Summary of Significant Accounting Policies (Tables)

3 Months Ended

Oct. 31, 2013

Summary of Significant Accounting Policies [Abstract]

The following table presents the derivative financial instruments, the Company's only financial liabilities measured and recorded at fair value on the Company's balance sheets on a recurring basis, and their level within the fair value hierarchy as of October 31, 2013:

	Amount		Level 1		Level 2		Level 3
Embedded conversion derivative liability	$	36,735	$	-	$	-	$	36,735
Warrant derivative liabilities		482,665		-		-		482,665
Total	$	519,400	$	-	$	-	$	519,400

	Amount		Level 1		Level 2		Level 3
Embedded conversion derivative liability	$	9,666	$	-	$	-	$	9,666
Warrant derivative liabilities		-		-		-		-
Total	$	9,666	$	-	$	-	$	9,666

Summary of Changes in Fair Value

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs:

Balance at July 31, 2013	$	9,666
Fair value of warrant derivative liabilities at issuance		469,841
Settlement of derivative liability		(8,820	)
Unrealized derivative loss included in other expense		48,713
Balance at October 31, 2013	$	519,400

Schedule of Assumptions Used to Value Warrants

As of October 31, 2013, there were a total of 14,420,452 derivative warrants outstanding which were valued using the Black Scholes option pricing model using the following assumptions:

	October 31, 2013			July 31, 2013
Market value of stock on measurement date	$	0.042		$	0.0289
Risk-free interest rate		0.57 - 0.94	%		0.11	%
Dividend yield		0	%		0	%
Volatility factor		199 - 454	%		76.9	%
Term		3.0 - 3.9 years			0.493 years

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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