v3.3.1.900

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
CASH FLOW FROM OPERATING ACTIVITIES:
Net loss	$ (1,234,306)	$ (1,002,881)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of discount on convertible note payable	428,483	231,487
Depreciation	818	713
Changes in operating assets and liabilities:
Accounts receivable and accrued revenue	1,094	(1,674)
Inventory	(18,904)	(47,914)
Prepaid expenses	(11,750)	51,503
Accounts payable and accrued liabilities	20,838	114,367
Accrued interest payable	117,252	58,581
NET CASH USED IN OPERATING ACTIVITIES	$ (696,475)	(595,818)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets		(8,135)
NET CASH USED IN INVESTING ACTIVITIES		(8,135)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from advances	$ 701,444	601,376
NET CASH PROVIDED BY FINANCING ACTIVITIES	701,444	601,376
NET INCREASE (DECREASE) IN CASH	4,969	(2,577)
CASH, at the beginning of the period	7,411	13,103
CASH, at the end of the period	$ 12,380	$ 10,526
Cash paid during the period for:
Interest
Taxes
Noncash investing and financing transaction:
Refinance of advances into convertible notes payable	$ 683,059	$ 601,376
Noncurrent convertible notes payable reclassified to current convertible notes payable	601,376	625,296
Beneficial conversion discount on convertible note payable	683,059	$ 601,376
Conversion of convertible note payable to related party into common stock	5,611
Conversion of convertible notes payable into common stock	$ 24,726	$ 120,000

Convertible notes payable issued to related party in exchange for payment of accounts payable.

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