Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Mar. 31, 2015 | 11-May-15 | |
Document And Entity Information | ||
Entity Registrant Name | OHR PHARMACEUTICAL INC | |
Entity Central Index Key | 1173281 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -21 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 30,331,309 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2015 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
CURRENT ASSETS | ||
Cash | $32,823,262 | $13,220,494 |
Prepaid expenses and other current assets | 765,918 | 133,527 |
Total Current Assets | 33,589,180 | 13,354,021 |
EQUIPMENT, net | 166,450 | 104,425 |
OTHER ASSETS | ||
Security deposit | 12,243 | 12,243 |
Investment in joint venture | 35,282 | 3,143 |
Intangible assets, net | 16,895,476 | 17,810,400 |
Goodwill | 740,912 | 740,912 |
TOTAL ASSETS | 51,439,543 | 32,025,144 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 1,320,020 | 351,864 |
Notes payable | 189,231 | 43,899 |
Contingent stock consideration | 1,774,552 | 4,877,359 |
Total Current Liabilities | 3,283,803 | 5,273,122 |
TOTAL LIABILITIES | 3,283,803 | 5,273,122 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, Series B; 6,000,000 shares authorized, $0.0001 par value, 0 and 500,000 shares issued and outstanding | ||
Common stock; 180,000,000 shares authorized, $0.0001 par value, 29,958,592 and 25,254,190 shares issued and outstanding, respectively | 2,996 | 2,525 |
Additional paid-in capital | 99,407,797 | 70,063,045 |
Accumulated deficit | -51,255,053 | -43,313,548 |
Total Stockholders' Equity | 48,155,740 | 26,752,022 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $51,439,543 | $32,025,144 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 6,000,000 | 6,000,000 |
Preferred stock, shares issued | 0 | 500,000 |
Preferred stock, shares outstanding | 0 | 500,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 180,000,000 | 180,000,000 |
Common stock, shares issued | 29,958,592 | 25,254,190 |
Common stock, shares outstanding | 29,958,592 | 25,254,190 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
OPERATING EXPENSES | ||||
General and administrative | $3,637,563 | $1,338,401 | $4,558,345 | $1,967,712 |
Research and development | 2,873,263 | 607,880 | 5,513,466 | 1,977,533 |
Depreciation & amortization | 295,262 | 22,102 | 600,884 | 44,631 |
OPERATING LOSS | 6,806,088 | 1,968,383 | 10,672,695 | 3,989,876 |
OTHER INCOME (EXPENSE) | ||||
Interest expense | -1,100 | -1,533 | -513 | |
Change in fair value of contingent consideration | 3,786,193 | 3,102,807 | ||
Share in losses on investment in joint venture | -41,211 | -67,861 | ||
Impairment of Intangibles | -338,906 | -338,906 | ||
Interest income | 564 | 132 | 870 | 213 |
Royalty income | 35,813 | |||
Total Other Income (Expense) | 3,405,540 | 132 | 2,731,190 | -300 |
LOSS FROM OPERATIONS BEFORE INCOME TAXES | -3,400,548 | -1,968,251 | -7,941,505 | -3,990,176 |
PROVISION FOR INCOME TAXES | ||||
NET LOSS | ($3,400,548) | ($1,968,251) | ($7,941,505) | ($3,990,176) |
BASIC AND DILUTED LOSS PER SHARE | ($0.12) | ($0.10) | ($0.30) | ($0.20) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | ||||
BASIC AND DILUTED | 27,713,410 | 20,237,591 | 26,479,538 | 20,053,535 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
OPERATING ACTIVITIES | ||
Net loss | ($7,941,505) | ($3,990,176) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Common stock issued for services | 353,876 | |
Warrants issued for services | 8,559 | 949,243 |
Stock option expense | 2,269,785 | 853,177 |
Change in fair value of contingent consideration | -3,102,807 | |
Share in losses on investment in joint venture | 67,861 | |
Depreciation | 24,866 | 5,842 |
Amortization of intangible assets | 576,018 | 38,789 |
Impairment of Intangibles | 338,906 | |
Changes in operating assets and liabilities | ||
Prepaid expenses and deposits | -419,991 | 2,449 |
Accounts payable and accrued expenses | 1,018,156 | 305,192 |
Net Cash Used in Operating Activities | -6,806,276 | -1,835,484 |
INVESTING ACTIVITIES | ||
Investment in joint venture | -100,000 | |
Purchase of equipment | -86,891 | |
Net Cash Used in Investing Activities | -186,891 | |
FINANCING ACTIVITIES | ||
Proceeds for issuance of common stock for cash | 26,582,998 | |
Proceeds from warrants exercised for cash | 80,005 | 200,752 |
Repayments of short-term notes payable | -67,068 | -14,051 |
Net Cash Provided by (Used in) Financing Activities | 26,595,935 | 186,701 |
NET CHANGE IN CASH | 19,602,768 | -1,648,783 |
CASH AT BEGINNING OF PERIOD | 13,220,494 | 5,122,895 |
CASH AT END OF PERIOD | 32,823,262 | 3,474,112 |
CASH PAID FOR: | ||
Interest | 1,533 | 513 |
Income Taxes | ||
NON CASH FINANCING ACTIVITIES: | ||
Financing of insurance premiums through issuance of short term notes | 212,400 | 194,000 |
Conversion of preferred for common stock | 50 | |
Common stock issued to settle accounts payable | $50,000 | $50,000 |
CONDENSED_FINANCIAL_STATEMENTS
CONDENSED FINANCIAL STATEMENTS | 6 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONDENSED FINANCIAL STATEMENTS | NOTE 1 – CONDENSED FINANCIAL STATEMENTS |
The accompanying consolidated financial statements have been prepared by Ohr Pharmaceutical, Inc. (“the Company”) without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at March 31, 2015, and for all periods presented herein, have been made. | |
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s September 30, 2014 audited consolidated financial statements. The results of operations for the periods ended March 31, 2015 and 2014 are not necessarily indicative of the operating results for the full years. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates subject to change in the near term include impairment (if any) of long-lived assets and fair value of contingent consideration. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
In accordance with Accounting Standards Codification 820 – Fair Value Measurement (“ASC 820”), the carrying value of cash and cash equivalents, accounts receivable, accounts payable and notes payable approximates fair value due to the short-term maturity of these instruments. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: | |||||||||||||||||
Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. | |||||||||||||||||
Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. | |||||||||||||||||
Level 3-Unobservable inputs, where there is little or no market activity for the asset or liability. These inputs reflect the reporting entity’s own beliefs about the assumptions that market participants would use in pricing the asset or liability, based on the best information available in the circumstances. | |||||||||||||||||
The following table presents assets and liabilities that are measured and recognized at fair value as of March 31, 2015 and September 30, 2014, on a recurring basis: | |||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis at March 31, 2015 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Carrying | |||||||||||||||||
Value | |||||||||||||||||
Contingent stock consideration | $ | — | $ | — | $ | 1,774,552 | $ | 1,774,552 | |||||||||
$ | — | $ | — | $ | 1,774,552 | $ | 1,774,552 | ||||||||||
Assets and liabilities measured at fair value on a recurring basis at September 30, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Carrying | |||||||||||||||||
Value | |||||||||||||||||
Contingent stock consideration | $ | — | $ | — | $ | 4,877,359 | $ | 4,877,359 | |||||||||
$ | — | $ | — | $ | 4,877,359 | $ | 4,877,359 | ||||||||||
The following tables present the change in fair value of financial instruments as of March 31, 2015, by caption on the consolidated balance sheets and by ASC 820 valuation hierarchy described above. | |||||||||||||||||
Level 3 Reconciliation: | Contingent | ||||||||||||||||
Stock | |||||||||||||||||
Consideration | |||||||||||||||||
Total level 3 assets and liabilities at September 30, 2014 | $ | 4,877,359 | |||||||||||||||
Purchases, sales, issuances and settlements (net) | — | ||||||||||||||||
Mark to market adjustments | -3,102,807 | ||||||||||||||||
Total level 3 assets and liabilities at March 31, 2015 | $ | $1,774,552 | |||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 6 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
INTANGIBLE ASSETS | NOTE 3 – INTANGIBLE ASSETS | ||||||||
Intangible assets at March 31, 2015 and September 30, 2014, consist of: | |||||||||
March 31, | September 30, | ||||||||
2015 | 2014 | ||||||||
License rights | $ | 17,712,991 | $ | 17,712,991 | |||||
Patent costs | 200,000 | 800,000 | |||||||
17,912,991 | 18,512,991 | ||||||||
Accumulated amortization | (1,017,515 | ) | (702,591 | ) | |||||
Total intangible assets, net | $ | 16,895,476 | $ | 17,810,400 | |||||
During the three and six month periods ended March 31, 2015, the Company recognized $278,032 and $576,018 in amortization expense on the patent and license rights, respectively. | |||||||||
In January 2015, the Company discontinued development of the OHR/AVR118 program. In connection with this decision, the patent portfolio is no longer being maintained and the remaining $339,906 in unamortized patent costs have been written off. |
NOTES_PAYABLE
NOTES PAYABLE | 6 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 4 – NOTES PAYABLE |
On February 28, 2015, the Company entered into a financing arrangement for its directors and officers insurance policy in the amount of $212,400. The financing arrangement bears interest at 6.75% and will be fully paid in 9 months from the date of issuance. As of March 31, 2015, the Company had repaid $23,168 of principal and had paid interest of $1,100 in cash. |
CAPITAL_STOCK
CAPITAL STOCK | 6 Months Ended |
Mar. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
CAPITAL STOCK | NOTE 5 – CAPITAL STOCK |
On October 17, 2014, the Company issued 2,000 common shares in connection with the exercise of warrants at an exercise price of $1.50 for total proceeds of $3,000. | |
On October 29, 2014, the Company issued 4,000 common shares with a fair value of $7.19 per share for consulting services and recognized stock-based compensation expense of $28,760. | |
On December 23, 2014, the Company issued 5,952 common shares as settlement of accounts payable in the amount of $50,000. | |
On January 6, 2015, the Company received a notice of exercise for 16,667 Warrants with an exercise price of $2.85. Accordingly, the Company issued 16,667 common shares for proceeds of $47,500. | |
On January 6, 2015, the Company issued 37,038 shares of common stock at a price of $8.19 per share as compensation for services performed in the amount of $303,341. | |
On January 12, 2015, the Company received a notice of exercise for 10,137 Warrants with an exercise price of $1.65. Accordingly, the Company issued 10,137 common shares for proceeds of $16,727. | |
On January 12, 2015, the Company received a notice of exercise for 2,818 Warrants with an exercise price of $1.65. Accordingly, the Company issued 2,818 common shares for proceeds of $4,650. | |
On January 13, 2015, the Company received a notice of exercise for 4,926 Warrants with an exercise price of $1.65. Accordingly, the Company issued 4,926 common shares for proceeds of $8,128. | |
On January 15, 2015, 66,667 warrants were exercised at an exercise price per share of $1.65 using cashless exercise. Accordingly, the Company issued 54,659 common shares. | |
On February 6, 2015, the Company issued 10,714 restricted shares of common stock at a price of $7.00 per share as compensation for services performed in the amount of $74,998. These shares will vest at the end of each quarter of 2015. During the six months ended March 31, 2015 $18,750 were expensed as compensation of services performed. | |
On February 11, 2015, the Company issued 4,259,259 common stock at a price of $6.75 per share. Accordingly, the Company received net proceeds of approximately $26,582,998. | |
On February 24, 2015, the Company issued 60,000 shares of common stock at a price of $9.78 per share as compensation for services to be performed in the amount of $586,800. These shares vest fifty percent on the first anniversary of the date issued and twenty five percent on each of the next two anniversaries date issued. During the six months ended March 31, 2015 $3,026 were expensed as compensation of services performed. | |
On March 27, 2015, 164,631 warrants were exercised at an exercise price per share of $1.95 using cashless exercise. Accordingly, the Company issued 131,331 common shares. | |
On March 27, 2015, 168,520 warrants were exercised at an exercise price per share of $3.60 using cashless exercise. Accordingly, the Company issued 104,901 common shares. |
COMMON_STOCK_WARRANTS
COMMON STOCK WARRANTS | 6 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Common Stock Warrants | ||||||||||
COMMON STOCK WARRANTS | NOTE 6 – COMMON STOCK WARRANTS | |||||||||
Below is a table summarizing the common stock warrants issued and outstanding as of March 31, 2015: | ||||||||||
Number | Weighted-Average | |||||||||
Outstanding | Exercise Price | |||||||||
Outstanding at September 30, 2014 | 1,947,008 | $ | 3.64 | |||||||
Granted | — | — | ||||||||
Exercised | (436,366 | ) | 2.55 | |||||||
Forfeited | (32,834 | ) | 1.5 | |||||||
Outstanding at March 31, 2015 | 1,477,808 | $ | 4 | |||||||
The outstanding warrants as of March 31, 2015 have an intrinsic value of $177,275. | ||||||||||
During the six month period ended March 31, 2015, 36,548 warrants to purchase common stock at exercise prices ranging from $1.50 to $2.85 were exercised and 36,548 shares of common stock were issued for proceeds of $80,005. In addition, 399,818 warrants to purchase common stock, with exercise prices ranging from $1.95 to $3.60, were exercised via cashless exercise. Accordingly, the Company issued 290,891 shares of common stock for such exercises. A total of 32,834 warrants were forfeited during the six month period ended March 31, 2015. |
COMMON_STOCK_OPTIONS
COMMON STOCK OPTIONS | 6 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||
COMMON STOCK OPTIONS | NOTE 7 – COMMON STOCK OPTIONS | ||||||||||
During the three and six month periods ended March 31, 2015, the Company recognized $1,907,757 and $2,269,785 of expense related to options granted, respectively. Unamortized option expense as of March 31, 2015 for all options outstanding amounted to $5,786,087. | |||||||||||
Below is a table summarizing the options issued and outstanding as of March 31, 2015: | |||||||||||
Number | Weighted-Average | ||||||||||
Outstanding | Exercise Price | ||||||||||
Outstanding at September 30, 2014 | 2,048,335 | $ | 5.43 | ||||||||
Granted | 1,106,000 | 9.04 | |||||||||
Exercised | — | — | |||||||||
Forfeited | (40,000 | ) | 8.39 | ||||||||
Outstanding at March 31, 2015 | 3,114,335 | $ | 6.7 | ||||||||
As of March 31, 2015, the outstanding options have an intrinsic value of $817,000. | |||||||||||
The fair value of options granted are estimated at the date of grant using the Black-Scholes option-pricing model and the following assumptions: stock price at valuation, $2.54; expected term of 3 to 3.25 years, exercise price of $1.50-$10.14, a risk free interest rate of 1.02-1.10 percent, a dividend yield of 0 percent and volatility of 121-128 percent. The average vesting period of shares issued during the six month period ending March 31, 2015 is 2.5 years with 25% of the options vesting at the date of the grant. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8 – COMMITMENTS AND CONTINGENCIES |
Legal Proceedings | |
The Company may become involved in certain legal proceedings and claims which arise in the normal course of business. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the Company’s results of operations, prospects, cash flows, financial position and brand. To the best knowledge of the Company’s management, at March 31, 2015 there are no legal proceedings which the Company believes will have a material adverse effect on its business, results of operations, cash flows or financial condition. | |
Contingent Stock Consideration | |
On May 30, 2014, the Company completed the acquisition of certain assets of SKS Ocular, LLC, and SKS Ocular 1, LLC, including licenses, patents and contracts relating to micro-fabrication polymer-based sustained delivery platforms related to ocular therapeutics and dry age-related macular degeneration animal models, together with biomarkers to support such models. | |
The purchase price consisted of: (a) Cash in the amount of $3,500,000; (b) 1,194,862 shares of the Company’s common stock (valued at $10,180,224 based on the trading price on May 30, 2014 of the Company’s common stock) and (c) an additional 1,493,577 shares (the “contingent shares”) that will be issued contingent to achievement of certain milestones. This contingent consideration has been recorded as a liability of the Company and is reviewed by management for probability and likelihood of the milestones being achieved at each reporting period. The fair value of the liability is adjusted in each reporting period according to management’s assessment (see Note 2). |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 9 – SUBSEQUENT EVENTS |
On April 2, 2015, the Company issued 372,717 shares of common stock pursuant to the cashless exercise of 579,272 warrants to purchase common stock at an exercise price ranging from $1.95 to $3.60. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Use of Estimates | Use of Estimates | ||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates subject to change in the near term include impairment (if any) of long-lived assets and fair value of contingent consideration. | |||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||||||||||||||
In accordance with Accounting Standards Codification 820 – Fair Value Measurement (“ASC 820”), the carrying value of cash and cash equivalents, accounts receivable, accounts payable and notes payable approximates fair value due to the short-term maturity of these instruments. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: | |||||||||||||||||
Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. | |||||||||||||||||
Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. | |||||||||||||||||
Level 3-Unobservable inputs, where there is little or no market activity for the asset or liability. These inputs reflect the reporting entity’s own beliefs about the assumptions that market participants would use in pricing the asset or liability, based on the best information available in the circumstances. | |||||||||||||||||
The following table presents assets and liabilities that are measured and recognized at fair value as of March 31, 2015 and September 30, 2014, on a recurring basis: | |||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis at March 31, 2015 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Carrying | |||||||||||||||||
Value | |||||||||||||||||
Contingent stock consideration | $ | — | $ | — | $ | 1,774,552 | $ | 1,774,552 | |||||||||
$ | — | $ | — | $ | 1,774,552 | $ | 1,774,552 | ||||||||||
Assets and liabilities measured at fair value on a recurring basis at September 30, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Carrying | |||||||||||||||||
Value | |||||||||||||||||
Contingent stock consideration | $ | — | $ | — | $ | 4,877,359 | $ | 4,877,359 | |||||||||
$ | — | $ | — | $ | 4,877,359 | $ | 4,877,359 | ||||||||||
The following tables present the change in fair value of financial instruments as of March 31, 2015, by caption on the consolidated balance sheets and by ASC 820 valuation hierarchy described above. | |||||||||||||||||
Level 3 Reconciliation: | Contingent | ||||||||||||||||
Stock | |||||||||||||||||
Consideration | |||||||||||||||||
Total level 3 assets and liabilities at September 30, 2014 | $ | 4,877,359 | |||||||||||||||
Purchases, sales, issuances and settlements (net) | — | ||||||||||||||||
Mark to market adjustments | -3,102,807 | ||||||||||||||||
Total level 3 assets and liabilities at March 31, 2015 | $ | $1,774,552 | |||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||||||
The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Schedule of assets and liabilities measured and recognized at fair value | The following table presents assets and liabilities that are measured and recognized at fair value as of March 31, 2015 and September 30, 2014, on a recurring basis: | ||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis at March 31, 2015 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Carrying | |||||||||||||||||
Value | |||||||||||||||||
Contingent stock consideration | $ | — | $ | — | $ | 1,774,552 | $ | 1,774,552 | |||||||||
$ | — | $ | — | $ | 1,774,552 | $ | 1,774,552 | ||||||||||
Assets and liabilities measured at fair value on a recurring basis at September 30, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Carrying | |||||||||||||||||
Value | |||||||||||||||||
Contingent stock consideration | $ | — | $ | — | $ | 4,877,359 | $ | 4,877,359 | |||||||||
$ | — | $ | — | $ | 4,877,359 | $ | 4,877,359 | ||||||||||
Schedule of fair value of financial instruments by caption on balance sheet | The following tables present the change in fair value of financial instruments as of March 31, 2015, by caption on the consolidated balance sheets and by ASC 820 valuation hierarchy described above. | ||||||||||||||||
Level 3 Reconciliation: | Contingent | ||||||||||||||||
Stock | |||||||||||||||||
Consideration | |||||||||||||||||
Total level 3 assets and liabilities at September 30, 2014 | $ | 4,877,359 | |||||||||||||||
Purchases, sales, issuances and settlements (net) | — | ||||||||||||||||
Mark to market adjustments | -3,102,807 | ||||||||||||||||
Total level 3 assets and liabilities at March 31, 2015 | $ | $1,774,552 |
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 6 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Schedule of intangible assets | Intangible assets at March 31, 2015 and September 30, 2014, consist of: | ||||||||
March 31, | September 30, | ||||||||
2015 | 2014 | ||||||||
License Rights | $ | 17,712,991 | $ | 17,712,991 | |||||
Patent Costs | 200,000 | 800,000 | |||||||
17,912,991 | 18,512,991 | ||||||||
Accumulated Amortization | (1,017,515 | ) | (702,591 | ) | |||||
Total Intangible Assets | $ | 16,895,476 | $ | 17,810,400 |
COMMON_STOCK_WARRANTS_Tables
COMMON STOCK WARRANTS (Tables) | 6 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Common Stock Warrants | ||||||||||
Schedule of outstanding warrants | Below is a table summarizing the common stock warrants issued and outstanding as of March 31, 2015: | |||||||||
Number | Weighted-Average | |||||||||
Outstanding | Exercise Price | |||||||||
Outstanding at September 30, 2014 | 1,947,008 | $ | 3.64 | |||||||
Granted | — | — | ||||||||
Exercised | (436,366 | ) | 2.55 | |||||||
Forfeited | (32,834 | ) | 1.5 | |||||||
Outstanding at March 31, 2015 | 1,477,808 | $ | 4 | |||||||
The outstanding warrants as of March 31, 2015 have an intrinsic value of $177,275. |
COMMON_STOCK_OPTIONS_Tables
COMMON STOCK OPTIONS (Tables) | 6 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||
Schedule of options issued and outstanding | Below is a table summarizing the options issued and outstanding as of March 31, 2015: | ||||||||||
Number | Weighted-Average | ||||||||||
Outstanding | Exercise Price | ||||||||||
Outstanding at September 30, 2014 | 2,048,335 | $ | 5.43 | ||||||||
Granted | 1,106,000 | 9.04 | |||||||||
Exercised | — | — | |||||||||
Forfeited | (40,000 | ) | 8.39 | ||||||||
Outstanding at March 31, 2015 | 3,114,335 | $ | 6.7 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (Recurring [Member], USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
Assets and liabilities measured at fair value on a recurring basis | ||
Contingent stock consideration - fair value | $1,774,552 | $4,877,359 |
Total | 1,774,552 | 4,877,359 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Contingent stock consideration - fair value | 1,774,552 | 4,877,359 |
Total | $1,774,552 | $4,877,359 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $) | 6 Months Ended |
Mar. 31, 2015 | |
Level 3 Reconciliation: | |
Level 3 assets and liabilities, beginning | $4,877,359 |
Mark to market adjustments | -3,102,807 |
Level 3 assets and liabilities, ending | $1,774,552 |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | Mar. 31, 2015 | Jan. 31, 2015 | Sep. 30, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
License Rights | $17,712,991 | $17,712,991 | |
Patent Costs | 200,000 | 339,906 | 800,000 |
[us-gaap:FiniteLivedIntangibleAssetsGross] | 17,912,991 | 18,512,991 | |
Accumulated Amortization | -1,017,515 | -702,591 | |
Total Intangible Assets | $16,895,476 | $17,810,400 |
INTANGIBLE_ASSETS_Details_Narr
INTANGIBLE ASSETS (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Jan. 31, 2015 | Sep. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization of intangible assets | $278,032 | $576,018 | $38,789 | ||
Patent Costs | $200,000 | $200,000 | $339,906 | $800,000 |
NOTES_PAYABLE_Details_Narrativ
NOTES PAYABLE (Details Narrative) (Financing Arrangement Directors and Officers Insurance [Member], USD $) | 6 Months Ended |
Mar. 31, 2015 | |
Financing Arrangement Directors and Officers Insurance [Member] | |
Debt issuance date | 28-Feb-14 |
Face amount of notes | $212,400 |
Notes payable, interest rate | 6.75% |
Interest Paid | 1,100 |
Principal Payment | $23,168 |
CAPITAL_STOCK_Details_Narrativ
CAPITAL STOCK (Details Narrative) (USD $) | 0 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||
Feb. 24, 2015 | Feb. 11, 2015 | Feb. 06, 2015 | Jan. 15, 2015 | Jan. 13, 2015 | Jan. 06, 2015 | Dec. 23, 2014 | Oct. 29, 2014 | Oct. 17, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 27, 2015 | Mar. 31, 2015 | |
Number of warrants exercised | 66,667 | 4,926 | 16,667 | 2,000 | |||||||||
Warrant exercise price | $1.65 | $1.65 | $2.85 | ||||||||||
Common stock issued in exercise of warrants | $8,128 | $47,500 | $3,000 | ||||||||||
Common stock issued in exercise of warrants, shares | 4,926 | 16,667 | 2,000 | ||||||||||
Common stock issued for services | 303,341 | 28,760 | |||||||||||
Common stock issued for services, shares | 37,038 | 4,000 | |||||||||||
Stock price | $9.78 | $6.75 | $7 | $8.19 | $7.19 | ||||||||
Common stock issued for settlement of accounts payable | 50,000 | ||||||||||||
Common stock issued for settlement of accounts payable, shares | 5,952 | ||||||||||||
Restricted shares vested for professional services, one year vesting | 74,998 | ||||||||||||
Restricted shares vested for professional services, one year vesting, shares | 10,714 | ||||||||||||
Compensation for professational services | 4,259,259 | 353,876 | |||||||||||
Shares sold for cash | 26,582,998 | ||||||||||||
Restricted shares issued for employee compensation, three year vesting | 586,800 | ||||||||||||
Restricted shares issued for employee compensation, three year vesting, shares | 60,000 | ||||||||||||
Service 1 | |||||||||||||
Compensation for professational services | 18,750 | ||||||||||||
Service 2 | |||||||||||||
Compensation for professational services | 3,026 | ||||||||||||
Warrant 1 | |||||||||||||
Number of warrants exercised | 164,631 | 10,137 | |||||||||||
Warrant exercise price | $1.65 | $1.95 | $1.65 | ||||||||||
Common stock issued in exercise of warrants | 16,727 | ||||||||||||
Common stock issued in exercise of warrants, shares | 131,331 | 10,137 | |||||||||||
Warrant 2 | |||||||||||||
Number of warrants exercised | 168,520 | 2,818 | |||||||||||
Warrant exercise price | $1.65 | $3.60 | $1.65 | ||||||||||
Common stock issued in exercise of warrants | $4,650 | ||||||||||||
Common stock issued in exercise of warrants, shares | 104,901 | 2,818 |
COMMON_STOCK_WARRANTS_Details
COMMON STOCK WARRANTS (Details) (USD $) | 6 Months Ended | |||
Mar. 31, 2015 | Jan. 15, 2015 | Jan. 13, 2015 | Jan. 06, 2015 | |
Weighted Average Exercise Price | ||||
Warrant exercise price | $1.65 | $1.65 | $2.85 | |
Warrant exercise price | $1.65 | $1.65 | $2.85 | |
Warrants [Member] | ||||
Outstanding Warrants | ||||
Outstanding, beginning | 1,947,008 | |||
Granted | ||||
Exercised | -436,366 | |||
Expired | -32,834 | |||
Outstanding, ending | 1,477,808 | |||
Weighted Average Exercise Price | ||||
Warrant exercise price | $3.64 | |||
Granted | ||||
Exercised | $2.55 | |||
Expired | $1.50 | |||
Warrant exercise price | $4 |
COMMON_STOCK_WARRANTS_Details_
COMMON STOCK WARRANTS (Details Narrative) (USD $) | 0 Months Ended | 6 Months Ended | ||
Jan. 13, 2015 | Jan. 06, 2015 | Oct. 17, 2014 | Mar. 31, 2015 | |
Intrinsic value of warrants | $177,275 | |||
Common stock issued in exercise of warrants, shares | 4,926 | 16,667 | 2,000 | |
Common stock issued in exercise of warrants | 8,128 | 47,500 | 3,000 | |
Cash Exercise | ||||
Common stock issued in exercise of warrants, shares | 36,548 | |||
Common stock issued in exercise of warrants | $80,005 | |||
Warrants exercised | 36,548 | |||
Cash Exercise | Minimum [Member] | ||||
Exercise price Of warrants | $1.50 | |||
Cash Exercise | Maximum [Member] | ||||
Exercise price Of warrants | $2.85 | |||
Cashless Excercise | ||||
Common stock issued in exercise of warrants, shares | 290,891 | |||
Warrants exercised | 399,818 | |||
Expired | 32,834 | |||
Cashless Excercise | Minimum [Member] | ||||
Exercise price Of warrants | $1.95 | |||
Cashless Excercise | Maximum [Member] | ||||
Exercise price Of warrants | $3.60 |
COMMON_STOCK_OPTIONS_Details
COMMON STOCK OPTIONS (Details) (USD $) | 6 Months Ended |
Mar. 31, 2015 | |
Options Outstanding | |
Outstanding, beginning | 2,048,335 |
Granted | |
Excercised | 1,106,000 |
Forfeited | -40,000 |
Outstanding, ended | 3,114,335 |
Weighted Average Exercise Price | |
Exercise price, beginning | $5.43 |
Exercise price, grants | |
Exercise price, exercised | $9.04 |
Exercise price, forfeited | $8.39 |
Exercise price, ending | $6.70 |
COMMON_STOCK_OPTIONS_Details_N
COMMON STOCK OPTIONS (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2015 | Mar. 31, 2015 | |
Unamortized option expense | $5,786,087 | $5,786,087 |
Intrinsic value of awards | 817,000 | 817,000 |
Employee Stock Option [Member] | ||
Stock based compensation expense | $1,907,757 | $2,269,785 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $) | 0 Months Ended |
30-May-14 | |
Commitments and Contingencies Disclosure [Abstract] | |
Shares of stock issued in acquisition | 1,194,862 |
Number of contingent shares issuable for acquisition | 1,493,577 |
Purchase Price | |
Cash at closing | $3,500,000 |
Stock Issued | $10,180,224 |
SUBSEQUENT_EVENTS_Details_Narr
SUBSEQUENT EVENTS (Details Narrative) (USD $) | 0 Months Ended | ||||
Jan. 13, 2015 | Jan. 06, 2015 | Oct. 17, 2014 | Apr. 02, 2015 | Jan. 15, 2015 | |
Subsequent Event [Line Items] | |||||
Warrant exercise price | $1.65 | $2.85 | $1.65 | ||
Common stock issued in exercise of warrants, shares | 4,926 | 16,667 | 2,000 | ||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Warrants exercised | 579,272 | ||||
Common stock issued in exercise of warrants, shares | 372,717 | ||||
Subsequent Event [Member] | Minimum [Member] | |||||
Subsequent Event [Line Items] | |||||
Warrant exercise price | 1.95 | ||||
Subsequent Event [Member] | Maximum [Member] | |||||
Subsequent Event [Line Items] | |||||
Warrant exercise price | 3.6 |