Summary of Significant Accounting Policies (Policies)

9 Months Ended

Apr. 30, 2017

Basis of Presentation and Use of Estimates

Basis of Presentation and Use of Estimates

The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the U.S. (“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 consolidated financial statements, and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Opiant Pharmaceuticals UK Limited, a company incorporated on November 4, 2016 under the England and Wales Companies Act of 2006. Intercompany balances and transactions are eliminated upon consolidation.

Basic and Diluted Net Income (Loss) Per Share

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 period. 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,
	2017						2016
			Weighted						Weighted
			Average						Average
			Common						Common
	Loss		Shares		Per Share		Income		Shares		Per Share
	$		Outstanding		$		$		Outstanding		$
Basic:
Income (loss) attributable to common stock		(3,129,608)		2,014,141		(1.55)		416,128		1,916,554		0.22
Effective of Dilutive Securities:
Stock options and warrants		–		–		–		–		818,206		–

Diluted:
Income (loss) attributable to common stock, including assumed conversions		(3,129,608)		2,014,141		(1.55)		416,128		2,734,760		0.15

	For the Nine Months Ended April 30,
	2017						2016
			Weighted						Weighted
			Average						Average
			Common						Common
	Income		Shares		Per Share		Loss		Shares		Per Share
	$		Outstanding		$		$		Outstanding		$
Basic:
Income (loss) attributable to common stock		6,919,554		2,004,143		3.45		(6,723,849)		1,882,088		(3.57)
Effective of Dilutive Securities:
Stock options and warrants		–		246,984		–		–		–		–

Diluted:
Income (loss) attributable to common stock, including assumed conversions		6,919,554		2,251,127		3.07		(6,723,849)		1,882,088		(3.57)

Reclassification of Financial Statement Accounts

Reclassification of Financial Statement Accounts

Certain amounts in the April 30, 2016 financial statements have been reclassified to conform to the presentation in the April 30, 2017 consolidated financial statements.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated 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.