iMac 10.10.3 crashed completely after Software Update - Wouldn't boot

Hi,

My iMac Desktop crashed completely and would not startup after software update. I accidentally clicked on the software update and now the desktop is completely dead. It does boot into "Safe Boot" mode upon click the shift button, in the Safe Boot, the keyboard and mouse is hangs and can't type anything in the username/password. Lastly, I tried command line but can find Crash logs in the CrashReporter as pasted below.

System Software Overview:

System Version: OS X 10.10.3 (14D131)

Kernel Version: Darwin 14.3.0

Boot Volume: Macintosh HD

Boot Mode: Safe

Computer Name: X2

User Name: System Administrator (root)

Secure Virtual Memory: Enabled

Time since boot: 11 minutes

Diagnostic Report:

X2:DiagnosticReports root# cat Kernel_2015-04-13-183008_X2.panic

Mon Apr 13 18:29:58 2015

*** Panic Report ***

panic(cpu 6 caller 0xffffff80007bfe45): "Process 1 exec of /sbin/launchd failed, errno 2"@/SourceCache/xnu/xnu-2782.1.97/bsd/kern/kern_exec.c:4060

Backtrace (CPU 6), Frame : Return Address

0xffffff83a4b43df0 : 0xffffff800033a811

0xffffff83a4b43e70 : 0xffffff80007bfe45

0xffffff83a4b43ef0 : 0xffffff8000799368

0xffffff83a4b43f10 : 0xffffff80007dc2b1

0xffffff83a4b43f50 : 0xffffff8000336e46

0xffffff83a4b43f80 : 0xffffff800041eeae

0xffffff83a4b43fa0 : 0xffffff800043a40f

BSD process name corresponding to current thread: init

Boot args: -x

Mac OS version:

Not yet set

Kernel version:

Darwin Kernel Version 14.0.0: Fri Sep 19 00:26:44 PDT 2014; root:xnu-2782.1.97~2/RELEASE_X86_64

Kernel UUID: 89E10306-BC78-3A3B-955C-7C4922577E61

__HIB text base: 0xffffff8000100000

System model name: iMac12,2 (Mac-942B59F58194171B)

System uptime in nanoseconds: 1563758911

last loaded kext at 1443586415: com.apple.driver.AppleIRController 327.5 (addr 0xffffff7f81dbc000, size 28672)

loaded kexts:

com.apple.driver.AppleIRController 327.5

com.apple.BootCache 35

com.apple.AppleFSCompression.AppleFSCompressionTypeZlib 1.0.0d1

com.apple.driver.AppleFileSystemDriver 3.0.1

com.apple.AppleFSCompression.AppleFSCompressionTypeDataless 1.0.0d1

com.apple.driver.XsanFilter 404

com.apple.iokit.IOAHCIBlockStorage 2.6.5

com.apple.driver.AppleUSBHub 705.4.1

com.apple.iokit.AppleBCM5701Ethernet 10.1.2b3

com.apple.driver.AirPort.Atheros40 700.74.5

com.apple.driver.AppleFWOHCI 5.5.2

com.apple.driver.AppleAHCIPort 3.0.7

com.apple.driver.AppleUSBEHCI 705.4.14

com.apple.driver.AppleUSBUHCI 656.4.1

com.apple.driver.AppleRTC 2.0

com.apple.driver.AppleACPIButtons 3.1

com.apple.driver.AppleHPET 1.8

com.apple.driver.AppleSMBIOS 2.1

com.apple.driver.AppleACPIEC 3.1

com.apple.driver.AppleAPIC 1.7

com.apple.driver.AppleIntelCPUPowerManagementClient 218.0.0

com.apple.driver.AppleIntelCPUPowerManagementDriver 218.0.0

com.apple.security.quarantine 3

com.apple.security.TMSafetyNet 8

com.apple.nke.applicationfirewall 161

com.apple.driver.AppleIntelCPUPowerManagement 218.0.0

com.apple.kext.MojoKDP 1.0.4

com.apple.iokit.IOUSBHIDDriver 705.4.0

com.apple.driver.AppleUSBMergeNub 705.4.0

com.apple.driver.AppleUSBComposite 705.4.9

com.apple.driver.AppleThunderboltDPOutAdapter 4.0.6

com.apple.driver.AppleThunderboltDPInAdapter 4.0.6

com.apple.driver.AppleThunderboltDPAdapterFamily 4.0.6

com.apple.driver.AppleThunderboltPCIDownAdapter 2.0.2

com.apple.driver.AppleThunderboltNHI 3.1.7

com.apple.iokit.IOThunderboltFamily 4.2.1

com.apple.iokit.IOEthernetAVBController 1.0.3b3

com.apple.driver.mDNSOffloadUserClient 1.0.1b8

com.apple.iokit.IO80211Family 700.52

com.apple.iokit.IONetworkingFamily 3.2

com.apple.iokit.IOFireWireFamily 4.5.6

com.apple.iokit.IOAHCIFamily 2.7.0

com.apple.iokit.IOUSBFamily 705.4.14

com.apple.driver.AppleEFINVRAM 2.0

com.apple.driver.AppleEFIRuntime 2.0

com.apple.iokit.IOHIDFamily 2.0.0

com.apple.iokit.IOSMBusFamily 1.1

com.apple.security.sandbox 300.0

com.apple.kext.AppleMatch 1.0.0d1

com.apple.driver.AppleKeyStore 2

com.apple.driver.AppleMobileFileIntegrity 1.0.5

com.apple.driver.DiskImages 389.1

com.apple.iokit.IOStorageFamily 2.0

com.apple.iokit.IOBluetoothFamily 4.3.0f10

com.apple.driver.AppleFDEKeyStore 28.30

com.apple.iokit.IOReportFamily 31

com.apple.driver.AppleCredentialManager 1.0

com.apple.driver.AppleACPIPlatform 3.1

com.apple.iokit.IOPCIFamily 2.9

com.apple.iokit.IOACPIFamily 1.4

com.apple.kec.pthread 1

com.apple.kec.corecrypto 1.0