Perpetual Industries (PRPI) 10-K 12 Nov 14 2014 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Jul. 31, 2014	Jan. 31, 2014
Document and Entity Information:	'	'
Entity Registrant Name	'Perpetual Industries Inc.	'
Document Type	'10-K	'
Document Period End Date	31-Jul-14	'
Amendment Flag	'false	'
Entity Central Index Key	'0001395445	'
Current Fiscal Year End Date	'--07-31	'
Entity Common Stock, Shares Outstanding	'	32,470,000
Entity Filer Category	'Smaller Reporting Company	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'FY	'
Entity Public Float	'	$7,858,000

Perpetual_Industries_Inc_Balan

Perpetual Industries Inc. - Balance Sheets (USD $)	Jul. 30, 2014		Jul. 31, 2013
Current Assets	'		'
Cash	$32,117		$30,348
Accounts Receivable, current	535		535
Total Current Assets	32,652		30,883
Equipment, Net of Accumulated Depreciation	3,406		5,150
Total Assets	36,058		36,033
Liabilities and Stockholders' Equity (Deficit)	'		'
Accounts payable, current	151,653	[1]	134,649	[1]
Accrued expenses, current	1,330,140	[2]	1,125,052	[2]
Deferred revenue, current	'		23,775
Other current liabilities	64,016		65,583
Total Current Liabilities	1,545,809		1,349,059
Long term liabilities	110,000		'
Total liabilities	1,655,809		1,349,059
Stockholders' Equity (Deficit)	'		'
Common Stock	33,123	[3]	32,471	[3]
Capital in excess of par value	5,045,258		4,605,702
Accumulated deficit	-6,698,132		-5,951,199
Total Stockholders' Equity (Deficit)	-1,619,751		-1,313,026
Total Liabilities and Stockholders' Equity (Deficit)	$36,058		$36,033
[1]	including related party balances of approximately $150,000 and $123,000 at July 31, 2014 and July 31, 2013, respectively.
[2]	including related party balances of approximately $1,113,000 and $930,000 at July 31, 2014 and July 31, 2013, respectively.
[3]	$0.001 par value, 100,000,000 shares authorized, 33,122,000 and 32,470,000 shares issued and outstanding at July 31, 2014 and July 31, 2013 respectively.

Perpetual_Industries_Inc_Balan1

Perpetual Industries Inc. - Balance Sheets- Parenthetical (USD $)	Jul. 31, 2014	Jul. 31, 2013
Statement of Financial Position	'	'
Common Stock, Par Value	$0.00	$0.00
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares Issued	33,122,000	32,470,000
Common Stock, Shares Outstanding	33,122,000	32,470,000

Perpetual_Industries_Inc_State

Perpetual Industries Inc. - Statements of Operations (USD $)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Income Statement	'	'
Revenues	$157,212	$92,024
Operating Expenses	'	'
Related party expenses	-345,926	-524,761
Other operating expenses	-310,273	-350,294
Total operating expenses	-656,199	-875,055
Operating loss	-498,987	-781,031
Other Income (Expense)	'	'
Interest income, related party	-906	35,771
Interest expense, related party	-52,525	-41,949
Interest expense, non-related party	-4,933	'
Warrant issuance expense	-184,408	-1,069,816
Derivative income	'	587,531
Other	-5,174	-4,791
Net Loss	($746,933)	($1,276,285)
Basic and Diluted Loss Per Share	($0.02)	($0.04)
Basic and Diluted Weighted Average Common Shares Outstanding	32,660,696	30,648,763

Perpetual_Industries_Inc_State1

Perpetual Industries Inc. - Statements of Changes in Stockholders' Equity (Deficit) (USD $)	Common Stock	Capital In Excess Of Par Value	Common Stock Payable	Accumulated Deficit	Total
Balance, Value at Jul. 31, 2012	$29,252	$2,548,555	$638,400	($4,674,914)	($1,458,707)
Balance, Shares at Jul. 31, 2012	29,251,500	'	'	'	'
Common stock repurchased and cancelled, Value	-20	-5,980	'	'	-6,000
Cash received for common stock payable	'	'	210,000	'	210,000
Shares issued in satisfaction of common stock payable, Value	2,828	845,572	-848,400	'	'
Shares issued in satisfaction of common stock payable, Shares	2,828,000	'	'	'	'
Shares issued for compensation to securities attorney, Value	161	47,989	'	'	48,150
Shares issued for compensation to securities attorney, Shares	160,500	'	'	'	'
Shares issued via warrant exercise, Value	250	99,750	'	'	100,000
Shares issued via warrant exercise, Shares	250,000	'	'	'	'
Warrants issued	'	1,069,816	'	'	1,069,816
Net Loss	'	'	'	-1,276,285	-1,276,285
Balance, Value at Jul. 31, 2013	32,471	4,605,702	'	-5,951,199	-1,313,026
Balance, Shares at Jul. 31, 2013	32,470,000	'	'	'	'
Shares issued via warrant exercise, Value	602	240,198	'	'	240,800
Shares issued via warrant exercise, Shares	602,000	'	'	'	'
Warrants issued	'	184,408	'	'	184,408
Net Loss	'	'	'	-746,933	-746,933
Shares issued for compensation to transfer agent, Value	50	14,950	'	'	15,000
Shares issued for compensation to transfer agent, Shares	50,000	'	'	'	'
Balance, Value at Jul. 31, 2014	$33,123	$5,045,258	'	($6,698,132)	($1,619,751)
Balance, Shares at Jul. 31, 2014	33,122,000	'	'	'	'

Perpetual_Industries_Inc_State2

Perpetual Industries Inc. - Statements of Cash Flows (USD $)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Cash flows from Operating Activities:	'	'
Net Loss	($746,933)	($1,276,285)
Adjustments to reconcile net loss to net cash (used) provided in operating activities:	'	'
Depreciation	1,743	4,579
Issuance of warrants	184,408	1,069,816
Change in fair value of derivative liability	'	-587,531
Stock compensation	15,000	48,150
Accounts receivable, (increase) decrease	'	19,938
Accounts payable, increase (decrease)	26,999	62,928
Accrued expenses, increase (decrease)	205,087	242,396
Deferred revenue- current, increase (decrease)	-23,775	17,453
Other liabilities, increase (decrease)	-1,560	4,764
Net cash flows used in operating activities	-339,031	-393,792
Cash Flows Provided by Financing Activities:	'	'
Proceeds from notes payable	100,000	'
Proceeds from increases to common stock payable	'	210,000
Proceeds from exercise of warrants	240,800	'
Repurchase and cancellation of common stock	'	-6,000
Net cash flows provided by financing activities	340,800	204,000
Net change in cash	1,769	-189,792
Cash, beginning of period	30,348	220,140
Cash, end of period	32,117	30,348
Supplemental Disclosures of Cash Flow Information	'the company has not paid any income taxes or interest since its inception. see the accompanying notes to financials.	'
Non-cash Investing and Financing Activities:	'	'
Common stock shares issued, stock payable	0	848,400
Common stock shares issued, stock payable, shares	0	2,828,000
Common stock shares issued from warrant exercise	$0	$100,000
Common stock shares issued from warrant exercise, shares	0	250,000

Note_1_Basis_of_Presentation_a

Note 1- Basis of Presentation and Background Information	12 Months Ended
	Jul. 31, 2014
Notes	'
Note 1- Basis of Presentation and Background Information	'
	Note 1- Basis of Presentation and Background Information
	Nature of Operations
	Perpetual Industries Inc. (the “Company”) was incorporated under the laws of Nevada in January 2005. The Company coordinates research and development activities aimed at bringing new technology to market. At present, the Company's feature technology is the internationally patented XYO mechanical balancing system (“XYO”). On January 26, 2005, the Company acquired a license from a related party for the worldwide, exclusive right to manufacture or have manufactured, sell, and use the products incorporating XYO, and to sublicense these rights to third parties.
	The Company has not commenced its principal operations, and its present condition is characterized by significant expenditures on obtaining the rights to XYO, on preliminary sublicensing and marketing efforts, and on coordinating the development of products that contain XYO. The accompanying financial statements do not reflect the Company's planned principal operations, in which the focus is intended to continue to shift more heavily onto the sublicensing, manufacturing, and marketing of XYO, and to diversification into other technologies.
	The Company's corporate office is located in Calgary, Alberta.

Note_2_Going_Concern

Note 2 - Going Concern	12 Months Ended
	Jul. 31, 2014
Notes	'
Note 2 - Going Concern	'
	Note 2 – Going Concern
	As shown in the accompanying financial statements, the Company has negative working capital, has cash used in operations of $339,031 for the year ended July 31, 2014, and an accumulated deficit, i.e. an overall loss since inception. While the Company’s current principal business activities are to coordinate the research and development of products that feature the internationally patented XYO mechanical balancing system and to market these products, there can be no assurance that the Company will be able to successfully develop or operate a business using this concept.
	The accompanying financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to carry out its planned principal operations and maintain a certain level of profitability. The Company intends to finance its future activities and working capital needs primarily from the sale of equity securities and ongoing sub-licensing efforts.

Note_3a_Summary_of_Significant

Note 3a - Summary of Significant Accounting Policies	12 Months Ended
	Jul. 31, 2014
Notes	'
Note 3a - Summary of Significant Accounting Policies	'
	Note 3a - Summary of Significant Accounting Policies
	Cash
	The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts.
	Use of Estimates
	The preparation of the 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 the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
	Accounts Receivable
	Financial instruments that potentially subject the Company to concentrations of credit risk consist mainly of accounts receivable. Accounts receivable consist of receivables from revenue earned for entering into license agreements and prototype evaluation agreements with potential licensees.
	The Company records an allowance for doubtful accounts to allow for any amounts that may not be recoverable, which is based on an analysis of the Company’s prior collection experience, customer creditworthiness, and current economic trends. Based on management’s review of accounts receivable, an allowance for doubtful accounts is not considered necessary at July 31, 2014 and 2013. The Company determines receivables to be past due based on the payment terms of original invoices. Interest is not typically charged on past due receivables.
	Loan Receivable
	Loan receivable is stated at the unpaid principal balance, less an allowance for loan losses. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. The Company records an allowance for loan losses to allow for any amounts that may not be recoverable, which is based on the Company’s evaluation of the collectability of the loan including current economic conditions and adverse situations that may affect the borrower’s ability to repay. An allowance for uncollectible interest is established by a charge to interest income. Based on management’s review of loan and interest receivable, an allowance for loan and interest losses was considered necessary at July 31, 2010 for $809,245. The carrying balance of the loan receivable net of allowance was zero at July 31, 2014 and 2013.
	Fair Value of Financial Instruments
	The fair value of financial instruments classified as current liabilities, including accounts payable, accrued expenses and other current liabilities approximate carrying value, principally because of the short maturity of those items. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market 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 fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows:
	Level I—Unadjusted quoted prices in active markets for identical assets or liabilities;
	Level II—Inputs other than quoted prices included within Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and
	Level III—Unobservable inputs that are supported by little or no market activity for the related assets or liabilities.
	The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
	The Company’s derivative financial instruments consist of warrants, which are recorded in the accompanying balance sheets at fair value. Fair value is estimated using the Black-Scholes option valuation technique, utilizing Level II inputs. The observable inputs include the exercise price of the warrants, the treasury yield curve, the Company’s common stock price and the expected volatility, which is based on the average volatilities of five similar public entities. Option-based techniques are highly volatile and sensitive to changes in the Company’s trading market price and the trading market price of various peer companies, which historically have high volatility. Gains or losses resulting from changes in the fair value of derivative financial instruments are included in derivative income (expense) in the accompanying statements of operations.
	Income Taxes
	Deferred taxes are provided on the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax laws and rates is recognized as income in the period that included the enactment date.
	On January 1, 2007, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 740-10, “Uncertainty in Income Taxes” (“ASC Topic 740-10”). The Company has not recognized a liability as a result of the implementation of ASC Topic 740-10.
	A reconciliation of the beginning and ending amount of unrecognized tax benefits has not been provided since there are no unrecognized benefits at July 31, 2014 and 2013 and since the date of adoption. The Company has not recognized interest expense or penalties as a result of the implementation of ASC Topic 740-10. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to the unrecognized tax benefit in interest expense and penalties in operating expenses. The Company is subject to examination by the Internal Revenue Service and state tax authorities for all tax years since Inception.
	The Company has not filed any U.S. or Canadian income or other tax returns. Had the returns been filed there would be taxable losses and tax losses available to offset future taxable income. The Company has not determined the amount of the potential benefits for these tax losses, because at this time it is more likely than not that the benefits will not be realized. See further comments in Note 10.
	Equipment
	Equipment is recorded at cost. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, ranging generally from three to five years. Maintenance and repairs are charged to operations when incurred. Betterments and renewals are capitalized. When property and equipment are sold or otherwise disposed of, the asset account and related accumulated depreciation account are relieved, and any gain or loss is included in operations. Depreciation expense for the years ended July 31, 2014 and 2013 amounted to approximately $1,700 and $4,600, respectively.
	Impairment of Long-Lived Assets
	The Company evaluates the recoverability of its long-lived assets or asset groups whenever adverse events or changes in business climate indicate that the expected undiscounted future cash flows from the related assets may be less than previously anticipated. If the net book value of the related assets were to exceed the undiscounted future cash flows of the assets, the carrying amount would be reduced to the present value of their expected future cash flows and an impairment loss would be recognized. There have been no impairment losses in any of the periods presented.
	Advertising and Marketing
	The Company expenses advertising and marketing costs as they are incurred. Advertising and marketing expenses for the years ended July 31, 2014 and 2013 were approximately $84,900 and $202,000, respectively.
	Foreign Currencies
	The Company determined that its functional currency is the United States dollar since the U.S. dollar is the currency of the environment in which the Company primarily generates and expends cash. Foreign currency transaction gains and losses represent gains and losses resulting from transactions entered into in a currency other than the functional currency of the Company. These transaction gains and losses are included in results of operations and total losses of approximately $5,200 and $4,800 for the years ended July 31, 2014 and 2013, respectively.
	Revenue Recognition
	The Company recognizes revenue when all of the following conditions are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, there is a fixed or determinable sales price, and collectability is reasonably assured. Deferred revenue arises from amounts received from potential and actual licensees prior to services being provided and is being amortized to income as it is earned. Certain of these revenues are categorized as noncurrent due to the length of the contract.
	Loss Per Share
	Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the periods presented. Diluted loss per share is computed by dividing net loss by the weighted average common shares and potentially dilutive common share equivalents. The effects of potential common stock equivalents are not included in computations when their effect is anti-dilutive.
	Because of the net losses for all periods presented, the basic and diluted weighted average shares outstanding are the same since including the additional shares would have an anti-dilutive effect on the loss per share calculations. Common stock warrants to purchase 15,907,500 and 14,440,500 shares of common stock for the years ended July 31, 2014 and 2013, respectively, were not included in the computation of diluted weighted average common shares outstanding.
	Stock
	The Company issues shares of its common stock in tranches once the Board of Directors accepts the tranche of stock subscribers. During the years ended July 31, 2014 and 2013, 652,000 and 3,218,500 shares, respectively, were issued for cash or services received. There was no common stock payable as of July 31, 2014 and 2013.

Note_3b_Impact_of_Recently_Iss

Note 3b - Impact of Recently Issued Accounting Standards	12 Months Ended
	Jul. 31, 2014
Notes	'
Note 3b - Impact of Recently Issued Accounting Standards	'
	Note 3b - Impact of Recently Issued Accounting Standards
	Other than as listed below, we do not believe that any accounting pronouncements recently issued by the FASB, the AICPA, and the SEC, would if adopted have a material effect on our present or future financial statements.
	Accounting Standards Update No. 2014-09
	In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09").  The new standard will supersede nearly all existing revenue recognition guidance. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, the standard creates a five step model that requires a company to exercise judgment when considering the terms of the contracts and all relevant facts and circumstances. The five steps require a company to identify customer contracts, identify the separate performance obligations, determine the transaction price, allocate the transaction price to the separate performance obligations and recognize revenue when each performance obligation is satisfied. The standard is effective for public entities for annual and interim periods beginning after December 15, 2016. The standard allows for either full retrospective adoption, where the standard is applied to all periods presented, or modified retrospective adoption where the standard is applied only to the most current period presented in the financial statements. Early adoption is not permitted. The Company is currently evaluating the impact of this standard on the Company's results of operations and financial position.
	Accounting Standards Update No. 2014-10
	In June 2014, the FASB issued Accounting Standards Update No. 2014-10, “Development Stage Entities (Topic 915) Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”.  This ASU does the following among other things: a) eliminates the requirement to present inception-to-date information on the statements of income, cash flows, and shareholders’ equity, b) eliminates the need to label the financial statements as those of a development stage entity, c) eliminates the need to disclose a description of the development stage activities in which the entity is engaged, and d) amends FASB ASC 275, Risks and Uncertainties, to clarify that information on risks and uncertainties for entities that have not commenced planned principal operations is required.  The amendments in ASU No. 2014-10 related to the elimination of Topic 915 disclosures and the additional disclosure for Topic 275 are effective for public companies for annual and interim reporting periods beginning after December 15, 2014. Early adoption is permitted.  The Company has evaluated this ASU and determined that we will early adopt beginning with the year ending July 31, 2014.
	Accounting Standards Update No. 2014-15
	In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently assessing the impact the adoption of ASU 2014-15 will have on its financial statements.
	Emerging Growth Company
	We are an emerging growth company under the JOBS Act. We shall continue to be deemed an emerging growth company until the earliest of:
	(a)                 the last day of the fiscal year of the issuer during which it had total annual gross revenues of $1,000,000,000 (as such amount is indexed for inflation every 5 years by the Commission to reflect the change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics, setting the threshold to the nearest 1,000,000) or more;
	(b)                 the last day of the fiscal year of the issuer following the fifth anniversary of the date of the first sale of common equity securities of the issuer pursuant to an effective IPO registration statement;
	(c)                 the date on which such issuer has, during the previous 3-year period, issued more than $1,000,000,000 in nonconvertible debt; or
	(d)                 the date on which such issuer is deemed to be a ‘large accelerated filer’, as defined in section 240.12b-2 of title 17, Code of Federal Regulations, or any successor thereto.’
	As an emerging growth company we are exempt from Section 404(b) of Sarbanes Oxley. Section 404(a) requires Issuers to publish information in their annual reports concerning the scope and adequacy of the internal control structure and procedures for financial reporting. This statement shall also assess the effectiveness of such internal controls and procedures. Section 404(b) requires that the registered accounting firm shall, in the same report, attest to and report on the assessment on the effectiveness of the internal control structure and procedures for financial reporting. As an emerging growth company we are also exempt from Section 14A (a) and (b) of the Securities Exchange Act of 1934 which require the shareholder approval of executive compensation and golden parachutes. These exemptions are also available to us as a Smaller Reporting Company.
	We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(2) of the JOBS Act, that allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.

Note_4_Loan_Receivable_and_Lea

Note 4 - Loan Receivable and Lease Obligation	12 Months Ended
	Jul. 31, 2014
Notes	'
Note 4 - Loan Receivable and Lease Obligation	'
	Note 4 - Loan Receivable and Lease Obligation
	During the period January 25, 2005 (Inception) through January 1, 2010, the Company advanced funds to a limited liability company that has been identified as a Variable Interest Entity (“VIE”). These funds supported the operations of this VIE, which are to research and develop products that feature XYO and to market these products. The Company holds a note for these advances and the uncollected interest due, which calls for 9% interest per annum and has a maturity date of August 31, 2012 and is currently in default. In addition to the advancement of funds, the Company continues to have two other forms of involvement with the above VIE. The Company incurred marketing expenses for the years ended July 31, 2014 and 2013 totalling approximately $2,400 and $158,200, respectively, for services performed by the VIE. In this regard there was no balance owing to the VIE at July 31, 2014 and 2013. The Company also leases its offices from the above VIE. The terms of the lease call for monthly rent of $3,000 through March 31, 2015. The Company’s involvement with this VIE is limited to the aforementioned transactions.
	Management has determined that although the above transactions created a variable interest in this entity, the Company is not the VIE’s primary beneficiary and, as such, the Company is not required to consolidate the financial statements of the VIE. In determining that it is not the primary beneficiary, the Company considered the VIE’s equity and voting interests, the percentage of the Company’s variable interest compared to the total of all other variable interests as well as an analysis determining the bearer of any losses and the benefactor of any gains from the VIE.
	The maximum exposure to loss from this variable interest is limited to the collection of the loan receivable. The Company’s variable interest in the VIE amounted to $809,245 as of July 31, 2010 prior to the establishment of a full allowance on that date. Factors considered in establishing the allowance included the current financial condition of the VIE coupled with the fact that the loan is not guaranteed and has no liquidation preference. The carrying amounts on the balance sheets as of July 31, 2014 and 2013 are zero, net of allowances.
	Total rent expense for the years ended July 31, 2014 and 2013 was approximately $33,600 and $35,800, respectively. The future rent obligations under this lease will require approximately $24,000 for the year ended July 31, 2015. Since February 2012, the Company’s rent obligations have been met by recording the amount of rent expense as interest income in lieu of cash outlay, and this arrangement may continue.  However, during the last six months of the year, the Company paid the VIE’s landlord (the landowner) and the VIE’s utilities providers directly for an approximately $33,300 portion of the back rent and back utilities owed by the VIE. The Company therefore booked $33,600 rent as paid in cash for the year.

Note_5_Derivative_Instruments_

Note 5 - Derivative Instruments (warrants)	12 Months Ended
	Jul. 31, 2014
Notes	'
Note 5 - Derivative Instruments (warrants)	'
	Note 5 - Derivative Instruments (Warrants)
	The following table summarizes fair value measurements at July 31, 2014 and 2013 for assets and liabilities measured at fair value on a recurring basis:
		Level I	Level II	Level III	Total
	Derivative liabilities, July 31, 2014	$  —	$  —	$  —	$  —
	Derivative liabilities, July 31, 2013	$  —	$  —	$  —	$  —
	Since Inception, the Company issued 13,951,500 warrants with derivative features in connection with the issuance of 13,951,500 shares of common stock through various Private Placement Offerings. These warrants vested immediately upon grant date and have a two year exercise period. The warrants had fixed escalating exercise prices based on time elapsed from the date of grant, ranging from $0.30 to $0.50 per share for subscriptions before March 14, 2007, and from $0.40 to $0.60 per share for subscriptions after that date.
	The warrants were issued with an adjustment provision whereby the exercise price would be adjusted in the event of any of the following: the Company issues or sells any shares of common stock for a price less than the exercise price, the Company's shares of common stock outstanding are subdivided into greater or consolidated into fewer shares, or in the case of any capital reorganization. Therefore, in accordance with the guidance provided in FASB ASC 815-40-15-5 through 815-40-15-8, the Company accounted for these warrants as derivative liabilities.
	In accordance with the adjustment provision, the Company reduced the exercise price of warrants to the sale price of subsequent stock issuances, to an amount of $0.30.
	All changes in the fair value of these warrants are recognized in Statements of Operations until they are exercised or expire or are otherwise extinguished.
	As at July 31, 2014, no warrants with derivative features were outstanding. The Company estimated the fair value of the warrants that were outstanding at July 31, 2013 using the Black-Scholes option pricing model with the following assumptions:
		Year Ended July 31, 2013
	Expected life (in years)	0.04
	Expected dividend yield	0.00%
	Expected volatility (%)	2.8
	Risk free interest rate (%)	0.02
	The Company’s common stock has not been publicly traded; therefore historical volatility information is limited and considered not representative of the expected volatility. The Company identified similar public entities for which share and option price information was available, and considered the historical volatilities of those public entities’ share prices in calculating the estimate of the expected volatility appropriate to the Company (i.e. the calculated value).
	The risk-free rate of return reflects the interest rate for a United States Treasury Note with similar time-to-maturity to that of the warrants.
	The following summarizes information about warrants with derivative features outstanding as of July 31, 2013:
	Exercise Price	Number of Warrants	Remaining Life
	$0.30	2,069,000	0.04 Years
	The issuance of the above warrants resulted in a derivative liability that required re-measurement each reporting period. The following is a reconciliation of the derivative liability for the years ended July 31, 2014 and 2013:
		Balance as at July 31, 2012	587,531
		Decrease in value, year ended July 31, 2013	-587,531
			$              -
	As disclosed earlier in this Note, the exercise prices of the warrants with derivative features escalate over a period of two years. The following is a reconciliation of the number and weighted-average exercise prices for the warrants with derivative features, for the years ended July 31, 2014 and 2013:
			Warrants with Derivative Features
					Weighted Average Exercise Prices ($)
			Number of Shares
		Outstanding, July 31, 2012	13,951,500		0.3
		Granted	-		-
		Exercised	-		-
		Expired/Cancelled	11,882,500		0.3
		Outstanding, July 31, 2013	2,069,000		0.3
		Granted	-		-
		Exercised	-		-
		Expired/Cancelled	2,069,000		0.3
		Outstanding, July 31, 2014	-		-

Note_6_Nonderivative_Warrants

Note 6 - Non-derivative Warrants	12 Months Ended
	Jul. 31, 2014
Notes	'
Note 6 - Non-derivative Warrants	'
	Note 6 – Non-Derivative Warrants
	In the years ended July 31, 2014 and 2013, the Company issued 2,069,000 and 14,440,500 non-derivative warrants in connection with previous issuances of 2,069,000 and 14,440,500  shares of common stock, respectively. These warrants vest immediately upon grant date and have a two year exercise period. The warrants have fixed escalating exercise prices based on time elapsed from the date of grant, ranging from $0.30 to $0.50 per share for subscriptions before March 14, 2007, and from $0.40 to $0.60 per share for subscriptions after that date. The Company recorded $184,408 and $1,069,816 of expense, respectively, associated with these warrants at the time of issuance.
	The warrants were issued with an adjustment provision whereby the exercise price would be adjusted in the event of any of the following: the Company's shares of common stock outstanding are subdivided into greater or consolidated into fewer shares, or in the case of any capital reorganization.
	The following is a reconciliation of the number and weighted-average exercise prices for the warrants with non-derivative features:
			Warrants
					Weighted Average Exercise Price ($)
			Number of Shares
		Outstanding July 31, 2012	-		-
		Granted in year ended July 31, 2013	14,690,500		0.38
		Exercised in year ended July 31, 2013	-250,000		0.4
		Outstanding, July 31, 2013	14,440,500		0.38
		Granted August 15, 2013	2,069,000		0.4
		Exercised in year ended July 31, 2014	-602,000		0.4
		Outstanding, July 31, 2014	15,907,500		0.47
	The following summarizes information about warrants with non-derivative features outstanding as of July 31, 2014:
	Exercise Price	Number of Warrants	Remaining Life
	$0.50	2,451,000	0.54 Years
	$0.40	2,562,500	0.87 Years
	$0.50	8,825,000	0.87 Years
	$0.40	2,069,000	1.04 Years
	The Company estimated the fair value of the warrants issued during the periods using the Black-Scholes option pricing model with the following assumptions:
			Year Ended July 31, 2014	Year Ended July 31, 2013
		Expected life (in years)	2	2
		Expected dividend yield (%)	0	0
		Expected volatility (%)	81.3	79.7
		Risk free interest rate (%)	0.36	0.33

Note_7_Equipment

Note 7 - Equipment	12 Months Ended
	Jul. 31, 2014
Notes	'
Note 7 - Equipment	'
	Note 7 – Equipment
	Equipment consists of the following:
			2014	2013
		Computer hardware	$27,731	$27,731
		Computer software	17,288	17,288
		Equipment	9,736	9,736
			54,755	54,755
		Less: accumulated depreciation	51,349	49,605
			$3,406	$5,150

Note_8_Accrued_Expenses

Note 8 - Accrued Expenses	12 Months Ended
	Jul. 31, 2014
Notes	'
Note 8 - Accrued Expenses	'
	Note 8 – Accrued Expenses
	Accrued expenses as of July 31, 2014 and 2013 consisted of the following:
			31-Jul-14	31-Jul-13
		Accrued license fees	$287,873	$232,311
		Accrued royalties	475,000	400,000
		Accrued interest	204,200	146,741
		Accrued management fees	151,000	151,000
		Accrued legal fees	125,000	125,000
		Accrued audit fees	87,067	70,000
			$1,330,140	$1,125,052

Note_9_Related_Party_Transacti

Note 9 - Related Party Transactions and Commitments	12 Months Ended
	Jul. 31, 2014
Notes	'
Note 9 - Related Party Transactions and Commitments	'
	Note 9 - Related Party Transactions and Commitments
	Management and Other Expenses
	The Company’s president deferred portions of the first three years of compensation due him. The balances due him as of July 31, 2014 totalled $151,000 and amounts deferred totalled $151,000 for 2013, at both period-ends. These back management fees are unsecured, non-interest bearing and due upon demand. There was no formal deferred management fees agreement and therefore no set repayment date. The Company has recorded these amounts as current in the accompanying balance sheets.
		Period During Which Management Fees Were Earned	Portion Deferred	Balance
				Deferred
		YE July 31, 2006	$72,000	$72,000
		YE July 31, 2007	$38,500	$110,500
		YE July 31, 2008	$40,500	$151,000
	In subsequent years the Company contracted for management services from an entity owned by the Company’s president.
	A short term shareholder loan of approximately $100,000 was received from the president in the year ended July 31, 2013. It was unsecured, non-interest bearing and due upon demand. It appears under ordinary accounts payable on the Balance Sheet, and is unrelated to the accrued management fees discussed above. As at July 31, 2014 and 2013, the repayment balance outstanding for this loan was approximately $0 and $ (45,000), respectively.
	During the years ended July 31, 2014 and 2013, the Company paid certain entities owned by members of management for management services rendered. The amounts for the years ended July 31, 2014 and 2013 were approximately $158,000 and $170,000, respectively. The Company has not made payments against management fees that have been accruing in recent months, and thus as of July 31, 2014 and 2013, the Company owed these entities approximately $150,000 and $78,000, respectively, which is included in accounts payable in the accompanying balance sheets. As of July 31, 2014, the Company had not paid the president's entity for approximately 11 months of management fees, approximately $102,000, and the Company had not paid the general manager of operations' entity for approximately 13 months of management fees, approximately $48,000.
	During the periods presented, the Company was provided multi-media marketing, advertising and website maintenance services from a related entity. The owner of the entity is a small shareholder of the Company, and a relative of the Company’s president. There was no amount due to this entity at July 31, 2014 and 2013. Total services provided from this entity to the Company during the years ended July 31, 2014 and 2013 were approximately $2,800 and $21,200, respectively.
	Expenses pertaining to the Variable Interest Entity (“VIE”) mentioned in Note 4 are included in Statements of Operations as related party expenses.
	Royalties and License Fees Pertaining to Exclusive Rights
	In January 2005, the Company entered into a licensing agreement with a related party whose primary business is the ownership and maintenance of patents concerning the XYO technology, for the exclusive rights in XYO for automatic balancing systems suitable in the balancing and stabilization of rotating systems. These rights enable the Company to manufacture, or have manufactured, sell, and use, the products incorporating this technology, and to sub-license to third parties the right to manufacture or have manufactured, sell and use, the products incorporating this technology. The agreement calls for annual royalties and license fees. Royalties are calculated annually at a rate of 2.5% on any revenue derived from the use of the technology, subject to a varying minimum annual royalty fee of up to $125,000, for a period that is equal to the life of the underlying patents, i.e., until March 7, 2023. The license fees are due annually in escalating amounts as stated in the agreement through January 2015.
	The agreement also requires 6% annual interest, compounded quarterly, on any unpaid license fees, and 6% annual interest, compounded quarterly, on any unpaid royalty fees outstanding after January 2010.
	The License Agreement was modified by an Amendment and Waiver of Default effective July 31, 2010, in which ETI waived any rights to terminate the Agreement in the event of non-payment by Perpetual.
	In connection with the above agreement, the Company incurred royalties for the years ended July 31, 2014 and 2013 amounting to $75,000 and $75,000, respectively. Included in accrued expenses as of July 31, 2014 and 2013 are $475,000 and $400,000 relating to unpaid royalty fees.
	The Company also incurred license fees related to the above agreement, amounting to approximately $75,000 and $65,000 in the years ended July 31, 2014 and 2013 respectively. Included in accrued payables as of July 31, 2014 and 2013 are $287,873 and $232,311 relating to unpaid license fees.
	Included in accrued expenses as of July 31, 2014 and 2013 are $199,267 and $146,741 of interest accrued on the above amounts outstanding computed in accordance with the agreement.
	The following minimum payments are required under the aforementioned royalty and licensing agreement:
		Year ended July 31,	Amount
		2015	$160,000
		2016	$120,000
		Annually thereafter until projected 2023 expiry	$  75,000
	General
	The amounts and terms of related party transactions are not necessarily indicative of the amounts and terms which would have been incurred had the transactions been incurred with unrelated parties.
	Reconciliation of Related Party Expenses Disclosures to Related Party Expenses Line of Statement of Operations
		Year Ended July 31, 2014	Year Ended July 31, 2013
	Management and Other Expenses:
	Management services	$  157,893	$169,578
	Airfare reimbursement	451	-
	Multi-media marketing, advertising and website maintenance services	2,821	21,243
	Royalties and License Fees Pertaining to Exclusive Rights, excluding interest which appears under Other Income (Expense)
		150,000	140,000
	Variable Interest Entity outlined in Note 4:
	Marketing services	2,402	158,170
	Rent	33,560	35,771
	Offset for legal fees paid on VIE’s behalf	-1,201	-
	Total Related Party Expenses	$  345,926	$  524,761

Note_10_Income_Taxes

Note 10 - Income Taxes	12 Months Ended
	Jul. 31, 2014
Notes	'
Note 10 - Income Taxes	'
	Note 10 - Income Taxes
	The Company has not filed U.S. or Canadian income tax returns since its inception, as it has incurred continual losses since that time. The principles used for determining income and deductions to be recognized for income tax purposes will differ from those used in the determination of income and expenses for financial reporting purposes. As of July 31, 2014 and 2013, there are no differences between the tax basis and financial reporting basis of the Company's assets and liabilities which would give rise to deferred tax liabilities upon filing returns. However, as of July 31, 2014 and 2013, differences between the tax basis and financial reporting basis give rise to the following deferred tax assets:
			2014	2013
		Allowance for interest and loan losses	$       275,143	$       275,143
		Accrued liabilities	303,031	252,192
		Management fees deferred by officer	51,340	51,340
		Fixed assets	17,458	16,866
		XYO license liability	97,877	78,986
		Startup costs	1,554,450	1,440,833
		Subtotal	2,299,299	2,115,360
		Valuation allowance	-2,299,299	-2,115,360
		Total	$                  -	$                  -
	The Company has not recognized any tax benefits for the years presented as it is more likely than not that the benefits will not be realized.
	Because the Company has not begun active business, expenses have been capitalized as start-up cost and will be amortized for tax purposes beginning in the year the Company begins active business.

Note_11_Debenture_With_Nonaffi

Note 11 - Debenture With Non-affiliated Shareholder	12 Months Ended
	Jul. 31, 2014
Notes	'
Note 11 - Debenture With Non-affiliated Shareholder	'
	Note 11 – Debenture with Non-Affiliated Shareholder
	On October 1, 2013, the Company entered into an unsecured debenture under which it borrowed $100,000 from a non-affiliated shareholder at an annual non compounding interest rate of 12%. Repayments were to be applied first to payment of principal and secondly to payment of interest. No maturity date was specified. As at July 31, 2014, the balance owing was $110,000 including interest. On the statement of cash flows it is shown as a note payable, under financing activities. Subsequent to the July 31, 2014 year end, this debenture was retired in full, with interest, via conversion to 370,000 shares of the Company at a fixed conversion rate of $0.30 per share. Accordingly, as of July 31, 2014, this amount has been classified on the balance sheet as a long term liability.

Note_12_Sales_Agreement_and_Cu

Note 12 - Sales Agreement and Customer Concentrations	12 Months Ended
	Jul. 31, 2014
Notes	'
Note 12 - Sales Agreement and Customer Concentrations	'
	Note 12 - Sales Agreement and Customer Concentrations
	In the year ended July 31, 2012, the Company entered into sales agreements with an entity whose owner is a shareholder of the Company. Effective April 30, 2013 (end of Q3 ’13), the entity and its owner formally requested that the license agreement be rescinded and the total $100,000 of fees be redirected toward the exercise of stock warrants in the personal name of the entity’s owner. The Company agreed, and thereupon recorded reversing entries effective April 30, 2013 and processed the warrant exercise request.
	During the years ended July 31, 2014 and 2013, revenues earned from three and four customers, respectively, amounted to approximately $157,200 and $85,600 (100% and 100% of total revenue). There were no amounts due from these customers at July 31, 2014 and 2013.

Note_13_Subsequent_Events

Note 13 - Subsequent Events	12 Months Ended
	Jul. 31, 2014
Notes	'
Note 13 - Subsequent Events	'
	Note 13 – Subsequent Events
	Subsequent to July 31, 2014 the Company received a total of $106,000 via shareholders’ exercises of a total of 242,500 warrants, at a weighted average price of $0.44 per share (ranging from $0.40 to $0.50).
	In September 2014, the following significant financing activities were set in motion:
	The Company’s Board authorized a plan for the potential issuance of non-statutory stock options to independent contractors and consultants as well as to employees, in an aggregate quantity of up to 15% (as of October 29, 2014, 5,102,775 shares) of the issued and outstanding total at the time of any grant. 302,775 shares of the authorized total are as yet not granted. Options have been granted to purchase a total of 4,800,000 shares at $0.30 per Share. No options had previously been granted. The terms, prices, and quantities of any future grants are to be determined.
	The Board authorized the Company’s Chairman, President and CEO to enter the Company into various convertible notes for the purposes of (1) retiring existing debts and (2) taking on new debts for services rendered. The conversion basis is set at $0.30 per share, up to an aggregate total of 8,000,000 shares, hence a total potential value of $2,400,000. Such notes have been entered into with various parties for a total principal value convertible to 6,216,000 shares before accrual of interest (rounded up to the nearest 1,000 shares for each holder). Notes for the remaining authorized 1,784,000 shares have not been entered into. The notes do not specify any repayment term, have an interest rate of 8%, and do not involve any collateral; accordingly they are considered short term liabilities.
	The Company began the pursuit of additional financing in the form of a private offering in accordance with Regulation D under the Securities Act and subject to the terms of an appropriate private placement memorandum. Said offering is for the sale of a maximum of 4,800,000 shares of the Company’s $0.001 par value common stock at a price per share of $0.75, for a maximum offering amount of $3,600,000. There is no minimum offering and no provision to return or escrow investor funds if any minimum number of shares is not sold. The minimum investment established per investor is $15,000, unless such minimum is waived in the Company’s sole discretion. This offering is restricted to Accredited Investors. No funds have been accepted in relation to said offering.

Note_3a_Summary_of_Significant1

Note 3a - Summary of Significant Accounting Policies: Cash (Policies)	12 Months Ended
	Jul. 31, 2014
Policies	'
Cash	'
	Cash
	The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts.

Note_3a_Summary_of_Significant2

Note 3a - Summary of Significant Accounting Policies: Use of Estimates (Policies)	12 Months Ended
	Jul. 31, 2014
Policies	'
Use of Estimates	'
	Use of Estimates
	The preparation of the 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 the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Note_3a_Summary_of_Significant3

Note 3a - Summary of Significant Accounting Policies: Accounts Receivable (Policies)	12 Months Ended
	Jul. 31, 2014
Policies	'
Accounts Receivable	'
	Accounts Receivable
	Financial instruments that potentially subject the Company to concentrations of credit risk consist mainly of accounts receivable. Accounts receivable consist of receivables from revenue earned for entering into license agreements and prototype evaluation agreements with potential licensees.
	The Company records an allowance for doubtful accounts to allow for any amounts that may not be recoverable, which is based on an analysis of the Company’s prior collection experience, customer creditworthiness, and current economic trends. Based on management’s review of accounts receivable, an allowance for doubtful accounts is not considered necessary at July 31, 2014 and 2013. The Company determines receivables to be past due based on the payment terms of original invoices. Interest is not typically charged on past due receivables.

Note_3a_Summary_of_Significant4

Note 3a - Summary of Significant Accounting Policies: Loan Receivable (Policies)	12 Months Ended
	Jul. 31, 2014
Policies	'
Loan Receivable	'
	Loan Receivable
	Loan receivable is stated at the unpaid principal balance, less an allowance for loan losses. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. The Company records an allowance for loan losses to allow for any amounts that may not be recoverable, which is based on the Company’s evaluation of the collectability of the loan including current economic conditions and adverse situations that may affect the borrower’s ability to repay. An allowance for uncollectible interest is established by a charge to interest income. Based on management’s review of loan and interest receivable, an allowance for loan and interest losses was considered necessary at July 31, 2010 for $809,245. The carrying balance of the loan receivable net of allowance was zero at July 31, 2014 and 2013.

Note_3a_Summary_of_Significant5

Note 3a - Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)	12 Months Ended
	Jul. 31, 2014
Policies	'
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments
	The fair value of financial instruments classified as current liabilities, including accounts payable, accrued expenses and other current liabilities approximate carrying value, principally because of the short maturity of those items. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market 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 fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows:
	Level I—Unadjusted quoted prices in active markets for identical assets or liabilities;
	Level II—Inputs other than quoted prices included within Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and
	Level III—Unobservable inputs that are supported by little or no market activity for the related assets or liabilities.
	The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
	The Company’s derivative financial instruments consist of warrants, which are recorded in the accompanying balance sheets at fair value. Fair value is estimated using the Black-Scholes option valuation technique, utilizing Level II inputs. The observable inputs include the exercise price of the warrants, the treasury yield curve, the Company’s common stock price and the expected volatility, which is based on the average volatilities of five similar public entities. Option-based techniques are highly volatile and sensitive to changes in the Company’s trading market price and the trading market price of various peer companies, which historically have high volatility. Gains or losses resulting from changes in the fair value of derivative financial instruments are included in derivative income (expense) in the accompanying statements of operations.

Note_3a_Summary_of_Significant6

Note 3a - Summary of Significant Accounting Policies: Income Taxes (Policies)	12 Months Ended
	Jul. 31, 2014
Policies	'
Income Taxes	'
	Income Taxes
	Deferred taxes are provided on the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax laws and rates is recognized as income in the period that included the enactment date.
	On January 1, 2007, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 740-10, “Uncertainty in Income Taxes” (“ASC Topic 740-10”). The Company has not recognized a liability as a result of the implementation of ASC Topic 740-10.
	A reconciliation of the beginning and ending amount of unrecognized tax benefits has not been provided since there are no unrecognized benefits at July 31, 2014 and 2013 and since the date of adoption. The Company has not recognized interest expense or penalties as a result of the implementation of ASC Topic 740-10. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to the unrecognized tax benefit in interest expense and penalties in operating expenses. The Company is subject to examination by the Internal Revenue Service and state tax authorities for all tax years since Inception.
	The Company has not filed any U.S. or Canadian income or other tax returns. Had the returns been filed there would be taxable losses and tax losses available to offset future taxable income. The Company has not determined the amount of the potential benefits for these tax losses, because at this time it is more likely than not that the benefits will not be realized. See further comments in Note 10.

Note_3a_Summary_of_Significant7

Note 3a - Summary of Significant Accounting Policies: Equipment (Policies)	12 Months Ended
	Jul. 31, 2014
Policies	'
Equipment	'
	Equipment
	Equipment is recorded at cost. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, ranging generally from three to five years. Maintenance and repairs are charged to operations when incurred. Betterments and renewals are capitalized. When property and equipment are sold or otherwise disposed of, the asset account and related accumulated depreciation account are relieved, and any gain or loss is included in operations. Depreciation expense for the years ended July 31, 2014 and 2013 amounted to approximately $1,700 and $4,600, respectively.

Note_3a_Summary_of_Significant8

Note 3a - Summary of Significant Accounting Policies: Impairment of Long-lived Assets (Policies)	12 Months Ended
	Jul. 31, 2014
Policies	'
Impairment of Long-lived Assets	'
	Impairment of Long-Lived Assets
	The Company evaluates the recoverability of its long-lived assets or asset groups whenever adverse events or changes in business climate indicate that the expected undiscounted future cash flows from the related assets may be less than previously anticipated. If the net book value of the related assets were to exceed the undiscounted future cash flows of the assets, the carrying amount would be reduced to the present value of their expected future cash flows and an impairment loss would be recognized. There have been no impairment losses in any of the periods presented.

Note_3a_Summary_of_Significant9

Note 3a - Summary of Significant Accounting Policies: Advertising and Marketing (Policies)	12 Months Ended
	Jul. 31, 2014
Policies	'
Advertising and Marketing	'
	Advertising and Marketing
	The Company expenses advertising and marketing costs as they are incurred. Advertising and marketing expenses for the years ended July 31, 2014 and 2013 were approximately $84,900 and $202,000, respectively.

Recovered_Sheet1

Note 3a - Summary of Significant Accounting Policies: Foreign Currencies (Policies)	12 Months Ended
	Jul. 31, 2014
Policies	'
Foreign Currencies	'
	Foreign Currencies
	The Company determined that its functional currency is the United States dollar since the U.S. dollar is the currency of the environment in which the Company primarily generates and expends cash. Foreign currency transaction gains and losses represent gains and losses resulting from transactions entered into in a currency other than the functional currency of the Company. These transaction gains and losses are included in results of operations and total losses of approximately $5,200 and $4,800 for the years ended July 31, 2014 and 2013, respectively.

Recovered_Sheet2

Note 3a - Summary of Significant Accounting Policies: Revenue Recognition (Policies)	12 Months Ended
	Jul. 31, 2014
Policies	'
Revenue Recognition	'
	Revenue Recognition
	The Company recognizes revenue when all of the following conditions are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, there is a fixed or determinable sales price, and collectability is reasonably assured. Deferred revenue arises from amounts received from potential and actual licensees prior to services being provided and is being amortized to income as it is earned. Certain of these revenues are categorized as noncurrent due to the length of the contract.

Recovered_Sheet3

Note 3a - Summary of Significant Accounting Policies: Loss Per Share (Policies)	12 Months Ended
	Jul. 31, 2014
Policies	'
Loss Per Share	'
	Loss Per Share
	Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the periods presented. Diluted loss per share is computed by dividing net loss by the weighted average common shares and potentially dilutive common share equivalents. The effects of potential common stock equivalents are not included in computations when their effect is anti-dilutive.
	Because of the net losses for all periods presented, the basic and diluted weighted average shares outstanding are the same since including the additional shares would have an anti-dilutive effect on the loss per share calculations. Common stock warrants to purchase 15,907,500 and 14,440,500 shares of common stock for the years ended July 31, 2014 and 2013, respectively, were not included in the computation of diluted weighted average common shares outstanding.

Recovered_Sheet4

Note 3a - Summary of Significant Accounting Policies: Stock (Policies)	12 Months Ended
	Jul. 31, 2014
Policies	'
Stock	'
	Stock
	The Company issues shares of its common stock in tranches once the Board of Directors accepts the tranche of stock subscribers. During the years ended July 31, 2014 and 2013, 652,000 and 3,218,500 shares, respectively, were issued for cash or services received. There was no common stock payable as of July 31, 2014 and 2013.

Note_5_Derivative_Instruments_1

Note 5 - Derivative Instruments (warrants): Schedule Of Fair Value Measurements (Tables)	12 Months Ended
	Jul. 31, 2014
Tables/Schedules	'
Schedule Of Fair Value Measurements	'
		Level I	Level II	Level III	Total
	Derivative liabilities, July 31, 2014	$  —	$  —	$  —	$  —
	Derivative liabilities, July 31, 2013	$  —	$  —	$  —	$  —

Note_5_Derivative_Instruments_2

Note 5 - Derivative Instruments (warrants): Schedule Of Fair Value Assumptions Derivative (Tables)	12 Months Ended
	Jul. 31, 2014
Tables/Schedules	'
Schedule Of Fair Value Assumptions Derivative	'
		Year Ended July 31, 2013
	Expected life (in years)	0.04
	Expected dividend yield	0.00%
	Expected volatility (%)	2.8
	Risk free interest rate (%)	0.02

Note_5_Derivative_Instruments_3

Note 5 - Derivative Instruments (warrants): Summary Of Information Derivative Warrants (Tables)	12 Months Ended
	Jul. 31, 2014
Tables/Schedules	'
Summary Of Information Derivative Warrants	'
	Exercise Price	Number of Warrants	Remaining Life
	$0.30	2,069,000	0.04 Years

Note_5_Derivative_Instruments_4

Note 5 - Derivative Instruments (warrants): Reconciliation of Fair Value of Issuances and Increases Decreases in Value (Tables)	12 Months Ended
	Jul. 31, 2014
Tables/Schedules	'
Reconciliation of Fair Value of Issuances and Increases Decreases in Value	'
		Balance as at July 31, 2012	587,531
		Decrease in value, year ended July 31, 2013	-587,531
			$              -

Note_5_Derivative_Instruments_5

Note 5 - Derivative Instruments (warrants): Reconciliation Of Number And Weighted Average Exercise Prices Derivative Warrants (Tables)	12 Months Ended
	Jul. 31, 2014
Tables/Schedules	'
Reconciliation Of Number And Weighted Average Exercise Prices Derivative Warrants	'
			Warrants with Derivative Features
				Weighted Average Exercise Prices ($)
			Number of Shares
		Outstanding, July 31, 2012	13,951,500	0.3
		Granted	-	-
		Exercised	-	-
		Expired/Cancelled	11,882,500	0.3
		Outstanding, July 31, 2013	2,069,000	0.3
		Granted	-	-
		Exercised	-	-
		Expired/Cancelled	2,069,000	0.3
		Outstanding, July 31, 2014	-	-

Note_6_Nonderivative_Warrants_

Note 6 - Non-derivative Warrants: Reconciliation Of Number And Weighted Average Exercise Prices NonDerivative Warrants (Tables)	12 Months Ended
	Jul. 31, 2014
Tables/Schedules	'
Reconciliation Of Number And Weighted Average Exercise Prices NonDerivative Warrants	'
			Warrants
				Weighted Average Exercise Price ($)
			Number of Shares
		Outstanding July 31, 2012	-	-
		Granted in year ended July 31, 2013	14,690,500	0.38
		Exercised in year ended July 31, 2013	-250,000	0.4
		Outstanding, July 31, 2013	14,440,500	0.38
		Granted August 15, 2013	2,069,000	0.4
		Exercised in year ended July 31, 2014	-602,000	0.4
		Outstanding, July 31, 2014	15,907,500	0.47

Note_6_Nonderivative_Warrants_1

Note 6 - Non-derivative Warrants: Summary of Information Nonderivative Features (Tables)	12 Months Ended
	Jul. 31, 2014
Tables/Schedules	'
Summary of Information Nonderivative Features	'
	Exercise Price	Number of Warrants	Remaining Life
	$0.50	2,451,000	0.54 Years
	$0.40	2,562,500	0.87 Years
	$0.50	8,825,000	0.87 Years
	$0.40	2,069,000	1.04 Years

Note_6_Nonderivative_Warrants_2

Note 6 - Non-derivative Warrants: Fair Value Assumptions NonDerivative (Tables)	12 Months Ended
	Jul. 31, 2014
Tables/Schedules	'
Fair Value Assumptions NonDerivative	'
			Year Ended July 31, 2014	Year Ended July 31, 2013
		Expected life (in years)	2	2
		Expected dividend yield (%)	0	0
		Expected volatility (%)	81.3	79.7
		Risk free interest rate (%)	0.36	0.33

Note_7_Equipment_Property_Plan

Note 7 - Equipment: Property, Plant and Equipment (Tables)	12 Months Ended
	Jul. 31, 2014
Tables/Schedules	'
Property, Plant and Equipment	'
			2014	2013
		Computer hardware	$27,731	$27,731
		Computer software	17,288	17,288
		Equipment	9,736	9,736
			54,755	54,755
		Less: accumulated depreciation	51,349	49,605
			$3,406	$5,150

Note_8_Accrued_Expenses_Schedu

Note 8 - Accrued Expenses: Schedule of Accrued Liabilities (Tables)	12 Months Ended
	Jul. 31, 2014
Tables/Schedules	'
Schedule of Accrued Liabilities	'
			31-Jul-14	31-Jul-13
		Accrued license fees	$287,873	$232,311
		Accrued royalties	475,000	400,000
		Accrued interest	204,200	146,741
		Accrued management fees	151,000	151,000
		Accrued legal fees	125,000	125,000
		Accrued audit fees	87,067	70,000
			$1,330,140	$1,125,052

Note_9_Related_Party_Transacti1

Note 9 - Related Party Transactions and Commitments: Deferred Compensation Arrangements Schedule (Tables)	12 Months Ended
	Jul. 31, 2014
Tables/Schedules	'
Deferred Compensation Arrangements Schedule	'
		Period During Which Management Fees Were Earned	Portion Deferred	Balance
				Deferred
		YE July 31, 2006	$72,000	$72,000
		YE July 31, 2007	$38,500	$110,500
		YE July 31, 2008	$40,500	$151,000

Note_9_Related_Party_Transacti2

Note 9 - Related Party Transactions and Commitments: Schedule of Royalty and License Fees (Tables)	12 Months Ended
	Jul. 31, 2014
Tables/Schedules	'
Schedule of Royalty and License Fees	'
		Year ended July 31,	Amount
		2015	$160,000
		2016	$120,000
		Annually thereafter until projected 2023 expiry	$  75,000

Note_9_Related_Party_Transacti3

Note 9 - Related Party Transactions and Commitments: Schedule of Related Party Transactions (Tables)	12 Months Ended
	Jul. 31, 2014
Tables/Schedules	'
Schedule of Related Party Transactions	'
		Year Ended July 31, 2014	Year Ended July 31, 2013
	Management and Other Expenses:
	Management services	$  157,893	$169,578
	Airfare reimbursement	451	-
	Multi-media marketing, advertising and website maintenance services	2,821	21,243
	Royalties and License Fees Pertaining to Exclusive Rights, excluding interest which appears under Other Income (Expense)
		150,000	140,000
	Variable Interest Entity outlined in Note 4:
	Marketing services	2,402	158,170
	Rent	33,560	35,771
	Offset for legal fees paid on VIE’s behalf	-1,201	-
	Total Related Party Expenses	$  345,926	$  524,761

Note_10_Income_Taxes_Schedule_

Note 10 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)	12 Months Ended
	Jul. 31, 2014
Tables/Schedules	'
Schedule of Deferred Tax Assets and Liabilities	'
			2014	2013
		Allowance for interest and loan losses	$       275,143	$       275,143
		Accrued liabilities	303,031	252,192
		Management fees deferred by officer	51,340	51,340
		Fixed assets	17,458	16,866
		XYO license liability	97,877	78,986
		Startup costs	1,554,450	1,440,833
		Subtotal	2,299,299	2,115,360
		Valuation allowance	-2,299,299	-2,115,360
		Total	$                  -	$                  -

Note_2_Going_Concern_Details

Note 2 - Going Concern (Details) (USD $)	12 Months Ended
	Jul. 31, 2014
Details	'
Net Cash Provided by (Used in) Continuing Operations	$339,031

Recovered_Sheet5

Note 3a - Summary of Significant Accounting Policies: Loan Receivable (Details) (USD $)	Jul. 31, 2010
Details	'
Interest Receivable	$809,245

Recovered_Sheet6

Note 3a - Summary of Significant Accounting Policies: Equipment (Details) (USD $)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Details	'	'
Depreciation Expense	$1,700	$4,600

Recovered_Sheet7

Note 3a - Summary of Significant Accounting Policies: Advertising and Marketing (Details) (USD $)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Details	'	'
Marketing and Advertising Expense	$84,900	$202,000

Recovered_Sheet8

Note 3a - Summary of Significant Accounting Policies: Foreign Currencies (Details) (USD $)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Details	'	'
Foreign Currency Transaction Loss, before Tax	$5,200	$4,800

Recovered_Sheet9

Note 3a - Summary of Significant Accounting Policies: Loss Per Share (Details)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Details	'	'
Common Stock Warrants to Purchase	15,907,500	14,440,500

Recovered_Sheet10

Note 3a - Summary of Significant Accounting Policies: Stock (Details)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Details	'	'
Development Stage Entities, Stock Issued, Shares, Issued for Cash	652,000	3,218,500

Note_4_Loan_Receivable_and_Lea1

Note 4 - Loan Receivable and Lease Obligation (Details) (USD $)	12 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2013
Rent Expense	$24,000	$33,600	$35,800
Rent Paid in Cash	'	33,600	'
Variable Interest Entity	'	'	'
Marketing Expense	'	$2,400	$158,200

Note_5_Derivative_Instruments_6

Note 5 - Derivative Instruments (warrants): Schedule Of Fair Value Assumptions Derivative (Details) (0.04 Years)	12 Months Ended
	Jul. 31, 2013
0.04 Years	'
Remaining Contractual Term	0.04
Fair Value Assumptions, Expected Dividend Rate	0.00%
Fair Value Assumptions, Expected Volatility Rate	2.80%
Fair Value Assumptions, Risk Free Interest Rate	0.02%

Note_5_Derivative_Instruments_7

Note 5 - Derivative Instruments (warrants): Summary Of Information Derivative Warrants (Details) (0.04 Years, USD $)	Jul. 31, 2013
0.04 Years	'
ExercisePriceOutstanding	$0.30
Number Outstanding	2,069,000
Remaining Contractual Term	0.04

Note_5_Derivative_Instruments_8

Note 5 - Derivative Instruments (warrants): Reconciliation Of Number And Weighted Average Exercise Prices Derivative Warrants (Details) (Derivative Warrants, USD $)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013	Jul. 31, 2012
Derivative Warrants	'	'	'
Number Outstanding	'	2,069,000	13,951,500
Weighted Average Exercise Price, Outstanding	'	$0.30	$0.30
Number Expired	2,069,000	11,882,500	'
Weighted Average Exercise Price, Expired	$0.30	$0.30	'

Note_6_Nonderivative_Warrants_3

Note 6 - Non-derivative Warrants (Details) (USD $)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Details	'	'
Non Derivative Warrants Issued	2,069,000	14,440,500
Warrant Expense	$184,408	$1,069,816

Note_6_Nonderivative_Warrants_4

Note 6 - Non-derivative Warrants: Reconciliation Of Number And Weighted Average Exercise Prices NonDerivative Warrants (Details) (Non-Derivative Warrants, USD $)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013	Aug. 15, 2013
Non-Derivative Warrants	'	'	'
Number Of Warrants Outstanding	15,907,500	14,440,500	'
Weighted Average Exercise Price Outstanding	$0.47	$0.38	'
Number of Warrants Granted	'	14,690,500	2,069,000
Weighted Average Exercise Price Granted	'	$0.38	$0.40
Number Exercised In Year Ended	-602,000	-250,000	'
Weighted Average Exercise Price Exercised In Year Ended	$0.40	$0.40	'

Note_6_Nonderivative_Warrants_5

Note 6 - Non-derivative Warrants: Summary of Information Nonderivative Features (Details) (USD $)	Jul. 31, 2014
0.54 Years	'
Exercise Price Outstanding	$0.50
Number of Warrants Outstanding2	2,451,000
Remaining Contractual Term	0.54
0.87 Years	'
Exercise Price Outstanding	$0.40
Number of Warrants Outstanding2	2,562,500
Remaining Contractual Term	0.87
0.87 (2) Years	'
Exercise Price Outstanding	$0.50
Number of Warrants Outstanding2	8,825,000
Remaining Contractual Term	0.87
1.04 Years	'
Exercise Price Outstanding	$0.40
Number of Warrants Outstanding2	2,069,000
Remaining Contractual Term	1.04

Note_6_Nonderivative_Warrants_6

Note 6 - Non-derivative Warrants: Fair Value Assumptions NonDerivative (Details)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
	2.00 (2) Years	2.00 Years
Contractual Term Remaining	2	2
Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%
Fair Value Assumptions, Expected Volatility Rate	81.30%	79.70%
Fair Value Assumptions, Risk Free Interest Rate	0.36%	0.33%

Note_7_Equipment_Property_Plan1

Note 7 - Equipment: Property, Plant and Equipment (Details) (USD $)	Jul. 31, 2014	Jul. 31, 2013
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$51,349	$49,605
Computer Hardware	'	'
Property, Plant and Equipment, Gross	27,731	27,731
Computer Software	'	'
Property, Plant and Equipment, Gross	17,288	17,288
Equipment	'	'
Property, Plant and Equipment, Gross	$9,736	$9,736

Note_8_Accrued_Expenses_Schedu1

Note 8 - Accrued Expenses: Schedule of Accrued Liabilities (Details) (USD $)	Jul. 31, 2014	Jul. 31, 2013
Details	'	'
Accrued License Fees	$287,873	$232,311
Accrued Royalties, Current	475,000	400,000
Accrued Interest	204,200	146,741
Accrued Management Fees	151,000	151,000
Accrued Legal Fees	125,000	125,000
Accrued Audit Fees	87,067	70,000
Total Accrued Expenses	$1,330,140	$1,125,052

Note_9_Related_Party_Transacti4

Note 9 - Related Party Transactions and Commitments (Details) (USD $)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Related Party Transaction, Due from (to) Related Party	$0	($45,000)
Professional and Contract Services Expense	150,000	78,000
Marketing and Advertising Expense	84,900	202,000
Royalty Expense	75,000	75,000
AccruedRoyaltyExpense	475,000	400,000
License Expense	75,000	65,000
Accrued License Expense	287,873	232,311
Accrued Interest Expense	199,267	146,741
President	'	'
Other Deferred Compensation Arrangements, Liability, Current	151,000	151,000
Accrued Salaries, Current	102,000	'
General Manager	'	'
Accrued Salaries, Current	48,000	'
Shareholder	'	'
Marketing and Advertising Expense	$2,800	$21,200

Note_9_Related_Party_Transacti5

Note 9 - Related Party Transactions and Commitments: Schedule of Related Party Transactions (Details) (USD $)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Details	'	'
Management Fees Expense	$157,893	$169,578
Airfare Reimbursement	451	'
Advertising Expense	2,821	21,243
Royalty and License Expense	150,000	140,000
Marketing Expense	2,402	158,170
Operating Leases, Rent Expense	33,560	35,771
Effect on Future Earnings, Offset Amount	-1,201	'
Total Related Party Expenses	$345,926	$524,761

Note_10_Income_Taxes_Schedule_1

Note 10 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)	Jul. 31, 2014	Jul. 31, 2013
Details	'	'
Loans and Leases Receivable, Allowance	$275,143	$275,143
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities	303,031	252,192
Deferred Management Fees	51,340	51,340
Fixed Assets	17,458	16,866
License Liability	97,877	78,986
Startup Costs	1,554,450	1,440,833
Subtotal of Deferred Tax Assets	2,299,299	2,115,360
Deferred Tax Assets, Valuation Allowance	($2,299,299)	($2,115,360)

Note_11_Debenture_With_Nonaffi1

Note 11 - Debenture With Non-affiliated Shareholder (Details) (USD $)	Jul. 31, 2014	Oct. 01, 2013
Details	'	'
Debt Instrument, Fair Value Disclosure	$110,000	$100,000

Note_12_Sales_Agreement_and_Cu1

Note 12 - Sales Agreement and Customer Concentrations (Details) (USD $)	12 Months Ended
	Jul. 31, 2014	Jul. 31, 2013
Details	'	'
Total Revenue	$157,200	$85,600