Quarterly report pursuant to sections 13 or 15(d)

Income Taxes

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Income Taxes
 9 Months Ended
Apr. 30, 2012
Income Taxes  
Income Taxes

Note 10—Income Taxes

 

The Company uses the asset and liability method of accounting for income taxes, in accordance with ASC 740-10, which requires the recognition of deferred tax liabilities for taxable temporary differences and deferred tax assets for deductible temporary differences and operating loss carryforwards using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit or expense is recognized as a result of changes in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when it is more likely than not that some or all of any deferred tax assets will not be realized. As of April 30, 2012 and July 31, 2011, the Company recorded a full valuation allowance on its deferred tax assets.