Annual report pursuant to section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2012	Sep. 30, 2011
Net (loss)	$ (1,249,212)	$ (1,204,036)
Adjustments to reconcile net (loss) to net cash (used in) operating activities:
Depreciation	9,858	13,069
Common stock and warrants issued for services	71,500	124,654
Change in fair value of derivative liability	47,256
Loss on redemption of debt	18,286
Change in allowance for doubtful accounts	2,200
Change in reserve for inventory obsolescence	5,000
Amortization of deferred loan costs	2,631
Amortization of notes payable discount	71,122	937
(Increase) decrease in assets:
Accounts receivable	(4,668)	5,019
Inventory	10,931	5,078
Prepaid expenses and other current assets	(176,057)	23,751
Increase (decrease) in liabilities:
Accounts payable	678,392	89,809
Accrued expenses	305,329	139,147
Deferred revenue	17,456	32,093
Net cash (used in) operating activities	(189,976)	(770,479)
Cash Flows From Financing Activities
Payments of notes payable	(792)	(2,681)
Proceeds from notes payable	190,000	140,000
Proceeds from issuance of preferred stock		650,000
Net cash provided by financing activities	189,208	787,319
Net increase (decrease) in cash	(768)	16,840
Cash - Beginning of year	39,188	22,348
Cash - End of year	38,420	39,188
Supplemental cash flow information:
Cash paid for interest	21,872	17,170
Non-cash financing transactions:
Shares issued for services from consultants, shares	16,333	2,860
Shares issued for services from consultants	71,500	53,654
Shares issued for conversion of accrued expenses, shares	34,569	2,932
Shares issued for conversion of accrued expense	261,146	50,800
Warrants issued for services, shares	1,095	4,067
Warrants issued for services		71,000
Shares issued for conversion of debt, shares	34,010
Amount of convertible date converted to stock	82,800
Reclassification of derivative liability to additional paid in capital	61,168
Shares issued in lieu of cash dividends, shares	7,117	791
Shares issued in lieu of cash dividends	106,745	23,724
Shares cancelled in exchange for Preferred Shares, shares		5,800
Shares issued for debt conversion	143,967
Series B [Member]
Non-cash financing transactions:
Shares issued for conversion of accrued expenses, shares	1
Consultants [Member]
Non-cash financing transactions:
Shares issued for conversion of accrued expense	249,146
Warrants issued for services	$ 12,000
Series A Preferred Stock [Member]
Non-cash financing transactions:
Shares cancelled in exchange for Preferred Shares, shares		174,000