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 $)
9 Months Ended 78 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $ (611,977) $ (1,217,990) $ (17,335,330)
Adjustments to reconcile net loss to net cash used in operating activities:      
Issuance of common stock for services and voluntary ratchet 237,833 797,283 1,716,563
Loss on settlement of debt    107,939 108,185
Consultant stock expense       48,000
Amortization of prepaid shares issued for services 6,667 37,917 11,189,926
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)    (4,927) 43,256
Depreciation expense 538 978 14,749
Amortization of debt discount 30,434    30,434
Change in fair value of warrant derivative liability (27,016)    (27,016)
Changes in operating assets and liabilities:      
Escrow account    653   
Accounts receivable       (664)
GST receivable       798
Prepaid expenses and other assets 1,224 2,804 3,799
Accounts payable 83,789 55,603 386,861
Employee benefit liability 8,725 8,731 59,374
Accrued expenses 122,728 113,457 445,537
Accrued interest 9,388 851 199,508
NET CASH USED IN OPERATING ACTIVITIES (137,667) (96,701) (2,789,103)
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) 101   
Sale of common stock       1,479,675
Contributed capital       495,665
Subscriptions receivable - related party       22
Related party expenses paid (and advances made) on behalf of company 67,760    125,022
Loan repayments to officer and directors (45,511) (33,379) (93,205)
Investor Advances - related party       79,112
Proceeds from convertible promissory notes 103,959    246,265
Loan proceeds 10,542 37,362 48,048
Loan proceeds from related party    94,908 492,988
NET CASH PROVIDED BY FINANCING ACTIVITIES 136,745 98,992 2,873,592
Effect of exchange rate changes on cash 962 (2,470) (43,937)
NET INCREASE (DECREASE) IN CASH 40 (179) 40
CASH AT BEGINNING OF PERIOD    179   
CASH AT END OF PERIOD 40    40
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 6,667    10,867,632
Advance from Investor - related party, reclassified to common stock       80,000
Conversion of accrued expenses to common stock 27,500 37,500 101,272
Conversion of convertible notes and accrued interest to common stock    75,000 150,894
Conversion of loan payable to convertible debenture 27,963    27,963
Discounts related to warrants issued with convertible debenture $ 133,095    $ 133,095