Stockholders' Equity

9 Months Ended

Apr. 30, 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.

In March 2015, the Company issued a total of 20,900 shares to two companies and a consultant for services rendered. The shares have a fair value of $141,130 based on the stock prices at issuance dates.

In April 2015, the Company issued 1,232 shares to a consultant for services rendered. The shares have a fair value of $8,994 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 nine months ended April 30, 2015 was $0.

On August 2, 2014, the Company granted 30,000 cashless 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 nine months ended April 30, 2015.

On November 12, 2014, the Company granted 30,000 cashless 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 $188,825, of which $77,710 has been fully recognized as expense for the nine months ended April 30, 2015.

On November 12, 2014, the Company granted 20,000 cashless 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 $127,150, of which $52,285 has been fully recognized as expense for the nine months ended April 30, 2015.

On January 9, 2015, the Company granted 15,000 cashless 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 nine months ended April 30, 2015.

On January 25, 2015, the Company granted 10,000 cashless 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 nine months ended April 30, 2015.

On March 19, 2015, the Company granted 48,000 cashless 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 $282,227 which have been fully recognized as expense for the nine months ended April 30, 2015.

On March 19, 2015, the Company granted 32,000 cashless 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 vested immediately. The Company has valued these options using the Black-Scholes option pricing model which resulted in a fair market value of $186,655 which have been fully recognized as expense for the nine months ended April 30, 2015.

The Company also recognized stock based compensation expense of $37,048 in connection with vested options granted in prior periods.

The assumptions used in the valuation for all of the options granted for the nine months ended April 30, 2015 were as follows:

Market value of stock on measurement date	$	3.75 to 6.10
Risk-free interest rate		1.48 to 1.73	%
Dividend yield		0	%
Volatility factor		195% to 407	%
Term		5.0 years

Stock option activity for nine months ended April 30, 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
Granted		185,000			11.41
Forfeited/expired/cancelled		(85,000	)		11.21
Outstanding at April 30, 2015		3,147,500			9.42		7.84	$	285,000
Exercisable at April 30, 2015		1,654,583			10.40		7.90	$	285,000

A summary of the status of the Company's non-vested options as of April 30, 2015 and changes during the nine months ended April 30, 2015 are presented below:

Non-vested options	Number of Options			Weighted Average Grant Date Fair Value
				$
Non-vested at July 31, 2014		17,500			3.11
Granted		185,000			5.06
Vested		(160,833	)		5.17
Non-vested at April 30, 2015		41,667			3.85

At April 30, 2015, there was $185,980 of unrecognized compensation costs related to non-vested share-based compensation arrangements.

Warrants

On December 16, 2015, the Company issued 38,800 stock warrants with an exercise price of $8.00 per share to a consultant for services rendered. These warrants have a term of 10 years and vested immediately. The Company has valued these warrants 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 nine months ended April 30, 2015.

On March 19, 2015, the Company issued 45,000 stock warrants with an exercise price of $10.00 per share to a consultant for services rendered. These warrants have a term of 10 years and vested immediately. The Company has valued these warrants using the Black-Scholes option pricing model which resulted in a fair market value of $264,588 which have been fully recognized as expense for the nine months ended April 30, 2015.

Warrant activity for quarter ended April 30, 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	$	-
Issued		83,800		9.07		-		-
Exercised		-				-		-
Outstanding at April 30, 2015		1,338,552		19.53		3.80	$	-
Exercisable at April 30, 2015		613,552		24.88		5.14	$	-