Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

v2.4.0.6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 9 Months Ended
Jun. 30, 2012
Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (7,510,300) $ (6,170,400)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 14,000 8,700
Amortization of discount on bridge notes issued 2,991,900 2,897,700
Stock-based compensation 1,010,700 1,225,400
Issuance of warrants for financing services 56,800 183,500
Gain on derivative liability valuation (918,000) (4,753,100)
Non-cash interest expense 480,900 3,171,800
Changes in operating assets and liabilities    
Accounts receivable 21,000 (1,100)
Prepaids and other current assets (5,300) 17,800
Accounts payable and accrued liabilities 1,270,400 158,800
Deferred compensation 344,100 24,100
Security deposit 4,600 100
Net cash used in operating activities (2,239,200) (3,236,700)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Acquisition of furniture & equipment (4,300) (19,700)
Acquisition of intellectual property (21,200) 0
Net cash used in operating activities (25,500) (19,700)
CASH FLOWS FROM FINANCING ACTIVITIES    
Repayment of note 0 (24,700)
Repayment of leases (4,500) (3,800)
New equipment lease 0 15,900
Net proceeds from notes 1,995,300 4,400,000
Prepaid offering costs 0 (282,300)
Proceeds from exercise of warrants 900 0
Net cash provided by financing activities 2,191,700 4,105,100
Net increase (decrease) in cash (73,000) 848,700
Cash, beginning of period 93,400 62,000
Cash, end of period 20,400 910,700
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Interest 6,800 1,800
Income taxes 2,000 1,300
Fair value of intellectual property 20,000 0
Non-cash financing activities:    
Shares issued for accounts payable 0 44,000
Promissory Notes [Member]
    
CASH FLOWS FROM FINANCING ACTIVITIES    
Net proceeds from notes 200,000 0
Bridge Loan [Member]
    
CASH FLOWS FROM FINANCING ACTIVITIES    
Net proceeds from notes $ 1,995,300 $ 4,400,000