Derivative Liabilities (Tables)

6 Months Ended

Jan. 31, 2016

Notes to Financial Statements

Derivative warrant liability

		Value		No. of Warrants
Balance at August 1, 2015 – Derivative warrant liability	$	2,363,415		512,911,037
Decrease in fair value of derivative warrant liability		(30,684	)	n/a
Balance at January 31, 2016 – Derivative warrant liability	$	2,332,731		512,911,037

Fair value assumptions, derivative warrant liability

	January 31, 2016			July 31, 2015
Current exercise price	$	0.015		$	0.015
Time to expiration		1.97 years			2.5 years
Risk-free interest rate		0.97	%		1.08	%
Estimated volatility		121	%		82	%
Dividend		-0-			-0-
Stock price at period end date	$	0.0076		$	0.01

Fair value assumptions, derivative additional investment rights liability

	January 31, 2016			July 31, 2015
Underlying number of units of convertible preferred stock		500			500
Underlying number of units of warrants		33,333,333			33,333,333
Current exercise price of warrants		0.015			0.015
Current conversion price of preferred stock		0.015			0.015
Time to expiration		0.55 years			1.05 years
Risk-free interest rate		0.43	%		0.30	%
Estimated volatility		149	%		79	%
Dividend		-0-			-0-
Stock price at period end date	$	0.0076		$	0.01