NeuBase Therapeutics (NBSE) 10-Q 15 May 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2018	May 15, 2018
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	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		56,466,428
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
CURRENT ASSETS
Cash	$ 5,215,247	$ 12,801,085
Prepaid expenses and other current assets	622,184	223,278
Total Current Assets	5,837,431	13,024,363
EQUIPMENT, net	20,448	63,757
OTHER ASSETS
Security deposit		12,243
Intangible assets, net	13,529,626	14,087,602
Goodwill		740,912
TOTAL ASSETS	19,387,505	27,928,877
CURRENT LIABILITIES
Accounts payable and accrued expenses	1,444,465	4,827,525
Notes payable	287,902	106,387
Total Current Liabilities	1,732,367	4,933,912
Long-term liabilities		150,000
TOTAL LIABILITIES	1,732,367	5,083,912
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, 56,466,428 and 56,196,428 shares issued and outstanding, respectively	5,647	5,619
Additional paid-in capital	132,074,223	130,927,953
Accumulated deficit	(114,424,732)	(108,088,607)
Total Stockholders' Equity	17,655,138	22,844,965
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 19,387,505	$ 27,928,877

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Sep. 30, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	6,000,000	6,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ .0001	$ .0001
Common stock, shares authorized	180,000,000	180,000,000
Common stock, shares issued	56,466,428	56,196,428
Common stock, shares outstanding	56,466,428	56,196,428

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
OPERATING EXPENSES
General and administrative	$ 591,184	$ 1,404,061	$ 2,101,216	$ 3,150,417
Research and development	1,801,946	5,993,928	4,189,677	10,925,072
Depreciation and amortization	278,525	291,875	563,511	590,310
Loss on impairment of goodwill	740,912		740,912
Gain on settlement of liabilities	(1,228,805)		(1,228,805)
OPERATING LOSS	2,183,762	7,689,864	6,366,511	14,665,799
OTHER INCOME (EXPENSE)
Other income (expense)	(17,814)		(17,799)
Interest income (expense), net	16,809	(208)	48,185	73
Total Other Income (Expense)	(1,005)	(208)	30,386	73
LOSS FROM OPERATIONS	(2,184,767)	(7,690,072)	(6,336,125)	(14,665,726)
NET LOSS	$ (2,184,767)	$ (7,690,072)	$ (6,336,125)	$ (14,665,726)
BASIC AND DILUTED LOSS PER SHARE (in dollars per share)	$ (0.04)	$ (0.21)	$ (0.11)	$ (0.43)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
BASIC AND DILUTED (in shares)	56,464,984	36,738,396	56,332,939	34,381,781

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2018	Mar. 31, 2017
OPERATING ACTIVITIES
Net loss	$ (2,184,767)	$ (6,336,125)	$ (14,665,726)
Adjustments to reconcile net loss to net cash used by operating activities:
Common stock issued for services		145,301	633,697
Stock option expense		730,997	846,270
Depreciation		5,535	31,060
Amortization of intangible assets	275,857	557,976	559,250
Gain on settlement of liabilities		1,228,805
Loss on sale of property and equipment		17,814
Loss on impairment of goodwill	740,912	740,912
Changes in operating assets and liabilities
Prepaid expenses and other current assets		(43,609)	310,429
Accounts payable and accrued expenses		(4,761,865)	2,386,713
Net Cash Used in Operating Activities		(7,714,259)	(9,898,307)
INVESTING ACTIVITIES
Purchase of property and equipment			(4,833)
Net Cash Provided by/ (Used in) Investing Activities			(4,833)
FINANCING ACTIVITIES
Proceeds for issuance of common stock for cash			6,846,483
Proceeds from warrants exercised for cash		270,000	118,801
Repayments of short-term notes payable		(141,579)	(87,798)
Net Cash Provided by/ (Used in) Financing Activities		128,421	6,877,486
NET CHANGE IN CASH		(7,585,838)	(3,025,654)
CASH AT BEGINNING OF PERIOD		12,801,085	12,546,890
CASH AT END OF PERIOD	$ 5,215,247	5,215,247	9,521,236
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION CASH PAID FOR:
Interest		2,899	798
Income Taxes
NON CASH FINANCING ACTIVITIES:
Financing of insurance premiums through issuance of short term notes		$ 323,094	$ 261,326

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Mar. 31, 2018
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 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 March 31, 2018, 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, 2017. The results of operations for the quarterly periods ended March 31, 2018 and 2017 are not necessarily indicative of the operating results for the full years.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN	6 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN 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. Impairment of Long-Lived Assets Long-lived tangible assets and definite-lived intangible assets are reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company uses an estimate of undiscounted future net cash flows of the assets over the remaining useful lives in determining whether the carrying value of the assets is recoverable. If the carrying values of the assets exceed the expected future cash flows of the assets, the Company recognizes an impairment loss equal to the difference between the carrying values of the assets and their estimated fair values. Impairment of long-lived assets is assessed at the lowest levels for which there are identifiable cash flows that are independent from other groups of assets. The evaluation of long-lived assets requires the Company to use estimates of future cash flows. However, actual cash flows may differ from the estimated future cash flows used in these impairment tests. At March 31, 2018, the Company determined that due to the significant drop in the price of the Company’s common stock, an impairment analysis was required for the intangible assets and goodwill. The Company performed the tests and concluded that the intangible assets were not impaired and the goodwill was impaired and wrote off the $740,912 goodwill balance. Fair Value of Financial Instruments In accordance with ASC 820, the carrying value of cash and cash equivalents, 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. There are no assets and liabilities that are measured and recognized at fair value as of March 31, 2018 and September 30, 2017, on a recurring basis. Recent Accounting Pronouncements The Company has implemented all new relevant accounting pronouncements that are in effect through the date of these financial statements. The pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its consolidated financial position or results of operations. Going Concern To date, the Company has no revenue from product sales and management expects continuing operating losses and negative cash outflows in the future. 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 ordinary course of business. Management expects to seek additional funds through equity or debt financings or through collaboration, licensing transactions or other sources. The Company may be unable to obtain equity or debt financings or enter into collaboration or licensing transactions. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 3 – INTANGIBLE ASSETS Intangible assets at March 31, 2018 and September 30, 2017: March 31, September 30, License Rights $ 17,712,991 $ 17,712,991 Patent Costs 200,000 200,000 17,912,991 17,912,991 Accumulated Amortization (4,383,365 ) (3,825,389 ) Total Intangible Assets $ 13,529,626 $ 14,087,602 During the three month and six month periods ended March 31, 2017 the Company recognized $276,551, and $559,250, respectively, in amortization expense on the patents and license rights. During the three month and six month periods ended March 31, 2018 the Company recognized $275,857, and $557,976, respectively, in amortization expense on the patents and license rights. The amortization expense has been included in research and development expense.

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTE 4 – NOTES PAYABLE On February 28, 2017, the Company entered into a premium financing arrangement for its directors’ and officers’ insurance policy in the amount of $261,326. The financing arrangement bears interest at 7.5% per annum. The Company has repaid the note in full in the amount of $261,326 of principal, of which $106,387 was paid in the six months ended March 31, 2018. The Company has paid total interest of $9,067. On February 28, 2018, the Company entered into a premium financing arrangement for its directors’ and officers’ insurance policy in the amount of $323,094. The financing arrangement bears interest at a rate of 7.29% per annum. As of March 31, 2018, the Company had repaid $35,192 of the loan and had recorded interest of $1,807.

EQUITY

EQUITY	6 Months Ended
	Mar. 31, 2018
Equity [Abstract]
EQUITY	NOTE 5 – EQUITY Common Stock Warrants During the six months ended March 31, 2018, 270,000 shares of common stock were issued in connection with the exercise of warrants issued and sold to various purchasers as part of a registered offering that closed in April 2017. The warrants were exercised at a price of $1.00 per share, and $270,000 in cash was received during the six months ended March 31, 2018. Below is a table summarizing the warrants issued and outstanding as of March 31, 2018 (“Price” reflects the weighted average exercise price per share): Warrants Price Outstanding at September 30, 2017 16,178,110 $ 1.23 Granted Investor warrants — — Stock-based compensation warrants 250,000 1.00 Exercised Investor warrants (270,000 ) 1.00 Stock-based compensation warrants — — Forfeited or expired Investor warrants — — Stock-based compensation warrants (40,000 ) 4.32 Outstanding at March 31, 2018 16,118,110 $ 1.22 Exercisable at March 31, 2018 16,118,110 $ 1.22 As of March 31, 2018, the warrants have a weighted average remaining term of 3.95 years and have no intrinsic value. Stock Based Compensation The Company’s Consolidated 2016 Stock Plan (“the Plan”) provides for granting stock options and restricted stock awards to employees, directors and consultants of the Company. The Company uses the Black-Scholes pricing model for determining the fair value of stock options and warrants granted as share based compensation. The following assumptions were used to calculate the fair value of the Company’s warrants and options issued during the six month period ended March 31, 2018: Warrants Options Expected term 1.59 to 2 years 3.25 to 5 years Expected volatility 73%-161 % 101 % Expected dividends 0 % 0 % Risk-free rates 1.60%-2.27 % 1.68 % Warrants. During the six month period ended March 31, 2018, the Company recognized $87,108 of expense related to warrants granted as stock based compensation. There is no unamortized expense as of March 31, 2018 for outstanding warrants issued as stock based compensation. Refer to the Common Stock Warrants table within this note for information regarding all outstanding warrants. Options. During the six month period ended March 31, 2018, the Company recognized $643,889 of expense related to options granted. Unamortized option expense as of March 31, 2018 for all options outstanding amounted to $432,763. The Company expects to recognize this compensation cost over a weighted-average period of 1.46 years. Below is a table summarizing the Company’s activity for the six month period ended March 31, 2018 (“Price” reflects the weighted average exercise price per share): Options Price Outstanding at September 30, 2017 2,250,500 $ 5.58 Granted 1,640,000 $ 0.67 Exercised — — Forfeited or expired (524,666 ) $ 6.64 Outstanding at March 31, 2018 3,365,834 $ 3.02 Exercisable at March 31, 2018 2,075,828 $ 4.48 As of March 31, 2018, the outstanding options have a weighted average remaining term of 4.22 years and no intrinsic value. Restricted Stock. Below is a table summarizing the Company’s activity for the six month period ended March 31, 2018: Shares Weighted Nonvested at September 30, 2017 270,179 $ 4.53 Granted — — Vested 270,179 $ 4.53 Forfeited — — Nonvested at March 31, 2018 — —

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 6 – COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company has 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. On February 14, 2018, plaintiff, Jeevesh Khanna, commenced an action in the Southern District of New York, alleging that several current and former officers violated federal securities laws between June 24, 2014 and January 4, 2018. The plaintiffs did not quantify any alleged damages in their complaint but, in addition to attorneys’ fees and costs, they seek to recover damages on behalf of themselves and other persons who purchased or otherwise acquired our stock during the putative class period and purportedly suffered financial harm as a result. We dispute these claims and intend to defend the matter vigorously. This litigation could result in substantial costs and a diversion of management’s resources and attention, which could harm the Company’s business and the vlaue of the Company’s common stock. On May 3, 2018, plaintiff Adele J. Barke, derivatively on behalf of Ohr Pharmaceutical Inc. commenced an action against Michael Ferguson, Orin Hirschman, Thomas M. Riedhammer, June Almenoff and Jason Slakter alleging that the action was brought in the right and for the benefit of Ohr seeking to remedy their “breach of fiduciary duties, corporate waste and unjust enrichment that occurred between June 24, 2014 and the present.” Thereafter the complaint largely reiterated the allegations of the securities class action described above. It does not quantify any alleged damages. The Company and the individuals dispute these claims and intend to defend the matter vigorously. This litigation could result in substantial costs and a diversion of management’s resources and attention, which could harm the Company’s business and the value of the Company’s common stock.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 7 – RELATED PARTY TRANSACTION The Contract Research Organization (“CRO”) that ran the Company’s clinical trial contracted with Jason S. Slakter, M.D., P.C., d/b/a Digital Angiography Reading Center (“DARC”), a well-known digital reading center, which is owned by Dr. Jason Slakter, Ohr’s CEO, pursuant to the Company’s related party transactions policy, with the review and approval of the Audit Committee, to provide digital reading and imaging services in connection with the clinical study. During the six months ended March 31, 2018, and 2017, the Company’s CRO was paid $899,001 and $55,398, respectively, for pass through DARC expenses.

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	6 Months Ended
	Mar. 31, 2018
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	NOTE 8 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES During the six month period ended March 31, 2018, the Company realized a gain of $1,228,805 related to the settlement of accounts payable balances, long term liabilities, and a severance payable to a former director.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9 – SUBSEQUENT EVENTS In April and May 2018, the Company sold or licensed certain assets related to the squalamine program. We received upfront payments and are eligible for additional payments upon the exercise of an option to purchase additional assets, and the achievement of development and regulatory milestones, and future sales.

SUMMARY OF SIGNIFICANT ACCOUN15

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN (Policies)	6 Months Ended
	Mar. 31, 2018
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.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived tangible assets and definite-lived intangible assets are reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company uses an estimate of undiscounted future net cash flows of the assets over the remaining useful lives in determining whether the carrying value of the assets is recoverable. If the carrying values of the assets exceed the expected future cash flows of the assets, the Company recognizes an impairment loss equal to the difference between the carrying values of the assets and their estimated fair values. Impairment of long-lived assets is assessed at the lowest levels for which there are identifiable cash flows that are independent from other groups of assets. The evaluation of long-lived assets requires the Company to use estimates of future cash flows. However, actual cash flows may differ from the estimated future cash flows used in these impairment tests. At March 31, 2018, the Company determined that due to the significant drop in the price of the Company’s common stock, an impairment analysis was required for the intangible assets and goodwill. The Company performed the tests and concluded that the intangible assets were not impaired and the goodwill was impaired and wrote off the $740,912 goodwill balance.
Fair Value of Financial Instruments	Fair Value of Financial Instruments In accordance with ASC 820, the carrying value of cash and cash equivalents, 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. There are no assets and liabilities that are measured and recognized at fair value as of March 31, 2018 and September 30, 2017, on a recurring basis.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company has implemented all new relevant accounting pronouncements that are in effect through the date of these financial statements. The pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its consolidated financial position or results of operations.
Going Concern	Going Concern To date, the Company has no revenue from product sales and management expects continuing operating losses and negative cash outflows in the future. 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 ordinary course of business. Management expects to seek additional funds through equity or debt financings or through collaboration, licensing transactions or other sources. The Company may be unable to obtain equity or debt financings or enter into collaboration or licensing transactions. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	Intangible assets at March 31, 2018 and September 30, 2017: March 31, September 30, License Rights $ 17,712,991 $ 17,712,991 Patent Costs 200,000 200,000 17,912,991 17,912,991 Accumulated Amortization (4,383,365 ) (3,825,389 ) Total Intangible Assets $ 13,529,626 $ 14,087,602

EQUITY (Tables)

EQUITY (Tables)	6 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Schedule of warrants issued and outstanding	Below is a table summarizing the warrants issued and outstanding as of March 31, 2018 (“Price” reflects the weighted average exercise price per share): Warrants Price Outstanding at September 30, 2017 16,178,110 $ 1.23 Granted Investor warrants — — Stock-based compensation warrants 250,000 1.00 Exercised Investor warrants (270,000 ) 1.00 Stock-based compensation warrants — — Forfeited or expired Investor warrants — — Stock-based compensation warrants (40,000 ) 4.32 Outstanding at March 31, 2018 16,118,110 $ 1.22 Exercisable at March 31, 2018 16,118,110 $ 1.22
Schedule of assumptions used to calculate the fair value of warrants and options issued	The following assumptions were used to calculate the fair value of the Company’s warrants and options issued during the six month period ended March 31, 2018: Warrants Options Expected term 1.59 to 2 years 3.25 to 5 years Expected volatility 73%-161 % 101 % Expected dividends 0 % 0 % Risk-free rates 1.60%-2.27 % 1.68 %
Schedule of stock option activity	Below is a table summarizing the Company’s activity for the six month period ended March 31, 2018 (“Price” reflects the weighted average exercise price per share): Options Price Outstanding at September 30, 2017 2,250,500 $ 5.58 Granted 1,640,000 $ 0.67 Exercised — — Forfeited or expired (524,666 ) $ 6.64 Outstanding at March 31, 2018 3,365,834 $ 3.02 Exercisable at March 31, 2018 2,075,828 $ 4.48
Schedule of restricted stock activity	Below is a table summarizing the Company’s activity for the six month period ended March 31, 2018: Shares Weighted Nonvested at September 30, 2017 270,179 $ 4.53 Granted — — Vested 270,179 $ 4.53 Forfeited — — Nonvested at March 31, 2018 — —

SUMMARY OF SIGNIFICANT ACCOUN18

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN (Detail Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2018
Summary Of Significant Accounting Policies And Going Concern Detail Narrative
Loss on impairment of goodwill	$ 740,912	$ 740,912

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
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	(4,383,365)	(3,825,389)
Total	$ 13,529,626	$ 14,087,602

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 275,857	$ 276,551	$ 557,976	$ 559,250

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)	Feb. 28, 2018	Feb. 28, 2017	Mar. 31, 2018	Mar. 31, 2017
Repayments of debt			$ 141,579	$ 87,798
2017 Financing Arrangement Directors and Officers Insurance [Member]
Debt issuance date	Feb. 28, 2018	Feb. 28, 2017
Face amount of notes	$ 323,094	$ 261,326
Notes payable, interest rate	7.29%	7.50%
Interest paid			1,807	9,067
Repayments of debt			$ 106,387	$ 261,326

EQUITY (Details)

EQUITY (Details) - Warrants [Member]	6 Months Ended
	Mar. 31, 2018$ / sharesshares
Warrants [Roll Forward]
Outstanding at beginning | shares	16,178,110
Granted - Stock-based compensation warrants | shares	250,000
Exercised - Investor warrants | shares	(270,000)
Forfeited or expired - Stock-based compensation warrants | shares	(40,000)
Outstanding at end | shares	16,118,110
Exercisable at end | shares	16,118,110
Warrants, Weighted Average Grant Date Fair Value [Abstract]
Outstanding at beginning | $ / shares	$ 1.23
Granted - Stock-based compensation warrants | $ / shares	1
Exercised - Investor warrants | $ / shares	1
Forfeited or expired - Stock-based compensation warrants | $ / shares	4.32
Outstanding at end | $ / shares	1.22
Exercisable at end | $ / shares	$ 1.22

EQUITY (Details 1)

EQUITY (Details 1)	6 Months Ended
	Mar. 31, 2018
2016 Stock Plan [Member] | Stock Option [Member]
Expected volatility	101.00%
Expected dividends	0.00%
Risk-free rates	1.68%
2016 Stock Plan [Member] | Stock Option [Member] | Minimum [Member]
Expected term	3 years 3 months
2016 Stock Plan [Member] | Stock Option [Member] | Maximum [Member]
Expected term	5 years
Warrants [Member]
Expected volatility - maximum	161.00%
Expected volatility - minimum	73.00%
Expected dividends	0.00%
Risk-free rates - minimum	1.60%
Risk-free rates - minimum	2.27%
Warrants [Member] | Minimum [Member]
Expected term	1 year 7 months 2 days
Warrants [Member] | Maximum [Member]
Expected term	2 years

EQUITY (Details 2)

EQUITY (Details 2) - $ / shares	1 Months Ended	6 Months Ended
	Oct. 31, 2017	Mar. 31, 2018
Options, Outstanding [Roll Forward]
Granted	1,640,000
2016 Stock Plan [Member] | Stock Option [Member]
Options, Outstanding [Roll Forward]
Outstanding, beginning	2,250,500	2,250,500
Granted		1,640,000
Forfeited or expired		(524,666)
Outstanding, ending		3,365,834
Exercisable, ending		2,075,828
Options, Outstanding, Weighted Average Exercise Price [Rollforward]
Exercise price, beginning	$ 5.58	$ 5.58
Granted		0.67
Forfeited or expired		6.64
Exercise price, ending		3.02
Exercisable, ended		$ 4.48

EQUITY (Details 3)

EQUITY (Details 3) - 2016 Stock Plan [Member] - Restricted Stock [Member]	6 Months Ended
	Mar. 31, 2018$ / sharesshares
Restricted Stock [Roll Forward]
Outstanding at beginning | shares	270,179
Vested | shares	270,179
Restricted Stock, Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding at beginning | $ / shares	$ 4.53
Vested | $ / shares	$ 4.53

EQUITY (Details Narrative)

EQUITY (Details Narrative) - USD ($)	1 Months Ended	6 Months Ended
	Oct. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Stock-based compensation expense		$ 730,997	$ 846,270
Grant of stock options	1,640,000
Exercisable percentage	33.00%
One Key Consultant [Member]
Exercise price - stock options	$ 0.67
Granted - warrants	250,000
Warrant term	2 years
Exercise price of warrants	$ 1
Warrants [Member]
Exercise of warrants for cash		$ 270,000
Exercise of warrants for cash, shares		270,000
Exercised price of warrants		$ 1
Weighted average contractual term - warrants		4 years 11 months 12 days
Granted - warrants		250,000
Restricted Stock [Member]
Stock-based compensation expense		$ 145,301
Stock Option [Member]
Stock-based compensation expense		643,889
Unrecognized compensation cost		$ 432,763
Unrecognized compensation cost recognize period		1 year 5 months 8 days
Weighted average remaining term - options		4 years 2 months 21 days
Stock Option [Member] | One Key Consultant [Member]
Grant of stock options	80,000
Exercisable percentage	25.00%
Stock Option [Member] | One Key Consultant [Member] | Milestone 1 [Member]
Forfeitures (shares)		20,000
Options vested		60,000
Stock Option [Member] | One Key Consultant [Member] | Each of October 16, 2018
Exercisable percentage	33.00%
Stock Option [Member] | One Key Consultant [Member] | Each of October 16, 2019
Exercisable percentage	33.00%
Stock Compensation [Member] | Warrants [Member]
Stock-based compensation expense		$ 87,108

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narratives) - USD ($)	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Dr. Jason Slakter [Member]
Amount invoiced for services - related party	$ 899,001	$ 55,398

ACCOUNTS PAYABLE AND ACCRUED 28

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2018
Accounts Payable And Accrued Expenses Details Narrative
Gain on settlement of accounts payable	$ (1,228,805)	$ (1,228,805)