAL STATEMENTS

July 31, 2014

(Unaudited)

1. Basis of Presentation

The accompanying interim unaudited condensed financial statements include the accounts of CDEX Inc. as of July 31, 2014.  In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for a fair presentation of the results for the interim periods presented have been made. The results for the three-month and nine-month periods ended July 31, 2014 may not be indicative of the results for the entire year. The interim unaudited condensed financial statements should be read in conjunction with the Company's audited financial statements contained in our Annual Report on Form 10-K. Our lack of earnings history and continued future losses could adversely affect our financial position and if we are unable to generate funds or obtain funds on acceptable terms, we may not be able to continue operations.

The accompanying unaudited financial statements are presented pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading.

Recent Developments

We have experienced net losses since our inception and, as of July 31, 2014, had an accumulated deficit of approximately $36 million.  We do not expect to have positive cash flow from operations until we have deployed a sufficient number of our ValiMedTM G4 drug validation systems.  As of July 31, 2014, we had approximately $45,000 in cash provided primarily through proceeds from our Warrant Exchange Offer, where we offered to all Warrant holders with an exercise price of $0.10 per share an opportunity to exercise their warrants for $0.02 a share in exchange for the number of shares of common stock issuable under the warrant and a warrant for half the number of shares of common stock issuable under the exercised warrant with an exercise price of $0.15 a share.

Use of Estimates

The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its assumptions on historical experiences and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. In addition, management considers the basis and methodology used in developing and selecting these estimates, the trends in and amounts of these estimates, specific matters affecting the amount of and changes in these estimates, and any other relevant matters related to these estimates, including significant issues concerning accounting principles and financial statement presentation. Such estimates and assumptions could change in the future as more information becomes known which could impact the amounts reported and disclosed herein. Significant estimates include revenue recognition, the valuation of inventory and stock-based compensation expense.

Recent Accounting Pronouncements

The Company has reviewed, and continues to review, issued accounting pronouncements with the intent of adopting any that are applicable to it. The Company does not expect any recent pronouncements to have an impact on its results of operations or financial position.

2.           Inventory - Net

Our inventories consisted of the following:

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CDEX Inc.

NOTES TO FINANCIAL STATEMENTS

July 31, 2014

(Unaudited)

	July 31, 2014			October 31, 2013
Raw materials	$	174,461		$	170,444
Finished goods		70,318			94,620
Subtotal		244,779			265,064
Obsolescence reserve		(24,438	)		(24,832	)
Total inventory	$	220,341		$	240,232

3           Property and equipment, net

Our property and equipment consisted of the following:

	July 31, 2014			October 31, 2013
Furniture, fixtures and leasehold improvements	$	2,931		$	2,931
Equipment		605,007			594,795
Leased equipment		70,654			70,654
Total		678,592			668,380
Less accumulated depreciation		(644,243	)		(630,491	)
Net property and equipment	$	34,349		$	37,889

4           Patents, net

Our patents consisted of the following:

	July 31, 2014			October 31, 2013
Patents	$	100,000		$	100,000
Less accumulated amortization		(51,926	)		(48,441	)
Net patents	$	48,074		$	51,559

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CDEX Inc.

NOTES TO FINANCIAL STATEMENTS

July 31, 2014

(Unaudited)

5           Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	July 31, 2014		October 31, 2013
Legal fees	$	4,648	$	240
Accrued compensation		18,119		625
Accounts payable		31,390		4,900
Accrued payable to a distributor		2,375		2,375
	$	56,532	$	8,140

6.           Share-Based Compensation

For the three months ended July 31, 2014, share-based compensation expense was approximately $-0-.  For the nine months ended July 31, 2014, share-based compensation expense was approximately $9,000, which was primarily attributable to restricted stock grants issued to our independent Directors under the CDEX Inc. Board Compensation Plan.

For the three months ended July 31, 2013, share-based compensation expense was approximately $18,000, all of which was attributable to restricted stock grants issued for services. For the nine months ended July 31, 2013, share-based compensation expense was approximately $415,000, of which approximately $223,000 was attributable to options, $82,000 was attributable to warrants granted for services and $110,000 was attributable to restricted stock grants issued for services.

During the nine months ended July 31, 2014, 15,000 options were forfeited and approximately 276,000 shares of restricted stock were issued.

During the nine months ended July 31, 2013, 8,350,000 options were granted and 800,000 options were forfeited. During the period, options to purchase 8,000,000 shares of Class A common stock were granted to Mr. Brumfield, the Company’s CEO, with an exercise price of $0.05 a share exercisable for five years from the date of issuance and Mr. Brumfield forfeited the existing 800,000 options granted under his employment agreement. Additionally, options to purchase 150,000 and 200,000 shares of Class A common stock were, respectively, granted to Mr. Stevenson, a director of the Company and to Mr. McCommon, the Company’s CFO. These options have an exercise price of $0.05 a share and are exercisable for five years from the date of issuance.

We determine the fair value of share-based awards at their grant date, using a Black-Scholes Option Pricing Model applying the assumptions in the following table.  No options were granted for the nine months ended July 31, 2014. Actual compensation, if any, ultimately realized by option recipients may differ significantly from the amount estimated using an option valuation model.

	For the nine months ended July 31,
	2014	2013
Weighted average grant date fair value	$0.00	$0.06
Expected volatility	0%	75%
Expected dividends	0%	0%
Expected term (years)	-	5
Risk free rate	-	0.77% - 0.79%

As of July 31, 2014, there were no unrecognized compensation costs related to unvested restricted stock grants.

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CDEX Inc.

NOTES TO FINANCIAL STATEMENTS

July 31, 2014

(Unaudited)

7.          Stockholders' Equity

During the three months ended January 31, 2014, there was no stock activity.  In February 2014, we issued 92,165 shares to each of our independent Directors under the CDEX Inc. Board Compensation Plan.  In the months April through July 2014, we issued 11,750,000 shares of common stock and 5,875,000 warrants to purchase common stock and cancelled 11,750,000 warrants to purchase common stock from our Warrant Exchange Offer where we offered to all warrant holders with an exercise price of $0.10 per share the opportunity to exercise their warrants for $0.02 a share in exchange for the number of shares of common stock issuable under the warrant and a 5-year warrant for half the number of shares of common stock issuable under the exercised warrant with an exercise price of $0.15 a share.

In the three months ended January 31, 2013, as a part of its Plan of Reorganization, the Company issued approximately 37.4 million shares of our Class A common stock and warrants to purchase 33.9 million shares of Class A common stock.  Also, in the three months ended January 31, 2013, as compensation for his efforts as the Company’s Medical Director, the Company issued Jason B. Terrell, 500,000 shares of its Class A common stock and a warrant to purchase 500,000 shares of Class A common stock for $0.10 a share effective for five years.

In the three months ended April 30, 2013, as a part of its Plan of Reorganization, the Company issued approximately 3.9 million shares of our Class A common stock and warrants to purchase 6.3 million shares of Class A common stock. As a part of this issuance under the Plan of Reorganization, approximately 1.8 million warrants were issued to Mr. Brumfield, the Company’s CEO, with an exercise price of $0.10 a share exercisable for five years from the date of issuance.

In the three months ended July 31, 2013, the Company issued approximately 144,000 shares of our Class A common stock that had been approved and accrued for prior to the finalization of the Bankruptcy Plan.  Additionally, approximately 67,000 shares were returned to the authorized and available shares because a creditor under the Bankruptcy Plan opted out of the Plan.

8.          Commitments and Contingencies

Litigation

We may from time to time be involved in legal proceedings arising from the normal course of business. As of the date of this report, we have not received notice of any other legal proceedings and the Company is not aware of any pending claims or assessments which may have a material adverse impact on the Company’s financial position or results of operations.

9. Subsequent Events

The Company’s management has evaluated subsequent events occurring after July 31, 2014, the date of our most recent balance sheet, through the date our financial statements were issued.  In August 2014, we issued 387,500 shares of common stock as consultant compensation and we received a $62,900 deposit to participate in our Warrant Exchange Offer and our Original Issuance Exchange Offer.  In September 2014, we issued 585,000 shares of common stock and 292,500 warrants to purchase common stock from our Warrant Exchange Offer where we offered to all Warrant holders with an exercise price of $0.10 per share to exercise their warrants for $0.02 per share in exchange for the number of shares of common stock issuable under the warrant and a 5-year warrant for half the number of shares of common stock issuable under the exercised warrant with an exercise price of $0.15 per share.  Also in September 2014 we issued 307,000 shares of common stock and 153,500 warrants to purchase common stock from our Original Issuance Exchange Offer where we offered to issue Class A common stock for $0.02 per share along with a 5-year warrant for half the number of shares of common stock issued with an exercise price of $0.15 per share.

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ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operation

Our discussion and analysis of the financial condition and results of operations should be read in conjunction with the unaudited consolidated financial statements and the related disclosures included elsewhere herein and in Management’s Discussion and Analysis of Financial Condition and Results of Operations included as part of our Annual Report on Form 10-K for the fiscal year ended October 31, 2013.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the securities laws. Forward-looking statements include all statements that do not relate solely to the historical or current facts, and can be identified by the use of forward looking words such as "may", "believe", "expect", "expected", "project", "anticipate", "anticipated”, "plans", "strategy", "target", "prospects", ”should”, “intends”, “estimates” "continue" and other words of similar meaning.  These forward-looking statements are based on the current plans and expectations of our management and are subject to a number of uncertainties and risks that could significantly affect our current plans and expectations, as well as future results of operations and financial condition and may cause our actual results, performances or achievements to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements.

Important factors that could cause our actual results to differ materially from our expectations are described as Risk Factors in our Annual Report on Form 10-K for the fiscal year ended October 31, 2013.  Although we believe that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to have been correct.  We do not assume any obligation to update these forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting such forward-looking statements.

OVERVIEW

CDEX Inc. (“CDEX,” “we,” “us,” “our” or the “Company”) is a technology development company incorporated in the State of Nevada on July 6, 2001 with a corporate office and research and development facility in Tucson, Arizona.  Our Class A common stock is currently being traded on the OTCQB under the symbol "CDEX."

Our Company is widely recognized as a global leader in Enhanced Photoemission Spectroscopy.  We have pioneered proprietary, patented technology that has been applied to create and bring to market two in-demand, proprietary product lines:  ValiMed™ for the healthcare industry and ID2™for the security industry.

Key competitive differentiators of CDEX’s solutions include:

· Powerful, real-time chemical detection and medication validation capabilities.

· Highly reliable and accurate measurements.

· Lower in cost to customers when compared to competing or alternative technologies.

· Reduces potential errors in human interpretation.

· CDEX has created an extensive and very valuable library of reference signatures (200+ for current CCT Model) and an ever expanding signature library for the ValiMed G4 of substances of interest, such as selected narcotics and high risk liquid compounded admixtures. Proprietary software validates a substance of interest by comparing its signature against the known reference signature of the substance of interest. The CDEX advantage is that substances of interest are tested at the base levels and their signatures are compared to the known signatures of the substance of interest.  This provides rapid validation and authentication that the substance is genuine.

9

· Our technology is not centered on packaging schemes such as holograms, inks, ingredient taggants or Radio Frequency Identification (RFID) tags, all of which can be defeated by determined counterfeiters.

· Our technology can be adapted to other products and markets, including identifying counterfeit drugs, protecting brands and identifying explosives’ signatures, among others.

Virtually all CDEX product development has been based on applying the same underlying technologies. CDEX anticipates developing and/or acquiring other technologies in the future through partnering and investment. However, unless and until such time as we acquire or develop other technology assets, all of the Company's revenues will come from products developed from our current suite of patents and patent pending technologies, or through licensing arrangements with companies with related intellectual property.

Our Technology.

Our research and development efforts have centered on, but are not limited to, the use of excitation energy sources and patented/patents pending processing technology for substance verification, authentication and identification. When certain substances are exposed to excitation energy, the substances produce photons at specific wavelengths that form unique spectral fingerprints, which can be used as signatures to validate and authenticate the substances.

CDEX creates reference signatures of substances of interest, such as select narcotics, explosive compounds and medicines.  CDEX software validates a substance of interest by comparing its signature against the known reference signature of the substance of interest in the database.

The CDEX advantage is that substances of interest are tested at the base levels and their signatures are compared to the known signatures of the substance of interest contained in the database. This provides rapid validation and authentication that the substance is genuine. CDEX technology is not centered on packaging schemes such as holograms, inks, ingredient taggants or Radio Frequency Identification (or RFID) tags, all of which can be defeated by determined counterfeiters.

Products.

We are currently focusing our resources on marketing and improving real-time (within seconds) chemical detection products using proprietary, patented and patents pending technologies. Our primary focus in 2013, which continued through the three months ended July 31, 2014, was the continued development and enhancement of our ValiMed G4 system (“VG4”) for use in the pharmaceutical market and sales of our ID2 product for the security markets with our principal product lines noted below.  The Company continues to explore unique opportunities where its proprietary technology may provide low cost/real time solutions to growing security or liability concerns such as conducting urine, blood and saliva analysis for detecting illegal drugs and performance enhancement substances in the work place or sporting environment.

Healthcare Market.

Our ValiMed Medication Validation System (“MVS”) product line – consists of two products: our third generation ValiMed system, marketed as ValiMed CCT (“CCT”)and the ValiMed G4 (“VG4”).  Both ValiMed systems help healthcare providers ensure patient safety and control costs by reducing medication errors and mitigating drug diversion, utilizing our patented and patent pending process known as Enhanced Photoemission Spectroscopy.

The VG4 system uses a patented detection process providing a real time (within seconds), quantitative (strength/concentration) and qualitative (identification of known) analysis of high-risk single component compounded medications and treatment solutions. The CCT system, which is operating in numerous hospital settings around the country, provides the healthcare industry with the ability to verify a known substance, specifically a known drug with a known strength/concentration, in a known diluent. The CCT system also utilizes our proprietary cuvettes in the process.  Both devices help healthcare facilities comply with Joint Commission on Accreditation of Healthcare Organizations compliance requirements and United States Pharmacopeia's General Chapter 797 Pharmaceutical Compounding—Sterile Preparations (“USP 797”) guidelines for compounding sterile preparations.  Both systems also provide a recurring revenue stream and address three problem areas in the healthcare market: (i) human error in the compounding of medications, with an emphasis on, but not limited to high risk medications; (ii) harmful counterfeit medications and (iii) diversion of hospital narcotics.

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In the near future, we expect the VG4 product line to address multi component compounded admixtures, such as total parenteral nutrition. We expect to add oncology drugs to our formulary in 2016 as well.  One of the most significant improvements with the VG4 is the capability to analyze through most containers that are currently being used in pharmaceutical settings.  This provides our end users with a more streamlined application, with less labor and without compromising the sterility of the compounded admixtures.

Security Market.

Our ID2 product line – provides solutions for real time (within seconds) detection of specified illegal drugs. This product line currently comprises two devices, both which are hand-held models that detect methamphetamine. The ID2 Meth Scanner is a device that is used for the detection of methamphetamine in the home inspection industries, by housing authorities, the hotel industry and in our nation’s prisons and correctional facilities.  The Pocket ID2 is a pocket-sized hand-held device that currently detects visible and prosecutable quantities of methamphetamine.  We expect to expand our detection capabilities to include other drugs such as cocaine, heroin, OxyContin and Ecstasy in the near future.

We continue to explore opportunities to apply the ID2 technology to a table top device that will be portable and able to detect trace amounts of specified illegal drugs and explosives in real-time.  Our ID2 products have applications in all areas of law enforcement, including local police and sheriff departments, U.S. border patrol, port authorities, TSA, FBI, U.S. Military, and other agencies engaged in counternarcotics.

INTELLECTUAL PROPERTY RIGHTS

We rely on non-disclosure agreements, patent, trade secret and copyright laws to protect the intellectual property that we have and plan to develop, but such laws may provide insufficient protection. Moreover, other companies may develop products that are similar or superior to ours or may copy or otherwise obtain and use our proprietary information without authorization. In addition, certain of our know-how and proprietary technology may not be patentable. Policing unauthorized use of our proprietary and other intellectual property rights could entail significant expense and could be difficult or impossible to do. In addition, third parties may bring claims of copyright or trademark infringement against CDEX or claim that certain of our processes or features violate a patent, that we have misappropriated their technology or formats or otherwise infringed upon their proprietary rights. Any claims of infringement, with or without merit, could be time consuming to defend, result in costly litigation, divert management’s attention, and/or require CDEX to enter into costly royalty or licensing arrangements to prevent further infringement, any of which could adversely affect our operating results.  The Company makes business decisions regarding which inventions to patent, and in what countries.

Our competitive position also depends upon unpatented trade secrets. Trade secrets are difficult to protect. Our competitors may independently develop proprietary information and techniques that are substantially equivalent to ours or otherwise gain access to our trade secrets, such as through unauthorized or inadvertent disclosure of our trade secrets.

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RESULTS OF OPERATIONS

COMPARISON OF OPERATIONS FOR THE THREE MONTHS ENDED JULY 31, 2014 AND 2013:

	2014			2013
Revenue	$	27,207		$	30,574
Cost of revenue		7,522			25,755
Selling, general and administrative		100,918			145,045
Research and development		44,320			35,542
Other income		-			332
Net loss	$	(125,553	)	$	(175,436	)

REVENUE

Revenue was approximately $27,000 and $31,000 during the three months ended July 31, 2014 and 2013, respectively. The decrease in revenue of approximately $4,000 resulted primarily from reduced pay-per-use revenue partially offset by the increase in ValiMed maintenance revenue.

COST OF REVENUE

Cost of revenue was approximately $8,000 and $26,000 during the three months ended July 31, 2014 and 2013, respectively, a decrease of approximately $18,000. The gross margin percentage increased from approximately 16% to 72%.

SELLING, GENERAL AND ADMINISTRATIVE

Selling, general and administrative expenses were approximately $101,000 during the three months ended July 31, 2014, compared with $145,000 during the three months ended July 31, 2013. The decrease of approximately $44,000 resulted primarily from the decrease in non-cash share-based expense and employee compensation of $37,000, as well as a decrease in marketing and travel of $15,000 partially offset by an increase in general expenses of $9,000, including an allowance for doubtful accounts and insurance expense.

RESEARCH AND DEVELOPMENT

Research and development (“R&D”) costs were approximately $44,000 during the three months ended July 31, 2014, compared with $36,000 during the three months ended July 31, 2013, an increase of approximately $8,000, which is primarily attributable to increases in R&D material of $11,000 partially offset by a reduction in R&D compensation of $2,000.

OTHER INCOME

Other income for the three months ended July 31, 2014 was approximately $-0- compared to $1,000 other income for the three months ended July 31, 2013.

NET LOSS

The net loss was approximately $126,000 during the three months ended July 31, 2014, compared with a net loss of $175,000 during the three months ended July 31, 2013, due to the foregoing factors.

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COMPARISON OF OPERATIONS FOR THE NINE MONTHS ENDED JULY 31, 2014 AND 2013:

	2014			2013
Revenue	$	153,491		$	459,538
Cost of revenue		33,426			95,456
Selling, general and administrative		375,714			912,210
Research and development		135,471			95,087
Other income		6,805			28,267
Net loss	$	(384,315	)	$	(614,948	)

REVENUE

Revenue was approximately $153,000 and $460,000 during the nine months ended July 31, 2014 and 2013, respectively. The decrease in revenue of approximately $307,000 resulted primarily from the sale in the nine months ended July 31, 2013 of ValiMed CCTs to Al-Essa Medical & Scientific Equipment Company in Safat, Kuwait, offset by revenue from a client opting out of their supply contract in 2014 and electing to pay the contracted exit fee.

COST OF REVENUE

Cost of revenue was approximately $33,000 and $95,000 during the nine months ended July 31, 2014 and 2013, respectively, a decrease of approximately $62,000. The gross margin percentage decreased from approximately 79% to 78%.

SELLING, GENERAL AND ADMINISTRATIVE

Selling, general and administrative expenses were approximately $376,000 during the nine months ended July 31, 2014, compared with $912,000 during the nine months ended July 31, 2013. The decrease of approximately $536,000 resulted primarily from the decrease in non-cash share-based expense and employee compensation of $463,000, a decrease in professional and consulting expenses of $34,000, a decrease in marketing and travel of $31,000, decreases in shipping and supplies of $8,000, and insurance premiums of $7,000 and depreciation of $4,000 offset by of an increase in allowance for doubtful accounts of $13,000.

RESEARCH AND DEVELOPMENT

Research and development costs were approximately $135,000 during the nine months ended July 31, 2014, compared with $95,000 during the nine months ended July 31, 2013, an increase of approximately $40,000, which is primarily attributable to increases in R&D material of $30,000, R&D travel of $7,000 and R&D compensation of $3,000.

OTHER INCOME

Other income for the nine months ended July 31, 2014 was approximately $7,000 compared to $28,000 for the nine months ended July 31, 2013.  The net change of approximately $21,000 is primarily due to the recognition in 2013 of approximately $43,000 for forgiveness of debt income from those creditors opting out of our Plan of Reorganization and the refund in 2014 of approximately $7,000 of excess fees paid to the United States Bankruptcy Trustee, which was offset by approximately $15,000 in fees paid to the United States Bankruptcy Trustee in 2013.

13

NET (LOSS)

The net loss was approximately $384,000 during the nine months ended July 31, 2014, compared with a net loss of $615,000 during the nine months ended July 31, 2013, due to the foregoing factors.

LIQUIDITY AND CAPITAL RESOURCES

The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  We have experienced net losses since our inception and, as of July 31, 2014, had an accumulated deficit of approximately $36 million.  We do not expect to have positive cash flow from operations until we have deployed a sufficient number of our ValiMed G4 drug validation systems.  As of July 31, 2014, we had approximately $45,000 in cash.

We had a net increase in cash of approximately $54,000 during the nine months ended July 31, 2014 from the cash provided by our financing activities offset by the use of cash in operating and investing activities. This amount is comprised primarily of our net loss of approximately $384,000 offset by an increase in our current liabilities of $43,000, a decrease in inventory of $20,000, depreciation and amortization of $17,000, a reduction of our accounts receivable of $12,000, share-based compensation of $9,000, and purchase of equipment of $10,000 offset by $235,000 from the proceeds from the warrant exchange offer.

ITEM 4.  Controls and Procedures

Disclosure Controls and Procedures.

The Company’s Chairman and Chief Executive Officer and its Vice President of Finance  and Chief Financial Officer, after evaluating the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of July 31, 2014, have concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act, as amended, is recorded, processed and summarized and reported on a timely basis and is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting.

There were no changes in the Company’s internal control over financial reporting during the Company’s fiscal quarter ended July 31, 2014 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

14

PART II - OTHER INFORMATION

ITEM 2.  Unregistered Sales of Equity Securities and Use of Proceeds

In the quarter ended July 31, 2014, we issued 4,750,000 shares of common stock and 2,375,000 warrants to purchase common stock from our Warrant Exchange Offer where we offered to all Warrant holders with an exercise price of $0.10 per share the opportunity to exercise their warrants for $0.02 a share in exchange for the number of shares of common stock issuable under the warrant and a 5-year warrant for half the number of shares of common stock issuable under the exercised warrant with an exercise price of $0.15 a share. The Warrant Exchange Offer and issuance of shares was conducted under Section 4(a)(2) of the Securities Act of 1933, as amended, as it was not in connection with any public offering.

ITEM 5. Other Information

(a) Not Applicable

(b) The Company has not adopted formal procedures for the nomination by stockholders of candidates to serve on its Board of Directors.

ITEM 6.  Exhibits

31.1	Certification of Chief Executive Officer.
31.2	Certification of Chief Financial Officer.
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Chief Executive Officer).
32.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Chief Financial Officer).
101.INS	XBRL Instance Document
101.SCH	XBRL Schema Document
101.CAL	XBRL Calculation Linkbase Document
101.DEF	XBRL Definition Linkbase Document
101.LAB	XBRL Label Linkbase Document
101.PRE	XBRL Presentation Linkbase Document

15

SIGNATURES

In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on September 10, 2014.

CDEX INC.

By:	/s/  Jeffrey K. Brumfield
	Jeffrey K. Brumfield
	Chief Executive Officer

By:	/s/  Stephen A. McCommon
	Stephen A. McCommon
	Chief Financial Officer and
	Vice President of Finance

16

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO RULE 13a-14

I, Jeffery K. Brumfield, certify that:

1. I have reviewed this quarterly report on Form 10-Q of CDEX, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

  /s/ Jeffery K. Brumfield

Jeffery K. Brumfield

Chief Executive Officer

Date: September 10, 2014

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO RULE 13a-14

I, Stephen A. McCommon, certify that:

1. I have reviewed this quarterly report on Form 10-Q of CDEX, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 /s/ Stephen A. McCommon

Stephen A. McCommon

Chief Financial Officer

Date: September 10, 2014

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the filing by CDEX, Inc. (the “Company”) of its Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2014 (the “Report”) I, Jeffery K. Brumfield, Chief Executive Officer of the Company certify pursuant to 18 U.S.C. Section. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

(i) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

This certificate is being made for the exclusive purpose of compliance by the Chief Executive Officer of CDEX, Inc. with the requirements of Section 906 of the Sarbanes-Oxley Act of 2002, and may not be used for any other purposes. A signed original of this written statement required by Section 906 has been provided to CDEX, Inc. and will be retained by CDEX, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

  /s/ Jeffery K. Brumfield

Jeffery K. Brumfield

Chief Executive Officer

Date: September 10, 2014

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the filing by CDEX, Inc. (the “Company”) of its Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2014 (the “Report”) I, Stephen A. McCommon, Chief Financial Officer of the Company certify pursuant to 18 U.S.C. Section. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

(i) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

This certificate is being made for the exclusive purpose of compliance by the Chief Financial Officer of CDEX, Inc. with the requirements of Section 906 of the Sarbanes-Oxley Act of 2002, and may not be used for any other purposes. A signed original of this written statement required by Section 906 has been provided to CDEX, Inc. and will be retained by CDEX, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

  /s/ Stephen A. McCommon

Stephen A. McCommon

Chief Financial Officer

Date: September 10, 2014

XML

Accounts Payable and Accrued Expenses (Schedule of Accounts Payable and Accrued Liabilities) (Details) (USD $)	Jul. 31, 2014		Oct. 31, 2013
Accounts Payable and Accrued Expenses [Abstract]
Legal fees	$ 4,648		$ 240
Accrued compensation	18,119		625
Accounts payable	31,390		4,900
Accrued payable to a distributor	2,375		2,375
Total	$ 56,532	[1]	$ 8,140

[1] Unaudited

XML

Patents, net

9 Months Ended

Jul. 31, 2014

Patents, net [Abstract]

Patents, net

4           Patents, net

Our patents consisted of the following:

	July 31, 2014			October 31, 2013
Patents	$	100,000		$	100,000
Less accumulated amortization		(51,926	)		(48,441	)
Net patents	$	48,074		$	51,559

XML

Subsequent Events (Narrative) (Details) (Subsequent Event [Member], USD $)	1 Months Ended
	Sep. 30, 2014	Aug. 31, 2014
Subsequent Event [Member]
Subsequent Event [Line Items]
Subsequent event, shares issued for services (in Shares)		387,500
Subsequent event, deposit received to participate in Warrant Exchange Offer and Original Issuance Exchange Offer		$ 62,900
Subsequent event, issuance of common stock under Warrant Exchange Offer (in Shares)	585,000
Subsequent event, warrants issued to purchase common stock from Warrant Exchange Offer (in Shares)	292,500
Subsequent event, warrants issued to purchase common stock from Warrant Exchange Offer, original exercise price (in Dollars per Share)	$ 0.10
Subsequent event, warrants issued to purchase common stock from Warrant Exchange Offer, new exercise price (in Dollars per Share)	$ 0.02
Subsequent event, warrants issued to purchase common stock from Warrant Exchange Offer, warrant term (in Duration)	5 years
Subsequent event, percent of shares issuable for new warrants issued in Warrant Exchange Offer (in Percent)	50.00%
Subsequent event, warrants offered under Warrant Exchange Offer new warrant exercise price per share of new Warrants issued (in Dollars per Share)	$ 0.15
Subsequent event, issuance of common stock under New Issuance Exchange Offer (in Shares)	307,000
Subsequent event, warrants to purchase Class A common stock from Original Issuance Exchange Offer (in Shares)	153,500
Subsequent event, warrants to purchase Class A common stock from Original Issuance Exchange Offer, original exercise price (in Dollars per Share)	$ 0.02
Subsequent event, warrants to purchase Class A common stock from Original Issuance Exchange Offer, exercise term (in Duration)	5 years
Subsequent event, percent of shares issuable for new warrants issued in New Issuance Exchange Offer (in Percent)	50.00%
Subsequent event, warrants to purchase Class A common stock from Original Issuance Exchange Offer, new exercise price (in Dollars per Share)	$ 0.15

XML

Stockholders' Equity (Narrative) (Details) (USD $)	1 Months Ended	3 Months Ended	4 Months Ended
	Feb. 28, 2014	Jan. 31, 2014	Jul. 31, 2014
Stockholders' Equity [Abstract]
Common stock issued (in Shares)		0	11,750,000
Number of shares issued to each Board Director for services (in Shares)	92,165
Warrants to purchase common stock issued (in Shares)			5,875,000
Warrants issued under Warrant Exchange Offer cancelled (in Shares)			11,750,000
Warrants offered under Warrant Exchange Offer, original warrant exercise price (in Dollars per Share)			$ 0.10
Warrants offered under Warrant Exchange Offer, new warrant exercise price of original warrants issued (in Dollars per Share)			$ 0.02
Warrant term of new warrants issued under Warrant Exchange Offer (in Duration)			5 years
Percent of shares issuable for new warrants issued in Warrant Exchange Offer (in Percent)			50.00%
Warrants offered under Warrant Exchange Offer new warrant exercise price per share of new Warrants issued (in Dollars per Share)			$ 0.15

XML

Property and equipment, net

9 Months Ended

Jul. 31, 2014

Property and equipment, net [Abstract]

Property and equipment, net

3           Property and equipment, net

Our property and equipment consisted of the following:

	July 31, 2014			October 31, 2013
Furniture, fixtures and leasehold improvements	$	2,931		$	2,931
Equipment		605,007			594,795
Leased equipment		70,654			70,654
Total		678,592			668,380
Less accumulated depreciation		(644,243	)		(630,491	)
Net property and equipment	$	34,349		$	37,889

XML

BALANCE SHEETS (USD $)	Jul. 31, 2014		Oct. 31, 2013
Current assets
Cash	$ 44,751	[1]	$ 98,967
Accounts receivable	11,335	[1]	23,573
Inventory - net	220,341	[1]	240,232
Prepaid expenses and deposits	5,355		9,108
Total current assets	281,782	[1]	371,880
Property and equipment, net	34,349	[1]	37,889
Patents, net	48,074	[1]	51,559
Other assets	1,399	[1]	1,504
Total assets	365,604	[1]	462,832
Current liabilities
Accounts payable and accrued expenses	56,532	[1]	8,140
Deferred revenue - current	67,900	[1]	72,985
Total current liabilities	124,432	[1]	81,125
Total liabilities	124,432	[1]	81,125
Commitments and Contingencies		[1]
Stockholders' equity
Class A common stock - $.005 par value per share, 300,000,000 shares authorized and 64,973,458 outstanding at July 31, 2014 and 52,946,963 outstanding at October 31, 2013	324,865	[1]	264,732
Additional paid in capital	35,519,755	[1]	35,336,108
Accumulated (deficit)	(35,603,479)	[1]	(35,219,164)
Total stockholders' equity	241,172	[1]	381,707
Total liabilities and stockholders' equity	365,604	[1]	462,832
Preferred stock - undesignated - $.005 par value per share, 350,000 shares authorized and none outstanding
Stockholders' equity
Preferred stock		[1]
Preferred stock - series A - $.005 par value per share, 150,000 shares authorized and 6,250 outstanding at July 31, 2014 and at October 31, 2013
Stockholders' equity
Preferred stock	$ 31	[1]	$ 31

[1] Unaudited

XML

Basis of Presentation

9 Months Ended

Jul. 31, 2014

Basis of Presentation [Abstract]

Basis of Presentation

1. Basis of Presentation

The accompanying interim unaudited condensed financial statements include the accounts of CDEX Inc. as of July 31, 2014.  In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for a fair presentation of the results for the interim periods presented have been made. The results for the three-month and nine-month periods ended July 31, 2014 may not be indicative of the results for the entire year. The interim unaudited condensed financial statements should be read in conjunction with the Company's audited financial statements contained in our Annual Report on Form 10-K. Our lack of earnings history and continued future losses could adversely affect our financial position and if we are unable to generate funds or obtain funds on acceptable terms, we may not be able to continue operations.

The accompanying unaudited financial statements are presented pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading.

Recent Developments

We have experienced net losses since our inception and, as of July 31, 2014, had an accumulated deficit of approximately $36 million.  We do not expect to have positive cash flow from operations until we have deployed a sufficient number of our ValiMedTM G4 drug validation systems.  As of July 31, 2014, we had approximately $45,000 in cash provided primarily through proceeds from our Warrant Exchange Offer, where we offered to all Warrant holders with an exercise price of $0.10 per share an opportunity to exercise their warrants for $0.02 a share in exchange for the number of shares of common stock issuable under the warrant and a warrant for half the number of shares of common stock issuable under the exercised warrant with an exercise price of $0.15 a share.

Use of Estimates

The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its assumptions on historical experiences and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. In addition, management considers the basis and methodology used in developing and selecting these estimates, the trends in and amounts of these estimates, specific matters affecting the amount of and changes in these estimates, and any other relevant matters related to these estimates, including significant issues concerning accounting principles and financial statement presentation. Such estimates and assumptions could change in the future as more information becomes known which could impact the amounts reported and disclosed herein. Significant estimates include revenue recognition, the valuation of inventory and stock-based compensation expense.

Recent Accounting Pronouncements

The Company has reviewed, and continues to review, issued accounting pronouncements with the intent of adopting any that are applicable to it. The Company does not expect any recent pronouncements to have an impact on its results of operations or financial position.

XML

Inventory - Net (Schedule of Inventory) (Details) (USD $)	Jul. 31, 2014		Oct. 31, 2013
Inventory - Net [Abstract]
Raw materials	$ 174,461		$ 170,444
Finished goods	70,318		94,620
Subtotal	244,779		265,064
Obsolescence reserve	(24,438)		(24,832)
Total inventory	$ 220,341	[1]	$ 240,232

[1] Unaudited

XML

Patents, net (Schedule of Finite Lived Intangible Assets) (Details) (USD $)	Jul. 31, 2014		Oct. 31, 2013
Patents, net [Abstract]
Patents	$ 100,000		$ 100,000
Less accumulated amortization	(51,926)		(48,441)
Net patents	$ 48,074	[1]	$ 51,559

[1] Unaudited

XML

Inventory - Net

9 Months Ended

Jul. 31, 2014

Inventory - Net [Abstract]

Inventory - Net

2.           Inventory - Net

Our inventories consisted of the following:

	July 31, 2014			October 31, 2013
Raw materials	$	174,461		$	170,444
Finished goods		70,318			94,620
Subtotal		244,779			265,064
Obsolescence reserve		(24,438	)		(24,832	)
Total inventory	$	220,341		$	240,232

XML

BALANCE SHEETS (Parenthetical) (USD $)	Jul. 31, 2014	Oct. 31, 2013
Stockholders' equity
Common stock, par value per share (in Dollars per Share)	$ 0.005	$ 0.005
Common stock, shares authorized (in Shares)	300,000,000	300,000,000
Common stock, shares outstanding (in Shares)	64,973,458	62,946,963
Preferred stock - undesignated [Member]
Stockholders' equity
Preferred stock, par value per share (in Dollars per Share)	$ 0.005	$ 0.005
Preferred stock, shares authorized (in Shares)	350,000	350,000
Preferred stock, shares outstanding (in Shares)	0	0
Preferred stock - series A [Member]
Stockholders' equity
Preferred stock, par value per share (in Dollars per Share)	$ 0.005	$ 0.005
Preferred stock, shares authorized (in Shares)	150,000	150,000
Preferred stock, shares outstanding (in Shares)	6,250	6,250

XML

Property and equipment, net (Tables)

9 Months Ended

Jul. 31, 2014

Property and equipment, net [Abstract]

Schedule of Property and Equipment

Our property and equipment consisted of the following:

	July 31, 2014			October 31, 2013
Furniture, fixtures and leasehold improvements	$	2,931		$	2,931
Equipment		605,007			594,795
Leased equipment		70,654			70,654
Total		678,592			668,380
Less accumulated depreciation		(644,243	)		(630,491	)
Net property and equipment	$	34,349		$	37,889

XML

Document and Entity Information (USD $)	9 Months Ended
	Jul. 31, 2014	Sep. 09, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	CDEX INC
Entity Central Index Key	0001173738
Current Fiscal Year End Date	--10-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Jul. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		66,252,958
Common Stock, par value	$ 0.005
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

XML

Patents, net (Tables)

9 Months Ended

Jul. 31, 2014

Patents, net [Abstract]

Schedule of Patents

Our patents consisted of the following:

	July 31, 2014			October 31, 2013
Patents	$	100,000		$	100,000
Less accumulated amortization		(51,926	)		(48,441	)
Net patents	$	48,074		$	51,559

XML

STATEMENTS OF OPERATIONS (unaudited) (USD $)	3 Months Ended		9 Months Ended
	Jul. 31, 2014	Jul. 31, 2013	Jul. 31, 2014	Jul. 31, 2013
STATEMENTS OF OPERATIONS [Abstract]
Revenue	$ 27,207	$ 30,574	$ 153,491	$ 459,538
Cost of revenue	7,522	25,755	33,426	95,456
Gross profit	19,685	4,819	120,065	364,082
Operating Expenses
Selling, general and administrative	100,918	145,045	375,714	912,210
Research and development	44,320	35,542	135,471	95,087
Total operating expenses	145,238	180,587	511,185	1,007,297
Loss from operations	(125,553)	(175,768)	(391,120)	(643,215)
Other income
Other income		332	6,805	28,267
Total other income		332	6,805	28,267
Net loss	$ (125,553)	$ (175,436)	$ (384,315)	$ (614,948)
Basic net loss per common share (in Dollars per Share):	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.01)
Basic weighted average common shares outstanding (in Shares)	63,265,125	52,922,971	56,852,043	47,910,016

XML

Stockholders' Equity

9 Months Ended

Jul. 31, 2014

Stockholders' Equity [Abstract]

Stockholders' Equity

7.          Stockholders' Equity

During the three months ended January 31, 2014, there was no stock activity.  In February 2014, we issued 92,165 shares to each of our independent Directors under the CDEX Inc. Board Compensation Plan.  In the months April through July 2014, we issued 11,750,000 shares of common stock and 5,875,000 warrants to purchase common stock and cancelled 11,750,000 warrants to purchase common stock from our Warrant Exchange Offer where we offered to all warrant holders with an exercise price of $0.10 per share the opportunity to exercise their warrants for $0.02 a share in exchange for the number of shares of common stock issuable under the warrant and a 5-year warrant for half the number of shares of common stock issuable under the exercised warrant with an exercise price of $0.15 a share.

In the three months ended January 31, 2013, as a part of its Plan of Reorganization, the Company issued approximately 37.4 million shares of our Class A common stock and warrants to purchase 33.9 million shares of Class A common stock.  Also, in the three months ended January 31, 2013, as compensation for his efforts as the Company’s Medical Director, the Company issued Jason B. Terrell, 500,000 shares of its Class A common stock and a warrant to purchase 500,000 shares of Class A common stock for $0.10 a share effective for five years.

In the three months ended April 30, 2013, as a part of its Plan of Reorganization, the Company issued approximately 3.9 million shares of our Class A common stock and warrants to purchase 6.3 million shares of Class A common stock. As a part of this issuance under the Plan of Reorganization, approximately 1.8 million warrants were issued to Mr. Brumfield, the Company’s CEO, with an exercise price of $0.10 a share exercisable for five years from the date of issuance.

In the three months ended July 31, 2013, the Company issued approximately 144,000 shares of our Class A common stock that had been approved and accrued for prior to the finalization of the Bankruptcy Plan.  Additionally, approximately 67,000 shares were returned to the authorized and available shares because a creditor under the Bankruptcy Plan opted out of the Plan.

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Share-Based Compensation

9 Months Ended

Jul. 31, 2014

Share-Based Compensation [Abstract]

Share-Based Compensation

6.           Share-Based Compensation

For the three months ended July 31, 2014, share-based compensation expense was approximately $-0-.  For the nine months ended July 31, 2014, share-based compensation expense was approximately $9,000, which was primarily attributable to restricted stock grants issued to our independent Directors under the CDEX Inc. Board Compensation Plan.

For the three months ended July 31, 2013, share-based compensation expense was approximately $18,000, all of which was attributable to restricted stock grants issued for services. For the nine months ended July 31, 2013, share-based compensation expense was approximately $415,000, of which approximately $223,000 was attributable to options, $82,000 was attributable to warrants granted for services and $110,000 was attributable to restricted stock grants issued for services.

During the nine months ended July 31, 2014, 15,000 options were forfeited and approximately 276,000 shares of restricted stock were issued.

During the nine months ended July 31, 2013, 8,350,000 options were granted and 800,000 options were forfeited. During the period, options to purchase 8,000,000 shares of Class A common stock were granted to Mr. Brumfield, the Company’s CEO, with an exercise price of $0.05 a share exercisable for five years from the date of issuance and Mr. Brumfield forfeited the existing 800,000 options granted under his employment agreement. Additionally, options to purchase 150,000 and 200,000 shares of Class A common stock were, respectively, granted to Mr. Stevenson, a director of the Company and to Mr. McCommon, the Company’s CFO. These options have an exercise price of $0.05 a share and are exercisable for five years from the date of issuance.

We determine the fair value of share-based awards at their grant date, using a Black-Scholes Option Pricing Model applying the assumptions in the following table.  No options were granted for the nine months ended July 31, 2014. Actual compensation, if any, ultimately realized by option recipients may differ significantly from the amount estimated using an option valuation model.

	For the nine months ended July 31,
	2014	2013
Weighted average grant date fair value	$0.00	$0.06
Expected volatility	0%	75%
Expected dividends	0%	0%
Expected term (years)	-	5
Risk free rate	-	0.77% - 0.79%

As of July 31, 2014, there were no unrecognized compensation costs related to unvested restricted stock grants.

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Property and equipment, net (Schedule of Property Plant and Equipment) (Details) (USD $)	Jul. 31, 2014		Oct. 31, 2013
Property and equipment, net [Abstract]
Furniture, fixtures and leasehold improvements	$ 2,931		$ 2,931
Equipment	605,007		594,795
Leased equipment	70,654		70,654
Total	678,592		668,380
Less accumulated depreciation	(644,243)		(630,491)
Net property and equipment	$ 34,349	[1]	$ 37,889

[1] Unaudited

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Accounts Payable and Accrued Expenses (Tables)

9 Months Ended

Jul. 31, 2014

Accounts Payable and Accrued Expenses [Abstract]

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	July 31, 2014		October 31, 2013
Legal fees	$	4,648	$	240
Accrued compensation		18,119		625
Accounts payable		31,390		4,900
Accrued payable to a distributor		2,375		2,375
	$	56,532	$	8,140

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Basis of Presentation (Policies)

9 Months Ended

Jul. 31, 2014

Basis of Presentation [Abstract]

Basis of Presentation, Policy

Basis of Presentation

The accompanying interim unaudited condensed financial statements include the accounts of CDEX Inc. as of July 31, 2014.  In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for a fair presentation of the results for the interim periods presented have been made. The results for the three-month and nine-month periods ended July 31, 2014 may not be indicative of the results for the entire year. The interim unaudited condensed financial statements should be read in conjunction with the Company's audited financial statements contained in our Annual Report on Form 10-K. Our lack of earnings history and continued future losses could adversely affect our financial position and if we are unable to generate funds or obtain funds on acceptable terms, we may not be able to continue operations.

The accompanying unaudited financial statements are presented pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading.

Recent Developments, Policy

Recent Developments

We have experienced net losses since our inception and, as of July 31, 2014, had an accumulated deficit of approximately $36 million.  We do not expect to have positive cash flow from operations until we have deployed a sufficient number of our ValiMedTM G4 drug validation systems.  As of July 31, 2014, we had approximately $45,000 in cash provided primarily through proceeds from our Warrant Exchange Offer, where we offered to all Warrant holders with an exercise price of $0.10 per share an opportunity to exercise their warrants for $0.02 a share in exchange for the number of shares of common stock issuable under the warrant and a warrant for half the number of shares of common stock issuable under the exercised warrant with an exercise price of $0.15 a share.

Use of Estimates, Policy

Use of Estimates

The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its assumptions on historical experiences and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. In addition, management considers the basis and methodology used in developing and selecting these estimates, the trends in and amounts of these estimates, specific matters affecting the amount of and changes in these estimates, and any other relevant matters related to these estimates, including significant issues concerning accounting principles and financial statement presentation. Such estimates and assumptions could change in the future as more information becomes known which could impact the amounts reported and disclosed herein. Significant estimates include revenue recognition, the valuation of inventory and stock-based compensation expense.

Recent Accounting Pronouncements, Policy

Recent Accounting Pronouncements

The Company has reviewed, and continues to review, issued accounting pronouncements with the intent of adopting any that are applicable to it. The Company does not expect any recent pronouncements to have an impact on its results of operations or financial position.

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Commitments and Contingencies

9 Months Ended

Jul. 31, 2014

Commitments and Contingencies [Abstract]

Commitments and Contingencies

8.          Commitments and Contingencies

Litigation

We may from time to time be involved in legal proceedings arising from the normal course of business. As of the date of this report, we have not received notice of any other legal proceedings and the Company is not aware of any pending claims or assessments which may have a material adverse impact on the Company’s financial position or results of operations.

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Subsequent Events

9 Months Ended

Jul. 31, 2014

Subsequent Events [Abstract]

Subsequent Events

9. Subsequent Events

The Company’s management has evaluated subsequent events occurring after July 31, 2014, the date of our most recent balance sheet, through the date our financial statements were issued.  In August 2014, we issued 387,500 shares of common stock as consultant compensation and we received a $62,900 deposit to participate in our Warrant Exchange Offer and our Original Issuance Exchange Offer.  In September 2014, we issued 585,000 shares of common stock and 292,500 warrants to purchase common stock from our Warrant Exchange Offer where we offered to all Warrant holders with an exercise price of $0.10 per share to exercise their warrants for $0.02 per share in exchange for the number of shares of common stock issuable under the warrant and a 5-year warrant for half the number of shares of common stock issuable under the exercised warrant with an exercise price of $0.15 per share.  Also in September 2014 we issued 307,000 shares of common stock and 153,500 warrants to purchase common stock from our Original Issuance Exchange Offer where we offered to issue Class A common stock for $0.02 per share along with a 5-year warrant for half the number of shares of common stock issued with an exercise price of $0.15 per share.

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Inventory - Net (Tables)

9 Months Ended

Jul. 31, 2014

Inventory - Net [Abstract]

Schedule of Inventory

Our inventories consisted of the following:

	July 31, 2014			October 31, 2013
Raw materials	$	174,461		$	170,444
Finished goods		70,318			94,620
Subtotal		244,779			265,064
Obsolescence reserve		(24,438	)		(24,832	)
Total inventory	$	220,341		$	240,232

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Basis of Presentation (Narrative) (Details) (USD $)	9 Months Ended
	Jul. 31, 2014		Oct. 31, 2013	Jul. 31, 2013	Oct. 31, 2012
Basis of Presentation [Abstract]
Accumulated deficit	$ 35,603,479	[1]	$ 35,219,164
Cash	$ 44,751	[1]	$ 98,967	$ 250,876	$ 561,858
Warrant exercise price per share of previously issued warrants (in Dollars per Share)	$ 0.10
Exercise price of warrants in exchange for the number of shares of common stock issuable under warrant (in Dollars per Share)	$ 0.02
Warrant exercise price of warrant five year warrant offerede for old warrants (in Dollars per Share)	$ 0.15

[1] Unaudited

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Share-Based Compensation (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended
	Jul. 31, 2014	Jul. 31, 2013	Jul. 31, 2014	Jul. 31, 2013
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation	$ 0	$ 18,000	$ 8,780	$ 415,458
Restricted stock shares issued (in Shares)			276,000
Options granted in period (in Shares)			0	8,350,000
Number of options forfeited (in Shares)			15,000	800,000
Chief Executive Officer [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of options forfeited (in Shares)				800,000
Stock options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation				223,000
Stock options [Member] | Chief Executive Officer [Member] | Class A common stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted in period (in Shares)				8,000,000
Options granted, exercise price (in Dollars per Share)				$ 0.05
Maximum exercise period (in Duration)				P5Y
Stock options [Member] | Director [Member] | Class A common stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted in period (in Shares)				150,000
Options granted, exercise price (in Dollars per Share)				$ 0.05
Maximum exercise period (in Duration)				P5Y
Stock options [Member] | Chief Financial Officer [Member] | Class A common stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted in period (in Shares)				200,000
Options granted, exercise price (in Dollars per Share)				$ 0.05
Maximum exercise period (in Duration)				P5Y
Restricted stock grants [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation				110,000
Unrecognized compensation costs related to unvested restricted stock grants	0		0
Warrants [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation				$ 82,000

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STATEMENTS OF CASH FLOWS (unaudited) (USD $)	9 Months Ended
	Jul. 31, 2014		Jul. 31, 2013
Cash Flows from Operating Activities
Net loss	$ (384,315)		$ (614,948)
Adjustments to reconcile net loss to cash used by operating activities
Depreciation and amortization	17,237		23,432
Share-based compensation	8,780		415,458
Gain recognized on forgiveness of debt			(42,872)
Changes in operating assets and liabilities
Accounts receivable	12,238		7,645
Inventory	19,891		(58,400)
Deferred costs and other assets	3,858		(4,938)
Current liabilities	43,307		(36,359)
Net cash used by operating activities	(279,004)		(310,982)
Cash Flows from Investing Activities
Purchase of equipment	(10,212)
Net cash used by investing activities	(10,212)
Cash Flows from Financing Activities
Proceeds from warrant exchange offer	235,000
Net cash used by financing activities	235,000
Net decrease in cash	(54,216)		(310,982)
Cash, beginning of the period	98,967		561,858
Cash, end of the period	44,751	[1]	250,876
Supplemental Cash Flow Information
Issuance of previously accrued common stock			$ 22,790

[1] Unaudited

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Accounts Payable and Accrued Expenses

9 Months Ended

Jul. 31, 2014

Accounts Payable and Accrued Expenses [Abstract]

Accounts Payable and Accrued Expenses

5           Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	July 31, 2014		October 31, 2013
Legal fees	$	4,648	$	240
Accrued compensation		18,119		625
Accounts payable		31,390		4,900
Accrued payable to a distributor		2,375		2,375
	$	56,532	$	8,140

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Share-Based Compensation (Schedule of Share-Based Payment Award Stock Options Valuation Assumptions) (Details) (USD $)	9 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant date fair value (in Dollars per Share)	$ 0.00	$ 0.06
Expected volatility (in Percent)	0.00%	75.00%
Expected dividends (in Percent)	0.00%	0.00%
Expected term (in Duration)		5 years
Minimum risk free rate (in Percent)		0.77%
Maximum risk free rate (in Percent)		0.79%

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Share-Based Compensation (Tables)

9 Months Ended

Jul. 31, 2014

Share-Based Compensation [Abstract]

Schedule of Share-Based Awards, Fair Value Assumptions

	For the nine months ended July 31,
	2014	2013
Weighted average grant date fair value	$0.00	$0.06
Expected volatility	0%	75%
Expected dividends	0%	0%
Expected term (years)	-	5
Risk free rate	-	0.77% - 0.79%