Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Oct. 31, 2014 | Dec. 11, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Oct-14 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2015 | ' |
Entity Registrant Name | 'PURE BIOSCIENCE, INC. | ' |
Entity Central Index Key | '0001006028 | ' |
Trading Symbol | 'pure | ' |
Current Fiscal Year End Date | '--07-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 39,788,465 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Oct. 31, 2014 | Jul. 31, 2014 |
Current assets | ' | ' |
Cash and cash equivalents | $5,331,000 | $86,000 |
Accounts receivable, net | 47,000 | 47,000 |
Inventories, net | 231,000 | 249,000 |
Prepaid expenses | 154,000 | 96,000 |
Total current assets | 5,763,000 | 478,000 |
Property, plant and equipment, net | 28,000 | 36,000 |
Patents, net | 1,305,000 | 1,345,000 |
Total assets | 7,096,000 | 1,859,000 |
Current liabilities | ' | ' |
Accounts payable | 510,000 | 1,096,000 |
Restructuring liability | 201,000 | 323,000 |
Accrued liabilities | 154,000 | 401,000 |
Derivative liability | 10,000 | 9,000 |
Total current liabilities | 875,000 | 1,829,000 |
Deferred rent | 12,000 | 13,000 |
Total liabilities | 887,000 | 1,842,000 |
Commitments and contingencies (See Note 6) | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock, $0.01 par value: 5,000,000 shares authorized, no shares issued | ' | ' |
Common stock, $0.01 par value: 100,000,000 shares authorized, 39,788,465 shares issued and outstanding at October 31, 2014, and 29,394,940 shares issued and outstanding at July 31, 2014 | 398,000 | 295,000 |
Additional paid-in capital | 88,966,000 | 80,943,000 |
Accumulated deficit | -83,155,000 | -81,221,000 |
Total stockholders' equity | 6,209,000 | 17,000 |
Total liabilities and stockholders' equity | $7,096,000 | $1,859,000 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Oct. 31, 2014 | Jul. 31, 2014 |
Condensed Consolidated Balance Sheets [Abstract] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 39,788,465 | 29,394,940 |
Common stock, shares outstanding | 39,788,465 | 29,394,940 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Condensed Consolidated Statements Of Operations [Abstract] | ' | ' |
Net product sales | $117,000 | $115,000 |
Operating costs and expenses | ' | ' |
Cost of goods sold | 45,000 | 36,000 |
Selling, general and administrative | 1,192,000 | 925,000 |
Research and development | 176,000 | 213,000 |
Share-based compensation | 503,000 | 89,000 |
Other share-based expenses | 131,000 | ' |
Restructuring costs | ' | 2,684,000 |
Total operating costs and expenses | 2,047,000 | 3,947,000 |
Loss from operations | -1,930,000 | -3,832,000 |
Other income (expense) | ' | ' |
Change in derivative liability | -1,000 | -58,000 |
Interest expense, net | -2,000 | -3,000 |
Other income (expense), net | -1,000 | 49,000 |
Total other income (expense) | -4,000 | -12,000 |
Net loss | ($1,934,000) | ($3,844,000) |
Basic and diluted net loss per share | ($0.05) | ($0.19) |
Shares used in computing basic and diluted net loss per share | 37,029,203 | 20,701,547 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Operating activities | ' | ' |
Net loss | ($1,934,000) | ($3,844,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Share-based compensation | 503,000 | 89,000 |
Amortization of stock issued for services | 22,000 | 614,000 |
Stock issued under severance agreements | ' | 805,000 |
Stock issued to investors to amend subscription agreements | 131,000 | ' |
Depreciation and amortization | 51,000 | 73,000 |
Change in fair value of derivative liability | 1,000 | 58,000 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | ' | -13,000 |
Inventories | 18,000 | -65,000 |
Prepaid expenses | -80,000 | -4,000 |
Accounts payable and accrued liabilities | -955,000 | 42,000 |
Deferred rent | -1,000 | -1,000 |
Net cash used in operating activities | -2,244,000 | -2,246,000 |
Investing activities | ' | ' |
Investment in patents | -4,000 | -12,000 |
Purchases of property, plant and equipment | ' | -11,000 |
Net cash used in investing activities | -4,000 | -23,000 |
Financing activities | ' | ' |
Net proceeds from the sale of common stock | 7,493,000 | 3,163,000 |
Net proceeds from the exercise of warrants | ' | 163,000 |
Payment on note payable | ' | -21,000 |
Net cash provided by financing activities | 7,493,000 | 3,305,000 |
Net increase in cash and cash equivalents | 5,245,000 | 1,036,000 |
Cash and cash equivalents at beginning of period | 86,000 | 32,000 |
Cash and cash equivalents at end of period | 5,331,000 | 1,068,000 |
Supplemental disclosure of cash flow information | ' | ' |
Cash paid for taxes | ' | ' |
Supplemental disclosure of non-cash investing and financing activities | ' | ' |
Common stock issued for prepaid services | ' | 175,000 |
Common stock issued in connection with financing | ' | 252,000 |
Settlement of warrant liability | ' | $56,000 |
Basis_Of_Presentation
Basis Of Presentation | 3 Months Ended |
Oct. 31, 2014 | |
Basis Of Presentation [Abstract] | ' |
Basis Of Presentation | ' |
1.Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements include the consolidated accounts of Pure Bioscience, Inc. and its wholly owned subsidiary, ETIH2O Corporation, a Nevada corporation. ETIH2O Corporation currently has no business operations and no material assets or liabilities and there have been no significant transactions related to ETIH2O Corporation during the periods presented in the condensed consolidated financial statements. All inter-company balances and transactions have been eliminated. All references to “PURE,” “we,” “our,” “us” and the “Company” refer to Pure Bioscience, Inc. and our wholly owned subsidiary. | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information pursuant to the instructions to Form 10-Q and Article 10/Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended October 31, 2014 are not necessarily indicative of the results that may be expected for other quarters or the year ending July 31, 2015. The July 31, 2014 balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP and included in our Annual Report on Form 10-K. For more complete information, these unaudited financial statements and the notes thereto should be read in conjunction with the audited financial statements for the year ended July 31, 2014 included in our Annual Report on Form 10-K covering such period filed with the Securities and Exchange Commission, or SEC, on October 28, 2014. | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates. | |
Liquidity
Liquidity | 3 Months Ended |
Oct. 31, 2014 | |
Liquidity [Abstract] | ' |
Liquidity | ' |
2.Liquidity | |
Since our inception, we have financed our operations primarily through public and private offerings of securities, debt financings, and revenue from product sales and license agreements. We have a history of recurring losses, and as of October 31, 2014 we have incurred a cumulative net loss of $83,155,000. | |
As of October 31, 2014, we had $5,331,000 in cash and cash equivalents, and $875,000 of current liabilities. As of October 31, 2014, we had no long term debt. | |
Our future capital requirements depend on numerous forward-looking factors. These factors may include, but are not limited to, the following: the acceptance of, and demand for, our products; our success and the success of our partners in selling our products; our success and the success of our partners in obtaining regulatory approvals to sell our products; the costs of further developing our existing products and technologies; the extent to which we invest in new product and technology development; and the costs associated with the continued operation, and any future growth, of our business. The outcome of these and other forward-looking factors will substantially affect our liquidity and capital resources. | |
We expect that we will need to increase our liquidity and capital resources by one or more measures. These measures may include, but are not limited to, the following: reducing operating expenses; obtaining financing through the issuance of equity, debt, or convertible securities; entering into partnerships, licenses, or other arrangements with third parties; and reducing the exercise price of outstanding warrants. Any one of these measures could substantially reduce the value to us of our technology and its commercial potential. If we issue equity, debt or convertible securities to raise additional funds, our existing stockholders may experience dilution, and the new equity, debt or convertible securities may have rights, preferences and privileges senior to those of our existing stockholders. There is no guarantee that we would be able to obtain capital on terms acceptable to us, or at all. | |
If we are unable to obtain sufficient capital, it would have a material adverse effect on our business and operations. It could cause us to fail to execute our business plan, fail to take advantage of future opportunities, or fail to respond to competitive pressures or customer requirements. It also may require us to delay, scale back or eliminate some or all of our research and development programs, to license to third parties the right to commercialize products or technologies that we would otherwise commercialize ourselves, or to reduce or cease operations. If adequate funds are not available when needed, we may be required to significantly modify our business model and operations to reduce spending to a sustainable level. | |
We believe our available cash, our current efforts to market and sell our products, and our ability to significantly reduce expenses, will provide sufficient cash resources to satisfy our needs over the next 12 months. However, we do not yet have, and we may never have, significant cash inflows from product sales or from other sources of revenue to offset our ongoing and planned investments in, research and development projects, regulatory submissions, business development activities, and sales and marketing, among other investments. Some or all of our ongoing or planned investments may not be successful. In addition, irrespective of our cash resources, we may be contractually or legally obligated to make certain investments which cannot be postponed. | |
Net_Loss_Per_Share
Net Loss Per Share | 3 Months Ended |
Oct. 31, 2014 | |
Net Loss Per Share [Abstract] | ' |
Net Loss Per Share | ' |
3.Net Loss Per Share | |
Basic net loss per common share is computed as net loss divided by the weighted average number of common shares outstanding for the period. Our diluted net loss per common share is the same as our basic net loss per common share because we incurred a net loss during each period presented, and the potentially dilutive securities from the assumed exercise of all outstanding stock options, restricted stock units, and warrants would have an anti-dilutive effect. As of October 31, 2014 and 2013, the number of shares issuable upon the exercise of stock options, the vesting of restricted stock units, and the exercise of warrants, none of which are included in the computation of basic net loss per common share, was 10,681,167 and 7,450,766, respectively. | |
Comprehensive_Loss
Comprehensive Loss | 3 Months Ended |
Oct. 31, 2014 | |
Stockholders' Equity [Abstract] | ' |
Comprehensive Loss | ' |
4.Comprehensive Loss | |
Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources, including unrealized gains and losses on marketable securities and foreign currency translation adjustments. For the three months ended October 31, 2014 and 2013, our comprehensive loss consisted only of net loss. | |
Inventory
Inventory | 3 Months Ended | |||||
Oct. 31, 2014 | ||||||
Inventory [Abstract] | ' | |||||
Inventory | ' | |||||
5.Inventory | ||||||
Inventories are stated at the lower of cost or net realizable value, and net of a valuation allowance for potential excess or obsolete material. Cost is determined using the average cost method. Depreciation related to manufacturing is systematically allocated to inventory produced, and expensed through cost of goods sold at the time inventory is sold. | ||||||
Inventories consist of the following: | ||||||
October 31, | July 31, | |||||
2014 | 2014 | |||||
Raw materials | $ | 95,000 | $ | 102,000 | ||
Finished goods | 136,000 | 147,000 | ||||
$ | 231,000 | $ | 249,000 | |||
During the three months ended October 31, 2013, we received $20,000 from the sale of inventory which was previously reserved during the fiscal year ended July 31, 2013. The $20,000 gain is reflected in the other income (expense) section of the condensed consolidated statement of operations. | ||||||
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended |
Oct. 31, 2014 | |
Commitments And Contingencies [Abstract] | ' |
Commitments And Contingencies | ' |
6.Commitments and Contingencies | |
Severance Agreements | |
On August 13, 2013, the Company entered into Purchase, Severance and Release Agreements with Michael L. Krall, our former Chief Executive Officer, Donna Singer, our former Executive Vice President, and Dennis Brovarone, a former Board member. | |
In connection with Mr. Krall’s separation from the Company, the Company entered into a Purchase, Severance, and Release Agreement effective August 13, 2013 with Mr. Krall (the “Krall Release Agreement”). The Krall Release Agreement provides for a mutual release of all claims between Mr. Krall and the Company. Mr. Krall is also prohibited from engaging in certain competitive activities until July 2017. Pursuant to the Krall Release Agreement, Mr. Krall (i) was paid $25,000 on August 13, 2013; and, (ii) is entitled to receive $30,000 per month until February 2015, during which time Mr. Krall shall provide consulting services to the Company. In consideration of Mr. Krall’s transfer to the Company of certain enumerated intellectual property rights, the Company also (i) paid Mr. Krall the sum of $125,000 on August 13, 2013; and, (ii) issued to Mr. Krall 850,000 shares of common stock on August 21, 2013 (the “Krall Shares”). The Krall Shares are subject to certain registration rights intended to register the Krall Shares. The Krall Shares are also subject to a Voting Support Agreement and Irrevocable Proxy (the “Krall Proxy”). The Krall Proxy gives our CEO the right to vote the Krall Shares for so long as Mr. Krall owns the Krall Shares. Mr. Krall will also continue to receive health insurance coverage over the term of the severance period, which will cost the Company $20,000. | |
In connection with Ms. Singer’s separation from the Company, we entered into a Purchase, Severance, and Release Agreement effective August 13, 2013 with Ms. Singer (the “Singer Release Agreement”). The Singer Release Agreement provides for a mutual release of all claims between Ms. Singer and the Company. Ms. Singer is also prohibited from engaging in certain competitive activities until August 2017. Pursuant to the Singer Release Agreement, Ms. Singer (i) was paid $45,000 on August 13, 2013; (ii) was due the amount of her continued health insurance coverage until August 2014; and, (iii) was paid $17,000 per month for 12-months following August 13, 2013, during which time Ms. Singer was to provide consulting services to the Company. In consideration of Ms. Singer’s transfer to the Company of certain enumerated intellectual property rights, the Company also issued to Ms. Singer 300,000 shares of common stock on August 21, 2013 (the “Singer Shares”). The Singer Shares are subject to certain registration rights intended to register the Singer Shares. The Singer Shares are also subject to a Voting Support Agreement and Irrevocable Proxy (the “Singer Proxy”). The Singer Proxy gives our CEO the right to vote the Singer Shares for so long as Ms. Singer owns the Singer Shares. | |
In connection with Mr. Brovarone’s separation from the Company, we entered into a Severance and Release Agreement effective August 13, 2013 with Mr. Brovarone (the “Brovarone Release Agreement”). The Brovarone Release Agreement provides for a mutual release of all claims between Mr. Brovarone and the Company. In addition, Mr. Brovarone will receive $91,000, payable in 60 monthly installments of approximately $1,600, commencing December 11, 2013 for amounts previously accrued as of July 31, 2013. | |
Approximately $201,000 remains payable under the severance agreements and is included in the accrued restructuring liability section of the condensed consolidated balance sheets as of October 31, 2014. During the three months ended October 31, 2013, we expensed approximately $1,789,000 to restructuring costs related to the Purchase, Severance, and Release Agreements. | |
Promissory_Note
Promissory Note | 3 Months Ended |
Oct. 31, 2014 | |
Promissory Note [Abstract] | ' |
Promissory Note | ' |
7.Promissory Note | |
On January 25, 2013, we entered into a Letter Agreement (the “Agreement”) with Morrison & Foerster LLP (“Morrison”). Under the terms of the Agreement, we issued a Promissory Note (the “Note”) in favor of Morrison in the principal amount of $1,125,000. In consideration for the Note, Morrison agreed to waive $1,519,000 of amounts due and payable to Morrison for legal services rendered. The Note bore interest at the rate of 7.5% per annum, but the then outstanding balance would accrue interest at the rate of 10% per annum upon the occurrence of an event of default (as defined in the Note). During the quarter ended October 31, 2013, we paid $21,000 under the terms of the Note. | |
In consideration for Morrison’s acceptance of the Note, we issued Morrison a warrant to purchase 375,000 shares of our common stock at an exercise price of $0.83 per share. The warrant was exercisable immediately and expires on January 24, 2018. The warrant may be exercised by Morrison with a cash payment or, in lieu thereof, at its election, through a net exercise, as set forth in the warrant agreement. Neither the warrant nor the shares to be issued upon exercise thereof are registered for sale or resale under the Securities Act of 1933, as amended (the “Securities Act”), and have been or will be issued in reliance on an exemption from registration under the Securities Act pursuant to Section 4(a)(2) thereof based on the offering of such securities to one investor and the lack of any general solicitation or advertising in connection with such issuance. We determined that the warrants issued in connection with the Note were equity instruments and did not represent derivative instruments. The fair value of the warrants issued to Morrison was $245,000, based on the Black-Scholes valuation method assuming no dividend yield, volatility of 134%, a risk-free interest rate of 0.35%, and an expected life of 5 years. | |
During the fiscal year ended July 31, 2014, we entered into a Promissory Note Payoff Agreement (“Payoff Agreement”) with Morrison. Under the Payoff Agreement, we paid $500,000 in cash to Morrison to extinguish $1,227,000 in unsecured debt owed to Morrison under the Note, dated January 25, 2013. We have no further obligations or liability under the Note. As a result of the Payoff Agreement, we recorded a gain of $727,000 that is reflected in the other income (expense) section of the consolidated statement of operations. | |
Impairment_Of_LongLived_Assets
Impairment Of Long-Lived Assets | 3 Months Ended |
Oct. 31, 2014 | |
Impairment Of Long-Lived Assets [Abstract] | ' |
Impairment Of Long-Lived Assets | ' |
8.Impairment of Long-Lived Assets | |
In accordance with GAAP, if indicators of impairment exist, we assess the recoverability of the affected long-lived assets by determining whether the carrying value of such assets can be recovered through undiscounted future operating cash flows. If impairment is indicated, we measure the amount of such impairment by comparing the carrying value of the asset to the fair value of the asset and we record the impairment as a reduction in the carrying value of the related asset and a charge to operating results. Estimating the undiscounted future cash flows associated with long-lived assets requires judgment, and assumptions could differ materially from actual results. During the three months ended October 31, 2014 and 2013, no impairment of long-lived assets was indicated or recorded. | |
Convertible_Note_and_Derivativ
Convertible Note and Derivative Liability | 3 Months Ended | |||||
Oct. 31, 2014 | ||||||
Convertible Note and Derivative Liability [Abstract] | ' | |||||
Convertible Note and Derivative Liability | ' | |||||
9.Convertible Note and Derivative Liability | ||||||
On June 26, 2012, and July 10, 2012 we received an aggregate of $1,200,000 in cash consideration from nine lenders in exchange for our issuance to such lenders of secured convertible promissory notes, or the Notes, in an aggregate principal amount of $1,333,000 and certain other consideration (including shares of our common stock and warrants to acquire shares of our common stock). We refer to such transaction as the “Bridge Loan”. Pursuant to the terms of the Notes and the other agreements entered in connection with the Bridge Loan, all amounts owed thereunder became due and payable upon the closing of our underwritten public offering on September 17, 2012, and accordingly all such amounts were repaid during the three months ended October 31, 2012. | ||||||
We accounted for the 132,420 warrants issued in connection with the Bridge Loan in accordance with the accounting guidance for derivatives. The applicable accounting guidance sets forth a two-step model to be applied in determining whether a financial instrument is indexed to an entity’s own stock, which would qualify such financial instruments for a scope exception. This scope exception specifies that a contract that would otherwise meet the definition of a derivative financial instrument would not be considered as such if the contract is both (i) indexed to the entity’s own stock and (ii) classified in the stockholders’ equity section of the entity’s balance sheet. We determined the warrants were ineligible for equity classification due to anti-dilution provisions set forth therein. | ||||||
We recorded the fair value of the warrants issued in connection with the Bridge Loan as a warrant liability due to anti-dilution provisions requiring the strike price of the warrants to be adjusted if we subsequently issue common stock at a lower stock price. The Company revalues the warrants as of the end of each reporting period. The fair value of the warrants at October 31, 2014 and July 31, 2014 was $10,000 and $9,000, respectively. The change in fair value of the warrant liability for the three months ended October 31, 2014 was a increase of $1,000, which was recorded as a change in derivative liability in the consolidated statement of operations. | ||||||
During the three months ended October 31, 2013, there were net exercises on an aggregate of 90,699 of the warrants issued in connection with the Bridge Loan, which resulted in the issuance of 73,290 shares of our common stock. As these warrants were net exercised, as permitted under the respective warrant agreements, we did not receive any cash proceeds. The warrants were revalued as of the settlement dates, and the change in fair value was recognized to earnings. The Company also recognized a reduction in the warrant liability based on the fair value as of the settlement date for the warrants exercised, with a corresponding increase in additional paid-in capital. As of October 31, 2014 there are 9,709 warrants outstanding issued in connection with the Bridge Loan. No warrants issued in connection with the Bridge Loan were exercised during the three months ended October 31, 2014. | ||||||
The estimated fair value of the derivative liability was computed using a Monte Carlo option pricing model based the following assumptions: | ||||||
October 31, | July 31, | |||||
2014 | 2014 | |||||
Volatility | 186.4 | % | 163.5 | % | ||
Risk-free interest rate | 0.49 | % | 0.98 | % | ||
Dividend yield | 0.0 | % | 0.0 | % | ||
Expected life | 2.2 years | 2.4 years | ||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Fair Value Of Financial Instruments [Abstract] | ' | ||||||||
Fair Value Of Financial Instruments | ' | ||||||||
10.Fair Value of Financial Instruments | |||||||||
Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the authoritative guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |||||||||
· | Level 1 – Quoted prices in active markets for identical assets or liabilities. | ||||||||
· | Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||
· | Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||
In connection with the Bridge Loan, we issued warrants and convertible notes that are accounted for as derivative liabilities. | |||||||||
We used Level 3 inputs for the valuation methodology of the derivative liabilities. The estimated fair values were computed using a Monte Carlo option pricing model based on various assumptions. Our derivative liabilities are adjusted to reflect estimated fair value at each period end, with any decrease or increase in the estimated fair value being recorded in other income or expense accordingly, as adjustments to the fair value of the derivative liabilities. | |||||||||
The following table provides a reconciliation of the beginning and ending balances of the derivative liabilities for the three months ended October 31, 2014: | |||||||||
Conversion | |||||||||
Warrant | Feature | ||||||||
Liability | Liability | Total | |||||||
Balance at July 31, 2013 | $ | 51,000 | $ | - | $ | 51,000 | |||
Issuances | - | - | - | ||||||
Settlement of warrant liability | -97,000 | - | -97,000 | ||||||
Adjustments to estimated fair value | 55,000 | - | 55,000 | ||||||
Balance at July 31, 2014 | $ | 9,000 | $ | - | $ | 9,000 | |||
Issuances | - | - | - | ||||||
Settlement of warrant liability | - | - | - | ||||||
Adjustments to estimated fair value | 1,000 | - | 1,000 | ||||||
Balance at October 31, 2014 | $ | 10,000 | $ | - | $ | 10,000 | |||
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Oct. 31, 2014 | |
Stockholders' Equity [Abstract] | ' |
Stockholders' Equity | ' |
11.Stockholders’ Equity | |
Private Placements | |
During the three months ended October 31, 2014, we issued a total of 9,958,032 shares of common stock and warrants to purchase 4,004,259 shares of common stock for gross proceeds of approximately $7.49 million. The warrants have a five-year term, are exercisable immediately, and have an exercise price of $0.75 per share. A fair value of $3,746,000 was estimated for the warrants using the Black-Sholes valuation method using a volatility of 133.74%, an interest rate of 1.50% and a dividend yield of zero. We determined that the warrants issued in connection with the private placements were equity instruments and did not represent derivative instruments. | |
Additionally, in connection with the price adjustment terms in subscription agreements we previously entered into with investors in prior private placements, we issued an aggregate of 127,993 shares of common stock and warrants to purchase up to an aggregate of 648,053 shares of common stock. The warrants have a five-year term, are exercisable immediately, and have exercise prices ranging from $0.01 to $0.75 per share. A fair value of $651,000 was estimated for the warrants using the Black-Sholes valuation method using a volatility of 133.74%, an interest rate of 1.50% and a dividend yield of zero. We determined that the warrants issued in connection with prior private placements were equity instruments and did not represent derivative instruments. | |
We recorded as one-time expense of $131,000 associated with the issuance of the additional 127,993 shares of common stock discussed above. The expense is reflected in the other share-based expense section of the consolidated statement of operations. | |
In August 2013, we completed a private placement pursuant to which we sold 5,500,000 shares of our common stock. The shares were sold at a per share purchase price of $0.20, resulting in approximately $1,100,000 in aggregate gross proceeds to the Company. After deducting fees of $43,000, the net proceeds to us were $1,057,000. | |
On October 14 and October 16, 2013, we completed private placements pursuant to which we sold 2,441,270 shares of our common stock. The shares were sold at a per share purchase price of $0.75 per share, resulting in approximately $1,831,000 in aggregate gross proceeds to the Company. After deducting fees of $49,000, the net proceeds to us were $1,782,000. In addition, between October 17, 2013 and October 31, 2013, we sold 442,667 shares of our common stock in private placements. The shares were sold at a per share purchase price of $0.75 per share, resulting in approximately $332,000 in aggregate gross proceeds to the Company. After deducting fees of $8,000, the net proceeds to us were $324,000. | |
During the three months ended October 31, 2014 and 2013, the shares of common stock issued under the private placements were offered and sold without registration under the Securities Act, or state securities laws, in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder and in reliance on similar exemptions under applicable state laws, based on the lack of any general solicitation or advertising in connection with the sale of the securities; the representation of each investor to the Company that it is an accredited investor (as that term is defined in Rule 501 of Regulation D) and that it was purchasing the securities for its own account and without a view to distribute them. The securities may not be offered or sold in the United States without an effective registration statement or pursuant to an exemption from applicable registration requirements. | |
Corporate Governance Restructuring Activity | |
The following transactions occurred on August 13, 2013: | |
•We entered into a two-year service agreement with Pillar Marketing Group, Inc. for general advisory services with respect to corporate finance and capital raising activities, merger and acquisition transactions, and other related endeavors. In accordance with the agreement with Pillar we issued 250,000 shares of common stock, with a value of $175,000. The value was capitalized to prepaid expense and is being amortized over the term of the agreement. During the three months ended October 31, 2014, we recognized $22,000 of expense related to these services. We also issued 300,000 shares of registered common stock to the principal of Pillar for certain corporate reorganization services, valued at $210,000. Pillar also received a onetime payment of $150,000 for certain corporate reorganization activities previously provided. The fair value of the stock issued and the onetime payment was expensed to restructuring costs. | |
•We issued 300,000 shares of common stock to Bibicoff & McInnis for investor relations services related to restructuring activities, valued at $210,000. On issuance, the $210,000 was expensed to restructuring costs. | |
• We issued 250,000 shares of common stock, with a value of $175,000, for corporate finance and restructuring activities to Wulff Services, Inc. Wulff Services, Inc. is primarily owned by our current Chief Financial Officer / Chief Operation Officer, Peter C. Wulff. In addition, Wulff Services, Inc. received a onetime payment of $75,000 related to the corporate finance and restructuring efforts. The fair value of the stock issued and the onetime payment was expensed to restructuring costs. | |
•We issued 300,000 shares of common stock, with a value of $210,000, to Donna Singer, per Ms. Singer’s separation agreement, pursuant to an exemption from registration provided by Section 4(a)(2) of the Securities Act. Ms. Singer was the Company’s Executive Vice President and served as a member of the Board. Additionally, as part of this issuance, we granted certain registration rights with respect to the shares issued to Ms. Singer. On issuance, the $210,000 was expensed to restructuring costs (See Note 6). | |
• We issued 850,000 shares of common stock, with a value of $595,000, to Michael L. Krall, per Mr. Krall’s separation agreement, pursuant to an exemption from registration provided by Section 4(a)(2) of the Securities Act. Mr. Krall was the Company’s Chief Executive Officer and served as a member of the Board. Additionally, as part of this issuance, we granted certain registration rights with respect to the shares issued to Mr. Krall. On issuance, the $595,000 was expensed restructuring costs (See Note 6). | |
Other Activity | |
During the three months ended October 31, 2013, we issued 212,500 shares of common stock, to Gary D. Cohee and/or his affiliates for investor relations and financial advisor services, valued at $149,000, pursuant to the terms of the director service agreement with Mr. Cohee. The fair value of $149,000 was offset to additional paid-in capital. Mr. Cohee is a member of our Board. | |
Warrants | |
During the three months ended October 31, 2013, we received $163,000 from the exercise of a warrant to purchase 250,000 shares of our common stock. No warrants were exercised during the three months ended October 31, 2014. | |
In addition, during the three months ended October 31, 2013, there were net exercises on an aggregate of 90,699 warrants, which resulted in the issuance of 73,290 shares of our common stock. As these warrants were net exercised, as permitted under the respective warrant agreements, we did not receive any cash proceeds. | |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended |
Oct. 31, 2014 | |
Share-based Compensation [Abstract] | ' |
Share-Based Compensation | ' |
12.Share-Based Compensation | |
On October 24, 2014, we appointed Tom Y. Lee, CPA, to the Board of Directors, or Board. In accordance with the Company’s non-employee director compensation program, the Board granted Mr. Lee restricted stock units for 200,000 shares of the Company’s Common Stock (“RSUs”). The agreement for the RSUs is the same as the RSU agreement form entered into with other non-employee Company directors. The RSUs vest as follows: fifty percent (50%) of the shares of Common Stock vest on the earlier of (i) the date of the Company’s Annual Meeting of Stockholders in 2016 or January 15, 2016 and (ii) the remaining fifty percent (50%) of the shares of Common Stock vest on the earlier of the date of the annual meeting in 2017 or January 15, 2017. None of the RSUs granted to Mr. Lee were granted pursuant to any compensatory, bonus, or similar plan maintained or otherwise sponsored by the Company. | |
During the three months ended October 31, 2014, 307,500 RSUs vested based on service conditions that were satisfied during the period. Of the 4,717,500 RSUs outstanding we currently expect 3,657,500 to vest. As of October 31, 2014, there was $3,852,000 of unrecognized non-cash compensation cost related to RSUs we expect to vest, which will be recognized over a weighted average period of 1.34 years. | |
As of October 31, 2014, there was $127,000 of unrecognized non-cash compensation cost related to unvested stock options, which will be recognized over a weighted average period of 2.12 years. No options were granted during the three months ended October 31, 2014 and 2013. | |
For the three months ended October 31, 2014 and 2013, share-based compensation expense for outstanding RSUs and stock options was $503,000 and $89,000 respectively. | |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Oct. 31, 2014 | |
Recent Accounting Pronouncements [Abstract] | ' |
Recent Accounting Pronouncements | ' |
13.Recent Accounting Pronouncements | |
No recent accounting pronouncements or other authoritative guidance have been issued that management considers likely to have a material impact on our consolidated financial statements. | |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Oct. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
14.Subsequent Events | |
None | |
Inventory_Tables
Inventory (Tables) | 3 Months Ended | |||||
Oct. 31, 2014 | ||||||
Inventory [Abstract] | ' | |||||
Schedule of Inventory, Current | ' | |||||
October 31, | July 31, | |||||
2014 | 2014 | |||||
Raw materials | $ | 95,000 | $ | 102,000 | ||
Finished goods | 136,000 | 147,000 | ||||
$ | 231,000 | $ | 249,000 | |||
Convertible_Note_and_Derivativ1
Convertible Note and Derivative Liability (Tables) | 3 Months Ended | |||||
Oct. 31, 2014 | ||||||
Convertible Note and Derivative Liability [Abstract] | ' | |||||
Schedule of Derivative Instruments | ' | |||||
October 31, | July 31, | |||||
2014 | 2014 | |||||
Volatility | 186.4 | % | 163.5 | % | ||
Risk-free interest rate | 0.49 | % | 0.98 | % | ||
Dividend yield | 0.0 | % | 0.0 | % | ||
Expected life | 2.2 years | 2.4 years | ||||
Recovered_Sheet1
Fair Value Of Financial Instruments (Tables) | 3 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Fair Value Of Financial Instruments [Abstract] | ' | ||||||||
Schedule of Derivative Liabilities at Fair Value | ' | ||||||||
Conversion | |||||||||
Warrant | Feature | ||||||||
Liability | Liability | Total | |||||||
Balance at July 31, 2013 | $ | 51,000 | $ | - | $ | 51,000 | |||
Issuances | - | - | - | ||||||
Settlement of warrant liability | -97,000 | - | -97,000 | ||||||
Adjustments to estimated fair value | 55,000 | - | 55,000 | ||||||
Balance at July 31, 2014 | $ | 9,000 | $ | - | $ | 9,000 | |||
Issuances | - | - | - | ||||||
Settlement of warrant liability | - | - | - | ||||||
Adjustments to estimated fair value | 1,000 | - | 1,000 | ||||||
Balance at October 31, 2014 | $ | 10,000 | $ | - | $ | 10,000 | |||
Liquidity_Narrative_Details
Liquidity (Narrative) (Details) (USD $) | Oct. 31, 2014 | Jul. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 |
Liquidity [Abstract] | ' | ' | ' | ' |
Accumulated deficit | ($83,155,000) | ($81,221,000) | ' | ' |
Cash and cash equivalents | 5,331,000 | 86,000 | 1,068,000 | 32,000 |
Liabilities, Current | 875,000 | 1,829,000 | ' | ' |
Long term debt | $0 | ' | ' | ' |
Net_Loss_Per_Share_Details
Net Loss Per Share (Details) | 3 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Net Loss Per Share [Abstract] | ' | ' |
Antidilutive shares | 10,681,167 | 7,450,766 |
Inventory_Narrative_Details
Inventory (Narrative) (Details) (USD $) | 3 Months Ended |
Oct. 31, 2013 | |
Inventory [Abstract] | ' |
Gain on sale of inventory | $20,000 |
Inventory_Schedule_Of_Inventor
Inventory (Schedule Of Inventories) (Details) (USD $) | Oct. 31, 2014 | Jul. 31, 2014 |
Inventory [Abstract] | ' | ' |
Raw materials | $95,000 | $102,000 |
Finished goods | 136,000 | 147,000 |
Inventory, Net, Total | $231,000 | $249,000 |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||
Oct. 31, 2014 | Jul. 31, 2014 | Oct. 31, 2014 | Aug. 13, 2013 | Aug. 13, 2013 | Aug. 13, 2013 | |
Employee Severance [Member] | Dennis Brovarone [Member] | Donna Singer [Member] | Michael L. Krall [Member] | |||
Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Release agreement payment | ' | ' | ' | $91,000 | $45,000 | $25,000 |
Monthly installment amount | ' | ' | ' | 1,600 | 17,000 | 30,000 |
Cash Severance Payment Period | ' | ' | ' | '60 months | '12 months | ' |
Intellectual property rights payment | ' | ' | ' | ' | ' | 125,000 |
Common stock, issued | 39,788,465 | 29,394,940 | ' | ' | 300,000 | 850,000 |
Medical and insurance costs | ' | ' | ' | ' | ' | 20,000 |
Severance expense | 1,789,000 | ' | ' | ' | ' | ' |
Accounts Payable | ' | ' | $201,000 | ' | ' | ' |
Promissory_Note_Narrative_I_De
Promissory Note (Narrative I) (Details) (USD $) | 0 Months Ended | |
Jan. 25, 2013 | Jul. 31, 2013 | |
Debt Instrument [Line Items] | ' | ' |
Accounts payable waived | $1,519,000 | ' |
Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | $1,125,000 | $1,333,000 |
Interest rate | 7.50% | ' |
Interest rate if in default | 10.00% | ' |
Promissory_Note_Narrative_II_D
Promissory Note (Narrative II) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||
Oct. 31, 2013 | Jul. 31, 2014 | Oct. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | |
Morrison And Foerster L.L.P. [Member] | Morrison And Foerster L.L.P. [Member] | ||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' |
Number of warrants to purchase common stock | 73,290 | ' | 648,053 | ' | 375,000 |
Exercise price of warrants | ' | ' | ' | ' | $0.83 |
Fair value of warrants | ' | ' | $651,000 | ' | $245,000 |
Dividend yield | ' | ' | ' | ' | 0.00% |
Volatility rate | ' | ' | ' | ' | 134.00% |
Risk-free interest rate | ' | ' | ' | ' | 0.35% |
Expected life | ' | ' | ' | ' | '5 years |
Repayment of unsecured debt | ' | ' | ' | 500,000 | ' |
Extinguishment of unsecured debt | ' | ' | ' | 1,227,000 | ' |
Gain on extinguishment of debt | ' | 727,000 | ' | ' | ' |
Amount paid under terms of the note | $21,000 | ' | ' | ' | ' |
Impairment_Of_LongLived_Assets1
Impairment Of Long-Lived Assets (Details) (USD $) | 3 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Impairment Of Long-Lived Assets [Abstract] | ' | ' |
Impairment of long-lived assets | $0 | $0 |
Convertible_Note_and_Derivativ2
Convertible Note and Derivative Liability (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | |||||
Oct. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | Oct. 31, 2014 | Jul. 31, 2013 | Jan. 25, 2013 | Oct. 31, 2014 | Jul. 31, 2013 | |
item | Warrant [Member] | Notes [Member] | Notes [Member] | Bridge Loan [Member] | Bridge Loan [Member] | ||||
Warrant [Member] | Warrant [Member] | ||||||||
Convertible Note And Derivative Liability [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate cash consideration received | ' | ' | ' | $1,200,000 | ' | ' | ' | ' | ' |
Number of lenders | ' | ' | ' | 9 | ' | ' | ' | ' | ' |
Shares issued | ' | ' | ' | ' | ' | ' | ' | ' | 132,420 |
Fair value of warrants | 10,000 | ' | 9,000 | ' | ' | ' | ' | ' | ' |
Aggregate number of exercises | ' | 90,699 | ' | ' | ' | ' | ' | 90,699 | ' |
Decrease in derivative liability | -1,000 | -58,000 | ' | ' | -1,000 | ' | ' | ' | ' |
Common stock, shares issued | 39,788,465 | ' | 29,394,940 | ' | ' | ' | ' | 73,290 | ' |
Warrants outstanding | ' | ' | ' | ' | ' | ' | ' | 9,709 | ' |
Unsecured note principal amount | ' | ' | ' | ' | ' | 1,333,000 | 1,125,000 | ' | ' |
Warrants liability | $10,000 | ' | $9,000 | $51,000 | ' | ' | ' | ' | ' |
Convertible_Note_and_Derivativ3
Convertible Note and Derivative Liability (Schedule Of Fair Value) (Details) | 3 Months Ended | 12 Months Ended |
Oct. 31, 2014 | Jul. 31, 2014 | |
Convertible Note and Derivative Liability [Abstract] | ' | ' |
Volatility | 186.40% | 163.50% |
Risk-free interest rate | 0.49% | 0.98% |
Dividend yield | 0.00% | 0.00% |
Expected life | '2 years 2 months 12 days | '2 years 4 months 24 days |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Oct. 31, 2014 | Jul. 31, 2014 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance | $9,000 | $51,000 |
Settlement of warrant liability | ' | -97,000 |
Adjustments to estimated fair value | 1,000 | 55,000 |
Ending balance | 10,000 | 9,000 |
Warrant [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance | 9,000 | 51,000 |
Settlement of warrant liability | ' | -97,000 |
Adjustments to estimated fair value | 1,000 | 55,000 |
Ending balance | $10,000 | $9,000 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||||||
Oct. 31, 2013 | Oct. 16, 2013 | Oct. 14, 2013 | Aug. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2014 | Oct. 16, 2013 | Oct. 14, 2013 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Aug. 13, 2013 | Oct. 31, 2014 | Aug. 13, 2013 | Aug. 13, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Aug. 13, 2013 | Aug. 13, 2013 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | |
Common Stock [Member] | Warrant [Member] | Warrant [Member] | Pillar Marketing Group, Inc. [Member] | Pillar Marketing Group, Inc. [Member] | Bibicoff & McInnis [Member] | Wulff Services, Inc. [Member] | Gary D. Cohee [Member] | Gary D. Cohee [Member] | Donna Singer [Member] | Michael L. Krall [Member] | Bridge Loan [Member] | Minimum [Member] | Maximum [Member] | ||||||||||
Private Placement [Member] | Additional Paid-in Capital [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | |||||||||||||||||||
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross Proceeds from Issuance of Private Placement, before issuance cost | $332,000 | ' | ' | $1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock and warrants | ' | ' | ' | ' | 7,493,000 | 3,163,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants to purchase common stock shares | 73,290 | ' | ' | ' | 648,053 | 73,290 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other share based compensation | ' | ' | ' | ' | 131,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross proceeds from issuance of common stock, before issuance cost | ' | 1,831,000 | 1,831,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued | 442,667 | 2,441,270 | 2,441,270 | 5,500,000 | 127,993 | 250,000 | ' | ' | ' | 9,958,032 | 4,004,259 | ' | ' | ' | ' | ' | 212,500 | ' | 300,000 | 850,000 | ' | ' | ' |
Shares issued value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 149,000 | 149,000 | 210,000 | 595,000 | ' | ' | ' |
Expected term | ' | ' | ' | ' | '2 years 2 months 12 days | ' | '2 years 4 months 24 days | ' | ' | ' | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | $0.75 |
Fair value of warrants | ' | ' | ' | ' | 651,000 | ' | ' | ' | ' | ' | ' | 3,746,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volatility | ' | ' | ' | ' | 186.40% | ' | 163.50% | ' | ' | ' | 133.74% | 133.74% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | 0.49% | ' | 0.98% | ' | ' | ' | 1.50% | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield | ' | ' | ' | ' | 0.00% | ' | 0.00% | ' | ' | ' | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Private Placement | 324,000 | 1,782,000 | 1,782,000 | 1,057,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price per share of shares sold | $0.75 | ' | ' | $0.20 | ' | $0.75 | ' | $0.75 | $0.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transaction costs of stock issuance | 8,000 | 49,000 | 49,000 | 43,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service Agreement Period | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued for service | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | 300,000 | 250,000 | ' | ' | ' | ' | ' | ' | ' |
Stock issued for service value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175,000 | ' | 210,000 | 175,000 | ' | ' | ' | ' | ' | ' | ' |
Expense related to services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued for certain corporate reorganization services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued for certain corporate reorganization services value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 210,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Onetime payment related to corporate finance and restructuring efforts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from exercise of warrant | ' | ' | ' | ' | ' | 163,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate number of exercises | ' | ' | ' | ' | ' | 90,699 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,699 | ' | ' |
Restructuring Costs | ' | ' | ' | ' | ' | $2,684,000 | ' | ' | ' | ' | ' | ' | $150,000 | ' | $210,000 | ' | ' | ' | $210,000 | $595,000 | ' | ' | ' |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 24, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | |
Restricted Stock Units "RSUs" [Member] | Employee Stock Option [Member] | Director [Member] | Share-based Compensation Award, Tranche Two [Member] | Share-based Compensation Award, Tranche One [Member] | |||
Restricted Stock Units "RSUs" [Member] | Director [Member] | Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Shares granted | ' | ' | ' | ' | 200,000 | ' | ' |
Vesting percentage | ' | ' | ' | ' | ' | 50.00% | 50.00% |
Shares vested | ' | ' | 307,500 | ' | ' | ' | ' |
Shares outstanding | ' | ' | 4,717,500 | ' | ' | ' | ' |
Shares expected to vest | ' | ' | 3,657,500 | ' | ' | ' | ' |
Unrecognized non-cash compensation costs | ' | ' | $3,852,000 | $127,000 | ' | ' | ' |
Unrecognized non-cash compensation costs, weighted average period | ' | ' | '1 year 4 months 2 days | '2 years 1 month 13 days | ' | ' | ' |
Stock options granted | ' | ' | ' | 0 | ' | ' | ' |
Share-based compensation | $503,000 | $89,000 | ' | ' | ' | ' | ' |