|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
|
9 Months Ended |
|
Mar. 31, 2012
|
Mar. 31, 2011
|
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
| Net loss |
$ (586,569) |
$ (768,908) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
| Depreciation |
11,868 |
21,458 |
| Amortization of discount on notes payable |
27,707 |
7,312 |
| Fair value of stock options issued to employees |
2 |
1,208 |
| Allowance on note receivable |
|
60,000 |
| Changes in operating assets and liabilities: |
|
|
| Accounts receivable |
7,490 |
50,732 |
| Restricted cash |
(500,000) |
|
| Inventories |
969 |
(2,923) |
| Employee advances |
1,500 |
2,000 |
| Prepaid expenses |
18,931 |
(125) |
| Deferred revenue |
384,663 |
59,419 |
| Payroll tax liabilities |
134,153 |
145,403 |
| Accounts payables and accrued expenses |
(60,818) |
229,004 |
| Interest accrued on notes payable |
123,000 |
116,244 |
| Net cash provided (used) by operating activities |
(437,104) |
(79,176) |
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
| Issuance of note receivable |
(10,168) |
(60,000) |
| Net cash used by investing activities |
(10,168) |
(60,000) |
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
| Proceeds from notes payable |
489,500 |
129,200 |
| Net cash provided by financing activities |
489,500 |
129,200 |
| NET INCREASE IN CASH |
42,228 |
(9,976) |
| CASH AT BEGINNING OF PERIOD |
14,996 |
31,915 |
| CASH AT END OF PERIOD |
57,224 |
21,939 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
|
|
| Cash paid for interest |
1,967 |
606 |
| NONCASH INVESTING AND FINANCING ACTIVITIES |
|
|
| Fair value of shareholder guarantee on notes payable recorded as a valuation discount |
$ 129,931 |
|