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, 2012
Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (973,300) $ (2,731,300)
Adjustments to reconcile net loss to net cash used in operating activities:    
Net loss from discontinued operations 12,200 144,100
Depreciation and amortization 4,000 4,000
Amortization of discount on bridge notes issued 423,800 1,379,100
Stock-based compensation 355,500 335,500
Issuance of warrants for financing services 0 5,700
Gain on derivative liability valuation 97,600 (232,100)
Extinguishment of debt (466,300)  
Non-cash interest expense 205,500 138,900
Changes in operating assets and liabilities    
Accounts receivable (5,200) 14,100
Prepaids and other current assets 25,900 29,100
Accounts payable and accrued liabilities (136,300) 93,600
Deferred compensation 80,200 (37,600)
Deferred compensation exchange for common stock (178,300) 0
Security deposit on new lease 0 4,600
Net cash used in operating activities (554,700) (852,300)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Acquisition of furniture & equipment 0 (1,900)
Disposal of fixed assets 1,400 0
Acquisition of Brain Clinics 0 (21,200)
Net cash used in investing activities 1,400 (23,100)
CASH FLOWS FROM FINANCING ACTIVITIES    
Repayment of a capital lease (1,600) (1,500)
Net proceeds from bridge notes 1,368,300 1,040,400
Proceeds from exercise of warrants 0 900
Net cash provided by (used) financing activities 1,366,700 1,039,800
DISCONTINUED OPERATIONS    
Net cash used in operations activities 0 (139,600)
Net Cash used in discontinued operations 0 (139,600)
NET INCREASE IN CASH 813,400 24,800
Cash, beginning of period 7,700 73,600
Cash, end of period 821,100 98,400
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Interest 800 3,400
Income taxes 800 900
Fair value of intellectual property 0 21,200
Shares issued for salaries 7,900 0
Non-cash financing activities:    
Offering costs $ 0 $ 101,100