Stockholders' Equity

3 Months Ended

Oct. 31, 2014

Stockholders' Equity [Abstract]

Stockholders' Equity

6. Stockholders' Equity

Common Stock

On November 26, 2014, the Company amended its articles of incorporation to increase its authorized capital stock from 200,000,000 common shares to 1,000,000,000 common shares.

In August 2014, the Company issued 784,615 shares to consultants for services rendered. The shares have a fair value of $44,723 based on stock prices at issuance dates.

Stock Based Compensation

As required by the Stock Compensation Topic, ASC 718, the Company measures and recognizes compensation expense for all share based payment awards made to the officers and directors based on estimated fair values. Stock based compensation expense recognized for the three months ended October 31, 2014 was $173,999.

On August 2, 2014, the Company granted 3,000,000 stock options with an exercise price of $0.10 per share to a consultant for services rendered. These options have a term of 5 years and vested immediately. The Company has valued these options using the Black Scholes option pricing model which resulted in a fair market value of $173,999 which have been fully recognized as expense for the three months ended, October 31, 2014. The assumptions used in the valuation were as follows:

Market value of stock on measurement date	$	0.058
Risk-free interest rate		1.73	%
Dividend yield		0	%
Volatility factor		413	%
Term		5.0 years

Stock option activity for three months ended October 31, 2014 is presented in the table below:

	Number of Shares		Weighted- average Exercise Price		Weighted- average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at July 31, 2014		304,750,000		0.09		8.56	$	12,000
Granted		3,000,000		0.10		5.00
Forfeited/expired/cancelled		-		-		-
Outstanding at October 31, 2014		307,750,000		0.09		8.27	$	-
Exercisable at October 31, 2014		162,025,000		0.10		8.19	$	-

Warrants

Warrant activity for quarter ended October 31, 2014 is presented in the table below:
 

	Number of Shares		Weighted- average Exercise Price		Weighted- average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at July 31, 2014		125,475,239		0.20		4.33	$	-
Granted		-				-
Exercised		-				-
Outstanding at October 31, 2014		125,475,239		0.20		4.33	$	-
Exercisable at October 31, 2014		52,975,239		0.20		4.08	$	-