7. Convertible Notes Payable (Tables)

6 Months Ended

Jan. 31, 2013

Schedule of Debt [Table Text Block]

In summary, the following debt is outstanding and consists of:

Convertible note, original face value of $25,000, dated February 2, 2012, maturing July 30, 2013, 12% interest rate, deferred financing cost of $2,500 ratably charged to interest, unamortized $0, debt discount of $19,550 amortized to interest, unamortized $0, convertible at 30% discount to market.  If converted as of January 31, 2013, it would represent approximately 452,000 additional shares.  Interest accrued to date is $3,000.	25,000
Convertible note, original face value of $56,000, dated May 30, 2012, maturing December 15, 2012, 10% interest rate, deferred financing cost of $6,000 ratably charged to interest, unamortized $0, debt discount of $30,488 amortized to interest, unamortized $0, convertible at 30% discount to market. If converted as of January 31, 2013, it would represent approximately 705,000 additional shares.  Interest accrued to date is $2,628. Partial conversion, in the amount of $17,010, into common shares were exercised during the 2013 year.	38,990
Convertible note, original face value of $55,000, dated June 27, 2012, maturing June 27, 2013, 5% interest rate, deferred financing cost of $5,000 ratably charged to interest, unamortized $2,014, debt discount of $52,792 amortized to interest, unamortized $11,654, convertible at 30% discount to market. If converted as of January 31, 2013, it would represent approximately 670,000 additional shares.  Interest accrued to date is $1,107. Partial conversion, in the amount of $17,940, into common shares were exercised during the 2013 year.	23,362
Convertible note, original face value of $168,000, dated July 26, 2012, maturing January 26, 2013, 8% interest rate, deferred financing cost of $15,000 ratably charged to interest, unamortized $0, convertible at $.16 per share. If converted as of January 31, 2013, it would represent approximately 822,000 additional shares.  Interest accrued to date is $5,233. Partial conversion, in the amount of $41,664, into common shares were exercised during the 2013 year.	126,336
Convertible note, original face value of $25,000, dated August 1, 2012, maturing March 2, 2013, 10% interest rate, deferred financing cost of $2,500 ratably charged to interest, unamortized $352, debt discount of $25,000 amortized to interest, unamortized $3,521, convertible at 50% discount to market. If converted as of January 31, 2013, it would represent approximately 633,000 additional shares.  Interest accrued to date is $1,253.	21,127
Convertible note, original face value of $75,000, dated September 19, 2012, maturing September 19, 2013, 6% interest rate, deferred financing cost of $4,750 ratably charged to interest, unamortized $3,006, debt discount of $75,000 amortized to interest, unamortized $37,113, convertible at 30% discount to market. If converted as of January 31, 2013, it would represent approximately 1,356,000 additional shares.  Interest accrued to date is $1,652.	34,881

Convertible note, original face value of $37,500 dated September 25, 2012, maturing April 26, 2013, 10% interest rate, deferred financing cost of $4,770 ratably charged to interest, unamortized $1,784, convertible at 30% discount to market. If converted as of January 31, 2013, it would represent approximately 678,000 additional shares.  Interest accrued to date is $1,315.		23,993
Convertible note, original face value of $50,000, dated October 5, 2012, maturing May 6, 2013, 10% interest rate, deferred financing cost of $5,000 ratably charged to interest, unamortized $2,230, debt discount of $39,094 amortized to interest, unamortized $17,436 convertible at 50% discount to market.  If converted as of January 31, 2013, it would represent approximately 904,000 additional shares.  Interest accrued to date is $1,616.		30,334
Total Debt	$	324,023
Less: long-term portion		-
Current portion of debt	$	324,023

Schedule of Derivative Instruments [Table Text Block]

The derivative valuation was calculated using the Black-Scholes Model for the conversion feature. Assumptions to the calculation were as follows:

Weighted Average:
Dividend rate	0.00	%
Risk-free interest rate	.08	%
Expected lives (years)	0.930
Expected price volatility	159.4	%
Forfeiture Rate	0.00	%