Accounts Payable and Accrued Expenses

6 Months Ended

Jan. 31, 2016

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

Note 4 – Accounts Payable and Accrued Expenses:

Accounts payable and accrued expenses consist of the following:

	January 31, 2016		July 31, 2015
Accounts Payable and Accruals - General and Administrative	$	3,679,408	$	3,156,951
Accounts Payable and Accruals - Research and Development		4,078,817		3,861,902
Accounts Payable and Accruals - Selling and Marketing		325,949		326,250
Accrued Make-whole Payments on Convertible Preferred Stock (see Note 7)		202,500		315,900
Executive Compensation and Directors’ Fees Payable		250,542		357,330
Total	$	8,537,216	$	8,018,333

On September 23, 2015, the Company signed an amendment to a letter agreement which was originally signed in September 2011 and extended in October 2012. The letter agreement agreed to convert an unsecured payable from May 2009 in the amount of approximately $1.1 million to a non-interest bearing balance of approximately $2.25 million included in Accounts Payable & Accruals - General and Administrative above. Per the original letter agreement, such balance will be settled in Antigen stock following the proposed spinout of Antigen. The September 23, 2015 amendment agreed to amend the total balance owing to approximately $3.15 million (from $2.54 million) in recognition of the party’s forbearance due to the delay in the proposed Antigen spinout. The additional charge of approximately $610,000 was recognized as a general and administrative expense in the Company’s fiscal quarter ended October 31, 2015.

In the six months ended January 31, 2015 the Company had a gain on extinguishment of debt of $327,839 related to the final settlement of a previously owed balance to a vendor. This is reported on the Company’s consolidated statement of operations under the caption “Gain on extinguishment of debt” and is included in the changes in accounts payable and accrued expenses category in the consolidated statement of cash flows.