Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 12, 2016 | Mar. 31, 2016 | |
Document And Entity Information | |||
Entity Registrant Name | ANAVEX LIFE SCIENCES CORP. | ||
Entity Central Index Key | 1,314,052 | ||
Document Type | 10-K | ||
Trading Symbol | AVXL | ||
Document Period End Date | Sep. 30, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 163,478,217 | ||
Entity Common Stock, Shares Outstanding | 39,610,967 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Current | ||
Cash | $ 9,186,814 | $ 15,290,976 |
Sales Tax Recoverable | 79,347 | 76,840 |
Prepaid expenses | 180,124 | 100,845 |
Current assets | 9,446,285 | 15,468,661 |
Deposits | 52,396 | |
Equipment | 1,252 | |
Total assets | 9,498,681 | 15,469,913 |
Current | ||
Accounts payable and accrued liabilities | 3,119,993 | 2,503,726 |
Deferred grant income | 70,532 | 71,614 |
Promissory notes payable | 85,238 | |
Current liabilities | 3,190,525 | 2,660,578 |
Senior Convertible Debentures | 332 | |
Total liabilities | 3,190,525 | 2,660,910 |
Commitments - Note 9 | ||
Capital stock Authorized: 100,000,000 common shares, par value $0.001 per share Issued and outstanding: 36,168,299 common shares (September 30, 2015 - 32,044,213) | 36,169 | 32,044 |
Additional paid-in capital | 84,290,140 | 74,060,999 |
Common stock to be issued | 1,997,415 | |
Accumulated deficit | (78,018,153) | (63,281,455) |
Stockholders' equity | 6,308,156 | 12,809,003 |
Total liabilities and stockholder's equity | $ 9,498,681 | $ 15,469,913 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2016 | Sep. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Common shares, authorized | 100,000,000 | 100,000,000 |
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common shares, issued | 36,168,299 | 32,044,213 |
Common shares, outstanding | 36,168,299 | 32,044,213 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating expenses | |||
General and administrative | $ 8,334,740 | $ 4,836,978 | $ 2,236,580 |
Research and development | 7,254,303 | 2,271,736 | 732,395 |
Total operating expenses | (15,589,043) | (7,108,714) | (2,968,975) |
Other income (expenses) | |||
Grant income | 712,288 | ||
Interest income (expense), net | 11,322 | (71,825) | (7,089) |
Gain on settlement of accounts payable | 151,402 | 199,655 | |
Gain on settlement of debt | 61,205 | ||
Financing related charges and adjustments | (5,812) | (4,998,145) | (8,624,986) |
Foreign exchange (loss) gain | (48,445) | 70,554 | 33,042 |
Total other income (expenses), net | 881,960 | (4,999,416) | (8,399,378) |
Net loss before provision for income taxes | (14,707,083) | (12,108,130) | (11,368,353) |
Income tax expense - current | (29,615) | ||
Income tax benefit - deferred | 1,400,000 | ||
Net loss and comprehensive loss | $ (14,736,698) | $ (12,108,130) | $ (9,968,353) |
Loss per share | |||
Basic (in dollars per share) | $ (0.42) | $ (0.65) | $ (1.02) |
Diluted (in dollars per share) | $ (0.42) | $ (0.65) | $ (1.02) |
Weighted average number of shares outstanding | |||
Basic (in shares) | 35,153,426 | 18,584,820 | 9,804,539 |
Diluted (in shares) | 35,153,426 | 18,584,820 | 9,804,539 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows used in Operating Activities | |||
Net loss | $ (14,736,698) | $ (12,108,130) | $ (9,968,353) |
Adjustments to reconcile net loss to net cash used in operations: | |||
Amortization and depreciation | 1,252 | 995 | 768 |
Accretion of debt discount | 5,830 | 4,515,987 | 1,917,615 |
Stock-based compensation | 5,062,267 | 1,633,979 | 637,925 |
Amortization of deferred financing charge | 1,123,612 | ||
Non-cash financing related charges | 29,000 | ||
Deferred income tax benefit | (1,400,000) | ||
Change in fair value of derivative financial instruments | 567,000 | (2,956,000) | |
Loss (gain) on extinguishment of debt | (61,205) | (84,842) | 8,539,759 |
Gain on settlement of accounts payable | (151,402) | (199,655) | |
Unrealized foreign exchange | 3,065 | (18,683) | (18,798) |
Changes in non-cash working capital balances related to operations: | |||
Sales tax recoverable | (2,507) | (76,840) | |
Prepaid expenses and deposits | (79,279) | (67,692) | (33,234) |
Deposits | (52,396) | ||
Accounts payable and accrued liabilities | 775,332 | 1,310,606 | (303,018) |
Deferred grant income | (1,082) | 71,614 | |
Net cash used in operating activities | (9,236,823) | (4,227,006) | (2,659,379) |
Cash Flows used in Investing Activities | |||
Acquisition of equipment | (3,015) | ||
Net cash used in investing activities | (3,015) | ||
Cash Flows provided by Financing Activities | |||
Issuance of common shares, net of share issue costs | 3,167,420 | 12,343,988 | 368,170 |
Financing fees paid | (788,712) | ||
Repayment of promissory notes | (34,759) | (88,144) | |
Proceeds from the issuance of convertible debentures | 10,000,000 | ||
Net cash provided by financing activities | 3,132,661 | 12,255,844 | 9,579,458 |
(Decrease) increase in cash during the period | (6,104,162) | 8,028,838 | 6,917,064 |
Cash, beginning of period | 15,290,976 | 7,262,138 | 345,074 |
Cash, end of period | $ 9,186,814 | $ 15,290,976 | $ 7,262,138 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Common Shares to be Issued [Member] | Accumulated Deficit [Member] | Total |
Balance Beginning at Sep. 30, 2013 | $ 9,309 | $ 38,672,452 | $ 60,000 | $ (41,204,972) | $ (2,463,211) |
Balance Beginning (in shares) at Sep. 30, 2013 | 9,309,400 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity units issued under Purchase Agreement | $ 100 | 188,070 | 188,170 | ||
Equity units issued under Purchase Agreement (in shares) | 100,000 | ||||
Commitment shares issued under terms of Purchase Agreement | $ 1 | (1) | |||
Commitment shares issued under terms of Purchase Agreement (in shares) | 628 | ||||
Capital stock issued for cash - at $2.00 | $ 30 | 59,970 | (60,000) | ||
Capital stock issued for cash - at $2.00 (in shares) | 30,000 | ||||
Capital stock issued for cash - at $1.20 | $ 125 | 149,875 | 30,000 | 180,000 | |
Capital stock issued for cash - at $1.20 (in shares) | 125,000 | ||||
Share issue costs, net of recovery | (2,452) | (2,452) | |||
Issuance of detachable warrants | 5,989,900 | 5,989,900 | |||
Agent's warrants issued in connection with convertible debentures | 334,900 | 334,900 | |||
Beneficial conversion feature on convertible debentures issued, net of deferred income tax | 2,610,100 | 2,610,100 | |||
Reclassification of derivative financial instruments upon modification of warrant terms | 221,000 | 221,000 | |||
Capital stock issued pursuant to debt conversions - at $1.20 | $ 1,595 | 1,911,932 | 1,913,527 | ||
Capital stock issued pursuant to debt conversions - at $1.20 (in shares) | 1,594,607 | ||||
Capital stock issued pursuant to debt conversions - at $1.00 | $ 640 | 550,480 | $ 551,120 | ||
Capital stock issued pursuant to debt conversions - at $1.00 (in shares) | 640,428 | 640,428 | |||
Stock based compensation | 27,925 | 610,000 | $ 637,925 | ||
Net loss | (9,968,353) | (9,968,353) | |||
Balance Ending at Sep. 30, 2014 | $ 11,800 | 50,714,151 | 640,000 | (51,173,325) | 192,626 |
Balance Ending (in shares) at Sep. 30, 2014 | 11,800,063 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity units issued under Purchase Agreement | $ 1,825 | 8,125,440 | 8,127,265 | ||
Equity units issued under Purchase Agreement (in shares) | 1,825,000 | ||||
Commitment shares issued under terms of Purchase Agreement | $ 27 | (27) | |||
Commitment shares issued under terms of Purchase Agreement (in shares) | 27,144 | ||||
Capital stock issued pursuant to debt conversions - at $1.20 | $ 25 | 29,975 | (30,000) | ||
Capital stock issued pursuant to debt conversions - at $1.20 (in shares) | 25,000 | ||||
Capital stock issued pursuant to debt conversions - at $1.00 | $ 7,272 | 6,587,850 | 167,415 | 6,762,537 | |
Capital stock issued pursuant to debt conversions - at $1.00 (in shares) | 7,272,487 | ||||
Capital stock issued for cash - at $1.00 | $ 500 | 1,500 | 2,000 | ||
Capital stock issued for cash - at $1.00 (in shares) | 500,000 | ||||
Shares issued pursuant to the exercise of warrants - at $1.20 | $ 3,097 | 3,713,629 | 3,716,726 | ||
Shares issued pursuant to the exercise of warrants - at $1.20 (in shares) | 3,097,275 | ||||
Shares issued pursuant to the exercise of warrants - cashless | $ 6,839 | (6,839) | |||
Shares issued pursuant to the exercise of warrants - cashless (in shares) | 6,838,632 | ||||
Shares issued pursuant to favored nations provision | $ 659 | (659) | |||
Shares issued pursuant to favored nations provision (in shares) | 658,612 | 658,612 | |||
Reclassification of derivative liability | 4,482,000 | $ 4,482,000 | |||
Stock based compensation | 413,979 | 1,220,000 | 1,633,979 | ||
Net loss | (12,108,130) | (12,108,130) | |||
Balance Ending at Sep. 30, 2015 | $ 32,044 | 74,060,999 | 1,997,415 | (63,281,455) | $ 12,809,003 |
Balance Ending (in shares) at Sep. 30, 2015 | 32,044,213 | 32,044,213 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity units issued under Purchase Agreement | $ 741 | 3,041,619 | $ 3,042,360 | ||
Equity units issued under Purchase Agreement (in shares) | 740,523 | ||||
Commitment shares issued under terms of Purchase Agreement | $ 188 | (188) | |||
Commitment shares issued under terms of Purchase Agreement (in shares) | 187,616 | ||||
Capital stock issued pursuant to debt conversions - at $1.00 | $ 173 | 173,404 | (167,415) | 6,162 | |
Capital stock issued pursuant to debt conversions - at $1.00 (in shares) | 173,577 | ||||
Shares issued pursuant to the exercise of warrants | $ 42 | 125,020 | 125,062 | ||
Shares issued pursuant to the exercise of warrants (in shares) | 41,687 | ||||
Shares issued pursuant to the exercise of warrants - cashless | $ 1,979 | (1,979) | |||
Shares issued pursuant to the exercise of warrants - cashless (in shares) | 1,979,246 | ||||
Shares issued pursuant to employment agreement | $ 1,000 | 2,439,000 | (1,830,000) | 610,000 | |
Shares issued pursuant to employment agreement (in shares) | 1,000,000 | ||||
Shares issued for rounding in connection with 4:1 reverse stock split | $ 2 | (2) | |||
Shares issued for rounding in connection with 4:1 reverse stock split (in shares) | 1,437 | ||||
Stock based compensation | 4,452,267 | 4,452,267 | |||
Net loss | (14,736,698) | (14,736,698) | |||
Balance Ending at Sep. 30, 2016 | $ 36,169 | $ 84,290,140 | $ (78,018,153) | $ 6,308,156 | |
Balance Ending (in shares) at Sep. 30, 2016 | 36,168,299 | 36,168,299 |
CONSOLIDATED STATEMENT OF STOC7
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Shares issued for rounding, reverse stock split | 4 | ||
Share price of capital stock issued for cash | $ 1 | $ 2 | |
Share price of capital stock issued for cash | 1.20 | ||
Share price of capital stock issued pursuant to debt conversions | $ 1 | 1 | 1.20 |
Share price of capital stock issued pursuant to debt conversions | $ 1 | ||
Share price of capital stock issued pursuant to subscriptions received | 1.20 | ||
Share price of Shares issued pursuant to the exercise of warrants | $ 1.20 |
Business Description and Basis
Business Description and Basis of Presentation | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation | Note 1 Business Description and Basis of Presentation Business Anavex Life Sciences Corp. (the “Company”) is a clinical stage biopharmaceutical company engaged in the development of differentiated therapeutics for the treatment of neurodegenerative and neurodevelopmental diseases including drug candidates to treat Alzheimer’s disease, other central nervous system (CNS) diseases, pain and various types of cancer. The Company’s lead compound ANAVEX 2-73 is being developed to treat Alzheimer’s disease, Parkinson’s disease and potentially other CNS diseases, including rare diseases, such as Rett syndrome. Reverse Stock Split Effective October 7, 2015, the Company effected a reverse stock split on the basis of 1:4. As such, the Company’s authorized capital was decreased from 400,000,000 shares of common stock, par value $0.001 to 100,000,000 shares of common stock, par value $0.001 and all shares of common stock issued and outstanding were decreased on the basis of one new share for each four old shares. These condensed consolidated financial statements give retroactive effect to such reverse split and all share and per share amounts have been adjusted accordingly. Basis of Presentation These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America and the instructions to Form 10-K. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 Summary of Significant Accounting Policies a) Use of Estimates The preparation of financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to deferred income tax asset valuations, asset impairment, conversion features embedded in convertible notes payable, derivative valuations, stock based compensation and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. b) Principles of Consolidation These consolidated financial statements include the accounts of Anavex Life Sciences Corp. and its wholly-owned subsidiary, Anavex Australia Pty Limited, a company incorporated under the laws of Australia. All inter-company transactions and balances have been eliminated. c) Equipment Equipment is recorded at cost and is depreciated at 33% per annum on the straight-line basis. d) Financial Instruments The carrying value of the Company’s financial instruments, consisting of cash and accounts payable and accrued liabilities approximate their fair value due to the short-term maturity of such instruments. Based on borrowing rates currently available to the Company for similar terms and based on the short term duration of the debt instruments, the carrying value of the promissory notes payable approximate their fair value. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. e) Foreign Currency Translation The functional currency of the Company is the US dollar. Monetary items denominated in a foreign currency are translated into US dollars at exchange rates prevailing at the balance sheet date and non-monetary items are translated at exchange rates prevailing when the assets were acquired or obligations incurred. Foreign currency denominated expense items are translated at exchange rates prevailing at the transaction date. Unrealized gains or losses arising from the translations are credited or charged to income in the period in which they occur. The Company has determined that the functional currency of Anavex Australia Pty Limited is the US dollar. f) Research and Development Expenses Research and developments costs are expensed as incurred. These expenses are comprised of the costs of the Company’s proprietary research and development efforts, including salaries, facilities costs, overhead costs and other related expenses, as well as costs incurred in connection with third-party collaboration efforts. Milestone payments made by the Company to third parties are expensed when the specific milestone has been achieved. In addition, the Company incurs expenses in respect of the acquisition of intellectual property relating to patents and trademarks. The probability of success and length of time to develop commercial applications of the drugs subject to the acquired patents and trademarks is difficult to determine and numerous risks and uncertainties exist with respect to the timely completion of the development projects. There is no assurance the acquired patents and trademarks will ever be successfully commercialized. Due to these risks and uncertainties, the acquisition of patents and trademarks does not meet the definition of an asset and thus are expensed as incurred within general and administrative expenses. The Company is eligible to obtain a research and development tax credit from the Australian Tax Authority (ATO) for certain research and development activities undertaken in Australia. The tax incentive is available on the basis of specific criteria with which the Company must comply. Although the tax incentive is administered through the ATO, the Company has accounted for the tax incentive outside of the scope of ASC Topic 740, Income Taxes since the incentive is not linked to the Company’s income tax liability and can be realized regardless of whether the Company has generated taxable income in Australia. Research and development incentive income is recognized when eligible research and development activities have been undertaken and we have completed our assessment of whether such activities meet the relevant qualifying criteria. g) Grant Income Research and development incentive income is recognized when the research and development activities have been undertaken and the Company has completed its assessment of whether such activities meet the relevant qualifying criteria. The Company recognizes such income at the fair value of the grant when it is received and all substantive conditions have been satisfied. Grants received from government and other agencies in advance of the specific research and development costs to which they relate are deferred and recognized in the consolidated statement of operations in the period they are earned and when the related research and development costs are incurred. h) Income Taxes The Company has adopted the provisions of FASB ASC 740 "Income Taxes" (“ASC 740”) which requires the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company follows the provisions of ASC 740 regarding accounting for uncertainty in income taxes. The Company initially recognizes tax positions in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. Application requires numerous estimates based on available information. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, and its recognized tax positions and tax benefits may not accurately anticipate actual outcomes. As additional information is obtained, there may be a need to periodically adjust the recognized tax positions and tax benefits. These periodic adjustments may have a material impact on the consolidated statements of operations. i) Basic and Diluted Loss per Share The basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. For the year ended September 30, 2016, loss per share excludes 6,008,309 (2015 – 6,101,534) potentially dilutive common shares related to outstanding options, warrants, and convertible debentures as their effect was anti-dilutive. j) Stock-based Compensation The Company accounts for all stock-based payments and awards under the fair value method. Stock-based payments to non-employees are measured at the fair value of the consideration received, or the fair value of the equity instruments issued, or liabilities incurred, whichever is more reliably measurable. The fair value of stock-based payments to non-employees is periodically re-measured until the counterparty performance is complete, and any change therein is recognized over the vesting period of the award and in the same manner as if the Company had paid cash instead of paying with or using equity based instruments. Compensation costs for stock-based payments with graded vesting are recognized on a straight-line basis. The cost of the stock-based payments to non-employees that are fully vested and non-forfeitable at the grant date is measured and recognized at that date, unless there is a contractual term for services in which case such compensation would be amortized over the contractual term. The Company accounts for the granting of share purchase options to employees using the fair value method whereby all awards to employees will be recorded at fair value on the date of the grant. The fair value of all share purchase options are expensed over their vesting period with a corresponding increase to additional paid-in capital. The Company uses the Black-Scholes option valuation model to calculate the fair value of share purchase options at the date of the grant. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimates k) Fair Value Measurements The fair value hierarchy under GAAP is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 -quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and Level 3 - assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. The book value of accounts payable and accrued liabilities approximate their fair values due to the short term maturity of those instruments. Based on borrowing rates currently available to the Company under similar terms, the book value of promissory notes payable approximates their fair values. The Company’s promissory notes payable are based on Level 2 inputs in the ASC 820 fair value hierarchy. At September 30, 2016 and 2015, the Company did not have any Level 3 assets or liabilities. Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). There were no assets or liabilities measured at fair value on a nonrecurring basis during the periods ended September 30, 2016 and 2015. l) Derivative Liabilities The Company evaluates its financial instruments and other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with ASC 815. The result of this accounting treatment is that the fair value of the embedded derivative is marked- to-market at each balance sheet date and recorded as a liability and the change in fair value is recorded in the consolidated statements of operations as other income or expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Derivative instruments that become subject to reclassification are reclassified at the fair value of the instrument on the reclassification date. Derivative instrument liabilities will be classified in the balance sheet as current or non-current based on whether or not settlement of the derivative instrument is expected within 12 months of the balance sheet date. From time to time, certain of the Company’s embedded conversion features on debt and outstanding warrants have been treated as derivative liabilities for accounting purposes under ASC 815 due to insufficient authorized shares to fully settle conversion features of the instruments if exercised. In this case, the Company utilized the latest inception date sequencing method to reclassify outstanding instruments as derivative instruments. These contracts were recognized at fair value with changes in fair value recognized in earnings until such time as the conditions giving rise to such derivative liability classification were settled. These derivative instruments did not trade in an active securities market. The Company used a binomial option pricing model to value derivative liabilities. This model used Level 3 inputs in the fair value hierarchy established by ASC 820 Fair Value Measurement. m) Recent Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted In June 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period ("ASU 2014-12"). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. This standard is effective for the Company beginning on October 1, 2016. The adoption of this standard is not expected to have a material impact for any period presented. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 will explicitly require management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016. The Company is currently evaluating the impact this guidance will have on its financial condition, results of operations and cash flows. In May 2014, the FASB and the International Accounting Standards Board (IASB) issued a converged standard on revenue recognition from contracts with customers, ASU 2014-09 (Topic 606 and IFRS 15). This standard will supersede nearly all existing revenue recognition guidance. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact for any period presented. In April 2015, the FASB, issued the Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs In November 2015, FASB issued Accounting Standards Update No. 2015-17 Income Taxes: Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases In March 2016, the FASB issued ASC 2016-09, “ Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting Other than noted above, the Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow. |
Promissory Notes Payable
Promissory Notes Payable | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Promissory Notes Payable | Note 3 Promissory Notes Payable 2016 2015 Promissory note dated January 9, 2013 with a principal balance of CDN$86,677, bearing interest at 12% per annum, secured by all the present and future assets of the Company; due on demand (a) $ - $ 64,630 Promissory note dated January 9, 2013 with a principal balance of CDN$27,639, bearing interest at 12% per annum, secured by all the present and future assets of the Company; due on demand (b) - 20,608 $ - $ 85,238 a) During the year ended September 30, 2013, the Company issued a promissory note in the amount of $64,630 (CDN$86,677) to the former President, Secretary, Treasurer, CFO and director of the Company (the “President”) in exchange for unpaid consulting fees owing to the President. The note was bearing interest at 12% per annum and was due June 30, 2013. b) During the year ended September 30, 2013, the Company issued a promissory note in the amount of $20,608 (CDN$27,639) to a former director of the Company (the “Director”) in exchange for unpaid consulting fees owing to the Director. The note was bearing interest at 12% per annum and was due June 30, 2013. The Notes were secured by a right to delay the transfer of any or all of the Company’s assets until the obligations of the Notes were satisfied, including a restriction on the transfer of cash by the Company and a security interest over the intellectual property of the Company. During the year ended September 30, 2016, the Company settled the remaining principal and interest owed under the Notes of $95,964 (CDN$124,237) with cash payments totaling $34,759 (CDN$45,000) to the former officer and director, resulting in a gain on settlement of debt of $61,205 (CDN$79,237). |
Deferred Grant Income
Deferred Grant Income | 12 Months Ended |
Sep. 30, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Grant Income | Note 4 Deferred Grant Income During the year ended September 30, 2015, the Company was awarded grant funding in the amount of $286,455, of which the Company received $143,222 during the year ended September 20, 2016 (2015 - $71,614) and the remainder will be received in equal semi-annual instalments over the remainder of the commitment through January 2017. The grant was received in exchange for a commitment to provide research and development for preclinical validation of Sigma-1 receptor agonism as potential treatment for Parkinsons disease. The grant income was deferred and is being amortized as an increase to other income over a two-year period as the related research and development expenditures are incurred. During the year ended September 30, 2016, the Company recognized $141,195 (2015: $0, 2014: $0) of this grant on its statement of operations within grant income. During the year ended September 30, 2016, the Company recognized other grant income of $571,093 in respect of a research and development incentive program offered by the Australian government. This grant income is included on its statement of operations within grant income. |
Senior Convertible Debentures
Senior Convertible Debentures | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Senior Convertible Debentures | Note 5 Senior Convertible Debentures 2016 2015 Senior Convertible Debentures, non-interest bearing, unsecured, due March 18, 2044 $ - $ 6,162 Less: Debt Discount - (5,830 ) Total carrying value - 332 Less: current portion - - Long term liability $ - $ 332 On March 13, 2014, the Company entered into a Securities Purchase Agreement with certain purchasers, pursuant to which the Company issued senior convertible debentures in the aggregate principal amount of $10,000,000 (the “Debentures”). The Debentures were unsecured, non-interest bearing and were due on March 18, 2044. The Debentures were originally convertible, in whole or in part, at the option of the holder into common shares of the Company at $1.20 per share (“the Conversion Price”). The Conversion Price of the debenture will be adjusted in the event of common stock dividend, split or consolidation. The Conversion Price was later amended to $1.00 per share. At September 30, 2016, all of the principal and amount of the Debentures had been converted to shares of common stock and, as a result, no amounts were owing under the terms of the Debentures (2015: $6,162 in principal amount of these Debentures remained outstanding). During the year ended September 30, 2016, the Company issued an aggregate of 6,162 shares of common stock based on a conversion price of $1.00 per share pursuant to the conversion of $6,162 in outstanding principal amounts due under the Debentures. The Company recorded a debt discount in connection with the issuance and amendment of the Debentures during the year ended September 30, 2014, which was being amortized using the effective interest method over the term of the Debentures. During the year ended September 30, 2016, the Company recorded $5,830 (2015: $4,515,987, 2014: $1,917,615) in respect of the amortization of this discount. |
Capital Stock
Capital Stock | 12 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock | Note 6 Capital Stock Effective October 7, 2015, the Company effected a reverse stock split on the basis of 1:4. As such, the Company’s authorized capital was decreased from 400,000,000 shares of common stock, par value $0.001 to 100,000,000 shares of common stock, par value $0.001 and all shares of common stock issued and outstanding were decreased on the basis of one new share for each four old shares. These condensed consolidated financial statements give retroactive effect to such reverse split and all share and per share amounts have been adjusted accordingly. Authorized 100,000,000 shares of common stock. Equity Transactions Year ended September 30, 2016 During the year ended September 30, 2016, the Company issued 167,415 shares of common stock pursuant to the application of an incorrect conversion price for conversion notices received in respect of the Debentures, during the year ended September 30, 2015. During the year ended September 30, 2016, the Company issued 1,000,000 shares of common stock to a director and officer of the Company pursuant to the terms of a 2013 employment agreement with that director and officer. Year ended September 30, 2015 On October 22, 2014, the Company entered into a Securities Purchase Agreement (the “10/14 Purchase Agreement”) with one investor for an equity investment of $500,000 at a price of $1.00 per unit. Pursuant to the terms of the 10/14 Purchase Agreement, the Company agreed to sell, and the Investor agreed to purchase, 500,000 shares of common stock. In addition, the Company agreed to issue an aggregate of 1,000,000 stock purchase warrants, of which 500,000 were exercisable at $1.20 per share and 500,000 were exercisable at $1.68 per share, each for a period of five years, subject to normal adjustment for stock splits, combinations, and reclassification events. The warrants issued were required to be accounted for as derivative liabilities at their date of issuance, pursuant to the guidance of ASC 815. Consequently, the Company allocated the proceeds from the issuance of the units first to the warrants, at their fair value of $527,000 with an amount of $2,000 being allocated to equity at par value on the date of the transaction. The $29,000 excess of the sum of fair value and par value over the proceeds received of $500,000 was recorded as a component of financing related charges and adjustments on the statement of operations during the year ended September 30, 2015. The fair value of the warrants was determined based on the binomial option pricing model using the following weighted average assumptions: risk-free interest rate: 1.46%, expected life: 5 years, expected volatility: 100.21%, dividend yield: 0%. The Company paid a finder’s fee of $50,000 in connection with the 10/14 Purchase Agreement. This amount was expensed as a component of financing related charges and adjustments during the year ended September 30, 2015. On March 16, 2015, pursuant to an anti-dilution provision contained in private placement subscription agreements dated May 31, 2012, the Company adjusted the price of 658,612 shares of common stock from $2.00 to $1.00 per share. Consequently, the Company issued 658,612 shares of common stock for no additional consideration. Year ended September 30, 2014 On February 24, 2014, the Company issued 30,000 units at $2.00 per unit for gross proceeds of $60,000, which was received during the year ended September 30, 2013. Each unit consisted of one common share and one common share purchase warrant entitling the holder to purchase additional common shares at $4.00 per share for a period of five years from the date of issuance. On February 24, 2014, the Company issued 125,000 units at $1.20 per unit for gross proceeds of $150,000. Each unit consisted of one common share and one common share purchase warrant entitling the holder to purchase additional common shares at $3.00 per share for a period of five years from the date of issuance. On February 28, 2014, the Company received $30,000 in share subscriptions in respect of the issuance of 25,000 units at $1.20 per unit. Each unit consisted of one common share and one common share purchase warrant entitling the holder to purchase additional common shares at $3.00 per share for a period of five years from the date of issuance. These shares were issued during the year ended September 30, 2015. |
Lincoln Park Purchase Agreement
Lincoln Park Purchase Agreement | 12 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Lincoln Park Purchase Agreement | Note 7 Lincoln Park Purchase Agreement 2013 Purchase Agreement On July 5, 2013, the Company entered into a $10,000,000 purchase agreement (the “2013 Purchase Agreement”) with Lincoln Park Capital Fund, LLC, (“Lincoln Park”) an Illinois limited liability company (the “Financing”) pursuant to which the Company sold and issued to Lincoln Park, and Lincoln Park purchased $10,000,000 in value of its shares of common stock from time to time over a 25-month period. During the year ended September 30, 2016, the Company issued to Lincoln Park an aggregate of 296,104 (2015: 1,852,144, 2014: 100,628) shares of common stock under the 2013 Purchase Agreement, including 290,523 (2015: 1,825,000, 2014: 100,000) shares of common stock for an aggregate purchase price of $1,684,560 (2015: $8,127,265, 2014: $188,170) and 5,581 (2015: 27,144, 2014: 628) commitment shares. At September 30, 2016, all remaining purchase amounts available under the 2013 Purchase Agreement have been utilized. As such, no further shares will be sold under the 2013 Purchase Agreement. 2015 Purchase Agreement On October 21, 2015, the Company entered into a $50,000,000 purchase agreement (the “2015 Purchase Agreement”) with Lincoln Park pursuant to which the Company may sell and issue to Lincoln Park, and Lincoln Park is obligated to purchase, up to $50,000,000 in value of its shares of common stock from time to time over a 36-month period. In connection with the 2015 Purchase Agreement, the Company also entered into a registration rights agreement with Lincoln Park whereby the Company agreed to file a registration statement with the SEC covering the shares of the Company’s common stock that may be issued to Lincoln Park under the 2015 Purchase Agreement. The Company may direct Lincoln Park, at its sole discretion, and subject to certain conditions set forth in the 2015 Purchase Agreement, to purchase up to 50,000 shares of common stock on any business day, provided that at least one business day has passed since the most recent purchase. The amount of a purchase may be increased under certain circumstances provided, however that Lincoln Park’s committed obligation under any single purchase shall not exceed $2,000,000. The purchase price of shares of common stock related to the future funding will be based on the then prevailing market prices of such shares at the time of sales as described in the 2015 Purchase Agreement. In consideration for entering into the 2015 Purchase Agreement, the Company issued to Lincoln Park 179,598 shares of common stock as an initial commitment fee. Under the terms of the 2015 Purchase Agreement, the Company shall issue up to 89,799 shares pro rata, when and if, Lincoln Park purchases at the Company’s discretion, the $50,000,000 aggregate commitment. During the year ended September 30, 2016, the Company issued to Lincoln Park an aggregate of 452,437 shares of common stock under the 2015 Purchase Agreement, including 450,000 shares of common stock for an aggregate purchase price of $1,357,800 and 2,437 commitment shares. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 8 Related Party Transactions As at September 30, 2016, included in accounts payable and accrued liabilities was $59,264 (2015: $33,000) owing to directors and officers of the Company for director fees and reimbursable expenses, and a former director and officer of the Company for unpaid fees. See also Note 3. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 Commitments and Contingencies a) Lease Commitment On September 30, 2015, the Company entered into a sublease agreement commencing October 1, 2015 and expiring August 31, 2016. On August 22, 2016 the sublease agreement was amended and extended to March 31, 2019. The Company is committed to lease payments as follows: Fiscal year ending September 30, Amount 2017 $ 112,189 2018 112,189 2019 56,094 $ 280,472 b) Litigation The Company is subject to claims and legal proceedings that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect upon the Company's consolidated financial statements. The Company does not believe that any of such pending claims and legal proceedings will have a material adverse effect on its consolidated financial statements . c) Share Purchase Warrants A summary of the Company’s share purchase warrants outstanding is presented below: Number of Shares Weighted Balance, October 1, 2014 18,728,910 $ 1.59 Expired (62,500 ) $ 1.40 Exercised (15,468,520 ) $ 1.43 Issued 1,075,000 $ 0.76 Balance, September 30, 2015 4,272,890 $ 2.11 Exercised (2,463,581 ) $ 1.67 Balance, September 30, 2016 1,809,309 $ 2.70 During the year ended September 30, 2016, the Company issued 1,979,246 shares of common stock pursuant to the exercise of 2,421,894 share purchase warrants on a cashless basis, and 41,687 shares of common stock pursuant to the exercise of warrants for cash. At September 30, 2016, the Company had 1,809,309 currently exercisable share purchase warrants outstanding as follows: Number Exercise Price Expiry Date 1,462,180 $ 3.00 July 5, 2018 30,000 $ 4.00 February 24, 2019 277,127 $ 1.20 March 13, 2019 1,252 $ 1.68 March 13, 2019 31,250 $ 1.24 May 31, 2019 7,500 $ 1.04 May 31, 2019 1,809,309 All of the warrants expiring on July 5, 2018 contain a contingent call provision whereby the Company may have the option to call for cancellation of all or any portion of the warrants for consideration equal to $0.001 per share, provided the quoted market price of the Company’s common stock exceeds $6.00 for a period of twenty consecutive trading days, subject to certain minimum volume restrictions and other restrictions as provided in the warrant agreements. d) Stock–based Compensation Plan 2015 Stock Option Plan On September 18, 2015, the Company’s board of directors approved a 2015 Omnibus Incentive Plan (the “2015 Plan”), which provides for the grant of stock options and restricted stock awards to directors, officers, employees and consultants of the Company. The maximum number of our common shares reserved for issue under the plan is 6,050,553 shares subject to adjustment in the event of a change of the Company’s capitalization. As a result of the adoption of the 2015 Plan, no further option awards will be granted under any previously existing stock option plan. Stock option awards previously granted under previously existing stock option plans remain outstanding in accordance with their terms. The 2015 Plan is administered by the board of directors, except that it may, in its discretion, delegate such responsibility to a committee of such board. The exercise price will be determined by the board of directors at the time of grant, and the exercise price of each option shall be at least the fair market value on the grant date; provided, however, that in the event that a grantee owns more than 10% of the Company’s common stock as of the date of grant, the exercise price of an option granted to such grantee that is intended to be an incentive stock option shall be not less than 110% of the fair market value on the date of grant. Stock options may be granted under the 2015 Plan for an exercise period of up to ten years from the date of grant of the option or such lesser periods as may be determined by the board, subject to earlier termination in accordance with the terms of the 2015 Plan. A summary of the status of Company’s outstanding stock purchase options for the years ended September 30, 2016 and 2015 is presented below: Number of Weighted Weighted Outstanding at October 1, 2014 792,500 $ 2.82 Forfeited (67,500 ) $ 12.00 Granted 1,097,500 $ 2.02 $ 1.66 Outstanding at September 30, 2015 1,822,500 $ 2.00 Forfeited - $ - Granted 2,401,500 $ 5.22 $ 4.38 Expired (25,000 ) $ 14.68 Outstanding at September 30, 2016 4,199,000 $ 3.76 Exercisable at September 30, 2016 2,290,716 $ 2.41 Exercisable at September 30, 2015 825,002 $ 1.78 At September 30, 2016, the following stock options were outstanding: Number of Shares Aggregate Remaining Number Exercise Intrinsic Contractual Total Vested Price Expiry Date Value Life (yrs) 500,000 500,000 $ 1.60 July 5, 2023 1,015,000 6.76 75,000 50,000 $ 1.20 May 7, 2024 182,250 7.60 125,000 62,500 $ 1.32 May 8, 2024 288,750 7.60 718,750 479,170 $ 0.92 April 2, 2025 1,947,813 8.50 50,000 20,834 $ 1.44 June 8, 2025 109,500 8.69 50,000 16,667 $ 1.76 June 15, 2025 93,500 8.71 278,750 116,146 $ 5.04 September 18, 2025 - 8.97 1,500 1,500 $ 5.64 September 30, 2025 - 9.00 31,250 10,416 $ 5.68 October 2, 2025 - 9.00 25,000 8,333 $ 8.98 October 16, 2025 - 9.04 1,500 1,500 $ 5.57 December 31, 2025 - 9.25 1,500 - $ 4.90 March 31, 2026 - 9.50 1,500 1,500 $ 5.66 April 27, 2026 - 9.57 50,000 12,121 $ 4.09 May 18, 2026 - 9.63 1,500 - $ 6.11 June 30, 2026 - 9.75 379,625 - $ 6.26 July 5, 2026 - 9.76 861,429 - $ 7.06 July 18, 2026 - 9.80 40,000 3,333 $ 3.06 September 7, 2026 22,800 9.94 1,006,696 1,006,696 $ 3.28 September 22, 2026 352,344 9.98 4,199,000 2,290,716 $ 4,011,956 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted market price of the Company’s stock for the options that were in-the-money at September 30, 2016. The Company recognized stock based compensation expense of $4,452,267 during the year ended September 30, 2016 (2015: $413,979; 2014: $27,925) in connection with the issuance and vesting of stock options in exchange for services. These amounts have been included in general and administrative expenses and research and development expenses on the Company’s statement of operations as follows: 2016 2015 2014 General and administrative $ 2,903,220 $ 413,979 $ 27,925 Research and development 1,549,047 - - $ 4,452,267 $ 413,979 $ 27,925 An amount of $7,741,573 in stock based compensation is expected to be recorded over the remaining term of such options through December 31, 2018. The fair value of each option award is estimated on the date of grant using the Black Scholes option pricing model based on the following weighted average assumptions: 2016 2015 2014 Risk-free interest rate 1.28 % 1.63 % 2.27 % Expected life of options (years) 5.88 6.30 6.81 Annualized volatility 114.75 % 98.41 89.19 Dividend rate 0.00 % 0.00 % 0.00 % |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 Income Taxes The tax effects of the temporary differences that give rise to the Company’s estimated deferred tax assets and liabilities are as follows: 2016 2015 Assumed Tax rate 34% 34% Net operating loss carryforwards $ 11,223,000 $ 9,177,000 Research and development tax credits 1,036,000 794,000 Foreign exchange (25,000 ) (10,000 ) Unpaid charges 152,000 832,000 Intangible asset costs 57,000 64,000 Stock-based compensation 2,004,000 581,000 Valuation allowance for deferred tax assets (14,447,000 ) (11,438,000 ) Net deferred tax assets $ - $ - The provision for income taxes differ from the amount established using the statutory income tax rate as follows: 2016 2015 2014 Income benefit at statutory rate of 34% $ (5,010,000 ) $ (4,117,000 ) $ (3,865,000 ) Foreign income taxed at other rates 132,000 80,000 13,000 Permanent differences Effect of stock based compensation - - 202,000 Debt extinguishment - (29,000 ) 2,736,000 Mark-to-market deriative liability adjustment - 193,000 (994,000 ) Non-deductible finance and accretion expenses 5,000 1,511,000 808,000 Non-deductible compensation costs 738,000 Other permanent differences - (5,000 ) (16,000 ) Research and development tax credit 628,000 502,000 (26,000 ) Expiry of foreign net operating loss carryforwards 333,000 - - Adjustment and true up to prior years' tax provision 176,000 100,000 14,000 Effect of foreign exchange and other (11,000 ) - - Change in valuation allowance related to current year provision 3,009,000 1,765,000 2,528,000 Income Tax Recovery $ - $ - $ 1,400,000 As of September 30, 2016, the Company had net operating loss carry-forwards of approximately $33,000,000 (2015: $25,000,000) in the United States and approximately $250,000 (2015: $Nil) in Australia, available to offset future taxable income in those jurisdictions. The carry-forwards will begin to expire in 2027. The Company evaluates its valuation allowance requirements based on projected future operations. When circumstances change and this causes a change in management’s judgment about the recoverability of deferred tax assets, the impact of the change on the valuation allowance is reflected in current income. Because management of the Company does not currently believe that it is more likely than not that the Company will receive the benefit of these assets, a valuation allowance equal to the deferred tax asset has been established at both September 30, 2016 and 2015. Uncertain Tax Positions The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company’s tax returns are subject to tax examinations by U.S. federal and state tax authorities, or examinations by foreign tax authorities until the respective statutes of limitation expire. The Company is subject to tax examinations by tax authorities for all taxation years commencing on or after 2008. The Company’s net operating loss carryforwards of approximately $33,000,000 in the United States may be subject to limitations by Section 382 of the Internal Revenue Code with respect to the amount utilizable each year. This limitation reduces the Company’s ability to utilize net operating loss carry-forwards, under certain circumstances. The Company completed a Section 382 analysis through the fiscal year ended September 30, 2016 and currently does not believe Section 382 will apply to limit the utilization of these tax losses. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Note 11 Supplemental Cash Flow Information Investing and financing activities that do not have a direct impact on current cash flows are excluded from the statement of cash flows. During the year ended September 30, 2016; i) the Company issued 6,162 shares of common stock upon conversion of $6,162 in principal amount of convertible debentures at a conversion price of $1.00 per share and 167,415 shares of common stock pursuant to the application of an incorrect conversion price for conversion notices received during the year ended September 30, 2015; During the year ended September 30, 2015; i) the Company issued 7,272,487 shares of common stock and an additional 167,415 shares of common stock became issuable upon conversion of $7,439,900 in principal amount of convertible debentures at a conversion price of $1.00 per share; ii) the Company reclassified an amount of $4,482,000 into equity upon modification of the terms of certain derivative instruments. iii) the Company adjusted the price of 658,612 shares of common stock from $2.00 to $1.00 per share pursuant to an anti-dilution provision contained in private placement subscription agreements dated May 31, 2012. Consequently, the Company issued 658,612 shares of common stock for no consideration. During the year ended September 30, 2014; i) the Company reclassified an amount of $221,000 into equity upon modification of the terms of certain derivative instruments. ii) the Company issued 1,594,607 shares of common stock of the Company pursuant to the conversion of $1,913,528 face value of convertible debentures at $1.20 per share; iii) the Company issued 640,428 shares of common stock of the Company at a fair value of $551,120 pursuant to the conversion of convertible debentures at a conversion price of $1.00 per share. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12 Subsequent Events Subsequent to September 30, 2016, the Company received proceeds of $11,039,022 through the issuance of 3,442,668 shares of common stock at various prices. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | a) Use of Estimates The preparation of financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to deferred income tax asset valuations, asset impairment, conversion features embedded in convertible notes payable, derivative valuations, stock based compensation and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Principles of Consolidation | b) Principles of Consolidation These consolidated financial statements include the accounts of Anavex Life Sciences Corp. and its wholly-owned subsidiary, Anavex Australia Pty Limited, a company incorporated under the laws of Australia. All inter-company transactions and balances have been eliminated. |
Equipment | c) Equipment Equipment is recorded at cost and is depreciated at 33% per annum on the straight-line basis. |
Financial Instruments | d) Financial Instruments The carrying value of the Company’s financial instruments, consisting of cash and accounts payable and accrued liabilities approximate their fair value due to the short-term maturity of such instruments. Based on borrowing rates currently available to the Company for similar terms and based on the short term duration of the debt instruments, the carrying value of the promissory notes payable approximate their fair value. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. |
Foreign Currency Translation | e) Foreign Currency Translation The functional currency of the Company is the US dollar. Monetary items denominated in a foreign currency are translated into US dollars at exchange rates prevailing at the balance sheet date and non-monetary items are translated at exchange rates prevailing when the assets were acquired or obligations incurred. Foreign currency denominated expense items are translated at exchange rates prevailing at the transaction date. Unrealized gains or losses arising from the translations are credited or charged to income in the period in which they occur. The Company has determined that the functional currency of Anavex Australia Pty Limited is the US dollar. |
Research and Development Expenses | f) Research and Development Expenses Research and developments costs are expensed as incurred. These expenses are comprised of the costs of the Company’s proprietary research and development efforts, including salaries, facilities costs, overhead costs and other related expenses, as well as costs incurred in connection with third-party collaboration efforts. Milestone payments made by the Company to third parties are expensed when the specific milestone has been achieved. In addition, the Company incurs expenses in respect of the acquisition of intellectual property relating to patents and trademarks. The probability of success and length of time to develop commercial applications of the drugs subject to the acquired patents and trademarks is difficult to determine and numerous risks and uncertainties exist with respect to the timely completion of the development projects. There is no assurance the acquired patents and trademarks will ever be successfully commercialized. Due to these risks and uncertainties, the acquisition of patents and trademarks does not meet the definition of an asset and thus are expensed as incurred within general and administrative expenses. The Company is eligible to obtain a research and development tax credit from the Australian Tax Authority (ATO) for certain research and development activities undertaken in Australia. The tax incentive is available on the basis of specific criteria with which the Company must comply. Although the tax incentive is administered through the ATO, the Company has accounted for the tax incentive outside of the scope of ASC Topic 740, Income Taxes since the incentive is not linked to the Company’s income tax liability and can be realized regardless of whether the Company has generated taxable income in Australia. Research and development incentive income is recognized when eligible research and development activities have been undertaken and we have completed our assessment of whether such activities meet the relevant qualifying criteria. |
Grant Income | g) Grant Income Research and development incentive income is recognized when the research and development activities have been undertaken and the Company has completed its assessment of whether such activities meet the relevant qualifying criteria. The Company recognizes such income at the fair value of the grant when it is received and all substantive conditions have been satisfied. Grants received from government and other agencies in advance of the specific research and development costs to which they relate are deferred and recognized in the consolidated statement of operations in the period they are earned and when the related research and development costs are incurred. |
Income Taxes | h) Income Taxes The Company has adopted the provisions of FASB ASC 740 "Income Taxes" (“ASC 740”) which requires the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company follows the provisions of ASC 740 regarding accounting for uncertainty in income taxes. The Company initially recognizes tax positions in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. Application requires numerous estimates based on available information. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, and its recognized tax positions and tax benefits may not accurately anticipate actual outcomes. As additional information is obtained, there may be a need to periodically adjust the recognized tax positions and tax benefits. These periodic adjustments may have a material impact on the consolidated statements of operations. |
Basic and Diluted Loss per Share | i) Basic and Diluted Loss per Share The basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. For the year ended September 30, 2016, loss per share excludes 6,008,309 (2015 – 6,101,534) potentially dilutive common shares related to outstanding options, warrants, and convertible debentures as their effect was anti-dilutive. |
Stock-based Compensation | j) Stock-based Compensation The Company accounts for all stock-based payments and awards under the fair value method. Stock-based payments to non-employees are measured at the fair value of the consideration received, or the fair value of the equity instruments issued, or liabilities incurred, whichever is more reliably measurable. The fair value of stock-based payments to non-employees is periodically re-measured until the counterparty performance is complete, and any change therein is recognized over the vesting period of the award and in the same manner as if the Company had paid cash instead of paying with or using equity based instruments. Compensation costs for stock-based payments with graded vesting are recognized on a straight-line basis. The cost of the stock-based payments to non-employees that are fully vested and non-forfeitable at the grant date is measured and recognized at that date, unless there is a contractual term for services in which case such compensation would be amortized over the contractual term. The Company accounts for the granting of share purchase options to employees using the fair value method whereby all awards to employees will be recorded at fair value on the date of the grant. The fair value of all share purchase options are expensed over their vesting period with a corresponding increase to additional paid-in capital. The Company uses the Black-Scholes option valuation model to calculate the fair value of share purchase options at the date of the grant. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimates. |
Fair Value Measurements | k) Fair Value Measurements The fair value hierarchy under GAAP is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 -quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and Level 3 - assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. The book value of accounts payable and accrued liabilities approximate their fair values due to the short term maturity of those instruments. Based on borrowing rates currently available to the Company under similar terms, the book value of promissory notes payable approximates their fair values. The Company’s promissory notes payable are based on Level 2 inputs in the ASC 820 fair value hierarchy. At September 30, 2016 and 2015, the Company did not have any Level 3 assets or liabilities. Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). There were no assets or liabilities measured at fair value on a nonrecurring basis during the periods ended September 30, 2016 and 2015. |
Derivative Liabilities | l) Derivative Liabilities The Company evaluates its financial instruments and other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with ASC 815. The result of this accounting treatment is that the fair value of the embedded derivative is marked- to-market at each balance sheet date and recorded as a liability and the change in fair value is recorded in the consolidated statements of operations as other income or expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Derivative instruments that become subject to reclassification are reclassified at the fair value of the instrument on the reclassification date. Derivative instrument liabilities will be classified in the balance sheet as current or non-current based on whether or not settlement of the derivative instrument is expected within 12 months of the balance sheet date. From time to time, certain of the Company’s embedded conversion features on debt and outstanding warrants have been treated as derivative liabilities for accounting purposes under ASC 815 due to insufficient authorized shares to fully settle conversion features of the instruments if exercised. In this case, the Company utilized the latest inception date sequencing method to reclassify outstanding instruments as derivative instruments. These contracts were recognized at fair value with changes in fair value recognized in earnings until such time as the conditions giving rise to such derivative liability classification were settled. These derivative instruments did not trade in an active securities market. The Company used a binomial option pricing model to value derivative liabilities. This model used Level 3 inputs in the fair value hierarchy established by ASC 820 Fair Value Measurement. |
Recent Accounting Pronouncements | m) Recent Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted In June 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period ("ASU 2014-12"). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. This standard is effective for the Company beginning on October 1, 2016. The adoption of this standard is not expected to have a material impact for any period presented. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 will explicitly require management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016. The Company is currently evaluating the impact this guidance will have on its financial condition, results of operations and cash flows. In May 2014, the FASB and the International Accounting Standards Board (IASB) issued a converged standard on revenue recognition from contracts with customers, ASU 2014-09 (Topic 606 and IFRS 15). This standard will supersede nearly all existing revenue recognition guidance. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact for any period presented. In April 2015, the FASB, issued the Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs In November 2015, FASB issued Accounting Standards Update No. 2015-17 Income Taxes: Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases In March 2016, the FASB issued ASC 2016-09, “ Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting Other than noted above, the Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow. |
Promissory Notes Payable (Table
Promissory Notes Payable (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of promissory notes payable | 2016 2015 Promissory note dated January 9, 2013 with a principal balance of CDN$86,677, bearing interest at 12% per annum, secured by all the present and future assets of the Company; due on demand (a) $ - $ 64,630 Promissory note dated January 9, 2013 with a principal balance of CDN$27,639, bearing interest at 12% per annum, secured by all the present and future assets of the Company; due on demand (b) - 20,608 $ - $ 85,238 a) During the year ended September 30, 2013, the Company issued a promissory note in the amount of $64,630 (CDN$86,677) to the former President, Secretary, Treasurer, CFO and director of the Company (the “President”) in exchange for unpaid consulting fees owing to the President. The note was bearing interest at 12% per annum and was due June 30, 2013. b) During the year ended September 30, 2013, the Company issued a promissory note in the amount of $20,608 (CDN$27,639) to a former director of the Company (the “Director”) in exchange for unpaid consulting fees owing to the Director. The note was bearing interest at 12% per annum and was due June 30, 2013. |
Senior Convertible Debentures (
Senior Convertible Debentures (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of senior convertible debentures | 2016 2015 Senior Convertible Debentures, non-interest bearing, unsecured, due March 18, 2044 $ - $ 6,162 Less: Debt Discount - (5,830 ) Total carrying value - 332 Less: current portion - - Long term liability $ - $ 332 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of lease payments | The Company is committed to lease payments as follows: Fiscal year ending September 30, Amount 2017 $ 112,189 2018 112,189 2019 56,094 $ 280,472 |
Schedule of purchase warrants outstanding | A summary of the Company’s share purchase warrants outstanding is presented below: Number of Shares Weighted Balance, October 1, 2014 18,728,910 $ 1.59 Expired (62,500 ) $ 1.40 Exercised (15,468,520 ) $ 1.43 Issued 1,075,000 $ 0.76 Balance, September 30, 2015 4,272,890 $ 2.11 Exercised (2,463,581 ) $ 1.67 Balance, September 30, 2016 1,809,309 $ 2.70 |
Schedule of exercisable share purchase warrants outstanding | At September 30, 2016, the Company had 1,809,309 currently exercisable share purchase warrants outstanding as follows: Number Exercise Price Expiry Date 1,462,180 $ 3.00 July 5, 2018 30,000 $ 4.00 February 24, 2019 277,127 $ 1.20 March 13, 2019 1,252 $ 1.68 March 13, 2019 31,250 $ 1.24 May 31, 2019 7,500 $ 1.04 May 31, 2019 1,809,309 |
Schedule of outstanding stock purchase options | A summary of the status of Company’s outstanding stock purchase options for the years ended September 30, 2016 and 2015 is presented below: Number of Weighted Weighted Outstanding at October 1, 2014 792,500 $ 2.82 Forfeited (67,500 ) $ 12.00 Granted 1,097,500 $ 2.02 $ 1.66 Outstanding at September 30, 2015 1,822,500 $ 2.00 Forfeited - $ - Granted 2,401,500 $ 5.22 $ 4.38 Expired (25,000 ) $ 14.68 Outstanding at September 30, 2016 4,199,000 $ 3.76 Exercisable at September 30, 2016 2,290,716 $ 2.41 Exercisable at September 30, 2015 825,002 $ 1.78 |
Schedule of stock options outstanding | At September 30, 2016, the following stock options were outstanding: Number of Shares Aggregate Remaining Number Exercise Intrinsic Contractual Total Vested Price Expiry Date Value Life (yrs) 500,000 500,000 $ 1.60 July 5, 2023 1,015,000 6.76 75,000 50,000 $ 1.20 May 7, 2024 182,250 7.60 125,000 62,500 $ 1.32 May 8, 2024 288,750 7.60 718,750 479,170 $ 0.92 April 2, 2025 1,947,813 8.50 50,000 20,834 $ 1.44 June 8, 2025 109,500 8.69 50,000 16,667 $ 1.76 June 15, 2025 93,500 8.71 278,750 116,146 $ 5.04 September 18, 2025 - 8.97 1,500 1,500 $ 5.64 September 30, 2025 - 9.00 31,250 10,416 $ 5.68 October 2, 2025 - 9.00 25,000 8,333 $ 8.98 October 16, 2025 - 9.04 1,500 1,500 $ 5.57 December 31, 2025 - 9.25 1,500 - $ 4.90 March 31, 2026 - 9.50 1,500 1,500 $ 5.66 April 27, 2026 - 9.57 50,000 12,121 $ 4.09 May 18, 2026 - 9.63 1,500 - $ 6.11 June 30, 2026 - 9.75 379,625 - $ 6.26 July 5, 2026 - 9.76 861,429 - $ 7.06 July 18, 2026 - 9.80 40,000 3,333 $ 3.06 September 7, 2026 22,800 9.94 1,006,696 1,006,696 $ 3.28 September 22, 2026 352,344 9.98 4,199,000 2,290,716 $ 4,011,956 |
Schedule of general and administrative expenses and research and development expenses | These amounts have been included in general and administrative expenses and research and development expenses on the Company’s statement of operations as follows: 2016 2015 2014 General and administrative $ 2,903,220 $ 413,979 $ 27,925 Research and development 1,549,047 - - $ 4,452,267 $ 413,979 $ 27,925 |
Schedule of weighted average assumptions for fair value of each option award | The fair value of each option award is estimated on the date of grant using the Black Scholes option pricing model based on the following weighted average assumptions: 2016 2015 2014 Risk-free interest rate 1.28 % 1.63 % 2.27 % Expected life of options (years) 5.88 6.30 6.81 Annualized volatility 114.75 % 98.41 89.19 Dividend rate 0.00 % 0.00 % 0.00 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax assets and liabilities | The tax effects of the temporary differences that give rise to the Company’s estimated deferred tax assets and liabilities are as follows: 2016 2015 Assumed Tax rate 34% 34% Net operating loss carryforwards $ 11,223,000 $ 9,177,000 Research and development tax credits 1,036,000 794,000 Foreign exchange (25,000 ) (10,000 ) Unpaid charges 152,000 832,000 Intangible asset costs 57,000 64,000 Stock-based compensation 2,004,000 581,000 Valuation allowance for deferred tax assets (14,447,000 ) (11,438,000 ) Net deferred tax assets $ - $ - |
Schedule of statutory income tax | The provision for income taxes differ from the amount established using the statutory income tax rate as follows: 2016 2015 2014 Income benefit at statutory rate of 34% $ (5,010,000 ) $ (4,117,000 ) $ (3,865,000 ) Foreign income taxed at other rates 132,000 80,000 13,000 Permanent differences Effect of stock based compensation - - 202,000 Debt extinguishment - (29,000 ) 2,736,000 Mark-to-market deriative liability adjustment - 193,000 (994,000 ) Non-deductible finance and accretion expenses 5,000 1,511,000 808,000 Non-deductible compensation costs 738,000 Other permanent differences - (5,000 ) (16,000 ) Research and development tax credit 628,000 502,000 (26,000 ) Expiry of foreign net operating loss carryforwards 333,000 - - Adjustment and true up to prior years' tax provision 176,000 100,000 14,000 Effect of foreign exchange and other (11,000 ) - - Change in valuation allowance related to current year provision 3,009,000 1,765,000 2,528,000 Income Tax Recovery $ - $ - $ 1,400,000 |
Business Description and Basi25
Business Description and Basis of Presentation (Details Narrative) - $ / shares | Oct. 07, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Reverse stock split | 1:4 | ||
Common stock, shares authorized | 400,000,000 | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended | |
Sep. 30, 2016shares | Sep. 30, 2015shares | |
Accounting Policies [Abstract] | ||
Depreciation rate | 0.33 | |
Potentially dilutive common shares related to outstanding options, warrants, and convertible debentures | 6,008,309 | 6,101,534 |
Promissory Notes Payable (Detai
Promissory Notes Payable (Details) | 12 Months Ended | |||||
Sep. 30, 2016USD ($) | Sep. 30, 2016CAD | Sep. 30, 2015USD ($) | Sep. 30, 2013USD ($) | Sep. 30, 2013CAD | ||
Total promissory notes payable | $ 85,238 | |||||
Principal balance | 6,162 | |||||
12% Promissory Note [Member] | ||||||
Total promissory notes payable | [1] | 64,630 | ||||
Debt instrument, issuance date | Jan. 9, 2013 | |||||
Principal balance | $ 64,630 | |||||
Description of collateral | Secured by all the present and future assets of the Company; due on demand. | |||||
12% Promissory Note [Member] | Canada, Dollars [Member] | ||||||
Principal balance | CAD | CAD 86,677 | CAD 86,677 | ||||
12% Promissory Note [Member] | ||||||
Total promissory notes payable | [2] | $ 20,608 | ||||
Debt instrument, issuance date | Jan. 9, 2013 | |||||
Principal balance | $ 95,964 | $ 20,608 | ||||
Description of collateral | Secured by all the present and future assets of the Company; due on demand. | |||||
12% Promissory Note [Member] | Canada, Dollars [Member] | ||||||
Principal balance | CAD | CAD 124,237 | CAD 27,639 | ||||
[1] | During the year ended September 30, 2013, the Company issued a promissory note in the amount of $64,630 (CDN$86,677) to the former President, Secretary, Treasurer, CFO and director of the Company (the "President") in exchange for unpaid consulting fees owing to the President. The note was bearing interest at 12% per annum and was due June 30, 2013. | |||||
[2] | During the year ended September 30, 2013, the Company issued a promissory note in the amount of $20,608 (CDN$27,639) to a former director of the Company (the "Director") in exchange for unpaid consulting fees owing to the Director. The note was bearing interest at 12% per annum and was due June 30, 2013. |
Promissory Notes Payable (Det28
Promissory Notes Payable (Details Narrative) | 12 Months Ended | ||||||
Sep. 30, 2016USD ($) | Sep. 30, 2016CAD | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | Sep. 30, 2016CAD | Sep. 30, 2013CAD | |
Principal balance | $ 6,162 | ||||||
Gain on settlement of debt | 61,205 | $ 84,842 | $ (8,539,759) | ||||
12% Promissory Note [Member] | |||||||
Principal balance | $ 64,630 | ||||||
Previously maturity date | Jun. 30, 2013 | ||||||
12% Promissory Note [Member] | Canada, Dollars [Member] | |||||||
Principal balance | CAD | CAD 86,677 | CAD 86,677 | |||||
12% Promissory Note [Member] | |||||||
Principal balance | 95,964 | $ 20,608 | |||||
Maturity date | Jun. 30, 2013 | ||||||
Gain on settlement of debt | 61,205 | ||||||
12% Promissory Note [Member] | Directors and Officers [Member] | |||||||
Cash payments of promissory note | $ 34,759 | ||||||
12% Promissory Note [Member] | Canada, Dollars [Member] | |||||||
Principal balance | CAD | CAD 124,237 | CAD 27,639 | |||||
Gain on settlement of debt | CAD | CAD 79,237 | ||||||
12% Promissory Note [Member] | Canada, Dollars [Member] | Directors and Officers [Member] | |||||||
Cash payments of promissory note | CAD | CAD 45,000 |
Deferred Grant Income (Details
Deferred Grant Income (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Awarded grant funding amount | $ 286,455 | ||
Deferred grant income | $ 70,532 | 71,614 | |
Grant income | 712,288 | ||
Research & Development Incentive Program (Australian Government) [Member] | |||
Grant income | $ 571,093 |
Senior Convertible Debentures
Senior Convertible Debentures (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Debt Disclosure [Abstract] | ||
Senior Convertible Debentures, non-interest bearing, unsecured, due March 18, 2044 | $ 6,162 | |
Less: Debt Discount | (5,830) | |
Total carrying value | 332 | |
Less: current portion | ||
Long term liability | $ 332 |
Senior Convertible Debentures31
Senior Convertible Debentures (Details Narrative) - USD ($) | Mar. 13, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Aggregate principal amount | $ 6,162 | |||
Amended conversion price (in dollars per share) | $ 1 | |||
Outstanding debentures | $ 332 | |||
Amount of shares issued | $ 167,415 | |||
Conversion price (in dollars per share) | $ 1 | $ 1 | $ 1.20 | |
Securities Purchase Agreement [Member] | Senior Convertible Debentures Due March 18, 2044 [Member] | ||||
Aggregate principal amount | $ 10,000,000 | |||
Description of conversion terms | Convertible, in whole or in part, at the option of the holder into common shares of the Company. | |||
Amended conversion price (in dollars per share) | $ 1 | |||
Outstanding debentures | $ 6,162 | |||
Amount of shares issued | $ 6,162 | |||
Conversion price (in dollars per share) | $ 1.20 | $ 1 | ||
Number of shares issued | 6,162 | |||
Amortization discount | $ 5,830 | $ 4,515,987 | $ 1,917,615 |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) - USD ($) | Oct. 22, 2015 | Oct. 07, 2015 | Mar. 16, 2015 | Feb. 28, 2014 | Feb. 24, 2014 | Sep. 30, 2016 | Sep. 30, 2015 |
Common Stock, authorized | 400,000,000 | 100,000,000 | 100,000,000 | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Reverse stock split | 1:4 | ||||||
Number of shares for incorrect conversion price | 167,415 | ||||||
Stock price (in dollars per share) | $ 1 | ||||||
Risk-free interest rate | 1.28% | ||||||
Expected life of options | 5 years 10 months 17 days | ||||||
Dividend rate | 0.00% | ||||||
Principal balance | $ 6,162 | ||||||
Number of shares issued pursuant to favored nations provision | 658,612 | ||||||
First Share Unit [Member] | |||||||
Number of shares issued | 30,000 | ||||||
Number of shares issued, gross value | $ 60,000 | ||||||
Description of components unit | Each unit consisted of one common share and one common share purchase warrant. | ||||||
Stock unit price (in dollars per unit) | $ 2 | ||||||
Additional common shares stock price (in dollars per share) | $ 4 | ||||||
Share unit term | 5 years | ||||||
Second Share Unit [Member] | |||||||
Number of shares issued | 125,000 | ||||||
Number of shares issued, gross value | $ 150,000 | ||||||
Description of components unit | Each unit consisted of one common share and one common share purchase warrant. | ||||||
Stock unit price (in dollars per unit) | $ 1.20 | ||||||
Additional common shares stock price (in dollars per share) | $ 3 | ||||||
Share unit term | 5 years | ||||||
Third Share Unit [Member] | |||||||
Number of shares issued | 25,000 | ||||||
Number of shares issued, gross value | $ 30,000 | ||||||
Description of components unit | Each unit consisted of one common share and one common share purchase warrant. | ||||||
Stock unit price (in dollars per unit) | $ 1.20 | ||||||
Additional common shares stock price (in dollars per share) | $ 3 | ||||||
Share unit term | 5 years | ||||||
Directors and Officers [Member] | |||||||
Number of shares for common stock to be issued | 1,000,000 | ||||||
Securities Purchase Agreement [Member] | Investor [Member] | |||||||
Number of shares issued | 500,000 | ||||||
Stock price (in dollars per share) | $ 1 | $ 1 | |||||
Principal balance | $ 50,000 | ||||||
Number of shares issued pursuant to favored nations provision | 658,612 | ||||||
Securities Purchase Agreement [Member] | Investor [Member] | Warrant [Member] | |||||||
Number of warrant exercisable | 527,000 | ||||||
Fair value | $ 2,000 | ||||||
Fair value allocated to equity transaction | $ 29,000 | ||||||
Securities Purchase Agreement [Member] | Investor [Member] | Series A Warrant [Member] | |||||||
Exercise price (in dollars per share) | $ 1.20 | ||||||
Number of warrant exercisable | 500,000 | ||||||
Securities Purchase Agreement [Member] | Investor [Member] | Series B Warrant [Member] | |||||||
Exercise price (in dollars per share) | $ 1.68 | ||||||
Number of warrant exercisable | 500,000 | ||||||
10/14 Purchase Agreement [Member] | Investor [Member] | Warrant [Member] | |||||||
Number of shares issued | 1,000,000 | ||||||
Warrant term | 5 years | ||||||
Risk-free interest rate | 1.46% | ||||||
Expected life of options | 5 years | ||||||
Annualized volatility | 100.21% | ||||||
Dividend rate | 0.00% |
Lincoln Park Purchase Agreeme33
Lincoln Park Purchase Agreement (Details Narrative) - Lincoln Park Capital Fund, LLC [Member] - USD ($) | Oct. 21, 2015 | Jul. 05, 2013 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
2015 Purchase Agreement [Member] | |||||
Total number of shares obligated to purchase | 50,000,000 | ||||
Agreement term | 36 months | ||||
Description of purchases price | The Company may direct Lincoln Park, at its sole discretion, and subject to certain conditions set forth in the 2015 Purchase Agreement, to purchase up to 50,000 shares of common stock on any business day, provided that at least one business day has passed since the most recent purchase. The amount of a purchase may be increased under certain circumstances provided, however that Lincoln Park’s committed obligation under any single purchase shall not exceed $2,000,000. The purchase price of shares of common stock related to the future funding will be based on the then prevailing market prices of such shares at the time of sales as described in the 2015 Purchase Agreement. | ||||
Number of shares issued | 179,598 | 452,437 | |||
Pro rata basic number of shares obligated to purchase | 89,799 | ||||
Number of shares issued for aggregate purchase price | 450,000 | ||||
Number of shares issued for aggregate purchase price, value | $ 1,357,800 | ||||
Number of shares issued for commitment | 2,437 | ||||
2013 Purchase Agreement [Member] | |||||
Total number of shares obligated to purchase | 10,000,000 | ||||
Agreement term | 25 months | ||||
Number of shares issued | 296,104 | 1,852,144 | 100,628 | ||
Number of shares issued for aggregate purchase price | 290,523 | 1,825,000 | 100,000 | ||
Number of shares issued for aggregate purchase price, value | $ 1,684,560 | $ 8,127,265 | $ 188,170 | ||
Number of shares issued for commitment | 5,581 | 27,144 | 628 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Directors and Officers [Member] | ||
Accounts payable and accrued liabilities | $ 59,264 | $ 33,000 |
Commitments and Contingencies35
Commitments and Contingencies (Details) | Sep. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 112,189 |
2,018 | 112,189 |
2,019 | 56,094 |
Operating leases, future minimum payments receivable | $ 280,472 |
Commitments and Contingencies36
Commitments and Contingencies (Details 1) - Purchase Warrants [Member] - $ / shares | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Balance, at beginning | 4,272,890 | 18,728,910 |
Expired | (62,500) | |
Exercised | (2,463,581) | (15,468,520) |
Issued | 1,075,000 | |
Balance, at end | 1,809,309 | 4,272,890 |
Share based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Weighted Average Exercise Price [Rollforward] | ||
Balance, at beginning | $ 2.11 | $ 1.59 |
Expired | 1.40 | |
Exercised | 1.67 | 1.43 |
Issued | 0.76 | |
Balance, at end | $ 2.7 | $ 2.11 |
Commitments and Contingencies37
Commitments and Contingencies (Details 2) | 12 Months Ended |
Sep. 30, 2016$ / sharesshares | |
First Purchase Warrants [Member] | |
Number | 1,462,180 |
Exercise Price | $ / shares | $ 3 |
Expiry Date | Jul. 5, 2018 |
Second Purchase Warrants [Member] | |
Number | 30,000 |
Exercise Price | $ / shares | $ 4 |
Expiry Date | Feb. 24, 2019 |
Third Purchase Warrants [Member] | |
Number | 277,127 |
Exercise Price | $ / shares | $ 1.20 |
Expiry Date | Mar. 13, 2019 |
Four Purchase Warrants [Member] | |
Number | 1,252 |
Exercise Price | $ / shares | $ 1.68 |
Expiry Date | Mar. 13, 2019 |
Five Purchase Warrants [Member] | |
Number | 31,250 |
Exercise Price | $ / shares | $ 1.24 |
Expiry Date | May 31, 2019 |
Six Purchase Warrants [Member] | |
Number | 7,500 |
Exercise Price | $ / shares | $ 1 |
Expiry Date | May 31, 2019 |
Purchase Warrants [Member] | |
Number | 1,809,309 |
Commitments and Contingencies38
Commitments and Contingencies (Details 3) - 2015 Omnibus Incentive Plan [Member] - $ / shares | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at beginning | 1,822,500 | 792,500 |
Forfeited | (67,500) | |
Granted | 2,401,500 | 1,097,500 |
Expired | (25,000) | |
Outstanding at ending | 4,199,000 | 1,822,500 |
Exercisable at ending | 2,290,716 | 825,002 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning | $ 2 | $ 2.82 |
Forfeited | 12 | |
Granted | 5.22 | 2.02 |
Expired | 14.68 | |
Outstanding at ending | 3.76 | 2 |
Exercisable at ending | 2.41 | 1.78 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Roll Forward] | ||
Granted | $ 4.38 | $ 1.66 |
Commitments and Contingencies39
Commitments and Contingencies (Details 4) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
First Stock Option [Member] | |||
Total Number of Shares | 500,000 | ||
Number of Vested Shares | 500,000 | ||
Exercise Price | $ 1.6 | ||
Expiry Date | Jul. 5, 2023 | ||
Aggregate Intrinsic Value | $ 1,015,000 | ||
Remaining Contractual Life (in years) | 6 years 9 months 4 days | ||
Second Stock Option [Member] | |||
Total Number of Shares | 75,000 | ||
Number of Vested Shares | 50,000 | ||
Exercise Price | $ 1.2 | ||
Expiry Date | May 7, 2024 | ||
Aggregate Intrinsic Value | $ 182,250 | ||
Remaining Contractual Life (in years) | 7 years 7 months 6 days | ||
Third Stock Option [Member] | |||
Total Number of Shares | 125,000 | ||
Number of Vested Shares | 62,250 | ||
Exercise Price | $ 1.32 | ||
Expiry Date | May 8, 2024 | ||
Aggregate Intrinsic Value | $ 288,750 | ||
Remaining Contractual Life (in years) | 7 years 7 months 6 days | ||
Four Stock Option [Member] | |||
Total Number of Shares | 718,750 | ||
Number of Vested Shares | 479,170 | ||
Exercise Price | $ 0.92 | ||
Expiry Date | Apr. 2, 2025 | ||
Aggregate Intrinsic Value | $ 1,947,813 | ||
Remaining Contractual Life (in years) | 8 years 6 months | ||
Five Stock Option [Member] | |||
Total Number of Shares | 50,000 | ||
Number of Vested Shares | 20,834 | ||
Exercise Price | $ 1.44 | ||
Expiry Date | Jun. 8, 2025 | ||
Aggregate Intrinsic Value | $ 109,500 | ||
Remaining Contractual Life (in years) | 8 years 8 months 9 days | ||
Six Stock Option [Member] | |||
Total Number of Shares | 50,000 | ||
Number of Vested Shares | 16,667 | ||
Exercise Price | $ 1.76 | ||
Expiry Date | Jun. 15, 2025 | ||
Aggregate Intrinsic Value | $ 93,500 | ||
Remaining Contractual Life (in years) | 8 years 8 months 16 days | ||
Seven Stock Option [Member] | |||
Total Number of Shares | 278,750 | ||
Number of Vested Shares | 116,146 | ||
Exercise Price | $ 5.04 | ||
Expiry Date | Sep. 18, 2025 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 8 years 11 months 20 days | ||
Eight Stock Option [Member] | |||
Total Number of Shares | 1,500 | ||
Number of Vested Shares | 1,500 | ||
Exercise Price | $ 5.64 | ||
Expiry Date | Sep. 30, 2025 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 9 years | ||
Nine Stock Option [Member] | |||
Total Number of Shares | 31,250 | ||
Number of Vested Shares | 10,416 | ||
Exercise Price | $ 5.68 | ||
Expiry Date | Oct. 2, 2025 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 9 years | ||
Ten Stock Option [Member] | |||
Total Number of Shares | 25,000 | ||
Number of Vested Shares | 8,333 | ||
Exercise Price | $ 8.98 | ||
Expiry Date | Oct. 16, 2025 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 9 years 15 days | ||
Eleven Stock Option [Member] | |||
Total Number of Shares | 1,500 | ||
Number of Vested Shares | 1,500 | ||
Exercise Price | $ 5.57 | ||
Expiry Date | Dec. 31, 2025 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 9 years 3 months | ||
Twelave Stock Option [Member] | |||
Total Number of Shares | 1,500 | ||
Number of Vested Shares | |||
Exercise Price | $ 4.9 | ||
Expiry Date | Mar. 31, 2026 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 9 years 6 months | ||
Thirteen Stock Option [Member] | |||
Total Number of Shares | 1,500 | ||
Number of Vested Shares | 1,500 | ||
Exercise Price | $ 5.66 | ||
Expiry Date | Apr. 27, 2026 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 9 years 6 months 26 days | ||
Fourteen Stock Option [Member] | |||
Total Number of Shares | 50,000 | ||
Number of Vested Shares | 12,121 | ||
Exercise Price | $ 4.09 | ||
Expiry Date | May 18, 2026 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 9 years 7 months 17 days | ||
Fifteen Stock Option [Member] | |||
Total Number of Shares | 1,500 | ||
Number of Vested Shares | |||
Exercise Price | $ 6.11 | ||
Expiry Date | Jun. 30, 2026 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 9 years 9 months | ||
Sixteen Stock Option [Member] | |||
Total Number of Shares | 379,625 | ||
Number of Vested Shares | |||
Exercise Price | $ 6.26 | ||
Expiry Date | Jul. 5, 2026 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 9 years 9 months 4 days | ||
Seventeen Stock Option [Member] | |||
Total Number of Shares | 861,429 | ||
Number of Vested Shares | |||
Exercise Price | $ 7.06 | ||
Expiry Date | Jul. 18, 2026 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 9 years 9 months 18 days | ||
Eighteen Stock Option [Member] | |||
Total Number of Shares | 40,000 | ||
Number of Vested Shares | 3,333 | ||
Exercise Price | $ 3.06 | ||
Expiry Date | Sep. 7, 2026 | ||
Aggregate Intrinsic Value | $ 22,800 | ||
Remaining Contractual Life (in years) | 9 years 11 months 9 days | ||
Nineteen Stock Option [Member] | |||
Total Number of Shares | 1,006,696 | ||
Number of Vested Shares | 1,006,696 | ||
Exercise Price | $ 3.28 | ||
Expiry Date | Sep. 22, 2026 | ||
Aggregate Intrinsic Value | $ 352,344 | ||
Remaining Contractual Life (in years) | 9 years 11 months 23 days | ||
2015 Omnibus Incentive Plan [Member] | |||
Total Number of Shares | 4,199,000 | 1,822,500 | 792,500 |
Number of Vested Shares | 2,290,716 | ||
Exercise Price | $ 3.76 | $ 2 | $ 2.82 |
Aggregate Intrinsic Value | $ 4,011,956 |
Commitments and Contingencies40
Commitments and Contingencies (Details 5) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allocated Share-based Compensation Expense | $ 4,452,267 | $ 413,979 | $ 27,925 |
General and Administrative Expense [Member] | |||
Allocated Share-based Compensation Expense | 2,903,220 | $ 413,979 | $ 27,925 |
Research and Development Expense [Member] | |||
Allocated Share-based Compensation Expense | $ 1,549,047 |
Commitments and Contingencies41
Commitments and Contingencies (Details 6) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Risk-free interest rate | 1.28% | 1.63% | 2.27% |
Expected life of options (years) | 5 years 10 months 17 days | 6 years 3 months 18 days | 6 years 9 months 22 days |
Annualized volatility | 114.75% | 98.41% | 89.19% |
Dividend yields | 0.00% | 0.00% | 0.00% |
Commitments and Contingencies42
Commitments and Contingencies (Details Narrative) | 12 Months Ended |
Sep. 30, 2016USD ($)shares | |
Remaining stock based compensation | $ | $ 7,741,573 |
2015 Omnibus Incentive Plan [Member] | |
Maximum number of common shares reserved for future issuance | 6,050,553 |
Purchase Warrants [Member] | |
Number of common shares called | 1,979,246 |
Number of warrant exercised | 2,421,894 |
Number of warrant exercised cashless basis | 41,687 |
Number of warrant exercisable | 1,809,309 |
Expiration date | Jul. 5, 2018 |
Description of cancellation policy | The Company may have the option to call for cancellation of all or any portion of the warrants for consideration equal to $0.001 per share, provided the quoted market price of the Companys common stock exceeds $6.00 for a period of twenty consecutive trading days, subject to certain minimum volume restrictions and other restrictions as provided in the warrant agreements. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Assumed Tax rate | 34.00% | 34.00% |
Net operating loss carryforwards | $ 11,223,000 | $ 9,177,000 |
Research and development tax credits | 1,036,000 | 794,000 |
Foreign exchange | (25,000) | (10,000) |
Unpaid charges | 152,000 | 832,000 |
Intangible asset costs | 57,000 | 64,000 |
Stock-based compensation | 2,004,000 | 581,000 |
Valuation allowance for deferred tax assets | (14,447,000) | (11,438,000) |
Net deferred tax assets |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income benefit at statutory rate of 34% | $ (5,010,000) | $ (4,117,000) | $ (3,865,000) |
Foreign income taxed at other rates | 132,000 | 80,000 | 13,000 |
Permanent differences | |||
Effect of stock based compensation | 202,000 | ||
Debt extinguishment | (29,000) | 2,736,000 | |
Mark-to-market deriative liability adjustment | 193,000 | (994,000) | |
Non-deductible finance and accretion expenses | 5,000 | 1,511,000 | 808,000 |
Non-deductible compensation costs | 738,000 | ||
Other permanent differences | (5,000) | (16,000) | |
Research and development tax credit | 628,000 | 502,000 | (26,000) |
Expiry of foreign net operating loss carryforwards | 333,000 | ||
Adjustment and true up to prior years' tax provision | 176,000 | 100,000 | 14,000 |
Effect of foreign exchange and other | (11,000) | ||
Change in valuation allowance related to current year provision | 3,009,000 | 1,765,000 | 2,528,000 |
Income Tax Recovery | $ (1,400,000) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating loss carry-forwards, expiration year | 2,027 | |
United States [Member] | ||
Operating loss carry-forwards | $ 33,000,000 | $ 25,000,000 |
Australia [Member] | ||
Operating loss carry-forwards | $ 250,000 |
Supplemental Cash Flow Inform46
Supplemental Cash Flow Information (Details Narrative) | 12 Months Ended | |||
Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015USD ($)Number$ / sharesshares | Sep. 30, 2014USD ($)Number$ / sharesshares | Mar. 13, 2014$ / shares | |
Capital stock issued pursuant to debt conversions (in shares) | Number | 7,272,487 | 1,594,607 | ||
Additional number of equity instrument issued upon conversion | shares | 167,415 | |||
Debt beneficial conversion feature | $ 7,439,900 | $ 1,913,528 | ||
Conversion price (in dollars per share) | $ / shares | $ 1 | $ 1 | $ 1.20 | |
Reclassification of derivative liability | $ 4,482,000 | |||
Reclassification of equity upon modification of certain derivative instruments | $ 221,000 | |||
Capital stock issued pursuant to debt conversions (in shares) | shares | 640,428 | |||
Debt beneficial conversion feature | $ 6,162 | $ 6,762,537 | $ 551,120 | |
Conversion price (in dollars per share) | $ / shares | $ 1 | |||
Amount of shares issued | $ 167,415 | |||
Shares issued pursuant to favored nations provision (in shares) | shares | 658,612 | |||
Stock price (in dollars per share) | $ / shares | $ 1 | |||
Securities Purchase Agreement [Member] | Senior Convertible Debentures Due March 18, 2044 [Member] | ||||
Conversion price (in dollars per share) | $ / shares | $ 1 | $ 1.20 | ||
Conversion price (in dollars per share) | $ / shares | $ 1 | |||
Amount of shares issued | $ 6,162 | |||
Number of shares issued | shares | 6,162 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] | 12 Months Ended |
Sep. 30, 2016USD ($)shares | |
Proceeds from issuance of common stock | $ | $ 11,039,022 |
Number of common shares issued | shares | 3,442,668 |