Note 3 - Summary of Significant Accounting Policies

9 Months Ended

Apr. 30, 2015

Notes

Note 3 - Summary of Significant Accounting Policies

Note 3 - Summary of Significant Accounting Policies

Loss Per Share

Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the periods presented. Diluted loss per share is computed by dividing net loss by the weighted average common shares and potentially dilutive common share equivalents. The effects of potential common stock equivalents are not included in computations when their effect is anti-dilutive.

Because of the net losses for all periods presented, the basic and diluted weighted average shares outstanding are the same since including the additional shares would have an anti-dilutive effect on the loss per share calculations. Common stock warrants and options to purchase 17,766,500 and 16,257,500 shares of common stock for the nine months ended April 30, 2015 and 2014 (Q1-Q3 ’15 & ’14) and 17,766,500 and 16,257,500 shares of common stock for the three months ended April 30, 2015 and 2014 (Q3’15 & ’14), respectively, were not included in the computation of diluted weighted average common shares outstanding. Additionally, $1,950,502 of convertible debt and accrued interest can potentially convert into 6,501,677 shares of common stock as of April 30, 2015 (end of Q3 ’15).