Warrants

9 Months Ended

Apr. 30, 2019

Warrants [Abstract]

Warrants

Warrants have been issued in conjunction with common stock issuances. During the year ended July 31, 2018, the Company sold 2,730,000 Units of its common stock for total cash proceeds of $136,500. During the nine months ended April 30, 2019, the Company sold 1,000,000 Units of its common stock for total cash proceeds of $50,000. Each Unit consists of one common share and one-half share purchase warrant exercisable for 2 years. Each whole share purchase warrant has an exercise price of $0.15 per common share. The warrants were evaluated for purposes of classification between liability and equity. The warrants do not contain features that would require a liability classification and are therefore considered equity. The Black Scholes pricing model was used to estimate the fair value of the Warrants issued with the following inputs:

Warrants		500,000
Exercise Price	$	0.15
Term	2 years
Volatility		323	%
Risk Free Interest Rate		2.61	%
Fair Value	$	25,205

Using the fair value calculation, the relative fair value between the common stock and the warrants was calculated to determine the warrants recorded equity amount of $25,205, accounted for in additional paid in capital.

Activity for the nine months ended April 30, 2019 and the year ended July 31, 2018 is as follows: 

	Number of Warrants			Weighted Average Exercise Price		Weighted Average Remaining Contract Term
Outstanding at July 31, 2017		150,000		$	0.10		1.50
Granted		1,865,000			0.15		1.47
Expired		-			-		-
Exercised		-			-		-
Exercisable at July 31, 2018		2,015,000		$	0.15		1.47
Granted		500,000			0.15		1.28
Expired		(150,000	)		-		-
Exercised		-			-
Exercisable at April 30, 2019		2,365,000			0.15		0.90