Quarterly report pursuant to sections 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 6 Months Ended
Mar. 31, 2013
Mar. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (4,275,526) $ (450,631)
Depreciation and amortization 128,639 136,670
Non-cash interest expense associated with convertible debt and warrants 3,291,466   
Stock based compensation expense 32,008 86,894
Non-cash issuance of common stock for services 110,001   
Provision for uncollectible accounts (5,551) 33,443
Loss on disposal of property and equipment 1,407   
Changes in assets and liabilities:    
Accounts receivable 104,491 116,459
Prepaid expenses and other current assets (90,901) 26,942
Deposits and other assets 13,242 (2,200)
Accounts payable (420,023) 147,644
Accrued liabilities (1,856) (89,537)
Net cash provided by (used in) operating activities (1,112,603) 5,684
CASH FLOWS FROM INVESTING ACTIVITIES:    
Expenditures for intangible assets (117,500) (8,169)
Purchases of property and equipment (28,407)   
Net cash used in investing activities (145,907) (8,169)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Principal repayments on capital lease obligations    (31,662)
Issuance of common stock for cash    2,150,000
Proceeds from/(repayments on) issuance of convertible debt and warrants 1,250,000 (250,000)
Net cash provided by financing activities 1,250,000 1,868,338
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (8,510) 1,865,853
CASH AND CASH EQUIVALENTS, beginning of period 1,305,785 244,470
CASH AND CASH EQUIVALENTS, end of period 1,297,275 2,110,323
Noncash financing and investing activities:    
Conversion of notes payable of $1,250,000 and cash accrued interest of $1,000 into 846,343 shares of common stock 1,251,000   
Accrued and unpaid dividends 958 958
Interest paid    $ 85,314