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 ($)
 9 Months Ended
Jun. 30, 2016
Jun. 30, 2015
OPERATING ACTIVITIES:    
Net loss $ (4,948,400) $ (2,107,600)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 3,900 6,000
Gain on derivative liability valuation (1,035,900) (185,200)
Stock based compensation 112,400 204,700
Grant of common stock 128,000
Loss on extinguishment of debt 2,337,400
Financing expenses 1,225,200 190,900
Legal Settlement Accrual 275,000
Changes in operating assets and liabilities:    
Accounts receivable 8,600 (2,600)
Prepaids and other (68,500) (40,700)
Accounts payable and accrued liabilities (109,200) (28,100)
Security deposits (9,500)
Deferred compensation 51,100 250,000
Net cash used in operating activities (2,029,900) (1,712,600)
INVESTING ACTIVITIES:    
Purchase of fixed assets (2,800)
Disposal of equipment 1,500
Intangible assets (65,700)
Net cash used in investing activities (68,500) 1,500
FINANCING ACTIVITIES:    
Repayment of a capital lease (2,900) (2,700)
Net proceeds from issuance of secured convertible debt 2,100,000 615,000
Net cash provided by (used in) financing activities 2,097,100 612,300
NET INCREASE (DECREASE) IN CASH (1,300) (1,098,800)
CASH- BEGINNING OF THE QUARTER 432,100 1,240,600
CASH- END OF THE QUARTER 430,800 141,800
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest 2,400 2,700
Finance Fees 20,000
Income taxes $ 300 $ 4,700