Supplemental Disclosures of Cash Flow Information

6 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Supplemental Disclosures of Cash Flow Information

Supplemental Disclosures of Cash Flow Information and Non-Cash Transactions

During the six months ended December 31, 2011, there were no non-cash transactions.

During the six months ended December 31, 2010, we issued the following unregistered shares of our common stock for the reasons and values identified below.

	Shares		Value
Issued to outside board of directors for accrued director fees		133,334	$	76,000
Issued to management for accrued salaries		212,963	$	121,389
Issued to consultants for accrued consulting fees		51,919	$	29,594

The values we recorded for the settlement of accrued payables and director fees payable were at the “last sale” market price for free-trading shares of our common stock on the date our Board of Directors approved the issuances, which was $0.57 per share. The difference between the market price and the amount of liabilities settled was booked to additional paid in capital, since all parties were affiliates of the Company.

On September 2, 2010, we announced the sale on August 31, 2010, the effective date of the sale, of our operating subsidiary, Commission River. As part of the consideration of the purchase price the parties agreed to the cancelation of 489,984 common shares of BHCC, owned by Mr. Edwards and Mr. Oborn, which was agreed by both parties to have a value of $105,000.