Quarterly report pursuant to sections 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 3 Months Ended
Dec. 31, 2012
Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,060,509) $ (191,638)
Depreciation and amortization 63,567 69,279
Non-cash interest expense associated with convertible debt and warrants 750,754   
Stock based compensation expense    47,894
Non-cash issuance of common stock for services 30,000   
Provision for uncollectible accounts 4,016 14,181
Loss on disposal of property and equipment 1,407   
Changes in assets and liabilities:    
Accounts receivable 56,478 73,398
Prepaid expenses and other current assets (297,307) 40,300
Deposits and other assets 13,542 2,000
Accounts payable 73,050 20,030
Accrued liabilities 103,630 (26,541)
Net cash provided by (used in) operating activities (261,372) 48,903
CASH FLOWS FROM INVESTING ACTIVITIES:    
Expenditures for intangible assets (109,500)   
Purchases of property and equipment (15,813)   
Net cash used in investing activities (125,313)   
CASH FLOWS FROM FINANCING ACTIVITIES:    
Principal repayments on capital lease obligations    (15,768)
Issuance of common stock for cash    2,000,000
Proceeds from issuance of convertible debt and warrants 250,000 (100,000)
Net cash provided by financing activities 250,000 1,884,232
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (136,685) 1,933,135
CASH AND CASH EQUIVALENTS, beginning of period 1,305,785 244,470
CASH AND CASH EQUIVALENTS, end of period 1,169,100 2,177,605
Noncash financing and investing activities:    
Conversion of notes payable of $250,000 and cash accrued interest of $333 into 123,829 shares of common stock 250,333   
Accrued and unpaid dividends $ 479 $ 479