Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v2.4.0.8
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 12 Months Ended
Sep. 30, 2013
Sep. 30, 2012
OPERATING ACTIVITIES:    
Net loss $ (10,907,400) $ (3,406,800)
Adjustments to reconcile net loss to net cash used in operating activities:    
Net loss from discontinued operations 19,400 490,500
Depreciation and amortization 13,000 18,800
Amortization of discount on bridge notes issued 662,300 3,544,200
Loss (gain) on derivative liability valuation 97,600 (6,950,300)
Stock based compensation 1,257,300 1,350,800
Gain on extinguishment of debt (556,300) 0
Inducement to convert debt 5,792,500 0
Issuance of warrants for financing services 30,400 56,800
Non-cash interest expense 622,200 664,300
Changes in operating assets and liabilities:    
Accounts receivable (14,200) 6,800
Prepaids and other (20,000) 28,000
Accounts payable and accrued liabilities (63,400) 1,386,300
Accrued compensation and others 0 469,000
Security deposit on new lease 0 4,600
Deferred compensation 30,400 0
Net cash used in operating activities (3,036,200) (2,337,000)
INVESTING ACTIVITIES:    
Acquisition of furniture & equipment 0 (4,300)
Disposal of equipment 1,400 0
Acquisition of Brain Clinics 0 (21,200)
Net cash provided by (used in) investing activities 1,400 (25,500)
FINANCING ACTIVITIES:    
Repayment of a capital lease (4,700) (6,100)
Net proceeds from purchase of common stock 2,958,800 900
Net proceeds from bridge notes 1,368,300 2,595,300
Net cash provided by financing activities 4,322,400 2,590,100
Net cash provided by continuing operations 1,287,600 227,600
DISCONTINUED OPERATIONS    
Net cash used in discontinued operations (21,700) (293,500)
NET INCREASE (DECREASE) IN CASH 1,265,900 (65,900)
CASH- BEGINNING OF YEAR 7,700 73,600
CASH- END OF YEAR 1,273,600 7,700
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest 3,600 9,300
Income taxes 800 1,900
Non-cash financing activities:    
Offering costs 2,500 784,100
Shares issued for officer salaries payable 7,900 0
Shares issued on conversion of promissory notes and accrued interest 11,273,100 0
Shares issued for accounts payable $ 502,100 $ 0