Document and Entity Information
Document and Entity Information | 3 Months Ended |
Apr. 30, 2015 | |
Document And Entity Information | |
Entity Registrant Name | GENEREX BIOTECHNOLOGY CORP |
Entity Central Index Key | 1,059,784 |
Document Type | S1 |
Document Period End Date | Apr. 30, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --07-31 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Smaller Reporting Company |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,014 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Apr. 30, 2015 | Jul. 31, 2014 | Apr. 30, 2014 | Jul. 31, 2013 |
Current Assets: | ||||
Cash and cash equivalents | $ 925,926 | $ 3,269,489 | $ 4,218,735 | $ 1,708,954 |
Other current assets | 48,992 | 201,314 | 201,314 | 98,315 |
Total Current Assets | 974,918 | 3,470,803 | 3,470,803 | 1,807,269 |
Property and Equipment, Net (Note 3) | 3,520 | $ 5,293 | 5,293 | 85,406 |
Assets Held for Investment, Net (Note 3) | 640,772 | |||
Patents, Net (Note 4) | 1,835,267 | $ 2,046,361 | 2,046,361 | 2,319,416 |
TOTAL ASSETS | 2,813,705 | 5,522,457 | 5,522,457 | 4,852,863 |
Current Liabilities: | ||||
Accounts payable and accrued expenses (Note 6) | 7,622,479 | 8,034,122 | 8,034,122 | 7,661,234 |
Deferred revenue | 223,662 | $ 223,662 | 223,662 | 224,843 |
Current maturities of long-term debt (Note 8) | 617,665 | |||
Total Current Liabilities | 7,846,141 | $ 8,257,784 | 8,257,784 | 8,503,742 |
Derivative Warrant Liability (Note 10) | $ 2,689,240 | 2,635,643 | 2,635,643 | 5,234,293 |
Derivative Additional Investment Rights Liability (Note 10) | 719,088 | 719,088 | 1,256,160 | |
Total Liabilities | $ 10,535,381 | $ 11,612,515 | $ 11,612,515 | $ 14,994,195 |
Stockholders' Deficiency (Notes 9 and 11): | ||||
9% Convertible Preferred Stock | ||||
Common stock, $.001 par value; authorized 1,500,000,000 shares at July 31. 2014 and July 31, 2013, respectively; 778,512,092 and 580,329,160 issued and outstanding at July 31, 2014 and July 31, 2013, respectively; authorized 1,500,000,000 shares at April 30, 2015 and July 31, 2014, respectively; 806,477,610 and 778,512,092 issued and outstanding at April 30, 2015 and July 31, 2014, respectively | $ 806,477 | $ 778,512 | $ 778,512 | $ 580,329 |
Additional paid-in capital | 362,484,863 | 362,307,678 | 362,307,678 | 356,401,812 |
Accumulated deficit | (371,806,772) | (369,948,322) | (369,948,322) | (367,888,576) |
Accumulated other comprehensive income | 793,756 | 772,074 | 772,074 | 765,103 |
Total Stockholders' Deficiency | (7,721,676) | (6,090,058) | (6,090,058) | (10,141,332) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY | $ 2,813,705 | $ 5,522,457 | $ 5,522,457 | $ 4,852,863 |
Series A Convertible Preferred Stock | ||||
Stockholders' Deficiency (Notes 9 and 11): | ||||
9% Convertible Preferred Stock | ||||
Series B Convertible Preferred Stock | ||||
Stockholders' Deficiency (Notes 9 and 11): | ||||
9% Convertible Preferred Stock | ||||
Series C Convertible Preferred Stock | ||||
Stockholders' Deficiency (Notes 9 and 11): | ||||
9% Convertible Preferred Stock | ||||
Series D Convertible Preferred Stock | ||||
Stockholders' Deficiency (Notes 9 and 11): | ||||
9% Convertible Preferred Stock | ||||
Series E Convertible Preferred Stock | ||||
Stockholders' Deficiency (Notes 9 and 11): | ||||
9% Convertible Preferred Stock | ||||
Series F Convertible Preferred Stock | ||||
Stockholders' Deficiency (Notes 9 and 11): | ||||
9% Convertible Preferred Stock |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 30, 2015 | Jul. 31, 2014 | Jul. 31, 2013 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ .001 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 3,470,513 | 778,512,092 | 580,329,160 |
Common stock, shares outstanding | 806,477,610 | 778,512,092 | 580,329,160 |
Series A Convertible Preferred Stock | |||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 |
Convertible preferred stock, shares authorized | 5,500 | 5,500 | 5,500 |
Convertible preferred stock, shares issued | 0 | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 | 0 |
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | 9.00% |
Series B Convertible Preferred Stock | |||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 |
Convertible preferred stock, shares authorized | 2,000 | 2,000 | 2,000 |
Convertible preferred stock, shares issued | 0 | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 | 0 |
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | 9.00% |
Series C Convertible Preferred Stock | |||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 |
Convertible preferred stock, shares authorized | 750 | 750 | 750 |
Convertible preferred stock, shares issued | 0 | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 | 0 |
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | 9.00% |
Series D Convertible Preferred Stock | |||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 |
Convertible preferred stock, shares authorized | 750 | 750 | 750 |
Convertible preferred stock, shares issued | 0 | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 | 0 |
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | 9.00% |
Series E Convertible Preferred Stock | |||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 |
Convertible preferred stock, shares authorized | 2,450 | 2,450 | 2,450 |
Convertible preferred stock, shares issued | 25 | 25 | 930 |
Convertible preferred stock, shares outstanding | 25 | 25 | 930 |
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | 9.00% |
Series F Convertible Preferred Stock | |||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 |
Convertible preferred stock, shares authorized | 4,150 | 4,150 | 0 |
Convertible preferred stock, shares issued | 838 | 1,225 | 0 |
Convertible preferred stock, shares outstanding | 838 | 1,225 | 0 |
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Income Statement [Abstract] | |||||||
Revenues, net | $ 28,651 | ||||||
Cost of Goods Sold | 11,109 | ||||||
Gross profit | 17,542 | ||||||
Operating Expenses: | |||||||
Research and development | $ 224,026 | $ 348,104 | $ 854,706 | $ 1,097,877 | $ 1,382,995 | $ 2,192,724 | 4,987,236 |
Selling and marketing | 165,175 | ||||||
General and administrative | 627,575 | 894,745 | 1,740,511 | 2,598,884 | $ 3,016,684 | $ 3,936,635 | 4,889,179 |
Total Operating Expenses | 851,601 | 1,242,849 | 2,595,217 | 3,696,761 | 4,399,679 | 6,129,359 | 10,041,590 |
Operating Loss | $ (851,601) | $ (1,242,849) | $ (2,595,217) | (3,696,761) | (4,399,679) | (6,129,359) | (10,024,048) |
Other Income (Expense): | |||||||
Income from assets held for investment, net (Note 3) | 193,607 | 193,607 | 1,245,165 | 2,206,216 | |||
Interest income | $ 523 | $ 11 | 569 | 586 | 353 | 1,519 | |
Interest expense | $ (89,372) | (78,126) | (256,574) | (243,506) | (321,670) | (530,222) | (592,525) |
Change in fair value of derivative liabilities (Note 10) | $ (455,184) | $ 1,591,375 | 665,491 | $ 1,360,818 | 4,525,739 | (3,140,259) | (1,081,440) |
Gain on extinguishment of debt (Note 4) | 327,839 | ||||||
Net Income/(Loss) Before Undernoted | $ (1,396,157) | $ 270,923 | $ (1,858,450) | $ (2,385,273) | |||
Minority Interest Share of Loss | |||||||
Net Income (Loss) | $ (1,396,157) | $ 270,923 | $ (1,858,450) | $ (2,385,273) | (1,417) | (8,554,322) | (9,490,278) |
Preferred Stock Dividend | 2,058,329 | 1,722,474 | 376,746 | ||||
Net Loss Available to Common Stockholders | $ (1,396,157) | $ (1,149,127) | $ (1,858,450) | $ (4,213,602) | $ (2,059,746) | $ (10,276,796) | $ (9,867,024) |
Net Loss per Common Share (Note 6) - Basic | $ (0.002) | $ (0.002) | $ (0.002) | $ (0.006) | $ (0.003) | $ (0.023) | $ (0.030) |
Net Loss per Common Share (Note 6) - Diluted | $ (0.002) | $ (0.002) | $ (0.002) | $ (0.006) | $ (0.003) | $ (0.023) | $ (0.030) |
Basic Shares Used to Compute Earnings per Share (Note 6) | 791,855,062 | 727,041,541 | 787,175,380 | 649,133,385 | |||
Diluted Shares Used to Compute Earnings/(Loss) per Share (Note 6) | 791,855,062 | 727,041,541 | 787,175,380 | 649,133,385 | |||
Other Comprehensive Income/(Loss) | |||||||
Change in foreign currency translation adjustments | $ (9,553) | $ (4,613) | $ (21,682) | $ (9,633) | |||
Other Comprehensive Income/(Loss) | (9,553) | (4,613) | (21,682) | (9,633) | |||
Comprehensive Income/(Loss) | $ (1,405,710) | 266,310 | $ (1,836,768) | (2,375,640) | |||
Preferred Stock Dividend (Note 7) | 1,420,050 | 1,828,329 | |||||
Comprehensive Loss Availble to Common Stockholders | $ (1,405,710) | $ (1,153,740) | $ (1,836,768) | $ (4,203,969) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIENCY - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jul. 31, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Preferred Stock | ||||||
Beginning Balance (in shares) | 1,250 | 930 | 930 | 1,490 | 1,287 | |
Issuance of common stock as employee compensation (in shares) | ||||||
Issuance of common stock in exchange for services rendered (in shares) | ||||||
Issuance of preferred stock in financing (in shares) | 2,875 | 2,725 | 2,000 | |||
Issuance of common stock upon conversion of preferred stock (in shares) | (2,555) | (3,285) | (1,797) | |||
Issuance of common stock for preferred stock make whole payments (in shares) | ||||||
Exercise of additional investment rights | ||||||
Cancellation of common stock (in shares) | ||||||
Exercise of stock options for cash (in shares) | ||||||
Exercise of warrants for cash (in shares) | ||||||
Cashless exercise of warrants (in shares) | ||||||
Stock-based compensation | ||||||
Net loss | ||||||
Preferred stock dividend (see Note 9) | ||||||
Currency translation adjustment | ||||||
Ending Balance (in shares) | 1,250 | 1,250 | 930 | 1,490 | ||
Common Stock | ||||||
Beginning Balance | $ 778,512 | $ 580,329 | $ 580,329 | $ 354,161 | $ 308,520 | |
Beginning Balance (in shares) | 778,512,092 | 580,329,160 | 580,329,160 | 354,161,297 | 308,519,768 | |
Issuance of common stock as employee compensation | $ 4,333 | $ 981 | ||||
Issuance of common stock as employee compensation (in shares) | 4,333,333 | 981,353 | ||||
Issuance of common stock in exchange for services rendered | $ 7,633 | $ 8,251 | $ 5,402 | |||
Issuance of common stock in exchange for services rendered (in shares) | 7,633,333 | 8,251,150 | 5,401,722 | |||
Issuance of preferred stock in financing | ||||||
Issuance of common stock upon conversion of preferred stock | $ 85,167 | $ 92,871 | $ 11,980 | |||
Issuance of common stock upon conversion of preferred stock (in shares) | 85,166,663 | 92,870,829 | 11,980,003 | |||
Issuance of common stock for preferred stock make whole payments | $ 23,792 | $ 30,452 | $ 5,319 | |||
Issuance of common stock for preferred stock make whole payments (in shares) | 23,791,817 | 30,452,292 | 5,319,026 | |||
Exercise of additional investment rights | ||||||
Cancellation of common stock | $ (1,278) | |||||
Cancellation of common stock (in shares) | (1,278,246) | |||||
Exercise of stock options for cash | $ 526 | $ 5,180 | $ 1,300 | |||
Exercise of stock options for cash (in shares) | 526,306 | 5,180,378 | 1,299,994 | |||
Exercise of warrants for cash | $ 76,731 | $ 61,507 | $ 200 | |||
Exercise of warrants for cash (in shares) | 76,731,480 | 61,506,785 | 200,000 | |||
Cashless exercise of warrants | $ 29,185 | $ 20,459 | ||||
Cashless exercise of warrants (in shares) | 29,184,675 | 20,459,431 | ||||
Stock-based compensation | ||||||
Net loss | ||||||
Preferred stock dividend (see Note 9) | ||||||
Currency translation adjustment | ||||||
Ending Balance | $ 778,512 | $ 778,512 | $ 580,329 | $ 354,161 | ||
Ending Balance (in shares) | 778,512,092 | 778,512,092 | 580,329,160 | 354,161,297 | ||
Additional Paid-In Capital | ||||||
Beginning Balance | $ 362,307,678 | $ 356,401,812 | $ 356,401,812 | $ 348,099,813 | $ 338,124,525 | |
Issuance of common stock as employee compensation | 125,667 | 129,562 | ||||
Issuance of common stock in exchange for services rendered | $ 279,147 | $ 384,171 | 694,043 | |||
Issuance of preferred stock in financing | ||||||
Issuance of common stock upon conversion of preferred stock | $ (85,167) | $ 657,129 | (11,980) | |||
Issuance of common stock for preferred stock make whole payments | 666,058 | 856,498 | 479,871 | |||
Exercise of additional investment rights | $ 237,566 | $ 841,333 | ||||
Cancellation of common stock | $ 1,278 | |||||
Exercise of stock options for cash | ||||||
Exercise of warrants for cash | $ 4,419,725 | $ 3,231,738 | $ 29,800 | |||
Cashless exercise of warrants | 2,333,431 | 7,210,274 | ||||
Stock-based compensation | $ 262,871 | $ 837,753 | $ 602,384 | |||
Net loss | ||||||
Preferred stock dividend (see Note 9) | ||||||
Currency translation adjustment | ||||||
Ending Balance | $ 362,307,678 | $ 362,307,678 | $ 356,401,812 | $ 348,099,813 | ||
Accumulated Deficit | ||||||
Beginning Balance | (369,948,322) | (367,888,576) | $ (367,888,576) | $ (357,611,780) | $ (347,744,756) | |
Issuance of common stock as employee compensation | ||||||
Issuance of common stock in exchange for services rendered | ||||||
Issuance of preferred stock in financing | ||||||
Issuance of common stock upon conversion of preferred stock | ||||||
Issuance of common stock for preferred stock make whole payments | ||||||
Exercise of additional investment rights | ||||||
Cancellation of common stock | ||||||
Exercise of stock options for cash | ||||||
Exercise of warrants for cash | ||||||
Cashless exercise of warrants | ||||||
Stock-based compensation | ||||||
Net loss | $ (1,417) | $ (8,554,322) | $ (9,490,278) | |||
Preferred stock dividend (see Note 9) | $ (2,058,329) | $ (1,722,474) | $ (376,746) | |||
Currency translation adjustment | ||||||
Ending Balance | (369,948,322) | $ (369,948,322) | $ (367,888,576) | $ (357,611,780) | ||
Accumulated Other Comprehensive Income (Loss) | ||||||
Beginning Balance | 772,074 | 765,103 | $ 765,103 | $ 777,615 | $ 869,575 | |
Issuance of common stock as employee compensation | ||||||
Issuance of common stock in exchange for services rendered | ||||||
Issuance of preferred stock in financing | ||||||
Issuance of common stock upon conversion of preferred stock | ||||||
Issuance of common stock for preferred stock make whole payments | ||||||
Exercise of additional investment rights | ||||||
Cancellation of common stock | ||||||
Exercise of stock options for cash | ||||||
Exercise of warrants for cash | ||||||
Cashless exercise of warrants | ||||||
Stock-based compensation | ||||||
Net loss | ||||||
Preferred stock dividend (see Note 9) | ||||||
Currency translation adjustment | $ 6,971 | $ (12,512) | $ (91,960) | |||
Ending Balance | 772,074 | 772,074 | 765,103 | 777,615 | ||
Beginning Balance | (6,090,058) | (6,090,058) | (10,141,332) | (10,141,332) | (8,380,190) | (8,442,136) |
Issuance of common stock as employee compensation | 130,000 | 130,543 | ||||
Issuance of common stock in exchange for services rendered | $ 286,780 | $ 392,422 | $ 699,445 | |||
Issuance of preferred stock in financing | ||||||
Issuance of common stock upon conversion of preferred stock | $ 0 | |||||
Issuance of common stock for preferred stock make whole payments | $ 689,850 | $ 886,950 | $ 485,190 | |||
Exercise of additional investment rights | 237,566 | 841,333 | ||||
Cancellation of common stock | ||||||
Exercise of stock options for cash | 526 | $ 5,180 | 1,300 | |||
Exercise of warrants for cash | $ 4,496,456 | 3,293,245 | 30,000 | |||
Cashless exercise of warrants | 2,362,616 | 7,230,734 | ||||
Stock-based compensation | $ 262,871 | 837,753 | 602,384 | |||
Net loss | (1,858,450) | (2,385,273) | (1,417) | (8,554,322) | (9,490,278) | |
Preferred stock dividend (see Note 9) | (2,058,329) | (1,722,474) | (376,746) | |||
Currency translation adjustment | 6,971 | (12,512) | (91,960) | |||
Ending Balance | $ (6,090,058) | $ (7,721,676) | $ (6,090,058) | $ (6,090,058) | $ (10,141,332) | $ (8,380,190) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | 12 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Cash Flows From Operating Activities: | |||||
Net loss | $ (1,858,450) | $ (2,385,273) | $ (1,417) | $ (8,554,322) | $ (9,490,278) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation and amortization | $ 291,404 | 280,743 | 368,447 | 463,718 | 612,658 |
Stock compensation expense | 262,871 | 392,871 | 837,754 | 732,928 | |
Common stock issued for services rendered | $ 94,312 | 360,500 | $ 286,780 | $ 392,421 | 699,445 |
Write-off of abandoned patents | 440,780 | ||||
Gain on disposal of property and equipment | (188,869) | $ (188,869) | $ (1,037,485) | (2,027,939) | |
Common stock issued for interest on convertible debentures & preferred stock | 689,850 | 886,950 | 485,190 | ||
Common stock issued as make-whole payments on preferred stock | $ 104,423 | 522,450 | |||
Change in fair value of derivative liabilities | (665,491) | (1,360,818) | (4,525,739) | 3,140,259 | 1,081,440 |
Changes in operating assets and liabilities | |||||
Accounts payable and accrued expenses | $ (378,275) | (300,383) | (490,352) | 123,556 | (1,218,616) |
Deferred revenue | (1,181) | (1,181) | (38,282) | (105,395) | |
Other current assets | $ 150,565 | 51,003 | (104,015) | 124,197 | 745,808 |
Net Cash Used in Operating Activities | $ (2,261,512) | (2,758,957) | $ (3,573,625) | $ (3,661,234) | (8,043,979) |
Cash Flows From Investing Activities: | |||||
Purchase of property and equipment | (2,416) | ||||
Proceeds from sale of property and equipment | 883,780 | $ 883,780 | $ 1,764,008 | 4,953,325 | |
Costs incurred for patents | $ (84,389) | (61,812) | (89,481) | (78,948) | (173,775) |
Net Cash Provided By Investing Activities | $ (84,389) | 821,968 | $ 794,299 | 1,685,060 | 4,777,134 |
Cash Flows From Financing Activities: | |||||
Proceeds from issuance of long-term debt | 829,038 | 3,561,688 | |||
Repayment of long-term debt | (606,806) | $ (606,806) | (1,833,265) | (4,821,511) | |
Proceeds from exercise of warrants | 2,301,944 | 2,301,944 | 1,845,204 | 30,000 | |
Proceeds from exercise of stock options | $ 6,416 | 526 | 526 | 5,181 | 1,300 |
Proceeds from issuance of preferred stock | 2,770,000 | 2,655,000 | 2,615,000 | 1,975,000 | |
Net Cash Provided by Financing Activities | $ 6,416 | 4,465,664 | 4,350,664 | 3,461,158 | 746,477 |
Effect of Exchange Rates on Cash | (4,078) | (18,894) | (10,803) | (22,339) | (32,120) |
Net Increase/(Decrease) in Cash and Cash Equivalents | (2,343,563) | 2,509,781 | 1,560,535 | 1,462,645 | (2,552,488) |
Cash and Cash Equivalents, Beginning of Year | 3,269,489 | 1,708,954 | 1,708,954 | 246,309 | 2,798,797 |
Cash and Cash Equivalents, End of Year | $ 925,926 | 4,218,735 | 3,269,489 | 1,708,954 | 246,309 |
Supplemental Disclosure of Cash Flow Information | |||||
Interest paid in cash | $ 35,542 | 35,541 | $ 327,722 | $ 592,525 | |
Issuance of stock options to satisfy compensation liabilities | 257,505 | ||||
Issuance of stock as financing share issuance costs | 115,000 | ||||
Issuance of common stock as payment of dividends on preferred stock | $ 689,850 | $ 886,950 | $ 485,190 |
Organization and Business
Organization and Business | 12 Months Ended |
Jul. 31, 2014 | |
Accounting Policies [Abstract] | |
Organization and Business | Note 1 - Organization and Business Generex Biotechnology Corporation (the Company) and its wholly-owned subsidiary Generex Pharmaceuticals, Inc. are engaged in the research and development of drug delivery systems and technology. Since its inception, the Company has devoted its efforts and resources to the development of a platform technology for the oral administration of large molecule drugs, including proteins, peptides, monoclonal antibodies, hormones and vaccines, which historically have been administered by injection, either subcutaneously or intravenously. Oral-lyn TM The Companys wholly-owned subsidiary, Antigen Express, Inc. (Antigen), is engaged in research and development of technologies and immunomedicines for the treatment of malignant, infectious, autoimmune and allergic diseases. The Companys immunomedicine products work by stimulating the immune system to either attack offending agents (i.e., cancer cells, bacteria, and viruses) or to stop attacking benign elements (i.e., self proteins and allergens). The immunomedicine products are based on two platform technologies that were discovered by an executive officer of Antigen, the Ii-Key hybrid peptides and Ii-Suppression. These technologies are expected to greatly boost immune cell responses which diagnose and treat the ailments and conditions. The Company has a limited history of operations and limited revenue to date. The Company has several product candidates that are in various research or early stages of pre-clinical and clinical development. There can be no assurance that the Company will be successful in obtaining regulatory clearance for the sale of existing or any future products or that any of the Companys products will be commercially viable. |
Going Concern
Going Concern | 9 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Jul. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Going Concern | Going Concern The accompanying interim statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has experienced negative cash flows from operations since inception and has an accumulated deficit of approximately $372 million and a working capital deficiency of approximately $6.9 million at April 30, 2015. The Company has funded its activities to date almost exclusively from debt and equity financings, as well as the sale of non-essential real estate assets in fiscal 2012 through the first quarter of fiscal 2014 (see Note 9). The Company will continue to require substantial funds to continue research and development, including pre-clinical studies and clinical trials of its product candidates, and to commence sales and marketing efforts, if the U.S. Food and Drug Administration or other regulatory approvals are obtained. Managements plans in order to meet its operating cash flow requirements include financing activities such as private placements of its common stock, preferred stock offerings, issuances of debt and convertible debt instruments. Management is also actively pursuing financial and strategic alternatives, including strategic investments and divestitures, industry collaboration activities and strategic partners. Management has sold its non-essential real estate assets which were classified as Assets Held for Investment to augment its cash position. These factors raise substantial doubt regarding the Companys ability to continue as a going concern. There are no assurances that such additional funding will be achieved and that the Company will succeed in its future operations. The interim statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might be necessary should the Company be unable to continue in existence. The Companys inability to obtain required funding in the near future or its inability to obtain funding on favorable terms will have a material adverse effect on its operations and strategic development plan for future growth. If the Company cannot successfully raise additional capital and implement its strategic development plan, its liquidity, financial condition and business prospects will be materially and adversely affected, and the Company may have to cease operations. | Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has experienced negative cash flows from operations since inception and has an accumulated deficit of approximately $370 million and a working capital deficiency of approximately $4.8 million at July 31, 2014. The Company has funded its activities to date almost exclusively from debt and equity financings, as well as the recent sales of non-essential real estate assets in fiscal 2012, fiscal 2013 and the first quarter of fiscal 2014 (see Note 3). The Company will continue to require substantial funds to continue research and development, including pre-clinical studies and clinical trials of its product candidates, and to commence sales and marketing efforts, if the U.S. Food and Drug Administration or other regulatory approvals are obtained. Managements plans in order to meet its operating cash flow requirements include financing activities such as private placements of its common stock, preferred stock offerings, issuances of debt and convertible debt instruments. Management will be limited in the financing activities that the Company undertakes in the near future as the securities purchase agreements that the Company entered into on January 14, 2014 and March 27, 2014 with certain investors prohibit the Company from (i) issuing additional equity securities until 60 days after the effective date of a registration statement covering the resale of the common stock issuable upon exercise of the warrants and conversion of the preferred stock sold in those transactions; and (ii) issuing additional debt or equity securities with variable conversion or exercise prices until January 14, 2015 and March 27, 2015, respectively. Management is also actively pursuing financial and strategic alternatives, including strategic investments and divestitures, industry collaboration activities and strategic partners. Management has sold its non-essential real estate assets which were classified as Assets Held for Investment to augment its cash position. These factors raise substantial doubt regarding the Companys ability to continue as a going concern. There are no assurances that such additional funding will be achieved and that it will succeed in its future operations. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might be necessary should the Company be unable to continue in existence. The Companys inability to obtain required funding in the near future or its inability to obtain funding on favorable terms will have a material adverse effect on its operations and strategic development plan for future growth. If the Company cannot successfully raise additional capital and implement its strategic development plan, its liquidity, financial condition and business prospects will be materially and adversely affected, and the Company may have to cease operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies: Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its subsidiaries in which a controlling interest is maintained. For those consolidated subsidiaries where the Company ownership is less than 100 percent, the outside stockholders interests are shown as minority interests. Effective December 17, 2004, the Companys ownership in all consolidated subsidiaries is 100 percent. All significant intercompany transactions and balances have been eliminated. Cash and Cash Equivalents The Company considers Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the assets, which range from three to thirty years. Gains and losses on depreciable assets retired or sold are recognized in the statement of operations in the year of disposal. Repairs and maintenance expenditures are expensed as incurred. Assets Held for Investment Property held for investment is recorded at cost less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the assets of thirty years. Gains and losses on depreciable assets retired or sold are recognized in the statement of operations in the year of disposal. Repairs and maintenance expenditures are expensed as incurred. Patents Capitalized patent costs represent legal costs incurred to establish patents and a portion of the acquisition price paid attributed to patents upon the acquisition of Antigen in August 2003. When patents reach a mature stage, any associated legal costs are comprised mostly of maintenance fees and costs of national applications and are expensed as incurred. Capitalized patent costs are amortized on a straight line basis over the remaining life of the patent. As patents are abandoned, the net book value of the patent is written off. Impairment or Disposal of Long-Lived Assets and Intangibles The Company assesses the impairment of long-lived assets under FASB ASC Topic 360 whenever events or changes in circumstances indicate that the carrying value may not be recoverable. For long-lived assets to be held and used, the Company recognizes an impairment loss only if its carrying amount is not recoverable and exceeds its fair value. The carrying amount of the long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposal of the asset. In the fiscal years ended July 31, 2014, 2013 and 2012, the Company sold, wrote off or disposed of certain long-lived assets with net book values of $706,590, $745,172 and $2,945,079, respectively. Derivative Warrant Liability The Companys derivative warrant instruments are measured at fair value using the binomial valuation model which takes into account, as of the valuation date, factors including the current exercise price, the expected life of the warrant, the current price of the underlying stock and its expected volatility, expected dividends on the stock and the risk-free interest rate for the term of the warrant. The liability is revalued at each reporting period and changes in fair value are recognized in the consolidated statements of operations under the caption Change in fair value of derivative warrant liability. See Note 10 Derivative Liabilities Revenue Recognition and Deferred Revenue Revenues from the sale of commercial products are recognized at the time title of goods passes to the buyer and the buyer assumes the risks and rewards of ownership. Certain product sales are made to retailers under agreements allowing for a right to return unsold products. In accordance with FASB ASC Topic 605, recognition of revenue on all sales to these retailers is deferred until the right of return expires, the product is sold to a third party or a provision for returns can be reasonably estimated based on historical experience. The cost of inventory under these sales is considered to be consigned inventory until the revenue is recognized. Sales are reported net of estimated returns and allowances, discounts, mail-in rebate redemptions and credit card chargebacks. If actual sales returns, allowances, discounts, mail-in rebate redemptions or credit card chargebacks are greater than estimated by management, additional expense may be incurred. At July 31, 2014, we have $223,662 of deferred revenue for which a provision for returns cannot be reasonably estimated and thus the balance is included in Deferred Revenue on our consolidated balance sheets. The corresponding cost of sales has been previously written off and is not included in inventory as of July 31, 2014 as the timing of the recognition of the revenue cannot be reasonably estimated. Grant revenue is recognized as the Company provides the services stipulated in the underlying grant based on the time and expenditures incurred. Amounts received in advance of services provided are recorded as deferred revenue and amortized as revenue when the services are provided. There was no grant revenue in fiscal 2014, 2013 or 2012. Included in miscellaneous income are fees received under licensing agreements. Nonrefundable fees received under licensing agreements are recognized as revenue when received if the Company has no continuing obligations to the other party. Rental income is recognized as revenue in the period in which the related rental space is occupied. Research and Development Costs Expenditures for research and development are expensed as incurred and include, among other costs, those related to the production of experimental drugs, including payroll costs, and amounts incurred for conducting clinical trials. Amounts expected to be received from governments under research and development tax credit arrangements are offset against current research and development expense. Income Taxes Income taxes are accounted for under the asset and liability method prescribed by FASB ASC Topic 740. These standards require a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more likely than not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. Deferred income taxes are recorded for temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities reflect the tax rates expected to be in effect for the years in which the differences are expected to reverse. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax asset will not be realized. At The Company adopted the FASB guidance concerning accounting for uncertainty in income taxes, which clarifies the accounting and disclosure for uncertainty in tax positions, as of August 1, 2007. The guidance requires that the Company determine whether it is more likely than not that a tax position will not be sustained upon examination by the appropriate taxing authority. If a tax position does not meet the more likely than not recognition criterion, the guidance requires that the tax position be measured at the largest amount of benefit greater than 50 percent not likely of being sustained upon ultimate settlement. Based on the Companys evaluation, management has concluded that there are no significant uncertain tax positions requiring recognition in the consolidated financial statements. Stock-Based Compensation The Company follows FASB ASC Topic 718 which requires that new, modified and unvested share-based payment transactions with employees, such as grants of stock options and restricted stock, be recognized in the financial statements based on their fair value at the grant date and recognized as compensation expense over their vesting periods. The Company estimates the fair value of stock options as of the date of grant using the Black-Scholes option pricing model and restricted stock based on the quoted market price or the value of the services provided, whichever is more readily determinable. The Company also follows the guidance in FASB ASC Topic 505 for equity based payments to non-employees for equity instruments issued to consultants and other non-employees. Net Loss per Common Share Basic earnings per share is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the period. The computation of diluted earnings per share does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings. Refer to Note 13 for methodology for determining net loss per share. Comprehensive Income/(Loss) Other comprehensive income/(loss), which includes only foreign currency translation adjustments, is shown in the Statement of Changes in Stockholders Equity. Concentration of Credit Risk The Company maintains cash balances, at times, with financial institutions in excess of amounts insured by the Canada Deposit Insurance Corporation and the U.S. Federal Deposit Insurance Corporation. Management monitors the soundness of these institutions and has not experienced any collection losses with these financial institutions. Foreign Currency Translation Foreign denominated assets and liabilities of the Company are translated into U.S. dollars at the prevailing exchange rates in effect at the end of the reporting period. Income statement accounts are translated at a weighted average of exchange rates which were in effect during the period. Translation adjustments that arise from translating the foreign subsidiarys financial statements from local currency to U.S. currency are recorded in the other comprehensive loss component of stockholders equity. Fair Value of Financial Instruments Fair value is defined under FASB ASC Topic 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for an asset or liability in an orderly transaction between participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on the levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The levels are 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 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 value of the assets or liabilities The Companys financial instruments consist of cash and cash equivalents, other current assets, long-term debt, accounts payable and accrued expenses, as well as derivative warrant liabilities and derivative additional investment rights. All of these items, except for the derivative warrant liabilities and derivative additional investment rights, were determined to be Level 1 fair value measurements. The carrying amounts of cash and cash equivalents, other current assets and accounts payable and accrued expenses approximate their respective fair values because of the short maturities of these instruments. Long-term debt balances were determined to approximate their fair value as we believe the borrowing rates reflect the prevailing market rates available for similar debt instruments. The Company has determined its derivative warrant liability and its derivative additional investment rights liability to be Level 2 fair value measurements and has used the binomial lattice model valuation method to calculate the fair value of the derivative warrant liability and the derivative additional investment rights liability at July 31, 2014, 2013 and 2012. See Note 10 Derivative Liabilities Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company evaluates its estimates, including those related to bad debts, long lived assets (including patents) impairment valuations, debt obligations, derivatives, convertible preferred shares, long-term contracts, and contingencies and litigation, on an ongoing basis. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Critical accounting estimates are reviewed and discussed with the audit committee of the board of directors. The Company considers an accounting estimate to be critical if it requires assumptions to be made that were uncertain at the time the estimate was made, if changes in the estimate or if different estimates that could have been selected would have a material impact on our results of operations or financial condition. Effects of Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2014, the FASB issued guidance regarding the elimination of the reporting requirement for development stage entities and removed the definition of development stage entity from the Accounting Standards Codification. The Company has adopted this guidance effective for the Companys annual fiscal year ended July 31, 2014. The adoption of this new accounting guidance resulted in the elimination of the inception-to-date financial information in the consolidated statements of operations, statements of changes in stockholders deficiency and statements of cash flows, as well as the removal of the subheading A Development Stage Company from the consolidated financial statements and the notes to the consolidated financial statements. Recently Issued Accounting Pronouncements In August 2014, the FASB issued guidance regarding disclosure of uncertainties about an entitys ability to continue as a going concern. The guidance will be effective for the Companys annual fiscal year ended July 31, 2017 and subsequent interim periods. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. |
Long-lived Assets
Long-lived Assets | 9 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Jul. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Long-lived Assets | Note 9 Income from Assets Held for Investment, net: In August 2013, the Company sold a property which was held for investment for gross proceeds after real estate commissions of $883,780. This property had a net book value of $694,911, resulting in an accounting gain of $188,869 which is included in income from assets held for investment, net on the interim consolidated statement of operations. The property was secured by a mortgage which was discharged upon the sale. After the discharge of the mortgage ($606,806), as well as legal fees, interest, penalties and other costs ($73,628 in aggregate), the sale resulted in net cash proceeds to the Company of $203,346. | Note 3 - Long-lived Assets Proper and Equipment The costs and accumulated depreciation of property and equipment are summarized as follows: July 31, 2014 2013 Buildings and Improvements $ -0- $ 117,898 Furniture and Fixtures 13,078 23,452 Office Equipment -0- 38,690 Lab Equipment -0- 327,899 Total Property and Equipment 13,078 507,939 Less: Accumulated Depreciated 7,785 422,533 Property and Equipment, Net $ 5,293 $ 85,406 Depreciation expense related to property and equipment amounted to $10,482, $41,890 and $97,967 for the years ended July 31, 2014, 2013 and 2012, respectively. Assets Held for Investment, Net The costs and accumulated depreciation of assets held for investment are summarized as follows: July 31, 2014 2013 Assets Held For Investment $ -0- $ 960,726 Less: Accumulated Depreciation -0- 289,954 Assets Held for Investment, Net $ -0- $ 640,772 These assets were held as collateral for long term debt (see Note 8). Depreciation expense on assets held for investment amounted to $0, $30,764 and $74,070 for the years ended July 31, 2014, 2013 and 2012, respectively. The Company held these properties for investment purposes and collected rental income as described directly below. Income from Assets Held for Investment, net In August 2013, the Company sold a property which was held for investment for gross proceeds after real estate commissions of $883,780. This property had a net book value of $694,911, resulting in an accounting gain of $188,869 which is included in income from assets held for investment, net on the consolidated statement of operations. The property was secured by a mortgage which was discharged upon the sale, as described in the last paragraph of this note below. After the discharge of the mortgage ($606,806), as well as legal fees, interest, penalties and other costs ($73,628 in aggregate) the sale resulted in net cash proceeds to the Company of $203,346. In March 2013, the Company sold a property which was held for investment for gross proceeds after real estate commissions of $256,835. This property had a net book value of $169,566, resulting in an accounting gain of $87,682 which is included in income from assets held for investment, net on the consolidated statement of operations. The property was secured by a mortgage which was partially discharged upon the sale, as described in the last paragraph of this note below. After the partial discharge of the mortgage ($216,810), as well as legal fees, interest, penalties and other costs (approximately $13,000 in aggregate), the sale resulted in net cash proceeds to the Company of $27,025. In September 2012, the Company sold its head office real estate in Toronto for gross proceeds after real estate commissions of $1,579,189. This property had a net book value of $585,064, resulting in an accounting gain of $994,125 which is included in income from assets held for investment, net on the consolidated statement of operations. The net proceeds after commissions and other expenses were used to discharge or partially discharge the first and second mortgages on the property. The first mortgage on the property, with remaining principal of $480,951, was discharged completely upon sale. The remaining net proceeds of $1,028,780 after expenses and the discharge of the first mortgages was used to partially discharge the second mortgage and the Company did not receive any of the net proceeds from this property sale. In July 2012, the Company sold a property for gross proceeds after real estate commissions of $342,862. This property had a net book value of $107,203, resulting in an accounting gain of $235,659 which is included in income from assets held for investment, net, on the consolidated statement of operations. The net proceeds after commissions and other expenses were used to partially discharge the first and second mortgages on the property and the Company did not receive any of the net proceeds from this property sale. In March and April, 2012, the Company sold nine commercial condominium units which were held for investment for gross proceeds after real estate commissions of $2,865,682. These properties had a net book value of $1,783,932, resulting in an accounting gain of $1,081,750 which is included in income from assets held for investment, net on the consolidated statement of operations. The net proceeds after commissions and other expenses were used to discharge or partially discharge the first and second mortgages on the properties. There were two first mortgages on the properties, with combined remaining principals of $571,680, which were discharged completely upon sale. The remaining net proceeds of $2,190,952 after expenses and the discharge of the first mortgages was used to partially discharge the second mortgage and the Company did not receive any of the net proceeds from these property sales. In August 2011, the Company sold two properties which were held for investment for gross proceeds after real estate commissions of $1,669,115. These two properties had a net book value of $1,029,435, resulting in an accounting gain of $639,680 which is included in income from assets held for investment, net on the consolidated statement of operations. The two properties had mortgages of $659,288 which were discharged upon sale, resulting in net cash proceeds to the Company of $1,009,827. The total accounting gains in this category from property sales in the fiscal years ended July 31, 2014, 2013 and 2012 were $188,869, $1,081,807 and $1,957,089, respectively. The remaining income of $4,738, $163,358 and $249,127 in this category in the respective fiscal years ended July 31, 2014, 2013 and 2012, pertains to rental income from properties held for investment, net of carrying and operating expenses. Gross income from rental operations was $7,847, $221,399 and $384,299 and rental expenses were $1,935, $58,041 and $135,172, including the depreciation expense amounts above relating to assets held for investment, for the years ended July 31, 2014, 2013 and 2012, respectively. Prior to the August 2013 property sale, the properties held for investment had an interest only first mortgage which closed on November 30, 2012 with a principal amount $606,806, an interest rate of 9.75% compounded semi-annually and a maturity date of November 30, 2013. Upon the sale of the property, the mortgage was discharged. |
Patents
Patents | 12 Months Ended |
Jul. 31, 2014 | |
Accounting Policies [Abstract] | |
Patents | Note 4 - Patents The costs and accumulated amortization of patents are summarized as follows: July 31, 2014 2013 Patents $ 5,725,908 $ 5,657,455 Less: Accumulated Amortization 3,679,547 3,338,039 Patents, Net 2,046,361 2,319,416 Weighted Average Life 7.8 years 8.6 years Amortization expense amounted to $357,965, $391,777 and $441,087 for the years ended July 31, 2014, 2013 and 2012, respectively. Amortization expense is expected to be approximately $315,000 per year for the years ended July 31, 2015 through 2019. During the years ended July 31, 2014 and 2013, the Company did not write off any patents. During the year ended July 31, 2012, the Company wrote off patents with a net book value of $440,780 as the patents had been abandoned or were no longer being used. The charge was included in research and development expenses on our consolidated statements of operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5 - Income Taxes The Company has incurred losses since inception, which have generated net operating loss (NOL) carryforwards. The NOL carryforwards arise from both United States and Canadian sources. Pretax income/(losses) arising from domestic operations (United States) were $1,274,619, $(8,025,582) and $(8,040,033) for the years ended July 31, 2014, 2013 and 2012, respectively. Pretax losses arising from foreign operations (Canada) were $1,276,036, $528,741 and $1,450,244 for the years ended July 31, 2014, 2013 and 2012, respectively. As of July 31, 2014, the Company has NOL carryforwards in Generex Biotechnology Corporation of approximately $202 million, which expire in 2018 through 2034, in Generex Pharmaceuticals Inc. of approximately $44 million, which expire in 2015 through 2034, and in Antigen Express, Inc. of approximately $25 million, which expire in 2016 through 2034. These loss carryforwards are subject to limitation due to the acquisition of Antigen and may be limited in future years due to certain structural ownership changes which have occurred over the last several years, related to the Companys equity and convertible debenture financing transactions. For the years ended July 31, 2014, 2013 and 2012, the Companys effective tax rate differs from the federal statutory rate principally due to net operating losses and other temporary differences for which no benefit was recorded. Deferred income taxes consist of the following: July 31, 2014 2013 Net operating loss carryforwards $ 90,515,261 $ 87,541,552 Other temporary differences 299,010 800,989 Intangible assets 291,002 -- Total Deferred Tax Assets 91,105,273 88,342,541 Valuation Allowance (91,105,273) (88,089,860) Deferred Tax Liabilities Intangible assets -- (386,320) Other temporary differences -- 142,639 Total Deferred Tax Liabilities -- (243,681) Net Deferred Income Taxes $ -- $ -- A reconciliation of the United States Federal Statutory rate to the Companys effective tax rate for the years ended July 31, 2014, 2013 and 2012 is as follows: 2014 2013 2012 Federal statutory rate (34.0) % (34.0) % (34.0) % Increase (decrease) in income taxes resulting from: Imputed interest income on intercompany receivables from foreign subsidiaries 4,037 6.0 5.0 Non-deductible or non-taxable items (111,569) 13.0 4.0 Other temporary differences (84,061) (14.0) 18.0 Change in valuation allowance 191,627 29.0 (3.0) Effective tax rate -- % -- % -- % As of July 31, 2014, the Company had no tax benefits which have not been fully allowed for, and no adjustment to its financial position, results of operations or cash flows was required. The Company does not expect that unrecognized tax benefits will increase within the next twelve months. The Company records interest and penalties related to tax matters within other expense on the accompanying consolidated statement of operations. These amounts are not material to the consolidated financial statements for the periods presented. Generally, tax years 2011 to 2014 remain open to examination by the Internal Revenue Agency or other tax jurisdictions to which the Company is subject. The Companys Canadian tax returns are subject to examination by federal and provincial taxing authorities in Canada. Generally, tax years 2006 to 2014 remain open to examination by the Canadian Customs and Revenue Agency or other tax jurisdictions to which the Company is subject. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 9 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Jul. 31, 2014 | |
Payables and Accruals [Abstract] | ||
Accounts Payable and Accrued Expenses | Note 6 - Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: July 31, 2014 2013 Accounts Payable and Accruals - General and Administrative $ 3,208,069 $ 3,447,618 Accounts Payable and Accruals - Research and Development 3,955,543 3,557,184 Accounts Payable and Accruals - Selling and Marketing 327,067 328,629 Accrued Make-whole Payments on Covertible Preferred Stock (see Note 9) 337,500 251,100 Executive Compensation and Directors Fees Payable 205,943 76,703 Total $ 8,034,122 $ 7,661,234 | |
Accounts Payable and Accrued Expenses | Note 4 Accounts Payable and Accrued Expenses: Accounts payable and accrued expenses consist of the following: April 30, 2015 July 31, 2014 Accounts Payable and Accruals General and Administrative $ 3,127,111 $ 3,208,069 Accounts Payable and Accruals Research and Development 3,699,158 3,955,543 Accounts Payable and Accruals Selling and Marketing 326,586 327,067 Accrued Make-whole Payments on Convertible Preferred Stock (see Note 7) 233,077 337,500 Executive Compensation and Directors Fees Payable 236,547 205,943 Total $ 7,622,479 $ 8,034,122 In the nine months ended April 30, 2015 the Company had a gain on extinguishment of debt of $327,839 related to the final settlement of a previously owed balance to a vendor. This is reported on the Companys consolidated statement of comprehensive income under the caption Gain on extinguishment of debt and is included in the changes in accounts payable and accrued expenses category in the consolidated statement of cash flows. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Jul. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 7 - Commitments and Contingent Liabilities Leases The Company has entered into various operating lease agreements for the use of operating space, vehicles and office equipment. Aggregate minimum annual lease commitments of the Company under non-cancelable operating leases as of July 31, 2014 are as follows: Fiscal Year Amount 2015 $ 41,750 2016 39,317 2017 41,501 2018 41,938 2019 and thereafter 53,122 Total Minimum Lease Payments $ 217,628 Lease expense amounted to approximately $162,000, $153,000 and $185,000 for the years ended July 31, 2014, 2013 and 2012, respectively. In June 2014, the Company signed a lease extension for its office space in Toronto, Canada which runs from October 2014 through September 2019 at a monthly gross rent, including taxes and expenses of approximately $6,900 per month. The preceding data reflects existing leases and does not include replacements upon their expiration. In the normal course of business, operating leases are generally renewed or replaced by other leases. Supply Agreements and Purchase Obligations On December 7, 2009, the Company entered into a long-term agreement with sanofi-aventis Deutschland GmbH (sanofi). Under this agreement, sanofi will manufacture and supply recombinant human insulin to the Company in the territories specified in the agreement. Through this agreement, the Company will procure recombinant human insulin crystals for use in the production of Generex Oral-lyn. The terms of the supply agreement required the Company to make certain minimum purchases of insulin from sanofi through the period ended December 31, 2011. To date, the Company has not met the minimum purchase commitments under this agreement. After December 31, 2011, sanofi may terminate the agreement due to the Companys failure to meet such purchase commitments. Upon termination, the Company would be obligated to pay sanofi for all materials and components that it has acquired or ordered to manufacture insulin based on the Companys forecasts or minimum purchase commitments, all related work-in-progress (at cost) and all finished insulin in inventory. To date, the Company has not provided forecasts to sanofi for the purchase of insulin and sanofi has not terminated the agreement. The Company has a supply agreement with Presspart Manufacturing Limited (Presspart), whereby the Company will purchase its entire requirements for products to use in the administration of insulin through the buccal mucosa and shall not purchase the products or any metal containers competitive to the products from any other person in exchange for an exclusive non-transferable royalty-free irrevocable license to use the products. The contract shall continue for a minimum period of four contract years from the end of the first contract year in which the total quantity of products purchased by the Company from Presspart exceeds 10,000,000 units, and thereafter, shall continue until terminated by either party by giving twelve months written notice. As of July 31, 2014, the Company has not yet completed a contract year in which the total quantity has exceeded 10,000,000 units and as such the expiration date of this contract cannot be determined. Pending Litigation In February 2001, a former business associate of the former Vice President of Research and Development (VP) of the Company and an entity known as Centrum Technologies Inc. (CTI) commenced an action in the Ontario Superior Court of Justice against the Company and the VP seeking, among other things, damages for alleged breaches of contract and tortious acts related to a business relationship between this former associate and the VP that ceased in July 1996. The plaintiffs statement of claim also seeks to enjoin the use, if any, by the Company of three patents allegedly owned by CTI. The three patents are entitled Liquid Formulations for Proteinic Pharmaceuticals Vaccine Delivery System for Immunization, Using Biodegradable Polymer Microspheres Controlled Releases of Drugs or Hormones in Biodegradable Polymer Microspheres On May 20, 2011, Ms. Perri filed a statement of claim (subsequently amended) in the Ontario Superior Court of Justice, naming as defendants the Company and certain directors of the Company, Mr. Barratt, Ms. Masterson, Mr. McGee, and Mr. Fletcher. In this action, Ms. Perri has alleged that defendants engaged in discrimination, harassment, bad faith and infliction of mental distress in connection with the termination of her employment with the Company. Ms. Perri is seeking damages in this action in excess of $7,000,000 for, among other things, breach of contract, breach of fiduciary duty, violations of the Ontario Human Rights Code and aggravated and punitive damages. On September 20, 2011, the defendants filed a statement of defense and counterclaim, also naming Time Release Corp., Khazak Group Consulting Corp., and David Khazak, C.A. as defendants by counterclaim, and seeking damages of approximately $2.3 million in funds that the defendants allege Ms. Perri wrongly caused the Company to pay to third parties in varying amounts over several years and an accounting of certain third-party payments, plus interests and costs. The factual basis for the counterclaim involves payments made by the Company to third parties believed to be related to Ms. Perri. The Company intends to defend this action and pursue its counterclaim vigorously and is not able to predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential loss, if any, from this legal proceeding. On June 1, 2011, Golden Bull Estates Ltd. filed a claim (subsequently amended) in the Ontario Superior Court of Justice, naming the Company, 1097346 Ontario, Inc. and Generex Pharmaceuticals, Inc. as defendants. The plaintiff, Golden Bull Estates, is controlled by Ms. Perri. The plaintiff alleges damages in the amount of $550,000 for breach of contract, $50,000 for punitive damages, plus interest and costs. The plaintiffs claims relate to an alleged contract between the plaintiff and the Company for property management services for certain Ontario properties owned by the Company. The Company terminated the plaintiffs property management services in April 2011. Following the close of pleadings, the Company served a motion for summary judgment. The plaintiff responded by amending its statement of claim to include a claim to the Companys interest in certain of its real estate holdings. The plaintiff moved for leave to issue and register a Certificate of Pending Litigation in respect of this real estate. The motion was not successful in respect of any current real estate holdings of the Company. The Company is not able to predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential loss, if any, from this legal proceeding. In August 2011, the estate of Antonio Perri, the late father of Ms. Perri, commenced an action against Generex Pharmaceuticals, Inc., the law firm of Brans, Lehun, Baldwin LLP and William Lehun in the Ontario Superior Court of Justice claiming that the estate is entitled to the proceeds of sale (approximately $1,730,000) received by the Company on its sale of two properties to Golden Bull Estates Ltd., a company controlled by Ms. Perri. The suit alleges that no consideration was received when the Company purchased the two properties from Antonio Perri in 1998. The Company responded to this statement of claim. On May 6, 2014, the Company received a court order which dismissed this action for delay as the plaintiff has not brought this action to conclusion or set it down for trial within the time prescribed by the laws of Ontario. In December 2011, a vendor of the Company commenced an action against the Company and its subsidiary, Generex Pharmaceuticals, Inc., in the Ontario Superior Court of Justice claiming damages for unpaid invoices including interest in the amount of $429,000, in addition to costs and further interest. The Company responded to this statement of claim and also asserted a counterclaim in the proceeding for $200,000 arising from the vendors breach of contract and detinue, together with interest and costs. On November 16, 2012, the parties agreed to settle this action and the Company has agreed to pay the plaintiff $125,000, following the spinout of its subsidiary Antigen, from the proceeds of any public or private financing related to Antigen subsequent to such spinout. Each party agreed to execute mutual releases to the claim and counterclaim to be held in trust by each partys counsel until payment of the settlement amount. Following payment to the plaintiff, the parties agree that a Consent Dismissal Order without costs will be filed with the court. If the Company fails to make the payment following completion of any post-spinout financing related to Antigen or any other subsidiaries, the Plaintiffs may take out a judgment in the amount of the claim plus interest of 3% per annum and costs fixed at $25,000. The Company is involved in certain other legal proceedings in addition to those specifically described herein. Subject to the uncertainty inherent in all litigation, the Company does not believe at the present time that the resolution of any of these legal proceedings is likely to have a material adverse effect on the Companys consolidated financial position, operations or cash flows. With respect to all litigation, as additional information concerning the estimates used by the Company becomes known, the Company reassesses its position both with respect to accrued liabilities and other potential exposures. Employment Agreements As of July 31, 2014, the Company had an employment arrangement with its President & Chief Executive Officer, whereby the Company is required to pay an annual base salary of $475,000. The term of service for this executive extended through March 16, 2008, which term had not been formally extended as of July 31, 2014. In the event the agreement is terminated, by reason other than cause, death, voluntary retirement or disability, the Company is required to pay the employee in one lump sum twelve months base salary and the average annual bonus. As of July 31, 2014, the Company has an at will employment agreement with an Antigen employee requiring the Company to pay an annual aggregate salary of $260,480 to the employee. In the event the agreement is terminated by reason other than death, disability, a voluntary termination not for good reason (as defined in the agreement) or a termination for cause, the Company is required to pay the employee severance of six months salary, in accordance with the terms of the individuals employment agreement. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jul. 31, 2014 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 8 - Long-Term Debt Long-term debt consists of the following: July 31, 2014 2013 Mortgage payable - interest at 9.75 percent per annum, monthly interest payments of $6,771, principal due November 2013, secured by secondary rights to real property located at 11 Carlaw Avenue, Toronto, Canada $ -0- $ 617,665 Total Debt -0- 617,665 Less Current Maturities of Long-Term Debt -0- 617,665 Total Long-Term Debt -0- -0- The first mortgage related to the property at 11 Carlaw was discharged on August 14, 2013, in conjunction with the sale of that property and there is no mortgage debt after that date. For the years ended July 31, 2014, 2013 and 2012, the Company incurred $4,969, $196,101 and $568,424, respectively in interest expense on its long-term debt. |
Series A, B, C, D, E & F 9% Con
Series A, B, C, D, E & F 9% Convertible Preferred Stock | 12 Months Ended |
Jul. 31, 2014 | |
Series B C D E F 9 Convertible Preferred Stock | |
Series A, B, C, D, E & F 9% Convertible Preferred Stock | Note 9 - Series A, B, C, D, E & F 9% Convertible Preferred Stock Series A 9% Convertible Preferred Stock The Company has authorized 5,500 shares of Series A 9% Convertible Preferred Stock with a stated value of one thousand ($1,000) per share. Pursuant to a securities purchase agreement dated July 8, 2011, the Company sold an aggregate of 2,575 shares of convertible preferred stock, as well as accompanying warrants to purchase 17,166,666 shares of common stocks. An aggregate of 17,166,666 shares of the Companys common stock were issuable upon conversion of the convertible preferred stock which was issued at the initial closing. As of the end of the Companys fiscal year 2012, all of the issued Series A 9% Convertible Preferred Stock had been converted to common stock. There were 17,166,666 shares of common stock issued upon the conversion of the Series A convertible preferred stock and 6,129,666 shares of common stock issued as make-whole payments on such conversions. Series B 9% Convertible Preferred Stock The Company has authorized 2,000 shares of Series B 9% Convertible Preferred Stock with a stated value of one thousand ($1,000) per share. Pursuant to a securities purchase agreement dated January 31, 2012, the Company sold an aggregate of 2,000 shares of Series B convertible preferred stock, as well as accompanying warrants to purchase 13,333,333 shares of common stocks. An aggregate of 13,333,333 shares of the Companys common stock were issuable upon conversion of the Series B convertible preferred stock which was issued at the initial closing. On December 10, 2012, the triggering of the price protection features of the Series B convertible preferred stock resulted in a decrease of the conversion price from $0.08 to $0.03 per share and a corresponding increase in the number of common shares underlying the remaining 792 shares of Series B convertible preferred stock as of December 10, 2012 from 9,897,500 to 26,393,333. As of the end of the Companys fiscal year 2013, all of the issued Series B 9% Convertible Preferred Stock had been converted to common stock. There were 38,520,832 shares of common stock issued upon the conversion of the Series B convertible preferred stock and 14,819,679 shares of common stock issued as make-whole payments on such conversions. Series C 9% Convertible Preferred Stock The Company has authorized 750 shares of Series C 9% Convertible Preferred Stock with a stated value of one thousand ($1,000) per share. Pursuant to a securities purchase agreement dated August 8, 2012, the Company sold an aggregate of 750 shares of Series C convertible preferred stock, as well as accompanying warrants to purchase 9,375,000 shares of common stocks. An aggregate of 9,375,000 shares of the Companys common stock were issuable upon conversion of the Series C convertible preferred stock which was issued at the initial closing. On December 10, 2012, the triggering of the price protection features of the Series C convertible preferred stock resulted in a decrease of the conversion price from $0.08 to $0.03 per share and a corresponding increase in the number of common shares underlying the 650 shares of Series C convertible preferred stock as of December 10, 2012 from 8,125,000 to 21,666,666. As of the end of the Companys fiscal year 2013, all of the issued Series C 9% Convertible Preferred Stock had been converted to common stock. There were 22,916,665 shares of common stock issued upon the conversion of the Series C convertible preferred stock and 6,664,863 shares of common stock issued as make-whole payments on such conversions. Series D 9% Convertible Preferred Stock The Company has authorized 750 shares of Series D 9% Convertible Preferred Stock with a stated value of one thousand ($1,000) per share. Pursuant to a securities purchase agreement dated December 10, 2012, the Company sold an aggregate of 750 shares of Series D convertible preferred stock, as well as accompanying warrants to purchase 24,999,999 shares of common stocks. An aggregate of 24,999,999 shares of the Companys common stock were issuable upon conversion of the Series D convertible preferred stock which was issued at the initial closing. As of the end of the Companys fiscal year 2013, all of the Series D convertible preferred stock had been converted to common stock. There were 24,999,999 shares of common stock issued upon the conversion of the Series D convertible preferred stock and 7,825,191 shares of common stock issued as make-whole payments on such conversions. Series E and F 9% Covertible Preferred Stock The Company has authorized 2,450 shares of Series E 9% Convertible Preferred Stock with a stated value of one thousand ($1,000) per share. Pursuant to a securities purchase agreement dated June 17, 2013, the Company sold an aggregate of 1,225 shares of Series E convertible preferred stock, as well as accompanying warrants to purchase 40,833,335 shares of common stocks. An aggregate of 40,833,335 shares of the Companys common stock are issuable upon conversion of the Series E convertible preferred stock which was issued at the initial closing on June 17, 2013. Pursuant to a securities purchase agreement dated January 14, 2014, the Company sold an aggregate of 800 shares of Series E convertible preferred stock, as well as accompanying warrants to purchase 26,666,668 shares of common stocks. An aggregate of 26,666,668 shares of the Companys common stock are issuable upon conversion of the Series E convertible preferred stock which was issued at the closing on January 15, 2014. The Company has authorized 4,150 shares of Series F 9% Convertible Preferred Stock with a stated value of one thousand ($1,000) per share. Pursuant to a securities purchase agreement dated March 27, 2014, the Company sold an aggregate of 2,075 shares of Series F convertible preferred stock, as well as accompanying warrants to purchase 69,166,667 shares of common stocks. An aggregate of 69,166,667 shares of the Companys common stock are issuable upon conversion of the Series F convertible preferred stock which was issued at the closing on March 27, 2014. Subject to certain ownership limitations, the convertible preferred stock is convertible at the option of the holder at any time into shares of the Companys common stock at an effective conversion price of $0.03 per share, and will accrue a 9% dividend until the third year anniversary of the issuances. On each one year anniversary thereafter, such dividend rate will increase by an additional 3%. The dividend is payable quarterly on September 30, December 31, March 31 and June 30, beginning on June 30, 2013 and June 30, 2014, respectively, and on each conversion date in cash, or at the Companys option, in shares of common stock. In the event that the Series E and F convertible preferred stock is converted prior to June 17, 2016 and March 27, 2017, respectively, the Company will pay the holder of the converted preferred stock an amount equal to $270 per $1,000 of stated value of the convertible preferred stock, less the amount of all prior quarterly dividends paid on such converted preferred stock before the relevant conversion date. Such make-whole payment may be made in cash or, at the Companys option, in shares of its common stock. In addition, beginning on the third anniversary date of the issuances, the Company will pay dividends on shares of preferred stock equal to (on an as-if-converted-to-common-stock basis) and in the same form as dividends (other than dividends in the form of common stock) actually paid on shares of the common stock when, and if such dividends are paid. The Company will incur a late fee of 18% per annum on unpaid dividends. The conversion price of the convertible preferred stock is subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions and certain pro-rata distributions to common stockholders. The conversion price will also be adjusted if the Company sells or grants any shares of common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower than the then conversion price, except in the event of certain exempt issuances. In addition, the holders of convertible preferred stock will be entitled to receive any securities or rights to acquire securities or property granted or issued by the Company pro rata to the holders of its common stock to the same extent as if such holders had converted all of their shares of convertible preferred stock. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar reorganizations or recapitalizations, the holders of convertible preferred stock will be entitled to receive, upon conversion of their shares, any securities or other consideration received by the holders of the Companys common stock pursuant to the fundamental transaction. In conjunction with the issuance of the Series E convertible preferred stock in June 2013 and January 2014 and the issuance of the Series F convertible preferred stock in June 2014, , the Company also issued 40,833,335, 26,666,668 and 69,166,667 warrants, respectively to the investors. Subject to certain ownership limitations, the warrants will be exercisable at any time after their respective dates of issuance and on or before the fifth-year anniversary thereafter at an exercise price of $0.03 per share of common stock. The exercise price of the warrants and, in some cases, the number of shares issuable upon exercise, are subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions and certain pro-rata distributions to common stockholders. The exercise price and number of shares of common stock issuable upon exercise will also be adjusted if the Company sells or grants any shares of common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower than the then exercise price, except in the event of certain exempt issuances. In addition, the warrant holders will be entitled to receive any securities or rights to acquire securities or property granted or issued by the Company pro rata to the holders of its common stock to the same extent as if such holders had exercised all of their warrants. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar reorganizations or recapitalizations, the warrant holders will be entitled to receive, upon exercise of their warrants, any securities or other consideration received by the holders of the Companys common stock pursuant to the fundamental transaction. These warrants have been classified as derivative liabilities and are described further in Note 10 Derivative Liabilities . In addition, until the first anniversary date of the June 2013 and March 2014 securities purchase agreements, each investor may, in its sole determination, elect to purchase, severally and not jointly with the other investors, in one or more purchases, in the ratio of such investor's original subscription amount to the original aggregate subscription amount of all investors, additional units consisting of convertible preferred stock and warrants at a purchase price of $1,000 per unit with an aggregate subscription amount thereof of up to $1,225,000 and $2,075,000, respectively, which units will have terms identical to the units of convertible preferred stock and warrants issued in connection with the June 2013 and March 2014 closings. These additional investment rights of the investors have been classified as derivative liabilities and are described further in Note 10 Derivative Liabilities . As of July 31, 2014, 2,000 of the Series E convertible preferred stock had been converted to common stock. There were 66,666,666 shares of common stock issued upon the conversion of the Series E convertible preferred stock and 18,585,193 shares of common stock issued as make-whole payments on such conversions. As of July 31, 2014, 850 of the Series F convertible preferred stock had been converted to common stock. There were 28,333,331 shares of common stock issued upon the conversion of the Series F convertible preferred stock and 7,861,623 shares of common stock issued as make-whole payments on such conversions. Accounting for proceeds from the Series E convertible preferred stock financing The net proceeds from the initial Series E convertible preferred stock financing in June 2013 were $1,165,000. The proceeds from the financing were allocated first to the warrants that were issued in the financing, second to the additional investment rights associated with the financing and third to the make whole payments. As the assigned fair values were greater than the net cash proceeds from the transaction, the excess was treated as a deemed dividend for accounting purposes and was reported on the Companys consolidated statement of operations for the year ended July 31, 2013 under the caption Preferred Stock Dividend. The calculation methodologies for the fair values of the derivative warrant liability and the derivative additional investment rights liability are described in Note 10 Derivative Liabilities Accounting allocation of initial proceeds Net proceeds $ 1,165,000 Derivative warrant liability fair value (1,189,744) Derivative additional investment rights fair value (1,264,683) Make whole payments liability (330,750) Deemed dividend $ (1,620,177) The initial make-whole payments of $330,750 on the Series E convertible preferred stock were accrued as of the date of the financing and the remaining balance of $6,750 (after conversions) is included in Accounts Payable and Accrued Expenses (see Note 6) at July 31, 2014. The initial net cash proceeds from the Series E convertible preferred stock financing in January 2014 were $750,000. The proceeds from the financing were allocated first to the warrants that were issued in the financing and then to the make whole payments and subsequent issuance costs. As the assigned fair values were greater than the net cash proceeds from the transaction, the excess was treated as a deemed dividend for accounting purposes and was reported on the Companys consolidated statement of operations for the quarter ended January 31, 2014 under the caption Preferred Stock Dividend. The calculation methodologies for the fair values of the derivative warrant liability and the derivative additional investment rights liability are described in Note 10 Derivative Liabilities Accounting allocation of initial proceeds Net proceeds $ 750,000 Derivative warrant liability fair value (942,279) Other issuance costs (Finders fee) (64,000) Make whole payments liability (216,000) Deemed dividend $ (472,279) The initial make-whole payments of $216,000 on the Series E convertible preferred stock were accrued as of the date of the financing, all of which have been converted as of July 31, 2014. Accounting for proceeds from the Series F convertible preferred stock financing The initial net cash proceeds from the Series F convertible preferred stock financing in March 2014 were $2,020,000. The proceeds from the financing were allocated first to the warrants that were issued in the financing, second to the additional investment rights associated with the financing and then to the make whole payments and subsequent issuance costs. As the assigned fair values were greater than the net cash proceeds from the transaction, the excess was treated as a deemed dividend for accounting purposes and was reported on the Companys consolidated statement of operations for the fiscal year ended July 31, 2014 under the caption Preferred Stock Dividend. The calculation methodologies for the fair values of the derivative warrant liability and the derivative additional investment rights liability are described in Note 10 Derivative Liabilities Accounting allocation of initial proceeds Net proceeds $ 2,020,000 Derivative warrant liability fair value (2,016,064) Derivative additional investment rights fair value (863,735) Other issuance costs (Finders fee) (166,000) Make whole payments liability (560,250) Deemed dividend $ (1,586,050) The initial make-whole payments of $560,250 on the Series F convertible preferred stock were accrued as of the date of the financing and the remaining balance of $330,750 (after conversions) is included in Accounts Payable and Accrued Expenses (see Note 6) at July 31, 2014. |
Derivative Liabilities
Derivative Liabilities | 9 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Jul. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Liabilities: | Note 10 - Derivative Liabilities: Derivative warrant liability The Company has warrants outstanding with price protection provisions that allow for the reduction in the exercise price of the warrants in the event the Company subsequently issues stock or securities convertible into stock at a price lower than the exercise price of the warrants. Simultaneously with any reduction to the exercise price, the number of shares of common stock that may be purchased upon exercise of each of these warrants shall be increased or decreased proportionately, so that after such adjustment the aggregate exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise price in effect immediately prior to such adjustment. Accounting for Derivative Warrant Liability The Companys derivative warrant instruments have been measured at fair value at July 31, 2014 and 2013 using the binomial lattice model. The Company recognizes all of its warrants with price protection in its consolidated balance sheets as a liability. The liability is revalued at each reporting period and changes in fair value are recognized currently in the consolidated statements of operations. The initial recognition and subsequent changes in fair value of the derivative warrant liability have no effect on the Companys consolidated cash flows. The derivative warrants outstanding at July 31, 2014 are all currently exercisable with a weighted-average remaining life of 3.3 years. The revaluation of the warrants at each reporting period, as well as the charges associated with issuing additional warrants due to the price protection features, resulted in the recognition of a gain of $3,362,497 within the Companys consolidated statements of operations for the fiscal year ended July 31, 2014 and a loss of $3,148,782 for the fiscal year ended July 31, 2013, which is included in the consolidated statements of operations under the caption Change in fair value of derivative liabilities. The fair value of the warrants at July 31, 2014 and 2013 was $2,635,643 and $5,234,293, respectively, which is reported on the consolidated balance sheets under the caption Derivative Warrant Liability. The following summarizes the changes in the value of the derivative warrant liability from August 1, 2012 until July 31, 2014: Value No. of Warrants Balance at August 1, 2012 Derivative warrant liability $ 4,081,627 55,148,530 Additional warrants issued in August 2012 financing 624,797 9,375,000 Additional warrants issued in December 2012 financing 762,355 24,999,999 Additional warrants issued in June 2013 financing 1,189,744 40,833,335 Additional warrants from price protection features of existing warrants 7,484,550 236,219,094 Exercise of warrants (5,629,130 ) (145,888,421 ) Decrease in fair value of derivative warrant liability (3,279,650 ) n/a Balance at July 31, 2013 Derivative warrant liability $ 5,234,293 220,687,537 Exercise of warrants (2,194,496 ) (76,732,020 ) Additional warrants issued in January 2014 financing 942,279 26,666,668 Additional warrants issued in March 2014 financing 2,016,064 69,166,667 Decrease in fair value of derivative warrant liability (3,362,497 ) n/a Balance at July 31, 2014 Derivative warrant liability $ 2,635,643 239,788,852 Fair Value Assumptions Used in Accounting for Derivative Warrant Liability The Company has determined its derivative warrant liability to be a Level 2 fair value measurement and has used the binominal lattice pricing model to calculate the fair value as of July 31, 2014 and 2013. The binomial lattice model requires six basic data inputs: the exercise or strike price, time to expiration, the risk free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Because the warrants contain the price protection feature, the probability that the exercise price of the warrants would decrease as the stock price decreased was incorporated into the valuation calculations. The key inputs used in the July 31, 2014 and 2013 fair value calculations were as follows: July 31, 2014 July 31, 2013 Current exercise price $ 0.03 $ 0.03 Time to expiration 3.3 years 3.5 years Risk-free interest rate 1.02 % 0.49 % Estimated volatility 80 % 85 % Dividend -0- -0- Stock price at period end date $ 0.021 $ 0.035 Fair Value Assumptions Used in Accounting for Derivative Additional Investment Rights Liability The Company has determined the derivative additional investment rights liability to be a Level 2 fair value measurement and has used the binominal lattice pricing model to measure the fair value. The fair value of the derivative liability associated with the additional investment rights was determined to be $719,088 and $1,256,160 at July 31, 2014 and 2013, respectively. The key inputs used in the fair value calculation at July 31, 2014 were as follows: July 31, 2014 July 31, 2013 Underlying number of units of convertible preferred stock 2,075 1,225 Underlying number of warrants 69,166,667 40,833,335 Current exercise price of warrants $ 0.03 $ 0.03 Current conversion price of preferred stock $ 0.03 $ 0.03 Time to expiration 0.65 years 0.88 years Risk-free interest rate 0.09 % 0.11 % Estimated volatility 61 % 114 % Dividend -0- -0- Stock price $ 0.021 $ 0.035 The revaluation of the additional investment rights in the fiscal year ended July 31, 2014 and 2013, resulted in the recognition of a gain of $1,163,242 and $8,523, respectively within the Companys consolidated statements of operations, which is included in the totals under the caption Change in fair value of derivative liabilities. | |
Notes to Financial Statements | ||
Derivative Liabilities | Note 8 Derivative Liabilities: Derivative warrant liability The Company has warrants outstanding with price protection provisions that allow for the reduction in the exercise price of the warrants in the event the Company subsequently issues stock or securities convertible into stock at a price lower than the exercise price of the warrants. Simultaneously with any reduction to the exercise price, the number of shares of common stock that may be purchased upon exercise of each of these warrants shall be increased or decreased proportionately, so that after such adjustment the aggregate exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise price in effect immediately prior to such adjustment. Accounting for Derivative Warrant Liability The Companys derivative instruments have been measured at fair value at April 30, 2015 and July 31, 2014 using the binomial lattice model. The Company recognizes all of its warrants with price protection in its consolidated balance sheets as a liability. The liability is revalued at each reporting period and changes in fair value are recognized currently in the consolidated statements of comprehensive income. The initial recognition and subsequent changes in fair value of the derivative warrant liability have no effect on the Companys consolidated cash flows. The derivative warrants outstanding at April 30, 2015 are all currently exercisable with a weighted-average remaining life of 2.56 years. The revaluation of the warrants at the end of the respective reporting periods resulted in the recognition of a loss of $53,597 within the Companys consolidated statements of operations for the nine months ended April 30, 2015 and a loss of $298,370 within the Companys consolidated statements of comprehensive income for the nine months ended April 30, 2014, which are included in the consolidated statement of operations under the caption Change in fair value of derivative liabilities. The fair values of the warrants at April 30, 2015 and July 31, 2014 were $2,689,240 and $2,635,643, respectively, which are reported on the consolidated balance sheets under the caption Derivative Warrant Liability. The following summarizes the changes in the value of the derivative warrant liability from August 1, 2013 until April 30, 2015: Value No. of Warrants Balance at August 1, 2013 Derivative warrant liability $ 5,234,293 220,687,537 Exercise of warrants (2,194,496 ) (76,732,020 ) Additional warrants issued in January 2014 financing 942,279 26,666,668 Additional warrants issued in March 2014 financing 2,016,064 69,166,667 Decrease in fair value of derivative warrant liability (3,362,497 ) n/a Balance at July 31, 2014 Derivative warrant liability $ 2,635,643 239,788,852 Increase in fair value of derivative warrant liability 53,597 n/a Balance at April 30, 2015 Derivative warrant liability $ 2,689,240 239,788,852 Fair Value Assumptions Used in Accounting for Derivative Warrant Liability The Company has determined its derivative warrant liability to be a Level 2 fair value measurement and has used the binominal lattice pricing model to calculate the fair value as of April 30, 2015 and July 31, 2014. The binomial lattice model requires six basic data inputs: the exercise or strike price, time to expiration, the risk free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Because the warrants contain the price protection feature, the probability that the exercise price of the warrants would decrease as the stock price decreased was incorporated into the valuation calculations. The key inputs used in the April 30, 2015 and July 31, 2014 fair value calculations were as follows: April 30, 2015 July 31, 2014 Current exercise price $ 0.03 $ 0.03 Time to expiration 2.6 years 3.3 years Risk-free interest rate 0.91 % 1.02 % Estimated volatility 79 % 80 % Dividend -0- -0- Stock price at period end date $ 0.0225 $ 0.0210 Fair Value Assumptions Used in Accounting for Derivative Additional Investment Rights Liability The Company has determined the derivative additional investment rights liability to be a Level 2 fair value measurement and has used the binominal lattice pricing model to measure the fair value. The additional investment rights expired in March 2015 and the value at April 30, 2015 is zero. The fair value of the derivative liability associated with the additional investment rights was determined to be $719,088 at July 31, 2014. -11- The key inputs used in the fair value calculation at July 31, 2014 were as follows: July 31, 2014 Underlying number of units of convertible preferred stock 2,075 Underlying number of units of warrants 69,166,667 Current exercise price of warrants $ 0.03 Current conversion price of preferred stock $ 0.03 Time to expiration 0.65 years Risk-free interest rate 0.09 % Estimated volatility 61 % Dividend -0- Stock price at period end date $ 0.021 The partial exercise of the additional investment rights in the quarter ended April 30, 2014, resulted in a transfer from the derivative liability to additional paid in capital of $237,566, which was the estimated fair value of the additional investment rights exercised as of the date of exercise on January 15, 2014. The revaluation of the additional investment rights in the nine-month period ended April 30, 2015, resulted in the recognition of a gain of $719,088 and in the nine-month period ended April 30, 2014, the revaluation resulted in the recognition of a gain of $1,062,448. The gains are recorded within the Companys consolidated statements of comprehensive income under the caption Change in fair value of derivative liabilities. | Derivative Warrant Liability The Companys derivative warrant instruments are measured at fair value using the binomial valuation model which takes into account, as of the valuation date, factors including the current exercise price, the expected life of the warrant, the current price of the underlying stock and its expected volatility, expected dividends on the stock and the risk-free interest rate for the term of the warrant. The liability is revalued at each reporting period and changes in fair value are recognized in the consolidated statements of operations under the caption Change in fair value of derivative warrant liability. See Note 10 Derivative Liabilities |
Stockholders_ (Deficiency)_Equi
Stockholders’ (Deficiency)/Equity | 9 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Jul. 31, 2014 | |
Equity [Abstract] | ||
Stockholders’ (Deficiency)/Equity: | Note 7 Stockholders Deficiency: Common Stock During the nine months ended April 30, 2015, the Company issued or committed to issue 3,470,513 shares of common stock to various consultants for services rendered in the amount of $94,312. During the nine months ended April 30, 2015, the Company issued 12,891,668 shares of common stock in conjunction with the conversion of 387 shares of the Series F 9% Convertible Preferred Stock and 5,187,021 -7- During the nine months ended April 30, 2015, the Company received proceeds of $6,416 from exercises of options at $0.001 per share. The Company issued 6,416,316 shares of common stock as a result of these exercises. The stockholders deficiency transactions for the nine months ended April 30, 2015, including the transactions described above are summarized below: Common Stock Shares Amount Additional Paid-In Capital Stockholders' Deficiency Balance at August 1, 2014 778,512,092 $ 778,512 $ 362,307,678 $ (6,090,058 ) Issuance of common stock on conversion of convertible preferred stock 12,891,668 12,892 (12,892 ) Issuance of common stock as make-whole payments on convertible preferred stock 5,187,021 5,187 99,235 104,423 Issuance of common stock for services 3,470,513 3,471 90,841 94,311 Exercise of stock options 6,416,316 6,416 6,416 Balance at April 30, 2015 806,477,610 $ 806,477 $ 362,484,862 Other changes to Stockholders' Deficiency Net loss for six months ended April 30, 2015 1,858,450 Currency translation adjustment 21,862 Stockholders' Deficiency at April 30, 2015 $ (7,721,676 ) Warrants There are 239,788,852 warrants outstanding as of April 30, 2015. During the nine months ended April 30, 2015, 17,542,402 warrants, which had an average exercise price of $0.84 per warrant, expired. There were no warrants issued, or exercised for the nine months ended April 30, 2015. The outstanding warrants at April 30, 2015 have a weighted average exercise price of $0.03 per share and have a weighted average remaining life of 2.56 years. As of April 30, 2015, the Company has 239,788,852 warrants with a current exercise price of $0.03 which have price protection provisions that allow for the reduction in the current exercise price upon the occurrence of certain events, including the Companys issuance of common stock or securities convertible into or exercisable for common stock, such as options and warrants, at a price per share less than the exercise price then in effect. For instance, if the Company issues shares of its common stock or options exercisable for or securities convertible into common stock at an effective price per share of common stock less than the exercise price then in effect, the exercise price will be reduced to the effective price of the new issuance. Simultaneously with any reduction to the exercise price, the number of shares of common stock that may be purchased upon exercise of each of these warrants shall be increased proportionately, so that after such adjustment the aggregate exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise price in effect immediately prior to such adjustment. There are a limited number of permitted types of stock and equity instrument issuances for each series of warrants which will not invoke the price protection provisions of these warrants. The Company accounts for the warrants with price protection provisions in accordance with FASB ASC Topic 815 as described in Note 8 - Derivative Liabilities Series A, B, C and D 9% Convertible Preferred Stock All of the Companys Series A, B, C and D 9% Convertible Preferred Stock was converted prior to the beginning of the Companys 2014 fiscal year. Series E and F 9% Convertible Preferred Stock The Company has authorized 2,450 shares of Series E 9% Convertible Preferred Stock with a stated value of one thousand ($1,000) per share. Pursuant to a securities purchase agreement dated June 17, 2013, the Company sold an aggregate of 1,225 shares of Series E convertible preferred stock, as well as accompanying warrants to purchase 40,833,335 shares of common stocks. An aggregate of 40,833,335 shares of the Companys common stock are issuable upon conversion of the Series E convertible preferred stock which was issued at the initial closing on June 17, 2013. Pursuant to a securities purchase agreement dated January 14, 2014, the Company sold an aggregate of 800 shares of Series E convertible preferred stock, as well as accompanying warrants to purchase 26,666,668 shares of common stocks. An aggregate of 26,666,668 shares of the Companys common stock are issuable upon conversion of the Series E convertible preferred stock which was issued at the closing on January 15, 2014. The Company has authorized 4,150 shares of Series F 9% Convertible Preferred Stock with a stated value of one thousand ($1,000) per share. Pursuant to a securities purchase agreement dated March 27, 2014, the Company sold an aggregate of 2,075 shares of Series F convertible preferred stock, as well as accompanying warrants to purchase 69,166,667 shares of common stock. An aggregate of 69,166,667 shares of the Companys common stock are issuable upon conversion of the Series F convertible preferred stock which was issued at the closing on March 27, 2014. Subject to certain ownership limitations, the convertible preferred stock is convertible at the option of the holder at any time into shares of the Companys common stock at an effective conversion price of $0.03 per share, and will accrue a 9% dividend until the third year anniversary of the issuances. On each one year anniversary thereafter, such dividend rate will increase by an additional 3%. The dividend is payable quarterly on September 30, December 31, March 31 and June 30, beginning on June 30, 2013 and June 30, 2014, respectively, and on each conversion date in cash, or at the Companys option, in shares of common stock. In the event that the Series E and F convertible preferred stock is converted prior to June 17, 2016 and March 27, 2017, respectively, the Company will pay the holder of the converted preferred stock an amount equal to $270 per $1,000 of stated value of the convertible preferred stock, less the amount of all prior quarterly dividends paid on such converted preferred stock before the relevant conversion date. Such make-whole payment may be made in cash or, at the Companys option, in shares of its common stock. In addition, beginning on the third anniversary date of the issuances, the Company will pay dividends on shares of preferred stock equal to (on an as-if-converted-to-common-stock basis) and in the same form as dividends (other than dividends in the form of common stock) actually paid on shares of the common stock when, and if such dividends are paid. The Company will incur a late fee of 18% per annum on unpaid dividends. The conversion price of the convertible preferred stock is subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions and certain pro-rata distributions to common stockholders. The conversion price will also be adjusted if the Company sells or grants any shares of common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower than the then conversion price, except in the event of certain exempt issuances. In addition, the holders of convertible preferred stock will be entitled to receive any securities or rights to acquire securities or property granted or issued by the Company pro rata to the holders of its common stock to the same extent as if such holders had converted all of their shares of convertible preferred stock. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar reorganizations or recapitalizations, the holders of convertible preferred stock will be entitled to receive, upon conversion of their shares, any securities or other consideration received by the holders of the Companys common stock pursuant to the fundamental transaction. In conjunction with the issuance of the Series E convertible preferred stock in June 2013 and January 2014 and the issuance of the Series F convertible preferred stock in March 2014, the Company also issued 40,833,335, 26,666,668 and 69,166,667 warrants, respectively to the investors. Subject to certain ownership limitations, the warrants will be exercisable at any time after their respective dates of issuance and on or before the fifth-year anniversary thereafter at an exercise price of $0.03 per share of common stock. The exercise price of the warrants and, in some cases, the number of shares issuable upon exercise, are subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions and certain pro-rata distributions to common stockholders. The exercise price and number of shares of common stock issuable upon exercise will also be adjusted if the Company sells or grants any shares of common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower than the then exercise price, except in the event of certain exempt issuances. In addition, the warrant holders will be entitled to receive any securities or rights to acquire securities or property granted or issued by the Company pro rata to the holders of its common stock to the same extent as if such holders had exercised all of their warrants. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar reorganizations or recapitalizations, the warrant holders will be entitled to receive, upon exercise of their warrants, any securities or other consideration received by the holders of the Companys common stock pursuant to the fundamental transaction. These warrants have been classified as derivative liabilities and are described further in Note 8 Derivative Liabilities . In addition, until the first anniversary date of the June 2013 and March 2014 securities purchase agreements, each investor could, in its sole determination, elect to purchase, severally and not jointly with the other investors, in one or more purchases, in the ratio of such investor's original subscription amount to the original aggregate subscription amount of all investors, additional units consisting of convertible preferred stock and warrants at a purchase price of $1,000 per unit with an aggregate subscription amount thereof of up to $1,225,000 and $2,075,000, respectively, which units would have terms identical to the units of convertible preferred stock and warrants issued in connection with the June 2013 and March 2014 closings. These additional investment rights of the investors were classified as derivative liabilities and are described further in Note 8 Derivative Liabilities . -9- rights. The remaining June 2013 additional investment rights expired on June 17, 2014. The March 2014 additional investment rights expired on March 27, 2015 and none were exercised prior to the expiry date. As of April 30, 2015, 2,000 of the 2,025 originally issued shares of Series E convertible preferred stock had been converted to common stock. There were 66,666,666 shares of common stock issued upon the conversion of the Series E convertible preferred stock and 18,585,193 shares of common stock issued as make-whole payments on such conversions. As of April 30, 2015, 1,237 of the 2,075 originally issued shares of Series F convertible preferred stock had been converted to common stock. There were 41,224,999 shares of common stock issued upon the conversion of the Series F convertible preferred stock and 13,048,644 shares of common stock issued as make-whole payments on such conversions. Accounting for proceeds from the Series E convertible preferred stock financing The initial net cash proceeds from the Series E convertible preferred stock financing in January 2014 were $750,000. The proceeds from the financing were allocated first to the warrants that were issued in the financing and then to the make whole payments and subsequent issuance costs. As the assigned fair values were greater than the net cash proceeds from the transaction, the excess was treated as a deemed dividend for accounting purposes and was reported on the Companys consolidated statement of operations for the fiscal year ended July 31, 2014 under the caption Preferred Stock Dividend. The calculation methodologies for the fair values of the derivative warrant liability and the derivative additional investment rights liability are described in Note 8 Derivative Liabilities Accounting allocation of initial proceeds Net proceeds $ 750,000 Derivative warrant liability fair value (942,279 ) Other issuance costs (finders fee) (64,000 ) Make whole payments liability (216,000 ) Deemed dividend $ (472,279 ) The initial make-whole payments of $216,000 on the Series E convertible preferred stock were accrued as of the date of the financing and the remaining balance of $6,750 (after conversions) is included in Accounts Payable and Accrued Expenses (see Note 4) at April 30, 2015. Accounting for proceeds from the Series F convertible preferred stock financing The initial net cash proceeds from the Series F convertible preferred stock financing in March 2014 were $2,020,000. The proceeds from the financing were allocated first to the warrants that were issued in the financing, second to the additional investment rights associated with the financing and then to the make whole payments and subsequent issuance costs. As the assigned fair values were greater than the net cash proceeds from the transaction, the excess was treated as a deemed dividend for accounting purposes and was reported on the Companys consolidated statement of operations for the fiscal year ended July 31, 2014 under the caption Preferred Stock Dividend. The calculation methodologies for the fair values of the derivative warrant liability and the derivative additional investment rights liability are described in Note 8 Derivative Liabilities Accounting allocation of initial proceeds Net proceeds $ 2,020,000 Derivative warrant liability fair value (2,016,064 ) Derivative additional investment rights fair value (863,735 ) Other issuance costs (finders fee) (166,000 ) Make whole payments liability (560,250 ) Deemed dividend $ (1,586,050 ) The initial make-whole payments of $560,250 on the Series F convertible preferred stock were accrued as of the date of the financing and the remaining balance of $233,078 (after conversions) is included in Accounts Payable and Accrued Expenses (see Note 4) at April 30, 2015. | Note 11 - Stockholders (Deficiency)/Equity Warrants As of July 31, 2014, the Company has the following warrants to purchase common stock outstanding: Number of Shares to be Purchased Warrant Exercise Price per Share Warrant Expiration Date 8,470,661 $ 0.76 December 15, 2014 3,413,928 $ 0.79 February 4, 2015 300,000 $ 0.39 (average) February 9, 2015 200,000 $ 1.25 March 7, 2015 5,157,813 $ 1.00 March 15, 2015 64,516,758 $ 0.03 March 31, 2016* 27,272,720 $ 0.03 September 30, 2016* 5,675,227 $ 0.03 February 1, 2017* 4,999,999 $ 0.03 August 10, 2017* 8,324,144 $ 0.03 December 12, 2017* 34,166,669 $ 0.03 June 17, 2018* 25,666,668 $ 0.03 January 15, 2019* 69,166,667 $ 0.03 March 27, 2019* 257,331,254 * Subject to price protection provisions as described below. The outstanding warrants at July 31, 2014 have a weighted average exercise price of $0.085 per share and have a weighted average remaining life of 3.1 years. As of July 31, 2014, the Company has 239,788,852 warrants with a current exercise price of $0.03 which have price protection provisions that allow for the reduction in the current exercise price upon the occurrence of certain events, including the Companys issuance of common stock or securities convertible into or exercisable for common stock, such as options and warrants, at a price per share less than the exercise price then in effect. For instance, if the Company issues shares of its common stock or options exercisable for or securities convertible into common stock at an effective price per share of common stock less than the exercise price then in effect, the exercise price will be reduced to the effective price of the new issuance. Simultaneously with any reduction to the exercise price, the number of shares of common stock that may be purchased upon exercise of each of these warrants shall be increased proportionately, so that after such adjustment the aggregate exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise price in effect immediately prior to such adjustment. There are a limited number of permitted types of stock and equity instrument issuances for each series of warrants which will not invoke the price protection provisions of these warrants. The Company accounts for the warrants with price protection provisions in accordance with FASB ASC Topic 815 as described in Note 10 - Derivative Liabilities Preferred Stock The Company has authorized 1,000,000 shares of preferred stock with a par value of one-tenth of a cent ($.001) per share. The preferred stock may be issued in various series and shall have preference as to dividends and to liquidation of the Company. The Companys Board of Directors is authorized to establish the specific rights, preferences, voting privileges and restrictions of such preferred stock, or any series thereof. At July 31, 2014, 25 shares of the Companys non-voting Series E 9% Convertible Preferred Stock and 1,225 shares of the Companys non-voting Series F 9% Convertible Preferred Stock were issued and outstanding. At July 31, 2013, 930 shares of the Companys non-voting Series E 9% Convertible Preferred Stock were issued and outstanding. See Note 9 - Series A, B, C, D, E and F 9% Convertible Preferred Stock Equity Instruments Issued for Services Rendered During the years ended July 31, 2014, 2013 and 2012, the Company issued stock options, warrants and shares of common stock in exchange for services rendered to the Company. The fair value of each stock option and warrant was valued using the Black Scholes pricing model which takes into account as of the grant date the exercise price and expected life of the stock option or warrant, the current price of the underlying stock and its expected volatility, expected dividends on the stock and the risk free interest rate for the term of the stock option or warrant. Shares of common stock are valued at the quoted market price on the date of grant. The fair value of each grant was charged to the related expense in the consolidated statement of operations for the services received (see Note 12). |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Jul. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-Based Compensation: | Note 3 Stock-Based Compensation: As of April 30, 2015, the Company had two stockholder-approved stock incentive plans under which shares and options exercisable for shares of common stock have been or may be granted to employees, directors, consultants and advisors. A total of 12,000,000 shares of common stock are reserved for issuance under the 2001 Stock Option Plan (the 2001 Plan) and 135,000,000 shares of common stock are reserved for issuance under the 2006 Stock Plan as amended (the 2006 Plan). At April 30, 2015, there were 2,338,916 and 81,530,576 shares of common stock reserved for future awards under the 2001 Plan and 2006 Plan, respectively. The Company issues new shares of common stock from the shares reserved under the respective Plans upon conversion or exercise of options and issuance of restricted shares. The 2001 and 2006 Plans (the Plans) are administered by the Board of Directors (the Board). The Board is authorized to select from among eligible employees, directors, advisors and consultants those individuals to whom options are to be granted and to determine the number of shares to be subject to, and the terms and conditions of the options. The Board is also authorized to prescribe, amend and rescind terms relating to options granted under the Plans. Generally, the interpretation and construction of any provision of the Plans or any options granted hereunder is within the discretion of the Board. The Plans provide that options may or may not be Incentive Stock Options (ISOs) within the meaning of Section 422 of the Internal Revenue Code. Only employees of the Company are eligible to receive ISOs, while employees and non-employee directors, advisors and consultants are eligible to receive options which are not ISOs, i.e. Non-Qualified Options. The options granted by the Board in connection with its adoption of the Plans were Non-Qualified Options. In addition, the 2006 Plan also provides for restricted stock grants. The fair value of each option granted is estimated on the grant date using the Black-Scholes option pricing model or the value of the services provided, whichever is more readily determinable. The Black-Scholes option pricing model takes into account, as of the grant date, the exercise price and expected life of the option, the current price of the underlying stock and its expected volatility, expected dividends on the stock and the risk-free interest rate for the term of the option. The Black-Scholes option pricing model was not used to estimate the fair value any option grants in the three quarters ended April 30, 2015 or in the fiscal year ended July 31, 2014. The following is a summary of the common stock options granted, forfeited or expired and exercised under the Plans for the nine months ended April 30, 2015: Options Weighted Average Exercise Price per Share Aggregate Intrinsic Value Outstanding, August 1, 2014 37,964,390 $ 0.061 Less: Forfeited or expired 1,215,000 0.716 Less: Exercised 6,416,316 0.001 129,908 Outstanding, April 30, 2015 30,333,074 $ 0.048 $ 567,236 Exercisable, April 30, 2015 30,333,074 $ 0.048 $ 567,236 The 30,333,074 outstanding options at April 30, 2015 had a weighted average remaining contractual term of 2.8 years. Options typically vest over a period of two to four years and have a contractual life of five to ten years. There were no non-vested common stock options granted, vested or forfeited under the Plan for the nine months ended April 30, 2015. There was no unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plans at April 30, 2015. | Note 12 Stock-Based Compensation Stock Option Plans As of July 31, 2014, the Company had two stockholder-approved stock incentive plans under which shares and options exercisable for shares of common stock have been or may be granted to employees, directors, consultants and advisors. A total of 12,000,000 shares of common stock are reserved for issuance under the 2001 Stock Option Plan (the 2001 Plan) and 135,000,000 shares of common stock are reserved for issuance under the 2006 Stock Plan as amended (the 2006 Plan). At July 31, 2014, there were 1,353,916 and 81,300,576 shares of common stock reserved for future awards under the 2001 Plan and 2006 Plan, respectively. The Company issues new shares of common stock from the shares reserved under the respective Plans upon conversion or exercise of options and issuance of restricted shares. The 2001 and 2006 Plans (the Plans) are administered by the Board of Directors (the Board). The Board is authorized to select from among eligible employees, directors, advisors and consultants those individuals to whom options are to be granted and to determine the number of shares to be subject to, and the terms and conditions of the options. The Board is also authorized to prescribe, amend and rescind terms relating to options granted under the Plans. Generally, the interpretation and construction of any provision of the Plans or any options granted hereunder is within the discretion of the Board. The Plans provide that options may or may not be Incentive Stock Options (ISOs) within the meaning of Section 422 of the Internal Revenue Code. Only employees of the Company are eligible to receive ISOs, while employees and non-employee directors, advisors and consultants are eligible to receive options which are not ISOs, i.e. Non-Qualified Options. The options granted by the Board in connection with its adoption of the Plans were Non-Qualified Options. In addition, the 2006 Plan also provides for restricted stock grants. Share-based employee compensation related to stock options for the years ended July 31, 2014, 2013 and 2012 amounted to $262,871, $837,753 and $602,384 for each year and were charged to the consolidated statements of operations. Share-based employee compensation related to common stock grants for the years ended July 31, 2014, 2013 and 2012 amounted to $130,000, $0 and $130,544, respectively, and were charged to the consolidated statements of operations. The fair value of each option granted is estimated on the grant date using the Black-Scholes option pricing model or the value of the services provided, whichever is more readily determinable. The Black-Scholes option pricing model takes into account, as of the grant date, the exercise price and expected life of the option, the current price of the underlying stock and its expected volatility, expected dividends on the stock and the risk-free interest rate for the term of the option. The Black-Scholes option pricing model was not used to estimate the fair value any option grants in the fiscal years ended July 31, 2014, 2013 and 2012. The following is a summary of the common stock options granted, forfeited or expired and exercised under the Plan: Options Weighted Average Exercise Price per Share Outstanding - August 1, 2011 7,340,182 $ 0.46 Granted 5,851,696 $ 0.001 Forfeited or expired (912,250) $ 0.65 Exercised (1,299,994) $ 0.001 Outstanding - July 31, 2012 10,979,634 $ 0.26 Granted 24,532,719 $ 0.001 Forfeited or expired (630,778) $ 0.75 Exercised (5,180,378) $ 0.001 Outstanding - July 31, 2013 29,701,197 $ 0.08 Granted 8,879,499 $ 0.001 Forfeited or expired (90,000) $ 0.53 Exercised (526,306) $ 0.001 Outstanding - July 31, 2013 37,964,390 $ 0.06 Exercisable - July 31, 2014 37,964,390 $ 0.06 The 37,964,390 outstanding options at July 31, 2014 had a weighted average remaining contractual term of 3.45 years. Options typically vest over a period of two to four years and have a contractual life of five to ten years. The following is a summary of the non-vested common stock options granted, vested and forfeited under the Plan: Options Weighted Average Grant Date Fair Value Outstanding - August 1, 2011 60,000 $ 0.46 Granted 8,879,499 $ 0.029 Vested (8,939,499) $ 0.031 Outstanding - July 31, 2014 -0- n/a As of July 31, 2014, the Company did not have any unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan. During the twelve months ended July 31, 2014, the Company granted 8,879,499 options to executives, employees and directors in full and final payment of obligations to pay such individuals deferred salary or director fees. The options were issued in lieu of cash payment of deferred compensation amounts due to such individuals. The number of options granted to each individual was equal to the dollar amount of deferred salary or fees due to such individual divided by the closing price of the Company's common stock on October 31, 2013 ($0.03). The stock options had an exercise price equal to $0.001 per share and were made pursuant to the terms of the Company's 2006 Stock Plan. The options were fully vested at the dates of the grants and expire on the fifth anniversary of the respective dates of grant. The grants were valued at the amount of deferred compensation owed to each such individual. During the twelve months ended July 31, 2013, the Company granted 24,532,719 options to executives, employees and directors in full and final payment of obligations to pay such individuals deferred salary or director fees. The options were issued in lieu of cash payment of deferred compensation amounts due to such individuals. The number of options granted to each individual was equal to the dollar amount of deferred salary or fees due to such individual divided by the closing price of the Company's common stock on February 5, 2013 ($0.038), March 5, 2013 ($0.034) and June 4, 2013 ($0.0325). The stock options had an exercise price equal to $0.001 per share and were made pursuant to the terms of the Company's 2006 Stock Plan. The options were fully vested at the dates of the grants and expire on the fifth anniversary of the respective dates of grant. The grants were valued at the amount of deferred compensation owed to each such individual. During the twelve months ended July 31, 2012, the Company granted 5,851,696 options to executives, employees and directors in full and final payment of obligations to pay such individuals deferred salary or director fees. The options were issued in lieu of cash payment of deferred compensation amounts due to such individuals. The number of options granted to each individual was equal to the dollar amount of deferred salary or fees due to such individual divided by the closing price of the Company's common stock on June 6, 2012 ($0.0925). The stock options had an exercise price equal to $0.001 per share and were made pursuant to the terms of the Company's 2006 Stock Plan. The options were fully vested at the date of grant and expire on the fifth anniversary of the date of grant. The grants were valued at the amount of deferred compensation owed to each such individual. The following table summarizes information on stock options outstanding at July 31, 2014: Options Outstanding and Options Exercisable Range of Exercise Price Number Outstanding at July 31, 2014 Weighted Average Exercise Price Weighted Average Remaining Life (Years) Aggregate Intrinsic Value $ 0.001 32,799,390 $ 0.001 3.68 $ 0.19 - $ 0.38 3,100,000 $ 0.285 1.63 $ 0.39 - $ 0.58 200,000 $ 0.560 0.24 $ 0.59 - $ 0.77 1,470,000 $ 0.633 3.34 $ 0.78 - $ 0.96 395,000 $ 0.940 0.24 37,964,390 $ 0.061 3.45 $ 655,988 For the Year Ended July 31, 2014 2013 2012 Weighted Average Grant Date Fair Value of Options Granted $ 0.029 $ 0.003 $ 0.09 Aggregate Intrinsic Value of Options Exercised $ 21,052 $ 178,040 $ 119,214 Cash Received for Exercise of Stock Options $ 526 $ 5,180 $ 1,299 The intrinsic value is calculated as the difference between the market value as of July 31, 2014, 2013 and 2012 and the exercise price of the shares on the respective dates. The market values as of July 31, 2014, 2013 and 2012 were $0.021, $0.035 and $0.093, respectively, based on the high and low bid information for July 31, 2014, 2013 and 2012. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Jul. 31, 2014 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Note 13 - Net Loss per Share Basic loss per share (EPS) and Diluted EPS for the years ended July 31, 2014, 2013 and 2012 have been computed by dividing the net loss available to common stockholders for each respective period by the weighted average shares outstanding during that period. All outstanding options, warrants, non-vested restricted stock and shares to be issued upon conversion of the outstanding convertible preferred stock, representing approximately 336,962,311, 298,931,138 and 94,643,712 incremental shares, have been excluded from the respective 2014, 2013 and 2012 computation of diluted EPS as they are anti-dilutive due to the losses generated during the respective years. |
Segment Information
Segment Information | 12 Months Ended |
Jul. 31, 2014 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 14 - Segment Information The Company follows FASB ASC Topic 815 which establishes standards for the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. This Topic also establishes standards for related disclosures about products and services, geographic areas, and major customers. This Topic uses a management approach for determining segments. The management approach designates the internal organization that is used by management for making operating decisions and assessing performance as the source of the Companys reportable segments. The Companys management reporting structure provides for only one segment: the research, development and commercialization of drug delivery systems and technologies for metabolic and immunological diseases. The countries in which the Company had identifiable assets are presented in the following table. Identifiable assets are those that can be directly associated with a geographic area. 2014 2013 Identifiable Assets Canada $ 3,719,760 $ 2,825,894 United States 1,802,697 2,026,969 Total $ 5,522,457 $ 4,852,863 |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
Jul. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information (Unaudited) | Note 15 Quarterly Information (Unaudited) The following schedule sets forth certain unaudited financial data for the preceding eight quarters ending July 31, 2014. In our opinion, the unaudited information set forth below has been prepared on the same basis as the audited information and includes all adjustments necessary to present fairly the information set forth herein. The operating results for the quarter are not indicative of results for any future period. Q1 Q2 Q3 Q4 Fiscal Year July 31, 2014: Revenues, net $ -0- $ -0- $ -0- $ -0- Operating Loss $ (1,443,051 ) $ (1,010,861 ) $ (1,242,849 ) $ (702,918 ) Net Income/(Loss) $ 530,094 $ (3,186,290 ) $ 270,923 $ 2,383,856 Net Loss available to common stockholders $ 530,094 $ (3,594,569 ) $ (1,149,127 ) $ 2,153,856 Net Loss per share $ 0.001 $ (0.010 ) $ (0.002 ) $ 0.003 Fiscal Year July 31, 2013 Revenues, net $ -0- $ -0- $ -0- $ -0- Operating Loss $ (1,940,031 ) $ (1,290,780 ) $ (1,433,640 ) $ (1,464,908 ) Net Income/(Loss) $ (656,199 ) $ (5,640,985 ) $ 1,297,448 $ (3,554,586 ) Net Loss available to common stockholders $ (758,496 ) $ (5,640,985 ) $ 1,297,448 $ (5,174,763 ) Net Loss per share $ 0.002 $ (0.015 ) $ 0.003 $ (0.007 ) |
Subsequent Events
Subsequent Events | 9 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Jul. 31, 2014 | |
Subsequent Events [Abstract] | ||
Subsequent Events | Note 10 Subsequent Events: The Company has evaluated subsequent events occurring after the balance sheet date through the date the interim statements were issued and determined that there are no events requiring financial statement disclosure. | Note 16 - Subsequent Events The Company has evaluated subsequent events occurring after the balance sheet date through the date the consolidated financial statements were issued. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Apr. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1 Basis of Presentation: The accompanying unaudited interim consolidated financial statements (interim statements) have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and disclosures required by generally accepted accounting principles for complete financial statements are not included herein. The interim statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Companys latest Annual Report on Form 10-K. The results for the three and nine-month periods ended April 30, 2015 may not be indicative of the results for the entire year. Interim statements are subject to possible adjustments in connection with the annual audit of the Companys accounts for fiscal year 2015. In the Companys opinion, all adjustments necessary for a fair presentation of these interim statements have been included and are of a normal and recurring nature. The Company has a limited history of operations and limited revenue to date. The Company has several product candidates that are in various research or early stages of pre-clinical and clinical development. There can be no assurance that the Company will be successful in obtaining regulatory clearance for the sale of existing or any future products or that any of the Companys products will be commercially viable. Going Concern The accompanying interim statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has experienced negative cash flows from operations since inception and has an accumulated deficit of approximately $372 million and a working capital deficiency of approximately $6.9 million at April 30, 2015. The Company has funded its activities to date almost exclusively from debt and equity financings, as well as the sale of non-essential real estate assets in fiscal 2012 through the first quarter of fiscal 2014 (see Note 9). The Company will continue to require substantial funds to continue research and development, including pre-clinical studies and clinical trials of its product candidates, and to commence sales and marketing efforts, if the U.S. Food and Drug Administration or other regulatory approvals are obtained. Managements plans in order to meet its operating cash flow requirements include financing activities such as private placements of its common stock, preferred stock offerings, issuances of debt and convertible debt instruments. Management is also actively pursuing financial and strategic alternatives, including strategic investments and divestitures, industry collaboration activities and strategic partners. Management has sold its non-essential real estate assets which were classified as Assets Held for Investment to augment its cash position. These factors raise substantial doubt regarding the Companys ability to continue as a going concern. There are no assurances that such additional funding will be achieved and that the Company will succeed in its future operations. The interim statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might be necessary should the Company be unable to continue in existence. The Companys inability to obtain required funding in the near future or its inability to obtain funding on favorable terms will have a material adverse effect on its operations and strategic development plan for future growth. If the Company cannot successfully raise additional capital and implement its strategic development plan, its liquidity, financial condition and business prospects will be materially and adversely affected, and the Company may have to cease operations. |
Effects of Recent Accounting Pr
Effects of Recent Accounting Pronouncements | 9 Months Ended |
Apr. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Effects of Recent Accounting Pronouncements | Note 2 Effects of Recent Accounting Pronouncements: Recently Adopted Accounting Pronouncements In June 2014, the FASB issued guidance regarding the elimination of the reporting requirement for development stage entities and removed the definition of development stage entity from the Accounting Standards Codification. The Company has adopted this guidance effective for the Companys annual fiscal year ended July 31, 2014. The adoption of this new accounting guidance resulted in the elimination of the inception-to-date financial information in the consolidated statements of comprehensive income, statements of changes in stockholders deficiency and statements of cash flows, as well as the removal of the subheading A Development Stage Company from the interim statements and the notes to the interim statements. Recently Issued Accounting Pronouncements In November 2014, the FASB issued guidance regarding Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. In August 2014, the FASB issued guidance regarding disclosure of uncertainties about an entitys ability to continue as a going concern. The guidance will be effective for the Companys fiscal year ended July 31, 2017 and subsequent interim periods. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Apr. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Pending Litigation | Note 5 Commitments and Contingencies: Pending Litigation In February 2001, a former business associate of the former Vice President of Research and Development (VP) of the Company and an entity known as Centrum Technologies Inc. (CTI) commenced an action in the Ontario Superior Court of Justice against the Company and the VP seeking, among other things, damages for alleged breaches of contract and tortious acts related to a business relationship between this former associate and the VP that ceased in July 1996. The plaintiffs statement of claim also seeks to enjoin the use, if any, by the Company of three patents allegedly owned by CTI. The three patents are entitled Liquid Formulations for Proteinic Pharmaceuticals Vaccine Delivery System for Immunization, Using Biodegradable Polymer Microspheres Controlled Releases of Drugs or Hormones in Biodegradable Polymer Microspheres On May 20, 2011, Ms. Perri filed a statement of claim (subsequently amended) in the Ontario Superior Court of Justice, naming as defendants the Company and certain directors of the Company, Mr. Barratt, Ms. Masterson, Mr. McGee, and Mr. Fletcher. In this action, Ms. Perri has alleged that defendants engaged in discrimination, harassment, bad faith and infliction of mental distress in connection with the termination of her employment with the Company. Ms. Perri is seeking damages in this action in excess of $7,000,000 for, among other things, breach of contract, breach of fiduciary duty, violations of the Ontario Human Rights Code and aggravated and punitive damages. On September 20, 2011, the defendants filed a statement of defense and counterclaim, also naming Time Release Corp., Khazak Group Consulting Corp., and David Khazak, C.A. as defendants by counterclaim, and seeking damages of approximately $2.3 million in funds that the defendants allege Ms. Perri wrongly caused the Company to pay to third parties in varying amounts over several years and an accounting of certain third-party payments, plus interests and costs. The factual basis for the counterclaim involves payments made by the Company to third parties believed to be related to Ms. Perri. The Company intends to defend this action and pursue its counterclaim vigorously and is not able to predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential loss, if any, from this legal proceeding. On June 1, 2011, Golden Bull Estates Ltd. filed a claim (subsequently amended) in the Ontario Superior Court of Justice, naming the Company, 1097346 Ontario, Inc. and Generex Pharmaceuticals, Inc. as defendants. The plaintiff, Golden Bull Estates, is controlled by Ms. Perri. The plaintiff alleges damages in the amount of $550,000 for breach of contract, $50,000 for punitive damages, plus interest and costs. The plaintiffs claims relate to an alleged contract between the plaintiff and the Company for property management services for certain Ontario properties owned by the Company. The Company terminated the plaintiffs property management services in April 2011. Following the close of pleadings, the Company served a motion for summary judgment. The plaintiff responded by amending its statement of claim to include a claim to the Companys interest in certain of its real estate holdings. The plaintiff moved for leave to issue and register a Certificate of Pending Litigation in respect of this real estate. The motion was not successful in respect of any current real estate holdings of the Company. The Company is not able to predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential loss, if any, from this legal proceeding. In December 2011, a vendor of the Company commenced an action against the Company and its subsidiary, Generex Pharmaceuticals, Inc., in the Ontario Superior Court of Justice claiming damages for unpaid invoices including interest in the amount of $429,000, in addition to costs and further interest. The Company responded to this statement of claim and also asserted a counterclaim in the proceeding for $200,000 arising from the vendors breach of contract and detinue, together with interest and costs. On November 16, 2012, the parties agreed to settle this action and the Company has agreed to pay the plaintiff $125,000, following the spinout of its subsidiary Antigen, from the proceeds of any public or private financing related to Antigen subsequent to such spinout. Each party agreed to execute mutual releases to the claim and counterclaim to be held in trust by each partys counsel until payment of the settlement amount. Following payment to the plaintiff, the parties agree that a Consent Dismissal Order without costs will be filed with the court. If the Company fails to make the payment following completion of any post-spinout financing related to Antigen or any other subsidiaries, the Plaintiffs may take out a judgment in the amount of the claim plus interest of 3% per annum and costs fixed at $25,000. The Company is involved in certain other legal proceedings in addition to those specifically described herein. Subject to the uncertainty inherent in all litigation, the Company does not believe at the present time that the resolution of any of these legal proceedings is likely to have a material adverse effect on the Companys consolidated financial position, operations or cash flows. With respect to all litigation, as additional information concerning the estimates used by the Company becomes known, the Company reassesses its position both with respect to accrued liabilities and other potential exposures. |
Net Income (Loss) Per Share (EP
Net Income (Loss) Per Share (EPS) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Jul. 31, 2014 | |
Accounting Policies [Abstract] | ||
Net Income (Loss) Per Share (EPS) | Note 6 Net Income (Loss) Per Share (EPS): Basic EPS and Diluted EPS for the three and nine-month periods ended April 30, 2015 have been computed by dividing the net loss available to common stockholders for the period by the weighted average shares outstanding during each period. All outstanding stock options, non-vested restricted stock, warrants and common stock underlying convertible preferred stock, representing 306,666,176 incremental shares at April 30, 2015, have been excluded from the respective computations of Diluted EPS as they are anti-dilutive, due to the losses generated during these periods. Basic EPS and Diluted EPS for the three-month period ended April 30, 2014 have been computed by dividing the net loss available to common stockholders for the period by the weighted average shares outstanding during that period. All outstanding stock options, non-vested restricted stock, warrants and common stock underlying convertible preferred stock, representing 357,628,977 incremental shares at April 30, 2014, have been excluded from the respective computations of Diluted EPS as they are anti-dilutive, due to the losses generated during those periods. | Net Loss per Common Share Basic earnings per share is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the period. The computation of diluted earnings per share does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings. Refer to Note 13 for methodology for determining net loss per share. |
Stockholders_ Deficiency
Stockholders’ Deficiency | 9 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Jul. 31, 2014 | |
Equity [Abstract] | ||
Stockholders’ Deficiency | Note 7 Stockholders Deficiency: Common Stock During the nine months ended April 30, 2015, the Company issued or committed to issue 3,470,513 shares of common stock to various consultants for services rendered in the amount of $94,312. During the nine months ended April 30, 2015, the Company issued 12,891,668 shares of common stock in conjunction with the conversion of 387 shares of the Series F 9% Convertible Preferred Stock and 5,187,021 -7- During the nine months ended April 30, 2015, the Company received proceeds of $6,416 from exercises of options at $0.001 per share. The Company issued 6,416,316 shares of common stock as a result of these exercises. The stockholders deficiency transactions for the nine months ended April 30, 2015, including the transactions described above are summarized below: Common Stock Shares Amount Additional Paid-In Capital Stockholders' Deficiency Balance at August 1, 2014 778,512,092 $ 778,512 $ 362,307,678 $ (6,090,058 ) Issuance of common stock on conversion of convertible preferred stock 12,891,668 12,892 (12,892 ) Issuance of common stock as make-whole payments on convertible preferred stock 5,187,021 5,187 99,235 104,423 Issuance of common stock for services 3,470,513 3,471 90,841 94,311 Exercise of stock options 6,416,316 6,416 6,416 Balance at April 30, 2015 806,477,610 $ 806,477 $ 362,484,862 Other changes to Stockholders' Deficiency Net loss for six months ended April 30, 2015 1,858,450 Currency translation adjustment 21,862 Stockholders' Deficiency at April 30, 2015 $ (7,721,676 ) Warrants There are 239,788,852 warrants outstanding as of April 30, 2015. During the nine months ended April 30, 2015, 17,542,402 warrants, which had an average exercise price of $0.84 per warrant, expired. There were no warrants issued, or exercised for the nine months ended April 30, 2015. The outstanding warrants at April 30, 2015 have a weighted average exercise price of $0.03 per share and have a weighted average remaining life of 2.56 years. As of April 30, 2015, the Company has 239,788,852 warrants with a current exercise price of $0.03 which have price protection provisions that allow for the reduction in the current exercise price upon the occurrence of certain events, including the Companys issuance of common stock or securities convertible into or exercisable for common stock, such as options and warrants, at a price per share less than the exercise price then in effect. For instance, if the Company issues shares of its common stock or options exercisable for or securities convertible into common stock at an effective price per share of common stock less than the exercise price then in effect, the exercise price will be reduced to the effective price of the new issuance. Simultaneously with any reduction to the exercise price, the number of shares of common stock that may be purchased upon exercise of each of these warrants shall be increased proportionately, so that after such adjustment the aggregate exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise price in effect immediately prior to such adjustment. There are a limited number of permitted types of stock and equity instrument issuances for each series of warrants which will not invoke the price protection provisions of these warrants. The Company accounts for the warrants with price protection provisions in accordance with FASB ASC Topic 815 as described in Note 8 - Derivative Liabilities Series A, B, C and D 9% Convertible Preferred Stock All of the Companys Series A, B, C and D 9% Convertible Preferred Stock was converted prior to the beginning of the Companys 2014 fiscal year. Series E and F 9% Convertible Preferred Stock The Company has authorized 2,450 shares of Series E 9% Convertible Preferred Stock with a stated value of one thousand ($1,000) per share. Pursuant to a securities purchase agreement dated June 17, 2013, the Company sold an aggregate of 1,225 shares of Series E convertible preferred stock, as well as accompanying warrants to purchase 40,833,335 shares of common stocks. An aggregate of 40,833,335 shares of the Companys common stock are issuable upon conversion of the Series E convertible preferred stock which was issued at the initial closing on June 17, 2013. Pursuant to a securities purchase agreement dated January 14, 2014, the Company sold an aggregate of 800 shares of Series E convertible preferred stock, as well as accompanying warrants to purchase 26,666,668 shares of common stocks. An aggregate of 26,666,668 shares of the Companys common stock are issuable upon conversion of the Series E convertible preferred stock which was issued at the closing on January 15, 2014. The Company has authorized 4,150 shares of Series F 9% Convertible Preferred Stock with a stated value of one thousand ($1,000) per share. Pursuant to a securities purchase agreement dated March 27, 2014, the Company sold an aggregate of 2,075 shares of Series F convertible preferred stock, as well as accompanying warrants to purchase 69,166,667 shares of common stock. An aggregate of 69,166,667 shares of the Companys common stock are issuable upon conversion of the Series F convertible preferred stock which was issued at the closing on March 27, 2014. Subject to certain ownership limitations, the convertible preferred stock is convertible at the option of the holder at any time into shares of the Companys common stock at an effective conversion price of $0.03 per share, and will accrue a 9% dividend until the third year anniversary of the issuances. On each one year anniversary thereafter, such dividend rate will increase by an additional 3%. The dividend is payable quarterly on September 30, December 31, March 31 and June 30, beginning on June 30, 2013 and June 30, 2014, respectively, and on each conversion date in cash, or at the Companys option, in shares of common stock. In the event that the Series E and F convertible preferred stock is converted prior to June 17, 2016 and March 27, 2017, respectively, the Company will pay the holder of the converted preferred stock an amount equal to $270 per $1,000 of stated value of the convertible preferred stock, less the amount of all prior quarterly dividends paid on such converted preferred stock before the relevant conversion date. Such make-whole payment may be made in cash or, at the Companys option, in shares of its common stock. In addition, beginning on the third anniversary date of the issuances, the Company will pay dividends on shares of preferred stock equal to (on an as-if-converted-to-common-stock basis) and in the same form as dividends (other than dividends in the form of common stock) actually paid on shares of the common stock when, and if such dividends are paid. The Company will incur a late fee of 18% per annum on unpaid dividends. The conversion price of the convertible preferred stock is subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions and certain pro-rata distributions to common stockholders. The conversion price will also be adjusted if the Company sells or grants any shares of common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower than the then conversion price, except in the event of certain exempt issuances. In addition, the holders of convertible preferred stock will be entitled to receive any securities or rights to acquire securities or property granted or issued by the Company pro rata to the holders of its common stock to the same extent as if such holders had converted all of their shares of convertible preferred stock. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar reorganizations or recapitalizations, the holders of convertible preferred stock will be entitled to receive, upon conversion of their shares, any securities or other consideration received by the holders of the Companys common stock pursuant to the fundamental transaction. In conjunction with the issuance of the Series E convertible preferred stock in June 2013 and January 2014 and the issuance of the Series F convertible preferred stock in March 2014, the Company also issued 40,833,335, 26,666,668 and 69,166,667 warrants, respectively to the investors. Subject to certain ownership limitations, the warrants will be exercisable at any time after their respective dates of issuance and on or before the fifth-year anniversary thereafter at an exercise price of $0.03 per share of common stock. The exercise price of the warrants and, in some cases, the number of shares issuable upon exercise, are subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions and certain pro-rata distributions to common stockholders. The exercise price and number of shares of common stock issuable upon exercise will also be adjusted if the Company sells or grants any shares of common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower than the then exercise price, except in the event of certain exempt issuances. In addition, the warrant holders will be entitled to receive any securities or rights to acquire securities or property granted or issued by the Company pro rata to the holders of its common stock to the same extent as if such holders had exercised all of their warrants. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar reorganizations or recapitalizations, the warrant holders will be entitled to receive, upon exercise of their warrants, any securities or other consideration received by the holders of the Companys common stock pursuant to the fundamental transaction. These warrants have been classified as derivative liabilities and are described further in Note 8 Derivative Liabilities . In addition, until the first anniversary date of the June 2013 and March 2014 securities purchase agreements, each investor could, in its sole determination, elect to purchase, severally and not jointly with the other investors, in one or more purchases, in the ratio of such investor's original subscription amount to the original aggregate subscription amount of all investors, additional units consisting of convertible preferred stock and warrants at a purchase price of $1,000 per unit with an aggregate subscription amount thereof of up to $1,225,000 and $2,075,000, respectively, which units would have terms identical to the units of convertible preferred stock and warrants issued in connection with the June 2013 and March 2014 closings. These additional investment rights of the investors were classified as derivative liabilities and are described further in Note 8 Derivative Liabilities . -9- rights. The remaining June 2013 additional investment rights expired on June 17, 2014. The March 2014 additional investment rights expired on March 27, 2015 and none were exercised prior to the expiry date. As of April 30, 2015, 2,000 of the 2,025 originally issued shares of Series E convertible preferred stock had been converted to common stock. There were 66,666,666 shares of common stock issued upon the conversion of the Series E convertible preferred stock and 18,585,193 shares of common stock issued as make-whole payments on such conversions. As of April 30, 2015, 1,237 of the 2,075 originally issued shares of Series F convertible preferred stock had been converted to common stock. There were 41,224,999 shares of common stock issued upon the conversion of the Series F convertible preferred stock and 13,048,644 shares of common stock issued as make-whole payments on such conversions. Accounting for proceeds from the Series E convertible preferred stock financing The initial net cash proceeds from the Series E convertible preferred stock financing in January 2014 were $750,000. The proceeds from the financing were allocated first to the warrants that were issued in the financing and then to the make whole payments and subsequent issuance costs. As the assigned fair values were greater than the net cash proceeds from the transaction, the excess was treated as a deemed dividend for accounting purposes and was reported on the Companys consolidated statement of operations for the fiscal year ended July 31, 2014 under the caption Preferred Stock Dividend. The calculation methodologies for the fair values of the derivative warrant liability and the derivative additional investment rights liability are described in Note 8 Derivative Liabilities Accounting allocation of initial proceeds Net proceeds $ 750,000 Derivative warrant liability fair value (942,279 ) Other issuance costs (finders fee) (64,000 ) Make whole payments liability (216,000 ) Deemed dividend $ (472,279 ) The initial make-whole payments of $216,000 on the Series E convertible preferred stock were accrued as of the date of the financing and the remaining balance of $6,750 (after conversions) is included in Accounts Payable and Accrued Expenses (see Note 4) at April 30, 2015. Accounting for proceeds from the Series F convertible preferred stock financing The initial net cash proceeds from the Series F convertible preferred stock financing in March 2014 were $2,020,000. The proceeds from the financing were allocated first to the warrants that were issued in the financing, second to the additional investment rights associated with the financing and then to the make whole payments and subsequent issuance costs. As the assigned fair values were greater than the net cash proceeds from the transaction, the excess was treated as a deemed dividend for accounting purposes and was reported on the Companys consolidated statement of operations for the fiscal year ended July 31, 2014 under the caption Preferred Stock Dividend. The calculation methodologies for the fair values of the derivative warrant liability and the derivative additional investment rights liability are described in Note 8 Derivative Liabilities Accounting allocation of initial proceeds Net proceeds $ 2,020,000 Derivative warrant liability fair value (2,016,064 ) Derivative additional investment rights fair value (863,735 ) Other issuance costs (finders fee) (166,000 ) Make whole payments liability (560,250 ) Deemed dividend $ (1,586,050 ) The initial make-whole payments of $560,250 on the Series F convertible preferred stock were accrued as of the date of the financing and the remaining balance of $233,078 (after conversions) is included in Accounts Payable and Accrued Expenses (see Note 4) at April 30, 2015. | Note 11 - Stockholders (Deficiency)/Equity Warrants As of July 31, 2014, the Company has the following warrants to purchase common stock outstanding: Number of Shares to be Purchased Warrant Exercise Price per Share Warrant Expiration Date 8,470,661 $ 0.76 December 15, 2014 3,413,928 $ 0.79 February 4, 2015 300,000 $ 0.39 (average) February 9, 2015 200,000 $ 1.25 March 7, 2015 5,157,813 $ 1.00 March 15, 2015 64,516,758 $ 0.03 March 31, 2016* 27,272,720 $ 0.03 September 30, 2016* 5,675,227 $ 0.03 February 1, 2017* 4,999,999 $ 0.03 August 10, 2017* 8,324,144 $ 0.03 December 12, 2017* 34,166,669 $ 0.03 June 17, 2018* 25,666,668 $ 0.03 January 15, 2019* 69,166,667 $ 0.03 March 27, 2019* 257,331,254 * Subject to price protection provisions as described below. The outstanding warrants at July 31, 2014 have a weighted average exercise price of $0.085 per share and have a weighted average remaining life of 3.1 years. As of July 31, 2014, the Company has 239,788,852 warrants with a current exercise price of $0.03 which have price protection provisions that allow for the reduction in the current exercise price upon the occurrence of certain events, including the Companys issuance of common stock or securities convertible into or exercisable for common stock, such as options and warrants, at a price per share less than the exercise price then in effect. For instance, if the Company issues shares of its common stock or options exercisable for or securities convertible into common stock at an effective price per share of common stock less than the exercise price then in effect, the exercise price will be reduced to the effective price of the new issuance. Simultaneously with any reduction to the exercise price, the number of shares of common stock that may be purchased upon exercise of each of these warrants shall be increased proportionately, so that after such adjustment the aggregate exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise price in effect immediately prior to such adjustment. There are a limited number of permitted types of stock and equity instrument issuances for each series of warrants which will not invoke the price protection provisions of these warrants. The Company accounts for the warrants with price protection provisions in accordance with FASB ASC Topic 815 as described in Note 10 - Derivative Liabilities Preferred Stock The Company has authorized 1,000,000 shares of preferred stock with a par value of one-tenth of a cent ($.001) per share. The preferred stock may be issued in various series and shall have preference as to dividends and to liquidation of the Company. The Companys Board of Directors is authorized to establish the specific rights, preferences, voting privileges and restrictions of such preferred stock, or any series thereof. At July 31, 2014, 25 shares of the Companys non-voting Series E 9% Convertible Preferred Stock and 1,225 shares of the Companys non-voting Series F 9% Convertible Preferred Stock were issued and outstanding. At July 31, 2013, 930 shares of the Companys non-voting Series E 9% Convertible Preferred Stock were issued and outstanding. See Note 9 - Series A, B, C, D, E and F 9% Convertible Preferred Stock Equity Instruments Issued for Services Rendered During the years ended July 31, 2014, 2013 and 2012, the Company issued stock options, warrants and shares of common stock in exchange for services rendered to the Company. The fair value of each stock option and warrant was valued using the Black Scholes pricing model which takes into account as of the grant date the exercise price and expected life of the stock option or warrant, the current price of the underlying stock and its expected volatility, expected dividends on the stock and the risk free interest rate for the term of the stock option or warrant. Shares of common stock are valued at the quoted market price on the date of grant. The fair value of each grant was charged to the related expense in the consolidated statement of operations for the services received (see Note 12). |
Income from Assets Held for Inv
Income from Assets Held for Investment, net | 9 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Jul. 31, 2014 | |
Notes to Financial Statements | ||
Income from Assets Held for Investment, net | Note 9 Income from Assets Held for Investment, net: In August 2013, the Company sold a property which was held for investment for gross proceeds after real estate commissions of $883,780. This property had a net book value of $694,911, resulting in an accounting gain of $188,869 which is included in income from assets held for investment, net on the interim consolidated statement of operations. The property was secured by a mortgage which was discharged upon the sale. After the discharge of the mortgage ($606,806), as well as legal fees, interest, penalties and other costs ($73,628 in aggregate), the sale resulted in net cash proceeds to the Company of $203,346. | Note 3 - Long-lived Assets Proper and Equipment The costs and accumulated depreciation of property and equipment are summarized as follows: July 31, 2014 2013 Buildings and Improvements $ -0- $ 117,898 Furniture and Fixtures 13,078 23,452 Office Equipment -0- 38,690 Lab Equipment -0- 327,899 Total Property and Equipment 13,078 507,939 Less: Accumulated Depreciated 7,785 422,533 Property and Equipment, Net $ 5,293 $ 85,406 Depreciation expense related to property and equipment amounted to $10,482, $41,890 and $97,967 for the years ended July 31, 2014, 2013 and 2012, respectively. Assets Held for Investment, Net The costs and accumulated depreciation of assets held for investment are summarized as follows: July 31, 2014 2013 Assets Held For Investment $ -0- $ 960,726 Less: Accumulated Depreciation -0- 289,954 Assets Held for Investment, Net $ -0- $ 640,772 These assets were held as collateral for long term debt (see Note 8). Depreciation expense on assets held for investment amounted to $0, $30,764 and $74,070 for the years ended July 31, 2014, 2013 and 2012, respectively. The Company held these properties for investment purposes and collected rental income as described directly below. Income from Assets Held for Investment, net In August 2013, the Company sold a property which was held for investment for gross proceeds after real estate commissions of $883,780. This property had a net book value of $694,911, resulting in an accounting gain of $188,869 which is included in income from assets held for investment, net on the consolidated statement of operations. The property was secured by a mortgage which was discharged upon the sale, as described in the last paragraph of this note below. After the discharge of the mortgage ($606,806), as well as legal fees, interest, penalties and other costs ($73,628 in aggregate) the sale resulted in net cash proceeds to the Company of $203,346. In March 2013, the Company sold a property which was held for investment for gross proceeds after real estate commissions of $256,835. This property had a net book value of $169,566, resulting in an accounting gain of $87,682 which is included in income from assets held for investment, net on the consolidated statement of operations. The property was secured by a mortgage which was partially discharged upon the sale, as described in the last paragraph of this note below. After the partial discharge of the mortgage ($216,810), as well as legal fees, interest, penalties and other costs (approximately $13,000 in aggregate), the sale resulted in net cash proceeds to the Company of $27,025. In September 2012, the Company sold its head office real estate in Toronto for gross proceeds after real estate commissions of $1,579,189. This property had a net book value of $585,064, resulting in an accounting gain of $994,125 which is included in income from assets held for investment, net on the consolidated statement of operations. The net proceeds after commissions and other expenses were used to discharge or partially discharge the first and second mortgages on the property. The first mortgage on the property, with remaining principal of $480,951, was discharged completely upon sale. The remaining net proceeds of $1,028,780 after expenses and the discharge of the first mortgages was used to partially discharge the second mortgage and the Company did not receive any of the net proceeds from this property sale. In July 2012, the Company sold a property for gross proceeds after real estate commissions of $342,862. This property had a net book value of $107,203, resulting in an accounting gain of $235,659 which is included in income from assets held for investment, net, on the consolidated statement of operations. The net proceeds after commissions and other expenses were used to partially discharge the first and second mortgages on the property and the Company did not receive any of the net proceeds from this property sale. In March and April, 2012, the Company sold nine commercial condominium units which were held for investment for gross proceeds after real estate commissions of $2,865,682. These properties had a net book value of $1,783,932, resulting in an accounting gain of $1,081,750 which is included in income from assets held for investment, net on the consolidated statement of operations. The net proceeds after commissions and other expenses were used to discharge or partially discharge the first and second mortgages on the properties. There were two first mortgages on the properties, with combined remaining principals of $571,680, which were discharged completely upon sale. The remaining net proceeds of $2,190,952 after expenses and the discharge of the first mortgages was used to partially discharge the second mortgage and the Company did not receive any of the net proceeds from these property sales. In August 2011, the Company sold two properties which were held for investment for gross proceeds after real estate commissions of $1,669,115. These two properties had a net book value of $1,029,435, resulting in an accounting gain of $639,680 which is included in income from assets held for investment, net on the consolidated statement of operations. The two properties had mortgages of $659,288 which were discharged upon sale, resulting in net cash proceeds to the Company of $1,009,827. The total accounting gains in this category from property sales in the fiscal years ended July 31, 2014, 2013 and 2012 were $188,869, $1,081,807 and $1,957,089, respectively. The remaining income of $4,738, $163,358 and $249,127 in this category in the respective fiscal years ended July 31, 2014, 2013 and 2012, pertains to rental income from properties held for investment, net of carrying and operating expenses. Gross income from rental operations was $7,847, $221,399 and $384,299 and rental expenses were $1,935, $58,041 and $135,172, including the depreciation expense amounts above relating to assets held for investment, for the years ended July 31, 2014, 2013 and 2012, respectively. Prior to the August 2013 property sale, the properties held for investment had an interest only first mortgage which closed on November 30, 2012 with a principal amount $606,806, an interest rate of 9.75% compounded semi-annually and a maturity date of November 30, 2013. Upon the sale of the property, the mortgage was discharged. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Jul. 31, 2014 | |
Accounting Policies [Abstract] | ||
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its subsidiaries in which a controlling interest is maintained. For those consolidated subsidiaries where the Company ownership is less than 100 percent, the outside stockholders interests are shown as minority interests. Effective December 17, 2004, the Companys ownership in all consolidated subsidiaries is 100 percent. All significant intercompany transactions and balances have been eliminated. | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers | |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the assets, which range from three to thirty years. Gains and losses on depreciable assets retired or sold are recognized in the statement of operations in the year of disposal. Repairs and maintenance expenditures are expensed as incurred. | |
Assets Held for Investment | Assets Held for Investment Property held for investment is recorded at cost less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the assets of thirty years. Gains and losses on depreciable assets retired or sold are recognized in the statement of operations in the year of disposal. Repairs and maintenance expenditures are expensed as incurred. | |
Patents | Patents Capitalized patent costs represent legal costs incurred to establish patents and a portion of the acquisition price paid attributed to patents upon the acquisition of Antigen in August 2003. When patents reach a mature stage, any associated legal costs are comprised mostly of maintenance fees and costs of national applications and are expensed as incurred. Capitalized patent costs are amortized on a straight line basis over the remaining life of the patent. As patents are abandoned, the net book value of the patent is written off. | |
Impairment or Disposal of Long-Lived Assets and Intangibles | Impairment or Disposal of Long-Lived Assets and Intangibles The Company assesses the impairment of long-lived assets under FASB ASC Topic 360 whenever events or changes in circumstances indicate that the carrying value may not be recoverable. For long-lived assets to be held and used, the Company recognizes an impairment loss only if its carrying amount is not recoverable and exceeds its fair value. The carrying amount of the long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposal of the asset. In the fiscal years ended July 31, 2014, 2013 and 2012, the Company sold, wrote off or disposed of certain long-lived assets with net book values of $706,590, $745,172 and $2,945,079, respectively. | |
Derivative Warrant Liability | Note 8 Derivative Liabilities: Derivative warrant liability The Company has warrants outstanding with price protection provisions that allow for the reduction in the exercise price of the warrants in the event the Company subsequently issues stock or securities convertible into stock at a price lower than the exercise price of the warrants. Simultaneously with any reduction to the exercise price, the number of shares of common stock that may be purchased upon exercise of each of these warrants shall be increased or decreased proportionately, so that after such adjustment the aggregate exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise price in effect immediately prior to such adjustment. Accounting for Derivative Warrant Liability The Companys derivative instruments have been measured at fair value at April 30, 2015 and July 31, 2014 using the binomial lattice model. The Company recognizes all of its warrants with price protection in its consolidated balance sheets as a liability. The liability is revalued at each reporting period and changes in fair value are recognized currently in the consolidated statements of comprehensive income. The initial recognition and subsequent changes in fair value of the derivative warrant liability have no effect on the Companys consolidated cash flows. The derivative warrants outstanding at April 30, 2015 are all currently exercisable with a weighted-average remaining life of 2.56 years. The revaluation of the warrants at the end of the respective reporting periods resulted in the recognition of a loss of $53,597 within the Companys consolidated statements of operations for the nine months ended April 30, 2015 and a loss of $298,370 within the Companys consolidated statements of comprehensive income for the nine months ended April 30, 2014, which are included in the consolidated statement of operations under the caption Change in fair value of derivative liabilities. The fair values of the warrants at April 30, 2015 and July 31, 2014 were $2,689,240 and $2,635,643, respectively, which are reported on the consolidated balance sheets under the caption Derivative Warrant Liability. The following summarizes the changes in the value of the derivative warrant liability from August 1, 2013 until April 30, 2015: Value No. of Warrants Balance at August 1, 2013 Derivative warrant liability $ 5,234,293 220,687,537 Exercise of warrants (2,194,496 ) (76,732,020 ) Additional warrants issued in January 2014 financing 942,279 26,666,668 Additional warrants issued in March 2014 financing 2,016,064 69,166,667 Decrease in fair value of derivative warrant liability (3,362,497 ) n/a Balance at July 31, 2014 Derivative warrant liability $ 2,635,643 239,788,852 Increase in fair value of derivative warrant liability 53,597 n/a Balance at April 30, 2015 Derivative warrant liability $ 2,689,240 239,788,852 Fair Value Assumptions Used in Accounting for Derivative Warrant Liability The Company has determined its derivative warrant liability to be a Level 2 fair value measurement and has used the binominal lattice pricing model to calculate the fair value as of April 30, 2015 and July 31, 2014. The binomial lattice model requires six basic data inputs: the exercise or strike price, time to expiration, the risk free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Because the warrants contain the price protection feature, the probability that the exercise price of the warrants would decrease as the stock price decreased was incorporated into the valuation calculations. The key inputs used in the April 30, 2015 and July 31, 2014 fair value calculations were as follows: April 30, 2015 July 31, 2014 Current exercise price $ 0.03 $ 0.03 Time to expiration 2.6 years 3.3 years Risk-free interest rate 0.91 % 1.02 % Estimated volatility 79 % 80 % Dividend -0- -0- Stock price at period end date $ 0.0225 $ 0.0210 Fair Value Assumptions Used in Accounting for Derivative Additional Investment Rights Liability The Company has determined the derivative additional investment rights liability to be a Level 2 fair value measurement and has used the binominal lattice pricing model to measure the fair value. The additional investment rights expired in March 2015 and the value at April 30, 2015 is zero. The fair value of the derivative liability associated with the additional investment rights was determined to be $719,088 at July 31, 2014. -11- The key inputs used in the fair value calculation at July 31, 2014 were as follows: July 31, 2014 Underlying number of units of convertible preferred stock 2,075 Underlying number of units of warrants 69,166,667 Current exercise price of warrants $ 0.03 Current conversion price of preferred stock $ 0.03 Time to expiration 0.65 years Risk-free interest rate 0.09 % Estimated volatility 61 % Dividend -0- Stock price at period end date $ 0.021 The partial exercise of the additional investment rights in the quarter ended April 30, 2014, resulted in a transfer from the derivative liability to additional paid in capital of $237,566, which was the estimated fair value of the additional investment rights exercised as of the date of exercise on January 15, 2014. The revaluation of the additional investment rights in the nine-month period ended April 30, 2015, resulted in the recognition of a gain of $719,088 and in the nine-month period ended April 30, 2014, the revaluation resulted in the recognition of a gain of $1,062,448. The gains are recorded within the Companys consolidated statements of comprehensive income under the caption Change in fair value of derivative liabilities. | Derivative Warrant Liability The Companys derivative warrant instruments are measured at fair value using the binomial valuation model which takes into account, as of the valuation date, factors including the current exercise price, the expected life of the warrant, the current price of the underlying stock and its expected volatility, expected dividends on the stock and the risk-free interest rate for the term of the warrant. The liability is revalued at each reporting period and changes in fair value are recognized in the consolidated statements of operations under the caption Change in fair value of derivative warrant liability. See Note 10 Derivative Liabilities |
Revenue Recognition and Deferred Revenue | Revenue Recognition and Deferred Revenue Revenues from the sale of commercial products are recognized at the time title of goods passes to the buyer and the buyer assumes the risks and rewards of ownership. Certain product sales are made to retailers under agreements allowing for a right to return unsold products. In accordance with FASB ASC Topic 605, recognition of revenue on all sales to these retailers is deferred until the right of return expires, the product is sold to a third party or a provision for returns can be reasonably estimated based on historical experience. The cost of inventory under these sales is considered to be consigned inventory until the revenue is recognized. Sales are reported net of estimated returns and allowances, discounts, mail-in rebate redemptions and credit card chargebacks. If actual sales returns, allowances, discounts, mail-in rebate redemptions or credit card chargebacks are greater than estimated by management, additional expense may be incurred. At July 31, 2014, we have $223,662 of deferred revenue for which a provision for returns cannot be reasonably estimated and thus the balance is included in Deferred Revenue on our consolidated balance sheets. The corresponding cost of sales has been previously written off and is not included in inventory as of July 31, 2014 as the timing of the recognition of the revenue cannot be reasonably estimated. Grant revenue is recognized as the Company provides the services stipulated in the underlying grant based on the time and expenditures incurred. Amounts received in advance of services provided are recorded as deferred revenue and amortized as revenue when the services are provided. There was no grant revenue in fiscal 2014, 2013 or 2012. Included in miscellaneous income are fees received under licensing agreements. Nonrefundable fees received under licensing agreements are recognized as revenue when received if the Company has no continuing obligations to the other party. Rental income is recognized as revenue in the period in which the related rental space is occupied. | |
Research and Development Costs | Research and Development Costs Expenditures for research and development are expensed as incurred and include, among other costs, those related to the production of experimental drugs, including payroll costs, and amounts incurred for conducting clinical trials. Amounts expected to be received from governments under research and development tax credit arrangements are offset against current research and development expense. | |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method prescribed by FASB ASC Topic 740. These standards require a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more likely than not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. Deferred income taxes are recorded for temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities reflect the tax rates expected to be in effect for the years in which the differences are expected to reverse. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax asset will not be realized. At The Company adopted the FASB guidance concerning accounting for uncertainty in income taxes, which clarifies the accounting and disclosure for uncertainty in tax positions, as of August 1, 2007. The guidance requires that the Company determine whether it is more likely than not that a tax position will not be sustained upon examination by the appropriate taxing authority. If a tax position does not meet the more likely than not recognition criterion, the guidance requires that the tax position be measured at the largest amount of benefit greater than 50 percent not likely of being sustained upon ultimate settlement. Based on the Companys evaluation, management has concluded that there are no significant uncertain tax positions requiring recognition in the consolidated financial statements. | |
Stock-Based Compensation | Stock-Based Compensation The Company follows FASB ASC Topic 718 which requires that new, modified and unvested share-based payment transactions with employees, such as grants of stock options and restricted stock, be recognized in the financial statements based on their fair value at the grant date and recognized as compensation expense over their vesting periods. The Company estimates the fair value of stock options as of the date of grant using the Black-Scholes option pricing model and restricted stock based on the quoted market price or the value of the services provided, whichever is more readily determinable. The Company also follows the guidance in FASB ASC Topic 505 for equity based payments to non-employees for equity instruments issued to consultants and other non-employees. | |
Net Loss per Common Share | Note 6 Net Income (Loss) Per Share (EPS): Basic EPS and Diluted EPS for the three and nine-month periods ended April 30, 2015 have been computed by dividing the net loss available to common stockholders for the period by the weighted average shares outstanding during each period. All outstanding stock options, non-vested restricted stock, warrants and common stock underlying convertible preferred stock, representing 306,666,176 incremental shares at April 30, 2015, have been excluded from the respective computations of Diluted EPS as they are anti-dilutive, due to the losses generated during these periods. Basic EPS and Diluted EPS for the three-month period ended April 30, 2014 have been computed by dividing the net loss available to common stockholders for the period by the weighted average shares outstanding during that period. All outstanding stock options, non-vested restricted stock, warrants and common stock underlying convertible preferred stock, representing 357,628,977 incremental shares at April 30, 2014, have been excluded from the respective computations of Diluted EPS as they are anti-dilutive, due to the losses generated during those periods. | Net Loss per Common Share Basic earnings per share is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the period. The computation of diluted earnings per share does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings. Refer to Note 13 for methodology for determining net loss per share. |
Comprehensive Income/(Loss) | Comprehensive Income/(Loss) Other comprehensive income/(loss), which includes only foreign currency translation adjustments, is shown in the Statement of Changes in Stockholders Equity. | |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains cash balances, at times, with financial institutions in excess of amounts insured by the Canada Deposit Insurance Corporation and the U.S. Federal Deposit Insurance Corporation. Management monitors the soundness of these institutions and has not experienced any collection losses with these financial institutions. | |
Foreign Currency Translation | Foreign Currency Translation Foreign denominated assets and liabilities of the Company are translated into U.S. dollars at the prevailing exchange rates in effect at the end of the reporting period. Income statement accounts are translated at a weighted average of exchange rates which were in effect during the period. Translation adjustments that arise from translating the foreign subsidiarys financial statements from local currency to U.S. currency are recorded in the other comprehensive loss component of stockholders equity. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined under FASB ASC Topic 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for an asset or liability in an orderly transaction between participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on the levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The levels are 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 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 value of the assets or liabilities The Companys financial instruments consist of cash and cash equivalents, other current assets, long-term debt, accounts payable and accrued expenses, as well as derivative warrant liabilities and derivative additional investment rights. All of these items, except for the derivative warrant liabilities and derivative additional investment rights, were determined to be Level 1 fair value measurements. The carrying amounts of cash and cash equivalents, other current assets and accounts payable and accrued expenses approximate their respective fair values because of the short maturities of these instruments. Long-term debt balances were determined to approximate their fair value as we believe the borrowing rates reflect the prevailing market rates available for similar debt instruments. The Company has determined its derivative warrant liability and its derivative additional investment rights liability to be Level 2 fair value measurements and has used the binomial lattice model valuation method to calculate the fair value of the derivative warrant liability and the derivative additional investment rights liability at July 31, 2014, 2013 and 2012. See Note 10 Derivative Liabilities | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company evaluates its estimates, including those related to bad debts, long lived assets (including patents) impairment valuations, debt obligations, derivatives, convertible preferred shares, long-term contracts, and contingencies and litigation, on an ongoing basis. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Critical accounting estimates are reviewed and discussed with the audit committee of the board of directors. The Company considers an accounting estimate to be critical if it requires assumptions to be made that were uncertain at the time the estimate was made, if changes in the estimate or if different estimates that could have been selected would have a material impact on our results of operations or financial condition. | |
Effects of Recent Accounting Pronouncements | Effects of Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2014, the FASB issued guidance regarding the elimination of the reporting requirement for development stage entities and removed the definition of development stage entity from the Accounting Standards Codification. The Company has adopted this guidance effective for the Companys annual fiscal year ended July 31, 2014. The adoption of this new accounting guidance resulted in the elimination of the inception-to-date financial information in the consolidated statements of operations, statements of changes in stockholders deficiency and statements of cash flows, as well as the removal of the subheading A Development Stage Company from the consolidated financial statements and the notes to the consolidated financial statements. Recently Issued Accounting Pronouncements In August 2014, the FASB issued guidance regarding disclosure of uncertainties about an entitys ability to continue as a going concern. The guidance will be effective for the Companys annual fiscal year ended July 31, 2017 and subsequent interim periods. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Jul. 31, 2014 | |
Accounting Policies [Abstract] | ||
Going Concern | Going Concern The accompanying interim statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has experienced negative cash flows from operations since inception and has an accumulated deficit of approximately $372 million and a working capital deficiency of approximately $6.9 million at April 30, 2015. The Company has funded its activities to date almost exclusively from debt and equity financings, as well as the sale of non-essential real estate assets in fiscal 2012 through the first quarter of fiscal 2014 (see Note 9). The Company will continue to require substantial funds to continue research and development, including pre-clinical studies and clinical trials of its product candidates, and to commence sales and marketing efforts, if the U.S. Food and Drug Administration or other regulatory approvals are obtained. Managements plans in order to meet its operating cash flow requirements include financing activities such as private placements of its common stock, preferred stock offerings, issuances of debt and convertible debt instruments. Management is also actively pursuing financial and strategic alternatives, including strategic investments and divestitures, industry collaboration activities and strategic partners. Management has sold its non-essential real estate assets which were classified as Assets Held for Investment to augment its cash position. These factors raise substantial doubt regarding the Companys ability to continue as a going concern. There are no assurances that such additional funding will be achieved and that the Company will succeed in its future operations. The interim statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might be necessary should the Company be unable to continue in existence. The Companys inability to obtain required funding in the near future or its inability to obtain funding on favorable terms will have a material adverse effect on its operations and strategic development plan for future growth. If the Company cannot successfully raise additional capital and implement its strategic development plan, its liquidity, financial condition and business prospects will be materially and adversely affected, and the Company may have to cease operations. | Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has experienced negative cash flows from operations since inception and has an accumulated deficit of approximately $370 million and a working capital deficiency of approximately $4.8 million at July 31, 2014. The Company has funded its activities to date almost exclusively from debt and equity financings, as well as the recent sales of non-essential real estate assets in fiscal 2012, fiscal 2013 and the first quarter of fiscal 2014 (see Note 3). The Company will continue to require substantial funds to continue research and development, including pre-clinical studies and clinical trials of its product candidates, and to commence sales and marketing efforts, if the U.S. Food and Drug Administration or other regulatory approvals are obtained. Managements plans in order to meet its operating cash flow requirements include financing activities such as private placements of its common stock, preferred stock offerings, issuances of debt and convertible debt instruments. Management will be limited in the financing activities that the Company undertakes in the near future as the securities purchase agreements that the Company entered into on January 14, 2014 and March 27, 2014 with certain investors prohibit the Company from (i) issuing additional equity securities until 60 days after the effective date of a registration statement covering the resale of the common stock issuable upon exercise of the warrants and conversion of the preferred stock sold in those transactions; and (ii) issuing additional debt or equity securities with variable conversion or exercise prices until January 14, 2015 and March 27, 2015, respectively. Management is also actively pursuing financial and strategic alternatives, including strategic investments and divestitures, industry collaboration activities and strategic partners. Management has sold its non-essential real estate assets which were classified as Assets Held for Investment to augment its cash position. These factors raise substantial doubt regarding the Companys ability to continue as a going concern. There are no assurances that such additional funding will be achieved and that it will succeed in its future operations. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might be necessary should the Company be unable to continue in existence. The Companys inability to obtain required funding in the near future or its inability to obtain funding on favorable terms will have a material adverse effect on its operations and strategic development plan for future growth. If the Company cannot successfully raise additional capital and implement its strategic development plan, its liquidity, financial condition and business prospects will be materially and adversely affected, and the Company may have to cease operations. |
Long-lived Assets (Tables)
Long-lived Assets (Tables) | 12 Months Ended |
Jul. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | July 31, 2014 2013 Buildings and Improvements $ -0- $ 117,898 Furniture and Fixtures 13,078 23,452 Office Equipment -0- 38,690 Lab Equipment -0- 327,899 Total Property and Equipment 13,078 507,939 Less: Accumulated Depreciated 7,785 422,533 Property and Equipment, Net $ 5,293 $ 85,406 |
Assets Held for Investment, Net | July 31, 2014 2013 Assets Held For Investment $ -0- $ 960,726 Less: Accumulated Depreciation -0- 289,954 Assets Held for Investment, Net $ -0- $ 640,772 |
Patents (Tables)
Patents (Tables) | 12 Months Ended |
Jul. 31, 2014 | |
Accounting Policies [Abstract] | |
Costs and accumulated amortization of patents | July 31, 2014 2013 Patents $ 5,725,908 $ 5,657,455 Less: Accumulated Amortization 3,679,547 3,338,039 Patents, Net 2,046,361 2,319,416 Weighted Average Life 7.8 years 8.6 years |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Deferred income taxes | July 31, 2014 2013 Net operating loss carryforwards $ 90,515,261 $ 87,541,552 Other temporary differences 299,010 800,989 Intangible assets 291,002 -- Total Deferred Tax Assets 91,105,273 88,342,541 Valuation Allowance (91,105,273) (88,089,860) Deferred Tax Liabilities Intangible assets -- (386,320) Other temporary differences -- 142,639 Total Deferred Tax Liabilities -- (243,681) Net Deferred Income Taxes $ -- $ -- |
Reconciliation of effective tax rate | 2014 2013 2012 Federal statutory rate (34.0) % (34.0) % (34.0) % Increase (decrease) in income taxes resulting from: Imputed interest income on intercompany receivables from foreign subsidiaries 4,037 6.0 5.0 Non-deductible or non-taxable items (111,569) 13.0 4.0 Other temporary differences (84,061) (14.0) 18.0 Change in valuation allowance 191,627 29.0 (3.0) Effective tax rate -- % -- % -- % |
Accounts Payable and Accrued 35
Accounts Payable and Accrued Expenses - Accounts payable and accrued expenses (Tables) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Jul. 31, 2014 | |
Payables and Accruals [Abstract] | ||
Accounts payable and accrued expenses | April 30, 2015 July 31, 2014 Accounts Payable and Accruals General and Administrative $ 3,127,111 $ 3,208,069 Accounts Payable and Accruals Research and Development 3,699,158 3,955,543 Accounts Payable and Accruals Selling and Marketing 326,586 327,067 Accrued Make-whole Payments on Convertible Preferred Stock (see Note 7) 233,077 337,500 Executive Compensation and Directors Fees Payable 236,547 205,943 Total $ 7,622,479 $ 8,034,122 | July 31, 2014 2013 Accounts Payable and Accruals - General and Administrative $ 3,208,069 $ 3,447,618 Accounts Payable and Accruals - Research and Development 3,955,543 3,557,184 Accounts Payable and Accruals - Selling and Marketing 327,067 328,629 Accrued Make-whole Payments on Covertible Preferred Stock (see Note 9) 337,500 251,100 Executive Compensation and Directors Fees Payable 205,943 76,703 Total $ 8,034,122 $ 7,661,234 |
Commitments and Contingent Li36
Commitments and Contingent Liabilities - (Tables) | 12 Months Ended |
Jul. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Aggregate minimum commitments under non-cancelable operating leases | Fiscal Year Amount 2015 $ 41,750 2016 39,317 2017 41,501 2018 41,938 2019 and thereafter 53,122 Total Minimum Lease Payments $ 217,628 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jul. 31, 2014 | |
Debt Disclosure [Abstract] | |
Long-term debt | July 31, 2014 2013 Mortgage payable - interest at 9.75 percent per annum, monthly interest payments of $6,771, principal due November 2013, secured by secondary rights to real property located at 11 Carlaw Avenue, Toronto, Canada $ -0- $ 617,665 Total Debt -0- 617,665 Less Current Maturities of Long-Term Debt -0- 617,665 Total Long-Term Debt -0- -0- |
Series A, B, C, D, E & F 9% C38
Series A, B, C, D, E & F 9% Convertible Preferred Stock (Tables) | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | |
Series E Convertible Preferred Stock | |||
Fair value of Accounting allocation of initial proceeds | Accounting allocation of initial proceeds Net proceeds $ 750,000 Derivative warrant liability fair value (942,279) Other issuance costs (Finders fee) (64,000) Make whole payments liability (216,000) Deemed dividend $ (472,279) | Accounting allocation of initial proceeds Net proceeds $ 1,165,000 Derivative warrant liability fair value (1,189,744) Derivative additional investment rights fair value (1,264,683) Make whole payments liability (330,750) Deemed dividend $ (1,620,177) | |
Series F Convertible Preferred Stock | |||
Fair value of Accounting allocation of initial proceeds | Accounting allocation of initial proceeds Net proceeds $ 2,020,000 Derivative warrant liability fair value (2,016,064) Derivative additional investment rights fair value (863,735) Other issuance costs (Finders fee) (166,000) Make whole payments liability (560,250) Deemed dividend $ (1,586,050) |
Derivative Liabilities (Tables)
Derivative Liabilities (Tables) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Jul. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Changes in value of derivative warrant liability | Value No. of Warrants Balance at August 1, 2012 Derivative warrant liability $ 4,081,627 55,148,530 Additional warrants issued in August 2012 financing 624,797 9,375,000 Additional warrants issued in December 2012 financing 762,355 24,999,999 Additional warrants issued in June 2013 financing 1,189,744 40,833,335 Additional warrants from price protection features of existing warrants 7,484,550 236,219,094 Exercise of warrants (5,629,130 ) (145,888,421 ) Decrease in fair value of derivative warrant liability (3,279,650 ) n/a Balance at July 31, 2013 Derivative warrant liability $ 5,234,293 220,687,537 Exercise of warrants (2,194,496 ) (76,732,020 ) Additional warrants issued in January 2014 financing 942,279 26,666,668 Additional warrants issued in March 2014 financing 2,016,064 69,166,667 Decrease in fair value of derivative warrant liability (3,362,497 ) n/a Balance at July 31, 2014 Derivative warrant liability $ 2,635,643 239,788,852 | |
Fair Value Assumptions Used in Accounting for Derivative Warrant Liability | April 30, 2015 July 31, 2014 Current exercise price $ 0.03 $ 0.03 Time to expiration 2.6 years 3.3 years Risk-free interest rate 0.91 % 1.02 % Estimated volatility 79 % 80 % Dividend -0- -0- Stock price at period end date $ 0.0225 $ 0.0210 | July 31, 2014 July 31, 2013 Current exercise price $ 0.03 $ 0.03 Time to expiration 3.3 years 3.5 years Risk-free interest rate 1.02 % 0.49 % Estimated volatility 80 % 85 % Dividend -0- -0- Stock price at period end date $ 0.021 $ 0.035 |
Fair Value Assumptions Used in Accounting for Derivative Additional Investment Rights Liability | July 31, 2014 Underlying number of units of convertible preferred stock 2,075 Underlying number of units of warrants 69,166,667 Current exercise price of warrants $ 0.03 Current conversion price of preferred stock $ 0.03 Time to expiration 0.65 years Risk-free interest rate 0.09 % Estimated volatility 61 % Dividend -0- Stock price at period end date $ 0.021 | July 31, 2014 July 31, 2013 Underlying number of units of convertible preferred stock 2,075 1,225 Underlying number of warrants 69,166,667 40,833,335 Current exercise price of warrants $ 0.03 $ 0.03 Current conversion price of preferred stock $ 0.03 $ 0.03 Time to expiration 0.65 years 0.88 years Risk-free interest rate 0.09 % 0.11 % Estimated volatility 61 % 114 % Dividend -0- -0- Stock price $ 0.021 $ 0.035 |
Derivative warrant liability | Value No. of Warrants Balance at August 1, 2013 Derivative warrant liability $ 5,234,293 220,687,537 Exercise of warrants (2,194,496 ) (76,732,020 ) Additional warrants issued in January 2014 financing 942,279 26,666,668 Additional warrants issued in March 2014 financing 2,016,064 69,166,667 Decrease in fair value of derivative warrant liability (3,362,497 ) n/a Balance at July 31, 2014 Derivative warrant liability $ 2,635,643 239,788,852 Increase in fair value of derivative warrant liability 53,597 n/a Balance at April 30, 2015 Derivative warrant liability $ 2,689,240 239,788,852 |
Stockholders_ (Deficiency)_Eq40
Stockholders’ (Deficiency)/Equity (Tables) | 12 Months Ended |
Jul. 31, 2014 | |
Equity [Abstract] | |
Warrants to purchase common stock outstanding | Number of Shares to be Purchased Warrant Exercise Price per Share Warrant Expiration Date 8,470,661 $ 0.76 December 15, 2014 3,413,928 $ 0.79 February 4, 2015 300,000 $ 0.39 (average) February 9, 2015 200,000 $ 1.25 March 7, 2015 5,157,813 $ 1.00 March 15, 2015 64,516,758 $ 0.03 March 31, 2016* 27,272,720 $ 0.03 September 30, 2016* 5,675,227 $ 0.03 February 1, 2017* 4,999,999 $ 0.03 August 10, 2017* 8,324,144 $ 0.03 December 12, 2017* 34,166,669 $ 0.03 June 17, 2018* 25,666,668 $ 0.03 January 15, 2019* 69,166,667 $ 0.03 March 27, 2019* 257,331,254 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Jul. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Common stock options granted, forfeited or expired and exercised | Options Weighted Average Exercise Price per Share Aggregate Intrinsic Value Outstanding, August 1, 2014 37,964,390 $ 0.061 Less: Forfeited or expired 1,215,000 0.716 Less: Exercised 6,416,316 0.001 129,908 Outstanding, April 30, 2015 30,333,074 $ 0.048 $ 567,236 Exercisable, April 30, 2015 30,333,074 $ 0.048 $ 567,236 | Options Weighted Average Exercise Price per Share Outstanding - August 1, 2011 7,340,182 $ 0.46 Granted 5,851,696 $ 0.001 Forfeited or expired (912,250) $ 0.65 Exercised (1,299,994) $ 0.001 Outstanding - July 31, 2012 10,979,634 $ 0.26 Granted 24,532,719 $ 0.001 Forfeited or expired (630,778) $ 0.75 Exercised (5,180,378) $ 0.001 Outstanding - July 31, 2013 29,701,197 $ 0.08 Granted 8,879,499 $ 0.001 Forfeited or expired (90,000) $ 0.53 Exercised (526,306) $ 0.001 Outstanding - July 31, 2013 37,964,390 $ 0.06 Exercisable - July 31, 2014 37,964,390 $ 0.06 |
Non-vested common stock options granted, vested and forfeited | Options Weighted Average Grant Date Fair Value Outstanding - August 1, 2011 60,000 $ 0.46 Granted 8,879,499 $ 0.029 Vested (8,939,499) $ 0.031 Outstanding - July 31, 2014 -0- n/a | |
Information on stock options outstanding | Options Outstanding and Options Exercisable Range of Exercise Price Number Outstanding at July 31, 2014 Weighted Average Exercise Price Weighted Average Remaining Life (Years) Aggregate Intrinsic Value $ 0.001 32,799,390 $ 0.001 3.68 $ 0.19 - $ 0.38 3,100,000 $ 0.285 1.63 $ 0.39 - $ 0.58 200,000 $ 0.560 0.24 $ 0.59 - $ 0.77 1,470,000 $ 0.633 3.34 $ 0.78 - $ 0.96 395,000 $ 0.940 0.24 37,964,390 $ 0.061 3.45 $ 655,988 | |
Intrinsic value of stock options | For the Year Ended July 31, 2014 2013 2012 Weighted Average Grant Date Fair Value of Options Granted $ 0.029 $ 0.003 $ 0.09 Aggregate Intrinsic Value of Options Exercised $ 21,052 $ 178,040 $ 119,214 Cash Received for Exercise of Stock Options $ 526 $ 5,180 $ 1,299 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jul. 31, 2014 | |
Segment Reporting [Abstract] | |
Segment Information | 2014 2013 Identifiable Assets Canada $ 3,719,760 $ 2,825,894 United States 1,802,697 2,026,969 Total $ 5,522,457 $ 4,852,863 |
Quarterly Information (Tables)
Quarterly Information (Tables) | 12 Months Ended |
Jul. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly information (unaudited) | Q1 Q2 Q3 Q4 Fiscal Year July 31, 2014: Revenues, net $ -0- $ -0- $ -0- $ -0- Operating Loss $ (1,443,051 ) $ (1,010,861 ) $ (1,242,849 ) $ (702,918 ) Net Income/(Loss) $ 530,094 $ (3,186,290 ) $ 270,923 $ 2,383,856 Net Loss available to common stockholders $ 530,094 $ (3,594,569 ) $ (1,149,127 ) $ 2,153,856 Net Loss per share $ 0.001 $ (0.010 ) $ (0.002 ) $ 0.003 Fiscal Year July 31, 2013 Revenues, net $ -0- $ -0- $ -0- $ -0- Operating Loss $ (1,940,031 ) $ (1,290,780 ) $ (1,433,640 ) $ (1,464,908 ) Net Income/(Loss) $ (656,199 ) $ (5,640,985 ) $ 1,297,448 $ (3,554,586 ) Net Loss available to common stockholders $ (758,496 ) $ (5,640,985 ) $ 1,297,448 $ (5,174,763 ) Net Loss per share $ 0.002 $ (0.015 ) $ 0.003 $ (0.007 ) |
Stockholders' Deficiency (Table
Stockholders' Deficiency (Tables) | 9 Months Ended |
Apr. 30, 2015 | |
Stockholders' deficiency transactions | Common Stock Shares Amount Additional Paid-In Capital Stockholders' Deficiency Balance at August 1, 2014 778,512,092 $ 778,512 $ 362,307,678 $ (6,090,058 ) Issuance of common stock on conversion of convertible preferred stock 12,891,668 12,892 (12,892 ) Issuance of common stock as make-whole payments on convertible preferred stock 5,187,021 5,187 99,235 104,423 Issuance of common stock for services 3,470,513 3,471 90,841 94,311 Exercise of stock options 6,416,316 6,416 6,416 Balance at April 30, 2015 806,477,610 $ 806,477 $ 362,484,862 Other changes to Stockholders' Deficiency Net loss for six months ended April 30, 2015 1,858,450 Currency translation adjustment 21,862 Stockholders' Deficiency at April 30, 2015 $ (7,721,676 ) |
Series E Convertible Preferred Stock | |
Allocation of initial proceeds | Accounting allocation of initial proceeds Net proceeds $ 750,000 Derivative warrant liability fair value (942,279 ) Other issuance costs (finders fee) (64,000 ) Make whole payments liability (216,000 ) Deemed dividend $ (472,279 ) |
Series F Convertible Preferred Stock | |
Allocation of initial proceeds | Accounting allocation of initial proceeds Net proceeds $ 2,020,000 Derivative warrant liability fair value (2,016,064 ) Derivative additional investment rights fair value (863,735 ) Other issuance costs (finders fee) (166,000 ) Make whole payments liability (560,250 ) Deemed dividend $ (1,586,050 ) |
Organization and Business (Deta
Organization and Business (Details Narrative) | 12 Months Ended |
Jul. 31, 2014USD ($) | |
Accounting Policies [Abstract] | |
Upfront license fees | $ 600,000 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | Apr. 30, 2015 | Jul. 31, 2013 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit, approximate estimate | $ 372,000,000 | $ (370,000,000) |
Working capital deficiency | 6,900,000 | (4,800,000) |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |||||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Apr. 30, 2015 | Apr. 30, 2014 | Dec. 17, 2004 | |
Accounting Policies [Abstract] | ||||||
Minority interest in consolidated subsidiaries, less than: | 100.00% | |||||
Ownership in all consolidated subsidiaries | 100.00% | |||||
Write down of certain patents | $ 440,780 | |||||
Write down or disposal of certain long-lived assets | $ 706,590 | $ 745,172 | 2,945,079 | |||
Deferred revenue | 223,662 | 224,843 | $ 223,662 | $ 223,662 | ||
Grant revenue received, recorded as deferred revenue | $ 0 | $ 0 | $ 0 | |||
Tax benefit sustained upon settlement, minimum | 50.00% |
Long-lived Assets - Property an
Long-lived Assets - Property and Equipment (Details) - USD ($) | Apr. 30, 2015 | Jul. 31, 2014 | Apr. 30, 2014 | Jul. 31, 2013 |
Property, Plant and Equipment, Gross | $ 13,078 | $ 507,939 | ||
Less: Accumulated Depreciation | 7,785 | 422,533 | ||
Property and Equipment, Net | $ 3,520 | 5,293 | $ 5,293 | 85,406 |
Building and Improvements | ||||
Property, Plant and Equipment, Gross | 0 | 117,898 | ||
Furniture and Fixtures | ||||
Property, Plant and Equipment, Gross | 13,078 | 23,452 | ||
Office Equipment | ||||
Property, Plant and Equipment, Gross | 0 | 38,690 | ||
Lab Equipment | ||||
Property, Plant and Equipment, Gross | $ 0 | $ 327,899 |
Long-lived Assets - Assets Held
Long-lived Assets - Assets Held for Investment, Net (Details) - USD ($) | Jul. 31, 2014 | Aug. 31, 2013 | Jul. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jul. 30, 2012 | Apr. 30, 2012 | Aug. 31, 2011 |
Property, Plant and Equipment [Abstract] | ||||||||
Assets Held For Investment | $ 0 | $ 930,726 | ||||||
Less: Accumulated Depreciation | 0 | 289,954 | ||||||
Assets Held for Investment, Net | $ 0 | $ 694,911 | $ 640,772 | $ 169,566 | $ 585,064 | $ 107,203 | $ 1,783,932 | $ 1,029,435 |
Long-lived Assets (Details Narr
Long-lived Assets (Details Narrative) - USD ($) | 1 Months Ended | 2 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2013 | Aug. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jul. 31, 2012 | Aug. 31, 2011 | Apr. 30, 2012 | Aug. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 30, 2012 | Jul. 31, 2011 | |
Property, Plant and Equipment [Abstract] | |||||||||||||
Depreciation expense | $ 10,482 | $ 41,890 | $ 97,967 | ||||||||||
Depreciation expense on assets held for investment | 0 | 30,764 | 74,070 | ||||||||||
Gross proceeds from sale of real estate | $ 883,780 | $ 883,780 | $ 256,835 | $ 1,579,189 | $ 342,862 | $ 1,669,115 | $ 2,865,682 | 7,847 | 221,399 | 384,299 | |||
Property, net book value | 694,911 | 694,911 | 169,566 | 585,064 | 1,029,435 | 1,783,932 | $ 694,911 | 0 | 640,772 | $ 107,203 | |||
Gain on sale of real estate | 188,869 | 188,869 | 87,682 | 994,125 | 235,659 | 639,680 | 1,081,750 | ||||||
Partial discharge of mortgage | 606,806 | 606,806 | 216,810 | ||||||||||
Legal fees, interest, penalties from sale of real estate, approximation | 73,628 | 73,628 | 13,000 | ||||||||||
Net proceeds from sale of real estate | 203,346 | $ 203,346 | $ 27,025 | 1,028,780 | 1,009,827 | 2,190,952 | 188,869 | 1,081,807 | 1,957,089 | ||||
Principal of mortgage discharged completely upon sale | $ 617,665 | $ 480,951 | $ 659,288 | $ 571,680 | $ 606,806 | ||||||||
Income from properties held for investment | $ 163,358 | 4,738 | 163,358 | $ 249,127 | |||||||||
Rental expenses | $ 1,935 | $ 58,041 | $ 135,172 | ||||||||||
Properties held for investment, interest rate | 9.75% |
Patents - Costs and accumulated
Patents - Costs and accumulated amortization of patents (Details) - USD ($) | 12 Months Ended | |||
Jul. 31, 2014 | Jul. 31, 2013 | Apr. 30, 2015 | Apr. 30, 2014 | |
Accounting Policies [Abstract] | ||||
Patents | $ 5,725,908 | $ 5,657,455 | ||
Less: Accumulated Amortization | 3,679,547 | 3,338,039 | ||
Patents, Net | $ 2,046,361 | $ 2,319,416 | $ 1,835,267 | $ 2,046,361 |
Weighted Average Life | 7 years 9 months 18 days | 8 years 7 months 6 days |
Patents (Details Narrative)
Patents (Details Narrative) - USD ($) | 12 Months Ended | |||||||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Accounting Policies [Abstract] | ||||||||
Amortization expense, patents | $ 357,965 | $ 391,777 | $ 441,087 | |||||
Amortization expense, patents, next year | $ 315,000 | |||||||
Amortization expense, patents, year two | $ 315,000 | |||||||
Amortization expense, patents, year three | $ 315,000 | |||||||
Amortization expense, patents, year four | $ 315,000 | |||||||
Amortization expense, patents, year five | $ 315,000 | |||||||
Write-off of abandoned patents | $ 440,780 |
Income Taxes - Deferred income
Income Taxes - Deferred income taxes (Details) - USD ($) | Jul. 31, 2014 | Jul. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 90,515,261 | $ 87,541,552 |
Other temporary differences | 299,010 | $ 800,989 |
Intangible assets | 291,002 | |
Total Deferred Tax Assets | 91,105,273 | $ 88,342,541 |
Valuation Allowance | $ (91,105,273) | (88,098,860) |
Deferred Tax Liabilities | ||
Intangible assets | (386,320) | |
Other temporary differences | 142,639 | |
Total Deferred Tax Liabilities | $ (243,681) | |
Net Deferred Income Taxes |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of effective tax rate (Details) | 12 Months Ended | ||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | (34.00%) | (34.00%) | (34.00%) |
Increase (decrease) in income taxes resulting from: | |||
Imputed interest income on intercompany receivables from foreign subsidiaries | 403700.00% | 600.00% | 500.00% |
Nondeductible or non-taxable items | 11156900.00% | 1300.00% | 400.00% |
Other temporary differences | (8406100.00%) | (1400.00%) | 1800.00% |
Change in valuation allowance | 19162700.00% | 2900.00% | (300.00%) |
Effective tax rate |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Pretax losses arising from domestic operations | $ 1,274,619 | $ (8,025,582) | $ (8,040,033) |
Pretax losses arising from foreign operations | 1,276,036 | $ 528,741 | $ 1,450,244 |
Generex Biotechnology Corporation | |||
NOL carryforwards, expiring through 2033 | 202,000,000 | ||
Generex Pharmaceuticals, Inc | |||
NOL carryforwards, expiring through 2033 | 44,000,000 | ||
Antigen Express, Inc | |||
NOL carryforwards, expiring through 2033 | $ 25,000,000 |
Accounts Payable and Accrued 56
Accounts Payable and Accrued Expenses (Details) - USD ($) | Apr. 30, 2015 | Jul. 31, 2014 | Apr. 30, 2014 | Jul. 31, 2013 |
Payables and Accruals [Abstract] | ||||
Accounts Payable & Accruals -General and Administrative | $ 3,208,069 | $ 3,447,618 | ||
Accounts Payable & Accruals - Research and Development | 3,955,543 | 3,557,184 | ||
Accounts Payable & Accruals - Selling and Marketing | $ 326,586 | 3,955,543 | 328,629 | |
Accrued Make Whole Payments on Convertible Preferred Stock (see Note 9) | 337,500 | 251,100 | ||
Executive Compensation and Directors' Fees Payable | 205,943 | 76,703 | ||
Total | $ 7,622,479 | $ 8,034,122 | $ 8,034,122 | $ 7,661,234 |
Commitments and Contingent Li57
Commitments and Contingent Liabilities - Aggregate minimum commitments under non-cancelable operating leases (Details) | Jul. 31, 2014USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,015 | $ 41,750 |
2,016 | 39,317 |
2,017 | 41,501 |
2,018 | 41,938 |
2019 and thereafter | 53,122 |
Total Minimum Lease Payments | $ 217,628 |
Commitments and Contingent Li58
Commitments and Contingent Liabilities (Details Narrative) - USD ($) | 12 Months Ended | |||||||
Jul. 31, 2014 | Jul. 31, 2013 | Nov. 16, 2012 | Jul. 31, 2012 | Jul. 31, 2011 | Jun. 30, 2014 | May. 20, 2011 | Jul. 20, 2001 | |
Lease Expense | $ 162,000 | $ 153,000 | $ 185,000 | |||||
Minimum units purchased, each year | 10,000,000 | |||||||
Monthly gross rent, including taxes and expenses | $ 6,900 | |||||||
Shares of CBI owned by former business associate | 50.00% | |||||||
Shares of CBI owned by Company | 50.00% | |||||||
Annual salary | $ 260,480 | |||||||
President | ||||||||
Annual salary | 475,000 | |||||||
Antigen Employees | ||||||||
Annual salary | $ 371,305 | |||||||
Termination Of Employee | ||||||||
Value of damages sought | $ 7,000,000 | |||||||
Counterclaim proceeding | $ 2,300,000 | |||||||
Lawsuit filing date | 20-May-11 | |||||||
Name of Plaintiff | Ms. Perri | |||||||
Breach of contract and detinue | ||||||||
Value of damages sought | $ 550,000 | |||||||
Counterclaim proceeding | $ 200,000 | |||||||
Lawsuit filing date | 1-Jun-11 | |||||||
Name of Plaintiff | Golden Bull Estates | |||||||
Punitive Damages | ||||||||
Value of damages sought | $ 50,000 | |||||||
Sale Of Estate | ||||||||
Value of damages sought | $ 1,730,000 | |||||||
Lawsuit filing date | 31-Aug-11 | |||||||
Name of Plaintiff | Antonio Perri | |||||||
Damages for Unpaid Invoices | ||||||||
Value of damages sought | $ 429,000 | |||||||
Lawsuit filing date | 31-Dec-11 | |||||||
Name of Plaintiff | Vendor | |||||||
Settlement of litigation | $ 125,000 | |||||||
Interest per annum, failure to pay settlement | 3.00% | 3.00% | ||||||
Fixed cost per annum, failure to pay settlement | $ 25,000 | $ 25,000 |
Long-Term Debt - Long-term debt
Long-Term Debt - Long-term debt (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Mortgage payable, monthly interest payments | $ 6,771 | $ 6,771 |
Less Current Maturities of Long-Term Debt | $ 617,665 | |
Principal due November 2013 | ||
Mortgage payable, interest per annum | 9.75% | 9.75% |
Total Debt | $ 0 | $ 617,665 |
Less Current Maturities of Long-Term Debt | 0 | 617,665 |
Total Long-Term Debt | $ 0 | $ 0 |
Long-Term Debt (Details Narrati
Long-Term Debt (Details Narrative) - USD ($) | 12 Months Ended | ||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Debt Disclosure [Abstract] | |||
Interest expense on long-term debt | $ 4,969 | $ 196,101 | $ 568,424 |
Fair value of Accounting alloca
Fair value of Accounting allocation of initial proceeds - Series A, B, C, D & E 9% Convertible Preferred Stock (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 27, 2014 | Jan. 31, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Net proceeds | $ 2,770,000 | $ 2,655,000 | $ 2,615,000 | $ 1,975,000 | |||
Deemed dividend | (2,058,329) | (1,722,474) | $ (376,746) | ||||
Series E Convertible Preferred Stock | |||||||
Net proceeds | $ 750,000 | $ 750,000 | 1,165,000 | ||||
Derivative warrant liability fair value | (942,279) | (942,279) | (1,189,744) | ||||
Other issuance costs (Finders' Fee) | (64,000) | ||||||
Derivative additional investment rights fair value | (1,264,683) | ||||||
Make whole payments liability | (216,000) | (216,000) | (330,750) | ||||
Deemed dividend | $ (472,279) | (472,279) | $ (1,620,177) | ||||
Series F Convertible Preferred Stock | |||||||
Net proceeds | $ 2,020,000 | 2,020,000 | 2,020,000 | ||||
Derivative warrant liability fair value | (2,016,064) | (2,016,064) | |||||
Other issuance costs (Finders' Fee) | (166,000) | ||||||
Derivative additional investment rights fair value | (863,735) | (863,735) | |||||
Make whole payments liability | (560,250) | (560,250) | |||||
Deemed dividend | $ (1,586,050) | $ (1,586,050) |
Series A, B, C, D, E & F 9% C62
Series A, B, C, D, E & F 9% Convertible Preferred Stock (Details Narrative) - USD ($) | Jan. 19, 2014 | Jun. 30, 2013 | Jan. 31, 2014 | Dec. 10, 2012 | Jun. 17, 2013 | Jul. 31, 2013 | Apr. 30, 2015 | Apr. 30, 2014 | Jun. 17, 2017 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Jun. 17, 2016 | Jun. 17, 2016 | Jan. 14, 2014 | Mar. 28, 2013 |
Net proceeds from financing | $ 2,770,000 | $ 2,655,000 | $ 2,615,000 | $ 1,975,000 | ||||||||||||
Accounts payable and accrued expenses | $ 7,622,479 | $ 8,034,122 | ||||||||||||||
Series E Convertible Preferred Stock | ||||||||||||||||
Convertible preferred stock, shares authorized | 2,450 | 2,450 | 2,450 | 2,450 | ||||||||||||
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | 9.00% | 9.00% | ||||||||||||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||||||
Convertible preferred stock, shares issued | 930 | 25 | 25 | 930 | ||||||||||||
Common stock issued upon conversion of preferred stock | 66,666,666 | |||||||||||||||
Common stock issued as "make-whole payments" on conversions of preferred stock | 18,585,193 | |||||||||||||||
Convertible preferred stock conversion price | $ 0.03 | |||||||||||||||
Net proceeds from financing | $ 750,000 | $ 750,000 | $ 1,165,000 | |||||||||||||
Conversion of preferred stock | 2,025 | |||||||||||||||
Conversion of stock, amount converted | 2,000 | |||||||||||||||
Warrants issued to investors | 26,666,668 | 40,833,335 | ||||||||||||||
"Make-whole payments", value | $ 6,750 | |||||||||||||||
Preferred stock issued to investors | 800 | |||||||||||||||
Series A Convertible Preferred Stock | ||||||||||||||||
Convertible preferred stock, shares authorized | 5,500 | 5,500 | ||||||||||||||
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | ||||||||||||||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | ||||||||||||||
Convertible preferred stock, shares issued | 2,575 | 2,575 | ||||||||||||||
Common shares attributable to conversion of preferred stock | 17,166,666 | |||||||||||||||
Common stock issued upon conversion of preferred stock | 17,166,666 | 17,166,666 | ||||||||||||||
Common stock issued as "make-whole payments" on conversions of preferred stock | 6,129,666 | 6,129,666 | ||||||||||||||
Series B Convertible Preferred Stock | ||||||||||||||||
Convertible preferred stock, shares authorized | 792 | 2,000 | 2,000 | |||||||||||||
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | ||||||||||||||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | ||||||||||||||
Convertible preferred stock, shares issued | 2,000 | 2,000 | ||||||||||||||
Common shares attributable to conversion of preferred stock | 9,897,500 | 26,393,333 | 13,333,333 | |||||||||||||
Common stock issued upon conversion of preferred stock | 38,520,832 | 38,520,832 | ||||||||||||||
Common stock issued as "make-whole payments" on conversions of preferred stock | 14,819,679 | 14,819,679 | ||||||||||||||
Convertible preferred stock conversion price | $ .08 | $ .03 | ||||||||||||||
Net proceeds from financing | $ 1,975,000 | |||||||||||||||
Series C Convertible Preferred Stock | ||||||||||||||||
Convertible preferred stock, shares authorized | 650 | 750 | 750 | |||||||||||||
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | ||||||||||||||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | ||||||||||||||
Convertible preferred stock, shares issued | 750 | 750 | ||||||||||||||
Common shares attributable to conversion of preferred stock | 8,125,000 | 21,666,666 | 9,375,000 | |||||||||||||
Common stock issued upon conversion of preferred stock | 22,916,665 | 22,916,665 | ||||||||||||||
Common stock issued as "make-whole payments" on conversions of preferred stock | 6,664,863 | 6,664,863 | ||||||||||||||
Convertible preferred stock conversion price | $ .03 | $ .08 | ||||||||||||||
Net proceeds from financing | $ 725,000 | |||||||||||||||
Series D Convertible Preferred Stock | ||||||||||||||||
Convertible preferred stock, shares authorized | 750 | 750 | ||||||||||||||
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | ||||||||||||||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | ||||||||||||||
Convertible preferred stock, shares issued | 750 | 750 | ||||||||||||||
Common shares attributable to conversion of preferred stock | 24,999,999 | |||||||||||||||
Common stock issued upon conversion of preferred stock | 24,999,999 | 24,999,999 | ||||||||||||||
Common stock issued as "make-whole payments" on conversions of preferred stock | 7,825,191 | 7,825,191 | ||||||||||||||
Net proceeds from financing | $ 725,000 | |||||||||||||||
Preferred stock, face value | $ 750,000 | |||||||||||||||
Series E Convertible Preferred Stock | ||||||||||||||||
Convertible preferred stock, shares authorized | 2,450 | 2,450 | 2,450 | |||||||||||||
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | 9.00% | |||||||||||||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 | |||||||||||||
Convertible preferred stock, shares issued | 1,225 | 1,225 | 1,225 | |||||||||||||
Common shares attributable to conversion of preferred stock | 40,833,335 | 40,833,335 | ||||||||||||||
Common stock issued upon conversion of preferred stock | 9,833,334 | 9,833,334 | ||||||||||||||
Common stock issued as "make-whole payments" on conversions of preferred stock | 2,654,999 | 2,654,999 | ||||||||||||||
Convertible preferred stock conversion price | $ 0.03 | |||||||||||||||
Net proceeds from financing | $ 1,165,000 | $ 1,165,000 | ||||||||||||||
Common stock, effective conversion price | $ .03 | $ 0.03 | ||||||||||||||
Preferred stock, dividend rate percentage | 3.00% | 9.00% | 9.00% | |||||||||||||
Increased preferred stock dividend rate percentage | .18 | |||||||||||||||
Conversion of preferred stock | $ 800 | $ 295 | $ 270 | $ 270 | ||||||||||||
Conversion of stock, amount converted | $ 1,000 | $ 1,000 | ||||||||||||||
Warrants issued to investors | 26,666,668 | 40,833,335 | ||||||||||||||
Aggregate subscription amount, maximum | $ 1,225,000 | |||||||||||||||
"Make-whole payments", value | $ 330,750 | |||||||||||||||
Accounts payable and accrued expenses | $ 251,100 | $ 251,100 | ||||||||||||||
Additional Units | ||||||||||||||||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | |||||||||||||||
Aggregate subscription amount, maximum | $ 1,225,000 |
Changes in value of derivative
Changes in value of derivative warrant liability - Derivative Liabilities (Details) - USD ($) | 9 Months Ended | 12 Months Ended | 24 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | |
Balance - Derivative warrant liability Value | $ 2,635,643 | $ 5,234,293 | $ 5,234,293 | ||
No. of Warrants - Derivative warrant liability | 257,331,254 | ||||
Exercise of Warrants | $ (2,194,496) | $ (5,629,130) | $ (2,194,496) | ||
Warrants Exercised | (76,732,020) | (145,888,421) | (76,732,020) | ||
Decrease in fair value of derivative warrant liability | $ 53,597 | $ 298,370 | $ (3,362,497) | $ (3,279,650) | $ (3,362,497) |
August 2,012 | |||||
Balance - Derivative warrant liability Value | $ 4,081,627 | ||||
No. of Warrants - Derivative warrant liability | 55,148,530 | ||||
Additional warrants issued | $ 624,797 | ||||
Warrants Issued | 9,375,000 | ||||
December 2,012 | |||||
Additional warrants issued | $ 762,355 | ||||
Warrants Issued | 24,999,999 | ||||
June 2,013 | |||||
Additional warrants issued | $ 1,189,744 | ||||
Warrants Issued | 40,833,335 | ||||
July 2,013 | |||||
Balance - Derivative warrant liability Value | $ 5,234,293 | ||||
No. of Warrants - Derivative warrant liability | 220,687,537 | ||||
Price Protection | |||||
Additional warrants issued | $ 7,484,550 | ||||
Warrants Issued | 236,219,094 | ||||
January 2,014 | |||||
Additional warrants issued | $ 942,279 | ||||
Warrants Issued | 26,666,668 | ||||
March 2,014 | |||||
Additional warrants issued | $ 2,016,064 | $ 2,016,064 | |||
Warrants Issued | 69,166,667 | 69,166,667 |
Fair Value Assumptions Used in
Fair Value Assumptions Used in Accounting for Derivative Warrant Liability - Derivative Liabilities (Details 1) - $ / shares | Apr. 30, 2015 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jun. 04, 2013 | Mar. 05, 2013 | Feb. 05, 2013 | Jun. 06, 2012 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||
Current exercise price | $ 0.03 | $ .03 | $ .03 | $ 0.03 | ||||
Time to expiration | 2 years 7 months | 3 years 3 months | 3 years 6 months 18 days | 3 years 6 months | ||||
Risk-free interest rate | 0.91% | 1.02% | 1.02% | 0.49% | ||||
Estimated volatility | 79.00% | 80.00% | 80.00% | 85.00% | ||||
Dividend | 0.00% | 0.00% | 0.00% | 0.00% | ||||
Stock price at period end date | $ 0.0225 | $ .021 | $ .021 | $ .035 | $ .0325 | $ .034 | $ .038 | $ .0925 |
Fair Value Assumptions Used i65
Fair Value Assumptions Used in Accounting for Derivative Additional Investment Rights Liability - Derivative Liabilities (Details 2) - $ / shares | Apr. 30, 2015 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jun. 04, 2013 | Mar. 05, 2013 | Feb. 05, 2013 | Jun. 06, 2012 |
Underlying number of units of convertible preferred stock | 2,075 | |||||||
Underlying number of warrants | 69,166,667 | |||||||
Current exercise price of warrants | $ 0.03 | $ .03 | $ .03 | $ 0.03 | ||||
Current conversion price of preferred stock | $ 0.03 | |||||||
Time to expiration | 2 years 7 months | 3 years 3 months | 3 years 6 months 18 days | 3 years 6 months | ||||
Risk-free interest rate | 0.91% | 1.02% | 1.02% | 0.49% | ||||
Estimated volatility | 79.00% | 80.00% | 80.00% | 85.00% | ||||
Dividend | 0.00% | 0.00% | 0.00% | 0.00% | ||||
Stock price | $ 0.0225 | $ .021 | $ .021 | $ .035 | $ .0325 | $ .034 | $ .038 | $ .0925 |
Additional Investment Rights | ||||||||
Underlying number of units of convertible preferred stock | 2,075 | 1,225 | ||||||
Underlying number of warrants | 69,166,667 | 40,833,335 | ||||||
Current exercise price of warrants | .03 | $ .03 | $ .03 | |||||
Current conversion price of preferred stock | $ .03 | $ .03 | ||||||
Time to expiration | 7 months 24 days | 10 months 17 days | ||||||
Risk-free interest rate | 0.09% | 0.11% | ||||||
Estimated volatility | 61.00% | 114.00% | ||||||
Dividend | 0.00% | 0.00% | ||||||
Stock price | $ .021 | $ .021 | $ .035 |
Derivative Liabilities (Details
Derivative Liabilities (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Recognition of gain (loss) due to derivative liability | $ (455,184) | $ 1,591,375 | $ 665,491 | $ 1,360,818 | $ 4,525,739 | $ (3,140,259) | $ (1,081,440) |
Fair value of derivative liability | $ 2,689,240 | $ 2,689,240 | 2,635,643 | ||||
Additional investment rights | $ 237,566 | $ 841,333 | |||||
Issuing Additional Warrants | |||||||
Derivative warrants weighted average remaining life | 2 years 6 months | 3 years 5 months 18 days | |||||
Recognition of gain (loss) due to derivative liability | $ 3,362,497 | (3,148,782) | |||||
Additional investment rights | $ 24,109 | ||||||
Fair Value of Warrants | |||||||
Fair value of derivative liability | 2,635,643 | 5,234,293 | |||||
Additional investment rights | 719,088 | 1,256,160 | |||||
Recognition of Gain | |||||||
Additional investment rights | $ 1,163,242 | $ 8,523 |
Derivative Liabilities (Detai67
Derivative Liabilities (Details Narrative 2) - USD ($) | 9 Months Ended | 12 Months Ended | 24 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2014 | |
Increase (Decrease) in fair value of derivative warrant liability | $ 53,597 | $ 298,370 | $ (3,362,497) | $ (3,279,650) | $ (3,362,497) | |
Fair value of derivative liability | $ 2,689,240 | 2,635,643 | 2,635,643 | |||
Additional investment rights | $ 237,566 | $ 841,333 | ||||
Additional paid in capital | 237,566 | |||||
Additional recognition of gain, “Change in fair value of derivative liabilities” | $ 1,062,448 | |||||
Issuing Additional Warrants | ||||||
Derivative warrants weighted average remaining life | 2 years 6 months | 3 years 5 months 18 days | ||||
Increase (Decrease) in fair value of derivative warrant liability | $ 53,597 | |||||
Additional investment rights | 24,109 | |||||
Additional recognition of gain, “Change in fair value of derivative liabilities” | 719,088 | |||||
Issuing Additiona Investment Rights | ||||||
Fair value of derivative liability | $ 0 | $ 719,088 | $ 719,088 |
Warrants to purchase common sto
Warrants to purchase common stock outstanding - Stockholders' (Deficiency)/Equity (Details) - $ / shares | 12 Months Ended | |
Jul. 31, 2014 | Apr. 30, 2015 | |
Number of Shares To be Purchased | 257,331,254 | 239,788,852 |
Warrant Expiration Date 15 December 2014 | ||
Number of Shares To be Purchased | 8,470,661 | |
Warrant Exercise Price per Share | $ 0.76 | |
Warrant Expiration Date | Dec. 15, 2014 | |
Warrant Expiration Date 4 February 2015 | ||
Warrant Exercise Price per Share | $ 0.79 | |
Warrant Expiration Date | Feb. 4, 2015 | |
Warrant Expiration Date 9 February 2015 | ||
Number of Shares To be Purchased | 300,000 | |
Warrant Exercise Price per Share | $ 0.39 | |
Warrant Expiration Date | Feb. 9, 2015 | |
Warrant Expiration Date 7 March 2015 | ||
Number of Shares To be Purchased | 200,000 | |
Warrant Exercise Price per Share | $ 1.25 | |
Warrant Expiration Date | Mar. 7, 2015 | |
Warrant Expiration Date 15 March 2015 | ||
Number of Shares To be Purchased | 5,157,813 | |
Warrant Exercise Price per Share | $ 1 | |
Warrant Expiration Date | Mar. 15, 2015 | |
Warrant Expiration Date 31 March 2016 | ||
Warrant Exercise Price per Share | $ 0.03 | |
Warrant Expiration Date | Mar. 31, 2016 | |
Warrant Expiration Date 11 July 2016 | ||
Warrant Exercise Price per Share | $ 0.03 | |
Warrant Expiration Date | Jul. 11, 2016 | |
Warrant Expiration Date 30 September 2016 | ||
Warrant Exercise Price per Share | $ 0.03 | |
Warrant Expiration Date | Sep. 30, 2016 | |
Warrant Expiration Date 1 February 2017 | ||
Warrant Exercise Price per Share | $ 0.03 | |
Warrant Expiration Date | Feb. 1, 2017 | |
Warrant Expiration Date 10 August 2017 | ||
Warrant Exercise Price per Share | $ 0.03 | |
Warrant Expiration Date | Aug. 10, 2017 | |
Warrant Expiration Date 12 December 2017 | ||
Number of Shares To be Purchased | 8,324,144 | |
Warrant Exercise Price per Share | $ 0.03 | |
Warrant Expiration Date | Dec. 12, 2017 | |
Warrant Expiration Date 17 June 2018 | ||
Warrant Exercise Price per Share | $ 0.03 | |
Warrant Expiration Date | Jun. 17, 2018 | |
Warrant Expiration Date 12 December 2017 | ||
Number of Shares To be Purchased | 25,666,668 | |
Warrant Exercise Price per Share | $ .03 | |
Warrant Expiration Date | Jan. 15, 2019 | |
Warrant Expiration Date 12 December 2017 | ||
Number of Shares To be Purchased | 69,166,667 | |
Warrant Exercise Price per Share | $ .03 | |
Warrant Expiration Date | Mar. 27, 2019 |
Stockholders' (Deficiency)_Equi
Stockholders' (Deficiency)/Equity (Details Narrative) - USD ($) | 12 Months Ended | ||||
Jul. 31, 2014 | Apr. 30, 2015 | Mar. 27, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Outstanding warrants, weighted average exercise price | $ .085 | ||||
Outstanding warrants, weighted average remaining life (in years) | 3 years 3 months 6 days | ||||
Number of warrants | 257,331,254 | 239,788,852 | |||
Number of warrants, exercise price | $ .03 | $ 0.03 | $ 0.03 | ||
Series E Convertible Preferred Stock | |||||
Convertible preferred stock, shares authorized | 2,450 | 2,450 | 2,450 | ||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 | ||
Convertible preferred stock, shares issued | 25 | 25 | 930 | ||
Convertible preferred stock, shares outstanding | 25 | 25 | 930 | ||
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | 9.00% | ||
Series F Convertible Preferred Stock | |||||
Convertible preferred stock, shares authorized | 4,150 | 4,150 | 4,150 | 0 | |
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | |
Convertible preferred stock, shares issued | 1,225 | 838 | 2,075 | 0 | |
Convertible preferred stock, shares outstanding | 1,225 | 838 | 0 | ||
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | 9.00% | ||
Series B Convertible Preferred Stock [Member] | |||||
Convertible preferred stock, shares issued | 1,490 | ||||
Convertible preferred stock, shares outstanding | 1,490 | ||||
Convertible preferred stock, cumulative percentage of interest | 9.00% | ||||
Price Protection Provision, Warrants | |||||
Number of warrants | 239,788,852 | ||||
Number of warrants, exercise price | $ .03 | ||||
Estimated value of warrants | $ 2,635,643 | ||||
Preferred Stock | |||||
Convertible preferred stock, shares authorized | 1,000,000 | ||||
Convertible preferred stock, par value (in dollars per share) | $ .001 |
Common stock options granted, f
Common stock options granted, forfeited or expired and exercised - Stock-Based Compensation (Details 1) - $ / shares | 12 Months Ended | ||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Options Outstanding | 37,964,390 | 10,979,634 | 7,340,182 |
Options Granted | 8,879,499 | 24,532,719 | 5,851,696 |
Options Forfeited or expired | (90,000) | (630,778) | (912,250) |
Options Exercised | (526,306) | ||
Options Outstanding | 37,964,390 | 37,964,390 | 10,979,634 |
Options Exercisable | 21,052 | 178,040 | 119,214 |
Weighted Average Exercise Price per Share | $ .061 | $ .26 | $ .46 |
Weighted Average Exercise Price per Share, Granted | .001 | .001 | 0.001 |
Weighted Average Exercise Price per Share, Forfeited or expired | .53 | .75 | 0.65 |
Weighted Average Exercise Price per Share, Exercised | .001 | .001 | 0.001 |
Weighted Average Exercise Price per Share, Outstanding | 0.061 | .061 | .26 |
Weighted Average Exercise Price per Share, Exercisable | $ 0.029 | $ 0.003 | $ 0.09 |
Non-vested common stock options
Non-vested common stock options granted, vested and forfeited - Stock-Based Compensation (Details 2) - 36 months ended Jul. 31, 2014 - $ / shares | Total |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options Outstanding | 60,000 |
Options Granted | 8,879,499 |
Options Vested | (8,939,499) |
Options Outstanding | 0 |
Weighted Average Grant Date Fair Value Outstanding | $ .46 |
Weighted Average Grant Date Fair Value Granted | .029 |
Weighted Average Grant Date Fair Value Vested | $ 0.031 |
Weighted Average Grant Date Fair Value Outstanding |
Information on stock options ou
Information on stock options outstanding - Stock-Based Compensation (Details 3) - Jul. 31, 2014 - USD ($) | Total |
Options Outstanding | 37,964,390 |
Weighted Average Exercise Price per Share | $ .061 |
Options Weighted Average Remaining Life (Years) | 3 years 5 months 12 days |
Options Aggregate Intrinsic Value | $ 655,988 |
Exercise Price 0.001 | |
Options Range of Exercise Price | $ .001 |
Options Range of Exercise Price | $ .001 |
Options Weighted Average Remaining Life (Years) | 3 years 8 months 4 days |
Exercise Price 0.19 to 0.38 | |
Options Range of Exercise Price | $ .19 |
Options Range of Exercise Price | $ .38 |
Options Weighted Average Remaining Life (Years) | 1 year 7 months 16 days |
Exercis Price 0.39 to 0.58 | |
Options Range of Exercise Price | $ .39 |
Options Range of Exercise Price | $ .58 |
Options Weighted Average Remaining Life (Years) | 2 months 26 days |
Exercise Price 0.59 to 0.77 | |
Options Range of Exercise Price | $ .59 |
Options Range of Exercise Price | $ .77 |
Options Weighted Average Remaining Life (Years) | 3 years 4 months 2 days |
Exercise Price 0.78 to 0.96 | |
Options Range of Exercise Price | $ .78 |
Options Range of Exercise Price | $ .96 |
Options Weighted Average Remaining Life (Years) | 2 months 26 days |
Intrinsic value of stock option
Intrinsic value of stock options - Stock-Based Compensation (Details 4) - USD ($) | 12 Months Ended | ||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted Average Grant Date Fair Value of Options Granted | $ .029 | $ .003 | $ 0.09 |
Aggregate Intrinsic Value of Options Exercised | $ 21,052 | $ 178,040 | $ 119,214 |
Cash Received for Exercise of Stock Options | $ 526 | $ 5,180 | $ 1,300 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |||||||
Apr. 30, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Jun. 04, 2013 | Mar. 05, 2013 | Feb. 05, 2013 | Jun. 06, 2012 | Jul. 31, 2011 | |
Share-based employee compensation | $ 262,871 | $ 837,753 | $ 602,384 | ||||||
Outstanding options | 37,964,390 | 37,964,390 | 10,979,634 | 7,340,182 | |||||
Closing price of common stock | $ 0.0225 | $ .021 | $ .035 | $ .0325 | $ .034 | $ .038 | $ .0925 | ||
Market value of options | $ .021 | $ .035 | $ .093 | ||||||
Stock Options | |||||||||
Share-based employee compensation | $ 837,753 | $ 602,384 | |||||||
Outstanding options, weighted average remaining contractual term | 4 years 2 months 16 days | ||||||||
Common Stock | |||||||||
Share-based employee compensation | $ 130,000 | $ 0 | $ 130,544 | ||||||
Stock Option Plan 2001 | |||||||||
Common stock reserved for future issuance | 12,000,000 | 12,000,000 | |||||||
Common stock reserved for future awards | 2,338,916 | 1,353,916 | |||||||
Stock Option Plan 2006 | |||||||||
Common stock reserved for future issuance | 135,000,000 | 135,000,000 | |||||||
Common stock reserved for future awards | 81,530,576 | 81,300,576 | |||||||
Closing price of common stock | $ .001 | $ .001 | $ .001 | ||||||
Stock Options | |||||||||
Share-based employee compensation | $ 262,871 | ||||||||
Outstanding options | 30,333,074 | 37,964,390 | 29,701,197 | ||||||
Outstanding options, weighted average remaining contractual term | 2 years 9 months | 3 years 5 months 12 days | |||||||
Share based compensation for deferred salary and director fees | 8,879,499 | 24,532,719 | 5,851,696 |
Net Loss per Share (Details Nar
Net Loss per Share (Details Narrative) - shares | 12 Months Ended | ||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from earnings per share, incremental shares | 336,962,311 | 298,931,138 | 94,643,712 |
Segment Information (Details)
Segment Information (Details) - USD ($) | Apr. 30, 2015 | Jul. 31, 2014 | Apr. 30, 2014 | Jul. 31, 2013 |
Identifiable Assets | $ 2,813,705 | $ 5,522,457 | $ 5,522,457 | $ 4,852,863 |
Canada | ||||
Identifiable Assets | 3,719,760 | 2,825,894 | ||
United States | ||||
Identifiable Assets | 1,802,697 | 2,026,969 | ||
Identifiable Assets | ||||
Identifiable Assets | $ 5,522,457 | $ 4,852,863 |
Quarterly Information - Quarter
Quarterly Information - Quarterly information (unaudited) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Apr. 30, 2015 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2015 | Apr. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Revenues, net | $ 28,651 | |||||||||||||
Operating Loss | $ (851,601) | $ (1,242,849) | $ (2,595,217) | $ (3,696,761) | $ (4,399,679) | $ (6,129,359) | (10,024,048) | |||||||
Net Income/(Loss) | (1,858,450) | (2,385,273) | (1,417) | (8,554,322) | (9,490,278) | |||||||||
Net Loss available to common stockholders | $ (1,396,157) | (1,149,127) | $ (1,858,450) | $ (4,213,602) | $ (2,059,746) | $ (10,276,796) | $ (9,867,024) | |||||||
Q1 | ||||||||||||||
Revenues, net | $ 0 | $ 0 | ||||||||||||
Operating Loss | (1,443,051) | (1,940,031) | ||||||||||||
Net Income/(Loss) | 530,094 | (656,199) | ||||||||||||
Net Loss available to common stockholders | $ 530,094 | $ (758,496) | ||||||||||||
Net Loss per share | $ 0.001 | $ 0.002 | ||||||||||||
Q2 | ||||||||||||||
Revenues, net | $ 0 | $ 0 | ||||||||||||
Operating Loss | (1,010,861) | (1,290,780) | ||||||||||||
Net Income/(Loss) | (3,186,290) | (5,640,985) | ||||||||||||
Net Loss available to common stockholders | $ (3,594,569) | $ (5,640,985) | ||||||||||||
Net Loss per share | $ (.010) | $ (0.015) | ||||||||||||
Q3 | ||||||||||||||
Revenues, net | 0 | $ 0 | ||||||||||||
Operating Loss | (1,242,849) | (1,433,640) | ||||||||||||
Net Income/(Loss) | 270,923 | 1,297,448 | ||||||||||||
Net Loss available to common stockholders | $ (1,149,127) | $ 1,297,448 | ||||||||||||
Net Loss per share | $ (.002) | $ 0.003 | ||||||||||||
Q4 | ||||||||||||||
Revenues, net | $ 0 | $ 0 | ||||||||||||
Operating Loss | (702,918) | (1,464,908) | ||||||||||||
Net Income/(Loss) | 2,383,856 | (3,554,586) | ||||||||||||
Net Loss available to common stockholders | $ 2,153,856 | $ (5,174,763) | ||||||||||||
Net Loss per share | $ 0.004 | $ (.007) |
Common stock options granted,78
Common stock options granted, forfeited or expired and exercised - Stock-Based Compensation (Details 2) - $ / shares | 9 Months Ended | 12 Months Ended | ||
Apr. 30, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Options Outstanding | 37,964,390 | 37,964,390 | 10,979,634 | 7,340,182 |
Options Forfeited or expired | (90,000) | (630,778) | (912,250) | |
Options Exercised | (526,306) | |||
Options Exercisable | 21,052 | 178,040 | 119,214 | |
Weighted Average Exercise Price per Share | $ 0.061 | $ .061 | $ .26 | $ .46 |
Weighted Average Exercise Price per Share, Forfeited or expired | .53 | .75 | 0.65 | |
Weighted Average Exercise Price per Share, Exercised | .001 | .001 | 0.001 | |
Weighted Average Exercise Price per Share, Exercisable | $ 0.029 | $ 0.003 | $ 0.09 | |
Options | ||||
Options Forfeited or expired | 1,215,000 | |||
Options Exercised | 6,416,316 | |||
Options Exercisable | 30,333,074 | |||
Weighted Average Exercise Price per Share | ||||
Weighted Average Exercise Price per Share, Forfeited or expired | $ 0.716 | |||
Weighted Average Exercise Price per Share, Exercised | 0.001 | |||
Weighted Average Exercise Price per Share, Exercisable | $ 0.048 | |||
Aggregate Intrinsic Vaalue | ||||
Options Exercised | 129,908 | |||
Options Exercisable | 567,236 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - USD ($) | Apr. 30, 2015 | Jul. 31, 2013 |
Accounting Policies [Abstract] | ||
Accumulated deficit | $ 372,000,000 | $ (370,000,000) |
Working capital deficiency | 6,900,000 | (4,800,000) |
Accounts Payable and Accrued 80
Accounts Payable and Accrued Expenses - Accounts payable and accrues expenses (Details) - USD ($) | Apr. 30, 2015 | Jul. 31, 2014 | Jul. 31, 2013 |
Payables and Accruals [Abstract] | |||
Accounts Payable and Accruals – General and Administrative | $ 3,127,111 | $ 3,208,069 | |
Accounts Payable and Accruals – Research and Development | 3,699,158 | 3,955,543 | |
Accounts Payable and Accruals – Selling and Marketing | 326,586 | 3,955,543 | $ 328,629 |
Accrued Make-whole Payments on Convertible Preferred Stock (see Note 8) | 233,077 | 337,500 | |
Executive Compensation and Directors’ Fees Payable | 236,547 | 205,943 | |
Total | $ 7,622,479 | $ 8,034,122 |
Accounts Payable and Accrued 81
Accounts Payable and Accrued Expenses (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
Payables and Accruals [Abstract] | ||||
Gain on extinguishment of debt | $ 327,839 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 12 Months Ended | ||||
Nov. 16, 2012 | Jul. 31, 2012 | Jul. 31, 2011 | May. 20, 2011 | Jul. 20, 2001 | |
Shares of CBI owned by former business associate | 50.00% | ||||
Shares of CBI owned by Company | 50.00% | ||||
Termination Of Employee | |||||
Value of damages sought | $ 7,000,000 | ||||
Counterclaim proceeding | $ 2,300,000 | ||||
Lawsuit filing date | 20-May-11 | ||||
Name of Plaintiff | Ms. Perri | ||||
Breach of contract and detinue | |||||
Value of damages sought | $ 550,000 | ||||
Counterclaim proceeding | $ 200,000 | ||||
Lawsuit filing date | 1-Jun-11 | ||||
Name of Plaintiff | Golden Bull Estates | ||||
Punitive Damages | |||||
Value of damages sought | $ 50,000 | ||||
Damages for Unpaid Invoices | |||||
Value of damages sought | $ 429,000 | ||||
Lawsuit filing date | 31-Dec-11 | ||||
Name of Plaintiff | Vendor | ||||
Settlement of litigation | $ 125,000 | ||||
Interest per annum, failure to pay settlement | 3.00% | 3.00% | |||
Fixed cost per annum, failure to pay settlement | $ 25,000 | $ 25,000 |
Net Income (Loss) Per Share (83
Net Income (Loss) Per Share (EPS) (Details Narrative) - shares | 9 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Accounting Policies [Abstract] | ||
Incremental shares | 306,666,176 | 357,628,977 |
Stockholders_ Deficiency - Stoc
Stockholders’ Deficiency - Stockholders’ deficiency transactions (Details) - Class Of Stock Domain - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Issuance of common stock for services, Amount | $ 286,780 | $ 392,422 | $ 699,445 | ||||
Exercise of employee stock options, Amount | 526 | 5,180 | 1,300 | ||||
Net loss for six months ended | $ 1,396,157 | $ (270,923) | $ 1,858,450 | $ 2,385,273 | $ 1,417 | $ 8,554,322 | $ 9,490,278 |
Currency translation adjustment | 21,862 | ||||||
Stockholders' Deficiency | $ (7,721,676) | ||||||
Common Stock | |||||||
Issuance of common stock on conversion of convertible preferred stock, Shares | 12,897,668 | ||||||
Issuance of common stock on conversion of convertible preferred stock, Amount | $ 12,892 | ||||||
Issuance of common stock as make-whole payments on convertible preferred stock, Shares | 5,187,021 | ||||||
Issuance of common stock as make-whole payments on convertible preferred stock, Amount | $ 5,187 | ||||||
Issuance of common stock for services, Shares | 3,470,513 | ||||||
Issuance of common stock for services, Amount | $ 3,471 | ||||||
Exercise of employee stock options, Shares | 6,416,316 | ||||||
Exercise of employee stock options, Amount | $ 6,416 | ||||||
Total, Shares | 806,477,610 | ||||||
Total, Amount | $ 806,477 | ||||||
Additional Paid-In Capital | |||||||
Issuance of common stock on conversion of convertible preferred stock, Amount | (12,892) | ||||||
Issuance of common stock as make-whole payments on convertible preferred stock, Amount | 99,235 | ||||||
Issuance of common stock for services, Amount | $ 90,841 | ||||||
Exercise of employee stock options, Amount | |||||||
Total, Amount | $ 362,484,862 | ||||||
Change to Stockholders Equity | |||||||
Issuance of common stock on conversion of convertible preferred stock, Amount | |||||||
Issuance of common stock as make-whole payments on convertible preferred stock, Amount | $ 104,423 | ||||||
Issuance of common stock for services, Amount | 94,311 | ||||||
Exercise of employee stock options, Amount | $ 6,416 |
Stockholders_ Deficiency - Acco
Stockholders’ Deficiency - Accounting allocation of initial proceeds (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 27, 2014 | Jan. 31, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Net proceeds | $ 2,770,000 | $ 2,655,000 | $ 2,615,000 | $ 1,975,000 | |||
Deemed dividend | (2,058,329) | (1,722,474) | $ (376,746) | ||||
Series E Convertible Preferred Stock | |||||||
Net proceeds | $ 750,000 | $ 750,000 | 1,165,000 | ||||
Derivative warrant liability fair value | (942,279) | (942,279) | (1,189,744) | ||||
Derivative additional investment rights fair value | (1,264,683) | ||||||
Other issuance costs (finders' fee) | (64,000) | ||||||
Make whole payments liability | (216,000) | (216,000) | (330,750) | ||||
Deemed dividend | $ (472,279) | (472,279) | $ (1,620,177) | ||||
Series F Convertible Preferred Stock | |||||||
Net proceeds | $ 2,020,000 | 2,020,000 | 2,020,000 | ||||
Derivative warrant liability fair value | (2,016,064) | (2,016,064) | |||||
Derivative additional investment rights fair value | (863,735) | (863,735) | |||||
Other issuance costs (finders' fee) | (166,000) | ||||||
Make whole payments liability | (560,250) | (560,250) | |||||
Deemed dividend | $ (1,586,050) | $ (1,586,050) |
Stockholders' (Deficiency) (Det
Stockholders' (Deficiency) (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Apr. 30, 2015 | Jul. 31, 2014 | Apr. 30, 2014 | Jul. 31, 2013 | |
Common stock issued, or committed to issue, Shares | 3,470,513 | 778,512,092 | 580,329,160 | |
Common stock issued, or committed to issue, Amount | $ 806,477 | $ 778,512 | $ 778,512 | $ 580,329 |
Common stock, value per share | $ 0.001 | $ 0.001 | $ .001 | |
Conversion of shares of Series E, Convertible Preferred Stock | 40,833,335 | |||
Warrants Outstanding | 239,788,852 | 257,331,254 | ||
Outstanding warrants, weighted average exercise price | $ .085 | |||
Outstanding warrants, weighted average remaining life (in years) | 3 years 3 months 6 days | |||
Number of warrants, exercise price | $ 0.03 | $ .03 | $ 0.03 | |
Series F Convertible Preferred Stock | ||||
Conversion of shares of Series F, Convertible Preferred Stock | 387 | |||
Make-Whole Dividend Payments | ||||
Common stock issued, or committed to issue, Shares | 5,187,021 | |||
Upon Exercise Of Options | ||||
Common stock issued, or committed to issue, Shares | 6,416 | |||
Common stock issued, or committed to issue, Amount | $ 6,416,316 | |||
Common stock, value per share | $ 0.001 | |||
Cash proceeds | $ 542 | |||
Warrants Outstanding, Exercise price $0.84 | ||||
Total Warrants Outstanding, Shares | 17,542,402 | |||
Outstanding warrants, weighted average exercise price | $ 0.03 | |||
Outstanding warrants, weighted average remaining life (in years) | 2 years 8 months | |||
Warrants Outstanding, Exercise Price $0.03 | ||||
Total Warrants Outstanding, Shares | 239,788,852 | |||
Outstanding warrants, weighted average exercise price | $ 0.03 | |||
Derivative Warrant Liability | ||||
Warrants, Total | $ 2,689,240 | |||
Total Warrants Outstanding, Shares | 239,788,852 |
Stockholders_ Deficiency (Detai
Stockholders’ Deficiency (Details Narrative 2) - USD ($) | Jan. 19, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 27, 2014 | Jan. 31, 2014 | Jun. 17, 2013 | Apr. 30, 2015 | Apr. 30, 2014 | Jun. 17, 2017 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Jun. 17, 2016 | Jun. 17, 2016 | Jan. 14, 2014 |
Net proceeds from financing | $ 2,770,000 | $ 2,655,000 | $ 2,615,000 | $ 1,975,000 | |||||||||||
Shares of common stock | $ 806,477 | $ 778,512 | 778,512 | $ 580,329 | |||||||||||
Accounts payable and accrued expenses | $ 7,622,479 | $ 8,034,122 | |||||||||||||
Series E Convertible Preferred Stock | |||||||||||||||
Convertible preferred stock, shares authorized | 2,450 | 2,450 | 2,450 | ||||||||||||
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | 9.00% | ||||||||||||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||||||
Convertible preferred stock, shares issued | 25 | 25 | 930 | ||||||||||||
Common stock issued upon conversion of preferred stock | 66,666,666 | ||||||||||||||
Common stock issued as "make-whole payments" on conversions of preferred stock | 18,585,193 | ||||||||||||||
Convertible preferred stock conversion price | $ 0.03 | ||||||||||||||
Net proceeds from financing | $ 750,000 | $ 750,000 | $ 1,165,000 | ||||||||||||
Conversion of preferred stock | 2,025 | ||||||||||||||
Conversion of stock, amount converted | 2,000 | ||||||||||||||
Warrants issued to investors | 26,666,668 | 40,833,335 | |||||||||||||
Initial "Make-whole payments" | 216,000 | ||||||||||||||
"Make-whole payments", value | $ 6,750 | ||||||||||||||
Series F Convertible Preferred Stock | |||||||||||||||
Convertible preferred stock, shares authorized | 4,150 | 4,150 | 4,150 | 0 | |||||||||||
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | 9.00% | ||||||||||||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | |||||||||||
Convertible preferred stock, shares issued | 2,075 | 838 | 1,225 | 0 | |||||||||||
Common stock issued upon conversion of preferred stock | 69,166,667 | 41,224,999 | |||||||||||||
Common stock issued as "make-whole payments" on conversions of preferred stock | 13,048,644 | ||||||||||||||
Convertible preferred stock conversion price | $ 0.03 | ||||||||||||||
Net proceeds from financing | $ 2,020,000 | $ 2,020,000 | $ 2,020,000 | ||||||||||||
Preferred stock, dividend rate percentage | 3.00% | ||||||||||||||
Conversion of stock, amount converted | 1,237 | ||||||||||||||
Warrants issued to investors | 69,166,667 | ||||||||||||||
Aggregate subscription amount, maximum | $ 2,075,000 | ||||||||||||||
Initial "Make-whole payments" | 560,250 | ||||||||||||||
"Make-whole payments", value | $ 233,078 | ||||||||||||||
Series E Convertible Preferred Stock | |||||||||||||||
Convertible preferred stock, shares authorized | 2,450 | 2,450 | |||||||||||||
Convertible preferred stock, cumulative percentage of interest | 9.00% | 9.00% | |||||||||||||
Convertible preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | |||||||||||||
Convertible preferred stock, shares issued | 1,225 | 1,225 | |||||||||||||
Common shares attributable to conversion of preferred stock | 40,833,335 | 40,833,335 | |||||||||||||
Common stock issued upon conversion of preferred stock | 9,833,334 | ||||||||||||||
Common stock issued as "make-whole payments" on conversions of preferred stock | 2,654,999 | ||||||||||||||
Convertible preferred stock conversion price | $ 0.03 | ||||||||||||||
Net proceeds from financing | $ 1,165,000 | $ 1,165,000 | |||||||||||||
Common stock, effective conversion price | $ .03 | $ 0.03 | |||||||||||||
Preferred stock, dividend rate percentage | 3.00% | 9.00% | 9.00% | ||||||||||||
Conversion of preferred stock | $ 800 | $ 295 | $ 270 | $ 270 | |||||||||||
Conversion of stock, amount converted | $ 1,000 | $ 1,000 | |||||||||||||
Warrants issued to investors | 26,666,668 | 40,833,335 | |||||||||||||
Aggregate subscription amount, maximum | $ 1,225,000 | ||||||||||||||
"Make-whole payments", value | $ 330,750 | ||||||||||||||
Accounts payable and accrued expenses | $ 251,100 | ||||||||||||||
Series E Convertible Preferred Stock | |||||||||||||||
Convertible preferred stock, cumulative percentage of interest | 9.00% | ||||||||||||||
Convertible preferred shares sold | 800 |
Derivative Liabilities - Deriva
Derivative Liabilities - Derivative warrant liability (Details) - USD ($) | 9 Months Ended | 12 Months Ended | 24 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | |
Balance - Derivative warrant liability Value | $ 2,635,643 | $ 5,234,293 | $ 5,234,293 | ||
No. of Warrants - Derivative warrant liability | 239,788,852 | 220,687,537 | 220,687,537 | ||
Exercise of Warrants | $ (2,194,496) | $ (5,629,130) | $ (2,194,496) | ||
Warrants Exercised | (76,732,020) | (145,888,421) | (76,732,020) | ||
Increase (Decrease) in fair value of derivative warrant liability | $ 53,597 | $ 298,370 | $ (3,362,497) | $ (3,279,650) | $ (3,362,497) |
Balance - Derivative warrant liability Value | $ 2,689,240 | $ 2,635,643 | $ 5,234,293 | $ 2,635,643 | |
No. of Warrants - Derivative warrant liability | 239,788,852 | 239,788,852 | 220,687,537 | 239,788,852 | |
January 2,014 | |||||
Additional warrants issued | $ 942,279 | ||||
Warrants Issued | 26,666,668 | ||||
March 2,014 | |||||
Additional warrants issued | $ 2,016,064 | $ 2,016,064 | |||
Warrants Issued | 69,166,667 | 69,166,667 |
Derivative Liabilities - Fair v
Derivative Liabilities - Fair value assumptions, derivative warrant liability (Details) - $ / shares | Apr. 30, 2015 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jun. 04, 2013 | Mar. 05, 2013 | Feb. 05, 2013 | Jun. 06, 2012 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||
Current exercise price | $ 0.03 | $ .03 | $ .03 | $ 0.03 | ||||
Time to expiration | 2 years 7 months | 3 years 3 months | 3 years 6 months 18 days | 3 years 6 months | ||||
Risk-free interest rate | 0.91% | 1.02% | 1.02% | 0.49% | ||||
Estimated volatility | 79.00% | 80.00% | 80.00% | 85.00% | ||||
Dividend | 0.00% | 0.00% | 0.00% | 0.00% | ||||
Stock price at period end date | $ 0.0225 | $ .021 | $ .021 | $ .035 | $ .0325 | $ .034 | $ .038 | $ .0925 |
Derivative Liabilities - Fair90
Derivative Liabilities - Fair value assumptions, derivative additional investment rights liability (Details) - $ / shares | Apr. 30, 2015 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jun. 04, 2013 | Mar. 05, 2013 | Feb. 05, 2013 | Jun. 06, 2012 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||
Underlying number of units of convertible preferred stock | 2,075 | |||||||
Underlying number of units of warrants | 69,166,667 | |||||||
Current exercise price of warrants | $ 0.03 | $ .03 | $ .03 | $ 0.03 | ||||
Current conversion price of preferred stock | $ 0.03 | |||||||
Time to expiration | 7 months 24 days | |||||||
Risk-free interest rate | 0.0009 | |||||||
Estimated volatility | 0.61 | |||||||
Dividend | 0.00% | 0.00% | 0.00% | 0.00% | ||||
Stock price at period end date | $ 0.0225 | $ .021 | $ .021 | $ .035 | $ .0325 | $ .034 | $ .038 | $ .0925 |
Income from Assets Held for I91
Income from Assets Held for Investment, net (Details Narrative) - USD ($) | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||||||||
Aug. 31, 2013 | Aug. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jul. 31, 2012 | Aug. 31, 2011 | Apr. 30, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 30, 2012 | |
Notes to Financial Statements | |||||||||||
Gross proceeds from sale of real estate | $ 883,780 | $ 883,780 | $ 256,835 | $ 1,579,189 | $ 342,862 | $ 1,669,115 | $ 2,865,682 | $ 7,847 | $ 221,399 | $ 384,299 | |
Property, net book value | 694,911 | 694,911 | 169,566 | 585,064 | 1,029,435 | 1,783,932 | 0 | 640,772 | $ 107,203 | ||
Gain on sale of real estate | 188,869 | 188,869 | 87,682 | 994,125 | $ 235,659 | 639,680 | 1,081,750 | ||||
Partial discharge of mortgage | 606,806 | 606,806 | 216,810 | ||||||||
Legal fees, interest, penalties from sale of real estate, approximation | 73,628 | 73,628 | 13,000 | ||||||||
Net proceeds from sale of real estate | $ 203,346 | $ 203,346 | $ 27,025 | $ 1,028,780 | $ 1,009,827 | $ 2,190,952 | $ 188,869 | $ 1,081,807 | $ 1,957,089 |
Uncategorized Items - gnbt-2014
Label | Element | Value |
Class of Warrant or Right, Exercise Price of Warrants or Rights | us-gaap_ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 | $ 0.062 |
Exercis Price 0.39 to 0.58 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice | $ 0.56 |
Outstanding options | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | 200,000 |
Exercise Price 0.001 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice | $ .001 |
Outstanding options | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | 32,799,390 |
Exercise Price 0.19 to 0.38 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice | $ 0.285 |
Outstanding options | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | 3,100,000 |
Exercise Price 0.59 to 0.77 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice | $ .633 |
Outstanding options | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | 1,470,000 |
Exercise Price 0.78 to 0.96 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice | $ .94 |
Outstanding options | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | 395,000 |
Options Held [Member] | ||
Outstanding options | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | 30,333,074 |
Outstanding options | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | 37,964,390 |
Aggregate Intrinsic Vaalue | ||
Outstanding options | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | 567,236 |
Weighted Average Exercise Price per Share | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice | $ 0.048 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice | 0.061 |
Warrants Outstanding, Exercise price $0.84 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | us-gaap_ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 | 0.84 |
Warrants Outstanding, Exercise Price $0.03 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | us-gaap_ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 | $ 0.03 |