Quarterly report pursuant to Section 13 or 15(d)

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
OPERATING ACTIVITIES:    
Net loss $ (3,594,000) $ (1,570,900)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 2,700 4,400
Loss on derivative liability valuation $ (798,200) (67,300)
Valuation of warrants - investor relations 21,600
Stock based compensation $ 70,900 $ 162,200
Grant of common stock 6,900
Loss on extinguishment of debt 2,337,400
Financing expenses 738,600 $ 72,700
Changes in operating assets and liabilities:    
Accounts receivable 5,000 3,900
Prepaids and other (66,300) (56,500)
Accounts payable and accrued liabilities (81,600) $ 12,300
Security deposits (9,400)
Deferred compensation 48,100 $ 73,900
Net cash used in operating activities (1,339,900) $ (1,343,700)
INVESTING ACTIVITIES:    
Purchase of fixed assets (1,000)
Intangible assets (9,000)
Net cash used in investing activities (10,000)
FINANCING ACTIVITIES:    
Repayment of a capital lease (2,000) $ (1,900)
Net proceeds from issuance of secured convertible debt 1,360,000 415,000
Net cash provided by (used in) financing activities 1,358,000 413,100
NET INCREASE (DECREASE) IN CASH 8,100 (930,600)
CASH- BEGINNING OF THE QUARTER 432,100 1,240,600
CASH- END OF THE QUARTER 440,200 310,000
Cash paid during the period for:    
Interest 1,300 1,500
Income taxes $ 300 $ 4,000