Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Jun. 30, 2014 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'APPLIED DNA SCIENCES INC |
Entity Central Index Key | '0000744452 |
Entity Filer Category | 'Accelerated Filer |
Document Type | 'S-1/A |
Amendment Flag | 'false |
Document Period End Date | 30-Jun-14 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $2,025,716 | $6,360,301 | $724,782 | $2,747,294 |
Accounts receivable, net of allowance of $36,757, $62,415 and $0 at June 30, 2014, September 30, 2013 and 2012, respectively | 518,274 | 672,638 | 296,994 | 208,587 |
Prepaid expenses | 170,792 | 174,096 | 80,037 | 76,290 |
Total current assets | 2,714,782 | 7,207,035 | 1,101,813 | 3,032,171 |
Property, plant and equipment, net of accumulated depreciation of $409,629, $251,958 and $210,862 at September 30, 2013, 2012 and 2011 respectively | 649,417 | 695,995 | 210,845 | 89,108 |
Other assets: | ' | ' | ' | ' |
Deposits | 55,488 | 51,260 | 36,276 | 23,458 |
Capitalized finance costs - net of accumulated amortization of $1,892,236 and $1,806,261, respectively | ' | ' | ' | 85,975 |
Intangible assets: | ' | ' | ' | ' |
Intellectual property, net of accumulated amortization and impairment of $232,751, $163,403, $0 and $9,158,056 at June 30, 2014, September 30, 2013, 2012 and 2011 respectively | 351,328 | 420,676 | ' | 272,844 |
Total Assets | 3,771,015 | 8,374,966 | 1,348,934 | 3,503,556 |
Current liabilities: | ' | ' | ' | ' |
Accounts payable and accrued liabilities | 1,259,439 | 966,977 | 592,009 | 768,061 |
Deferred revenue | 348,624 | 148,503 | ' | ' |
Convertible notes payable, net of unamortized discount of $541,120 (Note D) | ' | ' | ' | 3,730,880 |
Total current liabilities | 1,608,063 | 1,115,480 | 592,009 | 4,498,941 |
Warrant liability | 1,851,723 | 2,643,449 | ' | ' |
Total liabilities | 3,459,786 | 3,758,929 | 592,009 | ' |
Commitments and contingencies | ' | ' | ' | ' |
Stockholders' Equity | ' | ' | ' | ' |
Preferred stock, value, issued | ' | ' | ' | ' |
Common stock, par value $0.001 per share; 1,350,000,000, 800,000,000 shares authorized; 13,788,872 , 13,108,783 , 10,769,709 and 7,888,764 shares issued and outstanding as of June 30, 2014 and September 30, 2013, 2012 and 2011 respectively | 13,789 | 13,109 | 10,770 | 7,889 |
Additional paid in capital | 197,952,194 | 191,296,539 | 169,753,294 | 160,853,153 |
Accumulated deficit | -197,654,754 | -186,693,611 | -169,007,139 | -161,856,427 |
Total stockholders' equity | 311,229 | 4,616,037 | 756,925 | -995,385 |
Total Liabilities and Stockholders' Equity | 3,771,015 | 8,374,966 | 1,348,934 | 3,503,556 |
Series A Preferred stock | ' | ' | ' | ' |
Stockholders' Equity | ' | ' | ' | ' |
Preferred stock, value, issued | ' | ' | ' | ' |
Series B Preferred stock | ' | ' | ' | ' |
Stockholders' Equity | ' | ' | ' | ' |
Preferred stock, value, issued | ' | ' | ' | ' |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Allowance on accounts receivable (in dollars) | $36,757 | $62,415 | $0 | ' |
Accumulated depreciation on property, plant and equipment (in dollars) | 665,729 | 409,629 | 251,958 | 210,862 |
Accumulated amortization on capitalized finance costs (in dollars) | ' | ' | 1,892,236 | 1,806,261 |
Accumulated amortization on patents (in dollars) | ' | ' | ' | 34,257 |
Accumulated amortization and write off on intellectual property (in dollars) | 232,751 | 163,403 | 0 | 9,158,056 |
Unamortized discount on convertible notes payable, current (in dollars) | ' | ' | ' | $541,120 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 | $0.00 |
Preferred stock, shares issued | 0 | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 | 0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 | $0.00 |
Common stock, shares authorized | 1,350,000,000 | 1,350,000,000 | 1,350,000,000 | 800,000,000 |
Common stock, shares issued | 13,788,872 | 13,108,783 | 10,769,709 | 7,888,764 |
Common stock, shares outstanding | 13,788,872 | 13,108,783 | 10,769,709 | 7,888,764 |
Series A Preferred stock | ' | ' | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 | ' |
Preferred stock, shares issued | 0 | 0 | 0 | ' |
Preferred stock, shares outstanding | 0 | 0 | 0 | ' |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | ' |
Series B Preferred stock | ' | ' | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 | ' |
Preferred stock, shares issued | 0 | 0 | 0 | ' |
Preferred stock, shares outstanding | 0 | 0 | 0 | ' |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Income Statement [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Revenue | $841,197 | $644,842 | $2,075,698 | $1,307,117 | $2,036,222 | $1,854,694 | $968,848 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' |
Selling, general and administrative | 2,948,452 | 3,240,815 | 10,093,631 | 8,516,390 | 11,198,505 | 7,615,734 | 8,388,873 |
Research and development | 266,331 | 184,981 | 1,085,416 | 509,132 | 692,480 | 432,669 | 268,876 |
Depreciation and amortization | 113,424 | 62,280 | 325,448 | 105,105 | 321,074 | 313,940 | 367,556 |
Total operating expenses | 3,328,207 | 3,488,076 | 11,504,495 | 9,130,627 | 12,212,059 | 8,362,343 | 9,025,305 |
LOSS FROM OPERATIONS | -2,487,010 | -2,843,234 | -9,428,797 | -7,823,510 | -10,175,837 | -6,507,649 | -8,056,457 |
Other income (expense): | ' | ' | ' | ' | ' | ' | ' |
Interest income (expense), net | 111 | 333 | 784 | 738 | 1,272 | -643,063 | -2,458,667 |
Other income (expense), net | 52,299 | ' | 130,186 | ' | -3,761 | ' | ' |
Gain (loss) on change in fair value of warrant liability | 515,543 | 707,289 | -1,663,316 | -6,145,229 | -7,508,146 | ' | ' |
Net loss before provision for income taxes | -1,919,057 | -2,135,612 | -10,961,143 | -13,968,001 | -17,686,472 | -7,150,712 | -10,515,124 |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' |
NET LOSS | ($1,919,057) | ($2,135,612) | ($10,961,143) | ($13,968,001) | ($17,686,472) | ($7,150,712) | ($10,515,124) |
Net loss per share-basic and diluted (in dollars per share) | ($0.14) | ($0.18) | ($0.82) | ($1.23) | ($1.51) | ($0.74) | ($1.67) |
Weighted average shares outstanding- basic and diluted (in shares) | 13,569,262 | 12,019,036 | 13,400,540 | 11,395,166 | 11,730,879 | 9,601,525 | 6,280,563 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Cash flows from operating activities: | ' | ' | ' | ' | ' |
Net loss | ($10,961,143) | ($13,968,001) | ($17,686,472) | ($7,150,712) | ($10,515,124) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' | ' | ' |
Depreciation and amortization | 325,448 | 105,105 | 206,344 | 313,940 | 367,556 |
Impairment of intellectual property | ' | ' | 114,730 | ' | ' |
Stock based compensation expense | 1,674,436 | 1,334,993 | 1,517,524 | 1,953,844 | 1,485,068 |
Change in fair value of warrant liability | 1,663,316 | 6,145,229 | 7,508,146 | ' | ' |
Fair value change from employee option modification | 43,401 | 408,605 | 408,605 | ' | 738,810 |
Fair value of vested warrants issued for services | ' | 28,256 | 28,256 | 58,238 | 1,444,583 |
Common stock issued for consulting services | 337,500 | ' | ' | ' | ' |
Amortization of capitalized financing costs | ' | ' | ' | 85,975 | 858,985 |
Amortization of debt discount attributable to convertible debentures | ' | ' | ' | 541,120 | 2,096,427 |
Bad debt expense | 16,878 | 70,000 | 77,415 | ' | ' |
Common stock issued in settlement of interest | ' | ' | ' | 102,844 | 36,997 |
Change in operating assets and liabilities: | ' | ' | ' | ' | ' |
Accounts receivable | 137,486 | -360,661 | -453,059 | -88,407 | -145,558 |
Prepaid expenses and deposits | -924 | -76,510 | -109,042 | -16,565 | 70,030 |
Accounts payable and accrued liabilities | 292,462 | 616,067 | 517,200 | 239,044 | -199,490 |
Deferred revenue | 200,121 | ' | ' | ' | ' |
Net cash used in operating activities | -6,271,019 | -5,696,917 | -7,870,353 | -3,960,679 | -3,761,716 |
Cash flows used in investing activities: | ' | ' | ' | ' | ' |
Purchase of assets under RedWeb asset purchase agreement | ' | -584,080 | -584,080 | ' | ' |
Purchase of property plant and equipment | -209,522 | -213,494 | -636,548 | -162,833 | -89,108 |
Net cash used in investing activities | -209,522 | -797,574 | -1,220,628 | -162,833 | -89,108 |
Cash flows from financing activities: | ' | ' | ' | ' | ' |
Net proceeds from sale of common stock | 2,145,956 | 2,000,000 | 3,900,000 | 2,101,000 | 4,735,000 |
Proceeds from sale of Series A preferred stock | ' | 5,500,000 | 10,735,000 | ' | ' |
Proceeds from exercise of warrants | ' | 150,000 | 151,500 | ' | ' |
Proceeds from exercise of options | ' | 1,500 | ' | ' | ' |
Purchase and cancellation of previously issued warrants | ' | -50,000 | -60,000 | ' | ' |
Net proceeds from (payments of) related party advances | ' | ' | ' | ' | -50,000 |
Net proceeds from issuance of convertible notes | ' | ' | ' | ' | 1,895,500 |
Net cash provided by financing activities | 2,145,956 | 7,601,500 | 14,726,500 | 2,101,000 | 6,580,500 |
Net (decrease) increase in cash and cash equivalents | -4,334,585 | 1,107,009 | 5,635,519 | -2,022,512 | 2,729,676 |
Cash and cash equivalents at beginning of period | 6,360,301 | 724,782 | 724,782 | 2,747,294 | 17,618 |
Cash and cash equivalents at end of period | 2,025,716 | 1,831,791 | 6,360,301 | 724,782 | 2,747,294 |
Supplemental Disclosures of Cash Flow Information: | ' | ' | ' | ' | ' |
Cash paid during period for interest | ' | ' | ' | ' | ' |
Cash paid during period for taxes | ' | ' | ' | ' | ' |
Non-cash investing and financing transactions: | ' | ' | ' | ' | ' |
Common stock issued for cashless exercise of options and warrants | 19,570 | ' | 49,600 | ' | ' |
Reclassification of warrants from liability to equity upon exercise | 2,455,042 | 7,326,553 | ' | ' | ' |
Property, plant and equipment acquired, and included in accounts payable | ' | 325,402 | 6,273 | ' | ' |
Common stock issued upon conversion of Series A and Series B preferred stock | ' | ' | 67,759 | ' | ' |
Fair value of warrants issued for financing costs | ' | ' | ' | ' | 217,971 |
Common stock issued in exchange for previously incurred debt and related accrued interest | ' | ' | ' | $4,687,096 | $373,000 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (USD $) | Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Deficit | Total |
Balance at Sep. 30, 2010 | ' | $5,773 | $149,396,907 | ($151,341,303) | ($1,598,030) |
Balance (in shares) at Sep. 30, 2010 | ' | 5,772,771 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Common stock issued in settlement of convertible debentures and interest | ' | 97 | 409,900 | ' | 409,997 |
Common stock issued in settlement of convertible debentures and interest (in shares) | ' | 96,793 | ' | ' | ' |
Sale of common stock | ' | 1,754 | 4,733,246 | ' | 4,735,000 |
Sale of common stock (in shares) | ' | 1,754,386 | ' | ' | ' |
Fair value of warrants issued for services | ' | ' | 217,971 | ' | 217,971 |
Equity based compensation | ' | ' | 502,082 | ' | 502,802 |
Fair value of vested options issued to directors, officers and employees | ' | ' | 1,485,068 | ' | 1,485,068 |
Common stock issued in exchange for consulting services | ' | 15 | 64,985 | ' | 65,000 |
Common stock issued in exchange for consulting services (in shares) | ' | 14,814 | ' | ' | 14,814 |
Common stock issued as officer compensation | ' | 250 | 877,250 | ' | 877,500 |
Common stock issued as officer compensation (in shares) | ' | 250,000 | ' | ' | ' |
Change in fair value of extended vested options | ' | ' | 738,810 | ' | 738,810 |
Beneficial conversion feature relating to convertible debentures | ' | ' | 2,086,341 | ' | 2,086,341 |
Net loss | ' | ' | ' | -10,515,124 | -10,515,124 |
Balance at Sep. 30, 2011 | ' | 7,889 | 160,853,153 | -161,856,427 | -995,385 |
Balance (in shares) at Sep. 30, 2011 | ' | 7,888,764 | ' | ' | 7,888,764 |
Balance at Oct. 01, 2011 | ' | 7,889 | 160,853,153 | -161,856,427 | ' |
Balance (in shares) at Oct. 01, 2011 | ' | 7,888,764 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Common stock issued in settlement of convertible debentures and interest | ' | 2,042 | 4,787,898 | ' | 4,789,940 |
Common stock issued in settlement of convertible debentures and interest (in shares) | ' | 2,042,198 | ' | ' | 22,924,513 |
Sale of common stock | ' | 750 | 2,100,250 | ' | 2,101,000 |
Sale of common stock (in shares) | ' | 749,392 | ' | ' | ' |
Exercise of warrants and options cashlessly | ' | 89 | -89 | ' | ' |
Exercise of warrants and options cashlessly (in shares) | ' | 89,355 | ' | ' | ' |
Fair value of warrants issued for services | ' | ' | 58,238 | ' | 58,238 |
Equity based compensation | ' | ' | 1,953,844 | ' | 1,953,844 |
Net loss | ' | ' | ' | -7,150,712 | -7,150,712 |
Balance at Sep. 30, 2012 | ' | 10,770 | 169,753,294 | -169,007,139 | 756,925 |
Balance (in shares) at Sep. 30, 2012 | ' | 10,769,709 | ' | ' | 10,769,709 |
Balance at Oct. 01, 2012 | ' | 10,770 | 169,753,294 | -169,007,139 | ' |
Balance (in shares) at Oct. 01, 2012 | ' | 10,769,709 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Sale of Series A preferred stock | 6 | ' | 5,499,994 | ' | 5,500,000 |
Sale of Series A preferred stock (in shares) | 5,500 | ' | ' | ' | ' |
Sale of Series B preferred stock | 6 | ' | 5,234,994 | ' | 5,235,000 |
Sale of Series B preferred stock (in shares) | 5,500 | ' | ' | ' | ' |
Sale of common stock | ' | 359 | 1,437,787 | ' | 1,438,146 |
Sale of common stock (in shares) | ' | 357,464 | ' | ' | ' |
Common stock issued in conversion of Series A preferred stock | -6 | 424 | -418 | ' | ' |
Common stock issued in conversion of Series A preferred stock (in shares) | -5,500 | 424,383 | ' | ' | ' |
Common stock issued in conversion of Series B preferred stock | -6 | 705 | -699 | ' | ' |
Common stock issued in conversion of Series B preferred stock (in shares) | -5,500 | 705,128 | ' | ' | ' |
Exercise of warrants and options | ' | 25 | 151,475 | ' | 151,500 |
Exercise of warrants and options (in shares) | ' | 25,417 | ' | ' | ' |
Purchase and cancellation of issued warrants | ' | ' | -60,000 | ' | -60,000 |
Fair value of warrants issued for services | ' | ' | 28,256 | ' | 28,256 |
Reclassification of warrants upon exercise | ' | ' | 7,326,553 | ' | 7,326,553 |
Exercise of warrants cashlessly | ' | 749 | -749 | ' | ' |
Exercise of warrants cashlessly (in shares) | ' | 749,357 | ' | ' | ' |
Equity based compensation | ' | ' | 1,926,129 | ' | 1,926,129 |
Exercise of options cashlessly | ' | 77 | -77 | ' | ' |
Exercise of options cashlessly (in shares) | ' | 77,325 | ' | ' | ' |
Net loss | ' | ' | ' | -17,686,472 | -17,686,472 |
Balance at Sep. 30, 2013 | ' | $13,109 | $191,296,539 | ($186,693,611) | $4,616,037 |
Balance (in shares) at Sep. 30, 2013 | ' | 13,108,783 | ' | ' | 13,108,783 |
SUMMARY_OF_ACCOUNTING_POLICIES
SUMMARY OF ACCOUNTING POLICIES | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF ACCOUNTING POLICIES | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
NOTE A — SUMMARY OF ACCOUNTING POLICIES | NOTE B — SUMMARY OF ACCOUNTING POLICIES | NOTE A — SUMMARY OF ACCOUNTING POLICIES | |||||||||||||||||||||||||||||||||||||||||||||||||
General | Business and Basis of Presentation | A summary of the significant accounting policies applied in the preparation of the accompanying consolidated financial statements follows. | |||||||||||||||||||||||||||||||||||||||||||||||||
The accompanying condensed consolidated financial statements as of June 30, 2014 and for the three and nine month periods ended June 30, 2014 and 2013 are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and are presented in accordance with the requirements of Rule S-X of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. | On September 16, 2002, Applied DNA Sciences, Inc. (the “Company”) was incorporated under the laws of the State of Nevada. Effective December 17, 2008, the Company reincorporated from the State of Nevada to the State of Delaware. The Company is principally devoted to developing DNA embedded biotechnology security solutions in the United States and Europe. To date, the Company has generated limited sales revenues from services and products; it has incurred expenses and has sustained losses. Consequently, its operations are subject to all risks inherent in the establishment of an early stage company. For the period from inception through September 30, 2013, the Company has accumulated losses of $186,693,611. | Business and Basis of Presentation | |||||||||||||||||||||||||||||||||||||||||||||||||
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine month periods ended June 30, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2014. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended September 30, 2013 and footnotes thereto included in the Company’s Annual Report on Form 10-K and Form 10-K/A filed with the SEC. | The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Applied DNA Operations Management, Inc., APDN (B.V.I.) Inc. and Applied DNA Sciences Europe Limited, which currently have no operations. Significant inter-company transactions have been eliminated in consolidation. | On September 16, 2002, Applied DNA Sciences, Inc. (the “Company”, “we”, “our” or “us”) was incorporated under the laws of the State of Nevada. Effective December 17, 2008, the Company reincorporated from the State of Nevada to the State of Delaware. The Company is principally devoted to developing DNA embedded biotechnology security solutions in the United States and Europe. | |||||||||||||||||||||||||||||||||||||||||||||||||
The condensed consolidated balance sheet as of September 30, 2013 contained herein has been derived from the audited consolidated financial statements as of September 30, 2013, but do not include all disclosures required by GAAP. | Use of Estimates | The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Applied DNA Operations Management, Inc., APDN (B.V.I.) Inc. and Applied DNA Sciences Europe Limited, which currently have no operations. Significant inter-company transactions have been eliminated in consolidation. | |||||||||||||||||||||||||||||||||||||||||||||||||
Business and Basis of Presentation | The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect certain | Estimates | |||||||||||||||||||||||||||||||||||||||||||||||||
On September 16, 2002, Applied DNA Sciences, Inc. (the “Company”) was incorporated under the laws of the State of Nevada. Effective December 17, 2008, the Company reincorporated from the State of Nevada to the State of Delaware. The Company is principally devoted to developing DNA embedded biotechnology security solutions in the United States and Europe. To date, the Company has had a limited operating history, and as a result, its operations have produced limited recurring revenues from its services and products; it has incurred expenses and has sustained losses. Consequently, its operations are subject to all the risks inherent in the establishment of a biotechnology company. For the period from inception through June 30, 2014, the Company has accumulated losses of $197,654,754. | reported amounts and disclosures. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The most complex and subjective estimates include; recoverability of long-lived assets, including the value assigned to intangible assets and property and equipment, fair value calculations for warrants, contingencies and allowances for doubtful accounts. Management reviews its estimates on a regular basis and the effects of any material revisions are reflected in the consolidated financial statements in the period they are deemed necessary. Accordingly, actual results could differ from those estimates. | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. | |||||||||||||||||||||||||||||||||||||||||||||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Applied DNA Operations Management, Inc., APDN (B.V.I.) Inc. and Applied DNA Sciences Europe Limited, which currently have no operations or activity. | Reclassifications | Reclassifications | |||||||||||||||||||||||||||||||||||||||||||||||||
Use of Estimates | Certain reclassifications have been made in prior year’s financial statements to conform with the current year’s financial statements’ presentation. | Certain reclassifications have been made in prior year’s financial statements to conform with the current year’s financial statements’ presentation. | |||||||||||||||||||||||||||||||||||||||||||||||||
The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The most complex and subjective estimates include; recoverability of long-lived assets, including the value assigned to intangible assets and property and equipment, fair value calculations for warrants and stock based compensation, contingencies and allowance for doubtful accounts. Management reviews its estimates on a regular basis and the effects of any material revisions are reflected in the condensed consolidated interim financial statements in the period they are deemed necessary. Accordingly, actual results could differ from those estimates. | Revenue Recognition | Revenue Recognition | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 605, Revenue Recognition (“ASC 605”). ASC 605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred and/or service has been performed; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered or services provided and the collectability of those amounts. Provisions for allowances and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product has not been delivered, service has not been provided, or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered, the service has been provided, or no refund will be required. At September 30, 2013 and 2012, the Company recorded deferred revenue of $148,503 and $0, respectively. | Revenues are derived from research, development, qualification and production testing for certain commercial products. Revenue from fixed price testing contracts is generally recorded upon completion of the contracts, which are generally short-term, or upon completion of identifiable contractual tasks. At the time the Company enters into a contract that includes multiple tasks, the Company estimates the amount of actual labor and other costs that will be required to complete each task based on historical experience. Revenues are recognized which provide for a profit margin relative to the testing performed. Revenue relative to each task and from contracts which are time and materials based is recorded as effort is expended. Billings in excess of amounts earned are deferred. Any anticipated losses on contracts are charged to income when identified. To the extent management does not accurately forecast the level of effort required to complete a contract, or individual tasks within a contract, and the Company is unable to negotiate additional billings with a customer for cost over-runs, the Company may incur losses on individual contracts. All selling, general and administrative costs are treated as period costs and expensed as incurred. | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 605, Revenue Recognition (“ASC 605”). ASC 605 requires that four basic criteria must be met before revenue | Revenue arrangements with multiple components are divided into separate units of accounting if certain criteria are met, including whether the delivered component has stand-alone value to the customer. Consideration received is allocated among the separate units of accounting based on their respective selling prices. The selling price for each unit is based on vendor-specific objective evidence, or VSOE, if available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third party is available. The applicable revenue recognition criteria are then applied to each of the units. | For revenue from product sales, the Company recognizes revenue in accordance with Accounting Standards Codification subtopic 605-10, Revenue Recognition (“ASC 605-10”). ASC 605-10 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for allowances and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. At September 30, 2012 and 2011, the Company did not record any deferred revenue for the respective periods. | |||||||||||||||||||||||||||||||||||||||||||||||||
can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred and/or service has been performed; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered or services provided and the collectability of those amounts. Provisions for allowances and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product has not been delivered, service has not been provided, or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered, the service has been provided, or no refund will be required. At June 30, 2014 and September 30, 2013, the Company recorded deferred revenue of $348,624 and $148,503, respectively. | Revenue for a Government contract award, which supports our development efforts on specific projects is recognized as milestones are achieved as per the contract. The Company recognized revenue of $100,000 from this contract during the year ended September 30, 2013. | Cash Equivalents | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenue arrangements with multiple components are divided into separate units of accounting if certain criteria are met, including whether the delivered component has stand-alone value to the customer. Consideration received is allocated among the separate units of accounting based on their respective selling prices. The selling price for each unit is based on vendor-specific objective evidence, or VSOE, if available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third party is available. The applicable revenue recognition criteria are then applied to each of the units. | Cash Equivalents | For the purpose of the accompanying consolidated financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenue for a government contract award, which supports the Company’s development efforts on specific projects, is recognized as milestones are achieved as per the contract. The Company recognized revenue of approximately $0 and $50,000 from this contract award during the three and nine month periods ended June 30, 2014, respectively. | For the purpose of the accompanying consolidated financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. | Accounts Receivable | |||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Accounts Receivable | The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change. At September 30, 2012 and 2011, the Company has deemed that no allowance for doubtful accounts was necessary. The Company writes-off receivables that are deemed uncollectible. | |||||||||||||||||||||||||||||||||||||||||||||||||
In its interim financial statements the Company follows the guidance in ASC 270, “Interim Reporting” (“ASC 270”) and ASC 740, “Income Taxes (“ASC 740”) whereby the Company utilizes the expected annual effective tax rate in determining its income tax provisions for the interim period’s income or loss. The rate differs from the U.S. statutory rate primarily as a result of certain net operating loss carryforwards and permanent differences between book and tax reporting. | The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change. At September 30, 2013 and 2012, the Company has an allowance for doubtful accounts of $62,415 and $0, respectively. The Company writes-off receivables that are deemed uncollectible. The Company wrote-off $15,000 and $0 of accounts receivable that was not previously reserved for during the year ended September 30, 2013 and 2012, respectively. | Income Taxes | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all of the deferred tax asset will not be realized. During the year ended September 30, 2013 and the three and nine month periods ended June 30, 2014, the Company incurred losses from operations. Based upon these results and the trends in the Company’s performance projected for the remainder of fiscal year 2014, it is more likely than not that the Company will not realize any benefit from the deferred tax assets recorded by the Company in previous periods. Management makes judgments as to the interpretation of tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. The Company has identified its federal tax return and its state tax return in New York as “major” tax jurisdictions. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company condensed consolidated financial statements. | Income Taxes | The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes (“ASC 740-10”) which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes include, but not limited to, accounting for intangibles, debt discounts associated with convertible debt, equity based compensation and depreciation and amortization. The adoption of ASC 740-10 did not have a material impact on the Company’s consolidated results of operations or financial condition. | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s evaluation was performed for tax years 2010 through 2012. The Company believes that its income tax positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to its financial position. It is the Company’s policy to accrue interest and penalties on unrecognized tax benefits as components of income tax provision. The Company did not have any accrued interest or penalties as of June 30, 2014 and September 30, 2013. | The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740-10”) which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes include, but not limited to, accounting for intangibles, warrants, equity based compensation and depreciation and amortization. | Property and Equipment | |||||||||||||||||||||||||||||||||||||||||||||||||
Property Plant and Equipment | The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all of the deferred tax asset will not be realized. During the years ended September 30, 2013 and 2012, the Company incurred losses from operations. Based upon these results and the trends in the Company’s performance projected for fiscal year 2014, it is more likely than not that the Company will not realize any benefit from the deferred tax assets recorded by the Company in previous periods. Management makes judgments as to the interpretation of tax laws that might be challenged upon an audit and cause changes to previously estimates of tax liability. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. The Company has identified its federal tax return and its state tax return in New York as “major” tax jurisdictions. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company consolidated financial statements. | Property and equipment are stated at cost and depreciated over their estimated useful lives of 3 to 5 years using the straight line method. At September 30, 2012 and 2011, property and equipment consist of: | |||||||||||||||||||||||||||||||||||||||||||||||||
Property plant and equipment are stated at cost and depreciated using the straight line method over their estimated useful lives. The estimated useful lives for computer equipment, lab equipment and furniture is 3 to 5 years and leasehold improvements are amortized over the shorter of their useful life or the lease term. Property plant and equipment consist of: | The Company’s evaluation was performed for tax years 2009 through 2012. The Company believes that its income tax positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to its financial position. It is the Company’s policy to accrue interest and penalties on unrecognized tax benefits as components of income tax provision. The Company did not have any accrued interest or penalties as of September 30, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property Plant and Equipment | | | | | 2012 | | | 2011 | | ||||||||||||||||||||||||||||||||||||||||||
| | | | June 30, | | | September 30, | | Property Plant and equipment are stated at cost and depreciated using the straight line method over their estimated useful lives. The estimated useful for computer equipment, lab equipment and furniture is 3 to 5 years and leasehold improvements are amortized over the shorter of their useful life or the lease terms. Property plant and equipment consist of: | | Computer equipment | | | | $ | 33,464 | | | | | $ | 33,464 | | | |||||||||||||||||||||||||||
2014 | 2013 | | Lab equipment | | | | | 296,904 | | | | | | 146,101 | | | |||||||||||||||||||||||||||||||||||
| | | | (unaudited) | | | | | | | | September 30, | | | Furniture | | | | | 132,435 | | | | | | 120,405 | | | |||||||||||||||||||||||
| Computer equipment | | | | $ | 69,182 | | | | | $ | 43,555 | | | | | | | 2013 | | | 2012 | | | Total | | | | | 462,803 | | | | | | 299,970 | | | |||||||||||||
| Lab equipment | | | | | 832,036 | | | | | | 657,735 | | | | Computer equipment | | | | $ | 43,555 | | | | | $ | 33,464 | | | | Accumulated depreciation | | | | | 251,958 | | | | | | 210,862 | | | |||||||
| Furniture | | | | | 164,997 | | | | | | 164,997 | | | | Lab equipment | | | | | 657,735 | | | | | | 296,904 | | | | Property and equipment, net | | | | $ | 210,845 | | | | | $ | 89,108 | | | |||||||
| Leasehold improvements | | | | | 248,931 | | | | | | 239,337 | | | | Furniture | | | | | 164,997 | | | | | | 132,435 | | | | | | | | | | | ||||||||||||||
| Total | | | | | 1,315,146 | | | | | | 1,105,624 | | | | Leasehold improvements | | | | | 239,337 | | | | | | — | | | ||||||||||||||||||||||
| Accumulated depreciation | | | | | 665,729 | | | | | | 409,629 | | | | Total | | | | | 1,105,624 | | | | | | 462,803 | | | Impairment of Long-Lived Assets | |||||||||||||||||||||
| Property plant and equipment, net | | | | $ | 649,417 | | | | | $ | 695,995 | | | | Accumulated depreciation | | | | | 409,629 | | | | | | 251,958 | | | The Company has adopted Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long lived assets for impairment annually or more often if events and circumstances warrant. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should | |||||||||||||||||||||
| | | | | | | | | Property and equipment, net | | | | $ | 695,995 | | | | | $ | 210,845 | | | impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell. | ||||||||||||||||||||||||||||
| | | | | | | | Comprehensive Income | |||||||||||||||||||||||||||||||||||||||||||
Depreciation expense for the three and nine month periods ended June 30, 2014 was $90,223 and $256,100, respectively. Depreciation expense for the three and nine month periods ended June 30, 2013 was $42,810 and $85,636, respectively. | The Company does not have any items of comprehensive income in any of the years presented. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of Long-Lived Assets | Depreciation expense for the years ended September 30, 2013 and 2012 were $157,671 and $41,096, respectively. | Segment Information | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company evaluates its long lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of long-lived assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. As of June 30, 2014, the Company concluded that its long-lived assets were not required to be tested for recoverability. | Impairment of Long-Lived Assets | The Company adopted Accounting Standards Codification subtopic Segment Reporting 280-10 (“ASC 280-10”). ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision- making group, in making decisions how to allocate resources and assess performance. The information disclosed herein, materially represents all of the financial information related to the Company’s single principal operating segment. | |||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Share | The Company accounts for its long-lived assets in accordance with ASC 360, Property, Plant and Equipment (“ASC 360”). ASC 360 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell. For the years ended September 30, 2013 and 2012, the Company recognized impairment charges of $114,730 and $0, respectively related to certain intellectual property. | Net Loss Per Share | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company presents loss per share utilizing a dual presentation of basic and diluted loss per share. Basic loss per share includes no dilution and has been calculated based upon the weighted average number of common shares outstanding during the period. Dilutive common stock equivalents consist of shares issuable upon the exercise of the Company’s stock options and warrants. | Segment Information | The Company has adopted Accounting Standards Codification subtopic 260-10, Earnings Per Share (“ASC 260-10”) which specifies the computation, presentation and disclosure requirements of earnings per share information. Basic earnings per share have been calculated based upon the weighted average number of common shares outstanding. Dilutive common stock equivalents consist of shares issuable upon conversion of convertible notes and the exercise of the Company’s stock options and warrants. For the years ended September 30, 2012 and 2011, common stock equivalent shares are excluded from the computation of the diluted loss per share as their effect would be anti-dilutive. | |||||||||||||||||||||||||||||||||||||||||||||||||
For the three and nine month periods ended June 30, 2014 and 2013, common stock equivalent shares are excluded from the computation of the diluted loss per share as their effect would be anti-dilutive. | The Company follows the provisions of ASC 280, Segment Reporting (“ASC 280-10”). ASC 280 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision- making group, in making decisions how to allocate resources and assess performance. The information disclosed herein, materially represents all of the financial information related to the Company’s single principal operating segment. | Fully diluted shares outstanding were 11,538,808 and 9,016,160 for the years ended September 30, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||
A summary of potential stock issuances under various options, and warrants that could have a dilutive effect on the shares outstanding for the three and nine months ended June 30, 2014 and 2013 are as follows: | Net Loss per Share | Stock Based Compensation | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company presents loss per share utilizing a dual presentation of basic and diluted loss per share. Basic loss per share includes no dilution and has been calculated based upon the weighted average number of common shares outstanding during the period. Dilutive common stock equivalents consist of shares issuable upon the exercise of the Company’s stock options and warrants. | The Company follows Accounting Standards Codification subtopic 718-10, Compensation (“ASC 718-10”) which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statement of operations based on their fair values. Stock-based compensation expense recognized under ASC 718-10 for the years ended September 30, 2012 and 2011 was $1,953,844 and $1,485,068, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | 2014 | | | 2013 | | For the years ended September 30, 2013 and 2012, common stock equivalent shares are excluded from the computation of the diluted loss per share as their effect would be anti-dilutive. | As of September 30, 2012, 2,086,814 employee stock options were outstanding with 1,619,938 shares vested and exercisable. | |||||||||||||||||||||||||||||||||||||||||
| Warrants | | | | | 240,439 | | | | | | 292,106 | | | Fully diluted shares outstanding were 13,993,065 and 11,538,808 for the years ended September 30, 2013 and 2012, respectively. | Concentrations | |||||||||||||||||||||||||||||||||||
| Employee options | | | | | 2,073,043 | | | | | | 1,614,872 | | | Stock Based Compensation | Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. | |||||||||||||||||||||||||||||||||||
| | | | | | 2,313,482 | | | | | | 1,906,978 | | | The Company accounts for stock-based compensation in accordance with ASC 718, Compensation (“ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statement of operations based on their fair values. Under the provisions of ASC 718, stock-based compensation costs is measured at the grant date, based on the fair value of the award, and is recognized as expense over the employee’s requisite service period (generally the vesting period of the equity grant). The fair value of the Company’s common stock options are estimated using the Black Scholes option-pricing model with the following assumptions: expected volatility, dividend rate, risk free interest rate and the expected life. The Company expenses stock-based compensation by using the straight-line method. In accordance with ASC 718, excess tax benefits realized from the exercise of | The Company’s revenues earned from sale of products and services for the years ended September 30, 2012 and 2011 included an aggregate of 54% and 53%, respectively, from two and three customers, respectively of the Company’s total revenues. Two and four customers accounted for the Company’s 54% and 77% of total accounts receivable at September 30, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||||
| | | | | | | | stock-based awards are classified in cash flows from financing activities. The future realization of the reserved deferred tax assets related to these tax benefits associated with the exercise of stock options will result in a credit to additional paid in capital if the related tax deduction reduces taxes payable. The Company has elected the “with and without approach” regarding ordering of windfall tax benefits to determine whether the windfall tax benefit did reduce taxes payable in the current year. Under this approach, the windfall tax benefit would be recognized in additional paid-in-capital only if an incremental tax benefit is realized after considering all other benefits presently available. Stock-based compensation expense recognized under ASC 718 for the years ended September 30, 2013 and 2012 was $1,926,129 and $1,953,844, respectively. | Research and Development | ||||||||||||||||||||||||||||||||||||||||||
Concentrations | The Company accounts for research and development costs in accordance with the Accounting Standards Codification subtopic 730-10, Research and Development (“ASC 730-10”). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred research and development expenses of $432,669 and $268,876 for the years ended September 30, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation | Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. | Advertising | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718, Compensation (“ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statement of operations based on their fair values. Under the provisions of ASC 718, stock-based compensation costs is measured at the grant date, based on the fair value of the award, and is recognized as expense over the employee’s requisite service period (generally the vesting period of the equity grant). The fair value of the Company’s common stock options are estimated using the Black Scholes option-pricing model with the following assumptions: expected volatility, dividend rate, risk free interest rate and the expected life. The Company expenses stock-based compensation by using the straight-line method. In accordance with ASC 718, excess tax benefits realized from the exercise of stock-based awards are classified in cash flows from financing activities. The future realization of the reserved deferred tax assets related to these tax benefits associated with the exercise of stock options will result in a credit to additional paid in capital if the related tax deduction reduces taxes payable. The Company has elected the “with and without approach” regarding ordering of windfall tax benefits to determine whether the windfall tax benefit did reduce taxes payable in the current year. Under this approach, the windfall tax benefit would be recognized in additional paid-in-capital only if an incremental tax benefit is realized after considering all other benefits presently available. | No customers represented greater than 10% of the Company’s total revenues for the year ended September 30, 2013. The Company’s revenues earned from sale of products and services for the year ended September 30, 2012 included an aggregate of 54% from two customers of the Company’s total revenues. Three and two customers accounted 43% and 54% of the Company’s total accounts receivable at September 30, 2013 and 2012, respectively. | The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations $97,877 and $131,938 as advertising costs for the years ended September 30, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations | Research and Development | Intangible Assets | |||||||||||||||||||||||||||||||||||||||||||||||||
Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. | The Company accounts for research and development costs in accordance with the ASC 730, Research and Development (“ASC 730”). Under ASC 730, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred research and development expenses of $692,480 and $432,669 for the years ended September 30, 2013 and 2012, respectively. | The Company amortizes its intangible assets using the straight-line method over their estimated period of benefit. The estimated useful life for patents is five years while other intellectual property uses a seven year useful life. We periodically evaluate the recoverability of intangible assets and take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. All of our intangible assets are subject to amortization. | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s revenues earned from sale of products and services for the three month period ended June 30, 2014 included an aggregate of 10% from one customer of the Company’s total revenues. This customer accounted for approximately 10% of the Company’s total accounts receivable at June 30, 2014. During the nine month period ended June 30, 2014 no customers represented 10% or greater of the Company’s total revenues. | Advertising | Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s revenues earned from the sale of products and services for the nine month period ended June 30, 2013 included an aggregate of 14% from one customer of the Company’s total revenues. This customer did not account for any of the Company’s total accounts receivable at June 30, 2013. No customers represented greater than 10% of the Company’s total revenues for the three month period ended June 30, 2013. | The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations $196,762 and $97,877 as advertising costs for the years ended September 30, 2013 and 2012, respectively. | In the first quarter of fiscal year 2008, the Company adopted Accounting Standards Codification subtopic 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”). ASC 820-10 defines fair value, establishes a framework for measuring fair value, and enhances fair value measurement disclosure. ASC 820-10 delayed, until the first quarter of fiscal year 2009, the effective date for ASC 820-10 for all non-financial assets and non-financial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). The adoption of ASC 820-10 did not have a material impact on the Company’s financial position or operations. | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising | Intangible Assets | Effective October 1, 2008, the Company adopted Accounting Standards Codification subtopic 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”) and Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”), which permits entities to choose to measure many financial instruments and certain other items at fair value. Neither of these statements had an impact on the Company’s consolidated financial position, results of operations or cash flows. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings, as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments. | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations $10,115 and $21,825 as advertising costs for the three month periods ended June 30, 2014 and 2013, respectively, and $85,033 and $158,636 for the nine month periods ended June 30, 2014 and 2013, respectively. | The Company amortizes its intangible assets using the straight-line method over their estimated period of benefit. The estimated useful life for patents is five years while other intellectual property uses a seven year useful life. The Company periodically evaluates the recoverability of intangible assets and takes into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. All of the Company’s intangible assets are subject to amortization. | Recently Adopted Accounting Principles | |||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Fair Value of Financial Instruments | There were various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s consolidated financial position, results of operations or cash flows. | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company amortizes its intangible assets using the straight-line method over their estimated period of benefit. The estimated useful life for patents is five years while other intellectual property uses a seven year useful life. All of the Company’s intangible assets are subject to amortization. | The Company’s financial instruments are primarily composed of cash, accounts receivable, accounts payable and accrued liabilities, and warrants. The fair value of cash, accounts receivable, accounts payable and accrued liabilities, as reflected in the consolidated balance sheet, approximate its fair value due to the short-term maturity of these instruments. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: | ||||||||||||||||||||||||||||||||||||||||||||||||||
The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: | Level 1 — Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 — Quoted prices in active markets for identical assets or liabilities. | Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related asset or liabilities. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related asset or liabilities. | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. | The Company utilizes observable market inputs (quoted market prices) when measuring fair value whenever possible. | ||||||||||||||||||||||||||||||||||||||||||||||||||
The Company utilizes observable market inputs (quoted market prices) when measuring fair value whenever possible. | For fair value measurements categorized within Level 3 of the fair value hierarchy, the Company’s accounting and finance department, who report to the Chief Financial Officer, determine its valuation policies and procedures. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s accounting and finance department and are approved by the Chief Financial Officer. | ||||||||||||||||||||||||||||||||||||||||||||||||||
For fair value measurements categorized within Level 3 of the fair value hierarchy, the Company’s accounting and finance department, who report to the Chief Financial Officer, determine its valuation policies and procedures. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s accounting and finance department and are approved by the Chief Financial Officer. | As of September 30, 2013, there were no transfers in or out of Level 3 from other levels. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements | The fair value of each warrant is estimated using the Binomial Lattice option valuation model. Significant observable and unobservable inputs include stock price, exercise price, annual risk free rate, term, and expected volatility, and are classified within Level 3 of the valuation hierarchy. An increase or decrease in volatility, in isolation, can significantly increase or decrease the fair value of the warrant. See Note L. | ||||||||||||||||||||||||||||||||||||||||||||||||||
There were various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s unaudited condensed consolidated financial position, results of operations or cash flows. | Recently Adopted Accounting Principles | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events | There were various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s consolidated financial position, results of operations or cash flows | ||||||||||||||||||||||||||||||||||||||||||||||||||
The Company has evaluated events that occurred subsequent to the balance sheet date and through the date the financial statements are issued. Other than those events disclosed in the notes to these condensed consolidated financial statements, management concluded that no additional subsequent events required disclosure in these condensed consolidated financial statements. | Subsequent Events | ||||||||||||||||||||||||||||||||||||||||||||||||||
The Company has evaluated events that occurred subsequent to the balance sheet date and through the date the financial statements were available to be issued. Other than those events disclosed in the notes to these consolidated financial statements, management concluded that no additional subsequent events required disclosure in these consolidated financial statements. |
LIQUIDITY_AND_MANAGEMENTS_PLAN
LIQUIDITY AND MANAGEMENT'S PLAN | 9 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Sep. 30, 2013 | |
Liquidity And Management Plan [Abstract] | ' | ' |
LIQUIDITY AND MANAGEMENT'S PLAN | ' | ' |
NOTE B — LIQUIDITY AND MANAGEMENT’S PLAN | NOTE A — LIQUIDITY AND MANAGEMENT’S PLAN | |
The Company has recurring net losses, which have resulted in an accumulated deficit of $197,654,754 as of June 30, 2014. The Company incurred a net loss of $10,961,143 and generated negative operating cash flow of $6,721,019 for the nine month period ended June 30, 2014. However, the Company has attained positive working capital of $1,106,719 as of June 30, 2014. At June 30, 2014, the Company had cash and cash equivalents of $2,025,716. The Company’s current capital resources include cash and cash equivalents and other working capital resources. Historically, the Company has financed its operations principally from the sale of equity securities. The Company raised $2,145,956 in a private placement during June 2014, see Note E. | The Company incurred a net loss of $17,686,472 and generated negative operating cash flow of $7,870,353 for the fiscal year ended September 30, 2013. However, the Company has attained positive working capital of $6,091,555 as of September 30, 2013. | |
Continuation of the Company as a going concern is dependent upon future revenues, obtaining additional capital and ultimately, upon the Company attaining profitable operations. The Company will require additional funds to complete the continued development of its products, product manufacturing, and to fund expected additional losses from operations, until revenues are sufficient to cover the Company’s operating expenses. If the Company is unsuccessful in obtaining the necessary additional financing, it will most likely be forced to reduce operations. | As discussed in Note H, during the year ended September 30, 2013, the Company entered into two securities purchase agreements on November 28, 2012 and July 19, 2013, respectively, with an institutional investor (“Crede”) to sell an aggregate of $15.0 million ($7.5 million per agreement) of our securities. The total net proceeds received under these two transactions were $14.6 million ($15 million gross proceeds, less investment fees of $365,000). | |
Management believes that it will be able to raise additional funds and the Company currently has executed engagement letters with an investment bank regarding possible financings. However, the Company has no formal commitments for any future funding, and may not be able to obtain additional financing on terms acceptable to it, if at all, in the future. | Management believes that the Company’s positive cash balance and working capital as of September 30, 2013 along with its current customer base, projected cash flow and the minimum projected revenues for the next fiscal year will allow the Company to continue to improve its working capital and to have sufficient capital resources to meet projected cash flow requirements for the next twelve months from the filing date of this report. However, if the Company does not meet its minimum revenue projections for the next fiscal year, the Company may be required to seek additional capital. The Company has no commitments for any future funding, and may not be able to obtain additional financing or grants on terms acceptable to it, if at all, in the future. If the Company is unable to obtain additional capital this could restrict its ability to grow. Financing transactions may include the issuance of equity or debt securities, obtaining credit facilities, or other financing mechanisms. Even if the Company is able to raise the funds required, it is possible that it could incur unexpected costs and expenses, fail to collect significant amounts owed to the Company, or experience unexpected cash requirements that would force the Company to seek alternative financing. In accordance with its financing agreements with Crede (described below), the Company has agreed not to issue additional Common Stock or securities convertible into Common Stock at a price below the per share price issued to Crede under the Second Purchase Agreement, $11.22, or the market price of the Common Stock on the day before the registration statement was declared effective ($10.02), for a period of 180 days from the effective date of the registration statement, which was declared effective on July 31, 2013. Further, if the Company issues additional equity or debt securities, stockholders may experience additional dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of the Company’s common stock. | |
The ability of the Company to continue as a going concern is dependent on its ability to successfully accomplish the plan described in the preceding paragraphs. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty. |
LIQUIDITY
LIQUIDITY | 12 Months Ended |
Sep. 30, 2012 | |
Liquidity [Abstract] | ' |
LIQUIDITY | ' |
NOTE K — LIQUIDITY | |
The Company incurred a net loss of $7,150,712 and generated negative operating cash flow of $3,960,679 for the fiscal year ended September 30, 2012. However, the Company has attained positive working capital of $509,804 as of September 30, 2012. Subsequent to the balance sheet date, the Company entered into a securities purchase agreement with Crede CG II, Ltd. to raise $7.5 million of which the Company has received gross proceeds of $2 million through the date of this report. In connection with this purchase agreement, the Company issued warrants to Crede CG II. Ltd. to purchase additional shares of the Company’s common stock (see Subsequent Event Note). Management believes that the positive cash balance and working capital as of September 30, 2012 plus the subsequent funds raised along with the current customer base, the projected cash flow and the minimum guaranteed revenues for the next fiscal year will allow the Company to continue to improve its working capital and will have sufficient capital resources to meet projected cash flow requirements for at least one year plus a day from the date of this report. |
ACCOUNTS_PAYABLE_AND_ACCRUED_L
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
NOTE C — ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | NOTE D — ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | NOTE C — ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities at June 30, 2014 and September 30, 2013 are as follows: | Accounts payable and accrued liabilities at September 30, 2013 and 2012 are as follows: | Accounts payable and accrued liabilities at September 30, 2012 and 2011 are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||
| | | | June 30, | | | September 30, | | | | | | 2013 | | | 2012 | | | | | | 2012 | | | 2011 | | |||||||||||||||||||||||||
2014 | 2013 | | Accounts payable | | | | $ | 641,302 | | | | | $ | 473,060 | | | | Accounts payable | | | | $ | 473,060 | | | | | $ | 165,465 | | | ||||||||||||||||||||
| | | | (unaudited) | | | | | Accrued consulting fees | | | | | 102,500 | | | | | | 102,500 | | | | Accrued consulting fees | | | | | 102,500 | | | | | | 102,500 | | | ||||||||||||||
| Accounts payable | | | | $ | 904,794 | | | | | $ | 641,302 | | | | Accrued salaries payable | | | | | 220,175 | | | | | | 16,449 | | | | Accrued interest payable | | | | | — | | | | | | 415,096 | | | |||||||
| Accrued consulting fees | | | | | 102,500 | | | | | | 102,500 | | | | Other accrued expenses | | | | | 3,000 | | | | | | — | | | | Accrued salaries payable | | | | | 16,449 | | | | | | 85,000 | | | |||||||
| Accrued salaries payable | | | | | 175,009 | | | | | | 220,175 | | | | Total | | | | $ | 966,977 | | | | | $ | 592,009 | | | | Total | | | | $ | 592,009 | | | | | $ | 768,061 | | | |||||||
| Other accrued expenses | | | | | 77,136 | | | | | | 3,000 | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||
| Total | | | | $ | 1,259,439 | | | | | $ | 966,977 | | | |||||||||||||||||||||||||||||||||||||
| | | | | | | |
WARRANT_LIABILITY
WARRANT LIABILITY | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||
Jun. 30, 2014 | Sep. 30, 2013 | |||||||||||||||||||||||||||||||
Warrant Liability [Abstract] | ' | ' | ||||||||||||||||||||||||||||||
WARRANT LIABILITY | ' | ' | ||||||||||||||||||||||||||||||
NOTE D — WARRANT LIABILITY | NOTE F — WARRANT LIABILITY | |||||||||||||||||||||||||||||||
On December 16, 2013, Crede CG III, Ltd (“Crede”) effected the cashless exercise of 178,253 Series A Warrants and 116,667 Series B Warrants. At December 16, 2013 (date of exercise), the Company determined the fair value of the Warrants to be $2,455,042 using the Binomial Lattice model with the following assumptions: fair value of the Company’s Common Stock $10.80 per share; dividend yield 0%; expected term: 4.55 years; risk free interest rate: 1.55%; expected volatility of: 118.89%; and an exercise price of $14.59. The change in fair value of the warrant liability on the day of exercise amounted to a loss of $1,288,752 and was included in the results of operations. Upon exercise, the fair value of the Series A Warrants and 116,667 of the Series B Warrants were reclassified to equity. The Series A and Series B Warrants are classified as liabilities due to certain provisions contained in the warrant agreements, which may cause an adjustment to the conversion rate or the number of warrants outstanding. | As more fully described in Note H below, on November 28, 2012 the Company entered into a securities purchase agreement (“Initial Purchase Agreement”) with Crede CG II, Ltd and on July 19, 2013, the Company entered into an additional securities purchase agreement (“Second Purchase Agreement”) with Crede CG III, Ltd. (collectively referred to as “Crede” and “Purchase Agreements”). | |||||||||||||||||||||||||||||||
As of June 30, 2014 the fair value of the remaining 386,618 Series B Warrants was $1,851,723. The fair value was determined using the Binomial Lattice model with the following assumptions: fair value of the Company’s Common Stock $7.20 per share; dividend yield 0%; expected term 4.05 years; risk free interest rate: 1.27%; expected volatility of: 107.98%; and the expected price at which holders are likely to exercise their Warrants of $14.09 per share. The change in fair value of the warrant liability at June 30, 2014 resulted in a gain (loss) on change in fair value of $515,543 and ($1,663,316), respectively, for the three and nine months ended June 30, 2014, respectively. | In connection with the Purchase Agreements, the Company issued Series A, B and C Warrants allowing Crede to purchase the shares of Common Stock detailed in the table below: | |||||||||||||||||||||||||||||||
| Securities Issued | | | Initial Purchase Agreement | | | Second Purchase Agreement | | ||||||||||||||||||||||||
| | | | Shares issued | | | Price per share | | | Shares issued | | | Price per share | | ||||||||||||||||||
| Series A Warrants | | | | | 179,211 | | | | | $ | 13.39 | | | | | | 178,253 | | | | | $ | 14.59 | | | ||||||
| Series B Warrants | | | | | 492,831 | | | | | $ | 13.39 | | | | | | 490,196 | | | | | $ | 14.59 | | | ||||||
| Series C Warrants | | | | | 448,029 | | | | | $ | 13.39 | | | | | | 445,633 | | | | | $ | 14.59 | | | ||||||
| | | | | | | | | | | | | | |||||||||||||||||||
The Company determined that the Series A and B Warrants described above should be classified as a liability due to transactions which may cause an adjustment to the conversion rate (reset provisions) contained in the warrant agreements and re-measured at each reporting date at their fair value with the changes reported in earnings (loss). The Series C Warrants associated with the Initial Purchase Agreement were repurchased by the Company for $50,000 on January 22, 2013 and the Series C Warrants from the Second Purchase Agreement were repurchased on August 14, 2013 for $10,000. Liability classification of the Series A and B Warrants will end upon expiration of reset provisions, at which time the Warrants will be reclassified to equity based on their then fair value. Initial Purchase Agreement: The Company determined the allocated fair value of the Warrants to be $1,181,324 on November 28, 2012, the issuance date using the Binomial Lattice model with the following assumptions: fair value of the Company’s Common Stock $12.00 per share; dividend yield 0%; expected terms 5 years; risk free interest rate: 0.64%; expected volatility of: 146.32%; and the expected price at which holders are likely to exercise their Warrants of $13.39 per share. On April 25, 2013, Crede effected the cashless exercise of the Series A and Series B Warrants. At April 25, 2013 (date of exercise), the Company determined the fair value of the Warrants to be $7,326,553 using the Binomial Lattice model with the following assumptions: fair value of the Company’s Common Stock $13.26 per share; dividend yield 0%; expected term: 4.54 years; risk free interest rate: 0.71%; expected volatility of: 125.97%; and an exercise price of $13.39 per share. Upon exercise, the fair value of the Series A and Series B Warrants were reclassified to equity. Second Purchase Agreement: The Company determined the allocated fair value of the Warrants to be $1,280,532 on July 19, 2013, the issuance date using the Binomial Lattice model with the following assumptions: fair value of the Company’s Common Stock $11.40 per share; dividend yield 0%; expected terms 5 years; risk free interest rate: 1.31%; expected volatility of: 130.09%; and the expected price at which holders are likely to exercise their Warrants of $14.59 per share. As of September 30, 2013 the fair value of the Series A and Series B Warrants was $2,643,449. The fair value was determined using the Binomial Lattice model with the following assumptions: fair value of the Company’s Common Stock $5.40 per share; dividend yield 0%; expected terms 4.80 years; risk free interest rate: 1.39%; expected volatility of: 121.71%; and the expected price at which holders are likely to exercise their Warrants of $14.59 per share. |
CAPITAL_STOCK
CAPITAL STOCK | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ' | ' | ||||||||||||||||||||||||||||||
CAPITAL STOCK | ' | ' | ' | ||||||||||||||||||||||||||||||
NOTE E — CAPITAL STOCK | NOTE H — CAPITAL STOCK | NOTE F — CAPITAL STOCK | |||||||||||||||||||||||||||||||
The Company is authorized to issue 1,350,000,000 shares of Common Stock as the result of a vote of stockholders conducted on January 27, 2012 which effected an increase in the authorized shares of Common Stock from 800,000,000 shares to 1,350,000,000 shares. In addition, the Company is authorized to issue 10,000,000 shares of preferred stock with a $0.001 par value per share. As of June 30, 2014 and September 30, 2013, there were 13,788,872 and 13,108,783 shares of Common Stock issued and outstanding, respectively, and no shares of preferred stock outstanding. | The Company is authorized to issue 1,350,000,000 shares of Common Stock, with a $0.001 par value per share, as the result of a vote of stockholders conducted on January 27, 2012, which effected an increase in the authorized shares of Common Stock from 800,000,000 shares to 1,350,000,000 shares. In addition, the Company is authorized to issue 10,000,000 shares of preferred stock with a $0.001 par value per share. As of September 30, 2013 and 2012, there were 13,108,783 and10,769,709 shares of Common Stock issued and outstanding, respectively. | The Company is authorized to issue 1,350,000,000 shares of Common Stock, with a $0.001 par value per share, as the result of a vote of stockholders conducted on January 27, 2012, which effected an increase in the authorized shares of Common Stock from 800,000,000 shares to 1,350,000,000 shares. In addition, the Company is authorized to issue 10,000,000 shares of preferred stock with a $0.001 par value per share. As of September 30, 2012 and 2011, there were 10,769,709 and 7,888,764 shares of Common Stock issued and outstanding, respectively. | |||||||||||||||||||||||||||||||
Common Stock Transactions during the nine month period ended June 30, 2014: | Preferred and Common Stock Transactions During the Year Ended September 30, 2011: | ||||||||||||||||||||||||||||||||
On December 16, 2013, Crede effected the cashless exercise of 178,253 Series A Warrants and 116,667 Series B Warrants, and the Company thereupon issued to Crede an aggregate of 313,718 shares of its Common Stock (see Note D). | Preferred and Common Stock Transactions during the Year Ended September 30, 2013: | During the year ended September 30, 2011, the Company issued an aggregate of 14,814 shares of Common Stock valued at $65,000 for future consulting services. | |||||||||||||||||||||||||||||||
On December 20, 2013, 41,667 shares of the Company’s Common Stock were issued in connection with a settlement resulting from the termination of a consulting agreement. The fair value of the Common Stock was determined using the Company’s stock price on December 20, 2013. The total fair value of $337,500 was charged to operations. | As part of the Purchase Agreements with Crede on November 29, 2012 and July 19, 2013, the Company sold an aggregate of $15,000,000 ($7,500,000 per agreement) of its securities. The total net proceeds received under these two financings were $14,635,000 ($15,000,000 gross proceeds, less investment fees of $365,000). The table below summarizes the securities issued as part of these Purchase Agreements. | During the year ended September 30, 2011, the Company issued 250,000 shares valued at $877,500 as officer compensation. | |||||||||||||||||||||||||||||||
On February 11, 2014, 12,447 shares of the Company’s Common Stock were issued in connection with the cashless exercise of 16,667 warrants to acquire the Company’s Common Stock. | During the year ended September 30, 2011, the Company has expensed $502,082 related to stock based compensation. | ||||||||||||||||||||||||||||||||
On June 3, 2014, the Company closed a private placement of its Common Stock and warrants to purchase Common Stock with a group of investors, including members of the Company’s senior management team and the Board of Directors, pursuant to subscription agreements for gross proceeds of $2,145,956 (“Private placement”). The Company issued and sold 312,257 shares of its Common Stock at a purchase price of $6.87 per share and warrants to purchase 312,257 shares of Common Stock. The purchase price of the Common Stock represented a 5% discount to the volume weighted average closing price of the Company’s Common Stock from May 13, 2014 to May 16, 2014, which ranged from $6.93 to $7.47 per share during the period. The Warrants are exercisable at a price of $8.25 per share (representing a 20% premium to the Purchase Price) for a period of one year and do not have cashless exercise provisions. The Common Stock purchased as well as the Common Stock to be issued upon exercise of the Warrants will be subject to the six month holding period provisions of Rule 144. | | Securities Issued | | | Initial Purchase Agreement | | | Second Purchase Agreement | | ||||||||||||||||||||||||
On July 8, 2014, the Company closed on an additional subscription agreement under this private placement, with the same terms as disclosed above. The Company issued and sold 1,500 shares of its Common Stock and warrants to purchase 1,500 shares of Common Stock for total proceeds of $10,309. | | | | | Shares issued | | | Price per share | | | Shares issued | | | Price per share | | ||||||||||||||||||
This Private placement triggered the anti-dilution provision of the remaining Crede Series B warrants, as the purchase price of the Common Stock and the exercise price of the Warrants issued with the Private placement were below the exercise price in effect for the Crede Series B warrants. The exercise price of the Crede Series B warrants was adjusted from $14.59 to $14.09 per share and the number of warrants increased from 373,529 to 386,618 as of June 30, 2014. The Crede Series B warrants were further diluted with the issuance on July 8, 2014 to an exercise price of $14.06 and the warrants increased to 387,621 (see Note D). | | Common Stock | | | | | 179,211 | | | | | $ | 11.16 | | | | | | 178,253 | | | | | $ | 11.22 | | | ||||||
| Series A Warrants | | | | | 179,211 | | | | | $ | 13.39 | | | | | | 178,253 | | | | | $ | 14.59 | | | |||||||
| Series B Warrants | | | | | 492,831 | | | | | $ | 13.39 | | | | | | 490,196 | | | | | $ | 14.59 | | | |||||||
| Series C Warrants | | | | | 448,029 | | | | | $ | 13.39 | | | | | | 445,633 | | | | | $ | 14.59 | | | |||||||
| Series A Preferred Stock | | | | | 5,500 | | | | | $ | 1,000 | | | | | | — | | | | | $ | — | | | |||||||
| Series B Preferred Stock | | | | | — | | | | | $ | — | | | | | | 5,500 | | | | | $ | 1,000 | | | |||||||
| | | | | | | | | | | | | | ||||||||||||||||||||
The Series A and Series B Preferred contained weighted average anti-dilution protection. The Series A and Series B Preferred did not accrue dividends except to the extent dividends were paid on the Common Stock. The Company’s Common Stock was junior in rank to the Series A and Series B Preferred with respect to preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Company. The Series A and Series B Preferred generally had no voting rights except as required by law. The Series A and Series B Preferred were converted into Common Stock as set forth below. | |||||||||||||||||||||||||||||||||
Crede may exercise Series A and Series B Warrants by paying in cash or on a cashless basis by exchanging such Warrants for Common Stock using the Black-Scholes value. In the event that the Common Stock trades at a price 25% or more above the exercise price of the Series A and Series B Warrants for a period of 20 consecutive days (with average daily dollar volume of Common Stock on the OTC Bulletin Board at least equal to $300,000), the Company may obligate Crede to exercise such Warrants for cash. | |||||||||||||||||||||||||||||||||
Pursuant to registration rights agreements between the Company and Crede, the Company filed registration statements within 30 days of the Initial Closing of both purchase agreements. The registration statements covered the resale of all shares of Common Stock issuable pursuant to the Purchase Agreements, including the shares of Common Stock underlying the Series A and Series B Preferred and Series A, B and C Warrants. The Company has agreed to prepare and file amendments and supplements to the registration statements to the extent necessary to keep the registration statements effective for the period of time required under the Purchase Agreements. | |||||||||||||||||||||||||||||||||
The Series A and Series B Preferred and the Series A, B and C Warrants each contain a 9.9% “blocker” so that in no event shall the Series A and Series B Preferred or any of the Series A, B and C Warrants be | |||||||||||||||||||||||||||||||||
convertible or exercisable (including through the cashless exercise exchange provision) into or for Common Stock to the extent that such conversion or exercise would result in Crede having “beneficial ownership” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended) of more than 9.9% of the Common Stock. Crede would, however, have the right from time to time to convert, exercise or exchange for shares of Common Stock, which over time would aggregate to greater than 9.9% beneficial ownership if all such shares of Common Stock so acquired had been held at one time by Crede. | |||||||||||||||||||||||||||||||||
Crede has the right to participate in other equity or equity-linked financings completed by the Company for a period of 180 days from the date the registration statement went effective on July 30, 2013. | |||||||||||||||||||||||||||||||||
In addition, the Company has agreed not to issue additional Common Stock or securities convertible into Common Stock at a price below the per share price issued to Crede under the Second Purchase Agreement, $11.22, or the market price of the Common Stock on the day before the registration statement was declared effective ($10.02), for a period of 180 days from the effective date of the registration statement, except for issuances (i) pursuant to acquisitions, joint ventures, license arrangements, leasing arrangements and other similar arrangements, (ii) to employees, consultants, directors and officers approved by the Board or pursuant to a plan approved by the Board, (iii) pursuant to one or more contracts entered into by the Company with third parties which would result in revenues to the Company during a three-month period equal to an annual run rate of $15 Million in revenues and (iv) pursuant to a contract entered into by the Company with a third party which would reasonably be expected to result in more than $3 Million in annual receivables. | |||||||||||||||||||||||||||||||||
Until one year after the Second Closing, which occurred on July 31, 2013, the Company is prohibited from entering into any transaction to (i) sell any convertible securities at a conversion rate or other price that is generally based on and/or varies with the trading prices of the Company’s Common Stock at any time after the initial issuance of such convertible securities or (ii) sell securities at a future determined price, including, without limitation, an “equity line of credit” or an “at the market offering.” | |||||||||||||||||||||||||||||||||
On January 8, 2013, Crede exercised its option and converted the Series A Preferred into 424,383 shares or the Company’s Common Stock at a conversion price of $12.96 per share and on April 25, 2013, Crede effected the cashless exercise of the Series A and Series B Warrants related to the Initial Purchase Agreement. Also, on August 14, 2013, the Company exercised its option and converted the Series B Preferred into 705,128 shares of the Company’s Common Stock at a conversion price of $7.80 per share. On January 22, 2013, the Company exercised its option to repurchase the Series C warrants related to the Initial Purchase Agreement and on August 14, 2013, the Company exercised its option to repurchase the Series C Warrants related to the Second Purchase Agreement for $50,000 and $10,000, respectively. |
STOCK_OPTIONS_AND_WARRANTS
STOCK OPTIONS AND WARRANTS | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK OPTIONS AND WARRANTS | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTE F — STOCK OPTIONS AND WARRANTS | NOTE I — STOCK OPTIONS AND WARRANTS | NOTE G — STOCK OPTIONS AND WARRANTS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants | Warrants | Warrants | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table summarizes the changes in warrants outstanding and the related prices for the shares of Common Stock issued to non-employees of the Company. These warrants were granted in lieu of cash compensation for services performed or financing expenses in connection with the sale of Common Stock. | The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company’s Common Stock issued to non-employees of the Company. These warrants were granted in lieu of cash compensation for services performed or financing expenses in connection with the sale of the Company’s Common Stock. | The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company’s Common Stock issued to non-employees of the Company. These warrants were granted in lieu of cash compensation for services performed or financing expenses in connection with the sale of the Company’s Common Stock. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions involving warrants (see Note E) are summarized as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercise | | | Number | | | Warrants | | | Weighted | | | Weighted | | | Exercisable | | | Exercise | | | Number | | | Warrants | | | Weighted | | | Weighted | | | Exercisable | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | Number of | | | Weighted | | Prices | Outstanding | Outstanding | Average | Average | Weighted | Prices | Outstanding | Outstanding | Average | Average | Weighted | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Average Exercise | Remaining | Exercise | Exercisable | Average | Remaining | Exercise | Exercisable | Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price Per Share | Contractual | Price | Exercise | Contractual | Price | Exercise | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at October 1, 2013 | | | | | 983,888 | | | | | $ | 11.44 | | | Life (Years) | Price | Life (Years) | Price | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Granted | | | | | 325,346 | | | | | | 8.48 | | | | | $2.40 | | | | | | 50,000 | | | | | | 1.92 | | | | | $ | 2.4 | | | | | | 50,000 | | | | | $ | 2.4 | | | | | $1.85 | | | | | | 26,985 | | | | | | 5.17 | | | | | $ | 1.85 | | | | | | 26,985 | | | | | $ | 1.85 | | | ||||||||||||||||||||||||
| Exercised | | | | | (311,586 | ) | | | | | | (13.47 | ) | | | | | $2.64 | | | | | | 8,513 | | | | | | 3.79 | | | | | $ | 2.64 | | | | | | 8,513 | | | | | $ | 2.64 | | | | | $1.97 | | | | | | 5,924 | | | | | | 5.14 | | | | | $ | 1.97 | | | | | | 5,924 | | | | | $ | 1.97 | | | ||||||||||||||||||||||
| Cancelled or expired | | | | | (55,000 | ) | | | | | | (14.00 | ) | | | | | $2.85 | | | | | | 63,158 | | | | | | 4.79 | | | | | $ | 2.85 | | | | | | 63,158 | | | | | $ | 2.85 | | | | | $2.40 | | | | | | 50,000 | | | | | | 2.92 | | | | | $ | 2.4 | | | | | | 50,000 | | | | | $ | 2.4 | | | ||||||||||||||||||||||
| Balance, June 30, 2014 | | | | | 942,648 | | | | | $ | 9.6 | | | | | $3.32 | | | | | | 3,768 | | | | | | 4.27 | | | | | $ | 3.32 | | | | | | 3,768 | | | | | $ | 3.32 | | | | | $2.64 | | | | | | 33,485 | | | | | | 4.79 | | | | | $ | 2.64 | | | | | | 33,485 | | | | | $ | 2.64 | | | ||||||||||||||||||||||||
| | | | | | | | | | $3.60 | | | | | | 33,333 | | | | | | 0.39 | | | | | $ | 3.6 | | | | | | 33,333 | | | | | $ | 3.6 | | | | | $2.85 | | | | | | 84,211 | | | | | | 5.79 | | | | | $ | 2.85 | | | | | | 84,211 | | | | | $ | 2.85 | | | |||||||||||||||||||||||||||||||
| | $4.26 | | | | | | 16,667 | | | | | | 1.32 | | | | | $ | 4.26 | | | | | | 16,667 | | | | | $ | 4.26 | | | | | $3.32 | | | | | | 15,072 | | | | | | 5.27 | | | | | $ | 3.32 | | | | | | 15,072 | | | | | $ | 3.32 | | | |||||||||||||||||||||||||||||||||||||||
Employee Stock Options | | | $5.40 | | | | | | 115,000 | | | | | | 2.92 | | | | | $ | 5.4 | | | | | | 115,000 | | | | | $ | 5.4 | | | | | $3.60 | | | | | | 200,000 | | | | | | 2.38 | | | | | $ | 3.6 | | | | | | 200,000 | | | | | $ | 3.6 | | | ||||||||||||||||||||||||||||||||||||||
In 2005, the Board of Directors and holders of a majority of the outstanding shares of Common Stock approved the 2005 Incentive Stock Plan, In 2007, 2008 and 2012, the Board of Directors and holders of a majority of the outstanding shares of Common Stock approved various increases in the number of shares of Common Stock that can be issued as stock awards and stock options thereunder to an aggregate of 5,833,333 shares and the number of shares of Common Stock that can be covered by awards made to any participant in any calendar year to 833,333 shares. | | | $10.74 | | | | | | 1,667 | | | | | | 2.1 | | | | | $ | 10.74 | | | | | | 1,667 | | | | | $ | 10.74 | | | | | $4.26 | | | | | | 16,667 | | | | | | 2.32 | | | | | $ | 4.26 | | | | | | — | | | | | $ | — | | | ||||||||||||||||||||||||||||||||||||||
The 2005 Incentive Stock Plan is designed to retain directors, executives, and selected employees and consultants by rewarding them for making contributions to the Company’s success with an award of options to purchase shares of Common Stock. As of June 30, 2014, a total of 211,250 shares have been issued and options to purchase 3,345,566 shares have been granted under the 2005 Incentive Stock Plan. | | | $12.84 | | | | | | 1,667 | | | | | | 2.6 | | | | | $ | 12.84 | | | | | | — | | | | | $ | — | | | | | $5.40 | | | | | | 165,000 | | | | | | 3.92 | | | | | $ | 5.4 | | | | | | 165,000 | | | | | $ | 5.4 | | | ||||||||||||||||||||||||||||||||||||||
The following table summarizes the changes in options outstanding and the related prices for the shares of Common Stock issued to employees of the Company under the 2005 Incentive Stock Plan: | | | $14.59 | | | | | | 668,449 | | | | | | 4.8 | | | | | $ | 14.59 | | | | | | 668,449 | | | | | $ | 14.59 | | | | | $6.00 | | | | | | 25,000 | | | | | | 0.48 | | | | | $ | 6 | | | | | | 25,000 | | | | | $ | 6 | | | ||||||||||||||||||||||||||||||||||||||
Transactions involving stock options issued to employees are summarized as follows: | | | $30.00 | | | | | | 21,667 | | | | | | 0.12 | | | | | $ | 30 | | | | | | 21,667 | | | | | $ | 30 | | | | | $30.00 | | | | | | 141,667 | | | | | | 0.34 | | | | | $ | 30 | | | | | | 141,667 | | | | | $ | 30 | | | ||||||||||||||||||||||||||||||||||||||
| | | | | | | 983,889 | | | | | | 4.1 | | | | | $ | 11.86 | | | | | | 982,222 | | | | | $ | 11.78 | | | | | | | | | | 764,011 | | | | | | 2.97 | | | | | $ | 8.4 | | | | | | 747,344 | | | | | $ | 8.7 | | | |||||||||||||||||||||||||||||||||||||||||
| | | | Number of | | | Weighted | | | Aggregate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Average Exercise | Intrinsic Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price Per Share | Transactions involving warrants are summarized as follows: | Transactions involving warrants are summarized as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outstanding at October 1, 2013 | | | | | 2,024,237 | | | | | $ | 3.78 | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Granted | | | | | 1,221,346 | | | | | | 6.02 | | | | | | | | | | | | | Number of | | | Weighted Average | | | | | | Number of | | | Weighted Average Price Per Share | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercised | | | | | — | | | | | | — | | | | | | | | | Shares | Price Per Share | Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cancelled or expired | | | | | (83 | ) | | | | | | 5.31 | | | | | | | | | | Balance, September 30, 2011 | | | | | 970,088 | | | | | $ | 8.4 | | | | Balance, September 30, 2010 | | | | | 1,153,466 | | | | | $ | 14.22 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outstanding at June 30, 2014 | | | | | 3,245,500 | | | | | $ | 4.61 | | | | | | | | | | Granted | | | | | 17,917 | | | | | | 4.26 | | | | Granted | | | | | 198,289 | | | | | | 2.64 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vested at June 30, 2014 | | | | | 2,185,550 | | | | | $ | 4.02 | | | | | $ | 3.72 | | | | Exercised | | | | | (83,994 | ) | | | | | | (2.70 | ) | | | | Exercised | | | | | — | | | | | | — | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-vested at June 30, 2014 | | | | | 1,059,950 | | | | | | | | | | | $ | 1.8 | | | | Cancelled or expired | | | | | (140,000 | ) | | | | | | (9.66 | ) | | | | Cancelled or expired | | | | | (381,667 | ) | | | | | | (23.04 | ) | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | Balance at September 30, 2012 | | | | | 764,011 | | | | | $ | 8.7 | | | | Balance at September 30, 2011 | | | | | 970,088 | | | | | $ | 8.4 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Granted | | | | | 2,237,487 | | | | | | 13.98 | | | | Granted | | | | | 17,917 | | | | | | 4.26 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions involving stock options issued to employees and consultants during the nine month period ended June 30, 2014 are summarized as follows: | | Exercised | | | | | (1,003,948 | ) | | | | | | (10.20 | ) | | | | Exercised | | | | | (83,994 | ) | | | | | | (2.70 | ) | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On October 14, 2013, the Company granted an aggregate of 122,950 options to purchase the Company’s Common Stock at an exercise price of $5.32 per share for five years to employees. 89,617 of these options vest at 25% each anniversary for the next four years and 33,333 of these options vest immediately. | | Cancelled or expired | | | | | (1,013,661 | ) | | | | | | (15.88 | ) | | | | Cancelled or expired | | | | | (140,000 | ) | | | | | | (9.66 | ) | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On October 17, 2013, the Company granted Dr. James A. Hayward, Chairman, CEO and President and Dr. Ming-Hwa Liang, Chief Technology Officer and Secretary of the Company options to purchase 833,333 and 50,000 shares of the Company’s Common Stock, respectively, at an exercise price of $5.82 per share for five years with vesting at 25% each anniversary for the next four years. Also on October 17, 2013, the Company granted an aggregate of 62,963 options to non-employee board of director members at an exercise price of $5.82 per share for five years with immediate vesting. | | Balance, September 30, 2013 | | | | | 983,889 | | | | | $ | 11.86 | | | | Balance, September 30, 2012 | | | | | 764,011 | | | | | $ | 8.7 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On November 28, 2013, the Company granted 4,167 options to purchase the Company’s Common Stock at an exercise price of $6.96 per share for five years to an employee with vesting at 25% each anniversary for the next four years. | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 2, 2013, the Company granted 33,333 options to purchase the Company’s Common Stock at an exercise price of $7.02 per share for five years to an employee with vesting at 25% each anniversary for the next four years. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 10, 2013, the Company granted an aggregate of 35,433 options to purchase the Company’s Common Stock at an exercise price of $8.16 per share for five years to employees, with immediate vesting. | On October 31, 2011, warrants totaling 1,250 were issued in connection with services. The warrants are exercisable for three years from the date of issuance at an exercise price of $4.20 per share with vesting immediately. The fair value of the warrants of $1,363 was determined using the Black Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 157.69% and risk free rate from 0.41% and were charged to operations during the year ended September 30, 2012. | In the month of November 2010, warrants totaling 49,365 were issued in connection with services provided in connection with the issuance of convertible notes. The warrants are exercisable for seven years from the date of issuance at exercise prices from $1.85 to $1.97 per share. The fair values of the warrants were determined using the Black-Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 169.06% to 169.21% and risk free rate from 2.16% to 2.20%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On February 6, 2014, the Company granted 41,667 options to purchase the Company’s Common Stock at an exercise price of $9.60 per share for five years to a consultant, with immediate vesting. | On January 25, 2012, warrants totaling 16,667 were issued in connection with services. The warrants are exercisable for three years from the date of issuance at an exercise price of $4.26 per share and will vest in full on the first anniversary of the date of grant. The fair value of the warrants of $56,875 was determined using the Black Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 147.53% and risk free rate from 0.81% and were charged to operations during the year ended September 30, 2012. | The determined fair value of $120,840 is charged ratably to current period operations over one year. During the years ended September 30, 2012 and 2011, $18,851 and $101,989 was charged to operations, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On February 23, 2014 the Company extended the term of 16,667 options that were set to expire on that date. The Company recorded $43,401 of stock compensation expense for the three and nine month periods ended June 30, 2014 in connection with this modification as the incremental difference between the fair value of the stock options immediately before and after the modification. | In September 2012, the Company issued an aggregate of 83,536 shares of Common Stock in settlement of 83,944 warrants exercised on a cashless basis. | In the month of January 2011, warrants totaling 22,608 were issued in connection with services provided in connection with the issuance of convertible notes. The warrants are exercisable for seven years from the date of issuance at an exercise price of $3.32 per share. The fair values of the warrants were determined using the Black-Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 170.33% and risk free rate of 2.69%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On April 14, 2014, the Company granted 33,333 options to purchase the Company’s Common Stock at an exercise price of $6.60 per share for five years to an employee with vesting at 25% each anniversary for the next four years. | On November 7, 2012, 1,667 warrants were issued in connection with services. The warrants are exercisable on or after May 7, 2013 for three years at an exercise price of $10.74 per share. The fair value of the warrants of $13,238 was determined using the Black Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 129.56% and risk free rate from 0.36% and were charged to current period operations. | The determined fair value of $97,131 is charged ratably to current period operations over one year. During the years ended September 30, 2012 and 2011, $26,478 and $70,653 was charged to operations, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On May 1, 2014, the Company granted 4,167 options to purchase the Company’s Common Stock at an exercise price of $6.89 per share for five years to an employee with vesting at 25% each anniversary for the next four years. | On November 29, 2012, in connection the Initial Purchase Agreement, as described in Note H above, the Company issued an aggregate of 1,120,072 warrants to purchase the Company’s common stock exercisable for one to five years after defined date or events, at an exercise price of $13.39 per share. | During the month of July 2011, warrants totaling 126,316 were issued in connection with the sale of the Company’s Common Stock. The warrants are exercisable for seven years from the date of issuance at an exercise price of $2.85 per share. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The fair value of options granted during the three and nine month periods ended June 30, 2014 was determined using the Black Scholes Option Pricing Model with the following weighted average assumptions: | In March 2013, the Company issued an aggregate of 25,000 shares of its common stock in connection with the exercise of warrants at an exercise price of $6.00 per share with net proceeds of $150,000. | On August 12, 2011, the Company extended the expiration date of previously issued warrants exercisable at $5.40 per share to consultants. The warrants were extended from September 1, 2011 to September 1, 2016. The change in fair value of the warrants of $194,424 was charged to current period operations and was determined using the Black Scholes Option Pricing model with the following assumptions: dividend yield $-0-, volatility of 162.03% and risk free rate from 0.01% to 0.32%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In April 2013, the Company issued 188,090 shares of its common stock in connection with the cashless exercise of 257,306 warrants to acquire the Company’s stock at a weighted average exercise price of $3.78 per share. | On October 31, 2011, warrants totaling 1,250 were issued in connection with services. The warrants are exercisable for three years from the date of issuance at an exercise price of $4.20 per share with vesting immediately. The fair value of the warrants of $1,363 was determined using the Black Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 157.69% and risk free rate from 0.41% and were charged to current period operations. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | Three Months | | | Nine Months | | In May 2013, the Company issued 40,316 shares of its common stock in connection with the cashless exercise of 49,599 warrants to acquire the Company’s stock at a weighted average exercise price of $2.52 per share. | On January 25, 2012, warrants totaling 16,667 were issued in connection with services. The warrants are exercisable for three years from the date of issuance at an exercise price of $4.26 per share and will vest in full on the first anniversary of the date of grant. The fair value of the warrants of $56,875 was determined using the Black Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 147.53% and risk free rate from 0.81% and were charged to current period operations. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ended | Ended | On May 7, 2013, 1,667 warrants were issued in connection with services. The warrants are exercisable on or after November 7, 2013 for three years at an exercise price of $12.84 per share. The fair value of the warrants of $15,018 was determined using the Black Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 119.72% and risk free rate from 0.35% and were charged to current period operations. | In September 2012, the Company issued an aggregate of 83,536 shares of Common Stock in settlement of 83,994 warrants exercised on a cashless basis. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2014 | June 30, 2014 | As described in Note H above, on January 22, 2013, the Company exercised its option to repurchase 448,029 Series C Warrants issued to Crede under the Initial Purchase Agreement for $50,000. On April 25, 2013, under the Initial Purchase Agreement, Crede effected the cashless exercise of 179,211 Series A Warrants and 492,831 Series B Warrants, and the Company thereupon issued to Crede an aggregate of 520,951 shares of its Common Stock. | Employee Stock Options | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock price | | | | $ | 7.47 | | | | | $ | 6.07 | | | On July 19, 2013, in connection the Second Purchase Agreement, as described in Note H above, the Company issued an aggregate of 1,114,082 warrants to purchase the Company’s common stock exercisable for one to five years after defined date or events, at an exercise price of $14.59 per share. | On January 26, 2005, the Board of Directors, and on February 15, 2005, the holders of a majority of the outstanding shares of Common Stock approved the 2005 Incentive Stock Plan and authorized the issuance of 266,667 shares of Common Stock as stock awards and stock options thereunder. On May 16, 2007, at the annual meeting of stockholders, the holders of a majority of the outstanding shares of Common Stock approved an increase in the number of shares subject to the 2005 Incentive Stock Plan to 333,333 shares of Common Stock. On June 17, 2008, the Board of Directors unanimously adopted anamendment to the 2005 Incentive Stock Plan that increased the total number of shares of Common Stock issuable pursuant to the 2005 Incentive Stock Plan from a total of 333,333 shares to a total of 1,666,667 shares, which was approved by our stockholders at the 2008 annual meeting of stockholders held on December 16, 2008. On November 30, 2011, the Board of Directors unanimously adopted an amendment to the 2005 Incentive Stock Plan that increased the total number of shares of Common Stock issuable thereunder to 5,833,333 and the number of shares of Common Stock that can be covered by awards made to any participant in any calendar year to 833,333, which was approved by our stockholders at the 2012 annual meeting of stockholders held on January 27, 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercise price | | | | $ | 5.81 | | | | | $ | 7.29 | | | On August 14, 2013, the Company exercised its option to repurchase 445,633 Series C Warrants issued to Crede under the Second Purchase Agreement for $10,000, as described in Note H above. | The 2005 Incentive Stock Plan is designed to retain directors, executives, and selected employees and consultants by rewarding them for making contributions to our success with an award of options to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividend yield | | | | | 0 | % | | | | | | 0 | % | | | Employee Stock Options | purchase shares of Common Stock. As of September 30, 2012, a total of 169,583 shares have been issued and options to purchase 2,086,814 shares have been granted under the 2005 Incentive Stock Plan. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Volatility | | | | | 110.46 | % | | | | | | 112.19 | % | | | In 2005, the Board of Directors and the holders of a majority of the outstanding shares of Common Stock approved the 2005 Incentive Stock Plan. In 2007, 2008 and 2012, the Board of Directors and holders of a majority of the outstanding shares of Common Stock approved various increases in the number of shares of Common Stock that can be issued as stock awards and stock options thereunder to an aggregate | The following table summarizes the changes in options outstanding and the related prices for the shares of the Company’s Common Stock issued to employees of the Company under the 2005 Incentive Stock Plan: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Risk free rate | | | | | 1.19 | % | | | | | | 0.95 | % | | | 5,833,333 shares and the number of shares of Common Stock that can be covered by awards made to any participant in any calendar year to 833,333 shares. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | The 2005 Incentive Stock Plan is designed to retain directors, executives, and selected employees and consultants by rewarding them for making contributions to our success with an award of options to purchase shares of Common Stock. As of September 30, 2013, a total of 169,583 shares have been issued and options to purchase 2,086,814 shares have been granted under the 2005 Incentive Stock Plan. | | Options Outstanding | | | Options Exercisable | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table summarizes the changes in options outstanding and the related prices for the shares of the Company’s Common Stock issued to employees of the Company under the 2005 Incentive Stock Plan: | | Exercise | | | Number | | | Weighted | | | Weighted | | | Number | | | Weighted | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Company recorded $404,507 and $1,717,837 as stock compensation expense for the three and nine month periods ended June 30, 2014, respectively, and $870,576 and $1,743,598 for the three and nine month periods ended June 30, 2013, respectively, for the vesting portion of all employee options outstanding and the stock option modifications. As of June 30, 2014, unrecorded compensation cost related to non-vested awards was $3,625,140, which is expected to be recognized over a weighted average period of approximately 3.25 years. | Prices | Outstanding | Average | Average | Exercisable | Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Options Outstanding | | | Options Exercisable | | Remaining Contractual | Exercise | Exercise | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercise | | | Number | | | Weighted | | | Weighted | | | Number Exercisable | | | Weighted | | Life (Years) | Price | Price | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prices | Outstanding | Average | Average | Average | | | $3.00 | | | | | | 483,333 | | | | | | 2.65 | | | | | $ | 3 | | | | | | 483,333 | | | | | $ | 3 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining Contractual | Exercise | Exercise | | | $3.51 | | | | | | 833,333 | | | | | | 5.79 | | | | | $ | 3.51 | | | | | | 520,833 | | | | | $ | 3.51 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Life (Years) | Price | Price | | | $3.60 | | | | | | 501,668 | | | | | | 2.76 | | | | | $ | 3.6 | | | | | | 375,000 | | | | | $ | 3.6 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | $3.00 | | | | | | 400,000 | | | | | | 1.65 | | | | | $ | 3 | | | | | | 400,000 | | | | | $ | 3 | | | | | $3.90 | | | | | | 10,580 | | | | | | 4.18 | | | | | $ | 3.9 | | | | | | 10,580 | | | | | $ | 3.9 | | | |||||||||||||||||||||||||||||||||||||||
| | $3.51 | | | | | | 833,333 | | | | | | 4.79 | | | | | $ | 3.51 | | | | | | 833,333 | | | | | $ | 3.51 | | | | | $4.08 | | | | | | 95,400 | | | | | | 4.17 | | | | | $ | 4.08 | | | | | | 95,400 | | | | | $ | 4.08 | | | |||||||||||||||||||||||||||||||||||||||
| | $3.60 | | | | | | 500,000 | | | | | | 1.76 | | | | | $ | 3.6 | | | | | | 500,000 | | | | | $ | 3.6 | | | | | $4.20 | | | | | | 47,500 | | | | | | 2.67 | | | | | $ | 4.2 | | | | | | 19,792 | | | | | $ | 4.2 | | | |||||||||||||||||||||||||||||||||||||||
| | $3.90 | | | | | | 10,580 | | | | | | 3.18 | | | | | $ | 3.9 | | | | | | 10,580 | | | | | $ | 3.9 | | | | | $5.40 | | | | | | 25,000 | | | | | | 3.92 | | | | | $ | 5.4 | | | | | | 25,000 | | | | | $ | 5.4 | | | |||||||||||||||||||||||||||||||||||||||
| | $4.08 | | | | | | 79,500 | | | | | | 3.17 | | | | | $ | 4.08 | | | | | | 79,500 | | | | | $ | 4.08 | | | | | $6.60 | | | | | | 90,000 | | | | | | 0.71 | | | | | $ | 6.6 | | | | | | 90,000 | | | | | $ | 6.6 | | | |||||||||||||||||||||||||||||||||||||||
| | $4.20 | | | | | | 47,500 | | | | | | 1.67 | | | | | $ | 4.2 | | | | | | 31,667 | | | | | $ | 4.2 | | | | | | | | | | 2,086,814 | | | | | | 3.94 | | | | | $ | 3.6 | | | | | | 1,619,938 | | | | | $ | 3.6 | | | ||||||||||||||||||||||||||||||||||||||||
| | $5.40 | | | | | | 25,000 | | | | | | 2.92 | | | | | $ | 5.4 | | | | | | 25,000 | | | | | $ | 5.4 | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | $6.60 | | | | | | 90,000 | | | | | | 4.71 | | | | | $ | 6.6 | | | | | | 90,000 | | | | | $ | 6.6 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | $10.79 | | | | | | 34,989 | | | | | | 4.17 | | | | | $ | 10.79 | | | | | | — | | | | | $ | — | | | Transactions involving stock options issued to employees are summarized as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | $11.58 | | | | | | 1,667 | | | | | | 4.75 | | | | | $ | 11.58 | | | | | | — | | | | | $ | — | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | $12.00 | | | | | | 1,667 | | | | | | 4.63 | | | | | $ | 12 | | | | | | — | | | | | $ | — | | | | | | | Number of | | | Weighted Average | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | 2,024,236 | | | | | | 3.23 | | | | | $ | 3.78 | | | | | | 1,970,080 | | | | | $ | 3.63 | | | Shares | Exercise | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | Price Per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outstanding at October 1, 2010 | | | | | 1,115,000 | | | | | $ | 3.6 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions involving stock options issued to employees are summarized as follows: | | Granted | | | | | 895,833 | | | | | | 3.6 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercised | | | | | — | | | | | | — | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | Number of | | | Weighted Average | | | Aggregate | | | Cancelled or expired | | | | | — | | | | | | — | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Exercise Price | Intrinsic | | Outstanding at September 30, 2011 | | | | | 2,010,833 | | | | | $ | 3.6 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per Share | Value | | Granted | | | | | 109,314 | | | | | | 4.02 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outstanding at October 1, 2011 | | | | | 2,010,833 | | | | | $ | 3.6 | | | | | | | | | | Exercised | | | | | (8,333 | ) | | | | | | (4.80 | ) | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Granted | | | | | 109,314 | | | | | | 4.02 | | | | | | | | | | Expired | | | | | (25,000 | ) | | | | | | (4.80 | ) | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercised | | | | | (8,333 | ) | | | | | | (4.80 | ) | | | | | | | | | | Outstanding at September 30, 2012 | | | | | 2,086,814 | | | | | $ | 3.6 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cancelled or expired | | | | | (25,000 | ) | | | | | | (4.80 | ) | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outstanding at September 30, 2012 | | | | | 2,086,814 | | | | | $ | 3.6 | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Granted | | | | | 38,323 | | | | | | 10.88 | | | | | | | | | On December 13, 2010, the Company granted 25,000 options to purchase the Company’s Common Stock at an exercise price of $4.20 per share for five years to an employee with vesting at 25% each anniversary for the next four years. The fair value of options was determined using the Black Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 171.29% and risk free rate of 0.98%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercised | | | | | (99,650 | ) | | | | | | (2.52 | ) | | | | | | | | | On January 4, 2011, the Company granted 33,333 options to purchase the Company’s Common Stock at an exercise price of $4.80 per share for five years to an employee with vesting at 25% each anniversary for the next four years. The fair value of options was determined using the Black-Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 170.62% and risk free rate of 2.01%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cancelled or expired | | | | | (1,251 | ) | | | | | | (3.60 | ) | | | | | | | | | On July 11, 2011, the Company granted an aggregate of 833,333 options to purchase the Company’s Common Stock at an exercise price of $3.51 per share for seven years to key officers with vesting as follows: 25% immediately, 37.5% each anniversary for the next two years with vesting acceleration dependent on defined revenue targets. The fair value of options was determined using the Black-Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 162.37% and risk free rate of 2.22%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outstanding at September 30, 2013 | | | | | 2,024,236 | | | | | $ | 3.78 | | | | | | | | | On August 1, 2011, the Company granted 4,167 options to purchase the Company’s Common stock at an exercise price of $4.20 per share for five years to an employee with vesting at 25% each anniversary for the next four years. The fair value of options was determined using the Black-Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 162.43% and risk free rate of 1.32%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vested at September 30, 2013 | | | | | 1,970,080 | | | | | | | | | | | $ | 8.16 | | | On August 12, 2011, the Company extended the expiry date of previously issued options exercisable at $5.40 per share to key officers. The fully vested options were extended from September 1, 2011 to September 1, 2016. The change in fair value of the options of $544,386 was charged to current period operations and was determined using the Black-Scholes Option Pricing model with the following assumptions: dividend yield $-0-, volatility of 162.03% and risk free rate from 0.01% to 0.32%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-vested at September 30, 2013 | | | | | 54,156 | | | | | | | | | | | $ | 3.3 | | | On November 30, 2011, the Company granted an aggregate of 95,400 options to purchase the Company’s Common Stock at an exercise price of $4.08 per share for five years to directors with immediate vesting. The fair value of options was determined using the Black-Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 156.65% and risk free rate of 0.96%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | On December 6, 2011, the Company granted an aggregate of 10,580 options to purchase the Company’s Common Stock at an exercise price of $3.90 per share for five years to directors with immediate vesting. The fair value of options was determined using the Black-Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 156.29% and risk free rate of 0.94%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On February 8, 2012, the Company granted 1,667 options to purchase the Company’s Common Stock at an exercise price of $4.20 per share for five years to an employee with vesting at 25% each anniversary for the next four years. The fair value of options was determined using the Black-Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 152.56% and risk free rate of 0.82%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On November 30, 2011, the Company granted an aggregate of 95,400 options to purchase the Company’s Common Stock at an exercise price of $4.08 per share for five years to directors with immediate vesting. The fair value of options was determined using the Black-Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 156.65% and risk free rate of 0.96%. | On March 16, 2012, the Company granted 1,667 options to purchase the Company’s Common Stock at an exercise price of $3.60 per share for five years to an employee with vesting at 25% each anniversary for the next four years. The fair value of options was determined using the Black-Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 149.81% and risk free rate of 1.13%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 6, 2011, the Company granted an aggregate of 10,580 options to purchase the Company’s Common Stock at an exercise price of $3.90 per share for five years to two directors with immediate vesting. The fair value of options was determined using the Black-Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 156.29% and risk free rate of 0.94%. | On September 24, 2012, the Company issued 5,819 shares of Common Stock in settlement of 8,333 options exercised on a cashless basis and the remaining 25,000 options expired. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On February 8, 2012, the Company granted 1,667 options to purchase the Company’s Common Stock at an exercise price of $4.20 per share for five years to an employee with vesting at 25% each anniversary for the next four years. The fair value of options was determined using the Black-Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 152.56% and risk free rate of 0.82%. | The Company recorded $1,953,844 and $1,485,068 as stock compensation expense for the years ended September 30, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On March 16, 2012, the Company granted 1,667 options to purchase the Company’s Common Stock at an exercise price of $3.60 per share for five years to an employee with vesting at 25% each anniversary for the next four years. The fair value of options was determined using the Black-Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 149.81% and risk free rate of 1.13%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On September 24, 2012, the Company issued 5,819 shares of Common Stock in settlement of 8,333 options exercised on a cashless basis and the remaining 25,000 options expired. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On November 30, 2012, the Company granted an aggregate of 34,989 options to non-employee board of director members (except Mr. Catenacci) under the 2005 Incentive Stock Plan. The options are exercisable at $10.79 per share for five years, vesting one year from the date of issuance. The fair value of options was determined using the Black Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 146.33% and risk free rate of 0.82%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On May 12, 2013, the Company granted an aggregate of 1,667 options to an employee under the 2005 Incentive Stock Plan. The options are exercisable at $12.00 per share for five years, vesting at 25% each anniversary for the next four years. The fair value of the options was determined using the Black Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 117.57% and risk free rate of 0.60%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On May 15, 2013 the Company extended the term of 90,000 options that were set to expire to June 16, 2018. The Company recorded $408,605 of stock compensation expense for the year ended September 30, 2013 in connection with this modification as the incremental difference between fair value of the stock options immediately before and after modification. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On July 2, 2013 the Company granted an aggregate of 1,667 options to an employee under the 2005 Incentive Stock Plan. The options are exercisable at $11.58 per share for five years, vesting at 25% each anniversary for the next four years. The fair value of the options was determined using the Black Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 114% and risk free interest rate of 1.01%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
During the year ended September 30, 2013, the Company issued 77,325 shares of its Common Stock in connection with the cashless exercise of 99,233 options to acquire the Company’s stock at a weighted average of $3.18 per share. The Company also issued 417 shares of its Common Stock in connection with the exercise of 417 options at $3.60 per share. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In accordance with his resignation agreement dated August 20, 2013, Mr. Jensen, the former Chief Financial Officer of the Company shall have one year from his resignation date to exercise his 341,667 vested options. There was no expense associated with this modification. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Note M for details of issuances subsequent to the twelve months ended September 30, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Company recorded $1,926,129 (including the stock option modification) and $1,953,844 as stock compensation expense for the years ended September 30, 2013 and 2012, respectively for the vesting portion of all employee options outstanding. As of September 30, 2013, unrecorded compensation cost related to non-vested awards was $107,462, which is expected to be recognized through 2018. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | |||||||||
COMMITMENTS AND CONTINGENCIES | ' | ' | ' | |||||||||
NOTE G — COMMITMENTS AND CONTINGENCIES | NOTE K — COMMITMENTS AND CONTINGENCIES | NOTE J — COMMITMENTS AND CONTINGENCIES | ||||||||||
Operating Leases | Operating leases | Operating leases | ||||||||||
The Company leases office space under an operating lease in Stony Brook, New York for its corporate headquarters. The lease is for a 30,000 square foot building. The term of the lease commenced on June 15, 2013 and expires on May 31, 2016, with the option to extend the lease for two additional three-year periods. The base rent during the initial lease term is $449,142 per annum. The Company also has operating leases for a laboratory in Huddersfield, England, which is currently inactive and Calverton, New York. The Huddersfield lease is currently on month to month. The Calverton lease is from February 1, 2014 through October 31, 2014, with the option to renew for additional one year periods. The base rent during the initial lease term is $2,850 per year. Total rent expense for the three and nine month periods ended June 30, 2014 were $125,268 and $380,251, respectively. Total rent expense for the three and nine month periods ended June 30, 2013 were $82,033 and $226,581, respectively. | On June 14, 2013, the Company entered into an operating lease agreement for its new corporate headquarters located in Stony Brook, New York. The lease is for a 30,000 square foot building. The term of the lease commenced on June 15, 2013 and expires on May 31, 2016, with the option to extend the lease for two additional three-year periods. The base rent during the initial lease term is $449,142 per annum. This new location replaces a lesser amount of space leased by the Company in an adjacent building, which was for corporate use. The Company also has operating leases for a laboratory in Huddersfield, England, which is currently inactive and Calverton, New York. The leases for both of these spaces are currently month to month. Total lease rental expenses for years ended September 30, 2013 and 2012 were $352,867 and $244,192, respectively. | The Company leases office space under operating lease in Stony Brook, New York for its corporate use, which expired in October 2012 renewable annually thereafter. Total lease rental expenses for the years ended September 30, 2012 and 2011 were $244,192 and $144,118, respectively. | ||||||||||
Employment Agreement | Future minimum rental payments (excluding real estate tax and maintenance costs) as of September 30, 2013 are as follows: | Employment and Consulting Agreements | ||||||||||
The Company has an employment agreement with the Chief Executive Officer. Effective June 21, 2014, the Chief Executive Officer’s annual salary was voluntarily reduced by $50,000. This salary reduction will be accrued and repaid when the Company reaches $3,000,000 in sales for two consecutive quarters or the Company has net income at the end of any fiscal year. | Employment agreements | |||||||||||
Litigation | | 2014 | | | | $ | 450,617 | | | On July 11, 2011, the Company’s Board of Directors approved the terms of employment for each of James A. Hayward, the Company’s Chief Executive Officer, and Kurt H. Jensen, the Company’s Chief Financial Officer. | ||
From time to time, the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. When the Company is aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company will record a liability for the loss. In addition to the estimated loss, the recorded liability includes probable and estimable legal costs associated with the claim or potential claim. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company’s business. | | 2015 | | | | | 449,142 | | | In connection with his employment agreement, Dr. Hayward was granted options to purchase 666,667 shares of the Company’s Common Stock at an exercise price per share equal to the average of the bid and asked prices of the Company’s Common Stock on the Over The Counter (OTC) Bulletin Board on the date of grant. The option will vest as follows: 25% on the grant date, and 37.5% on each of the next two anniversaries of the grant date, subject to Dr. Hayward’s continuous employment. If Company revenues for any fiscal quarter increase by more than $1 million over the prior fiscal quarter, then the vesting date for the | ||
SmartWater, Ltd. v. Applied DNA Sciences, Inc. (Civil Action No. 12-05731-JS-AKT, Eastern District of New York) – | | 2016 | | | | | 299,428 | | | next 37.5% tranche will be accelerated. Exercisability of options for the 666,667 shares was conditioned upon stockholder approval of an amendment of the Company’s 2005 Incentive Stock Plan made by the Board of Directors increasing the aggregate and individual limits on the shares of Company Common Stock issuable under the Plan. The Company also granted250,000 shares of the Company’s Common Stock to Dr. Hayward. | ||
On June 11, 2014, SmartWater Ltd. (“SmartWater”) filed a motion in the United States District Court for the Eastern District of New York for an order dismissing its patent infringement claims against the Company with prejudice. On July 18, 2014, the Company filed a response to the motion, seeking to condition the dismissal of the case on an award of its attorneys’ fees and a covenant not to sue with respect to the patents at issue in any court. Also on July 18, 2014, the Court held a conference during which (i) SmartWater agreed to dismiss its claims with prejudice, with a covenant not to sue, the Company, its customers or any third parties with respect to the patents at issue, and (ii) the Company agreed to dismiss its counterclaims, without prejudice to the Company’s request for attorney’s fees. On August 8, 2014, the Company filed a request for entry of a proposed order of dismissal of SmartWater’s claims and the company’s counterclaims, in accordance with the agreements made at the July 18, 2014 conference, and SmartWater filed its opposition to the Company’s request for attorneys’ fees. The Company’s reply papers on its request for attorneys’ fees are due to be filed on or before August 29, 2014. | | Total | | | | $ | 1,199,187 | | | In connection with his employment agreement, Mr. Jensen was granted options to purchase 166,667 shares of the Company’s Common Stock at an exercise price per share equal to the average of the bid and asked prices of the Company’s Common Stock on the Over The Counter (OTC) Bulletin Board on the date of grant. The option will vest as follows: 25% on the grant date, and 37.5% on each of the next two anniversaries of the grant date, subject to Mr. Jensen’s continuous employment. If Company revenues for any fiscal quarter increase by more than $1 million over the prior fiscal quarter, then the vesting date for the next 37.5% tranche will be accelerated. | ||
| | | | | The Company has consulting agreements with outside contractors, certain of whom are also Company stockholders. The Agreements are generally month to month. | |||||||
Litigation | ||||||||||||
Employment and Consulting Agreements | From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. | |||||||||||
Employment agreements | Demodulation, Inc. v. Applied DNA Sciences, Inc., et al. (Civil Action No. — 2:11-cv-00296-WJM-MF, District of New Jersey): | |||||||||||
On July 11, 2011, the Company’s Board of Directors approved the terms of employment for each of James A. Hayward, the Company’s Chief Executive Officer (“CEO”), and Kurt H. Jensen, the Company’s former Chief Financial Officer. | On May 18, 2011, the Company was served with a complaint in a lawsuit brought by Demodulation, Inc. against the Company, Corning Incorporated, Alfred University, and Alfred Technology Resources, Inc. On July 8, 2011, the Company filed a motion to dismiss the complaint. In response, on August 3, 2011, Demodulation, Inc. filed an amended complaint. Demodulation, Inc. alleges that it was unable to bring its microwire technology to market due to the wrongful acts of defendants, who allegedly conspired to steal Demodulation, Inc.’s trade secrets and other intellectual property and to interfere in its business opportunities. Of the 17 claims alleged in the amended complaint, five are asserted against the Company, including alleged misappropriation of trade secrets, antitrust violations, civil RICO, and patent infringement. Demodulation, Inc. seeks damages and injunctive relief against the Company. The Company believes these claims are without merit. On September 10, 2011, Alfred University filed a motion to transfer the action from the District of New Jersey to the Western District of New York. On December 22, 2011, the Court denied the motion. On January 27, 2012, the Company filed a motion to dismiss the amended complaint for failure to state a claim and on other grounds. On May 4, 2012, the Company filed a reply memorandum in further support of its motion to dismiss the amended complaint. On December 12, 2012, the Court entered an order on the Company’s motion to dismiss the amended complaint. The Court granted in part and denied in part the Company’s motion to dismiss. The Court dismissed four out of the five claims asserted against the Company without prejudice, permitting plaintiff the right to amend if it is able to and so chooses. The only claim currently remaining against the Company is that for patent infringement. The Company intends to vigorously defend the action. The ultimate outcome of this claim cannot be determined at the date of this report. | |||||||||||
In connection with his employment agreement, Dr. Hayward was granted options to purchase 666,667 shares of the Company’s Common Stock at an exercise price per share equal to the average of the bid and asked prices of the Company’s Common Stock on the Over The Counter Market Group (the “OTCQB”) Bulletin Board on the date of grant ($3.51). The option will vest as follows: 25% on the grant date, and 37.5% on each of the next two anniversaries of the grant date, subject to Dr. Hayward’s continuous employment. If Company’s revenues for any fiscal quarter increase by more than $1 million over the prior fiscal quarter, then the vesting date for the next 37.5% tranche will be accelerated. Exercisability of options for the 666,667 shares was conditioned upon stockholder approval of an amendment of the Company’s 2005 Incentive Stock Plan made by the Board of Directors increasing the aggregate and individual limits on the shares of Company Common Stock issuable under the Plan. The Company also granted 250,000 shares of the Company’s Common Stock to Dr. Hayward. | Smartwater, Ltd. v. Applied DNA Sciences, Inc. (No. 12-CV-05731-JS-AKT (E.D.N.Y.)) | |||||||||||
In connection with his employment agreement, Mr. Jensen was granted options to purchase 166,667 shares of the Company’s Common Stock at an exercise price per share equal to the average of the bid and asked prices of the Company’s Common Stock on the Over The Counter Market Group (the “OTCQB”) on the date of grant of grant of ($3.51). The option will vest as follows: 25% on the grant date, and 37.5% on each of the next two anniversaries of the grant date, subject to Mr. Jensen’s continuous employment. If Company’s revenues for any fiscal quarter increase by more than $1 million over the prior fiscal quarter, then the vesting date for the next 37.5% tranche will be accelerated. On August 20, 2013, Mr. Jensen resigned as Chief Financial Officer of the Company. According to his separation agreement, Mr. Jensen will receive payment of his base salary through December 31, 2013 and he shall have one year from his resignation date to exercise his 341,667 vested options. As of September 30, 2013 approximately $79,000 was accrued related to Mr. Jensen’s resignation agreement. | On June 6, 2012, a complaint for patent infringement was filed against the Company by Smartwater, Ltd. in the United States District Court for the District of Massachusetts in an action entitled Smartwater, Ltd. v. Applied DNA Sciences, Inc., No. 1:12-cv-11009-PBS. The complaint alleged that the Company infringed one or more claims under two of plaintiff’s patents by selling or offering for sale, manufacturing and using certain of the Company’s products, by inducing others to infringe and by contributing toinfringement by others. The plaintiff sought injunctive relief with respect to the patents as well as awards of damages and attorneys’ fees. The Company had not been served with the complaint and on August 24, 2012 the plaintiff voluntarily dismissed the complaint and refiled a similar complaint in the United States District Court for the Southern District of Florida, No. 12-61660-DMM (S.D. Fla.). On August 30, 2012, plaintiff served the Company with the complaint. The refiled complaint seeks injunctive relief with respect to one of the patents as well as awards of damages and attorneys’ fees. The Company filed a motion to dismiss and a motion to transfer the action to the Eastern District of New York. On November 19, 2012, the Court granted the Company’s motion to transfer the action to the Eastern District of New York. The Company’s motion to dismiss is pending before the Court in the Eastern District of New York. An initial conference with the Court is scheduled for February 21, 2013 at which time a discovery schedule will be set. The Company believes that none of its products infringed any claims under either of plaintiff’s patents and moreover notes that one of plaintiff’s patents has expired. The Company denies the allegations in the complaint, believes they are without merit and intends to defend the action vigorously. The ultimate outcome of this claim cannot be determined at the date of this report. | |||||||||||
Litigation | ||||||||||||
From time to time, the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. When the Company is aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company will record a liability for the loss. In addition to the estimated loss, the recorded liability includes probable and estimable legal costs associated with the claim or potential claim. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company’s business. | ||||||||||||
Demodulation, Inc. v. Applied DNA Sciences, Inc., et al. (Civil Action No. 2:11-00296-WJM-MF, District of New Jersey): | ||||||||||||
On May 18, 2011, the Company was served with a complaint in a lawsuit brought by Demodulation, Inc. against the Company, Corning Incorporated, Alfred University, and Alfred Technology Resources, Inc. On July 8, 2011, the Company filed a motion to dismiss the complaint. In response, on August 3, 2011, Demodulation filed an amended complaint. Demodulation alleged that it was unable to bring its microwire technology to market due to the wrongful acts of defendants, who allegedly conspired to steal Demodulation’s trade secrets and other intellectual property and to interfere in its business opportunities. Of the 17 claims alleged in the amended complaint, five were asserted against the Company, including alleged misappropriation of trade secrets, antitrust violations, civil RICO, and patent infringement. The Company believes these claims are without merit. | ||||||||||||
On January 27, 2012, the Company filed a motion to dismiss the amended complaint for failure to state a claim and on other grounds. On December 12, 2012, the Court entered an order on the Company’s motion to dismiss. The Court granted in part and denied in part the Company’s motion, dismissing four out of the five claims asserted against the Company, without prejudice, leaving only the patent infringement claim. Subsequently, the parties stipulated to sever the patent infringement claim against the Company from the claims against the other defendants. The Court entered an order severing the patent claim on February 20, 2013, and terminated the main lawsuit against the Company. Demodulation may seek to re-file its patent claim as a separate action, but to date has not done so. If Demodulation re-files its action, the Company intends to vigorously defend the action. We are unable to express an opinion with respect to the likelihood of an unfavorable outcome or to estimate the amount or range of potential loss if the outcome should be unfavorable, should Demodulation re-file its action, or whether it will re-file it. | ||||||||||||
SmartWater, Ltd. v. Applied DNA Sciences, Inc. (Civil Action No. 12-05731-JS-AKT, Eastern District of New York) | ||||||||||||
On June 6, 2012, a complaint for patent infringement was filed against the Company by SmartWater, Ltd. in the United States District Court for the District of Massachusetts. It alleged that the Company infringed one or more claims under two of SmartWater’s patents by selling or offering for sale, manufacturing and using certain of the Company’s products, by inducing others to infringe and by contributing to infringement by others. Prior to serving the complaint, on August 24, 2012, SmartWater voluntarily dismissed the complaint and refiled a similar complaint in the United States District Court for the Southern District of Florida, No. 12-611660-DMM. On August 30, 2012, SmartWater served the Company with the complaint. The refiled complaint seeks injunctive relief with respect to one of the patents as well as awards of damages and attorneys’ fees with respect to the alleged infringement of both patents. | ||||||||||||
The Company filed a motion to dismiss and a motion to transfer the action to the United States District Court for the Eastern District of New York. On November 19, 2012, the Court granted the Company’s motion to transfer. Following the transfer, but prior to a decision on the Company’s motion to dismiss, on June 26, 2013, SmartWater moved for leave to file an amended complaint asserting additional | ||||||||||||
allegations in support of its claims. By memorandum and order dated September 27, 2013, the Court granted in part, and denied in part, SmartWater’s motion. The Court held that SmartWater had adequately stated claims for direct infringement of both patents at issue, but had not adequately stated claims for contributory infringement of the patents, or induced infringement with respect to one of the patents, and therefore dismissed them. On October 10, 2013, the Company filed its (i) answer to the amended complaint, as modified by the Court’s September 27, 2013 order, and (ii) counterclaims. On October 31, 2013, the Company filed an amended answer and counterclaims. The Company and SmartWater have filed motions for reconsideration of a portion of the Court’s order. These motions seek a determination of whether SmartWater’s remaining claim for induced infringement of one of the patents should survive, or be dismissed because the patent expired before the Company had notice of it. In addition, the parties are now engaged in discovery. | ||||||||||||
The Company believes the claims are without merit and intends to defend the action vigorously. We are unable to express our opinion with respect to the likelihood of an unfavorable outcome or to estimate the amount or range of potential loss if the outcome should be unfavorable. |
FAIR_VALUE
FAIR VALUE | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||
FAIR VALUE | ' | ' | ||||||||||||||||||||||||||||||||
NOTE H — FAIR VALUE | NOTE L — FAIR VALUE | |||||||||||||||||||||||||||||||||
The carrying value of cash, accounts receivable, accounts payable and accrued expenses approximate estimated fair values because of their short maturities. | The carrying value of cash, accounts receivable, accounts payable and accrued expenses approximate estimated fair values because of their short maturities. | |||||||||||||||||||||||||||||||||
The carrying value of the warrant liability is determined using the Binomial Lattice option pricing model as described in Note A. Certain assumptions used in the calculation of the warrant liability represent level-3 unobservable inputs. The Company did not have any assets or liabilities categorized as Level 1 or 2 as of June 30, 2014. | The carrying value of the warrant liability is determined using the Binomial Lattice model option pricing model as described in Note B. Certain assumptions used in the calculation of the warrants liability represent level-3 unobservable inputs. The Company did not have any assets or liabilities categorized as Level 1 or 2 as of September 30, 2013. | |||||||||||||||||||||||||||||||||
The following table summarizes the activity of Level 3 inputs measured on a recurring basis: | The following table summarizes the activity of Level 3 inputs measured on a recurring basis: | |||||||||||||||||||||||||||||||||
Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||
| Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3) | | ||||||||||||||||||||||||||||||||
| | | | Nine Month Periods Ended | | | | | | Year Ended September 30, | | |||||||||||||||||||||||
June 30, | | | | | 2013 | | | 2012 | | |||||||||||||||||||||||||
| | | | 2014 | | | 2013 | | | Balance at October 1, | | | | $ | — | | | | | $ | — | | | |||||||||||
| Balance at October 1, 2013 and 2012 | | | | $ | 2,643,449 | | | | | $ | — | | | | Issuance of Series A and B Warrants | | | | | 2,461,856 | | | | | | — | | | |||||
| Issuance of Series A and B Warrants | | | | | — | | | | | | 1,181,324 | | | | Adjustment resulting from change in value recognized in earnings(a) | | | | | 7,508,146 | | | | | | — | | | |||||
| Adjustment resulting from change in fair value(a) | | | | | 1,663,316 | | | | | | 6,145,229 | | | | Reclassification to equity upon exercise | | | | | (7,326,553 | ) | | | | | | — | | | ||||
| Reclassification to equity upon exercise | | | | | (2,455,042 | ) | | | | | | (7,326,553 | ) | | | | Balance at September 30, | | | | $ | 2,643,449 | | | | | $ | — | | | |||
| Balance at June 30, | | | | $ | 1,851,723 | | | | | $ | — | | | | | | | | | | | ||||||||||||
| | | | | | | | |||||||||||||||||||||||||||
(a) | ||||||||||||||||||||||||||||||||||
(a) | Adjustment resulting from change in fair value is the amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to liabilities held at the reporting date. The unrealized gain or loss is recorded in change in fair value of warrant liability in the accompanying condensed consolidated statements of operations. | |||||||||||||||||||||||||||||||||
Adjustment resulting from change in fair value is the amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to warrant liabilities held at the reporting date and realized gains or losses at the date of exercise. The gain or loss is recorded in change in fair value of warrant liability in the accompanying condensed consolidated statements of operations. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Subsequent Events [Abstract] | ' | ' | ' |
SUBSEQUENT EVENTS | ' | ' | ' |
NOTE I — SUBSEQUENT EVENTS | NOTE M — SUBSEQUENT EVENTS | NOTE L — SUBSEQUENT EVENTS | |
On July 14, 2014, the Company was awarded a Phase II SBIR contract by the U.S. Missile Defense Agency (“MDA”) for avoidance of counterfeit parts by expanding the scope and scale of its existing SigNature DNA® technology platform established in its Phase I SBIR contract for Federal Supply Class 5962 electronic components, and by developing an optical reader. The contract provides for monthly payments to the Company totaling approximately $975,000 over a two-year period. | In accordance with FASB ASC 855, “Subsequent Events,” the Company has evaluated subsequent events through the date of filing. | In accordance with FASB ASC 855, “Subsequent Events,” the Company has evaluated subsequent events through the date of filing. | |
On August 28, 2014, the Company held its Annual Meeting of Stockholders in which, among other matters, Company stockholders approved an amendment to the Company’s Certificate of Incorporation (the “COI”) to effect a reverse stock split of the Common Stock at a ratio of between one-for-forty and one-for-sixty with such ratio to be determined at the sole discretion of the Board of Directors of the Company and with such reverse stock split to be effected at such time and date, if at all, as determined by the Board of Directors of the Company in its sole discretion. On October 14, 2014 the Board of Directors of the Company approved the Reverse Split at a ratio of one-for-sixty. The Board of Directors also approved to reduce the authorized Common Stock from 1,350,000,000 to 500,000,000. The par value for the Common Stock will not be affected. The Company filed the amendment to its COI providing for the decrease in the Company’s authorized shares and to effect the one-for-sixty reverse stock split effective as of October 29, 2014. The Company also received approval from FINRA for the one-for-sixty reverse stock split. Any fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share. All references in the accompanying condensed consolidated financial statements and notes thereto have been retroactively restated to reflect this one-for-sixty reverse stock split, including adjustments made to the stockholders' equity for common stock and additional paid-in capital. | On October 14, 2013, Karol Gray commenced employment with the Company as the Chief Financial Officer. Pursuant to an offer letter, Ms. Gray will be an at-will employee and will be paid an annual starting salary of $336,000. In addition, after six months employment, she will be granted a five year option | Securities Purchase Agreement | |
pursuant to the Company’s 2005 Incentive Stock Plan to purchase up to 33,333 shares of the Company’s Common Stock at the fair market value on the date of grant, vesting in four equal annual increments beginning on the first anniversary of the date of grant. | On November 28, 2012, the Company entered into a securities purchase agreement (“Purchase Agreement”) with Crede CG II, Ltd. (“Crede”). Pursuant to the Purchase Agreement, at the initial closing on November 29, 2012 (“Initial Closing”), Crede purchased 179,211 shares of the Company’s Common Stock at a price of $11.16 per share which was the consolidated closing bid price of the Common Stock on the day prior to the signing of the Purchase Agreement. The Company received gross proceeds of $2,000,000. Pursuant to the Purchase Agreement, Crede agreed to purchase an additional $5,500,000 of the Company’s Series A Convertible Preferred Stock (“Series A Preferred”) at a purchase price of $1,000 per share on the date a registration statement (as described below) is declared effective by the Securities and Exchange Commission (“Second Closing”). | ||
On December 16, 2013, Crede effected the cashless exercise of 178,523 Series A Warrants and 116,667 Series B Warrants, and the Company thereupon issued to Crede an aggregate of 313,718 shares of its Common Stock. | The Series A Preferred is convertible at the option of the holder thereof, in whole or in part, from time to time and at any time, at the lesser of (i) the Fixed Conversion Price and (ii) the Non-Fixed Conversion Price. The Fixed Conversion Price is equal to $11.16, which is the purchase price for the Common Stock at the Initial Closing. The Non-Fixed Conversion Price is equal to the consolidated closing bid price of the Company’s Common Stock for the most recently completed trading day as of the time of conversion. The Series A Preferred will be convertible into Common Stock at the Company’s option, in whole or in part, | ||
On December 20, 2013, 41,667 shares of the Company’s Common Stock was issued in connection with a settlement resulting from the termination of a consulting agreement. The fair value of the Common Stock was determined using the Company’s stock price on December 20, 2013. The total fair value of $337,500 was changes to operations. | from time to time during the ten trading day period beginning one trading day following the effectiveness of the registration statement (as described below) through the eleventh trading day following effectiveness of such registration statement, at the Non-Fixed Conversion Price, provided that certain equity conditions are met and the Company is not in breach of certain conditions. The Series A Preferred will be automatically converted into Common Stock on the one year anniversary of the issuance of the Series A Preferred at the then applicable Non-Fixed Conversion Price, provided that certain equity conditions are met and the Company is not in breach of certain conditions. The Series A Preferred contains weighted average anti-dilution protection. The Series A Preferred will not accrue dividends except to the extent dividends are paid on the Common Stock. The Company’s Common Stock will be junior in rank to the Series A Preferred with respect to preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Company. The Series A Preferred will generally have no voting rights except as required by law. | ||
On February 11, 2014, 12,447 shares of the Company’s Common Stock were issued in connection with the cashless exercise of 16,667 warrants to acquire the Company’s Common Stock. | The Company also issued Crede at the Initial Closing Warrants with a term of five years (though such term may be extended in certain instances) (“Series A Warrants”) allowing it to purchase 179,211 shares of Common Stock at a price of $13.39 per share which is equal to a 20% premium to the consolidated closing bid price of the Common Stock on the day prior to the signing of the Purchase Agreement. At the Initial Closing, the Company also issued Crede a second set of Warrants (“Series B Warrants”) allowing it to purchase 492,831 shares of Common Stock, which is equal to one share of Common Stock for every share of Common Stock which would be issuable to it if it fully converted the Series A Preferred into Common Stock at the Fixed Conversion Price. The exercise price of the Series B Warrants is $13.39 per share, which is equal to a 20% premium to the consolidated closing bid price of the Common Stock on the day prior to the signing of the Purchase Agreement. The Series B Warrants are not exercisable until the earlier of (i) March 16, 2013 and (ii) the Second Closing, and have a term of five years (though such term may be extended in certain instances). | ||
Subsequent Option Grants | In addition, at the Initial Closing, the Company issued to Crede a third set of Warrants (“Series C Warrants”) which is only exercisable for six months from the earlier of (i) March 16, 2013 and (ii) after the eleventh trading day following the Second Closing. The Series C Warrants will allow Crede to purchase, at a price of $13.39 per share (equal to a 20% premium to the consolidated closing bid price of the Common Stock on the day prior to the signing of the Purchase Agreement), 448,029 shares of Common Stock, which is equal to one-third the sum of (i) the number of shares of Common Stock issued at the Initial Closing, (ii) the number of shares of Common Stock which would be issuable to it if it fully converted the Series A Preferred into Common Stock at the Fixed Conversion Price, (iii) the number of shares of Common Stock subject to the Series A Warrants and (iv) the number of shares of Common Stock subject to the Series B Warrants. | ||
On October 14, 2013, the Company granted an aggregate of 132,133 options to purchase the Company’s Common Stock at an exercise price of $5.32 per share for five years to employees, 98,800 of these options vest at 25% each anniversary for the next four years and 33,333 of these options vest immediately. | The Series B and Series C Warrants provide the Company with an option to repurchase any remaining unexercised portion of such Warrants for a repurchase price equal to $50,000, if the Second Closing is terminated pursuant to the Purchase Agreement. The Series C Warrants are also subject to the Company’s repurchase at an aggregate repurchase price equal to $50,000 at the close of trading on the tenth trading day immediately following the Second Closing but only if the registration statement (described below) is effective and covers and is available for use for the resale of (i) all shares of Common Stock issued at the First Closing, (ii) all shares of Common Stock issued upon conversion of the Series A Preferred, (iii) all shares of Common Stock which would then be issuable if the full then unconverted portion of the Series A Preferred were then fully converted into Common Stock at the then applicable conversion price, (iv) all shares of Common Stock subject to the Series A Warrants and (v) all shares of Common Stock subject to the Series B Warrants. | ||
On October 17, 2013, the Company granted, Dr. James A. Hayward, Chairman, CEO and President and Mr. Ming-Hwa Liang, Chief Technology Officer and Secretary of the Company options to purchase 833,333 and 50,000 shares of the Company’s Common Stock, respectively, at an exercise price of $5.82 per share for five years to employees with vesting at 25% each anniversary for the next four years. Also on October 17, 2013, the Company granted an aggregate of 62,963 options to purchase the Company’s Common Stock at an exercise price of $5.32 per share for five years to nonemployee directors with immediate vesting. | Crede may exercise Series A and Series B Warrants by paying in cash or on a cashless basis by exchanging such Warrants for Common Stock using the Black-Scholes value. In the event that the Common Stock trades at a price 25% or more above the exercise price of the Series A and Series B Warrants for a period of 20 consecutive days (with average daily dollar volume of Common Stock on the OTC Bulletin Board at least equal to $300,000), the Company may obligate Crede to exercise such Warrants for cash. | ||
On November 28, 2013, the Company granted 4,167 options to purchase the Company’s Common Stock at an exercise price of $6.96 per share for five years to an employee with vesting at 25% each anniversary for the next four years. | Pursuant to a registration rights agreement between the Company and Crede, the Company agreed to file a registration statement within 30 days of the Initial Closing and to use its best efforts to get such registration statement effective within 90 days. The registration statement will cover the resale of all shares of Common Stock issuable pursuant to the Purchase Agreement, including the shares of Common Stock underlying the Series A Preferred and Series A, B and C Warrants. The Company has also agreed to prepare and file amendments and supplements to the registration statement to the extent necessary to keep the registration statement effective for the period of time required under the Purchase Agreement. In the event the registration statement fails to be declared effective within the 90 day period, the Company will be subject to monthly penalties which will expire six months after the Initial Closing. | ||
On December 2, 2013, the Company granted 33,333 options to purchase the Company’s Common Stock at an exercise price of $7.02 per share for five years to the Chief Information Officer with vesting at 25% each anniversary for the next four years. | The Series A Preferred and the Series A, B and C Warrants each contain a 9.9% “blocker” so that in no event shall the Series A Preferred or any of the Series A, B and C Warrants be convertible or exercisable (including through the cashless exercise exchange provision) into or for Common Stock to the extent that such conversion or exercise would result in Crede having “beneficial ownership” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended) of more than 9.9% of the Common Stock. Crede would, however, have the right from time to time to convert, exercise or exchange for shares of Common Stock, which over time would aggregate to greater than 9.9% beneficial ownership if all such shares of Common Stock so acquired had been held at one time by Crede. | ||
On December 10, 2013, the Company granted an aggregate of 35,433 options to purchase the Company’s Common Stock at an exercise price of $8.16 per share for five years to employees, with immediate vesting. | Crede has the right to participate in other equity or equity-linked financings completed by the Company for a period of 180 days from the later of the Initial Closing or the date the registration statement goes effective. | ||
On February 6, 2014, the Company granted 41,667 options to purchase the Company’s common stock at an exercise price of $9.60 per share for five years to a consultant, with immediate vesting. This resulted in an expense of $271,417 for the three month period ended March 31, 2014. | In addition, the Company has agreed not to issue additional Common Stock or securities convertible into Common Stock at a price below $11.16 per share or the market price of the Common Stock on the date the registration statement is declared effective, for a period of 180 days from the effective date of the registration statement, except for issuances (i) pursuant to acquisitions, joint ventures, license arrangements, leasing arrangements and other similar arrangements, (ii) to employees, consultants, directors and officers approved by the Board or pursuant to a plan approved by the Board, (iii) pursuant to one or more contracts entered into by the Company with third parties which would result in revenues to the Company during a three-month period equal to an annual run rate of $15 Million in revenues and (iv) pursuant to a contract entered into by the Company with a third party which would reasonably be expected to result in more than $3 Million in annual receivables. | ||
On August 28, 2014, the Company held its Annual Meeting of Stockholders at which, among other matters, Company stockholders approved an amendment to the Company's Certificate of Incorporation (the "COI") to effect a reverse stock split of the Common Stock at a ratio of between one-for-forty and one-for-sixty with such ratio to be determined at the sole discretion of the Board of Directors of the Company and with such reverse stock split to be effected at such time and date, if at all, as determined by the Board of Directors of the Company in its sole discretion. On October 14, 2014 the Board of Directors of the Company approved the Reverse Split at a ratio of one-for-sixty. The Board of Directors also approved to reduce the authorized Common Stock from 1,350,000,000 to 500,000,000. The par value for the Common Stock will not be affected. The Company filed the amendment to its COI providing for the decrease in the Company’s authorized shares and to effect the one-for-sixty reverse stock split effective as of October 29, 2014. The Company also received approval from FINRA for the one-for-sixty reverse stock split. Any fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share. All references in the accompanying consolidated financial statements and notes thereto have been retroactively restated to reflect this one-for-sixty reverse stock split, including adjustments made to stockholders' equity for common stock and additional paid-in capital. | Until one year after the Second Closing, the Company is prohibited from entering into any transaction to (i) sell any convertible securities at a conversion rate or other price that is generally based on and/or varies with the trading prices of the Company’s Common Stock at any time after the initial issuance of such convertible securities or (ii) sell securities at a future determined price, including, without limitation, an “equity line of credit” or an “at the market offering.” | ||
Issuance of non-employee director options: | |||
On November 30, 2012, the Company issued an aggregate of 34,989 options to non-employee board of director members (except Mr. Catenacci) under the 2005 Incentive Stock Plan. The options are exercisable at $10.79 per share for five years, vesting one year from the date of issuance. | |||
Empire State Grant: | |||
On December 19, 2012, we were a recipient of an Empire State Development Corporation Consolidated Funding Application Round II Grant in the amount of $229,957 for our “Rapid Growth and Expansion Project.” We plan to use the grant award money to purchase new laboratory equipment which will enhance our DNA formulation menu, particularly in defense and law enforcement applications. | |||
Reverse Stock Split | |||
On August 28, 2014, the Company held its Annual Meeting of Stockholders in which, among other matters, Company stockholders approved an amendment to the Company's Certificate of Incorporation (the "COI") to effect a reverse stock split of the Common Stock at a ratio of between one-for-forty and one-for-sixty with such ratio to be determined at the sole discretion of the Board of Directors of the Company and with such reverse stock split to be effected at such time and date, if at all, as determined by the Board of Directors of the Company in its sole discretion. On October 14, 2014 the Board of Directors of the Company approved the Reverse Split at a ratio of one-for-sixty. The Board of Directors also approved to reduce the authorized Common Stock from 1,350,000,000 to 500,000,000. The par value for the Common Stock will not be affected. The Company filed the amendment to its COI providing for the decrease in the Company’s authorized shares and to effect the one-for-sixty reverse stock split effective as of October 29, 2014. The Company also received approval from FINRA for the one-for-sixty reverse stock split. Any fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share. All references in the accompanying consolidated financial statements and notes thereto have been retroactively restated to reflect this one-for-sixty reverse stock split, including adjustments made to stockholders' equity for common stock and additional paid-in capital. | |||
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||||||||||||||||||
Intangible Assets Disclosure [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS | ' | ' | ||||||||||||||||||||||||||||||||
NOTE C — INTANGIBLE ASSETS | NOTE B — INTANGIBLE ASSETS | |||||||||||||||||||||||||||||||||
On May 10, 2013, the Company entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) with RedWeb Technologies Limited (“RedWeb”), a corporation incorporated and registered under the laws of England & Wales, to purchase certain assets of RedWeb (“Purchased Assets”) relating to its forensic tagging security system for a purchase price of £400,000 ($624,080). The Company completed the acquisition of the Purchased Assets on the same day. The Purchased Assets include RedWeb’s Sentry 500 Intruder Spray System, RedWeb’s Advanced Molecular Taggent Technology and all products relating thereto, certain intellectual property and supplies relating to the foregoing. £40,000 ($62,408) of the purchase price shall be held in escrow for up to one year to be applied against the indemnification | The identifiable intangible assets acquired and their carrying values at September 30, 2012 and 2011 are as follows: | |||||||||||||||||||||||||||||||||
obligations of RedWeb pursuant to the Asset Purchase Agreement. This transaction was accounted for as an asset acquisition in accordance with ASC 805. The Company assigned $584,080 of the purchase price to intellectual property and the remaining $40,000 was for supplies, which were expensed during the year ended September 30, 2013. | ||||||||||||||||||||||||||||||||||
The Company recorded impairment expense of $114,730 during the year ended September 30, 2013 related to certain intellectual property that was part of the purchased assets from RedWeb. The impairment related to two pending patents that were no longer valid as of September 30, 2013. | | | | | 2012 | | | 2011 | | |||||||||||||||||||||||||
The identifiable intangible assets acquired and their carrying values at September 30, 2013 and 2012 are as follows: | | Trade secrets and developed technologies (Weighted average life of 7 years) | | | | $ | 9,430,900 | | | | | $ | 9,430,900 | | | |||||||||||||||||||
| Patents (Weighted average life of 5 years) | | | | | 34,257 | | | | | | 34,257 | | | ||||||||||||||||||||
| | | | 2013 | | | 2012 | | | Total identifiable intangible assets – Gross carrying value: | | | | | 9,465,157 | | | | | | 9,465,157 | | | |||||||||||
| Trade secrets and developed technologies (Weighted average life of 7 years) | | | | $ | — | | | | | $ | 3,775,889 | | | | Less: | | | | | | | | | | | | | | |||||
| Patents (Weighted average life of 5 years) | | | | | — | | | | | | 34,257 | | | | Accumulated amortization | | | | | (3,810,146 | ) | | | | | | (3,537,302 | ) | | | |||
| Intellectual property (Weighted average life of 5 years) | | | | | 584,080 | | | | | | — | | | | Impairment (2006) | | | | | (5,655,011 | ) | | | | | | (5,655,011 | ) | | | |||
| Total identifiable intangible assets — Gross carrying value: | | | | | 584,080 | | | | | | 3,810,146 | | | | Net | | | | $ | 0 | | | | | $ | 272,844 | | | |||||
| Less: | | | | | | | | | | | | | | | Residual value | | | | $ | 0 | | | | | $ | 0 | | | |||||
| Accumulated amortization | | | | | (48,674 | ) | | | | | | (3,810,146 | ) | | | | | | | | | | | | |||||||||
| Impairment charges | | | | | (114,730 | ) | | | | | | — | | | |||||||||||||||||||
| Intangible assets, net | | | | $ | 420,676 | | | | | $ | — | | | Total amortization expense charged to operations for the years ended September 30, 2012 and 2011 were $272,844 and $363,791, respectively. | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||||||||||
Total amortization expense charged to operations for the years ended September 30, 2013 and 2012 were $163,404 (includes $114,730 of impairment expense) and $272,844, respectively. | ||||||||||||||||||||||||||||||||||
The following table presents the estimated amortization expense of the intangible assets for each of the five succeeding years as of September 30, 2013: | ||||||||||||||||||||||||||||||||||
| | | | Amount | | |||||||||||||||||||||||||||||
| 2014 | | | | $ | 90,145 | | | ||||||||||||||||||||||||||
| 2015 | | | | | 90,145 | | | ||||||||||||||||||||||||||
| 2016 | | | | | 90,145 | | | ||||||||||||||||||||||||||
| 2017 | | | | | 90,145 | | | ||||||||||||||||||||||||||
| 2018 | | | | | 60,096 | | | ||||||||||||||||||||||||||
| Total | | | | $ | 420,676 | |
PRIVATE_PLACEMENT_OF_CONVERTIB
PRIVATE PLACEMENT OF CONVERTIBLE NOTES | 12 Months Ended | |||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||
Long-Term Debt, Unclassified [Abstract] | ' | ' | ||||||||||||||||
PRIVATE PLACEMENT OF CONVERTIBLE NOTES | ' | ' | ||||||||||||||||
NOTE E — PRIVATE PLACEMENT OF CONVERTIBLE NOTES | NOTE D — PRIVATE PLACEMENT OF CONVERTIBLE NOTES | |||||||||||||||||
During the years ended September 30, 2011 and 2010 the Company issued multiple senior secured convertible promissory notes, all of which had been converted as of September 30, 2012. The activity that occurred during the year ended September 30, 2012 is summarized below. | Convertible notes payable as of September 30, 2012 and 2011 are as follows: | |||||||||||||||||
10% Secured Convertible Promissory Note dated June 4, 2010 | ||||||||||||||||||
On June 4, 2010, the Company issued a $675,000 related party convertible promissory note due January 31, 2012 with interest at 10% per annum due upon maturity. In January 2012, the Company issued an aggregate of 112,504 shares of Common Stock in settlement of the convertible notes and related accrued interest. | | | | | 2012 | | | 2011 | | |||||||||
10% Senior Secured Convertible Promissory Notes dated July 15, 2010 | | Secured Convertible Note Payable dated June 4, 2010, net of unamortized debt discount of $1,332 (see below) | | | | $ | — | | | | | $ | 223,668 | | | |||
On July 15, 2010, the Company issued an aggregate of $2,000,000 senior secured convertible promissory notes due July 15, 2011 with interest at 10% per annum due upon maturity to “accredited investors,” as defined in regulations promulgated under the Securities Act of 1933, as amended (“Securities Act”). | | Secured Convertible Notes Payable dated July 15, 2010, net of unamortized debt discount of $26,091 (see below) | | | | | — | | | | | | 423,909 | | | |||
On January 7, 2011, upon the completion of a Subsequent Financing, the above described conversion rate changed from $2.64 to $2.23 with an extended due date from July 15, 2011 to January 7, 2012 on $1,550,000 of the $2,000,000 issued senior convertible promissory notes. All other terms remained the same. Although the conversion rate of the remaining $450,000 senior secured convertible promissory notes remained the same, the due date was extended also to January 7, 2012. In conjunction with the conversion rate and term modifications of the $1,550,000 senior secured convertible promissory notes, the Company wrote off the remaining unamortized debt discount of $331,332 to operations. | | Secured Convertible Notes Payable dated November 19, 2010, net of unamortized debt discount of $10,479 (see below) | | | | | — | | | | | | 339,521 | | | |||
Amortization of $26,091 was recorded for the year ended September 30, 2012. | | Secured Convertible Note Payable dated November 30, 2010, net of unamortized debt discount of $45,136 (see below) | | | | | — | | | | | | 704,864 | | | |||
In January 2012, the Company issued an aggregate of 195,497 shares of Common Stock in settlement of the $450,000 convertible notes and related accrued interest. As described further below, the Company issued 24,964 and 746,314 shares on October 26, 2011 and January 7, 2012, respectively in settlement of the remaining $1,550,000 convertible notes and related accrued interest. | | Secured Convertible Note Payable dated January 7, 2011, net of unamortized debt discount of $65,159 (see below) | | | | | — | | | | | | 684,841 | | | |||
10% Senior Secured Convertible Promissory Notes dated November 19, 2010 | | Secured Convertible Notes Payable, dated July 15, 2010, modified January 7, 2011, net of unamortized debt discount of $392,923 (see below) | | | | | — | | | | | | 1,104,077 | | | |||
On November 19, 2010, the Company issued an aggregate of $350,000 in principal amount of senior secured convertible notes bearing interest at a rate of 10% per annum to “accredited investors,” as defined in regulations promulgated under the Securities Act. | | Secured Convertible Note Payable, dated July 11, 2011 | | | | | — | | | | | | 250,000 | | | |||
The Company recorded the intrinsic value of the embedded beneficial conversion feature ($76,494) to debt discount which will be amortized to interest expense over the term of the notes. Amortization of $10,479 was recorded for the year ended September 30, 2012. | | Total | | | | | — | | | | | | 3,730,880 | | | |||
In November 2011, the Company issued an aggregate of 194,885 shares of Common Stock in settlement of the convertible notes and related accrued interest. | | Less: current portion | | | | | (— | ) | | | | | | (3,730,880 | ) | | | |
10% Senior Secured Convertible Promissory Note dated November 30, 2010 | | Long-term debt – net | | | | $ | — | | | | | $ | — | | | |||
On November 30, 2010, the Company issued a $750,000 principal amount senior secured convertible note bearing interest at a rate of 10% per annum to an “accredited investor,” as defined in regulations promulgated under the Securities Act. | | | | | | | | | | |||||||||
The Company recorded the intrinsic value of the embedded beneficial conversion feature ($270,078) to debt discount which will be amortized to interest expense over the term of the note. Amortization of $45,136 was recorded for the year ended September 30, 2012. | ||||||||||||||||||
On November 30, 2011, the Company issued an aggregate of 445,272 shares of Common Stock in settlement of the convertible note and related accrued interest. | 10% Secured Convertible Promissory Note dated June 4, 2010 | |||||||||||||||||
10% Senior Secured Convertible Promissory Note dated January 7, 2011 | On June 4, 2010, the Company issued a $675,000 related party convertible promissory note due January 31, 2012 with interest at 10% per annum due upon maturity. The note is convertible at any time prior to maturity, at the holder’s option, into shares of the Company’s common stock, par value $.001 per share (“Common Stock”), at a price equal to the greater of (i) 50% of the average price of the Common Stock for the ten trading days prior to the date of the notice of conversion or (ii) at $2.33 per share, which is equal to a 20% discount to the average volume, weighted average price of the Common Stock for the ten trading days prior to issuance. At maturity, the note, including any accrued and unpaid interest, is automatically convertible at $2.33 per share. The Company has granted the noteholder a security interest in all the Company’s assets. | |||||||||||||||||
On January 7, 2011, the Company issued a $750,000 principal amount senior secured convertible note bearing interest at a rate of 10% per annum to an “accredited investor,” as defined in regulations promulgated under the Securities Act. | In accordance with ASC 470-20, the Company recognized an embedded beneficial conversion feature present in the note. The Company allocated a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital. The Company recognized and measured an aggregate of $19,692 of the proceeds, which is equal to the intrinsic value of the embedded beneficial conversion feature, to additional paid-in capital and a discount against the note. The debt discount attributed to the beneficial conversion feature is amortized over the note’s maturity period as interest expense. | |||||||||||||||||
Amortization of $65,159 was recorded for the year ended September 30, 2012. | The Company recorded the intrinsic value of the embedded beneficial conversion feature ($19,692) to debt discount which will be amortized to interest expense over the term of the note. Amortization of $1,332 and $3,954 was recorded for the years ended September, 2012 and 2011, respectively for the $225,000 out of the $675,000 related party convertible promissory note. | |||||||||||||||||
In January 2012, the Company issued an aggregate of 248,689 shares of Common Stock in settlement of the convertible note and related accrued interest. | On July 15, 2010, $450,000 of the $675,000 related party convertible promissory note was converted to the same terms and conditions as described in the 10% Secured Convertible Promissory Notes dated July 15, 2010 below. | |||||||||||||||||
10% Senior Secured Convertible Promissory Notes issued on July 15, 2010, modified on January 7, 2011 | In January 2012, the Company issued an aggregate of 102,504 shares of Common Stock in settlement of the convertible notes and related accrued interest. | |||||||||||||||||
On January 7, 2011, the Company modified previously issued senior secured promissory notes initially dated July 15, 2010 totaling $1,550,000 in principal amount bearing interest at a rate of 10% per annum to “accredited investors,” as defined in regulations promulgated under the Securities Act. | 10% Senior Secured Convertible Promissory Notes dated July 15, 2010 | |||||||||||||||||
The Company recorded the intrinsic value of the embedded beneficial conversion feature ($1,499,536) to debt discount which will be amortized to interest expense over the term of the notes. Amortization of $392,923 was recorded for the year ended September 30, 2012. | On July 15, 2010, the Company issued an aggregate of $2,000,000 senior secured convertible promissory notes due July 15, 2011 with interest at 10% per annum due upon maturity to “accredited investors,” as defined in regulations promulgated under the Securities Act of 1933, as amended (“Securities Act”). The notes are convertible at any time prior to maturity, at the holders’ option, into shares of Common Stock (i) prior to the occurrence of Subsequent Financing at a rate of $2.64, or (ii) after Subsequent Financing in the event the holder elects to receive shares of Common Stock (and not securities issued in a Subsequent Financing (“Subsequent Financing Securities”) or securities issued in a Qualified Financing (the “Qualified Financing Securities”)), at a rate of $2.64, or as of any conversion date that occurs after the closing of a Subsequent Financing at a rate of 80% of the purchase price paid by investors in the Subsequent Financing. The notes automatically convert at the earlier occurrence of (i) maturity or (ii) Qualified Financing including any accrued and unpaid interest, at a rate as described above. The Company has granted the note holders a security interest in all the Company’s assets and the assets of APDN (B.V.I.) Inc., the Company’s wholly-owned subsidiary. | |||||||||||||||||
On October 26, 2011, the Company issued 24,964 shares of Common Stock in settlement of $50,000 of convertible notes and related accrued interest. | A “Subsequent Financing” is defined for purposes of this Note D as the issuance and sale by the Company or its affiliates during the term of the promissory note of securities that do not qualify as Qualified Financing. A “Qualified Financing” is defined for purposes of this Note D as the issuance and sale by the Company or an affiliate thereof of equity or debt securities in a single transaction that results in gross proceeds of at least $10,000,000 (before transaction fees and expenses). | |||||||||||||||||
In January 2012, the Company issued an aggregate of 746,314 shares of Common Stock in settlement of the remaining $1,447,000 convertible notes and related accrued interest. | In accordance with ASC 470-20, the Company recognized an embedded beneficial conversion feature present in the notes. The Company allocated a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital. The Company recognized and measured an aggregate of $678,774 of the proceeds, which is equal to the intrinsic value of the embedded beneficial conversion feature, to additional paid-in capital and a discount against the notes. The debt discount attributed to the beneficial conversion feature is amortized over the notes’ maturity period (one year) as interest expense. | |||||||||||||||||
4% Senior Secured Convertible Promissory Note issued on July 11, 2011 | The Company recorded the intrinsic value of the embedded beneficial conversion feature ($678,774) to debt discount which will be amortized to interest expense over the term of the notes. | |||||||||||||||||
On July 11, 2011, the Company issued a $250,000 related party convertible promissory note due July 11, 2012 with interest at 4% per annum due upon maturity. | On January 7, 2011, upon the completion of a Subsequent Financing, the above described conversion rate changed from $2.64 to $2.23 with an extended due date from July 15, 2011 to January 7, 2012 on $1,550,000 of the $2,000,000 issued senior convertible promissory notes. All other terms are remaining the same. Although the conversion rate of the remaining $450,000 senior secured convertible promissory notes remained the same, the due date was extended also to January 7, 2012. In conjunction with the conversion rate and term modifications of the $1,550,000 senior secured convertible promissory notes, the Company wrote off the remaining unamortized debt discount of $331,332 to operations. See below discussion of the restructured senior secured convertible promissory notes. | |||||||||||||||||
On July 11, 2012, the Company issued 74,074 shares of Common Stock in settlement of $250,000 of convertible notes and related accrued interest. | Amortization of $26,091 and $70,102 was recorded for the years ended September 30, 2012 and 2011, respectively. | |||||||||||||||||
In January 2012, the Company issued an aggregate of 195,497 shares of Common Stock in settlement of the $450,000 convertible notes and related accrued interest. | ||||||||||||||||||
10% Senior Secured Convertible Promissory Notes dated November 19, 2010 | ||||||||||||||||||
On November 19, 2010, the Company issued an aggregate of $350,000 in principal amount of senior secured convertible notes bearing interest at a rate of 10% per annum to “accredited investors,” as defined in regulations promulgated under the Securities Act. The notes are convertible, in whole or in part, at any time, at the option of the noteholders, into either (A) such number of shares of Common Stock determined by dividing (i) the principal amount of each note, together with any and all accrued and unpaid interest and penalties, by (ii) a conversion price of $1.97 (equal to a 20% discount to the average volume, weighted average price of the Common Stock for the ten trading days prior to issuance, which is referred to as the “Common Conversion Price” for purposes of this Note D) or (B) Subsequent Financing Securities at a conversion price equal to 80% of the price per Subsequent Security paid by investors for Subsequent Financing Securities in a Subsequent Financing (which is referred to as the “Subsequent Financing Price” for purposes of this Note D). A noteholder may convert its notes in whole in connection with any one Subsequent Financing or in part in connection with one or more Subsequent Financings. The notes shall be automatically converted upon the earlier of (I) November 19, 2011 and (II) the completion of a Qualified Financing at the election of each noteholder into either (A) shares of Common Stock at the applicable Common Conversion Price, (B) Subsequent Financing Securities at a conversion price equal to 80% of the Subsequent Financing Price, or (C) Qualified Financing Securities at a conversion price equal to 80% of the price per Qualified Financing Security paid by investors for the Qualified Financing Securities (which is referred to as the “Qualified Financing Price” for purposes of this Note D). | ||||||||||||||||||
The notes bear interest at the rate of 10% per annum and are due and payable in full on November 19, 2011. | ||||||||||||||||||
Until the principal and accrued but unpaid interest under the notes are paid in full, or converted into Common Stock, Subsequent Financing Securities or Qualified Financing Securities (collectively, “Conversion Shares”) pursuant to their terms, the Company’s obligations under the notes will be secured by a lien on all assets of the Company and the assets of APDN (B.V.I.) Inc., the Company’s wholly-owned subsidiary. | ||||||||||||||||||
In accordance with ASC 470-20, the Company recognized an embedded beneficial conversion feature present in the notes. The Company allocated a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital. The Company recognized and measured an aggregate of $76,494 of the proceeds, which is equal to the intrinsic value of the embedded beneficial conversion feature, to additional paid-in capital and a discount against the notes. The debt discount attributed to the beneficial conversion feature is amortized over the notes’ maturity period (one year) as interest expense. | ||||||||||||||||||
The Company recorded the intrinsic value of the embedded beneficial conversion feature ($76,494) to debt discount which will be amortized to interest expense over the term of the notes. Amortization of $10,479 and $66,015 was recorded for the years ended September 30, 2012 and 2011, respectively. | ||||||||||||||||||
In November 2011, the Company issued an aggregate of 194,885 shares of Common Stock in settlement of the convertible notes and related accrued interest. | ||||||||||||||||||
10% Senior Secured Convertible Promissory Note dated November 30, 2010 | ||||||||||||||||||
On November 30, 2010, the Company issued a $750,000 principal amount senior secured convertible note bearing interest at a rate of 10% per annum to an “accredited investor,” as defined in regulations promulgated under the Securities Act. The note is convertible, in whole or in part, at any time, at the option of the noteholder, into either (A) such number of shares of Common Stock determined by dividing (i) the principal amount of the note, together with any and all accrued and unpaid interest and penalties, by (ii) a conversion price of $1.85 (the applicable Common Conversion Price) or (B) Subsequent Financing Securities at the Subsequent Financing Price. The noteholder may convert its note in whole in connection with any one Subsequent Financing or in part in connection with one or more Subsequent Financings. The note shall be automatically converted upon the earlier of (I) November 30, 2011 and (II) the completion of a Qualified Financing at the election of the noteholder into either (A) shares of Common Stock at the applicable Common Conversion Price, (B) Subsequent Financing Securities at a conversion price equal to 80% of the Subsequent Financing Price, or (C) Qualified Financing Securities at a conversion price equal to 80% of the Qualified Financing Price. | ||||||||||||||||||
The note bears interest at the rate of 10% per annum and is due and payable in full on November 30, 2011. | ||||||||||||||||||
Until the principal and accrued but unpaid interest under the note is paid in full, or converted into Conversion Shares pursuant to its terms, the Company’s obligations under the note will be secured by a lien on all assets of the Company and the assets of APDN (B.V.I.) Inc., the Company’s wholly-owned subsidiary. | ||||||||||||||||||
In accordance with ASC 470-20, the Company recognized an embedded beneficial conversion feature present in the note. The Company allocated a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital. The Company recognized and measured an aggregate of $270,078 of the proceeds, which is equal to the intrinsic value of the embedded beneficial conversion feature, to additional paid-in capital and a discount against the note. The debt discount attributed to the beneficial conversion feature is amortized over the note’s maturity period (one year) as interest expense. | ||||||||||||||||||
The Company recorded the intrinsic value of the embedded beneficial conversion feature ($270,078) to debt discount which will be amortized to interest expense over the term of the note. Amortization of $45,136 and $224,942 was recorded for the year ended September 30, 2012 and 2011, respectively. | ||||||||||||||||||
On November 30, 2011, the Company issued an aggregate of 445,272 shares of Common Stock in settlement of the convertible note and related accrued interest. | ||||||||||||||||||
10% Senior Secured Convertible Promissory Note dated January 7, 2011. | ||||||||||||||||||
On January 7, 2011, the Company issued a $750,000 principal amount senior secured convertible note bearing interest at a rate of 10% per annum to an “accredited investor,” as defined in regulations promulgated under the Securities Act. | ||||||||||||||||||
The Note is convertible, in whole or in part, at any time, at the option of the noteholder, into either (A) such number of shares of Common Stock determined by dividing (i) the principal amount of the Note, together with any and all accrued and unpaid interest and penalties, by (ii) a conversion price of $3.32 (the applicable Common Conversion Price) or (B) Subsequent Financing Securities at a conversion price equal to 80% of the Subsequent Financing Price. The noteholder may convert its Notes in whole in connection with any one Subsequent Financing or in part in connection with one or more Subsequent Financings. | ||||||||||||||||||
The Note shall be automatically converted upon the earlier of (I) January 7, 2012 and (II) the completion of a Qualified Financing at the election of the noteholder into either (A) shares of Common Stock at the applicable Common Conversion Price, (B) Subsequent Financing Securities at a conversion price equal to 80% of the Subsequent Financing Price, or (C) Qualified Financing Securities at a conversion price equal to 80% of the Qualified Financing Price. | ||||||||||||||||||
Pursuant to a joinder agreement, the noteholder became party to the registration rights agreement, dated as of July 15, 2010 (the “Registration Rights Agreement”), with the Company, pursuant to which the Company has agreed to prepare and file a registration statement with the SEC to register under the Securities Act resales from time to time of the Conversion Shares issued or issuable upon conversion or redemption of the Note. The Company is required to file a registration statement within 45 days of receiving a Demand Registration Request (as defined in the Registration Rights Agreement), and to cause the registration statement to be declared effective within 45 days (or 90 days if the registration statement is reviewed by the SEC). The Company will be required to pay penalties to the noteholder in the event that these deadlines are not met. | ||||||||||||||||||
The Note bears interest at the rate of 10% per annum and is due and payable in full on January 7, 2012. Until the principal and accrued but unpaid interest under the Note is paid in full, or converted into Conversion Shares pursuant to its terms, the Company’s obligations under the Note will be secured by a lien on all assets of the Company and the assets of APDN (B.V.I.) Inc., the Company’s wholly-owned subsidiary, in favor of Etico Capital, LLC, as Collateral Agent for the Purchasers named therein pursuant to security agreements dated as of July 15, 2010, to which the noteholder became party pursuant to joinder agreements. | ||||||||||||||||||
In accordance with ASC 470-20, the Company recognized an embedded beneficial conversion feature present in the note. The Company allocated a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital. The Company recognized and measured an aggregate of $240,233 of the proceeds, which is equal to the intrinsic value of the embedded beneficial conversion feature, to additional paid-in capital and a discount against the note. The debt discount attributed to the beneficial conversion feature is amortized over the note’s maturity period (one year) as interest expense. | ||||||||||||||||||
Amortization of $65,159 and $175,074 was recorded for the years ended September 30, 2012 and 2011, respectively. | ||||||||||||||||||
In January 2012, the Company issued an aggregate of 248,689 shares of Common Stock in settlement of the convertible note and related accrued interest. | ||||||||||||||||||
10% Senior Secured Convertible Promissory Notes issued on July 15, 2010, modified on January 7, 2011 | ||||||||||||||||||
On January 7, 2011, the Company modified previously issued senior secured promissory notes initially dated July 15, 2010 totaling $1,550,000 in principal amount bearing interest at a rate of 10% per annum to “accredited investors,” as defined in regulations promulgated under the Securities Act. The notes are convertible, in whole or in part, at any time, at the option of the noteholders, into either (A) such number of shares of Common Stock determined by dividing (i) the principal amount of each note, together with any and all accrued and unpaid interest and penalties, by (ii) a conversion price of $2.23 (the applicable Common Conversion Price) or (B) Subsequent Financing Securities at a conversion price equal to 80% of | ||||||||||||||||||
Subsequent Financing Price. A noteholder may convert its note in whole in connection with any one Subsequent Financing or in part in connection with one or more Subsequent Financings. The notes shall be automatically converted upon the earlier of (I) January 7, 2012 and (II) the completion of a Qualified Financing at the election of the noteholder into either (A) shares of Common Stock at the applicable Common Conversion Price, (B) Subsequent Financing Securities at a conversion price equal to 80% of the Subsequent Financing Price, or (C) Qualified Financing Securities at a conversion price equal to 80% of the Qualified Financing Price. The effect of this refinancing was recognized as “debt modification” in the financial statements. | ||||||||||||||||||
The notes bear interest at the rate of 10% per annum and are due and payable in full on January 7, 2012. | ||||||||||||||||||
Until the principal and accrued but unpaid interest under the notes are paid in full, or converted into Conversion Shares pursuant to their terms, the Company’s obligations under the notes will be secured by a lien on all assets of the Company and the assets of APDN (B.V.I.) Inc., the Company’s wholly-owned subsidiary. | ||||||||||||||||||
In accordance with ASC 470-20, the Company recognized an embedded beneficial conversion feature present in the notes. The Company allocated a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital. The Company recognized and measured an aggregate of $1,499,536 of the proceeds, which is equal to the intrinsic value of the embedded beneficial conversion feature, to additional paid-in capital and a discount against the notes. The debt discount attributed to the beneficial conversion feature is amortized over the notes’ maturity period (one year) as interest expense. | ||||||||||||||||||
The Company recorded the intrinsic value of the embedded beneficial conversion feature ($1,499,536) to debt discount which will be amortized to interest expense over the term of the notes. Amortization of $392,923 and $1,106,613 was recorded for the years ended September 30, 2012 and 2011, respectively. | ||||||||||||||||||
On October 26, 2011, the Company issued 24,964 shares of Common Stock in settlement of $50,000 of convertible notes and related accrued interest. | ||||||||||||||||||
In January 2012, the Company issued an aggregate of 746,314 shares of Common Stock in settlement of the remaining $1,447,000 convertible notes and related accrued interest. | ||||||||||||||||||
Adjustment of Conversion Price of Certain 10 % Senior Secured Convertible Promissory Notes dated July 15, 2010. | ||||||||||||||||||
In February 2011, the Company adjusted the conversion price of $1,550,000 of the $2,000,000 in principal amount of senior secured convertible promissory notes issued on July 15, 2010 (the “July 15 Notes”), from $2.64 to $2.23. The remaining $450,000 aggregate principal amount of the July 15 Notes, held by James A. Hayward, the Company’s Chairman, President and Chief Executive Officer, will continue to have a conversion price of $2.64 The note was fully converted during the fiscal year ended September 30, 2012. | ||||||||||||||||||
4% Senior Secured Convertible Promissory Note issued on July 11, 2011 | ||||||||||||||||||
On July 11, 2011, the Company issued a $250,000 related party convertible promissory note due July 11, 2012 with interest at 4% per annum due upon maturity. The note is convertible at any time prior to maturity, at the holder’s option, into shares of Common Stock at $3.51 per share. At maturity, the note, including any accrued and unpaid interest, is automatically convertible at $3.51 per share. The Company has granted the note holder a security interest in all the Company’s assets. | ||||||||||||||||||
The embedded conversion feature present in the note equaled the fair value of the underlying Common Stock at the date of issuance, therefore the Company did not record a beneficial conversion feature. | ||||||||||||||||||
On July 11, 2012, the Company issued 74,074 shares of Common Stock in settlement of $250,000 of convertible notes and related accrued interest. | ||||||||||||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Related Party Transactions [Abstract] | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' |
NOTE G — RELATED PARTY TRANSACTIONS | NOTE E — RELATED PARTY TRANSACTIONS | |
During the year ended September 30, 2012, the Company issued 382,075 shares of Common Stock in exchange for settlement of an aggregate of $925,000 related party convertible promissory notes and accrued interest. | During the years ended September 30, 2012 and 2011, the Company’s Chief Executive Officer, had advanced funds of $0 in 2012 and $250,000 in 2011 to the Company in the form of convertible promissory notes for working capital purposes (see Note D). Interest expense for the related party notes amounted to $15,363 and $24,719 for the years ended September 30, 2012 and 2011, respectively. As of September 30, 2012, there were no outstanding related party promissory notes. | |
On June 21, 2012, Abarta Partners I, a partnership administered by Mr. Bitzer, one of the Company’s directors, for which his revocable trust is a partner, purchased 592,943 shares of our Common Stock at a purchase price of $2.60 per share for gross proceeds of $1,542,600 in a private placement transaction. | On July 15, 2011, the Company issued and sold 175,439 Shares of Common Stock to the Company’s Chief Executive Officer for gross proceeds of $500,000. | |
The Company acquired rights to certain software and intellectual property pursuant to an agreement it entered into with DivineRune Inc., a secure cloud-computing specialist, on January 25, 2012. DivineRune was issued a 3 year warrant to purchase 16,667 shares of the Company’s common stock at an exercise price of $4.26 per share vesting in full on the first anniversary of the date of grant as compensation for a license to DivineRune’s patent portfolio. The Company will also share revenues on any future sales of products generated as a result of this agreement. The Company expects that the partnership will enhance and extend its core anti-counterfeiting, anti-diversion, and security systems into the digital track-and-trace sphere. James A. Hayward, the Company’s President, Chairman and Chief Executive Officer, and Yacov Shamash, a member of the Company’s Board of Directors, were among the early investors in DivineRune. | During the year ended September 30, 2012, the Company issued 382,075 shares of Common Stock in exchange for settlement of an aggregate of $925,000 related party convertible promissory notes and accrued interest. | |
The Company has consulting agreements with outside contractors, certain of whom are also Company stockholders. The agreements are generally month to month. | ||
On June 21, 2012, Abarta Partners I, a partnership administered by Mr. Bitzer, one of our directors, for which his revocable trust is a partner, purchased 592,943 shares of our Common Stock at a purchase price of $2.60 per share for gross proceeds of $1,542,600 in a private placement transaction. | ||
We acquired rights to certain software and intellectual property pursuant to an agreement we entered into with DivineRune Inc., a secure cloud-computing specialist, on January 25, 2012. DivineRune was issued a 3 year warrant to purchase 16,667 shares of our common stock at an exercise price of $4.26 per share vesting in full on the first anniversary of the date of grant as compensation for a license to DivineRune’s patent portfolio. We will also share revenues on any future sales of products generated as a result of this agreement. We expect that the partnership will enhance and extend our core anti-counterfeiting, anti-diversion, and security systems into the digital track-and-trace sphere. James A. Hayward, our President, Chairman and Chief Executive Officer, and Yacov Shamash, a member of our Board of Directors, were among the early investors in DivineRune. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | ||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ' | |||||||||||||||||||||||||
INCOME TAXES | ' | ' | |||||||||||||||||||||||||
NOTE J — INCOME TAXES | NOTE H — INCOME TAXES | ||||||||||||||||||||||||||
The Company utilizes ASC 740 “Income Taxes”, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between consolidated financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purpose include, but are not limited to, accounting for intangibles, warrants, equity based compensation and depreciation and amortization. | The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes (“ASC 740-10”) which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes include, but not limited to, accounting for intangibles, debt discounts associated with convertible debt, equity based compensation and depreciation and amortization. | ||||||||||||||||||||||||||
As of September 30, 2013, the Company had available for U.S federal income tax purposes net operating loss carryovers of approximately $46,300,000, which expire beginning the fiscal tax year of 2022. The net operating loss carryovers may be subject to limitations under Internal Revenue Code due to significant changes in the Company’s ownership. The Company has provided a full valuation allowance against the full amount of the net operating loss benefit, since, in the opinion of management, based upon the earnings history of the Company it is more likely than not that the benefits will not be realized. | At September 30, 2012, the Company has available for federal income tax purposes a net operating loss carryforward of approximately $38,000,000, expiring in the year 2032 that may be used to offset future taxable income. The Company has provided a valuation reserve against the full amount of the net operating loss benefit, since in the opinion of management based upon the earnings history of the Company; it is more likely than not that the benefits will not be realized. Due to significant changes in the Company’s ownership, the future use of its existing net operating losses may be limited. Components of deferred tax assets as of September 30, 2012 are as follows: | ||||||||||||||||||||||||||
The income tax provision (benefit) for the years ended September 30, 2013 and 2012 consists of the following: | |||||||||||||||||||||||||||
| Non current: | | | | | | | | |||||||||||||||||||
| | | | 2013 | | | 2012 | | | Net operating loss carryforward | | | | $ | 38,000,000 | | | ||||||||||
| Federal: | | | | | | | | | | | | | | | Valuation allowance | | | | | (38,000,000 | ) | | | |||
| Current | | | | $ | — | | | | | $ | — | | | | Net deferred tax asset | | | | $ | — | | | ||||
| Deferred | | | | | 2,955,000 | | | | | | 1,422,000 | | | | | | | | ||||||||
| | | | | | 2,955,000 | | | | | | 1,422,000 | | | |||||||||||||
| State and local: | | | | | | | | | | | | | | |||||||||||||
| Current | | | | | — | | | | | | — | | | |||||||||||||
| Deferred | | | | | 407,000 | | | | | | 196,000 | | | |||||||||||||
| | | | | | 407,000 | | | | | | 196,000 | | | |||||||||||||
| Change in valuation allowance | | | | | (3,362,000 | ) | | | | | | (1,618,000 | ) | | | |||||||||||
| Income tax provision (benefit) | | | | $ | — | | | | | $ | — | | | |||||||||||||
| | | | | | | | ||||||||||||||||||||
The provision for income taxes differ from the amount of income tax determined by applying the applicable U.S statutory rate to losses before income tax expense for the years ended September 30, 2013 and 2012 as follows: | |||||||||||||||||||||||||||
| | | | September 30, | | ||||||||||||||||||||||
| | | | 2013 | | | 2012 | | |||||||||||||||||||
| Statutory federal income tax rate | | | | | (34.00 | %) | | | | | | (34.00 | %) | | | |||||||||||
| Statutory state and local income tax rate (7.1%), net of federal benefit | | | | | (4.69 | %) | | | | | | (4.69 | %) | | | |||||||||||
| Stock based compensation | | | | | 3.27 | % | | | | | | 10.74 | % | | | |||||||||||
| Depreciation and amortization | | | | | (0.12 | %) | | | | | | (0.28 | %) | | | |||||||||||
| Amortization of debt discount | | | | | 0 | % | | | | | | 2.92 | % | | | |||||||||||
| Change in valuation allowance | | | | | 35.54 | % | | | | | | 25.31 | % | | | |||||||||||
| Effective tax rate | | | | | 0 | % | | | | | | 0 | % | | | |||||||||||
| | | | | | | | ||||||||||||||||||||
Deferred income taxes result from temporary differences in the recognition of income and expenses for financial reporting purposes and for tax purposes. The tax effect of these temporary differences representing deferred tax asset and liabilities result principally from the following: | |||||||||||||||||||||||||||
| | | | September 30, | | ||||||||||||||||||||||
| | | | 2013 | | | 2012 | | |||||||||||||||||||
| Deferred tax assets (liabilities): | | | | | | | | | | | | | | |||||||||||||
| Stock based compensation | | | | $ | 578,000 | | | | | $ | 768,000 | | | |||||||||||||
| Depreciation and amortization | | | | | (21,000 | ) | | | | | | (20,000 | ) | | | |||||||||||
| Amortization of debt discount | | | | | — | | | | | | 209,000 | | | |||||||||||||
| Net operating loss carry forward | | | | | 17,913,000 | | | | | | 14,551,000 | | | |||||||||||||
| Less: valuation allowance | | | | | (18,470,000 | ) | | | | | | (15,508,000 | ) | | | |||||||||||
| Net deferred tax asset | | | | $ | — | | | | | $ | — | | | |||||||||||||
| | | | | | | | ||||||||||||||||||||
The provisions of ASC 740 require companies to recognize in their financial statements the impact of a tax position if that position is more likely than not to be sustained upon audit, based upon the technical merits of the position. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken on a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure. | |||||||||||||||||||||||||||
Management does not believe that the Company has any material uncertain tax positions requiring recognition or measurement in accordance with the provisions of ASC 740. Accordingly, the adoption of these provisions of ASC 740 did not have a material effect on the Company’s consolidated financial statements. The Company’s policy is to record interest and penalties on uncertain tax positions, if any, as income tax expense. | |||||||||||||||||||||||||||
All tax years for the Company remain subject to future examinations by the applicable taxing authorities. |
LOSS_PER_SHARE
LOSS PER SHARE | 12 Months Ended | ||||||||||||||||
Sep. 30, 2012 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
LOSS PER SHARE | ' | ||||||||||||||||
NOTE I — LOSS PER SHARE | |||||||||||||||||
The following table presents the computation of basic and diluted loss per share: | |||||||||||||||||
| | | | For the Year | | | For the Year | | |||||||||
Ended | Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2012 | 2011 | ||||||||||||||||
| Net loss available for common shareholders | | | | $ | (7,150,712 | ) | | | | | $ | (10,515,124 | ) | | | |
| Net Loss per share – basic and diluted | | | | $ | (0.74 | ) | | | | | $ | (1.67 | ) | | | |
| Weighted average common shares outstanding – basic | | | | | 9,601,525 | | | | | | 6,280,563 | | | |||
| Weighted average common shares outstanding – diluted | | | | | 9,601,525 | | | | | | 6,280,563 | | | |||
| | | | | | | | ||||||||||
During the years ended September 30, 2012 and 2011, common stock equivalents are not considered in the calculation of the weighted average number of common shares outstanding because they would be anti-dilutive, thereby decreasing the net loss per common share. |
SUMMARY_OF_ACCOUNTING_POLICIES1
SUMMARY OF ACCOUNTING POLICIES (Policies) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Business and Basis of Presentation | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Business and Basis of Presentation | Business and Basis of Presentation | Business and Basis of Presentation | |||||||||||||||||||||||||||||||||||||||||||||||||
On September 16, 2002, Applied DNA Sciences, Inc. (the “Company”) was incorporated under the laws of the State of Nevada. Effective December 17, 2008, the Company reincorporated from the State of Nevada to the State of Delaware. The Company is principally devoted to developing DNA embedded biotechnology security solutions in the United States and Europe. To date, the Company has had a limited operating history, and as a result, its operations have produced limited recurring revenues from its services and products; it has incurred expenses and has sustained losses. Consequently, its operations are subject to all the risks inherent in the establishment of a biotechnology company. For the period from inception through June 30, 2014, the Company has accumulated losses of $197,654,754. | On September 16, 2002, Applied DNA Sciences, Inc. (the “Company”) was incorporated under the laws of the State of Nevada. Effective December 17, 2008, the Company reincorporated from the State of Nevada to the State of Delaware. The Company is principally devoted to developing DNA embedded biotechnology security solutions in the United States and Europe. To date, the Company has generated limited sales revenues from services and products; it has incurred expenses and has sustained losses. Consequently, its operations are subject to all risks inherent in the establishment of an early stage company. For the period from inception through September 30, 2013, the Company has accumulated losses of $186,693,611. | On September 16, 2002, Applied DNA Sciences, Inc. (the “Company”, “we”, “our” or “us”) was incorporated under the laws of the State of Nevada. Effective December 17, 2008, the Company reincorporated from the State of Nevada to the State of Delaware. The Company is principally devoted to developing DNA embedded biotechnology security solutions in the United States and Europe. | |||||||||||||||||||||||||||||||||||||||||||||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Applied DNA Operations Management, Inc., APDN (B.V.I.) Inc. and Applied DNA Sciences Europe Limited, which currently have no operations or activity. | The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Applied DNA Operations Management, Inc., APDN (B.V.I.) Inc. and Applied DNA Sciences Europe Limited, which currently have no operations. Significant inter-company transactions have been eliminated in consolidation. | The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Applied DNA Operations Management, Inc., APDN (B.V.I.) Inc. and Applied DNA Sciences Europe Limited, which currently have no operations. Significant inter-company transactions have been eliminated in consolidation. | |||||||||||||||||||||||||||||||||||||||||||||||||
Estimates | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Use of Estimates | Use of Estimates | Estimates | |||||||||||||||||||||||||||||||||||||||||||||||||
The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The most complex and subjective estimates include; recoverability of long-lived assets, including the value assigned to intangible assets and property and equipment, fair value calculations for warrants and stock based compensation, contingencies and allowance for doubtful accounts. Management reviews its estimates on a regular basis and the effects of any material revisions are reflected in the condensed consolidated interim financial statements in the period they are deemed necessary. Accordingly, actual results could differ from those estimates. | The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect certainreported amounts and disclosures. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The most complex and subjective estimates include; recoverability of long-lived assets, including the value assigned to intangible assets and property and equipment, fair value calculations for warrants, contingencies and allowances for doubtful accounts. Management reviews its estimates on a regular basis and the effects of any material revisions are reflected in the consolidated financial statements in the period they are deemed necessary. Accordingly, actual results could differ from those estimates. | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. | |||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications | Reclassifications | ||||||||||||||||||||||||||||||||||||||||||||||||||
Certain reclassifications have been made in prior year’s financial statements to conform with the current year’s financial statements’ presentation. | Certain reclassifications have been made in prior year’s financial statements to conform with the current year’s financial statements’ presentation. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition | Revenue Recognition | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 605, Revenue Recognition (“ASC 605”). ASC 605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred and/or service has been performed; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered or services provided and the collectability of those amounts. Provisions for allowances and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product has not been delivered, service has not been provided, or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered, the service has been provided, or no refund will be required. At June 30, 2014 and September 30, 2013, the Company recorded deferred revenue of $348,624 and $148,503, respectively. | The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 605, Revenue Recognition (“ASC 605”). ASC 605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred and/or service has been performed; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered or services provided and the collectability of those amounts. Provisions for allowances and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product has not been delivered, service has not been provided, or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered, the service has been provided, or no refund will be required. At September 30, 2013 and 2012, the Company recorded deferred revenue of $148,503 and $0, respectively. | Revenues are derived from research, development, qualification and production testing for certain commercial products. Revenue from fixed price testing contracts is generally recorded upon completion of the contracts, which are generally short-term, or upon completion of identifiable contractual tasks. At the time the Company enters into a contract that includes multiple tasks, the Company estimates the amount of actual labor and other costs that will be required to complete each task based on historical experience. Revenues are recognized which provide for a profit margin relative to the testing performed. Revenue relative to each task and from contracts which are time and materials based is recorded as effort is expended. Billings in excess of amounts earned are deferred. Any anticipated losses on contracts are charged to income when identified. To the extent management does not accurately forecast the level of effort required to complete a contract, or individual tasks within a contract, and the Company is unable to negotiate additional billings with a customer for cost over-runs, the Company may incur losses on individual contracts. All selling, general and administrative costs are treated as period costs and expensed as incurred. | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenue arrangements with multiple components are divided into separate units of accounting if certain criteria are met, including whether the delivered component has stand-alone value to the customer. Consideration received is allocated among the separate units of accounting based on their respective selling prices. The selling price for each unit is based on vendor-specific objective evidence, or VSOE, if available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third party is available. The applicable revenue recognition criteria are then applied to each of the units. | Revenue arrangements with multiple components are divided into separate units of accounting if certain criteria are met, including whether the delivered component has stand-alone value to the customer. Consideration received is allocated among the separate units of accounting based on their respective selling prices. The selling price for each unit is based on vendor-specific objective evidence, or VSOE, if available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third party is available. The applicable revenue recognition criteria are then applied to each of the units. | For revenue from product sales, the Company recognizes revenue in accordance with Accounting Standards Codification subtopic 605-10, Revenue Recognition (“ASC 605-10”). ASC 605-10 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for allowances and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. At September 30, 2012 and 2011, the Company did not record any deferred revenue for the respective periods. | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenue for a government contract award, which supports the Company’s development efforts on specific projects, is recognized as milestones are achieved as per the contract. The Company recognized revenue of approximately $0 and $50,000 from this contract award during the three and nine month periods ended June 30, 2014, respectively. | Revenue for a Government contract award, which supports our development efforts on specific projects is recognized as milestones are achieved as per the contract. The Company recognized revenue of $100,000 from this contract during the year ended September 30, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Equivalents | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash Equivalents | Cash Equivalents | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the purpose of the accompanying consolidated financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. | For the purpose of the accompanying consolidated financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable | Accounts Receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||
The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change. At September 30, 2013 and 2012, the Company has an allowance for doubtful accounts of $62,415 and $0, respectively. The Company writes-off receivables that are deemed uncollectible. The Company wrote-off $15,000 and $0 of accounts receivable that was not previously reserved for during the year ended September 30, 2013 and 2012, respectively. | The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change. At September 30, 2012 and 2011, the Company has deemed that no allowance for doubtful accounts was necessary. The Company writes-off receivables that are deemed uncollectible. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes | Income Taxes | |||||||||||||||||||||||||||||||||||||||||||||||||
In its interim financial statements the Company follows the guidance in ASC 270, “Interim Reporting” (“ASC 270”) and ASC 740, “Income Taxes (“ASC 740”) whereby the Company utilizes the expected annual effective tax rate in determining its income tax provisions for the interim period’s income or loss. The rate differs from the U.S. statutory rate primarily as a result of certain net operating loss carryforwards and permanent differences between book and tax reporting. | The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740-10”) which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes include, but not limited to, accounting for intangibles, warrants, equity based compensation and depreciation and amortization. | The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes (“ASC 740-10”) which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes include, but not limited to, accounting for intangibles, debt discounts associated with convertible debt, equity based compensation and depreciation and amortization. The adoption of ASC 740-10 did not have a material impact on the Company’s consolidated results of operations or financial condition. | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all of the deferred tax asset will not be realized. During the year ended September 30, 2013 and the three and nine month periods ended June 30, 2014, the Company incurred losses from operations. Based upon these results and the trends in the Company’s performance projected for the remainder of fiscal year 2014, it is more likely than not that the Company will not realize any benefit from the deferred tax assets recorded by the Company in previous periods. Management makes judgments as to the interpretation of tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. The Company has identified its federal tax return and its state tax return in New York as “major” tax jurisdictions. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company condensed consolidated financial statements. | The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all of the deferred tax asset will not be realized. During the years ended September 30, 2013 and 2012, the Company incurred losses from operations. Based upon these results and the trends in the Company’s performance projected for fiscal year 2014, it is more likely than not that the Company will not realize any benefit from the deferred tax assets recorded by the Company in previous periods. Management makes judgments as to the interpretation of tax laws that might be challenged upon an audit and cause changes to previously estimates of tax liability. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. The Company has identified its federal tax return and its state tax return in New York as “major” tax jurisdictions. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company consolidated financial statements. | ||||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s evaluation was performed for tax years 2010 through 2012. The Company believes that its income tax positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to its financial position. It is the Company’s policy to accrue interest and penalties on unrecognized tax benefits as components of income tax provision. The Company did not have any accrued interest or penalties as of June 30, 2014 and September 30, 2013. | The Company’s evaluation was performed for tax years 2009 through 2012. The Company believes that its income tax positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to its financial position. It is the Company’s policy to accrue interest and penalties on unrecognized tax benefits as components of income tax provision. The Company did not have any accrued interest or penalties as of September 30, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Property Plant and Equipment | Property Plant and Equipment | Property and Equipment | |||||||||||||||||||||||||||||||||||||||||||||||||
Property plant and equipment are stated at cost and depreciated using the straight line method over their estimated useful lives. The estimated useful lives for computer equipment, lab equipment and furniture is 3 to 5 years and leasehold improvements are amortized over the shorter of their useful life or the lease term. Property plant and equipment consist of: | Property Plant and equipment are stated at cost and depreciated using the straight line method over their estimated useful lives. The estimated useful for computer equipment, lab equipment and furniture is 3 to 5 years and leasehold improvements are amortized over the shorter of their useful life or the lease terms. Property plant and equipment consist of: | Property and equipment are stated at cost and depreciated over their estimated useful lives of 3 to 5 years using the straight line method. At September 30, 2012 and 2011, property and equipment consist of: | |||||||||||||||||||||||||||||||||||||||||||||||||
| | | | June 30, | | | September 30, | | | | | | September 30, | | | | | | 2012 | | | 2011 | | ||||||||||||||||||||||||||||
2014 | 2013 | | | | | 2013 | | | 2012 | | | Computer equipment | | | | $ | 33,464 | | | | | $ | 33,464 | | | ||||||||||||||||||||||||||
| | | | (unaudited) | | | | | Computer equipment | | | | $ | 43,555 | | | | | $ | 33,464 | | | | Lab equipment | | | | | 296,904 | | | | | | 146,101 | | | ||||||||||||||
| Computer equipment | | | | $ | 69,182 | | | | | $ | 43,555 | | | | Lab equipment | | | | | 657,735 | | | | | | 296,904 | | | | Furniture | | | | | 132,435 | | | | | | 120,405 | | | |||||||
| Lab equipment | | | | | 832,036 | | | | | | 657,735 | | | | Furniture | | | | | 164,997 | | | | | | 132,435 | | | | Total | | | | | 462,803 | | | | | | 299,970 | | | |||||||
| Furniture | | | | | 164,997 | | | | | | 164,997 | | | | Leasehold improvements | | | | | 239,337 | | | | | | — | | | | Accumulated depreciation | | | | | 251,958 | | | | | | 210,862 | | | |||||||
| Leasehold improvements | | | | | 248,931 | | | | | | 239,337 | | | | Total | | | | | 1,105,624 | | | | | | 462,803 | | | | Property and equipment, net | | | | $ | 210,845 | | | | | $ | 89,108 | | | |||||||
| Total | | | | | 1,315,146 | | | | | | 1,105,624 | | | | Accumulated depreciation | | | | | 409,629 | | | | | | 251,958 | | | | | | | | | | | ||||||||||||||
| Accumulated depreciation | | | | | 665,729 | | | | | | 409,629 | | | | Property and equipment, net | | | | $ | 695,995 | | | | | $ | 210,845 | | | ||||||||||||||||||||||
| Property plant and equipment, net | | | | $ | 649,417 | | | | | $ | 695,995 | | | | | | | | | | | |||||||||||||||||||||||||||||
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Depreciation expense for the years ended September 30, 2013 and 2012 were $157,671 and $41,096, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation expense for the three and nine month periods ended June 30, 2014 was $90,223 and $256,100, respectively. Depreciation expense for the three and nine month periods ended June 30, 2013 was $42,810 and $85,636, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of Long-Lived Assets | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company evaluates its long lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of long-lived assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. As of June 30, 2014, the Company concluded that its long-lived assets were not required to be tested for recoverability. | The Company accounts for its long-lived assets in accordance with ASC 360, Property, Plant and Equipment (“ASC 360”). ASC 360 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell. For the years ended September 30, 2013 and 2012, the Company recognized impairment charges of $114,730 and $0, respectively related to certain intellectual property. | The Company has adopted Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long lived assets for impairment annually or more often if events and circumstances warrant. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Shouldimpairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell. | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | |||||||||||||||||||||||||||||||||||||||||||||||||||
The Company does not have any items of comprehensive income in any of the years presented. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information | ||||||||||||||||||||||||||||||||||||||||||||||||||
The Company follows the provisions of ASC 280, Segment Reporting (“ASC 280-10”). ASC 280 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision- making group, in making decisions how to allocate resources and assess performance. The information disclosed herein, materially represents all of the financial information related to the Company’s single principal operating segment. | The Company adopted Accounting Standards Codification subtopic Segment Reporting 280-10 (“ASC 280-10”). ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision- making group, in making decisions how to allocate resources and assess performance. The information disclosed herein, materially represents all of the financial information related to the Company’s single principal operating segment. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Share | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Share | Net Loss per Share | Net Loss Per Share | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company presents loss per share utilizing a dual presentation of basic and diluted loss per share. Basic loss per share includes no dilution and has been calculated based upon the weighted average number of common shares outstanding during the period. Dilutive common stock equivalents consist of shares issuable upon the exercise of the Company’s stock options and warrants. | The Company presents loss per share utilizing a dual presentation of basic and diluted loss per share. Basic loss per share includes no dilution and has been calculated based upon the weighted average number of common shares outstanding during the period. Dilutive common stock equivalents consist of shares issuable upon the exercise of the Company’s stock options and warrants. | The Company has adopted Accounting Standards Codification subtopic 260-10, Earnings Per Share (“ASC 260-10”) which specifies the computation, presentation and disclosure requirements of earnings per share information. Basic earnings per share have been calculated based upon the weighted average number of common shares outstanding. Dilutive common stock equivalents consist of shares issuable upon conversion of convertible notes and the exercise of the Company’s stock options and warrants. For the years ended September 30, 2012 and 2011, common stock equivalent shares are excluded from the computation of the diluted loss per share as their effect would be anti-dilutive. | |||||||||||||||||||||||||||||||||||||||||||||||||
For the three and nine month periods ended June 30, 2014 and 2013, common stock equivalent shares are excluded from the computation of the diluted loss per share as their effect would be anti-dilutive. | For the years ended September 30, 2013 and 2012, common stock equivalent shares are excluded from the computation of the diluted loss per share as their effect would be anti-dilutive. | Fully diluted shares outstanding were 11,538,808 and 9,016,160 for the years ended September 30, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||
A summary of potential stock issuances under various options, and warrants that could have a dilutive effect on the shares outstanding for the three and nine months ended June 30, 2014 and 2013 are as follows: | Fully diluted shares outstanding were 13,993,065 and 11,538,808 for the years ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | 2014 | | | 2013 | | |||||||||||||||||||||||||||||||||||||||||||
| Warrants | | | | | 240,439 | | | | | | 292,106 | | | |||||||||||||||||||||||||||||||||||||
| Employee options | | | | | 2,073,043 | | | | | | 1,614,872 | | | |||||||||||||||||||||||||||||||||||||
| | | | | | 2,313,482 | | | | | | 1,906,978 | | | |||||||||||||||||||||||||||||||||||||
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Stock Based Compensation | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation | Stock Based Compensation | Stock Based Compensation | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718, Compensation (“ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statement of operations based on their fair values. Under the provisions of ASC 718, stock-based compensation costs is measured at the grant date, based on the fair value of the award, and is recognized as expense over the employee’s requisite service period (generally the vesting period of the equity grant). The fair value of the Company’s common stock options are estimated using the Black Scholes option-pricing model with the following assumptions: expected volatility, dividend rate, risk free interest rate and the expected life. The Company expenses stock-based compensation by using the straight-line method. In accordance with ASC 718, excess tax benefits realized from the exercise of stock-based awards are classified in cash flows from financing activities. The future realization of the reserved deferred tax assets related to these tax benefits associated with the exercise of stock options will result in a credit to additional paid in capital if the related tax deduction reduces taxes payable. The Company has elected the “with and without approach” regarding ordering of windfall tax benefits to determine whether the windfall tax benefit did reduce taxes payable in the current year. Under this approach, the windfall tax benefit would be recognized in additional paid-in-capital only if an incremental tax benefit is realized after considering all other benefits presently available. | The Company accounts for stock-based compensation in accordance with ASC 718, Compensation (“ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statement of operations based on their fair values. Under the provisions of ASC 718, stock-based compensation costs is measured at the grant date, based on the fair value of the award, and is recognized as expense over the employee’s requisite service period (generally the vesting period of the equity grant). The fair value of the Company’s common stock options are estimated using the Black Scholes option-pricing model with the following assumptions: expected volatility, dividend rate, risk free interest rate and the expected life. The Company expenses stock-based compensation by using the straight-line method. In accordance with ASC 718, excess tax benefits realized from the exercise ofstock-based awards are classified in cash flows from financing activities. The future realization of the reserved deferred tax assets related to these tax benefits associated with the exercise of stock options will result in a credit to additional paid in capital if the related tax deduction reduces taxes payable. The Company has elected the “with and without approach” regarding ordering of windfall tax benefits to determine whether the windfall tax benefit did reduce taxes payable in the current year. Under this approach, the windfall tax benefit would be recognized in additional paid-in-capital only if an incremental tax benefit is realized after considering all other benefits presently available. Stock-based compensation expense recognized under ASC 718 for the years ended September 30, 2013 and 2012 was $1,926,129 and $1,953,844, respectively. | The Company follows Accounting Standards Codification subtopic 718-10, Compensation (“ASC 718-10”) which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statement of operations based on their fair values. Stock-based compensation expense recognized under ASC 718-10 for the years ended September 30, 2012 and 2011 was $1,953,844 and $1,485,068, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2012, 2,086,814 employee stock options were outstanding with 1,619,938 shares vested and exercisable. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations | Concentrations | Concentrations | |||||||||||||||||||||||||||||||||||||||||||||||||
Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. | Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. | Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s revenues earned from sale of products and services for the three month period ended June 30, 2014 included an aggregate of 10% from one customer of the Company’s total revenues. This customer accounted for approximately 10% of the Company’s total accounts receivable at June 30, 2014. During the nine month period ended June 30, 2014 no customers represented 10% or greater of the Company’s total revenues. | No customers represented greater than 10% of the Company’s total revenues for the year ended September 30, 2013. The Company’s revenues earned from sale of products and services for the year ended September 30, 2012 included an aggregate of 54% from two customers of the Company’s total revenues. Three and two customers accounted 43% and 54% of the Company’s total accounts receivable at September 30, 2013 and 2012, respectively. | The Company’s revenues earned from sale of products and services for the years ended September 30, 2012 and 2011 included an aggregate of 54% and 53%, respectively, from two and three customers, respectively of the Company’s total revenues. Two and four customers accounted for the Company’s 54% and 77% of total accounts receivable at September 30, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s revenues earned from the sale of products and services for the nine month period ended June 30, 2013 included an aggregate of 14% from one customer of the Company’s total revenues. This customer did not account for any of the Company’s total accounts receivable at June 30, 2013. No customers represented greater than 10% of the Company’s total revenues for the three month period ended June 30, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Research and Development | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Research and Development | Research and Development | ||||||||||||||||||||||||||||||||||||||||||||||||||
The Company accounts for research and development costs in accordance with the ASC 730, Research and Development (“ASC 730”). Under ASC 730, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred research and development expenses of $692,480 and $432,669 for the years ended September 30, 2013 and 2012, respectively. | The Company accounts for research and development costs in accordance with the Accounting Standards Codification subtopic 730-10, Research and Development (“ASC 730-10”). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred research and development expenses of $432,669 and $268,876 for the years ended September 30, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Advertising | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Advertising | Advertising | Advertising | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations $10,115 and $21,825 as advertising costs for the three month periods ended June 30, 2014 and 2013, respectively, and $85,033 and $158,636 for the nine month periods ended June 30, 2014 and 2013, respectively. | The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations $196,762 and $97,877 as advertising costs for the years ended September 30, 2013 and 2012, respectively. | The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations $97,877 and $131,938 as advertising costs for the years ended September 30, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets | Intangible Assets | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company amortizes its intangible assets using the straight-line method over their estimated period of benefit. The estimated useful life for patents is five years while other intellectual property uses a seven year useful life. All of the Company’s intangible assets are subject to amortization. | The Company amortizes its intangible assets using the straight-line method over their estimated period of benefit. The estimated useful life for patents is five years while other intellectual property uses a seven year useful life. The Company periodically evaluates the recoverability of intangible assets and takes into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. All of the Company’s intangible assets are subject to amortization. | The Company amortizes its intangible assets using the straight-line method over their estimated period of benefit. The estimated useful life for patents is five years while other intellectual property uses a seven year useful life. We periodically evaluate the recoverability of intangible assets and take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. All of our intangible assets are subject to amortization. | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||
The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: | The Company’s financial instruments are primarily composed of cash, accounts receivable, accounts payable and accrued liabilities, and warrants. The fair value of cash, accounts receivable, accounts payable and accrued liabilities, as reflected in the consolidated balance sheet, approximate its fair value due to the short-term maturity of these instruments. | In the first quarter of fiscal year 2008, the Company adopted Accounting Standards Codification subtopic 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”). ASC 820-10 defines fair value, establishes a framework for measuring fair value, and enhances fair value measurement disclosure. ASC 820-10 delayed, until the first quarter of fiscal year 2009, the effective date for ASC 820-10 for all non-financial assets and non-financial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). The adoption of ASC 820-10 did not have a material impact on the Company’s financial position or operations. | |||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 — Quoted prices in active markets for identical assets or liabilities. | The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: | Effective October 1, 2008, the Company adopted Accounting Standards Codification subtopic 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”) and Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”), which permits entities to choose to measure many financial instruments and certain other items at fair value. Neither of these statements had an impact on the Company’s consolidated financial position, results of operations or cash flows. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings, as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments. | |||||||||||||||||||||||||||||||||||||||||||||||||
Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related asset or liabilities. | Level 1 — Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. | Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related asset or liabilities. | ||||||||||||||||||||||||||||||||||||||||||||||||||
The Company utilizes observable market inputs (quoted market prices) when measuring fair value whenever possible. | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. | ||||||||||||||||||||||||||||||||||||||||||||||||||
For fair value measurements categorized within Level 3 of the fair value hierarchy, the Company’s accounting and finance department, who report to the Chief Financial Officer, determine its valuation policies and procedures. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s accounting and finance department and are approved by the Chief Financial Officer. | The Company utilizes observable market inputs (quoted market prices) when measuring fair value whenever possible. | ||||||||||||||||||||||||||||||||||||||||||||||||||
For fair value measurements categorized within Level 3 of the fair value hierarchy, the Company’s accounting and finance department, who report to the Chief Financial Officer, determine its valuation policies and procedures. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s accounting and finance department and are approved by the Chief Financial Officer. | |||||||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2013, there were no transfers in or out of Level 3 from other levels. | |||||||||||||||||||||||||||||||||||||||||||||||||||
The fair value of each warrant is estimated using the Binomial Lattice option valuation model. Significant observable and unobservable inputs include stock price, exercise price, annual risk free rate, term, and expected volatility, and are classified within Level 3 of the valuation hierarchy. An increase or decrease in volatility, in isolation, can significantly increase or decrease the fair value of the warrant. See Note L. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements | Recently Adopted Accounting Principles | Recently Adopted Accounting Principles | |||||||||||||||||||||||||||||||||||||||||||||||||
There were various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s unaudited condensed consolidated financial position, results of operations or cash flows. | There were various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s consolidated financial position, results of operations or cash flows | There were various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s consolidated financial position, results of operations or cash flows. | |||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events | Subsequent Events | ||||||||||||||||||||||||||||||||||||||||||||||||||
The Company has evaluated events that occurred subsequent to the balance sheet date and through the date the financial statements are issued. Other than those events disclosed in the notes to these condensed consolidated financial statements, management concluded that no additional subsequent events required disclosure in these condensed consolidated financial statements. | The Company has evaluated events that occurred subsequent to the balance sheet date and through the date the financial statements were available to be issued. Other than those events disclosed in the notes to these consolidated financial statements, management concluded that no additional subsequent events required disclosure in these consolidated financial statements. |
SUMMARY_OF_ACCOUNTING_POLICIES2
SUMMARY OF ACCOUNTING POLICIES (Tables) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property, plant and equipment | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
| | | | September 30, | | ||||||||||||||||||||||||||||||||||||||||||||||
| | | | June 30, | | | September 30, | | | | | | 2013 | | | 2012 | | | | | | 2012 | | | 2011 | | |||||||||||||||||||||||||
2014 | 2013 | | Computer equipment | | | | $ | 43,555 | | | | | $ | 33,464 | | | | Computer equipment | | | | $ | 33,464 | | | | | $ | 33,464 | | | ||||||||||||||||||||
| | | | (unaudited) | | | | | Lab equipment | | | | | 657,735 | | | | | | 296,904 | | | | Lab equipment | | | | | 296,904 | | | | | | 146,101 | | | ||||||||||||||
| Computer equipment | | | | $ | 69,182 | | | | | $ | 43,555 | | | | Furniture | | | | | 164,997 | | | | | | 132,435 | | | | Furniture | | | | | 132,435 | | | | | | 120,405 | | | |||||||
| Lab equipment | | | | | 832,036 | | | | | | 657,735 | | | | Leasehold improvements | | | | | 239,337 | | | | | | — | | | | Total | | | | | 462,803 | | | | | | 299,970 | | | |||||||
| Furniture | | | | | 164,997 | | | | | | 164,997 | | | | Total | | | | | 1,105,624 | | | | | | 462,803 | | | | Accumulated depreciation | | | | | 251,958 | | | | | | 210,862 | | | |||||||
| Leasehold improvements | | | | | 248,931 | | | | | | 239,337 | | | | Accumulated depreciation | | | | | 409,629 | | | | | | 251,958 | | | | Property and equipment, net | | | | $ | 210,845 | | | | | $ | 89,108 | |||||||||
| Total | | | | | 1,315,146 | | | | | | 1,105,624 | | | | Property and equipment, net | | | | $ | 695,995 | | | | | $ | 210,845 | ||||||||||||||||||||||||
| Accumulated depreciation | | | | | 665,729 | | | | | | 409,629 | | | |||||||||||||||||||||||||||||||||||||
| Property plant and equipment, net | | | | $ | 649,417 | | | | | $ | 695,995 | |||||||||||||||||||||||||||||||||||||||
Schedule of summary of potential stock issuances under various options, and warrants that could have a dilutive effect on the shares outstanding | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
| | | | 2014 | | | 2013 | | |||||||||||||||||||||||||||||||||||||||||||
| Warrants | | | | | 240,439 | | | | | | 292,106 | | | |||||||||||||||||||||||||||||||||||||
| Employee options | | | | | 2,073,043 | | | | | | 1,614,872 | | | |||||||||||||||||||||||||||||||||||||
| | | | | | 2,313,482 | | | | | | 1,906,978 |
ACCOUNTS_PAYABLE_AND_ACCRUED_L1
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accounts payable and accrued liabilities | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
| | | | June 30, | | | September 30, | | | | | | 2013 | | | 2012 | | | | | | 2012 | | | 2011 | | |||||||||||||||||||||||||
2014 | 2013 | | Accounts payable | | | | $ | 641,302 | | | | | $ | 473,060 | | | | Accounts payable | | | | $ | 473,060 | | | | | $ | 165,465 | | | ||||||||||||||||||||
| | | | (unaudited) | | | | | Accrued consulting fees | | | | | 102,500 | | | | | | 102,500 | | | | Accrued consulting fees | | | | | 102,500 | | | | | | 102,500 | | | ||||||||||||||
| Accounts payable | | | | $ | 904,794 | | | | | $ | 641,302 | | | | Accrued salaries payable | | | | | 220,175 | | | | | | 16,449 | | | | Accrued interest payable | | | | | — | | | | | | 415,096 | | | |||||||
| Accrued consulting fees | | | | | 102,500 | | | | | | 102,500 | | | | Other accrued expenses | | | | | 3,000 | | | | | | — | | | | Accrued salaries payable | | | | | 16,449 | | | | | | 85,000 | | | |||||||
| Accrued salaries payable | | | | | 175,009 | | | | | | 220,175 | | | | Total | | | | $ | 966,977 | | | | | $ | 592,009 | | Total | | | | $ | 592,009 | | | | | $ | 768,061 | |||||||||||
| Other accrued expenses | | | | | 77,136 | | | | | | 3,000 | | | |||||||||||||||||||||||||||||||||||||
| Total | | | | $ | 1,259,439 | | | | | $ | 966,977 | | | |||||||||||||||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||
WARRANT_LIABILITY_Tables
WARRANT LIABILITY (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||
Warrant Liability [Abstract] | ' | ||||||||||||||||||||||||||||||
Schedule of details of Series A, B and C Warrants allowing Crede to purchase the shares of Common Stock | ' | ||||||||||||||||||||||||||||||
| Securities Issued | | | Initial Purchase Agreement | | | Second Purchase Agreement | | |||||||||||||||||||||||
| | | | Shares issued | | | Price per share | | | Shares issued | | | Price per share | | |||||||||||||||||
| Series A Warrants | | | | | 179,211 | | | | | $ | 13.39 | | | | | | 178,253 | | | | | $ | 14.59 | | | |||||
| Series B Warrants | | | | | 492,831 | | | | | $ | 13.39 | | | | | | 490,196 | | | | | $ | 14.59 | | | |||||
| Series C Warrants | | | | | 448,029 | | | | | $ | 13.39 | | | | | | 445,633 | | | | | $ | 14.59 |
CAPITAL_STOCK_Tables
CAPITAL STOCK (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||||||||||||||
Schedule of summary of the securities issued as part of the purchase agreements | ' | ||||||||||||||||||||||||||||||
| Securities Issued | | | Initial Purchase Agreement | | | Second Purchase Agreement | | |||||||||||||||||||||||
| | | | Shares issued | | | Price per share | | | Shares issued | | | Price per share | | |||||||||||||||||
| Common Stock | | | | | 179,211 | | | | | $ | 11.16 | | | | | | 178,253 | | | | | $ | 11.22 | | | |||||
| Series A Warrants | | | | | 179,211 | | | | | $ | 13.39 | | | | | | 178,253 | | | | | $ | 14.59 | | | |||||
| Series B Warrants | | | | | 492,831 | | | | | $ | 13.39 | | | | | | 490,196 | | | | | $ | 14.59 | | | |||||
| Series C Warrants | | | | | 448,029 | | | | | $ | 13.39 | | | | | | 445,633 | | | | | $ | 14.59 | | | |||||
| Series A Preferred Stock | | | | | 5,500 | | | | | $ | 1,000 | | | | | | — | | | | | $ | — | | | |||||
| Series B Preferred Stock | | | | | — | | | | | $ | — | | | | | | 5,500 | | | | | $ | 1,000 |
STOCK_OPTIONS_AND_WARRANTS_Tab
STOCK OPTIONS AND WARRANTS (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of summary of the changes in warrants outstanding and the related prices for the shares of common Stock issued to non-employees of the company | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercise | | | Number | | | Warrants | | | Weighted | | | Weighted | | | Exercisable | | | Exercise | | | Number | | | Warrants | | | Weighted | | | Weighted | | | Exercisable | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prices | Outstanding | Outstanding | Average | Average | Weighted | Prices | Outstanding | Outstanding | Average | Average | Weighted | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining | Exercise | Exercisable | Average | Remaining | Exercise | Exercisable | Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual | Price | Exercise | Contractual | Price | Exercise | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Life (Years) | Price | Life (Years) | Price | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | $2.40 | | | | | | 50,000 | | | | | | 1.92 | | | | | $ | 2.4 | | | | | | 50,000 | | | | | $ | 2.4 | | | | | $1.85 | | | | | | 26,985 | | | | | | 5.17 | | | | | $ | 1.85 | | | | | | 26,985 | | | | | $ | 1.85 | | | |||||||||||||||||||||||||||||||||||||||
| | $2.64 | | | | | | 8,513 | | | | | | 3.79 | | | | | $ | 2.64 | | | | | | 8,513 | | | | | $ | 2.64 | | | | | $1.97 | | | | | | 5,924 | | | | | | 5.14 | | | | | $ | 1.97 | | | | | | 5,924 | | | | | $ | 1.97 | | | |||||||||||||||||||||||||||||||||||||||
| | $2.85 | | | | | | 63,158 | | | | | | 4.79 | | | | | $ | 2.85 | | | | | | 63,158 | | | | | $ | 2.85 | | | | | $2.40 | | | | | | 50,000 | | | | | | 2.92 | | | | | $ | 2.4 | | | | | | 50,000 | | | | | $ | 2.4 | | | |||||||||||||||||||||||||||||||||||||||
| | $3.32 | | | | | | 3,768 | | | | | | 4.27 | | | | | $ | 3.32 | | | | | | 3,768 | | | | | $ | 3.32 | | | | | $2.64 | | | | | | 33,485 | | | | | | 4.79 | | | | | $ | 2.64 | | | | | | 33,485 | | | | | $ | 2.64 | | | |||||||||||||||||||||||||||||||||||||||
| | $3.60 | | | | | | 33,333 | | | | | | 0.39 | | | | | $ | 3.6 | | | | | | 33,333 | | | | | $ | 3.6 | | | | | $2.85 | | | | | | 84,211 | | | | | | 5.79 | | | | | $ | 2.85 | | | | | | 84,211 | | | | | $ | 2.85 | | | |||||||||||||||||||||||||||||||||||||||
| | $4.26 | | | | | | 16,667 | | | | | | 1.32 | | | | | $ | 4.26 | | | | | | 16,667 | | | | | $ | 4.26 | | | | | $3.32 | | | | | | 15,072 | | | | | | 5.27 | | | | | $ | 3.32 | | | | | | 15,072 | | | | | $ | 3.32 | | | |||||||||||||||||||||||||||||||||||||||
| | $5.40 | | | | | | 115,000 | | | | | | 2.92 | | | | | $ | 5.4 | | | | | | 115,000 | | | | | $ | 5.4 | | | | | $3.60 | | | | | | 200,000 | | | | | | 2.38 | | | | | $ | 3.6 | | | | | | 200,000 | | | | | $ | 3.6 | | | |||||||||||||||||||||||||||||||||||||||
| | $10.74 | | | | | | 1,667 | | | | | | 2.1 | | | | | $ | 10.74 | | | | | | 1,667 | | | | | $ | 10.74 | | | | | $4.26 | | | | | | 16,667 | | | | | | 2.32 | | | | | $ | 4.26 | | | | | | — | | | | | $ | — | | | |||||||||||||||||||||||||||||||||||||||
| | $12.84 | | | | | | 1,667 | | | | | | 2.6 | | | | | $ | 12.84 | | | | | | — | | | | | $ | — | | | | | $5.40 | | | | | | 165,000 | | | | | | 3.92 | | | | | $ | 5.4 | | | | | | 165,000 | | | | | $ | 5.4 | | | |||||||||||||||||||||||||||||||||||||||
| | $14.59 | | | | | | 668,449 | | | | | | 4.8 | | | | | $ | 14.59 | | | | | | 668,449 | | | | | $ | 14.59 | | | | | $6.00 | | | | | | 25,000 | | | | | | 0.48 | | | | | $ | 6 | | | | | | 25,000 | | | | | $ | 6 | | | |||||||||||||||||||||||||||||||||||||||
| | $30.00 | | | | | | 21,667 | | | | | | 0.12 | | | | | $ | 30 | | | | | | 21,667 | | | | | $ | 30 | | | | | $30.00 | | | | | | 141,667 | | | | | | 0.34 | | | | | $ | 30 | | | | | | 141,667 | | | | | $ | 30 | | | |||||||||||||||||||||||||||||||||||||||
| | | | | | | 983,889 | | | | | | 4.1 | | | | | $ | 11.86 | | | | | | 982,222 | | | | | $ | 11.78 | | | | | | | | 764,011 | | | | | | 2.97 | | | | | $ | 8.4 | | | | | | 747,344 | | | | | $ | 8.7 | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of transactions involving warrants | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | Number of | | | Weighted | | | | | | Number of | | | Weighted Average | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Average Exercise | Shares | Price Per Share | | | | | Number of | | | Weighted Average Price Per Share | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price Per Share | | Balance, September 30, 2011 | | | | | 970,088 | | | | | $ | 8.4 | | | Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at October 1, 2013 | | | | | 983,888 | | | | | $ | 11.44 | | | | Granted | | | | | 17,917 | | | | | | 4.26 | | | | Balance, September 30, 2010 | | | | | 1,153,466 | | | | | $ | 14.22 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Granted | | | | | 325,346 | | | | | | 8.48 | | | | Exercised | | | | | (83,994 | ) | | | | | | (2.70 | ) | | | | Granted | | | | | 198,289 | | | | | | 2.64 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercised | | | | | (311,586 | ) | | | | | | (13.47 | ) | | | | Cancelled or expired | | | | | (140,000 | ) | | | | | | (9.66 | ) | | | | Exercised | | | | | — | | | | | | — | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cancelled or expired | | | | | (55,000 | ) | | | | | | (14.00 | ) | | | | Balance at September 30, 2012 | | | | | 764,011 | | | | | $ | 8.7 | | | | Cancelled or expired | | | | | (381,667 | ) | | | | | | (23.04 | ) | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2014 | | | | | 942,648 | | | | | $ | 9.6 | | Granted | | | | | 2,237,487 | | | | | | 13.98 | | | | Balance at September 30, 2011 | | | | | 970,088 | | | | | $ | 8.4 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercised | | | | | (1,003,948 | ) | | | | | | (10.20 | ) | | | | Granted | | | | | 17,917 | | | | | | 4.26 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cancelled or expired | | | | | (1,013,661 | ) | | | | | | (15.88 | ) | | | | Exercised | | | | | (83,994 | ) | | | | | | (2.70 | ) | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2013 | | | | | 983,889 | | | | | $ | 11.86 | | | Cancelled or expired | | | | | (140,000 | ) | | | | | | (9.66 | ) | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2012 | | | | | 764,011 | | | | | $ | 8.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of summary of the changes in options outstanding and the related prices for the shares of common Stock issued to employees of the company under the 2005 Incentive Stock Plan | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Options Outstanding | | | Options Exercisable | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Options Outstanding | | | Options Exercisable | | | Exercise | | | Number | | | Weighted | | | Weighted | | | Number | | | Weighted | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercise | | | Number | | | Weighted | | | Weighted | | | Number Exercisable | | | Weighted | | Prices | Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prices | Outstanding | Average | Average | Average | Remaining Contractual | Exercise | Exercise | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining Contractual | Exercise | Exercise | Life (Years) | Price | Price | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Life (Years) | Price | Price | | | $3.00 | | | | | | 483,333 | | | | | | 2.65 | | | | | $ | 3 | | | | | | 483,333 | | | | | $ | 3 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | $3.00 | | | | | | 400,000 | | | | | | 1.65 | | | | | $ | 3 | | | | | | 400,000 | | | | | $ | 3 | | | | | $3.51 | | | | | | 833,333 | | | | | | 5.79 | | | | | $ | 3.51 | | | | | | 520,833 | | | | | $ | 3.51 | | | |||||||||||||||||||||||||||||||||||||||
| | $3.51 | | | | | | 833,333 | | | | | | 4.79 | | | | | $ | 3.51 | | | | | | 833,333 | | | | | $ | 3.51 | | | | | $3.60 | | | | | | 501,668 | | | | | | 2.76 | | | | | $ | 3.6 | | | | | | 375,000 | | | | | $ | 3.6 | | | |||||||||||||||||||||||||||||||||||||||
| | $3.60 | | | | | | 500,000 | | | | | | 1.76 | | | | | $ | 3.6 | | | | | | 500,000 | | | | | $ | 3.6 | | | | | $3.90 | | | | | | 10,580 | | | | | | 4.18 | | | | | $ | 3.9 | | | | | | 10,580 | | | | | $ | 3.9 | | | |||||||||||||||||||||||||||||||||||||||
| | $3.90 | | | | | | 10,580 | | | | | | 3.18 | | | | | $ | 3.9 | | | | | | 10,580 | | | | | $ | 3.9 | | | | | $4.08 | | | | | | 95,400 | | | | | | 4.17 | | | | | $ | 4.08 | | | | | | 95,400 | | | | | $ | 4.08 | | | |||||||||||||||||||||||||||||||||||||||
| | $4.08 | | | | | | 79,500 | | | | | | 3.17 | | | | | $ | 4.08 | | | | | | 79,500 | | | | | $ | 4.08 | | | | | $4.20 | | | | | | 47,500 | | | | | | 2.67 | | | | | $ | 4.2 | | | | | | 19,792 | | | | | $ | 4.2 | | | |||||||||||||||||||||||||||||||||||||||
| | $4.20 | | | | | | 47,500 | | | | | | 1.67 | | | | | $ | 4.2 | | | | | | 31,667 | | | | | $ | 4.2 | | | | | $5.40 | | | | | | 25,000 | | | | | | 3.92 | | | | | $ | 5.4 | | | | | | 25,000 | | | | | $ | 5.4 | | | |||||||||||||||||||||||||||||||||||||||
| | $5.40 | | | | | | 25,000 | | | | | | 2.92 | | | | | $ | 5.4 | | | | | | 25,000 | | | | | $ | 5.4 | | | | | $6.60 | | | | | | 90,000 | | | | | | 0.71 | | | | | $ | 6.6 | | | | | | 90,000 | | | | | $ | 6.6 | | | |||||||||||||||||||||||||||||||||||||||
| | $6.60 | | | | | | 90,000 | | | | | | 4.71 | | | | | $ | 6.6 | | | | | | 90,000 | | | | | $ | 6.6 | | | | | | | | | | 2,086,814 | | | | | | 3.94 | | | | | $ | 3.6 | | | | | | 1,619,938 | | | | | $ | 3.6 | ||||||||||||||||||||||||||||||||||||||||||
| | $10.79 | | | | | | 34,989 | | | | | | 4.17 | | | | | $ | 10.79 | | | | | | — | | | | | $ | — | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | $11.58 | | | | | | 1,667 | | | | | | 4.75 | | | | | $ | 11.58 | | | | | | — | | | | | $ | — | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | $12.00 | | | | | | 1,667 | | | | | | 4.63 | | | | | $ | 12 | | | | | | — | | | | | $ | — | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | 2,024,236 | | | | | | 3.23 | | | | | $ | 3.78 | | | | | | 1,970,080 | | | | | $ | 3.63 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of summary of transactions involving stock options issued to employees | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Number of | | | Weighted | | | Aggregate | | | | | | Number of | | | Weighted Average | | | Aggregate | | | | | Number of | | | Weighted Average | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Average Exercise | Intrinsic Value | Shares | Exercise Price | Intrinsic | Shares | Exercise | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price Per Share | Per Share | Value | Price Per Share | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outstanding at October 1, 2013 | | | | | 2,024,237 | | | | | $ | 3.78 | | | | | | | | | | Outstanding at October 1, 2011 | | | | | 2,010,833 | | | | | $ | 3.6 | | | | | | | | | | Outstanding at October 1, 2010 | | | | | 1,115,000 | | | | | $ | 3.6 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Granted | | | | | 1,221,346 | | | | | | 6.02 | | | | | | | | | | Granted | | | | | 109,314 | | | | | | 4.02 | | | | | | | | | | Granted | | | | | 895,833 | | | | | | 3.6 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercised | | | | | — | | | | | | — | | | | | | | | | | Exercised | | | | | (8,333 | ) | | | | | | (4.80 | ) | | | | | | | | | | Exercised | | | | | — | | | | | | — | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Cancelled or expired | | | | | (83 | ) | | | | | | 5.31 | | | | | | | | | | Cancelled or expired | | | | | (25,000 | ) | | | | | | (4.80 | ) | | | | | | | | | | Cancelled or expired | | | | | — | | | | | | — | | | |||||||||||||||||||||||||||||||||||||||||||||||||
| Outstanding at June 30, 2014 | | | | | 3,245,500 | | | | | $ | 4.61 | | | | | | | | | | Outstanding at September 30, 2012 | | | | | 2,086,814 | | | | | $ | 3.6 | | | | | | | | | | Outstanding at September 30, 2011 | | | | | 2,010,833 | | | | | $ | 3.6 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vested at June 30, 2014 | | | | | 2,185,550 | | | | | $ | 4.02 | | | | | $ | 3.72 | | | | Granted | | | | | 38,323 | | | | | | 10.88 | | | | | | | | | | Granted | | | | | 109,314 | | | | | | 4.02 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-vested at June 30, 2014 | | | | | 1,059,950 | | | | | | | | | | | $ | 1.8 | | | | Exercised | | | | | (99,650 | ) | | | | | | (2.52 | ) | | | | | | | | | | Exercised | | | | | (8,333 | ) | | | | | | (4.80 | ) | | | ||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | Cancelled or expired | | | | | (1,251 | ) | | | | | | (3.60 | ) | | | | | | | | | | Expired | | | | | (25,000 | ) | | | | | | (4.80 | ) | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outstanding at September 30, 2013 | | | | | 2,024,236 | | | | | $ | 3.78 | | | | | | | | | | Outstanding at September 30, 2012 | | | | | 2,086,814 | | | | | $ | 3.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vested at September 30, 2013 | | | | | 1,970,080 | | | | | | | | | | | $ | 8.16 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-vested at September 30, 2013 | | | | | 54,156 | | | | | | | | | | | $ | 3.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of options granted | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | Three Months | | | Nine Months | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 30-Jun-14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock price | | | | $ | 7.47 | | | | | $ | 6.07 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercise price | | | | $ | 5.81 | | | | | $ | 7.29 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividend yield | | | | | 0 | % | | | | | | 0 | % | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Volatility | | | | | 110.46 | % | | | | | | 112.19 | % | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Risk free rate | | | | | 1.19 | % | | | | | | 0.95 | % |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||
Schedule of future minimum rental payments | ' | |||||||||
| 2014 | | | | $ | 450,617 | | | ||
| 2015 | | | | | 449,142 | | | ||
| 2016 | | | | | 299,428 | | | ||
| Total | | | | $ | 1,199,187 |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||
Schedule of fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3) | ' | ' | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
| | | Year Ended September 30, | | ||||||||||||||||||||||||||||||
| | | Nine Month Periods Ended | | | | | | 2013 | | | 2012 | | |||||||||||||||||||||
June 30, | | Balance at October 1, | | | | $ | — | | | | | $ | — | | | |||||||||||||||||||
| | | | 2014 | | | 2013 | | | Issuance of Series A and B Warrants | | | | | 2,461,856 | | | | | | — | | | |||||||||||
| Balance at October 1, 2013 and 2012 | | | | $ | 2,643,449 | | | | | $ | — | | | | Adjustment resulting from change in value recognized in earnings(a) | | | | | 7,508,146 | | | | | | — | | | |||||
| Issuance of Series A and B Warrants | | | | | — | | | | | | 1,181,324 | | | | Reclassification to equity upon exercise | | | | | (7,326,553 | ) | | | | | | — | | | ||||
| Adjustment resulting from change in fair value(a) | | | | | 1,663,316 | | | | | | 6,145,229 | | | | Balance at September 30, | | | | $ | 2,643,449 | | | | | $ | — | | | |||||
| Reclassification to equity upon exercise | | | | | (2,455,042 | ) | | | | | | (7,326,553 | ) | | | | | | | | | | | ||||||||||
| Balance at June 30, | | | | $ | 1,851,723 | | | | | $ | — | | | ||||||||||||||||||||
| | | | | | | | |||||||||||||||||||||||||||
(a) | ||||||||||||||||||||||||||||||||||
Adjustment resulting from change in fair value is the amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to liabilities held at the reporting date. The unrealized gain or loss is recorded in change in fair value of warrant liability in the accompanying condensed consolidated statements of operations. | ||||||||||||||||||||||||||||||||||
(a) | ||||||||||||||||||||||||||||||||||
Adjustment resulting from change in fair value is the amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to warrant liabilities held at the reporting date and realized gains or losses at the date of exercise. The gain or loss is recorded in change in fair value of warrant liability in the accompanying condensed consolidated statements of operations. |
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||||||||||||||||||
Intangible Assets Disclosure [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||
Schedule of intangible assets acquired and their carrying values | ' | ' | ||||||||||||||||||||||||||||||||
| | | | 2012 | | | 2011 | | ||||||||||||||||||||||||||
| | | | 2013 | | | 2012 | | | Trade secrets and developed technologies (Weighted average life of 7 years) | | | | $ | 9,430,900 | | | | | $ | 9,430,900 | | | |||||||||||
| Trade secrets and developed technologies (Weighted average life of 7 years) | | | | $ | — | | | | | $ | 3,775,889 | | | | Patents (Weighted average life of 5 years) | | | | | 34,257 | | | | | | 34,257 | | | |||||
| Patents (Weighted average life of 5 years) | | | | | — | | | | | | 34,257 | | | | Total identifiable intangible assets – Gross carrying value: | | | | | 9,465,157 | | | | | | 9,465,157 | | | |||||
| Intellectual property (Weighted average life of 5 years) | | | | | 584,080 | | | | | | — | | | | Less: | | | | | | | | | | | | | | |||||
| Total identifiable intangible assets — Gross carrying value: | | | | | 584,080 | | | | | | 3,810,146 | | | | Accumulated amortization | | | | | (3,810,146 | ) | | | | | | (3,537,302 | ) | | | |||
| Less: | | | | | | | | | | | | | | | Impairment (2006) | | | | | (5,655,011 | ) | | | | | | (5,655,011 | ) | | | |||
| Accumulated amortization | | | | | (48,674 | ) | | | | | | (3,810,146 | ) | | | | Net | | | | $ | 0 | | | | | $ | 272,844 | | | |||
| Impairment charges | | | | | (114,730 | ) | | | | | | — | | | | Residual value | | | | $ | 0 | | | | | $ | 0 | | | ||||
| Intangible assets, net | | | | $ | 420,676 | | | | | $ | — | | | | | | | | | | | ||||||||||||
| | | | | | | | |||||||||||||||||||||||||||
Schedule of estimated amortization expense of the intangible assets for each of the five succeeding years | ' | ' | ||||||||||||||||||||||||||||||||
| | | | Amount | | |||||||||||||||||||||||||||||
| 2014 | | | | $ | 90,145 | | | ||||||||||||||||||||||||||
| 2015 | | | | | 90,145 | | | ||||||||||||||||||||||||||
| 2016 | | | | | 90,145 | | | ||||||||||||||||||||||||||
| 2017 | | | | | 90,145 | | | ||||||||||||||||||||||||||
| 2018 | | | | | 60,096 | | | ||||||||||||||||||||||||||
| Total | | | | $ | 420,676 |
PRIVATE_PLACEMENT_OF_CONVERTIB1
PRIVATE PLACEMENT OF CONVERTIBLE NOTES (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2012 | |||||||||||||||||
Long-Term Debt, Unclassified [Abstract] | ' | ||||||||||||||||
Schedule of convertible notes payable | ' | ||||||||||||||||
| | | 2012 | | | 2011 | | ||||||||||
| Secured Convertible Note Payable dated June 4, 2010, net of unamortized debt discount of $1,332 (see below) | | | | $ | — | | | | | $ | 223,668 | | | |||
| Secured Convertible Notes Payable dated July 15, 2010, net of unamortized debt discount of $26,091 (see below) | | | | | — | | | | | | 423,909 | | | |||
| Secured Convertible Notes Payable dated November 19, 2010, net of unamortized debt discount of $10,479 (see below) | | | | | — | | | | | | 339,521 | | | |||
| Secured Convertible Note Payable dated November 30, 2010, net of unamortized debt discount of $45,136 (see below) | | | | | — | | | | | | 704,864 | | | |||
| Secured Convertible Note Payable dated January 7, 2011, net of unamortized debt discount of $65,159 (see below) | | | | | — | | | | | | 684,841 | | | |||
| Secured Convertible Notes Payable, dated July 15, 2010, modified January 7, 2011, net of unamortized debt discount of $392,923 (see below) | | | | | — | | | | | | 1,104,077 | | | |||
| Secured Convertible Note Payable, dated July 11, 2011 | | | | | — | | | | | | 250,000 | | | |||
| Total | | | | | — | | | | | | 3,730,880 | | | |||
| Less: current portion | | | | | (— | ) | | | | | | (3,730,880 | ) | | | |
| Long-term debt – net | | | | $ | — | | | | | $ | — | | | |||
| | | | | | | | | |||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | ||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ' | |||||||||||||||||||||||||
Schedule of income tax provision (benefit) | ' | ' | |||||||||||||||||||||||||
| | | | 2013 | | | 2012 | | |||||||||||||||||||
| Federal: | | | | | | | | | | | | | | |||||||||||||
| Current | | | | $ | — | | | | | $ | — | | | |||||||||||||
| Deferred | | | | | 2,955,000 | | | | | | 1,422,000 | | | |||||||||||||
| | | | | | 2,955,000 | | | | | | 1,422,000 | | | |||||||||||||
| State and local: | | | | | | | | | | | | | | |||||||||||||
| Current | | | | | — | | | | | | — | | | |||||||||||||
| Deferred | | | | | 407,000 | | | | | | 196,000 | | | |||||||||||||
| | | | | | 407,000 | | | | | | 196,000 | | | |||||||||||||
| Change in valuation allowance | | | | | (3,362,000 | ) | | | | | | (1,618,000 | ) | | | |||||||||||
| Income tax provision (benefit) | | | | $ | — | | | | | $ | — | | | |||||||||||||
| | | | | | | |||||||||||||||||||||
Schedule of effective income tax rate reconciliation | ' | ' | |||||||||||||||||||||||||
| | | | September 30, | | ||||||||||||||||||||||
| | | | 2013 | | | 2012 | | |||||||||||||||||||
| Statutory federal income tax rate | | | | | (34.00 | %) | | | | | | (34.00 | %) | | | |||||||||||
| Statutory state and local income tax rate (7.1%), net of federal benefit | | | | | (4.69 | %) | | | | | | (4.69 | %) | | | |||||||||||
| Stock based compensation | | | | | 3.27 | % | | | | | | 10.74 | % | | | |||||||||||
| Depreciation and amortization | | | | | (0.12 | %) | | | | | | (0.28 | %) | | | |||||||||||
| Amortization of debt discount | | | | | 0 | % | | | | | | 2.92 | % | | | |||||||||||
| Change in valuation allowance | | | | | 35.54 | % | | | | | | 25.31 | % | | | |||||||||||
| Effective tax rate | | | | | 0 | % | | | | | | 0 | % | | | |||||||||||
| | | | | | ||||||||||||||||||||||
Schedule of components of deferred tax assets | ' | ' | |||||||||||||||||||||||||
| | | | September 30, | | | Non current: | | | | | | | | |||||||||||||
| | | | 2013 | | | 2012 | | | Net operating loss carryforward | | | | $ | 38,000,000 | | | ||||||||||
| Deferred tax assets (liabilities): | | | | | | | | | | | | | | | Valuation allowance | | | | | (38,000,000 | ) | | | |||
| Stock based compensation | | | | $ | 578,000 | | | | | $ | 768,000 | | | | Net deferred tax asset | | | | $ | — | | | ||||
| Depreciation and amortization | | | | | (21,000 | ) | | | | | | (20,000 | ) | | | | | | | |||||||
| Amortization of debt discount | | | | | — | | | | | | 209,000 | | | |||||||||||||
| Net operating loss carry forward | | | | | 17,913,000 | | | | | | 14,551,000 | | | |||||||||||||
| Less: valuation allowance | | | | | (18,470,000 | ) | | | | | | (15,508,000 | ) | | | |||||||||||
| Net deferred tax asset | | | | $ | — | | | | | $ | — |
LOSS_PER_SHARE_Tables
LOSS PER SHARE (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2012 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of the computation of basic and diluted loss per share | ' | ||||||||||||||||
| | | For the Year | | | For the Year | | ||||||||||
Ended | Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2012 | 2011 | ||||||||||||||||
| Net loss available for common shareholders | | | | $ | (7,150,712 | ) | | | | | $ | (10,515,124 | ) | | | |
| Net Loss per share – basic and diluted | | | | $ | (0.74 | ) | | | | | $ | (1.67 | ) | | | |
| Weighted average common shares outstanding – basic | | | | | 9,601,525 | | | | | | 6,280,563 | | | |||
| Weighted average common shares outstanding – diluted | | | | | 9,601,525 | | | | | | 6,280,563 | | | |||
| | | | | | | | ||||||||||
SUMMARY_OF_ACCOUNTING_POLICIES3
SUMMARY OF ACCOUNTING POLICIES (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Total | $1,315,146 | $1,105,624 | $462,803 | $299,970 |
Accumulated depreciation | 665,729 | 409,629 | 251,958 | 210,862 |
Property and equipment, net | 649,417 | 695,995 | 210,845 | 89,108 |
Estimated useful lives | '3 to 5 years | '3 to 5 years | ' | ' |
Depreciation method | 'Straight line method | 'straight line method | 'Straight line method | ' |
Minimum | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '3 Years | ' |
Maximum | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '5 Years | ' |
Computer equipment | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Total | 69,182 | 43,555 | 33,464 | 33,464 |
Lab equipment | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Total | 832,036 | 657,735 | 296,904 | 146,101 |
Furniture | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Total | 164,997 | 164,997 | 132,435 | 120,405 |
Leasehold improvements | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Total | $248,931,000 | $239,337,000 | ' | ' |
SUMMARY_OF_ACCOUNTING_POLICIES4
SUMMARY OF ACCOUNTING POLICIES - Summary of potential stock issuances under various options, and warrants (Details 1) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Warrants | 240,439 | 292,106 | 240,439 | 292,106 |
Employee options | 2,073,043 | 1,614,872 | 2,073,043 | 1,614,872 |
Total number of potential stock issuances under various options, and warrants | 2,313,482 | 1,906,978 | 2,313,482 | 1,906,978 |
SUMMARY_OF_ACCOUNTING_POLICIES5
SUMMARY OF ACCOUNTING POLICIES (Detail Textuals) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Net Loss Per Share | ' | ' | ' | ' | ' | ' | ' |
Fully diluted shares outstanding (in shares) | ' | ' | ' | ' | 839,583,895 | 9,601,525 | 6,280,563 |
Stock Based Compensation | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | $404,507 | $870,576 | $1,717,837 | $1,743,598 | $1,926,129 | $1,953,844 | $1,485,068 |
Employee stock options outstanding (in shares) | ' | ' | ' | ' | ' | 125,208,825 | ' |
Number of shares vested and exercisable (in shares) | ' | ' | ' | ' | ' | 1,619,938 | ' |
Research and Development | ' | ' | ' | ' | ' | ' | ' |
Research and development | 266,331 | 184,981 | 1,085,416 | 509,132 | 692,480 | 432,669 | 268,876 |
Advertising | ' | ' | ' | ' | ' | ' | ' |
Advertising expense | $10,115 | $21,825 | $85,033 | $158,636 | $196,762 | $97,877 | $131,938 |
Patents | ' | ' | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Weighted average life (in years) | ' | ' | '5 years | ' | '5 years | '5 years | ' |
Intellectual property | ' | ' | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Weighted average life (in years) | ' | ' | '7 years | ' | '7 years | '7 years | ' |
SUMMARY_OF_ACCOUNTING_POLICIES6
SUMMARY OF ACCOUNTING POLICIES (Detail Textuals 1) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Accumulated deficit | ($197,654,754) | ' | ($197,654,754) | ' | ($186,693,611) | ($169,007,139) | ($161,856,427) |
Deferred revenue | 348,624 | ' | 348,624 | ' | 148,503 | ' | ' |
Revenue recognized for a Government contract award | 0 | ' | 50,000 | ' | 100,000 | ' | ' |
Allowance on accounts receivable (in dollars) | 36,757 | ' | 36,757 | ' | 62,415 | 0 | ' |
Writes-off receivables | ' | ' | ' | ' | 15,000 | 0 | ' |
Depreciation method | ' | ' | 'Straight line method | ' | 'straight line method | 'Straight line method | ' |
Estimated useful lives | ' | ' | '3 to 5 years | ' | '3 to 5 years | ' | ' |
Depreciation expenses | 90,223 | 42,810 | 256,100 | 85,636 | 157,671 | 41,096 | ' |
Impairment of intellectual property | ' | ' | ' | ' | 114,730 | ' | ' |
Fully diluted shares outstanding (in shares) | ' | ' | ' | ' | 839,583,895 | 9,601,525 | 6,280,563 |
Stock-based compensation expense | 404,507 | 870,576 | 1,717,837 | 1,743,598 | 1,926,129 | 1,953,844 | 1,485,068 |
Research and development | 266,331 | 184,981 | 1,085,416 | 509,132 | 692,480 | 432,669 | 268,876 |
Advertising expense | $10,115 | $21,825 | $85,033 | $158,636 | $196,762 | $97,877 | $131,938 |
Patents | ' | ' | ' | ' | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Weighted average life (in years) | ' | ' | '5 years | ' | '5 years | '5 years | ' |
Intellectual property | ' | ' | ' | ' | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Weighted average life (in years) | ' | ' | '7 years | ' | '7 years | '7 years | ' |
SUMMARY_OF_ACCOUNTING_POLICIES7
SUMMARY OF ACCOUNTING POLICIES (Detail Textuals 2) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2014 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | |
Total Revenue | Total Revenue | Total Revenue | Total Revenue | Total Revenue | Total Revenue | Accounts Receivable | Accounts Receivable | Accounts Receivable | Accounts Receivable | |
Customer One | Customer One | Customer Two | Customer One | Customer Two | Customer Three | Customer Four | ||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of total revenue from various customers | ' | ' | ' | 10.00% | 14.00% | 54.00% | 10.00% | 54.00% | 43.00% | 77.00% |
Total revenue, benchmark description | 'No customers represented greater than 10% of the Company's total revenues | 'No customers represented 10% or greater of the Company's total revenues. | 'No customers represented greater than 10% of the Company's total revenues | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, customer | ' | ' | 'Greater than 10 | ' | ' | ' | ' | ' | ' | ' |
LIQUIDITY_AND_MANAGEMENTS_PLAN1
LIQUIDITY AND MANAGEMENT'S PLAN (Detail Textuals) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Oct. 01, 2012 | Oct. 01, 2011 | Sep. 30, 2010 | |
Agreement [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated deficit | ($197,654,754) | ' | ($197,654,754) | ' | ($186,693,611) | ($169,007,139) | ($161,856,427) | ' | ' | ' |
Net loss | -1,919,057 | -2,135,612 | -10,961,143 | -13,968,001 | -17,686,472 | -7,150,712 | -10,515,124 | ' | ' | ' |
Operating cash flow | ' | ' | -6,271,019 | -5,696,917 | -7,870,353 | -3,960,679 | -3,761,716 | ' | ' | ' |
Working capital | 1,106,719 | ' | 1,106,719 | ' | 6,091,555 | ' | ' | ' | ' | ' |
Cash and cash equivalents | 2,025,716 | 1,831,791 | 2,025,716 | 1,831,791 | 6,360,301 | 724,782 | 2,747,294 | 724,782 | 2,747,294 | 17,618 |
Proceeds from issuance of private placement | ' | ' | 2,145,956 | ' | ' | ' | ' | ' | ' | ' |
Positive working capital | ' | ' | ' | ' | ' | 509,804 | ' | ' | ' | ' |
Securities Purchase Agreement With Crede CG II Ltd | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreement [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital raised | ' | ' | ' | ' | ' | 7,500,000 | ' | ' | ' | ' |
Gross proceeds from raising of capital | ' | ' | ' | ' | ' | $2,000,000 | ' | ' | ' | ' |
ACCOUNTS_PAYABLE_AND_ACCRUED_L2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Summary of accounts payable and accrued liabilities (Details) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Payables and Accruals [Abstract] | ' | ' | ' | ' |
Accounts payable | $904,794 | $641,302 | $473,060 | $165,465 |
Accrued consulting fees | 102,500 | 102,500 | 102,500 | 102,500 |
Accrued salaries payable | 175,009 | 220,175 | 16,449 | 85,000 |
Other accrued expenses | 77,136 | 3,000 | ' | ' |
Accrued interest payable | ' | ' | ' | 415,096 |
Total | $1,259,439 | $966,977 | $592,009 | $768,061 |
WARRANT_LIABILITY_Detail_Textu
WARRANT LIABILITY (Detail Textuals) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 16, 2013 | Jun. 30, 2014 | Dec. 16, 2013 | Dec. 16, 2013 | |
Warrants | Series B Warrants | Crede CG III, Ltd | Crede CG III, Ltd | ||||||
Series A Warrants | Series B Warrants | ||||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised | ' | ' | 311,586 | ' | ' | ' | 386,618 | 178,253 | 116,667 |
Fair value of the warrants | ' | ' | ' | ' | ' | $2,455,042 | $1,851,723 | ' | ' |
Method used for determining allocated fair value of the Warrants | ' | ' | ' | ' | ' | 'Binomial Lattice model | 'Binomial Lattice model | ' | ' |
Fair value of Common Stock | ' | ' | ' | ' | ' | $10.80 | $7.20 | ' | ' |
Dividend yield | ' | ' | ' | ' | ' | 0.00% | 0.00% | ' | ' |
Expected terms | ' | ' | ' | ' | ' | '4 years 6 months 18 days | '4 years 18 days | ' | ' |
Risk free interest rate | ' | ' | ' | ' | ' | 1.55% | 1.27% | ' | ' |
Expected volatility | ' | ' | ' | ' | ' | 118.89% | 107.98% | ' | ' |
Expected price at which holders exercise Warrants | ' | ' | ' | ' | ' | $14.59 | $14.09 | ' | ' |
Change in fair value of warrant liability | $515,543 | $707,289 | ($1,663,316) | ($6,145,229) | ($7,508,146) | ($1,288,752) | ' | ' | ' |
WARRANT_LIABILITY_Company_issu
WARRANT LIABILITY - Company issued Series A, B and C Warrants (Details) | 1 Months Ended | |||||
Nov. 29, 2012 | Nov. 29, 2012 | Nov. 29, 2012 | Jul. 19, 2013 | Jul. 19, 2013 | Jul. 19, 2013 | |
Initial Purchase Agreement | Initial Purchase Agreement | Initial Purchase Agreement | Second Purchase Agreement | Second Purchase Agreement | Second Purchase Agreement | |
Crede CG II, Ltd | Crede CG II, Ltd | Crede CG II, Ltd | Crede CG III, Ltd. | Crede CG III, Ltd. | Crede CG III, Ltd. | |
Series A Warrants | Series B Warrants | Series C Warrants | Series A Warrants | Series B Warrants | Series C Warrants | |
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' |
Warrants issued | 179,211 | 492,831 | 448,029 | 178,253 | 490,196 | 445,633 |
Warrants issued (Price per unit) | 13.39 | 13.39 | 13.39 | 14.59 | 14.59 | 14.59 |
WARRANT_LIABILITY_Detail_Textu1
WARRANT LIABILITY (Detail Textuals 1) (Series C Warrants, Crede, USD $) | 1 Months Ended | 0 Months Ended |
Jan. 22, 2013 | Aug. 14, 2013 | |
Initial Purchase Agreement | Second Purchase Agreement | |
Class of Warrant or Right [Line Items] | ' | ' |
Repurchase price | $50,000 | $10,000 |
WARRANT_LIABILITY_Detail_Textu2
WARRANT LIABILITY (Detail Textuals 2) (USD $) | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||
7-May-13 | Nov. 07, 2012 | Jan. 25, 2012 | Aug. 12, 2011 | Oct. 31, 2011 | Jul. 31, 2011 | Jan. 31, 2011 | Nov. 30, 2010 | Apr. 25, 2013 | Nov. 28, 2012 | Jul. 19, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Series A Warrants | Series B Warrants | |
Initial Purchase Agreement | Initial Purchase Agreement | Second Purchase Agreement | Second Purchase Agreement | Second Purchase Agreement | |||||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the warrants | $15,018 | $13,238 | $56,875 | ' | $1,363 | ' | ' | ' | $7,326,553 | $1,181,324 | $1,280,532 | $2,643,449 | $2,643,449 |
Method used for determining allocated fair value of the Warrants | 'Black Scholes Option Pricing Model | 'Black Scholes Option Pricing Model | ' | ' | ' | ' | ' | ' | 'Binomial Lattice model | 'Binomial Lattice model | 'Binomial Lattice model | 'Binomial Lattice model | 'Binomial Lattice model |
Fair value of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | $13.26 | $12 | $11.40 | $5.40 | $5.40 |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ' | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Expected terms | ' | ' | '3 years | ' | '3 years | '7 years | '7 years | '7 years | '4 years 6 months 15 days | '5 years | '5 years | '4 years 9 months 18 days | '4 years 9 months 18 days |
Risk free interest rate | 0.35% | 0.36% | 0.81% | ' | 0.41% | ' | 2.69% | ' | 0.71% | 0.64% | 1.31% | 1.39% | 1.39% |
Expected volatility | 119.72% | 129.56% | 147.53% | 162.03% | 157.69% | ' | 170.33% | ' | 125.97% | 146.32% | 130.09% | 121.71% | 121.71% |
Expected price at which holders exercise Warrants | ' | ' | ' | ' | ' | ' | ' | ' | $13.39 | $13.39 | $14.59 | $14.59 | $14.59 |
CAPITAL_STOCK_Summary_of_secur
CAPITAL STOCK - Summary of securities issued (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||
Nov. 29, 2012 | Nov. 29, 2012 | Nov. 29, 2012 | Jul. 19, 2013 | Jul. 19, 2013 | Jul. 19, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 29, 2012 | Jul. 19, 2013 | Nov. 29, 2012 | Jul. 19, 2013 | |
Initial Purchase Agreement | Initial Purchase Agreement | Initial Purchase Agreement | Second Purchase Agreement | Second Purchase Agreement | Second Purchase Agreement | Common Stock | Common Stock | Common Stock | Common Stock | Series A Preferred stock | Series B Preferred stock | |
Series A Warrants | Series B Warrants | Series C Warrants | Series A Warrants | Series B Warrants | Series C Warrants | Initial Purchase Agreement | Second Purchase Agreement | Initial Purchase Agreement | Second Purchase Agreement | |||
Crede CG II, Ltd | Crede CG II, Ltd | Crede CG II, Ltd | Crede CG III, Ltd. | Crede CG III, Ltd. | Crede CG III, Ltd. | Crede CG II, Ltd | Crede CG III, Ltd. | Crede CG II, Ltd | Crede CG III, Ltd. | |||
Stockholders' Equity Note [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued (in shares) | ' | ' | ' | ' | ' | ' | 21,447,875 | 44,963,516 | 179,211 | 178,253 | 5,500 | 5,500 |
Share issued (Price per share) | ' | ' | ' | ' | ' | ' | ' | ' | $11.16 | $11.22 | $1,000 | $1,000 |
Warrants issued | 179,211 | 492,831 | 448,029 | 178,253 | 490,196 | 445,633 | ' | ' | ' | ' | ' | ' |
Warrants issued (Price per unit) | 13.39 | 13.39 | 13.39 | 14.59 | 14.59 | 14.59 | ' | ' | ' | ' | ' | ' |
CAPITAL_STOCK_Detail_Textuals_
CAPITAL STOCK (Detail Textuals 1) (USD $) | 12 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Jun. 30, 2014 | Jan. 27, 2012 | Jan. 26, 2012 | |
Stockholders' Equity Note [Abstract] | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 1,350,000,000 | 1,350,000,000 | 800,000,000 | 1,350,000,000 | 1,350,000,000 | 800,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' |
Common stock, shares issued | 13,108,783 | 10,769,709 | 7,888,764 | 13,788,872 | ' | ' |
Common stock, shares outstanding | 13,108,783 | 10,769,709 | 7,888,764 | 13,788,872 | ' | ' |
Equity based compensation | $1,926,129 | $1,953,844 | $502,802 | ' | ' | ' |
Common stock issued in exchange for consulting services (in shares) | ' | ' | 14,814 | ' | ' | ' |
Common stock issued in exchange for consulting services | ' | ' | 65,000 | ' | ' | ' |
Common stock issued as officer compensation (in shares) | ' | ' | 250,000 | ' | ' | ' |
Common stock issued as officer compensation | ' | ' | $877,500 | ' | ' | ' |
CAPITAL_STOCK_Detail_Textuals_1
CAPITAL STOCK (Detail Textuals 2) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||
Jun. 30, 2014 | Sep. 30, 2011 | Jun. 30, 2014 | Feb. 11, 2014 | Sep. 30, 2011 | Dec. 20, 2013 | Dec. 16, 2013 | Dec. 16, 2013 | Dec. 16, 2013 | |
Series B Warrants | Common Stock | Common Stock | Consulting agreement | Crede CG III, Ltd | Crede CG III, Ltd | Crede CG III, Ltd | |||
Common Stock | Series A Warrants | Series B Warrants | |||||||
Stockholders' Equity Note [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised | 311,586 | ' | 386,618 | 16,667 | ' | ' | ' | 178,253 | 116,667 |
Warrants issued to placement agent | ' | ' | ' | 12,447 | ' | ' | 313,718 | ' | ' |
Common stock issued in exchange for consulting services (in shares) | ' | 14,814 | ' | ' | 14,814 | 41,667 | ' | ' | ' |
Common stock issued in exchange for consulting services | ' | $65,000 | ' | ' | $15 | $337,500 | ' | ' | ' |
CAPITAL_STOCK_Detail_Textuals_2
CAPITAL STOCK (Detail Textuals 3) (USD $) | 9 Months Ended | 0 Months Ended | ||||||
Jun. 30, 2014 | Dec. 16, 2013 | Jun. 30, 2014 | Jun. 03, 2014 | Jul. 08, 2014 | Jun. 03, 2014 | Jun. 03, 2014 | Jun. 30, 2014 | |
Crede CG III, Ltd | Series B Warrants | Private Placement | Private Placement | Private Placement | Private Placement | Private Placement | ||
Subsequent Event | Minimum | Maximum | Series B Warrants | |||||
Crede CG III, Ltd | ||||||||
Stockholders' Equity Note [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of private placement | $2,145,956 | ' | ' | $2,145,956 | ' | ' | ' | ' |
Sale of common stock (in shares) | ' | ' | ' | 312,257 | 1,500 | ' | ' | ' |
Share issued (Price per share) | ' | ' | ' | $6.87 | ' | ' | ' | ' |
Warrants issued to placement agent | ' | 313,718 | ' | 312,257 | 1,500 | ' | ' | ' |
Percentage of discount to weighted average closing price | ' | ' | ' | 5.00% | ' | ' | ' | ' |
Share price | ' | ' | $7.20 | ' | ' | $6.93 | $7.47 | ' |
Exercise price of warrants | ' | ' | ' | 8.25 | ' | ' | ' | 14.59 |
Percentage of premium to purchase price | ' | ' | ' | 20.00% | ' | ' | ' | ' |
Proceeds from issuance of common stock and warrants | ' | ' | ' | ' | $10,309 | ' | ' | ' |
Adjusted exercise price of warrants | ' | ' | ' | ' | ' | ' | ' | 14.09 |
Existing number of warrants | ' | ' | ' | ' | ' | ' | ' | 373,529 |
Number of warrants after adjusting exercise price | ' | ' | ' | ' | ' | ' | ' | 386,618 |
Adjusted exercise price of warrants after dilution | ' | ' | ' | ' | ' | ' | ' | 14.06 |
Increased number of warrants after dilution of additional warrants | ' | ' | ' | ' | ' | ' | ' | 387,621 |
CAPITAL_STOCK_Details_Textuals
CAPITAL STOCK (Details Textuals 4) (Securities Purchase Agreement, USD $) | 12 Months Ended | 1 Months Ended | |
Sep. 30, 2013 | Nov. 29, 2012 | Jul. 19, 2013 | |
Agreement | Crede CG II, Ltd | Crede CG III, Ltd. | |
Stockholders' Equity Note [Line Items] | ' | ' | ' |
Sale of common stock | $15,000,000 | $7,500,000 | $7,500,000 |
Number of financing agreement | 2 | ' | ' |
Net proceeds from issuance of stock | 14,635,000 | ' | ' |
Payment for investment fees | $365,000 | ' | ' |
CAPITAL_STOCK_Detail_Textuals_3
CAPITAL STOCK (Detail Textuals 5) (USD $) | 12 Months Ended |
Sep. 30, 2013 | |
Additional Condition [Abstract] | ' |
Amount of annual run rate | $15,000,000 |
Amount of annual receivables | 3,000,000 |
Crede CG II, Ltd | ' |
Beneficial Ownership Blocker [Abstract] | ' |
Beneficial ownership blocker, Description | ' |
The Series A and Series B Preferred and the Series A, B and C Warrants each contain a 9.9% “blocker” so that in no event shall the Series A and Series B Preferred or any of the Series A, B and C Warrants be convertible or exercisable (including through the cashless exercise exchange provision) into or for Common Stock to the extent that such conversion or exercise would result in Crede having “beneficial ownership” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended) of more than 9.9% of the Common Stock. Crede would, however, have the right from time to time to convert, exercise or exchange for shares of Common Stock, which over time would aggregate to greater than 9.9% beneficial ownership if all such shares of Common Stock so acquired had been held at one time by Crede. | |
Percentage of blocker | 9.90% |
Maximum threshold for beneficial ownership | 9.90% |
Term for participation in other equity or equity linked financing completed | '180 days |
Securities Purchase Agreement With Crede CG II Ltd | ' |
Exercise Of Warrants For Cash [Abstract] | ' |
Exercise of warrants for cash, Description | ' |
Crede may exercise Series A and Series B Warrants by paying in cash or on a cashless basis by exchanging such Warrants for Common Stock using the Black-Scholes value. In the event that the Common Stock trades at a price 25% or more above the exercise price of the Series A and Series B Warrants for a period of 20 consecutive days (with average daily dollar volume of Common Stock on the OTC Bulletin Board at least equal to $300,000), the Company may obligate Crede to exercise such Warrants for cash. | |
Number of average daily dollar volume of common stock | $300,000 |
Percentage of common stock trade | 25.00% |
Number of trading days | '20 days |
Securities Purchase Agreement With Crede CG II Ltd | Crede CG II, Ltd | ' |
Registration Rights Agreement [Abstract] | ' |
Number of days of initial closing to file registration statement | '30 days |
CAPITAL_STOCK_Detail_Textuals_4
CAPITAL STOCK (Detail Textuals 6) (Crede, USD $) | 1 Months Ended | 0 Months Ended | |||
Jan. 22, 2013 | Jul. 31, 2013 | Aug. 14, 2013 | Jan. 08, 2013 | Aug. 14, 2013 | |
Initial Purchase Agreement | Second Purchase Agreement | Second Purchase Agreement | Common Stock | Common Stock | |
Series C Warrants | Series C Warrants | Series A Preferred stock | Series B Preferred stock | ||
Stockholders' Equity Note [Line Items] | ' | ' | ' | ' | ' |
Maximum price per share to issue common stock or securities convertible into common stock | ' | $11.22 | ' | ' | ' |
Market price of common stock | ' | $10.02 | ' | ' | ' |
Convertible preferred stock issued upon conversion (in shares) | ' | ' | ' | 424,383 | 705,128 |
Convertible preferred stock conversion price (dollar per share) | ' | ' | ' | $12.96 | $7.80 |
Repurchase price | $50,000 | ' | $10,000 | ' | ' |
PRIVATE_PLACEMENT_OF_CONVERTIB2
PRIVATE PLACEMENT OF CONVERTIBLE NOTES (Details) (USD $) | Sep. 30, 2012 | Sep. 30, 2011 |
Debt Instrument [Line Items] | ' | ' |
Total | ' | $3,730,880 |
Less: current portion | ' | -3,730,880 |
Long-term debt- net | ' | ' |
Secured Convertible Note Payable dated June 4, 2010 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total | ' | 223,668 |
Convertible notes payable, Unamortized Discount | 1,332 | 1,332 |
Secured Convertible Notes Payable dated July 15, 2010 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total | ' | 423,909 |
Convertible notes payable, Unamortized Discount | 26,091 | 26,091 |
Secured Convertible Notes Payable dated November 19, 2010 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total | ' | 339,521 |
Convertible notes payable, Unamortized Discount | 10,479 | 10,479 |
Secured Convertible Note Payable dated November 30, 2010 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total | ' | 704,864 |
Convertible notes payable, Unamortized Discount | 45,136 | 45,136 |
Secured Convertible Note Payable dated January 7, 2011 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total | ' | 684,841 |
Convertible notes payable, Unamortized Discount | 65,159 | 65,159 |
Secured Convertible Notes Payable, dated July 15, 2010, modified January 7, 2011 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total | ' | 1,104,077 |
Convertible notes payable, Unamortized Discount | 392,923 | 392,923 |
Secured Convertible Note Payable, dated July 11, 2011 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total | ' | $250,000 |
PRIVATE_PLACEMENT_OF_CONVERTIB3
PRIVATE PLACEMENT OF CONVERTIBLE NOTES - 10% Secured Convertible Promissory Note dated June 4, 2010 (Detail Textuals) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Jan. 07, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 04, 2010 | Jan. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | |
Secured Convertible Note Payable dated June 4, 2010 | Secured Convertible Note Payable dated June 4, 2010 | Secured Convertible Note Payable dated June 4, 2010 | Secured Convertible Note Payable dated June 4, 2010 | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible promissory note issued to related party | ' | ' | ' | ' | ' | $675,000 | ' | ' | ' |
Interest rate on promissory note | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' |
Price at maturity for conversion into common stock | ' | ' | ' | ' | ' | $2.33 | ' | ' | ' |
Conversion price prior to maturity | ' | ' | ' | ' | ' | $2.33 | ' | ' | ' |
Common stock, par value (in dollars per share) | ' | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' | ' |
Percentage of average price of common stock for specified number of trading days prior to issue date | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' |
Percentage on discount on weighted average price of common stock for 10 trading days prior to notice of conversion | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' |
Intrinsic value of the embedded beneficial conversion feature | ' | ' | ' | ' | ' | 19,692 | ' | ' | ' |
Intrinsic value of the embedded beneficial conversion feature amortized to interest expense | ' | ' | ' | ' | ' | -19,692 | ' | ' | ' |
Amortization of debt discount attributable to convertible debentures | 331,332 | 541,120 | 2,096,427 | ' | ' | ' | ' | 1,332 | 3,954 |
Secured Convertible Note Payable, Gross | ' | ' | ' | ' | ' | ' | ' | $225,000 | ' |
Common stock issued in settlement of convertible debentures and interest (in shares) | ' | 22,924,513 | ' | ' | ' | ' | 102,504 | ' | ' |
PRIVATE_PLACEMENT_OF_CONVERTIB4
PRIVATE PLACEMENT OF CONVERTIBLE NOTES - 10% Senior Secured Convertible Promissory Notes dated July 15, 2010 (Details Textuals 1) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||
Jan. 07, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Jun. 30, 2014 | Sep. 30, 2013 | Jan. 07, 2011 | Jul. 15, 2010 | Jan. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | Jan. 06, 2011 | |
Secured Convertible Notes Payable dated July 15, 2010 | Secured Convertible Notes Payable dated July 15, 2010 | Secured Convertible Notes Payable dated July 15, 2010 | Secured Convertible Notes Payable dated July 15, 2010 | Secured Convertible Notes Payable dated July 15, 2010 | Secured Convertible Notes Payable dated July 15, 2010 | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Converted portion of convertible promissory notes issued | ' | ' | ' | ' | ' | $1,550,000 | $450,000 | ' | ' | ' | ' |
Interest rate on promissory note | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' |
Convertible promissory note issued to related party | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' |
Price at maturity for conversion into common stock | ' | ' | ' | ' | ' | $2.23 | $2.64 | ' | ' | ' | $2.64 |
Common stock, par value (in dollars per share) | ' | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' |
Percentage of price paid by investor used for determination of conversion price in lieu of fixed conversion price after closing of subsequent financing rate | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' |
Threshold limit of gross proceeds to be classified as qualified financing | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' |
Remaining senior secured convertible promissory notes | ' | ' | ' | ' | ' | 450,000 | ' | ' | ' | ' | ' |
Intrinsic value of the embedded beneficial conversion feature | ' | ' | ' | ' | ' | ' | 678,774 | ' | ' | ' | ' |
Intrinsic value of the embedded beneficial conversion feature amortized to interest expense | ' | ' | ' | ' | ' | ' | -678,774 | ' | ' | ' | ' |
Amortization of debt discount attributable to convertible debentures | 331,332 | 541,120 | 2,096,427 | ' | ' | 331,332 | ' | ' | 26,091 | 70,102 | ' |
Common stock issued in settlement of convertible debentures and interest (in shares) | ' | 22,924,513 | ' | ' | ' | ' | ' | 195,497 | ' | ' | ' |
Convertible notes and related accrued interest settled | ' | ' | ' | ' | ' | ' | ' | $450,000 | ' | ' | ' |
PRIVATE_PLACEMENT_OF_CONVERTIB5
PRIVATE PLACEMENT OF CONVERTIBLE NOTES - 10% Senior Secured Convertible Promissory Notes dated November 19, 2010 (Detail Textuals 2) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Jan. 07, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Nov. 30, 2011 | Nov. 30, 2011 | Nov. 19, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Secured Convertible Notes Payable dated November 19, 2010 | Secured Convertible Notes Payable dated November 19, 2010 | Secured Convertible Notes Payable dated November 19, 2010 | Secured Convertible Notes Payable dated November 19, 2010 | Secured Convertible Notes Payable dated November 19, 2010 | Secured Convertible Notes Payable dated November 19, 2010 | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible promissory note issued to related party | ' | ' | ' | ' | ' | $350,000 | ' | ' | ' |
Interest rate on promissory note | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' |
Price at maturity for conversion into common stock | ' | ' | ' | ' | ' | $1.97 | ' | ' | ' |
Percentage of price paid by investor used for determination of conversion price in lieu of fixed conversion price after closing of subsequent financing rate | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' |
Intrinsic value of the embedded beneficial conversion feature | ' | ' | ' | ' | ' | 76,494 | ' | ' | ' |
Intrinsic value of the embedded beneficial conversion feature amortized to interest expense | ' | ' | ' | ' | ' | -76,494 | -76,494 | ' | ' |
Amortization of debt discount attributable to convertible debentures | $331,332 | $541,120 | $2,096,427 | ' | ' | ' | ' | $10,479 | $66,015 |
Common stock issued in settlement of convertible debentures and interest (in shares) | ' | 22,924,513 | ' | 194,885 | 194,885 | ' | ' | ' | ' |
Percentage of average price of common stock for specified number of trading days prior to issue date | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' |
PRIVATE_PLACEMENT_OF_CONVERTIB6
PRIVATE PLACEMENT OF CONVERTIBLE NOTES - 10% Senior Secured Convertible Promissory Note dated November 30, 2010 (Detail Textuals 3) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||
Jan. 07, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Jun. 30, 2014 | Sep. 30, 2013 | Nov. 30, 2011 | Nov. 30, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Secured Convertible Note Payable dated November 30, 2010 | Secured Convertible Note Payable dated November 30, 2010 | Secured Convertible Note Payable dated November 30, 2010 | Secured Convertible Note Payable dated November 30, 2010 | Secured Convertible Note Payable dated November 30, 2010 | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible promissory note issued to related party | ' | ' | ' | ' | ' | ' | $750,000 | ' | ' | ' |
Interest rate on promissory note | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' |
Price at maturity for conversion into common stock | ' | ' | ' | ' | ' | ' | $1.85 | ' | ' | ' |
Common stock, par value (in dollars per share) | ' | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' | ' |
Percentage of price paid by investor used for determination of conversion price in lieu of fixed conversion price after closing of subsequent financing rate | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' |
Intrinsic value of the embedded beneficial conversion feature | ' | ' | ' | ' | ' | ' | 270,078 | ' | ' | ' |
Intrinsic value of the embedded beneficial conversion feature amortized to interest expense | ' | ' | ' | ' | ' | ' | -270,078 | -270,078 | ' | ' |
Amortization of debt discount attributable to convertible debentures | $331,332 | $541,120 | $2,096,427 | ' | ' | ' | ' | ' | $45,136 | $224,942 |
Common stock issued in settlement of convertible debentures and interest (in shares) | ' | 22,924,513 | ' | ' | ' | 445,272 | ' | ' | ' | ' |
PRIVATE_PLACEMENT_OF_CONVERTIB7
PRIVATE PLACEMENT OF CONVERTIBLE NOTES - 10% Senior Secured Convertible Promissory Note dated January 7, 2011 (Detail Textuals 4) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |
Jan. 07, 2011 | Jan. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Amortization of debt discount attributable to convertible debentures | $331,332 | ' | $541,120 | $2,096,427 |
Common stock issued in settlement of convertible debentures and interest (in shares) | ' | ' | 22,924,513 | ' |
Secured Convertible Note Payable dated January 7, 2011 | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Convertible promissory note issued to related party | 750,000 | ' | ' | ' |
Interest rate on promissory note | 10.00% | ' | ' | ' |
Price at maturity for conversion into common stock | $3.32 | ' | ' | ' |
Percentage of price paid by investor used for determination of conversion price in lieu of fixed conversion price after closing of subsequent financing rate | 80.00% | ' | ' | ' |
Intrinsic value of the embedded beneficial conversion feature | 240,233 | ' | ' | ' |
Amortization of debt discount attributable to convertible debentures | ' | ' | $65,159 | $175,074 |
Common stock issued in settlement of convertible debentures and interest (in shares) | ' | 248,689 | ' | ' |
PRIVATE_PLACEMENT_OF_CONVERTIB8
PRIVATE PLACEMENT OF CONVERTIBLE NOTES - 10% Senior Secured Convertible Promissory Notes issued on July 15, 2010, modified on January 7, 2011 (Detail Textuals 5) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||||
Jan. 07, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Jun. 30, 2014 | Sep. 30, 2013 | Jan. 07, 2011 | Jan. 31, 2012 | Oct. 26, 2011 | Oct. 26, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Secured Convertible Notes Payable, dated July 15, 2010, modified January 7, 2011 | Secured Convertible Notes Payable, dated July 15, 2010, modified January 7, 2011 | Secured Convertible Notes Payable, dated July 15, 2010, modified January 7, 2011 | Secured Convertible Notes Payable, dated July 15, 2010, modified January 7, 2011 | Secured Convertible Notes Payable, dated July 15, 2010, modified January 7, 2011 | Secured Convertible Notes Payable, dated July 15, 2010, modified January 7, 2011 | Secured Convertible Notes Payable, dated July 15, 2010, modified January 7, 2011 | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible promissory note issued to related party | ' | ' | ' | ' | ' | $1,550,000 | ' | ' | ' | ' | ' | ' |
Interest rate on promissory note | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' |
Price at maturity for conversion into common stock | ' | ' | ' | ' | ' | $2.23 | ' | ' | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | ' | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' |
Convertible notes and related accrued interest settled | ' | ' | ' | ' | ' | ' | 1,447,000 | 50,000 | 50,000 | ' | ' | ' |
Percentage of price paid by investor used for determination of conversion price in lieu of fixed conversion price after closing of subsequent financing rate | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' |
Intrinsic value of the embedded beneficial conversion feature | ' | ' | ' | ' | ' | 1,499,536 | ' | ' | ' | ' | ' | ' |
Intrinsic value of the embedded beneficial conversion feature amortized to interest expense | ' | ' | ' | ' | ' | -1,499,536 | ' | ' | ' | -1,499,536 | ' | ' |
Amortization of debt discount attributable to convertible debentures | $331,332 | $541,120 | $2,096,427 | ' | ' | ' | ' | ' | ' | ' | $392,923 | $1,106,613 |
Common stock issued in settlement of convertible debentures and interest (in shares) | ' | 22,924,513 | ' | ' | ' | ' | 746,314 | 24,964 | 24,964 | ' | ' | ' |
Maturity period of debt beneficial conversion feature amortized | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' |
PRIVATE_PLACEMENT_OF_CONVERTIB9
PRIVATE PLACEMENT OF CONVERTIBLE NOTES - Adjustment of Conversion Price of Certain 10 % Senior Secured Convertible Promissory Notes dated July 15, 2010 (Detail Textuals 6) (Secured Convertible Note Payable, adjustment dated July 15, 2010, USD $) | Feb. 28, 2011 | Jul. 15, 2010 |
Secured Convertible Note Payable, adjustment dated July 15, 2010 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Convertible promissory note issued to related party | $2,000,000 | ' |
Converted portion of convertible promissory notes issued | 1,550,000 | ' |
Price at maturity for conversion into common stock | $2.23 | $2.64 |
Remaining senior secured convertible promissory notes | $450,000 | ' |
Recovered_Sheet1
PRIVATE PLACEMENT OF CONVERTIBLE NOTES - 4% Senior Secured Convertible Promissory Note issued on July 11, 2011 (Detail Textuals 7) (USD $) | 12 Months Ended | 0 Months Ended | |
Sep. 30, 2012 | Jul. 11, 2012 | Jul. 11, 2011 | |
Secured Convertible Note Payable, dated July 11, 2011 | Secured Convertible Note Payable, dated July 11, 2011 | ||
Debt Instrument [Line Items] | ' | ' | ' |
Convertible promissory note issued to related party | ' | ' | $250,000 |
Interest rate on promissory note | ' | ' | 4.00% |
Price at maturity for conversion into common stock | ' | ' | $3.51 |
Conversion price prior to maturity | ' | ' | $3.51 |
Common stock issued in settlement of convertible debentures and interest (in shares) | 22,924,513 | 74,074 | ' |
Convertible notes and related accrued interest settled | ' | $250,000 | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Detail Textuals) (USD $) | 9 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Jan. 25, 2012 | Jun. 21, 2012 | Jul. 15, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Jan. 25, 2012 | |
Divinerune Inc. | Abarta Partners I | Chief Executive Officer | Chief Executive Officer | Chief Executive Officer | Divine Rune Inc. | ||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense related to the promissory note | ' | ' | ' | $15,363 | $24,719 | ' | ' | ' | ' | ' | ' |
Common stock issued in exchange for settlement of related party convertible promissory notes and accrued interest (in shares) | ' | ' | ' | 382,075 | ' | ' | ' | ' | ' | ' | ' |
Related party convertible promissory notes and accrued interest | ' | ' | ' | 925,000 | ' | ' | ' | ' | ' | ' | ' |
Sale of common stock (in shares) | ' | ' | ' | ' | ' | ' | 592,943 | ' | ' | ' | ' |
Common stock, purchase price (in dollars per share) | ' | ' | ' | ' | ' | ' | $2.60 | ' | ' | ' | ' |
Gross proceeds from common stock issued and sold | 2,145,956 | ' | ' | ' | ' | ' | 1,542,600 | ' | ' | ' | ' |
Convertible promissory note issued to related party in advance for working capital purposes | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 250,000 | ' |
Number of common stock called by warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,667 |
Exercise price of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.26 |
Term of warrant | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' |
Number of common stock issued and sold | ' | ' | ' | ' | ' | ' | ' | 175,439 | ' | ' | ' |
Net proceeds from sale of common stock | $2,145,956 | $2,000,000 | $3,900,000 | $2,101,000 | $4,735,000 | ' | ' | $500,000 | ' | ' | ' |
STOCK_OPTIONS_AND_WARRANTS_Tra
STOCK OPTIONS AND WARRANTS - Transactions involving warrants (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Warrants | Warrants | Warrants | ||
Class Of Warrant Or Right, Number Of Shares [Roll Forward] | ' | ' | ' | ' |
Beginning Balance, Number of Shares | 983,888 | 764,011 | 970,088 | 1,153,466 |
Granted | 325,346 | 2,237,487 | 17,917 | 198,289 |
Exercised | -311,586 | -1,003,948 | -83,994 | ' |
Cancelled or expired | -55,000 | -1,013,661 | -140,000 | -381,667 |
Ending Balance, Number of Shares | 942,648 | 983,889 | 764,011 | 58,205,280 |
Class Of Warrant Or Right, Weighted Average Price Per Share [Roll Forward] | ' | ' | ' | ' |
Beginning Balance, Weighted Average Price Per Share | $11.44 | $8.70 | $8.40 | $14.22 |
Granted | $8.48 | $13.98 | $4.26 | $2.64 |
Exercised | ($13.47) | ($10.20) | ($2.70) | ' |
Cancelled or expired | ($14) | ($15.88) | ($9.66) | ($23.04) |
Ending Balance, Weighted Average Price Per Share | $9.60 | $11.86 | $8.70 | $0.14 |
STOCK_OPTIONS_AND_WARRANTS_Tra1
STOCK OPTIONS AND WARRANTS - Transactions involving stock options issued to employees (Details 1) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2013 | Sep. 30, 2011 | Sep. 30, 2012 | Oct. 14, 2013 | Oct. 17, 2013 | Mar. 16, 2012 | Feb. 08, 2012 | Dec. 06, 2011 | Aug. 02, 2011 | Jan. 04, 2011 | Sep. 24, 2012 | Jul. 11, 2011 | Dec. 13, 2010 | Nov. 30, 2011 | Sep. 30, 2012 | Jul. 02, 2013 | 12-May-12 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | ||||
Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, Beginning balalnce | ' | ' | 125,208,825 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,086,814 | ' | ' | 2,024,237 | 2,086,814 | 2,010,833 | 1,115,000 |
Granted | ' | 15,000,000 | ' | 122,950 | 62,963 | 100,000 | 100,000 | 10,580 | 4,167 | 33,333 | ' | 833,333 | 25,000 | 95,400 | ' | 1,667 | 1,667 | 1,221,346 | 38,323 | 109,314 | 895,833 |
Exercised | -417 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -8,333 | ' | ' | ' | ' | ' | ' | ' | -99,650 | -8,333 | ' |
Cancelled or expired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -83 | -1,251 | -25,000 | ' |
Outstanding, Ending balalnce | ' | ' | 125,208,825 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,086,814 | ' | ' | 3,245,500 | 2,024,237 | 2,086,814 | 2,010,833 |
Vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,185,550 | 1,970,080 | ' | ' |
Non-vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,059,950 | 54,156 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, Beginning balalnce | ' | ' | ' | ' | ' | ' | ' | $0.07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.78 | $3.60 | $3.60 | $3.60 |
Granted | ' | ' | ' | $5.32 | $5.32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11.58 | $12 | $6.02 | $10.88 | $4.02 | $3.60 |
Exercised | ($3.60) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($2.52) | ($4.80) | ' |
Cancelled or expired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($5.31) | ($3.60) | ($4.80) | ' |
Outstanding, Ending balance | ' | ' | ' | ' | ' | $0.06 | $0.07 | $0.07 | $0.07 | $0.08 | ' | $0.06 | $0.07 | $0.07 | ' | ' | ' | $4.61 | $3.78 | $3.60 | $3.60 |
Vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.02 | ' | ' | ' |
Aggregate Intrinsic Value, Vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.72 | $8.16 | ' | ' |
Aggregate Intrinsic Value, Non-vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.80 | $3.30 | ' | ' |
STOCK_OPTIONS_AND_WARRANTS_Sum
STOCK OPTIONS AND WARRANTS - Summary of value of options granted using Black Scholes Option Pricing Model with weighted average assumptions (Details 2) (USD $) | 3 Months Ended | 9 Months Ended |
Jun. 30, 2014 | Jun. 30, 2014 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ' |
Stock price | $7.47 | $6.07 |
Exercise price | $5.81 | $7.29 |
Dividend yield | 0.00% | 0.00% |
Volatility | 110.46% | 112.19% |
Risk free rate | 1.19% | 0.95% |
STOCK_OPTIONS_AND_WARRANTS_Cha
STOCK OPTIONS AND WARRANTS - Changes in warrants outstanding and related prices (Details 3) | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 01, 2012 | Jan. 25, 2012 | Oct. 01, 2011 | Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 |
Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | |||
Exercise price $1.85 | Exercise price $1.97 | Exercise price $2.40 | Exercise price $2.64 | Exercise price $2.85 | Exercise price $2.85 | Exercise price $3.32 | Exercise price $3.60 | Exercise price $4.26 | Exercise price $5.40 | Exercise price $6.00 | Exercise price $30.00 | Exercise price $0.50 | ||||||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Outstanding | 942,648 | 983,888 | 983,889 | 764,011 | 764,011 | ' | 970,088 | 58,205,280 | 1,153,466 | 26,985 | 5,924 | 50,000 | 33,485 | 63,158 | 84,211 | 15,072 | 200,000 | 16,667 | 165,000 | 25,000 | ' | 8,500,000 |
Warrants Outstanding Remaining Contractual Life (Years) | ' | ' | ' | '2 years 11 months 19 days | ' | ' | ' | ' | ' | '5 years 2 months 1 day | '5 years 1 month 20 days | '2 years 11 months 1 day | '4 years 9 months 14 days | ' | '5 years 9 months 14 days | '5 years 3 months 7 days | '2 years 4 months 17 days | '4 years 3 months 7 days | '2 years 3 months 25 days | '5 months 23 days | '4 months 2 days | '4 months 2 days |
Weighted Average Exercise Price | ' | ' | 11.78 | 8.4 | ' | ' | ' | ' | ' | 1.85 | 1.97 | 2.4 | 2.64 | 2.85 | 2.85 | 3.32 | 3.6 | 4.26 | 5.4 | 6 | 6 | 30 |
Weighted Average Exercisable | ' | ' | 982,222 | 764,011 | ' | ' | ' | ' | ' | 26,985 | 5,924 | 50,000 | 33,485 | 63,158 | 84,211 | 15,072 | 200,000 | 16,667 | 165,000 | 25,000 | 141,667 | 141,667 |
Exercisable Weighted Average Exercise Price | ' | ' | 11.78 | 8.7 | ' | ' | ' | ' | ' | 1.85 | 1.97 | 2.4 | 2.64 | 2.85 | 2.85 | 3.32 | 3.6 | 4.26 | 5.4 | 6 | ' | 30 |
STOCK_OPTIONS_AND_WARRANTS_Cha1
STOCK OPTIONS AND WARRANTS - Changes in warrants outstanding and related prices (Details 4) | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | 7-May-13 | Nov. 07, 2012 | Oct. 01, 2012 | Jan. 25, 2012 | Oct. 31, 2011 | Oct. 01, 2011 | Sep. 30, 2011 | Jul. 31, 2011 | Jan. 31, 2011 | Sep. 30, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | |||
Exercise price 2.40 | Exercise price 2.64 | Exercise price 2.85 | Exercise price 3.32 | Exercise Price 3.60 | Exercise price 4.26 | Exercise Price 5.40 | Exercise price 10.74 | Exercise price 12.84 | Exercise price 14.59 | Exercise price 30.00 | |||||||||||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrants | ' | ' | ' | ' | 12.84 | 10.74 | ' | 4.26 | 4.2 | ' | ' | 2.85 | 3.32 | ' | 2.4 | 2.64 | 2.85 | 3.32 | 3.6 | 4.26 | 5.4 | 10.74 | 12.84 | 14.59 | 30 |
Number Outstanding | 942,648 | 983,888 | 983,889 | 764,011 | ' | ' | 764,011 | ' | ' | 970,088 | 58,205,280 | ' | ' | 1,153,466 | 50,000 | 8,513 | 63,158 | 3,768 | 33,333 | 16,667 | 115,000 | 100,000 | 1,667 | 668,449 | 21,667 |
Warrants Outstanding Remaining Contractual Life (Years) | ' | ' | '4 years 1 month 6 days | '2 years 11 months 19 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 11 months 1 day | '3 years 9 months 15 days | '4 years 9 months 15 days | '4 years 3 months 7 days | '4 months 21 days | '1 year 3 months 26 days | '2 years 11 months 1 day | '2 years 1 month 6 days | '2 years 7 months 6 days | '4 years 9 months 18 days | '1 month 13 days |
Weighted Average Exercise Price | ' | ' | 11.78 | 8.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.4 | 2.64 | 2.85 | 3.32 | 3.6 | 4.26 | 5.4 | 10.74 | 12.84 | 14.59 | 30 |
Weighted Average Exercisable | ' | ' | 982,222 | 764,011 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | 8,513 | 63,158 | 3,768 | 33,333 | 16,667 | 115,000 | 1,667 | ' | 668,449 | 21,667 |
Exercisable Weighted Average Exercise Price | ' | ' | 11.78 | 8.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.4 | 2.64 | 2.85 | 3.32 | 3.6 | 4.26 | 5.4 | 10.74 | ' | 14.59 | 30 |
STOCK_OPTIONS_AND_WARRANTS_Cha2
STOCK OPTIONS AND WARRANTS - Changes in options outstanding and related prices (Details 5) (USD $) | Sep. 30, 2012 | Oct. 14, 2013 | Oct. 17, 2013 | Sep. 30, 2012 | Mar. 16, 2012 | Feb. 08, 2012 | Dec. 06, 2011 | Nov. 30, 2011 | Aug. 02, 2011 | Jul. 11, 2011 | Jan. 04, 2011 | Dec. 13, 2010 | Jul. 02, 2013 | 12-May-12 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Oct. 01, 2012 | Oct. 01, 2011 | Sep. 30, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | ||
Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | |||||||||||||
Exercise Prices 3.00 | Exercise Prices 3.00 | Exercise Prices 3.00 | Exercise Prices 3.51 | Exercise Prices 3.51 | Exercise Prices 3.51 | Exercise Price 3.60 | Exercise Price 3.60 | Exercise Price 3.60 | Exercise Prices 3.90 | Exercise Prices 3.90 | Exercise Prices 3.90 | Exercise Prices 4.08 | Exercise Prices 4.08 | Exercise Prices 4.08 | Exercise Prices 4.20 | Exercise Prices 4.20 | Exercise Prices 4.20 | Exercise Price 5.40 | Exercise Price 5.40 | Exercise Price 5.40 | Exercise Prices 6.60 | Exercise Prices 6.60 | Exercise Prices 6.60 | Exercise Prices 10.79 | Exercise Prices 11.58 | Exercise Prices 12.00 | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise Prices | ' | $5.32 | $5.32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11.58 | $12 | $6.02 | $10.88 | $4.02 | $3.60 | ' | ' | ' | $3 | ' | ' | $3.51 | ' | ' | $3.60 | ' | ' | $3.90 | ' | ' | $4.08 | ' | ' | $4.20 | ' | ' | $5.40 | ' | ' | $6.60 | ' | ' | $10.79 | $11.58 | $12 |
Employee stock options outstanding (in shares) | 125,208,825 | ' | ' | 2,086,814 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,245,500 | 2,024,237 | 2,086,814 | 2,010,833 | 2,086,814 | 2,010,833 | 1,115,000 | 400,000 | 483,333 | ' | 833,333 | 833,333 | ' | 500,000 | 501,668 | ' | 10,580 | 10,580 | ' | 79,500 | 95,400 | ' | 47,500 | 47,500 | ' | 25,000 | 25,000 | ' | 90,000 | 90,000 | ' | 34,989 | 1,667 | 100,000 |
Weighted Average Remaining Contractual Life of Options Outstanding (Years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 2 months 23 days | ' | '3 years 11 months 8 days | ' | ' | ' | '1 year 7 months 24 days | '2 years 7 months 24 days | '2 years 7 months 24 days | '4 years 9 months 15 days | '5 years 9 months 14 days | '5 years 9 months 14 days | '1 year 9 months 4 days | '2 years 9 months 3 days | '2 years 9 months 4 days | '3 years 2 months 5 days | '4 years 2 months 5 days | '4 years 2 months 5 days | '3 years 2 months 1 day | '4 years 2 months 1 day | '4 years 2 months 1 day | '1 year 8 months 1 day | '2 years 8 months 1 day | '2 years 8 months 1 day | '2 years 11 months 1 day | '3 years 11 months 1 day | '3 years 11 months 1 day | '4 years 8 months 16 days | '8 months 16 days | '8 months 16 days | '4 years 2 months 1 day | '4 years 9 months | '4 years 7 months 17 days |
Weighted Average Exercise Price of Options Outstanding | ' | ' | ' | ' | $0.06 | $0.07 | $0.07 | $0.07 | $0.07 | $0.06 | $0.08 | $0.07 | ' | ' | $4.61 | $3.78 | $3.60 | $3.60 | $3.60 | $3.60 | $3.60 | $3 | $3.51 | ' | $3.51 | $3.60 | ' | $3.60 | $0.06 | ' | $3.90 | $3.90 | ' | $4.08 | $4.08 | ' | $4.20 | $4.20 | ' | $5.40 | $5.40 | ' | $6.60 | $6.60 | ' | $10.79 | $11.58 | $0.20 |
Number Exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,970,080 | 97,196,325 | ' | ' | ' | ' | 400,000 | 483,333 | ' | 833,333 | 833,333 | ' | 500,000 | 501,668 | ' | 10,580 | 10,580 | ' | 79,500 | 95,400 | ' | 31,667 | 47,500 | ' | 25,000 | 25,000 | ' | 90,000 | 90,000 | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.63 | $0.06 | ' | ' | ' | ' | $3 | $3.51 | ' | $3.51 | $3.60 | ' | $3.60 | $0.06 | ' | $3.90 | $3.90 | ' | $4.08 | $4.08 | ' | $4.20 | $4.20 | ' | $5.40 | $5.40 | ' | $6.60 | $6.60 | ' | ' | ' | ' |
STOCK_OPTIONS_AND_WARRANTS_Tra2
STOCK OPTIONS AND WARRANTS - Transactions involving warrants (Detail Textuals) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||
31-May-13 | Apr. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Apr. 25, 2013 | 7-May-13 | Nov. 07, 2012 | Jan. 25, 2012 | Aug. 12, 2011 | Oct. 31, 2011 | Jul. 31, 2011 | Jan. 31, 2011 | Nov. 30, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 01, 2012 | Oct. 01, 2011 | Sep. 30, 2011 | Sep. 30, 2010 | Aug. 12, 2011 | Nov. 29, 2012 | Nov. 30, 2010 | Aug. 12, 2011 | Nov. 29, 2012 | Nov. 30, 2010 | Apr. 25, 2013 | Nov. 28, 2012 | Nov. 29, 2012 | Nov. 29, 2013 | Jul. 19, 2013 | Apr. 25, 2013 | Apr. 25, 2013 | Sep. 30, 2013 | Jan. 22, 2013 | Aug. 14, 2013 | Oct. 31, 2011 | Sep. 30, 2012 | Jan. 25, 2012 | Sep. 30, 2012 | |
Crede | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Series A Warrants | Series B Warrants | Series B Warrants | Series C Warrants | Series C Warrants | Warrants issued on October 31, 2011 | Warrants issued on October 31, 2011 | Warrants issued on January 25, 2012 | Warrants issued on January 25, 2012 | |||||||
Maximum | Maximum | Maximum | Minimum | Minimum | Minimum | Initial Purchase Agreement | Initial Purchase Agreement | Initial Purchase Agreement | Initial Purchase Agreement | Second Purchase Agreement | Crede | Crede | Second Purchase Agreement | Initial Purchase Agreement | Second Purchase Agreement | ||||||||||||||||||||||||||
Crede | Crede | ||||||||||||||||||||||||||||||||||||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of warrants issued for services | ' | ' | ' | ' | ' | ' | ' | 1,667 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' | 1,000,000 | ' |
Term of warrants (in years) | ' | ' | ' | ' | ' | ' | ' | '3 Years | '3 Years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'One to five years | ' | 'One to five years | ' | ' | ' | ' | ' | '3 Years | ' | '3 Years | ' |
Exercise price of warrants | ' | ' | ' | ' | ' | ' | ' | 12.84 | 10.74 | 4.26 | ' | 4.2 | 2.85 | 3.32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.97 | ' | ' | 1.85 | ' | ' | 13.39 | ' | 14.59 | ' | ' | ' | ' | ' | 0.07 | ' | 0.071 | ' |
Method used for determining fair value of warrants | ' | ' | ' | ' | ' | ' | ' | 'Black Scholes Option Pricing Model | 'Black Scholes Option Pricing Model | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Binomial Lattice model | 'Binomial Lattice model | ' | ' | 'Binomial Lattice model | ' | ' | 'Binomial Lattice model | ' | ' | ' | 'Black Scholes Option Pricing Model | ' | 'Black Scholes Option Pricing Model |
Fair value assumptions, dividend yield | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ' | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | ' | ' | 0.00% | ' | ' | 0.00% | ' | ' | ' | 0.00% | ' | 0.00% |
Fair value assumptions, volatility rate | ' | ' | ' | ' | ' | ' | ' | 119.72% | 129.56% | 147.53% | 162.03% | 157.69% | ' | 170.33% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 169.21% | ' | ' | 169.06% | 125.97% | 146.32% | ' | ' | 130.09% | ' | ' | 121.71% | ' | ' | ' | 157.69% | ' | 147.53% |
Fair value assumptions, risk free rate | ' | ' | ' | ' | ' | ' | ' | 0.35% | 0.36% | 0.81% | ' | 0.41% | ' | 2.69% | ' | ' | ' | ' | ' | ' | ' | 0.32% | ' | 2.20% | 0.01% | ' | 2.16% | 0.71% | 0.64% | ' | ' | 1.31% | ' | ' | 1.39% | ' | ' | ' | 0.41% | ' | 0.81% |
Number of warrants exercised during period | ' | ' | ' | 311,586 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,003,948 | 83,994 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 179,211 | 492,831 | ' | ' | ' | ' | ' | ' | 5,039,633 |
Fair value of the warrants | ' | ' | ' | ' | ' | ' | ' | $15,018 | $13,238 | $56,875 | ' | $1,363 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,326,553 | $1,181,324 | ' | ' | $1,280,532 | ' | ' | $2,643,449 | ' | ' | ' | $1,363 | ' | $56,875 |
Expected terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | '3 years | '7 years | '7 years | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 6 months 15 days | '5 years | ' | ' | '5 years | ' | ' | '4 years 9 months 18 days | ' | ' | ' | ' | ' | ' |
Number of warrants outstanding | ' | ' | ' | 942,648 | ' | 983,888 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 983,889 | 764,011 | 764,011 | 970,088 | 58,205,280 | 1,153,466 | ' | ' | ' | ' | ' | ' | ' | ' | 1,120,072 | 67,204,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of years for exercisable of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued | ' | ' | ' | ' | ' | ' | 520,951 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,114,082 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in connection with the exercise of warrants | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrants | ' | ' | $6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from exercise of warrants | ' | ' | 150,000 | ' | 150,000 | 151,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in connection with the cashless exercise | 40,316 | 188,090 | ' | ' | ' | 77,325 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock in connection with the cashless exercise of options (in shares) | 49,599 | 257,306 | ' | ' | ' | 99,233 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price | $2.52 | $3.78 | ' | ' | ' | $3.18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for repurchase of warrants | ' | ' | ' | ' | 50,000 | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of warrants repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 448,029 | 445,633 | ' | ' | ' | ' |
Repurchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000 | $10,000 | ' | ' | ' | ' |
Number of common stock issued in settlement of warrants exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,012,160 |
STOCK_OPTIONS_AND_WARRANTS_Tra3
STOCK OPTIONS AND WARRANTS - Transactions involving warrants (Detail Textuals 1) (USD $) | 12 Months Ended | 24 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 24 Months Ended | 12 Months Ended | 24 Months Ended | ||||||
Sep. 30, 2011 | Sep. 30, 2012 | 7-May-13 | Nov. 07, 2012 | Jan. 25, 2012 | Aug. 12, 2011 | Oct. 31, 2011 | Jul. 31, 2011 | Jan. 31, 2011 | Nov. 30, 2010 | Aug. 12, 2011 | Nov. 30, 2010 | Aug. 12, 2011 | Nov. 30, 2010 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | |
Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants issued on November 2010 | Warrants issued on November 2010 | Warrants issued on November 2010 | Warrants issued on January 2011 | Warrants issued on January 2011 | Warrants issued on January 2011 | |||
Maximum | Maximum | Minimum | Minimum | |||||||||||||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of vested warrants issued for service | 217,971 | ' | ' | 1,667 | 16,667 | ' | 1,250 | 126,316 | 22,608 | 49,365 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrants | ' | ' | 12.84 | 10.74 | 4.26 | ' | 4.2 | 2.85 | 3.32 | ' | ' | 1.97 | ' | 1.85 | ' | ' | ' | ' | ' | ' |
Fair value of the warrants | ' | ' | $15,018 | $13,238 | $56,875 | ' | $1,363 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected terms | ' | ' | ' | ' | '3 years | ' | '3 years | '7 years | '7 years | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield | ' | ' | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ' | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility | ' | ' | 119.72% | 129.56% | 147.53% | 162.03% | 157.69% | ' | 170.33% | ' | ' | 169.21% | ' | 169.06% | ' | ' | ' | ' | ' | ' |
Risk free interest rate | ' | ' | 0.35% | 0.36% | 0.81% | ' | 0.41% | ' | 2.69% | ' | 0.32% | 2.20% | 0.01% | 2.16% | ' | ' | ' | ' | ' | ' |
Method used to calculate fair value of warrants | ' | ' | ' | ' | 'Black Scholes Option Pricing Model | 'Black Scholes Option Pricing model | 'Black Scholes Option Pricing Model | ' | 'Black-Scholes Option Pricing | 'Black-Scholes Option Pricing Model | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of warrants charged ratably to operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,851 | 101,989 | 120,840 | 26,478 | 70,653 | 97,131 |
Previously issued warrants exercisable price | ' | ' | ' | ' | ' | 5.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extended period of warrants | ' | ' | ' | ' | ' | 'September 1, 2011 to September 1, 2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of warrants | ' | ' | ' | ' | ' | $194,424 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock share issued in settlement of warrants (in shares) | ' | 83,536 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of warrants exercised on cashless basis (in shares) | ' | 83,994 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCK_OPTIONS_AND_WARRANTS_Emp
STOCK OPTIONS AND WARRANTS -Employee Stock Options (Detail Textuals 2) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 16, 2012 | Feb. 08, 2012 | Dec. 06, 2011 | Nov. 30, 2011 | Aug. 02, 2011 | Jul. 11, 2011 | Jan. 04, 2011 | Dec. 13, 2010 | Jan. 27, 2012 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 01, 2012 | Oct. 01, 2011 | Sep. 30, 2011 | Sep. 30, 2010 | Jun. 17, 2008 | 16-May-07 | Feb. 15, 2005 | Jan. 26, 2005 | |
Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | ||||||||
Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock as stock awards and stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,833,333 | ' | ' | ' | ' | ' | ' | ' | 1,666,667 | 333,333 | 266,667 | 266,667 |
Issuance of additional common Stock as stock awards and stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 833,333 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative number of shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $211,250 | $169,583 | $169,583 | ' | ' | ' | ' | ' | ' | ' | ' |
Options to purchase Shares under the 2005 Incentive Stock Plan | ' | ' | ' | ' | ' | 125,208,825 | ' | ' | 2,086,814 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,245,500 | 2,024,237 | 2,086,814 | 2,086,814 | 2,010,833 | 2,010,833 | 1,115,000 | ' | ' | ' | ' |
Stock-based compensation expense | $404,507 | $870,576 | $1,717,837 | $1,743,598 | $1,926,129 | $1,953,844 | $1,485,068 | $1,926,129 | $1,953,844 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price per share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.06 | $0.07 | $0.07 | $0.07 | $0.07 | $0.06 | $0.08 | $0.07 | ' | $4.61 | $3.78 | $3.60 | $3.60 | $3.60 | $3.60 | $3.60 | ' | ' | ' | ' |
Common stock issued as officer compensation (in shares) | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCK_OPTIONS_AND_WARRANTS_Emp1
STOCK OPTIONS AND WARRANTS -Employee Stock Options (Detail Textuals 3) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Oct. 14, 2013 | Oct. 17, 2013 | Mar. 16, 2012 | Feb. 08, 2012 | Dec. 06, 2011 | Aug. 02, 2011 | Jan. 04, 2011 | Sep. 24, 2012 | Aug. 12, 2011 | Jul. 11, 2011 | Dec. 13, 2010 | Nov. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock options granted to purchase the Company's common stock (in shares) | ' | ' | ' | ' | ' | ' | 15,000,000 | 122,950 | 62,963 | 100,000 | 100,000 | 10,580 | 4,167 | 33,333 | ' | ' | 833,333 | 25,000 | 95,400 | ' | ' |
Exercise price per share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.06 | $0.07 | $0.07 | $0.07 | $0.08 | ' | ' | $0.06 | $0.07 | $0.07 | ' | ' |
Dividend yield assumed as per black scholes option pricing model | 0.00% | ' | 0.00% | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ' | 0.00% | 0.00% | 0.00% | 0.00% | ' | ' |
Volatility assumed as per black scholes option pricing model | 110.46% | ' | 112.19% | ' | ' | ' | ' | ' | ' | 149.81% | 152.56% | 156.29% | 162.43% | 170.62% | ' | 162.03% | 162.37% | 171.29% | 156.65% | ' | ' |
Risk free interest rate | 1.19% | ' | 0.95% | ' | ' | ' | ' | ' | ' | 1.13% | 0.82% | 0.94% | 1.32% | 2.01% | ' | ' | 2.22% | 0.98% | 0.96% | ' | ' |
Risk free interest rate minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.01% | ' | ' | ' | ' | ' |
Risk free interest rate maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.32% | ' | ' | ' | ' | ' |
Method used to calculate fair value of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Black-Scholes Option Pricing Model | 'Black-Scholes Option Pricing Model | 'Black-Scholes Option Pricing Model | 'Black-Scholes Option Pricing Model | 'Black-Scholes Option Pricing Model | ' | 'Black-Scholes Option Pricing model | 'Black-Scholes Option Pricing Model | 'Black Scholes Option Pricing Model | 'Black-Scholes Option Pricing Model | ' | ' |
Number of years for exercisable of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | '5 years | '5 years | '5 years | ' | ' | '7 years | '5 years | '5 years | ' | ' |
Percentage of options vesting to employee | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | ' | 25.00% | 25.00% | ' | ' | ' | 25.00% | ' | ' | ' |
Percentage of options vesting immediately to key officers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' |
Percentage of options vesting on anniversary to key officers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37.50% | ' | ' | ' | ' |
Period of next vesting for employee | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '4 years | ' | '4 years | '4 years | ' | ' | '2 years | '4 years | ' | ' | ' |
Stock-based compensation expense | $404,507 | $870,576 | $1,717,837 | $1,743,598 | $1,926,129 | $1,953,844 | $1,485,068 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,926,129 | $1,953,844 |
Previously issued stock options exercisable price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.40 | ' | ' | ' | ' | ' |
Extended period of stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'September 1, 2011 to September 1, 2016 | ' | ' | ' | ' | ' |
Fair value change from employee option modification | ' | ' | $43,401 | $408,605 | $408,605 | ' | $738,810 | ' | ' | ' | ' | ' | ' | ' | ' | $544,386 | ' | ' | ' | ' | ' |
Common stock share issued settlement of options exercised on cashless basis (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,819 | ' | ' | ' | ' | ' | ' |
Number of options exercises (in shares) | ' | ' | ' | ' | 417 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,333 | ' | ' | ' | ' | ' | ' |
Number of options expired (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' |
STOCK_OPTIONS_AND_WARRANTS_Emp2
STOCK OPTIONS AND WARRANTS - Employee Stock Options (Detail Textuals 4) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Oct. 14, 2013 | Oct. 17, 2013 | Mar. 16, 2012 | Feb. 08, 2012 | Dec. 06, 2011 | Aug. 02, 2011 | Feb. 23, 2014 | Jul. 11, 2011 | Jan. 04, 2011 | Dec. 13, 2010 | Nov. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 02, 2013 | 12-May-12 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | 1-May-14 | Apr. 14, 2014 | Dec. 02, 2013 | Nov. 28, 2013 | Oct. 14, 2013 | Oct. 17, 2013 | Oct. 17, 2013 | Dec. 10, 2013 | Oct. 14, 2013 | Oct. 17, 2013 | Feb. 06, 2014 | |
Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | ||||||||
Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Vesting on each anniversary for next four years | Vesting on each anniversary for next four years | Vesting on each anniversary for next four years | Vesting on each anniversary for next four years | Vesting on each anniversary for next four years | Vesting on each anniversary for next four years | Vesting on each anniversary for next four years | Immediate vesting | Immediate vesting | Immediate vesting | Immediate vesting | |||||||||||||||||||||||
Chairman CEO And President | Dr. Ming-Hwa Liang | Non-employee board of director members | Consultant | ||||||||||||||||||||||||||||||||||||
Incentive Stock Plan 2005 | |||||||||||||||||||||||||||||||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares granted | ' | ' | ' | ' | ' | ' | 15,000,000 | 122,950 | 62,963 | 100,000 | 100,000 | 10,580 | 4,167 | ' | 833,333 | 33,333 | 25,000 | 95,400 | ' | ' | ' | ' | 1,667 | 1,667 | 1,221,346 | 38,323 | 109,314 | 895,833 | 4,167 | 33,333 | 33,333 | 4,167 | ' | 833,333 | 50,000 | 35,433 | ' | 62,963 | 41,667 |
Exercise price per share of options granted | ' | ' | ' | ' | ' | ' | ' | $5.32 | $5.32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11.58 | $12 | $6.02 | $10.88 | $4.02 | $3.60 | $6.89 | $6.89 | $7.02 | $9.60 | ' | $0.10 | $5.82 | $8.16 | ' | $5.82 | $9.60 |
Vesting period of options issued | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | '5 years | '5 years | '5 years | '5 years | ' | '5 years | '5 years | '5 years | ' | '5 years | '5 years |
Number of shares vested but unexercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,185,550 | 1,970,080 | ' | ' | ' | ' | ' | ' | 89,617 | ' | ' | ' | 33,333 | ' | ' |
Percentage of vesting in each year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | ' | ' | ' | ' | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | ' | ' | ' | ' |
Number of options extended that were set to expire | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | $1,674,436 | $1,334,993 | $1,517,524 | $1,953,844 | $1,485,068 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $43,401 | $43,401 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 404,507 | 870,576 | 1,717,837 | 1,743,598 | 1,926,129 | 1,953,844 | 1,485,068 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,926,129 | 1,953,844 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecorded compensation cost related to non-vested awards | $3,625,140 | ' | $3,625,140 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $107,462 | $107,462 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period of non-vested awards options | ' | ' | '3 years 3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCK_OPTIONS_AND_WARRANTS_Emp3
STOCK OPTIONS AND WARRANTS - Employee Stock Options (Detail Textuals 5) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||||||||||||||||
31-May-13 | Apr. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 14, 2013 | Oct. 17, 2013 | 15-May-13 | Feb. 08, 2012 | Dec. 06, 2011 | Aug. 02, 2011 | Jan. 04, 2011 | Sep. 24, 2012 | Mar. 16, 2012 | Aug. 12, 2011 | Jul. 11, 2011 | Dec. 13, 2010 | Nov. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 02, 2013 | 12-May-12 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Oct. 01, 2012 | Oct. 01, 2011 | Sep. 30, 2010 | Dec. 06, 2011 | Nov. 30, 2011 | Mar. 16, 2012 | Feb. 08, 2012 | Aug. 20, 2013 | Nov. 30, 2012 | |
Warrants | Warrants | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Non-employee Stock Option | ||||||||||
Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Incentive Stock Plan 2005 | Director | Director | Employee | Employee | Former Chief Financial Officer | Director | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock options granted to purchase the Company's common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | 122,950 | 62,963 | ' | 100,000 | 10,580 | 4,167 | 33,333 | ' | 100,000 | ' | 833,333 | 25,000 | 95,400 | ' | ' | 1,667 | 1,667 | 1,221,346 | 38,323 | 109,314 | 895,833 | ' | ' | ' | 10,580 | 95,400 | 1,667 | 1,667 | ' | 34,989 |
Term of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | '5 years | '5 years | ' | '5 years | ' | '7 years | '5 years | '5 years | ' | ' | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | '5 years | '5 years | ' | '5 years |
Vesting period of options issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year |
Method used to determine fair value of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Black-Scholes Option Pricing Model | 'Black-Scholes Option Pricing Model | 'Black-Scholes Option Pricing Model | 'Black-Scholes Option Pricing Model | ' | 'Black-Scholes Option Pricing Model | 'Black-Scholes Option Pricing model | 'Black-Scholes Option Pricing Model | 'Black Scholes Option Pricing Model | 'Black-Scholes Option Pricing Model | ' | ' | 'Black-Scholes Option Pricing Model | 'Black Scholes Option Pricing Model | ' | ' | ' | ' | ' | ' | ' | 'Black-Scholes Option Pricing Model | 'Black-Scholes Option Pricing Model | 'Black-Scholes Option Pricing Model | 'Black-Scholes Option Pricing Model | ' | 'Black Scholes Option Pricing Model |
Percentage of vesting in each year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | ' | ' |
Fair value of options, dividend yield | ' | ' | 0.00% | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 0.00% | 0.00% | ' | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ' | ' | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 0.00% | 0.00% | ' | 0.00% |
Fair value of options, volatility rate | ' | ' | 110.46% | ' | 112.19% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 152.56% | 156.29% | 162.43% | 170.62% | ' | 149.81% | 162.03% | 162.37% | 171.29% | 156.65% | ' | ' | 114.00% | 117.57% | ' | ' | ' | ' | ' | ' | ' | 156.29% | 156.65% | 149.81% | 152.56% | ' | 146.33% |
Fair value of options, risk free rate | ' | ' | 1.19% | ' | 0.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.82% | 0.94% | 1.32% | 2.01% | ' | 1.13% | ' | 2.22% | 0.98% | 0.96% | ' | ' | 1.01% | 0.60% | ' | ' | ' | ' | ' | ' | ' | 0.94% | 0.96% | 1.13% | 0.82% | ' | 0.82% |
Fair value of options, exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.32 | $5.32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11.58 | $12 | $6.02 | $10.88 | $4.02 | $3.60 | ' | ' | ' | $3.90 | $4.08 | $3.60 | $4.20 | ' | $10.79 |
Number of options expired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options set to expire to June 16, 2018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for exercise of vested options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' |
Number of options vested during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,185,550 | 1,970,080 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 341,667 | ' |
Common stock issued in connection with the cashless exercise | 40,316 | 188,090 | ' | ' | ' | ' | 77,325 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of warrants exercised during period | ' | ' | ' | ' | 311,586 | ' | ' | ' | ' | 1,003,948 | 83,994 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common stock issued in settlement of options exercised | 49,599 | 257,306 | ' | ' | ' | ' | 99,233 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,819 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price | $2.52 | $3.78 | ' | ' | ' | ' | $3.18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common stock issued in connection with exercise of options | ' | ' | ' | ' | ' | ' | 417 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options exercises (in shares) | ' | ' | ' | ' | ' | ' | 417 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,333 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99,650 | 8,333 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option exercise price (in dollars per share) | ' | ' | ' | ' | ' | ' | $3.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.52 | $4.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | $404,507 | $870,576 | $1,717,837 | $1,743,598 | $1,926,129 | $1,953,844 | $1,485,068 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,926,129 | $1,953,844 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecorded compensation cost related to non-vested awards | ' | ' | 3,625,140 | ' | 3,625,140 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 107,462 | 107,462 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental stock compensation expense connection with modification | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $408,605 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price per share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.07 | $0.07 | $0.07 | $0.08 | ' | $0.06 | ' | $0.06 | $0.07 | $0.07 | ' | ' | ' | ' | $4.61 | $3.78 | $3.60 | $3.60 | $3.60 | $3.60 | $3.60 | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Net operating loss carry forward | $17,913,000 | $14,551,000 |
Valuation allowance | ' | -38,000,000 |
Net deferred tax asset | ' | ' |
INCOME_TAXES_Provision_Benefit
INCOME TAXES - Provision (Benefit) (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Federal: | ' | ' | ' | ' | ' | ' | ' |
Current | ' | ' | ' | ' | ' | ' | ' |
Deferred | ' | ' | ' | ' | 2,955,000 | 1,422,000 | ' |
Federal income tax expense benefit, total | ' | ' | ' | ' | 2,955,000 | 1,422,000 | ' |
State and local: | ' | ' | ' | ' | ' | ' | ' |
Current | ' | ' | ' | ' | ' | ' | ' |
Deferred | ' | ' | ' | ' | 407,000 | 196,000 | ' |
State and local income tax expense benefit, total | ' | ' | ' | ' | 407,000 | 196,000 | ' |
Change in valuation allowance | ' | ' | ' | ' | -3,362,000 | -1,618,000 | ' |
Income tax provision (benefit) | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_Provision_for_inc
INCOME TAXES - Provision for income taxes differ from amount of income tax determined (Parentheticals) (Details 1) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Statutory rate & local income tax rate including portion of federal benefit | 7.10% | 7.10% |
INCOME_TAXES_Provision_for_inc1
INCOME TAXES - Provision for income taxes differ from amount of income tax determined (Details 2) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Statutory federal income tax rate | -34.00% | -34.00% |
Statutory state and local income tax rate (7.1%), net of federal benefit | -4.69% | -4.69% |
Stock based compensation | 3.27% | 10.74% |
Depreciation and amortization | -0.12% | -0.28% |
Amortization of debt discount | 0.00% | 2.92% |
Change in valuation allowance | 35.54% | 25.31% |
Effective tax rate | 0.00% | 0.00% |
INCOME_TAXES_Components_of_def
INCOME TAXES - Components of deferred tax assets (Details 3) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Deferred tax assets (liabilities): | ' | ' |
Stock based compensation | $578,000 | $768,000 |
Depreciation and amortization | -21,000 | -20,000 |
Amortization of debt discount | ' | 209,000 |
Net operating loss carry forward | 17,913,000 | 14,551,000 |
Less: valuation allowance | -18,470,000 | -15,508,000 |
Net deferred tax asset | ' | ' |
INCOME_TAXES_Detail_Textuals
INCOME TAXES (Detail Textuals) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Net operating loss carry forward | $17,913,000 | $14,551,000 |
INCOME_TAXES_Detail_Textuals_1
INCOME TAXES (Detail Textuals 1) (USD $) | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' |
Operating loss carryforwards | $46,300,000 |
LOSS_PER_SHARE_Details
LOSS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Net loss available for common shareholders | ' | ' | ' | ' | ' | ($7,150,712) | ($10,515,124) |
Net loss per share-basic and diluted (in dollars per share) | ($0.14) | ($0.18) | ($0.82) | ($1.23) | ($1.51) | ($0.74) | ($1.67) |
Weighted average common shares outstanding-basic | ' | ' | ' | ' | ' | 9,601,525 | 6,280,563 |
Weighted average common shares outstanding diluted | ' | ' | ' | ' | 839,583,895 | 9,601,525 | 6,280,563 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - Future minimum rental payments (Details) (USD $) | Sep. 30, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' |
2014 | $450,617 |
2015 | 449,142 |
2016 | 299,428 |
Total | $1,199,187 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Detail Textuals) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jun. 14, 2013 | Jun. 15, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Jun. 21, 2014 | |
sqft | sqft | James A. Hayward | ||||||||
Employment agreement | ||||||||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of property under operating lease | 30,000 | 30,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Extended operating lease for two additional period | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
Base rent during initial lease term per annum | $449,142 | $449,142 | ' | ' | $2,850 | ' | ' | ' | ' | ' |
Total lease rental expenses | ' | ' | 125,268 | 82,033 | 380,251 | 226,581 | 352,867 | 244,192 | 144,118 | ' |
Reduced amount of salary | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 |
Threshold amount of sale for two consecutive quarters | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,000,000 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Detail Textuals 1) (Employment agreement, USD $) | 0 Months Ended |
In Millions, except Share data, unless otherwise specified | Jul. 11, 2011 |
James A. Hayward | ' |
Commitments and Contingencies [Line Items] | ' |
Options to purchase Shares under the 2005 Incentive Stock Plan | 250,000 |
Percentage of option vested on the grant date | 25.00% |
Percentage of options vested on each next anniversary of grant date | 37.50% |
Increased amount of revenue | $1 |
Percentage of tranche accelerated | 37.50% |
Number of shares of common stock granted | 250,000 |
Kurt H. Jensen | ' |
Commitments and Contingencies [Line Items] | ' |
Options to purchase Shares under the 2005 Incentive Stock Plan | 166,667 |
Percentage of option vested on the grant date | 25.00% |
Percentage of options vested on each next anniversary of grant date | 37.50% |
Increased amount of revenue | $1 |
Percentage of tranche accelerated | 37.50% |
COMMITMENTS_AND_CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Detail Textuals 2) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Claim | Claim | ||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Total lease rental expenses | $125,268 | $82,033 | $380,251 | $226,581 | $352,867 | $244,192 | $144,118 |
Number of claims alleged in the amended complaint | ' | ' | ' | ' | 17 | 17 | ' |
Number of claims asserted against the company | ' | ' | ' | ' | 5 | 5 | ' |
Number of claims dismissed against asserted claims | ' | ' | ' | ' | 4 | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES (Detail Textuals 3) (USD $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | |||||
Sep. 30, 2011 | Jul. 11, 2011 | Jul. 11, 2011 | Jul. 11, 2011 | Sep. 30, 2013 | Jul. 11, 2011 | Jul. 11, 2011 | Jul. 11, 2011 | |
Employment agreement | Employment agreement | Employment agreement | Employment agreement | Employment agreement | Employment agreement | Employment agreement | ||
James A. Hayward | James A. Hayward | James A. Hayward | Kurt H. Jensen | Kurt H. Jensen | Kurt H. Jensen | Kurt H. Jensen | ||
Vesting on grant date | Vesting on each of next two anniversaries of grant date | Vesting on grant date | Vesting on each of next two anniversaries of grant date | |||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Share price | ' | ($3.51) | ' | ' | ' | ($3.51) | ' | ' |
Percentage of vesting in each year | ' | ' | 25.00% | 37.50% | ' | ' | 25.00% | 37.50% |
Conditional benchmark revenue to determine vesting percentage | ' | ' | $1,000,000 | ' | ' | ' | $1,000,000 | ' |
Description of vesting terms | ' | ' | 'If Company's revenues for any fiscal quarter increase by more than $1 million over the prior fiscal quarter, then the vesting date for the next 37.5% tranche will be accelerated. | ' | ' | ' | 'If Company's revenues for any fiscal quarter increase by more than $1 million over the prior fiscal quarter, then the vesting date for the next 37.5% tranche will be accelerated. | ' |
Number of shares granted | 15,000,000 | ' | 666,667 | ' | ' | ' | 166,667 | ' |
Additional options granted | ' | ' | 250,000 | ' | ' | ' | ' | ' |
Period to exercise the shares | ' | ' | ' | ' | ' | ' | '1 year | ' |
Number of shares vested but unexercised | ' | ' | ' | ' | ' | ' | 341,667 | ' |
Accrued amount related to resignation agreement | ' | ' | ' | ' | $79,000 | ' | ' | ' |
FAIR_VALUE_Fair_Value_Measurem
FAIR VALUE - Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3) (Details) (Common Stock Warrants, USD $) | 9 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||||
Common Stock Warrants | ' | ' | ' | ' | ' | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ' | ||||
Begining Balance | $2,643,449 | ' | ' | ' | ' | ||||
Issuance of Series A and B Warrants | ' | 1,181,324 | 2,461,856 | ' | ' | ||||
Adjustment resulting from change in fair value | 1,663,316 | [1] | 6,145,229 | [1] | 7,508,146 | [1] | ' | [1] | ' |
Reclassification to equity upon exercise | -2,455,042 | -7,326,553 | -7,326,553 | ' | ' | ||||
Ending Balance | $1,851,723 | ' | $2,643,449 | ' | ' | ||||
[1] | Adjustment resulting from change in fair value is the amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to liabilities held at the reporting date. The unrealized gain or loss is recorded in change in fair value of warrant liability in the accompanying condensed consolidated statements of operations. |
INTANGIBLE_ASSETS_Identifiable
INTANGIBLE ASSETS - Identifiable intangible assets acquired (Details) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Trade secrets and developed technologies (Weighted average life of 7 years) | ' | ' | $3,775,889 | $9,430,900 |
Patents (Weighted average life of 5 years) | ' | ' | 34,257 | 34,257 |
Intellectual property (Weighted average life of 5 years) | ' | 584,080 | ' | ' |
Total identifiable intangible assets-Gross carrying value | ' | 584,080 | 3,810,146 | 9,465,157 |
Less: Accumulated amortization | ' | -48,674 | -3,810,146 | -3,537,302 |
Less: Impairment charges | ' | -114,730 | ' | -5,655,011 |
Intangible assets, net | $351,328 | $420,676 | ' | $272,844 |
INTANGIBLE_ASSETS_Identifiable1
INTANGIBLE ASSETS - Identifiable intangible assets acquired (Parentheticals) (Details) | 12 Months Ended |
Sep. 30, 2013 | |
Trade secrets and developed technologies | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life (in years) | '7 years |
Patents | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life (in years) | '5 years |
Intellectual Property | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life (in years) | '5 years |
INTANGIBLE_ASSETS_Estimated_am
INTANGIBLE ASSETS - Estimated amortization expense of intangible assets (Details 1) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
2014 | ' | $90,145 | ' | ' |
2015 | ' | 90,145 | ' | ' |
2016 | ' | 90,145 | ' | ' |
2017 | ' | 90,145 | ' | ' |
2018 | ' | 60,096 | ' | ' |
Intangible assets, net | $351,328 | $420,676 | ' | $272,844 |
INTANGIBLE_ASSETS_Detail_Textu
INTANGIBLE ASSETS (Detail Textuals) (USD $) | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Trade Secrets and Developed Technologies | Patents | Patents | Patents | ||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Weighted average life (in years) | ' | ' | ' | '7 years | '5 years | '5 years | '5 years |
Total amortization expense charged to operations | $163,404 | $272,844 | $363,791 | ' | ' | ' | ' |
INTANGIBLE_ASSETS_Detail_Textu1
INTANGIBLE ASSETS (Detail Textuals 1) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | 10-May-13 | 10-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | |
USD ($) | USD ($) | USD ($) | Asset Purchase Agreement | Asset Purchase Agreement | Asset Purchase Agreement | Asset Purchase Agreement | |
Redweb Technologies Limited | Redweb Technologies Limited | Redweb Technologies Limited | Redweb Technologies Limited | ||||
USD ($) | GBP (£) | Intellectual Property | Supplies | ||||
USD ($) | USD ($) | ||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Amount of purchase price | ' | ' | ' | $624,080 | £ 400,000 | $584,080 | ' |
Supplies expense | ' | ' | ' | ' | ' | ' | 40,000 |
Amount held in escrow | ' | ' | ' | 62,408 | 40,000 | ' | ' |
Impairment expense | 114,730 | ' | ' | ' | ' | 114,730 | ' |
Total amortization expense charged to operations | $163,404 | $272,844 | $363,791 | ' | ' | ' | ' |
SUBSEQUENT_EVENTS_Detail_Textu
SUBSEQUENT EVENTS (Detail Textuals) (USD $) | 9 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 2 Months Ended | 1 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Jan. 27, 2012 | Jan. 26, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 28, 2012 | Aug. 28, 2014 | Nov. 29, 2012 | Nov. 29, 2012 | Sep. 30, 2012 | |
Common Stock | Common Stock | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||||||||
Securities Purchase Agreement With Crede CG II Ltd | Securities Purchase Agreement With Crede CG II Ltd | Securities Purchase Agreement With Crede CG II Ltd | ||||||||||||
Common Stock | Series A Convertible Preferred Stock | Series A Convertible Preferred Stock | ||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued (in shares) | ' | ' | ' | ' | ' | ' | ' | 21,447,875 | 44,963,516 | ' | ' | 179,211 | 5,500,000 | ' |
Issuance price of stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11.16 | ' | $11.16 | $1,000 | ' |
Gross proceeds from sale of common stock | $2,145,956 | $2,000,000 | $3,900,000 | $2,101,000 | $4,735,000 | ' | ' | ' | ' | ' | ' | $2,000,000 | ' | ' |
Fixed conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11.16 |
Reverse stock split | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-for-sixty | ' | ' | ' |
Common stock, shares authorized | 1,350,000,000 | ' | 1,350,000,000 | 1,350,000,000 | 800,000,000 | 1,350,000,000 | 800,000,000 | ' | ' | ' | 500,000,000 | ' | ' | ' |
SUBSEQUENT_EVENTS_Detail_Textu1
SUBSEQUENT EVENTS (Detail Textuals 1) (Subsequent Event, Crede CG II Ltd, USD $) | 1 Months Ended |
Nov. 29, 2012 | |
Series A Warrants | ' |
Subsequent Event [Line Items] | ' |
Term of warrant | '5 years |
Number of common stock called by warrants | 179,211 |
Exercise price of warrants | 13.39 |
Percentage of premium | 20.00% |
Series B Warrants | ' |
Subsequent Event [Line Items] | ' |
Term of warrant | '5 years |
Number of common stock called by warrants | 492,831 |
Exercise price of warrants | 13.39 |
Percentage of premium | 20.00% |
Series C Warrants | ' |
Subsequent Event [Line Items] | ' |
Term of warrant | '6 months |
Number of common stock called by warrants | 448,029 |
Exercise price of warrants | 13.39 |
Percentage of premium | 20.00% |
Repurchase price | $50,000 |
SUBSEQUENT_EVENTS_Detail_Textu2
SUBSEQUENT EVENTS (Detail Textuals 2) (USD $) | 12 Months Ended | 1 Months Ended | ||
Sep. 30, 2013 | Nov. 28, 2012 | Nov. 28, 2012 | Nov. 28, 2012 | |
Subsequent Event | Subsequent Event | Subsequent Event | ||
Crede CG II Ltd | Crede CG II Ltd | |||
Registration rights agreement | ||||
Exercise Of Warrants For Cash [Abstract] | ' | ' | ' | ' |
Exercise of warrants for cash, Description | ' | ' | 'Crede may exercise Series A and Series B Warrants by paying in cash or on a cashless basis by exchanging such Warrants for Common Stock using the Black-Scholes value. In the event that the Common Stock trades at a price 25% or more above the exercise price of the Series A and Series B Warrants for a period of 20 consecutive days (with average daily dollar volume of Common Stock on the OTC Bulletin Board at least equal to $300,000), the Company may obligate Crede to exercise such Warrants for cash. | ' |
Number of average daily dollar volume of common stock | ' | ' | $300,000 | ' |
Percentage of common stock trade | ' | ' | 25.00% | ' |
Number of trading days | ' | ' | '20 days | ' |
Registration Rights Agreement [Abstract] | ' | ' | ' | ' |
Number of days of initial closing to file registration statement | ' | ' | ' | '30 days |
Number of days for registration statement to be effective | ' | ' | ' | '60 days |
Number of days of registration statement fails to be declared effective subject to monthly penalties | ' | ' | ' | '90 days |
Term of expiration of monthly penalties | ' | ' | ' | '6 months |
Beneficial Ownership Blocker [Abstract] | ' | ' | ' | ' |
Beneficial ownership blocker, Description | ' | ' | 'The Series A Preferred and the Series A, B and C Warrants each contain a 9.9% "blocker" so that in no event shall the Series A Preferred or any of the Series A, B and C Warrants be convertible or exercisable (including through the cashless exercise exchange provision) into or for Common Stock to the extent that such conversion or exercise would result in Crede having "beneficial ownership" (within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended) of more than 9.9% of the Common Stock. Crede would, however, have the right from time to time to convert, exercise or exchange for shares of Common Stock, which over time would aggregate to greater than 9.9% beneficial ownership if all such shares of Common Stock so acquired had been held at one time by Crede. | ' |
Percentage of blocker | ' | ' | 9.90% | ' |
Maximum threshold for beneficial ownership | ' | ' | 9.90% | ' |
Term for participation in other equity or equity linked financings completed | ' | ' | '180 days | ' |
Additional Condition [Abstract] | ' | ' | ' | ' |
Condition of additional issuance of common stock, Description | ' | ' | ' | ' |
In addition, the Company has agreed not to issue additional Common Stock or securities convertible into Common Stock at a price below $11.16 per share or the market price of the Common Stock on the date the registration statement is declared effective, for a period of 180 days from the effective date of the registration statement, except for issuances (i) pursuant to acquisitions, joint ventures, license arrangements, leasing arrangements and other similar arrangements, (ii) to employees, consultants, directors and officers approved by the Board or pursuant to a plan approved by the Board, (iii) pursuant to one or more contracts entered into by the Company with third parties which would result in revenues to the Company during a three-month period equal to an annual run rate of $15 Million in revenues and (iv) pursuant to a contract entered into by the Company with a third party which would reasonably be expected to result in more than $3 Million in annual receivables. | ||||
Issuance price of stock issued | ' | $11.16 | ' | ' |
Amount of annual run rate | 15,000,000 | 15,000,000 | ' | ' |
Amount of annual receivables | $3,000,000 | $3,000,000 | ' | ' |
SUBSEQUENT_EVENTS_Detail_Textu3
SUBSEQUENT EVENTS (Detail Textuals 3) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | |
Sep. 30, 2011 | Oct. 14, 2013 | Dec. 19, 2012 | Nov. 30, 2012 | |
Subsequent Event | Subsequent Event | Subsequent Event | ||
Incentive Stock Plan 2005 | ||||
Non-employee board of director members | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Granted | 15,000,000 | 33,333 | ' | 34,989 |
Exercise price of options | ' | ' | ' | $10.79 |
Exercisable period of options | ' | ' | ' | '5 years |
Vesting period of options issued | ' | '5 years | ' | '1 year |
Grant award money for Rapid Growth and Expansion Project | ' | ' | $229,957 | ' |
SUBSEQUENT_EVENTS_Detail_Textu4
SUBSEQUENT EVENTS (Detail Textuals 4) (USD $) | 9 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | 4 Months Ended | 0 Months Ended | 3 Months Ended | ||||||
Jun. 30, 2014 | Sep. 30, 2011 | Apr. 25, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 25, 2013 | Apr. 25, 2013 | Feb. 11, 2014 | Sep. 30, 2011 | Dec. 20, 2013 | Oct. 14, 2013 | Dec. 16, 2013 | Oct. 14, 2013 | Feb. 11, 2014 | Dec. 16, 2013 | Dec. 16, 2013 | Feb. 11, 2014 | Dec. 20, 2013 | |
Crede | Warrants | Warrants | Series A Warrants | Series B Warrants | Common Stock | Common Stock | Consulting agreement | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | |||
Crede | Crede | Common Stock | Crede | Karol Gray | Warrants | Series A Warrants | Series B Warrants | Common Stock | Consulting agreement | |||||||||
Crede | Crede | Common Stock | ||||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Officers compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $336,000 | ' | ' | ' | ' | ' |
Vesting period of options issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | '5 years | ' | ' | ' | ' | ' |
Number of shares granted | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 33,333 | ' | 33,333 | ' | ' | ' | ' | ' |
Number of shares to be purchased on exercise of warrants | ' | ' | 520,951 | ' | ' | ' | ' | 12,447 | ' | ' | ' | 313,718 | ' | ' | ' | ' | 12,447 | ' |
Number of warrants exercised during period | 311,586 | ' | ' | 1,003,948 | 83,994 | 179,211 | 492,831 | 16,667 | ' | ' | ' | ' | ' | 16,667 | 178,523 | 116,667 | ' | ' |
Common stock issued in exchange for consulting services (in shares) | ' | 14,814 | ' | ' | ' | ' | ' | ' | 14,814 | 41,667 | ' | ' | ' | ' | ' | ' | ' | 41,667 |
Common stock issued in exchange for consulting services | ' | $65,000 | ' | ' | ' | ' | ' | ' | $15 | $337,500 | ' | ' | ' | ' | ' | ' | ' | $337,500 |
SUBSEQUENT_EVENTS_Detail_Textu5
SUBSEQUENT EVENTS (Detail Textuals 5) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 4 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Oct. 14, 2013 | Oct. 17, 2013 | Mar. 16, 2012 | Feb. 08, 2012 | Dec. 06, 2011 | Aug. 02, 2011 | Jul. 11, 2011 | Jan. 04, 2011 | Dec. 13, 2010 | Nov. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | 1-May-14 | Apr. 14, 2014 | Dec. 02, 2013 | Nov. 28, 2013 | Oct. 14, 2013 | Dec. 10, 2013 | Oct. 14, 2013 | Oct. 17, 2013 | Mar. 16, 2012 | Feb. 08, 2012 | Feb. 06, 2014 | Oct. 14, 2013 | Dec. 10, 2013 | Mar. 31, 2014 | Feb. 06, 2014 | Nov. 28, 2013 | Oct. 14, 2013 | Oct. 17, 2013 | Nov. 28, 2013 | Oct. 14, 2013 | Oct. 14, 2013 | Oct. 17, 2013 | Dec. 02, 2013 | Oct. 17, 2013 | Dec. 02, 2013 | Oct. 17, 2013 | Oct. 17, 2013 | |
Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||||||||
Vesting on each anniversary for next four years | Vesting on each anniversary for next four years | Vesting on each anniversary for next four years | Vesting on each anniversary for next four years | Vesting on each anniversary for next four years | Immediate vesting | Immediate vesting | Chairman CEO And President | Employee | Employee | Consultant | Employee | Consultant | Consultant | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | |||||||||||||||||||||
Vesting on each anniversary for next four years | Immediate vesting | Immediate vesting | Immediate vesting | Vesting on each anniversary for next four years | Vesting on each anniversary for next four years | Immediate vesting | Chairman CEO And President | Chairman CEO And President | Chairman CEO And President | Chief Technology Officer | Chief Technology Officer | Chief Technology Officer | ||||||||||||||||||||||||||||||||||
Vesting on each anniversary for next four years | Vesting on each anniversary for next four years | Vesting on each anniversary for next four years | ||||||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options granted | ' | ' | ' | ' | ' | ' | 15,000,000 | 122,950 | 62,963 | 100,000 | 100,000 | 10,580 | 4,167 | 833,333 | 33,333 | 25,000 | 95,400 | ' | ' | 4,167 | 33,333 | 33,333 | 4,167 | ' | 35,433 | ' | 833,333 | 1,667 | 1,667 | 41,667 | 33,333 | 35,433 | ' | 41,667 | 4,167 | 132,133 | 62,963 | ' | ' | ' | 833,333 | ' | ' | 33,333 | 50,000 | ' |
Exercise price per share of options granted | ' | ' | ' | ' | ' | ' | ' | $5.32 | $5.32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.89 | $6.89 | $7.02 | $9.60 | ' | $8.16 | ' | $0.10 | $3.60 | $4.20 | $9.60 | ' | $8.16 | ' | $9.60 | $6.96 | $5.32 | $5.32 | ' | ' | ' | $5.82 | ' | ' | $7.02 | $5.82 | ' |
Term of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | '5 years | '5 years | '7 years | '5 years | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | ' | ' | '5 years | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period of options issued | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | '5 years | '5 years | ' | '5 years | ' | '5 years | ' | ' | '5 years | '5 years | ' | ' | ' | '5 years | '5 years | '5 years | ' | ' | ' | '5 years | ' | ' | '5 years | '5 years | ' |
Percentage of vesting in each year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | ' | ' | 25.00% | 25.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | ' | ' | 25.00% | 25.00% | ' | ' | 25.00% |
Vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 89,617 | ' | 33,333 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98,800 | 33,333 | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | $404,507 | $870,576 | $1,717,837 | $1,743,598 | $1,926,129 | $1,953,844 | $1,485,068 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,926,129 | $1,953,844 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $271,417 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SUBSEQUENT_EVENTS_Detail_Textu6
SUBSEQUENT EVENTS (Detail Textuals 6) (Subsequent Event, Phase II SBIR contract, MDA, USD $) | 0 Months Ended |
Jul. 14, 2014 | |
Subsequent Event | Phase II SBIR contract | MDA | ' |
Subsequent Event [Line Items] | ' |
Amount of monthly payment | $975,000 |
Payment term | '2 years |