CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
|
12 Months Ended |
Jul. 31, 2015 |
Jul. 31, 2014 |
| Cash flows from operating activities: |
|
|
| Net loss |
$ (4,157,835)
|
$ (467,751)
|
| Adjustment to reconcile net loss to net cash used in operating activities: |
|
|
| Depreciation |
40,215
|
24,151
|
| Amortization of intangible assets |
781,380
|
157,800
|
| Stock-based compensation expense |
366,395
|
39,382
|
| Change in fair value of derivative liabilities |
333,618
|
0
|
| Gain on conversion of convertible debt to common stock |
(25,317)
|
0
|
| Non-cash interest expense relating to convertible debt and amortization of debt discount |
261,871
|
0
|
| Issuance of common stock in exchange for consulting services |
468,400
|
47,000
|
| Issuance of common stock to advisory board |
280,000
|
50,000
|
| Common stock issued to employees |
4,780
|
0
|
| Issuance of common stock to investors as a commitment fee |
95,000
|
0
|
| Provision for bad debt |
262
|
0
|
| Provision for inventory |
(2,081)
|
2,128
|
| Changes in operating assets and liabilities: |
|
|
| Accounts receivable |
(1,623)
|
191,345
|
| Inventory |
40,672
|
23,485
|
| Prepaid expenses and other assets |
(134,879)
|
115,634
|
| Accounts payable and accrued liabilities |
239,566
|
80,296
|
| Deferred revenue |
130,079
|
(380,000)
|
| Advance from development partner |
180,635
|
0
|
| Increase / (Decrease) in operating liabilities: |
|
|
| Net cash used in operating activities |
(1,098,862)
|
(116,530)
|
| Cash flows from investing activities: |
|
|
| Purchases of property and equipment |
0
|
(106,513)
|
| Developed Intangibles |
(343,910)
|
0
|
| Net cash used in investing activities |
(343,910)
|
(106,513)
|
| Cash flows from financing activities: |
|
|
| Proceeds from issuance of convertible debt |
827,475
|
0
|
| Proceeds from sale of common stock |
127,500
|
75,000
|
| Payments on capital Leases |
(19,022)
|
0
|
| Proceeds from note payable (Auto Loan) |
0
|
74,712
|
| Payments on note payable (Auto Loan) |
(13,269)
|
0
|
| Proceeds from issuance of note payable to employee |
50,000
|
0
|
| Net cash provided by financing activities |
972,684
|
149,712
|
| Net decrease in cash and cash equivalents |
(470,088)
|
(73,331)
|
| Cash and cash equivalents, beginning of period |
523,540
|
596,871
|
| Cash and cash equivalents, end of period |
53,452
|
523,540
|
| Supplemental information: |
|
|
| Income taxes paid |
0
|
0
|
| Interest paid |
6,523
|
2,790
|
| Noncash investing and financing activities: |
|
|
| Fixed assets acquired pursuant to capital leases |
97,649
|
0
|
| Embedded derivative liabilities issued in connection with convertible debt |
626,018
|
0
|
| Issuance of common stock in connection with convertible debt |
137,000
|
0
|
| Conversion of preferred stock, Series A, to common stock |
10,000
|
0
|
| 6% dividend for preferred stock Series B holders issued in common stock |
1,891
|
3,625
|
| Conversion of debt into common stock |
$ 65,000
|
$ 0
|