XML 48 R5.htm IDEA: XBRL DOCUMENT v3.3.0.814
Consolidated Statements of Cash Flows Statement - USD ($)
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Operating activities:    
Net loss $ (5,860,324) $ (468,884)
Adjustments to reconcile net loss to cash flows from operating activities:    
Loss on extinguishment of debt 3,430,566
Fair value change in derivative debt 136,737 $ (93,452)
Stock compensation expense 10,417
Issuance of common stock for service fee $ 1,750,000
Depreciation expense $ 490
Allowance for doubtful accounts 41,187
Provision for inventory obsolescence 39,306
Changes in operating assets and liabilities:    
Accounts receivable $ 7,203 (10,027)
Inventory $ 1,325 34,077
Other assets 14,035
Accrued interest $ 10,849 31,496
Accrued compensation and personnel related payables (144,192)
Changes in current liabilities:    
Accounts payable and accrued liabilities $ 378,730 470,890
Net cash flows used in operating activities $ (134,497) (85,075)
Financing activities:    
Payment of bank note (124,018)
Proceeds from increase of production line of credit $ 50,000
Proceeds from issuance of common stock $ 135,000
Net cash from financing activities 135,000 $ (74,018)
Net change in cash $ 503 (159,093)
Cash, beginning of period 159,381
Cash, end of period $ 503 $ 288
Cash paid during the period for:    
Interest
Income taxes