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 $ (9,730,454) $ (6,727,457)
Amortization of notes payable discount 3,356,000 19,312
Amortization of deferred financing costs 416,337 279,096
Amortization of intangible asset 3,544 295
Depreciation expense 7,759 0
Stock-based compensation expense 1,081,792 3,687,502
Stock issued for services 404,587 0
Warrant expense 126,427 0
Derivative expense 336,489 157,761
Bad debt expense 341,780 0
Changes in operating assets and liabilities:    
Decrease in other assets 12,044 6,706
(Increase) in inventory (66,600) 0
(Increase) decrease in due from related parties 18,947 (206,609)
Increase in accounts payable and accrued expenses 271,965 80,117
(Decrease) increase in accounts payable and accrued expenses - related party (134,946) 804,861
Increase in interest payable 353,091 270,451
Deferred lease liability 33,881 0
Net Cash Used In Operating Activities (3,167,357) (1,627,965)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of fixed assets (69,974) (11,717)
Payment of deposit (750,000) 0
Acquisition of assets 0 (500,000)
(Increase) decrease in interest receivable - related party (10,211) 28,206
Issuance of note receivable - related party 0 (305,603)
Payments on note receivable - related party 0 974,228
Net Cash (Used In) Provided By Investing Activities (830,185) 185,114
CASH FLOWS FROM FINANCING ACTIVITIES:    
Payments of financing costs (270,300) (157,500)
Proceeds from issuance of convertible notes payable 2,703,000 1,575,000
Repayments of convertible notes payable (67,500) 0
Proceeds from issuance of notes payable - related party 234,700 0
Repayments of notes payable - related party (234,700) 0
Proceeds from issuance of equity financing 8,931,434 0
Payment of placement agent compensation and issuance costs (1,365,085) 0
Net Cash Provided By Financing Activities 9,931,549 1,417,500
Net increase (decrease) in cash 5,934,007 (25,351)
Cash - Beginning of Year 527 25,878
Cash - End of Year 5,934,534 527
Cash Paid During the Period for:    
Taxes 0 0
Interest 15,726 0
Non-Cash Transactions:    
Assumption of accrued expenses in reverse merger 0 1,207
Assumption of due to/from related party in reverse merger 0 23,263
Conversion of convertible notes payable to common stock 6,308,000 0
Conversion of interest payable to common stock 722,587 0
Conversion of accounts payable and accrued expense - related party to common stock 275,000 0
Beneficial conversion feature recorded as a debt discount 2,922,938 0
Warrant value recorded as a debt discount 433,062 0
Reclassification of warrant liability to equity 1,407,739 0
Warrant value recorded as issuance costs 898,719 0
Assets acquired in asset acquisition:    
Inventory 0 223,000
Fixed Assets 0 264,000
Intangible assets 0 13,000
Cash paid for asset acquisition $ 0 $ 500,000