Derivative Liabilities (Tables)

3 Months Ended

Apr. 30, 2014

Notes to Financial Statements

Derivative warrant liability

	Value	No. of Warrants
Balance at August 1, 2012 – Derivative warrant liability	$   4,081,627	55,148,530
Additional warrants issued in August 2012 financing	624,797	9,375,000
Additional warrants issued in December 2012 financing	762,355	24,999,999
Additional warrants issued in June 2013 financing	1,189,744	40,833,335
Additional warrants from price protection features of existing warrants	7,484,550	236,219,094
Exercise of warrants	(5,629,130)	(145,888,421)
Decrease in fair value of derivative warrant liability	(3,279,650)	n/a
Balance at July 31, 2013 – Derivative warrant liability	$   5,234,293	220,687,537
Exercise of warrants	(2,194,496)	(76,732,020)
Additional warrants issued in January 2014 financing	942,279	26,666,668
Additional warrants issued in March 2014 financing	2,016,064	69,166,667
Decrease in fair value of derivative warrant liability	(298,370)	n/a
Balance at April 30, 2014 – Derivative warrant liability	$  5,699,770	239,788,852

Fair value assumptions, derivative warrant liability

	April 30, 2014			July 31, 2013
Current exercise price	$	0.03		$	0.03
Time to expiration		3.6 years			3.5 years
Risk-free interest rate		0.91	%		0.49	%
Estimated volatility		82	%		85	%
Dividend		-0-			-0-
Stock price at period end date	$	0.035		$	0.035

Fair value assumptions, derivative additional investment rights liability

	April 30, 2014			July 31, 2013
Underlying number of units of convertible preferred stock		2,500			1,225
Underlying number of units of warrants		83,333,334			40,833,335
Current exercise price of warrants	$	0.03		$	0.03
Current conversion price of preferred stock	$	0.03		$	0.03
Time to expiration		0.78 years			0.88 years
Risk-free interest rate		0.10	%		0.11	%
Estimated volatility		52	%		114	%
Dividend		-0-			-0-
Stock price at period end date	$	0.035		$	0.035