Annual report pursuant to section 13 and 15(d)

Consolidated Statements of Cash Flows

v2.3.0.11
Consolidated Statements of Cash Flows (USD $)
 12 Months Ended
Sep. 30, 2011
Sep. 30, 2010
CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract]    
Net (loss) $ (1,204,036) $ (1,087,016)
Adjustments to reconcile net (loss) to net cash (used in) operating activities:    
Depreciation 13,069 25,429
Loss on disposal of equipment   1,610
Loss on impairment of equipment   39,863
Common stock issued for services 53,657 182,252
Warrants issued for services 71,000  
Amortization of notes payable discount 937 37,513
(Increase) decrease in assets:    
Accounts receivable 5,019 (3,879)
Inventory 5,078 (15,256)
Prepaid expenses and other current assets 23,751 (29,689)
Increase (decrease) in liabilities:    
Accounts payable 89,809 18,065
Accrued expenses 139,147 73,054
Deferred revenue 32,090 (19,251)
Net cash (used in) operating activities (770,479) (777,305)
Cash Flows From Investing Activities:    
Purchases of equipment   (4,004)
Disposal of equipment in connection with settlement   6,663
Net cash provided by investing activities   2,659
Cash Flows From Financing Activities    
Principal payments on notes payable (2,681) (1,279)
Proceeds from notes payable 140,000 40,000
Proceeds from issuance of common stock   500,000
Proceeds from issuance of preferred stock 650,000 250,000
Net cash provided by financing activities 787,319 788,721
Net increase in cash 16,840 14,075
Cash - Beginning of year 22,348 8,273
Cash - End of year 39,188 22,348
Supplemental cash flow information:    
Cash paid for interest 17,170 15,079
Non-cash financing transactions:    
Shares issued for non-employee services, shares 8,581,446 15,356,263
Shares issued for non-employee services 53,654 181,000
Shares issued in lieu of cash dividends, shares 2,372,409  
Shares issued in lieu of cash dividends 23,724  
Shares cancelled in exchange for Preferred Shares, common shares cancelled 17,400,000  
Shares cancelled in exchange for Preferred Shares, Series A preferred shares issued 174,000  
Shares issued for conversion of accrued expenses, shares 8,795,556 15,192,679
Shares issued for conversion of accrued expenses 50,800 267,392
Warrants issued in exchange for services, warrants 12,202,222  
Warrants issued in exchange for services 71,000  
Shares issued for note conversion, shares   1,818,832
Shares issued for note conversion   $ 33,104