Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
OPERATING ACTIVITIES:    
Net loss $ (5,940,900) $ (3,379,400)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 7,200 7,600
Gain on derivative liability valuation 34,600 (162,800)
Stock based compensation 758,400 241,700
Loss on extinguishment of debt (572,300) 630,000
Financing expenses 2,717,300 275,300
Note issued for litigation settlement 50,000
Changes in operating assets and liabilities:    
Accounts receivable 6,700 (2,500)
Prepaids and other 25,700 (4,900)
Accounts payable and accrued liabilities (182,900) (64,000)
Amort of grant of common stock 76,300
Security deposits (9,500)
Deferred compensation 51,000 302,600
Net cash used in operating activities (2,978,400) (2,156,400)
INVESTING ACTIVITIES:    
Purchase of fixed assets (4,000)
Disposal of equipment 1,500
Intangible assets (78,300)
Net cash used in investing activities (82,300) 1,500
FINANCING ACTIVITIES:    
Repayment of a capital lease (3,200) (3,600)
Net proceeds from issuance of secured convertible debt 2,950,000 1,350,000
Net cash provided by (used in) financing activities 2,946,800 1,346,400
NET DECREASE IN CASH (113,900) (808,500)
CASH- BEGINNING OF YEAR 432,100 1,240,600
CASH- END OF YEAR 318,200 432,100
Cash paid during the period for:    
Interest 4,200 3,700
Finance Fees 20,000
Income taxes 2,000 4,900
Non-cash financing activity    
Conversion of convertible notes to common stock 6,266,800
Conversion of Brandt litigation settlement convertible note to common stock $ 50,200