Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows (Unaudited)

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Statements of Cash Flows (Unaudited) (USD $)
 9 Months Ended 57 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
OPERATING ACTIVITIES      
Net loss $ (1,522,333) $ (3,743,236) $ (6,969,097)
Adjustments to reconcile net loss to net cash used by operating activities:      
Discontinued operations       (678,413)
Common stock issued for services   10,000  
Fair value of warrants issued for services 173,712 24,350 725,136
Fair value of employee stock options 353,772 35,925 1,033,073
Amortization of common stock and warrants issued in advance of services 177,718    177,718
(Gain) loss on extinguishment of debt (21,005)    (89,594)
Gain on sale of asset    (70,500) (70,500)
(Gain) loss on derivative liability     1,999,556
Depreciation 7,092 3,752 12,946
Changes in operating assets and liabilities      
Prepaid expenses and deposits (161,143) 3,035 (198,334)
Other receivables and other current assets 184,358 150,147 85,025
Accounts payable and accrued expenses 11,990 (13,170) 100,202
Net Cash Used in Operating Activities (1,234,072) (595,775) (3,695,043)
INVESTING ACTIVITIES      
Proceeds from sale of asset    70,500 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) 70,500 130,079
FINANCING ACTIVITIES      
Proceeds from preferred stock and warrants       1,005,000
Proceeds from the sale of common stock and warrants 1,100,000 1,050,000 2,150,000
Proceeds of warrants exercised for cash 1,098,610    2,103,610
Proceeds from related party payables       125,453
Repayments of related party payables       (125,453)
Proceeds from short-term notes payable 74,738    139,146
Repayments of short-term notes payable (30,383) (17,486) (94,791)
Repayment of convertible debentures    (51,115) (490,000)
Net Cash Provided by Financing Activities 2,242,965 981,399 4,812,965
NET CHANGE IN CASH 975,490 456,124 1,248,001
CASH AT BEGINNING OF PERIOD 469,786 422,414 197,275
CASH AT END OF PERIOD 1,445,276 878,538 1,445,276
CASH PAID FOR:      
Interest 906 2,374 70,829
Income Taxes         
NON CASH FINANCING ACTIVITIES:      
Common stock and warrants issued in advance of services 442,397    442,397
Reclassification of derivative liability to permanent equity     3,454,094
Stock subscription receivable 1,815,842    1,815,842
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