Annual report pursuant to section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,575,208) $ (5,502,248)
Depreciation and amortization 259,975 563,826
Non-cash interest expense associated with convertible debt and warrants 489,594 0
Non-cash stock compensation expenes 16,942 38,231
Non-cash issuance of common stock for services 124,766 15,333
Amortization of deferred stock compensation 0 17,885
Provision for uncollectible accounts (81,026) 336,929
Non-cash impairment of goodwill and intangibles 0 367,588
Loss on disposal of property and equipment 36,040 12,936
Changes in assets and liabilities:    
Accounts receivable 292,902 (84,550)
Prepaid expenses and other current assets 60,709 105,798
Deposits and other assets (4,700) 18,287
Accounts payable 416,455 246,468
Accrued liabilities (7,465) (457,511)
Net cash provided by (used in) operating activities 28,984 (4,321,028)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Redemption of certificates of deposits 0 101,293
Expenditures for intangible assets (482,413) 0
Purchases of property and equipment (48,264) (1,551)
Net cash provided by/(used in) investing activities (530,677) 99,742
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from notes payable 0 1,000,000
Payments on notes payable (1,000,000) 0
Principal repayments on capital lease obligations (36,992) (61,618)
Issuance of common stock for cash 2,350,000 300,000
Proceeds from issuance of convertible debt and warrants 250,000 0
Net cash provided by financing activities 1,563,008 1,238,382
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 1,061,315 (2,982,904)
CASH AND CASH EQUIVALENTS, beginning of period 244,470 3,227,374
CASH AND CASH EQUIVALENTS, end of period 1,305,785 244,470
Noncash financing and investing activities:    
Conversion of notes payable and accrued interest into common stock 258,944 0
Issuance of common stock in connection with the acquisition of LiveOpenly 420,000 0
Accrued and unpaid dividends 1,918 1,918
Cash paid for income taxes    1,600
Cash paid for interest $ 97,895 $ 57,266