Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.7.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Mar. 31, 2017
Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (5,156,409) $ (1,434,574)
Adjustments to reconcile net loss to net cash used in operating activities:    
Non-cash compensation 424,390 228,333
Loss on debt settlement 48,000
Gain on forgiveness of debt (597,312)
Depreciation expense 6,875
Amortization 1,872 1,872
Amortization of prepaid financing cost 622,329 344,750
Amortization of prepaid expenses 396,529
Amortization of debt discount 669,136 68,658
Amortization of warrant discount 212,910 133,128
Fair value of options expense 4,496
Fair value of warrants expense 30,626
Change in the fair value of derivative liability (43,834)
Derivative liability expense - insufficient shares 85,960
Non-cash interest expenses 104,334 144,208
Changes in operating assets and liabilities:    
Accounts receivable (12,000) (365,366)
Inventory 1,307,377 92,795
Prepaid expenses (126,298)
Prepaid financing costs (112,430)
Accounts payable and accrued liabilities (188,771) (280,673)
Preferred stock liability (100) 100
Payroll taxes, interest and penalties 32,110 (29,154)
Accrued interest 234,520 383,989
Unearned revenue (1,362,009) (59,639)
NET CASH (USED IN) OPERATING ACTIVITIES (2,667,619) (1,521,623)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of fixed assets (13,750)
NET CASH (USED IN) INVESTING ACTIVITIES (13,750)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from convertible notes payable, net of fees 355,000 3,600,690
Payments on debt settlement (16,795) (151,065)
Proceeds from promissory notes 61,500
Proceeds from the sale of common stock, net of fees 730,000
Payments on convertible notes payable (27,500)
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,129,705 3,422,125
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,537,914) 1,886,752
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 2,175,543 128,968
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 637,629 2,015,720
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Interest paid 521,923 114,988
Taxes paid
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Issuance of shares of common stock for debt and accrued interest conversion 1,555,581 149,500
Debt discount on convertible notes 38,493
Fair value of warrant issued for debt discount and deferred financing cost 931,391
Derivative liability expense - insufficient shares 85,960
Common stock to be issued now issued 254,166
Initial derivative liability on the notes issuance date 409,240 182,701
Derivative liability reclass into additional paid in capital upon notes conversion 125,710 182,701
Proceed from convertible notes directly paid to accounts payable balance 91,550
Re-class accrued interest into convertible debt 37,000
Stock issued in conjunction with cashless warrant exercise 159
Debt discount on non convertible notes $ 61,500