Annual report pursuant to section 13 and 15(d)

Consolidated Statements of Cash Flows

v2.4.0.8
Consolidated Statements of Cash Flows (USD $)
12 Months Ended 66 Months Ended
Jul. 31, 2013
Jul. 31, 2012
Jul. 31, 2013
Operating activities      
Net loss $ (7,150,187) $ (2,364,852) $ (13,350,915)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation and amortization 736,875 717,450 1,705,145
Write-down of supplies inventory     38,000
Write-down of web development costs     9,000
Fair value of derivative liabilities in excess of proceeds     808,590
Loss on extinguishment of debt   761,492 761,492
Gain on adjustment to fair value of derivative liabilities   (4,192,781) (3,150,986)
Non-cash interest expense 83,215 266,567 349,782
Share-based compensation 452,128 332,778 784,906
Common stock paid for services 34,500 249,000 366,500
Changes in operating assets and liabilities:      
(Increase) decrease in prepaid expenses 156,194 (164,220) (186,986)
(Increase) decrease in other current and long-term assets (30,845) 7,572 (39,212)
(Decrease) increase in accounts payable and accrued liabilities 344,764 15,146 729,085
(Decrease) increase in accrued compensation (218,849) 151,075  
(Decrease) increase in accrued other 60,603   60,603
(Decrease) Increase in accrued income taxes (1,600) 1,600 1,600
Net cash used in operating activities (5,533,202) (4,219,173) (11,113,396)
Investing activities      
Purchases of property and equipment (114,550) (54,511) (239,347)
Investment in intangible assets     (250,000)
Net cash used in investing activities (114,550) (54,511) (489,347)
Financing activities      
Proceeds from issuance of common stock and warrants 7,200,000 7,750,000 19,089,000
Payment of financing and offering costs (504,000) (542,500) (1,046,500)
Payment of amounts due under acquisition obligation (1,500,000) (250,000) (1,750,000)
Proceeds from exercise of warrants and stock options 280,418   280,418
Proceeds from amounts due to stockholder     153,867
Repayment of amounts due to stockholder     (153,867)
Net cash provided by financing activities 5,476,418 6,957,500 16,572,918
Net increase (decrease) in cash (171,334) 2,683,816 4,970,175
Cash and cash equivalents, at beginning of period 5,141,509 2,457,693  
Cash and cash equivalents, at end of period 4,970,175 5,141,509 4,970,175
Cash paid during the period for:      
Interest     1,357
Income taxes 2,800 800 3,600
Noncash investing and financing transaction:      
Fair value of placement agent warrants issued in the public offering 228,240 276,980 505,220
Acquisition obligation of asset purchase agreement     2,750,000
Acquisition obligation discounts - imputed interest and fair value of warrants   $ 402,355 $ 402,355