Aeolus Pharmaceuticals (AOLS) 10-Q 13 Feb 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Dec. 31, 2014	Feb. 12, 2015
Document And Entity Information
Entity Registrant Name	AEOLUS PHARMACEUTICALS, INC.
Entity Central Index Key	1261734
Document Type	10-Q
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-21
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		135,850,068
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Dec. 31, 2014	Sep. 30, 2014
In Thousands, unless otherwise specified
ASSETS
Cash and cash equivalents	$447	$1,517
Accounts receivable	1,812	1,559
Deferred subcontractor cost	424	426
Prepaids and other current assets	65	46
Total current assets	2,748	3,548
Investment in CPEC LLC	32	32
Total assets	2,780	3,580
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Accounts payable and accrued expenses	1,261	1,552
Deferred revenue	441	443
Total current liabilities	1,702	1,995
Total liabilities	1,702	1,995
Stockholders' equity:
Common stock, $.01 par value per share, 200,000,000 shares authorized; 135,850,068 shares issued and outstanding as of December 31, 2014 and September 30, 2014, respectively	1,359	1,359
Additional paid-in capital	184,413	184,223
Accumulated deficit	-184,699	-184,002
Total stockholders' equity	1,078	1,585
Total liabilities and stockholders' equity	2,780	3,580
Series A nonredeemable convertible preferred stock
Stockholders' equity:
Preferred stock, Value	0	0
Series B nonredeemable convertible preferred stock
Stockholders' equity:
Preferred stock, Value	$5	$5

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Stockholder's deficit:
Common stock, par value	$0.01	$0.01
Common stock, Authorized	200,000,000	200,000,000
Common stock, Issued	135,850,068	135,850,068
Common stock, outstanding	135,850,068	135,850,068
Series A nonredeemable convertible preferred stock
Stockholder's deficit:
Preferred stock par value	$0.01	$0.01
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 par value	$0.01	$0.01
Preferred stock, authorized shares	1,600,000	1,600,000
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
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Revenue:
Contract revenue	$925	$793
Costs and expenses:
Research and development	973	707
General and administrative	650	781
Total costs and expenses	1,623	1,488
Loss from operations	-698	-695
Net loss	-698	-695
Net loss per weighted share attributable to common stockholders:
Basic	-698	-695
Diluted	($698)	($695)
Basic net loss per common share	($0.01)	($0.01)
Diluted net loss per common share	($0.01)	($0.01)
Weighted average common shares outstanding:
Basic	135,850	134,550
Diluted	135,850	134,550

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Cash flows used in operating activities
Net loss	($698)	($695)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	191	268
Change in assets and liabilities:
Accounts receivable	-253	-741
Deferred subcontractor cost	2	-387
Prepaid and other assets	-19	1
Accounts payable and accrued expenses	-291	816
Deferred revenue	-2	403
Net cash used in operating activities	-1,070	-335
Cash flows provided by financing activities:
Net decrease in cash and cash equivalents	-1,070	-335
Cash and cash equivalents at beginning of period	1,517	869
Cash and cash equivalents at end of period	$447	$534

A_Organization_Business_and_Su

A. Organization, Business and Summary of Significant Accounting Policies	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
A. Organization, Business and Summary of Significant Accounting Policies	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.
	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 the treatment of pulmonary fibrosis and for use in oncology indications 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 efficiently develop the compound for use in pulmonary fibrosis and 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, 2014 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, 2014, filed with the Securities and Exchange Commission (the “SEC”) on December 22, 2014.
	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 three months or less at the date of purchase. The carrying value of cash and cash equivalents approximate their fair market value at December 31, 2014 and September 30, 2014 due to their short-term nature.
	Significant customers and accounts receivable
	For the three months ended December 31, 2014, the Company’s primary customer was BARDA, which comprised 100% of total revenues. As of December 31, 2014, the Company’s receivable balances were comprised 100% from this customer. Unbilled accounts receivable, included in accounts receivable, totaling $1,232,000 and $889,000 as of December 31, 2014 and September 30, 2014, respectively, 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. 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 December 31, 2014 and September 30, 2014, 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 three months ended December 31, 2014 and 2013, total rent expense was approximately $10,000 and $10,000, 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 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_Liquidity

B. Liquidity	3 Months Ended
	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
B. Liquidity	In its audit opinion issued in connection with the Company’s consolidated financial statements for the fiscal year September 30, 2014 and 2013, the Company’s independent registered public accounting firm expressed substantial doubt about the Company’s ability to continue as a going concern given the Company’s recurring net losses, negative cash flows from operations and working capital deficiency. The Company had cash and cash equivalents of $447,000 on December 31, 2014, and $1,517,000 on September 30, 2014.  The decrease in cash was primarily due to cash used in operating activities.
	The Company has incurred significant losses since its inception. At December 31, 2014, the Company’s accumulated deficit was $184,699,000. This raises substantial doubt about Aeolus’ ability to continue as a going concern, which will be dependent on the Company’s ability to generate sufficient cash flows to meet the Company’s obligations on a timely basis, obtain additional financing and, ultimately, achieve operating profits through product sales or BARDA procurements. The Company intends to explore strategic and financial alternatives, which may include a merger or acquisition with or by another company, the sale of shares of stock and/or convertible debentures, the establishment of new collaborations for current research programs that include initial cash payments and on-going research support and the out-licensing of the Company’s compounds for development by a third party. The Company believes that without additional investment capital it will not have sufficient cash to fund its activities in the near future, and will not be able to continue operating. As such, the Company’s continuation as a going concern is dependent upon its ability to raise additional financing. If the Company is unable to obtain additional financing to fund operations, it will need to eliminate some or all of its activities, merge with another company, sell some or all of its assets to another company, or cease operations entirely. There can be 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 any or all of its assets.

C_Stockholders_Equity_Deficit

C. Stockholders' Equity (Deficit)	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
C. Stockholders' Equity (Deficit)	Preferred Stock
	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.
	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).
	As of December 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 December 31, 2014.
	There were no shares of Series A Convertible Preferred Stock issued or outstanding as of December 31, 2014.
	Common Stock
	The Certificate of Incorporation of Aeolus authorizes the issuance of up to 200,000,000 shares of Common Stock, at a par value of $.01 per share.  As of December 31, 2014, 135,850,068 shares of Common Stock were outstanding
	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 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
	As of December 31, 2014, warrants to purchase an aggregate of 16,029,627 shares of common stock were outstanding with a weighted average exercise price of $0.29 per share. Details of the warrants for common stock outstanding at December 31, 2014 are as follows:
	Number of Shares				Exercise Price			Expiration Date
		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
		1,337,627			$	0.4		Mar-17
		325,000			$	0.4		Apr-17
		300,000			$	0.258		Jun-17
		50,000			$	0.26		Jun-17
		140,000			$	0.35		Oct-17
		12,285,000			$	0.25		Feb-18
		1,242,000			$	0.25		Mar-18
		16,029,627
	As of December 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.
	Below is a summary of warrant activity (“common and preferred”) for the three months ended December 31, 2014:
							Weighted Average
			Number of Shares				Exercise Price		Remaining Contractual Term (in years)		Aggregate Intrinsic Value
	Outstanding at 9/30/2014			16,925,664			$	0.27		3.1	$	215,048
	Granted			-			$	-		-	$	-
	Exercised			-			$	-		-	$	-
	Expired or Canceled			-			$	-		-	$	-
	Forfeited			-			$	-		-	$	-
	Vested			-			$	-		-	$	-
	Outstanding at 12/31/2014			16,925,664			$	0.27		2.9	$	197,128

D_StockBased_Compensation

D. Stock-Based Compensation	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
D. Stock-Based Compensation	Below is a summary of stock option activity for the three months ended December 31, 2014:
							Weighted Average
			Number of Shares				Exercise Price			Remaining Contractual Term (in years)		Aggregate Intrinsic Value
	Outstanding at 9/30/2014			11,596,591			$	0.43			6.1	$	1
	Granted			525,000			$	0.24			-	$	-
	Exercised			-			$	-			-	$	-
	Expired or Canceled			(7,500	)		$	1.27			-	$	-
	Forfeited			-			$	-			-	$	-
	Outstanding at 12/31/2014			12,114,091			$	0.43			6	$	-
	For the three months ended December 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.
	The details of stock options for the three months ended December 31, 2014 were as follows:
					Options Outstanding							Options Exercisable
											Weighted					Weighted
					Number			Weighted			Average	Number		Weighted		Average
	Range of				Outstanding			Average			Remaining	Exercisable		Average		Remaining
	Exercise				at December 31,			Exercise			Contractual	At December 31,		Exercise		Contractual
	Prices				2014			Price			Life (in years)	2014		Price		Life (in years)
	$	0.23-$0.30			2,912,500			$	0.28		6.92	2,412,498		$	0.28	6.35
	$	0.31-$0.40			6,501,500			$	0.39		6.57	6,501,500		$	0.39	6.57
	$	0.41-$0.50			502,000			$	0.45		6.99	502,000		$	0.45	6.99
	$	0.51-$0.60			963,750			$	0.59		4.39	963,750		$	0.59	4.39
	$	0.61-$0.70			66,500			$	0.68		1.63	66,500		$	0.68	1.63
	$	0.71-$0.80			382,250			$	0.75		2.41	382,250		$	0.75	2.41
	$	0.81-$0.90			697,091			$	0.88		1.76	697,091		$	0.88	1.76
	$	0.91-$1.00			44,500			$	0.94		0.74	44,500		$	0.94	0.74
	$	1.01-$1.10			14,000			$	1.03		0.91	14,000		$	1.03	0.91
	$	1.10-$1.19			30,000			$	1.14		0.89	30,000		$	1.14	0.89
	Stock-based compensation expense recognized in the statement of operations is as follows (in thousands):
		For the three months ended
		December 31,
		2014				2013
	Research and Development Expenses		$	-			$	6
	General and Administrative Expenses			191				262
			$	191			$	268
	The total deferred compensation expense for outstanding and unvested stock options for the three months ended December 31, 2014 was $95,000. The weighted average remaining recognition period for the total deferred compensation expense is approximately eight months. The fair value of the options associated with the above compensation expense 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
			December 31,
			2014				2013
	Dividend yield			0	%			0	%
	Pre-vest forfeiture rate			1.85	%			0	%
	Expected volatility			144.09	%			156.27	%
	Risk-free interest rate			1.74	%			0.86	%
	Expected term		5.27 years				5.27 years

E_Net_Income_Loss_Per_Common_S

E. Net Income (Loss) Per Common Share	3 Months Ended
	Dec. 31, 2014
Earnings Per Share [Abstract]
E. 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 three months ended December 31, 2014 or the three months ended December 31, 2013. Diluted weighted average common shares excluded incremental shares of approximately 29,566,000 and 30,454,000, respectively, for the fiscal year 2014 and 2013, due to their anti-dilutive effect.
		For three months ended December 31,
			2014			2013
	Numerator:
	Net income (loss)	$	(698	)	$	-695
	Net income attributable to participating securities		—			—
	Net income (loss) attributable to common stockholders – basic	$	(698	)	$	-695
	Net income (loss)	$	(698	)	$	-695
	Less gain (loss) attributable to participating securities		—			—
	Net income (loss) attributable to common stockholders – diluted	$	(698	)	$	(695	)
	Denominator:
	Weighted-average shares used in computing net income per share attributable to common stockholders – basic		135,850			134,550
	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		135,850			134,550
	Basic net income per common share	$	(0.01	)	$	-0.01
	Diluted net income (loss) per common share	$	(0.01	)	$	-0.01

F_Commitments_and_Contingencie

F. Commitments and Contingencies	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
F. Commitments and Contingencies	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 December 31, 2014.
	We are also obligated to pay patent filing, prosecution, maintenance and defense costs, if any, for the intellectual property we have 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.

A_Organization_Business_and_Su1

A. Organization, Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2014
A. Organization Business And Summary Of Significant Accounting Policies Policies
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.
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 the treatment of pulmonary fibrosis and for use in oncology indications 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 efficiently develop the compound for use in pulmonary fibrosis and 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, 2014 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, 2014, filed with the Securities and Exchange Commission (the “SEC”) on December 22, 2014.
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 three months or less at the date of purchase. The carrying value of cash and cash equivalents approximate their fair market value at December 31, 2014 and September 30, 2014 due to their short-term nature.
Significant customer and accounts receivable	For the three months ended December 31, 2014, the Company’s primary customer was BARDA, which comprised 100% of total revenues. As of December 31, 2014, the Company’s receivable balances were comprised 100% from this customer. Unbilled accounts receivable, included in accounts receivable, totaling $1,232,000 and $889,000 as of December 31, 2014 and September 30, 2014, respectively, 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. 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 December 31, 2014 and September 30, 2014, 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 three months ended December 31, 2014 and 2013, total rent expense was approximately $10,000 and $10,000, 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 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.

C_Stockholders_Equity_Tables

C. Stockholder's Equity (Tables)	3 Months Ended
	Dec. 31, 2014
C. Stockholders Equity Tables
Warrants for Common Stock Outstanding	Number of Shares				Exercise Price			Expiration Date
		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
		1,337,627			$	0.4		Mar-17
		325,000			$	0.4		Apr-17
		300,000			$	0.258		Jun-17
		50,000			$	0.26		Jun-17
		140,000			$	0.35		Oct-17
		12,285,000			$	0.25		Feb-18
		1,242,000			$	0.25		Mar-18
		16,029,627
Summary Of Warrant Activity							Weighted Average
			Number of Shares				Exercise Price		Remaining Contractual Term (in years)		Aggregate Intrinsic Value
	Outstanding at 9/30/2014			16,925,664			$	0.27		3.1	$	215,048
	Granted			-			$	-		-	$	-
	Exercised			-			$	-		-	$	-
	Expired or Canceled			-			$	-		-	$	-
	Forfeited			-			$	-		-	$	-
	Vested			-			$	-		-	$	-
	Outstanding at 12/31/2014			16,925,664			$	0.27		2.9	$	197,128

D_StockBased_Compensation_Tabl

D. Stock-Based Compensation (Tables)	3 Months Ended
	Dec. 31, 2014
D. Stock-Based Compensation Tables
Summary Of Stock Option Activity							Weighted Average
			Number of Shares				Exercise Price			Remaining Contractual Term (in years)		Aggregate Intrinsic Value
	Outstanding at 9/30/2014			11,596,591			$	0.43			6.1	$	1
	Granted			525,000			$	0.24			-	$	-
	Exercised			-			$	-			-	$	-
	Expired or Canceled			(7,500	)		$	1.27			-	$	-
	Forfeited			-			$	-			-	$	-
	Outstanding at 12/31/2014			12,114,091			$	0.43			6	$	-
Details Of Stock Options					Options Outstanding							Options Exercisable
											Weighted					Weighted
					Number			Weighted			Average	Number		Weighted		Average
	Range of				Outstanding			Average			Remaining	Exercisable		Average		Remaining
	Exercise				at December 31,			Exercise			Contractual	At December 31,		Exercise		Contractual
	Prices				2014			Price			Life (in years)	2014		Price		Life (in years)
	$	0.23-$0.30			2,912,500			$	0.28		6.92	2,412,498		$	0.28	6.35
	$	0.31-$0.40			6,501,500			$	0.39		6.57	6,501,500		$	0.39	6.57
	$	0.41-$0.50			502,000			$	0.45		6.99	502,000		$	0.45	6.99
	$	0.51-$0.60			963,750			$	0.59		4.39	963,750		$	0.59	4.39
	$	0.61-$0.70			66,500			$	0.68		1.63	66,500		$	0.68	1.63
	$	0.71-$0.80			382,250			$	0.75		2.41	382,250		$	0.75	2.41
	$	0.81-$0.90			697,091			$	0.88		1.76	697,091		$	0.88	1.76
	$	0.91-$1.00			44,500			$	0.94		0.74	44,500		$	0.94	0.74
	$	1.01-$1.10			14,000			$	1.03		0.91	14,000		$	1.03	0.91
	$	1.10-$1.19			30,000			$	1.14		0.89	30,000		$	1.14	0.89
Stock-based compensation expense		For the three months ended
		December 31,
		2014				2013
	Research and Development Expenses		$	-			$	6
	General and Administrative Expenses			191				262
			$	191			$	268
Assumptions Of Stock Based Compensation			For the three months ended
			December 31,
			2014				2013
	Dividend yield			0	%			0	%
	Pre-vest forfeiture rate			1.85	%			0	%
	Expected volatility			144.09	%			156.27	%
	Risk-free interest rate			1.74	%			0.86	%
	Expected term		5.27 years				5.27 years

E_Net_Income_Loss_Per_Common_S1

E. Net Income (Loss) Per Common Share (Tables)	3 Months Ended
	Dec. 31, 2014
E. Net Income Loss Per Common Share Tables
Schedule of Earnings Per Share, Basic and Diluted		For three months ended December 31,
			2014			2013
	Numerator:
	Net income (loss)	$	(698	)	$	-695
	Net income attributable to participating securities		—			—
	Net income (loss) attributable to common stockholders – basic	$	(698	)	$	-695
	Net income (loss)	$	(698	)	$	-695
	Less gain (loss) attributable to participating securities		—			—
	Net income (loss) attributable to common stockholders – diluted	$	(698	)	$	(695	)
	Denominator:
	Weighted-average shares used in computing net income per share attributable to common stockholders – basic		135,850			134,550
	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		135,850			134,550
	Basic net income per common share	$	(0.01	)	$	-0.01
	Diluted net income (loss) per common share	$	(0.01	)	$	-0.01

A_Organization_Business_and_Su2

A. Organization, Business and Summary of Significant Accounting Policies (Details Narrative) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2014
Fair Value Measurements
BARDA pecentage representation in revenues	100.00%
BARDA pecentage representation in receivables	100.00%
Unbilled accounts receivable	$1,232,000		$889,000
Rent expense	$10,000	$10,000

C_Stockholders_Equity_Details

C. Stockholders' Equity (Details)	3 Months Ended
	Dec. 31, 2014
Number of Shares	16,029,627
$0.38
Number of Shares	50,000
Expiration Date	15-Apr
$0.50
Number of Shares	50,000
Expiration Date	16-May
$0.50
Number of Shares	50,000
Expiration Date	16-Jul
$1.00
Number of Shares	50,000
Expiration Date	16-Jul
$1.50
Number of Shares	50,000
Expiration Date	16-Jul
$2.00
Number of Shares	50,000
Expiration Date	16-Jul
$2.50
Number of Shares	50,000
Expiration Date	16-Jul
$0.40
Number of Shares	1,337,627
Expiration Date	17-Mar
$0.40
Number of Shares	325,000
Expiration Date	17-Apr
$0.26
Number of Shares	300,000
Expiration Date	17-Jun
$0.26
Number of Shares	50,000
Expiration Date	17-Jun
$0.35
Number of Shares	140,000
Expiration Date	17-Oct
$0.25
Number of Shares	12,285,000
Expiration Date	18-Mar
$0.25
Number of Shares	1,242,000
Expiration Date	18-Feb

C_Stockholders_Equity_Details_

C. Stockholders' Equity (Details 1) (Warrant [Member], USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014
Warrant [Member]
Number of Shares
Outstanding beginning balance	16,925,664
Granted	0
Exercised	0
Expired or Canceled	0
Forfeited	0
Vested	0
Outstanding ending balance	16,925,664
Exercise Price
Outstanding beginning balance	$0.27
Granted
Exercised
Expired or Canceled
Forfeited
Vested
Outstanding ending balance	$0.27
Remaining Contractual Term (in years)
Outstanding beginning balance	3 years 1 month 6 days
Outstanding ending balance	2 years 10 months 24 days
Aggregate Intrinsic Value
Outstanding beginning balance	$215,048
Outstanding ending balance	$197,128

D_StockBased_Compensation_Deta

D. Stock-Based Compensation (Details) (Employee Stock Option [Member], USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014
Employee Stock Option [Member]
Number of Shares
Outstanding beginning balance	11,596,591
Granted	525,000
Exercised	0
Expired or Canceled	-7,500
Forfeited	0
Outstanding ending balance	12,114,091
Exercise Price
Outstanding beginning balance	$0.43
Granted	$0.24
Exercised
Expired or Canceled	$1.27
Forfeited
Outstanding ending balance	$0.43
Remaining Contractual Term (in years)
Outstanding beginning balance	6 years 1 month 6 days
Outstanding ending balance	6 years
Aggregate Intrinsic Value
Outstanding beginning balance	$1
Outstanding ending balance	$0

D_StockBased_Compensation_Deta1

D. Stock-Based Compensation (Details 1) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2015
0.23-$0.30
Options Outstanding
Number Outstanding at June 30		2,912,500
Weighted Average Exercise Price		$0.28
Weighted Average Remaining Contractual Life (in years)	6 years 11 months 1 day
Options Exercisable
Number Exercisable at June 30		2,412,498
Weighted Average Exercise Price		$0.28
Weighted Average Remaining Contractual Life )in years)	6 years 4 months 6 days
0.31-$0.40
Options Outstanding
Number Outstanding at June 30		6,501,500
Weighted Average Exercise Price		$0.39
Weighted Average Remaining Contractual Life (in years)	6 years 6 months 25 days
Options Exercisable
Number Exercisable at June 30		6,501,500
Weighted Average Exercise Price		$0.39
Weighted Average Remaining Contractual Life )in years)	6 years 6 months 25 days
0.41-$0.50
Options Outstanding
Number Outstanding at June 30		502,000
Weighted Average Exercise Price		$0.45
Weighted Average Remaining Contractual Life (in years)	6 years 11 months 26 days
Options Exercisable
Number Exercisable at June 30		502,000
Weighted Average Exercise Price		$0.45
Weighted Average Remaining Contractual Life )in years)	6 years 11 months 26 days
0.51-$0.60
Options Outstanding
Number Outstanding at June 30		963,750
Weighted Average Exercise Price		$0.59
Weighted Average Remaining Contractual Life (in years)	4 years 4 months 20 days
Options Exercisable
Number Exercisable at June 30		963,750
Weighted Average Exercise Price		$0.59
Weighted Average Remaining Contractual Life )in years)	4 years 4 months 20 days
0.61-$0.70
Options Outstanding
Number Outstanding at June 30		66,500
Weighted Average Exercise Price		$0.68
Weighted Average Remaining Contractual Life (in years)	1 year 7 months 17 days
Options Exercisable
Number Exercisable at June 30		66,500
Weighted Average Exercise Price		$0.68
Weighted Average Remaining Contractual Life )in years)	1 year 7 months 17 days
0.71-$0.80
Options Outstanding
Number Outstanding at June 30		382,250
Weighted Average Exercise Price		$0.75
Weighted Average Remaining Contractual Life (in years)	2 years 4 months 28 days
Options Exercisable
Number Exercisable at June 30		382,250
Weighted Average Exercise Price		$0.75
Weighted Average Remaining Contractual Life )in years)	2 years 4 months 28 days
0.81-$0.90
Options Outstanding
Number Outstanding at June 30		697,091
Weighted Average Exercise Price		$0.88
Weighted Average Remaining Contractual Life (in years)	1 year 9 months 3 days
Options Exercisable
Number Exercisable at June 30		697,091
Weighted Average Exercise Price		$0.88
Weighted Average Remaining Contractual Life )in years)	1 year 9 months 3 days
0.91-$1.00
Options Outstanding
Number Outstanding at June 30		44,500
Weighted Average Exercise Price		$0.94
Weighted Average Remaining Contractual Life (in years)	8 months 26 days
Options Exercisable
Number Exercisable at June 30		44,500
Weighted Average Exercise Price		$0.94
Weighted Average Remaining Contractual Life )in years)	8 months 26 days
1.01-$1.10
Options Outstanding
Number Outstanding at June 30		14,000
Weighted Average Exercise Price		$1.03
Weighted Average Remaining Contractual Life (in years)	10 months 28 days
Options Exercisable
Number Exercisable at June 30		14,000
Weighted Average Exercise Price		$1.03
Weighted Average Remaining Contractual Life )in years)	10 months 28 days
1.10 - $1.19
Options Outstanding
Number Outstanding at June 30		30,000
Weighted Average Exercise Price		$1.14
Weighted Average Remaining Contractual Life (in years)	10 months 24 days
Options Exercisable
Number Exercisable at June 30		30,000
Weighted Average Exercise Price		$1.14
Weighted Average Remaining Contractual Life )in years)	10 months 24 days

D_StockBased_Compensation_Deta2

D. Stock-Based Compensation (Details 2) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Stock-based compensation expense recognized in the statement of operations
Research and Development Expenses	$0	$6
General and Administrative Expenses	191	262
Stock-based compensation expense	$191	$268

D_StockBased_Compensation_Deta3

D. Stock-Based Compensation (Details 3)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Notes to Financial Statements
Dividend yield	0.00%	0.00%
Pre-vest forfeiture rate	1.85%	0.00%
Expected volatility	144.09%	156.27%
Risk-free interest rate	1.74%	0.86%
Expected term	5 years 3 months 7 days	5 years 3 months 7 days

D_Net_Income_Loss_Per_Common_S

D. Net Income (Loss) Per Common Share (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Numerator:
Net income (loss)	($698)	($695)
Net income attributable to participating securities	0	0
Net income (loss) attributable to common stockholders - basic	-698	-695
Net loss	-698	-695
Less gain (loss) attributable to participating securities	0	0
Net income (loss) attributable to common stockholders b diluted	($698)	($695)
Denominator:
Weighted-average shares used in computing net income per share attributable to common stockholders - basic	135,850	134,550
Effect of potentially dilutive securities: Common stock warrants	0	0
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	135,850	134,550
Basic net income per common share	($0.01)	($0.01)
Diluted net income (loss) per common share	($0.01)	($0.01)

D_Net_Income_Loss_Per_Common_S1

D. Net Income (Loss) Per Common Share (Details Narrative)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
D. Net Income Loss Per Common Share Details Narrative
Diluted weighted average common shares excluded incremental shares due to their anti-dilutive effect	29,566,000	30,454,000