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 $)
 3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash flows from operating activities:    
Net loss $ (197,000) $ (746,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 10,000 12,000
Amortization of prepaid advisory fees 0 411,000
Change in fair value of warrant liability (438,000) (81,000)
Stock-based compensation 51,000 23,000
Stock issued for services 0 20,000
Changes in operating assets and liabilities:    
Accounts receivable 103,000 5,000
Inventories (17,000) (3,000)
Other current assets (20,000) 57,000
Accounts payable 123,000 12,000
Accrued expenses 79,000 (108,000)
Accrued interest 0 52,000
Customer deposits 0 14,000
Customer deposits from related party 0 (2,000)
Net cash used in operating activities (306,000) (334,000)
Cash flows from investing activities:    
Purchases of equipment (6,000) 0
Net cash used in investing activities (6,000) 0
Cash flows from financing activities:    
Net proceeds from the sale of common stock and warrants, net of offering costs paid 129,000 0
Proceeds from related party note payable and line of credit 125,000 363,000
Net cash provided by financing activities 254,000 363,000
Net (decrease) increase in cash (58,000) 29,000
Cash, beginning of period 116,000 20,000
Cash, end of period 58,000 49,000
Supplemental disclosures of Non-cash Financing Activities:    
Issuance of warrants recorded as deferred financing costs 3,000 0
Debt discount related to warrants and beneficial conversion feature $ 80,000 $ 0