Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (3,412,754) $ (829,564)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:    
Issuance of common stock for services and voluntary ratchet 276,792 237,833
Issuance of preferred stock for services 1,067 0
Fair value of warrants issued for services 51,488 0
Gain on debt settlements, net (375,547) 0
Settlement fees paid in the form of debt 150,000 0
Amortization of prepaid shares issued for services 0 6,667
Foreign currency transaction loss 31,548 0
Depreciation expense 81 538
Amortization of debt discount 295,795 49,029
Change in fair value of derivative liabilities 541,981 16,522
Accretion of put premium 1,044,196 27,187
Changes in Assets and Liabilities:    
GST receivable (10,879) 0
Prepaid expenses and other assets (74,303) 294
Accounts payable (47,977) 94,607
Employee benefit liability 20,362 11,598
Accrued expenses 115,941 158,847
Accrued interest (34,270) 0
NET CASH USED IN OPERATING ACTIVITIES (1,426,479) (226,442)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Payment for security deposit (1,684) 0
Purchase of equipment (3,901) 0
NET CASH USED IN INVESTING ACTIVITIES (5,585) 0
CASH FLOWS FROM FINANCING ACTIVITIES:    
Bank overdraft 0 (6)
Loan repayments to principal stockholder (28,455) (45,512)
Proceeds from convertible promissory notes 1,438,500 273,959
Repayments of convertible promissory notes (157,000) 0
Proceeds from issuance of common stock for cash 29,000 0
Loan proceeds 0 10,542
Loan proceeds from principal stockholder 0 72,158
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,282,045 311,141
Effect of exchange rate changes on cash 169,847 3,100
NET INCREASE IN CASH 19,828 87,799
CASH AT BEGINNING OF YEAR 87,799 0
CASH AT END OF YEAR 107,627 87,799
Cash paid during the year:    
Interest 0 0
Income Tax 0 0
Supplemental Disclosure of Non-Cash Investing and Financing Activities    
Common stock issued for settlement of debt 152,285 0
Prepaid common stock issued for services 269,682 6,667
Prepaid warrants issued for services 138,314 0
Reduction of put premium related to conversions of convertible note 71,370 0
Conversion of accrued expenses to common stock 0 27,500
Conversion of convertible notes and accrued interest to common stock 374,771 0
Discounts related to warrants issued with convertible debenture 0 133,095
Discounts related to lender costs 48,500 30,000
Discounts related to derivative liability 305,000 0
Conversion of loan payable to convertible debenture 0 27,963
Conversion of loan payable to common stock 66,389 0
Prepaid settlement fee paid through issuance of convertible note $ 0 $ 25,000