CAPITAL STOCK

9 Months Ended

Apr. 30, 2016

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 10: CAPITAL STOCK

Equity Financing

During Fiscal 2014, the Company filed a Form S-3 “Shelf” Registration Statement effective January 10, 2014 (the “2014 Shelf”) providing for the public offer and sale of certain securities of the Company from time to time, at its discretion, up to an aggregate offering of $100 million.

On March 10, 2016, the Company completed a registered offering of 12,364,704 units at a price of $0.85 per unit for gross proceeds of $10,510,000 pursuant to a prospectus supplement to the 2014 Shelf. Each unit is comprised of one share of the Company and half of one share purchase warrant, with each whole warrant being exercisable at a price of $1.20 to purchase one share of the Company totaling 6,182,351 for a three year period from the date of issuance. The Company issued share purchase warrants to agents as part of share issuance costs to purchase 411,997 shares of the Company exercisable at a price of $1.20 per share also for a three year period from the date of issuance.

The shares were valued at the Company’s closing price of $0.81 per share at March 10, 2016. The share purchase warrants were valued using the Black-Scholes option pricing model with the following assumptions:

Expected Risk Free Interest Rate	1.11	%
Expected Annual Volatility	74.34	%
Expected Contractual Life in Years	3.00
Expected Annual Dividend Yield	0.00	%

The net proceeds from the 2014 Shelf equity financing were allocated to the fair values of the shares and share purchase warrants as presented below:

Fair Value of Shares	$	10,015,410
Fair Value of Share Purchase Warrants		1,938,995
Total Fair Value Before Allocation to Net Proceeds	$	11,954,405
Gross Proceeds	$	10,510,000
Share Issuance Costs - Cash		(525,482)
Net Cash Proceeds Received	$	9,984,518
Relative Fair Value Allocation to:
Shares	$	8,365,038
Share Purchase Warrants		1,619,480
	$	9,984,518

At April 30, 2016, a total of $35.1 million of the 2014 Shelf was utilized through the following registered offerings and sales of units, with a remaining available balance of $64.9 million under the 2014 Shelf.

· on June 25, 2015: $10.0 million in gross proceeds through an offering of units consisting of the Company’s shares and share purchase warrants and $6.7 million representing the aggregate exercise price of those share purchase warrants and agents’ share purchase warrants should they be exercised in full; and

· on March 10, 2016: $10.5 million in gross proceeds through an offering of units consisting of the Company’s shares and share purchase warrants and $7.9 million representing the aggregate exercise price of those share purchase warrants and agents’ share purchase warrants should they be exercised in full.

Share Transactions

A summary of the Company’s share transactions for the three and nine months ended April 30, 2016 are as follows:

	Common		Value per Share				Issuance
Period / Description	Shares Issued		Low		High		Value
Balance, July 31, 2015		97,834,087
Bonus Shares for Credit Facility		752,320	$	1.20	$	1.20	$	900,000
Consulting Services		274,982		1.03		1.38		305,594
Share Compensation		33,315		1.00		1.12		35,264
Balance, October 31, 2015		98,894,704
Consulting Services		581,421		0.72		1.12		608,179
Share Compensation		71,588		1.06		1.08		76,236
Options Exercised		682,167		0.33		0.33		225,115
Balance, January 31, 2016		100,229,880
Second Extension Fee Shares for Credit Facility		959,613		0.83		0.83		800,000
Settlement of Current Liabilities		487,574		0.93		0.93		453,444
Equity Financing		12,364,704		0.85		0.85		10,510,000
Asset Acquisition		1,333,560		0.92		0.92		1,226,875
Consulting Services		514,440		0.73		0.93		424,316
Share Compensation		202,884		0.75		0.96		167,830
Balance, April 30, 2016		116,092,655

Share Purchase Warrants

A summary of share purchase warrants outstanding and exercisable at April 30, 2016 are as follows:

	Weighted Average Exercise Price	Number of Warrants Outstanding		Expiry Date	Weighted Average Remaining Contractual Life (Years)
$	1.20		6,594,348	March 10, 2019	2.86
	1.35		2,600,000	January 30, 2020	3.75
	1.95		50,000	June 3, 2018	2.09
	2.12		2,850,000	June 25, 2018	2.15
	2.60		1,859,524	October 23, 2016	0.48
$	1.61		13,953,872		2.56

Stock Options

At April 30, 2016, the Company had one stock option plan, the 2015 Stock Incentive Plan (the “2015 Plan”). The 2015 Plan provides for up to 9,600,250 shares of the Company that may be issued pursuant to awards that may be granted together with an additional 10,569,301 shares of the Company that may be issued pursuant to stock options previously granted under the Company’s prior 2014 Stock Incentive Plan (the “2014 Plan”). The 2015 Plan supersedes and replaces the Company’s prior 2014 Plan, which superseded and replaced the Company’s prior 2013, 2009 and 2006 Stock Incentive Plans, such that no further shares are issuable under those prior plans.

A summary of stock options granted by the Company during the nine months ended April 30, 2016, including corresponding grant date fair values and assumptions using the Black Scholes option pricing model is as follows:

	Options		Exercise		Term		Fair		Expected		Risk-Free			Dividend			Expected
Date	Issued		Price		(Years)		Value		Life (Years)		Interest Rate			Yield			Volatility
August 7, 2015		105,000	$	1.32		5	$	68,824		2.90		1.04	%		0.00	%		77.17	%
October 14, 2015		1,000,000		1.14		5		563,195		2.90		0.81	%		0.00	%		77.01	%
January 12, 2016		300,000		0.98		5		145,902		2.90		1.15	%		0.00	%		76.96	%
Total		1,405,000					$	777,921

A continuity schedule of outstanding stock options for the underlying common shares for the nine months ended April 30, 2016 is as follows:

	Number of Stock Options		Weighted Average Exercise Price
Balance, July 31, 2015		10,581,975	$	1.38
Issued		1,105,000		1.16
Forfeited		(5,000)		1.32
Balance, October 31, 2015		11,681,975		1.36
Issued		300,000		0.98
Exercised		(682,167)		0.33
Forfeited		(180,000)		1.32
Expired		(1,950)		5.90
Balance, January 31, 2016		11,117,858		1.42
Forfeited		(72,500)		1.81
Balance, April 30, 2016		11,045,358	$	1.41

At April 30, 2016, the aggregate intrinsic value under the provisions of ASC 718 of all outstanding stock options was estimated at $439,068 (vested: $439,068 and unvested: $Nil).

At April 30, 2016, unrecognized stock-based compensation expense related to the unvested portion of stock options granted under the Company’s 2015 Plan totaled $226,003 to be recognized over the next 0.76 years.

A summary of stock options outstanding and exercisable at April 30, 2016 is as follows:

	Options Outstanding						Options Exercisable
			Weighted		Weighted Average				Weighted		Weighted Average
			Average		Remaining				Average		Remaining
Range of	Outstanding at		Exercise		Contractual Term		Exercisable at		Exercise		Contractual Term
Exercise Prices	April 30, 2016		Price		(Years)		April 30, 2016		Price		(Years)
$0.45 to $0.96		1,269,634	$	0.47		1.56		1,269,634	$	0.47	1.56
$0.97 to $2.45		8,840,000		1.35		3.54		8,057,500		1.37	3.44
$2.46 to $5.70		935,724		3.29		4.09		935,724		3.29	4.09
		11,045,358	$	1.41		3.36		10,262,858	$	1.44	3.27

Stock-Based Compensation

A summary of stock-based compensation expense is as follows:

	Three Months Ended April 30				Nine Months Ended April 30
	2016		2015		2016		2015
Stock-Based Compensation for Consultants
Common stock issued for consulting services	$	470,549	$	502,854	$	1,429,324	$	1,380,279
Stock options issued to consultants		(4,461)		346,995		66,317		721,430
		466,088		849,849		1,495,641		2,101,709
Stock-Based Compensation for Management
Common stock issued to management		45,299		-		81,495		-
Stock options issued to management		195,464		263,306		640,789		1,424,585
		240,763		263,306		722,284		1,424,585
Stock-Based Compensation for Employees
Common stock issued to employees		76,299		-		106,602		-
Stock options issued to employees		15,710		204,723		163,124		1,102,250
		92,009		204,723		269,726		1,102,250
	$	798,860	$	1,317,878	$	2,487,651	$	4,628,544