HS3 TECHNOLOGIES INC.

CIK:0001297203|SEC Filings

Statement of Operations (USD $)	3 Months Ended		6 Months Ended
Statement of Operations (USD $)	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Revenue	$ 315,145	$ 26,816	$ 917,358	$ 54,945
Cost of goods sold	162,857	19,843	495,145	22,312
Gross profit	152,288	6,973	422,213	32,633
Operating Expenses:
Selling, general and administrative	173,950	132,104	355,488	194,858
Depreciation and amortization	5,044	8,767	10,064	18,651
Total operating expenses	178,994	140,871	365,552	213,509
Income (loss) from operations	(26,706)	(133,898)	56,661	(180,876)
Other income (expense):
Interest expense, net	(24,074)	(4,292)	(50,590)	(9,478)
Forgiveness of debt	0	44,902	0	44,902
Total other income (expense)	(24,074)	40,610	(50,590)	35,424
Net income/(loss)	$ (50,780)	$ (93,288)	$ 6,071	$ (145,452)
Net income/(loss) per share-basic and diluted	$ (0.001)	$ (0.001)	$ 0.000	$ (0.002)
Weighted average number of common shares outstanding	82,623,836	69,277,506	82,623,836	68,697,071

Statement of Cash Flows (USD $)	6 Months Ended
Statement of Cash Flows (USD $)	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net income (loss)	$ 6,071	$ (145,452)
Adjustments to reconcile net loss to net cash provided by (used in) operations:
Depreciation and amortization	10,064	18,651
Accretion of interest	0	2,689
Warrants, stock, and options issued for service	0	5,820
Changes in operating assets and liabilities:
Accounts and other receivables	194,417	1,177
Inventory	(1,697)	2,592
Accounts payable and accrued liabilities	(80,005)	49,254
Net cash (used in) operating activities	128,850	(65,269)
Cash flow from investing activities:
Additions to furniture, fixtures & equipment	(3,470)	(6,064)
Net cash (used in) investing activities	(3,470)	(6,064)
Cash flow from financing activities:
Sale of common stock	0	0
Proceeds (repayments) convertible notes payable	0	0
Proceeds (repayments) subordinated notes payable	(85,270)	75,000
Borrowing/repayments revolving credit agreement	0	80,000
Borrowings (repayments) long-term debt	(21,000)	(103,713)
Other accrued liabilities converted to equity	0	0
Net cash flow provided by (used in)financing activities	(106,270)	51,287
Increase (decrease) in cash and cash equivalents	19,110	(20,046)
Cash and cash equivalents, beginning of period	13,341	34,915
Cash and cash equivalents, end of period	32,451	14,869
Supplemental cash flow information:
Interest paid	51,840	6,189
Income taxes paid	0	0
Non cash financing activities:
Stock issued for services	$ 0	$ 5,820

Statement of Financial Position (USD $)	Dec. 31, 2011	Jun. 30, 2011
Current Assets:
Cash and cash equivalents	$ 32,451	$ 13,341
Trade accounts receivable, net of bad debt reserves of $35,000 and $25,000, respectively	154,994	351,248
Other receivables	1,838	0
Inventory	64,121	62,424
Total Current Assets	253,404	427,013
Fixed assets, net of accumulated depreciation of $149,214 and $139,150, respectively	19,021	25,615
Other assets, net	0	0
Total Assets	272,425	452,628
Current Liabilities:
Trade accounts payable	24,882	103,058
Other accrued liabilities	23,293	25,121
Subordinated notes payable	626,000	711,270
Note payable, current portion	150,000	150,000
Long-term debt, current portion	0	21,000
Other liabilities	0	0
Total Liabilities	824,175	1,010,449
Stockholders' Equity (Deficit):
Preferred stock, $0.0001 par value, 2,500,000 shares authorized, none issued or outstanding	0	0
Common Stock, $0.001 par value, 200,000,000 authorized, issued and outstanding 82,623,836 at December 31, 2011 and June 30, 2011 , respectively	82,624	82,624
Additional paid-in capital	6,117,246	6,117,246
Accumulated deficit	(6,751,620)	(6,757,691)
Total Stockholders' Equity	(551,750)	(557,821)
Total Liabilities and Stockholders' Equity	$ 272,425	$ 452,628