XML 40 R5.htm IDEA: XBRL DOCUMENT v2.4.0.8
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
6 Months Ended
Jul. 31, 2014
Jul. 31, 2013
Cash flows from operating activities:    
Net income (loss) $ 4,631,342 $ (1,027,717)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 14,489 16,454
Amortization of deferred financing charges 22,831 0
Amortization of debt discount 225,953 0
(Gain) loss on settlement of debt (5,322,943) 0
(Gain) loss on change in fair value of warrant liability (262,912) 19,222
Share based compensation 5,616 47,828
Common shares issued for third party services 17,500 0
Warrants issued for third party services 6,440 0
Changes in assets and liabilities:    
Prepaid expenses and supplies 1,256 2,070
Accounts payable and accrued expenses 44,834 77,615
Accrued wages related parties 32,000 35,500
Accrued interest 157,680 238,078
Cash flows used in operating activities: (425,914) (590,950)
Cash flows from investing activities:    
Purchase of equipment (6,369) (1,418)
Net cash used in investing activities (6,369) (1,418)
Cash flows from financing activities:    
Payments on long-term debt (2,731) (2,485)
Principal activity on convertible promissory notes 75,000 0
Proceeds from the issuance of common stock, net of expenses 474,250 672,043
Net cash provided by financing activities 546,519 669,558
Increase (decrease) in cash and cash equivalents 114,236 77,190
Cash and cash equivalents, beginning of period 55,089 117,716
Cash and cash equivalents, end of period 169,325 194,906
Non-cash financing activities    
Income tax paid 0 0
Interest paid during the period 6,916 777
Stock subscription receivable 55,673 25,000
Resolutions of derivative liabilities due to debt conversions 146,524 0
Warrants reclassed to derivative liabilities 520,552 0
Debt discounts due to derivative liabilities 325,031 0
Common stock issued for conversion of debt and interest 242,918 0
Original issue discount $ 10,500 $ 0