NeuBase Therapeutics (NBSE) 10-Q 9 Aug 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Aug. 08, 2016
Document And Entity Information
Entity Registrant Name	Ohr Pharmaceutical Inc
Entity Central Index Key	1,173,281
Document Type	10-Q
Trading Symbol	OHRP
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		32,103,969
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
CURRENT ASSETS
Cash	$ 17,623,720	$ 28,697,323
Prepaid expenses and other current assets	231,978	338,713
Total Current Assets	17,855,698	29,036,036
EQUIPMENT, net	214,047	248,753
OTHER ASSETS
Security deposit	12,243	12,243
Intangible assets, net	15,490,916	16,332,863
Goodwill	740,912	740,912
TOTAL ASSETS	34,313,816	46,370,807
CURRENT LIABILITIES
Accounts payable and accrued expenses	3,627,455	1,592,348
Notes payable	130,955	48,063
Contingent consideration	1,535,237	2,239,603
Total Current Liabilities	5,293,647	3,880,014
TOTAL LIABILITIES	5,293,647	3,880,014
STOCKHOLDERS' EQUITY
Preferred stock, Series B; 6,000,000 shares authorized, $0.0001 par value, 0 shares issued and outstanding, respectively
Common stock; 180,000,000 shares authorized, $0.0001 par value, 31,505,203 and 30,331,309 shares issued and outstanding, respectively	3,150	3,033
Additional paid-in capital	106,658,494	100,999,173
Accumulated deficit	(77,641,475)	(58,511,413)
Total Stockholders' Equity	29,020,169	42,490,793
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 34,313,816	$ 46,370,807

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2016	Sep. 30, 2015
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	6,000,000	6,000,000
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	180,000,000	180,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued	31,505,203	30,331,309
Common stock, shares outstanding	31,505,203	30,331,309

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
OPERATING EXPENSES
General and administrative	$ 1,664,882	$ 1,554,997	$ 5,849,374	$ 5,706,831
Research and development	5,637,602	1,496,768	11,757,741	7,416,745
Depreciation and amortization	296,143	283,075	889,959	883,959
Gain on settlement of accounts payable			(710,264)
Impairment of intangibles				338,906
OPERATING LOSS	7,598,627	3,334,840	17,786,810	14,346,441
OTHER INCOME (EXPENSE)
Change in fair value of contingent consideration	(104,844)	20,959	(1,356,770)	3,123,766
Share in losses on investment in joint venture		(30,088)		(97,949)
Other income			3,419	35,813
Interest income (exepnse), net	3,730	(2,028)	10,099	(2,691)
Total Other Income (Expense)	(101,114)	(11,157)	(1,343,252)	3,058,939
LOSS FROM OPERATIONS BEFORE INCOME TAXES	(7,699,741)	(3,345,997)	(19,130,062)	(11,287,502)
PROVISION FOR INCOME TAXES
NET LOSS	$ (7,699,741)	$ (3,345,997)	$ (19,130,062)	$ (11,287,502)
BASIC AND DILUTED LOSS PER SHARE (in dollars per share)	$ (0.24)	$ (0.11)	$ (0.61)	$ (0.41)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
BASIC AND DILUTED (in shares)	31,501,540	30,323,206	31,126,656	27,757,415

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
OPERATING ACTIVITIES
Net loss	$ (19,130,062)	$ (11,287,502)
Adjustments to reconcile net loss to net cash used by operating activities:
Common stock issued for services	1,237,064	506,928
Stock option expense	2,335,197	2,902,558
Change in fair value of contingent consideration	1,356,770	(3,123,766)
Share in losses on investment in joint venture		97,949
Depreciation	48,012	28,082
Amortization of intangible assets	841,947	855,877
Impairment of Intangibles		338,906
Gain on settlement of accounts payable	(710,264)
Changes in operating assets and liabilities
Prepaid expenses and deposits	322,544	(379,010)
Accounts payable and accrued expenses	2,745,372	1,575,997
Net Cash Used in Operating Activities	(10,953,420)	(8,483,981)
INVESTING ACTIVITIES
Investment in joint venture		(100,000)
Purchase of property and equipment	(13,306)	(182,845)
Net Cash Used in Investing Activities	(13,306)	(282,845)
FINANCING ACTIVITIES
Proceeds for issuance of common stock for cash		26,582,998
Proceeds from warrants exercised for cash	26,041	80,003
Repayments of short-term notes payable	(132,918)	(137,050)
Net Cash Provided by/(Used in) Financing Activities	(106,877)	26,525,951
NET CHANGE IN CASH	(11,073,603)	17,759,125
CASH AT BEGINNING OF PERIOD	28,697,323	13,220,494
CASH AT END OF PERIOD	17,623,720	30,979,619
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION CASH PAID FOR:
Interest	4,262	3,924
NON CASH FINANCING ACTIVITIES:
Settlement of contingent consideration	2,061,136
Financing of insurance premiums through issuance of short term notes	$ 215,810	212,400
Common stock issued to settle accounts payable		$ 50,000

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	NOTE 1 - BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include the accounts of Ohr Pharmaceutical, Inc. and its subsidiaries (the “Company”). The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X related to interim period financial statements. Accordingly, these condensed consolidated financial statements do not include certain information and footnotes required by GAAP for complete financial statements. However, 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 June 30, 2016, and for all periods presented herein, have been made. It is suggested that these unaudited consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2015. The results of operations for the quarterly periods ended June 30, 2016 and 2015 are not necessarily indicative of the operating results for the full years. Reclassification has been made to conform to current period presentation which included moving applicable stock option expense from general and administrative expense to research and development expense.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Jun. 30, 2016
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 GAAP 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 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 June 30, 2016 and September 30, 2015, on a recurring basis: Assets and liabilities measured at fair value on a recurring basis at June 30, 2016 Level 1 Level 2 Level 3 Total Contingent stock consideration $ — $ — $ 1,535,237 $ 1,535,237 $ — $ — $ 1,535,237 $ 1,535,237 Assets and liabilities measured at fair value on a recurring basis at September 30, 2015 Level 1 Level 2 Level 3 Total Contingent stock consideration $ — $ — 2,239,603 $ 2,239,603 $ — $ — 2,239,603 $ 2,239,603 The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the financial instruments, measured at fair value on a recurring basis using significant unobservable inputs: Level 3 Reconciliation: Contingent Level 3 assets and liabilities at September 30, 2015 $ 2,239,603 Purchases, sales, issuances and settlements (net) (2,061,136) Mark to market adjustments 1,356,770 Total Level 3 assets and liabilities at June 30, 2016 $ 1,535,237 Recent Accounting Pronouncements Management has considered all recent accounting pronouncements issued since the last audit of the Company’s financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 3 - INTANGIBLE ASSETS Intangible assets at June 30, 2016 and September 30, 2015: June 30, 2016 September License Rights $ 17,712,991 $ 17,712,991 Patent Costs 200,000 200,000 17,912,991 17,912,991 Accumulated Amortization (2,422,075 ) (1,580,128 ) Total Intangible Assets $ 15,490,916 $ 16,332,863 During the three and nine month periods ended June 30, 2016, the Company recognized $279,624 and $841,947, respectively, in amortization expense on the patents and license rights. The amortization expense has been included in research and development expense.

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	9 Months Ended
	Jun. 30, 2016
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	NOTE 4 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES During the nine months ended June 30, 2016, the Company realized a gain of $710,264 related to the settlement of an accounts payable balance.

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTE 5 - NOTES PAYABLE On February 28, 2016, the Company entered into a premium financing arrangement for its directors and officers insurance policy in the amount of $215,810. The financing arrangement bears interest at 7% per annum. As of June 30, 2016, the Company had repaid $84,855 of principal and had paid interest of $4,262.

CAPITAL STOCK

CAPITAL STOCK	9 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
CAPITAL STOCK	NOTE 6 - CAPITAL STOCK Below is a table summarizing the capital stock activity during the nine months ended June 30, 2016 and the shares outstanding as of June 30, 2016: Number Outstanding Weighted- Exercise/Stock Outstanding at September 30, 2015 30,331,309 $ 3.33 Exercise of Warrants 15,278 1.70 Milestone 1 – SKS Acquisition 497,859 4.14 Restricted Stock Issued 660,757 4.12 Outstanding at June 30, 2016 31,505,203 $ 3.36 On December 11, 2015, the Board approved the achievement of Milestone 1 in connection with the ophthalmology assets acquisition by the Company of the privately held SKS Ocular LLC and its affiliate, SKS Ocular 1 LLC (“SKS”). As a result, the Company issued 497,859 shares of its common stock to SKS. The value of the stock issued was $2,061,136, as determined by the $4.14 per share closing sale price of the Company’s common stock on the date of Board approval. On December 11, 2015, pursuant to a consulting agreement, the Board granted 120,000 shares of the Company’s restricted stock under the Company’s 2014 Stock Incentive Plan to Dr. Irach Taraporewala, the Company’s former Chief Technology Officer. The restricted stock will vest in four equal, semiannual installments, beginning on July 16, 2016, subject to Dr. Taraporewala continuously providing consulting services to the Company from the grant date until each such vesting date. On December 29, 2015, the Company issued 6,944 shares of common stock pursuant to an exercise of warrants at $1.95 per share, for gross proceeds of $13,540. On January 9, 2016, the Board granted 130,000 and 350,358 shares of the Company’s restricted stock to Sam Backenroth, Chief Financial Officer and Dr. Jason Slakter, Chief Executive Officer, respectively, 50% of these shares vest on the January 9, 2017 and the remaining 50% vest on January 9, 2018. On January 22, 2016 and March 17, 2016, the Board approved the issuance of 25,399 and 35,000 shares, respectively, of the Company’s restricted stock to a consultant of the Company for services rendered. On May 11, 2016, the Company issued 8,334 shares of common stock pursuant to an exercise of warrants at $1.50 per share, for gross proceeds of $12,501. During the nine months ended June 30, 2016, the Company recognized compensation expense of $1,237,064 for shares issued for services during the current and prior periods.

COMMON STOCK WARRANTS

COMMON STOCK WARRANTS	9 Months Ended
	Jun. 30, 2016
Common Stock Warrants
COMMON STOCK WARRANTS	NOTE 7 - COMMON STOCK WARRANTS Below is a table summarizing the warrants issued and outstanding as of June 30, 2016: Number Weighted- Exercise Price Outstanding at September 30, 2015 746,869 $ 4.75 Exercised (15,278 ) 1.70 Forfeited/ Expired (43,334 ) 6.55 Outstanding at June 30, 2016 688,257 $ 4.71 As of June 30, 2016, the outstanding warrants have an intrinsic value of $112,361.

COMMON STOCK OPTIONS

COMMON STOCK OPTIONS	9 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
COMMON STOCK OPTIONS	NOTE 8 - COMMON STOCK OPTIONS During the three and nine months ended June 30, 2016, the Company recognized $610,822 and $2,335,197 of expense related to options granted, respectively. Unamortized option expense as of June 30, 2016 for all options outstanding amounted to approximately $3,311,810. Below is a table summarizing the options issued and outstanding as of June 30, 2016: Number Outstanding Weighted - Exercise Price Outstanding at September 30, 2015 2,761,001 $ 7.27 Granted 669,275 4.11 Forfeited/Expired (559,208 ) 6.60 Outstanding at June 30, 2016 2,871,068 $ 6.66 Exercisable at June 30, 2016 1,739,962 $ 6.39 As of June 30, 2016, the outstanding options have an intrinsic value of $343,334. The fair value of options granted during the nine months ended June 30, 2016 are estimated at the date of grant using the Black-Scholes option-pricing model and the following assumptions: stock price at valuation ranging from of $3.23 to $5.14, expected term ranging from of 2.75 to 3.25 years, exercise price ranging from $3.23 to $5.14, a risk free interest rate ranging from 1.04 to 1.31 percent, a dividend yield of 0 percent and volatility ranging from 103 to 108 percent. The average vesting period of options issued during the nine month period ended June 30, 2016 is 10.9 months with 36.3 percent of the options vesting at the date of the grant.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 9 - 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 June 30, 2016, 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, 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 closing sale price of the common stock of the Company on May 30, 2014) and (c) an additional 1,493,577 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 liability is adjusted according to management’s assessment. On December 11, 2015, the Board approved the achievement of Milestone 1 and consequently, the Company issued 497,859 shares of its common stock to SKS as partial settlement of the contingent consideration. The value of the stock issued was $2,061,136, as determined by the $4.14 per share closing sale price of the Company’s common stock on the date of Board approval.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 10 – SUBSEQUENT EVENTS On July 12, 2016, the Board approved the achievement of Milestone 2 in connection with the ophthalmology assets acquisition from SKS. Milestone 2 required the completion of a pharmacodynamic study in an animal model showing clinically relevant efficacy from a drug substance released from SKS Microparticles. Consequently, the Company issued 497,859 shares common stock to SKS. On July 12, 2016, the Company approved the issuance of 27,573 shares of restricted common stock to a consultant of the Company for services rendered. 50% of these shares vested immediately, and 25% of these shares will vest on each of October 1, 2016 and January 2, 2017. On July 18, 2016, 73,334 options to purchase common stock were exercised at a price per share of $1.62. Accordingly, the Company issued 73,334 shares of common stock and received gross proceeds of $118,801.

SUMMARY OF SIGNIFICANT ACCOUN16

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP 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 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 June 30, 2016 and September 30, 2015, on a recurring basis: Assets and liabilities measured at fair value on a recurring basis at June 30, 2016 Level 1 Level 2 Level 3 Total Contingent stock consideration $ — $ — $ 1,535,237 $ 1,535,237 $ — $ — $ 1,535,237 $ 1,535,237 Assets and liabilities measured at fair value on a recurring basis at September 30, 2015 Level 1 Level 2 Level 3 Total Contingent stock consideration $ — $ — 2,239,603 $ 2,239,603 $ — $ — 2,239,603 $ 2,239,603 The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the financial instruments, measured at fair value on a recurring basis using significant unobservable inputs: Level 3 Reconciliation: Contingent Level 3 assets and liabilities at September 30, 2015 $ 2,239,603 Purchases, sales, issuances and settlements (net) (2,061,136) Mark to market adjustments 1,356,770 Total Level 3 assets and liabilities at June 30, 2016 $ 1,535,237
Recent Accounting Pronouncements	Recent Accounting Pronouncements Management has considered all recent accounting pronouncements issued since the last audit of the Company’s financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Jun. 30, 2016
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 June 30, 2016 and September 30, 2015, on a recurring basis: Assets and liabilities measured at fair value on a recurring basis at June 30, 2016 Level 1 Level 2 Level 3 Total Contingent stock consideration $ — $ — $ 1,535,237 $ 1,535,237 $ — $ — $ 1,535,237 $ 1,535,237 Assets and liabilities measured at fair value on a recurring basis at September 30, 2015 Level 1 Level 2 Level 3 Total Contingent stock consideration $ — $ — 2,239,603 $ 2,239,603 $ — $ — 2,239,603 $ 2,239,603
Schedule of changes in fair value, including net transfers in and/or out, of the financial instruments, measured at fair value on a recurring basis using significant unobservable inputs	The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the financial instruments, measured at fair value on a recurring basis using significant unobservable inputs: Level 3 Reconciliation: Contingent Level 3 assets and liabilities at September 30, 2015 $ 2,239,603 Purchases, sales, issuances and settlements (net) (2,061,136) Mark to market adjustments 1,356,770 Total Level 3 assets and liabilities at June 30, 2016 $ 1,535,237

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	Intangible assets at June 30, 2016 and September 30, 2015: June 30, 2016 September License Rights $ 17,712,991 $ 17,712,991 Patent Costs 200,000 200,000 17,912,991 17,912,991 Accumulated Amortization (2,422,075 ) (1,580,128 ) Total Intangible Assets $ 15,490,916 $ 16,332,863

CAPITAL STOCK (Tables)

CAPITAL STOCK (Tables)	9 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
Schedule of common stock activity outstanding	Below is a table summarizing the capital stock activity during the nine months ended June 30, 2016 and the shares outstanding as of June 30, 2016: Number Outstanding Weighted- Exercise/Stock Outstanding at September 30, 2015 30,331,309 $ 3.33 Exercise of Warrants 15,278 1.70 Milestone 1 – SKS Acquisition 497,859 4.14 Restricted Stock Issued 660,757 4.12 Outstanding at June 30, 2016 31,505,203 $ 3.36

COMMON STOCK WARRANTS (Tables)

COMMON STOCK WARRANTS (Tables)	9 Months Ended
	Jun. 30, 2016
Common Stock Warrants
Schedule of warrants issued and outstanding	Below is a table summarizing the warrants issued and outstanding as of June 30, 2016: Number Weighted- Exercise Price Outstanding at September 30, 2015 746,869 $ 4.75 Exercised (15,278 ) 1.70 Forfeited/ Expired (43,334 ) 6.55 Outstanding at June 30, 2016 688,257 $ 4.71

COMMON STOCK OPTIONS (Tables)

COMMON STOCK OPTIONS (Tables)	9 Months Ended
	Jun. 30, 2016
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 June 30, 2016: Number Outstanding Weighted - Exercise Price Outstanding at September 30, 2015 2,761,001 $ 7.27 Granted 669,275 4.11 Forfeited/Expired (559,208 ) 6.60 Outstanding at June 30, 2016 2,871,068 $ 6.66 Exercisable at June 30, 2016 1,739,962 $ 6.39

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Recurring [Member] - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Assets and liabilities measured at fair value on a recurring basis
Contingent stock consideration	$ 1,535,237	$ 2,239,603
Total	1,535,237	2,239,603
Fair Value, Inputs, Level 3 [Member]
Assets and liabilities measured at fair value on a recurring basis
Contingent stock consideration	1,535,237	2,239,603
Total	$ 1,535,237	$ 2,239,603

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1)	9 Months Ended
	Jun. 30, 2016USD ($)
Level 3 Reconciliation:
Level 3 assets and liabilities, beginning	$ 2,239,603
Purchases, sales, issuances and settlements (net)	(2,061,136)
Mark to market adjustments	1,356,770
Total Level 3 assets and liabilities, ending	$ 1,535,237

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015
Amortization of intangible assets		$ 841,947	$ 855,877
Patents [Member]
Amortization of intangible assets	$ 279,624	$ 841,947

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
License Rights	$ 17,712,991	$ 17,712,991
Patent Costs	200,000	200,000
Total Intangible Assets,Gross	17,912,991	17,912,991
Accumulated Amortization	(2,422,075)	(1,580,128)
Total Intangible Assets	$ 15,490,916	$ 16,332,863

ACCOUNTS PAYABLE AND ACCRUED 26

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details Narrative)	9 Months Ended
	Jun. 30, 2016USD ($)
Payables and Accruals [Abstract]
Gain on settlement of accounts payable	$ 710,264

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - Financing Arrangement Directors and Officers Insurance [Member]	9 Months Ended
	Jun. 30, 2016USD ($)
Debt issuance date	Feb. 28, 2016
Face amount of notes	$ 215,810
Notes payable, interest rate	7.00%
Principal repaid	$ 84,855
Interest paid	$ 4,262

CAPITAL STOCK (Details Narrativ

CAPITAL STOCK (Details Narrative) - USD ($)	May 11, 2016	Mar. 17, 2016	Jan. 22, 2016	Jan. 09, 2016	Dec. 29, 2015	Dec. 11, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Value of stock issued for acquisitions							$ 2,061,136
Restricted stock issued							660,757
Stock based compensation expense issued for services							$ 1,237,064	$ 506,928
Restricted Common Stock [Member]
Description of vesting rights				50% of these shares vest on the January 9, 2017 and the remaining 50% vest on January 9, 2018.
Warrants [Member]
Value of stock issued for exercise of warrants	$ 12,501				$ 13,540
Number of shares issued	8,334				6,944
Exercise price (in dollars per share)	$ 1.50				$ 1.95		$ 4.71		$ 4.75
Mr. Dr. Irach Taraporewala [Member]
Restricted stock issued						120,000
Sam Backenroth [Member] | Restricted Common Stock [Member]
Number of shares granted				130,000
Dr. Jason Slakter [Member] | Restricted Common Stock [Member]
Number of shares granted				350,358
Consultant [Member] | Restricted Common Stock [Member]
Number of shares issued for services		35,000	25,399

CAPITAL STOCK (Details)

CAPITAL STOCK (Details)	9 Months Ended
	Jun. 30, 2016$ / sharesshares
Outstanding Common Shares
Outstanding, beginning | shares	30,331,309
Exercise of Warrants | shares	15,278
Milestone 1 - SKS Acquisition | shares	497,859
Restricted Stock Issued | shares	660,757
Common stock shares outstanding, ending | shares	31,505,203
Weighted Average Exercise/Stock Price
Stock price, beginning | $ / shares	$ 3.33
Exercise of Warrants | $ / shares	1.70
Milestone 1 - SKS Acquisition | $ / shares	4.14
Restricted Stock Issued | $ / shares	4.12
Stock price, ending | $ / shares	$ 3.36

COMMON STOCK WARRANTS (Details

COMMON STOCK WARRANTS (Details Narrative)	Jun. 30, 2016USD ($)
Warrants [Member]
Intrinsic value of warrants	$ 112,361

COMMON STOCK WARRANTS (Details)

COMMON STOCK WARRANTS (Details) - Warrants [Member]	9 Months Ended
	Jun. 30, 2016$ / sharesshares
Outstanding Warrants
Outstanding, beginning | shares	746,869
Exercised | shares	(15,278)
Forfeited/ Expired | shares	(43,334)
Outstanding, ending | shares	688,257
Weighted Average Exercise Price
Outstanding, beginning | $ / shares	$ 4.75
Exercised | $ / shares	1.70
Forfeited/ Expired | $ / shares	6.55
Outstanding, ending | $ / shares	$ 4.71

COMMON STOCK OPTIONS (Details N

COMMON STOCK OPTIONS (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Sep. 30, 2015
Compensation expense related to options granted	$ 610,822	$ 2,335,197
Unamortized option expense	3,311,810	3,311,810
Intrinsic value of awards	$ 343,334	$ 343,334
Fair Value assumptions:
Stock price	$ 3.36	$ 3.36	$ 3.33
Stock Option [Member]
Fair Value assumptions:
Dividend yield		0.00%
Average vesting period		10 months 27 days
Percent of options vested at date of grant		36.30%
Stock Option [Member] | Lower Range [Member[
Fair Value assumptions:
Stock price	3.23	$ 3.23
Expected term		2 years 9 months
Exercise Price	3.23	$ 3.23
Risk free interest rate		1.04%
Volatility rate		103.00%
Stock Option [Member] | Upper Range [Member]
Fair Value assumptions:
Stock price	5.14	$ 5.14
Expected term		3 years 3 months
Exercise Price	$ 5.14	$ 5.14
Risk free interest rate		1.31%
Volatility rate		108.00%

COMMON STOCK OPTIONS (Details)

COMMON STOCK OPTIONS (Details)	9 Months Ended
	Jun. 30, 2016$ / sharesshares
Options Outstanding
Outstanding, beginning | shares	2,761,001
Granted | shares	669,275
Forfeited/Expired | shares	(559,208)
Outstanding, ending | shares	2,871,068
Exercisable, ending | shares	1,739,962
Weighted Average Exercise Price
Exercise price, beginning | $ / shares	$ 7.27
Granted | $ / shares	4.11
Forfeited/Expired | $ / shares	6.60
Exercise price, ending | $ / shares	6.66
Exercisable, ended | $ / shares	$ 6.39

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative)	9 Months Ended
	Jun. 30, 2016USD ($)shares
Commitments and Contingencies Disclosure [Abstract]
Cash in acquisition | $	$ 3,500,000
Shares of stock issued in acquisition | shares	1,194,862
Shares of stock issued in acquisition, value | $	$ 10,180,224
Number of contingent shares issuable for acquisition | shares	1,493,577

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Jul. 18, 2016	Jul. 12, 2016	Jun. 30, 2016
Milestone 2 - SKS Acquisition			497,859
Subsequent Event [Member]
Milestone 2 - SKS Acquisition		497,859
Options Exercised	73,334
Option Exercise Price	$ 1.62
Shares issued for option exercise	73,334
Gross proceeds from exercise of options	$ 118,801
Subsequent Event [Member] | Consultant [Member]
Restricted common stock approved for issuance		27,573
Vesting rights		50.00%
Subsequent Event [Member] | Consultant [Member] | Vesting 10/1/2016 [Member]
Vesting rights		25.00%
Subsequent Event [Member] | Consultant [Member] | Vesting 01/2/2017 [Member]
Vesting rights		25.00%