Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v2.4.0.8
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 12 Months Ended
Jun. 30, 2014
Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (829,564) $ (1,442,638)
Adjustments to Reconcile Net loss to Net Cash Used in Operating Activities:    
Issuance of common stock for services and voluntary ratchet 237,833 803,324
Loss on settlement 0 108,185
Consultant stock expense 0 48,000
Amortization of prepaid shares issued for services 6,667 38,937
Write off of subscription receivable 0 325
Foreign currency transaction (loss) gain 0 27,549
Depreciation expense 538 4,062
Amortization of debt discount 49,029 0
Change in fair value of warrant derivative liability 16,522 0
Accretion of put premium 27,187 0
Changes in Assets and Liabilities:    
Escrow account 0 333
Prepaid expenses and other assets 294 1,293
Accounts payable 94,607 121,649
Employee benefit liability 11,598 12,965
Accrued expenses 158,847 147,369
NET CASH USED IN OPERATING ACTIVITIES (226,442) (128,647)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Bank overdraft (6) 5
Loan repayments to principal stockholder (45,512) (32,860)
Proceeds from convertible promissory notes, net of costs 273,959 0
Loan proceeds 10,542 37,506
Loan proceeds from principal stockholder 72,158 123,814
NET CASH PROVIDED BY FINANCING ACTIVITIES 311,141 128,465
Effect of exchange rate changes on cash 3,100 3
NET INCREASE (DECREASE) IN CASH 87,799 (179)
CASH AT BEGINNING OF YEAR 0 179
CASH AT END OF YEAR 87,799 0
Supplemental Disclosure of Cash Flow Information    
Interest 0 0
Income Tax 0 0
Supplemental Disclosure of Non-Cash Investing and Financing Activities    
Conversion of accrued interest to common stock 0 1,896
Prepaid common stock issued for services 6,667 0
Conversion of accrued expenses to common stock 27,500 37,500
Conversion of convertible notes and accrued interest to common stock 0 75,000
Discounts related to warrants issued with convertible debenture 133,095 0
Discounts related to lender costs 30,000 0
Conversion of loan payable to convertible debenture 27,963 0
Prepaid settlement fee paid through issuance of convertible note $ 25,000 $ 0