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 $)
 6 Months Ended
Mar. 31, 2013
Mar. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (2,504,500) $ (11,125,700)
Adjustments to reconcile net loss to net cash used in operating activities:    
Net loss from discontinued operations 13,300 228,300
Depreciation and amortization 7,100 9,100
Amortization of discount on bridge notes issued 637,200 2,402,800
Stock-based compensation 693,500 670,400
Issuance of warrants for financing services 30,500 56,800
Gain on derivative liability valuation 97,600 5,501,700
Extinguishment of debt (556,300) 0
Non-cash interest expense 391,900 305,200
Changes in operating assets and liabilities    
Accounts receivable (6,000) 14,900
Prepaids and other current assets (65,900) (35,400)
Accounts payable and accrued liabilities (34,400) 364,400
Deferred compensation 163,000 (29,900)
Deferred compensation exchange for common stock (178,300) 0
Security deposit on new lease 0 4,600
Net cash used in operating activities (1,311,300) (1,632,800)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Acquisition of furniture & equipment 0 (4,300)
Disposal of fixed assets 1,400 0
Acquisition of Brain Clinics 0 (21,200)
Net cash provided by (used in) investing activities 1,400 (25,500)
CASH FLOWS FROM FINANCING ACTIVITIES    
Repayment of capital leases (3,100) (2,900)
Net proceeds from bridge notes 1,368,300 1,995,300
Proceeds from exercise of warrants 0 900
Proceeds from Purchase of Common Stock 664,500 0
Net cash provided by (used) financing activities 2,029,700 1,993,300
DISCONTINUED OPERATIONS    
Net cash used in operations activities (10,300) (251,900)
Net cash used in discontinued operations (10,300) (251,900)
NET INCREASE IN CASH 709,500 83,100
Cash, beginning of period 7,700 73,600
Cash, end of period 717,200 156,700
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Interest 1,200 4,400
Income taxes 800 900
Fair value of intellectual property 0 20,500
Non-cash financing activities:    
Placement agent warrants issued 30,500 0
Offering costs $ 2,500 $ 221,000