Avant Diagnostics 10-Q 7 Apr 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Dec. 31, 2014	Apr. 07, 2015
Document And Entity Information
Entity Registrant Name	Avant Diagnostics, Inc.
Entity Central Index Key	1451929
Document Type	10-Q
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-21
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		94,226,825
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Dec. 31, 2014	Sep. 30, 2014
Current assets:
Cash and cash equivalents	$270,000	$6,000
Marketable securities	1,000,000	1,600,000
Total current assets	1,270,000	1,606,000
License	1,693,000	1,693,000
Total assets	2,963,000	3,299,000
Current liabilities:
Accounts payable and accrued liabilities	324,000	166,000
Total liabilities	324,000	166,000
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value per share; 20,000,000 shares authorized Series B preferred stock, $0.001 par value; 0 and 3,000 issued and outstanding as of December 31, 2014 and September 30, 2014, respectively
Common stock, $0.001 par value; 480,000,000 shares authorized 80,409,000 and 71,655,800 shares issued and outstanding as of December 31, 2014 and September 30, 2014, respectively	80,000	72,000
Additional paid in capital	10,197,000	9,932,000
Accumulated other comprehensive loss	-1,000,000	-400,000
Accumulated deficit	-6,638,000	-6,471,000
Total stockholders' equity	2,639,000	3,133,000
Total liabilities and stockholders' equity	$2,963,000	$3,299,000

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Balance Sheets Parenthetical
Common Stock, par value	$0.00	$0.00
Common Stock, shares authorized	480,000,000	480,000,000
Common Stock, shares issued	80,409,000	71,655,800
Common Stock, shares outstanding	80,409,000	71,655,800
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	20,000,000	20,000,000
Series B preferred stock, par value	$0.00	$0.00
Series B Preferred stock, shares issued	0	3,000
Series B Preferred stock, shares outstanding	0	3,000

STATEMENTS_OF_OPERATIONS_UNAUD

STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
OPERATING EXPENSES:
Selling, general and administrative	$166,000	$30,000
Total operating expenses	166,000	30,000
Loss from operations before income taxes	-166,000	-30,000
Income tax (benefit) provision
Net loss	($166,000)	($30,000)
Basic and diluted net loss per common share	$0	$0
Shares used in computing basic and diluted net loss per common share	73,414,238	45,053,000

STATEMENTS_OF_COMPREHENSIVE_LO

STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Statements Of Comprehensive Loss
Net loss	($166,000)	($30,000)
Available for sale securities:
Unrealized change in available-for-sale securities	-600,000
Net change in unrealized gains (losses) on available-for-sale securities, net of tax	-600,000
Comprehensive loss	($766,000)	($30,000)

STATEMENTS_OF_CASH_FLOWS_UNAUD

STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	($166,000)	($30,000)
Adjustment to reconcile net loss to net cash used in operating activities:
Common stock issued for services	2,000
Changes in operating assets and liabilities:
Other assets		-8,000
Accounts payable and accrued liabilities	88,000	-24,000
Net cash used by operating activities	-76,000	-62,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in marketable securities
Net cash provided by (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Common stock issued for cash, net	340,000	60,000
Net cash provided by financing activities	340,000	60,000
Net (decrease) increase in cash and cash equivalents	264,000	-2,000
Cash and cash equivalents at beginning of period	6,000	43,000
Cash and cash equivalents at end of period	270,000	41,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid
Taxes paid
Supplemental non-cash disclosures:
Unrealized loss on available-for-sale securities	600,000
Capital contribution by Arrayit Corporation		78,000
Net liabilities assumed in connection with recapitalization	$70,000

NATURE_OF_OPERATIONS_AND_BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION	Avant Diagnostics, Inc. ("Avant" or the "Company") is a Nevada corporation established in 2009, as a diagnostic company that focuses on the commercialization of a series of proprietary microarray-based diagnostic tests that provide early detection of cancers, neurodegenerative diseases, and other chronic and severe disease states. Avant was originally named Arrayit Diagnostics, Inc. (“AD”), which was formed as a majority owned subsidiary of Arrayit Corporation (“Arrayit”) through a technology transfer in July 2009. In January 2013, the Company effected a name change to Avant Diagnostics, Inc.
	The Company’s premier product is OvaDx®, a noninvasive proteomics diagnostic screening test for the early detection of ovarian cancer. This test is expected to be approved by the U.S. Food and Drug Administration (FDA) as the first pre-symptomatic screening test for ovarian cancer in the United States, detecting all types and all stages of ovarian cancer with high sensitivity and specificity.
	Basis of Presentation
	Effective December 29, 2014, we completed a reverse acquisition, as agreed in the definitive Agreement and Plan of Reorganization, of 100% of the outstanding equity interests of American Liberty Petroleum Corp. (“ALP”). Avant shareholders will receive 74,34,139 shares of common stock for a 93% equity interest in ALP. Per the terms of the Agreement and Plan of Reorganization, ALP was delivered with zero assets and $70,000 in liabilities at time of closing. Following the reverse acquisition, we changed the name of ALP to “Avant Diagnostics, Inc.” The transaction was regarded as a reverse merger whereby Avant was considered to be the accounting acquirer as it retained control of ALP after the exchange. Although ALP is the legal parent company, the share exchange was treated as a recapitalization of ALP. Avant is the continuing entity for financial reporting purposes. The financial statements have been prepared as if Avant had always been the reporting company and then on the share exchange date, had changed its name and reorganized its capital stock.
	As used in this Quarterly Report on Form 10-Q and unless otherwise indicated, the terms “we”, “us”, “our”, or the “Company” refer to Avant Diagnostics, Inc. Unless otherwise specified, all dollar amounts are expressed in United States dollars.
	The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC") and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's Form 8-K, as filed on January 14, 2015. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year ended September 30, 2014 filed with the SEC on Form 8-K have been omitted.
	Recent Accounting Pronouncements
	In the February 2013, the FASB issued Accounting Standards Update No. 2013-02 Comprehensive Income (Topic 220); Reporting Amounts Reclassified out of Accumulated Other Comprehensive Income, which requires filers to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net loss. The Company adopted this accounting standard during the first quarter of 2013.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 2 - FAIR VALUE MEASUREMENTS	The carrying value of cash and cash equivalents, available-for-sale securities, accounts payable and accrued liabilities approximate their fair value based on the liquidity or the short-term maturities of these instruments. The fair value hierarchy promulgated by GAAP consists of three levels:
	Level 1 - Quoted market prices in active markets for identical assets or liabilities;
	Level 2 - Inputs other than level one inputs that are either directly or indirectly observable; and
	Level 3 - Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use.
	Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter.
	As of December 31, 2014 and September 30, 2014, the Company had no financial assets or liabilities requiring Level 1 or 3 classification, including those that have unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets and liabilities. Our Level 2 asset consists of investment securities.
	The carrying values for cash and cash equivalents, other current assets, accounts payable and accrued liabilities approximate their fair value due to their short maturities.

FINANCIAL_INSTRUMENTS

FINANCIAL INSTRUMENTS	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 3 - FINANCIAL INSTRUMENTS	Investments in Equity Securities
	The fair values of the Company’s marketable securities are based on quoted market prices and are included in the accompanying consolidated balance sheet under total current assets as available-for sale securities.
	As of December 31, 2014, the Company’s available-for-sale securities consisted of 10,000,000 shares of Arrayit Corporation (OTCBB: ARYC) acquired in August 2014 in exchange for the issuance of 10,000,000 common shares of the Company. Both the Arrayit and the Company’s shares are restricted under Rule 144. The shares were exchanged pursuant to a share exchange agreement with Arrayit in August 2014.
	The Arrayit shares were quoted at $0.20 per share on the date of issuance and at $0.10 as of December 31, 2014. The Company recorded a $600,000 loss to other comprehensive income for the three months ended December 31, 2014. As of December 31, 2014, the total other comprehensive loss recorded for the Arrayit stock was $1,000,000.

LICENSE_AND_TECHNOLOGY_AGREEME

LICENSE AND TECHNOLOGY AGREEMENTS	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 4 - LICENSE AND TECHNOLOGY AGREEMENTS	The Company's intangible assets consists of technology enhancements and licensing payments for its worldwide exclusive licensed rights to OvaDx®, a noninvasive proteomics diagnostic screening test for the early detection of ovarian cancer. The intravenous of “finger stick” blood sample detects early and late stage ovarian cancer of all sub-types. Since the test is performed in a digital platform and compared against known bio-markers, it gives a definitive “yes or no” answer. This test is expected to be approved by the U.S. Food and Drug Administration (FDA) as the first pre-symptomatic screening test for ovarian cancer in the United States, detecting all types and all stages of ovarian cancer with high sensitivity and specificity.
	Technology Assignment Agreement with Arrayit Corporation
	On July 18, 2009, the Company entered into a Technology Assignment Agreement with Arrayit Corporation (the “Tech Transfer Agreement”), whereby Arrayit Corporation assigned to the Company, exclusively throughout the world, all right, title and interest in the technology behind the microarray-based test for the detection and monitoring of ovarian cancer (the “Intellectual Property). The consideration under the Tech Transfer Agreement for the Intellectual Property was 80% of the Company’s issued and outstanding shares of capital stock existing at the time of the agreement, or 19,350,000 shares of common stock. The term of the agreement is indefinite.
	Licensing Agreement with Wayne State University
	On December 7, 2009, the Company entered into a worldwide licensing agreement and sponsored research agreement with Arrayit Corporation and Wayne State University (“WSU”) in Detroit, Michigan, for the continued research and development of a protein microarray-based diagnostic test for the early detection of ovarian cancer. WSU’s research involving ovarian cancer has been focused on the specific expression of genes associated with ovarian cancer (the “License Agreement”). For more than ten years, WSU has used Arrayit Corporation’s microarray technology to help identify key biomarkers using a novel process that has allowed them to isolate biomarkers unique to ovarian cancer. As a result, Arrayit has been able to build on this approach and is now in the late stage development phase of a simple blood test for the early detection of ovarian cancer that uses approximately 100 unique proteomic biomarkers in a microarray-based serologic detection of ovarian cancer markers that accumulate in the bloodstream as a result of the body’s natural immune response to developing ovarian tumors. The approach is based on the premise that cancer is a complex illness whose evolution over time is determined by a complex set of factors that depend both on the etiology of the illness and its interaction with the immune system of the specific patient. The main hypothesis is that any single marker will not have the ability to capture the complexities of this interaction, whereas a broad set of markers has a much better potential to do so. This approach allows ovarian tumors to be detected at Stage I of the illness, up to five years before symptoms occur in patients, which allows early medical intervention and a marked improvement in prognosis. WSU shall have the right to terminate the agreement if it reasonably determines that the Company is not diligently utilizing the licensed patents or the license agreement will expire as the patents expire.
	Under the terms of the License Agreement, the Company is obligated to make a one-time payment of $125,000 to WSU within 30 days after the approval of the first licensed product by the FDA or another comparable agency, and is obligated to make royalty payments of up to 5% of the net revenues of the licensed products on a quarterly basis, or a minimum royalty payments as set forth below under the First Amendment.
	On March 1, 2014, the Company and WSU entered into an amendment to the License Agreement in order to reflect the new name of the Company and to amend certain provisions (the “First Amendment”) as follows:
	·	Update the list of licensed patents;
	·	Waive and update certain diligence milestones;
	·	Establish a payment schedule for certain past due patent costs due to WSU by the Company;
	·	Establish a payment schedule for certain accrued patent expenses incurred b WSU totaling $118,586;
	·	Require the Company to pay ongoing patent expenses;
	·	Waive the minimum royalty of $50,000 for each of 2011, 2012 and 2013 and adjust minimum annual royalties to $25,000 for 2014 and 2015, $50,000 for 2016 and 2017, $150,000 for 2018 and 2019 and $300,000 for 2020 and each year thereafter;
	·	Amend the list of material obligations;
	·	Waive certain interest and late fees; and
	·	Update addresses of record for both WSU and the Company.
	As of December 31, 2014 and September 30, 2014, the carrying value of the rights to OvaDx® and payments to WSU under the License Agreement was $1,693,000, consisting of enhancements to the original initial rights licensed assigned to the Company resulting from the Tech Transfer Agreement with Arrayit Corporation as well as licensing payments made to WSU. The Company paid for these enhancements by the issuance of 10,000,000 common shares to Arrayit in August 2014, as well as cash payments to WSU during 2014 and 2013. It will be assessed over time for changes in valuation. The Company is not amortizing the value of the license. The Company will amortize the license upon FDA approval.
	Exclusive Services Agreement Between Arrayit Corporation and the Company
	On September 10, 2009, the Company entered into an Exclusive Services Agreement with Arrayit Corporation (the “Services Agreement”), whereby the Company will utilize the services of Arrayit Corporation to manufacture and provide the Company with a commercial supply of a microarray-based test for the detection and monitoring of ovarian cancer. The term of the Services Agreement was for five (5) years, with election to extend by the Company for an additional five (5) years period. Thereafter, the Services Agreement shall renew automatically for successive two-year periods, unless either Arrayit Corporation or the Company notifies the other of its election not to renew at least twelve (12) months prior to the expiration of the term. The term has been extended through September 2019. On August 6, 2014, the Company and Arrayit Corporation agreed that, upon any sales of OvaDx® and if desired by the purchase, that Arrayit Corporation would agree to include the manufacturing rights in the sale for no additional consideration.

COMMITMENTS

COMMITMENTS	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 5 - COMMITMENTS	Lease of Corporate Office
	As of December 31, 2014, we lease corporate office space under a month-to-month operating lease at 8561 E. Anderson Drive, #104, Scottsdale, AZ 85255 for $200 per month from an entity controlled by the Company’s Chief Executive Officer.

STOCKHOLDERS_EQUITY_AND_SHAREB

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 6 - STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE	Preferred Stock
	The total number of authorized shares of the Company’s preferred stock is 20,000,000 shares, $0.001 par value per share. The total number of designated shares of the Company’s Series B Preferred Stock is 3,000. As of September 30, 2014 and 2013, there were 3,000 shares Series B Preferred Stock issued and outstanding. Holders of outstanding shares of the Company’s Series B Preferred Stock are not entitled to receive dividends and have no liquidation preference and no redemption privileges. The shares of the Series B Preferred Stock shall always constitute two-thirds voting power. Concurrent with the consummation of the Agreement and Plan of Reorganization, the Series B Preferred Stock outstanding will be retired at no cost to the Company.
	The Company completed a merger with American Liberty Petroleum Corporation. Upon consummation of the merger, the Series B Preferred Stock outstanding was retired at no cost to the Company whereby Arrayit became the majority shareholder. In connection with the merger, the Company’s officers entered into a voting agreement with Arrayit to decrease their voting interest to less than 50%.
	Effective February 18, 2015, we adopted an amendment to our articles of incorporation to authorize the issuance of preferred stock with preferences, limitations, and relative rights designated by our board of directors (the “Preferred Shares”). The amendment to our articles of incorporation will authorize the issuance of up to 50,000,000 Preferred Shares, with different series under the discretion of our board of directors, without any action on the part of the stockholders.
	Common Stock
	During the three months ended December 31, 2014 the Company sold 2,766,666 shares of our common stock to 14 investors for a total of $340,000.
	During the three months ended December 31, 2014, the Company issued 15,000 shares of our common stock for consulting services valued at $2,000.
	During the three months ended December 31, 2013 the Company sold 350,000 shares of our common stock to 4 investors for a total of $60,000.
	Effective December 29, 2014, we completed a reverse acquisition, as agreed in the definitive Agreement and Plan of Reorganization, of 100% of the outstanding equity interests of American Liberty Petroleum Corp. (“ALP”). Avant shareholders will receive 74,34,139 shares of common stock for a 93% equity interest in ALP. Per the terms of the Agreement and Plan of Reorganization, ALP was delivered with zero assets and $70,000 in liabilities at time of closing. Following the reverse acquisition, we changed the name of ALP to “Avant Diagnostics, Inc.” The transaction was regarded as a reverse merger whereby Avant was considered to be the accounting acquirer as it retained control of ALP after the exchange. Although ALP is the legal parent company, the share exchange was treated as a recapitalization of ALP. Avant is the continuing entity for financial reporting purposes. The financial statements have been prepared as if Avant had always been the reporting company and then on the share exchange date, had changed its name and reorganized its capital stock.
	Stock Options and Warrants
	No stock options or warrants were issued during the period ended December 31, 2014.

LEGAL_PROCEEDINGS

LEGAL PROCEEDINGS	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 7 - LEGAL PROCEEDINGS	On January 13, 2014, Plaintiff Tamarin Lindenberg sued Arrayit Corporation, the Company, John Howell, Steven Scott and Gregg Linn in Civil Action No. L7698-13. Plaintiff alleged violations of the New Jersey Conscientious Employee Protection Act NJSA 34:19-1 to NJSA 34:19-8 (“CEPA”), breach of contract, breach of covenant of good faith and fair dealing, economic duress and intentional infliction of emotional distress. On August 6, 2014 the District Court dismissed Plaintiff’s complaint against Arrayit Corporation for failure to state a claim upon which relief may be granted and against John Howell for lack of jurisdiction. The Company and its officers remain as defendants in the action. The Company and its officers have mounted a vigorous defense against these claims and believe they are without legal merit.

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 8 - RELATED PARTY TRANSACTIONS	As of December 31, 2014, we lease corporate office space under a month-to-month operating lease at 8561 E. Anderson Drive, #104, Scottsdale, AZ 85255 for $200 per month from an entity controlled by the Company’s Chief Executive Officer.
	Under the terms of their employment contracts the Company’s officers are to be paid $120,000 base salary annually, reimbursed for health insurance coverage and a car allowance of $3,000 and $1,500 per month each, respectively, beginning in December 2012. As of December 31, 2014 and September 30, 2014, the amounts accrued and still owing under these provisions was $171,000 and $52,000 (aggregate), respectively, which is included in accounts payable and accrued liabilities.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 9 - SUBSEQUENT EVENTS	As part of a settlement, Arrayit will dividend out 10,000,000 shares of the Company after the merger and we have agreed to register those shares. If we were not successful in becoming publicly traded by August 2015, we would have had to sell the OvaDx® rights to Arrayit for 10,000,000 common shares of Arrayit.

NATURE_OF_OPERATIONS_AND_BASIS1

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Dec. 31, 2014
Nature Of Operations And Basis Of Presentation Policies
Basis of Presentation	Effective December 29, 2014, we completed a reverse acquisition, as agreed in the definitive Agreement and Plan of Reorganization, of 100% of the outstanding equity interests of American Liberty Petroleum Corp. (“ALP”). Avant shareholders will receive 74,34,139 shares of common stock for a 93% equity interest in ALP. Per the terms of the Agreement and Plan of Reorganization, ALP was delivered with zero assets and $70,000 in liabilities at time of closing. Following the reverse acquisition, we changed the name of ALP to “Avant Diagnostics, Inc.” The transaction was regarded as a reverse merger whereby Avant was considered to be the accounting acquirer as it retained control of ALP after the exchange. Although ALP is the legal parent company, the share exchange was treated as a recapitalization of ALP. Avant is the continuing entity for financial reporting purposes. The financial statements have been prepared as if Avant had always been the reporting company and then on the share exchange date, had changed its name and reorganized its capital stock.
	As used in this Quarterly Report on Form 10-Q and unless otherwise indicated, the terms “we”, “us”, “our”, or the “Company” refer to Avant Diagnostics, Inc. Unless otherwise specified, all dollar amounts are expressed in United States dollars.
	The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC") and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's Form 8-K, as filed on January 14, 2015. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year ended September 30, 2014 filed with the SEC on Form 8-K have been omitted.
Recent Accounting Pronouncements	In the February 2013, the FASB issued Accounting Standards Update No. 2013-02 Comprehensive Income (Topic 220); Reporting Amounts Reclassified out of Accumulated Other Comprehensive Income, which requires filers to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net loss. The Company adopted this accounting standard during the first quarter of 2013.

FINANCIAL_INSTRUMENTS_Details_

FINANCIAL INSTRUMENTS (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2014
Common Stock, shares issued	80,409,000		71,655,800
Common Stock, par value	$0.00		$0.00
Net change in unrealized gains (losses) on available-for-sale securities, net of tax	($600,000)
Comprehensive loss	-766,000	-30,000
Investments in Equity Securities [Member]
Available-for-sale securities	10,000,000
Common Stock, shares issued	10,000,000
Common Stock, par value	$0.00
Net change in unrealized gains (losses) on available-for-sale securities, net of tax	-600,000
Comprehensive loss	($1,000,000)

LICENSE_AND_TECHNOLOGY_AGREEME1

LICENSE AND TECHNOLOGY AGREEMENTS (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2014	Sep. 30, 2014
Notes to Financial Statements
Minimum annual royalties, 2014	$25,000
Minimum annual royalties, 2015	25,000
Minimum annual royalties, 2016	50,000
Minimum annual royalties, 2017	50,000
Minimum annual royalties, 2018	150,000
Minimum annual royalties, 2019	150,000
Minimum annual royalties, 2020	300,000
Minimum annual royalties, thereafter	300,000
Carrying value of the rights and payments to WSU under license agreement	$1,693,000	$1,693,000

COMMITMENTS_Details_Narrative

COMMITMENTS (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
Revenue from office space	$200

STOCKHOLDERS_EQUITY_AND_SHAREB1

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE (Details Narrative) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Common Stock, shares issued	80,409,000	71,655,800
14 investors [Member]
Common Stock, shares issued	2,766,666
Common stock value	340,000
Consulting Services [Member]
Common Stock, shares issued	15,000
Common stock value	2,000
4 investors [Member]
Common Stock, shares issued	350,000
Common stock value	60,000

RELATED_PARTY_TRANSACTIONS_Det

RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2014	Sep. 30, 2014
Notes to Financial Statements
Amounts accrued and still owing under these provisions	$171,000	$52,000