Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows (Unaudited)

 v2.3.0.11
Statements of Cash Flows (Unaudited) (USD $)
 9 Months Ended 45 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Jun. 30, 2011
OPERATING ACTIVITIES      
Net loss $ (3,743,236) $ (497,161) $ (4,088,481)
Adjustments to reconcile net loss to net cash used by operating activities      
Discontinued operations     (678,413)
Common stock issued for services 10,000   20,500
Fair value of warrants issued for services 24,350 296,128 452,604
Fair value of employee stock options 35,925   667,326
Gain on extinguishment of debt   (49,559) (19,410)
Gain on sale of asset (70,500)   (70,500)
(Gain) loss on derivative liability 2,945,196 (140,969) 1,464,610
Depreciation 3,752   4,602
Amortization of patent costs 58,726   78,319
Changes in operating assets and liabilities      
Prepaid expenses and deposits 3,035 (27,211) (31,434)
Security deposits and other receivables 150,147   85,025
Accounts payable and accrued expenses (13,170) 52,601 63,033
Net Cash (Used in) Operating Activities (595,775) (366,171) (2,052,219)
INVESTING ACTIVITIES      
Proceeds from sale of asset 70,500   70,500
Purchase of equipment     (25,018)
Purchase of patents and other intellectual property     (300,000)
Discontinued operations     418,000
Net Cash Provided by Investing Activities 70,500   163,482
FINANCING ACTIVITIES      
Proceeds from preferred stock and warrants     1,005,000
Proceeds from common stock, derivative liability and warrants 1,050,000   1,050,000
Proceeds of warrants exercised for cash   1,005,000 1,005,000
Proceeds from related party payables     125,453
Repayments of related party payables     (125,453)
Proceeds from short-term notes payable   24,500 64,408
Repayments of short-term notes payable (17,486) (7,976) (64,408)
Repayment of convertible debentures (51,115) (401,156) (490,000)
Net Cash Provided by Financing Activities 981,399 620,368 2,570,000
NET INCREASE IN CASH 456,124 254,197 681,263
CASH AT BEGINNING OF PERIOD 422,414 345,604 197,275
CASH AT END OF PERIOD 878,538 599,801 878,538
CASH PAID FOR:      
Interest 2,374 30,963 48,294
Income Taxes      
NON CASH FINANCING ACTIVITIES:      
Transfer of investment for dividends payable     186,000
Purchase of patents for debenture     500,000
Conversion of debenture   10,000 10,000
Options issued to settle accounts payable     $ 3,991