PURE Bioscience (PURE) 10-K 25 Oct 18 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jul. 31, 2018	Oct. 25, 2018	Jan. 31, 2018
Document And Entity Information
Entity Registrant Name	PURE BIOSCIENCE, INC.
Entity Central Index Key	1,006,028
Document Type	10-K
Document Period End Date	Jul. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--07-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Public Float			$ 39,000,000
Entity Common Stock, Shares Outstanding		71,582,122
Trading Symbol	PURE
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jul. 31, 2018	Jul. 31, 2017
Current assets
Cash and cash equivalents	$ 851,000	$ 1,640,000
Accounts receivable	275,000	297,000
Inventories, net	197,000	273,000
Restricted cash	75,000	75,000
Prepaid expenses	58,000	174,000
Total current assets	1,456,000	2,459,000
Property, plant and equipment, net	461,000	548,000
Patents, net	658,000	822,000
Total assets	2,575,000	3,829,000
Current liabilities
Accounts payable	608,000	426,000
Promissory note payable	503,000
Accrued liabilities	170,000	249,000
Derivative liabilities		1,853,000
Total current liabilities	1,281,000	2,528,000
Deferred rent	13,000	11,000
Total liabilities	1,294,000	2,539,000
Commitments and contingencies (See Note 4)
Stockholders' equity
Preferred stock, $0.01 par value: 5,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.01 par value: 100,000,000 shares authorized, 68,248,158 shares issued and outstanding at July 31, 2018, and 63,093,153 shares issued and outstanding at July 31, 2017	683,000	631,000
Additional paid-in capital	117,522,000	110,141,000
Accumulated deficit	(116,924,000)	(109,482,000)
Total stockholders' equity	1,281,000	1,290,000
Total liabilities and stockholders' equity	$ 2,575,000	$ 3,829,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 31, 2018	Jul. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	68,248,158	63,093,153
Common stock, shares outstanding	68,248,158	63,093,153

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Income Statement [Abstract]
Net product sales	$ 1,774,000	$ 1,831,000
Operating costs and expenses
Cost of goods sold	763,000	760,000
Selling, general and administrative	5,235,000	5,230,000
Research and development	459,000	779,000
Share-based compensation	2,359,000	1,070,000
Total operating costs and expenses	8,816,000	7,839,000
Loss from operations	(7,042,000)	(6,008,000)
Other income (expense)
Inducement to exercise warrants	(876,000)
Change in derivative liabilities	459,000	(277,000)
Interest expense, net	(8,000)	(5,000)
Other income, net	25,000	27,000
Total other expense	(400,000)	(255,000)
Net loss	$ (7,442,000)	$ (6,263,000)
Basic and diluted net loss per share	$ (0.11)	$ (0.10)
Shares used in computing basic and diluted net loss per share	67,279,124	63,492,406

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Jul. 31, 2016	$ 649,000	$ 107,593,000	$ (103,219,000)	$ 5,023,000
Balance, shares at Jul. 31, 2016	64,823,917
Issuance of common stock in private placements, net	$ 16,000	1,033,000		1,049,000
Issuance of common stock in private placements, net, shares	1,572,941
Share-based compensation expense - stock options		968,000		968,000
Share-based compensation expense - restricted stock units		102,000		102,000
Warrant liability removed due to warrant exercise		226,000		226,000
Issuance of common stock upon vesting of restricted stock units	$ 1,000	(1,000)
Issuance of common stock upon vesting of restricted stock units, shares	150,000
Issuance of common stock upon exercise of warrants	$ 3,000	182,000		185,000
Issuance of common stock upon exercise of warrants, shares	346,295
Restricted stock unit cancellation	$ (38,000)	38,000
Restricted stock unit cancellation, shares	(3,800,000)
Net loss			(6,263,000)	(6,263,000)
Balance at Jul. 31, 2017	$ 631,000	110,141,000	(109,482,000)	1,290,000
Balance, shares at Jul. 31, 2017	63,093,153
Share-based compensation expense - stock options		1,525,000		1,525,000
Share-based compensation expense - restricted stock units		834,000		834,000
Warrant liability removed due to warrant exercise		1,394,000		1,394,000
Issuance of common stock upon exercise of warrants	$ 49,000	2,583,000		2,632,000
Issuance of common stock upon exercise of warrants, shares	4,914,505
Stock issued for services	$ 3,000	169,000		172,000
Stock issued for services, shares	240,500
Inducement to exercise warrants		876,000		876,000
Net loss			(7,442,000)	(7,442,000)
Balance at Jul. 31, 2018	$ 683,000	$ 117,522,000	$ (116,924,000)	$ 1,281,000
Balance, shares at Jul. 31, 2018	68,248,158

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Operating activities
Net loss	$ (7,442,000)	$ (6,263,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	2,359,000	1,070,000
Amortization of stock issued for services	122,000	144,000
Stock issued for services	121,000
Depreciation and amortization	285,000	276,000
Inventory write-off	58,000	50,000
Gain on inventory recovery	(19,000)
Change in fair value of derivative liabilities	(459,000)	277,000
Inducement to exercise warrants	876,000
Interest expense on promissory note	3,000
Changes in operating assets and liabilities:
Accounts receivable	22,000	(34,000)
Inventories	37,000	27,000
Prepaid expenses	45,000	(58,000)
Accounts payable and accrued liabilities	103,000	(59,000)
Deferred rent	2,000	8,000
Net cash used in operating activities	(3,887,000)	(4,562,000)
Investing activities
Investment in patents	(15,000)	(20,000)
Purchases of property, plant and equipment	(19,000)	(206,000)
Net cash used in investing activities	(34,000)	(226,000)
Financing activities
Net proceeds from the exercise of warrants	2,632,000	185,000
Net proceeds from promissory note financing	500,000
Net proceeds from the sale of common stock		1,049,000
Net cash provided by financing activities	3,132,000	1,234,000
Net decrease in cash and cash equivalents	(789,000)	(3,554,000)
Cash and cash equivalents at beginning of year	1,640,000	5,194,000
Cash and cash equivalents at end of year	851,000	1,640,000
Supplemental disclosure of cash flow information
Cash paid for taxes	3,000	7,000
Noncash investing and financing activities
Warrant liability removed due to settlements	1,394,000	226,000
Common stock issued for prepaid services	51,000
Restricted stock unit cancelation		$ 38,000

Organization and Business

Organization and Business	12 Months Ended
	Jul. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	1. Organization and Business All references to “PURE,” “we”, “our,” and “us” refer to PURE Bioscience, Inc. and our wholly owned subsidiary. PURE Bioscience, Inc. is focused on developing and commercializing our proprietary antimicrobial products that provide solutions to the health and environmental challenges of pathogen and hygienic control. Our technology platform is based on patented stabilized ionic silver, and our initial products contain silver dihydrogen citrate, or SDC. SDC is a broad-spectrum, non-toxic antimicrobial agent that is manufactured as a liquid delivered in various concentrations. We currently distribute and contract the manufacture and distribution of our SDC-based disinfecting and sanitizing products. We also contract manufacture and sell SDC-based formulations to manufacturers for use as a raw material ingredient in the production of personal care products. We believe our technology platform has potential application in a number of industries. We intend to focus our current resources on providing food safety solutions to the food industry. We were incorporated in the state of California in August 1992 as Innovative Medical Services. In September 2003, we changed our name to PURE Bioscience. In March 2011, we reincorporated in the state of Delaware. We operate in one business segment. Liquidity & Going Concern Uncertainty These 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 July 31, 2018, we have incurred a cumulative net loss of $116,924,000. 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 July 31, 2018, we had $851,000 in cash and cash equivalents, and $1,281,000 of current liabilities, including $608,000 in accounts payable. On August 16, 2018, we completed a closing of a private placement financing to accredited investors. We raised approximately $1.5 million in net proceeds from the private placement financing and issued an aggregate of 3,333,964 shares of our common stock at a purchase price of $0.45 per share, including the conversion of approximately $0.5 million held in the form of a promissory note as of July 31, 2018. The shares issued in the private placement financing were issued pursuant to a securities purchase agreement entered into with the investors. Mr. Tom Y. Lee, a member of the Company’s Board of Directors invested approximately $1.0 million through his affiliates, including approximately $0.5 million of cash and the cancellation of existing indebtedness in the amount of approximately $0.5 million that was held in the form of a promissory note payable as of July 31, 2018. We do not currently believe that our existing cash resources are sufficient to meet our anticipated needs over the next twelve months from the date hereof. 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. 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. The consolidated financial statements do not include any adjustment relating to recoverability or classification of recorded assets and classification of recorded liabilities.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Jul. 31, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include the consolidated accounts of PURE Bioscience, Inc. and its wholly owned subsidiary, ETIH2O Inc., a Nevada corporation. ETIH2O Inc. has no business and no material assets or liabilities and there have been no significant transactions related to ETIH2O Inc. during the periods presented in the consolidated financial statements. All inter-company balances and transactions have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements, and the disclosures made in the accompanying notes to the consolidated financial statements. Actual results could differ materially from those estimates. Reclassification Certain reclassifications have been made to prior period amounts to conform to current period presentation. These reclassifications did not have an impact on our results of operations or financial condition as of and for the year ended July 31, 2017. Cash and Cash Equivalents Cash and cash equivalents consist of cash and highly liquid investments with original maturities from the purchase date of three months or less. Restricted Cash The Company is required to maintain $75,000 in a restricted certificate of deposit account in order to fully collateralize four revolving credit card accounts. Fair Value of Financial Instruments Certain of our financial instruments—including cash and cash equivalents, accounts receivable, inventories, prepaid expenses, accounts payable, accrued liabilities, and deferred rent are carried at cost, which is considered to be representative of their respective fair values because of the short-term nature of these instruments. Our derivative liabilities are carried at estimated fair value (See Notes 5 and 6 to these consolidated financial statements). Derivative Financial Instruments We do not use derivative instruments to hedge exposures to cash flow or market or foreign currency risks. We review the terms of the common stock, warrants and convertible debt we issue to determine whether there are derivative instruments, including embedded conversion options that are required to be bifurcated and accounted for separately as derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument, including a conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. Derivatives are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. When the equity or convertible debt instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually resulting in those instruments being recorded at a discount from their face value. The discount from the face value of any convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense, using the effective interest method. Accounts Receivable Trade accounts receivable are recorded net of allowances for doubtful accounts. Estimates of allowances for doubtful accounts are determined based on historical payment patterns and individual customer circumstances. The allowance for doubtful accounts was zero at July 31, 2018 and 2017. Inventories 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. Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of our property, plant, and equipment range from three to ten years. Capitalized costs associated with leasehold improvements are depreciated over the lesser of the useful life of the asset or the remaining life of the lease. Depreciation is generally included in selling, general and administrative expense. Depreciation related to manufacturing is systematically allocated to inventory produced, and expensed through cost of goods sold at the time inventory is sold. Patents We have filed a number of patent applications with the United States Patent and Trademark Office and in foreign countries. Certain legal and related costs incurred in connection with pending patent applications have been capitalized. Costs related to successful patent applications are amortized over the lesser of the remaining useful life of the related technology or the remaining patent life, commencing on the date the patent is issued. Capitalized costs related to patent applications are expensed in the period in which a determination is made not to pursue such applications. 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. There were no patent impairments during the years ended July 31, 2018 or 2017. Revenue Recognition We sell our products to distributors and end users. We record net sales when we sell products to our customers, rather than when our customers resell products to third parties. When we sell products to our customers, we reduce the balance of our inventory with a corresponding charge to cost of goods sold. We do not currently have any consignment sales. Terms of our product sales are generally FOB shipping point. Net sales are recognized when delivery of the products has occurred (which is generally at the time of shipment), title has passed to the customer, the selling price is fixed or determinable, collectability is reasonably assured and we have no further obligations. Any amounts received prior to satisfying these revenue recognition criteria are recorded as deferred revenue. We record sales net of discounts at the time of sale and report sales net of such discounts. We also license our products and technology to development and commercialization partners. Upfront product and technology license fees under multiple-element arrangements are deferred and recognized over the period of such services or performance, if such arrangements require on-going services or performance. Non-refundable amounts received for substantive milestones are recognized upon achievement of the milestone. Any amounts received prior to satisfying these revenue recognition criteria are recorded as deferred revenue. Shipping and Handling Costs Shipping and handling costs incurred by us for product shipments are included in cost of goods sold and were minimal for the years ended July 31, 2018 and 2017. Research and Development Costs Research and development costs are expensed as incurred. Share-Based Compensation We grant equity-based awards under share-based compensation plans. We estimate the fair value of share-based payment awards using the Black-Scholes option valuation model. This fair value is then amortized over the requisite service periods of the awards. The Black-Scholes option valuation model requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and expected life of the option. Share-based compensation expense is based on awards ultimately expected to vest, and therefore is reduced by expected forfeitures. 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 years ended July 31, 2018 and 2017, our comprehensive loss consisted only of net loss. Income Taxes We recognize deferred tax assets and liabilities for temporary differences between the tax basis of assets and liabilities and the amounts at which they are carried in the financial statements based upon the enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is established to reduce deferred tax assets to the amount expected to be realized. 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 antidilutive effect. For the years ended July 31, 2018 and 2017, 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 12,012,189 and 16,098,679, respectively. Recent Accounting Pronouncements In July 2017, the Financial Accounting Standards Board (“FASB”) issued a two-part Accounting Standards Update (“ASU”) No. 2017-11, I. Accounting for Certain Financial Instruments With Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests With a Scope Exception (“ASU 2017-11”). ASU 2017-11 amends guidance in FASB ASC 260, Earnings Per Share, FASB ASC 480, Distinguishing Liabilities from Equity, and FASB ASC 815, Derivatives and Hedging. The amendments in Part I of ASU 2017-11 change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The amendments in Part II of ASU 2017-11 re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. ASU 2017-11 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 with early adoption permitted. We are evaluating the effect that this update will have on our consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard was originally effective for public companies for annual reporting periods beginning after December 15, 2016, with no early application permitted. In August 2015, the FASB issued ASU No. 2015-14 that defers by one year the effective date for all entities, with application permitted as of the original effective date. The updated standard becomes effective for us on August 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. We adopted the new standard for the fiscal year beginning August 1, 2018 using the modified retrospective application method. We have substantially completed the assessment of the new standard and believe that there will not be a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Statement of Cash Flows. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The new guidance must be applied on a retrospective basis. We have evaluated the effect of adopting this new accounting guidance and determined that adoption will not have a material impact on our Statement of Cash Flows. In December 2017, the United States (“U.S.”) enacted the Tax Cuts and Jobs Act (the “2017 Act”), which changes existing U.S. tax law and includes various provisions that are expected to affect public companies. The 2017 Act (i) changes U.S. corporate tax rates, (ii) generally reduces a company’s ability to utilize accumulated net operating losses, and (iii) requires the calculation of a one-time transition tax on certain previously unrepatriated foreign earnings and profits (“E&P”). The 2017 Act will also impact estimates of a company’s deferred tax assets and liabilities. On December 22, 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act (“U.S. Tax Cuts and Jobs Act of 2017”). This new law did not have a significant impact on our consolidated financial statements for the year ended July 31, 2018 because we maintain a valuation allowance on the entirety of our deferred tax assets. However, the reduction of the U.S. federal corporate tax rate from 35% to 21% resulted in a remeasurement of our deferred tax assets. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting, which provides clarity and guidance around which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The standard is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual reporting periods. The adoption of this guidance will have no impact on our consolidated financial statements unless we have modification accounting in accordance with Topic 718.

Balance Sheet Details

Balance Sheet Details	12 Months Ended
	Jul. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Details	3. Balance Sheet Details Inventories consist of the following: July 31, 2018 2017 Raw materials $ 39,000 $ 82,000 Finished goods 158,000 191,000 $ 197,000 $ 273,000 During the year ended July 31, 2018, we wrote-off $58,000 of finished goods inventory damaged at our contract manufacturer’s facility. In addition we wrote-off $26,000 of inventory destroyed in a third-party warehouse fire. We received $45,000 from an insurance claim for the replacement cost of the inventory destroyed in the fire. As a result, we recorded a gain of $19,000 reflected in the other income section of our consolidated statements of operations. During the year ended July 31, 2017, we wrote-off $50,000 for slow moving finished goods inventory manufactured in prior years. Property, plant, and equipment consist of the following: July 31, 2018 2017 Computers and equipment $ 1,064,000 $ 1,045,000 Furniture and fixtures 21,000 21,000 1,085,000 1,066,000 Less accumulated depreciation (624,000 ) (518,000 ) $ 461,000 $ 548,000 Depreciation expense was $106,000 and $98,000 for the years ended July 31, 2018 and 2017, respectively. Patents consist of the following: July 31, 2018 2017 Patents $ 3,500,000 $ 3,485,000 Less accumulated amortization (2,842,000 ) (2,663,000 ) $ 658,000 $ 822,000 Patent amortization expense for the years ended July 31, 2018 and 2017 was $179,000 and $178,000, respectively. At July 31, 2018, future patent amortization expense is expected to be as follows: 2019 $ 135,000 2020 87,000 2021 76,000 2022 48,000 2023 42,000 Thereafter 270,000 $ 658,000

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Jul. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	4. Commitments and Contingencies Operating Leases During August 2016, we amended the lease of our primary facility in El Cajon, California under a noncancelable operating lease that now expires in December 2019. This facility includes our corporate offices, research and development laboratory, and warehouse. Rent expense, including common area maintenance, was $121,000 and $116,000 for the years ended July 31, 2018 and 2017, respectively. Future minimum annual lease payments for our primary facility as of July 31, 2018 are as follows: 2019 $ 106,000 2020 $ 45,000 $ 151,000

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Jul. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	5 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 October and November 2015 Private Placements, we issued warrants with derivative features. These instruments were accounted for as derivative liabilities (See Note 6 to these consolidated financial statements). 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. Various factors are considered in the pricing models we use to value the warrants, including the Company’s current stock price, the remaining life of the warrants, the volatility of the Company’s stock price, and the risk free interest rate. The following table provides a reconciliation of the beginning and ending balances of the derivative liabilities for the years ended July 31, 2018 and 2017: Fair Value of Significant Unobservable Inputs (Level 3) Warrant Liability Balance at July 31, 2016 $ 1,802,000 Issuances — Settlement of warrant liability (226,000 ) Adjustments to estimated fair value 277,000 Balance at July 31, 2017 $ 1,853,000 Issuances — Settlement of warrant liability (1,394,000 ) Adjustments to estimated fair value (459,000 ) Balance at July 31, 2018 $ —

Derivative Liability

Derivative Liability	12 Months Ended
	Jul. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liability	6. Derivative Liability On October 23, 2015, we completed a first closing of a private placement financing (the “2015 Private Placement Financing”), where we issued, among other securities, a warrant to purchase up to an aggregate of 6,666,666 shares of common stock with a term of five years and a warrant to purchase up to an aggregate of 8,666,666 shares of common stock with a term of six months. On November 23, 2015, we completed a second and final closing of the 2015 Private Placement Financing, where we issued, among other securities, a warrant to purchase up to an aggregate of 2,222,217 shares of common stock with a term of five years and a warrant to purchase up to an aggregate of 2,820,670 shares of common stock with a term of six months. We accounted for the combined 20,376,219 warrants issued in connection with the 2015 Private Placement Financing 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. During the fiscal year ended July 31, 2016, (i) all 2,820,670 of the six-month warrants issued in the second and final closing were exercised, (ii) the six-month warrants issued in the first closing expired and (iii) the five-year warrants issued in the first closing were cancelled. On September 25, 2017, we completed the first closing of a tender offer (the “Tender Offer”) to amend and exercise outstanding warrants to purchase shares of our common stock held by the investors participating in the 2015 Private Placement Financing and our 2014 and 2017 private placement financings. As a result, 1,599,135 warrants issued in connection with the 2015 Private Placement Financing were exercised for cash. In addition, there was a net exercise on 118,057 warrants which resulted in the issuance of 63,811 shares of our common stock. The net exercised warrants were issued in connection with the 2015 Private Placement Financing. The change in fair value of the warrant liabilities on September 25, 2017 was recorded as a change in derivative liabilities in the consolidated statements of operations. The fair value on the exercise date was returned to additional paid-in capital and is reflected in the settlement of warrant liability section on the table in Note 5. The following assumptions were used as inputs to the fair value model at September 25, 2017: stock price of $1.00 per share and a warrant exercise price of $0.45 per share as of the valuation date; our historical stock price volatility of 70.00%; risk free interest rate on U.S. treasury notes of 1.6%; warrant expiration of 3.2 years (See Note 7 to these consolidated financial statements). On October 10, 2017, we completed a second and final closing of the Tender Offer. As a result, 268,909 warrants issued in connection with the 2015 Private Placement Financing were exercised. The change in fair value of the warrant liabilities on October 10, 2017 was recorded as a change in derivative liabilities in the consolidated statements of operations. The fair value on the exercise date was returned to additional paid-in capital and is reflected in the settlement of warrant liability section on the table in Note 5. The following assumptions were used as inputs to the fair value model at October 10, 2017: stock price of $1.03 per share and a warrant exercise price of $0.45 per share as of the valuation date; our historical stock price volatility of 70.00%; risk free interest rate on U.S. treasury notes of 1.6%; warrant expiration of 3.1 years (See Note 7 to these consolidated financial statements). During the fiscal year ended July 31, 2018, all remaining warrants containing derivative features issued in connection with the 2015 Private Placement Financing were exercised. As of July 31, 2018, the total value of the derivative liabilities was zero. The change in fair value of the warrant liabilities for fiscal years ended July 31, 2018 and 2017, was a decrease of $459,000 and an increase $277,000, respectively, which was recorded as a change in derivative liabilities in the consolidated statements of operations.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Jul. 31, 2018
Stockholders' equity
Stockholders' Equity	7. Stockholders’ Equity Preferred Stock As of July 31, 2018, the Company’s Board of Directors is authorized to issue 5,000,000 shares of preferred stock with a par value of $0.01 per share, in one or more series. As of July 31, 2018 and July 31, 2017, there were no shares of preferred stock issued and outstanding. Common Stock As of July 31, 2018, 100,000,000 shares of common stock with a par value of $0.01 per share are authorized for issuance. Schedule TO and Warrant Exercises On October 10, 2017, we closed the Tender Offer. Specifically, we filed a Schedule TO with the SEC on August 25, 2017 offering to (i) reduce the exercise price of the warrants to purchase 4,104,980 shares of common stock issued to investors participating in our private placement financing completed on August 29, 2014, as amended (the “2014 Warrants”) from $0.75 per share to $0.60 per share of common stock in cash, (ii) reduce the exercise price of outstanding warrants to purchase 1,986,101 shares of common stock issued to investors participating in our private placement financing completed on November 23, 2015 (the “2015 Warrants”) from $0.45 per share to $0.40 per share of common stock in cash, (iii) reduce the exercise price of the outstanding warrants to purchase 1,572,941 shares of common stock issued to investors participating in our private placement financing completed on January 23, 2017 (the “2017 Warrants”, together with the 2014 Warrants and 2015 Warrants, the “Original Warrants”) from $1.25 per share to $0.85 per share of common stock in cash, (iv) shorten the exercise period of the Original Warrants so that they expired concurrently with the expiration of the Offer to Amend and Exercise at 5:00 p.m. (Pacific Time) on September 25, 2017 (“Expiration Date”) unless extended until the Subsequent Expiration Date (as defined below), (v) delete the cashless exercise provisions in the Original Warrants and (vi) delete the price-based anti-dilution provisions contained in the 2015 Warrants. Additionally, we requested the holders of a majority of the shares issuable upon exercise of the 2014 Warrants (the “2014 Requisite Majority”), 2015 Warrants (the “2015 Requisite Majority”) and 2017 Warrants (the “2017 Requisite Majority”) to approve an amendment of all of the outstanding 2014 Warrants, 2015 Warrants and 2017 Warrants, respectively, to amend such Original Warrants in the same manner as set forth above (the “Aggregate Warrant Amendment”), except the Expiration Date would be extended until October 10, 2017 (the “Subsequent Expiration Date”) if such Aggregate Warrant Amendment was approved with respect to such class of Original Warrants. The 2015 Requisite Majority approved an amendment of all of the outstanding 2015 Warrants and holders of 2015 Warrants had until the Subsequent Expiration Date to exercise their 2015 Warrants (the “Subsequent Offer Period”). The Offer to Amend and Exercise with respect to the 2014 Warrants and 2017 Warrants expired on the Expiration Date of September 25, 2017. As of September 25, 2017, 1,491,649 shares of common stock were issued upon exercise of 2014 Warrants, 1,599,135 shares of common stock were issued upon exercise of 2015 Warrants and 1,396,470 shares of common stock were issued upon exercise of 2017 Warrants, for aggregate gross proceeds to us of approximately $2,720,000. During the Subsequent Offer Period, 2015 Warrants to purchase 268,909 shares of common stock were exercised for aggregate gross proceeds to us of approximately $107,000. 2014 Warrants to purchase 2,533,331 shares of common stock and 2017 Warrants to purchase 176,471 shares of common stock at exercise prices of $0.75 per share and $1.25 per share, respectively, continue to remain outstanding and no 2015 Warrants remain outstanding. Original Warrants (including 2015 Warrants exercised during the Subsequent Offer Period) to purchase an aggregate of 4,756,163 shares of common stock were tendered and exercised in the Offer to Amend and Exercise for aggregate net proceeds to us of approximately $2,632,000. Garden State Securities Inc. assisted the Company as warrant solicitation agents with respect to the 2017 Warrants. Due to the reduction in exercise price for the Original Warrants issued in connection with the Schedule TO, we determined it was appropriate to record $876,000 of expense in the consolidated statement of operations for the inducement to exercise the Original Warrants. Prior Year Private Placements On December 1, 2016, we completed an initial closing (the “Initial Closing”) of a private placement financing (the “Private Placement Offering”) to accredited investors. We raised aggregate gross proceeds of $1,000,000 from the sale of (i) an aggregate of 1,176,472 shares of the Company’s common stock at a purchase price of $0.85 per share and (ii) warrants to purchase up to an aggregate of 1,176,472 shares of common stock with a term of five years at an exercise price of $1.25 per share. We determined the warrants issued in connection with the Initial Closing were equity instruments and did not represent derivative instruments. On January 23, 2017, we closed on a second and final closing (the “Final Closing”) of the Private Placement Offering. In the Final Closing we raised aggregate gross proceeds of approximately $337,000 from the sale of (i) an aggregate of 396,469 shares of the Company’s common stock at a purchase price of $0.85 per share and (ii) warrants to purchase up to an aggregate of 396,469 shares of common stock with a term of five years at an exercise price of $1.25 per share. The securities issued in the Private Placement Offering were issued pursuant to a securities purchase agreement entered into with the accredited investors. We determined the warrants issued in connection with the Final Closing were equity instruments and did not represent derivative instruments. We utilized the services of a placement agent for the Private Placement Offering. In connection with the Private Placement Offering, we paid such placement agent an aggregate cash fee of $128,600 and issued to such placement agent or its designees warrants to purchase 151,294 shares of common stock at an exercise price of $1.275 per share. The terms of the placement agent warrants are substantially identical to the investor warrants, other than the exercise price and the holders’ ability to exercise the placement agent warrants on a cashless basis at its discretion. Additionally, we agreed to pay the placement agent a $12,000 due diligence fee and to reimburse the placement agent for fees of counsel up to $35,000. The net proceeds from the Private Placement Offering was approximately $1,049,000. Other Activity On October 1, 2017, we entered into a two-year service agreement for business development services. In accordance with the agreement we issued 50,000 shares of common stock, with a value of $51,000. The value was capitalized to prepaid expense and is being amortized over the term of the agreement. During the fiscal year ended July 31, 2018, we recognized $21,000 of expense related to these services. On April 13, 2016, we entered into a two-year service agreement for general financial advisory services. In accordance with the agreement we issued 250,000 shares of common stock, with a value of $290,000. The value was capitalized to prepaid expense and is being amortized over the term of the agreement. For the years ended July 31, 2018 and 2017, we recognized $101,000 and $144,000 of expense related to these services, respectively. Warrants During the fiscal year ended July 31, 2018, in addition to the 4,756,163 Original Warrants exercised, there were net exercises on 573,057 warrants which resulted in the issuance of 158,342 shares of our common stock. As these warrants were net exercised, as permitted under the respective warrant agreement, we did not receive any cash proceeds. 198,057 of the warrants exercised during the period were issued in connection with the Original Warrants discussed above. During the fiscal year ended July 31, 2017, we received approximately $185,000 from the exercise of warrants to purchase 342,116 shares of common stock. 236,116 of the warrants exercised contained derivative features, while 106,000 of the warrants exercised were considered equity instruments. In addition, there was a net exercise on 5,335 warrants which resulted in the issuance of 4,179 shares of our common stock. A summary of our warrant activity and related data is as follows: Shares Outstanding at July 31, 2016 7,056,426 Issued 1,724,235 Exercised (347,451 ) Expired/Cancelled (129,374 ) Outstanding at July 31, 2017 8,303,836 Issued — Exercised (5,329,220 ) Expired/Cancelled (113,520 ) Outstanding at July 31, 2018 2,861,096 The following table summarizes information related to warrants outstanding at July 31, 2018: Expiration Exercise Date Price Shares 08/29/19 $ 0.75 2,533,331 12/01/21 $ 1.25 58,824 12/01/21 $ 1.28 117,647 01/23/22 $ 1.25 117,647 01/23/22 $ 1.28 33,647 2,861,096

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Jul. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	8. Share-Based Compensation Restricted Stock Units During the fiscal year ended July 31, 2018, the Compensation Committee of the Board of Directors authorized the issuance of 450,000 Restricted Stock Units (“RSUs”) to newly appointed members of our Board of Directors. RSUs issued to directors vest in two 50% installments on or before our annual meeting of stockholders, typically held in January. In addition, we issued 300,000 performance based RSUs to third-party consultants. We currently do not expect the 300,000 RSUs to vest. Each RSU represents the right to receive one share of common stock, issuable at the time the RSU is delivered and subsequently settles, as set forth in the Restricted Stock Unit Agreement. During the fiscal year ended July 31, 2017, the Compensation Committee of the Board of Directors authorized the issuance of 1,150,000 RSUs to our officers and directors. RSUs granted to our officers vest over a four year period while RSUs granted to our directors vest A summary of our restricted stock unit activity and related data is as follows: Shares Outstanding at July 31, 2016 1,285,000 Granted 1,150,000 Vested (150,000 ) Forfeited (250,000 ) Outstanding at July 31, 2017 2,035,000 Granted 750,000 Vested (375,000 ) Forfeited (885,000 ) Outstanding at July 31, 2018 1,525,000 Of the 1,525,000 unvested RSUs outstanding at July 31, 2018, we currently expect 1,225,000 to vest. As of July 31, 2018, there was $960,000 of unrecognized non-cash compensation cost related to RSUs we expect to vest, which will be recognized over a weighted average period of 2.64 years. During the fiscal year ended July 31, 2018, 375,000 RSUs vested, based on service conditions. All of the RSUs that vested during the fiscal year ended July 31, 2018 have not been delivered and remain outstanding, as set forth in the RSU agreements. During the fiscal year ended July 31, 2017, 150,000 RSUs vested based on service conditions that were satisfied during the period, resulting in the issuance of 150,000 shares of common stock. For the years ended July 31, 2018 and 2017, share-based compensation expense for RSUs was $834,000 and $102,000, respectively. RSU Termination On December 13, 2016, we entered into an RSU Cancellation Agreement with our officers and directors who received RSUs in October 2013 as compensation for their continued services to us over a required vesting period. Under this Agreement, our officers and directors agreed to cancel RSUs representing the right to receive an aggregate of 3.9 million vested shares of our common stock. Pursuant to the terms of the cancelled RSUs, we would have been required to settle and deliver these vested shares to the individual officers and directors prior to January 1, 2017, which would have triggered a taxable event. Our officers and directors, in their individual capacities, voluntarily agreed to cancel their respective RSUs based on their determination that cancelling the RSUs would be in the best interests of the Company and our stockholders. The individual officers and directors reached this conclusion for the following reasons: 1. Conserved our Additional Available Cash Resources 2. Reduced Pressure on Our Stock Price Each of our officers and directors who are parties to the RSU Cancellation Agreement agreed to cancel their RSUs and the shares of common stock underlying the RSUs in their individual capacities as stockholders and equity award holders, and without any agreement or promise from us or our officers or directors to issue them equity, equity-based awards or cash compensation in the future in exchange for entering into the Agreement. During the fiscal year ended July 31, 2017, $87,000 of pre-vest expense was reversed as a result of the RSU cancellation. Stock Issued for Services During the fiscal year ended July 31, 2018, we issued 190,500 shares of common stock for accrued services valued at $121,000. Stock Option Plans 2007 Equity Incentive Plan In February 2016, we amended and restated our 2007 Equity Incentive Plan, the (“2007 Plan”), to, among other changes, increase the number of shares of common stock issuable under the 2007 Plan by 4,000,000 shares and extend the term of the 2007 Plan until February 4, 2026. The 2007 Plan provides for the grant of incentive and non-qualified stock options, as well as other share-based payment awards, to our employees, directors, consultants and advisors. These awards have up to a 10-year contractual life and are subject to various vesting periods, as determined by the Compensation Committee of the Board of Directors. As of July 31, 2018, there were approximately 940,000 shares available for issuance under the 2007 Plan. 2017 Equity Incentive Plan Approved by our shareholders in January 2018, the 2017 Equity Incentive Plan, the (“2017 Plan”), has a share reserve of 5,000,000 shares of common stock, which were registered under a Form S-8 filed with the SEC in February 2018. The 2017 Plan provides for the grant of incentive and non-qualified stock options, as well as other share-based payment awards, to our employees, directors, consultants and advisors. These awards have up to a 10-year contractual life and are subject to various vesting periods, as determined by the Compensation Committee of the Board of Directors. As of July 31, 2018, there were approximately 2,815,000 shares available for issuance under the 2017 Plan. Stock Option Activity During the fiscal year ended July 31, 2018, we issued 2,245,000 stock options at various exercise prices to employees, directors, and consultants. The options vest between one and two years and carry a term between five and ten years. During the fiscal year ended July 31, 2018, the Compensation Committee of the Board of Directors extended the expiration terms of 740,000 employee options by three years. We accounted for the option modification under ASC Topic 718 and recorded a one-time expense of $203,000, which was expensed under the share-based compensation line item on the consolidated statements of operations. During the fiscal year ended July 31, 2017, we issued 3,735,000 stock options at various exercise prices to employees, directors, advisory members and consultants. The options vest between one and four years and carry a term between five and ten years. A summary of our stock option activity for the fiscal years ended July 31, 2018 and 2017 is as follows: Shares Weighted- Average Exercise Price Aggregate Intrinsic Value Outstanding at July 31, 2016 2,277,968 $ 1.60 $ — Granted 3,735,000 $ 1.05 Exercised — $ — Cancelled (253,125 ) $ 1.42 Outstanding at July 31, 2017 5,759,843 $ 1.25 $ 1,120,000 Granted 2,245,000 $ 0.84 Exercised — $ — Cancelled (378,750 ) $ 1.96 Outstanding at July 31, 2018 7,626,093 $ 1.09 $ — The weighted average expected term of options outstanding at July 31, 2018 was 5.47 years. At July 31, 2018, options to purchase 4,017,343 shares of common stock were exercisable. These options had a weighted-average exercise price of $1.18, an aggregate intrinsic value of zero, and a weighted average expected term of 4.02 years. The weighted average grant date fair value for options granted during the years ended July 31, 2018 and 2017, was $0.44 and $0.67, respectively. The total unrecognized compensation cost related to unvested stock option grants as of July 31, 2018 was approximately $1,533,000 and the weighted average period over which these grants are expected to vest is 2.43 years. For the fiscal year ended July 31, 2018 and 2017, share-based compensation expense for stock options was $1,525,000 and $968,000 respectively. We use the Black-Scholes valuation model to calculate the fair value of stock options. Share-based compensation expense is recognized over the vesting period using the straight-line method. The fair value of stock options was estimated at the grant date using the following weighted average assumptions: For the years ended July 31, 2018 2017 Volatility 71.18 % 81.00 % Risk-free interest rate 2.32 % 1.70 % Dividend yield 0.0 % 0.0 % Expected life 3.69 years 4.66 years Volatility is the measure by which our stock price is expected to fluctuate during the expected term of an option. Volatility is derived from the historical daily change in the market price of our common stock, as we believe that historical volatility is the best indicator of future volatility. The risk-free interest rates used in the Black-Scholes calculations are based on the prevailing U.S. Treasury yield as determined by the U.S. Federal Reserve. We have never paid dividends on our common stock and do not anticipate paying dividends on our common stock in the foreseeable future. Accordingly, we have assumed no dividend yield for purposes of estimating the fair value of our share-based compensation. The weighted average expected life of options was estimated using the average of the contractual term and the weighted average vesting term of the options. Certain options granted to consultants are subject to variable accounting treatment and are required to be revalued until vested.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Jul. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	9. Related Party Transactions On June 28, 2018, we raised $500,000 to support our continued operations by issuing a one-year promissory note to Tom Y. Lee, a member of the Company’s Board of Directors and our largest stockholder. The note accrues interest at 6.5% per annum, compounded annually. As of July 31, 2018, $500,000 of principal and $3,000 of accrued and unpaid interest remained payable (See Note 12 to these consolidated financial statements). On December 11, 2013, the Company entered into a five-year strategic collaboration agreement with St. Louis-based Intercon Chemical Company (ICC). The agreement consists of a multi-prong approach to accelerate the commercialization of PURE’s unique and proprietary SDC-based products. The strategic collaboration agreement provides: ● ICC licenses from PURE its patents and technology know-how for the exclusive manufacture of our SDC-based products. ● ICC will invest in plant improvements to allow for expanded SDC production. ● ICC’s R&D team will collaborate on SDC product line development. ● ICC licenses the distribution rights for SDC-based products into its core businesses of institutional cleaning and sanitation products. ● ICC will also develop a new initiative focused on US hospital, healthcare and medical facilities. ● PURE earns royalty income on SDC-products sold by ICC and its affiliates. During the years ended July 31, 2018 and 2017, our net product sales to ICC was $8,000 and $33,000, respectively. As of July 31, 2018, $86,000 was payable to ICC for the production of SDC based products with no accounts receivable due to the Company. As of July 31, 2017, $75,000 was payable to ICC for the production of SDC based products and $6,000 of accounts receivable was due to the Company. The president of ICC is a shareholder of the Company.

Sales Concentration

Sales Concentration	12 Months Ended
	Jul. 31, 2018
Risks and Uncertainties [Abstract]
Sales Concentration	10. Sales Concentration Net product sales were $1,774,000 and $1,831,000 for the years ended July 31, 2018 and 2017, respectively. For the year ended July 31, 2018, three individual customers accounted for 20%, 16% and 11%, of our net product sales, respectively. No other individual customer accounted for 10% or more of our net product sales. For the year ended July 31, 2017, two individual customers accounted for 33% and 19%, of our net product sales, respectively. No other individual customer accounted for 10% or more of our net product sales. For the years ended July 31, 2018 and 2017, all net product sales occurred in the United States.

Income Taxes

Income Taxes	12 Months Ended
	Jul. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes We file federal and state consolidated tax returns with our subsidiaries. Our income tax provision for the years ended July 31, 2018 and 2017 was $1,650; the minimum state franchise taxes we pay regardless of income or loss. At July 31, 2018, we had federal and state tax net operating loss carry-forwards of approximately $105.2 million and $60.5 million, respectively. At July 31, 2017, we had federal and state tax net operating loss carry-forwards of approximately $100.3 million and $74.7 million, respectively. Utilization of the net operating loss carry-forwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code as well as similar state provisions. These ownership changes may limit the amount of net operating loss carry-forwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Section 382 of the Internal Revenue Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain stockholders or public groups. Since our formation, we have raised capital through the issuance of capital stock on several occasions (both before and after our initial public offering in 1996) which, combined with the purchasing stockholders’ subsequent disposition of those shares, may have resulted in such an ownership change, or could result in an ownership change in the future upon subsequent disposition. While we do not believe that we have experienced an ownership change, the pertinent tax rules related thereto are complex and subject to varying interpretations, and thus complete assurance cannot be provided that the taxing authorities would not take an alternative position. Our current federal tax loss carry-forwards begin expiring in the year ended July 31, 2019 and, unless previously utilized, will completely expire in the year ending July 31, 2038. Our state tax loss carry-forwards began to expire in the year ending July 31, 2029, and will completely expire in the year ending July 31, 2038. Significant components of our deferred tax assets are as follows: July 31, 2018 2017 Net operating loss carry-forward $ 26,170,000 $ 30,970,000 Stock options and warrants 2,590,000 3,250,000 Other temporary differences (130,000 ) (140,000 ) Total deferred tax assets 28,630,000 34,080,000 Valuation allowance for deferred tax assets (28,630,000 ) (34,080,000 ) Net deferred tax assets $ — $ — During the year ended July 31, 2018, we had a net decrease in deferred tax assets of $5,450,000. This change is a result of current year activity as well as a change in the federal tax rates. The change as a result of current year activity is an increase in deferred tax assets of $7,653,000. This increase was offset by a $13,103,000 decrease due to a remeasurement of the deferred tax assets based on new tax rates established through the Tax Cuts and Jobs Act passed December 22, 2017. The remeasurement is a provisional estimate under Staff Accounting Bulletin (“SAB”) 118 that could be revised based on any additional guidance issued by the U.S. Treasury Department, the U.S. Internal Revenue Service, and other standard-setting bodies. This new law did not have a significant impact on our consolidated financial statements for the year ended July 31, 2018 because we maintain a valuation allowance on the entirety of our deferred tax assets. However, the reduction of the U.S. federal corporate tax rate from 35% to 21% resulted in a remeasurement of the deferred tax asset reflected in the tax rate reconciliation table below, as well as, the deferred tax assets table listed above. Given the significant impact of the Tax Cuts and Jobs Act, the SEC staff issued SAB 118 which provides guidance on accounting for uncertainties of the effects of the Tax Act. Specifically, SAB 118 allows companies to record a provisional estimate of the impact of the Tax Act during a one year “measurement period”. We have recognized the provisional tax impact related to the revaluation of deferred tax assets and liabilities and included these amounts in our consolidated financial statements for the year ended July 31, 2018. The ultimate impact may differ from these provisional amounts, due to, among other things, additional analysis, changes in interpretations and assumptions we have made, and additional regulatory guidance that may be issued. A reconciliation of income taxes computed using the statutory income tax rate, compared to the effective tax rate, is as follows: 2018 2017 Federal tax benefit at the expected statutory rate 26.4 % 34.0 % State income tax, net of federal tax benefit 32.5 0.8 Expired net operating loss carryforwards (20.0 ) (6.6 ) Other (2.9 ) (7.7 ) Rate change adjustment (175.4 ) — Change in state tax rates — (4.2 ) Permanent items — (3.3 ) Valuation allowance 139.4 (13.0 ) Income tax benefit - effective rate 0.0 % 0.0 % Following authoritative guidance, we recognize the tax benefit from a tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense; however we have had no accrued interest or penalties at either July 31, 2018 or July 31, 2017. We are subject to income taxes in the United States and in various states, and our historical tax years remain subject to future examination by the U.S. and state tax authorities. During the years ended July 31, 2018 and 2017, we did not record any activity related to our unrecognized tax benefits. The Company and its subsidiaries are subject to federal income tax as well as income tax of multiple state jurisdictions. With few exceptions, the Company is no longer subject to income tax examination by tax authorities in major jurisdictions for tax years prior to 2012. However, to the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses were generated and carried forward, and make adjustments up to the amount of the carryforwards. The Company is not currently under examination by the IRS or state taxing authorities.

Subsequent Events

Subsequent Events	12 Months Ended
	Jul. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events Private Placement Financing On August 16, 2018, we completed a closing (the “Closing”) of a private placement financing to accredited investors. We raised approximately $1.5 million in the Closing and issued an aggregate of 3,333,964 shares of our common stock at a purchase price of $0.45 per share, including the conversion of approximately $0.5 million held in the form of a promissory note as of July 31, 2018. The shares issued in the private placement financing were issued pursuant to a securities purchase agreement entered into with the investors. Mr. Tom Y. Lee, a member of the Company’s Board of Directors invested approximately $1.0 million through his affiliates, including approximately $0.5 million of cash and the cancellation of existing indebtedness in the amount of approximately $0.5 million that was held in the form of a promissory note payable as of July 31, 2018. The net proceeds to us from the Closing (including the cancellation of indebtedness), after deducting fees and other offering expenses, are approximately $1.49 million. We expect to use the net proceeds for general corporate purposes, including our research and development efforts, and for general administrative expenses and working capital. The issuance and sale of the Shares was not registered under the Securities Act of 1933, as amended (the “Securities Act”), and these Shares may not be offered or sold in the United States absent registration under or exemption from the Securities Act and any applicable state securities laws. The Shares were issued and sold in reliance upon an exemption from registration afforded by Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated under the Securities Act. The Investors represented to the Company that each was an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act, and that each was receiving the Shares for investment for its own account and without a view to distribute them.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jul. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the consolidated accounts of PURE Bioscience, Inc. and its wholly owned subsidiary, ETIH2O Inc., a Nevada corporation. ETIH2O Inc. has no business and no material assets or liabilities and there have been no significant transactions related to ETIH2O Inc. during the periods presented in the consolidated financial statements. All inter-company balances and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements, and the disclosures made in the accompanying notes to the consolidated financial statements. Actual results could differ materially from those estimates.
Reclassification	Reclassification Certain reclassifications have been made to prior period amounts to conform to current period presentation. These reclassifications did not have an impact on our results of operations or financial condition as of and for the year ended July 31, 2017.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of cash and highly liquid investments with original maturities from the purchase date of three months or less.
Restricted Cash	Restricted Cash The Company is required to maintain $75,000 in a restricted certificate of deposit account in order to fully collateralize four revolving credit card accounts.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Certain of our financial instruments—including cash and cash equivalents, accounts receivable, inventories, prepaid expenses, accounts payable, accrued liabilities, and deferred rent are carried at cost, which is considered to be representative of their respective fair values because of the short-term nature of these instruments. Our derivative liabilities are carried at estimated fair value (See Notes 5 and 6 to these consolidated financial statements).
Derivative Financial Instruments	Derivative Financial Instruments We do not use derivative instruments to hedge exposures to cash flow or market or foreign currency risks. We review the terms of the common stock, warrants and convertible debt we issue to determine whether there are derivative instruments, including embedded conversion options that are required to be bifurcated and accounted for separately as derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument, including a conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. Derivatives are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. When the equity or convertible debt instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually resulting in those instruments being recorded at a discount from their face value. The discount from the face value of any convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense, using the effective interest method.
Accounts Receivable	Accounts Receivable Trade accounts receivable are recorded net of allowances for doubtful accounts. Estimates of allowances for doubtful accounts are determined based on historical payment patterns and individual customer circumstances. The allowance for doubtful accounts was zero at July 31, 2018 and 2017.
Inventories	Inventories 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.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of our property, plant, and equipment range from three to ten years. Capitalized costs associated with leasehold improvements are depreciated over the lesser of the useful life of the asset or the remaining life of the lease. Depreciation is generally included in selling, general and administrative expense. Depreciation related to manufacturing is systematically allocated to inventory produced, and expensed through cost of goods sold at the time inventory is sold.
Patents	Patents We have filed a number of patent applications with the United States Patent and Trademark Office and in foreign countries. Certain legal and related costs incurred in connection with pending patent applications have been capitalized. Costs related to successful patent applications are amortized over the lesser of the remaining useful life of the related technology or the remaining patent life, commencing on the date the patent is issued. Capitalized costs related to patent applications are expensed in the period in which a determination is made not to pursue such applications.
Impairment of Long-Lived Assets	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. There were no patent impairments during the years ended July 31, 2018 or 2017.
Revenue Recognition	Revenue Recognition We sell our products to distributors and end users. We record net sales when we sell products to our customers, rather than when our customers resell products to third parties. When we sell products to our customers, we reduce the balance of our inventory with a corresponding charge to cost of goods sold. We do not currently have any consignment sales. Terms of our product sales are generally FOB shipping point. Net sales are recognized when delivery of the products has occurred (which is generally at the time of shipment), title has passed to the customer, the selling price is fixed or determinable, collectability is reasonably assured and we have no further obligations. Any amounts received prior to satisfying these revenue recognition criteria are recorded as deferred revenue. We record sales net of discounts at the time of sale and report sales net of such discounts. We also license our products and technology to development and commercialization partners. Upfront product and technology license fees under multiple-element arrangements are deferred and recognized over the period of such services or performance, if such arrangements require on-going services or performance. Non-refundable amounts received for substantive milestones are recognized upon achievement of the milestone. Any amounts received prior to satisfying these revenue recognition criteria are recorded as deferred revenue.
Shipping and Handling Costs	Shipping and Handling Costs Shipping and handling costs incurred by us for product shipments are included in cost of goods sold and were minimal for the years ended July 31, 2018 and 2017.
Research and Development Costs	Research and Development Costs Research and development costs are expensed as incurred.
Share-Based Compensation	Share-Based Compensation We grant equity-based awards under share-based compensation plans. We estimate the fair value of share-based payment awards using the Black-Scholes option valuation model. This fair value is then amortized over the requisite service periods of the awards. The Black-Scholes option valuation model requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and expected life of the option. Share-based compensation expense is based on awards ultimately expected to vest, and therefore is reduced by expected forfeitures.
Comprehensive Loss	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 years ended July 31, 2018 and 2017, our comprehensive loss consisted only of net loss.
Income Taxes	Income Taxes We recognize deferred tax assets and liabilities for temporary differences between the tax basis of assets and liabilities and the amounts at which they are carried in the financial statements based upon the enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is established to reduce deferred tax assets to the amount expected to be realized.
Net Loss Per Share	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 antidilutive effect. For the years ended July 31, 2018 and 2017, 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 12,012,189 and 16,098,679, respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In July 2017, the Financial Accounting Standards Board (“FASB”) issued a two-part Accounting Standards Update (“ASU”) No. 2017-11, I. Accounting for Certain Financial Instruments With Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests With a Scope Exception (“ASU 2017-11”). ASU 2017-11 amends guidance in FASB ASC 260, Earnings Per Share, FASB ASC 480, Distinguishing Liabilities from Equity, and FASB ASC 815, Derivatives and Hedging. The amendments in Part I of ASU 2017-11 change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The amendments in Part II of ASU 2017-11 re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. ASU 2017-11 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 with early adoption permitted. We are evaluating the effect that this update will have on our consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard was originally effective for public companies for annual reporting periods beginning after December 15, 2016, with no early application permitted. In August 2015, the FASB issued ASU No. 2015-14 that defers by one year the effective date for all entities, with application permitted as of the original effective date. The updated standard becomes effective for us on August 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. We adopted the new standard for the fiscal year beginning August 1, 2018 using the modified retrospective application method. We have substantially completed the assessment of the new standard and believe that there will not be a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Statement of Cash Flows. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The new guidance must be applied on a retrospective basis. We have evaluated the effect of adopting this new accounting guidance and determined that adoption will not have a material impact on our Statement of Cash Flows. In December 2017, the United States (“U.S.”) enacted the Tax Cuts and Jobs Act (the “2017 Act”), which changes existing U.S. tax law and includes various provisions that are expected to affect public companies. The 2017 Act (i) changes U.S. corporate tax rates, (ii) generally reduces a company’s ability to utilize accumulated net operating losses, and (iii) requires the calculation of a one-time transition tax on certain previously unrepatriated foreign earnings and profits (“E&P”). The 2017 Act will also impact estimates of a company’s deferred tax assets and liabilities. On December 22, 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act (“U.S. Tax Cuts and Jobs Act of 2017”). This new law did not have a significant impact on our consolidated financial statements for the year ended July 31, 2018 because we maintain a valuation allowance on the entirety of our deferred tax assets. However, the reduction of the U.S. federal corporate tax rate from 35% to 21% resulted in a remeasurement of our deferred tax assets. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting, which provides clarity and guidance around which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The standard is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual reporting periods. The adoption of this guidance will have no impact on our consolidated financial statements unless we have modification accounting in accordance with Topic 718.

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	12 Months Ended
	Jul. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Schedule of Inventories	Inventories consist of the following: July 31, 2018 2017 Raw materials $ 39,000 $ 82,000 Finished goods 158,000 191,000 $ 197,000 $ 273,000
Schedule of Property Plant and Equipment	Property, plant, and equipment consist of the following: July 31, 2018 2017 Computers and equipment $ 1,064,000 $ 1,045,000 Furniture and fixtures 21,000 21,000 1,085,000 1,066,000 Less accumulated depreciation (624,000 ) (518,000 ) $ 461,000 $ 548,000
Schedule of Patents	Patents consist of the following: July 31, 2018 2017 Patents $ 3,500,000 $ 3,485,000 Less accumulated amortization (2,842,000 ) (2,663,000 ) $ 658,000 $ 822,000
Schedule of Future Patent Amortization Expense	At July 31, 2018, future patent amortization expense is expected to be as follows: 2019 $ 135,000 2020 87,000 2021 76,000 2022 48,000 2023 42,000 Thereafter 270,000 $ 658,000

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Jul. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Annual Lease Payments	Future minimum annual lease payments for our primary facility as of July 31, 2018 are as follows: 2019 $ 106,000 2020 $ 45,000 $ 151,000

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Jul. 31, 2018
Fair Value Disclosures [Abstract]
Schedule of Derivative Liabilities at Fair Value	The following table provides a reconciliation of the beginning and ending balances of the derivative liabilities for the years ended July 31, 2018 and 2017: Fair Value of Significant Unobservable Inputs (Level 3) Warrant Liability Balance at July 31, 2016 $ 1,802,000 Issuances — Settlement of warrant liability (226,000 ) Adjustments to estimated fair value 277,000 Balance at July 31, 2017 $ 1,853,000 Issuances — Settlement of warrant liability (1,394,000 ) Adjustments to estimated fair value (459,000 ) Balance at July 31, 2018 $ —

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Jul. 31, 2018
Stockholders' equity
Schedule of Warrant Activity	A summary of our warrant activity and related data is as follows: Shares Outstanding at July 31, 2016 7,056,426 Issued 1,724,235 Exercised (347,451 ) Expired/Cancelled (129,374 ) Outstanding at July 31, 2017 8,303,836 Issued — Exercised (5,329,220 ) Expired/Cancelled (113,520 ) Outstanding at July 31, 2018 2,861,096
Schedule of Warrants Outstanding	The following table summarizes information related to warrants outstanding at July 31, 2018: Expiration Exercise Date Price Shares 08/29/19 $ 0.75 2,533,331 12/01/21 $ 1.25 58,824 12/01/21 $ 1.28 117,647 01/23/22 $ 1.25 117,647 01/23/22 $ 1.28 33,647 2,861,096

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Jul. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Restricted Stock Activity	A summary of our restricted stock unit activity and related data is as follows: Shares Outstanding at July 31, 2016 1,285,000 Granted 1,150,000 Vested (150,000 ) Forfeited (250,000 ) Outstanding at July 31, 2017 2,035,000 Granted 750,000 Vested (375,000 ) Forfeited (885,000 ) Outstanding at July 31, 2018 1,525,000
Schedule of Stock Option Activity	A summary of our stock option activity for the fiscal years ended July 31, 2018 and 2017 is as follows: Shares Weighted- Average Exercise Price Aggregate Intrinsic Value Outstanding at July 31, 2016 2,277,968 $ 1.60 $ — Granted 3,735,000 $ 1.05 Exercised — $ — Cancelled (253,125 ) $ 1.42 Outstanding at July 31, 2017 5,759,843 $ 1.25 $ 1,120,000 Granted 2,245,000 $ 0.84 Exercised — $ — Cancelled (378,750 ) $ 1.96 Outstanding at July 31, 2018 7,626,093 $ 1.09 $ —
Schedule of Fair Value Assumptions	The fair value of stock options was estimated at the grant date using the following weighted average assumptions: For the years ended July 31, 2018 2017 Volatility 71.18 % 81.00 % Risk-free interest rate 2.32 % 1.70 % Dividend yield 0.0 % 0.0 % Expected life 3.69 years 4.66 years

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jul. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of Deferred Tax Assets	Significant components of our deferred tax assets are as follows: July 31, 2018 2017 Net operating loss carry-forward $ 26,170,000 $ 30,970,000 Stock options and warrants 2,590,000 3,250,000 Other temporary differences (130,000 ) (140,000 ) Total deferred tax assets 28,630,000 34,080,000 Valuation allowance for deferred tax assets (28,630,000 ) (34,080,000 ) Net deferred tax assets $ — $ —
Schedule of Reconciliation Effective Tax Rate, Percentage	A reconciliation of income taxes computed using the statutory income tax rate, compared to the effective tax rate, is as follows: 2018 2017 Federal tax benefit at the expected statutory rate 26.4 % 34.0 % State income tax, net of federal tax benefit 32.5 0.8 Expired net operating loss carryforwards (20.0 ) (6.6 ) Other (2.9 ) (7.7 ) Rate change adjustment (175.4 ) — Change in state tax rates — (4.2 ) Permanent items — (3.3 ) Valuation allowance 139.4 (13.0 ) Income tax benefit - effective rate 0.0 % 0.0 %

Organization and Business (Deta

Organization and Business (Details Narrative) - USD ($)	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Cumulative net loss	$ 116,924,000	$ 109,482,000
Cash and cash equivalents	851,000	1,640,000	$ 5,194,000
Current liabilities	1,281,000	2,528,000
Accounts payable	608,000	$ 426,000
Investments amount	500,000
August 16, 2018 [Member] | Private Placement [Member]
Closing value of common stock shares	$ 1,500,000
Number of common stock shares issued	3,333,964
Purchase price per shares	$ 0.45
August 16, 2018 [Member] | Private Placement [Member] | Mr. Tom Y. Lee [Member]
Investments amount	$ 1,000,000
Investment cash	500,000
Cancellation of indebtedness amount	$ 500,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Dec. 22, 2017	Jul. 31, 2018	Jul. 31, 2017
Restricted cash		$ 75,000	$ 75,000
Allowance for doubtful accounts		0	0
Impairment of long-lived assets
Computation of basic net loss per share		12,012,189	16,098,679
Income tax examination description	The reduction of the U.S. federal corporate tax rate from 35% to 21% resulted in a remeasurement of our deferred tax assets.	The reduction of the U.S. federal corporate tax rate from 35% to 21% resulted in a remeasurement of the deferred tax asset
U.S. federal corporate tax rate	21.00%	26.40%	34.00%
Minimum [Member]
Property, plant and equipment estimated useful lives		3 years
Maximum [Member]
Property, plant and equipment estimated useful lives		10 years

Balance Sheet Details (Details

Balance Sheet Details (Details Narrative) - USD ($)	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Inventory wrote-off	$ 58,000	$ 50,000
Insurance claim for the replacement cost of the inventory	45,000
Gain on inventory	19,000
Depreciation expense	106,000	98,000
Patent amortization expense	179,000	$ 178,000
Third Party Warehouse Fire [Member]
Inventory wrote-off	$ 26,000

Balance Sheet Details - Schedul

Balance Sheet Details - Schedule of Inventories (Details) - USD ($)	Jul. 31, 2018	Jul. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 39,000	$ 82,000
Finished goods	158,000	191,000
Inventory, net	$ 197,000	$ 273,000

Balance Sheet Details - Sched_2

Balance Sheet Details - Schedule of Property Plant and Equipment (Details) - USD ($)	Jul. 31, 2018	Jul. 31, 2017
Property, plant, and equipment, gross	$ 1,085,000	$ 1,066,000
Less accumulated depreciation	(624,000)	(518,000)
Property, plant, and equipment, net	461,000	548,000
Computers and Equipment [Member]
Property, plant, and equipment, gross	1,064,000	1,045,000
Furniture and Fixtures [Member]
Property, plant, and equipment, gross	$ 21,000	$ 21,000

Balance Sheet Details - Sched_3

Balance Sheet Details - Schedule of Patents (Details) - USD ($)	Jul. 31, 2018	Jul. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Patents	$ 3,500,000	$ 3,485,000
Less accumulated amortization	(2,842,000)	(2,663,000)
Patents, net	$ 658,000	$ 822,000

Balance Sheet Details - Sched_4

Balance Sheet Details - Schedule of Future Patent Amortization Expense (Details) - USD ($)	Jul. 31, 2018	Jul. 31, 2017
Balance Sheet Related Disclosures [Abstract]
2,019	$ 135,000
2,020	87,000
2,021	76,000
2,022	48,000
2,023	42,000
Thereafter	270,000
Patents, net	$ 658,000	$ 822,000

Commitments and Contingencies_2

Commitments and Contingencies (Details Narrative) - USD ($)	Aug. 31, 2016	Jul. 31, 2018	Jul. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Lease expiration date, description	December 2,019
Rent expense		$ 121,000	$ 116,000

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Annual Lease Payments (Details)	Jul. 31, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,019	$ 106,000
2,020	45,000
Future minimum annual lease payments	$ 151,000

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Schedule of Derivative Liabilities at Fair Value (Details) - Warrant Liability [Member] - USD ($)	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Beginning balance	$ 1,853,000	$ 1,802,000
Issuances
Settlement of warrant liability	(1,394,000)	(226,000)
Adjustments to estimated fair value	(459,000)	277,000
Ending balance		$ 1,853,000

Derivative Liability (Details N

Derivative Liability (Details Narrative) - USD ($)	Oct. 10, 2017	Sep. 25, 2017	Nov. 23, 2015	Oct. 23, 2015	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2016
Number of warrants to purchase common stock						342,116
Derivative liabilities						$ 1,853,000
Change in fair value of warrant liability					$ 459,000	$ 277,000
2015 Private Placement Financing [Member]
Number of warrants to purchase common stock	268,909	1,599,135
Number of warrants issued					20,376,219
Number of warrants exercise during the period		118,057
Issuance of share of common stock		63,811
Stock price	$ 1.03	$ 1
Fair value assumption of warrant expiration term	3 years 1 month 6 days	3 years 2 months 12 days
2015 Private Placement Financing [Member] | Measurement Input, Exercise Price [Member]
Warrant expiration warrant exercise price	$ 0.45	$ 0.45
2015 Private Placement Financing [Member] | Measurement Input, Price Volatility [Member]
Fair value assumption rate	70.00%	70.00%
2015 Private Placement Financing [Member] | Measurement Input, Risk Free Interest Rate [Member]
Fair value assumption rate	1.60%	1.60%
2015 Private Placement Financing [Member] | Six-Month Warrant [Member]
Number of warrants issued							2,820,670
2015 Private Placement Financing [Member] | October Closing Date [Member] | Five Years [Member]
Number of warrants to purchase common stock				6,666,666
Warrant term				5 years
2015 Private Placement Financing [Member] | October Closing Date [Member] | Six Months [Member]
Number of warrants to purchase common stock				8,666,666
Warrant term				6 months
2015 Private Placement Financing [Member] | November Closing Date [Member] | Five Years [Member]
Number of warrants to purchase common stock			2,222,217
Warrant term			5 years
2015 Private Placement Financing [Member] | November Closing Date [Member] | Six Months [Member]
Number of warrants to purchase common stock			2,820,670
Warrant term			6 months

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Oct. 02, 2017	Sep. 25, 2017	Jan. 23, 2017	Dec. 01, 2016	Apr. 13, 2016	Jul. 31, 2018	Jul. 31, 2017	Nov. 23, 2015	Aug. 29, 2014
Preferred stock shares authorized						5,000,000	5,000,000
Preferred stock shares par value						$ 0.01	$ 0.01
Preferred stock shares issued
Preferred stock shares outstanding
Common stock shares authorized						100,000,000	100,000,000
Common stock shares par value						$ 0.01	$ 0.01
Number of warrants to purchase common stock							342,116
Proceeds from issuance of common shares							$ 1,049,000
Inducement to exercise warrants						876,000
Warrant exercise price per share
Value of shares issued for services						172,000
Net exercise of warrants							5,335
Proceeds from warrant exercises						2,632,000	$ 185,000
Two Year Service Agreement [Member] | Business Development Services [Member]
Number of common shares issued for services	50,000
Value of shares issued for services	$ 51,000
Addition expense related to services						21,000
Two Year Service Agreement [Member] | General Financial Advisory Services [Member]
Number of common shares issued for services					250,000
Value of shares issued for services					$ 290,000
Addition expense related to services						$ 101,000	$ 144,000
Private Placement Offering [Member]
Number of warrants to purchase common stock			396,469	1,176,472		151,294
Shares issued price per share			$ 0.85	$ 0.85
Proceeds from issuance of common shares			$ 337,000	$ 1,000,000
Issuance of share of common stock			396,469	1,176,472
Warrant term			5 years	5 years
Warrant exercise price per share			$ 1.25	$ 1.25		$ 1.275
Aggregate cash fees paid to placement agent						$ 128,600
Due diligence fees paid						12,000
Reimbursement of counsel fees						35,000
Proceeds from private placement						$ 1,049,000
2014 Warrant [Member]
Number of warrants to purchase common stock		1,491,649				2,533,331			4,104,980
Shares issued price per share						$ 0.75
2014 Warrant [Member] | Maximum [Member]
Shares issued price per share									$ 0.75
2014 Warrant [Member] | Minimum [Member]
Shares issued price per share									$ 0.60
2015 Warrant [Member]
Number of warrants to purchase common stock								1,986,101
2015 Warrant [Member] | Maximum [Member]
Shares issued price per share								$ 0.45
2015 Warrant [Member] | Minimum [Member]
Shares issued price per share								$ 0.40
2017 Warrant [Member]
Number of warrants to purchase common stock		1,396,470	1,572,941			176,471
Shares issued price per share						$ 1.25
Proceeds from issuance of common shares		$ 2,720,000
2017 Warrant [Member] | Maximum [Member]
Shares issued price per share			$ 1.25
2017 Warrant [Member] | Minimum [Member]
Shares issued price per share			$ 0.85
Original Warrants [Member]
Warrant expiration date						Sep. 25, 2017
Number of warrants exercise during the period						573,057
2015 Warrant [Member]
Number of warrants to purchase common stock		1,599,135				268,909
Proceeds from issuance of common shares						$ 107,000
2015 Warrant [Member] | Garden State Securities Inc [Member]
Number of warrants to purchase common stock						4,756,163
Proceeds from issuance of common shares						$ 2,632,000
Warrant [Member]
Issuance of share of common stock						158,342	4,179
Number of warrants exercise during the period						4,756,163
Net exercise of warrants						198,057
Derivative Instruments [Member]
Number of warrants exercise during the period							236,116
Equity Instruments [Member]
Number of warrants exercise during the period							106,000

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Warrant Activity (Details) - shares	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Stockholders' equity
Warrants Outstanding Beginning Balance	8,303,836	7,056,426
Warrants Issued		1,724,235
Warrant Exercised	(5,329,220)	(347,451)
Warrants Expired/Cancelled	(113,520)	(129,374)
Warrant Outstanding Ending Balance	2,861,096	8,303,836

Stockholders' Equity - Schedu_2

Stockholders' Equity - Schedule of Warrants Outstanding (Details) - $ / shares	Jul. 31, 2018	Jul. 31, 2017
Warrant exercise price per share
Warrants outstanding	2,861,096
08/29/19 [Member]
Warrant exercise price per share	$ 0.75
Warrants outstanding	2,533,331
12/01/21 [Member]
Warrant exercise price per share	$ 1.25
Warrants outstanding	58,824
12/01/21 [Member]
Warrant exercise price per share	$ 1.28
Warrants outstanding	117,647
01/23/22 [Member]
Warrant exercise price per share	$ 1.25
Warrants outstanding	117,647
01/23/22 [Member]
Warrant exercise price per share	$ 1.28
Warrants outstanding	33,647

Share-Based Compensation (Detai

Share-Based Compensation (Details Narrative) - USD ($)	Dec. 13, 2016	Feb. 29, 2016	Jul. 31, 2018	Jul. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of common stock shares issued for services			$ 172,000
Options issued to purchase common stock			2,245,000	3,735,000
Share-based compensation			$ 2,359,000	$ 1,070,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation			$ 1,525,000	$ 968,000
Weighted-average contractual term of options outstanding			5 years 5 months 20 days
Stock options were exercisable			4,017,343
Exercise price			$ 1.18
Aggregate intrinsic value			$ 0
Weighted average contractual term			4 years 7 days
Weighted average grant date fair value for options granted			$ 0.44	$ 0.67
Unrecognized compensation cost of unvested stock option grants			$ 1,533,000
Weighted-average contractual term of expected to vest			2 years 5 months 5 days
2007 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares increase under the plan		4,000,000
Share-based compensation, expiration date		Feb. 4, 2026
Contractual life vesting periods		10 years
Number of shares available for issuance under the plan			940,000
2017 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual life vesting periods			10 years
Number of shares available for issuance under the plan			2,815,000
Common stock, shares reserved			5,000,000
Common Stock One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock shares issued for services			190,500
Value of common stock shares issued for services			$ 121,000
RSU Cancellation Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-vest expense reversed				$ 87,000
RSU Cancellation Agreement [Member] | Officers and Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of vested shares of common stock	3,900,000
Employees, Directors, and Consultants [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options issued to purchase common stock			2,245,000	3,735,000
Option vested description			The options vest between one and two years and carry a term between five and ten years.
Number of share options expiration terms extended			740,000
Options expirations term			3 years
Share-based compensation			$ 203,000
Restricted Stock Units RSU [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares expected to vest			1,225,000
Unvested restricted stock units outstanding			1,525,000
Unrecognized non-cash compensation costs			$ 960,000
Unrecognized non-cash compensation costs, weighted average period			2 years 7 months 21 days
Restricted stock units vested			375,000	150,000
Issuance of shares of common stock				150,000
Share-based compensation			$ 834,000	$ 102,000
Restricted Stock Units RSU [Member] | Board of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued during period, shares, share-based compensation			450,000	1,150,000
Restricted stock units vested percentage			50.00%	50.00%
Restricted Stock Units RSU [Member] | Third-party consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued during period, shares, share-based compensation			300,000
Shares expected to vest			300,000

Share-Based Compensation - Sche

Share-Based Compensation - Schedule of Restricted Stock Activity (Details) - Restricted Stock Units RSU [Member] - shares	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Outstanding, Shares, Beginning Balance	2,035,000	1,285,000
Granted	750,000	1,150,000
Vested	(375,000)	(150,000)
Forfeited	(885,000)	(250,000)
Outstanding, Shares, Ending Balance	1,525,000	2,035,000

Share-Based Compensation - Sc_2

Share-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($)	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options Outstanding Shares, Beginning Balance	5,759,843	2,277,968
Options Granted, Shares	2,245,000	3,735,000
Options Exercised, Shares
Options Cancelled, Shares	(378,750)	(253,125)
Options Outstanding Shares, Ending Balance	7,626,093	5,759,843
Weighted Average Exercise Price Outstanding, Beginning Balance	$ 1.25	$ 1.60
Weighted Average Exercise Price Granted	0.84	1.05
Weighted Average Exercise Price Exercised
Weighted Average Exercise Price Cancelled	1.96	1.42
Weighted Average Exercise Price Outstanding, Ending Balance	$ 1.09	$ 1.25
Aggregate Intrinsic Value Outstanding, Beginning Balance	$ 1,120,000
Aggregate Intrinsic Value Outstanding, Ending Balance		$ 1,120,000

Share-Based Compensation - Sc_3

Share-Based Compensation - Schedule of Fair Value Assumptions (Details)	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Volatility	71.18%	81.00%
Risk-free interest rate	2.32%	1.70%
Dividend yield	0.00%	0.00%
Expected life	3 years 8 months 9 days	4 years 7 months 28 days

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	Jun. 28, 2018	Jul. 31, 2018	Jul. 31, 2017
Proceeds from promissory note financing	$ 500,000	$ 500,000
Interest percentage	6.50%
Debt principal amount		500,000
Accrued and unpaid interest		3,000
Net product sales		1,774,000
Accounts receivables		275,000	297,000
SDC Technology [Member]
Due to related parties		86,000	75,000
Accounts receivables			6,000
ICC [Member]
Net product sales		$ 8,000	$ 33,000

Sales Concentration (Details Na

Sales Concentration (Details Narrative) - USD ($)	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Sales revenue	$ 1,774,000
Sales Revenue, Net [Member]
Sales revenue	$ 1,774,000	$ 1,831,000
Sales Revenue, Net [Member] | Customer 1 [Member]
Concentration risk percentage	20.00%	33.00%
Sales Revenue, Net [Member] | Customer 2 [Member]
Concentration risk percentage	16.00%	19.00%
Sales Revenue, Net [Member] | Customer 3 [Member]
Concentration risk percentage	11.00%
Sales Revenue, Net [Member] | Other Individual Customer [Member]
Concentration risk percentage	10.00%	10.00%

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	Dec. 22, 2017	Jul. 31, 2018	Jul. 31, 2017
Provision for income tax		$ 1,650	$ 1,650
Federal operating loss carry forwards		105,200,000	100,300,000
State operating loss carry forward		$ 60,500,000	$ 74,700,000
Ownership change percentage		50.00%
Federal operating loss carry forwards expiration date		Jul. 31, 2038
State operating loss carry forwards expiration date		Jul. 31, 2038
Decrease in deferred tax assets		$ 5,450,000
Increase in deferred tax assets		7,653,000
Increase and decrease in deferred tax asset		$ 13,103,000
Income tax examination description	The reduction of the U.S. federal corporate tax rate from 35% to 21% resulted in a remeasurement of our deferred tax assets.	The reduction of the U.S. federal corporate tax rate from 35% to 21% resulted in a remeasurement of the deferred tax asset
Federal corporate tax rate, percent	21.00%	26.40%	34.00%
Accrued interest or penalties
Tax Reform [Member]
Federal corporate tax rate, percent		21.00%

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($)	Jul. 31, 2018	Jul. 31, 2017
Income Tax Disclosure [Abstract]
Net operating loss carry-forward	$ 26,170,000	$ 30,970,000
Stock options and warrants	2,590,000	3,250,000
Other temporary differences	(130,000)	(140,000)
Total deferred tax assets	28,630,000	34,080,000
Valuation allowance for deferred tax assets	(28,630,000)	(34,080,000)
Net deferred tax assets

Income Taxes - Schedule of Reco

Income Taxes - Schedule of Reconciliation Effective Tax Rate, Percentage (Details)	Dec. 22, 2017	Jul. 31, 2018	Jul. 31, 2017
Income Tax Disclosure [Abstract]
Federal tax benefit at the expected statutory rate	21.00%	26.40%	34.00%
State income tax, net of federal tax benefit		32.50%	0.80%
Expired net operating loss carryforwards		(20.00%)	(6.60%)
Other		(2.90%)	(7.70%)
Rate change adjustment		175.40%
Change in state tax rates			(4.20%)
Permanent items			(3.30%)
Valuation allowance		139.40%	(13.00%)
Income tax benefit - effective rate		0.00%	0.00%

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	Aug. 16, 2018	Jul. 31, 2018
Investments amount		$ 500,000
Subsequent Event [Member]
Net proceeds from repayment of debt	$ 1,490,000
Subsequent Event [Member] | Mr. Tom Y. Lee [Member]
Investments amount	1,000,000
Investment cash	500,000
Cancellation of indebtedness amount	500,000
Subsequent Event [Member] | Private Placement [Member]
Closing value of common stock shares	$ 1,500,000
Number of common stock shares issued	3,333,964
Purchase price per shares	$ 0.45
Conversion amount	$ 500,000