10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC. 20549

FORM 10-Q

(Mark One)

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period endedApril 30, 2015

or

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Transition Period from _______________ to ____________________

Commission File Number 000-13176

NON-INVASIVE MONITORING SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

Florida	59-2007840
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification no.)

4400 Biscayne Blvd., Suite 180, Miami, Florida 33137

(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code: (305) 575-4200

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x     No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

79,007,423 shares of the Company’s common stock, par value $0.01 per share, were outstanding as of June 15, 2015.

NON-INVASIVE MONITORING SYSTEMS, INC.

TABLE OF CONTENTS FOR FORM 10-Q

PART I. FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS
	Condensed Consolidated Balance Sheets as of April 30, 2015 (unaudited) and July 31, 2014	3
	Condensed Consolidated Comprehensive Statements of Operations for the three and nine months ended April 30, 2015 and 2014 (unaudited)	4
	Condensed Consolidated Statements of Changes in Shareholders’ Deficit for the nine months ended April 30, 2015 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the nine months ended April 30, 2015 and 2014 (unaudited)	6
	Notes to Condensed Consolidated Financial Statements (unaudited)	7
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	16
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	20
ITEM 4.	CONTROLS AND PROCEDURES	20
PART II. OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	21
ITEM 1A.	RISK FACTORS	21
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	21
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	21
ITEM 4.	MINE SAFETY DISLOSURES	21
ITEM 5.	OTHER INFORMATION	21
ITEM 6.	EXHIBITS	21
	SIGNATURES	22

2

NON-INVASIVE MONITORING SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

	April 30, 2015			July 31, 2014
	(Unaudited)
ASSETS
Current assets
Cash	$	81		$	21
Inventories, net		455			455
Prepaid expenses, deposits, and other current assets		9			49
Total current assets		545			525
Tooling and equipment, net	$	–		$	1
Total assets	$	545		$	526
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued expenses	$	1,034		$	909
Customer deposits		4			4
Notes payable – Related Party		1,350			1,150
Notes payable – Other		50			50
Total current liabilities		2,438			2,113
Total liabilities	$	2,438		$	2,113
Shareholders' deficit
Series B Preferred Stock, par value $1.00 per share; 100 shares authorized, issued and outstanding; liquidation preference $10		–			–
Series C Convertible Preferred Stock, par value $1.00 per share; 62,048 shares authorized, issued and outstanding; liquidation preference $62		62			62
Series D Convertible Preferred Stock, par value $1.00 per share; 5,500 shares authorized; 2,795shares issued and outstanding; liquidation preference $4,193		3			3
Common Stock, par value $0.01 per share; 400,000,000 shares authorized; 79,007,423 and 78,942,423 shares issued and outstanding, respectively.		790			789
Additional paid in capital		21,930			21,931
Accumulated deficit		(24,630	)		(24,323	)
Accumulated other comprehensive loss		(48	)		(49	)
Total shareholders' deficit		(1,893	)		(1,587	)
Total liabilities and shareholders' deficit	$	545		$	526

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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NON-INVASIVE MONITORING SYSTEMS, INC.

CONDENSED CONSOLIDATED COMPREHENSIVE STATEMENTS OF OPERATIONS - Unaudited

(In thousands, except per share data)

	Three months ended April 30,						Nine months ended April 30,
	2015			2014			2015			2014
Revenues
Product sales, net	$	–		$	–		$	–		$	–
Royalties		–			–			–			1
Total revenues		–			–			–			1
Operating costs and expenses
Cost of sales		–			–			–			–
Selling, general and administrative		50			73			203			231
Research and development		–			–			–			1
Total operating costs and expenses		50			73			203			232
Operating loss		(50	)		(73	)		(203	)		(231	)
Interest expense, net		(35	)		(32	)		(104	)		(99	)
Net loss	$	(85	)	$	(105	)	$	(307	)	$	(330	)
Other Comprehensive income currency translation adjustment		–			–			1			–
Comprehensive net loss	$	(85	)	$	(105	)	$	(306	)	$	(330	)
Weighted average number of common shares outstanding - Basic and diluted		79,007			78,942			78,986			78,942
Basic and diluted loss per common share	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

NON-INVASIVE MONITORING SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIT - Unaudited

For the nine months ended April 30, 2015

(Dollars in thousands, except share amounts)

	Preferred Stock																	Additional			Accum-			Accumulated Other
	Series B				Series C				Series D					Common Stock				Paid-in-			ulated			Comprehensive
	Shares		Amount		Shares		Amount		Shares			Amount		Shares		Amount		Capital			Deficit			Loss			Total
Balance at July 31, 2014		100	$	–		62,048	$	62		2,795		$	3		78,942,423	$	789	$	21,931		$	(24,323	)	$	(49	)	$	(1,587	)
Conversion of Preferred Stock to Common		–		–		–		–		(13	)		–		65,000		1		(1	)		–			–			–
Foreign currency translation adjustment		–		–		–		–		–			–		–		–		–			–			1			1
Net loss		–		–		–		–		–			–		–		–		–			(307	)		–			(307	)
Balance at April 30, 2015		100	$	–		62,048	$	62		2,782		$	3		79,007,423	$	790	$	21,930		$	(24,630	)	$	(48	)	$	(1,893	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

NON-INVASIVE MONITORING SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - Unaudited

(Dollars in thousands)

Nine months ended April 30, 2015 and 2014

	2015			2014
Operating activities
Net Loss	$	(307	)	$	(330	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		1			4
Stock-based compensation expense		-			4
Changes in operating assets and liabilities
Royalties and other receivables, net		-			1
Inventories, net		-			2
Prepaid expenses, deposits and other current assets		41			41
Accounts payable and accrued expenses		125			73
Net cash used in operating activities		(140	)		(205	)
Financing activities
Proceeds from note payable – related party		200			-
Net cash provided by financing activities		200			-
Net (decrease) increase in cash		60			(205	)
Cash, beginning of period		21			296
Cash, end of period	$	81		$	91

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

NON-INVASIVE MONITORING SYSTEMS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

April 30, 2015

The following (a) condensed consolidated balance sheet as of July 31, 2014, which has been derived from audited financial statements, and (b) the unaudited condensed consolidated interim financial statements included herein have been prepared by Non-Invasive Monitoring Systems, Inc. (together with its consolidated subsidiaries, the “Company” or “NIMS”) in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to the quarterly report on Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These statements reflect adjustments, all of which are of a normal, recurring nature, and which are, in the opinion of management, necessary to present fairly the Company’s financial position as of April 30, 2015, and results of operations and cash flows for the interim periods ended April 30, 2015 and 2014. The results of operations for the three and nine months ended April 30, 2015, are not necessarily indicative of the results for a full year. Certain information and footnote disclosure normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The Company’s accounting policies continue unchanged from July 31, 2014. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended July 31, 2014.

1. ORGANIZATION AND BUSINESS

Organization. Non-Invasive Monitoring Systems, Inc., a Florida corporation (together with its consolidated subsidiaries, the “Company” or “NIMS”), began business as a medical diagnostic monitoring company to develop computer-aided continuous monitoring devices to detect abnormal respiratory and cardiac events using sensors on the human body’s surface. It has ceased to operate in this market and has licensed the rights to its technology. The Company is now focused on developing and marketing its Exer-Rest^® line of acceleration therapeutic platforms based upon unique, patented whole body periodic acceleration (“WBPA”) technology. The Exer-Rest line of acceleration therapeutic platforms currently includes the Exer-Rest AT, AT3800 and AT4700 models.

Business. The Company is developing and marketing its Exer-Rest^® line of acceleration therapeutic platforms based upon unique, patented whole body periodic acceleration (“WBPA”) technology. The Exer-Rest line of acceleration therapeutic platforms currently includes the Exer-Rest AT, AT3800 and AT4700 models.

The Company received revenue from royalties on sales of diagnostic monitoring hardware and software by SensorMedics and from VivoMetrics in prior years. SensorMedics indicated they will discontinue licensed product sales after current inventory is depleted and, therefore, the royalty revenue from SensorMedics is expected to be minimal to none. VivoMetrics ceased operations in July 2009 and filed for Chapter 11 bankruptcy protection in October 2009. Pursuant to VivoMetrics’ approved bankruptcy plan of reorganization, our license with VivoMetrics was assigned to another company; however, there can be no assurance as to the future amount of royalty revenue, if any, that we may derive from this license or from our existing license with SensorMedics. In fiscal year 2009, NIMS began commercial sales of its third generation Exer-Rest therapeutic platforms.

During the calendar years 2005to 2007, the Company designed, developed and manufactured the first Exer-Rest platform (now the Exer-Rest AT), a second generation acceleration therapeutics platform, and updated its operations to promote the Exer-Rest AT overseas as an aid to improve circulation and joint mobility and to relieve minor aches and pains.

The Company has developed a third generation of Exer-Rest acceleration therapeutic platforms (designated the Exer-Rest AT3800 and the Exer-Rest AT4700) that has been manufactured by Sing Lin Technologies Co. Ltd. (“Sing Lin”) based in Taichung, Taiwan (see Note 10).

The Company’s financial statements have been prepared and presented on a basis assuming it will continue as a going concern. As reflected in the accompanying unaudited condensed consolidated financial statements, the Company had net losses of $307,000 and $330,000 for the nine month periods ended April 30, 2015 and 2014, respectively, and has experienced cash outflows from operating activities. The Company also has an accumulated deficit of $24.6 million as of April 30, 2015, and has potential purchase obligations at April 30, 2015(see note 10). The Company had $81,000 of cash at April 30, 2015and negative working capital of approximately $1,893,000. These matters raise substantial doubt about the Company’s ability to continue as a going concern.

The Company is continuing its business activities without any significant revenues from product sales. Absent any significant revenues from product sales, the Company is seeking debt or equity financing or a strategic collaboration. There is no assurance that the Company will be successful in this regard, and, if not successful, that it will be able to continue its business activities. The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary from the outcome of this uncertainty.

7

NON-INVASIVE MONITORING SYSTEMS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

April 30, 2015

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Non-Invasive Monitoring Systems of Florida, Inc., which has no current operations, and NIMS of Canada, Inc., a Canadian corporation, which has no current operations. All material inter-company accounts and transactions have been eliminated in consolidation.

Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions, such as accounts receivable, warranty accrual, deferred taxes, and the input variables for stock based compensation as estimates, 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 materially from these estimates.

Cash and Cash Equivalents. The Company considers all highly liquid short-term investments purchased with an original maturity date of three months or less to be cash equivalents. The Company had approximately $81,000 and $21,000, on deposit in bank operating accounts at April 30, 2015 and July 31, 2014, respectively.

Allowances for Doubtful Accounts. Royalties and other receivables are recorded at the stated amount of the transactions. The Company provides an allowance for royalties and other receivables it believes it may not collect in full. Receivables are written off when they are deemed to be uncollectible and all collection attempts have ceased. The amount of bad debt recorded each period and the resulting adequacy of the allowance at the end of each period are determined using a combination of the Company’s historical loss experience, customer-by-customer analysis of the Company’s accounts receivable each period and subjective assessments of the Company’s future bad debt exposure.

Inventories. Inventories are stated at lower of cost or market using the first-in, first-out method, and are evaluated at least annually for impairment. Inventories at April 30, 2015and July 31, 2014 primarily consist of finished Exer-Rest units, spare parts and accessories. Provisions for potentially obsolete or slow-moving inventory are made based on management’s analysis of inventory levels, historical obsolescence and future sales forecasts.

Tooling and Equipment. These assets are stated at cost and depreciated or amortized using the straight-line method, over their estimated useful lives.

Long-lived Assets. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In performing the review for recoverability, the Company estimates the future undiscounted cash flows expected to result from the use of the asset and its eventual disposition. If the sum of the expected future cash flows is less than the carrying amount of the assets, an impairment loss is recognized as the difference between the fair value and the carrying amount of the asset.

Taxes Assessed on Revenue-Producing Transactions. The Company presents sales taxes assessed on revenue-producing transactions between a seller and customer using the net presentation; thus, sales and cost of revenues are not affected by such taxes.

Income Taxes. The Company provides for income taxes using an asset and liability based approach. Deferred income tax assets and liabilities are recorded to reflect the tax consequences in future years of temporary differences between the carrying amounts of assets and liabilities for financial statement and income tax purposes. The deferred tax asset for loss carryforwards and other potential future tax benefits has been fully offset by a valuation allowance since it is uncertain whether any future benefit will be realized. The utilization of the loss carryforward is limited to future taxable earnings of the Company and may be subject to severe limitations if the Company undergoes an ownership change pursuant to the Internal Revenue Code Section 382.

The Company files its tax returns as prescribed by the laws of the jurisdictions in which it operates. Tax years ranging from 2010 to 2014 remain open to examination by various taxing jurisdictions as the statute of limitations has not expired.  It is the Company’s policy to include income tax interest and penalty expense in its tax provision.

Revenue Recognition. Revenue from product sales is recognized when persuasive evidence of an arrangement exists, the goods are shipped and title has transferred, the price is fixed or determinable, and the collection of the sales proceeds is reasonably assured. The Company recognizes royalties as they are earned, based on reports from licensees. Research and consulting revenue and revenue from sales of extended warranties on therapeutic platforms are recognized over the term of the respective agreements.

8

NON-INVASIVE MONITORING SYSTEMS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

April 30, 2015

Advertising Costs.  The Company expenses all costs of advertising and promotions as incurred.  There were no advertising and promotional costs incurred for the three and nine months ended April 30, 2015and 2014.

Research and Development Costs. Research and development costs are expensed as incurred, and primarily consist of payments to third parties for research and development of the Exer-Rest^® device and regulatory testing and other costs to obtain FDA approval.

Warranties. The Company’s warranties are two years on all Exer-Rest^® products sold domestically and one year for products sold outside of the U.S. and are accrued based on management’s estimates and the history of warranty costs incurred. There were no material warranty costs incurred during the three and nine months ended April 30, 2015 and 2014, and management estimates that the Company’s accrued warranty expense at April 30, 2015will be sufficient to offset claims made for units under warranty.

Stock-based compensation. The Company recognizes all share-based payments, including grants of stock options, as operating costs and expenses, based on their grant date fair values. Stock-based compensation expense is recognized over the vesting life of the underlying stock options and is included in selling, general and administrative costs and expenses in the condensed consolidated comprehensive statements of operations for all periods presented.

Fair Value of Financial Instruments. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of April 30, 2015and July 31, 2014. The respective carrying value of certain on-balance-sheet financial instruments such as cash and cash equivalents, royalties and other receivables, accounts payable and accrued expenses approximate fair values because they are short term in nature or they bear current market interest rates. As of April 30, 2015, the respective carrying value of the notes payable – related party and notes payable – other approximate our current borrowing rate for similar debt instruments of comparable maturity and are considered Level 3 measurements within the fair value hierarchy.

Foreign Currency Translation.  The functional currency for the Company’s foreign subsidiary is the local currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date while income and expense amounts are translated at average exchange rates during the period. The resulting foreign currency translation adjustments are disclosed as a separate component of shareholders deficit and accumulated other comprehensive loss. There were no foreign currency translation adjustments for the three and nine months ended April 30, 2014 and there were no foreign currency translation adjustments for the three months ended April 30, 2014 and $1,000 for the nine months ended April 30, 2015.

Comprehensive Income (Loss). Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including foreign currency translations.

Loss Contingencies. We recognize contingent losses that are probable and estimable. In this context, we define probability as circumstances under which events are likely to occur. In regards to legal costs, we record such costs as incurred.

3. INVENTORIES

The Company’s inventory consisted of the following at April 30, 2015 and July 31, 2014 (in thousands):

	April 30, 2015		July 31, 2014
Work-in-progress, spare parts and accessories	$	11	$	9
Finished goods		444		446
Total inventories	$	455	$	455

Although it does not plan to do so, if the Company were to dispose of the inventory outside the course of normal business, the amount recovered by the Company could be substantially less than cost.

9

NON-INVASIVE MONITORING SYSTEMS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

April 30, 2015

4. STOCK-BASED COMPENSATION

The Company measures the cost of employee, officer and director services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The fair value of the Company’s stock option awards is expensed over the vesting life of the underlying stock options using the graded vesting method, with each tranche of vesting options valued separately. The Company recorded stock-based compensation of $0, for the three and nine months ended April 30, 2015, and $1,000 and $4,000 respectively, for the three and nine months ended April 30, 2014. All stock-based compensation is included in the Company’s selling, general and administrative costs and expenses.

The Company’s 2000 Stock Option Plan (the “2000 Plan”), as amended, provides for the issuance of up to 2,000,000 shares of the Company’s Common Stock. The 2000 Plan allows the issuance of incentive stock options, stock appreciation rights and restricted stock awards. The exercise price of the options is determined by the compensation committee of the Company’s Board of Directors, but incentive stock options must be granted at an exercise price not less than the fair market value of the Company’s Common Stock as of the grant date or an exercise price of not less than 110% of the fair value for a 10% shareholder. Options expire up to ten years from the date of the grant and are exercisable according to the terms of the individual option agreements. The 2000 Plan expired on March 1, 2012. No additional grants may be made under the 2000 Plan; however, previously granted options will remain in force pursuant to the terms of the individual grants.

In November 2010, the Company’s Board and Compensation Committee approved the Non-Invasive Monitoring Systems, Inc. 2011 Stock Incentive Plan (the “2011 Plan”). Awards granted under the 2011 Plan may consist of incentive stock options, stock appreciation rights (SAR), restricted stock grants, restricted stock units (RSU) performance shares, performance units or cash awards. Subject to adjustment in certain circumstances, the 2011 Plan authorizes up to 4,000,000 shares of the Company’s common stock for issuance pursuant to the terms of the 2011 Plan. The 2011 Plan was approved by our shareholders in March 2012 and no awards have been granted under the 2011 Plan as of April 30, 2015.

The Company did not grant any stock options during the nine months ended April 30, 2015and 2014.

A summary of the Company’s stock option activity for the nine months ended April 30, 2015 is as follows:

	Shares		Weighted Average Exercise Price		Weighted average remaining contractual term (years)		Aggregate intrinsic Value
Options outstanding, July 31, 2014		378,750	$	0.380
Options granted		-		n/a
Options exercised		-		n/a
Options forfeited or expired		-		n/a
Options outstanding, April 30, 2015		378,750	$	0.380		1.38	$	0.00
Options expected to vest, April 30, 2015		378,750	$	0.380		1.38	$	0.00
Options exercisable, April 30, 2015		378,750	$	0.380		1.38	$	0.00

The 378,750 options outstanding at April 30, 2015 were all issued under the 2000 Plan. There were no options exercised during the three and nine month period ended April 30, 2015 and 2014. There were no options forfeited or expired during the three and nine month period ended April 30, 2015 and 75,000 expired during the nine month period ended April 30, 2014.

As of April 30, 2015, there were no unrecognized costs related to outstanding stock options.

5. ROYALTIES

The Company is a party to two licensing agreements with SensorMedics and VivoMetrics. The Company received royalty income from the sale of its diagnostic monitoring hardware and software from SensorMedics and previously received royalties from VivoMetrics prior to its bankruptcy. There was no royalty income from the SensorMedics license during the three and nine months ended April 30, 2015, respectively, and $0 and $1,000 for the three and nine months ended April 30, 2014. SensorMedics indicated they will discontinue licensed product sales after inventory is depleted and, therefore, the royalty revenue from SensorMedics is expected to be minimal to none. There were no royalties recognized from VivoMeterics for the three and nine months ended April 30, 2015 and 2014. VivoMetrics ceased operations in July 2009 and filed for Chapter 11 bankruptcy protection in October 2009. Under VivoMetrics’ approved bankruptcy plan of reorganization, our license with VivoMetrics was assigned to another company; however, there can be no assurance as to the future amount of royalty income, if any, that may result from this license.

10

NON-INVASIVE MONITORING SYSTEMS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

April 30, 2015

6. NOTES PAYABLE

2010 Credit Facility. On March 31, 2010, the Company entered into a Note and Security Agreement with Frost Gamma Investments Trust (“Frost Gamma”), a trust controlled by Dr. Phillip Frost, which beneficially owns in excess of 10% of the Company’s common stock, and Hsu Gamma Investments, LP, an entity controlled by the Company’s Chairman (collectively, the “Lenders”), pursuant to which the Lenders have provided a revolving credit line (the “Credit Facility”) in the aggregate principal amount of up to $1.0 million, secured by all of the Company’s personal property. The Company is permitted to borrow and reborrow from time to time under the Credit Facility until July 31, 2013 and subsequently the date was extended to July 31, 2015(the “Credit Facility Maturity Date”). The interest rate payable on amounts outstanding under the Credit Facility is 11% per annum, and increases to 16% per annum after the Credit Facility Maturity Date or after an event of default. All amounts owing under the Credit Facility are required to be repaid by the Credit Facility Maturity Date, and amounts outstanding are prepayable at any time. As of April 30, 2015, the Company had drawn an aggregate of $1,000,000 under the Credit Facility and there is no available balance remaining.

2011 Promissory Notes. On September 12, 2011, the Company entered into two promissory notes in the principal amount of $50,000 each with Frost Gamma (“2011 Frost Note”) and with an unrelated third party for a total of $100,000. The interest rate payable by NIMS on both the Frost Gamma Note and the unrelated third party note is 11% per annum, payable on the maturity date of September 12, 2014 and subsequently the date was extended to July 31, 2015(the “Promissory Notes Maturity Date”). The Company may prepay either or both notes in advance of the Promissory Notes Maturity Date without premium or penalty.

2012 Promissory Note. On May 30, 2012, the Company entered into a promissory note in the principal amount of $50,000 with Hsu Gamma, an entity controlled by NIMS’ Chairman of the Board and Interim Chief Executive Officer, Jane H. Hsiao, (the “Hsu Gamma Note”). The interest rate payable by NIMS on the Hsu Gamma Note is 11% per annum, payable on the maturity date of September 12, 2014 and subsequently the date was extended to July 31, 2015. The Hsu Gamma Note may be prepaid in advance of the Promissory Notes Maturity Date without premium or penalty.

2013 Promissory Note. On February 22, 2013, the Company entered into a promissory note in the amount of $50,000 with Jane Hsiao, the Company’s Chairman of the Board and Interim Chief Executive Officer (the “2013 Hsiao Note”). The interest rate payable by the Company on the 2013 Hsiao Note is 11% per annum, originally payable on the maturity date of September 12, 2014 and subsequently the date was extended to July 31, 2015. The 2013 Hsiao Note may be prepaid in advance of the Promissory Notes Maturity Date without premium or penalty.

2014 Promissory Note. On September 24, 2014, the Company entered into a promissory note (the “2014 Hsiao Note”) in the principal amount of $50,000 with Jane Hsiao, NIMS' Chairman of the Board and Interim Chief Executive Officer. The interest rate payable by NIMS on the 2014 Hsiao Note is 11% per annum, payable on the maturity date of July 31, 2015. The 2014 Hsiao Note may be prepaid in advance of the Maturity Date without penalty.

2015 Promissory Notes. On February 2, 2015, the Company entered into a promissory note (the “2015 Hsiao Note”) in the principal amount of $50,000 with Jane Hsiao, NIMS' Chairman of the Board and Interim Chief Executive Officer. The interest rate payable by the Company on the 2015 Hsiao Note is 11% per annum, payable on the maturity date of July 31, 2015. The 2015 Hsiao Note may be prepaid in advance of the Maturity Date without penalty.

On April 16, 2015, the Company entered into a promissory note (“2015 Frost Note”) in the amount of $100,000 with Frost Gamma. The interest rate payable by the Company on the 2015 Frost Note is 11% per annum, payable on the maturity date of July 31, 2015. The 2015 Frost Note may be prepaid in advance of the Promissory Notes Maturity Date without premium or penalty.

11

NON-INVASIVE MONITORING SYSTEMS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

April 30, 2015

At April 30, 2015, the Company was obligated under the above described Credit Facility and promissory notes to make future principal payments (excluding interest) as follows:

Year Ending July 31,
2015		1,400,000
	$	1,400,000

7. SHAREHOLDERS' EQUITY

The Company has three classes of Preferred Stock.  Holders of Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are entitled to vote with the holders of common stock as a single class on all matters.

Series B Preferred Stock is not redeemable by the Company and has a liquidation value of $100 per share, plus declared and unpaid dividends, if any.  Dividends are non-cumulative, and are at the rate of $10 per share, if declared.

Series C Preferred Stock is redeemable by the Company at a price of $0.10 per share upon 30 days prior written notice.  This series has a liquidation value of $1.00 per share plus declared and unpaid dividends, if any.  Dividends are non-cumulative, and are at the rate of $0.10 per share, if declared.  Each share of Series C Preferred Stock is convertible into 25shares of the Company’s common stock upon payment of a conversion premium of $4.20 per share of common stock.  The conversion rate and the conversion premium are subject to adjustments in the event of stock splits, stock dividends, reverse stock splits and certain other events.

Series D Preferred Stock is not redeemable by the Company.  This series has a liquidation value of $1,500 per share, plus declared and unpaid dividends, if any.  Each share of Series D Preferred Stock is convertible into 5,000 shares of the Company’s common stock.  The conversion rate is subject to adjustments in the event of stock splits, stock dividends, reverse stock splits and certain other events.

The Company issued 65,000 shares of the Company’s common stock for the conversion of 13 shares of Series D Preferred Stock during the nine months ended April 30, 2015 and did not issue any shares of the Company’s common stock for the nine months ended April 30, 2014. No preferred stock dividends were declared for the three and nine months ended April 30, 2015 and 2014.

The Company did not issue any shares for the three and nine months ended April 30, 2015. The Company did not declare any preferred stock dividends for the three and nine months ended April 30, 2015 and 2014.

8. BASIC AND DILUTED LOSS PER SHARE

Basic net loss per common share is computed by dividing net loss attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Diluted potential common shares consist of incremental shares issuable upon exercise of stock options and warrants and conversion of preferred stock. In computing diluted net loss per share for the three and nine months ended April 30, 2015 and 2014, no dilution adjustment has been made to the weighted average outstanding common shares because the assumed exercise of outstanding options and warrants and the conversion of preferred stock would be anti-dilutive.

Potential common shares not included in calculating diluted net loss per share are as follows:

	April 30, 2015		April 30, 2014
Stock options		378,750		538,750
Series C Preferred Stock		1,551,200		1,551,200
Series D Preferred Stock		13,910,000		13,975,000
Total		15,839,950		16,064,950

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NON-INVASIVE MONITORING SYSTEMS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

April 30, 2015

9. RELATED PARTY TRANSACTIONS

The Company signed a five year lease for office space in Miami, Florida with a company owned by Dr. Phillip Frost, who is the beneficial owner of more than 10% of the Company’s Common Stock. The current rental payments under the Miami office lease, which commenced January 1, 2008 and expired on December 31, 2012, are approximately $1,250 per month and are currently on a month-to-month basis. The Company recorded rent expense related to the Miami lease of approximately $4,000 and $12,000 respectively, for the three and nine months ended April 30, 2015, and approximately $4,000 and $11,000, respectively, for the three and nine months ended April 30, 2014

The Company signed a three year lease for warehouse space in Hialeah, Florida with a company jointly controlled by Dr. Frost and Dr. Jane Hsiao, the Company’s Chairman and Interim CEO. The rental payments under the Hialeah warehouse lease, which commenced February 1, 2009 and expired on January 31, 2012, then continued on a month-to-month basis. As further described in Note 10, the Company vacated the Hialeah warehouse in September 2014 and entered into a new lease with an unrelated third party. The Company recorded rent expense related to the Hialeah warehouse of approximately $0 and $6,000 for the three and nine months ended April 30, 2015 and $17,000 and $45,000, respectively, for the three and nine months ended April 30, 2014.

As more fully described in Note 6, the Company entered into a $1.0 million Credit Facility in March 2010 with both an entity controlled by Dr. Frost and an entity controlled by Dr. Hsiao. There were no advances under the Credit Facility during the three and nine months ended April 30, 2015. There was $1.0 million outstanding balance due, plus interest, on the Credit Facility as of April 30, 2015 and July 31, 2014 and there is no available balance remaining. The Credit Facility expires in July 31, 2015.

On September 12, 2011, the Company entered into a Promissory Note in the principal amount of $50,000 with Frost Gamma Investments Trust (“Frost Gamma”), a trust controlled by Dr. Phillip Frost, which beneficially owns in excess of 10% of the Company’s common stock (the “Frost Gamma Note”). The interest rate payable on the Frost Gamma Note is 11% per annum, payable on the Promissory Notes Maturity Date of July 31, 2015. The Company may prepay the Frost Gamma Note without premium or penalty.

On May 30, 2012, the Company entered into a Promissory Note in the principal amount of $50,000 with Hsu Gamma Investments, L.P. (“Hsu Gamma”), an entity controlled by NIMS’ Chairman of the Board and Interim Chief Executive Officer, Jane H. Hsiao, (the “Hsu Gamma Note”). The interest rate payable on the Hsu Gamma Note is 11% per annum, payable on the Promissory Notes Maturity Date of July 31, 2015. The Company may prepay the HSU Gamma Note without premium or penalty.

On February 22, 2013, the Company entered into a Promissory Note in the amount of $50,000 with Jane Hsiao, the Company’s Chairman of the Board and Interim Chief Executive Officer (the “Hsiao Note”). The interest rate payable by the Company on the Hsiao Note is 11% per annum, payable on the Promissory Notes Maturity Date of July 31, 2015. The Hsiao Note may be prepaid in advance of the Promissory Notes Maturity Date without penalty.

On September 24, 2014, the Company entered into a promissory note (the “2014 Hsiao Note”) in the principal amount of $50,000 with Jane Hsiao, NIMS' Chairman of the Board and Interim Chief Executive Officer. The interest rate payable by NIMS on the 2014 Hsiao Note is 11% per annum, payable on the maturity date of July 31, 2015. The 2014 Hsiao Note may be prepaid in advance of the Maturity Date without penalty.

On February 2, 2015, the Company entered into a promissory note (the “2015 Hsiao Note”) in the principal amount of $50,000 with Jane Hsiao, NIMS' Chairman of the Board and Interim Chief Executive Officer. The interest rate payable by the Company on the 2015 Hsiao Note is 11% per annum, payable on the maturity date of July 31, 2015. The 2015 Hsiao Note may be prepaid in advance of the Maturity Date without penalty.

On April 16, 2015, the Company entered into a promissory note (“2015 Frost Note”) in the amount of $100,000 with Frost Gamma. The interest rate payable by the Company on the 2015 Frost Note is 11% per annum, payable on the maturity date of July 31, 2015. The 2015 Frost Note may be prepaid in advance of the Promissory Notes Maturity Date without premium or penalty.

The Company also incurred interest expense related to the Credit Facility of approximately $27,000 and $83,000 for the three and nine months ended April 30, 2015, as well as for the three and nine months ended April 30 2014, respectively. The Company also incurred interest expense related to the promissory notes of approximately $8,000 and $21,000 for the three and nine months ended April 30, 2015, respectively, and $5,000 and $16,000 for the three and nine months ended 2014, respectively. Approximately $602,000 and $498,000 of accrued interest remained outstanding for all debt at April 30, 2015 and July 31, 2014, respectively.

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NON-INVASIVE MONITORING SYSTEMS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

April 30, 2015

Dr. Hsiao, Dr. Frost and directors Steven Rubin and Rao Uppaluri are each significant stockholders, officers and/or directors or former directors of TransEnterix, Inc. (formerly SafeStitch Medical, Inc.) (“TransEnterix”), a publicly-traded, medical device manufacturer, Tiger X Medical, Inc. (“Tiger X”) (formerly known as Cardo Medical, Inc.), a publicly traded former medical device company, and IDI, Inc. (“IDI”) (formerly known as Tiger Media), a publicly-traded data fusion company. The Company’s Chief Financial Officer also served as the Chief Financial Officer of TransEnterix until October 2, 2013. The Company’s Chief Financial Officer continued as an employee of TransEnterix until March 3, 2014, during which he supervised the Miami based accounting staffs of TransEnterix under a cost sharing arrangement whereby the total salaries of the Miami based accounting staffs of NIMS and TransEnterix were shared.  Since December 2009, the Company’s Chief Legal Officer has served under a similar cost sharing arrangement as Corporate Counsel of IDI and as the Chief Legal Officer of each of TransEnterix and Tiger X. The Company recorded additions to selling, general and administrative costs and expenses to account for the sharing of costs under these arrangements of $9,000 and $27,000, respectively, for the three and nine months ended April 30, 2015, and $9,000 and $27,000, respectively, for the three and nine months ended April 30, 2014. Accounts payable to TransEnterix related to these arrangements totaled approximately $1,200 and $3,000 respectively, at April 30, 2015 and July 31, 2014.

10. COMMITMENTS AND CONTINGENCIES

Leases.

The Company is under an operating lease agreement for office space that expired in 2012 and continues on a month to month basis. The Company is also under an operating lease agreement for warehouse space that runs through September 2015 and requires for the payment of taxes, insurance and utilities.

Generally, the lease agreements require the payment of base rent plus escalations for increases in building operating costs and real estate taxes. Rental expense for operating leases amounted $15,000 and $45,000 for the three and nine months ended April 30, 2015 and $21,000 and $56,000 for the three and nine months ended April 30, 2014

Product Development and Supply Agreement.

On September 4, 2007, the Company entered into a Product Development and Supply Agreement (the “Agreement”) with Sing Lin Technologies Co. Ltd., a company based in Taichung, Taiwan ("Sing Lin"). Pursuant to the Agreement, the Company consigned to Sing Lin the development and design of the next generation Exer-Rest and related devices. The Agreement commenced as of September 3, 2007 and had a term that extended three years from the acceptance by NIMS of the first run of production units. Thereafter, the Agreement automatically renewed for successive one year terms unless either party sent the other a notice of non-renewal. Either party was permitted to terminate the Agreement with ninety days prior written notice. Upon termination, each party’s obligations under the Agreement were to be limited to obligations related to confirm orders placed prior to the termination date.

Pursuant to the Agreement, Sing Lin designed, developed and manufactured the tooling required to manufacture the acceleration therapeutic platforms for a total cost to the Company of $471,000. Sing Lin utilized the tooling in the performance of its production obligations under the Agreement. The Company paid Sing Lin $150,000 of the tooling cost upon execution of the Agreement and $150,000 upon the Company’s approval of the product prototype concepts and designs. The balance of the final tooling cost became due and payable in September 2008 upon acceptance of the first units produced using the tooling, and was paid in full during the year ended July 31, 2009.

Under the now-terminated Agreement, the Company also granted Sing Lin the exclusive distribution rights for the products in certain countries in the Far East, including Taiwan, China, Japan, South Korea, Malaysia, Indonesia and certain other countries. Sing Lin agreed not to sell the Products outside its geographic areas in the Far East.

The Agreement provided for the Company to purchase approximately $2.6 million of Exer-Rest units within one year of the September 2008 acceptance of the final product. The Agreement further provided for the Company to purchase $4.1 million and $8.8 million of Exer-Rest products in the second and third years following such acceptance, respectively. These minimum purchase amounts were based upon 2007 product costs multiplied by volume commitments. Through April 30, 2015, the Company had paid Sing Lin $1.7 million in connection with orders placed through that date. Of this amount, $90,000 was previously included as advances to contract manufacturer. As of April 30, 2015, the Company has approximately $41,000 of payables due to Sing Lin. As of April 30, 2015 and July 31, 2014, aggregate minimum future purchases under the Agreement totaled approximately $13.9 million.

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NON-INVASIVE MONITORING SYSTEMS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

April 30, 2015

As of April 30, 2015, the Company had not placed orders sufficient to meet the first-year or second-year minimum purchase obligations under the Agreement. The Company notified Sing Lin in June 2010 that it was terminating the Agreement effective September 2010, and Sing Lin in July 2010 demanded that the Company place orders sufficient to fulfill the three year minimum purchase obligations in the Agreement. As of June 15, 2015, Sing Lin has not followed up on its July 2010 demand. There can be no assurance that Sing Lin will not attempt to enforce its remedies under the Agreement, or pursue other potential remedies.

11. LONG-LIVED ASSETS

The Company’s long-lived assets include furniture and equipment, office equipment and computers, tooling, websites and software, leasehold improvements, patents and trademarks. Tooling and equipment, net of accumulated depreciation, consists of the following at April 30, 2015 and July 31, 2014 (in thousands):

	Estimated Useful Life	April 30, 2015			July 31, 2014
Furniture and fixtures, leasehold improvements, office equipment and computers	3 – 5years	$	85		$	85
Website and software	3 years		26			26
			111			111
Less accumulated depreciation			(111	)		(110	)
Tooling and equipment, net		$	0		$	1

Depreciation expense was $0 and $1,000 during the three and nine months ended April 30, 2015 and was $1,000 and $4,000 during the three and nine months ended April 30, 2014. Nine Exer-Rest^® AT 3800 and AT 4700 demonstration units are included in furniture and fixtures at an aggregate cost of $26,000. These units were placed in service in fiscal 2009 and 2010, and were fully depreciated based upon five-year estimated useful lives.

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NON-INVASIVE MONITORING SYSTEMS, INC

April 30, 2015

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Cautionary Statement Regarding Forward-looking Statements.

This Interim Report on Form 10-Q contains, in addition to historical information, certain forward-looking statements regarding Non-Invasive Monitoring Systems, Inc. (the “Company” or “NIMS,” also referred to as “us”, “we” or “our”). These forward-looking statements represent our expectations or beliefs concerning the Company’s operations, performance, financial condition, business strategies, and other information and that involve substantial risks and uncertainties. For this purpose, any statements contained in this Report that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. The Company’s actual results of operations, some of which are beyond the Company’s control, could differ materially from the activities and results implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to the Company’s: history of operating losses and accumulated deficit; immediate need for additional financing; the Company’s inability to repay the Credit Facility currently due on July 31, 2015or Promissory Notes due on July 31, 2015, dependence on future sales of the Exer-Rest^® motion platforms; current and future purchase commitments; competition; dependence on management; changes in healthcare rules and regulations; risks related to proprietary rights; government regulation, including regulatory approvals; other factors described herein as well as the factors contained in “Item 1A - Risk Factors” of our Annual Report on Form 10-K for the year ended July 31, 2014. We do not undertake any obligation to update forward-looking statements, except as required by applicable law. These forward-looking statements are only predictions and reflect our views as of the date they are made with respect to future events and financial performance.

Overview

We are primarily engaged in the development, manufacture and marketing of non-invasive, whole body periodic acceleration (“WBPA”) therapeutic platforms, which are motorized platforms that move a subject repetitively head to foot. Our acceleration therapeutic platforms are the inventions of Marvin A. Sackner, M.D., our founder, former Chief Executive Officer and a current member of our Board of Directors. Over thirty peer reviewed scientific publications attest to the benefits of whole body periodic acceleration in animal and human research investigations. According to those studies, the application of this technology causes increased release of beneficial substances such as nitric oxide from the inner lining of blood vessels throughout the vasculature for improved circulation and the reduction of inflammation. These findings are not being claimed as an intended use of the device for marketing purposes, but demonstrate a potential mechanism for its benefits.

The development and commercialization of the Exer-Rest has necessitated substantial expenditures and commitments of capital, and we anticipate expenses and associated losses to continue for the foreseeable future. We will be required to raise additional capital to fulfill our business plan, but no commitment to raise such additional capital exists or can be assured. We are also examining strategic alternatives. If we are unsuccessful in our efforts to expand sales and/or raise capital, or some other strategic alternative, we will not be able to continue operations.

Products

Whole Body Periodic Acceleration (“WBPA”) Therapeutic Devices

The original AT-101 was a comfortable gurney-styled device that provided movement of a platform repetitively in a head-to-foot motion at a rapid pace. Sales of the AT-101 commenced in October 2002 in Japan and in February 2003 in the United States. QTM Incorporated (“QTM”), an FDA registered manufacturer located in Oldsmar, Florida, manufactured the device, which was built in accordance with ISO and current Good Manufacturing Practices. As discussed above, we ceased manufacturing and selling the AT-101 in the United States in January 2005as we began development of the Exer-Rest AT. We continued selling our existing inventory of AT-101 devices overseas until the Exer-Rest AT became available in October 2007, at which time we discontinued marketing of the AT-101.

The Exer-Rest AT is based upon the design and concept of the AT-101, but has the dimensions and appearance of a commercial extra long twin bed. The Exer-Rest AT, which was also manufactured by QTM until we stopped production in July 2009, weighs about half as much as the AT-101, has a much more efficient and less costly drive mechanism, has a much lower selling price than did the AT-101 and is designed such that the user can utilize and operate it without assistance. The wired hand held controller provides digital values for speed, travel and time, rather than analog values for speed and arbitrary force values as in the AT-101. Sales of the Exer-Rest AT began outside the United States in October 2007 and in the United States in February 2009. We discontinued manufacturing of the Exer-Rest AT in July 2009, and we expect to utilize our remaining inventory of these units primarily for research purposes.

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NON-INVASIVE MONITORING SYSTEMS, INC

April 30, 2015

The Exer-Rest AT3800 and Exer-Rest AT4700, which were manufactured for us by Sing Lin prior to the termination of our agreement with them, are next generation versions of the Exer-Rest AT and further advance the acceleration therapeutic platform technology. The AT3800 (38” wide) and AT4700 (47” wide) models combine improved drive technology for quieter operation, a more comfortable “memory-foam” mattress, more convenient operation with a multi-function wireless remote and a more streamlined look to improve the WBPA experience. Sales of the Exer-Rest AT3800 and Exer-Rest AT4700 platforms began outside the United States in October 2008, and U.S. sales commenced in February 2009.

LifeShirt^®

The LifeShirt is a patented Wearable Physiological Computer that incorporates transducers, electrodes and sensors into a sleeveless garment. These sensors transmit vital and physiological signs to a miniaturized, battery-powered, electronic module which saves the raw waveforms and digital data to the compact flash memory of a Personal Digital Assistant (“PDA”) attached to the LifeShirt. Users of the LifeShirt can enter symptoms (with intensity), mood and medication information directly into the PDA for integration with the physiologic information collected by the LifeShirt garment. The flash memory can then be removed from the LifeShirt and the data uploaded and converted into minute-by-minute median trends of more than 30 physical and emotional signs of health and disease. Vital and physiological signs can therefore be obtained non-invasively, continuously, cheaply and reliably with the comfortably worn LifeShirt garment system while resting, exercising, working or sleeping. The LifeShirt was sold exclusively by VivoMetrics, but has not been marketed since VivoMetrics ceased operations in July 2009. Under VivoMetrics’ approved bankruptcy plan of reorganization, our license with VivoMetrics was assigned to another company; however, there can be no assurance as to the future amount of LifeShirt sales, if any, that may result from this license.

Critical Accounting Policies and Estimates

The discussion and analysis of our financial condition and results of operations set forth below under “Results of Operations” and “Liquidity and Capital Resources” should be read in conjunction with our financial statements and notes thereto appearing elsewhere in this Form 10-Q. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to royalties, inventory, tooling and equipment and contingencies. The Company’s accounting policy for loss contingencies complies with ASC 450-20-25-2. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. A more detailed discussion on the application of these and other accounting policies can be found in Note 2 in the Notes to the Condensed Consolidated Financial Statements set forth in Item 8 of our Annual Report on Form 10-K for the year ended July 31, 2014. Actual results may differ from these estimates.

Results of Operations

In January 2005, we began developing the Exer-Rest line of acceleration therapeutic platforms, which were designed to be more efficient and less expensive than the original AT-101 platform. The Exer-Rest AT platform was first available for delivery to certain locations outside of the United States in October 2007. Our newest platforms, the Exer-Rest AT3800 and AT4700, which we developed under our former agreement with Sing Lin, became available for sale in October 2008. In January 2009, the Exer-Rest line of therapeutic platforms was registered by the FDA in the United States as Class I (Exempt) Medical Devices. We began our US and international sales activity with aggressive marketing and promotional pricing beginning in February 2009. We opened our first demonstration and therapy center in Toronto, Canada in April 2009; however, we closed that facility in January 2010 to focus our marketing and sales efforts on healthcare providers as well as individuals. We continue to offer the Exer-Rest to hospitals, cardiac rehabilitation clinics, chiropractic and physical therapy centers, senior living communities and other healthcare providers, as well as to their patients, professional athletes and other individuals.

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NON-INVASIVE MONITORING SYSTEMS, INC

April 30, 2015

Three and Nine months ended April 30, 2015 Compared to Three and Nine months Ended April 30, 2014

Revenue. There was no revenue for the three and nine months ended April 30, 2015, as compared to no revenue for the three months ended April 30, 2014 and $1,000 for the nine months ended April 30, 2014. The $1,000 decrease for was primarily due to the decrease in royalty revenue as SensorMedics sold off its remaining inventory of licensed product (see Note 5)

Cost of Sales. There were no cost of sales for the three and nine months ended April 30, 2015 and 2014, as a result of not having any product sales during those periods.

Selling, general and administrative costs and expenses. Selling, general and administrative (“SG&A”) costs and expenses were $50,000 for the three months ended April 30, 2015, as compared to $73,000 for the three months ended April 30, 2014 and SG&A costs and expenses were $203,000 for the nine months ended April 30, 2015, as compared to $231,000 for the nine months ended April 30, 2014. These $23,000 and $28,000 decreases for the three and nine month periods were primarily attributable to decreases in stock-based compensation expense, payroll expenses and depreciation expense. SG&A costs and expenses include stock based compensation, which totaled $0 for the three and nine months ended April 30, 2015,respectively, and $1,000 and $4,000 for the three and nine months ended April 30,2014, respectively.

Research and development costs and expenses. There were no Research and development costs and expenses (“R&D”) for the three months ended April 30, 2015 and 2014. There were no R&D costs and expenses for the nine months ended April 30, 2015, as compared to $1,000 for the nine months ended April 30, 2014. This $1,000 decrease was primarily attributable to a decrease in professional regulatory fees and costs associated with Exer-Rest units used in research to gather clinical data.

Total operating costs and expenses. Total operating costs and expenses were $50,000 for the three months ended April 30, 2015, as compared to $73,000 for the three months ended April 30, 2014 and total operating costs and expenses were $203,000 for the nine months ended April 30, 2015, as compared to $232,000 for the nine months ended April 30, 2014. These $23,000 and $29,000 decreases for the three and nine month periods were primarily attributable to the lower SG&A and R&D costs and expenses discussed above.

Other expense. Net interest expense was $35,000 and $104,000 for the three and nine months ended April 30, 2015 and net interest expense was $32,000 and $99,000 for the three and nine months ended April 30, 2014. The $3,000 and $5,000 respective increases for the three and nine month periods were related to increased balances outstanding under the Note and Security Agreement and Promissory Notes described in Note 6 to the accompanying unaudited condensed consolidated financial statements.

Liquidity and Capital Resources

The Company’s operations have been primarily financed through private sales of its equity securities and advances under Credit Facility and Promissory Notes. At April 30, 2015, we had approximately $81,000 of cash and negative working capital of approximately $1,893,000. We believe that the cash on hand at April 30, 2015 is not sufficient to meet our anticipated cash requirements for operations and debt service for the next 12 months.

We expect to incur losses from operations for the foreseeable future. It is likely that we will not be able to generate significant additional revenue and we will be required to obtain additional external financing through public or private equity offerings, debt financings or collaborative agreements to continue operations. No assurance can be given that such additional financing will be available on acceptable terms or at all. We are also examining strategic alternatives. Our ability to sell additional shares of our stock and/or borrow cash could be materially adversely affected by the current climate in the global equity and credit markets. Current economic conditions have been, and continue to be, volatile and continued instability in these market conditions may limit our ability to access the capital necessary to fund and grow our business and to replace, in a timely manner, maturing liabilities or to successfully examine strategic alternatives. Additionally, the sales of equity or convertible debt securities may result in dilution to our stockholders.

Net cash used in operating activities was $140,000 and $205,000 for nine months ended April 30, 2015 and 2014, respectively. This $65,000 decrease was principally due to due to an increase in outstanding accounts payable and accrued expenses.

No cash was used or provided by investing activities for the nine months ended April 30, 2015 and 2014.

Net cash provided by financing activities was $200,000 for the nine months ended April 30, 2015, from the $200,000 proceeds from the Promissory Notes described in Note 6. No cash was provided by financing activities for the nine months ended April 30, 2014.

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NON-INVASIVE MONITORING SYSTEMS, INC

April 30, 2015

Under our now-terminated agreement with Sing Lin, we were committed to purchase approximately $2.6 million of Exer-Rest units within one year of acceptance of the final product, which acceptance occurred in September 2008, and an additional $4.1 million and $8.8 million of products in the second and third years following acceptance of the final product, respectively. Under the agreement, we were required to pay a portion of the product purchase price at the time production orders were placed, with the balance due upon delivery. Through April 30, 2015, we paid Sing Lin $1.7 million in connection with orders placed through that date. As of April 30, 2015, we had not placed orders sufficient to satisfy the first-year or second-year purchase obligations under the agreement. We notified Sing Lin in June 2010 that we were terminating the agreement effective September 2010, and Sing Lin in July 2010 demanded that we place orders sufficient to fulfill the three year minimum purchase obligations in the agreement. As of June 15, 2015, Sing Lin has not followed up on its July 2010 demand. There can be no assurance that Sing Lin will not attempt to enforce its remedies against us, or pursue other potential remedies. If Sing Lin seeks to enforce remedies against us, any such remedies could have a material adverse effect on our business, liquidity and results of operations. As of April 30, 2015, the Company had payables due to Sing Lin of approximately $41,000.

On April 8, 2013, the Company entered into the Stock Purchase Agreement with the Investors pursuant to which the Investors agreed to purchase in a private placement an aggregate of 10,020,000 shares of the Company’s common stock, par value $0.01 (the “Shares”), at a price of $0.05 per share, for aggregate consideration of $501,000. The $0.05 per share price was less than the market price, which was approximately $0.12 as of the date of the agreement. Among the Investors purchasing Shares pursuant to the agreement were Dr. Jane Hsiao, the Company’s Chairman of the Board and Interim Chief Executive Officer and Frost Gamma, an entity controlled by Dr. Phillip Frost, one of the largest beneficial owners of the Company’s common stock. Dr. Hsiao purchased 2.0 million Shares and Frost Gamma purchased 2.0 million Shares.

2010 Credit Facility. On March 31, 2010, the Company entered into a new Note and Security Agreement with Frost Gamma Investments Trust, a trust controlled by Dr. Phillip Frost, which beneficially owns in excess of 10% of the Company’s common stock, and Hsu Gamma Investments, LP, an entity controlled by the Company’s Chairman (together, the “Lenders”), pursuant to which the Lenders have provided a revolving credit line (the “Credit Facility”) in the aggregate principal amount of up to $1.0 million, secured by all of the Company’s personal property. The Company is permitted to borrow and reborrow from time to time under the Credit Facility until July 31, 2013 and subsequently the date was extended to July 31, 2015(the “Credit Facility Maturity Date”). The interest rate payable on amounts outstanding under the Credit Facility is 11% per annum, and increases to 16% per annum after the Credit Facility Maturity Date or after an event of default. All amounts owing under the Credit Facility are required to be repaid by the Credit Facility Maturity Date, and amounts outstanding are prepayable at any time. As of April 30, 2015, the Company had drawn an aggregate of $1,000,000 under the Credit Facility and there is no available balance remaining.

2011 Promissory Notes. On September 12, 2011, the Company entered into two promissory notes in the principal amount of $50,000 each with Frost Gamma, a trust controlled by Dr. Phillip Frost, which beneficially owns in excess of 10% of the Company’s common stock, and with an unrelated third party for a total of $100,000. The interest rate payable by NIMS on both the Frost Gamma Note and the unrelated third party note is 11% per annum, payable on the maturity date of September 12, 2014 and subsequently the date was extended to July 31, 2015(the “Promissory Notes Maturity Date”). The Company may prepay either or both notes in advance of the Promissory Notes Maturity Date without premium or penalty.

2012 Promissory Note. On May 30, 2012, the Company entered into a promissory note in the principal amount of $50,000 with Hsu Gamma, an entity controlled by NIMS’ Chairman of the Board and Interim Chief Executive Officer, Jane H. Hsiao, (the “Hsu Gamma Note”). The interest rate payable by NIMS on the Hsu Gamma Note is 11% per annum, payable on the maturity date of September 12, 2014 and subsequently the date was extended to July 31, 2015. The Hsu Gamma Note may be prepaid in advance of the Promissory Notes Maturity Date without premium or penalty.

2013 Promissory Note.On February 22, 2013, the Company entered into a promissory note in the amount of $50,000 with Jane Hsiao, the Company’s Chairman of the Board and Interim Chief Executive Officer (the “2013 Hsiao Note”). The interest rate payable by the Company on the 2013 Hsiao Note is 11% per annum, originally payable on the maturity date of September 12, 2014 and subsequently the date was extended to July 31, 2015. The 2013 Hsiao Note may be prepaid in advance of the Promissory Notes Maturity Date without premium or penalty.

2014 Promissory Note. On September 24, 2014, the Company entered into a promissory note (the “2014 Hsiao Note”) in the principal amount of $50,000 with Jane Hsiao, NIMS' Chairman of the Board and Interim Chief Executive Officer. The interest rate payable by NIMS on the 2014 Hsiao Note is 11% per annum, payable on the maturity date of July 31, 2015. The 2014 Hsiao Note may be prepaid in advance of the Maturity Date without penalty.

19

NON-INVASIVE MONITORING SYSTEMS, INC

April 30, 2015

2015 Promissory Notes. On February 2, 2015, the Company entered into a promissory note (the “2015 Hsiao Note”) in the principal amount of $50,000 with Jane Hsiao, NIMS' Chairman of the Board and Interim Chief Executive Officer. The interest rate payable by the Company on the 2015 Hsiao Note is 11% per annum, payable on the maturity date of July 31, 2015. The 2015 Hsiao Note may be prepaid in advance of the Maturity Date without penalty.

On April 16, 2015, the Company entered into a promissory note (“2015 Frost Note”) in the amount of $100,000 with Frost Gamma. The interest rate payable by the Company on the 2015 Frost Note is 11% per annum, payable on the maturity date of July 31, 2015. The 2015 Frost Note may be prepaid in advance of the Promissory Notes Maturity Date without premium or penalty

As of June 15, 2015, the Company had cash and cash equivalents of approximately $66,000, and did not have any further funding available under the Credit Facility. Furthermore, the Maturity Date of the Credit Facility is July 31, 2015 and the Company currently does not have sufficient funds to repay the Credit Facility. If we are unable to generate significant revenues from sales of Exer-Rest platforms or obtain an extension on the Credit Facility Maturity Date and Promissory Notes Maturity Date, we will have insufficient funds to repay our existing debt and continue operations without raising additional capital. We are also examining strategic alternatives. There can be no assurance that we will be able to raise such additional capital on terms acceptable to us or at all or that we will be successful in our examination of strategic alternatives. This uncertainty, along with the Company’s limited remaining cash balances, raises substantial doubt about the Company’s ability to continue as a going concern.

ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not required for smaller reporting companies as defined in Rule 12b-2 of the Exchange Act.

ITEM 4.   CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”) as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures as of April 30, 2015 were effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

Changes in Internal Control over Financial Reporting

There were no material changes in our internal controls over financial reporting or in other factors that could materially affect, or are reasonably likely to affect, our internal controls over financial reporting during the quarter ended April 30, 2015. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

20

NON-INVASIVE MONITORING SYSTEMS, INC

April 30, 2015

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

None.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

Item 6. Exhibits

31.1	Certification of Chief Executive Officer pursuant to Rules 13a–14 and 15d-14 under the Securities Exchange Act of 1934.*
31.2	Certification of Chief Financial Officer pursuant to Rules 13a–14 and 15d-14 under the Securities Exchange Act of 1934.*
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350 as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350 as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101.INS	XBRL Instance Document*
101.SCH	XBRL Taxonomy Extension Schema Document*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document*

* Filed herewith

21

NON-INVASIVE MONITORING SYSTEMS, INC

April 30, 2015

SIGNATURES

In accordance with the requirements of the Exchange Act the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: June 15, 2015	By:	/s/ Jane H. Hsiao
		Jane H. Hsiao, Interim Chief Executive Officer
Dated: June 15, 2015	By:	/s/ James J. Martin
		James J. Martin, Chief Financial Officer

22

EXHIBIT INDEX

31.1	Certification of Chief Executive Officer pursuant to Rules 13a–14 and 15d-14 under the Securities Exchange Act of 1934.
31.2	Certification of Chief Financial Officer pursuant to Rules 13a–14 and 15d-14 under the Securities Exchange Act of 1934.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350 as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350 as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

23

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer Pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934.

I, Jane H. Hsiao, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Non-Invasive Monitoring Systems, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: June 15, 2015	By:	/s/ Jane H. Hsiao
		Jane H. Hsiao, Interim Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer Pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934.

I, James J. Martin, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Non-Invasive Monitoring Systems, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: June 15, 2015	By:	/s/ James J. Martin
		James J. Martin, Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the Quarterly Report of Non Invasive Monitoring Systems, Inc. (the "Company") on Form 10-Q for the quarterly period ended April 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Jane H. Hsiao, Interim Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)        The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)        The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Dated: June 15, 2015	By:	/s/ Jane H. Hsiao
		Jane H. Hsiao, Interim Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the Quarterly Report of Non Invasive Monitoring Systems, Inc. (the "Company") on Form 10-Q for the quarterly period ended April 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, James J. Martin, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)        The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)        The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Dated: June 15, 2015	By:	/s/ James J. Martin
		James J. Martin, Chief Financial Officer

XML

BASIC AND DILUTED LOSS PER SHARE (Details)	9 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Class of Stock [Line Items]
Total	15,839,950	16,064,950
Stock Options [Member]
Class of Stock [Line Items]
Total	378,750	538,750
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Total	1,551,200	1,551,200
Series D Preferred Stock [Member]
Class of Stock [Line Items]
Total	13,910,000	13,975,000

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2015	Apr. 30, 2014	Jul. 31, 2014	Jul. 31, 2013
Cash, end of period	$ 81	$ 91	$ 81	$ 91	$ 21	$ 296
Foreign Currency Transaction Gain (Loss), Unrealized	$ 0	$ 0	$ 0	$ 1,000

XML

LONG-LIVED ASSETS (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2015	Apr. 30, 2014	Jul. 31, 2014
Long Lived Assets [Line Items]
Depreciation, Total	$ 0	$ 1,000	$ 1,000	$ 4,000
Property, Plant and Equipment, Gross	111		111		111
Furniture and Fixtures [Member]
Long Lived Assets [Line Items]
Property, Plant and Equipment, Gross	$ 26,000		$ 26,000

XML

INVENTORIES

9 Months Ended

Apr. 30, 2015

Inventory Disclosure [Abstract]

INVENTORIES

3. INVENTORIES

The Company’s inventory consisted of the following at April 30, 2015 and July 31, 2014 (in thousands):

	April 30, 2015		July 31, 2014
Work-in-progress, spare parts and accessories	$	11	$	9
Finished goods		444		446
Total inventories	$	455	$	455

Although it does not plan to do so, if the Company were to dispose of the inventory outside the course of normal business, the amount recovered by the Company could be substantially less than cost.

XML

ROYALTIES (Details Textual) (Sensormedics [Member], USD $)	3 Months Ended	9 Months Ended
	Apr. 30, 2014	Apr. 30, 2014
Sensormedics [Member]
Indefinite-lived Intangible Assets [Line Items]
Royalty Income, Nonoperating	$ 0	$ 1,000

XML

STOCK-BASED COMPENSATION (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2015	Apr. 30, 2014	Nov. 30, 2010
Allocated Share-based Compensation Expense	$ 0	$ 1,000	$ 0	$ 4,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period			75,000
2000 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	2,000,000		2,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Description			Company’s Common Stock as of the grant date or an exercise price of not less than 110% of the fair value for a 10% shareholder.
Share-based Compensation Arrangement by Share-based Payment Award, Options, Other Increases (Decreases) in Period			378,750
2011 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized					4,000,000

XML

NOTES PAYABLE (Details) (USD $)	Apr. 30, 2015
2015	$ 1,400,000
Total	$ 1,400,000

XML

NOTES PAYABLE (Details Textual) (USD $)	0 Months Ended	1 Months Ended			0 Months Ended		1 Months Ended
	Sep. 12, 2011	May 30, 2012	Feb. 22, 2013	Sep. 24, 2014	Apr. 16, 2015	Feb. 02, 2015	Mar. 31, 2010	Apr. 30, 2015
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		11.00%
Debt Instrument, Face Amount		$ 50,000
2011 Promissory Notes [Member] | Unrealted Third Party [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	11.00%
Debt Instrument, Face Amount	100,000
2011 Promissory Notes [Member] | Frost Gamma Investment Trust [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	11.00%
Debt Instrument, Face Amount	50,000
Debt Instrument, Maturity Date	Jul. 31, 2015
Beneficial Ownership Percentage	10.00%
2012 Promissory Notes [Member] | Hsu Gamma Investments, L.P [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		11.00%
Debt Instrument, Face Amount		50,000
Debt Instrument, Maturity Date		Jul. 31, 2015
2013 Promissory Notes [Member] | Jane Hsiao [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage			11.00%
Debt Instrument, Face Amount			50,000
Debt Instrument, Maturity Date			Jul. 31, 2015
2014 Promissory Notes [Member] | Jane Hsiao [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage				11.00%
Debt Instrument, Face Amount				50,000
Debt Instrument, Maturity Date				Jul. 31, 2015
2015 Promissory Note [Member] | Frost Gamma Investment Trust [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage					11.00%
Debt Instrument, Face Amount					100,000
Debt Instrument, Maturity Date					Jul. 31, 2015
2015 Promissory Note [Member] | Jane Hsiao [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage						11.00%
Debt Instrument, Face Amount						50,000
Debt Instrument, Maturity Date						Jul. 31, 2015
2010 Credit Facility [Member]
Short-term Debt [Line Items]
Line of Credit Facility, Amount Outstanding							1,000,000	1,000,000
2010 Credit Facility [Member] | Maximum [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage							16.00%
2010 Credit Facility [Member] | Minimum [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage							11.00%
2010 Credit Facility [Member] | Hsu Gamma Investments, L.P [Member]
Short-term Debt [Line Items]
Line of Credit Facility, Amount Outstanding							1,000,000
2010 Credit Facility [Member] | Frost Gamma Investment Trust [Member]
Short-term Debt [Line Items]
Debt Instrument, Maturity Date							Jul. 31, 2015
Beneficial Ownership Percentage							10.00%

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Apr. 30, 2015

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation.  The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Non-Invasive Monitoring Systems of Florida, Inc., which has no current operations, and NIMS of Canada, Inc., a Canadian corporation, which has no current operations. All material inter-company accounts and transactions have been eliminated in consolidation.

Use of Estimates.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions, such as accounts receivable, warranty accrual, deferred taxes, and the input variables for stock based compensation as estimates, 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 materially from these estimates.

Cash and Cash Equivalents.  The Company considers all highly liquid short-term investments purchased with an original maturity date of three months or less to be cash equivalents.   The Company had approximately $81,000 and $21,000, on deposit in bank operating accounts at April 30, 2015 and July 31, 2014, respectively.

Allowances for Doubtful Accounts.  Royalties and other receivables are recorded at the stated amount of the transactions. The Company provides an allowance for royalties and other receivables it believes it may not collect in full. Receivables are written off when they are deemed to be uncollectible and all collection attempts have ceased. The amount of bad debt recorded each period and the resulting adequacy of the allowance at the end of each period are determined using a combination of the Company’s historical loss experience, customer-by-customer analysis of the Company’s accounts receivable each period and subjective assessments of the Company’s future bad debt exposure.

Inventories.  Inventories are stated at lower of cost or market using the first-in, first-out method, and are evaluated at least annually for impairment. Inventories at April 30, 2015and July 31, 2014 primarily consist of finished Exer-Rest units, spare parts and accessories. Provisions for potentially obsolete or slow-moving inventory are made based on management’s analysis of inventory levels, historical obsolescence and future sales forecasts.

Tooling and Equipment.  These assets are stated at cost and depreciated or amortized using the straight-line method, over their estimated useful lives.

Long-lived Assets.  The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In performing the review for recoverability, the Company estimates the future undiscounted cash flows expected to result from the use of the asset and its eventual disposition. If the sum of the expected future cash flows is less than the carrying amount of the assets, an impairment loss is recognized as the difference between the fair value and the carrying amount of the asset.

Taxes Assessed on Revenue-Producing Transactions. The Company presents sales taxes assessed on revenue-producing transactions between a seller and customer using the net presentation; thus, sales and cost of revenues are not affected by such taxes.

Income Taxes.  The Company provides for income taxes using an asset and liability based approach.  Deferred income tax assets and liabilities are recorded to reflect the tax consequences in future years of temporary differences between the carrying amounts of assets and liabilities for financial statement and income tax purposes.  The deferred tax asset for loss carryforwards and other potential future tax benefits has been fully offset by a valuation allowance since it is uncertain whether any future benefit will be realized.  The utilization of the loss carryforward is limited to future taxable earnings of the Company and may be subject to severe limitations if the Company undergoes an ownership change pursuant to the Internal Revenue Code Section 382.

The Company files its tax returns as prescribed by the laws of the jurisdictions in which it operates.  Tax years ranging from 2010 to 2014 remain open to examination by various taxing jurisdictions as the statute of limitations has not expired.  It is the Company’s policy to include income tax interest and penalty expense in its tax provision.

Revenue Recognition.  Revenue from product sales is recognized when persuasive evidence of an arrangement exists, the goods are shipped and title has transferred, the price is fixed or determinable, and the collection of the sales proceeds is reasonably assured. The Company recognizes royalties as they are earned, based on reports from licensees. Research and consulting revenue and revenue from sales of extended warranties on therapeutic platforms are recognized over the term of the respective agreements.

Advertising Costs.  The Company expenses all costs of advertising and promotions as incurred.  There were no advertising and promotional costs incurred for the three and nine months ended April 30, 2015and 2014.

Research and Development Costs.  Research and development costs are expensed as incurred, and primarily consist of payments to third parties for research and development of the Exer-Rest^® device and regulatory testing and other costs to obtain FDA approval.

Warranties.   The Company’s warranties are two years on all Exer-Rest^® products sold domestically and one year for products sold outside of the U.S. and are accrued based on management’s estimates and the history of warranty costs incurred. There were no material warranty costs incurred during the three and nine months ended April 30, 2015 and 2014, and management estimates that the Company’s accrued warranty expense at April 30, 2015will be sufficient to offset claims made for units under warranty.

Stock-based compensation.  The Company recognizes all share-based payments, including grants of stock options, as operating costs and expenses, based on their grant date fair values. Stock-based compensation expense is recognized over the vesting life of the underlying stock options and is included in selling, general and administrative costs and expenses in the condensed consolidated comprehensive statements of operations for all periods presented.

Fair Value of Financial Instruments.  Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of April 30, 2015and July 31, 2014. The respective carrying value of certain on-balance-sheet financial instruments such as cash and cash equivalents, royalties and other receivables, accounts payable and accrued expenses approximate fair values because they are short term in nature or they bear current market interest rates. As of April 30, 2015, the respective carrying value of the notes payable – related party and notes payable – other approximate our current borrowing rate for similar debt instruments of comparable maturity and are considered Level 3 measurements within the fair value hierarchy.

Foreign Currency Translation.  The functional currency for the Company’s foreign subsidiary is the local currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date while income and expense amounts are translated at average exchange rates during the period. The resulting foreign currency translation adjustments are disclosed as a separate component of shareholders deficit and accumulated other comprehensive loss. There were no foreign currency translation adjustments for the three and nine months ended April 30, 2014 and there were no foreign currency translation adjustments for the three months ended April 30, 2014 and $1,000 for the nine months ended April 30, 2015.

Comprehensive Income (Loss).  Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including foreign currency translations.

Loss Contingencies.  We recognize contingent losses that are probable and estimable. In this context, we define probability as circumstances under which events are likely to occur. In regards to legal costs, we record such costs as incurred.

XML

SHAREHOLDERS' EQUITY (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2015	Apr. 30, 2014
Subsidiary, Sale of Stock [Line Items]
Conversion of Stock, Shares Converted			13
Dividends, Preferred Stock	$ 0	$ 0	$ 0	$ 0
Common Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Convertible Preferred Stock, Shares Issued upon Conversion	65,000		65,000
Series B Preferred Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Preferred stock, liquidation preference	$ 100		$ 100
Dividends Payable, Amount Per Share	$ 10		$ 10
Series C Preferred Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Convertible Preferred Stock, Shares Issued upon Conversion	25		25
Preferred stock, liquidation preference	$ 1.00		$ 1.00
Dividends Payable, Amount Per Share	$ 0.10		$ 0.10
Preferred Stock, Redemption Price Per Share	$ 0.10		$ 0.10
Preferred Stock Conversion Premium	$ 4.20		$ 4.20
Series D Preferred Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Convertible Preferred Stock, Shares Issued upon Conversion	5,000		5,000
Preferred stock, liquidation preference	$ 1,500		$ 1,500
Stock Issued During Period, Shares, New Issues			0	0

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Apr. 30, 2015	Jul. 31, 2014
Current assets
Cash	$ 81	$ 21
Inventories, net	455	455
Prepaid expenses, deposits, and other current assets	9	49
Total current assets	545	525
Tooling and equipment, net	0	1
Total assets	545	526
Current liabilities
Accounts payable and accrued expenses	1,034	909
Customer deposits	4	4
Notes payable - Related Party	1,350	1,150
Notes payable - Other	50	50
Total current liabilities	2,438	2,113
Total liabilities	2,438	2,113
Shareholders' deficit
Common Stock, par value $0.01 per share; 400,000,000 shares authorized; 79,007,423 and 78,942,423 shares issued and outstanding, respectively.	790	789
Additional paid in capital	21,930	21,931
Accumulated deficit	(24,630)	(24,323)
Accumulated other comprehensive loss	(48)	(49)
Total shareholders' deficit	(1,893)	(1,587)
Total liabilities and shareholders' deficit	545	526
Series B Preferred Stock [Member]
Shareholders' deficit
Preferred Stock, Value, Issued	0	0
Total shareholders' deficit	0	0
Series C Preferred Stock [Member]
Shareholders' deficit
Preferred Stock, Value, Issued	62	62
Total shareholders' deficit	62	62
Series D Preferred Stock [Member]
Shareholders' deficit
Preferred Stock, Value, Issued	3	3
Total shareholders' deficit	$ 3	$ 3

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Operating activities
Net Loss	$ (307)	$ (330)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	1	4
Stock-based compensation expense	0	4
Changes in operating assets and liabilities
Royalties and other receivables, net	0	1
Inventories, net	0	2
Prepaid expenses, deposits and other current assets	41	41
Accounts payable and accrued expenses	125	73
Net cash used in operating activities	(140)	(205)
Financing activities
Proceeds from note payable - related party	200	0
Net cash provided by financing activities	200	0
Net (decrease) increase in cash	60	(205)
Cash, beginning of period	21	296
Cash, end of period	$ 81	$ 91

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COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $)	0 Months Ended	3 Months Ended		9 Months Ended
	Sep. 04, 2007	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2015	Apr. 30, 2014
Commitments And Contingencies [Line Items]
Operating Leases, Rent Expense		$ 15,000	$ 21,000	$ 45,000	$ 56,000
Manufacturing Costs	471,000
Cost of Utilities	150,000
Payments to Suppliers				1,700,000
Payments On Approval Of Product Prototype Concepts And Designs	150,000
Purchase Obligation		13,900,000		13,900,000
Exer Rest Units [Member]
Commitments And Contingencies [Line Items]
Purchase Obligation, Due in Next Twelve Months		2,600,000		2,600,000
Purchase Obligation, Due in Second Year		4,100,000		4,100,000
Purchase Obligation, Due in Third Year		8,800,000		8,800,000
Sing Lin [Member]
Commitments And Contingencies [Line Items]
Payables to Customers		41,000		41,000
Advances on Inventory Purchases		$ 90,000		$ 90,000

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BASIC AND DILUTED LOSS PER SHARE (Tables)

9 Months Ended

Apr. 30, 2015

Basic and Diluted Loss Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

Potential common shares not included in calculating diluted net loss per share are as follows:

	April 30, 2015	April 30, 2014
Stock options	378,750	538,750
Series C Preferred Stock	1,551,200	1,551,200
Series D Preferred Stock	13,910,000	13,975,000
Total	15,839,950	16,064,950

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LONG-LIVED ASSETS (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Apr. 30, 2015	Jul. 31, 2014
Long Lived Assets Held-for-sale [Line Items]
Property, Plant and Equipment, Gross	$ 111	$ 111
Less accumulated depreciation	(111)	(110)
Tooling and equipment, net	0	1
Furniture and Fixtures Leasehold Improvements Office Equipment and Computers [Member]
Long Lived Assets Held-for-sale [Line Items]
Property, Plant and Equipment, Gross	85	85
Website and Software [Member]
Long Lived Assets Held-for-sale [Line Items]
Property, Plant and Equipment, Gross	$ 26	$ 26
Property, Plant and Equipment, Useful Life	3 years
Minimum [Member] | Furniture and Fixtures Leasehold Improvements Office Equipment and Computers [Member]
Long Lived Assets Held-for-sale [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Maximum [Member] | Furniture and Fixtures Leasehold Improvements Office Equipment and Computers [Member]
Long Lived Assets Held-for-sale [Line Items]
Property, Plant and Equipment, Useful Life	5 years

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ORGANIZATION AND BUSINESS (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2015	Apr. 30, 2014	Jul. 31, 2014
Net income (loss)	$ (85,000)	$ (105,000)	$ (307,000)	$ (330,000)
Accumulated deficit	(24,630,000)		(24,630,000)		(24,323,000)
Cash	81,000		81,000		21,000
Negative Working Capital	$ 1,893,000		$ 1,893,000

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ORGANIZATION AND BUSINESS

9 Months Ended

Apr. 30, 2015

Organization and Business [Abstract]

ORGANIZATION AND BUSINESS

1. ORGANIZATION AND BUSINESS

Organization.  Non-Invasive Monitoring Systems, Inc., a Florida corporation (together with its consolidated subsidiaries, the “Company” or “NIMS”), began business as a medical diagnostic monitoring company to develop computer-aided continuous monitoring devices to detect abnormal respiratory and cardiac events using sensors on the human body’s surface. It has ceased to operate in this market and has licensed the rights to its technology. The Company is now focused on developing and marketing its Exer-Rest^® line of acceleration therapeutic platforms based upon unique, patented whole body periodic acceleration (“WBPA”) technology. The Exer-Rest line of acceleration therapeutic platforms currently includes the Exer-Rest AT, AT3800 and AT4700 models.

Business.  The Company is developing and marketing its Exer-Rest^® line of acceleration therapeutic platforms based upon unique, patented whole body periodic acceleration (“WBPA”) technology. The Exer-Rest line of acceleration therapeutic platforms currently includes the Exer-Rest AT, AT3800 and AT4700 models.

The Company received revenue from royalties on sales of diagnostic monitoring hardware and software by SensorMedics and from VivoMetrics in prior years. SensorMedics indicated they will discontinue licensed product sales after current inventory is depleted and, therefore, the royalty revenue from SensorMedics is expected to be minimal to none. VivoMetrics ceased operations in July 2009 and filed for Chapter 11 bankruptcy protection in October 2009.  Pursuant to VivoMetrics’ approved bankruptcy plan of reorganization, our license with VivoMetrics was assigned to another company; however, there can be no assurance as to the future amount of royalty revenue, if any, that we may derive from this license or from our existing license with SensorMedics.  In fiscal year 2009, NIMS began commercial sales of its third generation Exer-Rest therapeutic platforms.

During the calendar years 2005to 2007, the Company designed, developed and manufactured the first Exer-Rest platform (now the Exer-Rest AT), a second generation acceleration therapeutics platform, and updated its operations to promote the Exer-Rest AT overseas as an aid to improve circulation and joint mobility and to relieve minor aches and pains.

The Company has developed a third generation of Exer-Rest acceleration therapeutic platforms (designated the Exer-Rest AT3800 and the Exer-Rest AT4700) that has been manufactured by Sing Lin Technologies Co. Ltd. (“Sing Lin”) based in Taichung, Taiwan (see Note 10).

The Company’s financial statements have been prepared and presented on a basis assuming it will continue as a going concern. As reflected in the accompanying unaudited condensed consolidated financial statements, the Company had net losses of $307,000 and $330,000 for the nine month periods ended April 30, 2015 and 2014, respectively, and has experienced cash outflows from operating activities. The Company also has an accumulated deficit of $24.6 million as of April 30, 2015, and has potential purchase obligations at April 30, 2015(see note 10). The Company had $81,000 of cash at April 30, 2015and negative working capital of approximately $1,893,000. These matters raise substantial doubt about the Company’s ability to continue as a going concern.

The Company is continuing its business activities without any significant revenues from product sales. Absent any significant revenues from product sales, the Company is seeking debt or equity financing or a strategic collaboration.  There is no assurance that the Company will be successful in this regard, and, if not successful, that it will be able to continue its business activities. The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary from the outcome of this uncertainty.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Apr. 30, 2015	Jul. 31, 2014
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	79,007,423	78,942,423
Common stock, shares outstanding	79,007,423	78,942,423
Series B Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized	100	100
Preferred stock, shares issued	100	100
Preferred stock, shares outstanding	100	100
Preferred stock, liquidation preference	$ 10	$ 10
Series C Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized	62,048	62,048
Preferred stock, shares issued	62,048	62,048
Preferred stock, shares outstanding	62,048	62,048
Preferred stock, liquidation preference	62	62
Series D Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized	5,500	5,500
Preferred stock, shares issued	2,795	2,795
Preferred stock, shares outstanding	2,795	2,795
Preferred stock, liquidation preference	$ 4,193	$ 4,193

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LONG-LIVED ASSETS

9 Months Ended

Apr. 30, 2015

Long Lived Assets [Abstract]

LONG-LIVED ASSETS

11. LONG-LIVED ASSETS

The Company’s long-lived assets include furniture and equipment, office equipment and computers, tooling, websites and software, leasehold improvements, patents and trademarks. Tooling and equipment, net of accumulated depreciation, consists of the following at April 30, 2015 and July 31, 2014 (in thousands):

	Estimated Useful Life	April 30, 2015		July 31, 2014
Furniture and fixtures, leasehold improvements, office equipment and computers	3 – 5years	$	85	$	85
Website and software	3 years		26		26
			111		111
Less accumulated depreciation			(111)		(110)
Tooling and equipment, net		$	0	$	1

Depreciation expense was $0 and $1,000 during the three and nine months ended April 30, 2015 and was $1,000 and $4,000 during the three and nine months ended April 30, 2014. Nine Exer-Rest^® AT 3800 and AT 4700 demonstration units are included in furniture and fixtures at an aggregate cost of $26,000. These units were placed in service in fiscal 2009 and 2010, and were fully depreciated based upon five-year estimated useful lives.

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Document And Entity Information	9 Months Ended
	Apr. 30, 2015	Jun. 15, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Entity Registrant Name	NON INVASIVE MONITORING SYSTEMS INC /FL/
Entity Central Index Key	0000720762
Current Fiscal Year End Date	--07-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	NIMU
Entity Common Stock, Shares Outstanding		79,007,423

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Apr. 30, 2015

Accounting Policies [Abstract]

Consolidation

Consolidation.  The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Non-Invasive Monitoring Systems of Florida, Inc., which has no current operations, and NIMS of Canada, Inc., a Canadian corporation, which has no current operations. All material inter-company accounts and transactions have been eliminated in consolidation.

Use of Estimates

Use of Estimates.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions, such as accounts receivable, warranty accrual, deferred taxes, and the input variables for stock based compensation as estimates, 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 materially from these estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents.  The Company considers all highly liquid short-term investments purchased with an original maturity date of three months or less to be cash equivalents.   The Company had approximately $81,000 and $21,000, on deposit in bank operating accounts at April 30, 2015 and July 31, 2014, respectively.

Allowances for Doubtful Accounts

Allowances for Doubtful Accounts.  Royalties and other receivables are recorded at the stated amount of the transactions. The Company provides an allowance for royalties and other receivables it believes it may not collect in full. Receivables are written off when they are deemed to be uncollectible and all collection attempts have ceased. The amount of bad debt recorded each period and the resulting adequacy of the allowance at the end of each period are determined using a combination of the Company’s historical loss experience, customer-by-customer analysis of the Company’s accounts receivable each period and subjective assessments of the Company’s future bad debt exposure.

Inventories

Inventories.  Inventories are stated at lower of cost or market using the first-in, first-out method, and are evaluated at least annually for impairment. Inventories at April 30, 2015and July 31, 2014 primarily consist of finished Exer-Rest units, spare parts and accessories. Provisions for potentially obsolete or slow-moving inventory are made based on management’s analysis of inventory levels, historical obsolescence and future sales forecasts.

Tooling and Equipment

Tooling and Equipment.  These assets are stated at cost and depreciated or amortized using the straight-line method, over their estimated useful lives.

Long-lived Assets

Long-lived Assets.  The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In performing the review for recoverability, the Company estimates the future undiscounted cash flows expected to result from the use of the asset and its eventual disposition. If the sum of the expected future cash flows is less than the carrying amount of the assets, an impairment loss is recognized as the difference between the fair value and the carrying amount of the asset.

Taxes Assessed On Revenue-Producing Transactions

Taxes Assessed on Revenue-Producing Transactions. The Company presents sales taxes assessed on revenue-producing transactions between a seller and customer using the net presentation; thus, sales and cost of revenues are not affected by such taxes.

Income Taxes

Income Taxes.  The Company provides for income taxes using an asset and liability based approach.  Deferred income tax assets and liabilities are recorded to reflect the tax consequences in future years of temporary differences between the carrying amounts of assets and liabilities for financial statement and income tax purposes.  The deferred tax asset for loss carryforwards and other potential future tax benefits has been fully offset by a valuation allowance since it is uncertain whether any future benefit will be realized.  The utilization of the loss carryforward is limited to future taxable earnings of the Company and may be subject to severe limitations if the Company undergoes an ownership change pursuant to the Internal Revenue Code Section 382.

The Company files its tax returns as prescribed by the laws of the jurisdictions in which it operates.  Tax years ranging from 2010 to 2014 remain open to examination by various taxing jurisdictions as the statute of limitations has not expired.  It is the Company’s policy to include income tax interest and penalty expense in its tax provision.

Revenue Recognition

Revenue Recognition.  Revenue from product sales is recognized when persuasive evidence of an arrangement exists, the goods are shipped and title has transferred, the price is fixed or determinable, and the collection of the sales proceeds is reasonably assured. The Company recognizes royalties as they are earned, based on reports from licensees. Research and consulting revenue and revenue from sales of extended warranties on therapeutic platforms are recognized over the term of the respective agreements.

Advertising Costs

Advertising Costs.  The Company expenses all costs of advertising and promotions as incurred.  There were no advertising and promotional costs incurred for the three and nine months ended April 30, 2015and 2014.

Research and Development Costs

Research and Development Costs.  Research and development costs are expensed as incurred, and primarily consist of payments to third parties for research and development of the Exer-Rest^® device and regulatory testing and other costs to obtain FDA approval.

Warranties

Warranties.   The Company’s warranties are two years on all Exer-Rest^® products sold domestically and one year for products sold outside of the U.S. and are accrued based on management’s estimates and the history of warranty costs incurred. There were no material warranty costs incurred during the three and nine months ended April 30, 2015 and 2014, and management estimates that the Company’s accrued warranty expense at April 30, 2015will be sufficient to offset claims made for units under warranty.

Stock-based compensation

Stock-based compensation.  The Company recognizes all share-based payments, including grants of stock options, as operating costs and expenses, based on their grant date fair values. Stock-based compensation expense is recognized over the vesting life of the underlying stock options and is included in selling, general and administrative costs and expenses in the condensed consolidated comprehensive statements of operations for all periods presented.

Fair Value of Financial Instruments

Fair Value of Financial Instruments.  Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of April 30, 2015and July 31, 2014. The respective carrying value of certain on-balance-sheet financial instruments such as cash and cash equivalents, royalties and other receivables, accounts payable and accrued expenses approximate fair values because they are short term in nature or they bear current market interest rates. As of April 30, 2015, the respective carrying value of the notes payable – related party and notes payable – other approximate our current borrowing rate for similar debt instruments of comparable maturity and are considered Level 3 measurements within the fair value hierarchy.

Foreign Currency Translation

Foreign Currency Translation.  The functional currency for the Company’s foreign subsidiary is the local currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date while income and expense amounts are translated at average exchange rates during the period. The resulting foreign currency translation adjustments are disclosed as a separate component of shareholders deficit and accumulated other comprehensive loss. There were no foreign currency translation adjustments for the three and nine months ended April 30, 2014 and there were no foreign currency translation adjustments for the three months ended April 30, 2014 and $1,000 for the nine months ended April 30, 2015.

Comprehensive Income (Loss)

Comprehensive Income (Loss).  Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including foreign currency translations.

Loss Contingencies

Loss Contingencies.  We recognize contingent losses that are probable and estimable. In this context, we define probability as circumstances under which events are likely to occur. In regards to legal costs, we record such costs as incurred.

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CONDENSED CONSOLIDATED COMPREHENSIVE STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2015	Apr. 30, 2014
Revenues
Product sales, net	$ 0	$ 0	$ 0	$ 0
Royalties	0	0	0	1
Total revenues	0	0	0	1
Operating costs and expenses
Cost of sales	0	0	0	0
Selling, general and administrative	50	73	203	231
Research and development	0	0	0	1
Total operating costs and expenses	50	73	203	232
Operating loss	(50)	(73)	(203)	(231)
Interest expense, net	(35)	(32)	(104)	(99)
Net loss	(85)	(105)	(307)	(330)
Other Comprehensive income currency translation adjustment	0	0	1	0
Comprehensive net loss	$ (85)	$ (105)	$ (306)	$ (330)
Weighted average number of common shares outstanding - Basic and diluted	79,007	78,942	78,986	78,942
Basic and diluted loss per common share	$ 0.00	$ 0.00	$ 0.00	$ 0.00

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NOTES PAYABLE

9 Months Ended

Apr. 30, 2015

Notes Payable [Abstract]

NOTES PAYABLE

6. NOTES PAYABLE

2010 Credit Facility.  On March 31, 2010, the Company entered into a Note and Security Agreement with Frost Gamma Investments Trust (“Frost Gamma”), a trust controlled by Dr. Phillip Frost, which beneficially owns in excess of 10% of the Company’s common stock, and Hsu Gamma Investments, LP, an entity controlled by the Company’s Chairman (collectively, the “Lenders”), pursuant to which the Lenders have provided a revolving credit line (the “Credit Facility”) in the aggregate principal amount of up to $1.0 million, secured by all of the Company’s personal property. The Company is permitted to borrow and reborrow from time to time under the Credit Facility until July 31, 2013 and subsequently the date was extended to July 31, 2015(the “Credit Facility Maturity Date”). The interest rate payable on amounts outstanding under the Credit Facility is 11% per annum, and increases to 16% per annum after the Credit Facility Maturity Date or after an event of default. All amounts owing under the Credit Facility are required to be repaid by the Credit Facility Maturity Date, and amounts outstanding are prepayable at any time. As of April 30, 2015, the Company had drawn an aggregate of $1,000,000 under the Credit Facility and there is no available balance remaining.

2011 Promissory Notes.  On September 12, 2011, the Company entered into two promissory notes in the principal amount of $50,000 each with Frost Gamma (“2011 Frost Note”) and with an unrelated third party for a total of $100,000. The interest rate payable by NIMS on both the Frost Gamma Note and the unrelated third party note is 11% per annum, payable on the maturity date of September 12, 2014 and subsequently the date was extended to July 31, 2015(the “Promissory Notes Maturity Date”).  The Company may prepay either or both notes in advance of the Promissory Notes Maturity Date without premium or penalty.

2012 Promissory Note. On May 30, 2012, the Company entered into a promissory note in the principal amount of $50,000 with Hsu Gamma, an entity controlled by NIMS’ Chairman of the Board and Interim Chief Executive Officer, Jane H. Hsiao, (the “Hsu Gamma Note”).   The interest rate payable by NIMS on the Hsu Gamma Note is 11% per annum, payable on the maturity date of September 12, 2014 and subsequently the date was extended to July 31, 2015. The Hsu Gamma Note may be prepaid in advance of the Promissory Notes Maturity Date without premium or penalty.

2013 Promissory Note.   On February 22, 2013, the Company entered into a promissory note in the amount of $50,000 with Jane Hsiao, the Company’s Chairman of the Board and Interim Chief Executive Officer (the “2013 Hsiao Note”). The interest rate payable by the Company on the 2013 Hsiao Note is 11% per annum, originally payable on the maturity date of September 12, 2014 and subsequently the date was extended to July 31, 2015. The 2013 Hsiao Note may be prepaid in advance of the Promissory Notes Maturity Date without premium or penalty.

2014 Promissory Note.  On September 24, 2014, the Company entered into a promissory note (the “2014 Hsiao Note”) in the principal amount of $50,000 with Jane Hsiao, NIMS' Chairman of the Board and Interim Chief Executive Officer. The interest rate payable by NIMS on the 2014 Hsiao Note is 11% per annum, payable on the maturity date of July 31, 2015. The 2014 Hsiao Note may be prepaid in advance of the Maturity Date without penalty.

2015 Promissory Notes.  On February 2, 2015, the Company entered into a promissory note (the “2015 Hsiao Note”) in the principal amount of $50,000 with Jane Hsiao, NIMS' Chairman of the Board and Interim Chief Executive Officer. The interest rate payable by the Company on the 2015 Hsiao Note is 11% per annum, payable on the maturity date of July 31, 2015. The 2015 Hsiao Note may be prepaid in advance of the Maturity Date without penalty.

On April 16, 2015, the Company entered into a promissory note (“2015 Frost Note”) in the amount of $100,000 with Frost Gamma. The interest rate payable by the Company on the 2015 Frost Note is 11% per annum, payable on the maturity date of July 31, 2015. The 2015 Frost Note may be prepaid in advance of the Promissory Notes Maturity Date without premium or penalty.

At April 30, 2015, the Company was obligated under the above described Credit Facility and promissory notes to make future principal payments (excluding interest) as follows:

Year Ending July 31,
2015		1,400,000
	$	1,400,000

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ROYALTIES

9 Months Ended

Apr. 30, 2015

Royalties [Abstract]

ROYALTIES

5. ROYALTIES

The Company is a party to two licensing agreements with SensorMedics and VivoMetrics. The Company received royalty income from the sale of its diagnostic monitoring hardware and software from SensorMedics and previously received royalties from VivoMetrics prior to its bankruptcy. There was no royalty income from the SensorMedics license during the three and nine months ended April 30, 2015, respectively, and $0 and $1,000 for the three and nine months ended April 30, 2014. SensorMedics indicated they will discontinue licensed product sales after inventory is depleted and, therefore, the royalty revenue from SensorMedics is expected to be minimal to none. There were no royalties recognized from VivoMeterics for the three and nine months ended April 30, 2015 and 2014. VivoMetrics ceased operations in July 2009 and filed for Chapter 11 bankruptcy protection in October 2009. Under VivoMetrics’ approved bankruptcy plan of reorganization, our license with VivoMetrics was assigned to another company; however, there can be no assurance as to the future amount of royalty income, if any, that may result from this license.

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LONG-LIVED ASSETS (Tables)

9 Months Ended

Apr. 30, 2015

Long Lived Assets [Abstract]

Schedule of Long Lived Assets Held-for-sale

Tooling and equipment, net of accumulated depreciation, consists of the following at April 30, 2015 and July 31, 2014 (in thousands):

	Estimated Useful Life	April 30, 2015		July 31, 2014
Furniture and fixtures, leasehold improvements, office equipment and computers	3 – 5years	$	85	$	85
Website and software	3 years		26		26
			111		111
Less accumulated depreciation			(111)		(110)
Tooling and equipment, net		$	0	$	1

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INVENTORIES (Tables)

9 Months Ended

Apr. 30, 2015

Inventory Disclosure [Abstract]

Schedule of Inventory, Current

The Company’s inventory consisted of the following at April 30, 2015 and July 31, 2014 (in thousands):

	April 30, 2015		July 31, 2014
Work-in-progress, spare parts and accessories	$	11	$	9
Finished goods		444		446
Total inventories	$	455	$	455

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RELATED PARTY TRANSACTIONS

9 Months Ended

Apr. 30, 2015

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

9. RELATED PARTY TRANSACTIONS

The Company signed a five year lease for office space in Miami, Florida with a company owned by Dr. Phillip Frost, who is the beneficial owner of more than 10% of the Company’s Common Stock. The current rental payments under the Miami office lease, which commenced January 1, 2008 and expired on December 31, 2012, are approximately $1,250 per month and are currently on a month-to-month basis. The Company recorded rent expense related to the Miami lease of approximately $4,000 and $12,000 respectively, for the three and nine months ended April 30, 2015, and approximately $4,000 and $11,000, respectively, for the three and nine months ended April 30, 2014

The Company signed a three year lease for warehouse space in Hialeah, Florida with a company jointly controlled by Dr. Frost and Dr. Jane Hsiao, the Company’s Chairman and Interim CEO. The rental payments under the Hialeah warehouse lease, which commenced February 1, 2009 and expired on January 31, 2012, then continued on a month-to-month basis. As further described in Note 10, the Company vacated the Hialeah warehouse in September 2014 and entered into a new lease with an unrelated third party. The Company recorded rent expense related to the Hialeah warehouse of approximately $0 and  $6,000 for the three and nine months ended April 30, 2015 and $17,000 and $45,000, respectively, for the three and nine months ended April 30, 2014.

As more fully described in Note 6, the Company entered into a $1.0 million Credit Facility in March 2010 with both an entity controlled by Dr. Frost and an entity controlled by Dr. Hsiao. There were no advances under the Credit Facility during the three and nine months ended April 30, 2015. There was $1.0 million outstanding balance due, plus interest, on the Credit Facility as of April 30, 2015 and July 31, 2014 and there is no available balance remaining. The Credit Facility expires in July 31, 2015.

On September 12, 2011, the Company entered into a Promissory Note in the principal amount of $50,000 with Frost Gamma Investments Trust (“Frost Gamma”), a trust controlled by Dr. Phillip Frost, which beneficially owns in excess of 10% of the Company’s common stock (the “Frost Gamma Note”). The interest rate payable on the Frost Gamma Note is 11% per annum, payable on the Promissory Notes Maturity Date of July 31, 2015. The Company may prepay the Frost Gamma Note without premium or penalty.

On May 30, 2012, the Company entered into a Promissory Note in the principal amount of $50,000 with Hsu Gamma Investments, L.P. (“Hsu Gamma”), an entity controlled by NIMS’ Chairman of the Board and Interim Chief Executive Officer, Jane H. Hsiao, (the “Hsu Gamma Note”). The interest rate payable on the Hsu Gamma Note is 11% per annum, payable on the Promissory Notes Maturity Date of July 31, 2015. The Company may prepay the HSU Gamma Note without premium or penalty.

On February 22, 2013, the Company entered into a Promissory Note in the amount of $50,000 with Jane Hsiao, the Company’s Chairman of the Board and Interim Chief Executive Officer (the “Hsiao Note”). The interest rate payable by the Company on the Hsiao Note is 11% per annum, payable on the Promissory Notes Maturity Date of July 31, 2015. The Hsiao Note may be prepaid in advance of the Promissory Notes Maturity Date without penalty.

On September 24, 2014, the Company entered into a promissory note (the “2014 Hsiao Note”) in the principal amount of $50,000 with Jane Hsiao, NIMS' Chairman of the Board and Interim Chief Executive Officer. The interest rate payable by NIMS on the 2014 Hsiao Note is 11% per annum, payable on the maturity date of July 31, 2015. The 2014 Hsiao Note may be prepaid in advance of the Maturity Date without penalty.

On February 2, 2015, the Company entered into a promissory note (the “2015 Hsiao Note”) in the principal amount of $50,000 with Jane Hsiao, NIMS' Chairman of the Board and Interim Chief Executive Officer. The interest rate payable by the Company on the 2015 Hsiao Note is 11% per annum, payable on the maturity date of July 31, 2015. The 2015 Hsiao Note may be prepaid in advance of the Maturity Date without penalty.

On April 16, 2015, the Company entered into a promissory note (“2015 Frost Note”) in the amount of $100,000 with Frost Gamma. The interest rate payable by the Company on the 2015 Frost Note is 11% per annum, payable on the maturity date of July 31, 2015. The 2015 Frost Note may be prepaid in advance of the Promissory Notes Maturity Date without premium or penalty.

The Company also incurred interest expense related to the Credit Facility of approximately $27,000 and $83,000 for the three and nine months ended April 30, 2015 , as well as for the three and nine months ended April 30 2014, respectively. The Company also incurred interest expense related to the promissory notes of approximately $8,000 and $21,000 for the three and nine months ended April 30, 2015, respectively, and $5,000 and $16,000 for the three and nine months ended 2014, respectively. Approximately $602,000 and $498,000 of accrued interest remained outstanding for all debt at April 30, 2015 and July 31, 2014, respectively.

Dr. Hsiao, Dr. Frost and directors Steven Rubin and Rao Uppaluri are each significant stockholders, officers and/or directors or former directors of TransEnterix, Inc. (formerly SafeStitch Medical, Inc.) (“TransEnterix”), a publicly-traded, medical device manufacturer, Tiger X Medical, Inc. (“Tiger X”) (formerly known as Cardo Medical, Inc.), a publicly traded former medical device company, and IDI, Inc. (“IDI”) (formerly known as Tiger Media), a publicly-traded data fusion company. The Company’s Chief Financial Officer also served as the Chief Financial Officer of TransEnterix until October 2, 2013. The Company’s Chief Financial Officer continued as an employee of TransEnterix until March 3, 2014, during which he supervised the Miami based accounting staffs of TransEnterix under a cost sharing arrangement whereby the total salaries of the Miami based accounting staffs of NIMS and TransEnterix were shared.  Since December 2009, the Company’s Chief Legal Officer has served under a similar cost sharing arrangement as Corporate Counsel of IDI and as the Chief Legal Officer of each of TransEnterix and Tiger X. The Company recorded additions to selling, general and administrative costs and expenses to account for the sharing of costs under these arrangements of $9,000 and $27,000, respectively, for the three and nine months ended April 30, 2015, and $9,000 and $27,000, respectively, for the three and nine months ended April 30, 2014. Accounts payable to TransEnterix related to these arrangements totaled approximately $1,200 and $3,000 respectively, at April 30, 2015 and July 31, 2014.  

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SHAREHOLDERS' EQUITY

9 Months Ended

Apr. 30, 2015

Shareholders' Equity [Abstract]

SHAREHOLDERS' EQUITY

7. SHAREHOLDERS' EQUITY

The Company has three classes of Preferred Stock.  Holders of Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are entitled to vote with the holders of common stock as a single class on all matters. 

Series B Preferred Stock is not redeemable by the Company and has a liquidation value of $100 per share, plus declared and unpaid dividends, if any.  Dividends are non-cumulative, and are at the rate of $10 per share, if declared. 

Series C Preferred Stock is redeemable by the Company at a price of $0.10 per share upon 30 days prior written notice.  This series has a liquidation value of $1.00 per share plus declared and unpaid dividends, if any.  Dividends are non-cumulative, and are at the rate of $0.10 per share, if declared.  Each share of Series C Preferred Stock is convertible into 25shares of the Company’s common stock upon payment of a conversion premium of $4.20 per share of common stock.  The conversion rate and the conversion premium are subject to adjustments in the event of stock splits, stock dividends, reverse stock splits and certain other events. 

Series D Preferred Stock is not redeemable by the Company.  This series has a liquidation value of $1,500 per share, plus declared and unpaid dividends, if any.  Each share of Series D Preferred Stock is convertible into 5,000 shares of the Company’s common stock.  The conversion rate is subject to adjustments in the event of stock splits, stock dividends, reverse stock splits and certain other events. 

The Company issued 65,000 shares of the Company’s common stock for the conversion of 13 shares of Series D Preferred Stock during the nine months ended April 30, 2015 and did not issue any shares of the Company’s common stock for the nine months ended April 30, 2014. No preferred stock dividends were declared for the three and nine months ended April 30, 2015 and 2014.

The Company did not issue any shares for the three and nine months ended April 30, 2015. The Company did not declare any preferred stock dividends for the three and nine months ended April 30, 2015 and 2014.

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BASIC AND DILUTED LOSS PER SHARE

9 Months Ended

Apr. 30, 2015

Basic and Diluted Loss Per Share [Abstract]

BASIC AND DILUTED LOSS PER SHARE

8. BASIC AND DILUTED LOSS PER SHARE

Basic net loss per common share is computed by dividing net loss attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Diluted potential common shares consist of incremental shares issuable upon exercise of stock options and warrants and conversion of preferred stock. In computing diluted net loss per share for the three and nine months ended April 30, 2015 and 2014, no dilution adjustment has been made to the weighted average outstanding common shares because the assumed exercise of outstanding options and warrants and the conversion of preferred stock would be anti-dilutive.

Potential common shares not included in calculating diluted net loss per share are as follows:

	April 30, 2015	April 30, 2014
Stock options	378,750	538,750
Series C Preferred Stock	1,551,200	1,551,200
Series D Preferred Stock	13,910,000	13,975,000
Total	15,839,950	16,064,950

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Apr. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

10. COMMITMENTS AND CONTINGENCIES

Leases. 

The Company is under an operating lease agreement for office space that expired in 2012 and continues on a month to month basis. The Company is also under an operating lease agreement for warehouse space that runs through September 2015 and requires for the payment of taxes, insurance and utilities. 

Generally, the lease agreements require the payment of base rent plus escalations for increases in building operating costs and real estate taxes. Rental expense for operating leases amounted $15,000 and $45,000 for the three and nine months ended April 30, 2015 and $21,000 and $56,000 for the three and nine months ended April 30, 2014

Product Development and Supply Agreement.

On September 4, 2007, the Company entered into a Product Development and Supply Agreement (the “Agreement”) with Sing Lin Technologies Co. Ltd., a company based in Taichung, Taiwan ("Sing Lin"). Pursuant to the Agreement, the Company consigned to Sing Lin the development and design of the next generation Exer-Rest and related devices. The Agreement commenced as of September 3, 2007 and had a term that extended three years from the acceptance by NIMS of the first run of production units. Thereafter, the Agreement automatically renewed for successive one year terms unless either party sent the other a notice of non-renewal. Either party was permitted to terminate the Agreement with ninety days prior written notice. Upon termination, each party’s obligations under the Agreement were to be limited to obligations related to confirm orders placed prior to the termination date.

Pursuant to the Agreement, Sing Lin designed, developed and manufactured the tooling required to manufacture the acceleration therapeutic platforms for a total cost to the Company of $471,000. Sing Lin utilized the tooling in the performance of its production obligations under the Agreement. The Company paid Sing Lin $150,000 of the tooling cost upon execution of the Agreement and $150,000 upon the Company’s approval of the product prototype concepts and designs. The balance of the final tooling cost became due and payable in September 2008 upon acceptance of the first units produced using the tooling, and was paid in full during the year ended July 31, 2009.

Under the now-terminated Agreement, the Company also granted Sing Lin the exclusive distribution rights for the products in certain countries in the Far East, including Taiwan, China, Japan, South Korea, Malaysia, Indonesia and certain other countries. Sing Lin agreed not to sell the Products outside its geographic areas in the Far East.

The Agreement provided for the Company to purchase approximately $2.6 million of Exer-Rest units within one year of the September 2008 acceptance of the final product. The Agreement further provided for the Company to purchase $4.1 million and $8.8 million of Exer-Rest products in the second and third years following such acceptance, respectively. These minimum purchase amounts were based upon 2007 product costs multiplied by volume commitments. Through April 30, 2015, the Company had paid Sing Lin $1.7 million in connection with orders placed through that date. Of this amount, $90,000 was previously included as advances to contract manufacturer. As of April 30, 2015, the Company has approximately $41,000 of payables due to Sing Lin. As of April 30, 2015 and July 31, 2014, aggregate minimum future purchases under the Agreement totaled approximately $13.9 million.

As of April 30, 2015, the Company had not placed orders sufficient to meet the first-year or second-year minimum purchase obligations under the Agreement. The Company notified Sing Lin in June 2010 that it was terminating the Agreement effective September 2010, and Sing Lin in July 2010 demanded that the Company place orders sufficient to fulfill the three year minimum purchase obligations in the Agreement. As of June 15, 2015, Sing Lin has not followed up on its July 2010 demand. There can be no assurance that Sing Lin will not attempt to enforce its remedies under the Agreement, or pursue other potential remedies.

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RELATED PARTY TRANSACTIONS (Details Textual) (USD $)	3 Months Ended		9 Months Ended		1 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2015	Apr. 30, 2014	Jan. 31, 2008	Jul. 31, 2014	May 30, 2012	Sep. 12, 2011	Feb. 22, 2013	Sep. 24, 2014	Apr. 16, 2015	Feb. 02, 2015	Mar. 31, 2010
Related Party Transaction [Line Items]
Operating Leases, Rent Expense	$ 15,000	$ 21,000	$ 45,000	$ 56,000
Debt Instrument, Interest Rate, Stated Percentage							11.00%
Debt Instrument, Face Amount							50,000
Interest Payable	602,000		602,000			498,000
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party	9,000	9,000	27,000	27,000
2011 Promissory Notes [Member] | Frost Gamma Investment Trust [Member]
Related Party Transaction [Line Items]
Debt Instrument, Interest Rate, Stated Percentage								11.00%
Debt Instrument, Face Amount								50,000
Beneficial Ownership Percentage								10.00%
2012 Promissory Notes [Member] | Hsu Gamma Investments, L.P [Member]
Related Party Transaction [Line Items]
Debt Instrument, Interest Rate, Stated Percentage							11.00%
Debt Instrument, Face Amount							50,000
2013 Promissory Notes [Member] | Jane Hsiao [Member]
Related Party Transaction [Line Items]
Debt Instrument, Interest Rate, Stated Percentage									11.00%
Debt Instrument, Face Amount									50,000
Promissory Notes [Member]
Related Party Transaction [Line Items]
Interest Expense, Debt	8,000	5,000	21,000	16,000
2014 Promissory Notes [Member] | Jane Hsiao [Member]
Related Party Transaction [Line Items]
Debt Instrument, Interest Rate, Stated Percentage										11.00%
Debt Instrument, Face Amount										50,000
2015 Promissory Note [Member] | Frost Gamma Investment Trust [Member]
Related Party Transaction [Line Items]
Debt Instrument, Interest Rate, Stated Percentage											11.00%
Debt Instrument, Face Amount											100,000
2015 Promissory Note [Member] | Jane Hsiao [Member]
Related Party Transaction [Line Items]
Debt Instrument, Interest Rate, Stated Percentage												11.00%
Debt Instrument, Face Amount												50,000
Miami Lease [Member]
Related Party Transaction [Line Items]
Payments for Rent	4,000	4,000	12,000	11,000	1,250
Hialeah Lease [Member]
Related Party Transaction [Line Items]
Operating Leases, Rent Expense	0	17,000	6,000	45,000
Dr Phillip Frost [Member]
Related Party Transaction [Line Items]
Beneficial Ownership Percentage	10.00%		10.00%
TransEnterix [Member]
Related Party Transaction [Line Items]
Accounts Payable, Related Parties	1,200		1,200			3,000
2010 Credit Facility [Member]
Related Party Transaction [Line Items]
Line of Credit Facility, Amount Outstanding	1,000,000		1,000,000										1,000,000
2010 Credit Facility [Member] | Hsu Gamma Investments, L.P [Member]
Related Party Transaction [Line Items]
Line of Credit Facility, Amount Outstanding													1,000,000
2010 Credit Facility [Member] | Frost Gamma Investment Trust [Member]
Related Party Transaction [Line Items]
Beneficial Ownership Percentage													10.00%
Credit Facility [Member]
Related Party Transaction [Line Items]
Interest Expense, Debt	$ 27,000	$ 27,000	$ 83,000	$ 83,000

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NOTES PAYABLE (Tables)

9 Months Ended

Apr. 30, 2015

Notes Payable [Abstract]

Schedule of Line of Credit Facilities

At April 30, 2015, the Company was obligated under the above described Credit Facility and promissory notes to make future principal payments (excluding interest) as follows:

Year Ending July 31,
2015		1,400,000
	$	1,400,000

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INVENTORIES (Details) (USD $) In Thousands, unless otherwise specified	Apr. 30, 2015	Jul. 31, 2014
Work-in-progress, spare parts and accessories	$ 11	$ 9
Finished goods	444	446
Total inventories	$ 455	$ 455

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT (USD $) In Thousands, except Share data	Total	Common Stock [Member]	Additional Paid In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Series B Preferred Stock [Member]	Series C Preferred Stock [Member]	Series D Preferred Stock [Member]
Balance at Jul. 31, 2014	$ (1,587)	$ 789	$ 21,931	$ (24,323)	$ (49)	$ 0	$ 62	$ 3
Balance, shares at Jul. 31, 2014		78,942,423				100	62,048	2,795
Conversion of Preferred Stock to Common Stock (in shares)		65,000				0	0	(13)
Conversion of Preferred Stock to Common Stock	0	1	(1)	0	0	0	0	0
Foreign currency translation adjustment	1	0	0	0	1	0	0	0
Net loss	(307)	0	0	(307)	0	0	0	0
Balance at Apr. 30, 2015	$ (1,893)	$ 790	$ 21,930	$ (24,630)	$ (48)	$ 0	$ 62	$ 3
Balance, shares at Apr. 30, 2015		79,007,423				100	62,048	2,782

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STOCK-BASED COMPENSATION

9 Months Ended

Apr. 30, 2015

Stock-Based Compensation [Abstract]

STOCK-BASED COMPENSATION

4. STOCK-BASED COMPENSATION

The Company measures the cost of employee, officer and director services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The fair value of the Company’s stock option awards is expensed over the vesting life of the underlying stock options using the graded vesting method, with each tranche of vesting options valued separately. The Company recorded stock-based compensation of $0, for the three and nine months ended April 30, 2015, and $1,000 and $4,000 respectively, for the three and nine months ended April 30, 2014. All stock-based compensation is included in the Company’s selling, general and administrative costs and expenses.

The Company’s 2000 Stock Option Plan (the “2000 Plan”), as amended, provides for the issuance of up to 2,000,000 shares of the Company’s Common Stock. The 2000 Plan allows the issuance of incentive stock options, stock appreciation rights and restricted stock awards. The exercise price of the options is determined by the compensation committee of the Company’s Board of Directors, but incentive stock options must be granted at an exercise price not less than the fair market value of the Company’s Common Stock as of the grant date or an exercise price of not less than 110% of the fair value for a 10% shareholder. Options expire up to ten years from the date of the grant and are exercisable according to the terms of the individual option agreements. The 2000 Plan expired on March 1, 2012. No additional grants may be made under the 2000 Plan; however, previously granted options will remain in force pursuant to the terms of the individual grants.

In November 2010, the Company’s Board and Compensation Committee approved the Non-Invasive Monitoring Systems, Inc. 2011 Stock Incentive Plan (the “2011 Plan”). Awards granted under the 2011 Plan may consist of incentive stock options, stock appreciation rights (SAR), restricted stock grants, restricted stock units (RSU) performance shares, performance units or cash awards. Subject to adjustment in certain circumstances, the 2011 Plan authorizes up to 4,000,000 shares of the Company’s common stock for issuance pursuant to the terms of the 2011 Plan. The 2011 Plan was approved by our shareholders in March 2012 and no awards have been granted under the 2011 Plan as of April 30, 2015.

The Company did not grant any stock options during the nine months ended April 30, 2015and 2014.

A summary of the Company’s stock option activity for the nine months ended April 30, 2015 is as follows:

	Shares	Weighted Average Exercise Price		Weighted average remaining contractual term (years)	Aggregate intrinsic Value
Options outstanding, July 31, 2014	378,750	$	0.380
Options granted	-		n/a
Options exercised	-		n/a
Options forfeited or expired	-		n/a
Options outstanding, April 30, 2015	378,750	$	0.380	1.38	$	0.00
Options expected to vest, April 30, 2015	378,750	$	0.380	1.38	$	0.00
Options exercisable, April 30, 2015	378,750	$	0.380	1.38	$	0.00

The 378,750 options outstanding at April 30, 2015 were all issued under the 2000 Plan. There were no options exercised during the three and nine month period ended April 30, 2015 and 2014. There were no options forfeited or expired during the three and nine month period ended April 30, 2015 and 75,000 expired during the nine month period ended April 30, 2014.

As of April 30, 2015, there were no unrecognized costs related to outstanding stock options.

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STOCK-BASED COMPENSATION (Details) (USD $)	9 Months Ended
	Apr. 30, 2015
Options outstanding Shares, Beginning balance	378,750
Options granted, Shares	0
Options exercised, Shares	0
Options forfeited or expired, Shares	0
Options outstanding Shares, Ending balance	378,750
Options expected to vest, Shares	378,750
Options exercisable, Shares	378,750
Options outstanding Weighted Average Exercise Price, Beginning balance	$ 0.38
Options outstanding Weighted Average Exercise Price, Ending balance	$ 0.380
Options expected to vest, Weighted Average Exercise Price	$ 0.380
Options exercisable, Weighted Average Exercise Price	$ 0.380
Options outstanding, Weighted average remaining contractual term (years)	1 year 4 months 17 days
Options expected to vest, Weighted average remaining contractual term (years)	1 year 4 months 17 days
Options exercisable, Weighted average remaining contractual term (years)	1 year 4 months 17 days
Options outstanding, Aggregate intrinsic Value	$ 0
Options expected to vest, Aggregate intrinsic Value	0
Options exercisable, Aggregate intrinsic Value	$ 0

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STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Apr. 30, 2015

Stock-Based Compensation [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity

A summary of the Company’s stock option activity for the nine months ended April 30, 2015 is as follows:

	Shares	Weighted Average Exercise Price		Weighted average remaining contractual term (years)	Aggregate intrinsic Value
Options outstanding, July 31, 2014	378,750	$	0.380
Options granted	-		n/a
Options exercised	-		n/a
Options forfeited or expired	-		n/a
Options outstanding, April 30, 2015	378,750	$	0.380	1.38	$	0.00
Options expected to vest, April 30, 2015	378,750	$	0.380	1.38	$	0.00
Options exercisable, April 30, 2015	378,750	$	0.380	1.38	$	0.00