Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	12 Months Ended		69 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (1,442,638)	$ (11,434,375)	$ (16,723,353)
Adjustments to Reconcile Net loss to Net Cash Used in Operating Activities:
Common stock issued for services and voluntary ratchet	803,324	384,673	1,478,730
Loss on settlement of debt	108,185		108,185
Consultant stock expense	48,000		48,000
Amortization of prepaid shares issued for services	38,937	10,499,215	11,183,259
Officer shares contributed to third party consultant			299,737
Write off of subscription receivable	325		325
Write off of previously capitalized patent costs		26,855	26,855
Foreign currency transaction (loss) gain	27,549	15,707	43,256
Depreciation expense	4,062	1,792	14,211
Changes in Assets and Liabilities:
Escrow account	333	(333)
Accounts receivable			(664)
Prepaid expenses and other current assets	1,293	1,183	3,373
Accounts payable	121,649	161,623	303,072
Employee benefit liability	12,965	7,598	50,649
Accrued expenses	147,369	165,784	512,929
NET CASH USED IN OPERATING ACTIVITIES	(128,647)	(170,278)	(2,651,436)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment			(14,786)
Patent costs			(25,726)
NET CASH USED IN INVESTING ACTIVITIES			(40,512)
CASH FLOWS FROM FINANCING ACTIVITIES
Bank overdraft	5		5
Sale of common stock		28,025	1,479,675
Contributed capital			495,665
Subscriptions receivable - related party			22
Related party expenses paid on behalf of company			57,262
Loan repayments to officer and directors	(32,860)		(47,694)
Investor Advances - related party			79,112
Proceeds from convertible promissory notes		142,306	142,306
Loan proceeds from officer and directors	123,814		492,988
Loan proceeds	37,506		37,506
NET CASH PROVIDED BY FINANCING ACTIVITIES	128,465	170,331	2,736,847
Effect of exchange rate changes on cash	3	(6)	(44,899)
NET INCREASE (DECREASE) IN CASH	(179)	47
CASH AT BEGINNING OF PERIOD	179	132
CASH AT END OF PERIOD		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	1,896		195,544
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	37,500	36,272	73,772
Conversion of convertible notes and accrued interest to common stock	$ 75,000	$ 75,894	$ 150,894