Annual report pursuant to Section 13 and 15(d)

Statements of Cash Flows

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Statements of Cash Flows (USD $)
 12 Months Ended 72 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
OPERATING ACTIVITIES      
Net loss $ (5,652,488) $ (1,454,884) $ (12,554,136)
Adjustments to reconcile net loss to net cash used by operating activities:      
Discontinued operations       (678,413)
Common stock issued for services 270,167 309,322 599,989
Fair value of warrants issued for services 335,869 632,089 1,519,382
Fair value of employee stock options 746,262 406,267 1,831,830
Gain on extinguishment of debt    (21,005) (89,592)
Gain on sale of asset       (70,500)
(Gain) loss on derivative liability 1,117,642 (1,812,224) 1,801,871
Depreciation 13,356 9,456 28,666
Amortization of patent costs 77,789 78,273 254,135
Changes in operating assets and liabilities      
Prepaid expenses and deposits 236,492 (105,893) 93,408
Other receivables and other current assets    184,358 85,025
Accounts payable and accrued expenses 165,224 20,412 273,848
Net Cash Used in Operating Activities (2,689,687) (1,753,829) (6,904,487)
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 5,251,755 2,902,560 9,159,315
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 (71,586) (52,701) (188,695)
Repayment of convertible debentures       (490,000)
Net Cash Provided by Financing Activities 5,180,169 3,949,859 11,700,028
NET CHANGE IN CASH 2,490,482 2,162,627 4,925,620
CASH AT BEGINNING OF PERIOD 2,632,413 469,786 197,275
CASH AT END OF PERIOD 5,122,895 2,632,413 5,122,895
CASH PAID FOR:      
Interest 4,192 1,817 75,932
Income Taxes         
NON CASH FINANCING ACTIVITIES:      
Reclassification of derivative liability to permanent equity 1,886,338 3,454,094 5,320,432
Financing of insurance premiums through issuance of short term notes 63,600 74,738 138,338
Conversion of preferred for common stock 508    508
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