Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.6.0.2
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:    
Net loss $ (9,122,560) $ (11,527,669)
Adjustments to reconcile net loss to net cash used in operating activities:    
Loss on extinguishment of debt 3,163,240 927,784
Stock-based compensation expense 2,819,298 4,864,864
Amortization of debt discounts 743,940  
Stock and warrants issued for interest expense 728,732 647,679
Stock and warrants issued for services 486,749 897,891
Loss on induced conversion of debt 379,132  
Depreciation and amortization 51,376 290,700
Loss on disposal of property and equipment 2,780 42,336
Impairment of goodwill   825,894
Gain on lease termination   (91,692)
Gain on liability settlements (297,067) (260,830)
Gain on derivatives liability (3,405,035) (128,942)
Changes in operating assets and liabilities:    
Change in accounts receivable 379,519 698,794
Change in inventory 537,735 906,849
Change in prepaid expenses and other (586,965) 20,400
Change in accounts payable 66,322 892,170
Change in accrued liabilities 1,311,216 215,054
Net cash used in operating activities (2,741,588) (778,718)
Cash flows from investing activities:    
Proceeds from sale of property and equipment 600 938
Proceeds from sale of discontinued operations   478,738
Purchases of property and equipment (5,004) (15,289)
Net cash used in investing activities (4,404) 464,387
Cash flows from financing activities:    
Proceeds from issuance of notes payable, net 6,544,287 1,262,490
Proceeds from issuance of related-party notes payable, net 250,000  
Proceeds from issuance of warrants in connection with notes payable 2,967  
Principal payments on related-party notes payable (13,943) (15,000)
Principal payments on notes payable (4,042,018) (957,750)
Net cash provided by financing activities 2,741,293 289,740
Net decrease in cash (4,699) (24,591)
Cash, beginning of the year 172,436 197,027
Cash, end of the year 167,737 172,436
Supplemental Cash Flow Information:    
Cash paid for interest 300,154 24,883
Non-Cash Investing and Financing Activities:    
Deemed dividend on the redemption of preferred stock and accrued dividends for notes payable, common stock and exchange of warrants 6,484,236  
Conversion of accounts payable and accrued liabilities to notes payable 2,555,189 100,000
Dividends on preferred stock and related interest 731,660 994,983
Issuance of common stock and common stock warrants for loan origination, amendment and extension fees 391,054 89,397
Assignment of related-party notes payable to an unrelated third party 263,082  
Accrual of a liability to issue shares of common stock for loan origination fees 240,000  
Issuance of common stock for consulting services 235,100 645,000
Cancellation and reissuance of shares of common stock 121,250  
Conversion of related-party accounts payable and accrued liabilities to related-party notes payable 84,404 1,839,214
Issuance of common stock for related-party loan origination fees 70,000  
Issuance of common stock for dividends $ 18,617 $ 975,468