16. QUARTERLY INFORMATION (UNAUDITED)

12 Months Ended

Sep. 30, 2012

Quarterly Financial Information Disclosure [Abstract]

16. QUARTERLY INFORMATION (UNAUDITED)

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

Financial Data

Fiscal 2012
	Three months			Three months			Three months			Three months
	ended			ended			ended			Ended			Year Ended
	December 31,  2011			March 31, 2012			June 30, 2012			September 30, 2012			September 30, 2012
Revenue	$	5,024		$	106,543		$	35,000		$	108,043		$	254,610
Operating expenses		4,448,300			4,368,900			4,248,098			4,432,152			17,497,450
Non operating income (expenses)		(94,407	)		(27,275	)		(12,737	)		(11,734	)		(146,153	)
Gain/(loss) on derivative instruments		956,470			(4,204,327	)		3,390,389			1,769,151			1,911,683
Net loss		(3,581,213	)		(8,493,959	)		(835,446	)		(2,566,692	)		(15,477,310	)
Issuance of additional shares  due to reset provision		(250,000	)		-			-			-			(250,000	)
Modification of warrants		(325,620	)		-			-			-			(325,620	)
Inducement warrants		-			(1,593,000	)		-			-			(1,593,000	)
Net loss available to common shareholders	$	(4,156,833	)	$	(10,086,959	)	$	(835,446	)	$	(2,566,692	)	$	(17,645,930	)
Net loss per share-basic	$	(0.02	)	$	(0.04	)	$	(0.00	)	$	(0.01	)	$	(0.07	)
Net loss per share-diluted	$	(0.02	)	$	(0.04	)	$	(0.00	)	$	(0.01	)	$	(0.07	)
Weighted average shares-basic and diluted		228,568,435			247,369,587			258,467,582			272,974,949			251,836,540

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 and diluted		205,112,418			207,089,841			208,402,408			213,319,921			208,488,987

The Company has experienced large swings in its quarterly gains and losses in 2012 and 2011.  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 reported in 2011 was the cost for the settlement of the lawsuit.  See Note 13 for a discussion of the lawsuit.