Non-Invasive Monitoring Systems (NIMU) 10-Q 15 Dec 15 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Oct. 31, 2015	Dec. 14, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Registrant Name	NON INVASIVE MONITORING SYSTEMS INC /FL/
Entity Central Index Key	720,762
Current Fiscal Year End Date	--07-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	NIMU
Entity Common Stock, Shares Outstanding		79,007,423

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Current assets
Cash	$ 95	$ 40
Prepaid expenses, deposits, and other current assets	37	52
Total current assets	132	92
Inventories, net	432	435
Tooling and equipment, net	0	1
Total assets	564	528
Current liabilities
Accounts payable and accrued expenses	1,133	1,128
Customer deposits	4	4
Total current liabilities	1,137	1,132
Long term liabilities
Notes payable - Related party	1,475	1,350
Notes payable - other	50	50
Total long term liabilities	1,525	1,400
Total liabilities	2,662	2,532
Shareholders' deficit
Common Stock, par value $0.01 per share; 400,000,000 shares authorized; 79,007,423 shares issued and outstanding as of October 31, 2015 and July 31, 2015	790	790
Additional paid in capital	21,930	21,930
Accumulated deficit	(24,835)	(24,741)
Accumulated other comprehensive loss	(48)	(48)
Total shareholders' deficit	(2,098)	(2,004)
Total liabilities and shareholders' deficit	564	528
Series B Preferred Stock [Member]
Shareholders' deficit
Preferred Stock, Value, Issued	0	0
Total shareholders' deficit	0	0
Series C Preferred Stock [Member]
Shareholders' deficit
Preferred Stock, Value, Issued	62	62
Total shareholders' deficit	62	62
Series D Preferred Stock [Member]
Shareholders' deficit
Preferred Stock, Value, Issued	3	3
Total shareholders' deficit	$ 3	$ 3

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	79,007,423	79,007,423
Common stock, shares outstanding	79,007,423	79,007,423
Series B Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	100	100
Preferred stock, shares issued	100	100
Preferred stock, shares outstanding	100	100
Preferred stock, liquidation preference	$ 10	$ 10
Series C Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	62,048	62,048
Preferred stock, shares issued	62,048	62,048
Preferred stock, shares outstanding	62,048	62,048
Preferred stock, liquidation preference	$ 62	$ 62
Series D Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	5,500	5,500
Preferred stock, shares issued	2,782	2,782
Preferred stock, shares outstanding	2,782	2,782
Preferred stock, liquidation preference	$ 4,173	$ 4,173

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Revenues
Product sales, net	$ 8	$ 0
Total revenues	8	0
Operating costs and expenses
Cost of sales	3	0
Selling, general and administrative	59	71
Total operating costs and expenses	62	71
Operating loss	(54)	(71)
Interest expense, net	(40)	(34)
Net loss	(94)	(105)
Comprehensive net loss	(94)	(105)
Net loss attributable to common shareholders	$ (94)	$ (105)
Weighted average number of common shares outstanding - basic and diluted (in shares)	79,007	78,943
Basic and diluted loss per common share (in dollars per share)	$ 0	$ 0

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT - 3 months ended Oct. 31, 2015 - USD ($) $ in Thousands	Total	Series B Preferred Stock [Member]	Series C Preferred Stock [Member]	Series D Preferred Stock [Member]	Common Stock [Member]	Additional Paid In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
Balance at Jul. 31, 2015	$ (2,004)	$ 0	$ 62	$ 3	$ 790	$ 21,930	$ (24,741)	$ (48)
Balance (in shares) at Jul. 31, 2015		100	62,048	2,782	79,007,423
Net loss	(94)	$ 0	$ 0	$ 0	$ 0	0	(94)	0
Balance at Oct. 31, 2015	$ (2,098)	$ 0	$ 62	$ 3	$ 790	$ 21,930	$ (24,835)	$ (48)
Balance (in shares) at Oct. 31, 2015		100	62,048	2,782	79,007,423

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Operating activities
Net loss	$ (94)	$ (105)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	1	0
Changes in operating assets and liabilities
Inventories, net	3	0
Prepaid expenses, deposits and other current assets	15	12
Accounts payable and accrued expenses	5	64
Net cash used in operating activities	(70)	(29)
Financing activities
Proceeds from notes payable - related party	125	50
Net cash provided by financing activities	125	50
Net increase in cash	55	21
Cash, beginning of period	40	21
Cash, end of period	$ 95	$ 42

ORGANIZATION AND BUSINESS

ORGANIZATION AND BUSINESS	3 Months Ended
	Oct. 31, 2015
Organization and Business [Abstract]
ORGANIZATION AND BUSINESS	1. ORGANIZATION AND BUSINESS Organization. ® Business. ® The Company received revenue from royalties on sales of diagnostic monitoring hardware and software by SensorMedics and from VivoMetrics in prior years. SensorMedics indicated they will discontinue licensed product sales after current inventory is depleted. We believe SensorMedics inventory is depleted and, therefore, the royalty revenue from SensorMedics is expected to be minimal to none. VivoMetrics ceased operations in July 2009 and filed for Chapter 11 bankruptcy protection in October 2009. Pursuant to VivoMetrics’ approved bankruptcy plan of reorganization, our license with VivoMetrics was assigned to another company; however, there can be no assurance as to the future amount of royalty revenue, if any, that we may derive from this license or from our existing license with SensorMedics. In fiscal year 2009, NIMS began commercial sales of its third generation Exer-Rest therapeutic platforms. During the calendar years 2005 to 2007, the Company designed, developed and manufactured the first Exer-Rest platform (now the Exer-Rest AT), a second generation acceleration therapeutics platform, and updated its operations to promote the Exer-Rest The Company has developed a third generation of Exer-Rest The Company’s condensed consolidated financial statements have been prepared and presented on a basis assuming it will continue as a going concern. As reflected in the accompanying unaudited condensed consolidated financial statements, the Company had net losses of $ 94,000 105,000 24.8 95,000 1,005,000 These matters raise substantial doubt about the Company’s ability to continue as a going concern. Absent any significant revenues from product sales, the Company will need to incur additional debt, equity financing or a strategic collaboration for the Company to continue its business activities. Management intends to obtain any additional capital needed to continue its business activities through new debt or equity financing, but there can be no assurance that it will be successful in this regard. The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary from the outcome of this uncertainty.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Oct. 31, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Non-Invasive Monitoring Systems of Florida, Inc., which has no current operations, and NIMS of Canada, Inc., a Canadian corporation, which has no current operations. All material inter-company accounts and transactions have been eliminated in consolidation. 95,000 40,000 Allowances for Doubtful Accounts. Inventories. Inventories were stated at lower of cost or market as of July 31, 2015 and at the lower of cost or net realizable value beginning August 1, 2015 using the first-in, first-out method, and are evaluated at least annually for impairment. Inventories at October 31, 2015 and July 31, 2015 primarily consisted of finished Exer-Rest units and accessories. Provisions for potentially obsolete or slow-moving inventory are made based on management’s analysis of inventory levels, historical obsolescence and future sales forecasts. As of October 31, 2015 and July 31, 2015 the Company has classified its inventories as non-current to reflect the extended time frame the Company expects to sell the Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of October 31, 2015 and July 31, 2015. The respective carrying value of certain on-balance-sheet financial instruments such as cash, royalties and other receivables, accounts payable and accrued expenses approximate fair values because they are short term in nature or they bear current market interest rates. As of October 31, 2015, the respective carrying value of the notes payable – related party and notes payable – other approximate our current borrowing rate for similar debt instruments of comparable maturity and are considered Level 3 measurements within the fair value hierarchy. Level 3 Inputs to the valuation methodology are those that are unobservable and significant to the fair value measurement. In July 2015, the FASB issued an accounting standard update which affects the measurement of inventory. The update requires inventory to be measured using the lower of cost and net realizable value. Net realizable value is defined in the update as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. The update applies to all types of inventory except inventory measured using LIFO or the retail inventory method. The update is effective prospectively for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual reporting period. The Company adopted the update as of August 1, 2015. The adoption did not have a material effect on the financial statements. In May 2014, the FASB issued an accounting standard update which affects the revenue recognition of entities that enter into either (1) certain contracts to transfer goods or services to customers or (2) certain contracts for the transfer of nonfinancial assets. The update indicates an entity should recognize revenue in an amount that reflects the consideration the entity expects to be entitled to in exchange for the goods or services transferred by the entity. The update is to be applied to the beginning of the year of implementation or retrospectively and is effective for annual periods beginning after December 15, 2017 and in interim periods in that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the effect the update will have on its financial statements.

INVENTORIES

INVENTORIES	3 Months Ended
	Oct. 31, 2015
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES October 31, 2015 July 31, 2015 Work-in-progress, spare parts and accessories $ 11 $ 11 Finished goods 421 424 Total inventories $ 432 $ 435

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Oct. 31, 2015
Stock-Based Compensation [Abstract]
STOCK-BASED COMPENSATION	4. STOCK-BASED COMPENSATION The Company measures the cost of employee, officer and director services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The fair value of the Company’s stock option awards is expensed over the vesting life of the underlying stock options using the graded vesting method, with each tranche of vesting options valued separately. The Company recorded stock-based compensation of $ 0 The Company’s 2000 Stock Option Plan, as amended (the “2000 Plan”), provides for the issuance of up to 2,000,000 Company’s common stock as of the grant date or an exercise price of not less than 110% of the fair value for a 10% shareholder. In November 2010, the Company’s Board and Compensation Committee approved the Non-Invasive Monitoring Systems, Inc. 2011 Stock Incentive Plan (the “2011 Plan”). Awards granted under the 2011 Plan may consist of incentive stock options, stock appreciation rights (SAR), restricted stock grants, restricted stock units (RSU) performance shares, performance units or cash awards. Subject to adjustment in certain circumstances, the 2011 Plan authorizes up to 4,000,000 The Company did not grant any stock options during the three months ended October 31, 2015 or 2014. Shares Weighted Weighted Aggregate Options outstanding, July 31, 2015 378,750 $ 0.380 Options granted - n/a Options exercised - n/a Options forfeited or expired - n/a Options outstanding, October 31, 2015 378,750 $ 0.380 0.88 $ 0 Options expected to vest, October 31, 2015 378,750 $ 0.380 0.88 $ 0 Options exercisable, October 31, 2015 378,750 $ 0.380 0.88 $ 0 Of the 378,750 378,750 As of October 31, 2015, there was no unrecognized costs related to outstanding stock options.

ROYALTIES

ROYALTIES	3 Months Ended
	Oct. 31, 2015
Royalties [Abstract]
ROYALTIES	5. ROYALTIES The Company is a party to two licensing agreements with SensorMedics and VivoMetrics. The Company previously received royalty income from the sale of its diagnostic monitoring hardware and software from SensorMedics and previously received royalties from VivoMetrics prior to its bankruptcy. Royalty income from the SensorMedics license amounted to $ 0

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Oct. 31, 2015
Notes Payable [Abstract]
NOTES PAYABLE	6. NOTES PAYABLE 2010 Credit Facility. 10 1.0 July 31, 2017 11 16 1,000,000 2011 Promissory Notes. 50,000 10 100,000 11 July 31, 2017 2012 Promissory Note. 50,000 11 2013 Promissory Note. 50,000 11 2014 Promissory Note. 50,000 11 2015 Promissory Notes. 50,000 11 On April 16, 2015, the Company entered into a promissory note (“April 2015 Frost Gamma Note”) in the amount of $ 100,000 10 11 On August 12, 2015, the Company entered into a promissory note in the principal amount of $ 25,000 10 11 On October 27, 2015, the Company entered into a promissory note in the principal amount of $ 50,000 10 11 On October 27, 2015, the Company entered into a promissory note in the principal amount of $ 50,000 11 Year Ending October 31, 2017 1,525,000 $ 1,525,000

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
	Oct. 31, 2015
Shareholders' Equity [Abstract]
SHAREHOLDERS' EQUITY	7. SHAREHOLDERS' EQUITY The Company has three classes of Preferred Stock. Holders of Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are entitled to vote with the holders of common stock as a single class on all matters. Series C Preferred Stock is redeemable by the Company at a price of $ 0.10 1.00 0.10 4.20 Series D Preferred Stock is not redeemable by the Company. This series has a liquidation value of $ 1,500 The Company did not issue any shares of the Company’s common stock during the three months ended October 31, 2015 and the Company issued 65,000 13 No preferred stock dividends were declared for the three months ended October 31, 2015 and 2014.

BASIC AND DILUTED LOSS PER SHAR

BASIC AND DILUTED LOSS PER SHARE	3 Months Ended
	Oct. 31, 2015
Basic and Diluted Loss Per Share [Abstract]
BASIC AND DILUTED LOSS PER SHARE	8. BASIC AND DILUTED LOSS PER SHARE Basic net loss per common share is computed by dividing net loss attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Diluted potential common shares consist of incremental shares issuable upon exercise of stock options and warrants and conversion of preferred stock. In computing diluted net loss per share for the three months ended October 31, 2015 and 2014, no dilution adjustment has been made to the weighted average outstanding common shares because the assumed exercise of outstanding options and warrants and the conversion of preferred stock would be anti-dilutive. October 31, 2015 October 31, 2014 Stock options 378,750 378,750 Series C Preferred Stock 1,551,200 1,551,200 Series D Preferred Stock 13,910,000 13,910,000 Total 15,839,950 15,839,950

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Oct. 31, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Company signed a five year lease for office space in Miami, Florida with a company owned by Dr. Phillip Frost, who is the beneficial owner of more than 10 1,250 3,800 4,000 The Company signed a three year lease for warehouse space in Hialeah, Florida with a company jointly controlled by Dr. Frost and Dr. Jane Hsiao, the Company’s Chairman and Interim CEO. The rental payments under the Hialeah warehouse lease, which commenced February 1, 2009 and expired on January 31, 2012, were approximately $ 5,000 0 6,000 Accounts payable related to the two leases above totaled approximately $185,000 and $182,000 respectively, at October 31, 2015 and July 31, 2015. As more fully described in Note 6, the Company entered into a $ 1.0 1.0 July 31, 2017 On September 12, 2011, the Company entered into a promissory note in the principal amount of $ 50,000 10 11 On May 30, 2012, the Company entered into a promissory note in the principal amount of $ 50,000 11 On February 22, 2013, the Company entered into a promissory note in the amount of $ 50,000 11 On September 24, 2014, the Company entered into a promissory note in the principal amount of $ 50,000 11 On February 2, 2015, the Company entered into a promissory note (the “2015 Hsiao Note”) in the principal amount of $ 50,000 11 On April 16, 2015, the Company entered into a promissory note (“April 2015 Frost Gamma Note”) in the amount of $ 100,000 10 11 On August 12, 2015, the Company entered into a promissory note in the principal amount of $ 25,000 10 11 On October 27, 2015, the Company entered into a promissory note in the principal amount of $ 50,000 10 11 On October 27, 2015, the Company entered into a promissory note in the principal amount of $ 50,000 11 The Company incurred interest expense related to the Credit Facility of approximately $ 28,000 11,000 6,000 680,000 641,000 Dr. Hsiao, Dr. Frost and directors Steven Rubin and Rao Uppaluri are each stockholders, current or former officers and/or directors or former directors of TransEnterix, Inc. (formerly SafeStitch Medical, Inc.) (“TransEnterix”), a publicly-traded, medical device manufacturer, Tiger X Medical, Inc. (“Tiger X”) (formerly known as Cardo Medical, Inc.), a publicly traded former medical device company, and IDI, Inc. (“IDI”) (formerly known as Tiger Media), a publicly-traded data fusion company. The Company’s Chief Financial Officer also served as the Chief Financial Officer of TransEnterix until October 2, 2013. The Company’s Chief Financial Officer continued as an employee of TransEnterix until March 3, 2014, during which he supervised the Miami based accounting staff of TransEnterix under a cost sharing arrangement whereby the total salaries of the Miami based accounting staff was shared by the Company and TransEnterix. Since December 2009, the Company’s Chief Legal Officer has served under a similar cost sharing arrangement as Corporate Counsel of IDI and as the Chief Legal Officer of each of TransEnterix and Tiger X. The Company recorded selling, general and administrative costs and expenses to account for the sharing of costs under these arrangements of $ 6,800 7,800 2,000 1,200

COMMITMENTS

COMMITMENTS	3 Months Ended
	Oct. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	COMMITMENTS Leases The Company is under an operating lease agreement for our corporate office space that expired in 2012 and continues on a month to month basis. We house our inventory in approximately 4,000 Generally, the lease agreements require the payment of base rent plus escalations for increases in building operating costs and real estate taxes. Rental expense for operating leases amounted to $ 14,000 17,000 2016 $ 30,000 2017 7,000 Total $ 37,000 Product Development and Supply Agreement. On September 4, 2007, the Company entered into a Product Development and Supply Agreement (the “Agreement”) with Sing Lin Technologies Co. Ltd., a company based in Taichung, Taiwan ("Sing Lin"). Pursuant to the Agreement, the Company consigned to Sing Lin the development and design of the next generation Exer-Rest and related devices. The Agreement commenced as of September 3, 2007 and had a term that extended three years from the acceptance by NIMS of the first run of production units. Thereafter, the Agreement automatically renewed for successive one year terms unless either party sent the other a notice of non-renewal. Either party was permitted to terminate the Agreement with ninety days prior written notice. Upon termination, each party’s obligations under the Agreement were to be limited to obligations related to confirm orders placed prior to the termination date. Pursuant to the Agreement, Sing Lin designed, developed and manufactured the tooling required to manufacture the acceleration therapeutic platforms for a total cost to the Company of $ 471,000 150,000 150,000 Under the now-terminated Agreement, the Company also granted Sing Lin the exclusive distribution rights for the products in certain countries in the Far East, including Taiwan, China, Japan, South Korea, Malaysia, Indonesia and certain other countries. Sing Lin agreed not to sell the Products outside its geographic areas in the Far East. The Agreement provided for the Company to purchase approximately $ 2.6 4.1 8.8 1.7 90,000 41,000 13.9 As of October 31, 2015, the Company had not placed orders sufficient to meet the first-year or second-year minimum purchase obligations under the Agreement. The Company notified Sing Lin in June 2010 that it was terminating the Agreement effective September 2010, and Sing Lin in July 2010 demanded that the Company place orders sufficient to fulfill the three year minimum purchase obligations in the Agreement. As of December 11, 2015, Sing Lin has not followed up on its July 2010 demand. There can be no assurance that Sing Lin will not attempt to enforce its remedies under the Agreement, or pursue other potential remedies.

LONG-LIVED ASSETS

LONG-LIVED ASSETS	3 Months Ended
	Oct. 31, 2015
Long Lived Assets [Abstract]
LONG-LIVED ASSETS	11. LONG-LIVED ASSETS Estimated October 31, July 31, Furniture and fixtures, leasehold improvements, office equipment and computers 3 – 5 years $ 85 $ 85 Website and software 3 years 26 26 111 111 Less accumulated depreciation (111) (110) Tooling and equipment, net $ - $ 1 Depreciation expense was $ 1,000 0 25,000

SUMMARY OF SIGNIFICANT ACCOUN18

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Oct. 31, 2015
Accounting Policies [Abstract]
Consolidation	Consolidation. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Non-Invasive Monitoring Systems of Florida, Inc., which has no current operations, and NIMS of Canada, Inc., a Canadian corporation, which has no current operations. All material inter-company accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents. 95,000 40,000
Allowances for Doubtful Accounts	Allowances for Doubtful Accounts.
Inventories	Inventories. Inventories were stated at lower of cost or market as of July 31, 2015 and at the lower of cost or net realizable value beginning August 1, 2015 using the first-in, first-out method, and are evaluated at least annually for impairment. Inventories at October 31, 2015 and July 31, 2015 primarily consisted of finished Exer-Rest units and accessories. Provisions for potentially obsolete or slow-moving inventory are made based on management’s analysis of inventory levels, historical obsolescence and future sales forecasts. As of October 31, 2015 and July 31, 2015 the Company has classified its inventories as non-current to reflect the extended time frame the Company expects to sell the
Tooling and Equipment	Tooling and Equipment.
Long-lived Assets	Long-lived Assets.
Taxes Assessed On Revenue-Producing Transactions	Taxes Assessed on Revenue-Producing Transactions.
Income Taxes	Income Taxes.
Revenue Recognition	Revenue Recognition.
Advertising Costs	Advertising Costs.
Research and Development Costs	Research and Development Costs.
Warranties	Warranties.
Stock-based compensation	Stock-based compensation.
Fair Value of Financial Instruments	Fair Value of Financial Instruments. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of October 31, 2015 and July 31, 2015. The respective carrying value of certain on-balance-sheet financial instruments such as cash, royalties and other receivables, accounts payable and accrued expenses approximate fair values because they are short term in nature or they bear current market interest rates. As of October 31, 2015, the respective carrying value of the notes payable – related party and notes payable – other approximate our current borrowing rate for similar debt instruments of comparable maturity and are considered Level 3 measurements within the fair value hierarchy. Level 3 Inputs to the valuation methodology are those that are unobservable and significant to the fair value measurement.
Foreign Currency Translation	Foreign Currency Translation.
Comprehensive Income (Loss)	Comprehensive Income (Loss).
Loss Contingencies	Loss Contingencies.
Recent Accounting Pronouncements	Recent Accounting Pronouncements. In July 2015, the FASB issued an accounting standard update which affects the measurement of inventory. The update requires inventory to be measured using the lower of cost and net realizable value. Net realizable value is defined in the update as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. The update applies to all types of inventory except inventory measured using LIFO or the retail inventory method. The update is effective prospectively for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual reporting period. The Company adopted the update as of August 1, 2015. The adoption did not have a material effect on the financial statements. In May 2014, the FASB issued an accounting standard update which affects the revenue recognition of entities that enter into either (1) certain contracts to transfer goods or services to customers or (2) certain contracts for the transfer of nonfinancial assets. The update indicates an entity should recognize revenue in an amount that reflects the consideration the entity expects to be entitled to in exchange for the goods or services transferred by the entity. The update is to be applied to the beginning of the year of implementation or retrospectively and is effective for annual periods beginning after December 15, 2017 and in interim periods in that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the effect the update will have on its financial statements.

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Oct. 31, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	The Company’s inventory consisted of the following at October 31, 2015 and July 31, 2015 (in thousands): October 31, 2015 July 31, 2015 Work-in-progress, spare parts and accessories $ 11 $ 11 Finished goods 421 424 Total inventories $ 432 $ 435

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Oct. 31, 2015
Stock-Based Compensation [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity	A summary of the Company’s stock option activity for the three months ended October 31, 2015 is as follows: Shares Weighted Weighted Aggregate Options outstanding, July 31, 2015 378,750 $ 0.380 Options granted - n/a Options exercised - n/a Options forfeited or expired - n/a Options outstanding, October 31, 2015 378,750 $ 0.380 0.88 $ 0 Options expected to vest, October 31, 2015 378,750 $ 0.380 0.88 $ 0 Options exercisable, October 31, 2015 378,750 $ 0.380 0.88 $ 0

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Oct. 31, 2015
Notes Payable [Abstract]
Schedule of Line of Credit Facilities	At October 31, 2015, the Company was obligated under the above described Credit Facility and promissory notes to make future principal payments (excluding interest) as follows: Year Ending October 31, 2017 1,525,000 $ 1,525,000

BASIC AND DILUTED LOSS PER SH22

BASIC AND DILUTED LOSS PER SHARE (Tables)	3 Months Ended
	Oct. 31, 2015
Basic and Diluted Loss Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Potential common shares not included in calculating diluted net loss per share are as follows: October 31, 2015 October 31, 2014 Stock options 378,750 378,750 Series C Preferred Stock 1,551,200 1,551,200 Series D Preferred Stock 13,910,000 13,910,000 Total 15,839,950 15,839,950

COMMITMENTS (Tables)

COMMITMENTS (Tables)	3 Months Ended
	Oct. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Future minimum rental commitments under non-cancelable leases are as approximately follows for the years ended July 31: 2016 $ 30,000 2017 7,000 Total $ 37,000

LONG-LIVED ASSETS (Tables)

LONG-LIVED ASSETS (Tables)	3 Months Ended
	Oct. 31, 2015
Long Lived Assets [Abstract]
Schedule of Long Lived Assets Held-for-sale	The Company’s long-lived assets include furniture and equipment, tooling, websites and software, leasehold improvements, patents and trademarks. Tooling and equipment, net of accumulated depreciation, consists of the following at October 31, 2015 and July 31, 2015 (in thousands): Estimated October 31, July 31, Furniture and fixtures, leasehold improvements, office equipment and computers 3 – 5 years $ 85 $ 85 Website and software 3 years 26 26 111 111 Less accumulated depreciation (111) (110) Tooling and equipment, net $ - $ 1

ORGANIZATION AND BUSINESS (Deta

ORGANIZATION AND BUSINESS (Details Textual) - USD ($)	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Jul. 31, 2015
Net income (loss)	$ (94,000)	$ (105,000)
Accumulated deficit	(24,835,000)		$ (24,741,000)
Cash	95,000
Negative Working Capital	$ 1,005,000

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Jul. 31, 2015	Oct. 31, 2014	Jul. 31, 2014
Cash, end of period	$ 95	$ 40	$ 42	$ 21
Maximum [Member]
Income Tax Examination, Year under Examination	2,016
Minimum [Member]
Income Tax Examination, Year under Examination	2,012

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Work-in-progress, spare parts and accessories	$ 11	$ 11
Finished goods	421	424
Total inventories	$ 432	$ 435

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details)	3 Months Ended
	Oct. 31, 2015USD ($)$ / sharesshares
Options outstanding Shares, Beginning balance | shares	378,750
Options granted, Shares | shares	0
Options exercised, Shares | shares	0
Options forfeited or expired, Shares | shares	0
Options outstanding Shares, Ending balance | shares	378,750
Options expected to vest, Shares | shares	378,750
Options exercisable, Shares | shares	378,750
Options outstanding Weighted Average Exercise Price, Beginning balance | $ / shares	$ 0.38
Options granted, Weighted Average Exercise Price | $ / shares	0
Options exercised, Weighted Average Exercise Price | $ / shares	0
Options forfeited or expired, Weighted Average Exercise Price | $ / shares	0
Options outstanding Weighted Average Exercise Price, Ending balance | $ / shares	0.38
Options expected to vest, Weighted Average Exercise Price | $ / shares	0.38
Options exercisable, Weighted Average Exercise Price | $ / shares	$ 0.38
Options outstanding, Weighted average remaining contractual term (years)	10 months 17 days
Options expected to vest, Weighted average remaining contractual term (years)	10 months 17 days
Options exercisable, Weighted average remaining contractual term (years)	10 months 17 days
Options outstanding, Aggregate intrinsic Value | $	$ 0
Options expected to vest, Aggregate intrinsic Value | $	0
Options exercisable, Aggregate intrinsic Value | $	$ 0

STOCK-BASED COMPENSATION (Det29

STOCK-BASED COMPENSATION (Details Textual) - USD ($)	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Jul. 31, 2015	Nov. 30, 2010
Allocated Share-based Compensation Expense	$ 0	$ 0
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding, Number	378,750		378,750
2000 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	2,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Description	Companys common stock as of the grant date or an exercise price of not less than 110% of the fair value for a 10% shareholder.
Share-based Compensation Arrangement by Share-based Payment Award, Options, Other Increases (Decreases) in Period	378,750
2011 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized				4,000,000

ROYALTIES (Details Textual)

ROYALTIES (Details Textual) - USD ($)	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Sensormedics [Member]
Indefinite-lived Intangible Assets [Line Items]
Royalty Income, Nonoperating	$ 0	$ 0

NOTES PAYABLE (Details)

NOTES PAYABLE (Details)	Oct. 31, 2015USD ($)
2,017	$ 1,525,000
Total	$ 1,525,000

NOTES PAYABLE (Details Textual)

NOTES PAYABLE (Details Textual) - USD ($)	Sep. 12, 2011	Mar. 31, 2010	Oct. 31, 2015	Oct. 27, 2015	Aug. 12, 2015	Jul. 31, 2015	Apr. 16, 2015	Feb. 02, 2015	Sep. 24, 2014	Feb. 22, 2013	May. 30, 2012
2011 Promissory Notes [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount	$ 100,000
2011 Promissory Notes [Member] | Frost Gamma Investment Trust [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	11.00%
Debt Instrument, Face Amount	$ 50,000
Debt Instrument, Maturity Date	Jul. 31, 2017
Beneficial Ownership Percentage	10.00%
2012 Promissory Notes [Member] | Hsu Gamma Investments, L.P [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage											11.00%
Debt Instrument, Face Amount											$ 50,000
2013 Promissory Notes [Member] | Jane Hsiao [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage										11.00%
Debt Instrument, Face Amount										$ 50,000
2014 Promissory Notes [Member] | Jane Hsiao [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage									11.00%
Debt Instrument, Face Amount									$ 50,000
2015 Promissory Note [Member] | Frost Gamma Investment Trust [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage				11.00%	11.00%		11.00%
Debt Instrument, Face Amount				$ 50,000	$ 25,000		$ 100,000
Beneficial Ownership Percentage				10.00%	10.00%		10.00%
2015 Promissory Note [Member] | Jane Hsiao [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage				11.00%				11.00%
Debt Instrument, Face Amount				$ 50,000				$ 50,000
2010 Credit Facility [Member]
Short-term Debt [Line Items]
Line of Credit Facility, Amount Outstanding		$ 1,000,000	$ 1,000,000			$ 1,000,000
Debt Instrument, Maturity Date			Jul. 31, 2017
2010 Credit Facility [Member] | Frost Gamma and Hsu Gamma [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount		$ 1,000,000
Debt Instrument, Maturity Date		Jul. 31, 2017
Beneficial Ownership Percentage		10.00%
2010 Credit Facility [Member] | Frost Gamma and Hsu Gamma [Member] | Maximum [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		16.00%
2010 Credit Facility [Member] | Frost Gamma and Hsu Gamma [Member] | Minimum [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		11.00%

SHAREHOLDERS' EQUITY (Details T

SHAREHOLDERS' EQUITY (Details Textual) - $ / shares	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Series B Preferred Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Preferred stock, liquidation preference	$ 100
Dividends Payable, Amount Per Share	10
Series C Preferred Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Preferred stock, liquidation preference	1
Dividends Payable, Amount Per Share	0.10
Preferred Stock, Redemption Price Per Share	0.10
Preferred Stock Conversion Premium	$ 4.20
Preferred Stock, Conversion Basis	Each share of Series C Preferred Stock is convertible into 25 shares
Series D Preferred Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Conversion of Stock, Shares Converted		13
Preferred stock, liquidation preference	$ 1,500
Preferred Stock, Conversion Basis	Each share of Series D Preferred Stock is convertible into 5,000 shares of the Company’s common stock.
Series D Preferred Stock [Member] | Common Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Convertible Preferred Stock, Shares Issued upon Conversion		65,000

BASIC AND DILUTED LOSS PER SH34

BASIC AND DILUTED LOSS PER SHARE (Details) - shares	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Class of Stock [Line Items]
Total	15,839,950	15,839,950
Stock Options [Member]
Class of Stock [Line Items]
Total	378,750	378,750
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Total	1,551,200	1,551,200
Series D Preferred Stock [Member]
Class of Stock [Line Items]
Total	13,910,000	13,910,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Textual) - USD ($)

Sep. 12, 2011

Oct. 31, 2015

Oct. 31, 2014

Oct. 27, 2015

Aug. 12, 2015

Jul. 31, 2015

Apr. 16, 2015

Feb. 02, 2015

Sep. 24, 2014

Feb. 22, 2013

May. 30, 2012

Mar. 31, 2010

Related Party Transaction [Line Items]

Operating Leases, Rent Expense

$ 14,000

$ 17,000

Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party

6,800

7,800

Accounts Payable, Related Parties

185,000

$ 182,000

2011 Promissory Notes [Member]

Related Party Transaction [Line Items]

Debt Instrument, Face Amount

$ 100,000

2011 Promissory Notes [Member] | Frost Gamma Investment Trust [Member]

Related Party Transaction [Line Items]

Debt Instrument, Face Amount

$ 50,000

Beneficial Ownership Percentage

10.00%

Debt Instrument, Interest Rate, Stated Percentage

11.00%

Debt Instrument, Maturity Date

Jul. 31, 2017

2012 Promissory Notes [Member] | Hsu Gamma Investments, L.P [Member]

Related Party Transaction [Line Items]

Debt Instrument, Face Amount

$ 50,000

Debt Instrument, Interest Rate, Stated Percentage

11.00%

2013 Promissory Notes [Member] | Jane Hsiao [Member]

Related Party Transaction [Line Items]

Debt Instrument, Face Amount

$ 50,000

Debt Instrument, Interest Rate, Stated Percentage

11.00%

Promissory Notes [Member]

Related Party Transaction [Line Items]

Interest Expense, Debt

11,000

6,000

2014 Promissory Notes [Member] | Jane Hsiao [Member]

Related Party Transaction [Line Items]

Debt Instrument, Face Amount

$ 50,000

Debt Instrument, Interest Rate, Stated Percentage

11.00%

2015 Promissory Note [Member] | Frost Gamma Investment Trust [Member]

Related Party Transaction [Line Items]

Debt Instrument, Face Amount

$ 50,000

$ 25,000

$ 100,000

Beneficial Ownership Percentage

10.00%

10.00%

10.00%

Debt Instrument, Interest Rate, Stated Percentage

11.00%

11.00%

11.00%

2015 Promissory Note [Member] | Jane Hsiao [Member]

Related Party Transaction [Line Items]

Debt Instrument, Face Amount

$ 50,000

$ 50,000

Debt Instrument, Interest Rate, Stated Percentage

11.00%

11.00%

Miami Lease [Member]

Related Party Transaction [Line Items]

Operating Leases, Rent Expense

$ 3,800

4,000

Lease Term

5 years

Miami Lease [Member] | Monthly Rental [Member]

Related Party Transaction [Line Items]

Payments for Rent

$ 1,250

Hialeah Lease [Member]

Related Party Transaction [Line Items]

Operating Leases, Rent Expense

$ 0

6,000

Lease Term

3 years

Hialeah Lease [Member] | Monthly Rental [Member]

Related Party Transaction [Line Items]

Payments for Rent

$ 5,000

Dr Phillip Frost [Member]

Related Party Transaction [Line Items]

Beneficial Ownership Percentage

10.00%

TransEnterix [Member]

Related Party Transaction [Line Items]

Accounts Payable, Related Parties

$ 2,000

1,200

2010 Credit Facility [Member]

Related Party Transaction [Line Items]

Line of Credit Facility, Amount Outstanding

$ 1,000,000

1,000,000

$ 1,000,000

Debt Instrument, Maturity Date

Jul. 31, 2017

Credit Facility [Member]

Related Party Transaction [Line Items]

Interest Expense, Debt

$ 28,000

$ 28,000

Credit Facility [Member] | Promissory Notes [Member]

Related Party Transaction [Line Items]

Interest Payable

$ 680,000

$ 641,000

COMMITMENTS (Details)

COMMITMENTS (Details)	Oct. 31, 2015USD ($)
Commitments And Contingencies [Line Items]
2,016	$ 30,000
2,017	7,000
Total	$ 37,000

COMMITMENTS (Details Textual)

COMMITMENTS (Details Textual)	Sep. 04, 2007USD ($)	Oct. 31, 2015USD ($)a	Oct. 31, 2014USD ($)	Jul. 31, 2015USD ($)
Commitments And Contingencies [Line Items]
Area of Land | a		4,000
Operating Leases, Rent Expense		$ 14,000	$ 17,000
Manufacturing Costs	$ 471,000
Cost of Utilities	150,000
Payments to Suppliers		1,700,000
Payments On Approval Of Product Prototype Concepts And Designs	$ 150,000
Purchase Obligation		13,900,000		$ 13,900,000
Exer Rest Units [Member]
Commitments And Contingencies [Line Items]
Purchase Obligation, Due in Next Twelve Months		2,600,000
Purchase Obligation, Due in Second Year		4,100,000
Purchase Obligation, Due in Third Year		8,800,000
Sing Lin [Member]
Commitments And Contingencies [Line Items]
Payables to Customers		41,000
Advances on Inventory Purchases		$ 90,000

LONG-LIVED ASSETS (Details)

LONG-LIVED ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Jul. 31, 2015
Long Lived Assets Held-for-sale [Line Items]
Tooling and equipment, Gross	$ 111	$ 111
Less accumulated depreciation	(111)	(110)
Tooling and equipment, net	0	1
Furniture and Fixtures Leasehold Improvements Office Equipment and Computers [Member]
Long Lived Assets Held-for-sale [Line Items]
Tooling and equipment, Gross	85	85
Website and Software [Member]
Long Lived Assets Held-for-sale [Line Items]
Tooling and equipment, Gross	$ 26	$ 26
Property, Plant and Equipment, Useful Life	3 years
Minimum [Member] | Furniture and Fixtures Leasehold Improvements Office Equipment and Computers [Member]
Long Lived Assets Held-for-sale [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Maximum [Member] | Furniture and Fixtures Leasehold Improvements Office Equipment and Computers [Member]
Long Lived Assets Held-for-sale [Line Items]
Property, Plant and Equipment, Useful Life	5 years

LONG-LIVED ASSETS (Details Text

LONG-LIVED ASSETS (Details Textual) - USD ($)	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Jul. 31, 2015
Long Lived Assets [Line Items]
Depreciation, Total	$ 1,000	$ 0
Property, Plant and Equipment, Gross	111,000		$ 111,000
Furniture and Fixtures [Member]
Long Lived Assets [Line Items]
Property, Plant and Equipment, Gross	$ 25,000