PURE Bioscience (PURE) 10-Q 4 Mar 15 2015 Q2 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	6 Months Ended
	Jan. 31, 2015	Mar. 04, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Jan-15
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2015
Entity Registrant Name	PURE BIOSCIENCE, INC.
Entity Central Index Key	1006028
Trading Symbol	pure
Current Fiscal Year End Date	-24
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		40,820,965

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Jan. 31, 2015	Jul. 31, 2014
Current assets
Cash and cash equivalents	$3,908,000	$86,000
Accounts receivable, net	40,000	47,000
Inventories, net	186,000	249,000
Prepaid expenses	75,000	96,000
Total current assets	4,209,000	478,000
Property, plant and equipment, net	90,000	36,000
Patents, net	1,262,000	1,345,000
Total assets	5,561,000	1,859,000
Current liabilities
Accounts payable	510,000	1,096,000
Restructuring liability	103,000	323,000
Accrued liabilities	199,000	401,000
Derivative liability	5,000	9,000
Total current liabilities	817,000	1,829,000
Deferred rent	11,000	13,000
Total liabilities	828,000	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, 40,120,965 shares issued and outstanding at January 31, 2015, and 29,394,940 shares issued and outstanding at July 31, 2014	402,000	295,000
Additional paid-in capital	89,222,000	80,943,000
Accumulated deficit	-84,891,000	-81,221,000
Total stockholders' equity	4,733,000	17,000
Total liabilities and stockholders' equity	$5,561,000	$1,859,000

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Jan. 31, 2015	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	40,120,965	29,394,940
Common stock, shares outstanding	40,120,965	29,394,940

Condensed_Consolidated_Stateme

Condensed Consolidated Statements Of Operations (USD $)	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Condensed Consolidated Statements Of Operations [Abstract]
Net product sales	$273,000	$41,000	$390,000	$156,000
Operating costs and expenses
Cost of goods sold	111,000	20,000	156,000	56,000
Selling, general and administrative	1,201,000	1,243,000	2,524,000	2,168,000
Research and development	215,000	289,000	391,000	502,000
Share-based compensation	482,000	1,332,000	985,000	1,421,000
Other share-based expenses		308,000		308,000
Restructuring costs		70,000		2,754,000
Total operating costs and expenses	2,009,000	3,262,000	4,056,000	7,209,000
Loss from operations	-1,736,000	-3,221,000	-3,666,000	-7,053,000
Other income (expense)
Change in derivative liability	5,000	-1,000	4,000	-59,000
Interest expense, net	-3,000	-2,000	-5,000	-5,000
Gain on extinguishment of debt		727,000		727,000
Other income (expense), net	-2,000	15,000	-3,000	64,000
Total other income (expense)		739,000	-4,000	727,000
Net loss	($1,736,000)	($2,482,000)	($3,670,000)	($6,326,000)
Basic and diluted net loss per share	($0.04)	($0.10)	($0.10)	($0.28)
Shares used in computing basic and diluted net loss per share	39,851,590	24,997,773	38,440,396	22,842,753

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements Of Cash Flows (USD $)	6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Operating activities
Net loss	($3,670,000)	($6,326,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	985,000	1,421,000
Amortization of stock issued for services	44,000	636,000
Stock issued under severance agreements		825,000
Stock issued to investors to amend subscription agreements		285,000
Fair value of penalty warrants issued		23,000
Gain on extinguishment of debt		-727,000
Depreciation and amortization	103,000	140,000
Change in fair value of derivative liability	-4,000	59,000
Changes in operating assets and liabilities:
Accounts receivable	7,000	9,000
Inventories	63,000	-64,000
Prepaid expenses	-23,000	-16,000
Accounts payable and accrued liabilities	-1,008,000	-275,000
Deferred rent	-2,000	-3,000
Net cash used in operating activities	-3,505,000	-4,013,000
Investing activities
Investment in patents	-6,000	-61,000
Purchases of property, plant and equipment	-68,000	-21,000
Net cash used in investing activities	-74,000	-82,000
Financing activities
Net proceeds from the sale of common stock	7,401,000	4,664,000
Net proceeds from the exercise of warrants		163,000
Payment on note payable		-528,000
Net cash provided by financing activities	7,401,000	4,299,000
Net increase in cash and cash equivalents	3,822,000	204,000
Cash and cash equivalents at beginning of period	86,000	32,000
Cash and cash equivalents at end of period	3,908,000	236,000
Supplemental disclosure of cash flow information
Cash paid for taxes	1,600	4,000
Supplemental disclosure of non-cash investing and financing activities
Common stock issued for prepaid services		175,000
Common stock issued in connection with financing		283,000
Settlement of warrant liability		$56,000

Basis_Of_Presentation

Basis Of Presentation	6 Months Ended
	Jan. 31, 2015
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 and six months ended January 31, 2015 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_Going_Concern_Uncert

Liquidity & Going Concern Uncertainty	6 Months Ended
	Jan. 31, 2015
Liquidity And Going Concern Uncertainty [Abstract]
Liquidity & Going Concern Uncertainty	2.Liquidity & Going Concern Uncertainty
	These unaudited condensed consolidated financial statements have been prepared and presented on a basis assuming we will continue as a going concern.  The factors below raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary from the outcome of this uncertainty.
	Since our inception, we have financed our operations primarily through public and private offerings of securities, debt financing, and revenue from product sales and license agreements. We have a history of recurring losses, and as of January 31, 2015, we have incurred a cumulative net loss of $84,891,000.
	We do not have, and may never have, significant cash inflows from product sales or from other sources of revenue to fund our operations. As of January 31, 2015, we had $3,908,000 in cash and cash equivalents, and $817,000 of current liabilities, including $510,000 in accounts payable.  As of January 31, 2015, we have no long-term debt. We do not currently believe that our existing cash resources are sufficient to meet our anticipated needs over the next twelve months.
	Until we can generate significant cash from operations, we expect to continue to fund our operations with the proceeds of offerings of our equity and debt securities. However, we cannot assure you that additional financing will be available when needed or that, if available, financing will be obtained on terms favorable to us or to our stockholders. If we raise additional funds from the issuance of equity securities, substantial dilution to our existing stockholders would likely result. If we raise additional funds by incurring debt financing, the terms of the debt may involve significant cash payment obligations as well as covenants and specific financial ratios that may restrict our ability to operate our business.  Further, any contracts or license arrangements we enter into to raise funds may require us to relinquish our rights to our products or technology, and we cannot assure you that we will be able to enter into any such contracts or license arrangements on acceptable terms, or at all.  Having insufficient funds may require us to delay or scale back our marketing, distribution and other commercialization activities or cease our operations altogether.
	We do not have any unused credit facilities or other sources of capital available to us at this time. We intend to secure additional working capital through sales of additional debt or equity securities. Our intended financing initiatives are subject to risk, and we cannot provide any assurance about the availability or terms of these or any future financings.
	If we are unable to obtain sufficient capital, it will 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 significantly modify our business model and operations to reduce spending to a sustainable level, which may include delaying, scaling back or eliminating some or all of our ongoing and planned investments in corporate infrastructure, research and development projects, regulatory submissions, business development initiatives, and sales and marketing activities, among other investments. If adequate funds are not available when needed, we may be required to reduce or cease operations altogether.
	The financial statements do not include any adjustment relating to recoverability or classification of recorded assets and classification of recorded liabilities.

Net_Loss_Per_Share

Net Loss Per Share	6 Months Ended
	Jan. 31, 2015
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 January 31, 2015 and 2014, 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 10,348,667 and 7,602,488, respectively.

Comprehensive_Loss

Comprehensive Loss	6 Months Ended
	Jan. 31, 2015
Comprehensive Loss [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 and six months ended January 31, 2015 and 2014, our comprehensive loss consisted only of net loss.

Inventory

Inventory	6 Months Ended
	Jan. 31, 2015
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:
		January 31,		July 31,
		2015		2014
	Raw materials	$	93,000	$	102,000
	Finished goods		93,000		147,000
		$	186,000	$	249,000
	During the six months ended January 31, 2014, 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	6 Months Ended
	Jan. 31, 2015
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.
	On January 23, 2014, we entered into a General Release and Settlement Agreement with a former employee (“Employee Settlement”). Under the terms of the Employee Settlement, we paid $50,000 over a six-month period with payments commencing in March 2014, and issued  15,000 shares of common stock.
	Approximately $103,000 remains payable under the severance agreements and is included in the accrued restructuring liability section of the condensed consolidated balance sheets as of January 31, 2015. During the three and six months ended January 31, 2014, the Company expensed approximately $70,000 and $1,859,000, respectively, related to the Employee Settlement and the Purchase, Severance, and Release Agreements.

Promissory_Note

Promissory Note	6 Months Ended
	Jan. 31, 2015
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).
	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 condensed consolidated statement of operations.
	During the six months ended January 31, 2014, prior to the Payoff Agreement, we paid $28,000 under the terms of the Note.

Impairment_Of_LongLived_Assets

Impairment Of Long-Lived Assets	6 Months Ended
	Jan. 31, 2015
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 six months ended January 31, 2015 and 2014, no impairment of long-lived assets was indicated or recorded.

Convertible_Note_and_Derivativ

Convertible Note and Derivative Liability	6 Months Ended
	Jan. 31, 2015
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 January 31, 2015 and July 31, 2014 was $5,000 and $9,000, respectively.  The change in fair value of the warrant liability for the three and six months ended January 31, 2015 was a decrease of $5,000 and $4,000, respectively, which was recorded as a change in derivative liability in the consolidated statement of operations.
	During the six months ended January 31, 2014, 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 January 31, 2015, 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 six months ended January 31, 2015.
	The estimated fair value of the derivative liability was computed using a Monte Carlo option pricing model based the following assumptions:
		January 31,		July 31,
		2015		2014
	Volatility	107.4	%	163.5	%
	Risk-free interest rate	0.40	%	0.98	%
	Dividend yield	0.0	%	0.0	%
	Expected life	1.9 years		2.4 years

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	6 Months Ended
	Jan. 31, 2015
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 six months ended January 31, 2015:
					Conversion
		Warrant			Feature
		Liability			Liability		Total
	Balance at July 31, 2014	$	9,000		$	-	$	9,000
	Issuances		-			-		-
	Settlement of warrant liability		-			-		-
	Adjustments to estimated fair value		-4,000			-		-4,000
	Balance at January 31, 2015	$	5,000		$	-	$	5,000

Stockholders_Equity

Stockholders' Equity	6 Months Ended
	Jan. 31, 2015
Comprehensive Loss [Abstract]
Stockholders' Equity	11.Stockholders’ Equity
	Private Placements
	During the six months ended January 31, 2015, we issued a total of 10,086,025 shares of common stock and warrants to purchase 4,652,312 shares of common stock for gross proceeds of $7,493,000.  After deducting fees of $92,000, the net proceeds to us were $7,401,000.  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 $4,397,000 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.
	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 December 2013, we amended the subscription agreements for investor who participated in the $0.75 private placements.  As a result, the per share purchase price of $0.75 was reduced to $0.70 per share, resulting in the issuance of an additional 218,938 shares of unregistered common stock.  We recorded $285,000 of expense associated with the price adjustment in the other share-based expenses section of the consolidated statement of operations. After the purchase price adjustment to $0.70 per share, the total shares issued under the October private placements was 3,102,875, for aggregate net proceeds of $2,106,000.
	During the three months ended January 31, 2014, we completed private placements pursuant to which we sold 1,611,817 shares of our common stock, resulting in approximately $1,514,000 in aggregate gross proceeds to the Company. After deducting fees of $13,000, the net proceeds to us were $1,501,000.
	During the six months ended January 31, 2015 and 2014, 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.
	In October 2014, we filed a resale registration statement on Form S-1 with the SEC, which was declared effective on January 12, 2015, registering up to 20,256,280 shares of our common stock in connection with the resale of:
		·	up to 13,470,324 shares of common stock issued to certain of the selling security holders in the registrant’s private placement offerings, which occurred during the fiscal year ended July 31, 2014 and the three months ended October 31, 2014;
		·	up to 4,652,313 shares of our common stock issuable upon the exercise of warrants issued to certain of the selling security holders in the offerings that occurred on August 27, 2014 and August 29, 2014;
		·	up to 2,033,643 shares of our common stock issued to certain of the selling stockholders for services provided to the Company during the fiscal year ended July 31, 2014; and
		·	up to 100,000 shares of our common stock issuable upon the exercise of warrants issued to certain of the selling security holders for services provided to the Company during the fiscal year ended July 31, 2014.
	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 and six months ended January 31, 2015, we recognized $22,000 and $44,000, respectively, 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 Operating 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 and six months ended January 31, 2015, we issued 332,500 and 640,000 shares of common stock, respectively, to employees, directors and officers for restricted stock units that vested, based on service and performance conditions.
	During the six months ended January 31, 2014, we paid approximately $113,000, and issued 348,143 shares of common stock, to Gary Cohee and/or his affiliates for investor relations and financial advisor services, valued at $283,000, pursuant to the terms of the director service agreement with Mr. Cohee. The amounts paid and the fair value of the stock issued were offset to additional paid-in capital. Mr. Cohee is a member of our Board.
	During the six months ended January 31, 2014, we issued 87,500 shares of common stock to employees for restricted stock units that vested, based on performance conditions, and issued 15,000 shares of unregistered common stock to a former employee, valued at $20,000.
	In connection with the April 24, 2013 private placement, the Company granted certain registration rights, under which the Company agreed to file a registration statement covering the resale of the shares of common stock sold in the financing, as well as those shares issuable upon exercise of the warrants. In the event that we did not file to register for resale the shares and warrant shares issued as part of the April 24, 2013 private placement, within 45 days of the closing date, the Company was required to issue 100 warrant shares for each day that such filing is not completed, not to exceed 18,000 warrant shares. As of January 31, 2014, the shares and warrant shares had  not been registered for resale.  As a result, the private placement participant received the entire 18,000 warrant shares as of January 31, 2014.  The expense associated with the warrants was $23,000 and is included in the other share-based expenses section of the consolidated statement of operations.
	Warrants
	During the six months ended January 31, 2014, we received $163,000 from the exercise of a warrant to purchase 250,000 shares of our common stock. In addition, 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. No warrants were exercised during the six months ended January 31, 2015.

ShareBased_Compensation

Share-Based Compensation	6 Months Ended
	Jan. 31, 2015
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 and six months ended January 31, 2015, we issued 332,500 and 640,000 shares of common stock, respectively, to employees, directors and officers for restricted stock units that vested, based on service and performance conditions.  Of the 4,410,000 RSUs outstanding we currently expect 3,650,000 to vest.  As of January 31, 2015, there was $3,339,000 of unrecognized non-cash compensation cost related to RSUs we expect to vest, which will be recognized over a weighted average period of 1.10 years.
	As of January 31, 2015, there was $112,000 of unrecognized non-cash compensation cost related to unvested stock options, which will be recognized over a weighted average period of 1.87 years.    No options were granted during the six months ended January 31, 2015.
	For the three months ended January 31, 2015 and 2014, share-based compensation expense for outstanding RSUs and stock options was $482,000 and $1,332,000, respectively.  For the six months ended January 31, 2015 and 2014, share-based compensation expense was $985,000 and $1,421,000, respectively.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	6 Months Ended
	Jan. 31, 2015
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	6 Months Ended
	Jan. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	14.Subsequent Events
	None

Inventory_Tables

Inventory (Tables)	6 Months Ended
	Jan. 31, 2015
Inventory [Abstract]
Schedule of Inventory, Current
		January 31,		July 31,
		2015		2014
	Raw materials	$	93,000	$	102,000
	Finished goods		93,000		147,000
		$	186,000	$	249,000

Convertible_Note_and_Derivativ1

Convertible Note and Derivative Liability (Tables)	6 Months Ended
	Jan. 31, 2015
Convertible Note and Derivative Liability [Abstract]
Schedule of Derivative Instruments
		January 31,		July 31,
		2015		2014
	Volatility	107.4	%	163.5	%
	Risk-free interest rate	0.40	%	0.98	%
	Dividend yield	0.0	%	0.0	%
	Expected life	1.9 years		2.4 years

Recovered_Sheet1

Fair Value Of Financial Instruments (Tables)	6 Months Ended
	Jan. 31, 2015
Fair Value Of Financial Instruments [Abstract]
Schedule of Derivative Liabilities at Fair Value
				Conversion
		Warrant		Feature
		Liability		Liability		Total
	Balance at July 31, 2014	$	9,000	$	-	$	9,000
	Issuances		-		-		-
	Settlement of warrant liability		-		-		-
	Adjustments to estimated fair value		-4,000		-		-4,000
	Balance at January 31, 2015	$	5,000	$	-	$	5,000

Liquidity_Going_Concern_Uncert1

Liquidity & Going Concern Uncertainty (Narrative) (Details) (USD $)	Jan. 31, 2015	Jul. 31, 2014	Jan. 31, 2014	Jul. 31, 2013
Liquidity And Going Concern Uncertainty [Abstract]
Accumulated deficit	($84,891,000)	($81,221,000)
Cash and cash equivalents	3,908,000	86,000	236,000	32,000
Liabilities, Current	817,000	1,829,000
Long term debt	$0

Net_Loss_Per_Share_Details

Net Loss Per Share (Details)	6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Net Loss Per Share [Abstract]
Antidilutive shares	10,348,667	7,602,488

Inventory_Narrative_Details

Inventory (Narrative) (Details) (USD $)	6 Months Ended
	Jan. 31, 2015
Inventory [Abstract]
Gain on sale of inventory	$20,000

Inventory_Schedule_Of_Inventor

Inventory (Schedule Of Inventories) (Details) (USD $)	Jan. 31, 2015	Jul. 31, 2014
Inventory [Abstract]
Raw materials	$93,000	$102,000
Finished goods	93,000	147,000
Inventory, Net, Total	$186,000	$249,000

Commitments_And_Contingencies_

Commitments And Contingencies (Details) (USD $)	3 Months Ended	6 Months Ended		1 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014	Jul. 31, 2014
Commitments And Contingencies [Line Items]
Common stock, issued	40,120,965		40,120,965		29,394,940
Severance expense	$70,000	$1,859,000
Employee Severance [Member]
Commitments And Contingencies [Line Items]
Accounts Payable	103,000		103,000
Dennis Brovarone [Member]
Commitments And Contingencies [Line Items]
Release agreement payment	91,000		91,000
Monthly installment amount	1,600		1,600
Cash Severance Payment Period			60 months
Donna Singer [Member]
Commitments And Contingencies [Line Items]
Release agreement payment	45,000		45,000
Monthly installment amount	17,000		17,000
Cash Severance Payment Period			12 months
Common stock, issued	300,000		300,000
Michael L. Krall [Member]
Commitments And Contingencies [Line Items]
Release agreement payment	25,000		25,000
Monthly installment amount	30,000		30,000
Intellectual property rights payment			125,000
Common stock, issued	850,000		850,000
Medical and insurance costs			20,000
Former Employee [Member] | Employee Severance [Member]
Commitments And Contingencies [Line Items]
Common stock, issued		15,000		15,000
Severance expense				$50,000

Promissory_Note_Narrative_I_De

Promissory Note (Narrative I) (Details) (USD $)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2012
Debt Instrument [Line Items]
Accounts payable waived	$1,519,000
Interest rate	7.50%
Interest rate if in default	10.00%
Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$1,125,000	$1,333,000

Promissory_Note_Narrative_II_D

Promissory Note (Narrative II) (Details) (USD $)	3 Months Ended	6 Months Ended	12 Months Ended
	Jan. 31, 2014	Jan. 31, 2014	Jul. 31, 2014	Jan. 31, 2015
Class of Warrant or Right [Line Items]
Number of warrants to purchase common stock				250,000
Gain on extinguishment of debt	$727,000	$727,000	$727,000
Amount paid under terms of the note		28,000
Morrison And Foerster L.L.P. [Member]
Class of Warrant or Right [Line Items]
Number of warrants to purchase common stock			375,000
Exercise price of warrants			$0.83
Fair value of warrants			245,000
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

Impairment_Of_LongLived_Assets1

Impairment Of Long-Lived Assets (Details) (USD $)	6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
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		6 Months Ended		12 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014	Jul. 31, 2012	Jul. 31, 2014
					item
Convertible Note And Derivative Liability [Line Items]
Aggregate cash consideration received					$1,200,000
Number of lenders					9
Decrease in derivative liability	5,000	-1,000	4,000	-59,000
Common stock, shares issued	40,120,965		40,120,965			29,394,940
Warrants liability	5,000		5,000			9,000
Notes [Member]
Convertible Note And Derivative Liability [Line Items]
Unsecured note principal amount					1,333,000	1,125,000
Bridge Loan [Member] | Warrant [Member]
Convertible Note And Derivative Liability [Line Items]
Shares issued					132,420
Aggregate number of exercises			90,699	90,699
Common stock, shares issued	73,290	73,290	73,290	73,290
Warrants outstanding	9,709		9,709
Change in fair value of derivative liability	($5,000)		($4,000)

Convertible_Note_and_Derivativ3

Convertible Note and Derivative Liability (Schedule Of Fair Value) (Details)	6 Months Ended	12 Months Ended
	Jan. 31, 2015	Jul. 31, 2014
Convertible Note and Derivative Liability [Abstract]
Volatility	107.40%	163.50%
Risk-free interest rate	0.40%	0.98%
Dividend yield	0.00%	0.00%
Expected life	1 year 10 months 24 days	2 years 4 months 24 days

Fair_Value_of_Financial_Instru1

Fair Value of Financial Instruments (Details) (USD $)	6 Months Ended
	Jan. 31, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$9,000
Adjustments to estimated fair value	-4,000
Ending balance	5,000
Warrant [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	9,000
Adjustments to estimated fair value	-4,000
Ending balance	$5,000

Stockholders_Equity_Details

Stockholders' Equity (Details) (USD $)	0 Months Ended	1 Months Ended	0 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended	0 Months Ended
	Oct. 31, 2013	Dec. 31, 2013	Oct. 16, 2013	Apr. 24, 2013	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014	Jul. 31, 2014	Aug. 13, 2013	Aug. 13, 2013	Aug. 29, 2014	Jan. 12, 2015	Oct. 31, 2014	Jul. 31, 2013
Stockholders Equity [Line Items]
Shares issued	442,667
Warrants to purchase common stock shares					250,000		250,000
Proceeds from issuance of common stock and warrants							$7,401,000	$4,664,000
Transaction costs of stock issuance		285,000	49,000
Other share based compensation						308,000		308,000
Common Stock,Issued					40,120,965		40,120,965		29,394,940
Shares issued					332,500		640,000
Expected term							1 year 10 months 24 days		2 years 4 months 24 days
Volatility							107.40%		163.50%
Interest rate							0.40%		0.98%
Dividend yield							0.00%		0.00%
Common stock, shares authorized					100,000,000		100,000,000		100,000,000
Aggregate gross proceeds			1,831,000
Warrants issued				100
Proceeds from exercise of warrant								163,000
Additional number of warrants issued in private placement					18,000		18,000
Restructuring Costs						70,000		2,754,000
Warrant expense							$23,000
Private Placement [Member]
Stockholders Equity [Line Items]
Shares issued		3,102,875	2,441,270			1,611,817				5,500,000
Warrants to purchase common stock shares					4,652,312		4,652,312
Share Price	0.75	$0.75	$0.75							$0.20	$0.20
Reduced share price, per share		$0.70
Proceeds from issuance of common stock and warrants							7,493,000			1,100,000
Transaction costs of stock issuance	8,000					13,000	92,000			43,000
Sale of stock, net proceeds							7,401,000			1,057,000
Common Stock,Issued		218,938
Expected term							5 years
Fair value of warrants					4,397,000		4,397,000
Volatility							133.74%
Interest rate							1.50%
Dividend yield							0.00%
Proceeds from Issuance of Private Placement	324,000	2,106,000	1,782,000			1,501,000
Aggregate gross proceeds	332,000					1,514,000
Common Stock [Member] | Private Placement [Member]
Stockholders Equity [Line Items]
Shares issued							10,086,025
Wulff Services Incroporated [Member]
Stockholders Equity [Line Items]
Stock issued for service							250,000
Stock issued for service value							175,000
Onetime payment related to corporate finance and restructuring efforts							75,000
Pillar Marketing Group Incorporated [Member]
Stockholders Equity [Line Items]
Common Stock,Issued										250,000	250,000
Shares issued value											175,000
Service Agreement Period											2 years
Stock issued for service							300,000
Stock issued for service value							210,000
Expense related to services					22,000		44,000
Onetime payment related to corporate finance and restructuring efforts							150,000
Gary D. Cohee [Member]
Stockholders Equity [Line Items]
Stock issued for service								348,143
Stock issued for service value								283,000
Expense related to services								113,000
Donna Singer [Member]
Stockholders Equity [Line Items]
Common Stock,Issued					300,000		300,000
Shares issued value								210,000
Restructuring Costs							210,000
Michael L. Krall [Member]
Stockholders Equity [Line Items]
Common Stock,Issued					850,000		850,000
Shares issued value								595,000
Restructuring Costs							595,000
Former Employee [Member]
Stockholders Equity [Line Items]
Shares issued value								20,000
Investor Relations Contact [Member] | Bibicoff & McInnis [Member]
Stockholders Equity [Line Items]
Stock issued for service							300,000
Stock issued for service value							210,000
Selling, general and administrative expense							$210,000
Restricted Stock Units "RSUs" [Member]
Stockholders Equity [Line Items]
Common Stock,Issued						87,500		87,500
Bridge Loan [Member] | Warrant [Member]
Stockholders Equity [Line Items]
Common Stock,Issued					73,290	73,290	73,290	73,290
Aggregate number of exercises							90,699	90,699
Minimum [Member] | Private Placement [Member]
Stockholders Equity [Line Items]
Exercise price					0.01		$0.01
Maximum [Member]
Stockholders Equity [Line Items]
Common stock, shares authorized													20,256,280
Stock issued for service									2,033,643
Warrants issued				18,000
Maximum [Member] | Private Placement [Member]
Stockholders Equity [Line Items]
Common Stock,Issued														13,470,324	13,470,324
Exercise price					0.75		$0.75
Maximum [Member] | Warrant [Member]
Stockholders Equity [Line Items]
Stock issued for service									100,000			4,652,313
Employee Severance [Member] | Former Employee [Member]
Stockholders Equity [Line Items]
Common Stock,Issued						15,000		15,000

ShareBased_Compensation_Narrat

Share-Based Compensation (Narrative) (Details) (USD $)	3 Months Ended		6 Months Ended		1 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014	Oct. 24, 2014	Oct. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	332,500		640,000
Stock options granted			0
Share-based compensation	$482,000	$1,332,000	$985,000	$1,421,000
Unvested Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized non-cash compensation costs	112,000		112,000
Unrecognized non-cash compensation costs, weighted average period			1 year 10 months 13 days
Restricted Stock Units "RSUs" [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding	4,410,000		4,410,000
Shares expected to vest			3,650,000
Unrecognized non-cash compensation costs	$3,339,000		$3,339,000
Unrecognized non-cash compensation costs, weighted average period			1 year 1 month 6 days
Director [Member] | Restricted Stock Units "RSUs" [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted					200,000
Share-based Compensation Award, Tranche Two [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage						50.00%
Share-based Compensation Award, Tranche One [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage						50.00%