Summary of Significant Accounting Policies

9 Months Ended

Apr. 30, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

3.           Summary of Significant Accounting Policies

Basis of Presentation and Use of Estimates

The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Basic and Diluted Net Income (Loss) Per Share

Earnings (loss) per share is calculated by dividing the net income (loss) available to common stockholders by the weighted average number of shares outstanding during the year. Diluted earnings per share reflect the potential dilution of securities that could share in earnings of an entity. Diluted income per share reflects the potential dilution that would occur if outstanding stock options and warrants were exercised utilizing the treasury stock method. In a loss year, dilutive common equivalent shares are excluded from the loss per share calculation as the effect would be anti-dilutive.

A reconciliation of the components of basic and diluted net income (loss) per common share is presented in the tables below:

	For the Three Months Ended April 30,
	2016						2015
	Income  (Loss) $		Weighted Average Common Shares Outstanding		Per Share  $		Income (Loss) $		Weighted Average Common Shares Outstanding		Per Share $
Basic:
Income (loss) attributable to common stock		416,128		1,916,554		0.22		(1,850,695)		1,830,134		(1.01)
Effective of Dilutive Securities:
Stock options and warrants		–		818,206		–		–		–		–
Diluted:
Income (loss) attributable to common stock, including assumed conversions		416,128		2,734,760		0.15		(1,850,695)		1,830,134		(1.01)

	For the Nine Months Ended April 30,
	2016						2015
	Income (Loss) $		Weighted Average Common Shares Outstanding		Per Share $		Income  (Loss) $		Weighted Average Common Shares Outstanding		Per Share $
Basic:
Income (loss) attributable to common stock		(6,723,849)		1,882,088		(3.57)		(5,401,646)		1,803,634		(2.99)
Effective of Dilutive Securities:
Stock options and warrants		–		–		–		–		–		–
Diluted:
Income (loss) attributable to common stock, including assumed conversions		(6,723,849)		1,882,088		(3.57)		(5,401,646)		1,803,634		(2.99)

Recently Issued Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position or results of operations.