Restatement (Tables) | 6 Months Ended |
Jan. 31, 2014 |
Restatement [Abstract] | ' |
Reconciliation of Consolidated Balance Sheet | ' |
|
The following tables summarize the effect of corrections on the consolidated financial statements as of the three months ended October 31, 2013: |
|
| | Previously | | | Adjustments | | | Current | |
Reported | Restatement |
Assets | | | | | | | | | |
Current assets | | | | | | | | | |
Cash | | $ | 23,960 | | | $ | - | | | $ | 23,960 | |
Accounts receivable, net | | | - | | | | - | | | | - | |
Inventory | | | 33,766 | | | | - | | | | 33,766 | |
Deferred loan costs | | | 26,747 | | | | - | | | | 26,747 | |
| | | | | | | | | | | | |
Total current assets | | | 84,473 | | | | - | | | | 84,473 | |
Total assets | | $ | 84,473 | | | $ | - | | | $ | 84,473 | |
|
Liabilities | | | | | | | | | |
Accrued expenses | | $ | 111,467 | | | $ | 16,417 | | | $ | 127,884 | |
Senior secured convertible note payable | | | 402,800 | | | | - | | | | 402,800 | |
Derivative Liability | | | 452,912 | | | | 687,585 | | | | 1,140,497 | |
Total current liabilities | | | 967,179 | | | | 704,200 | | | | 1,671,181 | |
Total liabilities | | | 967,179 | | | | 704,200 | | | | 1,671,181 | |
| | | | | | | | | | | | |
Stockholders' deficit: | | | | | | | | | | | | |
Common stock | | | 121,408 | | | | (5,000 | ) | | | 116,408 | |
Stock subscription payable | | | 315,600 | | | | (61,361 | ) | | | 254,239 | |
Additional paid in capital | | | 2,488,564 | | | | 100,722 | | | | 2,589,286 | |
Retained earnings from discontinued operations | | | 6,944 | | | | - | | | | 6,944 | |
Accumulated deficit | | | (3,815,222 | ) | | | (738,363 | ) | | | (4,553,585 | ) |
Total stockholders' deficit | | | (882,706 | ) | | | (704,002 | ) | | | (1,586,708 | ) |
| | | | | | | | | | | | |
Total liabilities and stockholders' deficit | | $ | 84,473 | | | $ | - | | | $ | 84,473 | |
|
The following tables summarize the effect of corrections on the consolidated financial statements as of the year ended July 31, 2013: |
|
| | Previously | | | Adjustments | | | Current | |
Reported | Restatement |
Assets | | | | | | | | | |
Current assets | | | | | | | | | |
Cash | | $ | 3,920 | | | $ | - | | | $ | 2,529 | |
Accounts receivable, net | | | - | | | | - | | | | - | |
Inventory | | | 31,034 | | | | - | | | | 31,034 | |
Deferred loan costs | | | 174,857 | | | | - | | | | 174,857 | |
| | | | | | | | | | | | |
Total current assets | | | 209,811 | | | | - | | | | 209,811 | |
Total assets | | $ | 209,811 | | | $ | - | | | $ | 209,811 | |
| | | | | | | | | | | | |
Liabilities and Stockholders’ Deficit | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Accrued expenses | | $ | 60,564 | | | $ | 16,415 | | | $ | 76,979 | |
Convertible notes payable, net | | | 270,000 | | | | - | | | | 270,000 | |
Derivative liability | | | 242,430 | | | | - | | | | 242,430 | |
| | | | | | | | | | | | |
Total current liabilities | | | 572,994 | | | | 16,415 | | | | 589,409 | |
Total liabilities | | | 572,994 | | | | 16,415 | | | | 589,409 | |
| | | | | | | | | | | | |
Stockholders' deficit: | | | | | | | | | | | | |
Common stock | | | 108,970 | | | | (5,000 | ) | | | 103,970 | |
Stock subscription payable | | | 282,220 | | | | (61,381 | ) | | | 220,839 | |
Additional paid in capital | | | 1,561,409 | | | | 100,723 | | | | 1,662,132 | |
Retained earnings from discontinued operations | | | 6,944 | | | | - | | | | 6,944 | |
Accumulated deficit | | | (2,322,706 | ) | | | (50,777 | ) | | | (2,373,483 | ) |
Total stockholders' deficit | | | (363,183 | ) | | | (16,415 | ) | | | (379,598 | ) |
| | | | | | | | | | | | |
Total liabilities and stockholders' deficit | | $ | 209,811 | | | $ | - | | | $ | 209,811 | |
|
The following tables summarize the effect of corrections on the consolidated financial statements as of the nine months ended April 30, 2013: |
|
| | Previously | | | Adjustments | | | Current | |
Reported | Restatement |
Assets | | | | | | | | | |
Current assets | | | | | | | | | |
Cash | | $ | 39,015 | | | $ | - | | | $ | 39,015 | |
Prepaid expenses | | | 37,042 | | | | - | | | | 37,042 | |
Inventory | | | 26,587 | | | | - | | | | 26,587 | |
Deferred loan costs | | | 316,977 | | | | - | | | | 316,977 | |
Total current assets | | | 419,621 | | | | - | | | | 419,621 | |
Total assets | | $ | 419,621 | | | $ | - | | | $ | 419,621 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Accrued expenses | | $ | 44,463 | | | $ | 16,415 | | | $ | 60,878 | |
Senior secured convertible note payable | | | 240,000 | | | | - | | | | 240,000 | |
Total current liabilities | | | 288,463 | | | | 16,415 | | | | 300,878 | |
Derivative liability | | | 118,133 | | | | - | | | | 118,133 | |
| | | | | | | | | | | | |
Total liabilities | | | 402,596 | | | | 16,415 | | | | 419,011 | |
| | | | | | | | | | | | |
Stockholders' deficit: | | | | | | | | | | | | |
Common stock | | | 103,970 | | | | - | | | | 103,970 | |
Stock subscription payable | | | 282,220 | | | | (61,361 | ) | | | 220,859 | |
Additional paid in capital | | | 1,568,130 | | | | 95,723 | | | | 1,663,853 | |
Retained earnings from discontinued operations | | | 6,944 | | | | - | | | | 6,944 | |
Accumulated deficit | | | (1,944,239 | ) | | | (50,777 | ) | | | (1,995,016 | ) |
Total stockholders' deficit | | | 17,025 | | | | (16,415 | ) | | | 610 | |
| | | | | | | | | | | | |
Total liabilities and stockholders' deficit | | $ | 419,621 | | | $ | - | | | $ | 419,621 | |
|
The following tables summarize the effect of corrections on the consolidated financial statements as of the six months ended January 31, 2013: |
|
| | Previously | | | Adjustments | | | Current | |
Reported | Restatement |
Assets | | | | | | | | | |
Current assets | | | | | | | | | |
Cash | | $ | 2,529 | | | $ | - | | | $ | 2,529 | |
Prepaid expenses | | | 10,861 | | | | - | | | | 10,861 | |
Inventory | | | 53,377 | | | | - | | | | 53,377 | |
Deferred loan costs | | | 452,221 | | | | - | | | | 452,221 | |
Total current assets | | | 518,988 | | | | - | | | | 518,988 | |
Total assets | | $ | 518,988 | | | $ | - | | | $ | 518,988 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Accrued expenses | | $ | 21,748 | | | $ | 32,830 | | | $ | 54,578 | |
Senior secured convertible note payable | | | 100,000 | | | | - | | | | 100,000 | |
Total current liabilities | | | 121,748 | | | | 32,830 | | | | 154,578 | |
| | | | | | | | | | | | |
Total liabilities | | | 121,748 | | | | 32,830 | | | | 154,578 | |
| | | | | | | | | | | | |
Stockholders' deficit: | | | | | | | | | | | | |
Common stock | | | 97,560 | | | | - | | | | 94,150 | |
Stock subscription payable | | | 510,000 | | | | (61,361 | ) | | | 448,639 | |
Additional paid in capital | | | 645,242 | | | | 44,946 | | | | 690,188 | |
Retained earnings from discontinued operations | | | 6,944 | | | | - | | | | 6,944 | |
Accumulated deficit | | | (862,506 | ) | | | (16,415 | ) | | | (878,921 | ) |
Total stockholders' deficit | | | 397,420 | | | | (32,830 | ) | | | 364,410 | |
| | | | | | | | | | | | |
Total liabilities and stockholders' deficit | | $ | 518,988 | | | $ | - | | | $ | 518,988 | |
|
The following tables summarize the effect of corrections on the consolidated financial statements as of the three months ended October 31, 2012: |
|
| | Previously | | | Adjustments | | | Current | |
Reported | Restatement |
Assets | | | | | | | | | |
Current assets: | | | | | | | | | |
Cash | | $ | 2,234 | | | $ | 2,234 | | | $ | 2,234 | |
Total current assets | | | 2,234 | | | | 2,234 | | | | 2,234 | |
Total assets | | $ | 2,234 | | | $ | 2,234 | | | $ | 2,234 | |
Liabilities: | | | | | | | | | | | | |
Accrued expenses | | $ | 9,539 | | | $ | 16,415 | | | $ | 25,954 | |
Total current liabilities | | | 9,539 | | | | 16,415 | | | | 25,954 | |
Liability for Issuable Common Stock | | | 203,361 | | | | (203,361 | ) | | | - | |
| | | | | | | | | | | | |
Total liabilities | | | 212,900 | | | | (186,946 | ) | | | 25,954 | |
| | | | | | | | | | | | |
Stockholders' deficit: Common stock | | | 94,150 | | | | - | | | | 94,150 | |
Additional paid in capital | | | (22,709 | ) | | | 44,946 | | | | 22,237 | |
Stock subscription payable | | | - | | | | 142,000 | | | | 142,000 | |
Retained earnings from discontinued operations | | | 6,944 | | | | - | | | | 6,944 | |
Accumulated deficit | | | (289,051 | ) | | | - | | | | (289,051 | ) |
Total stockholders' deficit | | | (210,666 | ) | | | 186,946 | | | | (23,720 | ) |
| | | | | | | | | | | | |
Total liabilities and stockholders' deficit | | $ | 2,234 | | | $ | - | | | $ | 2,234 | |
|
The following tables summarize the effect of corrections on the consolidated financial statements as of the year ended July 31, 2012: |
|
| | Previously | | | Adjustments | | | Current | |
Reported | Restatement |
Assets | | | | | | | | | |
Assets | | $ | - | | | $ | - | | | $ | - | |
Total assets | | $ | - | | | $ | - | | | $ | - | |
Liabilities: | | | | | | | | | | | | |
Accrued expenses | | $ | 4,050 | | | $ | 32,830 | | | $ | 36,880 | |
Total current liabilities | | | 4,050 | | | | 32,830 | | | | 36,880 | |
Liability for Issuable Common Stock | | | 61,361 | | | | (61,361 | ) | | | - | |
Total liabilities | | | 65,411 | | | | (28,531 | ) | | | 36,880 | |
| | | | | | | | | | | | |
Stockholders' deficit: | | | | | | | | | | | | |
Common stock | | | 94,150 | | | | - | | | | 94,150 | |
Additional paid in capital | | | (22,709 | ) | | | 44,946 | | | | 22,237 | |
Retained earnings from discontinued operations | | | 6,944 | | | | | | | | 6,944 | |
Accumulated deficit | | | (143,796 | ) | | | (16,415 | ) | | | (160,211 | ) |
Total stockholders' deficit | | | (65,411 | ) | | | (28,531 | ) | | | (36,880 | ) |
| | | | | | | | | | | | |
Total liabilities and stockholders' deficit | | $ | - | | | $ | - | | | $ | - | |
|
Reconciliation of Consolidated statements of operations and comprehensive loss | ' |
The following tables summarize the effect of corrections on the consolidated financial statements as of the three months ended October 31, 2013: |
|
Statement of Operations |
|
| | Previously | | | Adjustments | | | Current | |
Reported | Restatement |
| | | | | | | | | | | | |
Revenue | | $ | 373 | | | $ | - | | | $ | 373 | |
Cost of goods sold | | | 1,392 | | | | - | | | | 1,392 | |
Gross profit | | | (1,019 | ) | | | - | | | | (1,019 | ) |
| | | | | | | | | | | | |
Operating expenses | | | | | | | | | | | | |
General, administrative and other | | | 77,606 | | | | 4 | | | | 77,610 | |
Marketing | | | 10,847 | | | | (1 | ) | | | 10,846 | |
Compensation | | | 983,292 | | | | - | | | | 983,292 | |
| | | | | | | | | | | | |
Total Operating Expenses | | | 1,071,745 | | | | 3 | | | | 1,071,748 | |
| | | | | | | | | | | | |
Loss from continuing operations | | | (1,072,764 | ) | | | (3 | ) | | | (1,072,767 | ) |
| | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | |
Change in derivative liability | | | 210,482 | | | | 687,585 | | | | 898,067 | |
Interest expense | | | 209,268 | | | - | | | | 209,268 | |
| | | | | | | | | | | |
Total Other (Income) Expense | | | 419,750 | | | | 687,585 | | | | 1,107,335 | |
| | | | | | | | | | | | |
Net loss | | $ | (1,492,514 | ) | | $ | (687,588 | ) | | $ | (2,180,102 | ) |
| | | | | | | | | | | | |
Net loss per common share | | $ | (0.00 | ) | | $ | (0.02 | ) | | $ | (0.02 | ) |
|
The following tables summarize the effect of corrections on the consolidated financial statements as of the year ended July 31, 2013: |
|
Statement of Operations |
|
| | Previously | | | Adjustments | | | Current | |
Reported | Restatement |
| | | | | | | | | | | | |
Revenues | | $ | 55,143 | | | $ | - | | | $ | 55,143 | |
Cost of goods sold | | | 36,411 | | | | - | | | | 36,411 | |
Gross profit | | | 18,732 | | | | - | | | | 18,732 | |
| | | | | | | | | | | | |
Operating expenses | | | | | | | | | | | | |
General, administrative and other | | | 502,162 | | | | (220 | ) | | | 501,942 | |
Marketing | | | 982,637 | | | | - | | | | 982,637 | |
Product development | | | 37,077 | | | | - | | | | 37,077 | |
Compensation | | | 313,007 | | | | 50,997 | | | | 364,004 | |
| | | | | | | | | | | | |
Total Operating Expenses | | | 1,834,886 | | | | 50,777 | | | | 1,885,660 | |
| | | | | | | | | | | | |
Other expense | | | | | | | | | | | | |
Interest expense | | | 120,329 | | | | - | | | | 120,329 | |
Change in derivative liability | | | 242,430 | | | | - | | | | 242,430 | |
| | | | | | | | | | | | |
Loss from continuing operations | | | (2,178,910 | ) | | | (50,777 | ) | | | (2,229,687 | ) |
Discontinued operations, net | | | - | | | | - | | | | - | |
Net loss | | $ | (2,178,910 | ) | | $ | (50,777 | ) | | $ | (2,229,687 | ) |
Net loss per common share | | $ | (0.02 | ) | | $ | (0.00 | ) | | $ | (0.02 | ) |
|
The following tables summarize the effect of corrections on the consolidated financial statements as of the nine months ended April 30, 2013: |
|
Statement of Operations |
|
| | Previously | | | Adjustments | | | Current | |
Reported | Restatement |
| | | | | | | | | | | | |
Revenues | | $ | 53,283 | | | $ | - | | | $ | 53,283 | |
Cost of goods sold | | | 35,499 | | | | - | | | | 35,499 | |
Gross Profit | | | 17,784 | | | | - | | | | 17,784 | |
| | | | | | | | | | | | |
Operating expenses | | | | | | | | | | | | |
General, administrative and other | | | 368,094 | | | | - | | | | 368,094 | |
Marketing | | | 970,379 | | | | - | | | | 970,379 | |
Product development | | | 37,019 | | | | - | | | | 37,019 | |
Compensation | | | 300,001 | | | | 50,777 | | | | 351,778 | |
Total Operating Expenses | | | 1,676,493 | | | | 50,777 | | | | 1,727,270 | |
| | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | |
Interest expense and finance costs | | | (23,601 | ) | | | - | | | | (23,601 | ) |
Change in derivative liability | | | (118,133 | ) | | | - | | | | (118,133 | ) |
Loss from continuing operations | | | (1,785,231 | ) | | | (50,777 | ) | | | 1,851,220 | ) |
Discontinued operations, net | | | - | | | | - | | | | - | |
| | | | | | | | | | | | |
Net loss | | $ | (1,785,231 | ) | | $ | (50,777 | ) | | $ | (1,851,220 | ) |
| | | | | | | | | | | | |
Net loss per common share | | $ | (0.00 | ) | | $ | (0.02 | ) | | $ | (0.02 | ) |
|
The following tables summarize the effect of corrections on the consolidated financial statements as of the six months ended January 31, 2013: |
|
Statement of Operations |
|
| | Previously | | | Adjustments | | | Current | |
Reported | Restatement |
| | | | | | | | | | | | |
Revenue | | $ | - | | | $ | - | | | $ | - | |
Operating expenses | | | | | | | | | | | | |
General, administrative and other | | | 175,673 | | | | - | | | | 175,673 | |
Marketing | | | 183,129 | | | | - | | | | 183,129 | |
Product development | | | 37,019 | | | | - | | | | 37,019 | |
Compensation | | | 314,500 | | | | - | | | | 314,500 | |
Total Operating Expenses | | | 710,321 | | | | - | | | | 710,321 | |
Other income (expense) | | | | | | | | | | | | |
Interest expense and finance costs | | | (8,389 | ) | | | | | | | (8,389 | ) |
Loss from continuing operations | | | (718,710 | ) | | | - | | | | (718,710 | ) |
Discontinued operations, net | | | - | | | | - | | | | - | |
Net loss | | $ | (718,710 | ) | | $ | - | | | $ | (718,710 | ) |
Net loss per common share | | $ | (0.00 | ) | | $ | (0.00 | ) | | $ | (0.00 | ) |
|
The following tables summarize the effect of corrections on the consolidated financial statements as of the three months ended October 31, 2012: |
|
Statement of Operations |
|
| | Previously | | | Adjustments | | | Current | |
Reported | Restatement |
| | | | | | | | | | | | |
Revenue | | $ | - | | | $ | - | | | $ | - | |
| | | | | | | | | | | | |
Operating expenses | | | | | | | | | | | | |
General, administrative and other | | | 53,380 | | | | - | | | | 53,380 | |
Marketing | | | 43,131 | | | | - | | | | 43,131 | |
Product development | | | 21,744 | | | | - | | | | 21,744 | |
Compensation | | | 27,000 | | | | - | | | | 27,000 | |
Total Operating Expenses | | | 145,255 | | | | - | | | | 145,255 | |
| | | | | | | | | | | | |
Loss from continuing operations | | | (145,255 | ) | | | - | | | | (145,255 | ) |
| | | | | | | | | | | | |
Discontinued operations, net | | | - | | | | - | | | | - | |
| | | | | | | | | | | | |
Net loss | | $ | (145,255 | ) | | $ | - | | | $ | (145,255 | |
| | | | | | | | | | | | |
Net loss per common share | | $ | (0.00 | ) | | $ | (0.00 | ) | | $ | (0.00 | ) |
|
The following tables summarize the effect of corrections on the consolidated financial statements as of the year ended July 31, 2012: |
|
Statement of Operations |
|
| | Previously | | | Adjustments | | | Current | |
Reported | Restatement |
| | | | | | | | | | | | |
Revenue | | $ | - | | | $ | - | | | $ | - | |
Operating expenses | | | | | | | | | | | | |
General, administrative and other | | | 49,820 | | | | 16,415 | | | | 66,235 | |
Marketing | | | 5,863 | | | | - | | | | 5,863 | |
Product development | | | 45,413 | | | | - | | | | 45,413 | |
Compensation | | | 20,000 | | | | - | | | | 20,000 | |
Total Operating Expenses | | | 121,096 | | | | 16,415 | | | | 137,511 | |
| | | | | | | | | | | | |
Loss from continuing operations | | | (121,096 | ) | | | 16,415 | | | | (137,511 | ) |
| | | | | | | | | | | | |
Discontinued operations, net | | | (25 | ) | | | - | | | | (25 | ) |
| | | | | | | | | | | | |
Net loss | | $ | (121,121 | ) | | $ | 16,415 | | | $ | (137,536 | ) |
| | | | | | | | | | | | |
Net loss per common share | | $ | (0.00 | ) | | $ | (0.00 | ) | | $ | (0.00 | ) |
|