Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows (Unaudited)

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Statements of Cash Flows (Unaudited) (USD $)
 6 Months Ended 66 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
OPERATING ACTIVITIES      
Net loss $ (2,510,610) $ (1,061,580) $ (9,412,258)
Adjustments to reconcile net loss to net cash used by operating activities:      
Discontinued operations       (678,413)
Common stock issued for services       329,822
Fair value of warrants issued for services 184,724 111,370 1,368,237
Fair value of employee stock options 104,109 304,948 1,189,677
Amortization of common stock and warrants issued in advance of services    51,432   
(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 (322,032) 1,801,871
Depreciation 4,728 4,728 20,038
Amortization of patent costs 38,788 39,272 215,134
Changes in operating assets and liabilities      
Prepaid expenses and deposits 9,404 (134,417) (133,680)
Other receivables and other current assets    184,358 85,025
Accounts payable and accrued expenses 13,831 33,584 122,455
Net Cash Used in Operating Activities (1,037,384) (809,342) (5,252,184)
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 188,573    4,096,133
Proceeds from related party payables       125,453
Repayments of related party payables       (125,453)
Proceeds from short-term notes payable    48,300 64,408
Repayments of short-term notes payable (18,394)    (135,503)
Repayment of convertible debentures       (490,000)
Net Cash Provided by Financing Activities 170,179 1,148,300 6,690,038
NET CHANGE IN CASH (867,205) 305,555 1,567,933
CASH AT BEGINNING OF PERIOD 2,632,413 469,786 197,275
CASH AT END OF PERIOD 1,765,208 775,341 1,765,208
Interest 559    72,299
Income Taxes         
Reclassification of derivative liability to permanent equity 1,886,338    5,340,432
Financing of insurance premiums through issuance of short term notes       74,738
Conversion of preferred for common stock 14    14
Noncash exercise of options 33    33
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