Annual report pursuant to section 13 and 15(d)

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2013	Sep. 30, 2012
Net (loss)	$ (2,864,429)	$ (1,249,212)
Adjustments to reconcile net (loss) to net cash (used in) operating activities:
Depreciation	2,342	9,858
Gain (loss) on derivative financial instrument	(18,055)	47,256
Amortization of notes payable discount	51,618	71,122
Amortization of deferred loan costs	1,331	2,631
Common stock and warrants issued for services	1,801,859	71,500
Gain (loss) on debt conversion, net	(472,127)	18,286
Loss on share exchange	1,273,732
Change in allowance for doubtful accounts		2,200
Change in reserve for inventory obsolescence		5,000
(Increase) decrease in assets:
Accounts receivable	(19,936)	(4,668)
Inventory	7,186	10,931
Prepaid expenses and other current assets		(176,057)
Increase (decrease) in liabilities:
Accounts payable	23,624	678,392
Accrued expenses	67,965	305,329
Customer deposits	8,428
Deferred revenue	22,675	17,456
Net cash (used in) operating activities	(113,787)	(189,976)
Cash Flows From Financing Activities
Proceeds from issuance of preferred stock	35,000
Payments of convertible notes payable and related liabiilties	(125,000)
Proceeds from notes payable - stockholders	196,555	190,000
Payments of notes payable - stockholders	(20,000)	(792)
Net cash provided by financing activities	86,555	189,208
Net decrease in cash	(27,232)	(768)
Cash - Beginning of year	38,420	39,188
Cash - End of year	11,188	38,420
Supplemental cash flow information:
Cash paid for interest	32,806	21,872
Non-cash financing transactions:
Shares issued for services from consultants, shares		16,333
Fair value of shares issued for services	668,251	12,000
Shares issued for conversion of accrued expenses, shares		34,569
Shares issued for conversion of accrued expense		261,146
Warrants issued for services, shares		1,095
Shares issued for conversion of debt, shares		34,010
Amount of convertible debt converted to stock	623,215	249,146
Reclassification of derivative liability to additional paid in capital	61,168
Shares issued in lieu of cash dividends, shares		7,117
Shares issued in lieu of cash dividends		106,745
Shares issued for debt conversion		143,967
Debt Conversion on Notes Payable and Accrued Interest [Member]
Non-cash financing transactions:
Amount of convertible debt converted to stock	143,703
Debt Conversion on Notes Payable [Member]
Non-cash financing transactions:
Amount of convertible debt converted to stock	7,700	82,800
Debt Conversion on Derivative Liability [Member]
Non-cash financing transactions:
Amount of convertible debt converted to stock	$ 27,363	$ 61,168
Series B [Member]
Non-cash financing transactions:
Shares issued for conversion of accrued expenses, shares	0	1
Series A Preferred Stock [Member]
Non-cash financing transactions:
Shares cancelled in exchange for Preferred Shares, shares	0