Derivative Liabilities (Tables)

3 Months Ended

Oct. 31, 2014

Notes to Financial Statements

Derivative warrant liability

		Value		No. of Warrants
Balance at August 1, 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		(3,362,497	)	n/a
Balance at July 31, 2014 – Derivative warrant liability	$	2,635,643		239,788,852
Decrease in fair value of derivative warrant liability		(517,466	)	n/a
Balance at October 31, 2014 – Derivative warrant liability	$	2,118,177		239,788,852

Fair value assumptions, derivative warrant liability

		October 31, 2014			July 31, 2014
Current exercise price	$	0.03		$	0.03
Time to expiration		3.1 years			3.3 years
Risk-free interest rate		0.95	%		1.02	%
Estimated volatility		72	%		80	%
Dividend		0			0
Stock price at period end date	$	0.0201		$	0.021

Fair value assumptions, derivative additional investment rights liability

		October 31, 2014			July 31, 2014
Underlying number of units of convertible preferred stock		2,075			2,075
Underlying number of units of warrants		69,166,667			69,166,667
Current exercise price of warrants	$	0.03		$	0.03
Current conversion price of preferred stock	$	0.03		$	0.03
Time to expiration		0.40 years			0.65 years
Risk-free interest rate		0.05	%			%
Estimated volatility		57	%		61	%
Dividend		0			0
Stock price at period end date	$	0.0201		$	0.021