Know Labs (KNWN) 10-Q 16 Aug 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Jun. 30, 2021	Aug. 16, 2021
Cover [Abstract]
Entity Registrant Name	KNOW LABS, INC
Entity Central Index Key	0001074828
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Entity Common Stock Shares Outstanding		34,433,955
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity File Number	000-30262
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	90-0273142
Entity Address Address Line 1	500 Union Street
Entity Address Address Line 2	Suite 810
Entity Address City Or Town	Seattle
Entity Address Country	US
Entity Address Postal Zip Code	98101
City Area Code	206
Local Phone Number	903-1351

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2021	Sep. 30, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 13,870,183	$ 4,298,179
Total current assets	13,870,183	4,298,179
PROPERTY AND EQUIPMENT, NET	111,244	128,671
OTHER ASSETS
Intangible assets	0	101,114
Other assets	13,767	25,180
Operating lease right of use asset	30,581	129,003
TOTAL ASSETS	14,025,775	4,682,147
CURRENT LIABILITIES:
Accounts payable - trade	399,599	487,810
Accounts payable - related parties	5,347	5,687
Accrued expenses	585,776	401,178
Accrued expenses - related parties	440,239	591,600
Convertible notes payable	5,006,497	3,967,578
Simple Agreements for Future Equity	1,125,000	785,000
Notes payable- PPP loans, current	226,170	0
Current portion of operating lease right of use liability	31,760	108,779
Total current liabilities	7,820,388	6,347,632
NON-CURRENT LIABILITIES:
Notes payable- PPP loans	205,633	226,170
Operating lease right of use liability, net of current portion	0	23,256
Total non-current liabilities	205,633	249,426
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock - $0.001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding at 6/30/2021 and 9/30/2020 respectively	0	0
Common stock - $0.001 par value, 100,000,000 shares authorized, 33,719,669 and 24,804,874 shares issued and outstanding at 6/30/2021 and 9/30/2020, respectively	33,720	24,807
Additional paid in capital	79,693,322	54,023,758
Accumulated deficit	(73,730,093)	(55,966,281)
Total stockholders' deficit	5,999,754	(1,914,911)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	14,025,775	4,682,147
Series C Convertible Preferred Stock
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock - $0.001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding at 6/30/2021 and 9/30/2020 respectively	1,790	1,790
Total stockholders' deficit	1,790	1,790
Series D Convertible Preferred Stock
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock - $0.001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding at 6/30/2021 and 9/30/2020 respectively	1,015	1,015
Total stockholders' deficit	$ 1,015	$ 1,015

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2021	Sep. 30, 2020
STOCKHOLDERS' DEFICIT
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock shares authorized	5,000,000	5,000,000
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	100,000,000	100,000,000
Common stock shares issued	33,719,669	24,804,874
Common stock shares outstanding	33,719,669	24,804,874
Series C Convertible Preferred Stock
STOCKHOLDERS' DEFICIT
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock shares authorized	1,785,715	1,785,715
Preferred stock shares issued	1,785,715	1,785,715
Preferred stock shares outstanding	1,785,715	1,785,715
Series D Convertible Preferred Stock
STOCKHOLDERS' DEFICIT
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock shares authorized	1,016,014	1,016,014
Preferred stock shares issued	1,016,004	1,016,004
Preferred stock shares outstanding	1,016,004	1,016,004

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CONSOLIDATED STATEMENTS OF OPERATIONS
REVENUE	$ 0	$ 0	$ 0	$ 121,939
COST OF SALES	0	0	0	69,726
GROSS PROFIT	0	0	0	52,213
RESEARCH AND DEVELOPMENT EXPENSES	868,584	375,243	3,094,123	1,313,546
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	994,221	634,169	4,934,085	3,177,661
OPERATING LOSS	(1,862,805)	(1,009,412)	(8,028,208)	(4,438,994)
OTHER INCOME (EXPENSE):
Interest expense	(5,228,058)	(1,188,874)	(9,735,604)	(4,170,038)
Other income	0	0	0	65,220
(Loss) on debt settlements	0	(706,800)	0	(706,800)
Total other (expense), net	(5,228,058)	(1,895,674)	(9,735,604)	(4,811,618)
LOSS BEFORE INCOME TAXES	(7,090,863)	(2,905,086)	(17,763,812)	(9,250,612)
Income tax expense	0	0	0	0
NET LOSS	$ (7,090,863)	$ (2,905,086)	$ (17,763,812)	$ (9,250,612)
Basic and diluted loss per share	$ (0.23)	$ (0.12)	$ (0.64)	$ (0.44)
Weighted average shares of common stock outstanding- basic and diluted	31,052,229	23,715,823	27,651,679	20,842,782

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Series C Convertible Preferred Stock	Series D Convertible Preferred Stock
Balance, shares at Sep. 30, 2019		18,366,178			1,785,715	1,016,004
Balance, amount at Sep. 30, 2019	$ (3,297,290)	$ 18,366	$ 39,085,179	$ (42,403,640)	$ 1,790	$ 1,015
Stock compensation expense - employee options	399,897	$ 0	0	0	0	0
Stock option exercise, shares		73,191
Stock option exercise, amount	0	$ 73	(73)	0	0	0
Beneficial conversion feature	330,082	0	330,082	0	0	0
Issuance of warrants to debt holders	168,270	0	168,270	0	0	0
Issuance of warrants for services related to debt offering	160,427	$ 0	160,427	0	0	0
Issuance of common stock for exercise of warrants, shares		28,688
Issuance of common stock for exercise of warrants, amount	0	$ 29	(29)	0	29	0
Net loss	(3,015,013)	$ 0	0	(3,015,013)	$ 0	$ 0
Balance, shares at Dec. 31, 2019		18,468,057			1,785,715	1,016,004
Balance, amount at Dec. 31, 2019	(5,253,627)	$ 18,468	40,143,753	(45,418,653)	$ 1,790	$ 1,015
Balance, shares at Sep. 30, 2019		18,366,178			1,785,715	1,016,004
Balance, amount at Sep. 30, 2019	(3,297,290)	$ 18,366	39,085,179	(42,403,640)	$ 1,790	$ 1,015
Issuance of warrants for services related to debt offering	1,026,339
Net loss	(9,250,612)
Balance, shares at Jun. 30, 2020		23,926,245			1,785,715	1,016,004
Balance, amount at Jun. 30, 2020	416,503	$ 23,929	52,044,021	(51,654,252)	$ 1,790	$ 1,015
Balance, shares at Sep. 30, 2019		18,366,178			1,785,715	1,016,004
Balance, amount at Sep. 30, 2019	(3,297,290)	$ 18,366	39,085,179	(42,403,640)	$ 1,790	$ 1,015
Balance, shares at Sep. 30, 2020		18,366,178			1,785,715	1,016,004
Balance, amount at Sep. 30, 2020	(1,914,911)	$ 18,366	39,085,179	(42,403,640)	$ 1,790	$ 1,015
Balance, shares at Dec. 31, 2019		18,468,057			1,785,715	1,016,004
Balance, amount at Dec. 31, 2019	(5,253,627)	$ 18,468	40,143,753	(45,418,653)	$ 1,790	$ 1,015
Stock compensation expense - employee options	165,829	$ 0	165,829	0	0	0
Issuance of common stock for exercise of warrants, shares		201,271
Issuance of common stock for exercise of warrants, amount	0	$ 201	(201)	0	0	0
Net loss	(3,330,513)	$ 0	0	(3,330,513)	0	0
Conversion of debt offering and accrued interest (Note 7), shares		4,114,800
Conversion of debt offering and accrued interest (Note 7), amount	4,114,800	$ 4,115	4,110,685	0	0	0
Beneficial conversion feature (Note 7)	105,535	0	105,535	0	0	0
Issuance of warrants to debt holders (Note 7)	21,214	0	21,214	0	0	0
Issuance of warrants for services related to debt offering (Note 7)	9,542	$ 0	9,542	0	0	0
Issuance of common stock for services, shares		540,000
Issuance of common stock for services, amount	1,026,000	$ 540	1,025,460	0	$ 0	$ 0
Balance, shares at Mar. 31, 2020		23,324,128			1,785,715	1,016,004
Balance, amount at Mar. 31, 2020	(3,141,220)	$ 23,324	45,581,817	(48,749,166)	$ 1,790	$ 1,015
Stock compensation expense - employee options	135,744	$ 0	135,744	0	0	0
Issuance of common stock for exercise of warrants, shares		125,000
Issuance of common stock for exercise of warrants, amount	55,000	$ 125	54,875	0	0	0
Net loss	(2,905,086)	$ 0	0	(2,905,086)	0	0
Issuance of common stock for services, shares		10,000
Issuance of common stock for services, amount	19,000	$ 10	18,990	0	0	0
Conversion of debt offering and accrued interest (Note 10), shares		467,117
Conversion of debt offering and accrued interest (Note 10), amount	472,195	$ 470	471,725	0	0	0
Beneficial conversion feature (Note 10)	3,330,457	0	3,330,457	0	0	0
Issuance of warrants to debt holders (Note 10)	1,594,043	0	1,594,043	0	0	0
Issuance of warrants for services related to debt offering (Note 10)	856,370	$ 0	856,370	0	$ 0	$ 0
Balance, shares at Jun. 30, 2020		23,926,245			1,785,715	1,016,004
Balance, amount at Jun. 30, 2020	416,503	$ 23,929	52,044,021	(51,654,252)	$ 1,790	$ 1,015
Balance, shares at Sep. 30, 2020		18,366,178			1,785,715	1,016,004
Balance, amount at Sep. 30, 2020	(1,914,911)	$ 18,366	39,085,179	(42,403,640)	$ 1,790	$ 1,015
Stock compensation expense - employee options	175,442	$ 0	175,442	0	0	0
Issuance of common stock for exercise of warrants, shares		3,750
Issuance of common stock for exercise of warrants, amount	4,688	$ 4	4,684	0	0	0
Net loss	(5,299,331)	$ 0	0	(5,299,331)	0	0
Conversion of debt offering and accrued interest (Note 7), shares		561,600
Conversion of debt offering and accrued interest (Note 7), amount	561,600	$ 562	561,038	0	0	0
Issuance of warrant for services to related party	1,811,691	$ 0	1,811,691	0	$ 0	$ 0
Balance, shares at Dec. 31, 2020		25,370,224			1,785,715	1,016,004
Balance, amount at Dec. 31, 2020	(4,660,822)	$ 25,372	56,576,613	(61,265,612)	$ 1,790	$ 1,015
Balance, shares at Sep. 30, 2020		18,366,178			1,785,715	1,016,004
Balance, amount at Sep. 30, 2020	$ (1,914,911)	$ 18,366	39,085,179	(42,403,640)	$ 1,790	$ 1,015
Stock option exercise, shares	2,710,260
Issuance of warrants for services related to debt offering	$ 1,667,281
Net loss	(17,763,812)
Balance, shares at Jun. 30, 2021		33,719,669			1,785,715	1,016,004
Balance, amount at Jun. 30, 2021	5,999,754	$ 33,720	79,693,322	(73,730,093)	$ 1,790	$ 1,015
Balance, shares at Dec. 31, 2020		25,370,224			1,785,715	1,016,004
Balance, amount at Dec. 31, 2020	(4,660,822)	$ 25,372	56,576,613	(61,265,612)	$ 1,790	$ 1,015
Stock compensation expense - employee options	127,407	$ 0	127,407	0	0	0
Issuance of common stock for exercise of warrants, shares		2,579,643
Issuance of common stock for exercise of warrants, amount	648,516	$ 2,578	645,938	0	0	0
Net loss	(5,373,618)	$ 0	0	(5,373,618)	0	0
Conversion of debt offering and accrued interest (Note 7), shares		210,600
Conversion of debt offering and accrued interest (Note 7), amount	210,606	$ 211	210,395	0	0	0
Beneficial conversion feature (Note 7)	9,769,683	0	9,769,683	0	0	0
Issuance of warrants to debt holders (Note 7)	4,439,317	0	4,439,317	0	0	0
Issuance of warrants for services related to debt offering (Note 7)	1,667,281	$ 0	1,667,281	0	0	0
Issuance of common stock for services, shares		97,000
Issuance of common stock for services, amount	202,820	$ 97	202,723	0	0	0
Issuance of warrant for services to related party	382,566	$ 0	382,566	0	$ 0	$ 0
Balance, shares at Mar. 31, 2021		28,257,467			1,785,715	1,016,004
Balance, amount at Mar. 31, 2021	7,413,756	$ 28,258	74,021,923	(66,639,230)	$ 1,790	$ 1,015
Stock compensation expense - employee options	267,665	$ 0	267,665	0	0	0
Issuance of common stock for exercise of warrants, shares		126,867
Issuance of common stock for exercise of warrants, amount	60,000	$ 127	59,873	0	0	0
Net loss	(7,090,863)	$ 0	0	(7,090,863)	0	0
Conversion of debt offering and accrued interest (Note 7), shares		5,318,460
Conversion of debt offering and accrued interest (Note 7), amount	5,325,853	$ 5,318	5,320,535	0	0	0
Issuance of common stock for stock option exercises, shares		16,875
Issuance of common stock for stock option exercises, amount	23,344	$ 17	23,327	0	$ 0	$ 0
Balance, shares at Jun. 30, 2021		33,719,669			1,785,715	1,016,004
Balance, amount at Jun. 30, 2021	$ 5,999,754	$ 33,720	$ 79,693,322	$ (73,730,093)	$ 1,790	$ 1,015

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (17,763,812)	$ (9,250,612)
Adjustments to reconcile net loss to net cash (used in) operating activities
Depreciation and amortization	166,094	164,078
Issuance of capital stock for services and expenses	202,820	1,045,000
Stock based compensation- warrants	2,194,257	0
Stock based compensation- stock option grants	570,514	701,470
Amortization of debt discount to interest expense	9,071,592	3,874,018
Right of use, net	(1,853)	(778)
Loss on sale of assets	0	4,663
Loss (gain) on debt settlement	0	706,800
Changes in operating assets and liabilities:
Accounts receivable	0	63,049
Prepaid expenses	0	6,435
Inventory	0	7,103
Other long-term assets	11,413	(11,414)
Accounts payable - trade and accrued expenses	404,469	24,073
NET CASH (USED IN) OPERATING ACTIVITIES	(5,144,506)	(2,666,115)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of research and development equipment	(47,553)	(13,055)
NET CASH (USED IN) INVESTING ACTIVITIES:	(47,553)	(13,055)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from convertible notes payable	14,209,000	5,639,500
Payments for issuance costs from notes payable	(727,117)	(479,965)
Proceeds from Simple Agreements for Future Equity	340,000	0
Proceeds from note payable - PPP	205,633	226,170
Proceeds from issuance of common stock for stock options exercise	23,344	0
Proceeds from issuance of common stock for warrant exercise	713,203	55,000
NET CASH PROVIDED BY FINANCING ACTIVITIES	14,764,063	5,440,705
NET INCREASE N CASH AND CASH EQUIVALENTS	9,572,004	2,761,535
CASH AND CASH EQUIVALENTS, beginning of period	4,298,179	1,900,836
CASH AND CASH EQUIVALENTS, end of period	13,870,183	4,662,371
Supplemental disclosures of cash flow information:
Interest paid	0	0
Taxes paid	0	1,928
Non-cash investing and financing activities:
Beneficial conversion feature	9,769,683	3,766,074
Issuance of warrants to debt holders	4,439,317	1,783,527
Issuance of warrants for services related to debt offering	1,667,281	1,026,339
Cashless warrant exercise (fair value)	493,601	57,490
Cashless stock options exercise (fair value)	0	18,298
Conversion of debt offering	5,638,275	4,235,436
Conversion of accrued interest	$ 460,185	$ 351,089

ORGANIZATION

ORGANIZATION	9 Months Ended
	Jun. 30, 2021
ORGANIZATION
1. ORGANIZATION	1. ORGANIZATION Know Labs, Inc. (the “Company”) was incorporated under the laws of the State of Nevada in 1998. The Company has authorized 105,000,000 shares of capital stock, of which 100,000,000 are shares of voting common stock, par value $0.001 per share, and 5,000,000 are shares preferred stock, par value $0.001 per share. The Company is focused on the development and commercialization of proprietary technologies which are capable of uniquely identifying and measuring almost any material or analyte using electromagnetic energy to detect, record, identify and measure the unique “signature” of said materials or analytes. The Company’s call these its “Bio-RFID™” technology platform when pertaining to radio and microwave spectroscopy; and “ChromaID™” technology platform when pertaining to optical spectroscopy. ChromaID is the first technology developed and patented by the Company. More recently, the Company has focused upon extensions and new patentable inventions that are derived from and extend beyond our ChromaID technology and intellectual property. The Company calls this new technology platform “Bio-RFID.” The rapid advances made with our Bio-RFID technology in our laboratory have caused us to move quickly into the commercialization phase of our Company as we work to create revenue generating products for the marketplace. Today, the sole focus of the Company is on its Bio-RFID technology, its commercialization and development of related patent assets. On April 30, 2020 the Company incorporated a subsidiary corporation, Particle, Inc. for the purpose of research and development on non-core Company intellectual property. The first research activity, undertaken by a separate Particle team has been on standard threaded light bulbs that have a warm white light that can inactivate germs, including bacteria and viruses. On June 1, 2020, the Company approved and ratified entry into an intercompany Patent License Agreement dated May 21, 2020 with Particle. Pursuant to the Agreement, Particle received an exclusive non-transferrable license to use certain patents and trademarks of the Company, in exchange the Company shall receive: (i) a one-time fee of $250,000 upon a successful financing of Particle, and (ii) a quarterly royalty payment equal to the greater of 5% of the Gross Sales, net of returns, from Particle or $5,000. As of June 30, 2021 the operations of Particle have generated no sales and operations are just commencing. The first product, the Particle bulb can be used in households, businesses and other facilities to inactivate bacteria and viruses. Through internal preliminary testing, Particle personnel has confirmed the bulb’s efficacy in inactivating common germs such as E. coli Staphylococcus In 2010, the Company acquired TransTech Systems, Inc. as an adjunct to the Company’s business. TransTech was a distributor of products for employee and personnel identification and authentication. TransTech historically provided substantially all of the Company’s revenues. The financial results from our TransTech subsidiary had been diminishing as vendors of their products increasingly moved to the Internet and direct sales to their customers. While it did provide our current revenues, it was not central to our current focus as a Company. Moreover, the Company wrote down any goodwill associated with its historic acquisition. TransTech ceased operation on June 30, 2020.

GOING CONCERN

GOING CONCERN	9 Months Ended
	Jun. 30, 2021
GOING CONCERN
2. GOING CONCERN	2. GOING CONCERN The Company anticipates that it will record losses from operations for the foreseeable future. As of June 30, 2021, the Company’s accumulated deficit was $73,730,093. The Company has had limited capital resources. These conditions raise substantial doubt about our ability to continue as a going concern. The audit report prepared by the Company’s independent registered public accounting firm relating to our consolidated financial statements for the year ended September 30, 2020 includes an explanatory paragraph expressing the substantial doubt about the Company’s ability to continue as a going concern. On March 15, 2021, the Company closed private placement for gross proceeds of $14,209,000 in exchange for issuing Subordinated Convertible Notes and 3,552,250 Warrants in a private placement to accredited investors, pursuant to a series of substantially identical Securities Purchase Agreements, Common Stock Warrants, and related documents. The Convertible Notes will be automatically converted to Common Stock at $2.00 per share on the one year anniversary starting on March 15, 2022. The Convertible Notes had an original principal amount of $14,209,000 and bear annual interest of 8%. Both the principal amount and the interest are payable on a payment-in-kind basis in shares of Company’s Common Stock The Company believes that its cash on hand will be sufficient to fund our operations until December 31, 2022.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES ADOPTION OF ACCOUNTING STANDARDS	9 Months Ended
	Jun. 30, 2021
SIGNIFICANT ACCOUNTING POLICIES ADOPTION OF ACCOUNTING STANDARDS
3. SIGNIFICANT ACCOUNTING POLICIES: ADOPTION OF ACCOUNTING STANDARDS	3. SIGNIFICANT ACCOUNTING POLICIES: ADOPTION OF ACCOUNTING STANDARDS Basis of Presentation Principles of Consolidation Cash and Cash Equivalents Equipment Long-Lived Assets Intangible Assets Research and Development Expenses The Company’s current research and development efforts are primarily focused on improving our Bio-RFID technology, extending its capacity and developing new and unique applications for this technology. As part of this effort, the Company conducts on-going laboratory testing to ensure that application methods are compatible with the end-user and regulatory requirements, and that they can be implemented in a cost-effective manner. The Company also is actively involved in identifying new applications. The Company’s current internal team along with outside consultants has considerable experience working with the application of the Company’s technologies and their applications. The Company engages third party experts as required to supplement our internal team. The Company believes that continued development of new and enhanced technologies is essential to our future success. The Company incurred expenses of $3,094,123, $2,033,726 and $1,257,872 for the nine months ended June 30, 2021 and the years ended September 30, 2020 and 2019, respectively, on development activities. Advertising Fair Value Measurements and Financial Instruments Fair Value Measurement and Disclosures Level 1 – Quoted prices in active markets for identical assets and liabilities; Level 2 – Inputs other than level one inputs that are either directly or indirectly observable; and. Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The recorded value of other financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, other current assets, and accounts payable and accrued expenses approximate the fair value of the respective assets and liabilities as of June 30, 2021 and September 30, 2020 are based upon the short-term nature of the assets and liabilities. The Company has a money market account which is considered a level 1 asset. The balance as of June 30, 2021 and September 30, 2020 was $13,619,644 and $4,252,959, respectively. The following table represents a roll-forward of the fair value of the Simple Agreement for Future Equity (“SAFE”) for Particle, our wholly owned subsidiary, which fair value is determined by Level 3 inputs: $ Balance as of October 1, 2019 $ - Proceeds from issuance of SAFE 785,000 Fair value adjustment - Balance as of September 30, 2020 785,000 Proceeds from issuance of SAFE 340,000 Fair value adjustment - Balance as of June 30, 2021 $ 1,125,000 Fair value of the SAFE on issuance was determined to be equal to the proceeds received (see Note 8). There were no transfers among Level 1, Level 2, or Level 3 categories in the periods presented. Derivative Financial Instruments – The Company determined that the conversion features for purposes of bifurcation within its currently outstanding convertible notes payable were immaterial and there was no derivative liability to be recorded as of June 30, 2021 and September 30, 2020. Stock Based Compensation Convertible Securities Net Loss per Share As of June 30, 2020, there were options outstanding for the purchase of 4,895,000 common shares (including unearned stock option grants totaling 2,680,000 shares related to performance targets), warrants for the purchase of 20,663,573 common shares, and 8,108,356 shares of the Company’s common stock issuable upon the conversion of Series C and Series D Convertible Preferred Stock. In addition, the Company currently had 14,659,764 common shares (9,020,264 common shares at the current price of $0.25 per share and 5,639,500 common shares at the current price of $1.00 per share) and are issuable upon conversion of convertible debentures of $7,894,566. All of which could potentially dilute future earnings per share but excluded from the June 30, 2020 calculation of net loss per share because their impact is antidilutive. Comprehensive loss Dividend Policy Use of Estimates Recent Accounting Pronouncements Based on the Company’s review of accounting standard updates issued since the filing of the 2020 Form 10-K, there have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a significant impact on the Company’s consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

FIXED ASSETS

FIXED ASSETS	9 Months Ended
	Jun. 30, 2021
FIXED ASSETS
4. FIXED ASSETS	4. FIXED ASSETS Property and equipment as of June 30, 2021 and September 30, 2020 was comprised of the following: Estimated June 30, September 30, Useful Lives 2021 2020 Machinery and equipment 2-3 years $ 402,827 $ 355,272 Leasehold improvements 5 years 3,612 3,612 Furniture and fixtures 5 years 26,854 26,855 Less: accumulated depreciation (322,049 ) (257,068 ) $ 111,244 $ 128,671 Total depreciation expense was $64,980 and $51,005 for the three months ended June 30, 2021 and 2020, respectively. All equipment is used for selling, general and administrative purposes and accordingly all depreciation is classified in selling, general and administrative expenses.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Jun. 30, 2021
INTANGIBLE ASSETS
5. INTANGIBLE ASSETS	5. INTANGIBLE ASSETS Intangible assets as of June 30, 2021 and September 30, 2020 consisted of the following: Estimated June 30, September 30, Useful Lives 2021 2020 Technology 3 years $ 520,000 $ 520,000 Less: accumulated amortization (520,000 ) (418,886 ) Intangible assets, net $ - $ 101,114 Total amortization expense was $101,114 and $129,999 for the nine months ended June 30, 2021 and 2020, respectively. Merger with RAAI Lighting, Inc. On April 10, 2018, the Company entered into an Agreement and Plan of Merger with 500 Union Corporation, a Delaware corporation and a wholly owned subsidiary of the Company, and RAAI Lighting, Inc., a Delaware corporation. Pursuant to the Merger Agreement, the Company acquired all the outstanding shares of RAAI’s capital stock through a merger of Merger Sub with and into RAAI (the “Merger”), with RAAI surviving the Merger as a wholly owned subsidiary of the Company. The fair value of the intellectual property associated with the assets acquired was $520,000 estimated by using a discounted cash flow approach based on future economic benefits. In summary, the estimate was based on a projected income approach and related discounted cash flows over five years, with applicable risk factors assigned to assumptions in the forecasted results.

LEASES

LEASES	9 Months Ended
	Jun. 30, 2021
LEASES
6. LEASES	6. LEASES The Company has entered into operating leases for office and development facilities. These leases have terms which range from two to three years and include options to renew. These operating leases are listed as separate line items on the Company's June 30, 2021 and September 30, 2020 Consolidated Balance Sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are also listed as separate line items on the Company's June 30, 2021 and September 30, 2020 Consolidated Balance Sheets. Based on the present value of the lease payments for the remaining lease term of the Company's existing leases, the Company recognized right-of-use assets and lease liabilities for operating leases of approximately $250,000 on October 1, 2018. Operating lease right-of-use assets and liabilities commencing after October 1, 2018 are recognized at commencement date based on the present value of lease payments over the lease term. During the nine months ended June 30, 2021 and the year ended September 30, 2020, the Company had two leases expire and recognized the rent payments as an expense in the current period. As of June 30, 2021 and September 30, 2020, total right-of-use assets and operating lease liabilities for remaining long term lease was approximately $32,000 and $132,000, respectively. In the nine months ended June 30, 2021 and 2020, the Company recognized approximately $102,741 and $135,828, respectively in total lease costs for the leases. Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. Information related to the Company's operating right-of-use assets and related lease liabilities as of and for the nine months ended June 30, 2021 was as follows: Cash paid for ROU operating lease liability $104,595 Weighted-average remaining lease term 11 months Weighted-average discount rate 7% The minimum future lease payments as of June 30, 2021 are as follows: Year $ Year ended 6/30/2022 $ 33,983 Imputed interest (2,223 ) Total lease liability $ 31,760

CONVERTIBLE NOTES PAYABLE AND N

CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE	9 Months Ended
	Jun. 30, 2021
CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE
7. CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE	7. CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE Convertible notes payable as of June 30, 2021 and September 30, 2020 consisted of the following: Convertible Promissory Notes with Clayton A. Struve The Company owes Clayton A. Struve $1,071,000 under convertible promissory or OID notes. The Company recorded accrued interest of $77,171 and $71,562 as of June 30, 2021 and September 30, 2020, respectively. On December 23, 2020, the Company signed Amendments to the convertible promissory or OID notes, extending the due dates to March 31, 2021. On April 29, 2021, the Company signed Amendments to the convertible promissory or OID notes, extending the due dates to September 30, 2021. Mr. Struve also invested $1,000,000 in the May 2019 Convertible Debt Offering and such note was converted to common stock in May 2020. Convertible Redeemable Promissory Notes with Ronald P. Erickson and J3E2A2Z On March 16, 2018, the Company entered into a Note and Account Payable Conversion Agreement pursuant to which (a) all $664,233 currently owing under the J3E2A2Z Notes was converted to a Convertible Redeemable Promissory Note in the principal amount of $664,233, and (b) all $519,833 of the J3E2A2Z Account Payable was converted into a Convertible Redeemable Promissory Note in the principal amount of $519,833 together with a warrant to purchase up to 1,039,666 shares of common stock of the Company for a period of five years. The initial exercise price of the warrants described above is $0.50 per share, also subject to certain adjustments. The warrants were valued at $110,545. Because the note is immediately convertible, the warrants and beneficial conversion were expensed as interest. The Company recorded accrued interest of $198,359 and $145,202 as of June 30, 2021 and September 30, 2020, respectively. On December 8, 2020, the Company signed Amendment 4 to the convertible promissory or OID notes, extending the due dates to March 31, 2021. On April 29, 2021, the Company signed Amendment 5 to the convertible promissory or OID notes, extending the due dates to September 30, 2021. Convertible Debt Offering Beginning in 2019, the Company entered into series of debt offerings with similar and consistent terms. The Company issued Subordinated Convertible Notes and Warrants in a private placement to accredited investors, pursuant to a series of substantially identical Securities Purchase Agreements, Common Stock Warrants, and related documents. The notes are convertible into one share of common stock for each dollar invested in a Convertible Note Payable and automatically convert to common stock after one year. The convertible notes contain terms and conditions which are deemed to be a Beneficial Conversion Feature (BCF). Warrants are issued to purchase common stock with exercise prices of $1.20 and $2.40 per share and the number of warrants are equal to 50% of the convertible note balance. The Company compensates the placement agent with a cash fee and warrants. Through December 31, 2020, the Company has raised approximately $24 million through these offerings, of which $14,209,000 and $5,639,500 were raised in the nine months ended June 30, 2021 and 2020. The Convertible Notes issued during the nine months ended June 30, 2021 are initially convertible into 7,104,500 shares of Common Stock, subject to certain adjustments, and the Warrants are initially exercisable for 3,552,250 shares of Common Stock. The fair value of the Warrants issued to debt holders during the nine months ended June 30, 2021 was $4,439,317 on the date of issuance and will be amortized over the one-year term of the Convertible Notes. The fair value of the warrants was recorded as debt discount (with an offset to APIC) and will be amortized over the one-year term of the Convertible Notes. In connection with the debt offering during the nine months ended June 30, 2021, the placement agent for the Convertible Notes and the Warrants received a cash fee of $727,117 and warrants to purchase 492,090 shares of the Company’s common stock, all based on 2-8% of gross proceeds to the Company. The warrants issued for these services had a fair value of $1,667,281 at the date of issuance. The fair value of the warrants was recorded as debt discount (with an offset to APIC) and will be amortized over the one-year term of the Convertible Notes. The $727,117 cash fee was recorded as issuance costs and will be amortized over the one-year term of the related Convertible Notes. During the nine months ended June 30, 2021 and 2020, the Company recorded a debt discount of $9,769,683 and $3,766,074 associated with a beneficial conversion feature on the debt, which is being accreted using the effective interest method over the one-year term of the Convertible Notes. During the nine months ended June 30, 2021, the Company issued 6,091,960 shares of common stock related to the automatic conversion of Convertible Notes and interest from a private placement to accredited investors in 2020. The Convertible Notes and interested were automatically converted to Common Stock at $1.00 per share on the one year anniversary starting on October 17, 2020. During the nine months ended June 30, 2021, amortization related to the debt offerings of $9,071,592 and $3,874,018 of the beneficial conversion feature, warrants issued to debt holders and placement agent was recognized as interest expense in the consolidated statements of operations. Convertible notes payable as of June 30, 2021 and September 30, 2020 are summarized below: June 30, 2021 September 30, 2020 Convertible note- Clayton A. Struve $ 1,071,000 $ 1,071,000 Convertible note- Ronald P. Erickson and affiliates 1,184,066 1,184,066 2019 Convertible notes 4,242,490 4,242,490 2020 Convertible notes 5,639,500 5,639,500 Q2 2021 Convertible notes 14,209,000 - Boustead fee refund (originally booked as contra debt) 50,000 50,000 Less conversions of notes (9,881,990 ) (4,242,490 ) Less debt discount - BCF (6,770,833 ) (2,127,894 ) Less debt discount - warrants (3,076,542 ) (1,025,512 ) Less debt discount - warrants issued for services (1,660,194 ) (823,582 ) $ 5,006,497 $ 3,967,578 Note Payable On April 30, 2020, the Company received $226,170 under the Paycheck Protection Program of the U.S. Small Business Administration’s 7(a) Loan Program pursuant to the Coronavirus, Aid, Relief and Economic Security Act (CARES Act), Pub. Law 116-136, 134 Stat. 281 (2020). As of June 30, 2021 and September 30, 2020, the Company recorded interest expense of $2,088 and $960, respectively. The Company is utilizing the funds in accordance with the legal requirements and expects this loan to be forgiven. Until the loan is legally forgiven, the loan balance will outstanding. The Company expects to start the application for the loan forgiveness during the three months ended September 30, 2021. On February 1, 2021, the Company received $205,633 under the Paycheck Protection Program of the U.S. Small Business Administration’s 7(a) Loan Program pursuant to the Coronavirus, Aid, Relief and Economic Security Act (CARES Act), Pub. Law 116-136, 134 Stat. 281 (2020). As of June 30, 2021, the Company recorded interest expense of $237. The Company is utilizing the funds in accordance with the legal requirements and expects this loan to be forgiven. Until the loan is legally forgiven, the loan balance will be outstanding. The Company expects to start the application for the loan forgiveness during the three months ended September 30, 2021. The Company recorded $205,633 as a long term liability as of June 30, 2021.

SIMPLE AGREEMENTS FOR FUTURE EQ

SIMPLE AGREEMENTS FOR FUTURE EQUITY	9 Months Ended
	Jun. 30, 2021
CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE
8. SIMPLE AGREEMENTS FOR FUTURE EQUITY	8. SIMPLE AGREEMENTS FOR FUTURE EQUITY In July 2020, Particle entered into Simple Agreements for Future Equity (“SAFE”) with twenty two accredited investors pursuant to which Particle received $785,000 in cash in exchange for the providing the investor the right to receive shares of the Particle stock. The Company expects to issue 981,250 shares of the Particle stock that was initially valued at $0.80 per share. The Company paid $47,100 in broker fees which were expensed as business development expenses. In October 2020, Particle entered into Simple Agreements for Future Equity (“SAFE”) with two accredited investors pursuant to which Particle received $55,000 in cash in exchange for the providing the investor the right to receive shares of the Particle stock. The Company expects to issue 68,750 shares of the Particle stock that was initially valued at $0.80 per share. The Company paid $4,125 in broker fees which were expensed as business development expenses. During the three months ended March 31, 2021, Particle entered into Simple Agreements for Future Equity (“SAFE”) with five accredited investors pursuant to which Particle received $340,000 in cash in exchange for the providing the investor the right to receive shares of the Particle stock. The Company expects to issue 68,750 shares of the Particle stock that was initially valued at $0.80 per share. The Company paid $23,660 in broker fees which were expensed as business development expenses. Through June 30, 2021, $1,125,000 has been raised through the sale of SAFE instruments. We expect to issue 1,406,250 shares of the Particle stock that was initially valued at $0.80 per share. The SAFE contained a number of conversion and redemption provisions, including settlement upon liquidity or dissolution events. The final price and share are not known until settlement upon liquidity or dissolution events conditions are achieved. The Company’s ownership interest in Particle will be diluted when the SAFE’s are converted to common stock. The Company elected the fair value option of accounting for the SAFE. The Company is negotiating with the investors to convert the $1,125,000 into equity in Know Labs.

EQUITY

EQUITY	9 Months Ended
	Jun. 30, 2021
EQUITY
9. EQUITY	9. EQUITY Authorized Capital Stock The Company authorized 105,000,000 shares of capital stock, of which 100,000,000 are shares of voting common stock, par value $0.001 per share, and 5,000,000 are shares preferred stock, par value $0.001 per share. As of June 30, 2021, the Company had 33,719,669 shares of common stock issued and outstanding, held by 160 stockholders of record. The number of stockholders, including beneficial owners holding shares through nominee names, is approximately 2,300. Each share of common stock entitles its holder to one vote on each matter submitted to the stockholders for a vote, and no cumulative voting for directors is permitted. Stockholders do not have any preemptive rights to acquire additional securities issued by the Company As of June 30, 2021, there were options outstanding for the purchase of 14,650,120 common shares (including unearned stock option grants totaling 11,775,745 shares related to performance targets), warrants for the purchase of 23,169,587 common shares, and 8,108,356 shares of the Company’s common stock issuable upon the conversion of Series C and Series D Convertible Preferred Stock. In addition, the Company currently has 16,124,764 common shares (9,020,264 common shares at the current price of $0.25 per share and 7,104,500 common shares at the current price of $2.00 per share) reserved and are issuable upon conversion of convertible debentures of $16,464,066. All of which could potentially dilute future earnings per share but are excluded from the June 30, 2021 calculation of net loss per share because their impact is antidilutive. Voting Preferred Stock The Company is authorized to issue up to 5,000,000 shares of preferred stock with a par value of $0.001. Series C and D Preferred Stock and Warrants On August 5, 2016, the Company closed a Series C Preferred Stock and Warrant Purchase Agreement with Clayton A. Struve, an accredited investor for the purchase of $1,250,000 of preferred stock with a conversion price of $0.70 per share. The preferred stock has a yield of 8% and an ownership blocker of 4.99%. In addition, Mr. Struve received a five-year warrant to acquire 1,785,714 shares of common stock at $0.70 per share. On August 14, 2017, the price of the Series C Stock were adjusted to $0.25 per share pursuant to the documents governing such instruments. On June 30, 2021 and September 30, 2020 there are 1,785,715 Series C Preferred shares outstanding. On January 5, 2021, the Company extended the warrant expiration date to August 4, 2023. As of June 30, 2021 and September 30, 2020, the Company has $750,000 of Series D Preferred Stock outstanding with Clayton A. Struve, an accredited investor. On August 14, 2017, the price of the Series D Stock were adjusted to $0.25 per share pursuant to the documents governing such instruments. The Series D Preferred Stock is convertible into shares of common stock at a price of $0.25 per share or by multiplying the number of Series D Preferred Stock shares by the stated value and dividing by the conversion price then in effect, subject to certain diluted events, and has the right to vote the number of shares of common stock the Series D Preferred Stock would be issuable on conversion, subject to a 4.99% blocker. The Preferred Series D has an annual yield of 8% The Series D Preferred Stock is convertible into shares of common stock at a price of $0.25 per share or by multiplying the number of Series D Preferred Stock shares by the stated value and dividing by the conversion price then in effect, subject to certain diluted events, and has the right to vote the number of shares of common stock the Series D Preferred Stock would be issuable on conversion, subject to a 4.99% blocker. The Preferred Series D has an annual yield of 8% if and when dividends are declared. Series F Preferred Stock On August 1, 2018, the Company filed with the State of Nevada a Certificate of Designation establishing the Designations, Preferences, Limitations and Relative Rights of Series F Preferred Stock. The Designation authorized 500 shares of Series F Preferred Stock. The Series F Preferred Stock shall only be issued to the current Board of Directors on the date of the Designation’s filing and is not convertible into common stock. As set forth in the Designation, the Series F Preferred Stock has no rights to dividends or liquidation preference and carries rights to vote 100,000 shares of common stock per share of Series F upon a Trigger Event, as defined in the Designation. A Trigger Event includes certain unsolicited bids, tender offers, proxy contests, and significant share purchases, all as described in the Designation. Unless and until a Trigger Event, the Series F shall have no right to vote. The Series F Preferred Stock shall remain issued and outstanding until the date which is 731 days after the issuance of Series F Preferred Stock (“Explosion Date”), unless a Trigger Event occurs, in which case the Explosion Date shall be extended by 183 days. As of June 30, 2021 and September 30, 2020, there are no Series F shares outstanding. Securities Subject to Price Adjustments In the future, if the company sells its common stock at a price below $0.25 per share, the exercise price of 8,108,356 outstanding shares of Series C and D Preferred Stock that adjust below $0.25 per share pursuant to the documents governing such instruments. In addition, the conversion price of Convertible Notes Payable of $16,464,066 or 16,124,764 common shares (9,020,264 common shares at $0.25 per share and 7,104,500 at $2.40) and the exercise price of additional outstanding warrants to purchase 10,584,381 shares of common stock would adjust below $0.25 per share pursuant to the documents governing such instruments. Warrants totaling 4,599,707 would adjust below $1.20 per share pursuant to the documents governing such instruments. Warrants totaling 4,044,340 would adjust below $2.40 per share pursuant to the documents governing such instruments. Common Stock All of the offerings and sales described below were deemed to be exempt under Rule 506 of Regulation D and/or Section 4(a)(2) of the Securities Act. No advertising or general solicitation was employed in offering the securities, the offerings and sales were made to a limited number of persons, all of whom were accredited investors and transfer was restricted by the company in accordance with the requirements of Regulation D and the Securities Act. All issuances to accredited and non-accredited investors were structured to comply with the requirements of the safe harbor afforded by Rule 506 of Regulation D, including limiting the number of non-accredited investors to no more than 35 investors who have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of an investment in our securities. The following equity issuances occurred during the nine months ended June 30, 2021: The Company issued 6,091,960 shares of common stock related to the automatic conversion of Convertible Notes and interest from a private placement to accredited investors in 2020. The Convertible Notes and interested were automatically converted to Common Stock at $1.00 per share on the one year anniversary starting on October 17, 2020. The Company issued 2,710,260 shares of common stock at an average price of $0.561 per share related to the exercise of warrants. The Company issued 97,000 shares related to services. The shares were valued at the fair market value of $202,820. The Company issued 16,875 shares related to the exercise of stock option grants at $1.38 per share. Warrants to Purchase Common Stock The following warrant transactions occurred during the nine months ended June 30, 2021: The Company issued warrants to Ronald P. Erickson for 2,000,000 shares of common stock. The five year warrant is immediately vested and exercisable on a cash or cashless basis at $1.53 per share and was valued using a Black-Scholes model at $1,811,691. During January 2021, the Company issued warrants to five directors and service providers for 181,610 shares of common stock. The five year warrant is convertible at $2.00 per share and was valued using a Black-Scholes model at $382,566. The Convertible Notes issued during the nine months ended June 30, 2021 are initially convertible into 7,104,500 shares of Common Stock, subject to certain adjustments, and the Warrants are initially exercisable for 3,552,250 shares of Common Stock. In connection with the convertible debt offering during the nine months ended June 30, 2021, the placement agent for the Convertible Notes and the Warrants received a cash fee of $727,117 and warrants to purchase 492,090 shares of the Company’s common stock, all based on 2-8% of gross proceeds to the Company. The warrants issued for these services had a fair value of $1,667,281 at the date of issuance. The fair value of the warrants was recorded as debt discount (with an offset to APIC) and will be amortized over the one-year term of the Convertible Notes. The $727,117 cash fee was recorded as issuance costs and will be amortized over the one-year term of the related Convertible Notes. The Company issued 2,710,260 shares of common stock at an average price of $0.561 per share related to the exercise of warrants. Warrants to exercise 373,855 shares of common stock were forfeited at an average of $1.181 per share. A summary of the warrants outstanding as of June 30, 2021 were as follows: June 30, 2021 Weighted Average Exercise Shares Price Outstanding at beginning of period 20,016,367 $ 0.556 Issued 6,237,335 2.100 Exercised (2,710,260 ) (0.561 ) Forfeited (373,855 ) (1.181 ) Expired - - Outstanding at end of period 23,169,587 $ 0.960 Exerciseable at end of period 23,169,587 The following table summarizes information about warrants outstanding and exercisable as of June 30, 2021: June 30, 2021 Weighted Weighted Weighted Average Average Average Number of Remaining Exercise Shares Exercise Warrants Life ( In Years) Price Exerciseable Price 11,029,381 1.50 $ 0.250 11,029,381 $ 0.250 714,286 0.08 0.700 714,286 0.700 847,742 0.37 1.000 847,742 1.000 6,574,707 3.59 1.20-1.85 6,574,707 1.20-1.85 3,993,471 4.70 2.00-2.40 3,993,471 2.00-2.40 10,000 2.00 4.080 10,000 4.080 23,169,587 3.60 $ 0.960 23,169,587 $ 0.960 The significant weighted average assumptions relating to the valuation of the Company’s warrants issued during the nine months ended June 30, 2021 were as follows: Dividend yield 0% Expected life 3-5 years Expected volatility 140%-181% Risk free interest rate 0.25-0.37% There were vested warrants of 23,169,587 with an aggregate intrinsic value of $63,879,811.

STOCK INCENTIVE PLANS

STOCK INCENTIVE PLANS	9 Months Ended
	Jun. 30, 2021
EQUITY
10. STOCK INCENTIVE PLANS	10. STOCK INCENTIVE PLANS Know Labs, Inc. On January 23, 2019, the Board approved an amendment to its 2011 Stock Incentive Plan increasing the number of shares of common stock reserved under the Incentive Plan from 2,200,000 to 2,500,000 to common shares. On May 22, 2019, the Compensation Committee approved an amendment to its 2011 Stock Incentive Plan increasing the number of shares of common stock reserved under the Incentive Plan from 2,500,000 to 3,000,000 to common shares. On November 23, 2020, the Board of Directors increased the size of the stock available under the Stock Option Plan by 9,750,000 shares. This increase is based on an industry peer group study. Determining Fair Value under ASC 718 The Company records compensation expense associated with stock options and other equity-based compensation using the Black-Scholes-Merton option valuation model for estimating fair value of stock options granted under our plan. The Company amortizes the fair value of stock options on a ratable basis over the requisite service periods, which are generally the vesting periods. The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company estimates the volatility of our common stock based on the historical volatility of its own common stock over the most recent period corresponding with the estimated expected life of the award. The Company bases the risk-free interest rate used in the Black Scholes-Merton option valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term equal to the expected life of the award. The Company has not paid any cash dividends on our common stock and does not anticipate paying any cash dividends in the foreseeable future. Consequently, the Company uses an expected dividend yield of zero in the Black-Scholes-Merton option valuation model and adjusts share-based compensation for changes to the estimate of expected equity award forfeitures based on actual forfeiture experience. The effect of adjusting the forfeiture rate is recognized in the period the forfeiture estimate is changed. Stock Option Activity The Company had the following stock option transactions during the nine months ended June 30, 2021: During the nine months ended June 30, 2021, the Company issued stock option grants to fifteen employees and consultants totaling 9,985,745 shares of common stock at an average price of $1.677 per share. The stock option grants expire in five years. The stock option grants vest when earned based on certain performance criteria or quarterly over 4 years, with nothing earned in the first two quarters. During the nine months ended June 30, 2021, two consultants exercised stock option grants for 20,625 shares at $1.359 per share. During the nine months ended June 30, 2021, an employee forfeited a stock option grant for 120,000 shares at $3.30 per share. There are currently 14,650,120 (including unearned stock option grants totaling 11,775,745 shares related to performance targets) options to purchase common stock at an average exercise price of $1.495 per share outstanding as of June 30, 2021 under the 2011 Stock Incentive Plan. The Company recorded $416,055 and $701,470 of compensation expense, net of related tax effects, relative to stock options for the nine months ended June 30, 2021 and 2020 and in accordance with ASC 718. As of June 30, 2021, there is approximately $1,062,233, net of forfeitures, of total unrecognized costs related to employee granted stock options that are not vested. These costs are expected to be recognized over a period of approximately 3.81 years. Stock option activity for the nine months ended June 30, 2021 and the years ended September 30, 2020 and 2019 were as follows: Weighted Average Options Exercise Price $ Outstanding as of September 30, 2018 2,182,668 $ 1.698 $ 3,706,519 Granted 2,870,000 2.615 7,504,850 Exercised - - - Forfeitures (520,000 ) (3.906 ) (2,031,000 ) Outstanding as of September 30, 2019 4,532,668 2.025 9,180,369 Granted 3,085,000 1.142 3,522,400 Exercised (73,191 ) (0.250 ) (18,298 ) Forfeitures (2,739,477 ) (2.593 ) (7,103,921 ) Outstanding as of September 30, 2020 4,805,000 1.161 5,580,550 Granted 9,985,745 1.677 16,743,590 Exercised (20,625 ) (1.359 ) (28,031 ) Forfeitures (120,000 ) (3.300 ) (396,000 ) Outstanding as of June 30, 2021 14,650,120 $ 1.495 $ 21,900,109 The following table summarizes information about stock options outstanding and exercisable as of June 30, 2021: Weighted Weighted Weighted Average Average Average Range of Number Remaining Life Exercise Price Number Exercise Price Exercise Prices Outstanding In Years Outstanding Exerciseable Exerciseable $ 0.25 230,000 1.96 $ 0.250 158,125 $ 0.250 1.10-1.25 3,074,375 3.40 1.108 410,391 1.104 1.28-1.53 9,480,745 3.58 1.499 913,438 1.307 1.79-3.30 1,865,000 4.81 2.015 88,125 2.118 14,650,120 3.81 $ 1.495 1,570,078 $ 1.300 There were stock options of 14,650,120, including options subject to performance options totaling approximately 11.8 million options, as of June 30, 2021 with an aggregate intrinsic value of $32,629,376. Particle, Inc. On May 21, 2020, Particle approved a 2020 Stock Incentive Plan and reserved 8,000,000 shares under the Plan. The Plan requires vesting annually over four years, with no vesting in the first two quarters. During the nine months ended June 30, 2021, Particle approved a stock option grant to nine employees and consultants totaling 1,900,000 shares at an average of $0.80 per share. The stock option grant vests (i) 33.3% with the first shipment; (ii) 33.3% with $50 million in sales are achieved; and (iii) 33.4% after $200 million in sales are achieved. During the nine months ended June 30, 2021, Particle approved stock option grants to employees totaling 550,000 shares at $0.80 per share. The stock option grants vest annually over four years, with no vesting in the first two quarters. As of June 30, 2021, the company had outstanding stock option grants for 7,200,000 shares. The Company recorded $154,459 and $0 of compensation expense, net of related tax effects, relative to stock options for the nine months ended June 30, 2021 and 2020 and in accordance with ASC 718. As of June 30, 2021, there is approximately $524,717, net of forfeitures, of total unrecognized costs related to employee granted stock options that are not vested. These costs are expected to be recognized over a period of approximately 4.21 years. The following table summarizes information about Particle stock options outstanding and exercisable as of June 30, 2021: Range of Exercise Prices Number Outstanding Weighted Average Remaining Life In Years Weighted Average Exercise Price Number Exerciseable Weighted Average Exercise Price Exerciseable $ 0.10 4,600,000 3.98 $ 0.10 1,000,000 $ 0.10 0.80 2,600,000 4.61 $ 0.80 - - 7,200,000 4.21 $ 0.35 1,000,000 $ 0.10 There were in the money stock options of 1,000,000 shares as of June 30, 2021 with an aggregate intrinsic value of $700,000. There is no active market for Particle, Inc. stock at this time.

OTHER SIGNIFICANT TRANSACTIONS

OTHER SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES	9 Months Ended
	Jun. 30, 2021
OTHER SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES
11. OTHER SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES	11. OTHER SIGNIFICANT TRANSACTIONS AND TRANSACTIONS WITH RELATED PARTIES Transactions with Clayton A. Struve See Notes 7, 9 and 12 for related party transactions with Clayton A. Struve. On January 5, 2021, the Company extended the warrant expiration date to August 4, 2023 with Clayton A. Struve, a major investor in the Company: Warrant No./Class Issue Date No. Warrant Shares Exercise Price Original Expiration Date Amended Expiration Date Clayton Struve Warrant Series C Warrant W98 08-04-2016 1,785,715 $ 0.25 08-04-2021 08-04-2023 Clayton Struve Warrant Series F Warrant F-1 11-14-2016 187,500 $ 0.25 11-13-2021 11-13-2023 Clayton Struve Warrant Series F Warrant F-2 12-19-2016 187,500 $ 0.25 12-18-2021 12-18-2023 On January 28, 2021, Clayton A. Struve exercised warrants on a cashless basis for 889,880 shares of common stock at $0.25 per share, including warrants for 187,500 and 187,500 that were just extended as discussed above. The Company owes Clayton A. Struve $1,071,000 under convertible promissory or OID notes. On April 29, 2021, the Company signed Amendments to the convertible promissory or OID notes, extending the due dates to September 30, 2021. Related Party Transactions with Ronald P. Erickson See Notes 7, 9, 10 and 12 for related party transactions with Ronald P. Erickson. Mr. Erickson and/or entities with which he is affiliated also have accounts payable and accrued liabilities $451,525 and $597,177 of as of June 30, 2021 and September 30, 2020, respectively, related to accrued compensation, accrued interest and expenses. On December 15, 2020, the Company issued a fully vested warrant to Ronald P. Erickson for 2,000,000 shares of common stock. The five year warrant is exercisable for cash or non-cash at $1.53 per share and was valued using a Black-Scholes model at $1,811,691. On December 15, 2020, the Company issued two stock option grants to Ronald P. Erickson, one for 1,865,675 shares and one for 1,865,675 shares at an exercise price of $1.53 per share. The stock option grants expire in five years. The stock option grants vest when earned based on certain performance criteria. On February 9, 2021, Particle approved a stock option grant to Mr. Erickson totaling 500,000 shares at an average of $0.80 per share. The stock option grant vests (i) 33.3% with the first shipment; (ii) 33.3% with $50 million in sales are achieved; and (iii) 33.4% after $200 million in sales are achieved. On April 29, 2021, the Company signed Amendment 5 to the convertible promissory or OID notes with J3E2A2Z, extending the due dates to September 30, 2021. Related Party Transactions with Phillip A. Bosua See Notes 10 and 12 for related party transactions with Phillip A. Bosua. On December 15, 2020, the Company issued two stock option grant to Phillip A. Bosua, one for 2,132,195 shares and one for 2,132,200 shares at an exercise price of $1.53 per share. The stock option grants expire in five years. The stock option grants vest when earned based on certain performance criteria. On February 9, 2021, Particle approved a stock option grant to Mr. Bosua totaling 500,000 shares at an average of $0.80 per share. The stock option grant vests (i) 33.3% with the first shipment; (ii) 33.3% with $50 million in sales are achieved; and (iii) 33.4% after $200 million in sales are achieved. On March 18, 2021, the Company approved a $250,000 bonus for Mr. Bosua. The bonus was recorded in accrued liabilities – related party as of June 30, 2021 and was paid during April 2021. Related Party Transactions with Directors On January 15, 2021, the Company issued 30,000 shares each to three directors shares at an exercise price of $2.00 per share. On January 15, 2021, the Company issued 20,000 warrants to purchase common stock each to three directors shares at $2.00 per share. The warrants expire on January 15, 2026.

COMMITMENTS, CONTINGENCIES AND

COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS	9 Months Ended
	Jun. 30, 2021
COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS
12. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS	12. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS Legal Proceedings The Company may from time to time become a party to various legal proceedings arising in the ordinary course of our business. The Company is currently not a party to any pending legal proceeding that is not ordinary routine litigation incidental to our business. Employment Agreement with Phillip A. Bosua, Chief Executive Officer See the Employment Agreement for Phillip A. Bosua that was disclosed in Form 10-K filed with the SEC on December 29, 2020. Phillip A. Bosua. Employment Agreement with Ronald P. Erickson, Chairman of the Board and Interim Chief Financial Officer See the Employment Agreement for Ronald P. Erickson that was disclosed in Form 10-K filed with the SEC on December 29, 2020. Properties and Operating Leases See the Property Leases that were disclosed in Form 10-K filed with the SEC on December 29, 2020.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Jun. 30, 2021
SEGMENT REPORTING
13. SEGMENT REPORTING	13. SEGMENT REPORTING The management of the Company considers the business to have two operating segments (i) the development of the Bio-RFID™” and “ChromaID™” technologies; (ii) Particle, Inc. technology; and (iii) TransTech, a distributor of products for employee and personnel identification and authentication. TransTech has historically provided substantially all of the Company’s revenues. TransTech closed on June 30, 2020. Particle commenced operations in the three months ended June 30, 2020. The reporting for the three and nine months ended June 30, 2021 and 2020 was as follows (in thousands): Gross Operating Segment Segment Revenue Margin (Loss) Assets Three Months Ended June 30, 2021 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (1,719 ) $ 13,993 Particle, Inc. technology - - (144 ) 33 TransTech distribution business - - - - Total segments $ - $ - $ (1,863 ) $ 14,026 Three Months Ended June 30, 2020 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (932 ) $ 4,894 Particle, Inc. technology - - (75 ) 146 TransTech distribution business - - (2 ) - Total segments $ - $ - $ (1,009 ) $ 5,040 Nine Months Ended June 30, 2021 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (7,088 ) $ 13,993 Particle, Inc. technology - - (940 ) 33 TransTech distribution business - - - - Total segments $ - $ - $ (8,028 ) $ 14,026 Nine Months Ended June 30, 2020 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (4,368 ) $ 4,894 Particle, Inc. technology - - (75 ) 146 TransTech distribution business 122 52 4 - Total segments $ 122 $ 52 $ (4,439 ) $ 5,040 During the nine months ended June 30, 2021 and 2020, the Company incurred non-cash expenses of $12,203,424, and $6,495,251, respectively.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Jun. 30, 2021
SUBSEQUENT EVENTS
14. SUBSEQUENT EVENTS	14. SUBSEQUENT EVENTS The Company evaluated subsequent events, for the purpose of adjustment or disclosure, up through the date the financial statements were issued. Subsequent to June 30, 2021, there were the following material transactions that require disclosure: On July 14, 2021, the Company announced that it had received U.S. Patent No. 11,058,331 that was issued by the United States Patent and Trademark Office and is titled “Analyte Sensor and System with Multiple Detector Elements that can Transmit or Receive.” The patent relates to the technology that allows the implementation of radio frequency scans using different combinations of antennas to improve the detection capabilities of the Bio-RFID sensors in non-invasively measuring and identifying analytes, including glucose. This patent covers how the antennas used by the Bio-RFID technology platform could be arranged, which will be critical for building a variety of medical devices focused on other analytes. On July 26, 2021, the Company issued a warrant to a service provider for 87,900 shares of common stock. The five year warrant is exercisable at $2.40 per share. On July 27, 2021, the Company announced that it had been granted the following three patents: - U.S. Patent No. 11,063,373: Non-invasive analyte sensor and system with decoupled transmit and receive antennas - U.S. Patent No. 11,031,970: Non-invasive analyte sensor and system with decoupled and inefficient transmit and receive antennas - U.S. Patent No. 11,058,317: Non-invasive detection of an analyte using decoupled and inefficient transmit and receive antennas The patents were issued by the United States Patent and Trademark Office. Each of the newly issued patents relates to the unique configuration of the antennas used in Know Labs’ Bio-RFID sensors. This unique arrangement enhances Bio-RFID’s performance and improves its detection capabilities in identifying and measuring a variety of analytes non-invasively. The patents support the Company’s medical diagnostic focus while also signaling potential for additional non-medical applications. These new patents expand Know Labs’ intellectual property portfolio in radio frequency and microwave spectroscopy, further improving its technological position as it readies to launch non-invasive diagnostic devices. On August 2, 2021, an investor exercised a warrant for $500,000 by paying cash of $500,000 and was issued 714,286 shares of the Company’s common stock at $0.70 per share.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES ADOPTION OF ACCOUNTING STANDARDS (Policies)	9 Months Ended
	Jun. 30, 2021
SIGNIFICANT ACCOUNTING POLICIES ADOPTION OF ACCOUNTING STANDARDS
Basis of Presentation	Basis of Presentation
Principles of Consolidation	Principles of Consolidation
Cash and Cash Equivalents	Cash and Cash Equivalents
Equipment	Equipment
Long-Lived Assets	Long-Lived Assets
Intangible Assets	Intangible Assets
Research and Development Expenses	Research and Development Expenses The Company’s current research and development efforts are primarily focused on improving our Bio-RFID technology, extending its capacity and developing new and unique applications for this technology. As part of this effort, the Company conducts on-going laboratory testing to ensure that application methods are compatible with the end-user and regulatory requirements, and that they can be implemented in a cost-effective manner. The Company also is actively involved in identifying new applications. The Company’s current internal team along with outside consultants has considerable experience working with the application of the Company’s technologies and their applications. The Company engages third party experts as required to supplement our internal team. The Company believes that continued development of new and enhanced technologies is essential to our future success. The Company incurred expenses of $3,094,123, $2,033,726 and $1,257,872 for the nine months ended June 30, 2021 and the years ended September 30, 2020 and 2019, respectively, on development activities.
Advertising	Advertising
Fair Value Measurements and Financial Instruments	Fair Value Measurements and Financial Instruments Fair Value Measurement and Disclosures Level 1 – Quoted prices in active markets for identical assets and liabilities; Level 2 – Inputs other than level one inputs that are either directly or indirectly observable; and. Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The recorded value of other financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, other current assets, and accounts payable and accrued expenses approximate the fair value of the respective assets and liabilities as of June 30, 2021 and September 30, 2020 are based upon the short-term nature of the assets and liabilities. The Company has a money market account which is considered a level 1 asset. The balance as of June 30, 2021 and September 30, 2020 was $13,619,644 and $4,252,959, respectively. The following table represents a roll-forward of the fair value of the Simple Agreement for Future Equity (“SAFE”) for Particle, our wholly owned subsidiary, which fair value is determined by Level 3 inputs: $ Balance as of October 1, 2019 $ - Proceeds from issuance of SAFE 785,000 Fair value adjustment - Balance as of September 30, 2020 785,000 Proceeds from issuance of SAFE 340,000 Fair value adjustment - Balance as of June 30, 2021 $ 1,125,000 Fair value of the SAFE on issuance was determined to be equal to the proceeds received (see Note 8). There were no transfers among Level 1, Level 2, or Level 3 categories in the periods presented.
Derivative Financial Instruments	Derivative Financial Instruments – The Company determined that the conversion features for purposes of bifurcation within its currently outstanding convertible notes payable were immaterial and there was no derivative liability to be recorded as of June 30, 2021 and September 30, 2020.
Stock Based Compensation	Stock Based Compensation
Convertible Securities	Convertible Securities
Net Loss per Share	Net Loss per Share As of June 30, 2020, there were options outstanding for the purchase of 4,895,000 common shares (including unearned stock option grants totaling 2,680,000 shares related to performance targets), warrants for the purchase of 20,663,573 common shares, and 8,108,356 shares of the Company’s common stock issuable upon the conversion of Series C and Series D Convertible Preferred Stock. In addition, the Company currently had 14,659,764 common shares (9,020,264 common shares at the current price of $0.25 per share and 5,639,500 common shares at the current price of $1.00 per share) and are issuable upon conversion of convertible debentures of $7,894,566. All of which could potentially dilute future earnings per share but excluded from the June 30, 2020 calculation of net loss per share because their impact is antidilutive.
Comprehensive Loss	Comprehensive loss
Dividend Policy	Dividend Policy
Use of Estimates	Use of Estimates
Recent Accounting Pronouncements	Recent Accounting Pronouncements Based on the Company’s review of accounting standard updates issued since the filing of the 2020 Form 10-K, there have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a significant impact on the Company’s consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES ADOPTION OF ACCOUNTING STANDARDS (Tables)	9 Months Ended
	Jun. 30, 2021
SIGNIFICANT ACCOUNTING POLICIES ADOPTION OF ACCOUNTING STANDARDS
Fair value of the simple agreement for future equity	$ Balance as of October 1, 2019 $ - Proceeds from issuance of SAFE 785,000 Fair value adjustment - Balance as of September 30, 2020 785,000 Proceeds from issuance of SAFE 340,000 Fair value adjustment - Balance as of June 30, 2021 $ 1,125,000

FIXED ASSETS (Tables)

FIXED ASSETS (Tables)	9 Months Ended
	Jun. 30, 2021
FIXED ASSETS
Schedule of Property and equipment	Estimated June 30, September 30, Useful Lives 2021 2020 Machinery and equipment 2-3 years $ 402,827 $ 355,272 Leasehold improvements 5 years 3,612 3,612 Furniture and fixtures 5 years 26,854 26,855 Less: accumulated depreciation (322,049 ) (257,068 ) $ 111,244 $ 128,671

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Jun. 30, 2021
INTANGIBLE ASSETS
Schedule of intangible assets	Estimated June 30, September 30, Useful Lives 2021 2020 Technology 3 years $ 520,000 $ 520,000 Less: accumulated amortization (520,000 ) (418,886 ) Intangible assets, net $ - $ 101,114

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Jun. 30, 2021
LEASES
Summary of minimum future lease payments	Year $ Year ended 6/30/2022 $ 33,983 Imputed interest (2,223 ) Total lease liability $ 31,760

CONVERTIBLE NOTES PAYABLE AND_2

CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE (Tables)	9 Months Ended
	Jun. 30, 2021
CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE
Schedule of convertible notes	June 30, 2021 September 30, 2020 Convertible note- Clayton A. Struve $ 1,071,000 $ 1,071,000 Convertible note- Ronald P. Erickson and affiliates 1,184,066 1,184,066 2019 Convertible notes 4,242,490 4,242,490 2020 Convertible notes 5,639,500 5,639,500 Q2 2021 Convertible notes 14,209,000 - Boustead fee refund (originally booked as contra debt) 50,000 50,000 Less conversions of notes (9,881,990 ) (4,242,490 ) Less debt discount - BCF (6,770,833 ) (2,127,894 ) Less debt discount - warrants (3,076,542 ) (1,025,512 ) Less debt discount - warrants issued for services (1,660,194 ) (823,582 ) $ 5,006,497 $ 3,967,578

EQUITY (Tables)

EQUITY (Tables)	9 Months Ended
	Jun. 30, 2021
EQUITY
Warrant activity	June 30, 2021 Weighted Average Exercise Shares Price Outstanding at beginning of period 20,016,367 $ 0.556 Issued 6,237,335 2.100 Exercised (2,710,260 ) (0.561 ) Forfeited (373,855 ) (1.181 ) Expired - - Outstanding at end of period 23,169,587 $ 0.960 Exerciseable at end of period 23,169,587
Warrants outstanding and exercisable	June 30, 2021 Weighted Weighted Weighted Average Average Average Number of Remaining Exercise Shares Exercise Warrants Life ( In Years) Price Exerciseable Price 11,029,381 1.50 $ 0.250 11,029,381 $ 0.250 714,286 0.08 0.700 714,286 0.700 847,742 0.37 1.000 847,742 1.000 6,574,707 3.59 1.20-1.85 6,574,707 1.20-1.85 3,993,471 4.70 2.00-2.40 3,993,471 2.00-2.40 10,000 2.00 4.080 10,000 4.080 23,169,587 3.60 $ 0.960 23,169,587 $ 0.960
Weighted average assumptions relating to the valuation of the Company's warrants	Dividend yield 0% Expected life 3-5 years Expected volatility 140%-181% Risk free interest rate 0.25-0.37%

STOCK INCENTIVE PLANS (Tables)

STOCK INCENTIVE PLANS (Tables)	9 Months Ended
	Jun. 30, 2021
EQUITY
Stock option activity	Weighted Average Options Exercise Price $ Outstanding as of September 30, 2018 2,182,668 $ 1.698 $ 3,706,519 Granted 2,870,000 2.615 7,504,850 Exercised - - - Forfeitures (520,000 ) (3.906 ) (2,031,000 ) Outstanding as of September 30, 2019 4,532,668 2.025 9,180,369 Granted 3,085,000 1.142 3,522,400 Exercised (73,191 ) (0.250 ) (18,298 ) Forfeitures (2,739,477 ) (2.593 ) (7,103,921 ) Outstanding as of September 30, 2020 4,805,000 1.161 5,580,550 Granted 9,985,745 1.677 16,743,590 Exercised (20,625 ) (1.359 ) (28,031 ) Forfeitures (120,000 ) (3.300 ) (396,000 ) Outstanding as of June 30, 2021 14,650,120 $ 1.495 $ 21,900,109
Stock options outstanding and exercisable	Weighted Weighted Weighted Average Average Average Range of Number Remaining Life Exercise Price Number Exercise Price Exercise Prices Outstanding In Years Outstanding Exerciseable Exerciseable $ 0.25 230,000 1.96 $ 0.250 158,125 $ 0.250 1.10-1.25 3,074,375 3.40 1.108 410,391 1.104 1.28-1.53 9,480,745 3.58 1.499 913,438 1.307 1.79-3.30 1,865,000 4.81 2.015 88,125 2.118 14,650,120 3.81 $ 1.495 1,570,078 $ 1.300
Summarize information about particle stock option and exercisable	Range of Exercise Prices Number Outstanding Weighted Average Remaining Life In Years Weighted Average Exercise Price Number Exerciseable Weighted Average Exercise Price Exerciseable $ 0.10 4,600,000 3.98 $ 0.10 1,000,000 $ 0.10 0.80 2,600,000 4.61 $ 0.80 - - 7,200,000 4.21 $ 0.35 1,000,000 $ 0.10

OTHER SIGNIFICANT TRANSACTION_2

OTHER SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES (Tables)	9 Months Ended
	Jun. 30, 2021
OTHER SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES
Related party transactions	Warrant No./Class Issue Date No. Warrant Shares Exercise Price Original Expiration Date Amended Expiration Date Clayton Struve Warrant Series C Warrant W98 08-04-2016 1,785,715 $ 0.25 08-04-2021 08-04-2023 Clayton Struve Warrant Series F Warrant F-1 11-14-2016 187,500 $ 0.25 11-13-2021 11-13-2023 Clayton Struve Warrant Series F Warrant F-2 12-19-2016 187,500 $ 0.25 12-18-2021 12-18-2023

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Jun. 30, 2021
SEGMENT REPORTING
Segment reporting

ORGANIZATION (Details Narrative

ORGANIZATION (Details Narrative) - USD ($)	Jun. 01, 2020	Jun. 30, 2021	Sep. 30, 2020
ORGANIZATION
Authorized shares of capital common stock		100,000,000	100,000,000
Authorized shares of capital stock, par value		$ 0.001	$ 0.001
Preferred stock shares authorized		5,000,000	5,000,000
Preferred stock share, par value		$ 0.001	$ 0.001
Financing fee	$ 250,000
Royalty payment percentage on gross sales	5.00%
Royalty payment on gross sales	$ 5,000

GOING CONCERN (Details Narrativ

GOING CONCERN (Details Narrative) - USD ($)	Mar. 15, 2021	Jun. 30, 2021	Sep. 30, 2020
GOING CONCERN
Gross proceeds from private placement	$ 14,209,000
Warrants in private placement to accredited investors	3,552,250
Convertible notes converted into common stock, per share	$ 2
Convertible notes original principal amount	$ 14,209,000
Bear annual interest rate	8.00%
Accumulated deficit		$ (73,730,093)	$ (55,966,281)

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES ADOPTION OF ACCOUNTING STANDARDS (Details) - USD ($)	1 Months Ended			3 Months Ended	9 Months Ended		12 Months Ended
	Jun. 30, 2021	Oct. 31, 2020	Jul. 31, 2020	Mar. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2020
Proceeds from issuance of SAFE					$ 340,000	$ 0
Simple Agreement for Future Equity ("SAFE")
Balance, beginning		$ 785,000			785,000	$ 0	$ 0
Proceeds from issuance of SAFE	$ 1,125,000	$ 55,000	$ 785,000	$ 340,000	340,000		785,000
Fair value adjustment					0		0
Balance, ending	$ 1,125,000				$ 1,125,000		$ 785,000

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES ADOPTION OF ACCOUNTING STANDARDS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
FDIC insurance	$ 250,000		$ 250,000
Uninsured deposits	13,620,183		13,620,183
Research and development expense	868,584	$ 375,243	3,094,123	$ 1,313,546	$ 2,033,726	$ 1,257,872
Advertising and marketing costs			240,000	31,000
Money market accounts	$ 13,619,644	$ 4,252,959	$ 13,619,644	$ 4,252,959
Common stock shares issued	33,719,669		33,719,669		24,804,874
Common stock shares outstanding	33,719,669		33,719,669		24,804,874
Common stock shares			16,124,764	14,659,764
Issuable upon conversion of convertible debentures	16,464,066	7,894,566	16,464,066	7,894,566
Unearned stock option grants			32,629,376
Convertible Preferred Stock
Anti-dilutive securities			8,108,356	8,108,356
Warrants
Anti-dilutive securities			23,169,587	20,663,573
Transaction 1
Common stock shares			9,020,264	9,020,264
Common shares current price per share	$ 0.25	$ 0.25	$ 0.25	$ 0.25
Transaction 2
Common stock shares			7,104,500	5,639,500
Common shares current price per share	$ 2	$ 1	$ 2	$ 1
Stock Option 1
Unearned stock option grants			11,775,745	2,680,000
Anti-dilutive securities			14,650,120	4,895,000
Leasehold Improvements
Estimated useful lives of assets			5 years
Minimum
Estimated useful lives of assets			2 years
Maximum
Estimated useful lives of assets			5 years

FIXED ASSETS (Details)

FIXED ASSETS (Details) - USD ($)	Jun. 30, 2021	Sep. 30, 2020
FIXED ASSETS
Machinery and equipment (2-3 years)	$ 402,827	$ 355,272
Leasehold improvements (5 years)	3,612	3,612
Furniture and fixtures (5 years)	26,854	26,855
Less: accumulated depreciation	(322,049)	(257,068)
Property and equipment, net	$ 111,244	$ 128,671

FIXED ASSETS (Details Narrative

FIXED ASSETS (Details Narrative) - USD ($)	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
FIXED ASSETS
Depreciation expense	$ 64,980	$ 51,005

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - Technology - USD ($)	Jun. 30, 2021	Sep. 30, 2020
Technology (3 years)	$ 520,000	$ 520,000
Less: accumulated amortization	(520,000)	(418,886)
Intangible assets, net	$ 0	$ 101,114

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
INTANGIBLE ASSETS
Amortization expense	$ 101,114	$ 129,999

LEASES (Details)

LEASES (Details) - USD ($)	Jun. 30, 2021	Sep. 30, 2020	Oct. 01, 2018
LEASES
Year ended 6/30/2022	$ 33,983
Imputed interest	(2,223)
Total lease liability	$ 31,760	$ 132,000	$ 250,000

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2020	Oct. 01, 2018
LEASES
Right-of-use assets	$ 30,581		$ 129,003	$ 250,000
Total lease liability	31,760		$ 132,000	$ 250,000
Lease cost	102,741	$ 135,828
Cash paid for ROU operating lease liability	$ 104,595
Weighted-average remaining lease term	11 years
Weighted-average discount rate	7.00%

CONVERTIBLE NOTES PAYABLE AND_3

CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE (Details) - USD ($)	Jun. 30, 2021	Sep. 30, 2020
less conversions of notes	$ (9,881,990)	$ (4,242,490)
less debt discount - BCF	(6,770,833)	(2,127,894)
less debt discount - warrants	(3,076,542)	(1,025,512)
less debt discount - warrants issued for services	(1,660,194)	(823,582)
Convertible notes, net	5,006,497	3,967,578
Convertible Note - Clayton A. Struve
Convertible notes, gross	1,071,000	1,071,000
Convertible Note - Ronald P. Erickson and Affiliates
Convertible notes, gross	1,184,066	1,184,066
2019 Convertible Notes
Convertible notes, gross	4,242,490	4,242,490
2020 Convertible Notes
Convertible notes, gross	5,639,500	5,639,500
Q2 2021 Convertible Notes
Convertible notes, gross	14,209,000	0
Bousted Fee Refund (Originally Booked as Contra Debt)
Convertible notes, gross	$ 50,000	$ 50,000

CONVERTIBLE NOTES PAYABLE AND_4

CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE (Details Narrative) - USD ($)	Feb. 02, 2021	Dec. 31, 2020	Apr. 30, 2020	May 31, 2019	Mar. 16, 2018	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2020
Interest expense						$ 5,228,058	$ 1,188,874	$ 9,735,604	$ 4,170,038
Long term liability						$ 205,633		205,633		$ 249,426
Fund raised by convertible debt offerings								14,209,000	5,639,500
Issuance costs of debt								$ 727,117	$ 479,965
Common stock issued related to conversion of convertible notes and interest						16,464,066	7,894,566	16,464,066	7,894,566
Convertible Note - Clayton A. Struve
Accrued interest						$ 77,171		$ 77,171		71,562
Convertible promissory or OID notes						1,071,000		1,071,000
Convertible debt offering invested amount				$ 1,000,000
Convertible Note - Ronald P. Erickson and Affiliates
Accrued interest						$ 198,359		$ 198,359		$ 145,202
Warrant to purchase common stock shares					1,039,666
Exercise price of warrants					$ 0.50
Fair value of warrants					$ 110,545
Convertible Debt Offering
Warrant to purchase common stock shares						492,090		492,090
Fair value of warrants								$ 4,439,317
Beneficial conversion feature, warrants issued to debt holders and placement agent								3,874,018
Warrants to purchase common stock equal to percentage rate									50.00%
Fund raised by convertible debt offerings		$ 24,000,000						$ 14,209,000	$ 5,639,500
Common stock convertible subject to certain adjustments								7,104,500
Warrants exercisable for shares of common stock								3,552,250
Proceeds from convertible notes and warrants								$ 727,117
Warrants issued for services fair value								1,667,281
Issuance costs of debt								727,117
Debt discount beneficial conversion feature								$ 9,769,683	3,766,074
Common stock issued related to conversion of convertible notes and interest						6,091,960		6,091,960
Common stock conversion price per share						$ 1		$ 1
Amortization related to debt offerings								$ 9,071,592
Convertible Debt Offering | Minimum
Exercise price of warrants						1.20		$ 1.20
Gross proceeds percentage by warrant to purchase common stock								2.00%
Convertible Debt Offering | Maximum
Exercise price of warrants						$ 2.40		$ 2.40
Gross proceeds percentage by warrant to purchase common stock								8.00%
Convertible Note - J3E2A2Z Notes
Convertible redeemable promissory note amount					664,233
Convertible redeemable promissory note principal amount					664,233
Convertible Note - J3E2A2Z Account Payable
Convertible redeemable promissory note amount					519,833
Convertible redeemable promissory note principal amount					$ 519,833
Note Payable
Proceeds from paycheck protection program loan	$ 205,633		$ 226,170
Interest expense	$ 237							$ 2,088	$ 960
Long term liability						$ 205,633		$ 205,633

SIMPLE AGREEMENTS FOR FUTURE _2

SIMPLE AGREEMENTS FOR FUTURE EQUITY (Details Narrative)	1 Months Ended			3 Months Ended	9 Months Ended		12 Months Ended
	Jun. 30, 2021USD ($)$ / sharesshares	Oct. 31, 2020USD ($)integer$ / sharesshares	Jul. 31, 2020USD ($)integer$ / sharesshares	Mar. 31, 2021USD ($)integer$ / sharesshares	Jun. 30, 2021USD ($)$ / sharesshares	Jun. 30, 2020USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)
Proceeds from issuance of SAFE					$ 340,000	$ 0
Simple Agreement for Future Equity ("SAFE")
Proceeds from issuance of SAFE	$ 1,125,000	$ 55,000	$ 785,000	$ 340,000	$ 340,000		$ 785,000
Shares issued | shares	1,406,250	68,750	981,250	68,750	1,406,250
Shares issued price per share | $ / shares	$ 0.80	$ 0.80	$ 0.80	$ 0.80	$ 0.80
Broker fees		$ 4,125	$ 47,100	$ 23,660
Conversion of fund raised converted into equity	$ 1,125,000
Number of accredited investors | integer		2	22	5
Simple agreements for future equity	$ 1,125,000				$ 1,125,000		$ 785,000	$ 0

EQUITY (Details)

EQUITY (Details)	9 Months Ended
	Jun. 30, 2021$ / sharesshares
Shares
Outstanding at beginning of period | shares	20,016,367
Issued | shares	6,237,335
Exercised | shares	2,710,260
Forfeited | shares	373,855
Outstanding at end of period | shares	23,169,587
Exercisable at end of period | shares	23,169,587
Weighted Average Exercise Price
Outstanding at beginning of period | $ / shares	$ 0.556
Issued | $ / shares	2.100
Exercised | $ / shares	0.561
Forfeited | $ / shares	1.181
Expired | $ / shares	0
Outstanding at end of period | $ / shares	$ 0.960

EQUITY (Details 1)

EQUITY (Details 1)	9 Months Ended
	Jun. 30, 2021$ / sharesshares
Number of warrants | shares	23,169,587
Weighted average remaining life (years)	3 years 7 months 6 days
Weighted average exercise price, outstanding	$ 0.960
Shares exercisable | shares	23,169,587
Weighted average exercise price, exercisable	$ 0.960
Warrant One
Number of warrants | shares	11,029,381
Weighted average remaining life (years)	1 year 6 months
Weighted average exercise price, outstanding	$ 0.250
Shares exercisable | shares	11,029,381
Weighted average exercise price, exercisable	$ 0.250
Warrant Two
Number of warrants | shares	714,286
Weighted average remaining life (years)	29 days
Weighted average exercise price, outstanding	$ 0.700
Shares exercisable | shares	714,286
Weighted average exercise price, exercisable	$ 0.700
Warrant Three
Number of warrants | shares	847,742
Weighted average remaining life (years)	4 months 13 days
Weighted average exercise price, outstanding	$ 1
Shares exercisable | shares	847,742
Weighted average exercise price, exercisable	$ 1
Warrant Four
Number of warrants | shares	6,574,707
Weighted average remaining life (years)	3 years 7 months 2 days
Shares exercisable | shares	6,574,707
Warrant Four | Minimum
Weighted average exercise price, outstanding	$ 1.20
Weighted average exercise price, exercisable	1.20
Warrant Four | Maximum
Weighted average exercise price, outstanding	1.85
Weighted average exercise price, exercisable	$ 1.85
Warrant Five
Number of warrants | shares	3,993,471
Weighted average remaining life (years)	4 years 8 months 12 days
Shares exercisable | shares	3,993,471
Warrant Five | Minimum
Weighted average exercise price, outstanding	$ 2
Weighted average exercise price, exercisable	2
Warrant Five | Maximum
Weighted average exercise price, outstanding	2.40
Weighted average exercise price, exercisable	$ 2.40
Warrant Six
Number of warrants | shares	10,000
Weighted average remaining life (years)	2 years
Weighted average exercise price, outstanding	$ 4.080
Shares exercisable | shares	10,000
Weighted average exercise price, exercisable	$ 4.080

EQUITY (Details 2)

EQUITY (Details 2) - Warrants	9 Months Ended
	Jun. 30, 2021
Dividend yield	0.00%
Expected volatility, minimum	140.00%
Expected volatility, maximum	181.00%
Minimum
Expected life	3 years
Risk free interest rate	0.25%
Maximum
Expected life	5 years
Risk free interest rate	0.37%

EQUITY (Details Narrative)

EQUITY (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Capital stock authorized	105,000,000
Common stock par value	$ 0.001		$ 0.001
Preferred stock shares authorized	5,000,000		5,000,000
Preferred stock par value	$ 0.001		$ 0.001
Common stock shares issued	33,719,669		24,804,874
Common stock shares outstanding	33,719,669		24,804,874
Warrants vested	23,440,456
Intrinsic value	$ 52,105,394	$ 52,105,394	$ 5,580,550	$ 9,180,369	$ 3,706,519
Options to purchase common stock share	14,650,120
Unearned stock option grants	11,775,745
Warrant issued to common stock	23,169,587
Conversion of convertible debentures	$ 16,464,066
Coomon shares	16,124,764
Series C Convertible Preferred Stock
Preferred stock shares authorized	1,785,715		1,785,715
Preferred stock par value	$ 0.001		$ 0.001
Conversion of stock	8,108,356
Series D Convertible Preferred Stock
Preferred stock shares authorized	1,016,014		1,016,014
Preferred stock par value	$ 0.001		$ 0.001
Conversion of stock	8,108,356
Stock at 0.25
Coomon shares	9,020,264
Sahre price	$ 0.25
Stock at 2.00
Coomon shares	7,104,500
Sahre price	$ 2

STOCK INCENTIVE PLANS (Details)

STOCK INCENTIVE PLANS (Details) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Aggregate Intrinsic Value
Outstanding at beginning of period	$ 5,580,550	$ 9,180,369	$ 3,706,519
Granted	16,743,590	3,522,400	7,504,850
Exercised	28,031	18,298	0
Forfeitures	396,000	7,103,921	2,031,000
Outstanding at end of period	$ 52,105,394	$ 5,580,550	$ 9,180,369
Shares:
Outstanding at beginning of period	20,016,367
Shares granted	6,237,335
Shares exercised	2,710,260
Shares forfeited	373,855
Outstanding at end of period	23,169,587	20,016,367
Weighted Average Exercise Price:
Outstanding at beginning of period	$ 0.556
Weighted average exercise price issued	2.100
Outstanding at end of period	$ 0.960	$ 0.556
Stock Option Activity
Shares:
Outstanding at beginning of period	4,805,000	4,532,668	2,182,668
Shares granted	9,985,745	3,085,000	2,870,000
Shares exercised	20,625	73,191
Shares forfeited	120,000	2,739,477	520,000
Outstanding at end of period	14,650,120	4,805,000	4,532,668
Weighted Average Exercise Price:
Outstanding at beginning of period	$ 1.161	$ 2.025	$ 1.698
Weighted average exercise price issued	1.677	1.142	2.615
Weighted average exercise price exercised	(1.359)	(0.250)	0
Weighted average exercise price forfeited	(3.300)	(2.593)	(3.906)
Outstanding at end of period	$ 1.495	$ 1.161	$ 2.025

STOCK INCENTIVE PLANS (Details

STOCK INCENTIVE PLANS (Details 1) - $ / shares	9 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	May 21, 2020
Number of outstanding stock options	23,169,587
Weighted average remaining life (years)	3 years 7 months 6 days
Weighted average exercise price outstanding	$ 0.960	$ 0.974	$ 0.556
Weighted average exercise price exerciseable	$ 0.960
Number exercisable	23,169,587
Particle, Inc.
Number of outstanding stock options	7,200,000			8,000,000
Weighted average remaining life (years)	4 years 2 months 15 days
Weighted average exercise price outstanding	$ 0.35
Weighted average exercise price exerciseable	$ 0.10
Number exercisable	1,000,000
Minimum | Stock Option 4
Range of exercise prices	$ 1.79
Minimum | Stock Option 3
Range of exercise prices	1.28
Maximum | Stock Option 4
Range of exercise prices	3.30
Maximum | Stock Option 3
Range of exercise prices	1.53
Stock Option 1
Range of exercise prices	$ 0.25
Number of outstanding stock options	230,000
Weighted average remaining life (years)	1 year 11 months 15 days
Weighted average exercise price outstanding	$ 0.250
Weighted average exercise price exerciseable	$ 0.250
Number exercisable	158,125
Stock Option 2
Number of outstanding stock options	3,074,375
Weighted average remaining life (years)	3 years 4 months 24 days
Weighted average exercise price outstanding	$ 1.108
Weighted average exercise price exerciseable	$ 1.104
Number exercisable	410,391
Stock Option 2 | Minimum
Range of exercise prices	$ 1.10
Stock Option 2 | Maximum
Range of exercise prices	1.25
Stock Option 1 | Particle, Inc.
Range of exercise prices	$ 0.10
Number of outstanding stock options	4,600,000
Weighted average remaining life (years)	3 years 11 months 23 days
Weighted average exercise price outstanding	$ 0.10
Weighted average exercise price exerciseable	$ 0.10
Number exercisable	1,000,000
Stock Option 2 | Particle, Inc.
Range of exercise prices	$ 0.80
Number of outstanding stock options	2,600,000
Weighted average remaining life (years)	4 years 7 months 9 days
Weighted average exercise price outstanding	$ 0.80
Weighted average exercise price exerciseable	$ 0
Stock Option 3
Number of outstanding stock options	9,480,745
Weighted average remaining life (years)	3 years 6 months 29 days
Weighted average exercise price outstanding	$ 1.499
Weighted average exercise price exerciseable	$ 1.307
Number exercisable	913,438
Stock Option 4
Number of outstanding stock options	1,865,000
Weighted average remaining life (years)	4 years 9 months 21 days
Weighted average exercise price outstanding	$ 2.015
Weighted average exercise price exerciseable	$ 2.118
Number exercisable	88,125
Stock Options
Number of outstanding stock options	14,650,120
Weighted average remaining life (years)	3 years 9 months 21 days
Weighted average exercise price outstanding	$ 1.495
Weighted average exercise price exerciseable	$ 1.300
Number exercisable	1,570,078

STOCK INCENTIVE PLANS (Detail_2

STOCK INCENTIVE PLANS (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	May 21, 2020	Jun. 30, 2021	Jun. 30, 2020	Nov. 23, 2020	May 22, 2019	Jan. 23, 2019
Options to purchase common stock		23,169,587
Unearned stock option grants		11,775,745
Compensation expense		$ 416,055	$ 701,470
Unrecognized compensation costs		$ 1,062,233
Period for recognition		3 years 9 months 21 days
Stock options granted		32,629,376
Average exercise price		$ 0.960
Stock Option | Employees
Stock options granted		120,000
Average exercise price		$ 3.30
Two Consultants | Stock Option
Stock options granted		20,625
Average exercise price		$ 1.359
Fifteen Employees And Consultants | Stock Option
Period for recognition		5 years
Stock options granted		9,985,745
Average exercise price		$ 1.677
Particle, Inc.
Options to purchase common stock	8,000,000	7,200,000
Compensation expense		$ 154,459	$ 0
Unrecognized compensation costs		$ 524,717
Period for recognition	4 years	4 years 2 months 15 days
Stock options granted		1,000,000
Aggregate intrinsic value		$ 700,000
2011 Stock Incentive Plan
Options to purchase common stock		14,650,120		9,750,000	3,000,000	2,500,000
Unearned stock option grants		11,775,745
Average exercise price		$ 1.495

OTHER SIGNIFICANT TRANSACTION_3

OTHER SIGNIFICANT TRANSACTIONS AND TRANSACTIONS WITH RELATED PARTIES (Details) - $ / shares	6 Months Ended
	Mar. 31, 2021	Jun. 30, 2021
Clayton Struve Warrant: Series C Warrant W98
Issue date	08-04-2016
Number of warrant shares		1,785,715
Exercise price		$ 0.25
Original expiration date	08-04-2021
Amended expiration date	08-04-2023
Clayton Struve Warrant: Series F Warrant F-1
Issue date	11-14-2016
Number of warrant shares		187,500
Exercise price		$ 0.25
Original expiration date	11-13-2021
Amended expiration date	11-13-2023
Clayton Struve Warrant: Series F Warrant F-2
Issue date	12-19-2016
Number of warrant shares		187,500
Exercise price		$ 0.25
Original expiration date	12-18-2021

OTHER SIGNIFICANT TRANSACTION_4

OTHER SIGNIFICANT TRANSACTIONS AND TRANSACTIONS WITH RELATED PARTIES (Details narrative) - USD ($)	Feb. 09, 2021	Dec. 15, 2020	Jan. 28, 2021	Jun. 30, 2021	Jan. 15, 2021	Sep. 30, 2020
Warrant issued to common stock				23,169,587
Option granted				32,629,376
Phillip A. Bosua [Member]
Exercise price	$ 0.80	$ 1.53
Option granted	500,000
Accrued liabilities related party				$ 250,000
Phillip A. Bosua [Member] | Tranche Two [Member]
Sales achieved upto	$ 200,000,000
Phillip A. Bosua [Member] | Tranche One [Member]
Sales achieved upto	$ 50,000,000
Phillip A. Bosua [Member] | Stock Option 2
Exercise price		$ 1.53
Option granted		2,132,200
Term period		5 years
Phillip A. Bosua [Member] | Stock Option 1
Exercise price		$ 1.53
Option granted		2,132,195
Term period		5 years
Ronald P. Erickson [Member]
Warrant issued to common stock		2,000,000
Exercise price	$ 0.80	$ 1.53	$ 0.25
Option granted	500,000
Term period		5 years
Accounts payable and accrued liabilities				451,525		$ 597,177
Ronald P. Erickson [Member] | Tranche Two [Member]
Sales achieved upto	$ 200,000,000
Ronald P. Erickson [Member] | Tranche One [Member]
Sales achieved upto	$ 50,000,000
Ronald P. Erickson [Member] | Stock Option 2
Exercise price		$ 1.53
Option granted		1,865,675
Term period		5 years
Ronald P. Erickson [Member] | Stock Option 1
Exercise price		$ 1.53
Option granted		1,865,675
Term period		5 years
Clayton Struve Warrant [Member]
Exercise price			$ 0.25
Convertible promissory notes				$ 1,071,000
Stock exercised			$ 889,880
Three Directors [Member]
Warrant issued to common stock		2,000,000			20,000
Exercise price					$ 2
Stock issued					30,000

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue	$ 0	$ 0	$ 0	$ 122,000
Gross margin	0	0	0	52,000
Net (loss)	(1,863,000)	(1,009,000)	(8,028,000)	(4,439,000)
Segment assets	14,026,000	5,040,000	14,026,000	5,040,000
Development of the Bio-RFID and ChromaID Technologies
Revenue	0	0		0
Gross margin	0	0	0	0
Net (loss)	(1,719,000)	(932,000)	(7,088,000)	(4,368,000)
Segment assets	13,993,000	4,894,000	13,993,000	4,894,000
Particle, Inc. Technology
Revenue	0	0	0	0
Gross margin	0	0	0	0
Net (loss)	(144,000)	(75,000)	(940,000)	(75,000)
Segment assets	33,000	146,000	33,000	146,000
TransTech Distribution Business
Revenue	0	0		122,000
Gross margin	0	0	0	52,000
Net (loss)	0	(2,000)	0	4,000
Segment assets	$ 0	$ 0	$ 0	$ 0

SEGMENT REPORTING (Details Narr

SEGMENT REPORTING (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
SEGMENT REPORTING
Non-cash expenses	$ 12,203,424	$ 6,495,251

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - Warrant [Member] - USD ($)	Aug. 02, 2021	Jul. 26, 2021
Stock issued	714,286	87,900
Exercise price	$ 0.70	$ 2.40
Term period		5 years
Stock exercised	$ 500,000