Income Taxes (Tables)
 12 Months Ended
Jul. 31, 2012
Income Taxes  
Schedule of significant components of deferred tax assets

 

 

 

2012

 

2011

 

Net operating loss carryforwards

 

1,986,000

 

207,000

 

Credits

 

124,000

 

31,000

 

Start-up costs

 

72,000

 

74,000

 

Accumulated Depreciation

 

282,000

 

71,000

 

Other

 

129,000

 

11,000

 

Net deferred tax assets

 

2,593,000

 

394,000

 

Valuation allowance for deferred tax assets

 

(2,593,000

)

(394,000

)

Net deferred taxes

 

$

—

 

$

—

 
Schedule of reconciliation of incomes taxes using the statutory income tax rate, compared to the effective rate

 

 

 

 

2012

 

2011

 

Federal tax benefit a the expected statutory rate

 

34.00

%

34.00

%

State income tax, net of federal tax benefit

 

(0.07

)%

(3.08

)%

Loss on extinguishment of debt

 

(11.48

)%

—

 

Adjustment to fair value of derivative liabilities

 

63.20

%

(18.64

)%

Non-deductible expenses

 

(6.63

)%

(0.45

)%

Change in valuation allowance

 

(81.58

)%

(9.93

)%

Other

 

2.45

%

(1.92

)%

Income tax benefit — effective rate

 

(0.11

)%

(0.02

)%