Stockholders' Equity

6 Months Ended

Jan. 31, 2015

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 7,846 shares to consultants for services rendered. The shares have a fair value of $44,723 based on stock prices at issuance dates.

In December 2014, the Company issued 24,015 shares to a company for services rendered. The shares have a fair value of $91,258 based on the stock prices at issuance dates.

In January 2015, the Company issued a total of 5,000 shares to two consultants for services rendered. The shares have a fair value of $19,720 based on the 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 six months ended January 31, 2015 was $0.

On August 2, 2014, the Company granted 30,000 stock options with an exercise price of $10.00 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 six months ended January 31, 2015. The assumptions used in the valuation were as follows:

On November 12, 2014, the Company granted 30,000 stock options with an exercise price of $10.00 per share to a consultant for services rendered. These options have a term of 5 years and vest over 3 years. The Company has valued these options using the Black-Scholes option pricing model which resulted in a fair market value of $115,499, of which $9,625 has been fully recognized as expense for the six months ended January 31, 2015.

On November 12, 2014, the Company granted 20,000 stock options with an exercise price of $15.00 per share to a consultant for services rendered. These options have a term of 5 years and vest over three years. The Company has valued these options using the Black-Scholes option pricing model which resulted in a fair market value of $76,999, of which $6,148 has been fully recognized as expense for the six months ended, January 31, 2015.

On January 9, 2015, the Company granted 15,000 stock options with an exercise price of $10.00 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 $65,163 which have been fully recognized as expense for the six months ended January 31, 2015.

On January 25, 2015, the Company granted 10,000 stock options with an exercise price of $10.00 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 $36,169 which have been fully recognized as expense for the six months ended January 31, 2015.

The Company also recognized stock based compensation expense of $37,046 in connection with vested options granted in prior periods.

The assumptions used in the valuation for all of the options granted for the six months ended January 31, 2015 were as follows:

Market value of stock on measurement date	$	3.75 to 5.80
Risk-free interest rate		1.28 to 1.73	%
Dividend yield		0	%
Volatility factor		204% to 413	%
Term		5.0 years

Stock option activity for six months ended January 31, 2015 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		3,047,500		9.00		8.56	$	12,000
Granted		105,000		10.00		5.00
Forfeited/expired/cancelled		(85,000)		11.21		-
Outstanding at January 31, 2015		3, 067,500		9.00		8.27	$	-
Exercisable at January 31, 2015		1,570,416		10.00		8.19	$	-

Warrants

On December 16, 2015, the Company granted 38,800 stock options with an exercise price of $8.00 per share to a consultant for services rendered. These options have a term of 10 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 $144,724 which have been fully recognized as expense for the six months ended January 31, 2015.

Warrant activity for quarter ended January 31, 2015 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		1,254,752		20.00		4.33	$	-
Granted		38,800		8.00		-
Exercised		-		-		-
Outstanding at January 31, 2015		1,293,552		20.00		4.33	$	-
Exercisable at January 31, 2015		568,552		20.00		4.08	$	-