QUARTERLY INFORMATION (UNAUDITED)

12 Months Ended

Sep. 30, 2011

Notes to Financial Statements

QUARTERLY INFORMATION (UNAUDITED)

The following quarterly data are derived from the Company’s consolidated statements of operations.

Financial Data

Fiscal 2011
	Three months			Three months			Three months			Three months
	ended			ended			ended			Ended			Year Ended
	December 31 2010			March 31, 2011			June 30, 2011			September 30, 2011			September 30, 2011
Revenue	$	662,818		$	43,815		$	77,403		$	172,118		$	956,154
Operating expenses		4,978,852			5,140,811			4,923,147			3,899,018			18,941,828
Non operating income (expenses)		11,477			5,305			(31,822	)		(143,777	)		(158,817	)
Other expenses		—			(12,000,000	)		—			—			(12,000,000	)
Gain/(loss) on derivative instruments		(1,946,395	)		3,062,087			1,763,311			1,553,145			4,432,148
Net loss		(6,250,952	)		(14,029,604	)		(3,114,255	)		(2,317,532	)		(25,712,343	)
Modification of warrants		—			(1,068,369	)		—			—			(1,068,369	)
Net loss available to
common shareholders	$	(6,250,952	)	$	(15,097,973	)	$	(3,114,255	)	$	(2,317,532,	)	$	(26,780,712	)
Net loss per share-basic	$	(0.03	)	$	(0.07	)	$	(0.01	)	$	(0.01	)	$	(0.13	)
Net loss per share-diluted	$	(0.03	)	$	(0.09	)	$	(0.02	)	$	(0.02	)	$	(0.15	)
Weighted average shares-basic		205,112,418			207,089,841			208,402,408			213,319,921			208,488,987
Weighted average shares-diluted		205,112,418			207,089,841			208,402,408			213,319,921			208,488,987

Fiscal 2010

	Three months Ended			Three months ended			Three months ended			Three months ended			Year Ended
	December 31, 2009			March 31, 2010			June 30, 2010			September 30, 2010			September 30, 2010
Revenue	$	30,000		$	30,600		$	30,900		$	61,800		$	153,300
Operating expenses		4,282,849			5,350,958			3,424,959			5,654,787			18,713,553
Non operating expenses (income)		(72,099	)		(56,167	)		(38,423	)		(33,221	)		(199,910	)
Gain/loss on derivative instruments		23,340,267			4,519,672			2,754,512			(1,770,679	)		28,843,772
Modification of warrants		—			(1,432,456	)		—			(100,000	)		(1,532,456	)
Net income (loss) available to
common shareholders	$	19,159,517		$	(2,176,975	)	$	(601,124	)	$	(7,430,445	)	$	8,950,973
Net loss per share-basic	$	0.10		$	(0.01	)	$	0.00		$	(0.04	)	$	0.04
Net loss per share-diluted	$	0.02		$	(0.03	)	$	(0.02	)	$	(0.04	)	$	(0.06	)
Weighted average shares-basic		194,959,814			204,173,750			204,592,051			204,757,898			202,102,859
Weighted average shares-diluted		256,198,162			204,173,750			204,592,051			204,757,898			202,102,859

The Company has experienced large swings in its quarterly gains and losses in 2011 and 2010. These swings are caused by the changes in the fair value of convertible debt and warrants each quarter. These changes in the fair value of these securities are recorded on the consolidated statements of operations. The $12 million other expense in 2011 was the cost for the settlement of the lawsuit.  See Note 11 for a discussion of the lawsuit.