NeuroOne Medical Technologies (NMTC) 10-Q 12 May 22 2022 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2022	May 11, 2022
Document Information Line Items
Entity Registrant Name	NEUROONE MEDICAL TECHNOLOGIES Corp
Trading Symbol	NMTC
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		16,193,467
Amendment Flag	false
Entity Central Index Key	0001500198
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-40439
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-0863354
Entity Address, Address Line One	7599 Anagram Drive
Entity Address, City or Town	Eden Prairie
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55344
Local Phone Number	952-426-1383
City Area Code	952-426-1383
Title of 12(b) Security	Common stock, $0.001 par value
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Mar. 31, 2022	Sep. 30, 2021
Current assets:
Cash	$ 12,869,091	$ 6,901,346
Accounts receivable	36,584	48,336
Inventory	221,903	98,287
Prepaid and other assets	315,099	244,043
Total current assets	13,442,677	7,292,012
Intangible assets, net	123,049	134,207
Right-of-use assets	236,043	288,948
Property and equipment, net	286,954	223,329
Total assets	14,088,723	7,938,496
Current liabilities:
Accounts payable	446,024	528,829
Accrued expenses	361,959	644,249
Deferred revenue	2,248	8,622
Total current liabilities	810,231	1,181,700
Operating lease liabilities	156,043	202,895
Total liabilities	966,274	1,384,595
Commitments and contingencies (Note 4)
Stockholders’ equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized as of March 31, 2022 and September 30, 2021; no shares issued or outstanding as of March 31, 2022 and September 30, 2021.
Common stock, $0.001 par value; 100,000,000 shares authorized as of March 31, 2022 and September 30, 2021; 16,191,169 and 12,010,019 shares issued and outstanding as of March 31, 2022 and September 30, 2021, respectively.	40,015	35,834
Additional paid–in capital	59,775,175	47,345,266
Accumulated deficit	(46,692,741)	(40,827,199)
Total stockholders’ equity	13,122,449	6,553,901
Total liabilities and stockholders’ equity	$ 14,088,723	$ 7,938,496

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2022	Sep. 30, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	16,191,169	12,010,019
Common stock, shares outstanding	16,191,169	12,010,019

Condensed Statements of Operati

Condensed Statements of Operations (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Product revenue	$ 36,584	$ 18,240	$ 70,332	$ 89,714
Cost of product revenue	72,807	39,363	119,651	148,494
Product gross profit (loss)	(36,223)	(21,123)	(49,319)	(58,780)
Collaborations revenue		20,113	6,374	42,387
Operating expenses:
Selling, general and administrative	1,818,207	1,313,252	3,560,348	2,507,112
Research and development	1,205,380	1,081,429	2,265,842	2,015,587
Total operating expenses	3,023,587	2,394,681	5,826,190	4,522,699
Loss from operations	(3,059,810)	(2,395,691)	(5,869,135)	(4,539,092)
Interest expense				(3,053)
Net valuation change of instruments measured at fair value				1,974
Other income	1,743	1,775	3,593	186,775
Loss before income taxes	(3,058,067)	(2,393,916)	(5,865,542)	(4,353,396)
Provision for income taxes
Net loss	$ (3,058,067)	$ (2,393,916)	$ (5,865,542)	$ (4,353,396)
Net loss per share:
Basic and diluted (in Dollars per share)	$ (0.19)	$ (0.21)	$ (0.37)	$ (0.46)
Number of shares used in per share calculations:
Basic and diluted (in Shares)	16,189,867	11,238,084	15,794,880	9,419,599

Condensed Statements of Changes

Condensed Statements of Changes in Stockholders’ Equity (unaudited) - USD ($)	Common Stock	Additional Paid–In Capital	Accumulated Deficit	Total
Balance at Sep. 30, 2020	$ 22,181	$ 32,923,022	$ (30,879,031)	$ 2,066,172
Balance (in Shares) at Sep. 30, 2020	7,393,637
Issuance of common stock upon conversion of convertible notes	$ 878	1,004,354		1,005,232
Issuance of common stock upon conversion of convertible notes (in Shares)	292,754
Issuance costs in connection with private placement		50,400		50,400
Stock-based compensation		245,829		245,829
Issuance of common stock upon vesting of restricted stock units	$ 31	(31)
Issuance of common stock upon vesting of restricted stock units (in Shares)	10,450
Net loss			(1,959,480)	(1,959,480)
Balance at Dec. 31, 2020	$ 23,090	34,223,574	(32,838,511)	1,408,153
Balance (in Shares) at Dec. 31, 2020	7,696,841
Issuance of common stock in connection with private placement	$ 12,500	8,816,736		8,829,236
Issuance of common stock in connection with private placement (in Shares)	4,166,682
Issuance of warrants in connection with private placement		3,670,764		3,670,764
Issuance costs in connection with private placement		(1,198,080)		(1,198,080)
Stock-based compensation		326,359		326,359
Exercise of warrants	$ 120	212,379		212,499
Exercise of warrants (in Shares)	39,905
Exercise of stock options	$ 2	4,996		4,998
Exercise of stock options (in Shares)	758
Issuance of common stock upon vesting of restricted stock units	$ 18	(18)
Issuance of common stock upon vesting of restricted stock units (in Shares)	6,131
Net loss			(2,393,916)	(2,393,916)
Balance at Mar. 31, 2021	$ 35,730	46,056,710	(35,232,427)	10,860,013
Balance (in Shares) at Mar. 31, 2021	11,910,317
Balance at Sep. 30, 2021	$ 35,834	47,345,266	(40,827,199)	6,553,901
Balance (in Shares) at Sep. 30, 2021	12,010,019
Issuance of common stock in connection with public offering	$ 4,172	13,346,410		13,350,582
Issuance of common stock in connection with public offering (in Shares)	4,172,057
Issuance cost in connection with public offering		(1,352,280)		(1,352,280)
Stock-based compensation		203,072		203,072
Issuance of common stock upon vesting of restricted stock units	$ 6	(6)
Issuance of common stock upon vesting of restricted stock units (in Shares)	5,646
Net loss			(2,807,475)	(2,807,475)
Balance at Dec. 31, 2021	$ 40,012	59,542,462	(43,634,674)	15,947,800
Balance (in Shares) at Dec. 31, 2021	16,187,722
Stock-based compensation		232,716		232,716
Issuance of common stock upon vesting of restricted stock units	$ 3	(3)
Issuance of common stock upon vesting of restricted stock units (in Shares)	3,447
Net loss			(3,058,067)	(3,058,067)
Balance at Mar. 31, 2022	$ 40,015	$ 59,775,175	$ (46,692,741)	$ 13,122,449
Balance (in Shares) at Mar. 31, 2022	16,191,169

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating activities
Net loss	$ (5,865,542)	$ (4,353,396)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization and depreciation	53,692	38,030
Stock-based compensation	435,788	572,188
Issuance costs attributed to financing activities		3,053
Revaluation of convertible notes		(1,974)
Non-cash lease expense	52,905	26,802
Change in assets and liabilities:
Accounts receivable	11,752
Inventory	(123,616)
Prepaid and other assets	(163,990)	37,585
Accounts payable	33,800	(444,197)
Accrued expenses, deferred revenue, operating leases and other liabilities	(335,516)	(162,193)
Net cash used in operating activities	(5,900,727)	(4,284,102)
Investing activities
Purchase of fixed assets	(154,810)	(2,059)
Net cash used in investing activities	(154,810)	(2,059)
Financing activities
Issuance costs related to convertible notes		(3,053)
Proceeds from issuance of common stock in connection with public offering and private placements	13,350,582	8,829,236
Proceeds from issuance of warrants in connection with private placement		3,670,764
Exercise of warrants		212,499
Exercise of stock options		4,998
Issuance costs related to public offering and private placements	(1,327,300)	(1,190,495)
Net cash provided by financing activities	12,023,282	11,523,949
Net increase in cash	5,967,745	7,237,788
Cash at beginning of period	6,901,346	4,036,397
Cash at end of period	12,869,091	11,274,185
Supplemental non-cash financing and investing transactions:
Conversion of convertible notes into equity		1,005,232
Unpaid issuance costs and non-cash adjustments attributed to convertible notes and private placements		57,985
Reclass of deferred offering costs to additional paid-in capital in connection with public offering	24,980
Purchased fixed assets in accounts payable and accrued expenses		$ 19,869

Description of Business and Bas

Description of Business and Basis of Presentation	6 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Description of Business and Basis of Presentation	NOTE 1 – Description of Business and Basis of Presentation NeuroOne Medical Technologies Corporation (the “Company” or “NeuroOne”), a Delaware corporation, is an early-stage medical technology company developing comprehensive neuromodulation electroencephalogram (cEEG) and stereoelectrocencephalography (sEEG) recording, monitoring, ablation, and brain stimulation solutions to diagnose and treat patients with epilepsy, Parkinson’s disease, dystonia, essential tremors, chronic pain due to failed back surgeries and other related neurological disorders. The Company received 510(k) clearance from the U.S. Food and Drug Administration (“FDA”) for its Evo cortical technology in November 2019, and in September 2021 received 510(k) clearance from the FDA for its Evo sEEG electrode technology for temporary (less than 24 hours) use with recording, monitoring, and stimulation equipment for the recording, monitoring, and stimulation of electrical signals at the subsurface level of the brain. To date, the Company has had limited commercial sales. The Company is based in Eden Prairie, Minnesota. COVID-19 On March 11, 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a global pandemic. As a result of the COVID-19 pandemic, the Company has experienced, and will likely continue to experience, delays and disruptions in its pre-clinical and clinical trials, as well as interruptions in its manufacturing, supply chain, shipping, and research and development operations. The development of the Company’s technology was delayed in the first quarter due to interruptions in global manufacturing and shipping as a result of the COVID-19 pandemic. Additionally, the Company’s own staff has been impacted by infections and mandatory quarantines. Testing and clinical trials, manufacturing, component supply, shipping and research and development operations may be further impacted by the continuing effects of COVID-19. The extent to which the COVID-19 pandemic and macroeconomic conditions may further impact the Company’s business will depend on future developments, which are highly uncertain and cannot be predicted with confidence, such as global supply chain disruptions, the duration of the pandemic and the impact of variants, travel restrictions and social distancing in the U.S. and other countries, business closures or business disruptions and the effectiveness of actions taken in the U.S. and other countries to contain and treat the disease. Although the Company cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time, the continuing impact of the pandemic may have a material adverse effect on the Company’s results of future operations, financial position, and liquidity for the duration of fiscal year 2022 and beyond. Basis of presentation The accompanying unaudited condensed financial statements have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The condensed financial statements may not include all disclosures required by GAAP; however, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and the notes thereto for the year ended September 30, 2021 included in the Annual Report on Form 10-K. The condensed balance sheet at September 30, 2021 was derived from the audited financial statements of the Company. In the opinion of management, all adjustments, consisting of only normal recurring adjustments that are necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, have been made. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future periods. Reverse Stock Split On March 11, 2021, the Company’s Board of Directors (the “Board”) approved a one-for-three reverse stock split of the Company’s issued and outstanding shares of common stock (the “Reverse Stock Split”) effective end-of-day March 31, 2021. All issued and outstanding common stock and per share amounts contained in the financial statements have been retroactively adjusted to reflect this Reverse Stock Split for all periods presented. In addition, a proportionate adjustment was made to the per share exercise price and the number of shares issuable upon the exercise and/or vesting of all outstanding stock options, restricted stock units and warrants to purchase shares of common stock. A proportionate adjustment was also made to the number of shares reserved for issuance pursuant to the Company’s equity incentive compensation plans to reflect the Reverse Stock Split. Any fraction of a share of common stock that was created as a result of the Reverse Stock Split was rounded up to the next whole share. The authorized shares and par value of the common stock and preferred stock were not adjusted as a result of the Reverse Stock Split.

Going Concern

Going Concern	6 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	NOTE 2 – Going Concern The accompanying condensed financial statements have been prepared on the basis that the Company will continue as a going concern. The Company has incurred losses since inception, negative cash flows from operations, and had an accumulated deficit of $46.7 million as of March 31, 2022. The Company has not established a source of revenues to cover its full operating costs, and as such, has been dependent on funding operations through the issuance of debt and sale of equity securities. The Company does not have adequate liquidity to fund its operations without raising additional funds and such actions are not solely within the control of the Company. These factors raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this condition. If the Company is unable to raise additional funds, or the Company’s anticipated operating results are not achieved, management believes planned expenditures may need to be reduced in order to extend the time period that existing resources can fund the Company’s operations. The Company intends to fund ongoing activities by utilizing its current cash on hand, from product and collaborations revenue and by raising additional capital through equity or debt financings. If management is unable to obtain the necessary capital, it may have a material adverse effect on the operations of the Company and the development of its technology, or the Company may have to cease operations altogether.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 3 – Summary of Significant Accounting Policies Management’s Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, primarily in connection with the convertible promissory notes when outstanding, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition The Company entered into a development and distribution agreement which has current and future revenue recognition implications. See “Note 7 – Zimmer Development Agreement”. Product Revenue Revenues from product sales are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. At the inception of each contract, performance obligations are identified and the total transaction price is allocated to the performance obligations. The Company commenced commercial sales of cEEG strip/grid and electrode cable assembly products beginning in the first quarter of fiscal year 2021. The Company sold, on a limited application basis for design verification, sEEG depth electrode products for non-human use beginning in late fiscal year 2021. Cost of Product Revenue Cost of product revenue consists of the manufacturing and materials costs incurred by the Company’s third-party contract manufacturer in connection with cEEG strip/grid and sEEG depth electrode products, and outside supplier materials costs in connection with the electrode cable assembly products. In addition, cost of product revenue includes royalty fees incurred in connection with the Company’s license agreements. Collaborations Revenue In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC Topic 606. Performance obligations may include license rights, development services, and services associated with regulatory submission and approval processes. Significant management judgment is required to determine the level of effort required under an arrangement and the period over which the Company expects to complete its performance obligations under the arrangement. If the Company cannot reasonably estimate when its performance obligations are either completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price of each performance obligation identified in the contract. The Company uses key assumptions to determine the stand-alone selling price, which may include forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success. The Company allocates the total transaction price to each performance obligation based on the estimated relative standalone selling prices of the promised goods or service underlying each performance obligation. Licenses of intellectual property Milestone payments Royalties Fair Value of Financial Instruments The Company’s accounting for fair value measurements of assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring or nonrecurring basis adheres to the Financial Accounting Standards Board (“FASB”) fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ● Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the Company at the measurement date. ● Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ● Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. As of March 31, 2022 and September 30, 2021, the fair values of cash, accounts receivable, inventory, prepaid expenses, other assets, accounts payable and accrued expenses approximated their carrying values because of the short-term nature of these assets or liabilities. The fair value of the convertible notes while outstanding were based on both the fair value of our common stock, discount associated with the embedded redemption features, and cash flow models discounted at current implied market rates evidenced in recent arms-length transactions representing expected returns by market participants for similar instruments and are based on Level 3 inputs. There were no transfers between fair value hierarchy levels during the six months ended March 31, 2022 and 2021. The following table provides a roll-forward of the convertible notes at fair value on a recurring basis using unobservable level 3 inputs for the six months ended March 31, 2021. There were no convertible notes outstanding during the six months ended March 31, 2022. 2021 Convertible notes Balance as of beginning of period – September 30, 2020 $ 1,007,206 Change in fair value including accrued interest (1,974 ) Conversion of convertible promissory notes to common stock (1,005,232 ) Balance as of end of period – March 31, 2021 $ — Intellectual Property The Company has entered into two licensing agreements with major research institutions, which allow for access to certain patented technology and know-how. Payments under those agreements are capitalized and amortized to general and administrative expense over the expected useful life of the acquired technology. Property and Equipment Property and equipment is recorded at cost and reduced by accumulated depreciation. Depreciation expense is recognized over the estimated useful lives of the assets using the straight-line method. The estimated useful life for equipment and furniture ranges from three to seven years and three years for software. Tangible assets acquired for research and development activities and that have alternative use are capitalized over the useful life of the acquired asset. Estimated useful lives are periodically reviewed, and, when appropriate, changes are made prospectively. Software purchased for internal use consists primarily of amounts paid for perpetual licenses to third-party software providers and installation costs. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts. Maintenance and repairs are charged directly to expense as incurred. Allowances for Doubtful Accounts The Company records a provision for doubtful accounts, when appropriate, based on historical experience and a detailed assessment of the collectability of its accounts receivable. In estimating the allowance for doubtful accounts, the Company considers, among other factors, the aging of the accounts receivable, its historical write-offs, the credit worthiness of each customer, and general economic conditions. Account balances are charged off against the allowance when the Company believes that it is probable that the receivable will not be recovered. Actual write-offs may be in excess of the Company’s estimated allowance. Inventories Inventories are stated at the lower of cost (using the first-in, first-out “FIFO” method) or net realizable value. The Company calculates inventory valuation adjustments for excess and obsolete inventory, when appropriate, based on current inventory levels, movement, expected useful lives, and estimated future demand of the products and spare parts. The Company’s inventory is currently comprised of cEEG strip/grid, sEEG depth electrode and electrode cable assembly finished good products and related component parts. The strip/ grid and depth electrode products are produced by a third-party contract manufacturer and the electrode cable assembly products are obtained from outside suppliers. Impairment of Long-Lived Assets The Company evaluates its long-lived assets, which consist of licensed intellectual property and property and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. The Company assesses the recoverability of long-lived assets by determining whether or not the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. Research and Development Costs Research and development costs are charged to expense as incurred. Research and development expenses may include costs incurred in performing research and development activities, including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted services, license fees, and other external costs. Non-refundable advance payments for goods and services that will be used in future research and development activities are expensed when the activity is performed or when the goods have been received, rather than when payment is made, in accordance with Accounting Standards Codification (ASC) 730, Research and Development Selling, General and Administrative Selling, general and administrative expenses consist primarily of personnel-related costs including stock-based compensation for personnel in functions not directly associated with research and development activities. Other significant costs include legal fees relating to corporate matters, intellectual property costs, professional fees for consultants assisting with regulatory, clinical, product development, financial matters and sales and marketing in connection with the commercial sale of cEEG strip/grid, sEEG depth electrode and electrode cable assembly products. Income Taxes For the Company, income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax base and operating loss and tax credit carryforwards. 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. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. Net Loss Per Share For the Company, basic loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted earnings or loss per share of common stock is computed similarly to basic earnings or loss per share except the weighted average shares outstanding are increased to include additional shares from the assumed exercise of any common stock equivalents, if dilutive. The Company’s warrants, stock options, and restricted stock units while outstanding are considered common stock equivalents for this purpose. Diluted earnings is computed utilizing the treasury method for the warrants, stock options and restricted stock units. No incremental common stock equivalents were included in calculating diluted loss per share because such inclusion would be anti-dilutive given the net loss reported for the three and six months ended March 31, 2022 and 2021. The following potential common shares were not considered in the computation of diluted net loss per share as their effect would have been anti-dilutive for the three and six months ended March 31, 2022 and 2021: 2022 2021 Warrants 6,753,444 7,514,949 Stock options 1,162,059 1,103,609 Restricted stock units 359,394 10,326 Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “ Financial Instruments – Credit Losses” In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) which amends the existing guidance relating to the accounting for income taxes. This ASU is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of accounting for income taxes and to improve the consistent application of GAAP for other areas of accounting for income taxes by clarifying and amending existing guidance. The ASU is effective for fiscal years beginning after December 15, 2020. The Company adopted the new guidance on October 1, 2021 and the adoption of this new guidance did not have a material impact on the Company’s financial statements. In August 2020, FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which, among other things, provides guidance on how to account for contracts on an entity’s own equity. This ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, this ASU modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. The amendments in this ASU are effective for smaller reporting companies as defined by the SEC for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of ASU 2020-06 on its financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities about Government Assistance,

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 4 - Commitments and Contingencies WARF License Agreement The Company has entered into an exclusive start-up company license agreement with the Wisconsin Alumni Research Foundation (“WARF”) for WARF’s neural probe array and thin film micro electrode technology (the “WARF Agreement”). The Company entered into an Amended and Restated Exclusive Start-up Company License Agreement (the “WARF License”) with WARF on January 21, 2020, which amended and restated in full the prior license agreement between WARF and NeuroOne, LLC, a predecessor of the Company, dated October 1, 2014, as amended on February 22, 2017, March 30, 2019 and September 18, 2019. The WARF License grants to the Company an exclusive license to make, use and sell, in the United States only, products that employ certain licensed patents for a neural probe array or thin-film micro electrode array and method. We have agreed to pay WARF a royalty equal to a single-digit percentage of our product sales pursuant to the WARF License, with a minimum annual royalty payment of $50,000 for 2020, $100,000 for 2021 and $150,000 for 2022 and each calendar year thereafter that the WARF License is in effect. If we or any of our sublicensees contest the validity of any licensed patent, the royalty rate will be doubled during the pendency of such contest and, if the contested patent is found to be valid and would be infringed by us if not for the WARF License, the royalty rate will be tripled for the remaining term of the WARF License. WARF may terminate the WARF License on 30 days’ written notice if we default on the payments of amounts due to WARF or fail to timely submit development reports, actively pursue our development plan or breach any other covenant in the WARF License and fail to remedy such default in 90 days or in the event of certain bankruptcy events involving us. WARF may also terminate the WARF License (i) on 90 days’ notice if we had failed to have commercial sales of one or more FDA-approved products under the WARF License by June 30, 2021 or (ii) if, after royalties earned on sales begin to be paid, such earned royalties cease for more than four calendar quarters. The first commercial sale occurred on December 7, 2020, prior to the June 30, 2021 deadline. The WARF License otherwise expires by its terms on the date that no valid claims on the patents licensed thereunder remain. We expect the latest expiration of a licensed patent to occur in 2030. During the three months ended March 31, 2022 and 2021, $37,500 and $25,000 in royalty fees were incurred related to the WARF License, respectively. During the six months ended March 31, 2022 and 2021, $62,500 and $75,000 in royalty fees were incurred related to the WARF License, respectively. The royalty fees were reflected as a component of cost of product revenue. Mayo Agreement The Company has an exclusive license and development agreement with the Mayo Foundation for Medical Education and Research (“Mayo”) related to certain intellectual property and development services for thin film micro electrode technology (“Mayo Agreement”). If the Company is successful in obtaining regulatory approval, the Company is to pay royalties to Mayo based on a percentage of net sales of products of the licensed technology through the term of the Mayo Agreement, set to expire May 25, 2037. During the three months ended March 31, 2022 and 2021, $1,097 and $547 in royalty fees were incurred related to the Mayo Agreement, respectively. During the six months ended March 31, 2022 and 2021, $1,836 and $2,691 in royalty fees were incurred related to the Mayo Agreement, respectively. The royalty fees were reflected as a component of cost of product revenue. Legal PMT Litigation From time to time, the Company is subject to litigation and claims in the ordinary course of business. On March 29, 2018, the Company was served with a complaint filed by PMT Corporation (“PMT”), the former employer of Mark Christianson, a current Company employee, and Wade Fredrickson, a now former Company employee. The complaint added the Company, NeuroOne, Inc. and Mr. Christianson to its existing lawsuit against Mr. Fredrickson in the Fourth Judicial District Court of the State of Minnesota. In the lawsuit, PMT claims that Mr. Fredrickson and Mr. Christianson, by virtue of their work for the Company and their prior work during employment with PMT, breached their non-competition, non-solicitation and non-disclosure obligations, breached their fiduciary duty obligations, were unjustly enriched, engaged in unfair competition, engaged in a civil conspiracy, tortiously interfered with PMT’s contracts and prospective economic advantage, and breached a covenant of good faith and fair dealing. The complaint purported to attach Mr. Fredrickson’s noncompete agreement as Exhibit A. Against Mr. Fredrickson, PMT also alleged that he intentionally or negligently spoliated evidence, made negligent or fraudulent misrepresentations, misappropriated trade secrets in violation of Minnesota law, and committed the tort of conversion and statutory civil theft. Against the Company and NeuroOne, Inc., PMT alleged that the Company and NeuroOne, Inc. were unjustly enriched and engaged in unfair competition. PMT asked the Court to impose a constructive trust over the shares held by Mr. Fredrickson and Mr. Christianson and to award compensatory damages, equitable relief, punitive damages, attorneys’ fees, costs and interest. On April 18, 2018, Mr. Christianson, the Company and NeuroOne, Inc. filed a motion for dismissal, which was heard by the Court on October 11, 2018. The motion for dismissal stated that: the contract claims against Mr. Christianson fail because his agreement was not supported by consideration; the Minnesota Uniform Trade Secrets Act preempts plaintiff’s claims for unfair competition, civil conspiracy and unjust enrichment; plaintiff fails to state a claim regarding alleged breach of the duties of loyalty and good faith/fair dealing; plaintiff cannot legally obtain a constructive trust; plaintiff has insufficiently pled its tortious interference claims; and Plaintiff has not stated a claim for unfair competition. On January 7, 2019, the judge granted the motion for dismissal with respect to PMT’s claim for breach of the duty of good faith and fair dealing, and denied the motion for dismissal with respect to the other claims presented. In April 2019, PMT served the Company, NeuroOne, Inc. and Christianson with a proposed Second Amended Complaint, which included new claims against the Company and NeuroOne, Inc for tortious interference with contract and tortious interference with prospective business advantage and punitive damages against the Company, NeuroOne Inc. and Christianson. On June 28, 2019, the Company presented evidence indicating that PMT had participated in a fraud on the Court and sought an Order that PMT had waived the attorney client privilege. On July 16, 2019, the defendants served PMT with a joint notice of motion for sanctions seeking a variety of sanctions for litigation misconduct including, but not limited to, dismissal of the case and an award of attorneys’ fees. The Company, NeuroOne Inc and Mr. Christianson further moved for summary judgment on all remaining claims asserted against them as well as for leave to assert counterclaims against PMT for abuse of process. Following hearings on the dispositive motions and defendants’ sanctions motion, the district court granted the Company’s motion for sanctions on April 29, 2020. Additionally, the district court granted the Company’s motion for summary judgment in part with respect to the counts for Christianson’s breach of non-confidentiality agreement, and denied the Company’s motion for summary judgment on all other counts. On August 24, 2020, defendants moved the Court to amend their counterclaims for abuse of process against PMT to add a claim for punitive damages with respect to its conduct pertaining to the Fredrickson noncompete. On October 12, 2020 the Court awarded NeuroOne, Inc. $185,000 in Rule 11 sanctions and Fredrickson $145,000 in Rule 11 sanctions with respect to PMT’s misconduct relating to the Fredrickson noncompete. PMT and its former litigation counsel, Barnes & Thornburg, were jointly and severally liable for these awards, which were paid on December 11, 2020 and have been recognized in other income in the statements of operations. The Court granted NeuroOne, Inc.’s motion to amend to permit its assertion of the right to assert a punitive damages claim against PMT associated with fighting the allegations relating to the Fredrickson noncompete. On May 27, 2021 PMT moved for summary judgment on defendants’ claims for abuse of process and punitive damages, and on August 5, 2021, the district court granted PMT’s motion to dismiss the abuse of process and punitive damage claims. On April 29, 2022, the district court issued an order ruling on several motions brought by the parties to exclude evidence from the trial, granting many of the Company’s requests to exclude certain evidence, and denying PMT’s exclusion requests. Trial has been postponed from December 2021 to August of 2022. The Company intends to continue to defend itself vigorously and to continue to aggressively prosecute its affirmative counterclaim against PMT. The outcome of any claim against the Company by PMT was not estimable as of the issuance of these financial statements. Facility Leases Headquarters Lease On October 7, 2019, the Company entered into a non-cancellable lease agreement (the “Minnesota Lease”) with Biynah Cleveland, LLC, BIP Cleveland, LLC, and Edenvale Investors (together, the “Landlord”) pursuant to which the Company has agreed to lease office space located at 7599 Anagram Drive, Eden Prairie, Minnesota (the “Premises”). The Company took possession of the Premises on November 1, 2019, with the term of the Minnesota Lease ending 65 months after such date, unless terminated earlier (the “Term”). The initial base rent for the Premises is $6,410 per month for the first 17 months, increasing to $7,076 per month by the end of the Term. In addition, as long as the Company is not in default under the Minnesota Lease, the Company shall be entitled to an abatement of its base rent for the first 5 months. The Company will also pay its pro rata share of the Landlord’s annual operating expenses associated with the premises, calculated as set forth in the Minnesota Lease of which the Company is entitled to an abatement of these operating expense for the first 3 months. Los Gatos Lease On July 1, 2021, the Company entered into a non-cancellable facility lease (the “Los Gatos Lease”), pursuant to which the Company agreed to rent office space for its research and development operations located at 718 University Avenue, Suite #111, Los Gatos, California. The term of the Los Gatos Lease is eighteen months. The facility space under the Los Gatos Lease is approximately 1,162 square feet. The Company took possession of the office space on July 2, 2021. The initial monthly rent under the Los Gatos Lease is approximately $4,241. San Jose Lease On December 30, 2020, the Company entered into a non-cancellable lease agreement for short term office space in San Jose, California (the “San Jose Lease”) for a three month initial term. After March 31, 2021, the San Jose Lease was cancellable upon a 30-day notice to the landlord. The Company took possession of the office space on January 1, 2021 and the San Jose Lease was terminated upon the commencement of the Los Gatos Lease discussed above. The base rent under the San Jose Lease was $504 per month. During the three and six months ended March 31, 2022, rent expense associated with the facility leases amounted to $43,085 and $86,130, respectively. During the three and six months ended March 31, 2021, rent expense associated with the facility leases amounted to $31,800 and $61,261, respectively. Supplemental cash flow information related to the operating leases was as follows: For the 2022 2021 Cash paid for amounts included in the measurement of lease liability: Operating cash flows from operating leases $ 64,871 $ 38,462 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ — Supplemental balance sheet information related to the operating leases was as follows: As of As of Right-of-use assets $ 236,043 $ 288,948 Lease liabilities $ 260,669 $ 315,673 Weighted average remaining lease term (years) 2.7 3.1 Weighted average discount rate 6.8 % 6.7 % Maturity of the lease liabilities was as follows: Calendar Year As of 2022 $ 98,785 2023 82,333 2024 84,391 2025 21,227 Total lease payments 286,736 Less imputed interest (26,067 ) Total 260,669 Short-term portion (104,626 ) Long-term portion $ 156,043

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information	6 Months Ended
	Mar. 31, 2022
Supplemental Balance Sheet Information [Abstract]
Supplemental Balance Sheet Information	NOTE 5 – Supplemental Balance Sheet Information Prepaid and Other Assets Prepaid and other assets consisted of the following: As of March 31, 2022 As of September 30, 2021 Prepaid expenses $ 315,099 $ 151,109 Deferred offering costs — 92,934 Total $ 315,099 $ 244,043 Intangibles Intangible assets rollforward is as follows: Useful Life Net Intangibles, September 30, 2021 12-13 years $ 134,207 Less: amortization (11,158 ) Net Intangibles, March 31, 2022 $ 123,049 Amortization expense was $5,579 and $11,158 for the three and six months ended March 31, 2022, respectively, and $5,579 and $11,158 for the three and six months ended March 31, 2021, respectively. Property and Equipment, Net Property and equipment held for use by category are presented in the following table: As of As of Equipment and furniture $ 417,645 $ 311,486 Software 1,895 1,895 Total property and equipment 419,540 313,381 Less accumulated depreciation (132,586 ) (90,052 ) Property and equipment, net $ 286,954 $ 223,329 Depreciation expense was $22,952 and $42,534 for the three months and six months ended March 31, 2022, respectively, and $13,715 and $26,872 for the three and six months ended March 31, 2021, respectively.

Accrued Expenses and Other Liab

Accrued Expenses and Other Liabilities	6 Months Ended
	Mar. 31, 2022
Accrued Expenses and Other Liabilities [Abstract]
Accrued Expenses and Other Liabilities	NOTE 6 - Accrued Expenses and Other Liabilities Accrued expenses consisted of the following at March 31, 2022 and September 30, 2021: As of As of Accrued payroll $ 188,735 $ 376,236 Operating lease liability, short term 104,626 112,778 Royalty Payments 38,598 72,083 Other 30,000 83,152 Total $ 361,959 $ 644,249

Zimmer Development Agreement

Zimmer Development Agreement	6 Months Ended
	Mar. 31, 2022
Zimmer Development Agreement [Abstract]
Zimmer Development Agreement	NOTE 7 – Zimmer Development Agreement On July 20, 2020, the Company entered into an exclusive development and distribution agreement (the “Development Agreement”) with Zimmer, Inc. (“Zimmer”), pursuant to which the Company granted Zimmer exclusive global rights to distribute the Strip/Grid Products and electrode cable assembly products (the “Electrode Cable Assembly Products”). Additionally, the Company granted Zimmer the exclusive right and license to distribute certain depth electrodes developed by the Company (“SEEG Products”, and together with the Strip/Grid Products and Electrode Cable Assembly Products, the “Products”). The parties have agreed to collaborate with respect to development activities under the Development Agreement through a joint development committee composed of an equal number of representatives of Zimmer and the Company. Under the terms of the Development Agreement, the Company is responsible for all costs and expenses related to developing the Products, and Zimmer is responsible for all costs and expenses related to the commercialization of the Products. In addition to the Development Agreement, Zimmer and the Company have entered into a Manufacturing and Supply Agreement (the “MS Agreement”) and a supplier quality agreement (the “Quality Agreement”) with respect to the manufacturing and supply of the Products. Except as otherwise provided in the Development Agreement, the Company is responsible for performing all development activities, including non-clinical and clinical studies directed at obtaining regulatory approval of each Product. Zimmer has agreed to use commercially reasonable efforts to promote, market and sell each Product following the “Product Availability Date” (as defined in the Development Agreement) for such Product. Pursuant to the Development Agreement, Zimmer made an upfront initial exclusivity fee payment of $2.0 million (the “Initial Exclusivity Fee”) to the Company. Except where Zimmer timely delivers a Design Modification Notice pursuant to Section 1.2, if one or more of the events set forth below occurs on or before the deadline indicated for such event and the Product Availability Date (as defined in the Development Agreement) for the SEEG Products occurs on or before June 30, 2021, then the Company shall receive the additional amount indicated for such event as part of the SEEG Exclusivity Maintenance Fee: ● Design freeze for the SEEG Products by December 15, 2020 - $500,000 ● Acceptance of all Deliverables for SEEG Products under the Development Plan (as defined in the Development Agreement) by April 30, 2021 - $500,000 If Zimmer timely delivers a Design Modification Notice to the Company under the Development Agreement, and one or more of the events set forth below occurs on or before the deadline indicated for such event and the Product Availability Date for the SEEG Products occurs on or before June 30, 2021, then the Company shall receive the additional amount indicated for such event as part of the SEEG Exclusivity Maintenance Fee: ● Acceptance of all Deliverables for SEEG Products under the Development Plan other than the Modified Connector by April 30, 2021 - $500,000 ● Acceptance of all Deliverables for SEEG Products under the Development Plan, including the Modified Connector by September 30, 2021 - $500,000 For purposes of the Development Agreement, each of the foregoing events shall have occurred only if the Company has demonstrated the achievement of the event to Zimmer’s reasonable satisfaction. Notwithstanding the foregoing, the events in Sections 6.1(c)(ii), (iii) and (iv) of the Development Agreement shall not be deemed to be met if FDA Approval for the SEEG Products is not received prior to the applicable deadline. In order to maintain the exclusivity of the SEEG Distribution License, Zimmer must pay the SEEG Exclusivity Maintenance Fee to the Company, on or prior to the SEEG Exclusivity Confirmation Date, in immediately available funds as follows: ● if the Product Availability Date for the SEEG Products occurs on or before June 30, 2021, then $3,000,000, plus the amount of any Interim Fee Bonuses earned pursuant to Section 6.1(c), including any such Interim Fee Bonus earned after June 30, 2021 pursuant to Section 6.1(c)(iv) following the delivery of a Design Modification Notice; ● if the Product Availability Date for the SEEG Products occurs after June 30, 2021, but on or before September 30, 2021, then $3,000,000, plus if Zimmer timely issues a Design A-9 Modification Notice, any Interim Fee Bonus earned pursuant to Section 6.1(c)(iv); ● if the Product Availability Date for the SEEG Products occurs after September 30, 2021, but on or before December 31, 2021, then $2,500,000; and ● if the Product Availability Date for the SEEG Products occurs after December 31, 2021, then $1,500,000. The Product Availability Date for the SEEG Products has not yet occurred. Notwithstanding any other provision of the Development Agreement, if the Product Availability Date for the SEEG Products has not occurred on or before June 30, 2022, Zimmer shall have the right to terminate the SEEG Distribution License by delivering written notice to the Company to that effect and, upon delivery of such notice, Zimmer shall be relieved of all of its obligations hereunder with respect to SEEG Products, including any obligation to pay the SEEG Exclusivity Maintenance Fee or to purchase, market, distribute or sell any SEEG Products. The Initial Exclusivity Fee and the SEEG Exclusivity Maintenance Fee (including any Interim Fee Bonus(es)), once paid, are non-refundable. The Development Agreement will expire on the tenth anniversary of the date of the first commercial sale of the last of the Products to achieve a first commercial sale, unless terminated earlier pursuant to its terms. Either party may terminate the Development Agreement (x) with written notice for the other party’s material breach following a cure period or (y) if the other party becomes subject to certain insolvency proceedings. In addition, Zimmer may terminate the Development Agreement for any reason with 90 days’ written notice, and the Company may terminate the Development Agreement if Zimmer acquires or directly or indirectly owns a controlling interest in certain competitors of the Company. At inception of the Zimmer Development Agreement through March 31, 2022, the Company had identified three performance obligations under the Zimmer Development Agreement and consisted of the following: (1) the Company obligation to grant Zimmer access to its intellectual property; (2) complete SEEG Product development; and (3) complete Strip/Grid Product development. Accordingly, the Company recognized revenue in the amount of zero and $20,113 during the three month periods ended March 31, 2022 and 2021, respectively, and $6,374 and $42,387 during the six month periods ending March 31, 2022 and 2021, respectively, in connection with the Initial Exclusivity Fee payment. The Zimmer Development Agreement was accounted for under the provisions of ASC 606, Revenue from Contracts with Customers. A reconciliation of the closing balance of deferred revenue related to the Zimmer Development Agreement is as follows during the six months ended as of March 31, 2022 and 2021: 2022 2021 Deferred Revenue Balance as of beginning of period – September 30 $ 8,622 $ 73,434 Revenue recognized (6,374 ) (42,387 ) Balance as of end of period – March 31 $ 2,248 $ 31,047 The remaining performance obligations reflected in deferred revenue as of March 31, 2022 are expected to be completed in the second half of fiscal year 2022. Product Revenue Product revenue related to its Strip/Grid Products, SEEG Products and Electrode Cable Assembly Products. Product revenue recognized during the three and six month periods ended March 31, 2022 was $36,584 and $70,332, respectively. Product revenue recognized during the three and six month periods ended March 31, 2021 was $18,240 and $89,714, respectively. Advertising Expense Advertising expense is charged to selling, general and administrative expenses during the period that it is incurred. Total advertising expense amounted to $113,197 and $174,532 for the three and six month periods ended March 31, 2022, respectively. Total advertising expense amounted to $113,140 and $142,147 for the three and six month periods ended March 31, 2021, respectively.

Convertible Promissory Notes an

Convertible Promissory Notes and Warrant Agreements	6 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Convertible Promissory Notes and Warrant Agreements	NOTE 8 - Convertible Promissory Notes and Warrant Agreements 2019 Paulson Convertible Note Offering On November 1, 2019, the Company entered into a subscription agreement with certain accredited investors, pursuant to which the Company, in a private placement (the “2019 Paulson Private Placement”), agreed to issue and sell to the investors 13% convertible promissory notes (each, a “2019 Paulson Note” and collectively, the “2019 Paulson Notes”) and warrants (each, a “2019 Paulson Warrant” and collectively, the “2019 Paulson Warrants”) to purchase shares of the Company’s common stock. The initial closing of the 2019 Paulson Private Placement was consummated on November 1, 2019, and, on that date and through December 3, 2019, the Company issued the 2019 Paulson Notes in an aggregate principal amount of $3,234,800 to the subscribers for gross proceeds equalling the principal amount. The 2019 Paulson Private Placement terminated on December 3, 2019. On April 24, 2020, the Company and holders of a majority in aggregate principal amount of the 2019 Paulson Notes entered into an amendment to the 2019 Paulson Notes (the “Second 2019 Paulson Notes Amendment”) to, among other things: i. Extended the Maturity Date – ii. Revised Optional Conversion Terms – iii. Revise the Registration Date – The 2019 Paulson Notes had a fixed interest rate of 13% per annum and required the Company to repay the principal and accrued and unpaid interest thereon on November 1, 2020 (the “Maturity Date”). Interest on principal amounted to $5,701 during the six month period ended March 31, 2021 and was recorded under the net valuation change of instruments measured at fair value in the condensed statements of operations. The 2019 Paulson Notes were not outstanding during the six month period ended March 31, 2022. The Company elected to account for the 2019 Paulson Notes on a fair value basis under ASC 825 to comprehensively value and streamline the accounting for the embedded conversion options. Subsequent to issuance, the fair value change of the Paulson Notes amounted to a benefit of $(1,974) during the six months ended March 31, 2021 and was recorded under the net valuation change of instruments measured at fair value in the condensed statements of operations. Each 2019 Paulson Warrant grants the holder the option to purchase the number of shares of common stock equal to (i) 0.5 multiplied by (ii) the principal amount of such subscriber’s 2019 Paulson Notes divided by 5.61, with an exercise price per share equal to $5.61. As of the final closing on December 3, 2019, the Company issued 2019 Paulson Warrants exercisable for 288,305 shares of common stock in connection with all closings of the 2019 Paulson Private Placement. The 2019 Paulson Warrants are immediately exercisable and expire on November 1, 2022. The exercise price is subject to adjustment in the event of any stock dividends or splits, reverse stock split, recapitalization, reorganization or similar transaction, as described therein. The 2019 Paulson warrants were deemed to be a free-standing instrument and were accounted for as equity. Given that the fair value of the 2019 Paulson Notes exceeded the proceeds received at issuance, there was no value attributed to the 2019 Paulson Warrants in the condensed financial statements. Issuance costs during the six month period ended March 31, 2021 in connection with the 2019 Paulson Private Placement were $3,053 and related to legal costs. The issuance costs were recorded as a component of interest in the accompanying condensed statements of operations. During the first quarter of fiscal year 2021, the remaining holders of the 2019 Paulson Notes elected to convert the remaining outstanding principal and accrued and unpaid interest in the amount of $615,159 into 292,754 shares of common stock.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	NOTE 9 – Stock-Based Compensation During the three and six month periods ended March 31, 2022 and 2021, stock-based compensation expense related to stock-based awards was included in general and administrative and research and development costs as follows in the accompanying condensed statements of operations. Three Months Ended Six Months Ended March 31, March 31, 2022 2021 2022 2021 General and administrative $ 194,874 $ 253,586 $ 357,875 $ 435,379 Research and development 37,842 72,773 77,913 136,809 Total stock-based compensation expense $ 232,716 $ 326,359 $ 435,788 $ 572,188 Stock Options During the three month periods ended March 31, 2022 and 2021, under the 2017 Equity Incentive Plan (the “2017 Plan”), the Company granted 60,000 and 580,002 stock options, respectively, to its officers and employees. During the six month periods ended March 31, 2022 and 2021, the Company granted 62,000 and 621,671, respectively, to its officers, employees and consultants. Vesting generally occurs over an immediate to 48 month period based on a time of service condition although vesting acceleration is provided under one grant in the event that a certain milestone is met. The grant date fair value of the grants issued during the three month periods ended March 31, 2022 and 2021 was $1.00 and $3.02 per share, respectively. The grant date fair value of the grants issued during the six month periods ended March 31, 2022 and 2021 was $1.03 and $2.92 per share, respectively. The total expense for the three months ended March 31, 2022 and 2021 related to stock options was $145,421 and $217,466, respectively. The total expense for the six months ended March 31, 2022 and 2021 related to stock options was $307,782 and $317,612, respectively. The total number of stock options outstanding as of March 31, 2022 and September 30, 2021 was 1,162,059 and 1,122,560, respectively. The weighted-average assumptions used in the Black-Scholes option-pricing model are as follows for the stock options granted during the three and six month period ended March 31, 2022 and 2021: Three Months Ended Six Months Ended March 31, March 31, 2022 2021 2022 2021 Expected stock price volatility 53.5 % 56.0 % 53.5 % 55.9 % Expected life of options (years) 6.1 6.1 6.1 6.0 Expected dividend yield 0 % 0 % 0 % 0 % Risk free interest rate 1.6 % 0.6 % 1.6 % 0.6 % During the three month periods ended March 31, 2022 and 2021, 182,217 and 34,752 stock options vested, respectively, and 9,167 and 10,146 stock options were forfeited during these periods, respectively. During the six month periods ended March 31, 2022 and 2021, 201,060 and 106,527 stock options vested, respectively and 22,501 and 10,146 stock options were forfeited during these periods, respectively. During the three and six months ended March 31, 2021, 758 stock options were exercised with an intrinsic value of $955. No options were exercised during the three and six months ended March 31, 2022. Restricted Stock Units During the three and six months ended March 31, 2022, the Company granted an aggregate of 355,950 restricted stock units (“RSUs”) to certain officers and employees under the 2017 Plan. The weighted average grant date fair value of the RSU granted during the three and six months ended March 31, 2022 was $2.10 per unit. The RSUs vest over a three year period with 50 percent vesting on the first anniversary of the grant date and the remaining RSUs vesting in equal monthly installments on the last day of each month over 24 months, subject to the recipient’s continued service on such dates. No RSUs were granted during the three and six month periods ended March 31, 2021. During the three months ended March 31, 2022 and 2021, 3,444 and 7,992 RSUs vested, respectively, and no RSUs were forfeited during these periods. During the six months ended March 31, 2022 and 2021, 9,088 and 16,376 RSUs vested, respectively, and no RSUs were forfeited during these periods. The total expense for the three months ended March 31, 2022 and 2021 related to these RSUs was $87,295 and $40,493, respectively. The total expense for the six months ended March 31, 2022 and 2021 related to these RSUs was $128,006 and $83,576, respectively. Other Stock-Based Awards In August 2020, an additional consulting agreement was executed whereby 40,000 shares of common stock were issued, subject to Company repurchase. The stock award under the agreement vested over a six-month period. As of March 31, 2021, 40,000 shares were vested under this agreement of which 13,334 and 33,334 shares vested during the three and six month periods ended March 31, 2021, respectively. Compensation expense related to the stock award granted under this consulting agreement amounted to $68,400 and $171,000 for the three and six months ended March 31, 2021, respectively, and was included in the total stock-based compensation expense. No other stock-based awards were issued during the three and six month periods ended March 31, 2022 and no expense associated with stock awards was recorded during the three and six months ended March 31, 2022. Inducement Plan On October 4, 2021, the Company adopted the NeuroOne Medical Technologies Corporation 2021 Inducement Plan (the “Inducement Plan”), pursuant to which the Company reserved 420,350 shares of its common stock to be used exclusively for grants of awards to individuals who were not previously employees or directors of the Company, as an inducement material to the individual’s entry into employment with the Company within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules. The Inducement Plan was approved by the Company’s Board of Directors without stockholder approval in accordance with such rule. 2017 Plan Evergreen Provision Under the 2017 Plan, the shares reserved automatically increase on January 1st of each year, for a period of not more than ten years from the date the 2017 Plan is approved by the stockholders of the Company, commencing on January 1, 2019 and ending on (and including) January 1, 2027, to an amount equal to 13% of the fully-diluted shares outstanding as of December 31st of the preceding calendar year. Notwithstanding the foregoing, the Board may act prior to January 1st of a given year to provide that there will be no January 1st increase in the share reserve for such year or that the increase in the share reserve for such year will be a lesser number of shares of common stock than would otherwise occur pursuant to the preceding sentence. “Fully Diluted Shares” as of a date means an amount equal to the number of shares of common stock (i) outstanding and (ii) issuable upon exercise, conversion or settlement of outstanding awards under the 2017 Plan and any other outstanding options, warrants or other securities of the Company that are (directly or indirectly) convertible or exchangeable into or exercisable for shares of common stock, in each case as of the close of business of the Company on December 31 of the preceding calendar year. Effective January 1, 2022, 1,614,538 shares were added to the 2017 Plan as a result of the evergreen provision. General As of March 31, 2022, 1,880,777 shares were available in the aggregate for future issuance under the 2017 Plan and Inducement Plan. No shares were available for future issuance under the 2016 Equity Incentive Plan. Unrecognized stock-based compensation was $2,035,046 as of March 31, 2022. The unrecognized share-based expense is expected to be recognized over a weighted average period of 2.6 years.

Concentrations

Concentrations	6 Months Ended
	Mar. 31, 2022
Risks and Uncertainties [Abstract]
Concentrations	NOTE 10 – Concentrations Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash. The Company’s cash is held by a network of financial institutions in the United States. Amounts on deposit may at times exceed federally insured limits. The Company has not experienced any losses on its deposits since inception, and management believes that minimal credit risk exists with respect to these financial institutions. As of March 31, 2022, the Company had no deposits in excess of federally insured amounts. Revenue One customer accounts for all of the Company’s product and collaborations revenue. Supplier concentration One contract manufacturer produces all of the Company’s Strip/Grid Products and SEEG Products.

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 11 – Income Taxes The effective tax rate for the three and six months ended March 31, 2022 and 2021 was zero percent. As a result of the analysis of all available evidence as of March 31, 2022 and September 30, 2021, the Company recorded a full valuation allowance on its net deferred tax assets. Consequently, the Company reported no income tax benefit during the three and six months ended March 31, 2022 and 2021. If the Company’s assumptions change and the Company believes that it will be able to realize these deferred tax assets, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets will be recognized as a reduction of future income tax expense. If the assumptions do not change, each period the Company could record an additional valuation allowance on any increases in the deferred tax assets.

Stockholders_ Equity

Stockholders’ Equity	6 Months Ended
	Mar. 31, 2022
Stockholders' Equity Note [Abstract]
Stockholders’ Equity	NOTE 12 – Stockholders’ Equity Public Offering On October 13, 2021, the Company, entered into an Underwriting Agreement (the “Underwriting Agreement”) with Craig-Hallum Capital Group LLC, as underwriter (the “Underwriter”), relating to the issuance and sale of 3,750,000 shares of the Company’s common stock at a price to the public of $3.20 per share. In addition, under the terms of the Underwriting Agreement, the Company granted the Underwriter an option, exercisable for 30 days, to purchase up to an additional 562,500 shares of common stock on the same terms. The base offering closed on October 15, 2021, and the sale of 422,057 shares of common stock subject to the Underwriter’s overallotment option closed on November 15, 2021. The gross proceeds to the Company from this offering were approximately $13.4 million prior to deducting underwriting discounts and other offering expenses payable by the Company in the amount of approximately $1.4 million in the aggregate. 2021 Private Placement On January 12, 2021, the Company entered into a Common Stock and Warrant Purchase Agreement with certain accredited investors (the “Purchasers”), pursuant to which the Company agreed to issue and sell an aggregate of 4,166,682 shares common stock, and warrants to purchase an aggregate of 4,166,682 shares of Common Stock (the “2021 Warrants”) at an aggregate purchase price of $3.00 per share of Common Stock and corresponding warrant, resulting in total gross proceeds of $12.5 million before deducting placement agent fees and estimated offering expenses. The 2021 Warrants have an initial exercise price of $5.25 per share. The 2021 Warrants are exercisable beginning on the date of issuance and will expire on the fifth anniversary of such date. The 2021 Private Placement closed on January 14, 2021. Warrant Activity and Summary The following table summarizes warrant activity during the six month period ended March 31, 2022: Exercise Weighted Weighted Warrants Price Per Exercise Term (years) Outstanding and exercisable at September 30, 2021 7,503,808 $ 5.25- $9.00 $ 6.06 3.23 Issued — $ — $ — — Exercised — $ — $ — — Forfeited/Expired (750,364 ) $ 5.40 $ 5.40 — Outstanding and exercisable at March 31, 2022 6,753,444 $ 5.25-$9.00 $ 6.14 3.07

Deferred Contribution Plan

Deferred Contribution Plan	6 Months Ended
	Mar. 31, 2022
Defined Contribution Plan [Abstract]
Deferred Contribution Plan	NOTE 13 – Deferred Contribution Plan The Company has a 401(k) defined contribution plan (the “401K Plan”) for all employees over age 21. Employees can defer up to 100% of their compensation through payroll withholdings into the 401K Plan subject to federal law limits. The Company may match 100% of deferrals up to 3% of one’s contributions. The Company’s matching contributions to employee deferrals are discretionary. The Company may also make discretionary profit sharing contributions under the 401K Plan in the future, but it has not done so through March 31, 2022. Employee contributions and any employer matching contributions made to satisfy certain non-discrimination tests required by the Internal Revenue Code are 100% vested upon contribution. Discretionary employer matches to employee deferrals vest over a six year period beginning on the second anniversary of an employee’s date of hire. Discretionary profit sharing contributions vest over a five year period beginning on the first anniversary of an employee’s date of hire. The amount of matching contributions to the 401K Plan to satisfy certain non-discrimination tests was $30,697 and $14,803 during the three and six month periods ending March 31, 2022 and 2021, respectively.

Subsequent Events

Subsequent Events	6 Months Ended
	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	NOTE 14 – Subsequent Events TBD

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	6 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Management’s Use of Estimates	Management’s Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, primarily in connection with the convertible promissory notes when outstanding, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition	Revenue Recognition The Company entered into a development and distribution agreement which has current and future revenue recognition implications. See “Note 7 – Zimmer Development Agreement”. Product Revenue Revenues from product sales are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. At the inception of each contract, performance obligations are identified and the total transaction price is allocated to the performance obligations. The Company commenced commercial sales of cEEG strip/grid and electrode cable assembly products beginning in the first quarter of fiscal year 2021. The Company sold, on a limited application basis for design verification, sEEG depth electrode products for non-human use beginning in late fiscal year 2021. Cost of Product Revenue Cost of product revenue consists of the manufacturing and materials costs incurred by the Company’s third-party contract manufacturer in connection with cEEG strip/grid and sEEG depth electrode products, and outside supplier materials costs in connection with the electrode cable assembly products. In addition, cost of product revenue includes royalty fees incurred in connection with the Company’s license agreements. Collaborations Revenue In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC Topic 606. Performance obligations may include license rights, development services, and services associated with regulatory submission and approval processes. Significant management judgment is required to determine the level of effort required under an arrangement and the period over which the Company expects to complete its performance obligations under the arrangement. If the Company cannot reasonably estimate when its performance obligations are either completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price of each performance obligation identified in the contract. The Company uses key assumptions to determine the stand-alone selling price, which may include forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success. The Company allocates the total transaction price to each performance obligation based on the estimated relative standalone selling prices of the promised goods or service underlying each performance obligation. Licenses of intellectual property Milestone payments Royalties
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s accounting for fair value measurements of assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring or nonrecurring basis adheres to the Financial Accounting Standards Board (“FASB”) fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ● Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the Company at the measurement date. ● Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ● Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. As of March 31, 2022 and September 30, 2021, the fair values of cash, accounts receivable, inventory, prepaid expenses, other assets, accounts payable and accrued expenses approximated their carrying values because of the short-term nature of these assets or liabilities. The fair value of the convertible notes while outstanding were based on both the fair value of our common stock, discount associated with the embedded redemption features, and cash flow models discounted at current implied market rates evidenced in recent arms-length transactions representing expected returns by market participants for similar instruments and are based on Level 3 inputs. There were no transfers between fair value hierarchy levels during the six months ended March 31, 2022 and 2021. The following table provides a roll-forward of the convertible notes at fair value on a recurring basis using unobservable level 3 inputs for the six months ended March 31, 2021. There were no convertible notes outstanding during the six months ended March 31, 2022. 2021 Convertible notes Balance as of beginning of period – September 30, 2020 $ 1,007,206 Change in fair value including accrued interest (1,974 ) Conversion of convertible promissory notes to common stock (1,005,232 ) Balance as of end of period – March 31, 2021 $ —
Intellectual Property	Intellectual Property The Company has entered into two licensing agreements with major research institutions, which allow for access to certain patented technology and know-how. Payments under those agreements are capitalized and amortized to general and administrative expense over the expected useful life of the acquired technology.
Property and Equipment	Property and Equipment Property and equipment is recorded at cost and reduced by accumulated depreciation. Depreciation expense is recognized over the estimated useful lives of the assets using the straight-line method. The estimated useful life for equipment and furniture ranges from three to seven years and three years for software. Tangible assets acquired for research and development activities and that have alternative use are capitalized over the useful life of the acquired asset. Estimated useful lives are periodically reviewed, and, when appropriate, changes are made prospectively. Software purchased for internal use consists primarily of amounts paid for perpetual licenses to third-party software providers and installation costs. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts. Maintenance and repairs are charged directly to expense as incurred.
Allowances for Doubtful Accounts	Allowances for Doubtful Accounts The Company records a provision for doubtful accounts, when appropriate, based on historical experience and a detailed assessment of the collectability of its accounts receivable. In estimating the allowance for doubtful accounts, the Company considers, among other factors, the aging of the accounts receivable, its historical write-offs, the credit worthiness of each customer, and general economic conditions. Account balances are charged off against the allowance when the Company believes that it is probable that the receivable will not be recovered. Actual write-offs may be in excess of the Company’s estimated allowance.
Inventories	Inventories Inventories are stated at the lower of cost (using the first-in, first-out “FIFO” method) or net realizable value. The Company calculates inventory valuation adjustments for excess and obsolete inventory, when appropriate, based on current inventory levels, movement, expected useful lives, and estimated future demand of the products and spare parts. The Company’s inventory is currently comprised of cEEG strip/grid, sEEG depth electrode and electrode cable assembly finished good products and related component parts. The strip/ grid and depth electrode products are produced by a third-party contract manufacturer and the electrode cable assembly products are obtained from outside suppliers.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company evaluates its long-lived assets, which consist of licensed intellectual property and property and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. The Company assesses the recoverability of long-lived assets by determining whether or not the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset.
Research and Development Costs	Research and Development Costs Research and development costs are charged to expense as incurred. Research and development expenses may include costs incurred in performing research and development activities, including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted services, license fees, and other external costs. Non-refundable advance payments for goods and services that will be used in future research and development activities are expensed when the activity is performed or when the goods have been received, rather than when payment is made, in accordance with Accounting Standards Codification (ASC) 730, Research and Development
Selling, General and Administrative	Selling, General and Administrative Selling, general and administrative expenses consist primarily of personnel-related costs including stock-based compensation for personnel in functions not directly associated with research and development activities. Other significant costs include legal fees relating to corporate matters, intellectual property costs, professional fees for consultants assisting with regulatory, clinical, product development, financial matters and sales and marketing in connection with the commercial sale of cEEG strip/grid, sEEG depth electrode and electrode cable assembly products.
Income Taxes	Income Taxes For the Company, income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax base and operating loss and tax credit carryforwards. 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. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized.
Net Loss Per Share	Net Loss Per Share For the Company, basic loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted earnings or loss per share of common stock is computed similarly to basic earnings or loss per share except the weighted average shares outstanding are increased to include additional shares from the assumed exercise of any common stock equivalents, if dilutive. The Company’s warrants, stock options, and restricted stock units while outstanding are considered common stock equivalents for this purpose. Diluted earnings is computed utilizing the treasury method for the warrants, stock options and restricted stock units. No incremental common stock equivalents were included in calculating diluted loss per share because such inclusion would be anti-dilutive given the net loss reported for the three and six months ended March 31, 2022 and 2021. The following potential common shares were not considered in the computation of diluted net loss per share as their effect would have been anti-dilutive for the three and six months ended March 31, 2022 and 2021: 2022 2021 Warrants 6,753,444 7,514,949 Stock options 1,162,059 1,103,609 Restricted stock units 359,394 10,326
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “ Financial Instruments – Credit Losses” In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) which amends the existing guidance relating to the accounting for income taxes. This ASU is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of accounting for income taxes and to improve the consistent application of GAAP for other areas of accounting for income taxes by clarifying and amending existing guidance. The ASU is effective for fiscal years beginning after December 15, 2020. The Company adopted the new guidance on October 1, 2021 and the adoption of this new guidance did not have a material impact on the Company’s financial statements. In August 2020, FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which, among other things, provides guidance on how to account for contracts on an entity’s own equity. This ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, this ASU modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. The amendments in this ASU are effective for smaller reporting companies as defined by the SEC for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of ASU 2020-06 on its financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities about Government Assistance,

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Schedule of convertible notes at fair value on a recurring basis using unobservable level 3 inputs	2021 Convertible notes Balance as of beginning of period – September 30, 2020 $ 1,007,206 Change in fair value including accrued interest (1,974 ) Conversion of convertible promissory notes to common stock (1,005,232 ) Balance as of end of period – March 31, 2021 $ —
Schedule of computation of diluted net loss per share	2022 2021 Warrants 6,753,444 7,514,949 Stock options 1,162,059 1,103,609 Restricted stock units 359,394 10,326

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of supplemental cash flow information related to the operating lease	For the 2022 2021 Cash paid for amounts included in the measurement of lease liability: Operating cash flows from operating leases $ 64,871 $ 38,462 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ —
Schedule of supplemental balance sheet information related to the operating lease	As of As of Right-of-use assets $ 236,043 $ 288,948 Lease liabilities $ 260,669 $ 315,673 Weighted average remaining lease term (years) 2.7 3.1 Weighted average discount rate 6.8 % 6.7 %
Schedule of maturity of the lease liability	Calendar Year As of 2022 $ 98,785 2023 82,333 2024 84,391 2025 21,227 Total lease payments 286,736 Less imputed interest (26,067 ) Total 260,669 Short-term portion (104,626 ) Long-term portion $ 156,043

Supplemental Balance Sheet In_2

Supplemental Balance Sheet Information (Tables)	6 Months Ended
	Mar. 31, 2022
Supplemental Balance Sheet Information [Abstract]
Schedule of Prepaid and other assets	As of March 31, 2022 As of September 30, 2021 Prepaid expenses $ 315,099 $ 151,109 Deferred offering costs — 92,934 Total $ 315,099 $ 244,043
Schedule of intangible assets	Useful Life Net Intangibles, September 30, 2021 12-13 years $ 134,207 Less: amortization (11,158 ) Net Intangibles, March 31, 2022 $ 123,049
Schedule of property and equipment	As of As of Equipment and furniture $ 417,645 $ 311,486 Software 1,895 1,895 Total property and equipment 419,540 313,381 Less accumulated depreciation (132,586 ) (90,052 ) Property and equipment, net $ 286,954 $ 223,329

Accrued Expenses and Other Li_2

Accrued Expenses and Other Liabilities (Tables)	6 Months Ended
	Mar. 31, 2022
Accrued Expenses and Other Liabilities [Abstract]
Schedule of accrued expenses	As of As of Accrued payroll $ 188,735 $ 376,236 Operating lease liability, short term 104,626 112,778 Royalty Payments 38,598 72,083 Other 30,000 83,152 Total $ 361,959 $ 644,249

Zimmer Development Agreement (T

Zimmer Development Agreement (Tables)	6 Months Ended
	Mar. 31, 2022
Zimmer Development Agreement [Abstract]
Schedule of deferred revenue	2022 2021 Deferred Revenue Balance as of beginning of period – September 30 $ 8,622 $ 73,434 Revenue recognized (6,374 ) (42,387 ) Balance as of end of period – March 31 $ 2,248 $ 31,047

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of stock-based compensation expense	Three Months Ended Six Months Ended March 31, March 31, 2022 2021 2022 2021 General and administrative $ 194,874 $ 253,586 $ 357,875 $ 435,379 Research and development 37,842 72,773 77,913 136,809 Total stock-based compensation expense $ 232,716 $ 326,359 $ 435,788 $ 572,188
Schedule of weighted-average assumptions used in the Black-Scholes option-pricing model	Three Months Ended Six Months Ended March 31, March 31, 2022 2021 2022 2021 Expected stock price volatility 53.5 % 56.0 % 53.5 % 55.9 % Expected life of options (years) 6.1 6.1 6.1 6.0 Expected dividend yield 0 % 0 % 0 % 0 % Risk free interest rate 1.6 % 0.6 % 1.6 % 0.6 %

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	6 Months Ended
	Mar. 31, 2022
Stockholders' Equity Note [Abstract]
Schedule of warrant activity	Exercise Weighted Weighted Warrants Price Per Exercise Term (years) Outstanding and exercisable at September 30, 2021 7,503,808 $ 5.25- $9.00 $ 6.06 3.23 Issued — $ — $ — — Exercised — $ — $ — — Forfeited/Expired (750,364 ) $ 5.40 $ 5.40 — Outstanding and exercisable at March 31, 2022 6,753,444 $ 5.25-$9.00 $ 6.14 3.07

Going Concern (Details)

Going Concern (Details) $ in Millions	Mar. 31, 2022USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 46.7

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	6 Months Ended
	Mar. 31, 2022
Summary of Significant Accounting Policies (Details) [Line Items]
Number of licensing agreements	2
Equipment and Furniture [Member] | Minimum [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Estimated useful life	3 years
Equipment and Furniture [Member] | Maximum [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Estimated useful life	7 years
Software [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Estimated useful life	3 years

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - Schedule of convertible notes at fair value on a recurring basis using unobservable level 3 inputs	6 Months Ended
	Mar. 31, 2021USD ($)
Convertible notes
Balance as of beginning of period	$ 1,007,206
Change in fair value including accrued interest	(1,974)
Conversion of convertible promissory notes to common stock	(1,005,232)
Balance as of end of period

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details) - Schedule of computation of diluted net loss per share - shares	3 Months Ended	6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Schedule of computation of diluted net loss per share [Abstract]
Warrants	6,753,444	7,514,949
Stock options	1,162,059	1,103,609
Restricted stock units	359,394	10,326

Commitments and Contingencies_2

Commitments and Contingencies (Details)	Jul. 02, 2021USD ($)ft²	Oct. 12, 2020USD ($)	Dec. 31, 2020USD ($)	Mar. 31, 2022USD ($)	Mar. 31, 2021USD ($)	Mar. 31, 2022USD ($)	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)
Commitments and Contingencies (Details) [Line Items]
Royalty payments 2020								$ 50,000
Royalty payments 2021					$ 100,000		$ 100,000
Royalty payments 2022				$ 150,000		$ 150,000
Royalty fees				37,500	25,000	$ 62,500	75,000
Court awarded		$ 185,000
Facility Lease agreement, description						On October 7, 2019, the Company entered into a non-cancellable lease agreement (the “Minnesota Lease”) with Biynah Cleveland, LLC, BIP Cleveland, LLC, and Edenvale Investors (together, the “Landlord”) pursuant to which the Company has agreed to lease office space located at 7599 Anagram Drive, Eden Prairie, Minnesota (the “Premises”). The Company took possession of the Premises on November 1, 2019, with the term of the Minnesota Lease ending 65 months after such date, unless terminated earlier (the “Term”). The initial base rent for the Premises is $6,410 per month for the first 17 months, increasing to $7,076 per month by the end of the Term. In addition, as long as the Company is not in default under the Minnesota Lease, the Company shall be entitled to an abatement of its base rent for the first 5 months. The Company will also pay its pro rata share of the Landlord’s annual operating expenses associated with the premises, calculated as set forth in the Minnesota Lease of which the Company is entitled to an abatement of these operating expense for the first 3 months.
Lease space (in Square Feet) | ft²	1,162
Lease rental expense	$ 4,241
Monthly lease rent			$ 504
Rent expense				43,085		$ 86,130
San Jose Lease [Member]
Commitments and Contingencies (Details) [Line Items]
Rent expense					31,800		61,261
Wade Fredrickson [Member]
Commitments and Contingencies (Details) [Line Items]
Court awarded		$ 145,000
Mayo Agreement [Member]
Commitments and Contingencies (Details) [Line Items]
Royalty fees				$ 1,097	$ 547	$ 1,836	$ 2,691

Commitments and Contingencies_3

Commitments and Contingencies (Details) - Schedule of supplemental cash flow information related to the operating lease - USD ($)	6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash paid for amounts included in the measurement of lease liability:
Operating cash flows from operating leases	$ 64,871	$ 38,462
Right-of-use assets obtained in exchange for lease obligations:
Operating leases

Commitments and Contingencies_4

Commitments and Contingencies (Details) - Schedule of supplemental balance sheet information related to the operating lease - USD ($)	Mar. 31, 2022	Sep. 30, 2021
Schedule of supplemental balance sheet information related to the operating lease [Abstract]
Right-of-use assets	$ 236,043	$ 288,948
Lease liabilities	$ 260,669	$ 315,673
Weighted average remaining lease term (years)	2 years 8 months 12 days	3 years 1 month 6 days
Weighted average discount rate	6.80%	6.70%

Commitments and Contingencies_5

Commitments and Contingencies (Details) - Schedule of maturity of the lease liability	Mar. 31, 2022USD ($)
Schedule of maturity of the lease liability [Abstract]
2022	$ 98,785
2023	82,333
2024	84,391
2025	21,227
Total lease payments	286,736
Less imputed interest	(26,067)
Total	260,669
Short-term portion	(104,626)
Long-term portion	$ 156,043

Supplemental Balance Sheet In_3

Supplemental Balance Sheet Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Supplemental Balance Sheet Information [Abstract]
Amortization expense	$ 5,579	$ 5,579	$ 11,158	$ 11,158
Depreciation expense	$ 22,952	$ 13,715	$ 42,534	$ 26,872

Supplemental Balance Sheet In_4

Supplemental Balance Sheet Information (Details) - Schedule of Prepaid and other assets - USD ($)	Mar. 31, 2022	Sep. 30, 2021
Schedule of Prepaid and other assets [Abstract]
Prepaid expenses	$ 315,099	$ 151,109
Deferred offering costs		92,934
Total	$ 315,099	$ 244,043

Supplemental Balance Sheet In_5

Supplemental Balance Sheet Information (Details) - Schedule of intangible assets	6 Months Ended
	Mar. 31, 2022USD ($)
Finite-Lived Intangible Assets [Line Items]
Net Intangibles, beginning	$ 134,207
Less: amortization	(11,158)
Net Intangibles, ending	$ 123,049
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Net Intangibles, useful lives	12 years
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Net Intangibles, useful lives	13 years

Supplemental Balance Sheet In_6

Supplemental Balance Sheet Information (Details) - Schedule of property and equipment - USD ($)	Mar. 31, 2022	Sep. 30, 2021
Schedule of property and equipment [Abstract]
Equipment and furniture	$ 417,645	$ 311,486
Software	1,895	1,895
Total property and equipment	419,540	313,381
Less accumulated depreciation	(132,586)	(90,052)
Property and equipment, net	$ 286,954	$ 223,329

Accrued Expenses and Other Li_3

Accrued Expenses and Other Liabilities (Details) - Schedule of accrued expenses - USD ($)	Mar. 31, 2022	Sep. 30, 2021
Schedule of accrued expenses [Abstract]
Accrued payroll	$ 188,735	$ 376,236
Operating lease liability, short term	104,626	112,778
Royalty Payments	38,598	72,083
Other	30,000	83,152
Total	$ 361,959	$ 644,249

Zimmer Development Agreement (D

Zimmer Development Agreement (Details) - USD ($)	Dec. 15, 2020	Sep. 30, 2021	Jun. 30, 2021	Apr. 30, 2021	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Sep. 30, 2021
Zimmer Development Agreement (Details) [Line Items]
Initial fee payment								$ 2,000,000
Total advertising expense					$ 113,197		$ 113,140	174,532	$ 142,147
Product [Member]
Zimmer Development Agreement (Details) [Line Items]
Revenue recognized					36,584		18,240	70,332	89,714
Development Agreement [Member]
Zimmer Development Agreement (Details) [Line Items]
Product revenue recognized					$ 0		$ 20,113	$ 6,374	$ 42,387
Development Agreement [Member] | November 30, 2020 [Member]
Zimmer Development Agreement (Details) [Line Items]
Future potential milestone payments to Neuroone	$ 500,000
Development Agreement [Member] | After September 30, 2021, but on or before December 31, 2021 [Member]
Zimmer Development Agreement (Details) [Line Items]
Future potential milestone payments to Neuroone						$ 2,500,000
Development Agreement [Member] | After December 31, 2021 [Member]
Zimmer Development Agreement (Details) [Line Items]
Future potential milestone payments to Neuroone						$ 1,500,000
Development Agreement [Member] | Scenario One [Member] | April 30, 2021 [Member]
Zimmer Development Agreement (Details) [Line Items]
Future potential milestone payments to Neuroone				$ 500,000
Development Agreement [Member] | Scenario One [Member] | On or before June 30, 2021 [Member]
Zimmer Development Agreement (Details) [Line Items]
Future potential milestone payments to Neuroone			$ 3,000,000
Development Agreement [Member] | Scenario Two [Member] | Modified Connector by April 30, 2021 [Member]
Zimmer Development Agreement (Details) [Line Items]
Future potential milestone payments to Neuroone				$ 500,000
Development Agreement [Member] | Scenario Two [Member] | Modified Connector by September 30, 2021 [Member]
Zimmer Development Agreement (Details) [Line Items]
Future potential milestone payments to Neuroone		$ 500,000
Development Agreement [Member] | Scenario Two [Member] | After June 30, 2021, but on or before September 30, 2021 [Member]
Zimmer Development Agreement (Details) [Line Items]
Future potential milestone payments to Neuroone										$ 3,000,000

Zimmer Development Agreement _2

Zimmer Development Agreement (Details) - Schedule of deferred revenue - USD ($)	6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Deferred Revenue
Balance as of beginning of period – September 30	$ 8,622	$ 73,434
Revenue recognized	(6,374)	(42,387)
Balance as of end of period – March 31	$ 2,248	$ 31,047

Convertible Promissory Notes _2

Convertible Promissory Notes and Warrant Agreements (Details) - USD ($)	Dec. 03, 2019	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Nov. 01, 2019
Convertible Promissory Notes and Warrant Agreements (Details) [Line Items]
Convertible promissory notes percentage			13.00%
Principal amount	$ 3,234,800
Maturity date			Nov. 1, 2020
Interest on principal amount				$ 5,701
Changes of fair value benefit				$ (1,974)
Warrants, description				Each 2019 Paulson Warrant grants the holder the option to purchase the number of shares of common stock equal to (i) 0.5 multiplied by (ii) the principal amount of such subscriber’s 2019 Paulson Notes divided by 5.61, with an exercise price per share equal to $5.61.
Warrants exercisable of common stock shares (in Shares)	288,305
Expire date			November 1, 2022
Legal costs				$ 3,053
Accrued and unpaid interest		$ 615,159		$ 615,159
Shares of common stock (in Shares)		292,754
2019 Paulson Private Placement [Member]
Convertible Promissory Notes and Warrant Agreements (Details) [Line Items]
Convertible promissory notes percentage					13.00%

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)	Oct. 04, 2021	Aug. 31, 2020	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Sep. 30, 2021
Stock-Based Compensation (Details) [Line Items]
Granted shares			60,000	580,002	62,000	621,671
Weighted average grant date fair value, per share (in Dollars per share)					$ 1.03	$ 2.92
Expense related to restricted stock units (in Dollars)					$ 307,782	$ 317,612
Total number of stock options outstanding			1,162,059		1,162,059		1,122,560
Stock options vested					201,060	106,527
Stock options forfeited					22,501	10,146
Intrinsic value (in Dollars)				$ 955		$ 955
Shares of Common Stock	420,350
Unrecognized stock-based compensation (in Dollars)			$ 2,035,046		$ 2,035,046
Weighted average period					2 years 7 months 6 days
2017 Plan [Member]
Stock-Based Compensation (Details) [Line Items]
Shares reserved, description					the shares reserved automatically increase on January 1st of each year, for a period of not more than ten years from the date the 2017 Plan is approved by the stockholders of the Company, commencing on January 1, 2019 and ending on (and including) January 1, 2027, to an amount equal to 13% of the fully-diluted shares outstanding as of December 31st of the preceding calendar year. Notwithstanding the foregoing, the Board may act prior to January 1st of a given year to provide that there will be no January 1st increase in the share reserve for such year or that the increase in the share reserve for such year will be a lesser number of shares of common stock than would otherwise occur pursuant to the preceding sentence. “Fully Diluted Shares” as of a date means an amount equal to the number of shares of common stock (i) outstanding and (ii) issuable upon exercise, conversion or settlement of outstanding awards under the 2017 Plan and any other outstanding options, warrants or other securities of the Company that are (directly or indirectly) convertible or exchangeable into or exercisable for shares of common stock, in each case as of the close of business of the Company on December 31 of the preceding calendar year. Effective January 1, 2022, 1,614,538 shares were added to the 2017 Plan as a result of the evergreen provision.
2017 Equity Incentive Plan and Inducement Plan [Member]
Stock-Based Compensation (Details) [Line Items]
Aggregate for future issuance shares			1,880,777		1,880,777
Stock Options [Member]
Stock-Based Compensation (Details) [Line Items]
Weighted average grant date fair value, per share (in Dollars per share)			$ 1	$ 3.02
2020 Activity [Member]
Stock-Based Compensation (Details) [Line Items]
Consulting agreements description		an additional consulting agreement was executed whereby 40,000 shares of common stock were issued, subject to Company repurchase. The stock award under the agreement vested over a six-month period. As of March 31, 2021, 40,000 shares were vested under this agreement of which 13,334 and 33,334 shares vested during the three and six month periods ended March 31, 2021, respectively. Compensation expense related to the stock award granted under this consulting agreement amounted to $68,400 and $171,000 for the three and six months ended March 31, 2021, respectively, and was included in the total stock-based compensation expense.
Board of Directors [Member]
Stock-Based Compensation (Details) [Line Items]
Stock options vested			182,217	34,752
Stock options forfeited			9,167	10,146
Stock Options [Member]
Stock-Based Compensation (Details) [Line Items]
Expense related to restricted stock units (in Dollars)			$ 145,421	$ 217,466
Share-Based Payment Arrangement, Option [Member]
Stock-Based Compensation (Details) [Line Items]
Stock options exercised				758		758
Restricted Stock Units (RSUs) [Member]
Stock-Based Compensation (Details) [Line Items]
Granted shares			355,950		355,950
Expense related to restricted stock units (in Dollars)			$ 87,295	$ 40,493	$ 128,006	$ 83,576
Stock options vested			3,444	7,992	9,088	16,376
Grant date fair value of the RSUs upon issuance (in Dollars per share)			$ 2.1		$ 2.1
Vest over period					3 years
Vesting percent					50.00%

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details) - Schedule of stock-based compensation expense - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
General and administrative [Member]
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense [Line Items]
General and administrative	$ 194,874	$ 253,586	$ 357,875	$ 435,379
Research and development [Member]
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense [Line Items]
Research and development	37,842	72,773	77,913	136,809
Stock-based compensation expense [Member]
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense [Line Items]
Total stock-based compensation expense	$ 232,716	$ 326,359	$ 435,788	$ 572,188

Stock-Based Compensation (Det_3

Stock-Based Compensation (Details) - Schedule of weighted-average assumptions used in the Black-Scholes option-pricing model	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Schedule of weighted-average assumptions used in the Black-Scholes option-pricing model [Abstract]
Expected stock price volatility	53.50%	56.00%	53.50%	55.90%
Expected life of options (years)	6 years 1 month 6 days	6 years 1 month 6 days	6 years 1 month 6 days	6 years
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Risk free interest rate	1.60%	0.60%	1.60%	0.60%

Income Taxes (Details)

Income Taxes (Details)	6 Months Ended	15 Months Ended
	Mar. 31, 2021	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective tax rate	0.00%	0.00%

Stockholders_ Equity (Details)

Stockholders’ Equity (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 13, 2021	Jan. 12, 2021	Mar. 31, 2022	Oct. 15, 2021
Stockholders’ Equity (Details) [Line Items]
Deducting underwriting discounts (in Dollars)			$ 13.4
Other offering expenses payable (in Dollars)			$ 1.4
Public Offering [Member]
Stockholders’ Equity (Details) [Line Items]
Sale of shares	3,750,000
Per share price (in Dollars per share)	$ 3.2
Additional shares issuable under the option provided for in the offering	562,500
Shares were ultimately issued under the option				422,057
2021 Warrants [Member]
Stockholders’ Equity (Details) [Line Items]
Aggregate shares issued		4,166,682
Purchase of warrants		4,166,682
Purchase price per share (in Dollars per share)		$ 3
Total gross proceeds (in Dollars)		$ 12.5
Initial exercise price (in Dollars per share)		$ 5.25

Stockholders_ Equity (Details)

Stockholders’ Equity (Details) - Schedule of warrant activity	6 Months Ended
	Mar. 31, 2022$ / sharesshares
Stockholders’ Equity (Details) - Schedule of warrant activity [Line Items]
Warrants, Outstanding and exercisable, Beginning (in Shares) | shares	7,503,808
Weighted Average Exercise Price, Outstanding and exercisable, Beginning	$ 6.06
Weighted Average Term (years), Outstanding and exercisable, Beginning	3 years 2 months 23 days
Warrants, Issued (in Shares) | shares
Exercise Price Per Warrant, Issued
Weighted Average Exercise Price, Issued
Weighted Average Term (years), Issued
Warrants, Exercised (in Shares) | shares
Weighted Average Exercise Price, Exercised
Weighted Average Exercise Price, Exercised
Weighted Average Term (years), Exercised
Warrants Forfeited/Expired (in Shares) | shares	(750,364)
Exercise Price Per Warrant Forfeited/Expired	$ 5.4
Weighted Average Exercise Price Forfeited/Expired	$ 5.4
Weighted Average Term (years) Forfeited/Expired
Warrants, Outstanding and exercisable, Ending (in Shares) | shares	6,753,444
Weighted Average Exercise Price, Outstanding and exercisable, Ending	$ 6.14
Weighted Average Term (years), Outstanding and exercisable, Ending	3 years 25 days
Minimum [Member]
Stockholders’ Equity (Details) - Schedule of warrant activity [Line Items]
Exercise Price Per Warrant, Outstanding and exercisable, Beginning	$ 5.25
Exercise Price Per Warrant, Outstanding and exercisable, Ending	5.25
Maximum [Member]
Stockholders’ Equity (Details) - Schedule of warrant activity [Line Items]
Exercise Price Per Warrant, Outstanding and exercisable, Beginning	9
Exercise Price Per Warrant, Outstanding and exercisable, Ending	$ 9

Deferred Contribution Plan (Det

Deferred Contribution Plan (Details) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2022	Mar. 31, 2022	Mar. 31, 2021
Defined Contribution Plan [Abstract]
Employees compensation percentage		100.00%
Deferrals percentage		100.00%
Contributions percentage		3.00%
Internal revenue percentage		100.00%
Contributions amount (in Dollars)	$ 30,697		$ 14,803