Sonnet BioTherapeutics (SONN) 10-K 15 Dec 22 2022 FY Annual report Financial data

Cover

Cover - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2022	Dec. 14, 2022	Mar. 31, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--09-30
Entity File Number	001-35570
Entity Registrant Name	SONNET BIOTHERAPEUTICS HOLDINGS, INC.
Entity Central Index Key	0001106838
Entity Tax Identification Number	20-2932652
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	100 Overlook Center
Entity Address, Address Line Two	Suite 102
Entity Address, City or Town	Princeton
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08540
City Area Code	(609)
Local Phone Number	375-2227
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	SONN
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 22.1
Entity Common Stock, Shares Outstanding		7,934,156
Documents Incorporated by Reference [Text Block]	None
ICFR Auditor Attestation Flag	false
Auditor Firm ID	185
Auditor Name	KPMG LLP
Auditor Location	Philadelphia, Pennsylvania

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Current assets:
Cash	$ 3,052,879	$ 27,622,067
Prepaid expenses and other current assets	2,361,048	1,189,474
Total current assets	5,413,927	28,811,541
Property and equipment, net	46,211	59,056
Operating lease right-of-use asset	256,594	123,213
Deferred offering costs	113,280
Total assets	5,830,012	28,993,810
Current liabilities:
Related-party notes	748	748
Accounts payable	4,752,340	3,781,299
Accrued expenses	3,193,972	2,310,410
Operating lease liability	51,328	94,520
Deferred income	166,431	516,374
Total current liabilities	8,164,819	6,703,351
Operating lease liability	203,912	30,612
Total liabilities	8,368,731	6,733,963
Commitments and contingencies (Note 5)
Stockholders’ (deficit) equity:
Preferred stock; $0.0001 par value: 5,000,000 shares authorized. No shares issued or outstanding
Common stock; $0.0001 par value: 125,000,000 shares authorized; 5,544,528 and 4,303,617 shares issued and outstanding at September 30, 2022 and 2021, respectively	554	430
Additional paid-in capital	88,871,786	83,948,635
Accumulated deficit	(91,411,059)	(61,689,218)
Total stockholders’ (deficit) equity	(2,538,719)	22,259,847
Total liabilities and stockholders’ (deficit) equity	$ 5,830,012	$ 28,993,810

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Sep. 30, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
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	$ 0.0001	$ 0.0001
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	5,544,528	4,303,617
Common stock, shares outstanding	5,544,528	4,303,617

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Collaboration revenue	$ 349,943	$ 483,626
Operating expenses:
Research and development	21,444,019	16,634,553
General and administrative	8,575,283	8,936,509
Total operating expenses	30,019,302	25,571,062
Loss from operations	(29,669,359)	(25,087,436)
Interest income		15
Foreign exchange loss	(52,482)	(22,041)
Other income		125,501
Net loss	$ (29,721,841)	$ (24,983,961)
Per share information:
Net loss per share, basic and diluted	$ (6.84)	$ (14.25)
Weighted average shares outstanding, basic and diluted	4,348,166	1,753,378

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Sep. 30, 2020		$ 105	$ 39,725,069	$ (36,705,257)	$ 3,019,917
Beginning balance, shares at Sep. 30, 2020		1,051,722
Sale of common stock and warrants, net of issuance costs		$ 290	42,848,176		42,848,466
Sale of common stock, net of issuance costs. shares		2,903,409
Issuance of common stock on vesting of restricted stock units		$ 2	(2)
Issuance of common stock on vesting of restricted stock units,shares		23,351
Net share settlement of warrants		$ 32	(32)
Net share settlement of warrants, shares		323,430
Warrant exercises		$ 1	1		2
Warrant exercises, shares		1,705
Share-based compensation			1,375,423		1,375,423
Net loss				(24,983,961)	(24,983,961)
Ending balance, value at Sep. 30, 2021		$ 430	83,948,635	(61,689,218)	22,259,847
Ending balance, shares at Sep. 30, 2021		4,303,617
Issuance of common stock on vesting of restricted stock units		$ 2	(2)
Issuance of common stock on vesting of restricted stock units,shares		24,091
Share-based compensation			876,368		876,368
Net loss				(29,721,841)	(29,721,841)
Sale of preferred stock and common stock warrants, net of issuance costs	$ 1,540,640		597,574		2,138,214
Sale of preferred stock and common stock warrants, net of issuance costs, shares	22,500
Conversion of preferred stock into common stock	$ (1,540,640)	$ 55	1,540,585
Conversion of preferred stock into common stock, shares	(22,500)	552,283
Sale of common stock, net of issuance costs		$ 67	1,908,626		1,908,693
Sale of common stock, net of issuance costs, shares		664,537
Ending balance, value at Sep. 30, 2022		$ 554	$ 88,871,786	$ (91,411,059)	$ (2,538,719)
Ending balance, shares at Sep. 30, 2022		5,544,528

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net loss	$ (29,721,841)	$ (24,983,961)
Adjustments to reconcile net loss to net cash used in operating activities:
Acquired in-process research and development	971,477
Depreciation	12,845	12,456
Amortization of operating lease right-of-use asset	80,412	82,706
Share-based compensation	876,368	1,375,423
Non-cash interest expense		623
Forgiveness of note payable		(125,501)
Change in operating assets and liabilities:
Prepaid expenses and other current assets	(1,171,574)	(901,736)
Other assets		82,959
Accounts payable	971,041	1,723,740
Accrued expenses	727,622	246,732
Operating lease liability	(83,685)	(82,060)
Deferred income	(349,943)	16,374
Net cash used in operating activities	(27,687,278)	(22,552,245)
Cash flows from investing activities:
Purchases of in-process research and development	(896,477)
Purchases of property and equipment		(3,623)
Net cash used in investing activities	(896,477)	(3,623)
Cash flows from financing activities:
Proceeds from sale of preferred stock and common stock warrants, net of issuance costs	2,172,649
Proceeds from sale of common stock, net of issuance costs	1,841,918	42,848,466
Proceeds from warrant exercises, net of issuance costs		2
Repayments of related-party notes		(20,436)
Net cash provided by financing activities	4,014,567	42,828,032
Net (decrease) increase in cash	(24,569,188)	20,272,164
Cash, beginning of year	27,622,067	7,349,903
Cash, end of year	3,052,879	27,622,067
Supplemental disclosure of non-cash operating, investing and financing activities:
Change in operating lease right-of-use asset and liability due to amended lease	213,793
Net settlement of warrants		32
Issuance of common stock on vesting of restricted stock units	2	2
In-process research and development in accrued expenses	75,000
Common stock issuance costs in accrued expenses	$ 80,940

Organization and description of

Organization and description of business	12 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and description of business	1. Organization and description of business Description of business Sonnet BioTherapeutics, Inc. (“Prior Sonnet”) was incorporated as a New Jersey corporation on April 6, 2015. Prior Sonnet completed a merger with publicly-held Chanticleer Holdings, Inc. (“Chanticleer”) on April 1, 2020. After the merger, Chanticleer changed its name to Sonnet BioTherapeutics Holdings, Inc. (“Sonnet” or the “Company”). Sonnet is a clinical stage, oncology-focused biotechnology company with a proprietary platform for innovating biologic medicines of single- or bi-specific action. Known as F H H The Company acquired the global development rights to its most advanced compound, SON-080, a fully human version of Interleukin 6 (“IL-6”), in April 2020 through its acquisition of the outstanding shares of Relief Therapeutics SA. Sonnet is advancing SON-080 in target indications of Chemotherapy-Induced Peripheral Neuropathy (“CIPN”) and Diabetic Peripheral Neuropathy (“DPN”). Sonnet received approval to initiate an ex-U.S. Phase 1b/2a study with SON-080 in CIPN. This study could yield initial clinical safety data during the first half of 2023. Pursuant to a license agreement the Company entered with New Life Therapeutics Pte, Ltd. (“New Life”) of Singapore in May 2021, Sonnet and New Life will be jointly responsible for developing SON-080 in DPN. The objective will be to initiate a Phase 2 study in the second half of 2023, once the CIPN safety data is available. SON-1210 (IL12-F H H Cell line development and process development of SON-1410 (IL18-F H The Company has completed sequence confirmation for SON-3015 (anti-IL6-F H Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements Global pandemic - COVID-19 On March 10, 2020, the World Health Organization characterized the novel COVID-19 virus as a global pandemic. There is significant uncertainty as to the likely effects of this disease which may, among other things, materially impact the Company’s planned clinical trials. This pandemic or outbreak could result in difficulty securing clinical trial site locations, clinical research organizations (“CROs”), and/or trial monitors and other critical vendors and consultants supporting the trial. In addition, outbreaks or the perception of an outbreak near a clinical trial site location could impact the Company’s ability to enroll patients. These situations, or others associated with COVID-19, could cause delays in the Company’s clinical trial plans and could increase expected costs, all of which could have a material adverse effect on the Company’s business and its financial condition. Liquidity The Company has incurred recurring losses and negative cash flows from operations since inception and it expects to generate losses from operations for the foreseeable future primarily due to research and development costs for its potential product candidates. The Company believes its cash of $ 3.1 million at September 30, 2022, together with the $ 4.6 million of net proceeds received from the sale of its common stock pursuant to the 2022 Sales Agreement (as defined below) subsequent to September 30, 2022 through December 15, 2022 will fund the Company’s projected operations into March 2023. Substantial additional financing will be needed by the Company to fund its operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company entered into an At-the-Market Sales Agreement with BTIG, LLC (“BTIG”) on August 15, 2022 (the “2022 Sales Agreement”). Pursuant to the 2022 Sales Agreement, the Company may offer and sell, from time to time, through BTIG, as sales agent and/or principal, shares of its common stock having an aggregate offering price of up to $ 25.0 6.1 2,477,287 6.1 1.7 579,239 0.7 The Company plans to secure additional capital in the future through equity or debt financings, partnerships, collaborations, or other sources to carry out the Company’s planned development activities. If additional capital is not available when required, the Company may need to delay, curtail or cease its operations until such funding is received. Various internal and external factors will affect whether and when the Company’s product candidates become approved for marketing and successful commercialization. The regulatory approval and market acceptance of the Company’s product candidates, length of time and cost of developing and commercializing these product candidates and/or failure of them at any stage of the approval process will materially affect the Company’s financial condition and future operations. Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements Operations since inception have consisted primarily of organizing the Company, securing financing, developing its technologies through performing research and development and conducting preclinical studies. The Company faces risks associated with companies whose products are in development. These risks include the need for significant additional financing to complete its research and development, achieving its research and development objectives, defending its intellectual property rights, recruiting and retaining skilled personnel, and dependence on key members of management.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies a. Basis of presentation The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) promulgated by the Financial Accounting Standards Board (“FASB”). b. Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. c. Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates and assumptions reflected in these consolidated financial statements include the accrual of research and development expenses. Estimates and assumptions are periodically reviewed in-light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from management’s estimates. d. Segment information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and assess performance. The Company views its operations and manages its business in one segment. e. Fair value of financial instruments Management believes that the carrying amounts of the Company’s financial instruments, including accounts payable, approximate fair value due to the short-term nature of those instruments. Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements f. Property and equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance that do not extend the estimated useful life or improve an asset are expensed as incurred. Upon retirement or sale, the cost and related accumulated depreciation and amortization of assets disposed of are removed from the accounts, and any resulting gain or loss is included in the consolidated statement of operations. g. Impairment of long-lived assets The Company reviews long-lived assets, such as property and equipment, for impairment whenever events or changes in circumstances indicated that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future cash flows expected to be generated by that asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, than an impairment charge is recognized for the amount by which the carrying value of the asset exceeds the estimated fair value of the asset. There were no impairment charges recorded during the fiscal years ended September 30, 2022 and 2021. h. Deferred offering costs Legal and other costs incurred in relation to equity offerings are capitalized as deferred offering costs and charged against the proceeds from equity offerings when received. If a financing is abandoned, deferred offering costs are expensed. As of September 30, 2022, the Company had $ 0.1 i. Collaboration revenue Collaboration arrangements may contain multiple components, which may include (i) licenses; (ii) research and development activities; and (iii) the manufacturing and supply of certain materials. Payments pursuant to these arrangements may include non-refundable payments, upfront payments, milestone payments upon the achievement of significant regulatory and development events, sales milestones and royalties on product sales. The amount of variable consideration is constrained until it is probable that the revenue is not at a significant risk of reversal in a future period. In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under a collaboration arrangement, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are capable of being distinct; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue as the Company satisfies each performance obligation. The Company applies significant judgment when evaluating whether contractual obligations represent distinct performance obligations, allocating transaction price to performance obligations within a contract, determining when performance obligations have been met, and assessing the recognition of variable consideration. When consideration is received prior to the Company completing its performance obligation under the terms of a contract, a contract liability is recorded as deferred income. Deferred income expected to be recognized as revenue within the twelve months following the balance sheet date is classified as a current liability. In May 2021, the Company entered into a License Agreement (the “New Life Agreement”) with New Life. See Note 6 for further discussion of the New Life Agreement. j. Research and development expense Research and development expenses include all direct and indirect costs associated with the development of the Company’s biopharmaceutical products. These expenses include personnel costs, consulting fees, and payments to third parties for research, development, and manufacturing services. These costs are charged to expense as incurred. At the end of the reporting period, the Company compares payments made to third-party service providers to the estimated progress toward completion of the related project, based on the measure of progress as defined in the contract. Factors the Company considers in preparing the estimates include costs incurred by the service provider, milestones achieved, and other criteria related to the efforts of its service providers. Such estimates are subject to change as additional information becomes available. Depending on the timing of payment to the service providers and the progress that the Company estimates has been made as a result of the service provided, the Company will record a prepaid expense or accrued liability relating to these costs. Upfront milestone payments made to third parties who perform research and development services on the Company’s behalf are expensed as services are rendered. Contingent development or regulatory milestone payments are recognized upon the related resolution of such contingencies. Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements k. Foreign currency Transaction gains and losses resulting from exchange rate changes on transactions denominated in currencies other than the U.S. dollar are included in operations in the period in which the transaction occurs and reported within the foreign exchange loss line item in the consolidated statements of operations. l. Share-based compensation The Company measures equity classified share-based awards granted to employees and nonemployees based on the estimated fair value on the date of grant and recognizes compensation expense of those awards over the requisite service period, which is the vesting period of the respective award. The Company accounts for forfeitures as they occur. For share-based awards with service-based vesting conditions, the Company recognizes compensation expense on a straight-line basis over the service period. The Company classifies share-based compensation expense in its consolidated statements of operations in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. m. Other income In March 2020, the U.S. federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which included a provision for a Paycheck Protection Program (“PPP”). In May 2020, the Company received a PPP loan of $0.1 million. Under the terms of the CARES Act, the Company’s PPP loan and the related interest were forgiven in full in June 2021. Forgiveness of the PPP loan is included in other income within the consolidated statement of operations for the year ended September 30, 2021. n. Income taxes The Company uses the asset-and-liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes the benefit of an uncertain tax position that it has taken or expects to take on its income tax return if such a position is more likely than not to be sustained. o. Reverse stock split On September 16, 2022, the Company filed a Certificate of Amendment to its Certificate of Incorporation, as amended, with the Secretary of State of the State of Delaware, which effected a 1-for-14 reverse stock split Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements p. Net loss per share Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during each period (and potential shares of common stock that are exercisable for little or no consideration). Included in basic weighted-average number of shares of common stock outstanding during the years ended September 30, 2022 and 2021 are the Series B warrants with an exercise price of $ 0.0014 Diluted loss per share includes the effect, if any, from the potential exercise or conversion of securities such as common stock warrants and stock options which would result in the issuance of incremental shares of common stock. For diluted net loss per share, the weighted-average number of shares of common stock is the same for basic net loss per share due to the fact that when a net loss exists, dilutive securities are not included in the calculation as the impact is anti-dilutive. The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding as they would be anti-dilutive: Schedule of Potentially Dilutive Securities 2022 2021 September 30, 2022 2021 Common stock warrants 2,827,708 2,827,708 Underwriter warrants 50,416 50,416 Private warrants 7,549 7,549 Chanticleer warrants 1,267 1,267 Series C warrants 809,243 809,243 Series 3 warrants 276,140 — Unvested restricted stock units 48,156 25,948 Total anti-dilutive weighted average shares 4,020,479 3,722,131 q. Recent accounting pronouncements Recently announced In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options Recently adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes Topic 740 - Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU 2020-06 , Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40) Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements

Accrued Expenses

Accrued Expenses	12 Months Ended
	Sep. 30, 2022
Accrued Expenses
Accrued Expenses	3. Accrued Expenses Accrued expenses consisted of the following: Schedule of Accrued Expenses 2022 2021 September 30, 2022 2021 Professional fees $ 378,890 $ 286,688 Compensation and benefits 1,218,530 989,315 Research and development 1,593,922 1,031,329 Other 2,630 3,078 Accrued Expenses $ 3,193,972 $ 2,310,410

Leases

Leases	12 Months Ended
	Sep. 30, 2022
Leases
Leases	4. Leases In December 2019, the Company entered a 36-month lease for office space in Princeton, New Jersey, which commenced February 1, 2020. In May 2022, the Company amended the existing lease agreement in order to increase the lease term by approximately three years, which has been accounted for as a lease modification. The operating lease right-of-use asset and liability were remeasured at the modification date, resulting in an increase to both balances of $ 0.2 The components of lease expense for the years ended September 30, 2022 and 2021 are as follows: Schedule of Lease Expenses Lease expense 2022 2021 Operating lease expense $ 94,828 $ 102,156 Short-term lease expense 5,339 12,935 Total lease cost $ 100,167 $ 115,091 At September 30, 2022, the weighted average remaining lease term was 3.5 12 Cash flow information related to operating leases for the years ended September 30, 2022 and 2021 is as follows: Schedule of Operating Lease Liabilities 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 98,101 $ 101,516 Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements Future minimum lease payments under non-cancellable leases at September 30, 2022 are as follows: Schedule of Future Minimum Lease Payments Fiscal year 2023 $ 79,259 2024 93,614 2025 95,487 2026 48,216 Total undiscounted lease payments 316,576 Less: imputed interest (61,336 ) Total lease liabilities $ 255,240

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	5. Commitments and Contingencies Legal proceedings From time to time, the Company is a party to various lawsuits, claims, and other legal proceedings that arise in the ordinary course of its business. While the outcomes of these matters are uncertain, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. License agreements In July 2012, the Company entered into a Discovery Collaboration Agreement (the “Collaboration Agreement”) with XOMA (US) LLC (“XOMA”), pursuant to which XOMA granted to the Company a non-exclusive, non-transferable license and/or right to use certain materials, technologies and related information related to discovery, optimization and development of antibodies and related proteins and to develop and commercialize products thereunder. The Company is obligated to make contingent milestone payments to XOMA totaling $ 3.8 0.5 In August 2015, the Company entered into a License Agreement (the “ARES License Agreement”) with Ares Trading, a wholly-owned subsidiary of Merck KGaA (“ARES”). Under the terms of the ARES License Agreement, ARES has granted the Company a sublicensable, exclusive, worldwide, royalty-bearing license on proprietary patents to research, develop, use and commercialize products using atexakin alfa (“Atexakin”), a low dose formulation of human IL-6 in peripheral neuropathies and vascular complications. Pursuant to the ARES License Agreement, the Company will pay ARES high single-digit royalties on net sales of products sold by the Company. Royalties are payable on a product-by-product and country-by-country basis until the later of (i) a specified period of time after the first commercial sale in such country, and (ii) the last date on which such product is covered by a valid claim in such country. Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements In January 2019, the Company entered into a Frame Services and License Agreement (the “Cellca Agreement”) with Sartorius Stedim Cellca GMBH (“Cellca”), pursuant to which Cellca has granted the Company a worldwide, non-exclusive, perpetual, non-transferable license to develop, manufacture or have manufactured, use, sell, import, export and/or otherwise commercialize product based on Cellca’s work to generate a specified transfected cell line and develop an upstream production process for such cell line. The Cellca Agreement is effective unless terminated by either party by giving six months notice, or by giving 14 days notice if terminated for good cause. The Company is obligated to make milestone payments to Cellca totaling up to $0.7 million upon the achievement of certain development and approval milestones if the Buy-Out Option is not exercised. 0.1 0.6 0.6 0.1 In October 2021, the Company entered into a Non-Exclusive License Agreement (the “Brink Agreement”) with Brink Biologics Inc. (“Brink”), pursuant to which Brink has granted the Company a non-exclusive, non-transferable license and limited right to sublicense certain materials and related information to develop cell-based assays for batch, quality control, stability, efficacy, potency or any other type of assay required for production and commercialization of products. The Brink Agreement was effective November 1, 2020, has an initial term of three years, and will automatically renew for one year terms unless terminated with written notice by either party or if the Company ceases to use the licensed property for the product development phase. During the product development phase, the Company is obligated to make annual license fee payments of approximately $ 0.1 0.1 0.2 In February 2022, the Company entered into a Biological Materials License Agreement (the “InvivoGen Agreement”) with InvivoGen SAS (“InvivoGen”), pursuant to which InvivoGen has granted the Company a worldwide, non-exclusive license to use certain reporter cells for research, development and/or quality control purposes. The InvivoGen Agreement has an initial term of three years and may be extended for two additional three-year periods upon written notice by the Company and payment of an approximately € 0.1 0.1 0.1 In March 2022, the Company entered into a Material Transfer and License Agreement (the “ProteoNic Agreement”) with ProteoNic B.V. (“ProteoNic”), pursuant to which ProteoNic has granted to the Company a non-exclusive, non-transferable, non-sublicensable (except as provided for in the ProteoNic Agreement) license for certain materials, including plasmids and DNA sequences used to generate the vectors used in the Company’s cell lines, for the Company’s use in research, development and commercialization of product. The license will continue until terminated by either party. The Company is obligated to make contingent milestone payments to ProteoNic totaling up to € 1.2 1.2 24,600 Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements Research and development agreements In December 2021, the Company entered into a Research and Development Agreement (the “Navigo Agreement”) with Navigo Proteins GmbH (“Navigo”), pursuant to which Navigo will perform specified evaluation and development procedures to evaluate certain materials to determine their commercial potential. Under the terms of the Navigo Agreement, the Company granted Navigo a royalty-free, non-exclusive, worldwide, non-sublicensable, non-transferable right and license to use certain technology to perform the evaluation and development activities, and Navigo granted the Company (i) an exclusive, worldwide, perpetual, irrevocable, sublicensable, transferable, royalty-free right and license to research, develop, use, sell, have sold, distribute, import or otherwise commercially exploit certain materials, and (ii) a non-exclusive, worldwide, perpetual, sublicensable, non-transferable right and license to make or have made such materials. The Company paid a $ 0.1 1.0 Employment agreements The Company has entered into employment contracts with its officers and certain employees that provide for severance and continuation of benefits in the event of termination of employment either by the Company without cause or by the employee for good reason, both as defined in the contract. In addition, in the event of termination of employment following a change in control, as defined, either by the Company without cause or by the employee for good reason, any unvested portion of the employee’s initial stock option grant becomes immediately vested.

Collaboration Agreement

Collaboration Agreement	12 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaboration Agreement	6. Collaboration Agreement Under the New Life Agreement, the Company granted New Life an exclusive license (with the right to sublicense) to develop and commercialize pharmaceutical preparations containing a specific recombinant human IL-6, SON-080 (the “Compound”) (such preparations, the “Products”) for the prevention, treatment or palliation of diabetic peripheral neuropathy in humans (the “DPN Field”) in Malaysia, Singapore, Indonesia, Thailand, Philippines, Vietnam, Brunei, Myanmar, Lao PDR and Cambodia (the “Exclusive Territory”). New Life had the option to expand (1) the field of the exclusive license to include the prevention, treatment or palliation of chemotherapy-induced peripheral neuropathy in humans (the “CIPN Field”), which option was non-exclusive and expired on December 31, 2021; and/or (2) the territorial scope of the license to include the People’s Republic of China, Hong Kong and/or India, which option was exclusive and expired on December 31, 2021. The Company will retain all rights to manufacture Compounds and Products anywhere in the world. The Company and New Life shall enter into a follow-on supply agreement pursuant to which the Company shall supply to New Life Products for development and commercialization thereof in the DPN Field in the Exclusive Territory on terms to be negotiated by the parties. The Company will also assist in transferring certain preclinical and clinical development know-how that is instrumental in New Life’s ability to benefit from the license. New Life will bear the cost of, and be responsible for, among other things, conducting clinical studies and additional non-clinical studies and other developmental and regulatory activities for and commercializing Products in the DPN Field in the Exclusive Territory. New Life paid the Company a $ 0.5 0.5 New Life is also obligated to pay a non-refundable deferred license fee of an additional $ 1.0 19.0 12 30 The New Life Agreement will remain in effect on a Product-by-Product, country-by-country basis and will expire upon the expiration of the Royalty Term for the last-to-expire Product in the last-to-expire country, subject to (i) each party’s early termination rights including for material breach or insolvency or bankruptcy of the other party and (ii) the Company’s Buy Back Right and New Life’s Give Back Right (as defined below). In addition, New Life granted to the Company an exclusive option to buy back the rights (the “Buy Back Right”) granted by the Company to New Life and the Company granted New Life the right to give back the rights (the “Give Back Right”) with respect to Products in the DPN Field in one or more countries in the Exclusive Territory on terms to be agreed upon, which options will expire upon the initiation of a Phase III Trial for the applicable Product. Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements Revenue recognition The Company first assessed the New Life Agreement under ASC 808, Collaborative Arrangements Revenue from Contracts with Customers The Company determined the initial transaction price of the single performance obligation to be $ 1.0 Collaboration revenue from the single performance obligation is being recognized over the estimated performance of the R&D services. The Company recognized $ 0.3 0.5

Stockholders_ (Deficit) Equity

Stockholders’ (Deficit) Equity	12 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Stockholders’ (Deficit) Equity	7. Stockholders’ (Deficit) Equity Private placement of preferred stock In August 2022, the Company entered into a securities purchase agreement (the “Preferred SPA”) with several accredited investors for the issuance and sale of (i) an aggregate of 22,275 100 225 100 276,140 2.3 0.1 2.1 546,760 5,523 4.074 4.074 Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements The shares of the Series 3 and Series 4 Convertible Preferred Stock had no voting rights other than the right to vote with common stockholders, as a single class, on a proposed amendment to the Company’s Certificate of Incorporation, as amended, to effect a reverse split of the outstanding shares of common stock. Each share of Series 3 Convertible Preferred Stock was entitled to vote on an as-converted basis, and each share of Series 4 Convertible Preferred Stock was entitled to 17,857,142 votes per share The private placement closed on August 15, 2022, and the stockholders voted to approve the reverse stock split on September 15, 2022. The Series 3 and Series 4 Convertible Preferred Stock were converted to 552,283 no Common stock Through September 30, 2022, the Company sold an aggregate of 664,537 2.0 1.9 Also during the year ended September 30, 2022, the Company issued 24,091 In August 2021, the Company completed an underwritten public offering and received gross proceeds of approximately $ 30.0 2.4 27.6 2,370,963 150,045 0.0014 11.90 11.90 11.90 11.8986 2,521,008 In connection with the offering, the Company granted the underwriters a 30-day overallotment option to purchase up to 378,151 378,151 306,700 11.90 0.14 In addition, warrants to purchase 50,416 14.875 In February 2021, the Company entered into an At-the-Market Sales Agreement with BTIG (the “2021 Sales Agreement”). Pursuant to the 2021 Sales Agreement, the Company had the ability to offer and sell, from time to time, through BTIG, as sales agent and/or principal, shares of its common stock, having an aggregate offering price of up to $ 15.9 532,446 15.9 15.2 Also during the year ended September 30, 2021, the Company issued 23,351 Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements Warrant amendments and exercises During the year ended September 30, 2021, the Series B warrant holders exercised 1,705 2 160,173 160,167 During the year ended September 30, 2021, the Chanticleer warrants to purchase 13,297 0.14 13,244 During the year ended September 30, 2021, the 150,045 150,019 Common stock warrants As of September 30, 2022, the following equity-classified warrants and related terms were outstanding: Schedule of Warrants Outstanding Warrants Outstanding Exercise Price Expiration Date Common stock warrants 2,827,708 $ 11.90 August 24, 2026 Underwriter warrants 50,416 $ 14.875 August 19, 2026 Private warrants 7,549 $ 410.48 October 1, 2022 March 10, 2023 Chanticleer warrants 1,267 $ 819.00 1,274.00 April 30, 2027 December 17, 2028 Series B warrants 3,026 $ 0.0014 April 16, 2025 Series C warrants 809,243 $ 44.66 October 16, 2025 Series 3 warrants 276,140 $ 4.074 August 15, 2027 3,975,349 As discussed above, the Series 3 warrants were issued during 2022 in connection with the private placement of preferred stock. The net proceeds from the private placement were allocated to the Series 3 and Series 4 Convertible Preferred Stock and the Series 3 warrants based on their relative fair values at the issuance date, resulting in an allocation of $ 0.6 Schedule of Fair Value of Warrants at Issuance Exercise price $ 0.29 Term 5.0 Expected volatility 105.5 % Dividend yield — % Risk-free interest rate 2.91 %

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	8. Share-Based Compensation In April 2020, the Company adopted the 2020 Omnibus Equity Incentive Plan (the “Plan”). The total number of shares of common stock available for issuance under the Plan as of September 30, 2022 was 172,323 Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements Restricted stock units In July of 2020, 46,703 In March of 2021, an additional 3,357 In December of 2021, 46,478 The Company recorded share-based compensation expense associated with the RSUs in its accompanying consolidated statements of operations. Schedule of Share-based Compensation Expense Year Ended September 30, 2022 2021 Research and development $ 437,921 $ 422,813 General and administrative 438,447 952,610 Share Based Compensation $ 876,368 $ 1,375,423 The following table summarizes RSU activity under the Plan: Schedule of Restricted Stock Units Activity RSU Weighted Average Grant Date Fair Value Unvested balance at October 1, 2020 46,703 $ 50.82 Granted 3,357 $ 33.32 Vested (23,351 ) $ 50.82 Forfeited (761 ) $ 50.82 Unvested balance at September 30, 2021 25,948 $ 48.56 Granted 46,478 $ 7.07 Vested (24,091 ) $ 49.60 Forfeited (537 ) $ 50.82 Unvested balance at September 30, 2022 47,798 $ 7.98 As of September 30, 2022, total unrecognized compensation expense relating to unvested RSUs granted was $ 0.1 one year Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements

Income Taxes

Income Taxes	12 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes As of September 30, 2022, the Company had $ 94.1 94.3 7.8 expire in 2027 1.7 0.5 2035 2030 8.3 14.3 Due to the change in ownership provisions of the Internal Revenue Code, the availability of the Company’s net operating loss carryforwards may be subject to annual limitations, against taxable income in future periods, which could substantially limit the eventual utilization of such carryforwards. The Company has not analyzed the historical or potential impact of its equity financings on beneficial ownership and therefore no determination has been made whether the net operating loss carryforwards are subject to any Internal Revenue Code Section 382 limitation. To the extent there is a limitation, there would be a reduction in the deferred tax assets with an offsetting reduction in the valuation allowance. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely-than-not be realized. The determination as to whether the tax benefit will more-likely-than-not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company recognizes interest and penalties accrued on any unrecognized tax benefits within the provision for income taxes in its consolidated statements of operations. No unrecognized tax benefits have been recorded. Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements The tax effects of the temporary differences that gave rise to deferred taxes were as follows: Schedule of Deferred Tax Assets and Liabilities September 30, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 25,858,311 $ 21,398,036 Research and development credit carryforwards 2,151,942 1,263,451 Amortization 2,897,388 — Share-based compensation 66,832 146,192 Operating lease liability 71,748 26,570 Accrued expenses and other 314,210 144,215 Property and equipment 4,790 3,039 Gross deferred tax assets 31,365,221 22,981,503 Less: valuation allowance (31,293,092 ) (22,946,868 ) Deferred tax assets 72,129 34,635 Deferred tax liabilities: Operating lease right-of-use asset (72,129 ) (34,635 ) Net deferred tax assets $ — $ — The Company recorded no income tax expense or benefit for the years ended September 30, 2022 and 2021. A reconciliation of income tax (expense) benefit at the statutory federal income tax rate and income taxes as reflected in the consolidated financial statements is as follows: Schedule of Effective Income Tax Rate Reconciliation Year Ended September 30, 2022 2021 U.S. federal statutory rate (21.0 )% (21.0 )% State taxes, net of federal benefit (6.0 ) (6.6 ) Change in valuation allowance 28.1 26.4 Research and development credit (3.0 ) — Permanent differences 0.7 (0.1 ) Foreign tax rate differential 0.8 0.7 Other 0.4 0.6 Effective income tax rate — % — % In August 2022, the U.S. enacted the Inflation Reduction Act of 2022 (“IRA”). The IRA contains a number of tax-related provisions, including a corporate alternative minimum tax of 15% 1%

Subsequent Events

Subsequent Events	12 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	10. Subsequent Events The Company has evaluated subsequent events from the balance sheet date through December 15, 2022, the date at which the consolidated financial statements were available to be issued. As previously announced, the Company is not in compliance with Nasdaq Listing Rule 5550(b)(1) (the “Rule”), which requires companies listed on The Nasdaq Capital Market to maintain stockholders’ equity of at least $ 2.5 On November 9, 2022, the Company filed a prospectus supplement registering the offer and sale of shares of its common stock for an aggregate offering price of up to an additional $ 1.7 Subsequent to September 30, 2022 and through the date of this filing, the Company has sold 2,391,989 4.7 4.6

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of presentation	a. Basis of presentation The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) promulgated by the Financial Accounting Standards Board (“FASB”).
Consolidation	b. Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of estimates	c. Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates and assumptions reflected in these consolidated financial statements include the accrual of research and development expenses. Estimates and assumptions are periodically reviewed in-light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from management’s estimates.
Segment information	d. Segment information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and assess performance. The Company views its operations and manages its business in one segment.
Fair value of financial instruments	e. Fair value of financial instruments Management believes that the carrying amounts of the Company’s financial instruments, including accounts payable, approximate fair value due to the short-term nature of those instruments. Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements
Property and equipment	f. Property and equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance that do not extend the estimated useful life or improve an asset are expensed as incurred. Upon retirement or sale, the cost and related accumulated depreciation and amortization of assets disposed of are removed from the accounts, and any resulting gain or loss is included in the consolidated statement of operations.
Impairment of long-lived assets	g. Impairment of long-lived assets The Company reviews long-lived assets, such as property and equipment, for impairment whenever events or changes in circumstances indicated that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future cash flows expected to be generated by that asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, than an impairment charge is recognized for the amount by which the carrying value of the asset exceeds the estimated fair value of the asset. There were no impairment charges recorded during the fiscal years ended September 30, 2022 and 2021.
h. Deferred offering costs	h. Deferred offering costs Legal and other costs incurred in relation to equity offerings are capitalized as deferred offering costs and charged against the proceeds from equity offerings when received. If a financing is abandoned, deferred offering costs are expensed. As of September 30, 2022, the Company had $ 0.1
Collaboration revenue	i. Collaboration revenue Collaboration arrangements may contain multiple components, which may include (i) licenses; (ii) research and development activities; and (iii) the manufacturing and supply of certain materials. Payments pursuant to these arrangements may include non-refundable payments, upfront payments, milestone payments upon the achievement of significant regulatory and development events, sales milestones and royalties on product sales. The amount of variable consideration is constrained until it is probable that the revenue is not at a significant risk of reversal in a future period. In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under a collaboration arrangement, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are capable of being distinct; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue as the Company satisfies each performance obligation. The Company applies significant judgment when evaluating whether contractual obligations represent distinct performance obligations, allocating transaction price to performance obligations within a contract, determining when performance obligations have been met, and assessing the recognition of variable consideration. When consideration is received prior to the Company completing its performance obligation under the terms of a contract, a contract liability is recorded as deferred income. Deferred income expected to be recognized as revenue within the twelve months following the balance sheet date is classified as a current liability. In May 2021, the Company entered into a License Agreement (the “New Life Agreement”) with New Life. See Note 6 for further discussion of the New Life Agreement.
Research and development expense	j. Research and development expense Research and development expenses include all direct and indirect costs associated with the development of the Company’s biopharmaceutical products. These expenses include personnel costs, consulting fees, and payments to third parties for research, development, and manufacturing services. These costs are charged to expense as incurred. At the end of the reporting period, the Company compares payments made to third-party service providers to the estimated progress toward completion of the related project, based on the measure of progress as defined in the contract. Factors the Company considers in preparing the estimates include costs incurred by the service provider, milestones achieved, and other criteria related to the efforts of its service providers. Such estimates are subject to change as additional information becomes available. Depending on the timing of payment to the service providers and the progress that the Company estimates has been made as a result of the service provided, the Company will record a prepaid expense or accrued liability relating to these costs. Upfront milestone payments made to third parties who perform research and development services on the Company’s behalf are expensed as services are rendered. Contingent development or regulatory milestone payments are recognized upon the related resolution of such contingencies. Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements
Foreign currency	k. Foreign currency Transaction gains and losses resulting from exchange rate changes on transactions denominated in currencies other than the U.S. dollar are included in operations in the period in which the transaction occurs and reported within the foreign exchange loss line item in the consolidated statements of operations.
Share-based compensation	l. Share-based compensation The Company measures equity classified share-based awards granted to employees and nonemployees based on the estimated fair value on the date of grant and recognizes compensation expense of those awards over the requisite service period, which is the vesting period of the respective award. The Company accounts for forfeitures as they occur. For share-based awards with service-based vesting conditions, the Company recognizes compensation expense on a straight-line basis over the service period. The Company classifies share-based compensation expense in its consolidated statements of operations in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified.
Other income	m. Other income In March 2020, the U.S. federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which included a provision for a Paycheck Protection Program (“PPP”). In May 2020, the Company received a PPP loan of $0.1 million. Under the terms of the CARES Act, the Company’s PPP loan and the related interest were forgiven in full in June 2021. Forgiveness of the PPP loan is included in other income within the consolidated statement of operations for the year ended September 30, 2021.
Income taxes	n. Income taxes The Company uses the asset-and-liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes the benefit of an uncertain tax position that it has taken or expects to take on its income tax return if such a position is more likely than not to be sustained.
Reverse stock split	o. Reverse stock split On September 16, 2022, the Company filed a Certificate of Amendment to its Certificate of Incorporation, as amended, with the Secretary of State of the State of Delaware, which effected a 1-for-14 reverse stock split Sonnet BioTherapeutics Holdings, Inc. Notes to Consolidated Financial Statements
Net loss per share	p. Net loss per share Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during each period (and potential shares of common stock that are exercisable for little or no consideration). Included in basic weighted-average number of shares of common stock outstanding during the years ended September 30, 2022 and 2021 are the Series B warrants with an exercise price of $ 0.0014 Diluted loss per share includes the effect, if any, from the potential exercise or conversion of securities such as common stock warrants and stock options which would result in the issuance of incremental shares of common stock. For diluted net loss per share, the weighted-average number of shares of common stock is the same for basic net loss per share due to the fact that when a net loss exists, dilutive securities are not included in the calculation as the impact is anti-dilutive. The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding as they would be anti-dilutive: Schedule of Potentially Dilutive Securities 2022 2021 September 30, 2022 2021 Common stock warrants 2,827,708 2,827,708 Underwriter warrants 50,416 50,416 Private warrants 7,549 7,549 Chanticleer warrants 1,267 1,267 Series C warrants 809,243 809,243 Series 3 warrants 276,140 — Unvested restricted stock units 48,156 25,948 Total anti-dilutive weighted average shares 4,020,479 3,722,131
Recent accounting pronouncements	q. Recent accounting pronouncements Recently announced In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options Recently adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes Topic 740 - Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU 2020-06 , Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40)

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Schedule of Potentially Dilutive Securities	The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding as they would be anti-dilutive: Schedule of Potentially Dilutive Securities 2022 2021 September 30, 2022 2021 Common stock warrants 2,827,708 2,827,708 Underwriter warrants 50,416 50,416 Private warrants 7,549 7,549 Chanticleer warrants 1,267 1,267 Series C warrants 809,243 809,243 Series 3 warrants 276,140 — Unvested restricted stock units 48,156 25,948 Total anti-dilutive weighted average shares 4,020,479 3,722,131

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Sep. 30, 2022
Accrued Expenses
Schedule of Accrued Expenses	Accrued expenses consisted of the following: Schedule of Accrued Expenses 2022 2021 September 30, 2022 2021 Professional fees $ 378,890 $ 286,688 Compensation and benefits 1,218,530 989,315 Research and development 1,593,922 1,031,329 Other 2,630 3,078 Accrued Expenses $ 3,193,972 $ 2,310,410

Leases (Tables)

Leases (Tables)	12 Months Ended
	Sep. 30, 2022
Leases
Schedule of Lease Expenses	The components of lease expense for the years ended September 30, 2022 and 2021 are as follows: Schedule of Lease Expenses Lease expense 2022 2021 Operating lease expense $ 94,828 $ 102,156 Short-term lease expense 5,339 12,935 Total lease cost $ 100,167 $ 115,091
Schedule of Operating Lease Liabilities	Cash flow information related to operating leases for the years ended September 30, 2022 and 2021 is as follows: Schedule of Operating Lease Liabilities 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 98,101 $ 101,516
Schedule of Future Minimum Lease Payments	Future minimum lease payments under non-cancellable leases at September 30, 2022 are as follows: Schedule of Future Minimum Lease Payments Fiscal year 2023 $ 79,259 2024 93,614 2025 95,487 2026 48,216 Total undiscounted lease payments 316,576 Less: imputed interest (61,336 ) Total lease liabilities $ 255,240

Stockholders_ (Deficit) Equity

Stockholders’ (Deficit) Equity (Tables)	12 Months Ended
	Sep. 30, 2022
Class of Warrant or Right [Line Items]
Schedule of Warrants Outstanding	As of September 30, 2022, the following equity-classified warrants and related terms were outstanding: Schedule of Warrants Outstanding Warrants Outstanding Exercise Price Expiration Date Common stock warrants 2,827,708 $ 11.90 August 24, 2026 Underwriter warrants 50,416 $ 14.875 August 19, 2026 Private warrants 7,549 $ 410.48 October 1, 2022 March 10, 2023 Chanticleer warrants 1,267 $ 819.00 1,274.00 April 30, 2027 December 17, 2028 Series B warrants 3,026 $ 0.0014 April 16, 2025 Series C warrants 809,243 $ 44.66 October 16, 2025 Series 3 warrants 276,140 $ 4.074 August 15, 2027 3,975,349
Series 3 Warrants [Member]
Class of Warrant or Right [Line Items]
Schedule of Fair Value of Warrants at Issuance	Schedule of Fair Value of Warrants at Issuance Exercise price $ 0.29 Term 5.0 Expected volatility 105.5 % Dividend yield — % Risk-free interest rate 2.91 %

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Share-based Compensation Expense	The Company recorded share-based compensation expense associated with the RSUs in its accompanying consolidated statements of operations. Schedule of Share-based Compensation Expense Year Ended September 30, 2022 2021 Research and development $ 437,921 $ 422,813 General and administrative 438,447 952,610 Share Based Compensation $ 876,368 $ 1,375,423
Schedule of Restricted Stock Units Activity	The following table summarizes RSU activity under the Plan: Schedule of Restricted Stock Units Activity RSU Weighted Average Grant Date Fair Value Unvested balance at October 1, 2020 46,703 $ 50.82 Granted 3,357 $ 33.32 Vested (23,351 ) $ 50.82 Forfeited (761 ) $ 50.82 Unvested balance at September 30, 2021 25,948 $ 48.56 Granted 46,478 $ 7.07 Vested (24,091 ) $ 49.60 Forfeited (537 ) $ 50.82 Unvested balance at September 30, 2022 47,798 $ 7.98

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Schedule of Deferred Tax Assets and Liabilities	The tax effects of the temporary differences that gave rise to deferred taxes were as follows: Schedule of Deferred Tax Assets and Liabilities September 30, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 25,858,311 $ 21,398,036 Research and development credit carryforwards 2,151,942 1,263,451 Amortization 2,897,388 — Share-based compensation 66,832 146,192 Operating lease liability 71,748 26,570 Accrued expenses and other 314,210 144,215 Property and equipment 4,790 3,039 Gross deferred tax assets 31,365,221 22,981,503 Less: valuation allowance (31,293,092 ) (22,946,868 ) Deferred tax assets 72,129 34,635 Deferred tax liabilities: Operating lease right-of-use asset (72,129 ) (34,635 ) Net deferred tax assets $ — $ —
Schedule of Effective Income Tax Rate Reconciliation	The Company recorded no income tax expense or benefit for the years ended September 30, 2022 and 2021. A reconciliation of income tax (expense) benefit at the statutory federal income tax rate and income taxes as reflected in the consolidated financial statements is as follows: Schedule of Effective Income Tax Rate Reconciliation Year Ended September 30, 2022 2021 U.S. federal statutory rate (21.0 )% (21.0 )% State taxes, net of federal benefit (6.0 ) (6.6 ) Change in valuation allowance 28.1 26.4 Research and development credit (3.0 ) — Permanent differences 0.7 (0.1 ) Foreign tax rate differential 0.8 0.7 Other 0.4 0.6 Effective income tax rate — % — %

Organization and description _2

Organization and description of business (Details Narrative) - USD ($)				2 Months Ended	12 Months Ended
	Dec. 14, 2022	Nov. 09, 2022	Aug. 15, 2022	Dec. 15, 2022	Sep. 30, 2021	Sep. 30, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cash					$ 27,622,067	$ 3,052,879
Offering price for common stock					$ 42,848,466
At The Market Sales Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Offering price for common stock			$ 6,100,000
At The Market Sales Agreement [Member] | BTIG LLC [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Offering price for common stock			$ 25,000,000
Subsequent Event [Member] | Sales Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from issuance of common stock				$ 4,600,000
Subsequent Event [Member] | At The Market Sales Agreement [Member] | BTIG LLC [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from issuance of common stock	$ 700,000	$ 6,100,000
Offering price for common stock		$ 1,700,000
Sale of stock, number of shares issued in transaction	579,239	2,477,287

Schedule of Potentially Dilutiv

Schedule of Potentially Dilutive Securities (Details) - shares	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	4,020,479	3,722,131
Common Stock Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	2,827,708	2,827,708
Underwriter Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	50,416	50,416
Private Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	7,549	7,549
Chanticleer Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	1,267	1,267
Series C Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	809,243	809,243
Series 3 Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	276,140
Unvested Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive weighted average shares	48,156	25,948

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
	Sep. 16, 2022	Sep. 30, 2022	Sep. 30, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Stockholders equity reverse stock split	1-for-14 reverse stock split
Basic weighted average number of shares exercise price		$ 0.0014	$ 0.0014
Sales Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Deferred offering costs		$ 0.1

Schedule of Accrued Expenses (D

Schedule of Accrued Expenses (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Accrued Expenses
Professional fees	$ 378,890	$ 286,688
Compensation and benefits	1,218,530	989,315
Research and development	1,593,922	1,031,329
Other	2,630	3,078
Accrued Expenses	$ 3,193,972	$ 2,310,410

Schedule of Lease Expenses (Det

Schedule of Lease Expenses (Details) - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Lease expense
Operating lease expense	$ 94,828	$ 102,156
Short-term lease expense	5,339	12,935
Total lease cost	$ 100,167	$ 115,091

Schedule of Operating Lease Lia

Schedule of Operating Lease Liabilities (Details) - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Leases
Operating cash flow from operating lease	$ 98,101	$ 101,516

Schedule of Future Minimum Leas

Schedule of Future Minimum Lease Payments (Details)	Sep. 30, 2022 USD ($)
Leases
2023	$ 79,259
2024	93,614
2025	95,487
2026	48,216
Total undiscounted lease payments	316,576
Less: imputed interest	(61,336)
Total lease liabilities	$ 255,240

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Leases
Change in operating lease right-of-use asset and liability due to amended lease	$ 213,793
Weighted-average remaining lease term	3 years 6 months
Weighted average discount rate	12%

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) € in Millions	1 Months Ended				12 Months Ended
	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Oct. 31, 2021 USD ($)	Jul. 31, 2012 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2022 EUR (€)	Sep. 30, 2021 USD ($)
Loss Contingencies [Line Items]
Annual license fee					$ 200,000
Payment for annual license fee obligation					100,000	€ 0.1
Payment to acquire in process research and development					896,477
Discovery Collaboration Agreements [Member] | XOMA [Member]
Loss Contingencies [Line Items]
Milestone payments				$ 3,800,000
Annual license fee					$ 500,000
Cellca Agreement [Member]
Loss Contingencies [Line Items]
Description of milestone payments					The Company is obligated to make milestone payments to Cellca totaling up to $0.7 million upon the achievement of certain development and approval milestones if the Buy-Out Option is not exercised.	The Company is obligated to make milestone payments to Cellca totaling up to $0.7 million upon the achievement of certain development and approval milestones if the Buy-Out Option is not exercised.
The Cellca Agreement [Member]
Loss Contingencies [Line Items]
Milestone payments					$ 600,000
The Cellca Agreement [Member] | In Process Research and Development [Member]
Loss Contingencies [Line Items]
Annual license fee					100,000
The Cellca Agreement [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Payment for annual license fee obligation					100,000
The Cellca Agreement [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Payment for annual license fee obligation					600,000
The Brink Agreement [Member]
Loss Contingencies [Line Items]
Payment for annual license fee obligation			$ 100,000
Commerical product license fee payment obligation			$ 100,000
The InvivoGen Agreement [Member] | In Process Research and Development [Member]
Loss Contingencies [Line Items]
Annual license fee	$ 24,600				100,000
The ProteoNic Agreement [Member]
Loss Contingencies [Line Items]
Contingent milestone payments					1,200,000	€ 1.2
Navigo Agreement [Member] | Navigo Proteins GmbH [Member] | Technology Service [Member]
Loss Contingencies [Line Items]
Milestone payments		$ 1,000,000
Payment to acquire in process research and development					$ 100,000

Collaboration Agreement (Detail

Collaboration Agreement (Details Narrative) - USD ($) $ in Millions	1 Months Ended		12 Months Ended
	Jun. 30, 2021	Aug. 31, 2020	Sep. 30, 2022	Sep. 30, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collavorative arrangement right and obligation			New Life is also obligated to pay a non-refundable deferred license fee of an additional $1.0 million at the time of the satisfaction of certain milestones, as well as potential additional milestone payments to the Company of up to $19.0 million subject to the achievement of certain development and commercialization milestones. In addition, during the Royalty Term (as defined below), New Life is obligated to pay the Company tiered double-digit royalties ranging from 12% to 30% based on annual net sales of Products in the Exclusive Territory. The “Royalty Term” means, on a Product-by-Product and a country-by-country basis in the Exclusive Territory, the period commencing on the date of the first commercial sale (subject to certain conditions) of such Product in such country in the Exclusive Territory and continuing until New Life ceases commercialization of such Product in the DPN Field.
Performance obligation			$ 1
Collaboration revenue			0.3	$ 0.5
License Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds for negotiate license agreement		$ 0.5
New Life Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds for negotiate license agreement	$ 0.5
Future milestone payments			1
Milestone payments			$ 19
New Life Agreement [Member] | Minimum [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties, percentage	12%
New Life Agreement [Member] | Maximum [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties, percentage	30%

Schedule of Warrants Outstandin

Schedule of Warrants Outstanding (Details)	Sep. 30, 2022 $ / shares shares
Minimum [Member] | Chanticleer Warrants [Member]
Class of Warrant or Right [Line Items]
Exercise Price | $ / shares	$ 819
Maximum [Member] | Chanticleer Warrants [Member]
Class of Warrant or Right [Line Items]
Exercise Price | $ / shares	$ 1,274
Common Stock Warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	2,827,708
Exercise Price | $ / shares	$ 11.90
Expiration date	Aug. 24, 2026
Unwriter Warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	50,416
Exercise Price | $ / shares	$ 14.875
Expiration date	Aug. 19, 2026
Private Warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	7,549
Exercise Price | $ / shares	$ 410.48
Private Warrants [Member] | Minimum [Member]
Class of Warrant or Right [Line Items]
Expiration date	Oct. 01, 2022
Private Warrants [Member] | Maximum [Member]
Class of Warrant or Right [Line Items]
Expiration date	Mar. 10, 2023
Chanticleer Warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	1,267
Chanticleer Warrants [Member] | Minimum [Member]
Class of Warrant or Right [Line Items]
Expiration date	Apr. 30, 2027
Chanticleer Warrants [Member] | Maximum [Member]
Class of Warrant or Right [Line Items]
Expiration date	Dec. 17, 2028
Series B Warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	3,026
Exercise Price | $ / shares	$ 0.0014
Expiration date	Apr. 16, 2025
Series C Warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	809,243
Exercise Price | $ / shares	$ 44.66
Expiration date	Oct. 16, 2025
Series 3 Warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	276,140
Exercise Price | $ / shares	$ 4.074
Expiration date	Aug. 15, 2027
Warrant [Member]
Class of Warrant or Right [Line Items]
Number of warrants, outstanding | shares	3,975,349

Schedule of Fair Value of Warra

Schedule of Fair Value of Warrants at Issuance (Details) - Series 3 Warrants [Member]	Sep. 30, 2022 $ / shares
Class of Warrant or Right [Line Items]
Exercise price	$ 4.074
Measurement Input, Exercise Price [Member]
Class of Warrant or Right [Line Items]
Exercise price	$ 0.29
Measurement Input, Expected Term [Member]
Class of Warrant or Right [Line Items]
Term	5 years
Measurement Input, Price Volatility [Member]
Class of Warrant or Right [Line Items]
Fair value of warrants issuance	105.5
Measurement Input, Expected Dividend Rate [Member]
Class of Warrant or Right [Line Items]
Fair value of warrants issuance
Measurement Input, Risk Free Interest Rate [Member]
Class of Warrant or Right [Line Items]
Fair value of warrants issuance	2.91

Stockholders_ (Deficit) Equit_2

Stockholders’ (Deficit) Equity (Details Narrative) - USD ($)		1 Months Ended			12 Months Ended
	Aug. 15, 2022	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2021	Sep. 30, 2022	Sep. 30, 2021
Class of Stock [Line Items]
Preferred stock, par value					$ 0.0001	$ 0.0001
Conversion of convertible securities
Preferred stock, shares issued					0	0
Preferred stock, shares outstanding					0	0
Aggregate offering price						$ 42,848,466
Proceeds from the exercise of warrants						$ 2
Series 3 Warrants [Member]
Class of Stock [Line Items]
Warrant exercise price per share					$ 4.074
Fair value of warrants					$ 600,000
Common Stock [Member]
Class of Stock [Line Items]
Number of convertible shares					552,283
Conversion of convertible securities					$ 55
Shares issued upon vesting					24,091	23,351
Sale of common stock						2,903,409
Aggregate offering price						$ 290
Pre-Funded Warrant [Member]
Class of Stock [Line Items]
Sale of stock, shares			2,370,963
Warrant exercise price per share			$ 11.90
Sale of common stock			150,045
Share price			$ 0.0014
Prefuned warrant offering price			11.8986
Common Warrants [Member]
Class of Stock [Line Items]
Warrant exercise price per share			11.90
Share price			$ 11.90
Issuance of common stock warrants			2,521,008
Series B Warrant [Member]
Class of Stock [Line Items]
Sale of common stock						160,167
Warrants exercised						1,705
Proceeds from the exercise of warrants						$ 2
Net share settled						160,173
Chanticleer Warrants [Member]
Class of Stock [Line Items]
Number of warrant issued						13,297
Warrant exercise price per share						$ 0.14
Sale of common stock						13,244
Underwritten Public Offering [Member]
Class of Stock [Line Items]
Gross proceeds from underwritten public offering			$ 30,000,000
Issuance expenses			2,400,000
Net proceeds from underwritten public offering			$ 27,600,000
2021 Public Offering [Member] | Common Stock [Member]
Class of Stock [Line Items]
Sale of common stock						150,019
2021 Public Offering [Member] | Pre Funded Warrants [Member]
Class of Stock [Line Items]
Sale of common stock						150,045
Underwriters [Member]
Class of Stock [Line Items]
Number of warrant issued					50,416
Warrant exercise price per share					$ 14.875
Underwriters [Member] | Over-Allotment Option [Member] | Common Stock [Member]
Class of Stock [Line Items]
Sale price per share of warrants			$ 0.14
Underwriters [Member] | Over-Allotment Option [Member] | Common Stock [Member] | Maximum [Member]
Class of Stock [Line Items]
Issuance of common stock warrants			378,151
Underwriters [Member] | Over-Allotment Option [Member] | Common Warrants [Member]
Class of Stock [Line Items]
Warrant exercise price per share			$ 11.90
Issuance of common stock warrants			378,151
Issuance of additional warrants			306,700
Securities Purchase Agreement [Member] | Accredited Investors [Member] | Series 3 Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Sale of stock, shares		22,275
Preferred stock, par value		$ 100
Number of convertible shares		546,760
Conversion of convertible securities	$ 552,283
Securities Purchase Agreement [Member] | Accredited Investors [Member] | Series 4 Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Sale of stock, shares		225
Preferred stock, par value		$ 100
Number of convertible shares		5,523
Conversion price		$ 4.074
Voting rights per share		each share of Series 4 Convertible Preferred Stock was entitled to 17,857,142 votes per share
Conversion of convertible securities	$ 552,283
Securities Purchase Agreement [Member] | Accredited Investors [Member] | Series 3 Warrants [Member]
Class of Stock [Line Items]
Number of warrant issued		276,140
Gross proceeds from issuance of private placement		$ 2,300,000
Net proceeds from issuance of private placement		$ 2,100,000
Warrant exercise price per share		$ 4.074
Securities Purchase Agreement [Member] | Accredited Investors [Member] | Series 3 Warrants [Member] | Private Placement [Member]
Class of Stock [Line Items]
Issuance costs		$ 100,000
2022 Sales Ageement [Member] | BTIG [Member] | Common Stock [Member]
Class of Stock [Line Items]
Sale of stock, shares					664,537
Gross proceeds from issuance of common stock					$ 2,000,000
Net proceeds from issuance of common stock					$ 1,900,000
2021 Sales Agreement [Member] | BTIG [Member]
Class of Stock [Line Items]
Aggregate offering price				$ 15,900,000
2021 Sales Agreement [Member] | BTIG [Member] | Common Stock [Member]
Class of Stock [Line Items]
Gross proceeds from issuance of common stock						$ 15,900,000
Net proceeds from issuance of common stock						$ 15,200,000
Sale of common stock						532,446

Schedule of Share-based Compens

Schedule of Share-based Compensation Expense (Details) - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share Based Compensation	$ 876,368	$ 1,375,423
Restricted Stock Units (RSUs) [Member] | Research and Development Expense [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share Based Compensation	437,921	422,813
Restricted Stock Units (RSUs) [Member] | General and Administrative Expense [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share Based Compensation	$ 438,447	$ 952,610

Schedule of Restricted Stock Un

Schedule of Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unvested beginning balance	25,948	46,703
Unvested weighted average grant fair value, beginning balance	$ 48.56	$ 50.82
Restricted stock unit, granted	46,478	3,357
Weighted average grant fair value, granted	$ 7.07	$ 33.32
Restricted stock unit, vested	(24,091)	(23,351)
Weighted average grant fair value, vested	$ 49.60	$ 50.82
Restricted stock unit, forfeited	(537)	(761)
Weighted average grant fair value, forfeited	$ 50.82	$ 50.82
Unvested ending balance	47,798	25,948
Unvested weighted average grant fair value, ending balance	$ 7.98	$ 48.56

Share-Based Compensation (Detai

Share-Based Compensation (Details Narrative) - USD ($) $ in Millions	1 Months Ended			12 Months Ended
	Dec. 31, 2021	Mar. 31, 2021	Jul. 31, 2020	Sep. 30, 2022	Sep. 30, 2021
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restricted stock units and vesting rights, description	In December of 2021, 46,478 RSUs were granted, 100% of which vest on January 1, 2023.	In March of 2021, an additional 3,357 RSUs were granted, 50% of which vested on March 25, 2022 and the remaining 50% vest on March 25, 2023.	In July of 2020, 46,703 restricted stock units (“RSUs”) were granted, 50% of which vested on April 2, 2021 and the remaining 50% vested on April 2, 2022.
Number of restricted stock units	46,478	3,357	46,703
Unrecognized compensation expense				$ 0.1
Restricted Stock Units (RSUs) [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted average period				1 year
Common Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of restricted stock units				24,091	23,351
2020 Omnibus Equity Incentive Plan [Member] | Common Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares available for issuance				172,323

Schedule of Deferred Tax Assets

Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Net operating loss carryforwards	$ 25,858,311	$ 21,398,036
Research and development credit carryforwards	2,151,942	1,263,451
Amortization	2,897,388
Share-based compensation	66,832	146,192
Operating lease liability	71,748	26,570
Accrued expenses and other	314,210	144,215
Property and equipment	4,790	3,039
Gross deferred tax assets	31,365,221	22,981,503
Less: valuation allowance	(31,293,092)	(22,946,868)
Deferred tax assets	72,129	34,635
Operating lease right-of-use asset	(72,129)	(34,635)
Net deferred tax assets

Schedule of Effective Income Ta

Schedule of Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
U.S. federal statutory rate	(21.00%)	(21.00%)
State taxes, net of federal benefit	(6.00%)	(6.60%)
Change in valuation allowance	28.10%	26.40%
Research and development credit	(3.00%)
Permanent differences	0.70%	(0.10%)
Foreign tax rate differential	0.80%	0.70%
Other	0.40%	0.60%
Effective income tax rate

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Aug. 31, 2022
Operating Loss Carryforwards [Line Items]
Tax credit carryforwards	$ 2,151,942	$ 1,263,451
Increase in valuation allowance	8,300,000	$ 14,300,000
Exercise tax			1%
Minimum [Member]
Operating Loss Carryforwards [Line Items]
Corporate alternative tax			15%
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses	94,100,000
Tax credit carryforwards	$ 1,700,000
Tax credit carryforward expire year	2035
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses	$ 94,300,000
Tax credit carryforwards	$ 500,000
Tax credit carryforward expire year	2030
Foreign Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses	$ 7,800,000
Expiration period	expire in 2027

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)		2 Months Ended
	Nov. 09, 2022	Dec. 15, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Subsequent Event [Line Items]
Stockholders' Equity			$ (2,538,719)	$ 22,259,847	$ 3,019,917
Common Stock [Member]
Subsequent Event [Line Items]
Stockholders' Equity			$ 554	$ 430	$ 105
Subsequent Event [Member]
Subsequent Event [Line Items]
Stockholders' Equity		$ 2,500,000
Subsequent Event [Member] | 2022 Sales Agreement [Member]
Subsequent Event [Line Items]
Gross proceeds from issuance of common stock		4,700,000
Net proceeds from issuance of common stock		$ 4,600,000
Subsequent Event [Member] | 2022 Sales Agreement [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Aggregate offering price	$ 1,700,000
Sale of common stock		2,391,989