Annual report pursuant to section 13 and 15(d)

STATEMENTS OF CASH FLOWS

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STATEMENTS OF CASH FLOWS (USD $)
 12 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Cash flows from operating activities:    
Net loss $ (713,073) $ (1,686,903)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 37,024 64,198
Impairment loss on patent 58,460 0
Stock-based compensation 0 45,901
Forfeited stock-based compensation (281,730) 0
Allowance for doubtful accounts 0 200,000
Gain on extinguishment of license payable (160,000) 0
(Increase) decrease in:    
Accounts receivable (144,460) 197
Prepaid expenses (29,471) (442)
Increase (decrease) in:    
Accounts payable (212,186) 98,718
Accrued interest 426,133 429,900
Unearned revenue 1,209,166 0
Accrued expenses (126,915) 73,694
Net cash provided by (used in) operating activities 62,948 (774,737)
Cash flows from investing activities:    
Property and equipment (3,212) (2,315)
Intangible assets (60,560) (101,813)
Net cash used in investing activities (63,772) (104,128)
Cash flows from financing activities:    
Proceeds from stock issuance 0 28,000
Payment on notes payable - officer (30,000) (18,000)
Net cash (used in) provided by financing activities (30,000) 10,000
Net decrease in cash and cash equivalents (30,824) (868,865)
Cash and cash equivalents at beginning of year 80,502 949,367
Cash and cash equivalents at end of year 49,677 80,502
Cash paid for:    
Interest 20,053 20,054
Income taxes 0 0
Total 20,053 20,054
Non-cash disclosures of investing and financing activities:    
Stock-based compensation 0 45,901
Expired stock-based compensation $ (160,987) $ 0