Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.2.0.727
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 9 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:    
Net (loss) income $ (2,010,666) $ 1,893,024
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:    
Amortization of deferred financing costs 0 481,782
Forbearance incentive expense 1,073,112 0
Depreciation and amortization 62,610 8,646
Gain on forgiveness of debt 0 (2,748,158)
Changes in operating assets and liabilities:    
Accounts receivable (407,680) 540,808
Other current assets (126,906) (24,171)
Accounts payable and accrued liabilities 1,680,525 (661,434)
Accrued litigation costs (40,000) 0
Accrued lease termination costs (116,544) 0
Due to related party 85,399 (337,931)
Net cash provided by (used in) operating activities 199,850 (847,434)
Cash flows from investing activities:    
Purchases of property and equipment (106,340) (19,255)
Proceeds from sales of property and equipment 0 5,000
Net cash used in investing activities (106,340) (14,255)
Cash flows from financing activities:    
Payments on factor lines of credit, net (259,934) 0
Proceeds from issuance of notes payable 0 891,246
Payments on notes payable (245,300) 0
Proceeds from repayment of subscriptions receivable 600,000 [1] 96,752
Net cash provided by financing activities 94,766 987,998
Net change in cash 188,276 126,309
Cash, beginning of period 1,254 32,754
Cash, end of period 189,530 159,063
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid for interest 244,719 617,255
Non-cash financing activities:    
Notes payable issued to finance equipment purchases 617,786  
Unpaid subscription for preferred shares 549,907 [2] 0
Preferred stock issued to settle rent obligations $ 50,000 $ 0
[1] Repayment of $660,000 subscription receivable, less $60,000 of expense paid from proceeds on behalf of the Company.
[2] Value of shares issued of $783,672, less $233,765 of expenses paid on behalf of the Company.