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 78 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Mar. 31, 2014
OPERATING ACTIVITIES      
Net loss $ (3,990,176) $ (2,510,610) $ (16,544,312)
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 949,243 184,724 2,468,625
Fair value of employee stock options 853,177 104,109 2,685,007
Gain (loss) on extinguishment of debt     (89,592)
Gain on sale of asset     (70,500)
(Gain) loss on derivative liability   1,117,642 1,801,871
Depreciation 5,842 4,728 34,508
Amortization of patent costs 38,789 38,788 292,924
Changes in operating assets and liabilities      
Prepaid expenses and deposits 2,449 9,404 95,857
Other receivables and other current assets     85,025
Accounts payable and accrued expenses 305,192 13,831 579,040
Net Cash Used in Operating Activities (1,835,484) (1,037,384) (8,739,971)
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 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 200,752 188,573 9,360,067
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) (18,394) (202,746)
Repayment of convertible debentures     (490,000)
Net Cash Provided by Financing Activities 186,701 170,179 11,886,729
NET CHANGE IN CASH (1,648,783) (867,205) 3,276,837
CASH AT BEGINNING OF PERIOD 5,122,895 2,632,413 197,275
CASH AT END OF PERIOD 3,474,112 1,765,208 3,474,112
CASH PAID FOR:      
Interest 513 559 72,253
NON CASH FINANCING ACTIVITIES:      
Common stock and warrants issued in advance of services   1,886,338 5,320,432
Financing of insurance premiums through issuance of short term notes 194,000   332,338
Conversion of preferred for common stock 50 14 558
Noncash exercise of options   33 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