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 $)
 6 Months Ended 63 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $ (880,318) $ (5,782,033) $ (16,161,032)
Stock compensation expense 642,908    1,297,096
Amortization of prepaid shares issued for services 32,500 5,640,097 11,176,822
Loss on settlement 43,200    43,200
Shares issued for voluntary ratchet       21,218
Officer shares contributed to third party consultant       299,737
Write off of previously capitalized patent costs       26,855
Foreign currency transaction loss (gain) (10,113)    5,594
Depreciation expense 708 973 10,857
Changes in operating assets and liabilities:      
Write off Escrow account 653    320
Accounts receivable       (664)
GST receivable    (2,035) (495)
Prepaid expenses and other assets 844 (7,632) 3,419
Accounts payable 26,934 49,951 208,357
Employee benefit liability 878 3,272 38,562
Accrued expenses 62,357 56,453 241,132
Accrued interest 1,551 797 188,335
NET CASH USED IN OPERATING ACTIVITIES (77,898) (40,157) (2,600,687)
CASH FLOWS FROM INVESTING ACTIVITIES      
Patent costs       (25,726)
Purchase of equipment       (14,786)
NET CASH USED IN INVESTING ACTIVITIES       (40,512)
CASH FLOWS FROM FINANCING ACTIVITIES      
Sale of common stock    10,321 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 (33,379)    (48,213)
Investor advances       79,112
Proceeds from other loans 37,362    37,362
Proceeds from directors, related parties 70,042    70,042
Proceeds from convertible promissory notes    70,009 142,306
Loan proceeds from principal stockholder       369,174
NET CASH PROVIDED BY FINANCING ACTIVITIES 74,025 80,330 2,682,407
Effect of exchange rate changes on cash 4,188 (577) (40,714)
NET INCREASE (DECREASE) IN CASH 315 39,596 494
CASH AT BEGINNING OF PERIOD 179 132   
CASH AT END OF PERIOD 494 39,728 494
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 1,896    195,544
Gain on related party debt conversion       9,252
Prepaid common stock issued for services       10,860,965
Advance from Investor - related party, reclassified to common stock    80,000 80,000
Conversion of accrued expenses to common stock 21,000    57,272
Conversion of convertible notes and accrued interest to common stock $ 75,000 $ 36,272 $ 150,894