Quarterly report pursuant to sections 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 6 Months Ended
Mar. 31, 2014
Mar. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,384,019) $ (4,275,526)
Depreciation and amortization 211,237 128,639
Non-cash interest expense associated with convertible debt and warrants 113,971 3,291,466
Change in fair value of derivative liability 34,434 0
Stock based compensation expense 105,860 32,008
Issuance of common stock for services 69,108 110,001
(Gain)/loss on disposal of property and equipment (207) 1,407
Provision for uncollectible accounts (32,667) (5,551)
Changes in assets and liabilities:    
Accounts receivable (163,994) 104,491
Prepaid expenses and other current assets (464,699) (90,901)
Inventory 4,627 0
Deposits and other assets 2,700 13,242
Accounts payable (127,676) (420,023)
Accrued liabilities 128,183 (1,856)
Net cash used in operating activities (1,503,142) (1,112,603)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Acquisition of business (200,000) 0
Expenditures for intangible assets (3,563) (117,500)
Proceeds from the sale of fixed assets 1,400 0
Purchases of property and equipment (6,167) (28,407)
Net cash used in investing activities (208,330) (145,907)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Issuance of common stock for cash, net of issuance costs 9,696,013 0
Proceeds from issuance of convertible debt and warrants 823,595 1,250,000
Net cash provided by financing activities 10,519,608 1,250,000
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 8,808,136 (8,510)
CASH AND CASH EQUIVALENTS, beginning of period 761,458 1,305,785
CASH AND CASH EQUIVALENTS, end of period 9,569,594 1,297,275
Noncash financing and investing activities:    
Recognition of contingent beneficial conversion feature 500,000 0
Conversion of notes payable and accrued interest into common stock 0 1,251,000
Accrued and unpaid dividends 959 958
Interest paid $ 754 $ 0