XML 82 R5.htm IDEA: XBRL DOCUMENT v2.4.0.8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
9 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Cash flows from operating activities:    
Net Loss $ (5,379,030) $ (6,194,027)
Gain on sale of subsidiaries    (424,819)
Loss from discontinued operations    6,460
Net loss from continuing operations (5,379,030) (6,612,386)
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation and amortization 1,800,597 1,922,243
Bad debt expense 116,200   
Vesting and re-pricing of stock options for services 323,924 81,407
Issuance of common stock for services 202,500 106,223
Amortization of debt discount 193,389   
Beneficial conversion feature recorded as interest expense    5,200,842
Issuance and re-pricing of warrants with related parties    45,844
Impairment of monitoring equipment and parts 225,000 450,000
Fractional shares of common stock paid in cash    (1,996)
Loss on disposal of property and equipment    2,034
Loss on disposal of monitoring equipment and parts    89,093
Change in assets and liabilities:    
Accounts receivable, net 546,118 (736,579)
Notes receivable (10,325) 72,566
Inventories (659,942) 186,845
Prepaid expenses and other assets (1,631,033) 107,538
Accounts payable 1,954,626 (1,524,922)
Accrued expenses (1,082,612) 2,395,860
Deferred revenue 9,031 (345,862)
Net cash provided by (used in) operating activities (3,391,557) 1,438,750
Cash flow from investing activities:    
Purchases of property and equipment (2,144,600) (32,968)
Purchases of monitoring equipment and parts    (490,153)
Proceeds from notes receivable 55,984   
Cash paid for purchase of subsidiary and other investments (7,677,628)   
Cash deposited in escrow to secure international bond (3,163,802)   
Net cash used in investing activities (12,930,046) (523,121)
Cash flow from financing activities:    
Borrowings on related-party notes payable 15,950,000 2,800,000
Proceeds from exercise of options and warrants 8,000   
Principal payments on notes payable (883,592) (287,888)
Cash paid for repurchase of Preferred Series D stock (312,008)   
Net cash provided by financing activities 14,762,400 2,512,112
Cash flow from discontinued operations:    
Net cash provided by operating activities    126,715
Net cash used in investing activities      
Net cash used in financing activities    18,475
Net cash provided by discontinued operations    145,190
Foreign Currency Translation Adjustments (93,429)   
Net increase in cash (1,652,632) 3,572,931
Cash, beginning of period 3,382,428 458,029
Cash, end of period 1,729,796 4,030,960
Cash paid for interest 196,219 222,262
Supplemental schedule of non-cash investing and financing activities:    
Issuance of common stock in connection with Series D Preferred stock dividends 23,957 1,654,673
Series D Preferred stock dividends earned 14,585 1,033,470
Issuance of common stock shares for settlement of debt    3,156,493
Beneficial conversion feature recorded with convertible debt    15,619,444
Issuance of debt to repurchase royalty agreement    11,898,455
Issuance of common stock in connection with the acquisition of a subsidiary 4,500,000   
Commitment to purchase additional 35% ownership in IMS $ 350,000