Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
12 Months Ended 57 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $ (11,434,375) $ (2,151,977) $ (15,280,715)
Issuances of common stock for services 363,455 114,028 654,188
Amortization of prepaid shares issued for services 10,499,215 645,107 11,144,322
Shares issued for voluntary ratchet 21,218    21,218
Officer shares contributed to third party consultant       299,737
Write off of previously capitalized patent costs 26,855    26,855
Foreign currency transaction (loss) gain 15,707    15,707
Depreciation expense 1,792 1,857 10,149
Changes in operating assets and liabilities:      
Escrow account (333)    (333)
Accounts receivable       (664)
GST receivable (857) 19,758 (495)
Other assets 2,040 22,454 2,575
Accounts payable 161,623 (23,289) 181,423
Employee benefit liability 7,598 9,158 37,684
Accrued expenses 162,817 (32,472) 178,776
Accrued interest 2,967    186,784
Net cash used in operating activities (170,278) (1,395,376) (2,522,789)
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchase of equipment    (3,506) (14,786)
Patent costs    (25,726) (25,726)
Net cash used in investing activities    (29,232) (40,512)
CASH FLOWS FROM FINANCING ACTIVITIES      
Sale of common stock 28,025 1,359,840 1,479,675
Contributed capital       495,665
Subscriptions receivable - related party       22
Related party expenses paid on behalf of company       57,262
Loan repayments of principal stockholder    (14,834) (14,834)
Investor Advances-related party    79,112 79,112
Proceeds from convertible promissory notes 142,306    142,306
Loan proceeds from principal stockholder       369,174
Net cash provided by financing activities 170,331 1,424,118 2,608,382
Effect of exchange rate changes on cash (6) 94 (44,902)
NET INCREASE (DECREASE) IN CASH 47 (396) 179
CASH AT BEGINNING OF YEAR 132 528  
CASH AT END OF YEAR 179 132 179
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 37,917    10,860,965
Advance from investor - related party, reclassified to common stock 80,000    80,000
Conversion of accrued expenses to common stock 36,272    36,272
Conversion of convertible notes and accrued interest to common stock $ 75,894    $ 75,894