Cash Flow

v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Jun. 30, 2017
Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (7,325,128) $ (6,202,816)
Adjustments to reconcile net loss to net cash used in operating activities:    
Non-cash compensation 491,851 511,198
Loss on debt settlement 48,000
Debt modification expenses 2,865,234
Gain on forgiveness of debt (597,312)
Inventory write-down 32,515
Depreciation expense 9,167 764
Amortization 2,496 2,496
Amortization of prepaid financing cost 993,380 514,207
Amortization of prepaid expenses 396,529
Amortization of debt discount 1,086,760 195,239
Amortization of warrant discount 283,880 204,098
Fair value of options expense 16,909
Fair value of warrants expense 30,626
Change in the fair value of derivative liability (63,372) (18,868)
Derivative liability expense - insufficient shares 85,960
Non-cash interest expenses 104,334 275,041
Changes in operating assets and liabilities:    
Accounts receivable 76,305
Inventory 1,287,465 (2,044,472)
Prepaid expenses (592,769)
Prepaid financing costs (93,246)
Accounts payable and accrued liabilities 101,787 648,068
Preferred stock liability (100)
Payroll taxes, interest and penalties 73,041 (64,647)
Accrued interest 293,870 468,350
Unearned revenue (1,362,009) 1,305,796
NET CASH USED IN OPERATING ACTIVITIES (3,497,999) (2,461,374)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of fixed assets (27,500)
Purchase of intangible assets (18,100)
NET CASH USED IN INVESTING ACTIVITIES (45,600)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from convertible notes payable, net of fees 415,000 4,775,469
Payments on debt settlement (16,795) (201,420)
Proceeds from promissory notes 221,500
Proceeds from the sale of common stock, net of fees 1,030,000
Payments on convertible notes payable (45,500)
Payments on promissory notes (16,500)
Stock issued for cash in conjunction with warrant exercise 25,000
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,633,205 4,553,549
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1,864,794) 2,046,575
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 2,175,543 128,968
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 310,749 2,175,543
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Interest paid 666,548 254,444
Taxes paid
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Issuance of shares of common stock for debt and accrued interest conversion 1,752,801 861,518
Debt discount on convertible notes 34,944 1,425,555
Fair value of warrant issued for debt discount and deferred financing cost 1,272,194
Derivative liability expense - insufficient shares 85,960
Common stock to be issued now issued 254,166
Initial derivative liability on the notes issuance date 409,240 389,697
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 96,581
Re-class accrued interest into convertible debt 368,947
Stock issued in conjunction with cashless warrant exercise 159
Stock issued in conjunction with promissory notes accounted for as financing costs $ 173,000

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