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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 12 Months Ended
--- | --- | ---
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016
Cash Flows from Operating Activities: |  |  |  |
Net loss | $ (28,785) | $ (293,408) | $ (1,006,457) | $ (1,034,765)
Adjustments to reconcile net loss to net cash used in operating activities - |  |  |  |
Depreciation and amortization | 8,750 | 7,621 | 33,660 | 25,856
Gain on sale of assets | 0 | (315) | (1,515) | (32,707)
Stock-based compensation expense | 26,057 | 60,901 | 201,612 | 241,388
Non-cash consulting expense | (7,425) | 8,550 | 33,900 | 63,000
Non-cash gain on settlement of liabilities by issuing common stock |  |  | 0 | (22,050)
Changes in operating assets and liabilities - |  |  |  |
Accounts receivable, net | (145,413) | 184,327 | 281,832 | (162,338)
Inventories | 88,162 | 140,979 | 78,004 | (60,195)
Prepaid expenses | 4,591 | 6,297 | 32,144 | (22,947)
Accounts payable | 5,381 | 60,085 | (457,603) | 261,461
Customer advances | (57,642) | 11,025 | 180,137 | (118,800)
Accrued expenses | (25,322) | (28,274) | (43,148) | (14,201)
Net cash used in operating activities | (131,646) | 157,788 | (667,434) | (876,298)
Cash Flows from Investing Activities: |  |  |  |
Proceeds from sale of assets | 0 | 315 | 1,515 | 32,707
Additional patent costs | 0 | (340) | (7,212) | (4,230)
Purchases of fixed assets | 0 | (3,500) | (27,719) | (4,372)
Net cash provided by (used in) investing activities | 0 | (3,525) | (33,416) | 24,105
Cash Flows from Financing Activities: |  |  |  |
Payment of capital lease obligation | (2,046) | (1,916) | (7,857) | (4,160)
Proceeds from private placement of common stock | 210,001 | 0 | 780,000 | 700,000
Private placement expenses incurred and paid |  |  | (2,947) | (34,639)
Net cash provided by financing activities | 207,955 | (1,916) | 769,196 | 661,201
Net (decrease) increase in cash and cash equivalents | 76,309 | 152,347 | 68,346 | (190,992)
Cash and cash equivalents, beginning of year | 118,405 | 50,059 | 50,059 | 241,051
Cash and cash equivalents, end of year | 194,714 | 202,406 | 118,405 | 50,059
Supplemental Disclosure of Cash Flow Informatin: |  |  |  |
Cash paid during the year for income taxes |  |  | 912 | 912
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: |  |  |  |
Issuance of common stock to consultants |  |  | 0 | 48,300
Private placement expenses incurred but not yet paid |  |  | 21,000 | 37,781
Issuance of common stock in settlement of accounts payable | 40,000 | 0 | 20,000 | 0
Capital expenditures funded by capital lease borrowings | $ 2,963 | $ 0 | $ 0 | $ 43,972

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