Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 3 Months Ended
Dec. 31, 2011
Dec. 31, 2010
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (2,731,300) $ (97,700)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 4,000 2,700
Amortization of discount on bridge notes issued 1,379,100 600,300
Stock-based compensation 335,500 434,200
Issuance of warrants for financing services 5,700 82,700
Gain on derivative liability valuation (232,100) (4,217,500)
Non-cash interest expense 138,900 2,021,200
Changes in operating assets and liabilities    
Accounts receivable 20,200 (2,200)
Prepaids and other current assets 23,200 39,500
Accounts payable and accrued liabilities 54,100 (21,400)
Deferred compensation 1,100 (20,300)
Security deposit on new lease 4,600 0
Net cash used in operating activities (997,000) (1,178,500)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Acquisition of furniture & equipment (1,900) (15,900)
Acquisition of intellectual property (21,200) 0
Net cash used in investing activities (23,100) (15,900)
CASH FLOWS FROM FINANCING ACTIVITIES    
Repayment of note 0 (24,700)
Repayment of leases (1,500) (1,000)
New equipment lease 0 15,900
Net proceeds from bridge notes 1,040,400 1,840,000
Proceeds from exercise of warrants 900 0
Net cash provided by financing activities 1,039,800 1,830,200
Net increase in cash 19,700 635,800
Cash, beginning of period 93,400 62,000
Cash, end of period 113,100 697,800
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Interest 0 1,000
Income taxes 900 1,300
Fair value of intellectual property 21,200 0
Non-cash financing activities:    
Offering costs $ 101,100 $ 0