Quarterly Report (10-q)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q

[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 31, 2015

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________________ To ______________________

Commission file number: 000-53942

URBAN BARNS FOODS INC.
(Exact name of registrant as specified in its charter)

Nevada	20-0215404
(State or other jurisdiction of incorporation or	(I.R.S. Employer Identification No.)
organization)

13,000 Chemin Bélanger
Mirabel, Québec,
J7J 2N8	450-434-4344
(Address of principal executive offices) (Zip Code)	(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was require to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]

Accelerated filer [ ]

Non-accelerated filer [ ]

Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [ ] No [X]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
[ ] Yes [ ] No

APPLICABLE ONLY TO CORPORATE ISSUERS

As of January 8, 2016 the registrant’s outstanding common stock consisted of 499,948,520 shares.

Table of Contents

PART I - FINANCIAL INFORMATION		2
Item 1.	Financial Statements	F-1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	5
Item 4.	Controls and Procedures	5
PART II - OTHER INFORMATION		6
Item 1.	Legal Proceedings	6
Item 1A.	Risk Factors	6
Item 2.	Unregistered Sales of Equity Securities and Use of Procceds	6
Item 3.	Defaults Upon Senior Securities	6
Item 4.	Mine Safety Disclosures	6
Item 5.	Other Information	6

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

The unaudited interim consolidated financial statements of Urban Barns Foods Inc. (the “Company”, “Urban Barns”) follow. All currency references in this report are to U.S. dollars unless otherwise noted.

URBAN BARNS FOODS INC.

Interim Consolidated Financial Statements

For the Three Months Ended October 31, 2015

(Expressed in U.S. dollars)

(unaudited)

Financial Statement Index

Interim Consolidated Balance Sheets	F–1

Interim Consolidated Statements of Operations	F–2

Interim Consolidated Statement of Stockholder’s Deficit	F–3

Interim Consolidated Statements of Cash Flows	F–4

Notes to the Interim Consolidated Financial Statements	F–5

URBAN BARNS FOODS INC.

Interim Consolidated Balance Sheets

(Expressed in U.S. dollars)

	October 31,		July 31,
	2015		2015
	$		$
	(unaudited)
ASSETS
Current assets
Cash	610		7,442
Accounts receivable	41,198		20,141
Other receivables	–		21,229
Inventory	16,283		18,767
Prepaid expenses and deposits	3,433		3,304
Total current assets	61,524		70,883
Prepaid expenses and deposits non-current	23,606		23,221
Property and equipment	425,750		449,800
Intangible assets	109,001		106,913
Total assets	619,881		650,817

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities

Accounts payable and accrued liabilities	405,971		336,478
Notes payable	251,280		244,854
Convertible notes (elected to record at fair value)	1,313,151		396,135
Due to related parties	267,058		165,270
Total current liabilities	2,237,460		1,142,737

Warrant derivative liability	34,454		35,262
Total liabilities	2,271,914		1,177,999

Stockholders’ deficit

Preferred stock Authorized: 100,000,000 shares, par value $0.001 Issued and outstanding: nil shares	–		–
Common stock, Class A Authorized: 500,000,000 shares, par value $0.001 Issued and outstanding: 472,248,520 and 289,500,928 shares, respectively	472,249		289,501
Common stock, Class B Authorized: 25,000,000 shares, value of $0.001 Issued and outstanding: nil shares	–		–
Additional paid-in capital	5,348,053		5,036,168
Common stock Issuable	1,618		1,618
Deferred compensation	–		(2,009	)
Accumulated other comprehensive loss	(68,747	)	(79,983	)
Deficit	(7,405,206	)	(5,772,477	)
Total stockholders’ deficit	(1,652,033	)	(527,182	)
Total liabilities and stockholders’ deficit	619,881		650,817
Nature of operations and continuance of business (Note 1)
Commitments (Note 12)
Subsequent events (Note 13)

(The accompanying notes are an integral part of these interim consolidated financial statements)

F-1

URBAN BARNS FOODS INC.

Interim Consolidated Statements of Operations

(Expressed in U.S. dollars)

(unaudited)

	Three Months		Three Months
	Ended		Ended
	October 31,		October 31,
	2015		2014
	$		$

Revenue	36,027		17,252
Cost of sales	9,103		5,908
Gross margin	26,924		11,344

Operating expenses
Bad debt expense	3,979		–
Depreciation	23,925		27,310
Foreign exchange loss	14,177		2,827
General and administrative	87,295		467,455
Professional fees	42,267		64,910
Research and development	61,675		215,147
Total operating expenses	233,318		777,649
Loss from operations	(206,394	)	(766,305	)
Other income (expense)
Interest expense	(17,237	)	–
Warrant derivative liability recovery	810		–
Loss on change in fair value of convertible notes	(1,409,908	)	–
Total other income (expense)	(1,426,335	)	–
Net loss	(1,632,729	)	(766,305	)
Translation adjustment	11,236		–
Comprehensive loss	(1,621,493	)	(766,305	)

Net loss per share, basic and diluted	(0.01	)	(0.00	)

Weighted average shares outstanding	315,661,226		278,242,125

(The accompanying notes are an integral part of these interim consolidated financial statements)

F-2

URBAN BARNS FOODS INC.

Interim Consolidated Statement of Stockholders Deficit

(Expressed in U.S. dollars)

									Deficit
							Accumulated		Accumulated
	Common Stock		Additional	Common			Other		During the
	Class A		Paid-In	Stock	Deferred		Comprehensive		Development
	Shares	Amount	Capital	Issuable	Compensation		Loss		Stage		Total
	#	$	$	$	$		$		$		$
Balance, July 31, 2015	289,500,928	289,501	5,036,168	1,618	(2,009	)	(79,983	)	(5,772477	)	(527,182	)

Shares issued for the conversion of notes and accrued interest	182,747,592	182,748	311,885	–	–		–		–		494,633

Deferred compensation costs charged to operations	–	–	–	–	2,009		–		–		2,009

Translation adjustment	–		–	–	–		11,236		–		11,236

Net loss for the period	–	–	–	–	–		–		(1,632,729	)	(1,632,729	)

Balance, October 31, 2015 (unaudited)	472,248,520	472,248	5,348,053	1,618	–		(68,747	)	(7,405,206	)	(1,652,033	)

(The accompanying notes are an integral part of these interim consolidated financial statements)

F-3

URBAN BARNS FOODS INC.

Interim Consolidated Statements of Cash Flows

(Expressed in U.S. dollars)

(unaudited)

	Three Months		Three Months
	Ended		Ended
	October 31,		October 31,
	2015		2014
	$		$
Operating Activities
Net loss for the period	(1,632,729	)	(766,305	)
Adjustments to reconcile net loss to net cash used in operating activities:

Interest accrual	9,915		–
Bad debt expense	3,979		–
Depreciation	23,925		27,310
Deferred compensation	2,009		8,402
Loss on change in fair value of convertible notes	1,409,908		–
Warrant derivative recovery	(810	)	–
Stock-based compensation	–		280,000
Unrealized foreign exchange	15,613		–
Changes in operating assets and liabilities:
Accounts receivable	(20,819	)	(9,779	)
Other receivables	16,900		(24,253	)
Inventory	(8,227	)	(6,204	)
Prepaid expenses and deposits	(577	)	8,058
Accounts payable and accrued liabilities	77,119		21,100
Due to related parties	4,974		(12,001	)
Net cash used in operating activities	(98,820	)	(473,672	)
Investing Activities
Purchase of intangible assets	(2,344	)	(3,570	)
Purchase of property and equipment	(254	)	(88,981	)
Net cash used in investing activities	(2,598	)	(92,551
Financing Activities
Proceeds from issuance of common stock	–		400,500
Proceeds from related parties	94,696		–
Proceeds from note payable	–		197,835
Net cash provided by financing activities	94,696		598,335
Effect of foreign exchange on cash	(110	)	–
Change in cash	(6,832	)	32,112
Cash, beginning of period	7,442		75,969
Cash, end of period	610		108,081

Non-cash investing and financing activities:
Shares issued upon conversion of notes	494,633		–
Property, plant, and equipment included in due to related party	1,162		–
Property, plant, and equipment included in accounts payable	58,846		–
Supplemental disclosures:
Interest paid	–		–
Income tax paid	–		–

(The accompanying notes are an integral part of these interim consolidated financial statements)

F-4

URBAN BARNS FOODS INC.

Notes to the Interim Consolidated Financial Statements

October 31, 2015

(Expressed in U.S. dollars)

(unaudited)

1.	Nature of Operations and Continuance of Business

	Urban Barns Foods Inc. (the “Company”) was incorporated under the laws of the State of Nevada on May 21, 2007 as HL Ventures Inc. The Company is a produce production company, or grower, that aims to be the supplier of choice for fresh, locally grown, Kosher-certified organic or high-quality fruits and vegetables for urban consumers.

	These interim consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As at October 31, 2015, the Company had a working capital deficit of $2,175,936, had reported losses since inception from operations, and had an accumulated deficit of $7,405,206. The continued operations of the Company are dependent on its ability to generate future cash flows from operations or obtain additional financing. Management is obtaining working capital through debt or equity financing until such time that the Company’s operations generate positive operating cash flow. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These interim consolidated financial statements do not include any adjustments to the recorded assets or liabilities that might be necessary should the Company be unable to continue as a going concern.

2.	Summary of Significant Accounting Policies

	Basis of Presentation

	The unaudited consolidated interim financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). They do not include all information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended July 31, 2015 included in the Company’s Annual Report on Form 10-K filed with the SEC. The consolidated interim financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three months ended October 31, 2015 are not necessarily indicative of the results that may be expected for the year ending July 31, 2016.

	Recent Accounting Pronouncements

	Recent pronouncements with future effective dates are either not applicable or are not expected to be significant to the interim consolidated financial statements of the Company.

3.	Property and Equipment

		Accumulated		Net Carrying
	Cost	Depreciation	Impairment	Value
	$	$	$	$
Production equipment
October 31, 2015	649,736	223,986	–	425,750
Production equipment
July 31, 2015	700,621	200,233	50,588	449,800

4.	Intangible Assets

		Accumulated
	Cost	Depreciation	Net Carrying Value
	$	$	$
Patent development costs October 31, 2015	109,001	–	109,001
Patent development costs July 31, 2015	106,913	–	106,913

F-5

URBAN BARNS FOODS INC.

Notes to the Interim Consolidated Financial Statements

October 31, 2015

(Expressed in U.S. dollars)

(unaudited)

5.	Convertible Notes

	(a)	On February 10, 2015, the Company issued a promissory note for $166,000, less an initial financing charge of $12,000. Pursuant to the note, the amount owing is unsecured, bears interest at 8% per annum, and is due on February 12, 2016. The amount owing is convertible at the option of the holder into shares of the Company’s Class A common stock 180 days after the date of issuance of the note (August 9, 2015) at a conversion rate of 70% of the average of the three lowest closing bid prices of the Company’s Class A common stock for the 12 trading days ending one trading day prior to the date a notice of conversion is sent by the holder to the Company. As at October 31, 2015, the Company recorded accrued interest of $9,026, which has been included in accounts payable and accrued liabilities. During the period ended October 31, 2015, the Company issued 55,249,826 shares of Class A common stock pursuant to the conversion of principal of $78,960. Principal outstanding at October 31, 2015 was $87,040.

		The Company has elected to record this note at fair value. As at October 31, 2015, the fair value of the note was $746,057, which is based on the market price of the shares that would be issuable upon conversion.

	(b)	On March 23, 2015, the Company issued a promissory note for $115,000, less an initial financing charge of $15,000. Pursuant to the note, the amount owing is unsecured, bears guaranteed interest at 7% per annum, and is due on March 23, 2016. The amount owing is convertible at the option of the holder into shares of the Company’s Class A common stock at a price of $0.021 per share or 65% of the lowest closing bid price of the Company’s Class A common stock for the 20 trading days ending one day prior to the date a notice of conversion is sent by the holder to the Company. As at October 31, 2015, the Company recorded accrued interest of $8,050, which has been included in accounts payable and accrued liabilities. During the period ended October 31, 2015, the Company issued 84,997,766 shares of Class A common stock pursuant to the conversion of principal of $53,574. Principal outstanding at October 31, 2015 was $61,426.

		The Company has elected to record this note at fair value. As at October 31, 2015, the fair value of the note was $567,094, which is based on the market price of the shares that would be issuable upon conversion.

	(c)	On March 23, 2015, the Company issued a promissory note for $27,500, less an initial financing charge of $2,500. Pursuant to the note, the amount owing is unsecured, bears guaranteed interest at 7% per annum, and is due on March 23, 2016. The amount owing is convertible at the option of the holder into shares of the Company’s Class A common stock at a price of $0.021 per share or 65% of the lowest closing bid price of the Company’s Class A common stock for the 20 trading days ending one day prior to the date a notice of conversion is sent by the holder to the Company.

		The Company has elected to record this note at fair value. During the period ended October 31, 2015 the Company issued 42,500,000 shares of Class A common stock pursuant to the conversion of the entire principal and accrued interest.

6.	Warrant Derivative Liability

	The non-compensatory warrants issued, as disclosed in Note 10, are a derivative liability due to being exercisable in a currency different than the functional currency of the Company. These warrants will continue to be a derivative liability until exercised or expired.

	The fair values as at October 31, 2015 and July 31, 2015 are as follows:

	October 31,	July 31,
	2015	2015
	$	$
Warrant derivative liabilities:
6,500,000 warrants issued on August 20, 2014	19,128	20,520
3,150,000 warrants issued on September 17, 2014	10,761	11,590
1,736,445 warrants issued on February 19, 2015	4,565	3,512
	34,454	35,262

F-6

URBAN BARNS FOODS INC.

Notes to the Interim Consolidated Financial Statements

October 31, 2015

(Expressed in U.S. dollars)

(unaudited)

6.	Warrant Derivative Liability (continued)

The Company recorded a recovery of $810 being the reduction in the fair value to October 31, 2015.

The fair value of the derivative financial liabilities was determined using the Black-Scholes Model using the following assumptions:

		Risk-free	Expected	Expected
	Expected	Interest	Dividend	Life (in
	Volatility	Rate	Yield	years)
At the issuance date:

6,500,000 warrants issued on August 20, 2014	281%	0.94%	0%	3.00
3,150,000 warrants issued on September 17, 2014	281%	1.08%	0%	3.00
1,736,445 warrants issued on February 19, 2015	144%	0.67%	0%	2.00
As at October 31, 2015:

6,500,000 warrants issued on August 20, 2014	194%	0.67%	0%	1.81
3,150,000 warrants issued on September 17, 2014	194%	0.67%	0%	1.88
1,736,445 warrants issued on February 19, 2015	194%	0.67%	0%	1.31

7.	Notes Payable

	(a)	During the year ended July 31, 2014, the Company entered into an agreement with certain shareholders, whereby the shareholders would buy certain licenses required by the Company. The Company would then buy back the licenses for Cdn$50,500 plus a 25% premium within the first 90 days, a 35% premium for the balance of the first 12 months, and a 50% premium during months 13-24. If the Company does not buy the licenses back within 2 years (expiring October 21, 2015), the license will be subject to a 5% royalty for the following 3 years. As at October 31, 2015, the Company owed $57,093 (Cdn$75,750), (July 31, 2015 - $58,059 (Cdn$68,175)) in order to buy back the licenses.

	(b)	As at October 31, 2015, the Company owed $170,450 (Cdn$223,000) for a promissory note that was issued on October 29, 2014. The note is secured against the Company’s net assets, bears interest at a rate of 12.68% per annum, and is due the earlier of: (i) the Company raising Cdn$1,000,000 or more through issuance of equity or debt; or (ii) October 29, 2015. As at October 31, 2015, $193,377 is owed on this note which includes accrued interest of $22,291. This note was issued to a significant shareholder of the Company.

8.	Related Party Transactions

	The following are related party transactions not disclosed elsewhere in these interim consolidated financial statements:

	(a)	During the year ended July 31, 2015, the Company accrued $18,356 for severance pay to the former President and CEO of the Company which is unsecured, non-interest bearing, and due on demand. As at October 31, 2015, $17,914 (July 31, 2015 - $17,964) was owing to the former President.

	(b)	As at October 31, 2015, the Company was owed $1,371 (July 31, 2015 - $1,374) from the Vice President of the Company which is unsecured, non-interest bearing, and due on demand.

	(c)	As at October 31, 2015, the Company owed $45,864 (Cdn$60,000) (July 31, 2015 - $45,988) for a loan payable to a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and due on the earlier of i) the Company raising Cdn$1,000,000 or more through issuance of equity or debt or ii) January 31, 2016. As at October 31, 2015, $5,038 (Cdn$6,590) (July 31, 2015 - $3,352) is owed for accrued interest.

F-7

URBAN BARNS FOODS INC.

Notes to the Interim Consolidated Financial Statements

October 31, 2015

(Expressed in U.S. dollars)

(unaudited)

8.	Related Party Transactions (continued)

	(d)	As at October 31, 2015, the Company owed $45,864 (Cdn$60,000) (July 31, 2015 - $45,988) for a loan payable to a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and due on the earlier of i) the Company raising Cdn$1,000,000 or more through issuance of equity or debt or ii) January 31, 2016. As at October 31, 2015, $4,808 (Cdn$6,290) (July 31, 2015 - $3,362) is owed for accrued interest.

	(e)	As at October 31, 2015, the Company owed $24,523 (Cdn$32,082) (July 31, 2015 - $24,591) for a loan payable to a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and due on January 31, 2016. As at October 31, 2015, $1,187 (Cdn$1,553) (July 31, 2015 - $405) is owed for accrued interest.

	(f)	As at October 31, 2015, the Company owed $21,280 (Cdn$27,839) (July 31, 2015 - $21,338) for a loan payable to a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and due on January 31, 2016. As at October 31, 2015, $1,054 (Cdn$1,378) (July 31, 2015 - $375) is owed for accrued interest.

	(g)	As at October 31, 2015, the Company owed $48,025 (Cdn$62,249) (July 31, 2015 - $nil) for a loan payable to a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and due on January 31, 2016. As at October 31, 2015, $620 (Cdn$812) is owed for accrued interest.

	(h)	As at October 31, 2015, the Company owed $47,207 (Cdn$61,758) (July 31, 2015 - $nil) for a loan payable to a former director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and due on January 31, 2016. As at October 31, 2015, $616 (Cdn$806) is owed for accrued interest.

	(i)	As at October 31, 2015, the Company owed $3,058 (Cdn$4,000) (July 2015 - $3,065) to a company controlled by the former President of the Company which is unsecured, non-interest bearing, and due on demand.

	(j)	Included in accounts payable as at October 31, 2015 is $23,893 (July 31, 2015 - $20,275) owing to related parties for expense reimbursements.

	(k)	As at October 31, 2015, the Company had deferred compensation of $nil (July 31, 2015 - $2,009) incurred to directors and officers of the Company. During the period ended October 31, 2015, deferred compensation of $2,009 (2014 - $8,402) was charged to operations and included in general and administrative expenses.

	(l)	During the period ended October 31, 2015, the Company incurred consulting fees (included in general and administrative expenses) of $27,702 (Cdn$36,750) (2014 - $49,902) to directors and officers of the Company.

	(m)	During the period ended October 31, 2015, the Company incurred consulting fees (included in general and administrative expenses) of $nil (2014 - $2,034) to the daughter of the former President of the Company.

	(n)	During the period ended October 31, 2015, the Company incurred consulting fees (included in general and administrative expenses) of $nil (2014 - $4,072) and research and development expenses of $nil (2014 - $19,001) to the daughter of the Vice President of the Company.

	(o)	During the period ended October 31, 2015, the Company granted nil (2014 - 5,925,000) stock options with a fair value of $nil (2014 - $237,000) (included in general and administrative expenses) to directors and officers of the Company.

	(p)	During the period ended October 31, 2015, the Company granted nil (2014 - 200,000) stock options with a fair value of $nil (2014 - $8,000) (included in general and administrative expenses) for bookkeeping services to the spouse of the President of the Company.

F-8

URBAN BARNS FOODS INC.

Notes to the Interim Consolidated Financial Statements

October 31, 2015

(Expressed in U.S. dollars)

(unaudited)

9.	Common Stock

	(a)	On August 19, 2015, the Company issued 1,785,714 shares of Class A common stock at $0.011 per share pursuant to the conversion of $15,000 of the convertible note as described in Note 5(a).

	(b)	On September 25, 2015, the Company issued 8,823,529 shares of Class A common stock at $0.008 per share pursuant to the conversion of $15,000 of the convertible note as described in Note 5(a).

	(c)	On October 2, 2015, the Company issued 5,000,000 shares of Class A common stock at $0.01 per share pursuant to the conversion of $7,475 of the convertible note as described in Note 5(c).

	(d)	On October 2, 2015, the Company issued 7,246,377 shares of Class A common stock at $0.004 per share pursuant to the conversion of $10,000 of the convertible note as described in Note 5(b).

	(e)	On October 12, 2015, the Company issued 13,333,333 shares of Class A common stock at $0.002 per share pursuant to the conversion of $20,000 of the convertible note as described in Note 5(a).

	(f)	On October 12, 2015, the Company issued 14,888,889 shares of Class A common stock at $0.002 per share pursuant to the conversion of $13,400 of the convertible note as described in Note 5(b).

	(g)	On October 15, 2015, the Company issued 13,636,364 shares of Class A common stock at $0.001 per share pursuant to the conversion of $15,000 of the convertible note as described in Note 5(a).

	(h)	On October 15, 2015, the Company issued 7,000,000 shares of Class A common stock at $0.001 per share pursuant to the conversion of $5,915 of the convertible note as described in Note 5(c).

	(i)	On October 20, 2015, the Company issued 17,670,886 shares of Class A common stock at $0.001 per share pursuant to the conversion of $13,960 of the convertible note as described in Note 5(a).

	(j)	On October 20, 2015, the Company issued 18,060,417 shares of Class A common stock at $0.001 per share pursuant to the conversion of $8,669 of the convertible note as described in Note 5(b).

	(k)	On October 22, 2015, the Company issued 14,000,000 shares of Class A common stock at $0.002 per share pursuant to the conversion of $7,280 of the convertible note as described in Note 5(c).

	(l)	On October 22, 2015, the Company issued 18,958,333 shares of Class A common stock at $0.002 per share pursuant to the conversion of $9,100 of the convertible note as described in Note 5(b).

	(m)	On October 28, 2015, the Company issued 16,500,000 shares of Class A common stock at $0.002 per share pursuant to the conversion of $8,580 of the convertible note as described in Note 5(c).

	(n)	On October 28, 2015, the Company issued 18,093,750 shares of Class A common stock at $0.002 per share pursuant to the conversion of $8,685 of the convertible note as described in Note 5(b).

	(o)	On October 30, 2015, the Company issued 7,750,000 shares of Class A common stock at $0.01 per share pursuant to the conversion of $3,720 of the convertible note as described in Note 5(b).

10.

Share Purchase Warrants

The following table summarizes the continuity of share purchase warrants:

		Weighted Average
	Number of	Exercise Price
	Warrants	$
Balance, July 31,2014	2,027,027	–
Issued	11,746,445	0.07
Balance, July 31, 2015	13,773,472	0.07
Issued	–	–
Balance, October 31, 2015	13,773,472	0.07

F-9

URBAN BARNS FOODS INC.

Notes to the Interim Consolidated Financial Statements

October 31, 2015

(Expressed in U.S. dollars)

(unaudited)

10.

Share Purchase Warrants (continued)

A summary of share purchase warrants outstanding and exercisable as at October 31, 2015 is as follows:

	Exercise Price	Number of warrants	Remaining life
Expiry Date	$	Outstanding and exercisable	(years)

October 29, 2016	0.070	2,027,027	1.00
August 20, 2017	0.075	6,500,000	1.81
September 17, 2017	0.075	3,510,000	1.88
February 19, 2017	0.040	1,736,445	1.31
		13,773,472	1.64

11.	Stock Options

	The Company has adopted a stock option plan pursuant to which options may be granted to directors, officers, employees and consultants of the Company to a maximum of 25,000,000 shares issued and outstanding at the time of the grant. The exercise price of each option is equal to the market price on the date of the grant. The options vest at the discretion of the Board of Directors.

The following table summarizes the continuity of the Company’s stock options:

			Weighted	Aggregate
			Average	Intrinsic
	Number		Exercise Price	Value
	of Options		$	$
Outstanding, July 31, 2014	10,500,000		0.10	–

Granted	7,200,000		0.10
Expired	(200,000	)	0.10
Outstanding, July 31, 2015	17,500,000		0.10	–
Granted	–		0.10
Forfeited	(10,100,000	)	0.10
Outstanding, October 31, 2015	7,400,000		0.10	–

F-10

URBAN BARNS FOODS INC.

Notes to the Interim Consolidated Financial Statements

October 31, 2015

(Expressed in U.S. dollars)

(unaudited)

11.

Stock Options (continued)

A summary of stock options outstanding and exercisable as at October 31, 2015 is as follows:

	Exercise
	Price	Number of warrants	Remaining life
Expiry Date	$	Outstanding and exercisable	(years)

February 6, 2024	0.10	3,750,000	8.27
September 5, 2024	0.10	3,450,000	8.85
March 5, 2025	0.10	200,000	9.35
		7,400,000	8.57

12.

Commitments and Contingencies

(a)

The Company has entered into a research agreement with McGill University (“McGill”), where McGill will perform testing, research and development towards improvements and efficiency gains on the Company’s patent-pending growing machines. Under the terms of the agreement, the Company will pay $500,000, where $25,000 was due upon the signing of the agreement (paid), $75,000 is due when the Company either completes financing or four growing machines, and $100,000 annually on October 1, 2014 (paid), October 1, 2015, October 1, 2016, and October 1, 2017. The agreement expires on January 1, 2018.


	(b)	On March 19, 2014, the Company leased a warehouse located in Québec. The term of the lease commenced on March 20, 2014, and expires on May 31, 2019. The monthly lease rate is subject to an annual increase of 2%. The minimum lease payments over the remaining term of the lease are as follows:

	Year	Cdn$
	2016	184,824
	2017	188,520
	2018	192,291
	2019	195,487
		761,122

(c)

On July 17, 2014, the Company entered into a lease agreement for a delivery van at a rate of Cdn$630 per month until July 17, 2019. The minimum lease payments over the remaining term of the lease are as follows:

	Year	Cdn$
	2016	7,560
	2017	7,560
	2018	7,560
	2019	7,560
		30,240

F-11

URBAN BARNS FOODS INC.

Notes to the Interim Consolidated Financial Statements

October 31, 2015

(Expressed in U.S. dollars)

(unaudited)

12.

Commitments and Contingencies (continued)

(d)

On December 1, 2014, the Company entered into a lease agreement for a vehicle at a rate of Cdn$952 per month until October 31, 2018. The minimum lease payments over the remaining term of the lease are as follows:

	Year	Cdn$
	2016	11,424
	2017	11,424
	2018	11,424
	2019	2,856
		37,128

(e)

During the year ended July 31, 2015, the Company was subject to two civil claims totaling $25,380, filed by family members of a former director and officer of the Company. The family members received a judgement in their favor. As at October 31, 2015, $25,380 remained unpaid and has been recorded in accounts payable and accrued liabilities.

13.

Subsequent Events


	(a)	On November 13, 2015, the Company received a loan of $1,875 (Cdn$2,500) from a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and is due on January 31, 2016.

	(b)	On November 13, 2015, the Company received a loan of $1,875 (Cdn$2,500) from a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and is due on January 31, 2016.


	(c)	On November 13, 2015, pursuant to an exchange agreement entered into by two of the convertible note holders, the Company issued a new promissory note for $68,449. Pursuant to the note, the amount owing is unsecured, bears guaranteed interest at 8% per annum, and is due on November 13, 2016. The amount owing is convertible at the option of the holder into shares of the Company’s Class A common stock at a rate of 65% of the lowest trading price of the Company’s Class A common stock for the 25 consecutive trading days prior to the date a notice of conversion is sent by the holder to the Company.

	(d)	On November 16, 2015, the Company issued 20,000,000 shares of Class A common stock at $0.00052 per share pursuant to the conversion of $10,400 of the convertible note as described in Subsequent Event Note 5(d).

	(e)	On November 20, 2015, the Company received a non-refundable deposit of $18,743 (Cdn$25,000) from a potential investor for the ability to perform due diligence.

	(f)	On November 23, 2015, the Company issued 7,700,000 shares of Class A common stock at $0.00052 per share pursuant to the conversion of $4,004 of the convertible note as described in Note 13(d).

	(g)	On December 8, 2015, the Company received $18,393 (Cdn$25,000) from a related party.

	(h)	On December 8, 2015, the Company received $21,612 (Cdn$30,000) from a related party.

F-12

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward Looking Statements

This quarterly report on Form 10-Q contains certain forward-looking statements. All statements other than statements of historical fact are “forward-looking statements” for purposes of this report, including any projections of earnings, revenues,or other financial items; any statements of the plans, strategies and objectives of management for future operation; any statements concerning proposed new products, services or developments; any statements regarding future economic conditions or performance; statements of belief; and any statement of assumptions underlying any of the foregoing. Such forward-looking statements are subject to inherent risks and uncertainties, and actual results could differ materially from those anticipated by the forward-looking statements.

These forward-looking statements involve significant risks and uncertainties, including, but not limited to, the following: competition, promotional costs and the risk of declining revenues. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of a number of factors. These forward-looking statements are made as of the date of this filing, and we assume no obligation to update such forward-looking statements. The following discusses our financial condition and results of operations based upon our consolidated financial statements which have been prepared in conformity with accounting principles generally accepted in the United States. It should be read in conjunction with our financial statements and the notes thereto included elsewhere in this report.

Results of Operations

For the Three Months Ended October 31, 2015 and 2014

During the three months ended October 31, 2015, the Company generated revenues of $36,027 with a cost of sales of $9,103, resulting in a gross margin of $26,924. This compares favourably with revenues of $17,252, a cost of sales of $5,908 and a gross margin of $11,344 for the corresponding period in 2014. During the three months ended October 31, 2015, the Company experienced a consistent increase in demand for its leafy green vegetables. In addition, the Company was able to rectify previous difficulties with water issues, together with broken cables on certain of its Generation 3 growing machines, and production continued to steadily increase as a result. During the three months ended October 31, 2014, revenues were impacted by the fact that the Company’s first growing facility had only commenced operations in June 2014.

The Company incurred operating expenses of $233,318 for the three months ended October 31, 2015, compared with $777,649 during the three months ended October 31, 2014. This decrease was due to tighter controls over spending, resulting in significantly lower general and administrative expenses, professional fees, and research and development costs offset by higher depreciation expense.

The Company incurred a net loss of $1,632,729 for the three months ended October 31, 2015, compared with a net loss of $766,305 during the three months ended October 31, 2014. The increase in the net loss was primarily due to a significant increase in the loss on conversion of convertible notes. In contrast, the Company’s loss from operations for the three months ended October 31, 2015 was only $206,394, compared to $766,305 for the three months ended October 31, 2014. This reflects the increase in sales described above as well as lower operating costs, offset to some extent by a higher interest expense figure.

Liquidity and Capital Resources

The following table provides selected financial data about the Company for the quarter ended October 31, 2015:

	October 31,		July 31,
	2015		2015
	$		$

Cash	610		7,442
Current Assets	61,524		70,883
Total Assets	619,881		650,817
Current Liabilities	2,237,460		1,142,737
Accumulated Deficit	(7,405,206	)	(5,772,477	)

As of October 31, 2015, the Company had cash of $610, total current assets of $61,524, total current liabilities of $2,237,460 and a working capital deficit $2,175,936, compared to cash of $7,442, total current assets of $70,883, total current liabilities of $1,142,737 and a working capital deficit of $1,071,854 as of July 31, 2015. The increase in the Company’s working capital deficit is due in large part to the revaluation of the convertible notes to fair value at October 31, 2015.

During the three months ended October 31, 2015, the Company received net cash of $94,696 from financing activities, compared to net cash received of $598,335 from financing activities during the three months ended October 31, 2014. The decrease is primarily due to $400,500 in proceeds the Company received in the prior period from the issuance of its common stock and $197,835 in proceeds the Company received from the issuance of a note payable. During the quarter ended October 31, 2015, the Company received proceeds of $94,696 from related parties.

During the three months ended October 31, 2015, the Company used net cash of $98,820 on operating activities compared to $473,672 during the three months ended October 31, 2014. The decrease in net cash used was due primarily to the fact there was no stock-based compensation in this period compared to the prior year.

During the three months ended October 31, 2015, the Company used net cash of $2,597 on investing activities compared to $92,551 during the period ended October 31, 2014. The decrease in cash used was due to the fact that purchases of equipment to open the Company’s first growing facility had been spent in the previous year. The Company is continuing its payments for patents on its intellectual property.

The Company estimates that its expenses over the next 12 months will be approximately $1,632,021 as summarized in the table below. These estimates may change significantly depending on the nature of its future business activities and its ability to raise capital from investors or other sources.

Description	Potential Completion Date	Estimated Expenses ($)
Cost of sales	12 months	282,248
Direct and indirect labour	12 months	407,531
Rent	12 months	151,709
Professional fees	12 months	100,000
General & administrative expenses	12 months	212,105
Purchase of additional growing machines & building improvements	12 months	478,428
Total		1,632,021

The Company’s general and administrative expenses for the year will consist of consulting fees, office maintenance, communication expenses (cellular, internet, fax and telephone), bank charges, courier and postage costs, office supply costs and fees related to its website. The Company plans to build 12 new large capacity growing machines for installation into currently available space within its Mirabel, Québec growing facility.

Based on its planned expenditures, the Company will require additional funds of at least $1,600,000 to proceed with its business plan over the next 12 months. If it is not able to obtain additional financing on a timely basis, the Company will be unable to conduct its operations as planned, and will not be able to meet its obligations as they become due. In such event, the Company will be forced to delay its growing capacity expansion, scale down or perhaps even cease its operations.

Inflation

The amounts presented in the Company’s financial statements do not provide for the effect of inflation on its operations or financial position. The net operating losses shown would be greater than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement costs or by using other inflation adjustments.

Off-Balance Sheet Arrangements

As of October 31, 2015, the Company had one off balance sheet transaction that will have or is reasonably likely to have a current or future effect on its financial condition, changes in its financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. In collaboration with McGill University researcher Dr. Mark Lefsrud of the Faculty of Agricultural and Environmental Sciences, the Company will further develop an indoor plant growth system aimed at expanding locally grown food. With industrial support from the Company, McGill University was awarded an NSERC Collaborative Research & Development (CRD) grant in the amount of $240,000 in order to continue the development of this important project. The grant will run for an initial period of two years with the aim of optimizing light emitting diodes to assess photosynthetic efficiency of horticultural plants. The project is focused on the refinement of the photo synthetically active radiation efficiency (PAR curve) of plants using light emitting diodes (LEDs), and the basic science research will be used to optimize the lighting in the Company’s cubic farming system to maximize production and reduce energy costs.

Critical Accounting Policies

The Company’s financial statements are impacted by the accounting policies used and the estimates and assumptions made by management during their preparation. A complete summary of these policies are included in Note 2 of the notes to the Company’s financial statements. The Company has identified below the accounting policies that are of particular importance in the presentation of its financial position, results of operations and cash flows, and which require the application of significant judgment by management.

Inventory

Inventory is comprised of seeds for growing agricultural products and is recorded at the lower of cost or net realizable value on a first-in first-out basis. The Company establishes inventory reserves for estimated obsolete or unsaleable inventory equal to the difference between the cost of inventory and the estimated realizable value based upon assumptions about future and market conditions.

Intangible Assets

Intangible assets consist of patent development costs. Intangible assets acquired are initially recognized and measured at cost and amortized over its expected useful life once the patents are in use. Impairment tests are conducted annually or more frequently if events or changes in circumstances indicate that the asset may be impaired. The impairment test compares the carrying amount of the intangible asset with its fair value, and an impairment loss is recognized in income for the excess, if any. The amortization methods and estimated useful lives of intangible assets are reviewed annually.

Foreign Currency Translation

Our functional and reporting currency is the Canadian, dollar, and our reporting currency is the U.S. dollar. Accordingly, monetary assets and liabilities denominated in a foreign currency are translated at the exchange rate in effect at the balance sheet date while non-monetary assets and liabilities denominated in a foreign currency are translated at historical rates. Revenue and expense items denominated in a foreign currency are translated at exchange rates prevailing when such items are recognized in the statement of operations and comprehensive loss.

Exchange gains or losses arising on translation of foreign currency items are included in the statement of operations. We follow the current rate method of translation with respect to the presentation of our consolidated financial statements in the reporting currency, which is the United States dollar. Accordingly, assets and liabilities are translated into United States dollars at the period-end exchange rates while revenue and expenses are translated at the prevailing exchange rates during the period. Related exchange gains and losses are included in a separate component of stockholders’ equity (deficit) as accumulated other comprehensive income..

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not required.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed by it in the reports that the Company files or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Director of Finance, as appropriate to allow timely decisions regarding required disclosure. The Company carried out an evaluation, under the supervision and with the participation of management, including its Chief Executive Officer and Director of Finance, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of October 31, 2015. Based on the evaluation of these disclosure controls and procedures the Chief Executive Officer and Director of Finance concluded that the Company’s disclosure controls and procedures were effective.

Changes in Internal Controls

During the quarter covered by this report there were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f) under the Exchange Act) that materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

None.

ITEM 1A. RISK FACTORS.

Not required.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.

The following exhibits are included with this quarterly filing:

	Exhibit No.	Description

	31.1	Sec. 302 Certification of Principal Executive Officer
	31.2	Sec. 302 Certification of Principal Financial Officer
	32.1	Sec. 906 Certification of Principal Executive Officer
	32.2	Sec. 906 Certification of Principal Financial Officer

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

January 8, 2016	Urban Barns Foods Inc.



	/s/ Robyn Jackson
	By: Robyn Jackson
	President, Chief Executive Officer, Secretary, Treasurer & Director

Exhibit 31.1

CERTIFICATION

I, Robyn Jackson, certify that:

1.	I have reviewed this report on Form 10-Q of Urban Barns Foods Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 8, 2016

/s/ Robyn Jackson

Robyn Jackson

President, Chief Executive Officer, Secretary, Treasurer & Director

Exhibit 31.2

CERTIFICATION

I, Hugh Blakely, certify that:

1.	I have reviewed this report on Form 10-Q of Urban Barns Foods Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 8, 2016

/s/ Hugh Blakely

Hugh Blakely

Director of Finance & Principal Accounting Officer

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Urban Barns Foods Inc. (the “Company”) on Form 10-Q for the period ending October 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robyn Jackson, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

	(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

IN WITNESS WHEREOF, the undersigned has executed this certification as of the 8th day of January, 2016.

/s/ Robyn Jackson

Robyn Jackson

President, Chief Executive Officer, Secretary, Treasurer & Director

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Urban Barns Foods Inc. (the “Company”) on Form 10-Q for the period ending October 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Hugh Blakely, Director of Finance of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

	(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

IN WITNESS WHEREOF, the undersigned has executed this certification as of the 8thday of January, 2016.

/s/ Hugh Blakely

Hugh Blakely

Director of Finance & Principal Accounting Officer

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Oct. 31, 2015	Jan. 07, 2016
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 31, 2015
Trading Symbol	urbf
Entity Registrant Name	Urban Barns Foods Inc.
Entity Central Index Key	0001410253
Current Fiscal Year End Date	--07-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		499,948,520
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1

Interim Consolidated Balance Sheets - USD ($)	Oct. 31, 2015	Jul. 31, 2015
Current assets
Cash	$ 610	$ 7,442
Accounts receivable	41,198	20,141
Other receivables	0	21,229
Inventory	16,283	18,767
Prepaid expenses and deposits	3,433	3,304
Total current assets	61,524	70,883
Prepaid expenses and deposits non-current	23,606	23,221
Property and equipment	425,750	449,800
Intangible assets	109,001	106,913
Total assets	619,881	650,817
Current liabilities
Accounts payable and accrued liabilities	405,971	336,478
Notes payable	251,280	244,854
Convertible notes (elected to record at fair value)	1,313,151	396,135
Due to related parties	267,058	165,270
Total current liabilities	2,237,460	1,142,737
Warrant derivative liability	34,454	35,262
Total liabilities	2,271,914	1,177,999
Stockholders' deficit
Preferred stock Authorized: 100,000,000 shares, par value $0.001 Issued and outstanding: nil shares	0	0
Additional paid-in capital	5,348,053	5,036,168
Common stock Issuable	1,618	1,618
Deferred compensation	0	(2,009)
Accumulated other comprehensive loss	(68,747)	(79,983)
Deficit	(7,405,206)	(5,772,477)
Total stockholders' deficit	(1,652,033)	(527,182)
Total liabilities and stockholders' equity (deficit)	619,881	650,817
Common stock, Class A [Member]
Stockholders' deficit
Common stock, Class B Authorized: 25,000,000 shares, value of $0.001 Issued and outstanding: nil shares	472,249	289,501
Common stock, Class B [Member]
Stockholders' deficit
Common stock, Class B Authorized: 25,000,000 shares, value of $0.001 Issued and outstanding: nil shares	$ 0	$ 0

Interim Consolidated Balance Sheets (Parenthetical) - $ / shares	Oct. 31, 2015	Jul. 31, 2015
Preferred Stock, Shares Authorized	100,000,000	100,000,000
Preferred Stock, Par Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Issued
Preferred Stock, Shares Outstanding
Common stock, Class A [Member]
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares, Issued	472,248,520	289,500,928
Common Stock, Shares, Outstanding	472,248,520	289,500,928
Common stock, Class B [Member]
Common Stock, Shares Authorized	25,000,000	25,000,000
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares, Issued
Common Stock, Shares, Outstanding

Interim Consolidated Statements of Operations - USD ($)	3 Months Ended
Interim Consolidated Statements of Operations - USD ($)	Oct. 31, 2015	Oct. 31, 2014
Revenue	$ 36,027	$ 17,252
Cost of sales	9,103	5,908
Gross margin	26,924	11,344
Operating expenses
Bad debt expense	3,979	0
Depreciation	23,925	27,310
Foreign exchange loss	14,177	2,827
General and administrative	87,295	467,455
Professional fees	42,267	64,910
Research and development	61,675	215,147
Total operating expenses	233,318	777,649
Loss from operations	(206,394)	(766,305)
Other income (expense)
Interest expense	(17,237)	0
Warrant derivative liability recovery	810	0
Loss on conversion of convertible notes	(1,409,908)	0
Total other income (expense)	(1,426,335)	0
Net loss	(1,632,729)	(766,305)
Translation adjustment	11,236	0
Comprehensive loss	$ (1,621,493)	$ (766,305)
Net loss per share, basic and diluted	$ (0.01)	$ 0.00
Weighted average shares outstanding	315,661,226	278,242,125

Interim Consolidated Statement of Stockholders Equity - 3 months ended Oct. 31, 2015 - USD ($)	Common Class A [Member]	Additional Paid-In Capital [Member]	Common Stock Issuable [Member]	Deferred Compensation [Member]	Accumulated Other Comprehensive Loss [Member]	Deficit Accumulated During the Development Stage [Member]	Total
Beginning Balance at Jul. 31, 2015	$ 289,501	$ 5,036,168	$ 1,618	$ (2,009)	$ (79,983)	$ (5,772,477)	$ (527,182)
Beginning Balance (Shares) at Jul. 31, 2015	289,500,928
Shares issued for the conversion of notes and accrued interest	$ 182,748	311,885					494,633
Shares issued for the conversion of notes and accrued interest (Shares)	182,747,592
Deferred compensation costs charged to operations				$ 2,009			2,009
Translation adjustment					11,236		11,236
Net loss for the period						(1,632,729)	(1,632,729)
Ending Balance at Oct. 31, 2015	$ 472,248	$ 5,348,053	$ 1,618		$ (68,747)	$ (7,405,206)	$ (1,652,033)
Ending Balance (Shares) at Oct. 31, 2015	472,248,520

Interim Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
Interim Consolidated Statements of Cash Flows - USD ($)	Oct. 31, 2015	Oct. 31, 2014
Operating Activities
Net loss for the period	$ (1,632,729)	$ (766,305)
Adjustments to reconcile net loss to net cash used in operating activities:
Interest accrual	9,915	0
Bad debt expense	3,979	0
Depreciation	23,925	27,310
Deferred compensation	2,009	8,402
Loss on change in fair value of convertible notes	1,409,908	0
Warrant derivative recovery	(810)	0
Stock-based compensation	0	280,000
Unrealized foreign exchange	15,613	0
Changes in operating assets and liabilities:
Accounts receivable	(20,819)	(9,779)
Other receivables	16,900	(24,253)
Inventory	(8,227)	(6,204)
Prepaid expenses and deposits	(577)	8,058
Accounts payable and accrued liabilities	77,119	21,100
Due to related parties	4,974	(12,001)
Net cash used in operating activities	(98,820)	(473,672)
Investing Activities
Purchase of intangible assets	(2,344)	(3,570)
Purchase of property and equipment	(254)	(88,981)
Net cash used in investing activities	(2,598)	(92,551)
Financing Activities
Proceeds from issuance of common stock	0	400,500
Proceeds from related parties	94,696	0
Proceeds from note payable	0	197,835
Net cash provided by financing activities	94,696	598,335
Effect of foreign exchange on cash	(110)	0
Change in cash	(6,832)	32,112
Cash, beginning of period	7,442	75,969
Cash, end of period	610	108,081
Non-cash investing and financing activities:
Shares issued upon conversion of notes	494,633	0
Property, plant, and equipment included in due to related party	1,162	0
Property, plant, and equipment included in accounts payable	58,846	0
Supplemental disclosures:
Interest paid	0	0
Income tax paid	$ 0	$ 0

Nature of Operations and Continuance of Business

3 Months Ended

Oct. 31, 2015

Nature of Operations and Continuance of Business [Text Block]

1.	Nature of Operations and Continuance of Business

	Urban Barns Foods Inc. (the “Company”) was incorporated under the laws of the State of Nevada on May 21, 2007 as HL Ventures Inc. The Company is a produce production company, or grower, that aims to be the supplier of choice for fresh, locally grown, Kosher-certified organic or high-quality fruits and vegetables for urban consumers.

	These interim consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As at October 31, 2015, the Company had a working capital deficit of $2,175,936, had reported losses since inception from operations, and had an accumulated deficit of $7,405,206. The continued operations of the Company are dependent on its ability to generate future cash flows from operations or obtain additional financing. Management is obtaining working capital through debt or equity financing until such time that the Company’s operations generate positive operating cash flow. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These interim consolidated financial statements do not include any adjustments to the recorded assets or liabilities that might be necessary should the Company be unable to continue as a going concern.

Recent Accounting Pronouncements

3 Months Ended

Oct. 31, 2015

Recent Accounting Pronouncements [Text Block]

2.	Summary of Significant Accounting Policies

	Basis of Presentation

	The unaudited consolidated interim financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). They do not include all information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended July 31, 2015 included in the Company’s Annual Report on Form 10-K filed with the SEC. The consolidated interim financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three months ended October 31, 2015 are not necessarily indicative of the results that may be expected for the year ending July 31, 2016.

	Recent Accounting Pronouncements

	Recent pronouncements with future effective dates are either not applicable or are not expected to be significant to the interim consolidated financial statements of the Company.

Property and Equipment

3 Months Ended

Oct. 31, 2015

Property and Equipment [Text Block]

3.	Property and Equipment

		Accumulated		Net Carrying
	Cost	Depreciation	Impairment	Value
	$	$	$	$
Production equipment
October 31, 2015	649,736	223,986	–	425,750
Production equipment
July 31, 2015	700,621	200,233	50,588	449,800

Intangible Assets

3 Months Ended

Oct. 31, 2015

Intangible Assets [Text Block]

4.	Intangible Assets

		Accumulated
	Cost	Depreciation	Net Carrying Value
	$	$	$
Patent development costs October 31, 2015	109,001	–	109,001
Patent development costs July 31, 2015	106,913	–	106,913

Convertible Notes

3 Months Ended

Oct. 31, 2015

Convertible Notes [Text Block]

5.	Convertible Notes

	(a)	On February 10, 2015, the Company issued a promissory note for $166,000, less an initial financing charge of $12,000. Pursuant to the note, the amount owing is unsecured, bears interest at 8% per annum, and is due on February 12, 2016. The amount owing is convertible at the option of the holder into shares of the Company’s Class A common stock 180 days after the date of issuance of the note (August 9, 2015) at a conversion rate of 70% of the average of the three lowest closing bid prices of the Company’s Class A common stock for the 12 trading days ending one trading day prior to the date a notice of conversion is sent by the holder to the Company. As at October 31, 2015, the Company recorded accrued interest of $9,026, which has been included in accounts payable and accrued liabilities. During the period ended October 31, 2015, the Company issued 55,249,826 shares of Class A common stock pursuant to the conversion of principal of $78,960. Principal outstanding at October 31, 2015 was $87,040.

		The Company has elected to record this note at fair value. As at October 31, 2015, the fair value of the note was $746,057, which is based on the market price of the shares that would be issuable upon conversion.

	(b)	On March 23, 2015, the Company issued a promissory note for $115,000, less an initial financing charge of $15,000. Pursuant to the note, the amount owing is unsecured, bears guaranteed interest at 7% per annum, and is due on March 23, 2016. The amount owing is convertible at the option of the holder into shares of the Company’s Class A common stock at a price of $0.021 per share or 65% of the lowest closing bid price of the Company’s Class A common stock for the 20 trading days ending one day prior to the date a notice of conversion is sent by the holder to the Company. As at October 31, 2015, the Company recorded accrued interest of $8,050, which has been included in accounts payable and accrued liabilities. During the period ended October 31, 2015, the Company issued 84,997,766 shares of Class A common stock pursuant to the conversion of principal of $53,574. Principal outstanding at October 31, 2015 was $61,426.

		The Company has elected to record this note at fair value. As at October 31, 2015, the fair value of the note was $567,094, which is based on the market price of the shares that would be issuable upon conversion.

	(c)	On March 23, 2015, the Company issued a promissory note for $27,500, less an initial financing charge of $2,500. Pursuant to the note, the amount owing is unsecured, bears guaranteed interest at 7% per annum, and is due on March 23, 2016. The amount owing is convertible at the option of the holder into shares of the Company’s Class A common stock at a price of $0.021 per share or 65% of the lowest closing bid price of the Company’s Class A common stock for the 20 trading days ending one day prior to the date a notice of conversion is sent by the holder to the Company.

		The Company has elected to record this note at fair value. During the period ended October 31, 2015 the Company issued 42,500,000 shares of Class A common stock pursuant to the conversion of the entire principal and accrued interest.

Warrant Derivative Liability

3 Months Ended

Oct. 31, 2015

Warrant Derivative Liability [Text Block]

6.	Warrant Derivative Liability

	The non-compensatory warrants issued, as disclosed in Note 10, are a derivative liability due to being exercisable in a currency different than the functional currency of the Company. These warrants will continue to be a derivative liability until exercised or expired.

	The fair values as at October 31, 2015 and July 31, 2015 are as follows:

	October 31,	July 31,
	2015	2015
	$	$
Warrant derivative liabilities:
6,500,000 warrants issued on August 20, 2014	19,128	20,520
3,150,000 warrants issued on September 17, 2014	10,761	11,590
1,736,445 warrants issued on February 19, 2015	4,565	3,512
	34,454	35,262

The Company recorded a recovery of $810 being the reduction in the fair value to October 31, 2015.

The fair value of the derivative financial liabilities was determined using the Black-Scholes Model using the following assumptions:

		Risk-free	Expected	Expected
	Expected	Interest	Dividend	Life (in
	Volatility	Rate	Yield	years)
At the issuance date:

6,500,000 warrants issued on August 20, 2014	281%	0.94%	0%	3.00
3,150,000 warrants issued on September 17, 2014	281%	1.08%	0%	3.00
1,736,445 warrants issued on February 19, 2015	144%	0.67%	0%	2.00
As at October 31, 2015:

6,500,000 warrants issued on August 20, 2014	194%	0.67%	0%	1.81
3,150,000 warrants issued on September 17, 2014	194%	0.67%	0%	1.88
1,736,445 warrants issued on February 19, 2015	194%	0.67%	0%	1.31

Notes Payable

3 Months Ended

Oct. 31, 2015

Notes Payable [Text Block]

7.	Notes Payable

	(a)	During the year ended July 31, 2014, the Company entered into an agreement with certain shareholders, whereby the shareholders would buy certain licenses required by the Company. The Company would then buy back the licenses for Cdn$50,500 plus a 25% premium within the first 90 days, a 35% premium for the balance of the first 12 months, and a 50% premium during months 13-24. If the Company does not buy the licenses back within 2 years (expiring October 21, 2015), the license will be subject to a 5% royalty for the following 3 years. As at October 31, 2015, the Company owed $57,093 (Cdn$75,750), (July 31, 2015 - $58,059 (Cdn$68,175)) in order to buy back the licenses.

	(b)	As at October 31, 2015, the Company owed $170,450 (Cdn$223,000) for a promissory note that was issued on October 29, 2014. The note is secured against the Company's net assets, bears interest at a rate of 12.68% per annum, and is due the earlier of: (i) the Company raising Cdn$1,000,000 or more through issuance of equity or debt; or (ii) October 29, 2015. As at October 31, 2015, $193,377 is owed on this note which includes accrued interest of $22,291. This note was issued to a significant shareholder of the Company.

Related Party Transactions

3 Months Ended

Oct. 31, 2015

Related Party Transactions [Text Block]

8.	Related Party Transactions

	The following are related party transactions not disclosed elsewhere in these interim consolidated financial statements:

	(a)	During the year ended July 31, 2015, the Company accrued $18,356 for severance pay to the former President and CEO of the Company which is unsecured, non-interest bearing, and due on demand. As at October 31, 2015, $17,914 (July 31, 2015 - $17,964) was owing to the former President.

	(b)	As at October 31, 2015, the Company was owed $1,371 (July 31, 2015 - $1,374) from the Vice President of the Company which is unsecured, non-interest bearing, and due on demand.

	(c)	As at October 31, 2015, the Company owed $45,864 (Cdn$60,000) (July 31, 2015 - $45,988) for a loan payable to a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and due on the earlier of i) the Company raising Cdn$1,000,000 or more through issuance of equity or debt or ii) January 31, 2016. As at October 31, 2015, $5,038 (Cdn$6,590) (July 31, 2015 - $3,352) is owed for accrued interest.

	(d)	As at October 31, 2015, the Company owed $45,864 (Cdn$60,000) (July 31, 2015 - $45,988) for a loan payable to a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and due on the earlier of i) the Company raising Cdn$1,000,000 or more through issuance of equity or debt or ii) January 31, 2016. As at October 31, 2015, $4,808 (Cdn$6,290) (July 31, 2015 - $3,362) is owed for accrued interest.

	(e)	As at October 31, 2015, the Company owed $24,523 (Cdn$32,082) (July 31, 2015 - $24,591) for a loan payable to a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and due on January 31, 2016. As at October 31, 2015, $1,187 (Cdn$1,553) (July 31, 2015 - $405) is owed for accrued interest.

	(f)	As at October 31, 2015, the Company owed $21,280 (Cdn$27,839) (July 31, 2015 - $21,338) for a loan payable to a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and due on January 31, 2016. As at October 31, 2015, $1,054 (Cdn$1,378) (July 31, 2015 - $375) is owed for accrued interest.

	(g)	As at October 31, 2015, the Company owed $48,025 (Cdn$62,249) (July 31, 2015 - $nil) for a loan payable to a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and due on January 31, 2016. As at October 31, 2015, $620 (Cdn$812) is owed for accrued interest.

	(h)	As at October 31, 2015, the Company owed $47,207 (Cdn$61,758) (July 31, 2015 - $nil) for a loan payable to a former director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and due on January 31, 2016. As at October 31, 2015, $616 (Cdn$806) is owed for accrued interest.

	(i)	As at October 31, 2015, the Company owed $3,058 (Cdn$4,000) (July 2015 - $3,065) to a company controlled by the former President of the Company which is unsecured, non-interest bearing, and due on demand.

	(j)	Included in accounts payable as at October 31, 2015 is $23,893 (July 31, 2015 - $20,275) owing to related parties for expense reimbursements.

	(k)	As at October 31, 2015, the Company had deferred compensation of $nil (July 31, 2015 - $2,009) incurred to directors and officers of the Company. During the period ended October 31, 2015, deferred compensation of $2,009 (2014 - $8,402) was charged to operations and included in general and administrative expenses.

	(l)	During the period ended October 31, 2015, the Company incurred consulting fees (included in general and administrative expenses) of $27,702 (Cdn$36,750) (2014 - $49,902) to directors and officers of the Company.

	(m)	During the period ended October 31, 2015, the Company incurred consulting fees (included in general and administrative expenses) of $nil (2014 - $2,034) to the daughter of the former President of the Company.

	(n)	During the period ended October 31, 2015, the Company incurred consulting fees (included in general and administrative expenses) of $nil (2014 - $4,072) and research and development expenses of $nil (2014 - $19,001) to the daughter of the Vice President of the Company.

	(o)	During the period ended October 31, 2015, the Company granted nil (2014 - 5,925,000) stock options with a fair value of $nil (2014 - $237,000) (included in general and administrative expenses) to directors and officers of the Company.

	(p)	During the period ended October 31, 2015, the Company granted nil (2014 - 200,000) stock options with a fair value of $nil (2014 - $8,000) (included in general and administrative expenses) for bookkeeping services to the spouse of the President of the Company.

Common Stock

3 Months Ended

Oct. 31, 2015

Common Stock [Text Block]

9.	Common Stock

	(a)	On August 19, 2015, the Company issued 1,785,714 shares of Class A common stock at $0.011 per share pursuant to the conversion of $15,000 of the convertible note as described in Note 5(a).

	(b)	On September 25, 2015, the Company issued 8,823,529 shares of Class A common stock at $0.008 per share pursuant to the conversion of $15,000 of the convertible note as described in Note 5(a).

	(c)	On October 2, 2015, the Company issued 5,000,000 shares of Class A common stock at $0.01 per share pursuant to the conversion of $7,475 of the convertible note as described in Note 5(c).

	(d)	On October 2, 2015, the Company issued 7,246,377 shares of Class A common stock at $0.004 per share pursuant to the conversion of $10,000 of the convertible note as described in Note 5(b).

	(e)	On October 12, 2015, the Company issued 13,333,333 shares of Class A common stock at $0.002 per share pursuant to the conversion of $20,000 of the convertible note as described in Note 5(a).

	(f)	On October 12, 2015, the Company issued 14,888,889 shares of Class A common stock at $0.002 per share pursuant to the conversion of $13,400 of the convertible note as described in Note 5(b).

	(g)	On October 15, 2015, the Company issued 13,636,364 shares of Class A common stock at $0.001 per share pursuant to the conversion of $15,000 of the convertible note as described in Note 5(a).

	(h)	On October 15, 2015, the Company issued 7,000,000 shares of Class A common stock at $0.001 per share pursuant to the conversion of $5,915 of the convertible note as described in Note 5(c).

	(i)	On October 20, 2015, the Company issued 17,670,886 shares of Class A common stock at $0.001 per share pursuant to the conversion of $13,960 of the convertible note as described in Note 5(a).

	(j)	On October 20, 2015, the Company issued 18,060,417 shares of Class A common stock at $0.001 per share pursuant to the conversion of $8,669 of the convertible note as described in Note 5(b).

	(k)	On October 22, 2015, the Company issued 14,000,000 shares of Class A common stock at $0.002 per share pursuant to the conversion of $7,280 of the convertible note as described in Note 5(c).

	(l)	On October 22, 2015, the Company issued 18,958,333 shares of Class A common stock at $0.002 per share pursuant to the conversion of $9,100 of the convertible note as described in Note 5(b).

	(m)	On October 28, 2015, the Company issued 16,500,000 shares of Class A common stock at $0.002 per share pursuant to the conversion of $8,580 of the convertible note as described in Note 5(c).

	(n)	On October 28, 2015, the Company issued 18,093,750 shares of Class A common stock at $0.002 per share pursuant to the conversion of $8,685 of the convertible note as described in Note 5(b).

Share Purchase Warrants

3 Months Ended

Oct. 31, 2015

Share Purchase Warrants [Text Block]

10.	Share Purchase Warrants

	The following table summartizes the continuity of share purchase warrants:
			Weighted Average
		Number of	Exercise Price
		Warrants	$
	Balance, July 31,2014	2,027,027	–
	Issued	11,746,445	0.07
	Balance, July 31, 2015	13,773,472	0.07
	Issued	–	–
	Balance, October 31, 2015	13,773,472	0.07

A summary of share purchase warrants outstanding and exercisable as at October 31, 2015 is as follows:

	Exercise Price	Number of warrants	Remaining life
Expiry Date	$	Outstanding and exercisable	(years)

October 29, 2016	0.070	2,027,027	1.00
August 20, 2017	0.075	6,500,000	1.81
September 17, 2017	0.075	3,510,000	1.88
February 19, 2017	0.040	1,736,445	1.31
		13,773,472	1.64

Stock Options

3 Months Ended

Oct. 31, 2015

Stock Options [Text Block]

11.	Stock Options

	The Company has adopted a stock option plan pursuant to which options may be granted to directors, officers, employees and consultants of the Company to a maximum of 25,000,000 shares issued and outstanding at the time of the grant. The exercise price of each option is equal to the market price on the date of the grant. The options vest at the discretion of the Board of Directors.

The following table summarizes the continuity of the Company’s stock options:

			Weighted	Aggregate
			Average	Intrinsic
	Number		Exercise Price	Value
	of Options		$	$
Outstanding, July 31, 2014	10,500,000		0.10	–

Granted	7,200,000		0.10
Expired	(200,000	)	0.10
Outstanding, July 31, 2015	17,500,000		0.10	–
Granted	–		0.10
Forfeited	(10,100,000	)	0.10
Outstanding, October 31, 2015	7,400,000		0.10	–

A summary of stock options outstanding and exercisable as at October 31, 2015 is as follows:

	Exercise
	Price	Number of warrants	Remaining life
Expiry Date	$	Outstanding and exercisable	(years)

February 6, 2024	0.10	3,750,000	8.27
September 5, 2024	0.10	3,450,000	8.85
March 5, 2025	0.10	200,000	9.35
		7,400,000	8.57

Commitments and Contingencies

3 Months Ended

Oct. 31, 2015

Commitments and Contingencies [Text Block]

12.

Commitments and Contingencies

(a)

(b)

On March 19, 2014, the Company leased a warehouse located in Québec. The term of the lease commenced on March 20, 2014, and expires on May 31, 2019. The monthly lease rate is subject to an annual increase of 2%. The minimum lease payments over the remaining term of the lease are as follows:

	Year	Cdn$
	2016	184,824
	2017	188,520
	2018	192,291
	2019	195,487
		761,122

(c)

	Year	Cdn$
	2016	7,560
	2017	7,560
	2018	7,560
	2019	7,560
		30,240

(d)

	Year	Cdn$
	2016	11,424
	2017	11,424
	2018	11,424
	2019	2,856
		37,128

(e)

Subsequent Events

3 Months Ended

Oct. 31, 2015

Subsequent Events [Text Block]

13.

Subsequent Events

	(a)	On November 13, 2015, the Company received a loan of $1,875 (Cdn$2,500) from a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and is due on January 31, 2016.

	(b)	On November 13, 2015, the Company received a loan of $1,875 (Cdn$2,500) from a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and is due on January 31, 2016.

	(c)	On November 13, 2015, pursuant to an exchange agreement entered into by two of the convertible note holders, the Company issued a new promissory note for $68,449. Pursuant to the note, the amount owing is unsecured, bears guaranteed interest at 8% per annum, and is due on November 13, 2016. The amount owing is convertible at the option of the holder into shares of the Company’s Class A common stock at a rate of 65% of the lowest trading price of the Company’s Class A common stock for the 25 consecutive trading days prior to the date a notice of conversion is sent by the holder to the Company.

	(d)	On November 16, 2015, the Company issued 20,000,000 shares of Class A common stock at $0.00052 per share pursuant to the conversion of $10,400 of the convertible note as described in Subsequent Event Note 5(d).

	(e)	On November 20, 2015, the Company received a non-refundable deposit of $18,743 (Cdn$25,000) from a potential investor for the ability to perform due diligence.

	(f)	On November 23, 2015, the Company issued 7,700,000 shares of Class A common stock at $0.00052 per share pursuant to the conversion of $4,004 of the convertible note as described in Note 13(d).

	(g)	On December 8, 2015, the Company received $18,393 (Cdn$25,000) from a related party.

	(h)	On December 8, 2015, the Company received $21,612 (Cdn$30,000) from a related party.

Property and Equipment (Tables)

3 Months Ended

Oct. 31, 2015

Schedule of Property, Plant and Equipment [Table Text Block]

		Accumulated		Net Carrying
	Cost	Depreciation	Impairment	Value
	$	$	$	$
Production equipment
October 31, 2015	649,736	223,986	–	425,750
Production equipment
July 31, 2015	700,621	200,233	50,588	449,800

Intangible Assets (Tables)

3 Months Ended

Oct. 31, 2015

Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

		Accumulated
	Cost	Depreciation	Net Carrying Value
	$	$	$
Patent development costs October 31, 2015	109,001	–	109,001
Patent development costs July 31, 2015	106,913	–	106,913

Warrant Derivative Liability (Tables)

3 Months Ended

Oct. 31, 2015

Schedule of Derivative Liabilities at Fair Value [Table Text Block]

	October 31,	July 31,
	2015	2015
	$	$
Warrant derivative liabilities:
6,500,000 warrants issued on August 20, 2014	19,128	20,520
3,150,000 warrants issued on September 17, 2014	10,761	11,590
1,736,445 warrants issued on February 19, 2015	4,565	3,512
	34,454	35,262

Schedule of Fair Value Assumptions, Derivative Financial Liabilities [Table Text Block]

		Risk-free	Expected	Expected
	Expected	Interest	Dividend	Life (in
	Volatility	Rate	Yield	years)
At the issuance date:

6,500,000 warrants issued on August 20, 2014	281%	0.94%	0%	3.00
3,150,000 warrants issued on September 17, 2014	281%	1.08%	0%	3.00
1,736,445 warrants issued on February 19, 2015	144%	0.67%	0%	2.00
As at October 31, 2015:

6,500,000 warrants issued on August 20, 2014	194%	0.67%	0%	1.81
3,150,000 warrants issued on September 17, 2014	194%	0.67%	0%	1.88
1,736,445 warrants issued on February 19, 2015	194%	0.67%	0%	1.31

Share Purchase Warrants (Tables)

3 Months Ended

Oct. 31, 2015

Schedule of Share Purchase Warrants, Activity [Table Text Block]

10.	Share Purchase Warrants

	The following table summartizes the continuity of share purchase warrants:
			Weighted Average
		Number of	Exercise Price
		Warrants	$
	Balance, July 31,2014	2,027,027	–
	Issued	11,746,445	0.07
	Balance, July 31, 2015	13,773,472	0.07
	Issued	–	–
	Balance, October 31, 2015	13,773,472	0.07

Schedule of Share Purchase Warrants, Outstanding and Exercisable [Table Text Block]

	Exercise Price	Number of warrants	Remaining life
Expiry Date	$	Outstanding and exercisable	(years)

October 29, 2016	0.070	2,027,027	1.00
August 20, 2017	0.075	6,500,000	1.81
September 17, 2017	0.075	3,510,000	1.88
February 19, 2017	0.040	1,736,445	1.31
		13,773,472	1.64

Stock Options (Tables)

3 Months Ended

Oct. 31, 2015

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

			Weighted	Aggregate
			Average	Intrinsic
	Number		Exercise Price	Value
	of Options		$	$
Outstanding, July 31, 2014	10,500,000		0.10	–

Granted	7,200,000		0.10
Expired	(200,000	)	0.10
Outstanding, July 31, 2015	17,500,000		0.10	–
Granted	–		0.10
Forfeited	(10,100,000	)	0.10
Outstanding, October 31, 2015	7,400,000		0.10	–

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

	Exercise
	Price	Number of warrants	Remaining life
Expiry Date	$	Outstanding and exercisable	(years)

February 6, 2024	0.10	3,750,000	8.27
September 5, 2024	0.10	3,450,000	8.85
March 5, 2025	0.10	200,000	9.35
		7,400,000	8.57

Commitments and Contingencies (Tables)

1 Months Ended

Dec. 31, 2014

Jul. 17, 2014

Mar. 19, 2014

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

	Year	Cdn$
	2016	11,424
	2017	11,424
	2018	11,424
	2019	2,856
		37,128

	Year	Cdn$
	2016	7,560
	2017	7,560
	2018	7,560
	2019	7,560
		30,240

	Year	Cdn$
	2016	184,824
	2017	188,520
	2018	192,291
	2019	195,487
		761,122

Nature of Operations and Continuance of Business (Narrative) (Details)	3 Months Ended
	Oct. 31, 2015 USD ($)
Nature Of Operations And Continuance Of Business 1	$ 2,175,936
Nature Of Operations And Continuance Of Business 2	$ 7,405,206

Convertible Notes (Narrative) (Details)	3 Months Ended
Convertible Notes (Narrative) (Details)	Oct. 31, 2015 USD ($) d $ / shares shares
Convertible Notes 1	$ 166,000
Convertible Notes 2	$ 12,000
Convertible Notes 3	8.00%
Convertible Notes 4 \| d	180
Convertible Notes 5	70.00%
Convertible Notes 6 \| d	12
Convertible Notes 7	$ 9,026
Convertible Notes 8 \| shares	55,249,826
Convertible Notes 9	$ 78,960
Convertible Notes 10	87,040
Convertible Notes 8	746,057
Convertible Notes 11	115,000
Convertible Notes 12	$ 15,000
Convertible Notes 13	7.00%
Convertible Notes 14 \| $ / shares	$ 0.021
Convertible Notes 15	65.00%
Convertible Notes 16 \| d	20
Convertible Notes 17	$ 8,050
Convertible Notes 19 \| shares	84,997,766
Convertible Notes 20	$ 53,574
Convertible Notes 21	61,426
Convertible Notes 22	567,094
Convertible Notes 21	27,500
Convertible Notes 22	$ 2,500
Convertible Notes 23	7.00%
Convertible Notes 24 \| $ / shares	$ 0.021
Convertible Notes 25	65.00%
Convertible Notes 26 \| d	20
Convertible Notes 27 \| shares	42,500,000

Warrant Derivative Liability (Narrative) (Details)	3 Months Ended
Warrant Derivative Liability (Narrative) (Details)	Oct. 31, 2015 USD ($)
Warrant Derivative Liability 1	$ 810

Notes Payable (Narrative) (Details) - 3 months ended Oct. 31, 2015	USD ($) d mo yr	CAD d mo yr
Notes Payable 1 \| CAD		CAD 50,500
Notes Payable 2	25.00%	25.00%
Notes Payable 3 \| d	90	90
Notes Payable 4	35.00%	35.00%
Notes Payable 5 \| mo	12	12
Notes Payable 6	50.00%	50.00%
Notes Payable 7 \| yr	2	2
Notes Payable 8	5.00%	5.00%
Notes Payable 9 \| yr	3	3
Notes Payable 10 \| $	$ 57,093
Notes Payable 11 \| CAD		CAD 75,750
Notes Payable 12 \| $	58,059
Notes Payable 13 \| CAD		68,175
Notes Payable 14 \| $	$ 170,450
Notes Payable 15 \| CAD		CAD 223,000
Notes Payable 16	12.68%	12.68%
Notes Payable 17 \| CAD		CAD 1,000,000
Notes Payable 18 \| $	$ 193,377
Notes Payable 19 \| $	$ 22,291

Related Party Transactions (Narrative) (Details) - 3 months ended Oct. 31, 2015	USD ($) shares	CAD shares
Related Party Transactions 1	$ 18,356
Related Party Transactions 2	17,914
Related Party Transactions 3	17,964
Related Party Transactions 4	1,371
Related Party Transactions 5	1,374
Related Party Transactions 6	45,864
Related Party Transactions 7 \| CAD		CAD 60,000
Related Party Transactions 8	$ 45,988
Related Party Transactions 9	12.68%	12.68%
Related Party Transactions 10 \| CAD		CAD 1,000,000
Related Party Transactions 11	$ 5,038
Related Party Transactions 12 \| CAD		6,590
Related Party Transactions 13	3,352
Related Party Transactions 14	45,864
Related Party Transactions 15 \| CAD		CAD 60,000
Related Party Transactions 16	$ 45,988
Related Party Transactions 17	12.68%	12.68%
Related Party Transactions 18 \| CAD		CAD 1,000,000
Related Party Transactions 19	$ 4,808
Related Party Transactions 20 \| CAD		6,290
Related Party Transactions 21	3,362
Related Party Transactions 22	24,523
Related Party Transactions 23 \| CAD		CAD 32,082
Related Party Transactions 24	$ 24,591
Related Party Transactions 25	12.68%	12.68%
Related Party Transactions 26	$ 1,187
Related Party Transactions 27 \| CAD		CAD 1,553
Related Party Transactions 28	405
Related Party Transactions 29	21,280
Related Party Transactions 30 \| CAD		CAD 27,839
Related Party Transactions 31	$ 21,338
Related Party Transactions 32	12.68%	12.68%
Related Party Transactions 33	$ 1,054
Related Party Transactions 34 \| CAD		CAD 1,378
Related Party Transactions 35	375
Related Party Transactions 36	48,025
Related Party Transactions 37 \| CAD		CAD 62,249
Related Party Transactions 38	$ 0
Related Party Transactions 39	12.68%	12.68%
Related Party Transactions 40	$ 620
Related Party Transactions 41 \| CAD		CAD 812
Related Party Transactions 42	47,207
Related Party Transactions 43 \| CAD		CAD 61,758
Related Party Transactions 44	$ 0
Related Party Transactions 45	12.68%	12.68%
Related Party Transactions 46	$ 616
Related Party Transactions 47 \| CAD		CAD 806
Related Party Transactions 48	3,058
Related Party Transactions 49 \| CAD		4,000
Related Party Transactions 50	3,065
Related Party Transactions 51	23,893
Related Party Transactions 52	20,275
Related Party Transactions 53	0
Related Party Transactions 54	2,009
Related Party Transactions 55	2,009
Related Party Transactions 56	8,402
Related Party Transactions 57	27,702
Related Party Transactions 58 \| CAD		CAD 36,750
Related Party Transactions 59	49,902
Related Party Transactions 60	0
Related Party Transactions 61	2,034
Related Party Transactions 62	0
Related Party Transactions 63	4,072
Related Party Transactions 64	0
Related Party Transactions 65	$ 19,001
Related Party Transactions 66	0	0
Related Party Transactions 67 \| shares	5,925,000	5,925,000
Related Party Transactions 68	$ 0
Related Party Transactions 69	$ 237,000
Related Party Transactions 70	0	0
Related Party Transactions 71 \| shares	200,000	200,000
Related Party Transactions 72	$ 0
Related Party Transactions 73	$ 8,000

Common Stock (Narrative) (Details)	3 Months Ended
Common Stock (Narrative) (Details)	Oct. 31, 2015 USD ($) $ / shares shares
Common Stock 1 \| shares	1,785,714
Common Stock 2 \| $ / shares	$ 0.011
Common Stock 3 \| $	$ 15,000
Common Stock 4 \| shares	8,823,529
Common Stock 5 \| $ / shares	$ 0.008
Common Stock 6 \| $	$ 15,000
Common Stock 7 \| shares	5,000,000
Common Stock 8 \| $ / shares	$ 0.01
Common Stock 9 \| $	$ 7,475
Common Stock 10 \| shares	7,246,377
Common Stock 11 \| $ / shares	$ 0.004
Common Stock 12 \| $	$ 10,000
Common Stock 13 \| shares	13,333,333
Common Stock 14 \| $ / shares	$ 0.002
Common Stock 15 \| $	$ 20,000
Common Stock 16 \| shares	14,888,889
Common Stock 17 \| $ / shares	$ 0.002
Common Stock 18 \| $	$ 13,400
Common Stock 19 \| shares	13,636,364
Common Stock 20 \| $ / shares	$ 0.001
Common Stock 21 \| $	$ 15,000
Common Stock 22 \| shares	7,000,000
Common Stock 23 \| $ / shares	$ 0.001
Common Stock 24 \| $	$ 5,915
Common Stock 25 \| shares	17,670,886
Common Stock 26 \| $ / shares	$ 0.001
Common Stock 27 \| $	$ 13,960
Common Stock 28 \| shares	18,060,417
Common Stock 29 \| $ / shares	$ 0.001
Common Stock 30 \| $	$ 8,669
Common Stock 31 \| shares	14,000,000
Common Stock 32 \| $ / shares	$ 0.002
Common Stock 33 \| $	$ 7,280
Common Stock 34 \| shares	18,958,333
Common Stock 35 \| $ / shares	$ 0.002
Common Stock 36 \| $	$ 9,100
Common Stock 37 \| shares	16,500,000
Common Stock 38 \| $ / shares	$ 0.002
Common Stock 39 \| $	$ 8,580
Common Stock 40 \| shares	18,093,750
Common Stock 41 \| $ / shares	$ 0.002
Common Stock 42 \| $	$ 8,685

Stock Options (Narrative) (Details)	3 Months Ended
Stock Options (Narrative) (Details)	Oct. 31, 2015 shares
Stock Options 1	25,000,000

Commitments and Contingencies (Narrative) (Details)	3 Months Ended
Commitments and Contingencies (Narrative) (Details)	Oct. 31, 2015 USD ($) CAD / mo
Commitments And Contingencies 1	$ 500,000
Commitments And Contingencies 2	25,000
Commitments And Contingencies 3	75,000
Commitments And Contingencies 4	$ 100,000
Commitments And Contingencies 5	2.00%
Commitments And Contingencies 6 \| CAD / mo	630
Commitments And Contingencies 7 \| CAD / mo	952
Commitments And Contingencies 8	$ 25,380
Commitments And Contingencies 9	$ 25,380

Subsequent Events (Narrative) (Details) - 3 months ended Oct. 31, 2015	USD ($) $ / shares shares	CAD shares
Subsequent Events 4	$ 1,875
Subsequent Events 5 \| CAD		CAD 2,500
Subsequent Events 6	12.68%	12.68%
Subsequent Events 7	$ 1,875
Subsequent Events 8 \| CAD		CAD 2,500
Subsequent Events 9	12.68%	12.68%
Subsequent Events 10	$ 68,449
Subsequent Events 11	8.00%	8.00%
Subsequent Events 12	65.00%	65.00%
Subsequent Events 13	25	25
Subsequent Events 14 \| shares	20,000,000	20,000,000
Subsequent Events 15 \| $ / shares	$ 0.00052
Subsequent Events 16	$ 10,400
Subsequent Events 17	$ 18,743
Subsequent Events 18 \| CAD		CAD 25,000
Subsequent Events 19 \| shares	7,700,000	7,700,000
Subsequent Events 20 \| $ / shares	$ 0.00052
Subsequent Events 21	$ 4,004
Subsequent Events 22	18,393
Subsequent Events 23 \| CAD		CAD 25,000
Subsequent Events 24	$ 21,612
Subsequent Events 25 \| CAD		CAD 30,000

Schedule of Property, Plant and Equipment (Details)	3 Months Ended
Schedule of Property, Plant and Equipment (Details)	Oct. 31, 2015 USD ($)
Property And Equipment Schedule Of Property, Plant And Equipment 1	$ 649,736
Property And Equipment Schedule Of Property, Plant And Equipment 2	223,986
Property And Equipment Schedule Of Property, Plant And Equipment 3	0
Property And Equipment Schedule Of Property, Plant And Equipment 4	425,750
Property And Equipment Schedule Of Property, Plant And Equipment 5	700,621
Property And Equipment Schedule Of Property, Plant And Equipment 6	200,233
Property And Equipment Schedule Of Property, Plant And Equipment 7	50,588
Property And Equipment Schedule Of Property, Plant And Equipment 8	$ 449,800

Schedule of Acquired Finite-Lived Intangible Assets by Major Class (Details)	3 Months Ended
	Oct. 31, 2015 USD ($)
Intangible Assets Schedule Of Acquired Finite-lived Intangible Assets By Major Class 1	$ 109,001
Intangible Assets Schedule Of Acquired Finite-lived Intangible Assets By Major Class 2	0
Intangible Assets Schedule Of Acquired Finite-lived Intangible Assets By Major Class 3	109,001
Intangible Assets Schedule Of Acquired Finite-lived Intangible Assets By Major Class 4	106,913
Intangible Assets Schedule Of Acquired Finite-lived Intangible Assets By Major Class 5	0
Intangible Assets Schedule Of Acquired Finite-lived Intangible Assets By Major Class 6	$ 106,913

Schedule of Derivative Liabilities at Fair Value (Details)	3 Months Ended
	Oct. 31, 2015 USD ($) shares
Warrant Derivative Liability Schedule Of Derivative Liabilities At Fair Value 1 \| shares	6,500,000
Warrant Derivative Liability Schedule Of Derivative Liabilities At Fair Value 2	$ 19,128
Warrant Derivative Liability Schedule Of Derivative Liabilities At Fair Value 3	$ 20,520
Warrant Derivative Liability Schedule Of Derivative Liabilities At Fair Value 4 \| shares	3,150,000
Warrant Derivative Liability Schedule Of Derivative Liabilities At Fair Value 5	$ 10,761
Warrant Derivative Liability Schedule Of Derivative Liabilities At Fair Value 6	$ 11,590
Warrant Derivative Liability Schedule Of Derivative Liabilities At Fair Value 7 \| shares	1,736,445
Warrant Derivative Liability Schedule Of Derivative Liabilities At Fair Value 8	$ 4,565
Warrant Derivative Liability Schedule Of Derivative Liabilities At Fair Value 9	3,512
Warrant Derivative Liability Schedule Of Derivative Liabilities At Fair Value 10	34,454
Warrant Derivative Liability Schedule Of Derivative Liabilities At Fair Value 11	$ 35,262

Schedule of Fair Value Assumptions, Derivative Financial Liabilities (Details)	3 Months Ended
	Oct. 31, 2015 shares
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 1	6,500,000
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 2	281.00%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 3	0.94%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 4	0.00%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 5	3.00
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 6	3,150,000
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 7	281.00%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 8	1.08%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 9	0.00%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 10	3.00
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 11	1,736,445
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 12	144.00%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 13	0.67%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 14	0.00%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 15	2.00
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 16	6,500,000
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 17	194.00%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 18	0.67%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 19	0.00%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 20	1.81
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 21	3,150,000
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 22	194.00%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 23	0.67%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 24	0.00%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 25	1.88
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 26	1,736,445
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 27	194.00%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 28	0.67%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 29	0.00%
Warrant Derivative Liability Schedule Of Fair Value Assumptions, Derivative Financial Liabilities 30	1.31

Schedule of Share Purchase Warrants, Activity (Details)	3 Months Ended
Schedule of Share Purchase Warrants, Activity (Details)	Oct. 31, 2015 USD ($) shares
Share Purchase Warrants Schedule Of Share Purchase Warrants, Activity 1	2,027,027
Share Purchase Warrants Schedule Of Share Purchase Warrants, Activity 2 \| $	$ 0
Share Purchase Warrants Schedule Of Share Purchase Warrants, Activity 3	11,746,445
Share Purchase Warrants Schedule Of Share Purchase Warrants, Activity 4	0.07
Share Purchase Warrants Schedule Of Share Purchase Warrants, Activity 5	13,773,472
Share Purchase Warrants Schedule Of Share Purchase Warrants, Activity 6	0.07
Share Purchase Warrants Schedule Of Share Purchase Warrants, Activity 7	0
Share Purchase Warrants Schedule Of Share Purchase Warrants, Activity 8 \| $	$ 0
Share Purchase Warrants Schedule Of Share Purchase Warrants, Activity 9	13,773,472
Share Purchase Warrants Schedule Of Share Purchase Warrants, Activity 10	0.07

Schedule of Share Purchase Warrants, Outstanding and Exercisable (Details)	3 Months Ended
	Oct. 31, 2015 shares
Share Purchase Warrants Schedule Of Share Purchase Warrants, Outstanding And Exercisable 1	0.070
Share Purchase Warrants Schedule Of Share Purchase Warrants, Outstanding And Exercisable 2	2,027,027
Share Purchase Warrants Schedule Of Share Purchase Warrants, Outstanding And Exercisable 3	1.00
Share Purchase Warrants Schedule Of Share Purchase Warrants, Outstanding And Exercisable 4	0.075
Share Purchase Warrants Schedule Of Share Purchase Warrants, Outstanding And Exercisable 5	6,500,000
Share Purchase Warrants Schedule Of Share Purchase Warrants, Outstanding And Exercisable 6	1.81
Share Purchase Warrants Schedule Of Share Purchase Warrants, Outstanding And Exercisable 7	0.075
Share Purchase Warrants Schedule Of Share Purchase Warrants, Outstanding And Exercisable 8	3,510,000
Share Purchase Warrants Schedule Of Share Purchase Warrants, Outstanding And Exercisable 9	1.88
Share Purchase Warrants Schedule Of Share Purchase Warrants, Outstanding And Exercisable 10	0.040
Share Purchase Warrants Schedule Of Share Purchase Warrants, Outstanding And Exercisable 11	1,736,445
Share Purchase Warrants Schedule Of Share Purchase Warrants, Outstanding And Exercisable 12	1.31
Share Purchase Warrants Schedule Of Share Purchase Warrants, Outstanding And Exercisable 13	13,773,472
Share Purchase Warrants Schedule Of Share Purchase Warrants, Outstanding And Exercisable 14	1.64

Schedule of Share-based Compensation, Stock Options, Activity (Details)	3 Months Ended
	Oct. 31, 2015 USD ($) shares
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 1	10,500,000
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 2	0.10
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 3 \| $	$ 0
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 4	7,200,000
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 5	0.10
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 6	(200,000)
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 7	0.10
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 8	17,500,000
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 9	0.10
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 10 \| $	$ 0
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 11	0
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 12	0.10
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 13	(10,100,000)
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 14	0.10
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 15	7,400,000
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 16	0.10
Stock Options Schedule Of Share-based Compensation, Stock Options, Activity 17 \| $	$ 0

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Details)	3 Months Ended
	Oct. 31, 2015 shares
Stock Options Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 1	0.10
Stock Options Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 2	3,750,000
Stock Options Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 3	8.27
Stock Options Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 4	0.10
Stock Options Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 5	3,450,000
Stock Options Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 6	8.85
Stock Options Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 7	0.10
Stock Options Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 8	200,000
Stock Options Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 9	9.35
Stock Options Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 10	7,400,000
Stock Options Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 11	8.57

Schedule of Future Minimum Rental Payments for Operating Leases (Details) - USD ($)	1 Months Ended
	Dec. 31, 2014	Jul. 17, 2014	Mar. 19, 2014
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 1			$ 184,824
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 2			188,520
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 3			192,291
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 4			195,487
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 5			$ 761,122
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 1		$ 7,560
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 2		7,560
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 3		7,560
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 4		7,560
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 5		$ 30,240
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 1	$ 11,424
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 2	11,424
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 3	11,424
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 4	2,856
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 5	$ 37,128