Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
 9 Months Ended 54 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Mar. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $ (8,875,611) $ (1,498,293) $ (12,721,951)
Issuances of common stock for services 112,623 113,474 403,356
Amortization of prepaid shares issued for services 8,485,217 395,860 9,130,323
Officer shares contributed to third party consultant       299,737
Depreciation expense 1,409 1,304 9,766
Changes in operating assets and liabilities:      
Accounts receivable       (664)
GST receivable 769 18,534 1,131
Other assets 2,054 (362,705) (15,456)
Accounts payable 48,888 37,071 68,688
Employee benefit liability 5,479 11,138 35,565
Accrued expenses 102,992 (31,139) 118,951
Accrued interest 1,858    185,675
Net cash used in operating activities (114,321) (1,314,756) (2,466,832)
CASH FLOWS FROM INVESTING ACTIVITIES      
Patent costs    (25,107) (25,726)
Purchase of equipment    (3,421) (14,786)
Net cash used in investing activities    (28,528) (40,512)
CASH FLOWS FROM FINANCING ACTIVITIES      
Sale of common stock 10,396 1,283,130 1,462,046
Contributed capital       495,665
Subscriptions receivable - related party       22
Related party expenses paid on behalf of company       57,262
Loan repayments of principal stockholder    127 (14,834)
Investor advances       79,112
Proceeds from convertible promissory notes 143,312 (14,477) 143,312
Loan proceeds from principal stockholder       369,174
Net cash provided by financing activities 153,708 1,268,780 2,591,759
Effect of exchange rate changes on cash (45) 74,030 (44,941)
NET INCREASE (DECREASE) IN CASH 39,342 (474) 39,474
CASH AT BEGINNING OF PERIOD 132 528   
CASH AT END OF PERIOD 39,474 54 39,474
Supplemental Disclosure of cash flow information      
Cash Paid during the period: Interest         
Cash Paid during the period: Income Tax         
Supplemental disclosure of non-cash investing and financing activities:      
Conversion of notes payable to common stock       341,208
Conversion of accrued interest to common stock       193,648
Gain on related party debt conversion       9,252
Prepaid common stock issued for services       10,823,048
Advance from Investor - related party, reclassified to common stock 80,000    80,000
Conversion of accrued expenses to common stock $ 36,272    $ 36,272