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 $)
3 Months Ended 72 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $ (571,511) $ (492,681) $ (17,294,864)
Adjustments to reconcile net loss to net cash used in operating activities:      
Issuance of common stock for services 159,000 353,658 1,637,730
Loss on settlement       108,185
Consultant Stock Expense       48,000
Amortization of prepaid shares issued for services    16,250 11,183,259
Officer shares contributed to third party consultant       299,737
Write off of subscription receivable       325
Write off of previously capitalized patent costs       26,855
Foreign currency transaction (loss) gain    (4,748) 43,256
Loss from change in warrant derivative liability 259,251    259,251
Depreciation expense 258 369 14,469
Escrow accountChanges in Assets and Liabilities:      
Escrow account    653   
Accounts receivable (125)    (789)
Other assets    3,227 3,373
Accounts payable 9,016 46,752 312,088
Employee benefit liability 2,938    53,587
Accrued expenses 65,989 3,079 578,918
Accrued interest    1,446   
NET CASH USED IN OPERATING ACTIVITIES (75,184) (71,995) (2,726,620)
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 (6)    (6)
Sale of common stock       1,479,675
Contributed capital       495,665
Subscriptions receivable - related party       22
Related party expenses paid on behalf of company 25,122    82,384
Loan repayments of principal stockholder (21,000) (1,379) (68,694)
Investor Advances - related party       79,112
Proceeds from convertible promissory notes       142,306
Other Loans 109,102 16,603 146,608
Loan proceeds from principal stockholder    59,320 492,988
NET CASH PROVIDED BY FINANCING ACTIVITIES 113,218 74,544 2,850,060
Effect of exchange rate changes on cash (966) (1,657) (45,860)
NET INCREASE IN CASH 37,068 892 37,068
CASH AT BEGINNING OF PERIOD    179   
CASH AT END OF PERIOD 37,068 1,071 37,068
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       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
Conversion of accrued expenses to common stock 27,500    101,272
Conversion of convertible notes and accrued interest to common stock    76,896 150,894
Conversion of loan payable to convertible debenture 27,963    27,963
Discounts related to warrants issued with convertible debenture $ 139,680    $ 139,680