XML 63 R5.htm IDEA: XBRL DOCUMENT v2.4.0.8
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) (USD $)
9 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Cash flows from operating activities:    
Net loss $ (13,968,001) $ (5,383,432)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 105,105 300,419
Fair value of vested options issued to officers, directors and employees 1,334,993 1,564,311
Change in fair value of warrant liability 6,145,229  
Amortization of capitalized financing costs   85,975
Amortization of debt discount attributable to convertible debentures   541,120
Fair value change from employee option modification 408,605  
Fair value of vested warrants issued for service 28,256 58,238
Common stock issued in settlement of interest   507,939
Bad debt expense 70,000  
Change in operating assets and liabilities:    
Accounts receivable (360,661) (234,180)
Prepaid expenses and deposits (76,510) (44,247)
Accounts payable and accrued liabilities 616,067 (389,151)
Deferred revenue   25,000
Net cash used in operating activities (5,696,917) (2,968,008)
Cash flows from investing activities:    
Purchase of assets under RedWeb asset purchase agreement (584,080)  
Purchase of property and equipment (213,494) (65,792)
Net cash used in investing activities (797,574) (65,792)
Cash flows from financing activities:    
Net proceeds from sale of common stock 2,000,000 1,542,600
Proceeds from sale of Series A preferred stock 5,500,000  
Proceeds from exercise of warrants 150,000  
Proceeds from exercise of options 1,500  
Purchase and cancellation of previously issued warrants (50,000)  
Net cash provided by financing activities 7,601,500 1,542,600
Net increase (decrease) in cash and cash equivalents 1,107,009 (1,491,200)
Cash and cash equivalents at beginning of period 724,782 2,747,294
Cash and cash equivalents at end of period 1,831,791 1,256,094
Supplemental Disclosures of Cash Flow Information:    
Cash paid during period for interest      
Cash paid during period for taxes      
Non-cash investing and financing activities:    
Common stock issued in exchange for previously incurred debt   4,022,000
Property, plant and equipment acquired, included in accounts payable $ 325,402