Regenicin (RGIN) 10-Q 23 May 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2016	May. 23, 2016
Document And Entity Information
Entity Registrant Name	Regenicin, Inc.
Entity Central Index Key	1,412,659
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		153,483,050
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET - USD ($)	Mar. 31, 2016	Sep. 30, 2015
CURRENT ASSETS
Cash	$ 586,060	$ 1,061,377
Prepaid expenses and other current assets	121,729	119,236
Common stock of Amarantus Corporation	13,650	300,000
Total current and total assets	721,439	1,480,613
CURRENT LIABILITIES
Accounts payable	378,720	360,228
Accrued expenses	1,400,028	1,286,386
Dividends payable	357,539	322,042
Bridge financing	175,000	175,000
Loan payable	10,000	10,000
Loans payable - related parties	79,849	95,000
Total current and total liabilities	2,401,136	2,248,656
STOCKHOLDERS DEFICIENCY
Series A 10% Convertible Preferred stock, $0.001 par value, 5,500,000 shares authorized; 885,000 issued and outstanding	885	885
Common stock, $0.001 par value; 200,000,000 shares authorized; 157,911,410 issued and 153,483,050 outstanding	157,914	157,914
Additional paid-in capital	9,819,976	9,787,578
Accumulated deficit	(11,367,694)	$ (10,709,992)
Accumulated other comprehensive loss	(286,350)
Less: treasury stock; 4,428,360 shares at par	(4,428)	$ (4,428)
Total stockholders deficiency	(1,679,697)	(768,043)
Total liabilities and stockholders deficiency	$ 721,439	$ 1,480,613

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares	Mar. 31, 2016	Sep. 30, 2015
Statement of Financial Position [Abstract]
Series A Preferred Stock, Par Value	$ 0.001	$ 0.001
Series A Preferred Stock, Shares Authorized	5,500,000	5,500,000
Series A Preferred Stock, Issued and outstanding	885,000	885,000
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Issued	157,911,410	157,911,410
Common Stock, Outstanding	153,483,050	153,483,050
Treasury Stock, Issued	4,428,360	4,428,360

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenues
Operating expenses
Research and development	$ 707	$ 33,400	$ 1,445	$ 33,400
General and administrative	$ 288,457	266,531	579,588	406,817
Stock based compensation - general and administrative		$ 32,365	$ 67,895	32,365
Reversal of accounts payable - Lonza				(973,374)
Total operating expenses	$ 289,164	$ 332,296	$ 648,928	(500,792)
Income (loss) from operations	(289,164)	(332,296)	(648,928)	500,792
Other income (expenses)
Interest expense, including amortization of debt discounts	$ (4,363)	(9,057)	$ (8,774)	(40,001)
Gain on sale of assets		$ 2,500,000		6,604,431
Loss on derivative liabilities				(528,230)
Total other income (expenses)	$ (4,363)	$ 2,490,943	$ (8,774)	6,036,200
Income (loss) before income tax	$ (293,527)	2,158,647	$ (657,702)	6,536,992
Income tax expense		863,300		2,829,000
Net income (loss)	$ (293,527)	1,295,347	$ (657,702)	3,707,992
Preferred stock dividends	(17,652)	(17,458)	(35,497)	(35,303)
Net income (loss) attributable to common stockholders	$ (311,179)	$ 1,277,889	$ (693,199)	$ 3,672,689
Income (loss) per share Basic	$ 0	$ 0.01	$ 0	$ 0.02
Income (loss) per share Diluted	$ 0	$ 0.01	$ 0	$ 0.02
Weighted average number of shares outstanding Basic	153,483,050	153,457,176	153,483,050	153,041,442
Weighted average number of shares outstanding Diluted	153,483,050	162,307,176	153,483,050	161,891,442

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Consolidated Statements Of Comprehensive Income Loss
Net income (loss)	$ (293,527)	$ 1,295,347	$ (657,702)	$ 3,707,992
Other Comprehensive loss
Changes in unrealized loss on available for sale securities, net of income taxes	(145,100)	(966,000)	(286,350)	(1,500,000)
Comprehensive income (loss)	$ (438,627)	$ 329,347	$ (944,052)	$ 2,207,992

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ (657,702)	$ 3,707,992
Adjustments to reconcile net income to net cash used in operating activities:
Deferred income taxes		2,829,000
Amortization of debt discounts		7,675
Stock based compensation - G&A	$ 67,895	32,365
Loss on derivative liabilities		528,230
Gain on sale of assets		(6,604,431)
Reversal of accounts payable		(973,374)
Changes in operating assets and liabilities
Prepaid expenses and other current assets	$ (2,493)	(52,494)
Accounts payable	18,492	(372,365)
Accrued expenses and accrued interest	113,642	(259,272)
Net cash used in operating activities	$ (460,166)	(1,156,674)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of assets		3,600,000
Purchase of Intangible Asset		(10,000)
Net cash provided by financing activities		3,590,000
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans from related parties	$ 15,500	23,330
Repayments of loans from related party	$ (30,651)	(19,540)
Repayments of notes payable - insurance financing		(39,226)
Repayments of notes payable		(275,000)
Net cash used in financing activities		3,590,000
NET INCREASE (DECREASE) IN CASH	$ (475,317)	2,122,890
CASH - BEGINNING OF PERIOD	1,061,377	492
CASH - END OF PERIOD	$ 586,060	2,123,382
Supplemental disclosures of cash flow information:
Cash paid for interest		$ 85,344
Cash paid for taxes
Non-cash activities:
Sale of assets		$ 6,600,000
Common Stock of Amarantus received		(3,000,000)
Cash received		3,600,000
Preferred stock dividends accrued	$ 35,497	$ 35,303
Shares issued/to be issued in connection with conversion of debt and accrued interest
Derivative liabilities reclassified to additional paid-in capital		$ 533,394

THE COMPANY

THE COMPANY	6 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
THE COMPANY	Windstar, Inc. was incorporated in the state of Nevada on September 6, 2007. On July 19, 2010, the Company amended its Articles of Incorporation to change the name of the Company to Regenicin, Inc. (“Regenicin”). In September 2013, Regenicin formed a new wholly-owned subsidiary for the sole purpose of conducting research in the State of Georgia (together, the “Company”). The subsidiary has no activity since its formation due to the lack of funding. The Company’s original business was the development of a purification device. Such business was assigned to the Company’s former management in July 2010. The Company adopted a new business plan and intended to develop and commercialize a potentially lifesaving technology by the introduction of tissue-engineered skin substitutes to restore the qualities of healthy human skin for use in the treatment of burns, chronic wounds and a variety of plastic surgery procedures. The Company entered into a Know-How License and Stock Purchase Agreement (the “Know-How SPA”) with Lonza Walkersville, Inc. (“Lonza Walkersville”) on July 21, 2010. Pursuant to the terms of the Know-How SPA, the Company paid Lonza Walkersville $3,000,000 and, in exchange, the Company was to receive an exclusive license to use certain proprietary know-how and information necessary to develop and seek approval by the U.S. Food and Drug Administration (“FDA”) for the commercial sale of technology held by the Cutanogen Corporation (“Cutanogen”), a subsidiary of Lonza Walkersville. Additionally, pursuant to the terms of the Know-How SPA, the Company was entitled to receive certain related assistance and support from Lonza Walkersville upon payment of the $3,000,000. Under the Know-How SPA, once FDA approval was secured for the commercial sale of the technology, the Company would be entitled to acquire Cutanogen, Lonza Walkersville’s subsidiary, for $2,000,000 in cash. After prolonged attempts to negotiate disputes with Lonza Walkersville failed, on September 30, 2013, the Company filed a lawsuit against Lonza Walkersville, Lonza Group Ltd. and Lonza America, Inc. (“Lonza America”) in Fulton County Superior Court in the State of Georgia. On November 7, 2014, the Company entered into an Asset Sale Agreement (the “Sale Agreement”) with Amarantus Bioscience Holdings, Inc., (“Amarantus”). Under the Sale Agreement, the Company agreed to sell to Amarantus all of its rights and claims in the litigation currently pending in the United States District Court for the District of New Jersey against Lonza Walkersville and Lonza America, Inc. (the “Lonza Litigation”). This includes all of the Cutanogen intellectual property rights and any Lonza manufacturing know-how technology. In addition, the Company agreed to sell the PermaDerm® trademark and related intellectual property rights associated with it. The purchase price paid by Amarantus was: (i) $3,600,000 in cash, and (ii) shares of common stock in Amarantus having a value of $3,000,000 at the sale date. See Note 4 for a further discussion. The Company is using the net proceeds of the transaction to fund development of cultured cell technology and to pursue approval of the products through the FDA. The Company has been developing its own unique cultured skin substitute since receiving Lonza’s termination notice.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	Interim Financial Statements: The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and note disclosures required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending September 30, 2016. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 2015, as filed with the Securities and Exchange Commission. Going Concern: The Company's consolidated financial statements have been prepared assuming that the Company will continue as a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has incurred cumulative losses and has an accumulated deficit of approximately $11.4 million from inception, expects to incur further losses in the development of its business and has been dependent on funding operations through the issuance of convertible debt and private sale of equity securities. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company is using the proceeds from the Asset Sale to fund operations. Once the funds are exhausted, management plans to finance operations through the private or public placement of debt and/or equity securities. However, no assurance can be given at this time as to whether the Company will be able to obtain such financing. The consolidated financial statements do not include any adjustment relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Financial Instruments and Fair Value Measurement: The Company measures fair value of its financial assets on a three-tier value hierarchy, which prioritizes the inputs, used in the valuation methodologies in measuring fair value: • Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable or inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying value of cash, prepaid expenses and other current assets, accounts payable, accrued expenses and all loans and notes payable in the Company’s consolidated balance sheets approximated their values as of and March 31, 2016 and September 30, 2015 due to their short-term nature. Common stock of Amarantus represents equity investments in common stock that the Company classifies as available for sale. Such investments are carried at fair value in the accompanying consolidated balance sheets. Fair value is determined under the guidelines of GAAP which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Realized gains and losses, determined using the first-in, first-out (FIFO) method, are included in net income. Unrealized gains and losses considered to be temporary are reported as other comprehensive income (loss) and are included in stockholders equity. Other than temporary declines in the fair value of investment is included in other income (expense) on the statement of operations. The common stock of Amarantus is valued at the closing price reported on the active market on which the security is traded. This valuation methodology is considered to be using Level 1 inputs. The total value of Amarantus common stock at March 31, 2016 is $13,650. The unrealized loss for the six months ended March 31, 2016 and 2015 was $286,350 and $1,500,000, net of income taxes, respectively, and was reported as a component of comprehensive income (loss). The unrealized loss for the three months ended March 31, 2016 and 2015 was $145,100 and $966,000 net of income taxes, respectively, and was reported as a component of comprehensive income (loss). During the fiscal year ended September 30, 2015, the Company recognized an other than temporary loss on the stock in the amount of $2.7 million which was recognized in the statement of operations for that fiscal year. Recent Pronouncements: Management does not believe that any of the recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying consolidated financial statements. Reclassifications: Certain amounts have been reclassified in the prior year financial statements presented herein, to conform to the current year presentation.

INCOME (LOSS) PER SHARE

INCOME (LOSS) PER SHARE	6 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
INCOME (LOSS) PER SHARE	Basic income (loss) per share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding during the period. Diluted loss per share gives effect to dilutive convertible securities, options, warrants and other potential common stock outstanding during the period; only in periods in which such effect is dilutive. The following table summarizes the components of the income (loss) per common share calculation: Six Months Ended Three Months Ended March 31, 2016 2015 2016 2015 Income (Loss) Per Common Share - Basic: Net income (loss) available to common stockholders $ (693,199 ) $ 3,672,689 $ (311,179 ) $ 1,277,889 Weighted-average common shares outstanding 153,483,050 153,041,442 153,483,050 153,457,176 Basic income (loss) per share $ (0.00 ) $ 0.02 $ (0.00 ) $ 0.01 Income (Loss) Per Common Share - Diluted: Net income (loss) available to common stockholders $ (693,199 ) $ 3,672,689 $ (311,179 ) $ 1,277,889 Weighted-average common shares outstanding 153,483,050 153,041,442 153,483,050 153,457,176 Convertible preferred stock 8,850,000 0 8,850,000 Weighted-average common shares outstanding and common share equivalents 153,483,050 161,891,442 153,483,050 162,307,176 Diluted income (loss) per share $ (0.00 ) $ 0.02 $ (0.00 ) $ 0.01 The following securities have been excluded from the dilution per share calculation for the six months ended March 31, 2016, as their effect would be anti-dilutive: Options 13,542,688 Warrants 722,500 Convertible preferred stock 8,850,000 The following securities have been excluded from the diluted per share calculation for the six months ended March 31, 2015 because the exercise price was greater than the average market price of the common shares: Options 15,542,688 Warrants 3,061,667

SALE OF ASSET

SALE OF ASSET	6 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
SALE OF ASSET	On November 7, 2014, the Company entered into a Sale Agreement with Amarantus, Clark Corporate Law Group LLP ("CCLG") and Gordon & Rees, LLP (“Gordon& Rees”). Under the Sale Agreement, the Company had agreed to sell to Amarantus all of its rights and claims in the Lonza Litigation. These include all of the Cutanogen intellectual property rights and any Lonza manufacturing know-how technology. In addition, the Company had agreed to sell its PermaDerm® trademark and related intellectual property rights associated with it. The purchase price to be paid by Amarantus was: i) $3,500,000 in cash, and (ii) shares of common stock in Amarantus having a value of $3,000,000. A portion of the cash purchase price was allocated to repay debt. On January 30, 2015, the agreement was amended whereby the cash portion of the purchase price was increased by $100,000 to $3,600,000 and the final payment was extended to February 20, 2015. Since Amarantus did not adhere to the original and amended agreements, the Company did not record the final installment of $2.5 million until it was received on February 24, 2015. The payments to CCLG, satisfied in full the obligations owed to CCLG under its secured promissory note. The $3,000,000 in Amarantus common stock was satisfied by the issuance of 37,500,000 shares of Amarantus common stock from Amarantus to the Company. In addition to the sale price, Amarantus paid Gordon & Rees $450,000 upon entering the agreement. The payment to Gordon & Rees was to satisfy in full all contingent litigation fees and costs owed to Gordon & Rees in connection with the Lonza Litigation. During the six months ended March 31, 2015, the Company recorded a gain on the sale of assets of $6,604,431. In addition, as a result of the Sale Agreement, the Company determined that it is no longer liable for accounts payable to Lonza in the amount of $973,374. The liability was reversed and included in operating expenses as an item of income during the six months ended March 31, 2015. The Company also granted to Amarantus an exclusive five (5) year option to license any engineered skin designed for the treatment of patients designated as severely burned by the FDA developed by the Company. Amarantus can exercise this option at a cost of $10,000,000 plus a royalty of 5% on gross revenues in excess of $150 million.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLES ASSETS	As discussed in Note 1, the Company paid $3,000,000 to Lonza in 2010 to purchase an exclusive know-how license and assistance in gaining FDA approval. The $3,000,000 payment was recorded as an intangible asset. Due to ongoing disputes and pending any settlement of the lawsuit, the Company subsequently determined that the value of the intangible asset and related intellectual property had been fully impaired. As a result, the balance of the intangible asset was $-0- at September 30, 2014. In August 2010, the Company paid $7,500 and obtained the rights to the trademarks PermaDerm® and TempaDerm® from KJR-10 Corp. As discussed above in Note 4, the Company sold its intangible assets on November 7, 2014.

LOANS PAYABLE

LOANS PAYABLE	6 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
LOANS PAYABLE	Loan Payable: In February 2011, an investor advanced $10,000. The loan does not bear interest and is due on demand. At both March 31, 2016 and September 30, 2015, the loan payable totaled $10,000. Loans Payable - Related Parties: During the year ended September 30, 2015, the Company recorded expenses that were paid directly by Randall McCoy, the Company’s Chief Executive Officer in prior years and were submitted for reimbursement in the amount of $95,000. During the six months ended March 31, 2016 the Company repaid $15,151 of this loan. At March 31, 2016 and September 30, 2015, the outstanding balance was $79,849 and $95,000, respectively. During the quarter ended December 31, 2015, $15,500 of Company expenses were paid directly by John Weber, the Company’s Chief Financial Officer and were submitted for reimbursement. During the quarter ended March 31, 2016 this amount was repaid to the Company.

BRIDGE FINANCING

BRIDGE FINANCING	6 Months Ended
	Mar. 31, 2016
Receivables [Abstract]
BRIDGE FINANCING	On December 21, 2011, the Company issued a $150,000 promissory note to an individual. The note bore interest so that the Company would repay $175,000 on the maturity date of June 21, 2012, which correlated to an effective rate of 31.23%. Additional interest of 10% was charged on any late payments. The note was not paid at the maturity date and the Company is incurring additional interest described above. At both March 31, 2016 and September 30, 2015, the note balance was $175,000.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	The Company did not incur current tax expense for the three and six months ended March 31, 2016. The provision for income taxes of $863,300 and $2,829,000 for the three and six months ended March 31, 2015, respectively represents deferred taxes. At March 31, 2016, the Company had available approximately $4.0 million of net operating loss carry forwards which expire in the years 2029 through 2035. However, the use of the net operating loss carryforwards generated prior to September 30, 2011 totaling $0.7 million is limited under Section 382 of the Internal Revenue Code. Section 382 of the Internal Revenue Code of 1986, as amended (the Code), imposes an annual limitation on the amount of taxable income that may be offset by a corporation’s NOLs if the corporation experiences an “ownership change” as defined in Section 382 of the Code. Significant components of the Company’s deferred tax assets at March 31, 2016 and September 30, 2015 are as follows: March 31, 2016 September 30, 2015 Net operating loss carry forwards $ 1,587,390 $ 2,574,628 Unrealized loss 1,194,540 1,080,000 Stock based compensation 40,105 227,201 Accrued expenses 412,774 355,265 Total deferred tax assets 3,234,809 4,237,094 Valuation allowance (3,234,809 ) (4,237,094 ) Net deferred tax assets $ — $ — Due to the uncertainty of their realization, a valuation allowance has been established for all of the income tax benefit for these deferred tax assets. At both March 31, 2016 and September 30, 2015, the Company had no material unrecognized tax benefits and no adjustments to liabilities or operations were required. The Company does not expect that its unrecognized tax benefits will materially increase within the next twelve months. The Company recognizes interest and penalties related to uncertain tax positions in general and administrative expense. As of March 31, 2016 and 2015, the Company has not recorded any provisions for accrued interest and penalties related to uncertain tax positions. The Company files its federal income tax returns under a statute of limitations. The 2012 through 2015 tax years generally remain subject to examination by federal tax authorities. The Company has not filed any of its state income tax returns since inception. Due to recurring losses, management believes that once such returns are filed, the Company would incur state minimum tax liabilities that were not deemed material to accrue.

STOCKHOLDERS DEFICIENCY

STOCKHOLDERS DEFICIENCY	6 Months Ended
	Mar. 31, 2016
Equity [Abstract]
STOCKHOLDERS (DEFICIENCY) EQUITY	Preferred Stock: Series A Series A Preferred pays a dividend of 8% per annum on the stated value and have a liquidation preference equal to the stated value of the shares. Each share of Preferred Stock has an initial stated value of $1 and are convertible into shares of the Company’s common stock at the rate of 10 for 1. The dividends are cumulative commencing on the issue date whether or not declared. Dividends amounted to $35,497 and $17,652 for the six and three months March 31, 2016, respectively and $35,303 and $17,458, respectively for the corresponding periods in the prior year. At March 31, 2016 and September 30, 2015, dividends payable total $357,539 and $322,042, respectively. At both March 31, 2016 and September 30, 2015, 885,000 shares of Series A Preferred were outstanding. Series B On January 23, 2012, the Company designated a new class of preferred stock called Series B Convertible Preferred Stock (“Series B Preferred”). Four million shares have been authorized with a liquidation preference of $2.00 per share. Each share of Series B Preferred is convertible into ten shares of common stock. Holders of Series B Convertible Preferred Stock have a right to a dividend (pro-rata to each holder) based on a percentage of the gross revenue earned by the Company in the United States, if any, and the number of outstanding shares of Series B Convertible Preferred Stock, as follows: Year 1 - Total Dividend to all Series B holders = .03 x Gross Revenue in the U.S. Year 2 - Total Dividend to all Series B holders = .02 x Gross Revenue in the U.S. Year 3 - Total Dividend to all Series B holders = .01 x Gross Revenue in the U.S. At March 31, 2016, no shares of Series B Preferred are outstanding.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
STOCK-BASED COMPENSATION	The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 505, “ Equity On January 6, 2011, the Company approved the issuance of 885,672 options to each of the four members of the board of directors at an exercise price of $0.035, as amended, per share that were to expire on December 22, 2015. Effective as of the expiration date, the Company extended the term of those options to December 31, 2018. All other contractual terms of the options remained the same. The option exercise price was compared to the fair market value of the Company’s shares on the date when the extension was authorized by the Company, resulting in the immediate recognition of $67,895 in compensation expense. There is no deferred compensation expense associated with this transaction, since all extended options had previously been fully vested. The extended options were valued utilizing the Black-Scholes option pricing model with the following assumptions: Exercise price of $0.035, expected volatility of 208%, risk free rate of 1.31% and expected term of 3.03 years. Stock based compensation amounted to $67,895 and $32,365 for the six months ended March 31, 2016 and 2015, respectively, and $0 and $32,365 for the three months ended March 31, 2016 and 2015, respectively. Stock-based compensation is included in general and administrative expenses.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	The Company’s principal executive offices are located in Little Falls, New Jersey. The headquarters is located in the offices of McCoy Enterprises LLC, an entity controlled by Mr. McCoy. The office is attached to his residence but has its own entrances, restroom and kitchen facilities. The Company also maintains an office at Carbon & Polymer Research Inc. ("CPR") in Pennington, New Jersey, which is the Company's materials and testing laboratory. An employee of the Company is an owner of CPR. No rent is charged for either premise. On May 16, 2016, the Company entered into an agreement with CPR in which CPR will supply the collagen scaffolds used in the Company's production of the skin tissue. The contract contains a most favored customer clause guaranteeing the Company prices equal or lower than those charged to other customers.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	Management has evaluated subsequent events through the date of this filing.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Interim Financial Statements	The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and note disclosures required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending September 30, 2016. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 2015, as filed with the Securities and Exchange Commission.
Going Concern	The Company's consolidated financial statements have been prepared assuming that the Company will continue as a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has incurred cumulative losses and has an accumulated deficit of approximately $11.4 million from inception, expects to incur further losses in the development of its business and has been dependent on funding operations through the issuance of convertible debt and private sale of equity securities. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company is using the proceeds from the Asset Sale to fund operations. Once the funds are exhausted, management plans to finance operations through the private or public placement of debt and/or equity securities. However, no assurance can be given at this time as to whether the Company will be able to obtain such financing. The consolidated financial statements do not include any adjustment relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
Financial Instruments and Fair Value Measurement	The Company measures fair value of its financial assets on a three-tier value hierarchy, which prioritizes the inputs, used in the valuation methodologies in measuring fair value: • Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable or inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying value of cash, prepaid expenses and other current assets, accounts payable, accrued expenses and all loans and notes payable in the Company’s consolidated balance sheets approximated their values as of and March 31, 2016 and September 30, 2015 due to their short-term nature. Common stock of Amarantus represents equity investments in common stock that the Company classifies as available for sale. Such investments are carried at fair value in the accompanying consolidated balance sheets. Fair value is determined under the guidelines of GAAP which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Realized gains and losses, determined using the first-in, first-out (FIFO) method, are included in net income. Unrealized gains and losses considered to be temporary are reported as other comprehensive income (loss) and are included in stockholders equity. Other than temporary declines in the fair value of investment is included in other income (expense) on the statement of operations. The common stock of Amarantus is valued at the closing price reported on the active market on which the security is traded. This valuation methodology is considered to be using Level 1 inputs. The total value of Amarantus common stock at March 31, 2016 is $13,650. The unrealized loss for the six months ended March 31, 2016 and 2015 was $286,350 and $1,500,000, net of income taxes, respectively, and was reported as a component of comprehensive income (loss). The unrealized loss for the three months ended March 31, 2016 and 2015 was $145,100 and $966,000 net of income taxes, respectively, and was reported as a component of comprehensive income (loss). During the fiscal year ended September 30, 2015, the Company recognized an other than temporary loss on the stock in the amount of $2.7 million which was recognized in the statement of operations for that fiscal year.
Recent Pronouncements	Management does not believe that any of the recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying consolidated financial statements.
Reclassifications	Certain amounts have been reclassified in the prior year financial statements presented herein, to conform to the current year presentation.

INCOME (LOSS) PER SHARE (Tables

INCOME (LOSS) PER SHARE (Tables)	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Loss Per Share Tables
Schedule of Income Loss per Common Share	Six Months Ended Three Months Ended March 31, 2016 2015 2016 2015 Income (Loss) Per Common Share - Basic: Net income (loss) available to common stockholders $ (693,199 ) $ 3,672,689 $ (311,179 ) $ 1,277,889 Weighted-average common shares outstanding 153,483,050 153,041,442 153,483,050 153,457,176 Basic income (loss) per share $ (0.00 ) $ 0.02 $ (0.00 ) $ 0.01 Income (Loss) Per Common Share - Diluted: Net income (loss) available to common stockholders $ (693,199 ) $ 3,672,689 $ (311,179 ) $ 1,277,889 Weighted-average common shares outstanding 153,483,050 153,041,442 153,483,050 153,457,176 Convertible preferred stock 8,850,000 0 8,850,000 Weighted-average common shares outstanding and common share equivalents 153,483,050 161,891,442 153,483,050 162,307,176 Diluted income (loss) per share $ (0.00 ) $ 0.02 $ (0.00 ) $ 0.01
Schedule Of Income Loss per Common Share Exclusions	Options 13,542,688 Warrants 722,500 Convertible preferred stock 8,850,000	Options 15,542,688 Warrants 3,061,667

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Deferred Tax Assets	March 31, 2016 September 30, 2015 Net operating loss carry forwards $ 1,587,390 $ 2,574,628 Unrealized loss 1,194,540 1,080,000 Stock based compensation 40,105 227,201 Accrued expenses 412,774 355,265 Total deferred tax assets 3,234,809 4,237,094 Valuation allowance (3,234,809 ) (4,237,094 ) Net deferred tax assets $ — $ —

THE COMPANY (Details Narrative)

THE COMPANY (Details Narrative) - USD ($)	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Date of Incorporation	Sep. 6, 2007
Payment to Acquire Intangible Assets		$ (10,000)
Purchase Price		$ 3,600,000
Sale Agreement
Date of Agreement	Nov. 7, 2014
Purchase Price	$ 3,500,000
Know How SPA
Date of Agreement	Jul. 21, 2010
Payment to Acquire Intangible Assets	$ 3,000,000
Payment to Acquire Subsidiary	$ 2,000,000

BASIS OF PRESENTATION (Details

BASIS OF PRESENTATION (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Common stock of Amarantus Corporation	$ 13,650		$ 13,650		$ 300,000
Change in unrealized gains on available-for-sale securities, net of	(145,100)	$ (966,000)	(286,350)	$ (1,500,000)
Accumulated deficit	$ (11,367,694)		$ (11,367,694)		$ (10,709,992)

Schedule of Income Loss per Com

Schedule of Income Loss per Common Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Income (Loss) Per Common Share Basic
Net income (loss) attributable to common stockholders	$ (311,179)	$ 1,277,889	$ (693,199)	$ 3,672,689
Weighted average number of shares outstanding	153,483,050	153,457,176	153,483,050	153,041,442
Basic income (loss) per share	$ 0	$ 0.01	$ 0	$ 0.02
Income (Loss) Per Common Share Diluted
Net income (loss) available to common shareholders	$ (311,179)	$ 1,277,889	$ (693,199)	$ 3,672,689
Weighted average number of shares outstanding	153,483,050	153,457,176	153,483,050	153,041,442
Convertible preferred stock	$ 0	$ 8,850,000		$ 8,850,000
Weighted average number of shares outstanding and common share equivalents	153,483,050	162,307,176	153,483,050	161,891,442
Diluted income (loss) per share	$ 0	$ 0.01	$ 0	$ 0.02

LOSS PER SHARE - Schedule Of In

LOSS PER SHARE - Schedule Of Income Loss per Common Share Exclusions (Details) - shares	Mar. 31, 2016	Mar. 31, 2015
Exclusions - Calcs
Options	13,542,688
Warrants	722,500
Convertible preferred stock	8,850,000
Exclusions - Diluted Calcs
Options		15,542,688
Warrants		3,061,667

SALE OF ASSET (Details Narrativ

SALE OF ASSET (Details Narrative) - USD ($)	3 Months Ended			6 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Common Stock of Amarantus received					$ (3,000,000)
Purchase Price					3,600,000
Gain on sale of assets			$ 2,500,000		$ 6,604,431
Sale Agreement
Date of Agreement				Nov. 7, 2014
Common Stock of Amarantus received				$ 3,000,000
Purchase Price				$ 3,500,000
Common Stock of Amarantus received, shares				37,500,000
Gain on sale of assets				$ 6,604,431
Sale Agmt Amendment
Date of Agreement		Jan. 30, 2015
Purchase Price		$ 3,600,000
Exclusive License Grant
Purchase Price				$ 10,000,000
Option, Term				P5Y
Royalty Fee				5.00%

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2010	Sep. 30, 2014
Payment to Acquire Intangible Assets		$ (10,000)
Know How SPA
Date of Agreement	Jul. 21, 2010
Payment to Acquire Intangible Assets	$ 3,000,000
Intangible assets				$ 0
KJR 10 Corp
Payment to Acquire Intangible Assets			$ 7,500

LOANS PAYABLE (Details Narrativ

LOANS PAYABLE (Details Narrative) - USD ($)	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015
Loan payable	$ 10,000		$ 10,000
Loans payable - related parties	79,849		95,000
Investor
Loan payable	10,000		10,000
Loan payable, balance	10,000		10,000
Chief Executive Officer
Loans payable - related parties			95,000
Loan payable, balance	79,849		$ 95,000
Chief Financial Officer
Loans payable - related parties		$ 15,500
Loan payable, balance	$ 0

BRIDGE FINANCING (Details Narra

BRIDGE FINANCING (Details Narrative) - Promissory Note 2 - USD ($)	6 Months Ended
	Mar. 31, 2016	Sep. 30, 2015
Date of Note	Dec. 21, 2011
Debt Instrument	$ 150,000
Maturity Date	Jun. 21, 2012
Interest Rate	31.23%
Additional interest rate if late	10.00%
Debt Instrument, Balance	$ 175,000	$ 175,000

INCOME TAXES - Deferred Tax Ass

INCOME TAXES - Deferred Tax Assets (Details) - USD ($)	Mar. 31, 2016	Sep. 30, 2015
Deferred tax asset attributable to:
Net operating loss carryover	$ 1,587,390	$ 2,574,628
Unrealized loss	1,194,540	1,080,000
Stock based compensation	40,105	227,201
Accrued expenses	412,774	355,265
Total deferred tax assets	3,234,809	4,237,094
Valuation allowance	$ (3,234,809)	$ (4,237,094)
Net deferred tax asset

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative)	3 Months Ended	6 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2016USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operating Loss Carryforwards	$ 4,000,000	$ 4,000,000
Carryforward Expiration Date		Jan. 1, 2029
Provision for income tax benefits	$ 863,300	$ 2,829,000

STOCKHOLDERS DEFICIENCY (Detail

STOCKHOLDERS DEFICIENCY (Details Narrative) - USD ($)	3 Months Ended			6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Series A Preferred Stock, Shares Authorized	5,500,000			5,500,000		5,500,000
Dividends payable	$ 357,539			$ 357,539		$ 322,042
Common stock, Issued	157,911,410			157,911,410		157,911,410
Common stock, Value	$ 157,914			$ 157,914		$ 157,914
Common Stock, Par Value	$ 0.001			$ 0.001		$ 0.001
Series A Preferred Stock, Issued and outstanding	885,000			885,000		885,000
Common Stock, Shares Authorized	200,000,000			200,000,000		200,000,000
Stock based compensation - general and administrative		$ 32,365		$ 67,895	$ 32,365
Series A
Dividends		$ 17,652	$ 17,458	35,497	$ 35,303
Dividends payable	$ 357,539			$ 357,539		$ 322,042
Series A Preferred Stock, Issued and outstanding	885,000			885,000		885,000
Series B
Series B Preferred Stock, Shares Authorized						4,000,000
Series B Preferred Stock, Outstanding						0

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Common stock, Issued	157,911,410		157,911,410		157,911,410
Common stock, Value	$ 157,914		$ 157,914		$ 157,914
Stock based compensation - general and administrative		$ 32,365	$ 67,895	$ 32,365
4 Board Members
Date of Issuance			Jan. 6, 2011
Common stock, Issued	885,672		885,672
Compensation Expense, Recognized			$ 67,895
Common stock, Value	$ 27,556		$ 27,556
Common Stock Option, Exercise Price	$ 0.035		$ 0.035
Grant Date, Fair Value			$ 0.02
Stock based compensation - general and administrative			$ 67,895	$ 32,365