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 $)
 9 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Cash flows from operating activities:    
Net loss $ (3,407,000) $ (231,000)
Adjustments to reconcile net loss income to net cash used in operating activities:    
Depreciation 45,000 32,000
Amortization of prepaid advisory fees 1,252,000 1,274,000
Change in fair value of warrant liability 567,000 (3,826,000)
Stock-based compensation 194,000 67,000
Stock issuance for services 125,000 0
Changes in operating assets and liabilities:    
Accounts receivable (44,000) 43,000
Inventories (39,000) 481,000
Other current assets (39,000) (15,000)
Accounts payable (105,000) (67,000)
Accrued expenses 3,000 (155,000)
Accrued interest 142,000 71,000
Customer deposits 17,000 4,000
Customer deposits from related party (2,000) (62,000)
Deferred revenue 0 (480,000)
Net cash used in operating activities (1,291,000) (2,864,000)
Cash flows from investing activities:    
Purchases of equipment 0 (41,000)
Net cash used in investing activities 0 (41,000)
Cash flows from financing activities:    
Proceeds from issuance of common shares from the exercise of employee stock options 0 22,000
Proceeds from the sale of common stock and warrants, net of offering costs paid 1,276,000 981,000
Proceeds from stockholder notes payable and line of credit 668,000 1,135,000
Net cash provided by financing activities 1,944,000 2,138,000
Net increase (decrease) in cash 653,000 (767,000)
Cash, beginning of period 20,000 812,000
Cash, end of period 673,000 45,000
Supplemental disclosures of non-cash Investing and Financing Activities::    
Conversion of debt to equity 550,000 0
Issuance of warrants classified as derivative liabilities 0 931,000
Cash paid during the year for:    
Income taxes $ 0 $ 2,000