Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS
 12 Months Ended
Jun. 30, 2016
USD ($)
Jun. 30, 2015
USD ($)
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (9,410,352) $ (3,412,754)
Adjustments to Reconcile Net loss to Net Cash Used in Operating Activities:    
Issuance and amortization of common stock for services 1,504,914 276,792
Issuance of preferred stock for services 0 1,067
Fair value of warrants issued for services 47,560 51,488
Loss (gain) on settlement 0 (375,547)
Gain on note forgiveness (50,000) 0
Settlement fees paid in the form of debt 0 150,000
Foreign currency transaction loss 0 31,548
Depreciation expense 877 81
Amortization of debt discount 3,534,817 295,795
Change in fair value of derivative liabilities (2,743,676) 541,981
Stock option expense 1,722,288 0
Accretion of put premium 658,420 1,044,196
Changes in Assets and Liabilities:    
GST receivable (17,804) (10,879)
Prepaid expenses and other assets 18,142 (74,303)
Accounts payable 139,201 (47,977)
Employee benefit liability 23,780 20,362
Accrued expenses (228,040) 115,941
Accrued interest 300,559 (34,270)
NET CASH USED IN OPERATING ACTIVITIES (4,499,314) (1,426,479)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Payment for security deposit 0 (1,684)
Payment for security deposit - related party (2,185) 0
Purchase of equipment (9,879) (3,901)
NET CASH USED IN INVESTING ACTIVITIES (12,064) (5,585)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Loan repayments to principal stockholder (13,582) (28,455)
Loans repayments to director (8,078) 0
Loan repayments (24,031) 0
Proceeds from convertible promissory notes 4,982,500 1,438,500
Repayments of convertible promissory notes (401,476) (157,000)
Proceeds from issuance of common stock for cash 0 29,000
NET CASH PROVIDED BY FINANCING ACTIVITIES 4,535,333 1,282,045
Effect of exchange rate changes on cash (10,512) 169,847
NET INCREASE (DECREASE) IN CASH 13,443 19,828
CASH AT BEGINNING OF YEAR 107,627 87,799
CASH AT END OF YEAR 121,070 107,627
Cash paid during the period:    
Interest 10,757 0
Income Tax 0 0
Supplemental Disclosure of Non-Cash Investing and Financing Activities    
Common stock issued for settlement of debt 0 152,285
Prepaid common stock issued for services 767,562 269,682
Reduction of put premium related to conversions of convertible note 1,253,318 71,370
Conversion of convertible notes and accrued interest to common stock 4,899,244 374,771
Discounts related to warrants issued with convertible debenture 712,110 0
Discounts related to lender costs 0 48,500
Discounts related to derivative liability 2,462,355 305,000
Conversion of loan payable to common stock $ 0 $ 66,389