Know Labs (KNWN) 10-K 21 Dec 21 2021 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Sep. 30, 2021	Dec. 17, 2021	Mar. 31, 2021
Cover [Abstract]
Entity Registrant Name	KNOW LABS, INC.
Entity Central Index Key	0001074828
Document Type	10-K
Amendment Flag	false
Entity Voluntary Filers	No
Current Fiscal Year End Date	--09-30
Entity Well Known Seasoned Issuer	No
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2021
Entity Common Stock Shares Outstanding		35,969,912
Entity Public Float			$ 64,103,310
Document Annual Report	true
Document Transition Report	false
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
Entity Interactive Data Current	Yes
Entity Ex Transition Period	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2021	Sep. 30, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 12,258,218	$ 4,298,179
Total current assets	12,258,218	4,298,179
PROPERTY AND EQUIPMENT, NET	328,504	128,671
OTHER ASSETS
Intangible assets	0	101,114
Other assets	13,767	25,180
Operating lease right of use asset	289,002	129,003
TOTAL ASSETS	12,889,491	4,682,147
CURRENT LIABILITIES:
Accounts payable - trade	419,093	493,497
Accrued expenses	893,137	401,178
Accrued expenses - related parties	421,599	591,600
Convertible notes payable, net	9,191,155	3,967,578
Simple Agreements for Future Equity	0	785,000
Notes payable- PPP loans, current	431,803	0
Current portion of operating lease right of use liability	112,371	108,779
Total current liabilities	11,469,158	6,347,632
NON-CURRENT LIABILITIES:
Notes payable- PPP loans	0	226,170
Operating lease right of use liability, net of current portion	178,170	23,256
Total non-current liabilities	178,170	249,426
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock - $0.001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding at 9/30/2021 and 9/30/2020 respectively	0	0
Common stock - $0.001 par value, 100,000,000 shares authorized, 35,166,551 and 24,804,874 shares issued and outstanding at 9/30/2021 and 9/30/2020, respectively	35,168	24,807
Additional paid in capital	82,530,684	54,023,758
Accumulated deficit	(81,326,494)	(55,966,281)
Total stockholders' deficit	1,242,163	(1,914,911)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	12,889,491	4,682,147
Series C Convertible Preferred Stock [Member]
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock - $0.001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding at 9/30/2021 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 9/30/2021 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	Sep. 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	35,166,551	24,804,874
Common stock shares outstanding	35,166,551	24,804,874
Series C Convertible Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock shares authorized	1,785,715	1,785,714
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 ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CONSOLIDATED STATEMENTS OF OPERATIONS
REVENUE	$ 0	$ 121,939
COST OF SALES	0	69,726
GROSS PROFIT	0	52,213
RESEARCH AND DEVELOPMENT EXPENSES	3,969,972	2,033,726
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	6,476,176	4,844,415
OPERATING LOSS	(10,446,148)	(6,825,928)
OTHER INCOME (EXPENSE):
Interest expense	(14,914,065)	(6,094,682)
Other income	0	65,769
(Loss) on debt settlements	0	(707,800)
Total other (expense), net	(14,914,065)	(6,736,713)
LOSS BEFORE INCOME TAXES	(25,360,213)	(13,562,641)
Income tax expense	0	0
NET LOSS	$ (25,360,213)	$ (13,562,641)
Basic and diluted loss per share	$ (0.86)	$ (0.62)
Weighted average shares of common stock outstanding- basic and diluted	29,370,596	21,791,058

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 [Member]	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	1,702,085	$ 0	1,702,085	0	0	0
Stock option exercise, shares		73,191
Stock option exercise, amount	$ 0	$ 73	$ (73)	0	0	0
Conversion of debt offering and accrued interest (Note 7), shares	975,326	4,581,917	975,326
Conversion of debt offering and accrued interest (Note 7), amount	$ 4,596,537	$ 4,585	$ 4,591,952	0	0	0
Beneficial conversion feature (Note 7)	3,766,074	0	3,766,074	0	0	0
Issuance of warrants to debt holders (Note 7)	1,824,998	$ 0	1,824,998	0	0	0
Issuance of common stock for services, shares		550,000
Issuance of common stock for services, amount	1,045,000	$ 550	1,044,450	0	0
Issuance of common stock for exercise of warrants, shares		733,588
Issuance of common stock for exercise of warrants, amount	85,000	$ 733	84,267	0	0	0
Issuance of shares related to Settlement and Mutual Release and Subscription Agreements, shares		500,000
Issuance of shares related to Settlement and Mutual Release and Subscription Agreements, amount	950,000	$ 500	949,500	0	0	0
Net loss	(13,562,641)	$ 0	0	(13,562,641)	$ 0	$ 0
Balance, shares at Sep. 30, 2020		24,804,874			1,785,715	1,016,004
Balance, amount at Sep. 30, 2020	(1,914,911)	$ 24,807	54,023,758	(55,966,281)	$ 1,790	$ 1,015
Stock compensation expense - employee options	1,028,522	$ 0	1,028,522	0	0	0
Conversion of debt offering and accrued interest (Note 7), shares		6,090,660
Conversion of debt offering and accrued interest (Note 7), amount	6,098,058	$ 6,091	6,091,968	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 common stock for services, shares		97,000
Issuance of common stock for services, amount	202,820	$ 97	202,723	0	0	0
Issuance of common stock for exercise of warrants, shares		3,676,542
Issuance of common stock for exercise of warrants, amount	1,313,203	$ 3,675	1,309,528	0	0	0
Net loss	(25,360,213)	0	0	(25,360,213)	0	0
Issuance of warrant for services	2,547,436	0	2,547,436	0	0	0
Issuance of warrants for services related to debt offering (Note 7), amount	1,667,281	$ 0	1,667,281	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
Issuance of shares and warrants for conversion of Simple Agreements for Future Equity, shares		480,600
Issuance of shares and warrants for conversion of Simple Agreements for Future Equity, amount	1,427,622	$ 481	1,427,141	0	$ 0	$ 0
Balance, shares at Sep. 30, 2021		35,166,551			1,785,715	1,016,004
Balance, amount at Sep. 30, 2021	$ 1,242,163	$ 35,168	$ 82,530,684	$ (81,326,494)	$ 1,790	$ 1,015

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
NET LOSS	$ (25,360,213)	$ (13,562,641)
Adjustments to reconcile net loss to net cash (used in) operating activities
Depreciation and amortization	200,807	242,987
Issuance of capital stock for services and expenses	202,820	1,045,000
Stock based compensation - warrants	2,547,436	0
Stock based compensation - stock option grants	1,028,522	1,702,085
Amortization of debt discount to interest expense	13,722,672	5,662,690
Right of use, net	(1,493)	422
Loss on sale of assets	0	4,663
(Gain) on debt settlement	0	(117,200)
Loss related to issuance of shares for debt settlement	0	825,000
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	797,337	218,018
NET CASH (USED IN) OPERATING ACTIVITIES	(6,850,699)	(3,913,803)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of research and development equipment	(299,525)	(70,134)
NET CASH (USED IN) BY INVESTING ACTIVITIES:	(299,525)	(70,134)
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	785,000
Repayment from Simple Agreements for Future Equity	(253,800)	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	1,313,203	85,575
Proeeds from issuance of shares related to debt settlement	0	125,000
NET CASH PROVIDED BY FINANCING ACTIVITIES	15,110,263	6,381,280
NET INCREASE IN CASH AND CASH EQUIVALENTS	7,960,039	2,397,343
CASH AND CASH EQUIVALENTS, beginning of period	4,298,179	1,900,836
CASH AND CASH EQUIVALENTS, end of period	12,258,218	4,298,179
Supplemental disclosures of cash flow information:
Interest paid	18,800	0
Taxes paid	0	1,922
Non-cash investing and financing activities:
Beneficial conversion feature	9,769,683	3,766,074
Issuance of warrant to debt holders	4,439,317	1,824,998
Issuance of warrants for services related to debt offering	1,667,281	975,326
Cashless warrant exercise (fair value)	515,975	111,554
Cashless stock options exercise (fair value)	0	18,298
Conversion of debt offering	5,638,275	4,245,448
Conversion of accrued interest	460,185	351,089
Issuance of shares and warrants for conversion of Simple Agreements for Future Equity	$ 1,427,141	$ 0

ORGANIZATION

ORGANIZATION	12 Months Ended
	Sep. 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. At the annual shareholder meeting held on October 15, 2021, our authorized shares of common stock was increased to 200,000,000 shares of voting common stock, par value $0.001 per share. The Company is focused on the development and commercialization of proprietary biosensor technologies which, when paired with our AI deep learning platform, 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 calls these our “Bio-RFID™” technology platform when pertaining to radio and microwave spectroscopy; and “ChromaID” technology platform when pertaining to optical spectroscopy. The data obtained with the Company’s biosensor technology is analyzed with our trade secret algorithms which are driven by our AI Deep Learning platform. ChromaID is the first technology developed and patented by the Company. For the past several years, 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 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 primary focus of the Company is on its Bio-RFID technology, its commercialization and development of related patent assets. Through its wholly owned subsidiary corporations the Company works to exploit additional opportunities and markets that its broad intellectual property and trade secret portfolio addresses. On April 30, 2020, the Company approved and ratified the incorporation of Particle, Inc. Particle is focused on the development and commercialization of our extensive intellectual property relating to electromagnetic energy outside of the medical diagnostic arena which remains the parent company’s singular focus. Since incorporation, Particle has engaged in research and development activities on threaded light bulbs that have a warm white light and can inactivate germs, including bacteria and viruses. It is now looking for partners to take the product to market. On September 17, 2021, the Company approved and ratified the incorporation of AI Mind, Inc. AI Mind is focused on monetizing the AI Deep Learning Platform. Since incorporation it has focused on creating patterns from Company data which were sold as NFTs. The Company will continue to look for opportunities for new applications on its AI Deep Learning Platform to generate revenues to support the continued development of its non-invasive diagnostic technology. 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 prior year 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 and was dissolved as of September 30, 2020.

LIQUIDITY

LIQUIDITY	12 Months Ended
	Sep. 30, 2021
LIQUIDITY
2. LIQUIDITY	2. LIQUIDITY The Company has cash of approximately $12,258,218 and net working capital of approximately $10,092,586 (exclusive of convertible notes payable and right of use asset and liabilities) as of September 30, 2021.The Company anticipates that it will record losses from operations for the foreseeable future. The Company believes that it has enough available cash to operate until December 2023. As of September 30, 2021, the Company’s accumulated deficit was $81,326,494. The Company has had limited capital resources and intends to seek additional cash via equity and debt offerings. . On March 15, 2021, the Company closed private placement for gross proceeds of $14,209,000 in exchange for issuing 8% 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 and accrued interest will be automatically converted to Common Stock at $2.00 per share on the one year anniversary starting on March 15, 2022. See Note 15 for discussion of transactions subsequent to September 30, 2021 that generated additional cash for the Company.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES ADOPTION OF ACCOUNTING STANDARDS	12 Months Ended
	Sep. 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 $3,969,972 and $2,033,726 for the year ended September 30, 2021 and 2020, 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 September 30, 2021 and 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 September 30, 2021 and 2020 was $12,217,714 and $4,252,959, respectively. 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 September 30, 2021 and 2020. Stock Based Compensation Convertible Securities Net Loss per Share As of September 30, 2020, there were options outstanding for the purchase of 4,805,000 common shares (including unearned stock option grants totaling 2,630,000 shares related to performance targets), warrants for the purchase of 20,016,367common 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 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 September 30, 2020 calculation of net loss per share because their impact is antidilutive. Comprehensive loss Dividend Policy Use of Estimates Recent Accounting Pronouncements In August 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-06, Debt --debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging --Contracts in Entity’ Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’ Own Equity Based on the Company’s review of accounting standard updates issued since the filing of the 2021 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	12 Months Ended
	Sep. 30, 2021
FIXED ASSETS
4. FIXED ASSETS	4. FIXED ASSETS Property and equipment as of September 30, 2021 and 2020 was comprised of the following: Estimated Useful Lives September 30, 2021 September 30, 2020 Machinery and equipment 2-3 years $ 654,798 $ 355,272 Leasehold improvements 5 years 3,612 3,612 Furniture and fixtures 5 years 26,855 26,855 Less: accumulated depreciation (356,761 ) (257,068 ) $ 328,504 $ 128,671 Total depreciation expense was $99,693 and $69,655 for the year ended September 30, 2021 and 2020, respectively. All equipment is used for general and administrative purposes and accordingly all depreciation is classified in general and administrative expenses.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Sep. 30, 2021
INTANGIBLE ASSETS
5. INTANGIBLE ASSETS	5. INTANGIBLE ASSETS Intangible assets as of September 30, 2021 and 2020 consisted of the following: Estimated September 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 $173,332 for the years ended September 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	12 Months Ended
	Sep. 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 September 30, 2021 and 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 September 30, 2021 and 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 $291,000 as of September 30, 2021. 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 years ended September 30, 2021 and 2020, the Company had three leases expire and recognized the rent payments as an expense in the current period. As of September 30, 2021 and September 30, 2020, total operating lease liabilities for remaining long term lease was approximately $290,000 and $132,000, respectively. In the year ended September 30, 2021 and 2020, the Company recognized approximately $139,643 and $136,718, 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 year ended September 30, 2021 was as follows: Cash paid for ROU operating lease liability $139,643 Weighted-average remaining lease term 28 months Weighted-average discount rate 7% The minimum future lease payments as of September 30, 2021 are as follows: Years Ended September 30, $ 2022 $ 128,987 2023 107,662 2024 73,095 2025 - 2026 - Total Remaining Payments 309,744 Of which Imputed Interest (19,203 ) Total Lease Liability $ 290,541

CONVERTIBLE NOTES PAYABLE AND N

CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE	12 Months Ended
	Sep. 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 September 30, 2021 and 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 $79,062 and $71,562 as of September 30, 2021 and 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 November 8, 2021, the Company signed Amendments to the convertible promissory or OID notes, extending the due dates to March 31, 2022. 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 $216,246 and $145,202 as of September 30, 2021 and 2020, respectively. On September 30, 2021, the Company approved Amendments to the convertible redeemable promissory notes with Ronald P. Erickson and J3E2A2Z, extending the due dates to March 31, 2022. 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, 2021, the Company has raised approximately $24 million through these offerings, of which $14,209,000 and $5,639,500 were raised in the years ended September 30, 2021 and 2020, respectively. The Convertible Notes issued during the year ended September 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 year ended September 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 year 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 years ended September 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 year ended September 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 year ended September 30, 2021 and 2020, amortization related to the debt offerings of $13,256,250 and $5,662,690 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 September 30, 2021 and 2020 are summarized below: September 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 (4,308,337 ) (2,127,894 ) Less debt discount - warrants (1,957,590 ) (1,025,512 ) Less debt discount - warrants issued for services (1,056,984 ) (823,582 ) $ 9,191,155 $ 3,967,578 Note Payable-PPP Loans 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 September 30, 2021 and 2020, the Company recorded interest expense of $3,222 and $960, respectively. The Company utilized 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 filed the application for the loan forgiveness during the three months ended December 31, 2021 and the Company is expecting approval by the SBA. 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 September 30, 2021, the Company recorded interest expense of $1,268. The Company utilized 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 filed the application for the loan forgiveness during the three months ended December 31, 2021 and the Company is expecting approval by the SBA.

SIMPLE AGREEMENTS FOR FUTURE EQ

SIMPLE AGREEMENTS FOR FUTURE EQUITY	12 Months Ended
	Sep. 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 August 9, 2021, $1,125,000 has been raised through the sale of SAFE instruments. On this date, certain investors elected to convert their SAFE instruments balance and accrued interest into Know Labs common stock. The Company issued 480,600 shares of common stock at an average price of $2.00 per share or $961,200 related to the conversion into the Company’s common shares. The exercise price was below the fair market value of Know Labs stock, as such the Company recorded a beneficial conversion feature of $72,090. The Company also issued five year warrants to these investors for 240,000 shares of the Company’s common stock. The warrants are exercisable at $2.40 per share. The warrants were valued at $1.641 per share or $394,332 and were expensed during the current year The Company repaid $253,800 to investors that elected to redeem their SAFE instruments for cash. The Company recorded interest expense of $90,000 and paid $54,108 to Boustead Securities LLC in fees during the year ended September 30, 2021 related to this transaction. The Company also issued a five year warrant to Boustead Securities LLC for 43,254 shares of the Company’s common stock. The warrant is exercisable at $2.40 per share and was valued at $1.641 per share or $70,980.

EQUITY

EQUITY	12 Months Ended
	Sep. 30, 2021
EQUITY
9. EQUITY	9. EQUITY Authorized Capital Stock 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 of preferred stock, par value $0.001 per share. At the annual shareholder meeting held on October 15, 2021, our authorized shares of common stock was increased to 200,000,000 shares of voting common stock, par value $0.001 per share. We have authorized 5,000,000 are shares of preferred stock, par value $0.001 per share. As of September 30, 2021, we had 35,166,551 shares of common stock issued and outstanding, held by 163 stockholders of record. The number of stockholders, including beneficial owners holding shares through nominee names, is approximately 3,600. 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 September 30, 2021, there were options outstanding for the purchase of 15,315,120 common shares (including unearned stock option grants totaling 11,775,745 shares related to performance targets), warrants for the purchase of 22,564,255 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 September 30, 2021, calculation of net loss per share because their impact is antidilutive. 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 September 30, 2021 and 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 September 30, 2021 and 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 remainissued 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 September 30, 2021 and 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 $2.00) and the exercise price of additional outstanding warrants to purchase 10,384,381 shares of common stock would adjust below $0.25 per share pursuant to the documents governing such instruments. Warrants totaling 4,487,207 would adjust below $1.20 per share pursuant to the documents governing such instruments. Warrants totaling 3,954,625 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. Year Ended September 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 3,676,542 shares of common stock at an average price of 0.582 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. The Company issued 480,600 shares of common stock at an average price of $2.00 per share or $961,200 related to the conversion of Particle Simple Agreements for Future Equity into the Company’s common shares. Year Ended September 30, 2020 On November 9, 2019, a former employee exercised stock option grants on a cashless basis. The former employee received 73,191 shares of common stock for vested stock option grants. The stock option grant had an exercise price of $0.25 per share. During the year ended September 30, 2020, the Company issued 550,000 shares of restricted common stock for services. The shares were issued were valued at $1.90 per share, the market price of our common stock, or $1,045,000. During the year ended September 30, 2020, the Company issued 4,581,917 shares of common stock related to the automatic conversion of Convertible Notes and interest from a private placement to accredited investors in 2019. The Convertible Notes and interested were automatically converted to Common Stock at $1.00 per share on the one year anniversary starting on February 15, 2020. During the year ended September 30, 2020, the Company issued 733,588 shares of common stock at $0.889 per share related to the exercise of warrants. On July 1, 2020, the Company entered into a Settlement Agreement and General Mutual Release with a shareholder of the Company. On July 6, 2020, the shareholder paid $125,000 us and we issued 500,000 shares of common stock. We accrued for the loss on debt settlement of $825,000 as of June 30, 2020 which represents the difference between the fair market value of the stock and $125,000 paid by the shareholder. Warrants to Purchase Common Stock Year Ended September 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 the year ended September 30, 2021, the Company issued warrants to five directors and service providers for 269,510 shares of common stock. The five year warrant is convertible at $1.918 per share and was valued using a Black-Scholes model at $735,745. The Convertible Notes issued during the year ended September 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 Company issued 3,676,542 shares of common stock at an average price of $0.582 per share related to the exercise of warrants. Warrants to exercise 384,359 shares of common stock were forfeited at an average of $1.155 per share. The Company also issued a five year warrant to Boustead Securities LLC for 43,254 shares of the Company’s common stock related to the conversion of Particle Simple Agreements for Future Equity into the Company’s common shares. The warrant is exercisable at $2.40 per share. The warrant was valued at $1.641 per share or $70,980. Year Ended September 30, 2020 The following warrant transactions occurred during the year ended September 30, 2020: During the year ended September 30, 2020, the Company issued 733,588 shares of common stock at $0.952 per share and cancelled warrants to purchase 507,560 shares of common stock at $1.120 per share to related to the exercise of warrants. During the year ended September 30, 2020, the Company issued 75,000 shares of common stock at $1.95 per share. The warrant was valued at $1.770 per share. Convertible Debt Offering Warrants The Warrants issued for the 2020 convertible Debt Offering were granted on a 1:0.5 basis (one-half Warrant for each full share of Common Stock into which the Convertible Notes are convertible). The Warrants have a five-year term and an exercise price equal to 120% of the per share conversion price of the Qualified Financing or other mandatory conversion. Warrants issued in connection with 2020 convertible debt offering are initially exercisable for 2,819,750 shares of Common Stock at an exercise price of $1.20 per share of Common Stock, also subject to certain adjustments. In connection with the 2020 convertible debt offering, the placement agent for the Convertible Notes and the Warrants received warrants to 615,675 shares of the Company’s common stock, all based on 8% of gross proceeds to the Company. A summary of the warrants outstanding as of September 30, 2021 were as follows: September 30, 2021 Weighted Average Exercise Shares Price Outstanding at beginning of period 20,016,367 $ 0.556 Issued 6,608,789 2.117 Exercised (3,676,542 ) (0.582 ) Forfeited (384,359 ) (1.155 ) Expired - - Outstanding at end of period 22,564,255 $ 0.998 Exerciseable at end of period 22,564,255 The following table summarizes information about warrants outstanding and exercisable as of September 30, 2021: September 30, 2021 Weighted Weighted Weighted Average Average Average Number of Remaining Exercise Shares Exercise Warrants Life ( In Years) Price Exerciseable Price 10,829,381 1.24 $ 0.250 10,829,381 $ 0.250 847,742 0.12 1.000 847,742 1.000 6,512,207 3.32 1.20-1.85 6,512,207 1.20-1.85 4,364,925 4.50 2.00-2.40 4,364,925 2.00-2.40 10,000 1.75 4.080 10,000 4.080 22,564,255 3.49 $ 0.998 22,564,255 $ 0.998 The significant weighted average assumptions relating to the valuation of the Company’s warrants for the year ended September 30, 2021 were as follows: Dividend yield 0 % Expected life 3-5 years Expected volatility 140 % Risk free interest rate 0.37 % There were vested and in the money warrants of 22,554,255 with an aggregate intrinsic value of $34,314,540.

STOCK INCENTIVE PLAN

STOCK INCENTIVE PLAN	12 Months Ended
	Sep. 30, 2021
EQUITY
10. STOCK INCENTIVE PLAN	10. STOCK INCENTIVE PLANS Know Labs, Inc. Stock Incentive Plan 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. On October 15, 2021, at the annual shareholder meeting held on October 15, 2021, the 2021 Equity Incentive Plan was adopted and approved, increasing size of the stock available under the Stock Option Plan to 20,000,000 shares. On December 10, 2021, the Company filed a registration statement on Form S-8 that registered 34,650,120 shares issued under the 2011 Stock Incentive Plan and 2021 Equity Incentive Plan. Year Ended September 30, 2021 During the year ended September 30, 2021, the Company issued stock option grants to seventeen employees and consultants totaling 10,650,745 shares of common stock at an average price of $1.766 per share. The stock option grants expire in five years. Stock option grants totaling 9,145,745 vest when earned based on certain performance criteria and 1,505,000 option grants vest quarterly over 4 years, with nothing vesting in the first two quarters. No stock compensation expense has been recorded through September 30, 2021 for those options with performance milestones. During the year ended September 30, 2021, two consultants exercised stock option grants for 20,625 shares at $1.359 per share. During the year ended September 30, 2021, an employee forfeited a stock option grant for 120,000 shares at $3.30 per share. Year Ended September 30, 2020 The Company had the following stock option transactions during the year ended September 30, 2020: During the year ended September 30, 2020, the Company granted stock option grants to executives, directors and consultants for 3,085,000 shares with a weighted average exercise price of $1.142 per share. The grants expire in five years and generally vest quarterly over four years. Stock option grants totaling 2,630,000 shares of common stock are performance stock option grants and are not vested until the performance is achieved. No stock compensation expense has been recorded through September 30, 2020 for those options with performance milestones. During the year ended September 30, 2020, executives and employees voluntarily cancelled stock option grants for 2,739,477 shares with a weighted average exercise price of $2.593 per share. On November 9, 2019, a former employee exercised stock option grants on a cashless basis. The former employee received 73,191 shares of common stock for vested stock option grants totaling 93,750 shares. The stock option grant had an exercise price of $0.25 per share. There are currently 15,315,120 (including unearned stock option grants totaling 11,775,745 shares related to performance milestones) options to purchase common stock at an average exercise price of $1.565 per share outstanding as of September 30, 2021 under the 2011 Stock Incentive Plan. The Company recorded $1,028,522 and $1,702,085 of compensation expense, net of related tax effects, relative to stock options for the year ended September 30, 2021 and 2020 and in accordance with ASC 718. As of September 30, 2021, there is approximately $1,312,936, 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 3.82 years. Stock option activity for the years ended September 30, 2021 and 2020 was as follows: Weighted Average Options Exercise Price $ 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 10,650,745 1.766 18,807,990 Exercised (20,625 ) (1.359 ) (28,031 ) Forfeitures (120,000 ) (3.300 ) (396,000 ) Outstanding as of September 30, 2021 15,315,120 $ 1.565 $ 23,964,509 The following table summarizes information about stock options outstanding and exercisable as of September 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 1.71 0.250 172,500 $ 0.250 1.10-1.25 3,074,375 3.15 1.108 445,456 1.105 1.28-1.53 9,480,745 3.58 1.499 993,750 1.307 1.79-3.67 2,530,000 4.64 2.192 108,750 1.895 15,315,120 3.82 $ 1.565 1,720,456 $ 1.316 There stock option grants of 15,315,120 shares as of September 30, 2021 with an aggregate intrinsic value of $14,916,905. Particle, Inc. Stock Incentive Plan 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 year ended September 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 year ended September 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 September 30, 2021 the 2020 Stock Incentive Plan, was terminated and all stock option grants were cancelled by the participants. The Company recorded $197,553 and $833,771 of compensation expense, net of related tax effects, relative to stock options for the years ended September 30, 2021 and 2020 and in accordance with ASC 718.

OTHER SIGNIFICANT TRANSACTIONS

OTHER SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES	12 Months Ended
	Sep. 30, 2021
OTHER SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES
11. OTHER SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES	11. OTHER SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES Transactions with Clayton Struve See Notes 7, 9 and 15 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 November 8, 2021, the Company signed Amendments to the convertible promissory or OID notes, extending the due dates to March 31, 2022. Mr. Struve invested $1,000,000 in the Debt Offering which closed in May 2019. On March 18, 2020, Mr. Struve received 1,080,000 shares of common stock related to the automatic conversion of the $1,000,000 invested in the Debt Offering. Related Party Transactions with Ronald P. Erickson See Notes 9, 10, 12 and 15 for related party transactions with Ronald P. Erickson. On October 4, 2019, Ronald P. Erickson voluntarily cancelled a stock option grant for 1,000,000 shares with an exercise price of $3.03 per share. The grant was related to performance and was not vested. On November 4, 2019, the Company granted a stock option grant to Ronald P. Erickson for 1,200,000 shares with an exercise price of $1.10 per share. The performance grant expires November 4, 2024 and vests upon uplisting to the NASDAQ or NYSE exchanges. On January 1, 2020, the Company issued 100,000 shares of restricted common stock to Ronald P. Erickson. The shares were issued in accordance with the 2011 Stock Incentive Plan and were valued at $1.90 per share, the market price of our common stock, or $190,000. On June 1, 2020, Mr. Erickson received a salary of $10,000 per month for work on Particle, Inc. This salary was cancelled as of August 15, 2021. On July 2, 2020, Particle issued a stock option grant for 1,500,000 shares at $0.10 per share to Ronald P. Erickson. The stock option grant vests (i) 33.3% upon issuance; (ii) 33.3% after the first sale; and (iii) 33.4% after one million in sales are achieved. The stock option grant was forfeited as of September 30, 2021. 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. Mr. Erickson and/or entities with which he is affiliated also have accrued compensation, travel and interest of approximately $421,599 and $597,177 as of September 30, 2021 and 2020, respectively. During the year ended September 30, 2021, the Company paid $272,500 of salaries to Mr. Erickson that were previously accrued and reported but were deferred. On September 30, 2021, the Company approved Amendments to the convertible redeemable promissory notes with Ronald P. Erickson and J3E2A2Z, extending the due dates to March 31, 2022. Related Party Transaction with Phillip A. Bosua See Notes 9, 10 and 12 for related party transactions with Phillip A. Bosua. On October 4, 2019, Philip A. Bosua voluntarily cancelled a stock option grant for 1,000,000 shares with an exercise price of $3.03 per share. The grants was related to performance and was not vested. On November 4, 2019, the Company granted a stock option grant to Philip A. Bosua for 1,200,000 shares with an exercise price of $1.10 per share. The performance grant expires November 4, 2024 and vests upon FDA approval of the UBAND blood glucose monitor. On January 1, 2020, the Company issued 150,000 shares of restricted common stock to Phillip A. Bosua. The shares were issued in accordance with the 2011 Stock Incentive Plan and were valued at $1.90 per share, the market price of the Company’s common stock, or $285,000. On June 1, 2020, Mr. Bosua received a salary of $10,000 per month for work on Particle, Inc. This salary was cancelled as of August 15, 2021. On July 2, 2020, Particle issued a stock option grant for 1,500,000 shares at $0.10 per share to Philip A. Bosua. The stock option grant vests (i) 33.3% upon issuance; (ii) 33.3% after the first sale; and (iii) 33.4% after one million in sales are achieved. The stock option grant was forfeited as of September 30, 2021. 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 March 18, 2021, the Company approved a $250,000 bonus for Mr. Bosua. The bonus was paid during April 2021. Stock Issuances and Cancellations to Named Executive Officers and Directors On November 4, 2019, the Company granted stock option grants to two directors totaling 105,000 shares with an exercise price of $1.10 per share. The stock option grants expire in five years. The stock option grants vested immediately. On January 1, 2020, the Company issued 120,000 shares of restricted common stock to three directors. The shares were issued in accordance with the 2011 Stock Incentive Plan and were valued at $1.90 per share, the market price of the Company’s common stock, or $228,000. 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	12 Months Ended
	Sep. 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 Phillip A. Bosua was appointed our Chief Executive Officer on April 10, 2018. Previously, Mr. Bosua served as the Company’s Chief Product Officer since August 2017. The Company entered into a Consulting Agreement with Mr. Bosua’s company, Blaze Clinical on July 7, 2017. From September 2012 to February 2015, Mr. Bosua was the founder and Chief Executive Officer of LIFX Inc. (where he developed and marketed an innovative “smart” light bulb) and from August 2015 until February 2016 was Vice President Consumer Products at Soraa (which markets specialty LED light bulbs). From February 2016 to July 2017, Mr. Bosua was the founder and CEO of RAAI, Inc. (where he continued the development of his smart lighting technology). From May 2008 to February 2013 he was the Founder and CEO of LimeMouse Apps, a leading developer of applications for the Apple App Store. On April 10, 2018, we entered into an Employment Agreement with Mr. Bosua reflecting his appointment as Chief Executive Officer. The Employment Agreement is for an initial term of 12 months (subject to earlier termination) and will be automatically extended for additional 12-month terms unless either party notifies the other party of its intention to terminate the Employment Agreement with at least ninety (90) days prior to the end of the Initial Term or renewal term. Mr. Bosua was paid a base salary of $225,000 per year, received 500,000 shares of common stock valued at $0.33 per share and may be entitled to bonuses and equity awards at the discretion of the Board or a committee of the Board. The Employment Agreement provides for severance pay equal to 12 months of base salary if Mr. Bosua is terminated without “cause” or voluntarily terminates his employment for “good reason.” During the years ended September 30, 2021 and 2020, the Compensation Committee and the Board compensated Phillip A. Bosua, its Chief Executive Officer, with an annual salary of $240,000 from October 1, 2019 to May 1, 2020. May 1, 2020 to March 31, 2021, the annual compensation was $260,000. From April 1, 2021 to September 30, 2021, the annual compensation was $350,000. The Compensation Committee and the Board of Particle, Inc. compensated Phillip A. Bosua with an annual salary of $120,000 from June 1, 2020 to August 15, 2021. Mr. Bosua will be entitled to participate in all group employment benefits that are offered by us to our senior executives and management employees from time to time, subject to the terms and conditions of such benefit plans, including any eligibility requirements. If the Company terminates Mr. Bosua’s employment at any time prior to the expiration of the Term without Cause, as defined in the Employment Agreement, or if Mr. Bosua terminates his employment at any time for “Good Reason” or due to a “Disability,” Mr. Bosua will be entitled to receive (i) his Base Salary amount for one year; and (ii) medical benefits for eighteen months. Employment Agreement with Ronald P. Erickson, Chairman of the Board and Interim Chief Financial Officer On April 10, 2018, we entered into an Amended Employment Agreement for Ronald P. Erickson which amends the Employment Agreement dated July 1, 2017. The Agreement expires March 21, 2019. automatically be extended for additional one (1) year periods unless either Party delivers written notice of such Party’s intention to terminate this Agreement at least ninety (90) days prior to the end of the Initial Term or renewal term. During the years ended September 30, 2021 and 2020, the Compensation Committee and the Board compensated Ronald P. Erickson, its Chairman of the Board and Interim Financial Officer, with an annual salary of $195,000 from October 1, 2019 to May 1, 2020. From May 1, 2020 to March 31, 2021, the annual compensation was $215,000. From April 1, 2021 to September 30, 2021, the annual compensation was $300,000. The Compensation Committee and the Board of Particle Inc. compensated Ronald P. Erickson with an annual salary of $120,000 from June 1, 2020 to August 15, 2021. Mr. Erickson will be entitled to participate in all group employment benefits that are offered by us to our senior executives and management employees from time to time, subject to the terms and conditions of such benefit plans, including any eligibility requirements. If the Company terminates Mr. Erickson’s employment at any time prior to the expiration of the Term without Cause, as defined in the Employment Agreement, or if Mr. Erickson terminates his employment at any time for “Good Reason” or due to a “Disability,” Mr. Erickson will be entitled to receive (i) his Base Salary amount for one year; and (ii) medical benefits for eighteen months. Properties and Operating Leases The Company is obligated under the following leases for its various facilities. Corporate Offices On April 13, 2017, the Company leased its executive office located at 500 Union Street, Suite 810, Seattle, Washington, USA, 98101. The Company leases 943 square feet and the current net monthly payment is $3,334. The monthly payment increases approximately 3% each year and the lease expires on May 31, 2022. Lab Facilities and Executive Offices On February 1, 2019, the Company leased its lab facilities and executive offices located at 915 E Pine Street, Suite 212, Seattle, WA 98122. We lease 2,642 square feet and the net monthly payment at September 30, 2021 is $8,697. The monthly payment increases approximately 3% annually each year on July 1. The lease expires on June 30, 2024.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Sep. 30, 2021
INCOME TAXES
13. INCOME TAXES	13. INCOME TAXES The Company has incurred losses since inception, which have generated net operating loss carryforwards. The net operating loss carryforwards arise from United States sources. Losses arising from United States taxable operations were approximately $6.5 million and $5.1 million for the years ended September 30, 2021 and 2020. The Company has Federal net operating loss carryforwards of approximately $43.8 million which expire in 2028-2041. Because it is not more likely than not that sufficient tax earnings will be generated to utilize the net operating loss carryforwards, a corresponding valuation allowance equal to 100% of the gross deferred tax asset of approximately $9.7 million and $8.0 million was established as of September 30, 2021 and 2020. The Company does not recognize the majority of state tax loss operating loss carryforwards as a deferred tax asset given it no longer has any operation in that state. Under the Tax Reform Act of 1986, the amounts of, and benefits from, net operating losses may be limited in certain circumstances, including a change in control. Section 382 of the Internal Revenue Code generally imposes an annual limitation on the amount of net operating loss carryforwards that may be used to offset taxable income when a corporation has undergone significant changes in its stock ownership. There can be no assurance that the Company will be able to utilize any net operating loss carryforwards in the future. The Company is subject to possible tax examination for the years 2016 through 2021. The principal components of the Company’s deferred tax assets at September 30, 2021 and 2020 are as follows: 2021 2020 Net operating loss carryforward $ 8,051,000 $ 6,536,000 Stock based compensation 975,000 1,196,000 Intangibles 276,000 305,000 Accruals and reserves 399,000 11,000 Total deferred tax asset 9,701,000 8,048,000 Valuation allowance (9,701,000 ) (8,048,000 ) Net deferred tax assets $ - $ - Change in valuation allowance during the year $ (1,653,000 ) $ (1,092,357 ) A reconciliation of the United States Federal Statutory rate to the Company’s effective tax rate for the years ended September 30, 2021 and 2020 are as follows. For the year ended September 30, 2021 and 2020, the Company’s effective tax rate differs from the federal statutory rate principally due to non deductible warrant interest expense plus an increase in the deferred tax asset valuation allowance. 2021 2020 Income tax provision at statutory rate -21.0 % -21.0 % Warrant interest expense 12 % 9 % Change in valuation allowance 7 % 9 % Prior year true up 2 % 3 % Effective tax rate 0 % 0 % As of September 30, 2021, there were no uncertain tax positions. Management does not anticipate any future adjustments in the next twelve months which would result in a material change to its tax position. For the years ended September 30, 2021 and 2020, the Company did not have any interest and penalties.

SEGMENT REPORTING

SEGMENT REPORTING	12 Months Ended
	Sep. 30, 2021
SEGMENT REPORTING
14. SEGMENT REPORTING	14. SEGMENT REPORTING The management of the Company considers the business to currently have two operating segments (i) the development of the Bio-RFID™” and “ChromaID™” technologies; (ii) Particle, Inc. technology. ) TransTech, a distributor of products for employee and personnel identification and authentication was shut down on June 30, 2020. Particle commenced operations in the three months ended June 30, 2020. The reporting for the year ended September 30, 2021 and 2020 was as follows (in thousands): Gross Operating Segment Segment Revenue Margin (Loss) Assets Year Ended September 30, 2021 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (9,373 ) $ 12,867 Particle, Inc. technology - - (1,073 ) 22 TransTech distribution business - - - - Total segments $ - $ - $ (10,446 ) $ 12,889 Year Ended September 30, 2020 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (5,481 ) $ 4,360 Particle, Inc. technology - - (1,280 ) 322 TransTech distribution business 122 70 (65 ) - Total segments $ 122 $ 70 $ (6,826 ) $ 4,682 During years ended September 30, 2021 and 2020, the Company incurred non-cash expenses related to operations of $3,979,584 and $2,990,072.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Sep. 30, 2021
SUBSEQUENT EVENTS
15. SUBSEQUENT EVENTS	15. 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 September 30, 2021, there were the following material transactions that require disclosure: Annual Shareholder Meeting On October 15, 2021, the Company held its annual shareholder meeting. The Company’s shareholders approved and adopted various motions as detailed in the Company’s Form 8-K that was filed with the SEC on October 19, 2021. 2021 Equity Incentive Plan On October 15, 2021, at the annual shareholder meeting held on October 15, 2021, the 2021 Equity Incentive Plan was adopted and approved, increasing size of the stock available under the Stock Option Plan to 20,000,000 shares. On December 10, 2021, the Company filed a registration statement on Form S-8 that registered 34,650,120 shares issued under the 2011 Stock Incentive Plan and 2021 Equity Incentive Plan. Second Amended and Restated Bylaws On October 15, 2021, the shareholders of the Company approving the Second Amended and Restated Bylaws effective October 15, 2021. Lease Modifications On April 13, 2017, the Company leased its executive office located at 500 Union Street, Suite 810, Seattle, Washington, USA, 98101. The Company leases 943 square feet and the current net monthly payment is $3,334. The monthly payment increases approximately 3% each year and the lease expires on May 31, 2022. On October 31, 2021, the Company extended the lease from June 1, 2022 to May 31, 2023 at $2,986 per month. On February 1, 2019, the Company leased its lab facilities and executive offices located at 915 E Pine Street, Suite 212, Seattle, WA 98122. The Company leases 2,642 square feet and the net monthly payment at September 30, 2021 is $8,697. The monthly payment increases approximately 3% annually each year on July 1. The lease expires on June 30, 2024. On October 11, 2021, the Company entered into First Amendment of Lease and added 1,030 square feet for year for $1,000 for $5,000 per month. The space will be utilized for clinical trials. Extension of Convertible Promissory Notes with Clayton A. Struve On November 8, 2021, the Company signed Amendments to the convertible promissory or OID notes, extending the due dates to March 31, 2022. Certificate of Amendment to Articles of Incorporation On December 6, 2021, the Company received approval from the State of Nevada for a Certificate of Amendment to the Articles of Incorporation related to the increase in the number of authorized common shares. AI Revenue On December 16, 2021, the Company, announced the Company’s Artificial Intelligence (AI) Deep Learning Platform has generated initial revenue of approximately $4.2 million from Non-Fungible Token (NFT) sales. Note Payable-PPP Loans 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). The Company filed the application for the loan forgiveness during the three months ended December 31, 2021 and the Company is expecting approval by the SBA. 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). The Company filed the application for the loan forgiveness during the three months ended December 31, 2021 and the Company is expecting approval by the SBA. Stock Option Exercises and Issuances The Company issued 803,361 shares of common stock related to warrant and stock option exercises and received $768,830. The Compensation committee issued stock option grants to seven employees and three consultants for 910,000 shares at an exercise price of $2.09 per share. The stock option grants expire in five years. The stock option grant vests quarterly over four years. On December 16, 2021, the Company issued a stock option grant to Ronald P. Erickson for 1,000.000 shares at an exercise price of $2.09 per share. The stock option grant expires in five years. The stock option grant vests quarterly over four years. On December 16, 2021, the Company issued a stock option grant to Phillip A. Bosua for 1,300,000 shares at an exercise price of $2.09 per share. The stock option grant expires in five years. The stock option grant vests quarterly over four years. On December 16, 2021, the Company approved 30,000 shares each to three directors shares at terms to be determined during January 2022. On December 16, 2021, the Company issued 20,000 warrants to purchase common stock each to three directors shares at terms to be determined during January 2022.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES ADOPTION OF ACCOUNTING STANDARDS (Policies)	12 Months Ended
	Sep. 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 $3,969,972 and $2,033,726 for the year ended September 30, 2021 and 2020, 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 September 30, 2021 and 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 September 30, 2021 and 2020 was $12,217,714 and $4,252,959, respectively.
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 September 30, 2021 and 2020.
Stock Based Compensation	Stock Based Compensation
Convertible Securities	Convertible Securities
Net Loss per Share	Net Loss per Share As of September 30, 2020, there were options outstanding for the purchase of 4,805,000 common shares (including unearned stock option grants totaling 2,630,000 shares related to performance targets), warrants for the purchase of 20,016,367common 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 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 September 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	In August 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-06, Debt --debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging --Contracts in Entity’ Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’ Own Equity Based on the Company’s review of accounting standard updates issued since the filing of the 2021 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 (Tables)

FIXED ASSETS (Tables)	12 Months Ended
	Sep. 30, 2021
FIXED ASSETS
Schedule of Property and equipment	Estimated Useful Lives September 30, 2021 September 30, 2020 Machinery and equipment 2-3 years $ 654,798 $ 355,272 Leasehold improvements 5 years 3,612 3,612 Furniture and fixtures 5 years 26,855 26,855 Less: accumulated depreciation (356,761 ) (257,068 ) $ 328,504 $ 128,671

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Sep. 30, 2021
INTANGIBLE ASSETS
Schedule of intangible assets	Estimated September 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)	12 Months Ended
	Sep. 30, 2021
LEASES
Summary of minimum future lease payments	Years Ended September 30, $ 2022 $ 128,987 2023 107,662 2024 73,095 2025 - 2026 - Total Remaining Payments 309,744 Of which Imputed Interest (19,203 ) Total Lease Liability $ 290,541

CONVERTIBLE NOTES PAYABLE AND_2

CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE (Tables)	12 Months Ended
	Sep. 30, 2021
CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE
Schedule of convertible notes	September 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 (4,308,337 ) (2,127,894 ) Less debt discount - warrants (1,957,590 ) (1,025,512 ) Less debt discount - warrants issued for services (1,056,984 ) (823,582 ) $ 9,191,155 $ 3,967,578

EQUITY (Tables)

EQUITY (Tables)	12 Months Ended
	Sep. 30, 2021
EQUITY
Warrant activity	September 30, 2021 Weighted Average Exercise Shares Price Outstanding at beginning of period 20,016,367 $ 0.556 Issued 6,608,789 2.117 Exercised (3,676,542 ) (0.582 ) Forfeited (384,359 ) (1.155 ) Expired - - Outstanding at end of period 22,564,255 $ 0.998 Exerciseable at end of period 22,564,255
Warrants outstanding and exercisable	September 30, 2021 Weighted Weighted Weighted Average Average Average Number of Remaining Exercise Shares Exercise Warrants Life ( In Years) Price Exerciseable Price 10,829,381 1.24 $ 0.250 10,829,381 $ 0.250 847,742 0.12 1.000 847,742 1.000 6,512,207 3.32 1.20-1.85 6,512,207 1.20-1.85 4,364,925 4.50 2.00-2.40 4,364,925 2.00-2.40 10,000 1.75 4.080 10,000 4.080 22,564,255 3.49 $ 0.998 22,564,255 $ 0.998
Weighted average assumptions relating to the valuation of the Company's warrants	Dividend yield 0 % Expected life 3-5 years Expected volatility 140 % Risk free interest rate 0.37 %

STOCK INCENTIVE PLANS (Tables)

STOCK INCENTIVE PLANS (Tables)	12 Months Ended
	Sep. 30, 2021
EQUITY
Stock option activity	Weighted Average Options Exercise Price $ 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 10,650,745 1.766 18,807,990 Exercised (20,625 ) (1.359 ) (28,031 ) Forfeitures (120,000 ) (3.300 ) (396,000 ) Outstanding as of September 30, 2021 15,315,120 $ 1.565 $ 23,964,509
Summarize information about particle stock option 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 1.71 0.250 172,500 $ 0.250 1.10-1.25 3,074,375 3.15 1.108 445,456 1.105 1.28-1.53 9,480,745 3.58 1.499 993,750 1.307 1.79-3.67 2,530,000 4.64 2.192 108,750 1.895 15,315,120 3.82 $ 1.565 1,720,456 $ 1.316

OTHER SIGNIFICANT TRANSACTION_2

OTHER SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES (Tables)	12 Months Ended
	Sep. 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

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Sep. 30, 2021
INCOME TAXES
Schedule of components of the Company's deferred tax assets	2021 2020 Net operating loss carryforward $ 8,051,000 $ 6,536,000 Stock based compensation 975,000 1,196,000 Intangibles 276,000 305,000 Accruals and reserves 399,000 11,000 Total deferred tax asset 9,701,000 8,048,000 Valuation allowance (9,701,000 ) (8,048,000 ) Net deferred tax assets $ - $ - Change in valuation allowance during the year $ (1,653,000 ) $ (1,092,357 )
Schedule of effective tax rate reconciliation	2021 2020 Income tax provision at statutory rate -21.0 % -21.0 % Warrant interest expense 12 % 9 % Change in valuation allowance 7 % 9 % Prior year true up 2 % 3 % Effective tax rate 0 % 0 %

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	12 Months Ended
	Sep. 30, 2021
SEGMENT REPORTING
Segment reporting	Gross Operating Segment Segment Revenue Margin (Loss) Assets Year Ended September 30, 2021 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (9,373 ) $ 12,867 Particle, Inc. technology - - (1,073 ) 22 TransTech distribution business - - - - Total segments $ - $ - $ (10,446 ) $ 12,889 Year Ended September 30, 2020 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (5,481 ) $ 4,360 Particle, Inc. technology - - (1,280 ) 322 TransTech distribution business 122 70 (65 ) - Total segments $ 122 $ 70 $ (6,826 ) $ 4,682

ORGANIZATION (Details Narrative

ORGANIZATION (Details Narrative) - $ / shares	Oct. 15, 2021	Sep. 30, 2021	Sep. 30, 2020
ORGANIZATION
Authorized shares of capital common stock		105,000,000	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
Authorized common stock increased	200,000,000

LIQUIDITY (Details Narrative)

LIQUIDITY (Details Narrative) - USD ($)	Mar. 15, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
LIQUIDITY
Gross proceeds from private placement	$ 14,209,000
Cash and cash equivalents		$ 12,258,218	$ 4,298,179	$ 1,900,836
Warrants in private placement to accredited investors	3,552,250
Working capital		10,092,586
Convertible notes converted into common stock, per share	$ 2
Bear annual interest rate	8.00%
Accumulated deficit		$ (81,326,494)	$ (55,966,281)

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES ADOPTION OF ACCOUNTING STANDARDS (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 15, 2020	Jul. 06, 2020
FDIC insurance	$ 250,000
Uninsured deposits	12,008,228	$ 4,048,179
Research and development expense	3,969,972	2,033,726
Advertising and marketing costs	329,375	230,844
Money market accounts	$ 12,217,714	$ 4,252,959
Common stock shares issued	35,166,551	24,804,874		500,000
Common stock shares outstanding	35,166,551	24,804,874
Issuable upon conversion of convertible debentures	16,124,764	7,894,566
Common shares current price per share	$ 1.90	$ 1.20	$ 1.155
Unearned stock option grants	32,629,376
Convertible Preferred Stock
Anti-dilutive securities	8,108,356	8,108,356
Warrants
Anti-dilutive securities	22,564,255	20,016,367
Stock Option 1
Unearned stock option grants	11,775,745	2,630,000
Anti-dilutive securities	15,315,120	4,805,000
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
Transaction 1
Common stock shares	9,020,264	9,020,264
Common shares current price per share	$ 0.25	$ 0.25
Transaction 2
Common stock shares	7,104,500	5,639,500
Common shares current price per share	$ 2	$ 1

FIXED ASSETS (Details)

FIXED ASSETS (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020
FIXED ASSETS
Machinery and equipment (2-3 years)	$ 654,798	$ 355,272
Leasehold improvements (5 years)	3,612	3,612
Furniture and fixtures (5 years)	26,855	26,855
Less: accumulated depreciation	(356,761)	(257,068)
Property and equipment, net	$ 328,504	$ 128,671

FIXED ASSETS (Details Narrative

FIXED ASSETS (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
FIXED ASSETS
Depreciation expense	$ 99,693	$ 69,655

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020
Technology (3 years)	$ 276,000	$ 305,000
Technology
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 ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
INTANGIBLE ASSETS
Amortization expense	$ 101,114	$ 173,332
Fair value of intellectual property assocated	$ 520,000

LEASES (Details)

LEASES (Details) - USD ($)	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2020
LEASES
2022	$ 128,987
2023	107,662
2024	73,095
2025	0
2026	0
Total Remaining Payments	309,744
Imputed interest	(19,203)
Total lease liability	$ 290,541	$ 290,000	$ 132,000

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021
LEASES
Right-of-use assets	$ 289,002	$ 129,003	$ 291,000
Total lease liability	290,541	132,000	$ 290,000
Lease cost	139,643	$ 136,718
Cash paid for ROU operating lease liability	$ 139,643
Weighted-average remaining lease term	28 years
Weighted-average discount rate			7.00%

CONVERTIBLE NOTES PAYABLE AND_3

CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020
less conversions of notes	$ (9,881,990)	$ (4,242,490)
less debt discount - BCF	(4,308,337)	(2,127,894)
less debt discount - warrants	(1,957,590)	(1,025,512)
less debt discount - warrants issued for services	(1,056,984)	(823,582)
Convertible notes, net	9,191,155	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	Sep. 30, 2021	Sep. 30, 2020
Interest expense						$ 14,914,065	$ 6,094,682
Fund raised by convertible debt offerings							2,819,750
Issuance costs of debt						$ 727,117	$ 479,965
Common stock issued related to conversion of convertible notes and interest						16,124,764	7,894,566
Convertible Note - Clayton A. Struve
Accrued interest						$ 79,062	$ 71,562
Convertible promissory or OID notes						1,071,000
Convertible debt offering invested amount				$ 1,000,000
Convertible Note - Ronald P. Erickson and Affiliates
Accrued interest						$ 216,246	$ 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
Fair value of warrants						$ 4,439,317
Beneficial conversion feature, warrants issued to debt holders and placement agent						5,662,690
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
Common stock conversion price per share						$ 1
Amortization related to debt offerings						$ 13,256,250
Convertible Debt Offering | Minimum
Exercise price of warrants						$ 1.20
Gross proceeds percentage by warrant to purchase common stock						2.00%
Convertible Debt Offering | Maximum
Exercise price of warrants						$ 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	$ 1,268					$ 3,222	$ 960

SIMPLE AGREEMENTS FOR FUTURE _2

SIMPLE AGREEMENTS FOR FUTURE EQUITY (Details Narrative) - USD ($)	Aug. 09, 2021	Oct. 31, 2020	Jul. 31, 2020	Mar. 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Dec. 15, 2020
Interest expense					$ 14,914,065	$ 6,094,682
Proceeds from issuance of SAFE					$ 340,000	$ 785,000
Shares issued price per share					$ 1.90	$ 1.20	$ 1.155
Simple Agreement for Future Equity ("SAFE")
Warrant's issued					394,332
Warrant exercisable					$ 2.40
Warrant issued value					$ 240,000
Proceeds from issuance of SAFE	$ 1,125,000	$ 55,000	$ 785,000	$ 340,000
Shares issued	480,600	68,750	981,250	68,750
Conversion into common stock converted amount	$ 961,200
Shares issued price per share	$ 2	$ 0.80	$ 0.80	$ 0.80	$ 1.641
Beneficial conversion feature	$ 72,090
Broker fees		$ 4,125	$ 47,100	$ 23,660
Repayment of cash					$ 253,800
Boustead Securities LLC [Member]
Interest expense					$ 90,000	$ 54,108
Warrant's issued					43,254
Warrant exercisable					$ 2.40
Warrant issued value					$ 70,980
Shares issued price per share					$ 2.40

EQUITY (Details)

EQUITY (Details)	12 Months Ended
	Sep. 30, 2021$ / sharesshares
Shares
Outstanding at beginning of period | shares	20,016,367
Issued | shares	6,608,789
Exercised | shares	(3,676,542)
Forfeited | shares	(384,359)
Outstanding at end of period | shares	22,564,255
Exercisable at end of period | shares	22,564,255
Weighted Average Exercise Price
Outstanding at beginning of period | $ / shares	$ 1.161
Issued | $ / shares	2.117
Exercised | $ / shares	(0.582)
Forfeited | $ / shares	(1.155)
Expired | $ / shares	0
Outstanding at end of period | $ / shares	$ 0.998

EQUITY (Details 1)

EQUITY (Details 1) - $ / shares	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Nov. 09, 2019
Number of warrants	15,315,120
Weighted average remaining life (years)	3 years 1 month 24 days
Weighted average exercise price, outstanding	$ 1.316
Shares exercisable	1,720,456
Weighted average exercise price, exercisable	$ 0.80	$ 2.593	$ 0.25
Warrant One
Number of warrants	10,829,381
Weighted average remaining life (years)	1 year 2 months 26 days
Weighted average exercise price, outstanding	$ 0.250
Shares exercisable	10,829,381
Weighted average exercise price, exercisable	$ 0.250
Warrant Five
Number of warrants	4,364,925
Weighted average remaining life (years)	4 years 6 months
Shares exercisable	4,364,925
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	10,000
Weighted average remaining life (years)	1 year 9 months
Weighted average exercise price, outstanding	$ 4.080
Shares exercisable	10,000
Weighted average exercise price, exercisable	$ 4.080
Warrant Total
Number of warrants	22,564,255
Weighted average remaining life (years)	3 years 5 months 26 days
Weighted average exercise price, outstanding	$ 0.998
Shares exercisable	22,564,255
Weighted average exercise price, exercisable	$ 0.998
Warrant Three
Number of warrants	847,742
Weighted average remaining life (years)	1 month 13 days
Weighted average exercise price, outstanding	$ 1
Shares exercisable	847,742
Weighted average exercise price, exercisable	$ 1
Warrant Four
Number of warrants	6,512,207
Weighted average remaining life (years)	3 years 3 months 25 days
Shares exercisable	6,512,207
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

EQUITY (Details 2)

EQUITY (Details 2)	12 Months Ended
	Sep. 30, 2021
Warrants
Dividend yield	0.00%
Risk free interest rate	0.37%
Expected volatility	140.00%
Warrant One | Minimum
Expected life	3 years
Warrant One | Maximum
Expected life	5 years

EQUITY (Details Narrative)

EQUITY (Details Narrative) - USD ($)	Jul. 06, 2020	Jan. 01, 2020	Sep. 30, 2021	Sep. 30, 2020	Oct. 15, 2021	Jun. 30, 2021	Mar. 31, 2021	Feb. 09, 2021	Jan. 28, 2021	Jan. 15, 2021	Dec. 15, 2020	Nov. 04, 2019	Oct. 04, 2019	Sep. 30, 2019	Sep. 30, 2018
Convertible debt				$ 2,819,750
Warrants totaling			$ 4,487,207	615,675
NET LOSS			(25,360,213)	(13,562,641)
Convertible Notes Payable			$ 16,464,066	$ 9,020,264
Exercise price			$ 1.90	$ 1.20							$ 1.155
Intrinsic value			$ 34,314,540
Money warrants			$ 22,554,255
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
Shareholders paid	$ 125,000		$ 125,000
Common stock fair market value				$ 1,045,000
Common stock shares issued	500,000		35,166,551	24,804,874
Common stock restricted shares issued for services			550,000
Loss related to issuance of shares for debt settlement			$ 0	$ 825,000
Price of warrants				$ 0.889
Common stock shares outstanding			35,166,551	24,804,874
Warrants vested			23,440,456
Intrinsic value			$ 23,964,509	$ 5,580,550		$ 52,105,394	$ 52,105,394							$ 9,180,369	$ 3,706,519
Options to purchase common stock share			15,315,120
Unearned stock option grants			11,775,745
Warrant issued to common stock			22,564,255
Conversion of convertible debentures			$ 16,464,066
Common shares			16,124,764	9,020,264
Authorized common stock increased					200,000,000
Common stock shares authorized			100,000,000	100,000,000
Warrants initially exercisable			$ 1,313,203	$ 85,575
Directors [Member]
Convertible Notes Payable			$ 7,104,500
Exercise price		$ 1.90	$ 1.918							$ 2
Common stock shares issued			3,676,542
Warrant issued to common stock			269,510								2,000,000
Preferred stock purchase			$ 384,359
Restricted common stock issued, value		$ 228,000	735,745
Warrants initially exercisable			$ 3,552,250
November 9, 2019 [Member]
Common stock shares issued				733,588
Common stock shares received				73,191
Exercise price				$ 0.25
Simple Agreements for Future Equity [Member]
Common stock shares issued			480,600
Price of warrants			$ 2
Common stock shares related party			$ 961,200
Boustead Securities LLC [Member]
Convertible Notes Payable			$ 43,254
Exercise price			$ 2.40
Common stock fair market value				$ 1,045,000
Restricted common stock issued, value			$ 1,641
Ronald P. Erickson [Member]
Exercise price		$ 1.90	$ 1.53	$ 1.95				$ 0.80	$ 0.25		$ 1.53	$ 1.10	$ 3.03
Warrant issued to common stock			2,000,000	1,770							2,000,000	1,200,000	1,000,000
Restricted common stock issued, value		$ 190,000	$ 1,811,691	$ 75,000
Series C Convertible Preferred Stock [Member]
NET LOSS			$ 0	$ 0
Preferred stock shares authorized			1,785,715	1,785,714
Preferred stock par value			$ 0.001	$ 0.001
Price of warrants			0.25	0.25
Conversion price			$ 0.70	$ 0.70
Preferred stock purchase			$ 1,250,000	$ 1,250,000
Preferred stock yield			8.00%	8.00%
Ownership percentage			4.99%	4.99%
Warrant expiry			Aug. 4, 2023
Series D Convertible Preferred Stock
NET LOSS			$ 0	$ 0
Preferred stock shares authorized			1,016,014	1,016,014
Preferred stock par value			$ 0.001	$ 0.001
Conversion price			$ 0.25	$ 0.25
Preferred stock purchase			$ 750,000	$ 750,000
Preferred stock yield			8.00%	8.00%
Ownership percentage			4.99%	4.99%
Annual yield			8.00%	8.00%
Authorized Capital Stock [Member]
Common stock par value			$ 0.001
Preferred stock shares authorized			5,000,000
Preferred stock par value			$ 0.001
Common stock shares issued			100,000,000
Common shares			16,124,764	9,020,264
Authorized common stock increased					200,000,000
Common stock shares authorized			105,000,000
Stock at 0.25
Warrants totaling			$ 4,487,207
Price of warrants			$ 0.25
Common shares			9,020,264
Adjusting amount of shares, percentage			1.20%
Stock at 2.00
Warrants totaling			$ 3,954,625
Price of warrants			$ 0.25
Common shares			7,104,500
Adjusting amount of shares, percentage			2.40%
Common Preferred Stock [Member]
Convertible Notes Payable			$ 6,091,960
Exercise price			$ 1	$ 1
Common stock fair market value			$ 202,820
Common stock shares issued			3,676,542	4,581,917
Conversion price			$ 0.582	$ 1
Common stock shares related party			97,000
Exercise of stock option			16,875
Stock option grants per share			$ 1.38
Series F Preferred Stock [Member]
Common shares			100,000
Description of explosion date of shares			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
Warrants to Purchase Common Stock [Member]
Exercise price		$ 1.120		$ 0.952
Common stock fair market value				$ 507,560
Common stock shares issued				733,588

STOCK INCENTIVE PLANS (Details)

STOCK INCENTIVE PLANS (Details) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Aggregate Intrinsic Value
Outstanding at beginning of period	$ 5,580,550	$ 9,180,369
Granted	18,807,990	3,522,400
Exercised	(28,031)	(18,298)
Forfeitures	(396,000)	(7,103,921)
Outstanding at end of period	$ 23,964,509	$ 5,580,550
Outstanding at beginning of period	$ 1.161
Weighted average exercise price exercised	(0.582)
Outstanding at end of period	$ 0.998	$ 1.161
Outstanding at beginning of period	20,016,367
Shares granted	6,608,789
Shares exercised	(3,676,542)
Forfeited	(384,359)
Outstanding at end of period	22,564,255	20,016,367
Weighted Average Exercise Price:
Aggregate Intrinsic Value
Outstanding at beginning of period	$ 1.161	$ 2.025
Weighted average exercise price, granted	1.766	1.142
Weighted average exercise price exercised	(1.359)	(0.250)
Weighted average exercise price forfeited	(3.300)	(2.593)
Outstanding at end of period	$ 1.565	$ 1.161
Stock Option Activity
Aggregate Intrinsic Value
Outstanding at beginning of period	4,805,000	4,532,668
Shares granted	10,650,745	3,085,000
Shares exercised	(20,625)	(73,191)
Forfeited	(120,000)	(2,739,477)
Outstanding at end of period	15,315,120	4,805,000

STOCK INCENTIVE PLANS (Details

STOCK INCENTIVE PLANS (Details 1)	12 Months Ended
	Sep. 30, 2021$ / sharesshares
Number of outstanding stock options | shares	15,315,120
Weighted average remaining life (years)	3 years 1 month 24 days
Weighted average exercise price outstanding	$ 1.565
Weighted average exercise price exerciseable	$ 1.316
Number exercisable | shares	1,720,456
Minimum | Stock Option 3
Range of exercise prices	$ 1.28
Minimum | Stock Option 4
Range of exercise prices	1.79
Maximum | Stock Option 3
Range of exercise prices	1.53
Maximum | Stock Option 4
Range of exercise prices	$ 3.67
Stock Option 1
Number of outstanding stock options | shares	230,000
Weighted average remaining life (years)	1 year 8 months 15 days
Weighted average exercise price outstanding	$ 0.250
Weighted average exercise price exerciseable	$ 0.250
Number exercisable | shares	172,500
Range of exercise prices	$ 0.25
Stock Option 2
Number of outstanding stock options | shares	3,074,375
Weighted average remaining life (years)	3 years 6 months 29 days
Weighted average exercise price outstanding	$ 1.108
Weighted average exercise price exerciseable	$ 1.105
Number exercisable | shares	445,456
Stock Option 2 | Minimum
Range of exercise prices	$ 1.10
Stock Option 2 | Maximum
Range of exercise prices	$ 1.25
Stock Option 3
Number of outstanding stock options | shares	9,480,745
Weighted average remaining life (years)	3 years 9 months 25 days
Weighted average exercise price outstanding	$ 1.499
Weighted average exercise price exerciseable	$ 1.307
Number exercisable | shares	993,750
Stock Option 4
Number of outstanding stock options | shares	2,530,000
Weighted average remaining life (years)	4 years 7 months 20 days
Weighted average exercise price outstanding	$ 2.192
Weighted average exercise price exerciseable	$ 1.895
Number exercisable | shares	108,750

STOCK INCENTIVE PLANS (Detail_2

STOCK INCENTIVE PLANS (Details Narrative) - USD ($)	Nov. 09, 2019	May 21, 2020	Sep. 30, 2021	Sep. 30, 2020	Oct. 15, 2021	Nov. 23, 2020	May 22, 2019	Jan. 23, 2019
Average exercise price	$ 0.25		$ 0.80	$ 2.593
Unearned stock option grants			11,775,745
Compensation expense			$ 1,028,522	$ 1,702,085
Unrecognized compensation costs			$ 1,312,936
Stock option grants				2,739,477
Common stock for vested stock option	73,191
Common stock for vested stock option, totaling	93,750
Period for recognition			3 years 9 months 25 days
Options to purchase common stock			15,315,120
Stock options granted			32,629,376
Intrinsic value			$ 34,314,540
Stock Option | Employees
Average exercise price			$ 3.30
Stock options granted			120,000
Stock Option | Employees One
Average exercise price			$ 0.80
Stock options granted			550,000
Stock Option | Seventeen Employees And Consultants
Average exercise price			$ 1.766	$ 1.142
Period for recognition			5 years
Stock options granted			15,315,120	3,085,000
Stock option grants, total			9,145,745	2,630,000
Intrinsic value			$ 14,916,905
Stock Option | Two Consultants
Average exercise price			$ 1.359
Stock options granted			20,625
Particle, Inc.
Compensation expense			$ 197,553	$ 833,771
Period for recognition		4 years	4 years 2 months 15 days
Options to purchase common stock		8,000,000
2011 Stock Incentive Plan
Average exercise price			$ 1.565
Unearned stock option grants			11,775,745
Options to purchase common stock			15,315,120			9,750,000	3,000,000	2,500,000
Stock option grant vests description			(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
2021 Equity Incentive Plan
Unearned stock option grants			1,505,000
Options to purchase common stock					20,000,000
Stock options granted			10,650,745
Stock option grants, total			1,900,000

OTHER SIGNIFICANT TRANSACTION_3

OTHER SIGNIFICANT TRANSACTIONS AND TRANSACTIONS WITH RELATED PARTIES (Details)	12 Months Ended
	Sep. 30, 2021$ / sharesshares
Clayton Struve Warrant: Series C Warrant W98
Issue date	08-04-2016
Number of warrant shares | shares	1,785,715
Exercise price | $ / shares	$ 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 | shares	187,500
Exercise price | $ / shares	$ 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 | shares	187,500
Exercise price | $ / shares	$ 0.25
Original expiration date	12-18-2021
Amended expiration date	12-18-2023

OTHER SIGNIFICANT TRANSACTION_4

OTHER SIGNIFICANT TRANSACTIONS AND TRANSACTIONS WITH RELATED PARTIES (Details narrative) - USD ($)	Jan. 15, 2021	Dec. 15, 2020	Jul. 02, 2020	Jun. 01, 2020	Jan. 01, 2020	Feb. 09, 2021	Jan. 28, 2021	Mar. 18, 2020	Nov. 04, 2019	May 31, 2019	Sep. 30, 2021	Sep. 30, 2020	Oct. 04, 2019
Warrant issued to common stock											22,564,255
Option granted											32,629,376
Exercise price		$ 1.155									$ 1.90	$ 1.20
Ronald P. Erickson [Member]
Warrant issued to common stock		2,000,000							1,200,000		2,000,000	1,770	1,000,000
Option granted						500,000
Restricted common stock issued, value					$ 190,000						$ 1,811,691	$ 75,000
Restricted common stock issued					100,000
Exercise price		$ 1.53			$ 1.90	$ 0.80	$ 0.25		$ 1.10		$ 1.53	$ 1.95	$ 3.03
Salary per month				$ 10,000
Description of particle issued a stock option			Particle issued a stock option grant for 1,500,000 shares at $0.10 per share to Ronald P. Erickson. The stock option grant vests (i) 33.3% upon issuance; (ii) 33.3% after the first sale; and (iii) 33.4% after one million in sales are achieved
Accrued compensation, travel and interest											$ 421,599	$ 597,177
Salaries											272,500
Term period		5 years
Accounts payable and accrued liabilities											421,599	$ 597,177
Ronald P. Erickson [Member] | Tranche One [Member]
Sales achieved upto						$ 50,000,000
Ronald P. Erickson [Member] | Tranche Two [Member]
Sales achieved upto						$ 200,000,000
Ronald P. Erickson [Member] | Stock Option 2
Option granted		1,865,675
Exercise price		$ 1.53
Term period		5 years
Ronald P. Erickson [Member] | Stock Option 1
Option granted		1,865,675
Exercise price		$ 1.53
Term period		5 years
Phillip A. Bosua [Member]
Option granted						500,000
Restricted common stock issued, value					$ 285,000
Restricted common stock issued					150,000
Exercise price		$ 1.53			$ 1.90	$ 0.80			$ 1.10				$ 3.03
Salary per month				$ 10,000
Description of particle issued a stock option			Particle issued a stock option grant for 1,500,000 shares at $0.10 per share to Philip A. Bosua. The stock option grant vests (i) 33.3% upon issuance; (ii) 33.3% after the first sale; and (iii) 33.4% after one million in sales are achieved
Cancelled a stock option grant													1,000,000
Stock option grant									1,200,000
Bonus											250,000
Accrued liabilities related party											250,000
Phillip A. Bosua [Member] | Tranche One [Member]
Sales achieved upto						$ 50,000,000
Phillip A. Bosua [Member] | Tranche Two [Member]
Sales achieved upto						$ 200,000,000
Phillip A. Bosua [Member] | Stock Option 2
Option granted		2,132,200
Exercise price		$ 1.53
Term period		5 years
Phillip A. Bosua [Member] | Stock Option 1
Option granted		2,132,195
Exercise price		$ 1.53
Term period		5 years
Clayton Struve Warrant [Member]
Exercise price							$ 0.25
Convertible promissory notes											$ 1,071,000
Stock exercised							$ 889,880
Mr. Struve [Member]
Common shares issued								1,080,000
Invested in debt										$ 1,000,000
Conversion of common stock in debt								$ 1,000,000
Two Directors [Member]
Exercise price									$ 1.10
Number of warrants issued									105,000
Three Director [Member]
Exercise price	$ 2
Number of warrants issued	20,000
Directors [Member]
Warrant issued to common stock		2,000,000									269,510
Restricted common stock issued, value					$ 228,000						$ 735,745
Restricted common stock issued					120,000
Exercise price	$ 2				$ 1.90						$ 1.918
Stock issued	30,000

COMMITMENTS, CONTINGENCIES AN_2

COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS (Details narrative) - USD ($)	Feb. 01, 2019	Apr. 10, 2018	Apr. 13, 2017	Sep. 30, 2021	May 31, 2020	Mar. 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Aug. 15, 2021
Leases, net monthly payment	$ 8,697		$ 3,334
Mr. Bosua
Base salary		$ 225,000
Common stock shares received		500,000
Common stock per shares		$ 0.33
Ronald P. Erickson [Member]
Annual salary				$ 300,000	$ 195,000	$ 215,000		$ 260,000	$ 120,000
Phillip A. Bosua [Member]
Annual salary				$ 350,000			$ 240,000	$ 260,000	$ 120,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
INCOME TAXES
Net operating loss carryforward	$ 8,051,000	$ 6,536,000
Stock based compensation	975,000	1,196,000
Intangibles	276,000	305,000
Accruals and reserves	399,000	11,000
Total deferred tax asset	9,701,000	8,048,000
Valuation allowance	(9,701,000)	(8,048,000)
Net deferred tax assets	0	0
Change in valuation allowance during the year	$ (1,653,000)	$ (1,092,357)

INCOME TAXES (Details 1)

INCOME TAXES (Details 1)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Increase in Income Taxes Resulting from:
Income tax provision at statutory rate	(21.00%)	(21.00%)
Warrant interest expense	12.00%	9.00%
Change in valuation allowance	7.00%	9.00%
Prior year true up	2.00%	3.00%
Effective tax rate	0.00%	0.00%

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
INCOME TAXES
Loss before tax	$ 6.5	$ 5.1
Deferred tax asset, gross	9.7	$ 8
Net operating loss carryforwards	$ 43.8
Net operating loss carryforwards, expiration dates	2028-2041

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Revenue	$ 0	$ 122
Gross margin	0	70
Net (loss)	(10,446)	(6,826)
Segment assets	12,889	4,682
Development of the Bio-RFID and ChromaID Technologies
Revenue	0	0
Gross margin	0	0
Net (loss)	(9,373)	(5,481)
Segment assets	12,867	4,360
Particle, Inc. Technology
Revenue	0	0
Gross margin	0	0
Net (loss)	(1,073)	(1,280)
Segment assets	22	322
TransTech Distribution Business
Revenue	0	122
Gross margin	0	70
Net (loss)	0	(65)
Segment assets	$ 0	$ 0

SEGMENT REPORTING (Details Narr

SEGMENT REPORTING (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
SEGMENT REPORTING
Non-cash expenses	$ 3,979,584	$ 2,990,072

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Oct. 11, 2021	Apr. 13, 2017	Dec. 16, 2021	Oct. 31, 2021	Feb. 01, 2021	Apr. 30, 2020	Feb. 01, 2019	Sep. 30, 2021	Sep. 30, 2020	Oct. 15, 2021	Dec. 15, 2020
Exercise price								$ 1.90	$ 1.20		$ 1.155
Proceeds from notes payable								$ 14,209,000	$ 5,639,500
Note Payable-PPP Loans [Member]
Proceeds from notes payable					$ 205,633	$ 226,170
Lease modification, pine street [Member]
Change in rental payments, each year, percentage							3.00%
Lease periodic payments, payable under agreement							$ 8,697
Lease expiration date							Jun. 30, 2024
Lease modification, union street [Member]
Change in rental payments, each year, percentage		3.00%
Lease periodic payments, payable under agreement		$ 3,334
Lease expiration date		May 31, 2022
Seven employees and three consultants [Member]
Common stock shares reserved for future issuance								910,000
Exercise price								$ 2.09
Term								5 years
Subsequent Event [Member] | 2021 And 2011 Equity Incentive Plan [Member]
Common stock issued under incentive plans										34,650,120
Subsequent Event [Member] | Lease modification, pine street [Member]
First amendment to lease, description	the Company entered into First Amendment of Lease and added 1,030 square feet for year for $1,000 for $5,000 per month.
Subsequent Event [Member] | Lease modification, union street [Member]
Lease periodic payments, payable under agreement				$ 2,986
Lease expiration date				May 31, 2023
Subsequent Event [Member] | 2021 Equity Incentive Plan [Member]
Common stock shares reserved for future issuance										20,000,000
Subsequent Event [Member] | Ronald P. Erickson [Member]
Common stock shares reserved for future issuance			1,000
Exercise price			$ 2.09
Term			5 years
Subsequent Event [Member] | Phillip A. Bosua [Member]
Common stock shares reserved for future issuance			1,300,000
Exercise price			$ 2.09
Term			5 years
Subsequent Event [Member] | Three directors [Member]
Common stock shares reserved for future issuance			30,000
Number of warrants issued			20,000
Warrant and stock option [Member]
Common stock shares issued upon exercise of stock options/warrants, amount								$ 768,830
Common stock shares issued upon exercise of stock options/warrants, shares								803,361