Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Cash flow from operating activities    
Net income (loss) $ 1,953,054 $ (8,230,466)
Adjustments to reconcile net loss to net cash used in operations    
Depreciation of property and equipment 3,729 0
Amortization of software development costs 4,147 14,179
Amortization of loan financing costs 357,289 104,345
Issuance of stock for services 1,750 6,205,995
Impairment of technology asset and goodwill 0 1,316,458
Change in value of derivatives (5,045,928) (3,157,821)
Share-based compensation 1,218,128 880,700
Change in share-based compensation liability (322,254) 49,672
(Gain) loss on debt settlement (1,423,939) 94,832
Provision for loss on accounts receivable 0 0
Changes in operating assets and liabilities    
Accounts Receivable (10,711) 25,794
Prepaid expenses (25,691) 0
Accounts payable and accrued expenses 1,192,168 1,049,816
Related party payable 53,440 0
Common stock payable 285,000 0
Employee/contractor payable (703,531) 0
Net cash used in operating activities (2,463,349) (1,646,496)
Cash flow from investing activities    
Purchase of property and equipment (16,780) 0
Increase in capitalized software development costs (121,365) 0
Security deposits (3,600) 0
Net cash used in investing activities (141,745) 0
Cash flow from financing activities    
Proceeds from line of credit 649,000 275,326
Payments on line of credit (150,000) 0
Proceeds from long term debt 622,898 0
Payments on long term debt (121,331) (150,000)
Increase in deferred loan costs 0 0
Proceeds from issuance of common stock, net of costs 1,282,075 2,034,375
Net cash provided by financing activities 2,282,642 2,159,701
Net increase (decrease) in cash and cash equivalents (322,452) 513,205
Cash and cash equivalents at beginning of period 513,272 67
Cash and cash equivalents at end of period 190,820 513,272
Schedule of Noncash Investing and financing Transactions:    
Derivative warrants 0 8,228,882
Exchanged stock for Technology Assets 0 1,060,016
Exchanged stock for Acquisition of stock 0 421,053
Exchanged stock for accounts payable and accrued expenses 0 292,210
Exchanged stock for note payable and accrued interest   154,214
Exchanged stock for access to independent agents 0 59,400
Common stock payable for loan and stock issuance costs 1,708,305 107,572
Warrants issued for stock issuance costs 245,423 0
Reclassify share based compensation liability 558,446 0
Supplemental disclosures:    
Cash paid for interest $ 21,833 $ 20,604