Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED BALANCE SHEETS

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
Dec. 31, 2011
Sep. 30, 2011
ASSETS    
Cash $ 113,100 $ 93,400
Accounts receivable (net of allowance for doubtful accounts of $20,600 and $19,900 as of December 31 and September 30, 2011 respectively) 34,200 54,400
Prepaids and other receivables 48,900 72,100
Deferred offering costs 204,100 103,000
Total current assets 400,300 322,900
Furniture & equipment 30,500 32,700
Other assets 31,000 14,400
TOTAL ASSETS 461,800 370,000
LIABILITIES AND STOCKHOLDERS' EQUITY    
Accounts payable (including $169,400 and $156,000 to related parties as of December 31 and September 30, 2011 respectively) 1,976,400 1,778,900
Accrued liabilities 145,200 196,700
Accrued compensation (including $200,800 and $189,200 to related parties as of December 31 and September 30, 2011 respectively) 287,000 285,900
Accrued consulting fees (including $54,000 and $45,000 to related parties as of December 31 and September 30, 2011 respectively) 74,000 65,000
Accrued interest 523,400 384,500
Derivative liability 6,105,300 4,801,200
Secured convertible promissory notes-related party (net of discounts $0 and $155,700 as of December 31 and September 30, 2011 respectively) 3,023,900 2,868,200
Subordinated secured convertible promissory notes-related party (net of discounts $1,451,700 and $1,105,200 as of December 31 and September 30, 2011 respectively) 2,128,200 1,394,800
Current portion of long-term debt 6,200 6,100
Total current liabilities 14,269,600 11,781,300
LONG-TERM LIABILITIES    
Capital lease 8,600 10,200
Total long-term liabilities 8,600 10,200
TOTAL LIABILITIES 14,278,200 11,791,500
COMMITMENTS AND CONTINGENCIES      
STOCKHOLDERS' EQUITY(DEFICIT):    
Common stock, $0.001 par value; authorized 750,000,000 shares; 56,218,431 and 56,133,770 shares issued and outstanding as of December 31, and September 30, 2011 respectively 56,200 56,100
Additional paid-in capital 31,095,200 30,758,900
Accumulated deficit (44,967,800) (42,236,500)
Total stockholders' equity (13,816,400) (11,421,500)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 461,800 $ 370,000