Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 9 Months Ended
Jun. 30, 2015
Jun. 30, 2014
OPERATING ACTIVITIES:    
Net loss $ (10,251,045) $ (2,925,913)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 500,699 338,752
Non-cash interest expense associated with convertible debt and warrants 2,194,013 289,493
Non-cash interest expense associated with loan fees 2,004,202 0
Non-cash change in fair value of derivative liability (83,580) 58,185
Stock based compensation expense 621,311 138,595
Repricing of stock option exercise price 54,677 0
Non-cash issuance of common stock for services 2,008,559 29,653
Gain on disposal of property and equipment 0 (207)
Provision for uncollectible accounts 24,819 (32,667)
Reserve for obsolete inventory 255,110 0
Loss on disposal of fixed assets 48,534 0
Impairment of intangible assets 445,884 0
Changes in assets and liabilities:    
Accounts receivable (85,049) (1,377,771)
Prepaid expenses and other current assets 245,198 (586,891)
Inventory 1,485,196 (510,569)
Deposits and other assets (5,082) (6,890)
Accounts payable (971,874) 150,638
Accrued liabilities 13,094 403,824
Net cash used in operating activities (1,495,334) (4,031,768)
INVESTING ACTIVITIES:    
Acquisition of businesses, net of cash acquired 0 (324,116)
Expenditures for intangible assets (52,985) (11,669)
Proceeds from the sale of property and equipment 0 1,400
Purchases of property and equipment (43,453) (46,427)
Net cash used in investing activities (96,438) (380,812)
FINANCING ACTIVITIES:    
Issuance of common stock for cash, net of issuance costs 538,441 13,187,715
Payments on notes payable (556,047) 0
Payments on preferred stock dividends 0 (16,780)
Proceeds from issuance of convertible debt 100,000 823,595
Net cash provided by financing activities 82,394 13,994,530
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,509,378) 9,581,950
CASH AND CASH EQUIVALENTS, beginning of period 8,114,682 761,458
CASH AND CASH EQUIVALENTS, end of period 6,605,304 10,343,408
Supplemental cash flow disclosures:    
Interest paid 24,312 754
Income taxes paid 0 0
Noncash financing and investing activities:    
Recognition of contingent beneficial conversion feature 100,000 500,000
Conversion of notes payable and accrued interest into common stock 635,756 0
Accrued and unpaid dividends $ 1,442 $ 1,438