Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS
3 Months Ended
Sep. 30, 2015
USD ($)
Sep. 30, 2014
USD ($)
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (838,894) $ (783,300)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:    
Issuance of common stock for services and voluntary ratchet 458,331 69,726
(Gain) loss on settlement 0 405,002
Foreign currency transaction loss (10,784) 0
Depreciation expense 171 0
Amortization of debt discount 206,935 98,013
Change in fair value of derivative liabilities (795,853) (114,536)
Promissory note payable issued for services 0 50,000
Accretion of put premium 154,198 83,636
Original issue discount 0 2,500
Changes in Assets and Liabilities:    
GST receivable (4,495) (1,705)
Prepaid expenses and other assets 8,192 (7,117)
Accounts payable 87,636 79,500
Employee benefit liability 6,797 1,920
Accrued expenses 77,152 16,551
Accrued interest 23,379 0
NET CASH USED IN OPERATING ACTIVITIES (627,235) (99,810)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of equipment (679) 0
NET CASH USED IN INVESTING ACTIVITIES (679) 0
CASH FLOWS FROM FINANCING ACTIVITIES:    
Loan repayments to principal stockholder (13,549) (8,725)
Loan repayments (19,613) 0
Investor advances - related party 0 2,164
Proceeds from convertible promissory notes 552,500 22,700
Repayments of convertible promissory notes (104,000) 0
NET CASH PROVIDED BY FINANCING ACTIVITIES 415,338 16,139
Effect of exchange rate changes on cash 182,407 385
NET INCREASE (DECREASE) IN CASH (30,169) (83,286)
CASH AT BEGINNING OF PERIOD 107,627 87,799
CASH AT END OF PERIOD 77,458 4,513
Cash paid during the period:    
Interest 0 0
Income Tax 0 0
Supplemental Disclosure of Non-Cash Investing and Financing Activities    
Prepaid common stock issued for services 18,139 0
Reduction of put premium related to conversions of convertible note 122,727 0
Conversion of convertible notes and accrued interest to common stock 278,487 152,102
Discounts related to lender costs 0 27,500
Discounts related to derivative liability 200,000 0
Conversion of loan payable to common stock $ 0 $ 67,892