Puramed Bioscience (PMBS) 10-Q 20 May 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Mar. 31, 2014	13-May-14
Undesignated Shares Authorized	'	'
Entity Registrant Name	'Puramed Bioscience Inc.	'
Entity Central Index Key	'0001409565	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--06-30	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	1,070,272,991
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2014	'

Unaudited_Condensed_Balance_Sh

Unaudited Condensed Balance Sheets (USD $)	Mar. 31, 2014	Jun. 30, 2013
Current Assets	'	'
Cash	$2,263	$41,180
Accounts Receivable	'	25,119
Inventory	29,295	203,906
Prepaid Expenses	20,341	56,039
Total Current Assets	51,899	326,244
Property and Equipment	'	'
Computer Software	2,483	2,483
Computer Hardware	5,570	5,338
Equipment	2,136	2,136
Accumulated Depreciation	-6,804	-5,090
Net Property and Equipment	3,385	4,867
Other Assets	'	'
PuraMed Bioscience Products, net of accumulated amortization of $334,420 and $298,418, respectively	1,612	37,614
Trademarks, net of amortization of $4,028 and $2,754, respectively	14,230	13,383
Patents, net of amortization of $7,320 and $2,928, respectively	88,147	89,511
Deferred Financing Fees	14,455	4,727
Total Other Assets	118,444	145,235
Total Assets	173,728	476,346
Current Liabilities	'	'
Accounts Payable	866,749	627,427
Accrued Wages - Officers	427,230	435,326
Accrued Expenses	232,388	120,040
Short-term Term Note	525,000	525,000
Short-term Convertible Notes, net of discount	316,349	454,025
Convertible Bond Payable	598,733	598,733
Derivative Liability - Warrants	2,284	10,178
Derivative Liability - Convertible Debt	1,317,757	400,270
Total Current Liabilities	4,286,490	3,170,999
Conditionally Redeemable Stock	190,000	75,000
Stockholders' Deficit	'	'
Common Stock, $.001 par value, 1,000,000,000 shares authorized, 977,859,767 shares and 51,110,297 shares issued and outstanding, respectively	977,860	51,110
Additional paid in capital	6,625,782	5,528,469
Accumulated deficit	-11,906,404	-8,349,232
Total Stockholders' Deficit	-4,302,762	-2,769,653
Total Liabilities and Stockholders' Deficit	$173,728	$476,346

Unaudited_Condensed_Balance_Sh1

Unaudited Condensed Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Jun. 30, 2013
ASSETS	'	'
PuraMed Bioscience Products, accumulated amortization	$334,420	$298,418
Trademarks, accumulated amortization	4,028	2,754
Patents, accumulated amortization	$7,320	$2,928
Stockholders' Deficit	'	'
Common stock, par value	$0.00	$0.00
Common stock, authorized shares	1,000,000,000	1,000,000,000
Common stock, issued shares	977,859,767	51,110,297
Common stock, outstanding shares	977,859,767	51,110,297

Unaudited_Condensed_Statements

Unaudited Condensed Statements of Operations (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Unaudited Condensed Statements Of Operations	'	'	'	'
Net Revenues	'	'	'	$27,534
Cost of Sales	3,027	5,218	415,643	33,285
Gross Loss	-3,027	-5,218	-415,643	-5,751
Operating Expenses	'	'	'	'
Selling, General and Administrative Expenses	142,437	83,764	240,090	189,872
Amortization and Depreciation Expense	14,470	14,441	43,382	40,392
Professional fees	26,864	102,830	186,669	373,324
Marketing and advertising expense	-2,993	59,358	76,854	375,696
Research and development	'	60,400	'	75,056
Salaries	8,206	6,688	22,638	20,988
Officer's salaries	1,009,846	77,539	1,131,692	245,359
Total Operating Expenses	1,198,830	405,020	1,701,325	1,320,687
Loss from Operations	-1,201,857	-410,238	-2,116,968	-1,326,438
Other Income/(Expense)	'	'	'	'
Interest expense	-460,815	-115,454	-756,988	-411,104
Gain (Loss) on Derivative Liability	-281,437	-16,057	-683,216	95,768
Other Income/(Expense)	-742,252	-131,511	-1,440,204	-315,336
Net loss	($1,944,109)	($541,749)	($3,557,172)	($1,641,774)
Loss on Common Share - Basic and Diluted	$0	($0.02)	($0.02)	($0.06)
Weighted Average Common Shares Outstanding - Basic and Diluted	426,982,515	33,135,246	184,105,482	28,491,070

Unaudited_Condensed_Statements1

Unaudited Condensed Statements of Cash Flows (USD $)	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash Flows from operating activities	'	'
Net Loss	($3,557,172)	($1,641,774)
Changes in non cash working capital items:	'	'
Stock issued for services	'	76,000
Depreciation	1,714	1,714
Amortization of intangible assets	41,668	38,679
Amortization of deferred financing fees	18,442	'
Accretion on discount on convertible bond	'	50,490
Accretion on discount on convertible notes	573,350	325,302
Stock-based compensation	1,080,000	'
Day-one loss on derivative liability	379,531	145,716
Loss (gain) on derivative liability	303,685	-241,484
Changes in Operating assets and liabilities:	'	'
Accounts receivable	25,119	3,099
Inventory	174,611	-31,691
Prepaid expenses	35,698	-81,159
Accounts payable	259,322	52,072
Accrued wages - Officers	151,904	196,228
Accrued expenses	122,472	148,014
Net cash used for operating activities	-389,656	-958,794
Cash Flows from investing activities	'	'
Patent acquisition costs	-3,028	-7,487
Property and equipment acquisition costs	-232	'
Trademark acquisition costs	-2,121	'
Net cash used for investing activities	-5,381	-7,487
Cash flows from financing activities	'	'
Proceeds from notes	356,120	943,233
Repayment of notes	'	-32,500
Proceeds from sale of stock and warrants, net of issuance costs	'	61,350
Net cash provided by financing activities	356,120	972,083
Net change in cash	-38,917	5,802
Cash at beginning of the period	41,180	562
Cash at end of the period	2,263	6,364
Supplemental disclosures of noncash investing and financing activities and other cash flow information:	'	'
Short-term debt and accrued interest converted to common stock	320,692	187,713
Common stock issued to satisfy accrued wages and accounts payable	180,000	'
Retirement of derivative liability - convertible debt	565,909	262,059
Issuance of derivative liability - convertible debt	789,757	205,000
Issuance of common stock for debt discount	'	115,000
Reclassification of contingently redeemable stock	115,000	'
Interest paid with cash	$14,263	$69,237

A_Basis_of_Presentation

A. Basis of Presentation	9 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
NOTE A- Basis of Presentation	'
	A. Basis of Presentation
	The condensed balance sheets as of March 31, 2014 and June 30, 2013, the condensed statements of operations for the three and nine month periods ended March 31, 2014 and 2013 and the condensed statements of cash flows for the nine month periods ended March 31, 2014 and 2013 have been prepared by PuraMed BioScience, Inc. (the "Company") without audit. In the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary to present fairly the financial position as of  March 31, 2014 and the results of operations and cash flows for the three and nine month periods ended March 31, 2014 and 2013 presented herein have been made.
	Certain information and footnote disclosures normally included in financial statements prepared in accordance with the United States generally accepted accounting principles have been condensed or omitted. These financial statements should be read in conjunction with the Company's financial statements and notes thereto for the fiscal year ended June 30, 2013 included in the Annual Report on Form 10-K of the Company filed with the SEC on October 15, 2013.

B_Going_Concern

B. Going Concern	9 Months Ended
	Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
NOTE B- Going Concern	'
	B. Going Concern
	As of  March 31, 2014, the Company had negative working capital and minimal funds needed to accomplish its planned business strategy or support its projected expenses. The Company plans to obtain the needed working capital primarily through debt issuances and sales of its common stock, which there is no assurance it will be able to accomplish. If the Company cannot obtain substantial working capital through debt issuances, common stock sales or other sources (if any), it will be forced to curtail its planned business operations. If the Company is unable to obtain additional financing, its ability to continue as a going concern is doubtful.

C_Accounting_Policies

C. Accounting Policies	9 Months Ended
	Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
NOTE C - Accounting Policies	'
	Loss per common share – Basic loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding. Diluted loss per common share assumes the exercise of stock options and warrants using the treasury stock method, if dilutive. Potentially dilutive shares were not included in the calculation of diluted shares, as their effect would have been antidilutive.
	Product Amortization – PuraMed® BioScience products consist primarily of the cost of trade secrets, formulas, scientific and manufacturing know-how, trade names, marketing material and other intellectual property and are amortized on a straight-line basis over an estimated useful life of seven years.
	Trademark Amortization – PuraMed® BioScience trademarks consist of the legal costs associated with registering our LipiGesic® and PuraMed® BioScience trademarks. As these trademarks have been approved, they are being amortized on a straight-line basis over an estimated useful life of ten years.
	Fair Value Measurements
	Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:
	Level 1 Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.
	Level 2 Other inputs that are observable directly or indirectly, such as quoted prices for similar assets and liabilities or market corroborated inputs.
	Level 3 Unobservable inputs that are used when little or no market data is available, which require the Company to develop its own assumptions about how market participants would value the assets or liabilities.
	Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosure each quarter. Assets and liabilities measured at fair value on a recurring basis as of March 31, 2014 and June 30, 2013 are summarized as follows:
			Fair Value as of March 31, 2014
			Level 1		Level 2			Level 3			Total
	Liabilities
	Derivative Liability - Warrants		$	-	$	-		$	2,284		$	2,284
	Derivative Liability – Convertible Debt			-		-			1,317,757			1,317,757
	Total		$	-	$	-		$	1,320,041		$	1,320,041
			Fair Value as of June 30, 2013
			Level 1		Level 2			Level 3			Total
	Liabilities
	Derivative Liability – Warrants		$	-	$	-		$	10,178		$	10,178
	Derivative Liability – Convertible Debt			-		-			400,270			400,270
	Total		$	-	$	-		$	410,448		$	410,448
	The following table presents the fair value reconciliation of Level 3 liabilities measured at fair value on a recurring basis during the nine months ended March 31, 2014:
			Fair Value Measurements Using Significant
			Unobservable Inputs (Level 3)
					Derivative
			Derivative		Liability -
			Liability -		Convertible
			Warrants		Debt			Total
	Beginning balance, July 1, 2013		$	10,178	$	400,270		$	410,448
	Issuance			-		789,757			789,757
	Retirements			-		(563,380	)		(563,380	)
	Loss (Gain) on derivative liability			(7,894)		691,110			683,216
	Ending balance, March 2014		$	2,284	$	1,317,757		$	1,320,041
	A binomial option-pricing model was used to value the derivative liability with the following inputs:
	●	Stock Price – The Stock Price was based on the closing price of the Company’s common stock on the valuation date. The valuation date can either be the date of issuance of the convertible debt note or the last day of a reporting period (the Valuation Date). Stock prices on the Valuation Dates ranged from $0.002 to $0.02.
	●	Variable Conversion Price – The variable conversion price was based on 50% to 60% of the average of the three lowest stock bid prices out of the last 10 trading days prior to the Valuation Date.
	●	Time to Maturity – The time to maturity was determined based on the length of time between the Valuation Date and the maturity of the debt.
	●	Risk Free Rate – The risk free rate was based on the US treasury note rate as of the Valuation Dates with term commensurate with the remaining term of the debt. The risk free rate used was .09%.
	●	Volatility – The volatility was based on the historical volatility of the Company, using a time period to calculate volatility commensurate with the Time to Maturity.
	Recently Enacted Accounting Standards
	In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards (ASC) Update No. 2013-11 – Income Taxes. In April 2013, FASB issued ASC Update No. 2013-07 – Presentation of Financial Statements. In February 2013, FASB issued ASC 2013-04, Liabilities. In January 2013, FASB issued ASC Update No. 2013-01 – Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. In October 2012, FASB issued ASC Update No. 2012-04 – Technical Corrections and Improvements. In August 2012, FASB issued ASC Update No. 2012-03 – Technical Amendments and Corrections to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 114, Technical Amendments Pursuant to SEC Release No. 33-9250, and Corrections Related to FASB Accounting Standards Update 2010-22. In July 2012, FASB issued Update No. 2012-02 – Intangibles – Goodwill and Other (Topic 350), testing Indefinite-Lived Intangible Assets for Impairment.
	The Company has considered these and other recent accounting pronouncements of which the Company is aware, and the Company believes their adoption has not had, and will not have, any material impact on our financial position or results of operations.

D_Inventory

D. Inventory	9 Months Ended
	Mar. 31, 2014
Inventory Disclosure [Abstract]	'
NOTE D - Inventory	'
	Inventory consists of raw materials and finished goods. Raw materials are the components, including boxes, inserts, liquid medicine and packaging materials that have not been combined into the final product, ready for sale. Finished goods are the final product, available for sale. The raw materials inventory will be assembled and placed in finished goods inventory when that amount is significantly reduced. Due to the lack of degradation of the material, management believes no additional adjustment for obsolescence is currently necessary. Inventory consisted of the following as of March 31, 2014 and June 30, 2013:
		31-Mar-14			30-Jun-13
	Raw Materials	$	29,295		$	29,345
	Finished Goods		164,847			174,561
	Reserve for inventory obsolescence		(164,847	)		-
	Total Inventory	$	29,295		$	203,906

E_Notes_Payable_Transactions

E. Notes Payable Transactions	9 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
NOTE E- Notes Payable Transactions	'
	The Company has issued various 8% to 16% secured convertible notes (the Convertible Notes). The Company has bifurcated the convertible debt agreements according to the guidance provided by ASC 815-15-25. The principal and accrued interest for these notes is payable nine to twelve months after issuance, or such earlier date as defined in the agreement.  The notes are convertible by the holder at any time after the issue date and by the Company at any time after issue with conversion periods as defined in the agreement.  The notes are convertible into shares of the Company’s common stock at a price of 50% to 60% of the average of the three lowest closing bid prices of the stock during the defined trading day period ending one day prior to the date of conversion.  The holders are not entitled to convert any portion of the Convertible Notes to the extent that the shares to be issued in connection therewith would cause the holder’s beneficial ownership of the Company’s common stock to exceed 4.99% of the outstanding shares of the Company’s common stock.  Because of the operation of the floating conversion price and the holder’s ability to convert as described above, the Company is unable to determine at any time that number of shares into which the Convertible Notes are convertible. As of March 31, 2014, the balance of the Convertible Notes was $690,451, with a discount of $374,102.
	The Convertible Notes contain customary representations and warranties, customary affirmative and negative covenants, customary anti-dilution provisions, and customary events of default that accelerate the due date of the unpaid principal amount of, and all accrued and unpaid interest on, the Convertible Notes.  A default on the Convertible Notes could lead to certain penalties, including an obligation to (a) pay all of the following, plus an additional 50% of (i) default interest, (ii) other monetary penalties, and (iii) the outstanding balance on the Convertible Notes.
	The holders are entitled to have all shares issued upon conversion listed upon each national securities exchange or other automated quotation system, if any, upon which shares of the Company’s common stock are then listed.
	The Company is required to carry the embedded derivatives on its balance sheet at fair value and account for any unrealized change in fair value as a component in its results of operations. The Company valued the embedded derivatives using a binomial option-pricing model.
	The Company entered into a convertible note in the amount of $500,000 with an individual who is now a Director of the Company on November 13, 2009. The note expired on November 12, 2012, and a new note in the amount of $598,733 was entered into on January 31, 2013, with an interest rate of 8% and the right to pay off the note in whole or in part at any time. The new note is the balance of the former note plus expenses of $98,233, paid by the Board Member on behalf of the Company. As of May 12, 2014 the Company has not begun servicing this note.
	During 2013, the Company entered into a material definitive agreement with TCA Global Credit Master Fund, LP, a Cayman Islands limited partnership (TCA), with a promissory note in the amount of $350,000. Interest is due and payable each month at a rate of 12%. The note has a cross default clause and has a continuing, first priority security until such time as the note is repaid. This note is convertible, as further consideration for TCA entering into and structuring the promissory note, the Company paid TCA a fee of $115,000, with consideration of 479,167 shares of common shares of the Company, which was recorded as a debt discount, and amortized over the initial term of the debt of one year.
	In June 2013, TCA restructured its debt agreement with the Company, which constituted a troubled debt restructuring, with the term of the debt extended through January 1, 2014. The principal balance of the note was increased to $368,757 (which included $14,000 of interest due to TCA) as a result of this debt restructuring. This balance is included with short-term convertible notes. Losses incurred as a result of this restructuring totaled $94,132, which consisted of the payment of $75,000 of common stock to TCA, the write-off of a remaining debt discount of $14,375 and an increase in the balance due to TCA of $4,757. The common stock issued to TCA is redeemable by the Company if TCA does not realize net proceeds of at least $75,000 from the shares within a twelve month period following receipt of the shares; accordingly, it has been classified outside of permanent equity as of March 31, 2014 and June 30, 2013. An additional $115,000 of shares became conditionally redeemable during the three months ended March 31, 2014, and is also classified outside of permanent equity as of March 31, 2014.
	In April 2013, two notes agreements were entered into with Robert Libauer for a total of $525,000. These notes were due on April 1, 2014, with 8% interest compounded annually. These notes are secured by a second position in all the Company’s assets. As of May 12, 2014, the Company has not begun servicing this note.
	During the three months ended December 31, 2013, the Company has issued various secured convertible notes totaling $96,000 with four different organizations (Asher, JMJ, Tonaquint, Brighton Capital). The interest rates on these convertible notes vary from 8% to 22%.
	During the three months ended March 31, 2014, the Company has issued various secured convertible notes totaling $162,500 with three different organizations. The interest rates on these convertible notes vary from 8% to 10%.

F_Stockholders_Deficit

F. Stockholders' Deficit	9 Months Ended
	Mar. 31, 2014
Equity [Abstract]	'
NOTE F- Stockholders' Deficit	'
	During the nine months ended March 31, 2014, the Company issued a total of 284,182,442 common shares in payment of principal and interest due on convertible notes totaling $320,692. The shares were valued at $0.0007 to $0.028 per share.
	During the nine months ended March 31, 2014, 192,567,028 common shares were issued in connection with the cashless exercise of warrants.
	On February 18, 2014, the Board of Directors approved 400,000,000 shares of the Company’s common stock to CEO Russell Mitchell for payment of $160,000 of the $270,000 in accrued wages due to him. The fair value of the shares was $1,120,000, and $960,000 was recorded as officers salaries.
	On February 18, 2014, the Board of Directors approved 50,000,000 shares of the Company’s common stock to Envision Marketing for payment of $20,000 of accounts payable due to them. The fair value of the shares was $140,000, and $120,000 was recorded as selling general and administrative expense.

G_Subsequent_Events

G. Subsequent Events	9 Months Ended
	Mar. 31, 2014
Subsequent Events [Abstract]	'
NOTE G- Subsequent Events	'
	Subsequent to March 31, 2014, the Company issued convertible notes payable totaling $80,500 due with interest ranging from 8% to 12% with maturity dates ranging from being due on demand to October, 30, 2014.
	Subsequent to March  31, 2014, the Company issued a total of  52,164,526 common shares in payment of principal ,  interest, and fees due on two convertible notes totaling $60,400.  The shares were valued at $0.000820 to $0.001508.
	Subsequent to March 31, 2014, the Company issued a total of 7,092,199 common shares in payment for warrants on one convertible note totaling $172,500.  The shares were valued at $0.00820.
	On April 24, 2014, the Company entered into a Master Exchange Agreement (the "Exchange Agreement") with an institutional investor (the "Institutional Investor") for the note initially issued by the Company to TCA, under which obligations of $579,109 were owed as of such date.
	Pursuant to the Exchange Agreement and subject to its terms and conditions, the Institutional Investor may, from time to time, at the Institutional Investor's sole option, exchange obligations under the note, in whole or in part, for shares of the Company's common stock.  The number of common stock shares issuable to the Institutional Investor upon exchange of the obligations under the note shall be determined by dividing the applicable "Exchange Amount" (as defined in the Agreement) by the "Exchange Price" (as defined in the Agreement). On the closing date, the Institutional Investor exchanged $50,000 of the outstanding obligations under the note for 33,156,499 shares of Common Stock.
	On March 20, 2014, the Company filed an Pre 14-A proxy with the SEC.  The proxy vote was called to increase the company’s authorized common shares from 1 billion shares to 4 billion shares.  In addition 100 million shares were to be authorized as “Preferred” stock.  On April 1, 2014, the Company filed the DEF 14-A .  On April 22, 2014  the Company issued an 8-K announcing that the share increase was approved by our shareholders.
	On May 2, 2014, the Company filed an S-8 which included as an exhibit the 2014 Incentive Stock and Award Plan (the Plan).  500,000,000 shares of the Company’s common stock are subject to the Plan.  75,000,000 of shares under the Plan were registered with the SEC pursuant to the S-8.  Complete details of the filing can be found in the S-8 that was filed with the SEC on May 2, 2014.
	Effective May 8, 2014, the Company issued a Master Convertible Promissory Note to Tonaquint, Inc, in the aggregate principal amount of $280,000.  Complete terms of the agreement are available in the Company’s 8-K that was filed with the SEC on May 8, 2014.

C_Accounting_Policies_Policies

C. Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Loss per common share	'
	Basic loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding. Diluted loss per common share assumes the exercise of stock options and warrants using the treasury stock method, if dilutive. Potentially dilutive shares were not included in the calculation of diluted shares, as their effect would have been antidilutive.
Product Amortization	'
	PuraMed® BioScience products consist primarily of the cost of trade secrets, formulas, scientific and manufacturing know-how, trade names, marketing material and other intellectual property and are amortized on a straight-line basis over an estimated useful life of seven years.
Trademark Amortization	'
	PuraMed® BioScience trademarks consist of the legal costs associated with registering our LipiGesic® and PuraMed® BioScience trademarks. As these trademarks have been approved, they are being amortized on a straight-line basis over an estimated useful life of ten years.
Fair Value Measurements	'
	Fair Value Measurements
	Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:
	Level 1 Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.
	Level 2 Other inputs that are observable directly or indirectly, such as quoted prices for similar assets and liabilities or market corroborated inputs.
	Level 3 Unobservable inputs that are used when little or no market data is available, which require the Company to develop its own assumptions about how market participants would value the assets or liabilities.
	Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosure each quarter. Assets and liabilities measured at fair value on a recurring basis as of March 31, 2014 and June 30, 2013 are summarized as follows:
			Fair Value as of March 31, 2014
			Level 1		Level 2			Level 3			Total
	Liabilities
	Derivative Liability - Warrants		$	-	$	-		$	2,284		$	2,284
	Derivative Liability – Convertible Debt			-		-			1,317,757			1,317,757
	Total		$	-	$	-		$	1,320,041		$	1,320,041
			Fair Value as of June 30, 2013
			Level 1		Level 2			Level 3			Total
	Liabilities
	Derivative Liability – Warrants		$	-	$	-		$	10,178		$	10,178
	Derivative Liability – Convertible Debt			-		-			400,270			400,270
	Total		$	-	$	-		$	410,448		$	410,448
	The following table presents the fair value reconciliation of Level 3 liabilities measured at fair value on a recurring basis during the nine months ended March 31, 2014:
			Fair Value Measurements Using Significant
			Unobservable Inputs (Level 3)
					Derivative
			Derivative		Liability -
			Liability -		Convertible
			Warrants		Debt			Total
	Beginning balance, July 1, 2013		$	10,178	$	400,270		$	410,448
	Issuance			-		789,757			789,757
	Retirements			-		(563,380	)		(563,380	)
	Loss (Gain) on derivative liability			(7,894)		691,110			683,216
	Ending balance, March 2014		$	2,284	$	1,317,757		$	1,320,041
	A binomial option-pricing model was used to value the derivative liability with the following inputs:
	●	Stock Price – The Stock Price was based on the closing price of the Company’s common stock on the valuation date. The valuation date can either be the date of issuance of the convertible debt note or the last day of a reporting period (the Valuation Date). Stock prices on the Valuation Dates ranged from $0.002 to $0.02.
	●	Variable Conversion Price – The variable conversion price was based on 50% to 60% of the average of the three lowest stock bid prices out of the last 10 trading days prior to the Valuation Date.
	●	Time to Maturity – The time to maturity was determined based on the length of time between the Valuation Date and the maturity of the debt.
	●	Risk Free Rate – The risk free rate was based on the US treasury note rate as of the Valuation Dates with term commensurate with the remaining term of the debt. The risk free rate used was .09%.
	●	Volatility – The volatility was based on the historical volatility of the Company, using a time period to calculate volatility commensurate with the Time to Maturity.
Recently Enacted Accounting Standards	'
	In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards (ASC) Update No. 2013-11 – Income Taxes. In April 2013, FASB issued ASC Update No. 2013-07 – Presentation of Financial Statements.  In February 2013, FASB issued ASC 2013-04,Liabilities.  In January 2013, FASB issued ASC Update No. 2013-01 – Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.  In October 2012, FASB issued ASC Update No. 2012-04 – Technical Corrections and Improvements.  In August 2012, FASB issued ASC Update No. 2012-03 – Technical Amendments and Corrections to SEC Sections:  Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 114, Technical Amendments Pursuant to SEC Release No. 33-9250, and Corrections Related to FASB Accounting Standards Update 2010-22.  In July 2012, FASB issued Update No. 2012-02 – Intangibles – Goodwill and Other (Topic 350), testing Indefinite-Lived Intangible Assets for Impairment.
	The Company has considered these and other recent accounting pronouncements of which the Company is aware, and the Company believes their adoption has not had, and will not have, any material impact on our financial position or results of operations.

C_Accounting_Policies_Tables

C. Accounting Policies (Tables)	9 Months Ended
	Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Assets and liabilities measured at fair value on a recurring basis	'
	Assets and liabilities measured at fair value on a recurring basis as of March 31, 2014 and June 30, 2013 are summarized as follows:
		Fair Value as of March 31, 2014
		Level 1		Level 2			Level 3			Total
	Liabilities
	Derivative Liability - Warrants	$	-	$	-		$	2,284		$	2,284
	Derivative Liability – Convertible Debt		-		-			1,317,757			1,317,757
	Total	$	-	$	-		$	1,320,041		$	1,320,041
		Fair Value as of June 30, 2013
		Level 1		Level 2			Level 3			Total
	Liabilities
	Derivative Liability - Warrants	$	-	$	-		$	10,178		$	10,178
	Derivative Liability – Convertible Debt		-		-			400,270			400,270
	Total	$	-	$	-		$	410,448		$	410,448
	The following table presents the fair value reconciliation of Level 3 liabilities measured at fair value on a recurring basis during the nine months ended  March 31, 2014:
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
				Derivative
		Derivative		Liability -
		Liability -		Convertible
		Warrants		Debt			Total
	Beginning balance, July 1, 2013	$	10,178	$	400,270		$	410,448
	Issuance		-		789,757			789,757
	Retirements		-		(563,380	)		(563,380	)
	Loss (Gain) on derivative liability		(7,894)		951,110			683,216
	Ending balance, March 2014	$	2,284	$	1,317,757		$	1,320,041

D_INVENTORY_Tables

D. INVENTORY (Tables)	9 Months Ended
	Mar. 31, 2014
Inventory Disclosure [Abstract]	'
Inventory	'
	Inventory consisted of the following as of March 31, 2014 and June 30, 2013:
		31-Mar-14			30-Jun-13
	Raw Materials	$	29,295		$	29,345
	Finished Goods		164,847			174,561
	Reserve for inventory obsolescence		(164,847	)		-
	Total Inventory	$	29,295		$	203,906

C_Accounting_Policies_Details

C. Accounting Policies (Details) (USD $)	Mar. 31, 2014	Jun. 30, 2013
Liabilities	'	'
Derivative Liability-Warrants	$2,284	$10,178
Derivative Liability-Convertible Debt	1,317,757	400,270
Total	1,320,041	410,448
Level 1	'	'
Liabilities	'	'
Derivative Liability-Warrants	'	'
Derivative Liability-Convertible Debt	'	'
Total	'	'
Level 2	'	'
Liabilities	'	'
Derivative Liability-Warrants	'	'
Derivative Liability-Convertible Debt	'	'
Total	'	'
Level 3	'	'
Liabilities	'	'
Derivative Liability-Warrants	2,284	10,178
Derivative Liability-Convertible Debt	1,317,757	400,270
Total	$1,320,041	$410,448

C_Accounting_Policies_Details_

C. Accounting Policies (Details 1) (USD $)	9 Months Ended
	Mar. 31, 2014
Beginning balance	$410,448
Issuance	789,757
Retirements	-563,380
Loss (Gain) on derivative liability	683,216
Ending balance	1,320,041
Derivative Liability - Warrants	'
Beginning balance	10,178
Issuance	'
Retirements	'
Loss (Gain) on derivative liability	-7,894
Ending balance	2,284
Derivative Liability - Convertible Debt	'
Beginning balance	400,270
Issuance	789,757
Retirements	-563,380
Loss (Gain) on derivative liability	951,110
Ending balance	$1,317,757

D_INVENTORY_Details

D. INVENTORY (Details) (USD $)	Mar. 31, 2014	Jun. 30, 2013
C.InventoryDetailsAbstract	'	'
Raw Materials	$29,295	$29,345
Finished Goods	164,847	174,561
Reserve for inventory obsolescence	-164,847	'
Total Inventory	$29,295	$203,906

E_Notes_Payable_Transactions_D

E. Notes Payable Transactions (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Notes to Financial Statements	'	'
Convertible Notes balance	$690,451	'
Convertible Notes discount	374,102	'
Issuance of convertible note payable amount	162,500	96,000
Interest rates on convertible notes, Minimum	8.00%	8.00%
Interest rates on convertible notes, Maximum	10.00%	22.00%
Shares redeemable	$115,000	'

F_Stockholders_Deficit_Details

F. Stockholders' Deficit (Details Narrative) (USD $)	9 Months Ended
	Mar. 31, 2014
Common shares in payment of principal and interest due, Shares	284,182,442
Common shares in payment of principal and interest due, Amount	$320,692
Common shares issued for cashless exercise of warrants	192,567,028
Minimum [Member]	'
Common shares in payment of principal and interest due Price per share	$0.00
Maximum [Member]	'
Common shares in payment of principal and interest due Price per share	$0.03

G_Subsequent_Events_Details_Na

G. Subsequent Events (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Interest rates on convertible notes, Minimum	8.00%	8.00%	'	'
Interest rates on convertible notes, Maximum	10.00%	22.00%	'	'
Common shares issued in payment of principal, value	'	'	$320,692	$187,713
Subsequent Event [Member]	'	'	'	'
Proceeds from convertible notes	'	'	80,500	'
Interest rates on convertible notes, Minimum	'	'	8.00%	'
Interest rates on convertible notes, Maximum	'	'	12.00%	'
Common shares issued in payment of principal, shares	'	'	52,164,526	'
Common shares issued in payment of principal, value	'	'	60,400	'
Equity issuance price per share	0.0082	'	$0.01	'
Common shares issued in payment for warrants	'	'	7,092,199	'
Common shares issued in payment for warrants, value	'	'	$172,500	'
Subsequent Event [Member] | Minimum [Member]	'	'	'	'
Equity issuance price per share	0.00082	'	$0.00	'
Subsequent Event [Member] | Maximum [Member]	'	'	'	'
Equity issuance price per share	0.001508	'	$0.00	'