Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED BALANCE SHEETS

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CONSOLIDATED BALANCE SHEETS (USD $)
Sep. 30, 2012
Sep. 30, 2011
ASSETS    
Cash $ 7,700 $ 73,600
Accounts receivable (net of allowance for doubtful accounts of $14,300 and $12,200 as of September 30, 2012 and 2011 respectively) 12,400 19,200
Prepaids and other 43,700 71,700
Other offering costs 0 103,000
Assets of discontinued operation 17,900 61,200
Total current assets 81,700 328,700
Furniture & equipment, net 20,000 32,700
Other assets 23,600 8,600
TOTAL ASSETS 125,300 370,000
LIABILITIES AND STOCKHOLDERS' EQUITY    
Accounts payable (including $260,000 and $151,500 to related parties as of September 30, 2012 and 2011 respectively) 3,086,700 1,740,600
Accrued liabilities 20,600 73,600
Accrued compensation (including $499,100 and $227,800 to related parties as of September 30, 2012 and 2011 respectively) 732,700 312,300
Accrued consulting fees (including $81,000 and $45,000 to related parties as of September 30, 2012 and 2011 respectively) 104,000 65,000
Accrued interest 1,048,800 384,500
Promissory Note 200,000 0
Derivative liability 520,700 4,801,200
Notes Payable, Related Parties 7,187,600  
Current portion of long-term debt 5,200 6,100
Liabilities of discontinued operation (including $89,000 and $14,500 to related parties as of September 30, 2012 and 2011 respectively) 288,700 135,000
Total current liabilities 13,195,000 11,781,300
LONG-TERM LIABILITIES    
Capital lease 5,000 10,200
Total long-term liabilities 5,000 10,200
TOTAL LIABILITIES 13,200,000 11,791,500
COMMITMENTS AND CONTINGENCIES 0 0
STOCKHOLDERS' EQUITY:    
Common stock, $0.001 par value; authorized 100,000,000 shares; 1,914,175 and 1,871,352 shares issued and outstanding as of September 30, 2012 and 2011 1,900 1,900
Additional paid-in capital 32,566,700 30,813,100
Accumulated deficit (45,643,300) (42,236,500)
Total stockholders' equity (13,074,700) (11,421,500)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 125,300 370,000
Secured Convertible Promissory Notes Payable [Member]
    
LIABILITIES AND STOCKHOLDERS' EQUITY    
Notes Payable, Related Parties 3,023,900 2,868,200
Secured Convertible Subordinated Promissory Notes Payable [Member]
    
LIABILITIES AND STOCKHOLDERS' EQUITY    
Notes Payable, Related Parties 4,083,300 1,394,800
Unsecured Convertible Promissory Notes Payable [Member]
    
LIABILITIES AND STOCKHOLDERS' EQUITY    
Notes Payable, Related Parties 52,500 0
Unperfected Senior Convertible Promissory Notes Payable [Member]
    
LIABILITIES AND STOCKHOLDERS' EQUITY    
Notes Payable, Related Parties $ 27,900 $ 0