Aeolus Pharmaceuticals (AOLS) POS AM 2 Jun 14 Prospectus update (post-effective amendment) Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Mar. 31, 2014
Document And Entity Information	'
Entity Registrant Name	'AEOLUS PHARMACEUTICALS, INC.
Entity Central Index Key	'0001261734
Document Type	'POS AM
Document Period End Date	31-Mar-14
Amendment Flag	'false
Current Fiscal Year End Date	'--09-30
Is Entity a Well-known Seasoned Issuer?	'No
Is Entity a Voluntary Filer?	'No
Is Entity's Reporting Status Current?	'Yes
Entity Filer Category	'Smaller Reporting Company

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Mar. 31, 2014	Sep. 30, 2013	Sep. 30, 2012
In Thousands, unless otherwise specified
ASSETS	'	'	'
Cash and cash equivalents	$520	$869	$281
Accounts receivable	1,839	370	781
Deferred subcontractor cost	1,402	656	101
Prepaids and other current assets	96	39	61
Total current assets	3,857	1,935	1,224
Investment in CPEC LLC	32	32	32
Total assets	3,889	1,966	1,256
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	'	'	'
Accounts payable and accrued expenses	2,394	579	2,167
Deferred revenue	1,458	682	105
Total current liabilities	3,852	1,261	2,272
Warrant liability	'	0	19,319
Total liabilities	3,852	1,261	21,591
Commitments and Contingencies (Notes E and I and F)	'	'	'
Stockholders' equity (deficit):	'	'	'
Preferred stock, $.01 par value per share, 10,000,000 shares authorized: Series A nonredeemable convertible preferred stock, 1,250,000 shares authorized as of September 30, 2013 and 2012, respectively; no shares issued and outstanding as of September 30, 2013 and 2012, respectively	'	0	0
Preferred stock, $.01 par value per share, 10,000,000 shares authorized: Series B nonredeemable convertible preferred stock, 1,600,000 and 600,000 shares authorized as of September 30, 2013 and 2012, respectively; 526,080 and 526,080 shares issued and outstanding as of September 30, 2013 and 2012, respectively	'	5	5
Common stock, $.01 par value per share, 200,000,000 shares authorized; 134,550,068 and 62,731,963 shares issued and outstanding at March 31, 2014 , September 30, 2013 and 2012, respectively	1,346	1,346	627
Additional paid-in capital	183,739	183,276	159,747
Accumulated deficit	-185,053	-183,922	-180,714
Total stockholders' equity (deficit)	37	705	-20,335
Total liabilities and stockholders' equity (deficit)	3,889	1,966	1,256
Series A nonredeemable convertible preferred stock	'	'	'
Stockholders' equity (deficit):	'	'	'
Preferred stock, $.01 par value per share, 10,000,000 shares authorized: Series B nonredeemable convertible preferred stock, 1,600,000 and 600,000 shares authorized as of September 30, 2013 and 2012, respectively; 526,080 and 526,080 shares issued and outstanding as of September 30, 2013 and 2012, respectively	0	0	'
Series B nonredeemable convertible preferred stock	'	'	'
Stockholders' equity (deficit):	'	'	'
Preferred stock, $.01 par value per share, 10,000,000 shares authorized: Series B nonredeemable convertible preferred stock, 1,600,000 and 600,000 shares authorized as of September 30, 2013 and 2012, respectively; 526,080 and 526,080 shares issued and outstanding as of September 30, 2013 and 2012, respectively	$5	$5	'

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2014	Sep. 30, 2013	Sep. 30, 2012
Stockholder's deficit:	'	'	'
Preferred stock par value	$0.01	$0.01	$0.01
Preferred stock, authorized shares	10,000,000	10,000,000	10,000,000
Common stock, par value	$0.01	$0.01	$0.01
Common stock, Authorized	200,000,000	200,000,000	200,000,000
Common stock, Issued	134,550,068	134,550,068	62,731,963
Common stock, outstanding	134,550,068	134,550,068	62,731,963
Series A nonredeemable convertible preferred stock	'	'	'
Stockholder's deficit:	'	'	'
Preferred stock, authorized shares	1,250,000	1,250,000	'
Preferred stock shares issued	0	0	'
Preferred stock shares outstanding	0	0	'
Series B nonredeemable convertible preferred stock	'	'	'
Stockholder's deficit:	'	'	'
Preferred stock, authorized shares	1,600,000	600,000	'
Preferred stock shares issued	526,080	526,080	'
Preferred stock shares outstanding	526,080	526,080	'

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Sep. 30, 2013	Sep. 30, 2012
Revenue:	'	'	'	'	'	'
Contract revenue	$1,438	$859	$2,231	$2,201	$3,928	$7,293
Costs and expenses:	'	'	'	'	'	'
Research and development	1,173	618	1,880	1,787	3,360	6,468
General and administrative	702	1,003	1,483	1,659	3,266	3,196
Total costs and expenses	1,875	1,621	3,363	3,446	6,626	9,664
Loss from operations	-437	-762	-1,132	-1,245	-2,698	-2,371
Warrant liability gain (charges)/ Non-cash financing charges and change in fair value of warrants (Note B)	0	-5,020	0	-510	-510	4,069
Net income (loss)	-437	-5,782	-1,132	-1,755	-3,208	1,698
Net income (loss) per weighted share attributable to common stockholders - basic	-437	-5,782	-1,132	-1,755	-3,208	856
Net income (loss) per weighted share attributable to common stockholders - diluted	($437)	($5,782)	($1,132)	($1,755)	($3,208)	($2,161)
Basic net income (loss) per common share	$0	($0.06)	($0.01)	($0.03)	($0.03)	$0.01
Diluted net income (loss) per common share	$0	($0.06)	($0.01)	($0.03)	($0.03)	($0.03)
Weighted average common shares outstanding:	'	'	'	'	'	'
Basic	134,550	94,425	134,550	69,664	106,554	61,593
Diluted	134,550	94,425	134,550	69,664	106,554	71,041

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	6 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'	'	'
Net income (loss)	($1,132)	($1,755)	($3,208)	$1,698
Adjustments to reconcile net income (loss) to net cash used in operating activities:	'	'	'	'
Depreciation	'	'	6	7
Noncash compensation/ Stock-based compensation	463	309	861	568
Noncash interest and financing costs	'	'	0	17
Change in fair value of warrants	0	510	510	-4,086
Change in assets and liabilities:	'	'	'	'
Accounts receivable	-1,468	-738	411	896
Deferred subcontractor cost	-746	-1,005	-555	-101
Prepaid expenses and other assets	-57	-31	16	-6
Accounts payable and accrued expenses	1,815	-249	-1,588	23
Deferred revenue	776	1,046	577	105
Net cash used in operating activities	-349	-1,913	-2,970	-879
Cash flows from investing activities:	'	'	'	'
Purchase of equipment	'	'	0	0
Net cash used inB investing activities	'	'	0	0
Cash flows from financing activities:	'	'	'	'
Proceeds from issuance of common stock and warrants	0	3,616	3,616	660
Costs related to the issuance of common stock and warrants	0	-58	-58	-18
Net cash provided by financing activities	0	3,558	3,558	642
Net increase (decrease) in cash and cash equivalents	-349	1,645	588	-237
Cash and cash equivalents at beginning of period	869	281	281	518
Cash and cash equivalents at end of period	520	1,926	869	281
Supplemental disclosure of non-cash financing activities:	'	'	'	'
State income taxes	$0	$0	'	'

CONSOLIDATED_STATEMENTS_OF_STO

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIT) (USD $)	Series B Preferred Stock	Common Stock [Member]	Additional Paid-In Capital	Accumulated Deficit	Total
In Thousands, except Share data
Beginning Balance - Amount at Sep. 30, 2011	$5	$605	$158,543	($182,412)	($23,259)
Beginning Balance - Shares at Sep. 30, 2011	526,080	60,470,718	'	'	'
Exercise of warrants, Shares	'	61,079	'	'	'
Exercise of warrants, Amount	'	0	16	0	16
Stock-based compensation	'	'	369	0	369
Issuance of warrants to consultants	'	'	199	0	199
Common stock sales, net of issuance costs, Shares	'	2,200,166	'	'	'
Common stock sales, net of issuance costs, Amount	'	22	620	0	642
Net income	'	'	'	1,698	1,698
Ending Balance, Amount at Sep. 30, 2012	5	627	159,747	-180,714	-20,335
Ending Balance, Shares at Sep. 30, 2012	526,080	62,731,963	'	'	'
Exercise of warrants, Shares	'	57,356,105	'	'	'
Exercise of warrants, Amount	'	574	19,255	0	19,829
Stock-based compensation	'	'	692	0	692
Issuance of warrants to consultants	'	'	169	0	169
Common stock sales, net of issuance costs, Shares	'	14,462,000	'	'	'
Common stock sales, net of issuance costs, Amount	'	145	3,413	0	3,558
Net income	'	'	'	-3,208	-3,208
Ending Balance, Amount at Sep. 30, 2013	$5	$1,346	$183,276	($183,922)	$705
Ending Balance, Shares at Sep. 30, 2013	526,080	134,550,068	'	'	'

A_Organization_Business_and_Su

A. Organization, Business and Summary of Significant Accounting Policies	6 Months Ended			12 Months Ended
	Mar. 31, 2014			Sep. 30, 2013
Notes to Financial Statements	'			'
A. Organization, Business and Summary of Significant Accounting Policies	'			'
				Organization
				The accompanying audited consolidated financial statements include the accounts of Aeolus Pharmaceuticals, Inc. and its wholly-owned subsidiary, Aeolus Sciences, Inc. (collectively “we,” “us,” “Company” or “Aeolus”). All significant intercompany accounts and transactions have been eliminated in consolidation.  Aeolus is a Delaware corporation. The Company’s primary operations are located in Mission Viejo, California.
	Organization
				Business
	The accompanying unaudited condensed consolidated financial statements include the accounts of Aeolus Pharmaceuticals, Inc. and its wholly-owned subsidiary, Aeolus Sciences, Inc. (collectively, “we,” “us,” “Company” or “Aeolus”). All significant intercompany accounts and transactions have been eliminated in consolidation.  Aeolus is a Delaware corporation. The Company’s primary operations are located in Mission Viejo, California.
				Aeolus is developing a new class of broad-spectrum, catalytic antioxidant compounds based on technology discovered at Duke University and National Jewish Health.  The Company’s lead compound, 10150, is a metalloporphyrin specifically designed to neutralize reactive oxygen and nitrogen species. The Company is developing 10150 as a medical countermeasure against the pulmonary effects of radiation exposure under a contract (“BARDA Contract”) valued at up to $118.4 million with the Biomedical Advanced Research and Development Authority (“BARDA”), a division of the Department of Health and Human Services (“HHS”).  Additionally, Aeolus receives development support from the National Institutes of Health (“NIH”) for development of the compound as a medical countermeasure against radiation and chemical exposure.
	Business
	Aeolus is a biopharmaceutical company developing a platform of a new class of broad-spectrum, catalytic antioxidant compounds that protect healthy tissue from the damaging effects of oxidative stress. The principal endeavor of the Company is protecting against damaging effects of oxidative stress induced by radiation. Its first compound, AEOL 10150, is being developed as a medical countermeasure against the pulmonary effects of radiation exposure under a contract (“BARDA Contract”) valued at up to $118.4 million with the Biomedical Advanced Research and Development Authority (“BARDA”), a division of the Department of Health and Human Services (“HHS”). Aeolus is in its fourth year under the BARDA Contract. Aeolus also receives development support from the National Institutes of Health (“NIH”) for development of the compound as a medical countermeasure against radiation and exposure to chemical and nerve agents. Additionally, Aeolus is developing AEOL 10150 for oncology indications, where it is used in combination with radiation and chemotherapy. Aeolus’ strategy is to leverage the substantial investment in toxicology, manufacturing, and preclinical and clinical studies made by U.S. government agencies in AEOL 10150, including the BARDA Contract, to develop the compound efficiently for use in oncology.
	Basis of Presentation
	All significant intercompany activity has been eliminated in the preparation of the unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Some information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the consolidated financial position, results of operations and cash flows of the Company. The condensed balance sheet at September 30, 2013 was derived from the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013, filed with the Securities and Exchange Commission (the “SEC”) on December 20, 2013.
	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 and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
	Cash and Cash Equivalents
	The Company invests available cash in short-term bank deposits. Cash and cash equivalents include investments with maturities of six months or less at the date of purchase. The carrying value of cash and cash equivalents approximate their fair market value at March 31, 2014 and September 30, 2013 due to their short-term nature.
	Significant customers and accounts receivable
	For the six months ended March 31, 2014, the Company’s primary customer was BARDA. For the six months ended March 31, 2014, revenues from BARDA comprised 100% of total revenues. As of March 31, 2014, the Company’s receivable balances were comprised 100% from this customer. There was $195,000 of unbilled accounts receivable, included in accounts receivable, as of March 31, 2014. Unbilled accounts receivable relates to work that has been performed, though invoicing has not yet occurred. All of the unbilled receivables are expected to be billed and collected within the next 12 months. Accounts receivable are stated at invoice amounts and consist primarily of amounts due from BARDA as well as amounts due under reimbursement contracts with other government entities and non-government and philanthropic organizations. If necessary, the Company records a provision for doubtful receivables to allow for any amounts which may be unrecoverable. This provision is based upon an analysis of the Company’s prior collection experience, customer creditworthiness and current economic trends. As of March 31, 2014 and September 30, 2013, an allowance for doubtful accounts was not recorded as the collection history from the Company’s customer indicated that collection was probable.
	Concentrations of credit risk
	Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high quality financial institutions. Management believes that the financial risks associated with its cash and cash equivalents and investments are minimal. Because accounts receivable consist primarily of amounts due from the U.S. federal government agencies, management deems there to be minimal credit risk.
	Revenue Recognition
	Aeolus recognizes revenue in accordance with the authoritative guidance for revenue recognition.  Revenue is recognized when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery (or passage of title) has occurred or services have been rendered, (iii) the seller’s price to the buyer is fixed or determinable, and (iv) collectability is reasonably assured.
	The BARDA Contract is classified as a “cost-plus-fixed-fee” contract. Aeolus recognizes government contract revenue in accordance with the authoritative guidance for revenue recognition including the authoritative guidance specific to federal government contracts. Reimbursable costs under the contract primarily include direct labor, subcontract costs, materials, equipment, travel, and indirect costs. In addition, we receive a fixed fee under the BARDA Contract, which is unconditionally earned as allowable costs are incurred and is not contingent on success factors. Reimbursable costs under the BARDA Contract, including the fixed fee, are generally recognized as revenue in the period the reimbursable costs are incurred and become billable.
	Fair Value of Financial Instruments
	The carrying amounts of Aeolus’ short-term financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate their fair values due to their short maturities.
	Fair Value Measurements
	The Company adopted Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, for financial and non-financial assets and liabilities.
	ASC Topic 820 discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The statement utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:
		·	Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
		·	Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
		·	Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.
	Research and Development
	Research and development costs are expensed in the period incurred.
	Leases
	The Company leases office space and office equipment under month to month operating lease agreements. For the six months ended March 31, 2014 and 2013, total rent expense was approximately $21,000 and $20,000, respectively.
	Income Taxes
	The Company recognizes liabilities or assets for the deferred tax consequences of temporary differences between the tax bases of assets or liabilities and their reported amounts in the financial statements. These temporary differences will result in taxable or deductible amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. A valuation allowance is established when management determines that is more likely than not that all or a portion of a deferred tax asset will not be realized. Management evaluates the Company’s ability to realize its net deferred tax assets on a quarterly basis and valuation allowances are provided, as necessary. During this evaluation, management reviews its forecasts of income in conjunction with other positive and negative evidence surrounding the Company’s ability to realize its deferred tax assets to determine if a valuation allowance is required. Adjustments to the valuation allowance will increase or decrease the Company’s income tax provision or benefit. Management also applies the relevant guidance to determine the amount of income tax expense or benefit to be allocated among continuing operations, discontinued operations, and items charged or credited directly to stockholders’ equity.
	A tax position must meet a minimum probability threshold before a financial statement benefit is recognized. The minimum threshold is a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation process, based on the technical merits of the position. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense.
	Net Income (Loss) Per Common Share
	The Company computes net income attributable to common stockholders using the two-class method required for participating securities. Under the two-class method, securities that participate in dividends, such as the Company’s outstanding preferred shares, preferred warrants, and most common stock warrants, are considered “participating securities.” Our preferred shares, preferred warrants and common stock warrants are considered “participating securities” because they include non-forfeitable rights to dividends.
	In applying the two-class method, (i) basic net income (loss) per share is computed by dividing net income (less any dividends paid on participating securities) by the weighted average number of shares of common stock and participating securities outstanding for the period and (ii) diluted earnings per share may include the additional effect of other securities, if dilutive, in which case the dilutive effect of such securities is calculated using the treasury stock method. The Company does have other securities with a dilutive effect outstanding, so the Company’s basic net income (loss) per share uses the two-class method and diluted net income (loss) per share uses the treasury stock method.
	Accounting for Stock-Based Compensation
	The Company recognizes stock based compensation expense in the statement of operations based upon the fair value of the equity award amortized over the vesting period.
	Segment Reporting
	The Company currently operates in one segment.

B_Summary_of_Significant_Accou

B. Summary of Significant Accounting Policies	12 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
B. Summary of Significant Accounting Policies	'
	Basis of Presentation
	The consolidated financial statements include the accounts of Aeolus and its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated. The Company uses the equity method to account for its 35.0% ownership interest in CPEC.
	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 and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include revenue recognition, warrant liability, allowance for doubtful accounts, stock-based compensation and warrant expense. Actual results could differ from those estimates.
	Cash and Cash Equivalents
	The Company invests available cash in short-term bank deposits. Cash and cash equivalents include investments with maturities of three months or less at the date of purchase. The carrying value of cash and cash equivalents approximate their fair market value at September 30, 2013 and 2012 due to their short-term nature.
	Significant customers and accounts receivable
	For the year ended September 30, 2013, the Company’s primary customer was BARDA. For the year ended September 30, 2013, revenues from BARDA comprised 100% of total revenues. As of September 30, 2013, the Company’s receivable balances were comprised 100% from this customer. Unbilled accounts receivable, included in accounts receivable, totaling $165,000 as of September 30, 2013 relate to work that has been performed, though invoicing has not yet occurred. All of the unbilled receivables are expected to be billed and collected within the next 12 months. Accounts receivable are stated at invoice amounts and consist primarily of amounts due from HHS as well as amounts due under reimbursement contracts with other government entities and non-government and philanthropic organizations. If necessary, the Company records a provision for doubtful receivables to allow for any amounts which may be unrecoverable. This provision is based upon an analysis of the Company’s prior collection experience, customer creditworthiness and current economic trends. As of September 30, 2013 and 2012, an allowance for doubtful accounts was not recorded as the collection history from the Company’s customers indicated that collection was probable.
	Concentrations of credit risk
	Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high quality financial institutions. Management believes that the financial risks associated with its cash and cash equivalents and investments are minimal. Because accounts receivable consist primarily of amounts due from the U.S. federal government agencies, management deems there to be minimal credit risk.
	Revenue Recognition
	Aeolus recognizes revenue in accordance with the authoritative guidance for revenue recognition.  Revenue is recognized when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery (or passage of title) has occurred or services have been rendered, (iii) the seller’s price to the buyer is fixed or determinable, and (iv) collectability is reasonably assured.
	The BARDA Contract is classified as a “cost-plus-fixed-fee” contract. Aeolus recognizes government contract revenue in accordance with the authoritative guidance for revenue recognition including the authoritative guidance specific to federal government contracts. Reimbursable costs under the contract primarily include direct labor, subcontract costs, materials, equipment, travel, and indirect costs. In addition, we receive a fixed fee under the BARDA Contract, which is unconditionally earned as allowable costs are incurred and is not contingent on success factors. Reimbursable costs under this BARDA Contract, including the fixed fee, are generally recognized as revenue in the period the reimbursable costs are incurred and become billable.
	Fair Value of Financial Instruments
	The carrying amounts of our short-term financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate their fair values due to their short maturities.
	Fair Value Measurements
	The Company adopted Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, for financial and non-financial assets and liabilities.
	ASC 820 discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The Company utilizes the market approach. The statement utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:
	·	Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
	·	Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
	·	Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.
	The warrant liability is measured at fair market value on a recurring basis as of September 30, 2013 and 2012 and is summarized below (in thousands):
	Fair value at September 30, 2013										Fair value at September 30, 2012
	Level 1				Level 2				Level 3		Level 1		Level 2		Level 3
	$	—			$	—			$	—	$	—	$	—	$	19,319
	The following table summarizes, as of September 30, 2013, the warrant activity subject to Level 3 inputs which are measured on a recurring basis:
	Fair value measurements of warrants using significant unobservable inputs (Level 3)
	Balance at September 30, 2012		$	19,319
	Change in fair value of warrant liability			(1,574	)
	Warrant repricing modification charge			2,084
	Exercised			(19,829	)
	Balance at September 30, 2013		$	-
	Research and Development
	Research and development costs are expensed in the period incurred.
	Leases
	The Company leases office space and office equipment under month to month operating lease agreements. For the years ended September 30, 2013 and 2012, total rent expense was approximately $41,000 and $36,000, respectively.
	Income Taxes
	The Company recognizes liabilities or assets for the deferred tax consequences of temporary differences between the tax bases of assets or liabilities and their reported amounts in the financial statements. These temporary differences will result in taxable or deductible amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. A valuation allowance is established when management determines that is more likely than not that all or a portion of a deferred tax asset will not be realized. Management evaluates the Company’s ability to realize its net deferred tax assets on a quarterly basis and valuation allowances are provided, as necessary. During this evaluation, management reviews its forecasts of income in conjunction with other positive and negative evidence surrounding the Company’s ability to realize its deferred tax assets to determine if a valuation allowance is required. Adjustments to the valuation allowance will increase or decrease the Company’s income tax provision or benefit. Management also applies the relevant guidance to determine the amount of income tax expense or benefit to be allocated among continuing operations, discontinued operations, and items charged or credited directly to stockholders’ equity (deficit).
	A tax position must meet a minimum probability threshold before a financial statement benefit is recognized. The minimum threshold is a tax position that is more likely than not be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation process, based on the technical merits of the position. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense.
	Net Income (Loss) Per Common Share
	The Company computes basic net income (loss) per weighted average share attributable to common stockholders using the weighted average number of shares of common stock outstanding during the period. The Company computes diluted net income (loss) per weighted average share attributable to common stockholders using the weighted average number of shares of common and dilutive potential common shares outstanding during the period. Potential common shares outstanding consist of stock options, convertible debt, warrants and convertible preferred stock using the treasury stock method and are excluded if their effect is anti-dilutive. Diluted weighted average common shares did not include any incremental shares for the fiscal year ended September 30, 2013 and included incremental shares of approximately 9,448,000 shares for the fiscal year ended September 30, 2012 issuable upon the exercise or conversion of convertible debt, stock options to purchase common stock, convertible preferred stock and warrants to purchase common stock. Diluted weighted average common shares excluded incremental shares of approximately 2,586,000 and 51,364,000, respectively, for the fiscal year 2013 and 2012, due to their anti-dilutive effect.
			Fiscal Year Ended September 30,
			2013				2012
	Numerator:
	Net income (loss)		$	(3,208	)		$	1,698
	Net income attributable to participating securities			-				(842	)
	Net income (loss) attributable to common stockholders – basic		$	(3,208	)		$	856
	Net income (loss)		$	(3,208	)		$	1,698
	Less gain (loss) on warrant liability for participating common warrants			-				3,859
	Net income (loss) attributable to common stockholders – diluted		$	(3,208	)		$	(2,161	)
	Denominator:
	Weighted-average shares used in computing net income (loss) per share attributable to common stockholders – basic			106,554				61,593
	Effect of potentially dilutive securities:
	Common stock warrants			—				9,448
	Convertible preferred warrants			—				—
	Convertible preferred stock			—				—
	Common stock options			—				—
	Non-participating common stock warrants			—				—
	Weighted-average shares used in computing net income (loss) per share attributable to common stockholders – diluted			106,554				71,041
	Basic net income (loss) per common share		$	(0.03	)		$	0.01
	Diluted net income (loss) per common share		$	(0.03	)		$	(0.03	)
	Accounting for Stock-Based Compensation
	The Company recognizes stock based compensation expense in the statement of operations based upon the fair value of the equity award amortized over the vesting period.
Segment Reporting
The Company currently operates in one segment.
Warrant Liability
Increases or decreases in fair value of the warrants are included as a component of other income (expense) in the accompanying statement of operations for the respective period. As of September 30, 2013, the liability for warrants decreased to $0 from approximately $19,319,000 as of September 30, 2012, due to the exercise of the related warrants (see note F) resulting in a loss to statement of operations of $510,000. The warrant liability and revaluations have not had any impact on the Company’s working capital, liquidity or business operations. The Company previously had warrants with an embedded feature that met the requirements of derivative accounting per ASC Topic 815, Derivatives and Hedging. The Company recorded these warrants at their fair value in accordance with ASC Topic 820 and was required to revalue its liability for these warrants on a quarterly basis. All the warrants subject to this accounting treatment were exercised in full on February 19, 2013 in connection with the financing. See note F below for additional information.

C_Liquidity

C. Liquidity	12 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
C. Liquidity	'
	The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, assuming the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business.
	The Company has incurred significant cash outflows from operations of approximately 2,970,000 and $879,000 for the fiscal years ended September 30, 2013 and 2012, respectively. The Company had net income of approximately $3,208,000 (including a non-cash loss for increases in valuation of warrants of approximately $510,000) for the year ended September 30, 2013. In 2012 the Company had net income from operations of approximately $1,698,000 (including a non-cash gain for decreases in valuation of warrants of $4,069,000). The Company expects to incur additional losses and cash outflows from operations for several more years.
	The Company has historically raised capital through the sale of its common shares and preferred shares; said financing transactions are more thoroughly discussed at note F – Stockholders’ Equity. Management expects they will need to continue to finance the Company’s operations through equity financing for several more years.
	If the Company is unable to obtain additional funding for its operations, it will need to eliminate or substantially limit some or all of its activities, merge with another company, sell, lease or license some or all of its assets, or cease operations entirely. There is no assurance that the Company will be able to obtain additional financing on acceptable terms, or at all, or that the Company will be able to merge with another Company or sell, lease or license any or all of its assets. This raises substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might result from this uncertainty.

D_Investments

D. Investments	12 Months Ended
	Sep. 30, 2013
Equity Method Investments and Joint Ventures [Abstract]	'
D. Investments	'
	Investment in CPEC LLC
	The Company uses the equity method to account for its 35% ownership interest in CPEC. CPEC had $91,000 of net assets at each of September 30, 2013 and 2012. Aeolus’ 35% share of CPEC’s net assets, which is approximately $32,000, is included in other assets and the Company has no operations or activities unrelated to the out licensing of bucindolol. The other 65% is owned by Endo Pharmaceuticals.

E_Commitments

E. Commitments	6 Months Ended	12 Months Ended
	Mar. 31, 2014	Sep. 30, 2013
Notes to Financial Statements	'	'
E. Commitments	'	'
		The Company acquires assets still in development and enters into license and research and development arrangements with third parties that often require milestone and royalty payments to the third party contingent upon the occurrence of certain future events linked to the success of the asset in development. Milestone payments may be required, contingent upon the successful achievement of an important point in the development life-cycle of the pharmaceutical product (e.g., approval of the product for marketing by a regulatory agency). If required by the arrangement, the Company may also be required to make royalty payments based upon a percentage of the net sales of the pharmaceutical product in the event that regulatory approval for marketing is obtained. Because of the contingent nature of these payments, they are not included in the table of contractual obligations. No milestones have been met, nor have any payments been made, as of September 30, 2013.
		We are also obligated to pay patent filing, prosecution, maintenance and defense costs, if any, for the intellectual property the Company has licensed from National Jewish Health (“NJH”), National Jewish Medical and Research Center (the “NJMRC”) and Duke University.
	The Company acquires assets still in development and enters into research and development arrangements with third parties that often require milestone and royalty payments to the third party contingent upon the occurrence of certain future events linked to the success of the asset in development. Milestone payments may be required, contingent upon the successful achievement of an important point in the development life-cycle of the pharmaceutical product (e.g., approval of the product for marketing by a regulatory agency). If required by the arrangement, the Company may have to make royalty payments based upon a percentage of the sales of the pharmaceutical product in the event that regulatory approval for marketing is obtained. Because of the contingent nature of these payments, they are not included in the table of contractual obligations. No milestones have been met, nor have any payments been paid, as of March 31, 2014.
		These arrangements may be material individually, and in the unlikely event that milestones for multiple products covered by these arrangements were reached in the same period, the aggregate charge to expense could be material to the results of operations in any one period. In addition, these arrangements often give Aeolus the discretion to unilaterally terminate development of the product, which would allow Aeolus to avoid making the contingent payments; however, Aeolus is unlikely to cease development if the compound successfully achieves clinical testing objectives.
	The Company is also obligated to pay patent filing, prosecution, maintenance and defense costs, if any, for the intellectual property it has licensed from National Jewish Health, National Jewish Medical and Research Center and Duke University.
	These arrangements may be material individually, and in the unlikely event that milestones for multiple products covered by these arrangements were reached in the same period, the aggregate charge to expense could be material to the results of operations in any one period. In addition, these arrangements often give Aeolus the discretion to unilaterally terminate development of the product, which would allow Aeolus to avoid making the contingent payments; however, Aeolus is unlikely to cease development if the compound successfully achieves clinical testing objectives.

F_Stockholders_Equity_Deficit

F. Stockholders' Equity (Deficit)	6 Months Ended											12 Months Ended
	Mar. 31, 2014											Sep. 30, 2013
Notes to Financial Statements	'											'
F. Stockholders' Equity (Deficit)	'											'
												Basis of Presentation
												Preferred Stock
	Preferred Stock											The Certificate of Incorporation of the Company authorizes the issuance of up to 10,000,000 shares of Preferred Stock, at a par value of $0.01 per share, of which 1,250,000 shares are designated Series A Convertible Preferred Stock and 1,600,000 shares are designated Series B Convertible Preferred Stock. The Board of Directors has the authority to issue Preferred Stock in one or more series, to fix the designation and number of shares of each such series, and to determine or change the designation, relative rights, preferences, and limitations of any series of Preferred Stock, without any further vote or action by the stockholders of the Company.
	The Certificate of Incorporation of Aeolus authorizes the issuance of up to 10,000,000 shares of Preferred Stock, at a par value of $.01 per share. The Board of Directors has the authority to issue Preferred Stock in one or more series, to fix the designation and number of shares of each such series, and to determine or change the designation, relative rights, preferences, and limitations of any series of Preferred Stock, without any further vote or action by the stockholders of the Company.											As of September 30, 2013 and 2012, 526,080 shares of Series B Stock were outstanding, respectively. There are no shares of Series A Convertible Preferred Stock issued or outstanding.
	Of the 10,000,000 shares of total authorized shares of Preferred Stock, 1,250,000 shares are designated as Series A Convertible Preferred Stock and 1,600,000 shares are designated as Series B Stock. The Series B Stock is not entitled to vote on any matter submitted to the vote of holders of the common stock except that the Company must obtain the approval of a majority of the outstanding shares of Series B Stock to either amend the Company’s Certificate of Incorporation in a manner that would adversely affect the Series B Stock (including by creating an additional class or series of stock with rights that are senior or pari passu to the Series B Stock) or change the rights of the holders of the Series B Stock in any other respect. Each share of Series B Stock is convertible at any time by the holder thereof into one share of the Company’s common stock, provided that no conversion may be effected that would result in the holders of Series B Stock owning more than 9.9% of the Company’s common stock on a fully converted to common stock basis. If the Company pays a cash dividend on its common stock, it must also pay the same dividend on an as converted basis on the Series B Stock. Upon a liquidation, dissolution, bankruptcy or winding up of the Company or the sale of all or substantially all of the Company’s assets, the holders of Series B Stock will be entitled to receive, together with the holders of common stock, the assets of the Company in proportion to the number of shares of common stock held (assuming conversion of the Series B Stock into shares of common stock).											With respect to dividend rights and rights upon liquidation, winding up and dissolution, the Series B Stock ranks pari passu with the common stock. Subject to any rights of senior stock, holders of Series B Stock are entitled to receive dividends or distributions as, when and if declared by the Board of Directors. In the event the Board of Directors declares a dividend or distribution with respect to the outstanding common stock, the holders of Series B Stock are entitled to receive the amount of dividends per share in the same form payable on the common stock based on the largest number of shares of common stock issuable upon conversion of the outstanding Series B Stock. In the event of a liquidation, winding up or dissolution of the Company, subject to any rights of senior stock, the holders of Series B Stock are entitled to receive, pari passu with the holders of the common stock, the assets of the Company based on the largest number of shares of common stock issuable upon conversion of the outstanding Series B Stock.
	As of March 31, 2014, 526,080 shares of Series B Stock were outstanding, all of which were held by Elan. Each share of Series B Stock was convertible into one share of common stock as of March 31, 2014.											Each share of Series B Stock is convertible into one share of common stock. The Series B Stock can be converted into common stock at any time upon the election of the holders of the Series B Stock except to the extent such conversion would result in the holders of Series B Stock owning in the aggregate more than 9.99% of the outstanding common stock.
	There were no shares of Series A Convertible Preferred Stock issued or outstanding as of March 31, 2014.											The Series B Stock is not entitled to vote on any matter submitted to the vote of holders of the common stock except that the Company must obtain the approval of a majority of the outstanding shares of Series B Stock to either amend the Company’s Certificate of Incorporation in a manner that would adversely affect the Series B Stock (including by creating an additional class or series of stock with rights that are senior or pari passu to the Series B Stock) or change the rights of the holders of the Series B Stock in any other respect.
	Common Stock											Common Stock
	February/March 2013 Financing											February/March 2013 Financing
	On February 19, 2013 and March 4, 2013, the Company entered into Securities Purchase Agreements (the “Purchase Agreements”) with certain accredited investors (the “Purchasers”). Under the terms of the agreements, the Company received approximately $3,616,000 in gross proceeds in exchange for the issuance of an aggregate of 14,462,000 units (the “Units”), consisting of 14,462,000 shares of common stock and 14,462,000 warrants, at a purchase price of $0.25 per unit. Each Unit consists of (i) one share of common stock (the “Common Shares”) and (ii) a five-year warrant to purchase one share of the Company’s common stock (the “Warrants”). The Warrants have an initial exercise price of $0.25 per share.											On February 19, 2013 and March 4, 2013, the Company entered into Securities Purchase Agreements (the “Purchase Agreements”) with certain accredited investors (the “Purchasers”). Under the terms of the agreements, the Company received approximately $3,616,000 in gross proceeds in exchange for the issuance of an aggregate of 14,462,000 units (the “Units”), consisting of 14,462,000 shares of common stock and 14,462,000 warrants, at a purchase price of $0.25 per unit. Each Unit consists of (i) one share of common stock (the “Common Shares”) and (ii) a five -year warrant to purchase one share of the Company’s common stock (the “Warrants”). The Warrants have an initial exercise price of $0.25 per share.
	On February 19, 2013, the Company received $3,225,000 in gross proceeds in exchange for the issuance of an aggregate of 12,900,000 Units, which consisted of 12,900,000 shares of common stock and 12,900,000 warrants.											Net cash proceeds from the February/March 2013 Financing, after deducting for $58,000 of expenses, were approximately $3,558,000. The Company also incurred non-cash expenses in the form of 365,000 warrants issued to consultants, at similar terms as the financing Warrants, for services provided. The Company issued a total of 14,827,000 warrants in connection with the February/March 2013 Financing.
	On March 4, 2013, the Company received approximately $390,000 in gross proceeds in exchange for the issuance of an aggregate of 1,562,000 Units, which consisted of 1,562,000 shares of common stock and 1,562,000 warrants.
												The fair value of the February/March 2013 Financing warrants was estimated to be $4,791,000 using the Black-Scholes option pricing model with the following assumptions: dividend yield of 0%, expected volatility of 154.84%, risk free interest rate of 0.87% and an expected life of five years. The proceeds from the February/March 2013 Financing were allocated based upon the relative fair values of the February/March 2013 Financing Warrants and the February/March 2013 Common Shares.
	Net cash proceeds from the February/March 2013 Financing, after deducting for expenses, were approximately $3,558,000. The Company also incurred non-cash expenses in the form of 365,000 warrants issued to consultants, at similar terms as the financing Warrants, for services provided. The Company issued a total of 14,827,000 warrants in connection with the February/March 2013 Financing.
												The February/March 2013 Financing contains a registration rights agreement with an arrangement for liquidated damages in the event of a failure to maintain the effectiveness with the SEC of a registration statement covering the February/March 2013 Financing Units. The Company must use its commercially reasonable to maintain the registration statement continuously effective until the earlier to occur of (i) the date on which all securities covered by such registration statement have been sold, and (ii) the date on which all securities covered by such registration statement may be sold without volume restrictions pursuant to Rule 144 under the Securities Act of 1933, as amended. In the event the Company fails to meet this obligation, subject to certain exceptions, the Company will be required to make a cash payment of 0.5% of the aggregate amount invested to the Purchasers of the February/March 2013 Financing Units. The 0.5% payment equaling $18,000 would be due for every 30-day period in which the registration statement is not continuously effective. The maximum liability would be $108,000 and no damages would accrue after August 19, 2013, the date that is six months from the closing of the February/March 2013 Financing.  The registration statement was declared effective by the SEC as of June 13, 2013. As of June 30, 2013, no liability was recorded as the Company expects that the registration statement will remain continuously effective through August 19, 2013.
	The fair value of the February/March 2013 Financing warrants was estimated to be $4,791,000 using the Black-Scholes option pricing model with the following assumptions: dividend yield of 0%, expected volatility of 154.84%, risk free interest rate of 0.87% and an expected life of five years. The proceeds from the February/March 2013 Financing were allocated based upon the relative fair values of the February/March 2013 Financing Warrants and the February/March 2013 Common Shares.
												Modification to rights of Security Holders
	The February/March 2013 Financing contains a registration rights agreement with an arrangement for liquidated damages in the event of a failure to maintain the effectiveness with the SEC of a registration statement covering the February/March 2013 Financing Units. The Company must use its commercially reasonable efforts to maintain the registration statement continuously effective until the earlier to occur of (i) the date on which all securities covered by such registration statement have been sold, and (ii) the date on which all securities covered by such registration statement may be sold without volume restrictions pursuant to Rule 144 under the Securities Act of 1933, as amended. In the event the Company fails to meet this obligation, subject to certain exceptions, the Company will be required to make a cash payment of 0.5% of the aggregate amount invested to the Purchasers of the February/March 2013 Financing Units. The 0.5% payment equaling $18,000 would be due for every 30-day period in which the registration statement is not continuously effective. The maximum liability would be $108,000 and no damages would accrue after August 19, 2013, the date that is six months from the closing of the February/March 2013 Financing.  The registration statement was declared effective by the SEC as of June 13, 2013. No liability was recorded as the registration statement was continuously effective through March 31, 2014.
												Effective February 19, 2013, the Company and each of Xmark JV Investment Partners, LLC, Xmark Opportunity Fund, Ltd. and Xmark Opportunity Fund, L.P. (collectively, the “Xmark Entities”) entered into a Warrant Repricing, Exercise and Lockup Agreement (the “Xmark Warrant Agreement”) pursuant to which the Company agreed to reduce the exercise price of outstanding warrants to purchase an aggregate of up to 59,149,999 shares of Common Stock held by the Xmark Entities (the “Xmark Warrants”) to $0.01 per share. In consideration for the reduction of the exercise price of the Xmark Warrants, each of the Xmark Entities agreed to immediately exercise all of the Xmark Warrants by cashless exercise. The Xmark Warrant Agreement also provides that the Xmark Entities will not transfer the shares issuable upon exercise of the Xmark Warrants (the “Xmark Warrant Shares”) until the Company either (i) declares a cash dividend on its common stock or otherwise makes a cash distribution or (ii) effects a Change of Control, subject in each case to the terms of the Xmark Warrant Agreement.
	Modification to rights of Security Holders
												Modifying the exercise price of the warrants to a fixed amount of $0.01 eliminated the requirement for warrant liability accounting treatment and resulted in a charge of $2,084,000, as described under “Warrant Liability” in Note A above.
	Effective February 19, 2013, the Company and each of Xmark JV Investment Partners, LLC, Xmark Opportunity Fund, Ltd. and Xmark Opportunity Fund, L.P. (collectively, the “Xmark Entities”) entered into a Warrant Repricing, Exercise and Lockup Agreement (the “Xmark Warrant Agreement”) pursuant to which the Company agreed to reduce the exercise price of outstanding warrants to purchase an aggregate of up to 59,149,999 shares of Common Stock held by the Xmark Entities (the “Xmark Warrants”) to $0.01 per share. In consideration for the reduction of the exercise price of the Xmark Warrants, each of the Xmark Entities agreed to immediately exercise all of the Xmark Warrants by cashless exercise. The Xmark Warrant Agreement also provides that the Xmark Entities will not transfer the shares issuable upon exercise of the Xmark Warrants (the “Xmark Warrant Shares”) until the Company either (i) declares a cash dividend on its common stock or otherwise makes a cash distribution or (ii) effects a Change of Control, subject in each case to the terms of the Xmark Warrant Agreement.
												March 2012 Financing
	Modifying the exercise price of the warrants to a fixed amount of $0.01 eliminated the requirement for warrant liability accounting treatment and resulted in a charge of $2,084,000.
												On March 30, 2012 and April 4, 2012, the Company entered into Securities Purchase Agreements (the “Purchase Agreements”) with certain accredited investors (the “Purchasers”) and completed a financing (the “March 2012 Financing”). Under the terms of the Purchase Agreements, the Company received $660,000 in gross proceeds in exchange for the issuance of an aggregate of 2,200,166 units (the “March 2012 Units”), consisting of 2,200,166 shares of common stock and 1,650,126 warrants, at a purchase price of $0.30 per Unit. Each Unit consisted of (i) one share of common stock (the “March 2012 Common Shares”) and (ii) a five year warrant to purchase 0.75 of a share of the Company’s common stock (the “March 2012 Warrants”). The March 2012 Warrants have an initial exercise price of $0.40 per share.
	March 2012 Financing
												On March 30, 2012, the Company received $530,000 in gross proceeds in exchange for the issuance of an aggregate of 1,766,833 March 2012 Units, which consisted of 1,766,833 shares of common stock and 1,325,126 warrants.
	On March 30, 2012 and April 4, 2012, the Company entered into Securities Purchase Agreements (the “Purchase Agreements”) with certain accredited investors (the “Purchasers”) and completed a financing (the “March 2012 Financing”). Under the terms of the Purchase Agreements, the Company received $660,000 in gross proceeds in exchange for the issuance of an aggregate of 2,200,166 units (the “March 2012 Units”), consisting of 2,200,166 shares of common stock and 1,650,126 warrants, at a purchase price of $0.30 per Unit. Each Unit consisted of (i) one share of common stock (the “March 2012 Common Shares”) and (ii) a five-year warrant to purchase 0.75 of a share of the Company’s common stock (the “March 2012 Warrants”). The March 2012 Warrants have an initial exercise price of $0.40 per share.
												On April 4, 2012, the Company received $130,000 in gross proceeds in exchange for the issuance of an aggregate of approximately 433,333 March 2012 Units, which consisted of 433,333 shares of common stock and 325,000 warrants.
	On March 30, 2012, the Company received $530,000 in gross proceeds in exchange for the issuance of an aggregate of 1,766,833 March 2012 Units, which consisted of 1,766,833 shares of common stock and 1,325,126 warrants.
	On April 4, 2012, the Company received $130,000 in gross proceeds in exchange for the issuance of an aggregate of approximately 433,333 March 2012 Units, which consisted of 433,333 shares of common stock and 325,000 warrants.											Net cash proceeds from the March 2012 Financing, after deducting for $18,000 of expenses, were $642,000. The Company also incurred non-cash expenses in the form of 12,501 warrants issued to consultants, at similar terms as the March 2012 Warrants, for services provided. Pursuant to the warrants, the Company is obligated to issue up to a total of 1,662,627 shares of common stock as of September 30, 2012 in connection with the March 2012 Financing.
	Net cash proceeds from the March 2012 Financing, after deducting for expenses, were $642,000. The Company also incurred non-cash expenses in the form of 12,501 warrants issued to consultants, at similar terms as the March 2012 Warrants, for services provided. Pursuant to the warrants, the Company is obligated to issue up to a total of 1,662,627 shares of common stock as of September 30, 2012 in connection with the March 2012 Financing.											The fair value of the March 2012 Warrants issued on March 30, 2012 was estimated to be $363,000 using the Black-Scholes option pricing model with the following assumptions: dividend yield of 0%, expected volatility of 150.74%, risk free interest rate of 1.04% and an expected life of five years. The proceeds from the March 2012 Financing were allocated based upon the relative fair values of the March 2012 Financing Warrants and the March 2012 Common Shares.
	The fair value of the March 2012 Warrants issued on March 30, 2012 was estimated to be $363,000 using the Black-Scholes option pricing model with the following assumptions: dividend yield of 0%, expected volatility of 150.74%, risk free interest rate of 1.04% and an expected life of five years. The proceeds from the March 2012 Financing were allocated based upon the relative fair values of the March 2012 Warrants and the March 2012 Common Shares.											The fair value of the March 2012 Warrants issued on April 4, 2012 was estimated to be $84,000 using the Black-Scholes option pricing model with the following assumptions: dividend yield of 0%, expected volatility of 149.36%, risk free interest rate of 1.05% and an expected life of five years. The proceeds from the March 2012 Financing were allocated based upon the relative fair values of the March 2012 Financing Warrants and the March 2012 Common Shares.
	The fair value of the March 2012 Warrants issued on April 4, 2012 was estimated to be $84,000 using the Black-Scholes option pricing model with the following assumptions: dividend yield of 0%, expected volatility of 149.36%, risk free interest rate of 1.05% and an expected life of five years. The proceeds from the March 2012 Financing were allocated based upon the relative fair values of the March 2012 Warrants and the March 2012 Common Shares.											Dividends
	Dividends											The Company has never paid a cash dividend on its common stock and does not anticipate paying cash dividends on its common stock in the foreseeable future. If we pay a cash dividend on our common stock, we also must pay the same dividend on an as converted basis on our Series B preferred stock.
	The Company has never paid a cash dividend on its common stock and does not anticipate paying cash dividends on its common stock in the foreseeable future. If the Company pays a cash dividend on its common stock, it also must pay the same dividend on an as converted basis on its outstanding Series B Stock.											Warrants
	Warrants											As of September 30, 2013, warrants to purchase an aggregate of 17,879,627 shares of common stock were outstanding. Details of the warrants for common stock outstanding at September 30, 2013 were as follows:
	As of March 31, 2014, warrants to purchase an aggregate of 17,879,627 shares of common stock were outstanding with a weighted average exercise price of $0.30 per share. Details of the warrants for common stock outstanding at March 31, 2014 are as follows:											Number of Shares			Exercise Price				Expiration Date
													100,000		$	0.5			May-14
	Number of Shares	Exercise Price			Expiration Date								100,000		$	1			May-14
	100,000	$	0.5		May-14								100,000		$	1.5			May-14
	100,000	$	1		May-14								125,000		$	0.51			Jun-14
	100,000	$	1.5		May-14								125,000		$	1			Jun-14
	125,000	$	0.51		Jun-14								20,000		$	0.39			Sep-14
	125,000	$	1		Jun-14								15,000		$	0.5			Sep-14
	20,000	$	0.39		Sep-14								15,000		$	0.6			Sep-14
	15,000	$	0.5		Sep-14								50,000		$	0.38			Apr-15
	15,000	$	0.6		Sep-14								50,000		$	0.5			May-16
	50,000	$	0.38		Apr-15								50,000		$	0.5			Jul-16
	50,000	$	0.5		May-16								50,000		$	1			Jul-16
	50,000	$	0.5		Jul-16								50,000		$	1.5			Jul-16
	50,000	$	1		Jul-16								50,000		$	2			Jul-16
	50,000	$	1.5		Jul-16								50,000		$	2.5			Jul-16
	50,000	$	2		Jul-16								1,337,627		$	0.4			Mar-17
	50,000	$	2.5		Jul-16								325,000		$	0.4			Apr-17
	1,337,627	$	0.4		Mar-17								300,000		$	0.258			Jun-17
	325,000	$	0.4		Apr-17								140,000		$	0.35			Oct-17
	300,000	$	0.258		Jun-17								13,085,000		$	0.25			Feb-18
	140,000	$	0.35		Oct-17								1,742,000		$	0.25			Mar-18
	13,085,000	$	0.25		Feb-18								17,879,627
	1,742,000	$	0.25		Mar-18
	17,879,627	$	0.3									As of September 30, 2013, one warrant to purchase an aggregate of 896,037 shares of preferred stock was outstanding. Details of the warrant for preferred stock outstanding at September 30, 2013 were as follows:
	As of March 31, 2014, one warrant to purchase an aggregate of 896,037 shares of preferred stock was outstanding. The warrant has an exercise price of $0.01 per share and expires in February 2016.											Number of Shares		Exercise Price			Expiration Date
												896,037		$	0.01			Feb-16
Below is a summary of warrant activity (“common and preferred”) for the six months ended March 31, 2014:												896,037
					Weighted Average
	Number of Shares				Exercise Price		Remaining Contractual		Aggregate		As of September 30, 2012, warrants to purchase an aggregate of 62,132,626 shares of common stock were outstanding. Details of the warrants for common stock outstanding at September 30, 2012 were as follows:
							Term (in years)		Intrinsic Value
Outstanding at 9/30/2013		18,775,664			$	0.29		4.05	$	693,340	Number of Shares			Exercise Price				Expiration Date
Granted		-			$	-		-	$	-		100,000		$	0.5			May-14
Exercised		-			$	-		-	$	-		100,000		$	1			May-14
Expired or Canceled		-			$	-		-	$	-		100,000		$	1.5			May-14
Forfeited		-			$	-		-	$	-		125,000		$	0.65			Jun-14
Vested		-			$	-		-	$	-		125,000		$	1			Jun-14
Outstanding at 3/31/2014		18,775,664			$	0.29		3.55	$	215,048		20,000		$	0.39			Sep-14
												15,000		$	0.5			Sep-14
Below is a summary of warrant activity (“common and preferred”) for the six months ended March 31, 2013:												15,000		$	0.6			Sep-14
												50,000		$	0.38			Apr-15
					Weighted Average							50,000		$	0.5			May-16
	Number of Shares				Exercise Price		Remaining Contractual Term (in years)		Aggregate Intrinsic Value			50,000		$	0.5			Jul-16
Outstanding at 9/30/2012		62,993,663			$	0.3		4.2	$	5,344,623		50,000		$	1			Jul-16
Granted		14,932,000			$	0.25		4.89	$	1,039,373		50,000		$	1.5			Jul-16
Exercised		(59,149,999	)		$	0.01		3.75	$	19,519,500		50,000		$	2			Jul-16
Expired or Canceled		-			$	-		-	$	-		50,000		$	2.5			Jul-16
Forfeited		-			$	-		-	$	-		43,614,285		$	0.28			Oct-16
Vested		-			$	-		-	$	-		1,337,627		$	0.4			Mar-17
Outstanding at 3/31/2013		18,775,664			$	0.29		4.55	$	1,335,864		325,000		$	0.4			Apr-17
												300,000		$	0.258			Jun-17
												11,785,714		$	0.28			Jul-17
												35,000		$	0.3			Aug-17
												1,875,000		$	0.5			Aug-17
												35,000		$	0.44			Sep-17
												1,875,000		$	0.5			Dec-17
												62,132,626
											As of September 30, 2012, one warrant to purchase an aggregate of 896,037 shares of preferred stock was outstanding. Details of the warrant for preferred stock outstanding at September 30, 2012 were as follows:
											Number of Shares		Exercise Price			Expiration Date
												896,037		$	0.01			Feb-16
												896,037
											Below is a summary of warrant activity for the last three fiscal years ended September 30:
																Weighted Average
																			Remaining		Aggregate
													Number				Exercise		Contractual		Intrinsic
													of Shares				Price		Term (in years)		Value
											Outstanding at 9/30/2011		61,936,036			$	0.3		5.2 years	$	8,258
											Granted		1,997,627			$	0.38		4.5 years	$	35
											Exercised		(940,000	)		$	0.28			$	—
											Cancelled		—			$	—			$	—
											Forfeited		—			$	—			$	—
											Outstanding at 9/30/2012		62,993,663			$	0.3		4.2 years	$	5,344
											Granted		14,932,000			$	0.25		4.4 years	$	444,810
											Exercised		(59,149,999	)		$	0.01			$	19,519,500
											Cancelled		—			$	—			$	—
											Forfeited		—			$	—			$	—
											Outstanding at 9/30/2013		18,775,664			$	0.29		4.1 years	$	693,340
											Exercisable at 9/30/2013		18,775,664			$	0.29		4.1 years	$	693,340

G_StockBased_Compensation

G. Stock-Based Compensation	6 Months Ended															12 Months Ended
	Mar. 31, 2014															Sep. 30, 2013
Notes to Financial Statements	'															'
G. Stock-Based Compensation	'															'
	Below is a summary of stock option activity for the six months ended March 31, 2014:															Below is a summary of stock option activity for the six months ended March 31, 2014:
						Weighted Average															Weighted Average
		Number of Shares				Exercise Price				Remaining Contractual			Aggregate				Number of Shares				Exercise Price				Remaining Contractual			Aggregate
										Term (in years)			Intrinsic Value												Term (in years)			Intrinsic Value
	Outstanding at 9/30/2013		11,214,898			$	0.52				6.67		$	3,825		Outstanding at 9/30/2013		11,214,898			$	0.52				6.67		$	3,825
	Granted		-			$	-				-		$	-		Granted		-			$	-				-		$	-
	Exercised		-			$	-				-		$	-		Exercised		-			$	-				-		$	-
	Expired or Canceled		(62,890	)		$	2.93				-		$	-		Expired or Canceled		(62,890	)		$	2.93				-		$	-
	Forfeited		-			$	-				-		$	-		Forfeited		-			$	-				-		$	-
	Vested (RSAs)		-			$	-				-		$	-		Vested (RSAs)		-			$	-				-		$	-
	Outstanding at 3/31/2014		11,152,008			$	0.51				6.21		$	1,463		Outstanding at 3/31/2014		11,152,008			$	0.51				6.21		$	1,463
	For the six months ended March 31, 2014, all stock options were granted with an exercise price at or above the fair market value of the Company’s common stock on the date of grant.															For the six months ended March 31, 2014, all stock options were granted with an exercise price at or above the fair market value of the Company’s common stock on the date of grant.
	Below is a summary of stock option activity for the six months ended March 31, 2013:															Below is a summary of stock option activity for the six months ended March 31, 2013:
						Weighted Average															Weighted Average
		Number of Shares				Exercise Price				Remaining Contractual			Aggregate				Number of Shares				Exercise Price				Remaining Contractual			Aggregate
										Term (in years)			Intrinsic Value												Term (in years)			Intrinsic Value
	Outstanding at 9/30/2012		9,473,661			$	0.7				5.81		$	153,850		Outstanding at 9/30/2012		9,473,661			$	0.7				5.81		$	153,850
	Granted		2,745,000			$	0.39				9.92		$	901		Granted		2,745,000			$	0.39				9.92		$	901
	Exercised		-			$	-				-		$	-		Exercised		-			$	-				-		$	-
	Expired or Canceled		(72,744	)		$	0.85				-		$	-		Expired or Canceled		(72,744	)		$	0.85				-		$	-
	Forfeited		-			$	-				-		$	-		Forfeited		-			$	-				-		$	-
	Vested (RSAs)		-			$	-				-		$	-		Vested (RSAs)		-			$	-				-		$	-
	Outstanding at 3/31/2013		12,145,917			$	0.63				6.38		$	45,084		Outstanding at 3/31/2013		12,145,917			$	0.63				6.38		$	45,084
	The details of stock options for the six months ended March 31, 2014 were as follows:															The details of stock options for the six months ended March 31, 2014 were as follows:
		Options Outstanding							Options Exercisable								Options Outstanding							Options Exercisable
							Weighted						Weighted									Weighted						Weighted
		Number		Weighted			Average		Number		Weighted		Average				Number		Weighted			Average		Number		Weighted		Average
	Range of	Outstanding		Average			Remaining		Exercisable		Average		Remaining			Range of	Outstanding		Average			Remaining		Exercisable		Average		Remaining
	Exercise	at March 31,		Exercise			Contractual		At March 31,		Exercise		Contractual			Exercise	at March 31,		Exercise			Contractual		At March 31,		Exercise		Contractual
	Prices	2014		Price			Life (in years)		2014		Price		Life (in years)			Prices	2014		Price			Life (in years)		2014		Price		Life (in years)
	$0.23-$0.30	1,612,500		$	0.29		5.81		1,612,500		$	0.29	5.81			$0.23-$0.30	1,612,500		$	0.29		5.81		1,612,500		$	0.29	5.81
	$0.31-$0.40	6,501,500		$	0.39		7.32		6,501,500		$	0.39	7.32			$0.31-$0.40	6,501,500		$	0.39		7.32		6,501,500		$	0.39	7.32
	$0.41-$0.50	502,000		$	0.45		7.75		447,833		$	0.45	7.58			$0.41-$0.50	502,000		$	0.45		7.75		447,833		$	0.45	7.58
	$0.51-$0.60	963,750		$	0.59		5.14		963,750		$	0.59	5.14			$0.51-$0.60	963,750		$	0.59		5.14		963,750		$	0.59	5.14
	$0.61-$0.70	66,500		$	0.68		2.38		66,500		$	0.68	2.38			$0.61-$0.70	66,500		$	0.68		2.38		66,500		$	0.68	2.38
	$0.71-$0.80	382,250		$	0.75		3.17		382,250		$	0.75	3.17			$0.71-$0.80	382,250		$	0.75		3.17		382,250		$	0.75	3.17
	$0.81-$0.90	697,091		$	0.88		2.51		697,091		$	0.88	2.51			$0.81-$0.90	697,091		$	0.88		2.51		697,091		$	0.88	2.51
	$0.91-$1.00	44,500		$	0.94		1.49		44,500		$	0.94	1.49			$0.91-$1.00	44,500		$	0.94		1.49		44,500		$	0.94	1.49
	$1.01-$1.50	81,500		$	1.13		1.06		81,500		$	1.13	1.06			$1.01-$1.50	81,500		$	1.13		1.06		81,500		$	1.13	1.06
	$1.51-$5.00	300,417		$	2.73		0.4		300,417		$	2.73	0.4			$1.51-$5.00	300,417		$	2.73		0.4		300,417		$	2.73	0.4
	Stock-based compensation expense recognized in the statement of operations is as follows (in thousands):															Stock-based compensation expense recognized in the statement of operations is as follows (in thousands):
		For the three months ended								For the six months ended							For the three months ended								For the six months ended
		March 31,								March 31,							March 31,								March 31,
		2014				2013				2014			2013				2014				2013				2014			2013
	Research and Development Expenses	$	5			$	5			$	11		$	9		Research and Development Expenses	$	5			$	5			$	11		$	9
	General and Administrative Expenses		190				232				452			300		General and Administrative Expenses		190				232				452			300
		$	195			$	237			$	463		$	309			$	195			$	237			$	463		$	309
	The total unrecognized compensation expense for outstanding and unvested stock options for the six months ended March 31, 2014 was $15,000. The weighted average remaining recognition period for the total deferred compensation expense is approximately one month. The fair value of  options was determined at the date of the grant using the Black-Scholes option pricing model with the following weighted average assumptions:															The total unrecognized compensation expense for outstanding and unvested stock options for the six months ended March 31, 2014 was $15,000. The weighted average remaining recognition period for the total deferred compensation expense is approximately one month. The fair value of  options was determined at the date of the grant using the Black-Scholes option pricing model with the following weighted average assumptions:
		For the three months ended								For the six months ended							For the three months ended								For the six months ended
		March 31,								March 31,							March 31,								March 31,
		2014				2013				2014			2013				2014				2013				2014			2013
	Dividend yield		—	*			0	%			—	*		0	%	Dividend yield		—	*			0	%			—	*		0	%
	Expected volatility		—	*			154.91	%			—	*		154.61	%	Expected volatility		—	*			154.91	%			—	*		154.61	%
	Risk-free interest rate		—	*			0.86	%			—	*		0.86	%	Risk-free interest rate		—	*			0.86	%			—	*		0.86	%
	Expected term		—	*		5.27 years					—	*	5.27 years			Expected term		—	*		5.27 years					—	*	5.27 years
	* No stock options were granted for the three and six months ended March 31, 2014															* No stock options were granted for the three and six months ended March 31, 2014

H_Income_Taxes

H. Income Taxes	12 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
H. Income Taxes	'
	As of September 30, 2013 and 2012, the Company had federal net operating loss (“NOL”) carry-forwards of $113,091,000 and $110,986,000, respectively and state operating loss carry-forwards of $35,016,000 and $32,912,000, respectively. The use of these federal and state NOL carry-forwards might be subject to limitation under the rules regarding a change in stock ownership as determined by the Internal Revenue Code (the “Code”). The Company may have had a change of control under Section 382 of the Code during fiscal 2004 and 2006; however, a complete analysis of the limitation of the NOL carry-forwards will not be completed until the time the Company projects it will be able to utilize such NOLs. The federal net operating and the state net operating losses began to expire in 2010. Additionally, the Company had federal research and development carry-forwards as of September 30, 2013 and 2012 of $3,714,000 and $3,587,000, respectively. The Company had state research and development carry-forwards as of September 30, 2013 and 2012 of $1,033,000 and $892,000, respectively.
	Significant components of the Company’s deferred tax assets at September 30, 2013 and 2012 consisted of the following (in thousands):
		2013			2012
	Accrued payroll related liabilities	$	915		$	2,802
	Depreciation and amortization		823			939
	State Taxes		(121	)		(1,554	)
	Total deferred tax assets		1,617			2,187
	Deferred tax liabilities		—			—
	Valuation allowance for deferred assets		(1,617	)		(2,187	)
	Net deferred tax asset	$	—		$	—
	Due to the uncertainty surrounding the realization of the favorable tax attributes in future tax returns, all of the deferred tax assets have been fully offset by a valuation allowance. The change in the valuation allowance is primarily a result of the net operating loss carry-forwards.
	Taxes computed at the statutory federal income tax rate of 34% are reconciled to the provision for income taxes as follows (dollars in thousands):
		2013			2012
	Effective income tax rate		0	%		0	%
	United States Federal income tax at statutory rate	$	(1,091	)	$	577
	State income taxes (net of federal benefit)		5			99
	Warrant expense		173			(1,621	)
	Prior year deferred true up		(1,684	)		(365	)
	Change in valuation reserves		(1,863	)		1,119
	FIN 48		4,396			—
	Other		66			193
	Provision for income taxes	$	2		$	2
	At September 30, 2013, we had unrecognized tax benefits of $4,397,000, all of which would impact the effective tax rate if recognized, however a valuation allowance would be recorded against this amount.  During Fiscal 2013, unrecognized tax benefits increased by $4,397,000 as a result of the tax positions taken in prior years and current year.  No interest and penalties have been provided for with respect to the unrecognized tax benefits.
	A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
		Amount
		(in thousands)
	Unrecognized tax benefits at October 1, 2012	$	-
	Additions for tax positions related to current year		212
	Additions/reductions for tax positions taken in prior years		4,185
	Settlements		-
	Lapse of Limitations		-
	Unrecognized tax benefits at September 30, 2013	$	4,397
	The Company’s federal income tax returns for the tax years 2009 to 2011 remain open to examination. The Company’s California income tax returns for the tax years 2008 to 2011 remain open to examination.

I_Agreements

I. Agreements	12 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
I. Agreements	'
	Duke Licenses
	The Company has obtained exclusive worldwide licenses (the “Duke Licenses”) from Duke University (“Duke”) to develop, make, have made, use and sell products using certain technology in the field of free radical and antioxidant research, developed by certain scientists at Duke. Future discoveries in the field of antioxidant research from these scientists’ laboratories at Duke are also covered by the Duke Licenses. The Duke Licenses require the Company to use its best efforts to pursue development of products using the licensed technology and compounds. These efforts are to include the manufacture or production of products for testing, development and sale. Aeolus is also obligated to use its best efforts to have the licensed technology cleared for marketing in the United States by the U.S. Food and Drug Administration and in other countries in which Aeolus intends to sell products using the licensed technology. Aeolus will pay royalties to Duke on net product sales during the terms of the Duke Licenses, and milestone payments upon certain regulatory approvals and annual sales levels. In addition, Aeolus is obligated under the Duke Licenses to pay all or a portion of patent prosecution, maintenance and defense costs. Unless earlier terminated, the Duke Licenses continue until the expiration of the last to expire issued patent on the licensed technology.
	National Jewish Medical and Research Center Agreements
	Aeolus has an exclusive worldwide license (“NJH License”) from National Jewish Health to develop, make, have made, use and sell products using certain technology developed by certain scientists at NJH. The NJH License requires Aeolus to use commercially reasonable efforts to diligently pursue the development and government approval of products using the licensed technology. Aeolus will be obligated to pay royalties to NJH on net product sales during the term of the NJH License and a milestone payment upon regulatory approval, if obtained. In addition, Aeolus is obligated under the NJH License to pay all or a portion of patent prosecution, maintenance and defense costs. Unless earlier terminated, the NJH License continues until the expiration of the last to expire issued patent on the licensed technology.
	Elan Corporation, plc
	In May 2002, the Company entered into a collaboration transaction with affiliates of Elan Corporation, plc for the development of the Company’s catalytic antioxidant compounds as a treatment for tissue damage from cancer radiation and chemotherapy. Although Elan and the Company terminated this collaboration in January 2003, the Company will pay Elan a royalty on net sales of its catalytic antioxidant products sold, if any, for the prevention and treatment of radiation-induced and chemotherapy-induced tissue damage.

J_Quarterly_Financial_Data_una

J. Quarterly Financial Data (unaudited)	12 Months Ended
	Sep. 30, 2013
Quarterly Financial Information Disclosure [Abstract]	'
J. Quarterly Financial Data (unaudited)	'
		First			Second			Third			Fourth			Total
		Quarter			Quarter			Quarter			Quarter			Year
		(in thousands, except per share amounts)
	Fiscal 2013
	Total revenue	$	1,342		$	859		$	844		$	883		$	3,928
	Net income (loss)	$	4,028		$	(5,782	)	$	(786	)	$	(668	)	$	(3,208	)
	Net income available to stockholders – Basic	$	2,049		$	(5,782	)	$	(786	)	$	(668	)	$	(3,208	)
	Net income available to stockholders – Diluted	$	(200	)	$	(5,782	)	$	(786	)	$	(668	)	$	(3,208	)
	Basic net income (loss) per common share attributable to common stockholders	$	0.03		$	(0.06	)	$	(0.01	)	$	0		$	(0.03	)
	Diluted net income (loss) per common share attributable to common stockholders	$	0		$	(0.06	)	$	(0.01	)	$	0		$	(0.03	)
	Fiscal 2012
	Total revenue	$	2,215		$	2,231		$	1,448		$	1,399		$	7,293
	Net income (loss)	$	2,977		$	2,763		$	3,064		$	(7,106	)	$	1,698
	Net income available to stockholders – Basic	$	1,487		$	1,381		$	1,558		$	(7,106	)	$	856
	Net income available to stockholders – Diluted	$	415		$	(283	)	$	(307	)	$	(7,106	)	$	(2,161	)
	Basic net income (loss) per common share attributable to common stockholders	$	0.02		$	0.02		$	0.02		$	(0.11	)	$	0.01
	Diluted net income (loss) per common share attributable to common stockholders	$	(0.01	)	$	0		$	0		$	(0.11	)	$	(0.03	)

K_Net_Income_Loss_Per_Common_S

K. Net Income (Loss) Per Common Share	6 Months Ended
	Mar. 31, 2014
Earnings Per Share [Abstract]	'
D. Net Income (Loss) Per Common Share	'
	The Company computes basic net income (loss) per weighted average share attributable to common stockholders using the weighted average number of shares of common stock outstanding during the period. The Company computes diluted net income (loss) per weighted average share attributable to common stockholders using the weighted average number of shares of common and dilutive potential common shares outstanding during the period. Potential common shares outstanding consist of stock options, convertible debt, warrants and convertible preferred stock using the treasury stock method and are excluded if their effect is anti-dilutive. Diluted weighted average common shares did not include any incremental shares for the six months ended March 31, 2014 and 2013 issuable upon the exercise or conversion of convertible debt, stock options to purchase common stock, convertible preferred stock and warrants to purchase common stock. Diluted weighted average common shares excluded incremental shares of approximately 2,294,000  and 5,069,000 respectively, for the six months ended 2014 and 2013, due to their anti-dilutive effect.
		For the three months						For the six months
		ended March 31,						ended March 31,
		2014			2013			2014			2013
		(in thousands, except per share data)
	Numerator:
	Net income (loss)	$	(437	)	$	(5,782	)	$	(1,132	)	$	(1,755	)
	Less net income (loss) attributable to participating securities		-			-			-			-
	Net income (loss) attributable to common stockholders – basic	$	(437	)	$	(5,782	)	$	(1,132	)	$	(1,755	)
	Net income (loss)	$	(437	)	$	(5,782	)	$	(1,132	)	$	(1,755	)
	Less gain (loss) on warrant liability for participating
	common warrants		-			-			-			-
	Net loss attributable to common stockholders – diluted	$	(437	)	$	(5,782	)	$	(1,132	)	$	(1,755	)
	Denominator:
	Weighted-average shares used in computing net income per
	share attributable to common stockholders – basic		134,550			94,425			134,550			69,664
	Effect of potentially dilutive securities:
	Common stock warrants		-			-			-			-
	Convertible preferred warrants		-			-			-			-
	Convertible preferred stock		-			-			-			-
	Common stock options		-			-			-			-
	Non-participating common stock warrants		-			-			-			-
	Weighted-average shares used in computing net income
	(loss) per share attributable to common stockholders - diluted		134,550			94,425			134,550			69,664
	Basic net income per common share	$	0		$	(0.06	)	$	(0.01	)	$	(0.03	)
	Diluted net income (loss) per common share	$	0		$	(0.06	)	$	(0.01	)	$	(0.03	)

L_Subsequent_Events

L. Subsequent Events	6 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
E. Subsequent Events	'
	On May 5, 2014, the Company executed a Modification of Contract (the "Modification") with the BARDA. The purpose of the Modification is to 1) make available $1,778,000 to reimburse the Company for actual costs incurred under the first three years of the BARDA Contract, 2) establish an increased provisional indirect billing rate for fiscal year 2014 and the rest of the BARDA Contract period of performance, and 3) establish a cap on the indirect billing rate for the remaining contract period of performance.
	The effect of the Modification will be (a) to increase the cash balance of the Company and (b) to increase the billing rate for indirect costs under the contract. The Company believes that the cash from the modification, in addition to its existing cash balance, will be sufficient to operate the company for at least two years.

A_Organization_Business_and_Su1

A. Organization, Business and Summary of Significant Accounting Policies (Policies)

6 Months Ended

12 Months Ended

Mar. 31, 2014

Sep. 30, 2013

A. Organization Business And Summary Of Significant Accounting Policies Policies

'

'

Organization

'

'

Organization

Organization

The accompanying unaudited condensed consolidated financial statements include the accounts of Aeolus Pharmaceuticals, Inc. and its wholly-owned subsidiary, Aeolus Sciences, Inc. (collectively, “we,” “us,” “Company” or “Aeolus”). All significant intercompany accounts and transactions have been eliminated in consolidation.  Aeolus is a Delaware corporation. The Company’s primary operations are located in Mission Viejo, California.

The accompanying audited consolidated financial statements include the accounts of Aeolus Pharmaceuticals, Inc. and its wholly-owned subsidiary, Aeolus Sciences, Inc. (collectively “we,” “us,” “Company” or “Aeolus”). All significant intercompany accounts and transactions have been eliminated in consolidation.  Aeolus is a Delaware corporation. The Company’s primary operations are located in Mission Viejo, California.

Business

'

'

Business

Business

Aeolus is a biopharmaceutical company developing a platform of a new class of broad-spectrum, catalytic antioxidant compounds that protect healthy tissue from the damaging effects of oxidative stress. The principal endeavor of the Company is protecting against damaging effects of oxidative stress induced by radiation. Its first compound, AEOL 10150, is being developed as a medical countermeasure against the pulmonary effects of radiation exposure under a contract (“BARDA Contract”) valued at up to $118.4 million with the Biomedical Advanced Research and Development Authority (“BARDA”), a division of the Department of Health and Human Services (“HHS”). Aeolus is in its fourth year under the BARDA Contract. Aeolus also receives development support from the National Institutes of Health (“NIH”) for development of the compound as a medical countermeasure against radiation and exposure to chemical and nerve agents. Additionally, Aeolus is developing AEOL 10150 for oncology indications, where it is used in combination with radiation and chemotherapy. Aeolus’ strategy is to leverage the substantial investment in toxicology, manufacturing, and preclinical and clinical studies made by U.S. government agencies in AEOL 10150, including the BARDA Contract, to develop the compound efficiently for use in oncology.

Aeolus is developing a new class of broad-spectrum, catalytic antioxidant compounds based on technology discovered at Duke University and National Jewish Health.  The Company’s lead compound, 10150, is a metalloporphyrin specifically designed to neutralize reactive oxygen and nitrogen species. The Company is developing 10150 as a medical countermeasure against the pulmonary effects of radiation exposure under a contract (“BARDA Contract”) valued at up to $118.4 million with the Biomedical Advanced Research and Development Authority (“BARDA”), a division of the Department of Health and Human Services (“HHS”).  Additionally, Aeolus receives development support from the National Institutes of Health (“NIH”) for development of the compound as a medical countermeasure against radiation and chemical exposure.

Basis of Presentation

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Basis of Presentation

Basis of Presentation

All significant intercompany activity has been eliminated in the preparation of the unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Some information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the consolidated financial position, results of operations and cash flows of the Company. The condensed balance sheet at September 30, 2013 was derived from the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013, filed with the Securities and Exchange Commission (the “SEC”) on December 20, 2013.

The consolidated financial statements include the accounts of Aeolus and its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated. The Company uses the equity method to account for its 35.0% ownership interest in CPEC.

Use of Estimates

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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 and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those 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 and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include revenue recognition, warrant liability, allowance for doubtful accounts, stock-based compensation and warrant expense. Actual results could differ from those estimates.

Cash and Cash Equivalents

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Cash and Cash Equivalents

Cash and Cash Equivalents

The Company invests available cash in short-term bank deposits. Cash and cash equivalents include investments with maturities of six months or less at the date of purchase. The carrying value of cash and cash equivalents approximate their fair market value at March 31, 2014 and September 30, 2013 due to their short-term nature.

The Company invests available cash in short-term bank deposits. Cash and cash equivalents include investments with maturities of three months or less at the date of purchase. The carrying value of cash and cash equivalents approximate their fair market value at September 30, 2013 and 2012 due to their short-term nature.

Significant customer and accounts receivable

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Significant customers and accounts receivable

Significant customers and accounts receivable

For the six months ended March 31, 2014, the Company’s primary customer was BARDA. For the six months ended March 31, 2014, revenues from BARDA comprised 100% of total revenues. As of March 31, 2014, the Company’s receivable balances were comprised 100% from this customer. There was $195,000 of unbilled accounts receivable, included in accounts receivable, as of March 31, 2014. Unbilled accounts receivable relates to work that has been performed, though invoicing has not yet occurred. All of the unbilled receivables are expected to be billed and collected within the next 12 months. Accounts receivable are stated at invoice amounts and consist primarily of amounts due from BARDA as well as amounts due under reimbursement contracts with other government entities and non-government and philanthropic organizations. If necessary, the Company records a provision for doubtful receivables to allow for any amounts which may be unrecoverable. This provision is based upon an analysis of the Company’s prior collection experience, customer creditworthiness and current economic trends. As of March 31, 2014 and September 30, 2013, an allowance for doubtful accounts was not recorded as the collection history from the Company’s customer indicated that collection was probable.

For the year ended September 30, 2013, the Company’s primary customer was BARDA. For the year ended September 30, 2013, revenues from BARDA comprised 100% of total revenues. As of September 30, 2013, the Company’s receivable balances were comprised 100% from this customer. Unbilled accounts receivable, included in accounts receivable, totaling $165,000 as of September 30, 2013 relate to work that has been performed, though invoicing has not yet occurred. All of the unbilled receivables are expected to be billed and collected within the next 12 months. Accounts receivable are stated at invoice amounts and consist primarily of amounts due from HHS as well as amounts due under reimbursement contracts with other government entities and non-government and philanthropic organizations. If necessary, the Company records a provision for doubtful receivables to allow for any amounts which may be unrecoverable. This provision is based upon an analysis of the Company’s prior collection experience, customer creditworthiness and current economic trends. As of September 30, 2013 and 2012, an allowance for doubtful accounts was not recorded as the collection history from the Company’s customers indicated that collection was probable.

Concentrations of credit risk

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Concentrations of credit risk

Concentrations of credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high quality financial institutions. Management believes that the financial risks associated with its cash and cash equivalents and investments are minimal. Because accounts receivable consist primarily of amounts due from the U.S. federal government agencies, management deems there to be minimal credit risk.

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high quality financial institutions. Management believes that the financial risks associated with its cash and cash equivalents and investments are minimal. Because accounts receivable consist primarily of amounts due from the U.S. federal government agencies, management deems there to be minimal credit risk.

Revenue Recognition

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Revenue Recognition

Revenue Recognition

Aeolus recognizes revenue in accordance with the authoritative guidance for revenue recognition.  Revenue is recognized when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery (or passage of title) has occurred or services have been rendered, (iii) the seller’s price to the buyer is fixed or determinable, and (iv) collectability is reasonably assured.

Aeolus recognizes revenue in accordance with the authoritative guidance for revenue recognition.  Revenue is recognized when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery (or passage of title) has occurred or services have been rendered, (iii) the seller’s price to the buyer is fixed or determinable, and (iv) collectability is reasonably assured.

The BARDA Contract is classified as a “cost-plus-fixed-fee” contract. Aeolus recognizes government contract revenue in accordance with the authoritative guidance for revenue recognition including the authoritative guidance specific to federal government contracts. Reimbursable costs under the contract primarily include direct labor, subcontract costs, materials, equipment, travel, and indirect costs. In addition, we receive a fixed fee under the BARDA Contract, which is unconditionally earned as allowable costs are incurred and is not contingent on success factors. Reimbursable costs under the BARDA Contract, including the fixed fee, are generally recognized as revenue in the period the reimbursable costs are incurred and become billable.

The BARDA Contract is classified as a “cost-plus-fixed-fee” contract. Aeolus recognizes government contract revenue in accordance with the authoritative guidance for revenue recognition including the authoritative guidance specific to federal government contracts. Reimbursable costs under the contract primarily include direct labor, subcontract costs, materials, equipment, travel, and indirect costs. In addition, we receive a fixed fee under the BARDA Contract, which is unconditionally earned as allowable costs are incurred and is not contingent on success factors. Reimbursable costs under this BARDA Contract, including the fixed fee, are generally recognized as revenue in the period the reimbursable costs are incurred and become billable.

Fair Value of Financial Instruments

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Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying amounts of Aeolus’ short-term financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate their fair values due to their short maturities.

The carrying amounts of our short-term financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate their fair values due to their short maturities.

Fair Value Measurements

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Fair Value Measurements

Fair Value Measurements

The Company adopted Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, for financial and non-financial assets and liabilities.

The Company adopted Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, for financial and non-financial assets and liabilities.

ASC Topic 820 discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The statement utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

ASC 820 discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The Company utilizes the market approach. The statement utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

·

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

·

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

·

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

·

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

·

Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

·

Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

The warrant liability is measured at fair market value on a recurring basis as of September 30, 2013 and 2012 and is summarized below (in thousands):

Fair value at September 30, 2013

Fair value at September 30, 2012

Level 1

Level 2

Level 3

Level 1

Level 2

Level 3

$

—

$

—

$

—

$

—

$

—

$

19,319

The following table summarizes, as of September 30, 2013, the warrant activity subject to Level 3 inputs which are measured on a recurring basis:

Fair value measurements of warrants using significant unobservable inputs (Level 3)

Balance at September 30, 2012

$

19,319

Change in fair value of warrant liability

(1,574

)

Warrant repricing modification charge

2,084

Exercised

(19,829

)

Balance at September 30, 2013

$

-

Research and Development

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Research and Development

Research and Development

Research and development costs are expensed in the period incurred.

Research and development costs are expensed in the period incurred.

Leases

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Leases

Leases

The Company leases office space and office equipment under month to month operating lease agreements. For the six months ended March 31, 2014 and 2013, total rent expense was approximately $21,000 and $20,000, respectively.

The Company leases office space and office equipment under month to month operating lease agreements. For the years ended September 30, 2013 and 2012, total rent expense was approximately $41,000 and $36,000, respectively.

Income Taxes

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Income Taxes

Income Taxes

The Company recognizes liabilities or assets for the deferred tax consequences of temporary differences between the tax bases of assets or liabilities and their reported amounts in the financial statements. These temporary differences will result in taxable or deductible amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. A valuation allowance is established when management determines that is more likely than not that all or a portion of a deferred tax asset will not be realized. Management evaluates the Company’s ability to realize its net deferred tax assets on a quarterly basis and valuation allowances are provided, as necessary. During this evaluation, management reviews its forecasts of income in conjunction with other positive and negative evidence surrounding the Company’s ability to realize its deferred tax assets to determine if a valuation allowance is required. Adjustments to the valuation allowance will increase or decrease the Company’s income tax provision or benefit. Management also applies the relevant guidance to determine the amount of income tax expense or benefit to be allocated among continuing operations, discontinued operations, and items charged or credited directly to stockholders’ equity.

The Company recognizes liabilities or assets for the deferred tax consequences of temporary differences between the tax bases of assets or liabilities and their reported amounts in the financial statements. These temporary differences will result in taxable or deductible amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. A valuation allowance is established when management determines that is more likely than not that all or a portion of a deferred tax asset will not be realized. Management evaluates the Company’s ability to realize its net deferred tax assets on a quarterly basis and valuation allowances are provided, as necessary. During this evaluation, management reviews its forecasts of income in conjunction with other positive and negative evidence surrounding the Company’s ability to realize its deferred tax assets to determine if a valuation allowance is required. Adjustments to the valuation allowance will increase or decrease the Company’s income tax provision or benefit. Management also applies the relevant guidance to determine the amount of income tax expense or benefit to be allocated among continuing operations, discontinued operations, and items charged or credited directly to stockholders’ equity (deficit).

A tax position must meet a minimum probability threshold before a financial statement benefit is recognized. The minimum threshold is a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation process, based on the technical merits of the position. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense.

A tax position must meet a minimum probability threshold before a financial statement benefit is recognized. The minimum threshold is a tax position that is more likely than not be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation process, based on the technical merits of the position. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense.

Net Income (Loss) Per Common Share

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Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share

The Company computes net income attributable to common stockholders using the two-class method required for participating securities. Under the two-class method, securities that participate in dividends, such as the Company’s outstanding preferred shares, preferred warrants, and most common stock warrants, are considered “participating securities.” Our preferred shares, preferred warrants and common stock warrants are considered “participating securities” because they include non-forfeitable rights to dividends.

The Company computes basic net income (loss) per weighted average share attributable to common stockholders using the weighted average number of shares of common stock outstanding during the period. The Company computes diluted net income (loss) per weighted average share attributable to common stockholders using the weighted average number of shares of common and dilutive potential common shares outstanding during the period. Potential common shares outstanding consist of stock options, convertible debt, warrants and convertible preferred stock using the treasury stock method and are excluded if their effect is anti-dilutive. Diluted weighted average common shares did not include any incremental shares for the fiscal year ended September 30, 2013 and included incremental shares of approximately 9,448,000 shares for the fiscal year ended September 30, 2012 issuable upon the exercise or conversion of convertible debt, stock options to purchase common stock, convertible preferred stock and warrants to purchase common stock. Diluted weighted average common shares excluded incremental shares of approximately 2,586,000 and 51,364,000, respectively, for the fiscal year 2013 and 2012, due to their anti-dilutive effect.

In applying the two-class method, (i) basic net income (loss) per share is computed by dividing net income (less any dividends paid on participating securities) by the weighted average number of shares of common stock and participating securities outstanding for the period and (ii) diluted earnings per share may include the additional effect of other securities, if dilutive, in which case the dilutive effect of such securities is calculated using the treasury stock method. The Company does have other securities with a dilutive effect outstanding, so the Company’s basic net income (loss) per share uses the two-class method and diluted net income (loss) per share uses the treasury stock method.

Fiscal Year Ended September 30,

2013

2012

Numerator:

Net income (loss)

$

(3,208

)

$

1,698

Net income attributable to participating securities

-

(842

)

Net income (loss) attributable to common stockholders – basic

$

(3,208

)

$

856

Net income (loss)

$

(3,208

)

$

1,698

Less gain (loss) on warrant liability for participating common warrants

-

3,859

Net income (loss) attributable to common stockholders – diluted

$

(3,208

)

$

(2,161

)

Denominator:

Weighted-average shares used in computing net income (loss) per share attributable to common stockholders – basic

106,554

61,593

Effect of potentially dilutive securities:

Common stock warrants

—

9,448

Convertible preferred warrants

—

—

Convertible preferred stock

—

—

Common stock options

—

—

Non-participating common stock warrants

—

—

Weighted-average shares used in computing net income (loss) per share attributable to common stockholders – diluted

106,554

71,041

Basic net income (loss) per common share

$

(0.03

)

$

0.01

Diluted net income (loss) per common share

$

(0.03

)

$

(0.03

)

Accounting for Stock-Based Compensation

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Accounting for Stock-Based Compensation

Accounting for Stock-Based Compensation

The Company recognizes stock based compensation expense in the statement of operations based upon the fair value of the equity award amortized over the vesting period.

The Company recognizes stock based compensation expense in the statement of operations based upon the fair value of the equity award amortized over the vesting period.

Segment Reporting

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Segment Reporting

Segment Reporting

The Company currently operates in one segment.

The Company currently operates in one segment.

Warrant Liability

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Warrant Liability

Increases or decreases in fair value of the warrants are included as a component of other income (expense) in the accompanying statement of operations for the respective period. As of September 30, 2013, the liability for warrants decreased to $0 from approximately $19,319,000 as of September 30, 2012, due to the exercise of the related warrants (see note F) resulting in a loss to statement of operations of $510,000. The warrant liability and revaluations have not had any impact on the Company’s working capital, liquidity or business operations. The Company previously had warrants with an embedded feature that met the requirements of derivative accounting per ASC Topic 815, Derivatives and Hedging. The Company recorded these warrants at their fair value in accordance with ASC Topic 820 and was required to revalue its liability for these warrants on a quarterly basis. All the warrants subject to this accounting treatment were exercised in full on February 19, 2013 in connection with the financing. See note F below for additional information.

A_Organization_Business_and_Su2

A. Organization, Business and Summary of Significant Accounting Policies (Tables)	6 Months Ended													12 Months Ended
	Mar. 31, 2014													Sep. 30, 2013
A. Organization Business And Summary Of Significant Accounting Policies Tables	'													'
Fair Value Measurements	'													'
														Fair value at September 30, 2013										Fair value at September 30, 2012
														Level 1				Level 2				Level 3		Level 1		Level 2		Level 3
														$	—			$	—			$	—	$	—	$	—	$	19,319
Fair value measurements of warrants using significant unobservable inputs	'													'
														Fair value measurements of warrants using significant unobservable inputs (Level 3)
														Balance at September 30, 2012		$	19,319
														Change in fair value of warrant liability			(1,574	)
														Warrant repricing modification charge			2,084
														Exercised			(19,829	)
														Balance at September 30, 2013		$	-
Schedule of Earnings Per Share, Basic and Diluted	'													'
																Fiscal Year Ended September 30,
		For the three months						For the six months								2013				2012
		ended March 31,						ended March 31,						Numerator:
		2014			2013			2014			2013			Net income (loss)		$	(3,208	)		$	1,698
		(in thousands, except per share data)												Net income attributable to participating securities			-				(842	)
	Numerator:													Net income (loss) attributable to common stockholders – basic		$	(3,208	)		$	856
	Net income (loss)	$	(437	)	$	(5,782	)	$	(1,132	)	$	(1,755	)
	Less net income (loss) attributable to participating securities		-			-			-			-
	Net income (loss) attributable to common stockholders – basic	$	(437	)	$	(5,782	)	$	(1,132	)	$	(1,755	)	Net income (loss)		$	(3,208	)		$	1,698
														Less gain (loss) on warrant liability for participating common warrants			-				3,859
	Net income (loss)	$	(437	)	$	(5,782	)	$	(1,132	)	$	(1,755	)	Net income (loss) attributable to common stockholders – diluted		$	(3,208	)		$	(2,161	)
	Less gain (loss) on warrant liability for participating													Denominator:
	common warrants		-			-			-			-		Weighted-average shares used in computing net income (loss) per share attributable to common stockholders – basic			106,554				61,593
	Net loss attributable to common stockholders – diluted	$	(437	)	$	(5,782	)	$	(1,132	)	$	(1,755	)	Effect of potentially dilutive securities:
														Common stock warrants			—				9,448
	Denominator:													Convertible preferred warrants			—				—
	Weighted-average shares used in computing net income per													Convertible preferred stock			—				—
	share attributable to common stockholders – basic		134,550			94,425			134,550			69,664		Common stock options			—				—
	Effect of potentially dilutive securities:													Non-participating common stock warrants			—				—
	Common stock warrants		-			-			-			-		Weighted-average shares used in computing net income (loss) per share attributable to common stockholders – diluted			106,554				71,041
	Convertible preferred warrants		-			-			-			-		Basic net income (loss) per common share		$	(0.03	)		$	0.01
	Convertible preferred stock		-			-			-			-		Diluted net income (loss) per common share		$	(0.03	)		$	(0.03	)
	Common stock options		-			-			-			-
	Non-participating common stock warrants		-			-			-			-
	Weighted-average shares used in computing net income
	(loss) per share attributable to common stockholders - diluted		134,550			94,425			134,550			69,664
	Basic net income per common share	$	0		$	(0.06	)	$	(0.01	)	$	(0.03	)
	Diluted net income (loss) per common share	$	0		$	(0.06	)	$	(0.01	)	$	(0.03	)

F_Stockholders_Equity_Tables

F. Stockholder's Equity (Tables)	6 Months Ended											12 Months Ended
	Mar. 31, 2014											Sep. 30, 2013
F. Stockholders Equity Tables	'											'
Warrants for Common Stock Outstanding	'											'
	As of March 31, 2014, warrants to purchase an aggregate of 17,879,627 shares of common stock were outstanding with a weighted average exercise price of $0.30 per share. Details of the warrants for common stock outstanding at March 31, 2014 are as follows:											As of September 30, 2013, warrants to purchase an aggregate of 17,879,627 shares of common stock were outstanding. Details of the warrants for common stock outstanding at September 30, 2013 were as follows:
	Number of Shares	Exercise Price			Expiration Date							Number of Shares			Exercise Price				Expiration Date
	100,000	$	0.5		May-14								100,000		$	0.5			May-14
	100,000	$	1		May-14								100,000		$	1			May-14
	100,000	$	1.5		May-14								100,000		$	1.5			May-14
	125,000	$	0.51		Jun-14								125,000		$	0.51			Jun-14
	125,000	$	1		Jun-14								125,000		$	1			Jun-14
	20,000	$	0.39		Sep-14								20,000		$	0.39			Sep-14
	15,000	$	0.5		Sep-14								15,000		$	0.5			Sep-14
	15,000	$	0.6		Sep-14								15,000		$	0.6			Sep-14
	50,000	$	0.38		Apr-15								50,000		$	0.38			Apr-15
	50,000	$	0.5		May-16								50,000		$	0.5			May-16
	50,000	$	0.5		Jul-16								50,000		$	0.5			Jul-16
	50,000	$	1		Jul-16								50,000		$	1			Jul-16
	50,000	$	1.5		Jul-16								50,000		$	1.5			Jul-16
	50,000	$	2		Jul-16								50,000		$	2			Jul-16
	50,000	$	2.5		Jul-16								50,000		$	2.5			Jul-16
	1,337,627	$	0.4		Mar-17								1,337,627		$	0.4			Mar-17
	325,000	$	0.4		Apr-17								325,000		$	0.4			Apr-17
	300,000	$	0.258		Jun-17								300,000		$	0.258			Jun-17
	140,000	$	0.35		Oct-17								140,000		$	0.35			Oct-17
	13,085,000	$	0.25		Feb-18								13,085,000		$	0.25			Feb-18
	1,742,000	$	0.25		Mar-18								1,742,000		$	0.25			Mar-18
	17,879,627	$	0.3										17,879,627
												As of September 30, 2012, warrants to purchase an aggregate of 62,132,626 shares of common stock were outstanding. Details of the warrants for common stock outstanding at September 30, 2012 were as follows:
												Number of Shares			Exercise Price				Expiration Date
													100,000		$	0.5			May-14
													100,000		$	1			May-14
													100,000		$	1.5			May-14
													125,000		$	0.65			Jun-14
													125,000		$	1			Jun-14
													20,000		$	0.39			Sep-14
													15,000		$	0.5			Sep-14
													15,000		$	0.6			Sep-14
													50,000		$	0.38			Apr-15
													50,000		$	0.5			May-16
													50,000		$	0.5			Jul-16
													50,000		$	1			Jul-16
													50,000		$	1.5			Jul-16
													50,000		$	2			Jul-16
													50,000		$	2.5			Jul-16
													43,614,285		$	0.28			Oct-16
													1,337,627		$	0.4			Mar-17
													325,000		$	0.4			Apr-17
													300,000		$	0.258			Jun-17
													11,785,714		$	0.28			Jul-17
													35,000		$	0.3			Aug-17
													1,875,000		$	0.5			Aug-17
													35,000		$	0.44			Sep-17
													1,875,000		$	0.5			Dec-17
													62,132,626
Schedule of Warrants for Preferred Stock	'											'
												As of September 30, 2013, one warrant to purchase an aggregate of 896,037 shares of preferred stock was outstanding. Details of the warrant for preferred stock outstanding at September 30, 2013 were as follows:
												Number of Shares		Exercise Price			Expiration Date
													896,037		$	0.01			Feb-16
													896,037
												As of September 30, 2012, one warrant to purchase an aggregate of 896,037 shares of preferred stock was outstanding. Details of the warrant for preferred stock outstanding at September 30, 2012 were as follows:
												Number of Shares		Exercise Price			Expiration Date
													896,037		$	0.01			Feb-16
													896,037
Summary Of Warrant Activity	'											'
																	Weighted Average
	Below is a summary of warrant activity (“common and preferred”) for the six months ended March 31, 2014:																			Remaining		Aggregate
														Number				Exercise		Contractual		Intrinsic
						Weighted Average								of Shares				Price		Term (in years)		Value
		Number of Shares				Exercise Price		Remaining Contractual		Aggregate		Outstanding at 9/30/2011		61,936,036			$	0.3		5.2 years	$	8,258
								Term (in years)		Intrinsic Value		Granted		1,997,627			$	0.38		4.5 years	$	35
	Outstanding at 9/30/2013		18,775,664			$	0.29		4.05	$	693,340	Exercised		(940,000	)		$	0.28			$	—
	Granted		-			$	-		-	$	-	Cancelled		—			$	—			$	—
	Exercised		-			$	-		-	$	-	Forfeited		—			$	—			$	—
	Expired or Canceled		-			$	-		-	$	-	Outstanding at 9/30/2012		62,993,663			$	0.3		4.2 years	$	5,344
	Forfeited		-			$	-		-	$	-	Granted		14,932,000			$	0.25		4.4 years	$	444,810
	Vested		-			$	-		-	$	-	Exercised		(59,149,999	)		$	0.01			$	19,519,500
	Outstanding at 3/31/2014		18,775,664			$	0.29		3.55	$	215,048	Cancelled		—			$	—			$	—
												Forfeited		—			$	—			$	—
	Below is a summary of warrant activity (“common and preferred”) for the six months ended March 31, 2013:											Outstanding at 9/30/2013		18,775,664			$	0.29		4.1 years	$	693,340
												Exercisable at 9/30/2013		18,775,664			$	0.29		4.1 years	$	693,340
						Weighted Average
		Number of Shares				Exercise Price		Remaining Contractual Term (in years)		Aggregate Intrinsic Value
	Outstanding at 9/30/2012		62,993,663			$	0.3		4.2	$	5,344,623
	Granted		14,932,000			$	0.25		4.89	$	1,039,373
	Exercised		(59,149,999	)		$	0.01		3.75	$	19,519,500
	Expired or Canceled		-			$	-		-	$	-
	Forfeited		-			$	-		-	$	-
	Vested		-			$	-		-	$	-
	Outstanding at 3/31/2013		18,775,664			$	0.29		4.55	$	1,335,864

G_StockBased_Compensation_Tabl

G. Stock-Based Compensation (Tables)	6 Months Ended															12 Months Ended
	Mar. 31, 2014															Sep. 30, 2013
G. Stock-Based Compensation Tables	'															'
Summary Of Stock Option Activity	'															'
	Below is a summary of stock option activity for the six months ended March 31, 2014:																					Weighted Average
						Weighted Average																				Remaining			Aggregate
		Number of Shares				Exercise Price				Remaining Contractual			Aggregate						Number				Exercise			Contractual			Intrinsic
										Term (in years)			Intrinsic Value						of Shares				Price			Term (in years)			Value
	Outstanding at 9/30/2013		11,214,898			$	0.52				6.67		$	3,825		Outstanding at 9/30/2011			8,942,628			$	0.82			6.5 years		$	259
	Granted		-			$	-				-		$	-		Granted			691,250			$	0.3			9.6 years		$	49
	Exercised		-			$	-				-		$	-		Exercised			—			$	—					$	—
	Expired or Canceled		(62,890	)		$	2.93				-		$	-		Cancelled			(85,217	)		$	10.77					$	—
	Forfeited		-			$	-				-		$	-		Forfeited			(75,000	)		$	0.41					$	3
	Vested (RSAs)		-			$	-				-		$	-		Outstanding at 9/30/2012			9,473,661			$	0.7			5.8 years		$	154
	Outstanding at 3/31/2014		11,152,008			$	0.51				6.21		$	1,463		Granted			3,070,000			$	0.4			9.4 years		$	—
																Exercised			—			$	—					$	—
	For the six months ended March 31, 2014, all stock options were granted with an exercise price at or above the fair market value of the Company’s common stock on the date of grant.															Cancelled			(1,328,763	)		$	1.46					$	—
																Forfeited			—			$	—					$	—
	Below is a summary of stock option activity for the six months ended March 31, 2013:															Outstanding at 9/30/2013			11,214,898			$	0.52			6.7 years		$	4
																Exercisable at 9/30/2013			9,732,612			$	0.54			6.2 years		$	4
						Weighted Average
		Number of Shares				Exercise Price				Remaining Contractual			Aggregate
										Term (in years)			Intrinsic Value
	Outstanding at 9/30/2012		9,473,661			$	0.7				5.81		$	153,850
	Granted		2,745,000			$	0.39				9.92		$	901
	Exercised		-			$	-				-		$	-
	Expired or Canceled		(72,744	)		$	0.85				-		$	-
	Forfeited		-			$	-				-		$	-
	Vested (RSAs)		-			$	-				-		$	-
	Outstanding at 3/31/2013		12,145,917			$	0.63				6.38		$	45,084
Schedule of non-vested shares	'															'
																								Weighted Average
																				Number				Grant-Date
																				of Shares				Fair Value
																	Nonvested at September 30, 2011				592,907				295,461
																	Granted				691,250				190,660
																	Vested				(839,891	)			(369,320	)
																	Forfeited				(37,500	)			(10,607	)
																	Nonvested at September 30, 2012				406,766				106,194
																	Granted				3,070,000				1,135,070
																	Vested				(1,994,480	)			(687,327	)
																	Forfeited				—				—
																	Nonvested at September 30, 2013				1,482,286				553,937
Details Of Stock Options	'															'
	The details of stock options for the six months ended March 31, 2014 were as follows:
		Options Outstanding							Options Exercisable
							Weighted						Weighted					Options Outstanding												Options Exercisable
		Number		Weighted			Average		Number		Weighted		Average														Weighted								Weighted
	Range of	Outstanding		Average			Remaining		Exercisable		Average		Remaining					Number					Weighted				Average				Number	Weighted			Average
	Exercise	at March 31,		Exercise			Contractual		At March 31,		Exercise		Contractual			Range of		Outstanding at					Average				Remaining				Exercisable at	Average			Remaining
	Prices	2014		Price			Life (in years)		2014		Price		Life (in years)			Exercise		September 30,					Exercise				Contractual				September 30,	Exercise			Contractual
	$0.23-$0.30	1,612,500		$	0.29		5.81		1,612,500		$	0.29	5.81			Prices		2013					Price				Life (in years)				2013	Price			Life (in years)
	$0.31-$0.40	6,501,500		$	0.39		7.32		6,501,500		$	0.39	7.32			$0.23-$0.30			1,612,500				$	0.29				6.3			1,609,689		$	0.29		6.3
	$0.41-$0.50	502,000		$	0.45		7.75		447,833		$	0.45	7.58			$0.31-$0.40			6,501,500				$	0.39				7.82			5,238,692		$	0.39		7.44
	$0.51-$0.60	963,750		$	0.59		5.14		963,750		$	0.59	5.14			$0.41-$0.50			502,000				$	0.45				8.25			285,333		$	0.45		7.21
	$0.61-$0.70	66,500		$	0.68		2.38		66,500		$	0.68	2.38			$0.51-$0.60			963,750				$	0.59				5.64			963,750		$	0.59		5.64
	$0.71-$0.80	382,250		$	0.75		3.17		382,250		$	0.75	3.17			$0.61-$0.70			66,500				$	0.68				2.88			66,500		$	0.68		2.88
	$0.81-$0.90	697,091		$	0.88		2.51		697,091		$	0.88	2.51			$0.71-$0.80			382,250				$	0.75				3.66			382,250		$	0.75		3.66
	$0.91-$1.00	44,500		$	0.94		1.49		44,500		$	0.94	1.49			$0.81-$0.90			697,091				$	0.88				3.01			697,091		$	0.88		3.01
	$1.01-$1.50	81,500		$	1.13		1.06		81,500		$	1.13	1.06			$0.91-$1.00			44,500				$	0.94				1.99			44,500		$	0.94		1.99
	$1.51-$5.00	300,417		$	2.73		0.4		300,417		$	2.73	0.4			$1.01-$1.50			81,500				$	1.13				1.56			81,500		$	1.13		1.56
																$1.51-$5.00			363,307				$	2.77				0.75			363,307		$	2.77		0.75
Stock-based compensation expense	'															'
	Stock-based compensation expense recognized in the statement of operations is as follows (in thousands):
																		For the fiscal year ended September 30,
		For the three months ended								For the six months ended								2013				2012
		March 31,								March 31,						Research and Development Expenses		$	20				14
		2014				2013				2014			2013			General and Administrative Expenses			841				554
	Research and Development Expenses	$	5			$	5			$	11		$	9		Total Stock-based Compensation Expense		$	861				568
	General and Administrative Expenses		190				232				452			300
		$	195			$	237			$	463		$	309
Assumptions Of Stock Based Compensation	'															'
																		For the fiscal year ended September 30,
																		2013				2012
		For the three months ended								For the six months ended						Dividend yield			0	%			0	%
		March 31,								March 31,						Expected volatility			156	%			146	%
		2014				2013				2014			2013			Risk-free interest rate			0.86	%			0.9	%
	Dividend yield		—	*			0	%			—	*		0	%	Expected option life after shares are vested		5.27 years				5.23 years
	Expected volatility		—	*			154.91	%			—	*		154.61	%
	Risk-free interest rate		—	*			0.86	%			—	*		0.86	%
	Expected term		—	*		5.27 years					—	*	5.27 years
	* No stock options were granted for the three and six months ended March 31, 2014

H_Income_Taxes_Tables

H. Income Taxes (Tables)	12 Months Ended
	Sep. 30, 2013
H. Income Taxes Tables	'
Deferred tax assets	'
		2013			2012
	Accrued payroll related liabilities	$	915		$	2,802
	Depreciation and amortization		823			939
	State Taxes		(121	)		(1,554	)
	Total deferred tax assets		1,617			2,187
	Deferred tax liabilities		—			—
	Valuation allowance for deferred assets		(1,617	)		(2,187	)
	Net deferred tax asset	$	—		$	—
Tax rate reconciliation	'
		2013			2012
	Effective income tax rate		0	%		0	%
	United States Federal income tax at statutory rate	$	(1,091	)	$	577
	State income taxes (net of federal benefit)		5			99
	Warrant expense		173			(1,621	)
	Prior year deferred true up		(1,684	)		(365	)
	Change in valuation reserves		(1,863	)		1,119
	FIN 48		4,396			—
	Other		66			193
	Provision for income taxes	$	2		$	2
Unrecognized tax benefits	'
		Amount
		(in thousands)
	Unrecognized tax benefits at October 1, 2012	$	-
	Additions for tax positions related to current year		212
	Additions/reductions for tax positions taken in prior years		4,185
	Settlements		-
	Lapse of Limitations		-
	Unrecognized tax benefits at September 30, 2013	$	4,397

J_Quarterly_Financial_Data_una1

J. Quarterly Financial Data (unaudited) (Tables)	12 Months Ended
	Sep. 30, 2013
J. Quarterly Financial Data Tables	'
Quarterly Financial Data	'
		First			Second			Third			Fourth			Total
		Quarter			Quarter			Quarter			Quarter			Year
		(in thousands, except per share amounts)
	Fiscal 2013
	Total revenue	$	1,342		$	859		$	844		$	883		$	3,928
	Net income (loss)	$	4,028		$	(5,782	)	$	(786	)	$	(668	)	$	(3,208	)
	Net income available to stockholders – Basic	$	2,049		$	(5,782	)	$	(786	)	$	(668	)	$	(3,208	)
	Net income available to stockholders – Diluted	$	(200	)	$	(5,782	)	$	(786	)	$	(668	)	$	(3,208	)
	Basic net income (loss) per common share attributable to common stockholders	$	0.03		$	(0.06	)	$	(0.01	)	$	0		$	(0.03	)
	Diluted net income (loss) per common share attributable to common stockholders	$	0		$	(0.06	)	$	(0.01	)	$	0		$	(0.03	)
	Fiscal 2012
	Total revenue	$	2,215		$	2,231		$	1,448		$	1,399		$	7,293
	Net income (loss)	$	2,977		$	2,763		$	3,064		$	(7,106	)	$	1,698
	Net income available to stockholders – Basic	$	1,487		$	1,381		$	1,558		$	(7,106	)	$	856
	Net income available to stockholders – Diluted	$	415		$	(283	)	$	(307	)	$	(7,106	)	$	(2,161	)
	Basic net income (loss) per common share attributable to common stockholders	$	0.02		$	0.02		$	0.02		$	(0.11	)	$	0.01
	Diluted net income (loss) per common share attributable to common stockholders	$	(0.01	)	$	0		$	0		$	(0.11	)	$	(0.03	)

K_Net_Income_Loss_Per_Common_S1

K. Net Income (Loss) Per Common Share (Tables)	6 Months Ended													12 Months Ended
	Mar. 31, 2014													Sep. 30, 2013
K. Net Income Loss Per Common Share Tables	'													'
Schedule of Earnings Per Share, Basic and Diluted	'													'
															Fiscal Year Ended September 30,
		For the three months						For the six months							2013			2012
		ended March 31,						ended March 31,						Numerator:
		2014			2013			2014			2013			Net income (loss)	$	(3,208	)	$	1,698
		(in thousands, except per share data)												Net income attributable to participating securities		-			(842	)
	Numerator:													Net income (loss) attributable to common stockholders – basic	$	(3,208	)	$	856
	Net income (loss)	$	(437	)	$	(5,782	)	$	(1,132	)	$	(1,755	)
	Less net income (loss) attributable to participating securities		-			-			-			-
	Net income (loss) attributable to common stockholders – basic	$	(437	)	$	(5,782	)	$	(1,132	)	$	(1,755	)	Net income (loss)	$	(3,208	)	$	1,698
														Less gain (loss) on warrant liability for participating common warrants		-			3,859
	Net income (loss)	$	(437	)	$	(5,782	)	$	(1,132	)	$	(1,755	)	Net income (loss) attributable to common stockholders – diluted	$	(3,208	)	$	(2,161	)
	Less gain (loss) on warrant liability for participating													Denominator:
	common warrants		-			-			-			-		Weighted-average shares used in computing net income (loss) per share attributable to common stockholders – basic		106,554			61,593
	Net loss attributable to common stockholders – diluted	$	(437	)	$	(5,782	)	$	(1,132	)	$	(1,755	)	Effect of potentially dilutive securities:
														Common stock warrants		—			9,448
	Denominator:													Convertible preferred warrants		—			—
	Weighted-average shares used in computing net income per													Convertible preferred stock		—			—
	share attributable to common stockholders – basic		134,550			94,425			134,550			69,664		Common stock options		—			—
	Effect of potentially dilutive securities:													Non-participating common stock warrants		—			—
	Common stock warrants		-			-			-			-		Weighted-average shares used in computing net income (loss) per share attributable to common stockholders – diluted		106,554			71,041
	Convertible preferred warrants		-			-			-			-		Basic net income (loss) per common share	$	(0.03	)	$	0.01
	Convertible preferred stock		-			-			-			-		Diluted net income (loss) per common share	$	(0.03	)	$	(0.03	)
	Common stock options		-			-			-			-
	Non-participating common stock warrants		-			-			-			-
	Weighted-average shares used in computing net income
	(loss) per share attributable to common stockholders - diluted		134,550			94,425			134,550			69,664
	Basic net income per common share	$	0		$	(0.06	)	$	(0.01	)	$	(0.03	)
	Diluted net income (loss) per common share	$	0		$	(0.06	)	$	(0.01	)	$	(0.03	)

A_Organization_Business_and_Su3

A. Organization, Business and Summary of Significant Accounting Policies (Details Narrative) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Fair Value Measurements	'	'
Pecentage representation in revenues	100.00%	'
Pecentage representation in receivables	100.00%	'
Unbilled accounts receivable	'	$195,000
Rent expense	$21,000	$20,000

B_Summary_of_Significant_Accou1

B. Summary of Significant Accounting Policies - Fair Value (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
In Thousands, unless otherwise specified
Warrant liability	$0	$19,319
Fair Value Inputs Level 1 Member	'	'
Warrant liability	0	0
Fair Value Inputs Level 2 Member	'	'
Warrant liability	0	0
Fair Value Inputs Level 3 Member	'	'
Warrant liability	$0	$19,319

B_Summary_of_Significant_Accou2

B. Summary of Significant Accounting Policies - Warrant Fair Value (Details 1) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Notes to Financial Statements	'
Warrants beginning balance	$19,319
Change in fair value of warrant liability	-1,574
Warrant repricing modification charge	2,084
Exercised	-19,829
Warrants ending balance	$0

B_Summary_of_Significant_Accou3

B. Summary of Significant Accounting Policies - Net Income (Loss) Per Common Share (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Sep. 30, 2013	Sep. 30, 2012
Numerator:	'	'	'	'	'	'
Net income (loss)	($437)	($5,782)	($1,132)	($1,755)	($3,208)	$1,698
Net income attributable to participating securities	'	'	'	'	0	-842
Net income (loss) attributable to common stockholders - basic	-437	-5,782	-1,132	-1,755	-3,208	856
Net income (loss)	-437	-5,782	-1,132	-1,755	-3,208	1,698
Less gain (loss) on warrant liability for participating common warrants	'	'	'	'	0	3,859
Net income (loss) attributable to common stockholders - diluted	($437)	($5,782)	($1,132)	($1,755)	($3,208)	($2,161)
Denominator:	'	'	'	'	'	'
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders - basic	134,550	94,425	134,550	69,664	106,554	61,593
Effect of potentially dilutive securities: Common stock warrants	'	'	'	'	0	9,448
Effect of potentially dilutive securities: Convertible preferred warrants	'	'	'	'	0	0
Effect of potentially dilutive securities: Convertible preferred stock	'	'	'	'	0	0
Effect of potentially dilutive securities: Common stock options	'	'	'	'	0	0
Effect of potentially dilutive securities: Non-participating common stock warrants	'	'	'	'	0	0
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders - diluted	134,550	94,425	134,550	69,664	106,554	71,041
Basic net income (loss) per common share	$0	($0.06)	($0.01)	($0.03)	($0.03)	$0.01
Diluted net income (loss) per common share	$0	($0.06)	($0.01)	($0.03)	($0.03)	($0.03)

C_Liquidity_Details_Narrative

C Liquidity (Details Narrative) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Sep. 30, 2013	Sep. 30, 2012
C Liquidity Details Narrative	'	'	'	'	'	'
Cash outflows from operations	'	'	$349	$1,913	$2,970	$879
Net Income	-437	-5,782	-1,132	-1,755	-3,208	1,698
Non-cash gain for decreases in valuation of warrants	'	'	'	'	($510)	$4,069

D_Investments_Details_Narrativ

D. Investments (Details Narrative)	Sep. 30, 2013
D. Investments Details Narrative	'
Equity method investment ownership interest	35.00%

F_Stockholders_Equity_Warrants

F. Stockholders' Equity - Warrants (Details)	6 Months Ended	12 Months Ended
	Mar. 31, 2014	Sep. 30, 2013	Sep. 30, 2012
Number of Shares	17,879,627	17,879,627	62,132,626
$0.50	'	'	'
Number of Shares	100,000	100,000	100,000
Expiration Date	'May 2014	'May-14	'May-14
$1.00	'	'	'
Number of Shares	100,000	100,000	100,000
Expiration Date	'May 2014	'May-14	'May-14
$1.50	'	'	'
Number of Shares	100,000	100,000	100,000
Expiration Date	'May 2014	'May-14	'May-14
$0.51	'	'	'
Number of Shares	125,000	125,000	'
Expiration Date	'June 2014	'Jun-14	'
$1.00	'	'	'
Number of Shares	125,000	125,000	125,000
Expiration Date	'June 2014	'Jun-14	'Jun-14
$0.39	'	'	'
Number of Shares	20,000	20,000	'
Expiration Date	'September 2014	'Sep-14	'
$0.50	'	'	'
Number of Shares	15,000	15,000	15,000
Expiration Date	'September 2014	'Sep-14	'Sep-14
$0.60	'	'	'
Number of Shares	15,000	15,000	15,000
Expiration Date	'September 2014	'Sep-14	'Sep-14
$0.38	'	'	'
Number of Shares	50,000	50,000	50,000
Expiration Date	'April 2015	'Apr-15	'Apr-15
$0.50	'	'	'
Number of Shares	50,000	50,000	50,000
Expiration Date	'May 2016	'May-16	'May-16
$0.50	'	'	'
Number of Shares	50,000	50,000	50,000
Expiration Date	'July 2016	'Jul-16	'Jul-16
$1.00	'	'	'
Number of Shares	50,000	50,000	50,000
Expiration Date	'July 2016	'Jul-16	'Jul-16
$1.50	'	'	'
Number of Shares	50,000	50,000	50,000
Expiration Date	'July 2016	'Jul-16	'Jul-16
$2.00	'	'	'
Number of Shares	50,000	50,000	50,000
Expiration Date	'July 2016	'Jul-16	'Jul-16
$2.50	'	'	'
Number of Shares	50,000	50,000	50,000
Expiration Date	'July 2016	'Jul-16	'Jul-16
$0.40	'	'	'
Number of Shares	1,337,627	1,337,627	1,337,627
Expiration Date	'March 2017	'Mar-17	'Mar-17
$0.40	'	'	'
Number of Shares	325,000	325,000	325,000
Expiration Date	'April 2017	'Apr-17	'Apr-17
$0.26	'	'	'
Number of Shares	300,000	300,000	300,000
Expiration Date	'June 2017	'Jun-17	'Jun-17
$0.35	'	'	'
Number of Shares	140,000	140,000	'
Expiration Date	'October 2017	'Oct-17	'
$0.25	'	'	'
Number of Shares	13,085,000	13,085,000	'
Expiration Date	'March 2018	'Feb-18	'
$0.25	'	'	'
Number of Shares	1,742,000	1,742,000	'
Expiration Date	'March 2018	'Mar-18	'
$0.65	'	'	'
Number of Shares	'	'	125,000
Expiration Date	'	'	'Jun-14
$0.39	'	'	'
Number of Shares	'	'	20,000
Expiration Date	'	'	'Sep-14
$0.28	'	'	'
Number of Shares	'	'	43,614,285
Expiration Date	'	'	'Oct-16
$0.28	'	'	'
Number of Shares	'	'	11,785,714
Expiration Date	'	'	'Jul-17
$0.30	'	'	'
Number of Shares	'	'	35,000
Expiration Date	'	'	'Aug-17
$0.50	'	'	'
Number of Shares	'	'	1,875,000
Expiration Date	'	'	'Aug-17
$0.44	'	'	'
Number of Shares	'	'	35,000
Expiration Date	'	'	'Sep-17
$0.50	'	'	'
Number of Shares	'	'	1,875,000
Expiration Date	'	'	'Dec-17

B_Stockholders_Equity_Warrants

B. Stockholders' Equity Warrants (Details 1)	6 Months Ended	12 Months Ended
	Mar. 31, 2014	Sep. 30, 2013	Sep. 30, 2012
Number of Shares	17,879,627	17,879,627	62,132,626
$0.50	'	'	'
Number of Shares	100,000	100,000	100,000
Expiration Date	'May 2014	'May-14	'May-14
$1.00	'	'	'
Number of Shares	100,000	100,000	100,000
Expiration Date	'May 2014	'May-14	'May-14
$1.50	'	'	'
Number of Shares	100,000	100,000	100,000
Expiration Date	'May 2014	'May-14	'May-14
$0.51	'	'	'
Number of Shares	125,000	125,000	'
Expiration Date	'June 2014	'Jun-14	'
$1.00	'	'	'
Number of Shares	125,000	125,000	125,000
Expiration Date	'June 2014	'Jun-14	'Jun-14
$0.39	'	'	'
Number of Shares	20,000	20,000	'
Expiration Date	'September 2014	'Sep-14	'
$0.50	'	'	'
Number of Shares	15,000	15,000	15,000
Expiration Date	'September 2014	'Sep-14	'Sep-14
$0.60	'	'	'
Number of Shares	15,000	15,000	15,000
Expiration Date	'September 2014	'Sep-14	'Sep-14
$0.38	'	'	'
Number of Shares	50,000	50,000	50,000
Expiration Date	'April 2015	'Apr-15	'Apr-15
$0.50	'	'	'
Number of Shares	50,000	50,000	50,000
Expiration Date	'May 2016	'May-16	'May-16
$0.50	'	'	'
Number of Shares	50,000	50,000	50,000
Expiration Date	'July 2016	'Jul-16	'Jul-16
$1.00	'	'	'
Number of Shares	50,000	50,000	50,000
Expiration Date	'July 2016	'Jul-16	'Jul-16
$1.50	'	'	'
Number of Shares	50,000	50,000	50,000
Expiration Date	'July 2016	'Jul-16	'Jul-16
$2.00	'	'	'
Number of Shares	50,000	50,000	50,000
Expiration Date	'July 2016	'Jul-16	'Jul-16
$2.50	'	'	'
Number of Shares	50,000	50,000	50,000
Expiration Date	'July 2016	'Jul-16	'Jul-16
$0.40	'	'	'
Number of Shares	1,337,627	1,337,627	1,337,627
Expiration Date	'March 2017	'Mar-17	'Mar-17
$0.40	'	'	'
Number of Shares	325,000	325,000	325,000
Expiration Date	'April 2017	'Apr-17	'Apr-17
$0.26	'	'	'
Number of Shares	300,000	300,000	300,000
Expiration Date	'June 2017	'Jun-17	'Jun-17
$0.35	'	'	'
Number of Shares	140,000	140,000	'
Expiration Date	'October 2017	'Oct-17	'
$0.25	'	'	'
Number of Shares	13,085,000	13,085,000	'
Expiration Date	'March 2018	'Feb-18	'
$0.25	'	'	'
Number of Shares	1,742,000	1,742,000	'
Expiration Date	'March 2018	'Mar-18	'

F_Stockholders_Equity_Preferre

F. Stockholdersb Equity - Preferred Stock Warrants (Deficit) (Details 1) (Warrants for Preferred Stock, USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Warrants for Preferred Stock	'	'
Preferred Stock Outstanding	896,037	896,037
Exercise Price	$0.01	$0.01
Expiration Date	1-Feb-16	1-Feb-16

F_Stockholders_Equity_Warrant_

F. Stockholders' Equity - Warrant Activity (Details 2) (USD $)	6 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Sep. 30, 2013	Sep. 30, 2012
Number of Shares	'	'	'	'
Outstanding beginning balance	9,473,661	11,214,898	11,214,898	'
Exercised	'	'	'	'
Canceled	'	'	'	'
Vested	'	'	'	'
Outstanding ending balance	12,145,917	11,152,008	'	'
Exercise Price	'	'	'	'
Outstanding beginning balance	$0.70	$0.52	$0.52	'
Granted	$0.39	'	'	'
Exercised	'	'	'	'
Expired or Canceled	'	'	'	'
Vested	'	'	'	'
Outstanding ending balance	$0.63	$0.51	'	'
Remaining Contractual Term (in years)	'	'	'	'
Outstanding beginning balance	'5 years 9 months 22 days	'6 years 8 months 1 day	'	'
Granted	'9 years 11 months 1 day	'	'	'
Outstanding ending balance	'6 years 4 months 19 days	'6 years 2 months 16 days	'	'
Aggregate Intrinsic Value	'	'	'	'
Outstanding beginning balance	$153,850	$3,825	$3,825	'
Granted	901	'	'	'
Outstanding ending balance	45,084	1,463	'	'
Warrant [Member]	'	'	'	'
Number of Shares	'	'	'	'
Outstanding beginning balance	18,775,664	62,993,663	62,993,663	61,936,036
Granted	'	14,932,000	14,932,000	1,997,627
Exercised	'	-59,149,999	-59,149,999	-940,000
Canceled	'	'	0	0
Forfeited	'	'	0	0
Vested	'	'	'	'
Outstanding ending balance	18,775,664	18,775,664	18,775,664	62,993,663
Exercisable	'	'	18,775,664	'
Exercise Price	'	'	'	'
Outstanding beginning balance	$0.29	$0.30	$0.30	$0.30
Granted	'	$0.25	$0.25	$0.38
Exercised	'	$0.01	$0.01	$0.28
Expired or Canceled	'	'	$0	$0
Forfeited	'	'	$0	$0
Vested	'	'	'	'
Outstanding ending balance	$0.29	$0.29	$0.29	$0.30
Exercisable	'	'	$0.29	'
Remaining Contractual Term (in years)	'	'	'	'
Outstanding beginning balance	'4 years 18 days	'4 years 2 months 12 days	'4 years 2 months 12 days	'5 years 2 months 12 days
Granted	'	'4 years 10 months 20 days	'4 years 4 months 24 days	'4 years 6 months
Exercised	'	'3 years 9 months	'	'
Outstanding ending balance	'3 years 6 months 18 days	'4 years 6 months 18 days	'4 years 1 month 6 days	'4 years 2 months 12 days
Exercisable	'	'	'4 years 1 month 6 days	'
Aggregate Intrinsic Value	'	'	'	'
Outstanding beginning balance	693,340	5,344,623	5,344,623	8,258,000
Granted	'	1,039,373	444,810	35,000
Exercised	'	19,519,500	19,519,500	'
Outstanding ending balance	215,048	1,335,864	693,340	5,344,623
Exercisable	'	'	$693,340	'

F_Stockholders_Equity_Deficit_

F. Stockholders' Equity (Deficit) (Details Narrative) (USD $)	6 Months Ended
	Mar. 31, 2014	Sep. 30, 2013	Sep. 30, 2012
Common stock shares outstanding	134,550,068	134,550,068	62,731,963
Covertible Warrants to purchase common stock shares	17,879,627	'	'
Weighted average exercise price	$0.30	'	'
Preferred Stock [Member]	'	'	'
Covertible Warrants to purchase common stock shares	896,037	'	'
Weighted average exercise price	$0.01	'	'
Series B [Member]	'	'	'
Common stock shares outstanding	526,080	'	'

F_Stockholders_Equity_Deficit_1

F. Stockholders' Equity (Deficit) (Details Narrative 1) (USD $)	6 Months Ended
	Mar. 31, 2014	Sep. 30, 2013	Sep. 30, 2012
Common stock shares outstanding	134,550,068	134,550,068	62,731,963
Covertible Warrants to purchase common stock shares	17,879,627	'	'
Weighted average exercise price	$0.30	'	'
Preferred Stock [Member]	'	'	'
Covertible Warrants to purchase common stock shares	896,037	'	'
Weighted average exercise price	$0.01	'	'
Series B [Member]	'	'	'
Common stock shares outstanding	526,080	'	'

G_StockBased_Compensation_Stoc

G. Stock-Based Compensation - Stock Option Activity (Details) (USD $)	6 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Sep. 30, 2013	Sep. 30, 2012
Number of Shares	'	'	'	'
Outstanding beginning balance	9,473,661	11,214,898	11,214,898	'
Granted	2,745,000	'	3,070,000	691,250
Exercised	'	'	'	'
Cancelled	-72,744	-62,890	'	'
Forfeited	'	'	'	'
Vested (RSAs)	'	'	'	'
Outstanding ending balance	12,145,917	11,152,008	9,473,661	11,214,898
Exercise Price	'	'	'	'
Outstanding beginning balance	$0.70	$0.52	$0.52	'
Granted	$0.39	'	'	'
Exercised	'	'	'	'
Cancelled	$0.85	$2.93	'	'
Forfeited	'	'	'	'
Vested (RSAs)	'	'	'	'
Outstanding ending balance	$0.63	$0.51	$0.70	$0.52
Remaining Contractual Term (in years)	'	'	'	'
Outstanding beginning balance	'5 years 9 months 22 days	'6 years 8 months 1 day	'	'
Granted	'9 years 11 months 1 day	'	'	'
Outstanding ending balance	'6 years 4 months 19 days	'6 years 2 months 16 days	'	'
Aggregate Intrinsic Value	'	'	'	'
Outstanding beginning balance	$153,850	$3,825	$3,825	'
Granted	901	'	'	'
Outstanding ending balance	45,084	1,463	153,850	3,825
Employee Stock Option [Member]	'	'	'	'
Number of Shares	'	'	'	'
Outstanding beginning balance	'	9,473,661	9,473,661	8,942,628
Granted	'	'	3,070,000	691,250
Exercised	'	'	0	0
Cancelled	'	'	-1,328,763	-85,217
Forfeited	'	'	0	-75,000
Outstanding ending balance	'	'	11,214,898	9,473,661
Exercisable	'	'	11,214,898	'
Exercise Price	'	'	'	'
Outstanding beginning balance	'	$0.70	$0.70	$0.82
Granted	'	'	$0.40	$0.30
Exercised	'	'	$0	$0
Cancelled	'	'	$1.46	$10.77
Forfeited	'	'	$0	$0.41
Outstanding ending balance	'	'	$0.52	$0.70
Exercisable	'	'	$0.54	'
Remaining Contractual Term (in years)	'	'	'	'
Outstanding beginning balance	'	'	'5 years 9 months 18 days	'6 years 6 months
Granted	'	'	'9 years 4 months 24 days	'9 years 7 months 6 days
Outstanding ending balance	'	'	'6 years 8 months 12 days	'5 years 9 months 18 days
Exercisable	'	'	'6 years 2 months 12 days	'
Aggregate Intrinsic Value	'	'	'	'
Outstanding beginning balance	'	154	154	259
Granted	'	'	'	49
Forfeited	'	'	'	3
Outstanding ending balance	'	'	4	154
Exercisable	'	'	$4	'

G_StockBased_Compensation_Nonv

G. Stock-Based Compensation - Nonvested Options (Details 1) (USD $)	6 Months Ended		12 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Sep. 30, 2013	Sep. 30, 2012
G. Stock-Based Compensation - Nonvested Options Details 1	'	'	'	'
Nonvested beginning	1,482,286	406,766	406,766	592,907
Granted	2,745,000	'	3,070,000	691,250
Vested	'	'	-1,994,480	-839,891
Forfeited	'	'	0	-37,500
Nonvested ending	'	'	1,482,286	406,766
Weighted Average Grant-Date Fair Value, Nonvested beginning	$553,937	$106,194	$106,194	$295,461
Granted	'	'	1,135,070	190,660
Vested	'	'	-687,327	-369,320
Forfeited	'	'	0	-10,607
Weighted Average Grant-Date Fair Value, Nonvested ending	'	'	$553,937	$106,194

G_StockBased_Compensation_Deta

G. Stock-Based Compensation - Details of stock options (Details 2) (USD $)	6 Months Ended	12 Months Ended
	Mar. 31, 2014	Sep. 30, 2013
0.23-$0.30	'	'
OptionsB Outstanding	'	'
Number Outstanding at September 30	1,612,500	1,612,500
Weighted Average Exercise Price	$0.29	$0.29
Weighted Average Remaining Contractual Life (inB years)	'5 years 9 months 22 days	'6 years 3 months 18 days
OptionsB Exercisable	'	'
Number Exercisable at March 31	1,612,500	1,609,689
Weighted Average Exercise Price	$0.29	$0.29
Weighted Average Remaining Contractual Life (inB years)	'5 years 9 months 22 days	'6 years 3 months 18 days
0.31-$0.40	'	'
OptionsB Outstanding	'	'
Number Outstanding at September 30	6,501,500	6,501,500
Weighted Average Exercise Price	$0.39	$0.39
Weighted Average Remaining Contractual Life (inB years)	'7 years 3 months 25 days	'7 years 9 months 25 days
OptionsB Exercisable	'	'
Number Exercisable at March 31	6,501,500	5,238,692
Weighted Average Exercise Price	$0.39	$0.39
Weighted Average Remaining Contractual Life (inB years)	'7 years 3 months 25 days	'7 years 5 months 8 days
0.41-$0.50	'	'
OptionsB Outstanding	'	'
Number Outstanding at September 30	502,000	502,000
Weighted Average Exercise Price	$0.45	$0.45
Weighted Average Remaining Contractual Life (inB years)	'7 years 6 months 29 days	'8 years 3 months
OptionsB Exercisable	'	'
Number Exercisable at March 31	447,833	285,333
Weighted Average Exercise Price	$0.45	$0.45
Weighted Average Remaining Contractual Life (inB years)	'7 years 6 months 29 days	'7 years 2 months 16 days
0.51-$0.60	'	'
OptionsB Outstanding	'	'
Number Outstanding at September 30	963,750	963,750
Weighted Average Exercise Price	$0.59	$0.59
Weighted Average Remaining Contractual Life (inB years)	'5 years 1 month 20 days	'5 years 7 months 20 days
OptionsB Exercisable	'	'
Number Exercisable at March 31	963,750	963,750
Weighted Average Exercise Price	$0.59	$0.59
Weighted Average Remaining Contractual Life (inB years)	'5 years 1 month 20 days	'5 years 7 months 20 days
0.61-$0.70	'	'
OptionsB Outstanding	'	'
Number Outstanding at September 30	66,500	66,500
Weighted Average Exercise Price	$0.68	$0.68
Weighted Average Remaining Contractual Life (inB years)	'2 years 4 months 17 days	'2 years 10 months 17 days
OptionsB Exercisable	'	'
Number Exercisable at March 31	66,500	66,500
Weighted Average Exercise Price	$0.68	$0.68
Weighted Average Remaining Contractual Life (inB years)	'2 years 4 months 17 days	'2 years 10 months 17 days
0.71-$0.80	'	'
OptionsB Outstanding	'	'
Number Outstanding at September 30	382,250	382,250
Weighted Average Exercise Price	$0.75	$0.75
Weighted Average Remaining Contractual Life (inB years)	'3 years 2 months 1 day	'3 years 7 months 28 days
OptionsB Exercisable	'	'
Number Exercisable at March 31	382,250	382,250
Weighted Average Exercise Price	$0.75	$0.75
Weighted Average Remaining Contractual Life (inB years)	'3 years 2 months 1 day	'3 years 7 months 28 days
0.81-$0.90	'	'
OptionsB Outstanding	'	'
Number Outstanding at September 30	697,091	697,091
Weighted Average Exercise Price	$0.88	$0.88
Weighted Average Remaining Contractual Life (inB years)	'2 years 6 months 4 days	'3 years 4 days
OptionsB Exercisable	'	'
Number Exercisable at March 31	697,091	697,091
Weighted Average Exercise Price	$0.88	$0.88
Weighted Average Remaining Contractual Life (inB years)	'2 years 6 months 4 days	'3 years 4 days
0.91-$1.00	'	'
OptionsB Outstanding	'	'
Number Outstanding at September 30	44,500	44,500
Weighted Average Exercise Price	$0.94	$0.94
Weighted Average Remaining Contractual Life (inB years)	'1 year 5 months 26 days	'1 year 11 months 26 days
OptionsB Exercisable	'	'
Number Exercisable at March 31	44,500	44,500
Weighted Average Exercise Price	$0.94	$0.94
Weighted Average Remaining Contractual Life (inB years)	'1 year 5 months 26 days	'1 year 11 months 26 days
1.01-$1.50	'	'
OptionsB Outstanding	'	'
Number Outstanding at September 30	81,500	81,500
Weighted Average Exercise Price	$1.13	$1.13
Weighted Average Remaining Contractual Life (inB years)	'1 year 22 days	'1 year 6 months 22 days
OptionsB Exercisable	'	'
Number Exercisable at March 31	81,500	81,500
Weighted Average Exercise Price	$1.13	$1.13
Weighted Average Remaining Contractual Life (inB years)	'1 year 22 days	'1 year 6 months 22 days
1.51 - $5.00	'	'
OptionsB Outstanding	'	'
Number Outstanding at September 30	300,417	363,307
Weighted Average Exercise Price	$2.73	$2.77
Weighted Average Remaining Contractual Life (inB years)	'4 months 24 days	'9 months
OptionsB Exercisable	'	'
Number Exercisable at March 31	300,417	363,307
Weighted Average Exercise Price	$2.73	$2.77
Weighted Average Remaining Contractual Life (inB years)	'4 months 24 days	'9 months

C_StockBased_Compensation_Deta

C. Stock-Based Compensation - Details of stock options (Details 2a) (USD $)	6 Months Ended	12 Months Ended
	Mar. 31, 2014	Sep. 30, 2013
0.23-$0.30	'	'
Options Outstanding	'	'
Number Outstanding at December 31	1,612,500	1,612,500
Weighted Average Exercise Price	$0.29	$0.29
Weighted Average Remaining Contractual Life (in years)	'5 years 9 months 22 days	'6 years 3 months 18 days
Options Exercisable	'	'
Number Exercisable at December 31	1,612,500	1,609,689
Weighted Average Exercise Price	$0.29	$0.29
Weighted Average Remaining Contractual Life )in years)	'5 years 9 months 22 days	'6 years 3 months 18 days
0.31-$0.40	'	'
Options Outstanding	'	'
Number Outstanding at December 31	6,501,500	6,501,500
Weighted Average Exercise Price	$0.39	$0.39
Weighted Average Remaining Contractual Life (in years)	'7 years 3 months 25 days	'7 years 9 months 25 days
Options Exercisable	'	'
Number Exercisable at December 31	6,501,500	5,238,692
Weighted Average Exercise Price	$0.39	$0.39
Weighted Average Remaining Contractual Life )in years)	'7 years 3 months 25 days	'7 years 5 months 8 days
0.41-$0.50	'	'
Options Outstanding	'	'
Number Outstanding at December 31	502,000	502,000
Weighted Average Exercise Price	$0.45	$0.45
Weighted Average Remaining Contractual Life (in years)	'7 years 6 months 29 days	'8 years 3 months
Options Exercisable	'	'
Number Exercisable at December 31	447,833	285,333
Weighted Average Exercise Price	$0.45	$0.45
Weighted Average Remaining Contractual Life )in years)	'7 years 6 months 29 days	'7 years 2 months 16 days
0.51-$0.60	'	'
Options Outstanding	'	'
Number Outstanding at December 31	963,750	963,750
Weighted Average Exercise Price	$0.59	$0.59
Weighted Average Remaining Contractual Life (in years)	'5 years 1 month 20 days	'5 years 7 months 20 days
Options Exercisable	'	'
Number Exercisable at December 31	963,750	963,750
Weighted Average Exercise Price	$0.59	$0.59
Weighted Average Remaining Contractual Life )in years)	'5 years 1 month 20 days	'5 years 7 months 20 days
0.61-$0.70	'	'
Options Outstanding	'	'
Number Outstanding at December 31	66,500	66,500
Weighted Average Exercise Price	$0.68	$0.68
Weighted Average Remaining Contractual Life (in years)	'2 years 4 months 17 days	'2 years 10 months 17 days
Options Exercisable	'	'
Number Exercisable at December 31	66,500	66,500
Weighted Average Exercise Price	$0.68	$0.68
Weighted Average Remaining Contractual Life )in years)	'2 years 4 months 17 days	'2 years 10 months 17 days
0.71-$0.80	'	'
Options Outstanding	'	'
Number Outstanding at December 31	382,250	382,250
Weighted Average Exercise Price	$0.75	$0.75
Weighted Average Remaining Contractual Life (in years)	'3 years 2 months 1 day	'3 years 7 months 28 days
Options Exercisable	'	'
Number Exercisable at December 31	382,250	382,250
Weighted Average Exercise Price	$0.75	$0.75
Weighted Average Remaining Contractual Life )in years)	'3 years 2 months 1 day	'3 years 7 months 28 days
0.81-$0.90	'	'
Options Outstanding	'	'
Number Outstanding at December 31	697,091	697,091
Weighted Average Exercise Price	$0.88	$0.88
Weighted Average Remaining Contractual Life (in years)	'2 years 6 months 4 days	'3 years 4 days
Options Exercisable	'	'
Number Exercisable at December 31	697,091	697,091
Weighted Average Exercise Price	$0.88	$0.88
Weighted Average Remaining Contractual Life )in years)	'2 years 6 months 4 days	'3 years 4 days
0.91-$1.00	'	'
Options Outstanding	'	'
Number Outstanding at December 31	44,500	44,500
Weighted Average Exercise Price	$0.94	$0.94
Weighted Average Remaining Contractual Life (in years)	'1 year 5 months 26 days	'1 year 11 months 26 days
Options Exercisable	'	'
Number Exercisable at December 31	44,500	44,500
Weighted Average Exercise Price	$0.94	$0.94
Weighted Average Remaining Contractual Life )in years)	'1 year 5 months 26 days	'1 year 11 months 26 days
1.01-$1.50	'	'
Options Outstanding	'	'
Number Outstanding at December 31	81,500	81,500
Weighted Average Exercise Price	$1.13	$1.13
Weighted Average Remaining Contractual Life (in years)	'1 year 22 days	'1 year 6 months 22 days
Options Exercisable	'	'
Number Exercisable at December 31	81,500	81,500
Weighted Average Exercise Price	$1.13	$1.13
Weighted Average Remaining Contractual Life )in years)	'1 year 22 days	'1 year 6 months 22 days
1.51 - $5.00	'	'
Options Outstanding	'	'
Number Outstanding at December 31	300,417	363,307
Weighted Average Exercise Price	$2.73	$2.77
Weighted Average Remaining Contractual Life (in years)	'4 months 24 days	'9 months
Options Exercisable	'	'
Number Exercisable at December 31	300,417	363,307
Weighted Average Exercise Price	$2.73	$2.77
Weighted Average Remaining Contractual Life )in years)	'4 months 24 days	'9 months

G_StockBased_Compensation_Deta1

G. Stock-Based Compensation (Details 3) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Sep. 30, 2013	Sep. 30, 2012
Notes to Financial Statements	'	'	'	'	'	'
Research and Development Expenses	$5	$5	$11	$9	$20	$14
General and Administrative Expenses	190	232	452	300	841	554
Total Stock-based compensation expense	$195	$237	$463	$309	$861	$568

G_StockBased_Compensation_Deta2

G. Stock-Based Compensation (Details 4)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2013	Mar. 31, 2013	Sep. 30, 2013	Sep. 30, 2012
Notes to Financial Statements	'	'	'	'
Dividend yield	0.00%	0.00%	0.00%	0.00%
Expected volatility	154.91%	154.61%	156.00%	146.00%
Risk-free interest rate	0.86%	0.86%	0.86%	0.90%
Expected term	'5 years 3 months 7 days	'5 years 3 months 7 days	'5 years 3 months 7 days	'5 years 2 months 23 days

G_StockBased_Compensation_Deta3

G. Stock-Based Compensation (Details Narrative) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
G. Stock-Based Compensation Details Narrative	'
Unrecognized compensation expense	$477
Period for recognition	'5 months

H_Income_Taxes_Details

H. Income Taxes (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
In Thousands, unless otherwise specified
H. Income Taxes Details	'	'
Accrued payroll related liabilities	$915	$2,802
Depreciation and amortization	823	939
State Taxes	-121	-1,554
Total deferred tax assets	1,617	2,187
Deferred tax liabilities	0	0
Valuation allowance for deferred assets	-1,617	-2,187
Net deferred tax asset	$0	$0

H_Income_Taxes_Details_1

H. Income Taxes (Details 1) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
H. Income Taxes Details 1	'	'
Effective income tax rate	0.00%	0.00%
United States Federal income tax at statutory rate	($1,091)	$577
State income taxes (net of federal benefit)	5	99
Warrant expense	173	-1,621
Prior year deferred true up	-1,684	-365
Change in valuation reserves	-1,863	1,119
FIN 48	4,396	0
Other	66	193
Provision for income taxes	$2	$2

H_Income_Taxes_Details_2

H. Income Taxes (Details 2) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
H. Income Taxes Tables	'
Unrecognized tax benefits at October 1, 2012	$0
Additions for tax positions related to current year	212
Additions/reductions for tax positions taken in prior years	4,185
Settlements	'
Lapse of Limitations	'
Unrecognized tax benefits at September 30, 2013	$4,397

J_Quarterly_Financial_Data_Det

J. Quarterly Financial Data (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Sep. 30, 2013	Sep. 30, 2012
Total revenue	'	'	'	'	$3,928	$7,293
Net income (loss)	-437	-5,782	-1,132	-1,755	-3,208	1,698
Net income available to stockholders b Basic	'	'	'	'	-3,208	856
Net income available to stockholders b Diluted	'	'	'	'	-3,208	-2,161
Basic net income (loss) per common share attributable to common stockholders	$0	($0.06)	($0.01)	($0.03)	($0.03)	$0.01
Diluted net income (loss) per common share attributable to common stockholders	$0	($0.06)	($0.01)	($0.03)	($0.03)	($0.03)
First Quarter	'	'	'	'	'	'
Total revenue	'	'	'	'	1,342	2,215
Net income (loss)	'	'	'	'	4,028	2,977
Net income available to stockholders b Basic	'	'	'	'	2,049	1,487
Net income available to stockholders b Diluted	'	'	'	'	-200	415
Basic net income (loss) per common share attributable to common stockholders	'	'	'	'	$0.03	$0.02
Diluted net income (loss) per common share attributable to common stockholders	'	'	'	'	$0	($0.01)
Second Quarter	'	'	'	'	'	'
Total revenue	'	'	'	'	859	2,231
Net income (loss)	'	'	'	'	-5,782	2,763
Net income available to stockholders b Basic	'	'	'	'	-5,782	1,381
Net income available to stockholders b Diluted	'	'	'	'	-5,782	-283
Basic net income (loss) per common share attributable to common stockholders	'	'	'	'	($0.06)	$0.02
Diluted net income (loss) per common share attributable to common stockholders	'	'	'	'	($0.06)	$0
Third Quarter	'	'	'	'	'	'
Total revenue	'	'	'	'	844	1,448
Net income (loss)	'	'	'	'	-786	3,064
Net income available to stockholders b Basic	'	'	'	'	-786	1,558
Net income available to stockholders b Diluted	'	'	'	'	-786	-307
Basic net income (loss) per common share attributable to common stockholders	'	'	'	'	($0.01)	$0.02
Diluted net income (loss) per common share attributable to common stockholders	'	'	'	'	($0.01)	$0
Fourth Quarter	'	'	'	'	'	'
Total revenue	'	'	'	'	883	1,399
Net income (loss)	'	'	'	'	-668	-7,106
Net income available to stockholders b Basic	'	'	'	'	-668	-7,106
Net income available to stockholders b Diluted	'	'	'	'	($668)	($7,106)
Basic net income (loss) per common share attributable to common stockholders	'	'	'	'	$0	($0.11)
Diluted net income (loss) per common share attributable to common stockholders	'	'	'	'	$0	($0.11)

K_Net_Income_Loss_Per_Common_S2

K. Net Income (Loss) Per Common Share (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Sep. 30, 2013	Sep. 30, 2012
Numerator:	'	'	'	'	'	'
Net income (loss)	($437)	($5,782)	($1,132)	($1,755)	($3,208)	$1,698
Less net income (loss) attributable to participating securities	'	'	'	'	0	-842
Net income (loss) attributable to common stockholders - basic	-437	-5,782	-1,132	-1,755	-3,208	856
Net income (loss)	-437	-5,782	-1,132	-1,755	-3,208	1,698
Less gain (loss) on warrant liability for participating common warrants	'	'	'	'	0	3,859
Net loss attributable to common stockholders b diluted	($437)	($5,782)	($1,132)	($1,755)	($3,208)	($2,161)
Denominator:	'	'	'	'	'	'
Weighted-average shares used in computing net income per share attributable to common stockholders b basic	134,550	94,425	134,550	69,664	106,554	61,593
Effect of potentially dilutive securities: Common stock warrants	'	'	'	'	0	9,448
Effect of potentially dilutive securities: Convertible preferred warrants	'	'	'	'	0	0
Effect of potentially dilutive securities: Convertible preferred stock	'	'	'	'	0	0
Effect of potentially dilutive securities: Common stock options	'	'	'	'	0	0
Effect of potentially dilutive securities: Non-participating common stock warrants	'	'	'	'	0	0
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders - diluted	134,550	94,425	134,550	69,664	106,554	71,041
Basic net income per common share	$0	($0.06)	($0.01)	($0.03)	($0.03)	$0.01
Diluted net income (loss) per common share	$0	($0.06)	($0.01)	($0.03)	($0.03)	($0.03)

K_Net_Income_Loss_Per_Common_S3

K. Net Income (Loss) Per Common Share (Details Narrative)	6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
K. Net Income Loss Per Common Share Details Narrative	'	'
Diluted weighted average common shares excluded incremental shares due to their anti-dilutive effect	2,294,000	5,069,000