Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows (Unaudited)

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Statements of Cash Flows (Unaudited) (USD $)
 3 Months Ended 75 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
OPERATING ACTIVITIES      
Net loss $ (2,021,925) $ (2,218,352) $ (14,576,061)
Adjustments to reconcile net loss to net cash used by operating activities:      
Discontinued operations       (678,413)
Common stock issued for services       599,989
Fair value of warrants issued for services 700,393 167,996 2,219,775
Fair value of employee stock options 146,303 52,495 1,978,133
Gain (loss) on extinguishment of debt       (89,592)
Gain on sale of asset       (70,500)
(Gain) loss on derivative liability    1,403,123 1,801,871
Depreciation 2,921 2,364 31,587
Amortization of patent costs 19,608 19,607 273,743
Changes in operating assets and liabilities      
Prepaid expenses and deposits 25,533 7,563 118,941
Other receivables and other current assets       85,025
Accounts payable and accrued expenses (165,455) (95,914) 108,393
Net Cash Used in Operating Activities (1,292,622) (661,148) (8,197,109)
INVESTING ACTIVITIES      
Proceeds from sale of asset       70,500
Purchase of equipment       (58,421)
Purchase of patents and other intellectual property       (300,000)
Discontinued operations       418,000
Net Cash Provided by (Used in) Investing Activities       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       2,150,000
Proceeds from warrants exercised for cash 200,002 111,891 9,359,317
Proceeds from related party payables       125,453
Repayments of related party payables       (125,453)
Proceeds from short-term notes payable       64,408
Repayments of short-term notes payable (14,051) (14,562) (202,746)
Repayment of convertible debentures       (490,000)
Net Cash Provided by Financing Activities 185,951 97,329 11,885,979
NET CHANGE IN CASH (1,106,671) (563,819) 3,818,949
CASH AT BEGINNING OF PERIOD 5,122,895 2,632,413 197,275
CASH AT END OF PERIOD 4,016,224 2,068,594 4,016,224
CASH PAID FOR:      
Interest 513 560 76,445
Income Taxes         
NON CASH FINANCING ACTIVITIES:      
Common stock and warrants issued in advance of services       5,320,432
Financing of insurance premiums through issuance of short term notes       138,338
Conversion of preferred for common stock 50 14 558
Noncash exercise of options    9 11
Transfer of investment for dividends payable       186,000
Purchase of patents for debenture       500,000
Conversion of debenture       10,000
Common stock issued to settle accounts payable 50,000    50,000
Options issued to settle accounts payable      $ 3,991