Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 6 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Cash flows from operating activities:    
Net (loss) income $ (1,662,000) $ 867,000
Adjustments to reconcile net (loss) income to net cash used in operating activities:    
Depreciation 33,000 21,000
Amortization of prepaid advisory fees 825,000 830,000
Change in fair value of warrant liability (83,000) (3,572,000)
Stock-based compensation 60,000 38,000
Stock issuance for services 53,000 0
Gain on settlement of accrued liability (42,000) 0
Changes in operating assets and liabilities:    
Accounts receivable 7,000 40,000
Inventories 13,000 380,000
Other current assets 17,000 (184,000)
Accounts payable (8,000) (106,000)
Accrued expenses (13,000) (22,000)
Accrued interest 101,000 38,000
Customer deposits 17,000 12,000
Customer deposits from related party (2,000) (31,000)
Deferred revenue 0 (480,000)
Net cash used in operating activities (684,000) (2,169,000)
Cash flows from investing activities:    
Purchases of equipment 0 (37,000)
Net cash used in investing activities 0 (37,000)
Cash flows from financing activities:    
Proceeds from issuance of common shares from the exercise of employee stock options 0 4,000
Proceeds from the sale of common stock and warrants, net of offering costs paid 0 981,000
Proceeds from stockholder notes payable and line of credit 668,000 450,000
Net cash provided by financing activities 668,000 1,435,000
Net decrease in cash (16,000) (771,000)
Cash, beginning of period 20,000 812,000
Cash, end of period 4,000 41,000
Supplemental disclosures of Non-cash Investing and Financing Activities::    
Issuance of warrants classified as derivative liabilities 0 931,000
Cash paid during the year for:    
Income taxes $ 0 $ 2,000