Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows (Unaudited)

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Statements of Cash Flows (Unaudited) (USD $)
 9 Months Ended 69 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
OPERATING ACTIVITIES      
Net loss $ (3,849,041) $ (1,522,333) $ (10,750,689)
Adjustments to reconcile net loss to net cash used by operating activities:      
Discontinued operations       (678,413)
Common stock issued for services 214,500    544,322
Fair value of warrants issued for services 260,942 173,712 1,444,455
Fair value of employee stock options 444,162 353,772 1,529,730
Amortization of common stock and warrants issued in advance of services    177,718   
(Gain) loss on extinguishment of debt    (21,005) (89,592)
Gain on sale of asset       (70,500)
(Gain) loss on derivative liability 1,117,642 (496,899) 1,801,871
Depreciation 7,092 7,092 22,402
Amortization of patent costs 58,395 58,666 234,741
Changes in operating assets and liabilities      
Prepaid expenses and deposits 69,837 (161,143) (73,247)
Other receivables and other current assets    184,358 85,025
Accounts payable and accrued expenses (88,782) 11,990 19,842
Net Cash Used in Operating Activities (1,765,253) (1,234,072) (5,980,053)
INVESTING ACTIVITIES      
Proceeds from sale of asset       70,500
Purchase of equipment    (33,403) (58,421)
Purchase of patents and other intellectual property       (300,000)
Discontinued operations       418,000
Net Cash Provided by (Used in) Investing Activities    (33,403) 130,079
FINANCING ACTIVITIES      
Proceeds from the sale of preferred stock and warrants       1,005,000
Proceeds from the sale of common stock and warrants    1,100,000 2,150,000
Proceeds from warrants exercised for cash 5,224,672 1,098,610 9,132,232
Proceeds from related party payables       125,453
Repayments of related party payables       (125,453)
Proceeds from short-term notes payable    74,738 64,408
Repayments of short-term notes payable (43,237) (30,383) (160,346)
Repayment of convertible debentures       (490,000)
Net Cash Provided by Financing Activities 5,181,435 2,242,965 11,701,294
NET CHANGE IN CASH 3,416,182 975,490 5,851,320
CASH AT BEGINNING OF PERIOD 2,632,413 469,786 197,275
CASH AT END OF PERIOD 6,048,595 1,445,276 6,048,595
CASH PAID FOR:      
Interest 3,116 906 74,856
Income Taxes         
NON CASH FINANCING ACTIVITIES:      
Common stock and warrants issued in advance of services    442,397   
Reclassification of derivative liability to permanent equity 1,886,338 3,454,094 5,320,432
Stock subscription receivable    1,815,842   
Financing of insurance premiums through issuance of short term notes 63,600    138,338
Conversion of preferred for common stock 169    169
Noncash exercise of options 11    11
Transfer of investment for dividends payable       186,000
Purchase of patents for debenture       500,000
Conversion of debenture       10,000
Options issued to settle accounts payable       $ 3,991