Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
9 Months Ended 12 Months Ended 21 Months Ended
Mar. 31, 2013
Mar. 31, 2014
Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $ (283,388) $ (4,229,513) $ (4,512,901)
Adjustments to reconcile net income to net cash used in operating activities:      
Bad Debt expense 0 10,000 10,000
Depreciation expense 1,814 42,407 44,221
Interest expense converted to common stock 0 3,555 3,555
Shares issued for services 0 2,652,291 2,652,291
Amortization of debt discount 0 107,532 107,532
Interest expense on redeemable preferred stock on intial issuance 0 455,926 455,926
Change in derivative liabilities 0 (617,939) (617,939)
Changes in operating assets and liabilities:      
Accounts receivable (15,110) (161,294) (176,404)
Inventory (7,573) (50,392) (57,965)
Prepaid expenses and other current assets 0 0 0
Accounts payable 13,141 307,504 320,645
Accounts payable - related party 0 17,913 17,913
Accrued expenses 5,400 51,201 56,601
Accrued interest 1,315 19,829 21,144
Net cash used in operating activities (284,401) (1,390,980) (1,675,381)
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchase of fixed assets (39,897) (276,310) (316,207)
Deposits (15,000) 0 (15,000)
Net cash used in investing activities (54,897) (276,310) (331,207)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from notes payable 150,000 0 150,000
Proceeds from revolving financing 0 83,348 83,348
Proceeds from sale of common stock 0 1,100,000 1,100,000
Proceeds from sale of manadatory redeemable preferred stock, net 0 422,000 422,000
Shareholder contribution 264,575 0 264,575
Shareholder distribution (10,670) 0 (10,670)
Net cash provided by financing activities 403,905 1,605,348 2,009,253
NET CHANGE IN CASH 64,607 (61,942) 2,665
CASH AT BEGINNING OF PERIOD 0 64,607 0
CASH AT END OF PERIOD 64,607 2,665 2,665
SUPPLEMENTAL INFORMATION:      
Interest paid 0 0  
Income taxes paid 0 0  
NON-CASH INVESTING AND FINANCING ACTIVITIES:      
Debt converted to common stock 0 229,870  
Derivative liability on redeemable preferred stock $ 0 $ 422,000