Quarterly report pursuant to sections 13 or 15(d)

Condensed Consolidated Statements of Cash Flows

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Condensed Consolidated Statements of Cash Flows (USD $)
3 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Net (Loss) $ (1,957,784) $ (309,763)
Adjustments to reconcile net (loss) to net cash (used) in operating activities:    
Depreciation 1,548 2,488
Change in fair value of derivative liability 104,854 (3,215)
Amortization of notes payable discount 17,911 3,597
Amortization of deferred loan costs 1,038   
Common and preferred stock issued for compensation and services 949,238   
Gain on conversions of liabilities to common and preferred stock (367,046)   
Loss on exchange of stock and stock equivalents 919,642   
(Increase) decrease in assets:    
Accounts receivable 1,963   
Inventory 1,395 2,834
Prepaid expenses and other current assets 269,675 (33,000)
Increase (decrease) in liabilities:    
Accounts payable (51,976) 88,146
Accrued expenses 34,924 97,522
Deferred revenue (9,109) 42,216
Net Cash Used in Operating Activities (83,727) (109,175)
Cash Flows From Financing Activities:    
Principal payments on notes payable    (547)
Proceeds from issuance of preferred stock 35,000   
Proceeds from notes payable    60,000
Proceeds from notes payable - stockholder 14,400 45,000
Net Cash Provided by Financing Activities 49,400 104,453
Net Decrease in Cash (34,327) (4,722)
Cash - Beginning of Period 38,420 39,188
Cash - End of Period 4,093 34,466
SUPPLEMENTAL CASH FLOW INFORMATION:    
Cash paid for interest    3,666
NONCASH FINANCING ACTIVITIES:    
Shares issued for conversion of accounts payable 499,325  
Shares issued for conversion of notes payable 143,703  
Shares issued for conversion of notes payable and derivative liability 22,221  
Shares issued for conversion of accrued expenses   $ 7,342