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 78 Months Ended
Jul. 31, 2014
Jul. 31, 2013
Jul. 31, 2012
Jul. 31, 2014
Operating activities        
Net loss $ (12,012,117) $ (7,150,187) $ (2,364,852) $ (25,363,032)
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization 780,110 736,875 717,450 2,485,256
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 20,684 83,215 266,567 370,466
Share-based compensation 1,815,559 452,128 332,778 2,600,460
Common stock paid for services 150,000 34,500 249,000 399,833
Changes in operating assets and liabilities:        
(Increase) decrease in prepaid expenses (405,904) 156,194 (164,220) (476,222)
(Increase) decrease in other current and long-term assets (11,067) (30,845) 7,572 (50,280)
(Decrease) increase in accounts payable and accrued liabilities 657,266 344,764 15,146 1,386,351
(Decrease) increase in accrued compensation 42,654 (218,849) 151,075 42,654
(Decrease) increase in accrued other (16,858) 60,603   43,745
(Decrease) Increase in accrued income taxes (800) (1,600) 1,600 800
Net cash used in operating activities (8,980,473) (5,533,202) (4,219,173) (20,093,873)
Investing activities        
Purchases of property and equipment (512,500) (114,550) (54,511) (751,847)
Investment in intangible assets       (250,000)
Net cash used in investing activities (512,500) (114,550) (54,511) (1,001,847)
Financing activities        
Proceeds from issuance of common stock and warrants 27,948,001 7,200,000 7,750,000 47,037,000
Payment of financing and offering costs (1,981,360) (504,000) (542,500) (3,027,860)
Payment of amounts due under acquisition obligation (1,000,000) (1,500,000) (250,000) (2,750,000)
Proceeds from exercise of warrants and stock options 17,408,851 280,418   17,689,274
Proceeds from amounts due to stockholder       153,867
Repayment of amounts due to stockholder       (153,867)
Net cash provided by financing activities 42,375,492 5,476,418 6,957,500 58,948,414
Net increase (decrease) in cash 32,882,519 (171,334) 2,683,816 37,852,694
Cash and cash equivalents, at beginning of period 4,970,175 5,141,509 2,457,693  
Cash and cash equivalents, at end of period 37,852,694 4,970,175 5,141,509 37,852,694
Cash paid during the period for:        
Interest       1,357
Income taxes 1,600 2,800 800 5,200
Noncash investing and financing transaction:        
Fair value of placement agent warrants issued in the public offerings 1,042,242 228,240 276,980 1,547,462
Acquisition obligation of asset purchase agreement       2,750,000
Acquisition obligation discounts - imputed interest and fair value of warrants     $ 402,355 $ 402,355