Arch Therapeutics (ARTH) 10-Q 13 Aug 21 2021 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2021	Aug. 12, 2021
Document And Entity Information
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity File Number	000-54986
Entity Incorporation, State or Country Code	NV
Entity Registrant Name	Arch Therapeutics, Inc.
Entity Tax Identification Number	46-0524102
Entity Address, Address Line One	235 Walnut Street
Entity Address, Address Line Two	Suite 6
Entity Address, City or Town	Framingham
Entity Address, Country	MA
Entity Address, Postal Zip Code	01702
City Area Code	617
Local Phone Number	431-2313
Entity Central Index Key	0001537561
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		236,719,770

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2021	Sep. 30, 2020
Current assets:
Cash	$ 3,779,190	$ 959,309
Inventory	828,220	967,993
Prepaid expenses and other current assets	378,808	215,673
Total current assets	4,986,218	2,142,975
Long-term assets:
Property and equipment, net	6,039	4,552
Other assets	3,500	3,500
Total long-term assets	9,539	8,052
Total assets	4,995,757	2,151,027
Current liabilities:
Accounts payable	277,197	342,050
Accrued expenses and other liabilities	168,644	248,968
Current portion of derivative liability	1,000,000	0
Current portion of PPP Loan	0	37,442
Total current liabilities	1,445,841	628,460
Long-term liabilities:
Long-term portion of PPP loan	0	138,858
Accrued interest	126,808	17,781
Derivative liability	1,207,475	2,316,419
Total long-term liabilities	2,934,283	3,023,058
Total liabilities	4,380,124	3,651,518
Commitments and contingencies
Stockholders' equity (deficit):
Common stock, $0.001 par value, 800,000,000 shares authorized as of June 30, 2021 and September 30, 2020, 236,719,770 and 193,044,766 shares issued and outstanding as of June 30, 2021 and September 30, 2020	236,720	193,045
Additional paid-in capital	48,410,655	41,862,901
Accumulated deficit	(48,031,742)	(43,556,437)
Total stockholders' equity (deficit)	615,633	(1,500,491)
Total liabilities and stockholders' equity (deficit)	4,995,757	2,151,027
Series 1 convertible notes
Long-term liabilities:
Convertible Notes Payable, Noncurrent	550,000	550,000
Series 2 convertible notes
Long-term liabilities:
Convertible Notes Payable, Noncurrent	$ 1,050,000	$ 0

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2021	Sep. 30, 2020
Consolidated Balance Sheets
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	800,000,000	800,000,000
Common Stock, Shares Issued	236,719,770	193,044,766
Common Stock, Shares Outstanding	236,719,770	193,044,766

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Consolidated Statements of Operations
Revenue	$ 0	$ 0	$ 10,000	$ 0
Operating expenses:
Cost of revenues	0	0	10,102	0
Selling, general and administrative expenses	1,370,395	854,626	3,600,419	2,722,596
Research and development expenses	297,553	382,847	1,051,755	1,289,013
Total costs and expenses	1,667,948	1,237,473	4,662,276	4,011,609
Loss from operations	(1,667,948)	(1,237,473)	(4,652,276)	(4,011,609)
Other income (expense):
Interest expense	(40,186)	(4,227)	(110,202)	(4,227)
Gain on forgiveness of loan	178,229	0	178,229	0
Decrease to fair value of derivative	0	337,333	108,944	719,831
Total other income	138,043	333,106	176,971	715,604
Net loss	$ (1,529,905)	$ (904,367)	$ (4,475,305)	$ (3,296,005)
Loss per share - basic and diluted
Net loss per common share - basic and diluted	$ (0.01)	$ 0	$ (0.02)	$ (0.02)
Weighted common shares - basic and diluted	236,719,770	188,340,505	214,289,567	186,438,587

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at the beginning of the period at Sep. 30, 2019	$ 172,612	$ 37,885,151	$ (38,865,060)	$ (807,297)
Balance at the beginning of the period (in shares) at Sep. 30, 2019	172,612,233
Net loss	$ 0	0	(3,296,005)	(3,296,005)
Shares issued for the exercise of warrants	$ 5,182	927,546	0	932,728
Shares issued for the exercise of warrants(in shares)	5,181,819
Issuance of common stock and warrants, net of financing costs	$ 14,286	2,152,876	0	2,167,162
Issuance of common stock and warrants, net of financing costs (in shares)	14,285,714
Stock based compensation expense	$ 0	680,231	0	680,231
Balance at the ending of the period at Jun. 30, 2020	$ 192,080	41,645,804	(42,161,065)	(323,181)
Balance at the ending of the period (in shares) at Jun. 30, 2020	192,079,766
Balance at the beginning of the period at Mar. 31, 2020	$ 186,898	40,534,282	(41,256,698)	(535,518)
Balance at the beginning of the period (in shares) at Mar. 31, 2020	186,897,947
Net loss	$ 0	0	(904,367)	(904,367)
Shares issued for the exercise of warrants	$ 5,182	927,546	0	932,728
Shares issued for the exercise of warrants(in shares)	5,181,819
Stock based compensation expense	$ 0	183,976	0	183,976
Balance at the ending of the period at Jun. 30, 2020	$ 192,080	41,645,804	(42,161,065)	(323,181)
Balance at the ending of the period (in shares) at Jun. 30, 2020	192,079,766
Balance at the beginning of the period at Sep. 30, 2020	$ 193,045	41,862,901	(43,556,437)	$ (1,500,491)
Balance at the beginning of the period (in shares) at Sep. 30, 2020	193,044,766			193,044,766
Net loss	$ 0	0	(4,475,305)	$ (4,475,305)
Issuance of common stock and warrants, net of financing costs	$ 43,125	6,176,108	0	6,219,233
Issuance of common stock and warrants, net of financing costs (in shares)	43,125,004
Issuance of restricted stock	$ 550	(550)	0	0
Issuance of restricted stock (in shares)	550,000
Stock based compensation expense	$ 0	372,196	0	372,196
Balance at the ending of the period at Jun. 30, 2021	$ 236,720	48,410,655	(48,031,742)	$ 615,633
Balance at the ending of the period (in shares) at Jun. 30, 2021	236,719,770			236,719,770
Balance at the beginning of the period at Mar. 31, 2021	$ 236,720	48,316,799	(46,501,837)	$ 2,051,682
Balance at the beginning of the period (in shares) at Mar. 31, 2021	236,719,770
Net loss	$ 0	0	(1,529,905)	(1,529,905)
Stock based compensation expense	0	93,856	0	93,856
Balance at the ending of the period at Jun. 30, 2021	$ 236,720	$ 48,410,655	$ (48,031,742)	$ 615,633
Balance at the ending of the period (in shares) at Jun. 30, 2021	236,719,770			236,719,770

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2020
Cash flows from operating activities:
Net loss	$ (1,529,905)	$ (904,367)	$ (4,475,305)	$ (3,296,005)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation	799	1,765	1,788	5,466
Stock-based compensation			372,196	680,231
Decrease to fair value of derivative			(108,944)	(719,831)
Inventory obsolescence charge			181,988	95,637
Gain on forgiveness of loan			(178,229)	0
(Increase) decrease in:
Inventory			(42,215)	(726,586)
Prepaid expenses and other current assets			(163,135)	196,399
Increase (decrease) in:
Accounts payable			(64,853)	(231,254)
Accrued interest			110,956	0
Accrued expenses and other liabilities			(80,324)	4,755
Net cash used in operating activities			(4,446,077)	(3,991,188)
Cash flows from investing activities:
Purchases of property and equipment			(3,275)	(2,455)
Net cash used in investing activities			(3,275)	(2,455)
Cash flows from financing activities:
Proceeds received from convertible notes			1,050,000	550,000
Proceeds received from PPP loan			0	176,300
Proceeds from issued common stock and warrants, net of financing costs			6,219,233	2,167,162
Proceeds from exercise of warrants			0	932,728
Net cash provided by financing activities			7,269,233	3,826,190
Net increase (decrease) in cash			2,819,881	(167,453)
Cash, beginning of year			959,309	2,180,329	$ 2,180,329
Cash, end of period	$ 3,779,190	$ 2,012,876	3,779,190	2,012,876	$ 959,309
Non-cash financing activities:
Issuance of restricted stock for services			103,750	0
Series J Warrants cost			$ 0	$ 219,737

BASIS OF PRESENTATION AND DESCR

BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS	9 Months Ended
	Jun. 30, 2021
BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS
BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS	1. Organization and Description of Business Arch Therapeutics, Inc., (together with its subsidiary, the “Company” or “Arch”) was incorporated under the laws of the State of Nevada on September 16, 2009, under the name “Almah, Inc.”. Effective June 26, 2013, the Company completed a merger (the “Merger”) with Arch Biosurgery, Inc. (formerly known as Arch Therapeutics, Inc.), a Massachusetts corporation (“ABS”), and Arch Acquisition Corporation (“Merger Sub”), the Company’s wholly owned subsidiary formed for the purpose of the transaction, pursuant to which Merger Sub merged with and into ABS and ABS thereby became the wholly owned subsidiary of the Company. As a result of the acquisition of ABS, the Company abandoned its prior business plan and changed its operations to the business of a biotechnology company. Our principal offices are located in Framingham, Massachusetts. For financial reporting purposes, the Merger represented a “reverse merger”. ABS was deemed to be the accounting acquirer in the transaction and the predecessor of Arch. Consequently, the accumulated deficit and the historical operations that are reflected in the Company’s consolidated financial statements prior to the Merger are those of ABS. All share information has been restated to reflect the effects of the Merger. The Company’s financial information has been consolidated with that of ABS after consummation of the Merger on June 26, 2013, and the historical financial statements of the Company before the Merger have been replaced with the historical financial statements of ABS before the Merger in this report. ABS was incorporated under the laws of the Commonwealth of Massachusetts on March 6, 2006 as Clear Nano Solutions, Inc. On April 7, 2008, ABS changed its name from Clear Nano Solutions, Inc. to Arch Therapeutics, Inc. Effective upon the closing of the Merger, ABS changed its name from Arch Therapeutics, Inc. to Arch Biosurgery, Inc. The Company only recently commenced commercial sales of our first product, AC5 ® The Company expects to incur substantial expenses for the foreseeable future relating to research, development and commercialization of its potential products. However, there can be no assurance that the Company will be successful in securing additional resources when needed, on terms acceptable to the Company, if at all. Therefore, there exists substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments related to the recoverability of assets that might be necessary despite this uncertainty.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Jun. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The interim consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly our results of operations and financial position for the interim periods. Although the Company believes that the disclosures in these unaudited interim consolidated financial statements are adequate to make the information presented not misleading, certain information normally included in the footnotes prepared in accordance with US GAAP has been omitted as permitted by the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020, filed with the SEC on December 11, 2020. For a complete summary of the Company’s significant accounting policies, please refer to Note 2 included in Item 8 of our Form 10-K for the fiscal year ended September 30, 2020. There have been no material changes to our significant accounting policies during the nine months ended June 30, 2021. Basis of Presentation The consolidated financial statements include the accounts of Arch Therapeutics, Inc. and its wholly owned subsidiary, Arch Biosurgery, Inc., a biotechnology company. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Recently Issued and Adopted Accounting Guidance Accounting Standards Update (ASU) 2018-13, “Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” was issued by the Financial Accounting Standards Board (FASB) in August 2018. The purpose of this amendment in this Update is to modify the disclosure requirements on fair value measurements in Topic 820. The amendments in this Update are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted ASU 2018-13 during our first quarter of fiscal year 2021, and the impact was considered immaterial on our consolidated financial statements. ASU 2020-06, “Debt with Conversion and other Options (subtopic 470-02) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40)” was issued by the FASB in August 2020. The purpose of this amendment is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles (GAAP) for certain financial instruments with characteristics of liability and equity. The amendments in this Update are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated results of operations, financial position or disclosures. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company had no cash equivalents as of June 30, 2021 and September 30, 2020. Inventories Inventories are stated at the lower of cost or net realizable value. The cost of inventories comprises expenditures incurred in acquiring the inventories, the cost of conversion and other costs incurred in bringing them to their existing location and condition. The cost of raw materials, goods-in-process and finished goods are determined on a First in First out (FiFo) basis. When determining net realizable value, appropriate consideration is given to obsolescence, excessive levels, deterioration, and other factors. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash. The Company maintains its cash in bank deposits accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash. Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful life of the related asset. Upon sale or retirement, the cost and accumulated depreciation are eliminated from their respective accounts, and the resulting gain or loss is included in income or loss for the period. Repair and maintenance expenditures are charged to expense as incurred. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable in accordance with ASC 360, Property, Plant and Equipment estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value. For the nine months ended June 30, 2021 and 2020 there has not been any impairment of long-lived assets. Leases The Company determines if an arrangement is a lease at its inception. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As our lease does not provide an implicit interest rate, the Company used an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As of June 30, 2021 and September 30, 2020, our ROU asset is included in prepaid expenses and other current assets and the lease obligations is included in accrued expenses and other current liabilities on our consolidated balance sheets. As of June 30, 2021 and September 30, 2020, ROU asset of approximately $10,000 and $39,000 , respectively, represents our right to use an underlying asset for the lease term and the lease liabilities of approximately $10,000 and $39,000 , respectively, represents our obligation to make lease payments arising from the lease. Income Taxes In accordance with FASB ASC 740, Income Taxes The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions when management determines that it is more likely than not that a loss will be incurred related to these matters and the amount of the loss is reasonably determinable. Revenue In accordance with FASB ASC 606, Revenue Recognition , the Company recognizes revenue through a five-step process: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) a performance obligation is satisfied. The Company’s source of revenue is product sales. Contracts with customers contain a single performance obligation and the Company recognizes revenue from product sales when the Company has satisfied our performance obligation by transferring control of the product to the customers. Control of the product transfers to the customer upon shipment from the Company’s third-party warehouse. Cost of Revenues Cost of revenues includes product costs, warehousing, overhead allocation and royalty expenses. Research and Development The Company expenses internal and external research and development costs, including costs of funded research and development arrangements, in the period incurred. Accounting for Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation-Stock Compensation The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by the fair value of the common stock and a number of other assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. The expected life for awards uses the simplified method for all “plain vanilla” options, as defined in ASC 718-10-S99 and the contractual term for all other employee and non-employee awards. The risk-free interest rate assumption is based on observed interest rates appropriate for the terms of our awards. The dividend yield assumption is based on history and the expectation of paying no dividends. Stock-based compensation expense, when recognized in the consolidated financial statements, is based on awards that are ultimately expected to vest. Fair Value Measurements The Company measures both financial and nonfinancial assets and liabilities in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures At June 30, 2021 and September 30, 2020, the carrying amounts of cash, accounts payables and accrued expenses and other liabilities approximate fair value because of their short-term nature. The carrying amounts for the PPP Loan, if applicable, and the Convertible Notes approximate fair value because borrowing rates and term are similar to comparable market participants. Derivative Liabilities The Company accounts for its warrants and other derivative financial instruments as either equity or liabilities based upon the characteristics and provisions of each instrument, in accordance with FASB ASC Topic 815, Derivatives and Hedging Financial Statement Reclassification Certain balances in the prior year consolidated financial statements have been reclassified for comparison purposes to conform to the presentation in the current period consolidated financial statements. ​ Subsequent Events The Company evaluated all events or transactions through August 12, 2021 the date which these unaudited interim consolidated financial statements were issued. There were no material subsequent events. Going Concern Basis of Accounting As reflected in the consolidated financial statements, the Company has an accumulated deficit, has suffered significant net losses and negative cash flows from operations, only recently commenced generating limited operating revenues, and has limited working capital. The continuation of the Company’s business as a going concern is dependent upon raising additional capital, the ability to successfully market and sell its product and eventually attaining and maintaining profitable operations. In particular, as of June 30, 2021, the Company will be required to raise additional capital, obtain alternative means of financial support, or both, in order to continue to fund operations, and therefore there is substantial doubt about the Company’s ability to continue as a going concern. The Company expects to incur substantial expenses into the foreseeable future for the research, development and commercialization of its current and potential products. In addition, the Company will require additional financing in order to seek to license or acquire new assets, research and develop any potential patents and the related compounds, and obtain any further intellectual property that the Company may seek to acquire. Finally, some of our product candidates or the materials contained therein (such as the Active Pharmaceutical Ingredients (“APIs”) for our AC5 ® The continued spread of coronavirus and uncertain market conditions may also limit the Company’s ability to access capital. If the Company is unable to obtain adequate capital, the Company may be required to reduce the scope, delay, or eliminate some or all of its planned activities. These conditions, in the aggregate, raise substantial doubt as to the Company’s ability to continue as a going concern. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The consolidated financial statements do not include any adjustments that might result from this uncertainty.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Jun. 30, 2021
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	3. At June 30, 2021 and September 30, 2020, property and equipment consisted of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated ​ ​ ​ ​ ​ ​ Useful ​ June 30, ​ September 30, ​ Life 2021 2020 Computer equipment 3 years ​ $ 14,416 ​ $ 11,141 ​ ​ ​ ​ ​ ​ ​ ​ ​ Furniture and fixtures ​ 5 years ​ ​ 9,357 ​ ​ 9,357 ​ ​ ​ ​ ​ ​ ​ ​ ​ Leasehold improvements Life of Lease ​ 8,983 ​ 8,983 ​ ​ ​ ​ ​ ​ ​ ​ ​ Lab equipment 5 years ​ 1,000 ​ 1,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 33,756 ​ 30,481 ​ ​ ​ ​ ​ ​ ​ ​ ​ Less – accumulated depreciation ​ ​ ​ 27,717 ​ 25,929 ​ ​ ​ ​ ​ ​ ​ ​ ​ Property and equipment, net ​ ​ ​ $ 6,039 ​ $ 4,552 ​ For the three months ended June 30, 2021 and 2020 depreciation expense recorded was $799 and $1,765 , respectively. For the nine months ended June 30, 2021 and 2020 depreciation expense was

INVENTORIES

INVENTORIES	9 Months Ended
	Jun. 30, 2021
INVENTORIES
INVENTORIES	4 . INVENTORIES Inventories consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, September 30, ​ 2021 2020 Finished Goods ​ $ 249,696 ​ $ — Goods-in-process ​ ​ 578,524 ​ ​ 967,993 Total ​ $ 828,220 ​ $ 967,993 ​ The Company capitalizes inventory that has been produced for commercial sale and has been determined to have a probable future economic benefit. The determination of whether or not the inventory has a future economic benefit requires estimates by management. To the extent that inventory is expected to expire prior to being sold or used for research and development or used for samples, the Company will write down the value of inventory.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Jun. 30, 2021
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	5. 2013 Stock Incentive Plan On June 18, 2013, the Company established the 2013 Stock Incentive Plan (the “2013 Plan”). Under the 2013 Plan, during the fiscal year ended September 30, 2020, a maximum number of 28,114,256 shares of the Company’s authorized and available common stock could be issued in the form of options, stock appreciation rights, sales or bonuses of restricted stock, restricted stock units or dividend equivalent rights, and an award may consist of one such security or benefit, or two or more of them in any combination or alternative. The 2013 Plan provides that on the first business day of each fiscal year commencing with fiscal year 2014, the number of shares of our common stock reserved for issuance under the 2013 Plan for all awards except for incentive stock option awards will be subject to increase by an amount equal to the lesser of (A) 3,000,000 Shares, (B) four (4) percent of the number of shares outstanding on the last day of the immediately preceding fiscal year of the Company, or (C) such lesser number of shares as determined by the Company’s Board of Directors (the “Board”). The exercise price of each option shall be the fair value as determined in good faith by the Board at the time each option is granted. On October 1, 2020, the aggregate number of authorized shares under the Plan was further increased by 3,000,000 shares to a total of 31,114,256 shares. As of June 30, 2021, a total of 19,899,212 options had been issued to employees and directors and 9,492,500 options had been issued to consultants. The exercise price of each option is equal to the closing price of a share of our common stock on the date of grant. Share-based awards During the nine months ended June 30, 2021, the Company granted 720,000 options to employees and directors and 1,775,000 options to consultants to purchase shares of common stock under the 2013 Plan . Share-based compensation expense for awards granted during the nine months ended June 30, 2021 was based on the grant date fair value estimated using the Black-Scholes Option Pricing Model. The following assumptions were used to calculate the fair value of share-based compensation for the nine months ended June 30, 2021; expected volatility, risk-free interest rate, expected dividend yield, 0%, expected term, 5.6 years. Common Stock Options Stock compensation activity under the 2013 Plan for the nine months ended June 30, 2021 follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ ​ Option ​ Average ​ Remaining ​ Aggregate ​ ​ Shares ​ Exercise ​ Contractual ​ Intrinsic ​ Outstanding Price Term (years) Value Outstanding at September 30, 2020 18,248,346 ​ $ 0.36 2.59 ​ $ 79,330 Awarded 2,495,000 ​ ​ 0.15 — ​ — Forfeited/Cancelled (213,348) ​ ​ 0.44 — ​ — Outstanding at June 30, 2021 20,529,998 ​ ​ 0.34 2.15 ​ ​ 247,403 Vested at June 30, 2021 17,608,293 ​ ​ 0.36 2.38 ​ ​ 97,368 Vested and expected to vest at June 30, 2021 20,529,998 ​ $ 0.34 2.15 ​ $ 247,403 ​ As of June 30, 2021, 4,918,356 shares are available for future grants under the 2013 Plan. Share-based compensation expense recorded in the Company’s Consolidated Statements of Operations for the three months ended June 30, 2021 and 2020 resulting from stock options awarded to the Company’s employees, directors and consultants was approximately $94,000 and $145,000, respectively. Of this amount during the three months ended June 30, 2021 and 2020, $35,000 and $56,000, respectively, were recorded as research and development expenses, and $59,000 and $89,000, respectively were recorded as general and administrative expenses in the Company’s Consolidated Statements of Operations. Share-based compensation expense recorded in the Company’s Consolidated Statements of Operations for the nine months ended June 30, 2021 and 2020 resulting from stock options awarded to the Company’s employees, directors and consultants was approximately $269,000 and $561,000, respectively. Of this amount during the nine months ended June 30, 2021 and 2020, $89,000 and $243,000, respectively, were recorded as research and development expenses, and $180,000 and $318,000, respectively were recorded as general and administrative expenses in the Company’s Consolidated Statements of Operations. During the nine months ended June 30, 2021 and 2020, no stock options awarded were exercised. As of June 30, 2021, there is approximately $218,000 of unrecognized compensation expense related to unvested stock-based compensation arrangements granted under the 2013 Plan. That cost is expected to be recognized over a weighted average period of 1.23 years. Restricted Stock On October 14, 2020, the Company awarded 50,000 shares of Restricted Stock to a consultant. The shares subject to this grant were awarded under the 2013 Plan and vested 90 days from the date of the award. On January 27, 2021, the Company awarded 500,000 shares of Restricted Stock to a consultant. The shares subject to this grant were awarded under the 2013 Plan and vested immediately. On July 19, 2018, the Company awarded 745,000 shares of Restricted Stock to members of the Board of Directors and management and 220,000 shares of Restricted Stock to a consultant. The shares subject to this grant were awarded under the 2013 Plan and vested on the second anniversary of the date of grant. In addition, in the event of a Change of Control (as such term is defined in the 2013 Plan), 100% of the grants will immediately vest. As of September 30, 2020, all restricted shares have vested. Restricted stock activity in shares under the 2013 Plan for the nine months ended June 30, 2021 and 2020 follows: ​ ​ ​ ​ ​ ​ ​ 2020 2019 Non Vested at September 30, 2020 and 2019 — 965,000 Awarded 550,000 — Vested (550,000) — Forfeited — — Non Vested at June 30, 2021 and 2020 — 965,000 ​ The weighted average restricted stock award date fair value information for the nine months ended June 30, 2021 and 2020 follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 2019 Non Vested at September 30, 2020 and 2019 ​ $ — ​ $ 0.57 Awarded ​ 0.19 ​ — Vested ​ (0.19) ​ — Forfeited ​ — ​ — Non Vested at June 30, 2021 and 2020 ​ $ — ​ $ 0.57 ​ For the three months ended June 30, 2021 and 2020 compensation expense recorded for the restricted stock awards was approximately $0 and $39,000, respectively. For the nine months ended June 30, 2021 and 2020 compensation expense recorded for the restricted stock awards was approximately $104,000 and $119,000, respectively.

Issuance and Treatment of the S

Issuance and Treatment of the Series D, Series and Series J Warrants	9 Months Ended
	Jun. 30, 2021
Issuance and Treatment of the Series D, Series and Series J Warrants
Issuance and Treatment of the Series D, Series and Series J Warrants	6. Beginning June 22, 2015 and through June 30, 2015, the Company entered into a series of substantially similar subscription agreements (each a “Subscription Agreement”) with 20 accredited investors (collectively, the “2015 Investors”) providing for the issuance and sale by the Company to the 2015 Investors, in a private placement, of an aggregate of 14,390,754 Units (“Unit”) at a purchase price of $0.22 per Unit (the “2015 Private Placement Financing”). Each Unit consisted of a share of Common Stock (the “2015 Shares”) and a Series D Warrant to purchase a share of Common Stock at an exercise price of $0.25 per share at any time prior to the fifth anniversary of the issuance date of the Series D Warrant (the “Series D Warrants” and the shares issuable upon exercise of the Series D Warrants, collectively, the "2015 Warrant Shares”). The Company did not engage any underwriter or placement agent in connection with the 2015 Private Placement Financing, and the aggregate gross proceeds raised by the Company in the 2015 Private Placement Financing totaled approximately $3,200,000. Beginning May 24, 2016 and through May 26, 2016, we entered into a series of substantially similar subscription agreements (each a “2016 Subscription Agreement”) with 18 accredited investors (collectively, the “2016 Investors”) providing for the issuance and sale by the Company to the 2016 Investors, in a private placement, of an aggregate of 9,418,334 Units at a purchase price of $0.36 per Unit (the “2016 Private Placement Financing”). Each Unit consisted of a share of Common Stock, and a Series E Warrant to purchase 0.75 shares of Common Stock at an exercise price of $0.4380 per share at any time prior to the fifth anniversary of the issuance date of the Series E Warrant (the “Series E Warrants” and the shares issuable upon exercise of the Series E Warrants, collectively, the “Series E Warrant Shares”). The exercise price of the Series E Warrants was set to equal the closing price of our Common Stock on the date of their issuance (May 26, 2016), which was $0.4380, and therefore the Series E Warrants were not issued at a discount to the market price of our Common Stock as of such date. The gross proceeds to Arch were approximately $3.4 million before deducting financing costs of approximately $281,000. On June 3, 2020, the Company entered into an agreement (the “Agreement”) with the holders of a majority (the “Majority Holders”) of the outstanding Series D Warrants (the “Warrant”) resulting in approximately $850,000 of proceeds as a result of the full exercise of their Warrants. The Agreement provides for the reduction of the Series D Warrant exercise price from $0.25 to $0.18 per share, and the elimination of a provision that prevents the Series D Warrants from being exercised if the holder’s beneficial ownership would exceed 4.9% as a result. Under the terms of the Agreement, in exchange for fully exercising their remaining Warrants for 4,727,273 shares of common stock on June 4, 2020, the Majority Holders were issued Series J Warrants to purchase 3,545,454 shares of common stock at an exercise price of $0.25 over a 1 year term. On June 22, 2020, the Company entered into a Series J Warrant Issuance Agreement (the “Keyes Sulat Agreement”) with the Keyes Sulat Revocable Trust (the “ Trust of proceeds as a result of the full exercise of the Trust’s Warrants. Under the terms of the Keyes Sulat Agreement, in exchange for fully exercising the Trust’s remaining Warrants for 454,546 shares of common stock on June 22, 2020, the Trust was issued Series J Warrants to purchase 340,910 shares of common stock at an exercise price of $0.25 over a 1 year term. James R. Sulat, a member of the Board, is a co-trustee of the Trust, of which members of Mr. Sulat’s immediate family are beneficiaries. Mr. Sulat disclosed his interest in the Trust to the Board prior to its approval of the transaction and abstained from voting on the transaction. On November 6, 2020, as consideration for investment in the Convertible Notes, the Company entered into that certain Amendment to Series J Warrant to Purchase Common Stock, a holder of a Series J Warrant exercisable for up to 3,375,000 shares of Common Stock, to extend the term of the Series J Warrant from one (1) year to thirty (30) months. During the year ended September 30, 2020, Series D Warrants had been exercised on a cash basis for an aggregate issuance of 5,181,819 shares of the Company’s common stock resulting in gross proceeds to the Company of $932,728. As of September 30, 2020, 3,792,570 Series D Warrants expired. During the three and nine months ended June 30, 2021 and 2020, no Series E and Series J Warrants have been exercised. As of June 30, 2021, 4,214,582 Series E Warrants expired. Equity Value of Warrants The Company accounted for the Series D, Series E and Series J Warrants in accordance with ASC 815-40, Derivatives and Hedging.

REGISTERED DIRECT OFFERINGS

REGISTERED DIRECT OFFERINGS	9 Months Ended
	Jun. 30, 2021
REGISTERED DIRECT OFFERINGS
REGISTERED DIRECT OFFERINGS	7 . On September 30, 2016, the Company filed a registration statement with the SEC utilizing a “shelf” registration process, which was subsequently declared effective by the SEC on October 20, 2016 (such registration statement, the “Shelf Registration Statement”). Under the Shelf Registration Statement, the Company may offer and sell any combination of its Common Stock, warrants, debt securities, subscription rights, and/or units comprised of the foregoing to raise up to $50,000,000 in gross proceeds On February 20, 2017, the Company entered into Securities Purchase Agreement (the “2017 SPA”) with 6 accredited investors (collectively, the “2017 Investors”) providing for the issuance and sale by the Company to the 2017 Investors of an aggregate of 10,166,664 units at a purchase price of $0.60 per Unit in a registered offering (the “2017 Financing”). The securities comprising the units sold in the 2017 Financing were issued under the Shelf Registration Statement, and consisted of a share of Common Stock, a Series F Warrant equal to 55% of the shares of Common Stock at an exercise price of $0.75 per share at any time prior to the fifth anniversary of the issuance date of the Series F Warrant subject to certain restrictions on exercise (the “2017 Warrants” and the shares issuable upon exercise of the 2017 Warrants, collectively, the “2017 Warrant Shares”). On June 28, 2018, the Company entered into a Securities Purchase Agreement (“2018 SPA”) with 8 accredited investors (“2018 Investors”) providing for the issuance and sale by the Company to the 2018 Investors of an aggregate of 9,070,000 units at a purchase price of $0.50 per Unit in a registered offering (“2018 Financing”). The securities comprising the units sold in the 2018 Financing were issued under the Shelf Registration Statement, and consisted of a share of Common Stock, a Series G Warrant to purchase up to a number of shares of our common stock equal to 75% of the shares of Common Stock at an exercise price of $0.70 per share at any time prior to the fifth anniversary of the issuance date of the Series G Warrant subject to certain restrictions on exercise (“2018 Warrants”) and the shares issuable upon exercise of the 2018 Warrants. On May 12, 2019, the Company entered into a Securities Purchase Agreement (“2019 SPA”) with 5 accredited investors (“2019 Investors”) providing for the issuance and sale by the Company to the 2019 Investors of an aggregate of 8,615,384 units at a purchase price of $0.325 per Unit in a registered offering (“2019 Financing"). The securities comprising the units sold in the 2019 Financing were issued under the Shelf Registration Statement, and consisted of a share of Common Stock, and a Series H Warrant to purchase one share of Common Stock at an exercise price of $0.40 per share at any time prior to the fifth anniversary of the issuance date of the Series H Warrant subject to certain restrictions on exercise (“the 2019 Warrant Shares”) and the shares issuable upon exercise of the 2019 Warrants, (“2019 Warrant Shares”). During the nine months ended June 30, 2021 and 2020, no Series F, Series G and Series H Warrants had been exercised. As of June 30, 2021, up to 5,591,664, 6,802,500 and 8,615,384 shares may be acquired upon the exercise of the Series F, Series G and Series H Warrants, respectively. ​

DERIVATIVE LIABILITIES

DERIVATIVE LIABILITIES	9 Months Ended
	Jun. 30, 2021
DERIVATIVE LIABILITIES
DERIVATIVE LIABILITIES	8. The Company accounted for the Series F Warrants relating to the 2017 Financing, the Series G Warrants relating to the 2018 Financing and the Series H Warrants relating to the 2019 Financing in accordance with ASC 815-10, Derivatives and Hedging On the respective closing dates, the Series F, Series G and Series H derivative liabilities were recorded at an aggregate fair value of $1,628,113. Given that the fair value of the derivative liabilities were less than the net proceeds, the remaining proceeds were allocated to Common Stock and additional-paid-in-capital. During the three months ended June 30, 2021 and 2020, $0 and $337,333 was recorded to decrease the fair value of derivative liability, respectively. During the nine months ended June 30, 2021 and 2020, $108,944 and $719,831 was recorded to decrease the fair value of derivative liability, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements Using Significant Unobservable Inputs - June 30, 2021 ​ ​ ​ ​ (Level 3) Series F Series G Series H Beginning balance at September 30, 2020 ​ $ 1,000,000 ​ $ 748,275 ​ $ 568,144 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Issuances ​ ​ — ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjustments to estimated fair value ​ — ​ — ​ ​ (108,944) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending balance at June 30, 2021 ​ $ 1,000,000 ​ $ 748,275 ​ $ 459,200 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements Using Significant Unobservable Inputs - September 30, 2020 ​ ​ ​ ​ (Level 3) Series F Series G Series H Beginning balance at September 30, 2019 ​ $ 1,000,000 ​ $ 748,275 ​ $ 1,247,415 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Issuances ​ ​ — ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjustments to estimated fair value ​ — ​ — ​ ​ (679,271) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending balance at September 30, 2020 ​ $ 1,000,000 ​ $ 748,275 ​ $ 568,144 ​ The derivative liabilities were valued as of June 30, 2021 using the Black Scholes Model with the following assumptions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Series F Series G Series H ​ Closing price per share of common stock ​ $ 0.095 ​ $ 0.095 ​ $ 0.095 ​ Exercise price per share ​ $ 0.75 ​ $ 0.70 ​ $ 0.40 ​ Expected volatility ​ 75.98 % 82.22 % ​ 77.58 % Risk-free interest rate ​ 0.06 % 0.25 % ​ 0.46 % Dividend yield ​ — ​ — ​ ​ — ​ Remaining expected term of underlying securities (years) ​ 0.59 ​ 1.96 ​ ​ 2.84 ​ ​ The derivative liabilities were valued as of September 30, 2020 using the Black Scholes Model with the following assumptions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Series F Series G Series H ​ Closing price per share of common stock ​ $ 0.17 ​ $ 0.17 ​ $ 0.17 ​ Exercise price per share ​ $ 0.75 ​ $ 0.70 ​ $ 0.40 ​ Expected volatility ​ 84.17 % 83.31 % ​ 82.24 % Risk-free interest rate ​ 0.13 % 0.15 % ​ 0.22 % Dividend yield ​ — ​ — ​ ​ — ​ Remaining expected term of underlying securities (years) ​ 1.35 ​ 2.71 ​ ​ 3.60 ​ ​

OCTOBER 2019 REGISTERED DIRECT

OCTOBER 2019 REGISTERED DIRECT OFFERING	9 Months Ended
	Jun. 30, 2021
OCTOBER 2019 REGISTERED DIRECT OFFERING
OCTOBER 2019 REGISTERED DIRECT OFFERING	9. OCTOBER 2019 REGISTERED DIRECT OFFERING On October 16, 2019, the Company entered into a Securities Purchase Agreement (“October 2019 SPA”) with 7 accredited investors (“October 2019 Investors”) providing for the issuance and sale by the Company to the 2019 Investors of an aggregate of 14,285,714 units at a purchase price of $0.175 per unit in a registered offering (“October 2019 Financing”). The securities comprising the units sold in the October 2019 Financing were issued under the Shelf Registration Statement, and consisted of a share of Common Stock, and a Series I Warrant to purchase one share of Common Stock at an exercise price of $0.22 per share at any time prior to the fifth anniversary of the issuance date of the Series I Warrant subject to certain restrictions on exercise (“October 2019 Warrants”) and the shares issuable upon exercise of the October 2019 Warrants, (“October 2019 Warrant Shares”). As of October 18, 2019, the Company recorded the 14,285,714 shares as Common Stock. Pursuant to the Engagement Agreement (as defined below), the Company also agreed to issue to the Placement Agent, or its designees, warrants to purchase up to 1,071,429 shares (the “Placement Agent Warrants”). The Placement Agent Warrants have substantially the same terms as the Series I Warrants, except that the exercise price of the Placement Agent Warrants is $0.21875 per share and the term of the Placement Agent Warrants is five years . The gross proceeds to Arch from the October 2019 Financing were approximately $2.5 million before deducting financing costs of approximately $333,000 which includes approximately $158,000 of placement fees. The number of shares of the Company’s Common Stock into which each of the Series I Warrants is exercisable and the exercise price therefore are subject to adjustment, as set forth in the Series I Warrants, including adjustments for stock subdivisions or combinations (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise). We engaged H.C. Wainwright (“Wainwright”) as our exclusive institutional investor placement agent in connection with the October SPA pursuant to an engagement agreement (the “Engagement Agreement”) dated as of October 10, 2019, and in consideration for the services provided by it, Wainwright was entitled to receive cash fees ranging from 6.0% to 8.2% of the gross proceeds received by us, as well as reimbursement for all reasonable expenses incurred by it in connection with its engagement. We received gross proceeds of approximately $2.5 million in the aggregate, resulting in a fee of approximately $158,000. During the nine months ended June 30, 2021 and 2020, no Series I Warrants or Placement Agent Warrants had been exercised. As of June 30, 2021, up to 14,285,714 and 1,071,429 shares may be acquired upon the exercise of the Series I Warrants and Placement Agent Warrants, respectively. Common Stock On October 18, 2019 the Closing Date of the October 2019 Financing, the Company issued 14,285,714 shares of Common Stock. Equity Value of Warrants The Company accounted for the Series I Warrants and the Placement Agent Warrants relating to the aforementioned October 2019 Registered Direct Offering in accordance with ASC 815-40, Derivatives and Hedging

2021 REGISTERED DIRECT OFFERING

2021 REGISTERED DIRECT OFFERING	9 Months Ended
	Jun. 30, 2021
2021 REGISTERED DIRECT OFFERING
2021 REGISTERED DIRECT OFFERING	10. On February 11, 2021, the Company entered into a Securities Purchase Agreement (“2021 SPA”) with certain institutional and accredited investors (“2021 Investors”) providing for the issuance and sale by the Company to the 2021 Investors of an aggregate of 43,125,004 (the “Shares”) of the Company’s common stock, $0.001 par value per share (“Common Stock”), and Series K Warrants (the “Series K Warrants”) to purchase an aggregate of 32,343,754 shares (the “Warrant Shares”) of Common Stock, at a combined offering price of $0.16 per share and related warrant (the “2021 Financing”). The Series K Warrants have an exercise price of $0.17 per share and are exercisable for a period of 5.5 years. The aggregate gross proceeds for the sale of the Shares and Series K Warrants was approximately $6.9 million, before deducting the placement agent’s fees and expenses and other offering expenses payable by the Company, of approximately $700,000. Pursuant to an engagement agreement (the “Engagement Letter”) dated as of February 8, 2021, by and between the Company and H.C. Wainwright & Co. (the “Placement Agent”), the Company has agreed to pay the Placement Agent cash fees equal to (i) 7.5% of the gross proceeds received by the Company from certain investors participating in the 2021 Financing, and (ii) 6.0% of the gross proceeds received by the Company from certain investors with pre-existing relationships with the Company. In addition, the Placement Agent will be entitled to receive a one-time non-accountable expense fee of $10,000, up to $50,000 for fees and expenses of legal counsel and other out-of-pocket expenses and $10,000 for clearing expenses. Pursuant to the Engagement Agreement, the Company also agreed to issue to the Placement Agent, or its designees, warrants to purchase up to 7.5% of the aggregate number of shares sold to investors in the Offering, or warrants to purchase up to 3,234,375 shares (the “Placement Agent 2 Warrants”) of the Company’s common stock. The Placement Agent 2 Warrants have substantially the same terms as the Series K Warrants, except that the exercise price of the Placement Agent 2 Warrants is $0.20 per share. The Engagement Agreement has indemnity and other customary provisions for transactions of this nature. The 2021 SPA contains certain restrictions on our ability to conduct subsequent sales of our equity securities. In particular, we are prohibited from entering into or effecting a Variable Rate Transaction (as defined in the 2021 SPA) until February 11, 2022; provided, however, the Company may enter into and effect an at-the-market offering facility with the Placement Agent. Additionally, the 2021 SPA contains certain restrictions on our ability to change our capitalization. In particular, until 180 days after February 17, 2021, we may not undertake a reverse or forward stock split or reclassification of the Common Stock without the prior written consent of the investors in the 2021 Private Placement Financing, other than in connection with the uplisting of the Common Stock to the Nasdaq Stock Market or the New York Stock Exchange. The number of shares of the Company’s Common Stock into which each of the Series K Warrants is exercisable and the exercise price therefore are subject to adjustment, as set forth in the Series K Warrants, including adjustments for stock subdivisions or combinations (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise). During the nine months ended June 30, 2021, no Series K Warrants or Placement Agent 2 Warrants had been exercised. As of June 30, 2021, up to 32,343,754 and 3,234,375 shares may be acquired upon the exercise of the Series K Warrants and Placement Agent Warrants, respectively. Common Stock On February 17, 2021 the Closing Date of the 2021 Financing, the Company issued 43,125,004 shares of Common Stock. Equity Value of Warrants The Company accounted for the Series K Warrants and the Placement Agent 2 Warrants relating to the aforementioned February 2021 Registered Direct Offering in accordance with ASC 815-40, Derivatives and Hedging

CONVERTIBLE NOTES

CONVERTIBLE NOTES	9 Months Ended
	Jun. 30, 2021
CONVERTIBLE NOTES
CONVERTIBLE NOTES	11. On June 4, 2020 and November 6, 2020, the Company issued unsecured 10% Series 1 Convertible Notes (“Series 1”) and Series 2 Convertible Notes (“Series 2”) in the aggregate principal amount of $550,000 and $1,050,000, respectively.The maturity dates of the Series 1 and Series 2 convertible notes are June 30, 2023 and November 30, 2023, respectively. Both the Series 1 and Series 2 Convertible Notes provide, among other things, for (i) a term of approximately three (3) years; (ii) the Company’s ability to prepay the Series 1 and Series 2 Convertible Notes, in whole or in part, at any time; (iii) the automatic conversion of the Convertible Notes upon a Change of Control (all capitalized terms not otherwise defined to have the meaning ascribed to such terms of the Convertible Notes) into shares of the Company’s common stock, par value $0.001 per share (Common Stock), at a per share price of $0.27 and $0.25(the “Conversion Price”) for the Series 1 and Series 2 Convertible Notes, respectively; (iv) the ability of a holder of a Convertible Note (a “ Holder fifteen In-Kind Note Repayment During the three months ended June 30, 2021 and 2020, the Company recorded interest expense on the convertible notes of approximately $40,000 and $4,000, respectively. During the nine months ended June 30, 2021 and 2020, the Company recorded interest expense of approximately $110,000 and $4,000 ,

PAYROLL PROTECTION PROGRAM LOAN

PAYROLL PROTECTION PROGRAM LOAN	9 Months Ended
	Jun. 30, 2021
PAYROLL PROTECTION PROGRAM LOAN
PAYROLL PROTECTION PROGRAM LOAN	12. On April 25, 2020, the Company executed a promissory note (the “ PPP Note PPP Loan PPP CARES Act SBA Lender The PPP Loan has a two-year term and bears interest at a rate of 1.00% per annum. Monthly principal and interest payments are deferred until the SBA makes a decision on our loan forgiveness application. Unless the PPP Loan is forgiven, the Company will be required to make monthly payments of principal and interest of approximately $20,000 to the Lender. The PPP Note contains customary events of default relating to, among other things, payment defaults, providing materially false and misleading representations to the SBA or Lender, or breaching the terms of the PPP Loan documents. The occurrence of an event of default may result in the immediate repayment of all amounts outstanding, collection of all amounts owing from the Company, or filing suit and obtaining judgment. Under the terms of the CARES Act, PPP Loan recipients can apply for and be granted forgiveness for all or a portion of the loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities. However, no assurance is provided that forgiveness for any portion of the PPP Loan will be obtained. During November 2020, the Company applied for forgiveness of the PPP Loan. On May 28, 2021, the Company received notice that the SBA completed review and all principal and interest has been forgiven. For the three and nine months ended June 30, 2021, approximately

RISKS AND UNCERTAINTIES - COVID

RISKS AND UNCERTAINTIES - COVID-19	9 Months Ended
	Jun. 30, 2021
RISKS AND UNCERTAINTIES - COVID-19
RISKS AND UNCERTAINTIES - COVID-19	13. The Company sources its materials and services for its products and product candidates from facilities in areas impacted or which may be impacted by the outbreak of the coronavirus. This may impact the Company’s ability to obtain future inventory and impact the Company’s future revenue stream as efforts to address this worldwide outbreak are undertaken. In addition, the Company has historically and principally funded its operations through debt borrowings, the issuance of convertible debt, and the issuance of units consisting of common stock and warrants which may also be impacted by economic conditions beyond the Company’s control. The extent to which the coronavirus will impact the global economy and the Company is uncertain and cannot be reasonably measured. ​

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Jun. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The consolidated financial statements include the accounts of Arch Therapeutics, Inc. and its wholly owned subsidiary, Arch Biosurgery, Inc., a biotechnology company. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.
Recently Issued and Adopted Accounting Guidance	Recently Issued and Adopted Accounting Guidance Accounting Standards Update (ASU) 2018-13, “Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” was issued by the Financial Accounting Standards Board (FASB) in August 2018. The purpose of this amendment in this Update is to modify the disclosure requirements on fair value measurements in Topic 820. The amendments in this Update are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted ASU 2018-13 during our first quarter of fiscal year 2021, and the impact was considered immaterial on our consolidated financial statements. ASU 2020-06, “Debt with Conversion and other Options (subtopic 470-02) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40)” was issued by the FASB in August 2020. The purpose of this amendment is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles (GAAP) for certain financial instruments with characteristics of liability and equity. The amendments in this Update are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated results of operations, financial position or disclosures.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company had no cash equivalents as of June 30, 2021 and September 30, 2020.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value. The cost of inventories comprises expenditures incurred in acquiring the inventories, the cost of conversion and other costs incurred in bringing them to their existing location and condition. The cost of raw materials, goods-in-process and finished goods are determined on a First in First out (FiFo) basis. When determining net realizable value, appropriate consideration is given to obsolescence, excessive levels, deterioration, and other factors.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash. The Company maintains its cash in bank deposits accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful life of the related asset. Upon sale or retirement, the cost and accumulated depreciation are eliminated from their respective accounts, and the resulting gain or loss is included in income or loss for the period. Repair and maintenance expenditures are charged to expense as incurred.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable in accordance with ASC 360, Property, Plant and Equipment estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value. For the nine months ended June 30, 2021 and 2020 there has not been any impairment of long-lived assets.
Leases	Leases The Company determines if an arrangement is a lease at its inception. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As our lease does not provide an implicit interest rate, the Company used an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As of June 30, 2021 and September 30, 2020, our ROU asset is included in prepaid expenses and other current assets and the lease obligations is included in accrued expenses and other current liabilities on our consolidated balance sheets. As of June 30, 2021 and September 30, 2020, ROU asset of approximately $10,000 and $39,000 , respectively, represents our right to use an underlying asset for the lease term and the lease liabilities of approximately $10,000 and $39,000 , respectively, represents our obligation to make lease payments arising from the lease.
Income Taxes	Income Taxes In accordance with FASB ASC 740, Income Taxes The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions when management determines that it is more likely than not that a loss will be incurred related to these matters and the amount of the loss is reasonably determinable.
Revenue	Revenue In accordance with FASB ASC 606, Revenue Recognition , the Company recognizes revenue through a five-step process: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) a performance obligation is satisfied. The Company’s source of revenue is product sales. Contracts with customers contain a single performance obligation and the Company recognizes revenue from product sales when the Company has satisfied our performance obligation by transferring control of the product to the customers. Control of the product transfers to the customer upon shipment from the Company’s third-party warehouse.
Cost of Revenues	Cost of Revenues Cost of revenues includes product costs, warehousing, overhead allocation and royalty expenses.
Research and Development	Research and Development The Company expenses internal and external research and development costs, including costs of funded research and development arrangements, in the period incurred.
Accounting for Stock-Based Compensation	Accounting for Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation-Stock Compensation The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by the fair value of the common stock and a number of other assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. The expected life for awards uses the simplified method for all “plain vanilla” options, as defined in ASC 718-10-S99 and the contractual term for all other employee and non-employee awards. The risk-free interest rate assumption is based on observed interest rates appropriate for the terms of our awards. The dividend yield assumption is based on history and the expectation of paying no dividends. Stock-based compensation expense, when recognized in the consolidated financial statements, is based on awards that are ultimately expected to vest.
Fair Value Measurements	Fair Value Measurements The Company measures both financial and nonfinancial assets and liabilities in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures At June 30, 2021 and September 30, 2020, the carrying amounts of cash, accounts payables and accrued expenses and other liabilities approximate fair value because of their short-term nature. The carrying amounts for the PPP Loan, if applicable, and the Convertible Notes approximate fair value because borrowing rates and term are similar to comparable market participants.
Derivative Liabilities	Derivative Liabilities The Company accounts for its warrants and other derivative financial instruments as either equity or liabilities based upon the characteristics and provisions of each instrument, in accordance with FASB ASC Topic 815, Derivatives and Hedging
Financial Statement Reclassification	Financial Statement Reclassification Certain balances in the prior year consolidated financial statements have been reclassified for comparison purposes to conform to the presentation in the current period consolidated financial statements.
Subsequent Events	Subsequent Events The Company evaluated all events or transactions through August 12, 2021 the date which these unaudited interim consolidated financial statements were issued. There were no material subsequent events.
Going Concern Basis of Accounting	Going Concern Basis of Accounting As reflected in the consolidated financial statements, the Company has an accumulated deficit, has suffered significant net losses and negative cash flows from operations, only recently commenced generating limited operating revenues, and has limited working capital. The continuation of the Company’s business as a going concern is dependent upon raising additional capital, the ability to successfully market and sell its product and eventually attaining and maintaining profitable operations. In particular, as of June 30, 2021, the Company will be required to raise additional capital, obtain alternative means of financial support, or both, in order to continue to fund operations, and therefore there is substantial doubt about the Company’s ability to continue as a going concern. The Company expects to incur substantial expenses into the foreseeable future for the research, development and commercialization of its current and potential products. In addition, the Company will require additional financing in order to seek to license or acquire new assets, research and develop any potential patents and the related compounds, and obtain any further intellectual property that the Company may seek to acquire. Finally, some of our product candidates or the materials contained therein (such as the Active Pharmaceutical Ingredients (“APIs”) for our AC5 ® The continued spread of coronavirus and uncertain market conditions may also limit the Company’s ability to access capital. If the Company is unable to obtain adequate capital, the Company may be required to reduce the scope, delay, or eliminate some or all of its planned activities. These conditions, in the aggregate, raise substantial doubt as to the Company’s ability to continue as a going concern. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The consolidated financial statements do not include any adjustments that might result from this uncertainty.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Jun. 30, 2021
PROPERTY AND EQUIPMENT
Schedule of property and equipment	At June 30, 2021 and September 30, 2020, property and equipment consisted of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated ​ ​ ​ ​ ​ ​ Useful ​ June 30, ​ September 30, ​ Life 2021 2020 Computer equipment 3 years ​ $ 14,416 ​ $ 11,141 ​ ​ ​ ​ ​ ​ ​ ​ ​ Furniture and fixtures ​ 5 years ​ ​ 9,357 ​ ​ 9,357 ​ ​ ​ ​ ​ ​ ​ ​ ​ Leasehold improvements Life of Lease ​ 8,983 ​ 8,983 ​ ​ ​ ​ ​ ​ ​ ​ ​ Lab equipment 5 years ​ 1,000 ​ 1,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 33,756 ​ 30,481 ​ ​ ​ ​ ​ ​ ​ ​ ​ Less – accumulated depreciation ​ ​ ​ 27,717 ​ 25,929 ​ ​ ​ ​ ​ ​ ​ ​ ​ Property and equipment, net ​ ​ ​ $ 6,039 ​ $ 4,552

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Jun. 30, 2021
INVENTORIES
Schedule of inventories	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, September 30, ​ 2021 2020 Finished Goods ​ $ 249,696 ​ $ — Goods-in-process ​ ​ 578,524 ​ ​ 967,993 Total ​ $ 828,220 ​ $ 967,993

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables) - 2013 Stock Incentive Plan [Member]	9 Months Ended
	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of stock compensation activity	Stock compensation activity under the 2013 Plan for the nine months ended June 30, 2021 follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ ​ Option ​ Average ​ Remaining ​ Aggregate ​ ​ Shares ​ Exercise ​ Contractual ​ Intrinsic ​ Outstanding Price Term (years) Value Outstanding at September 30, 2020 18,248,346 ​ $ 0.36 2.59 ​ $ 79,330 Awarded 2,495,000 ​ ​ 0.15 — ​ — Forfeited/Cancelled (213,348) ​ ​ 0.44 — ​ — Outstanding at June 30, 2021 20,529,998 ​ ​ 0.34 2.15 ​ ​ 247,403 Vested at June 30, 2021 17,608,293 ​ ​ 0.36 2.38 ​ ​ 97,368 Vested and expected to vest at June 30, 2021 20,529,998 ​ $ 0.34 2.15 ​ $ 247,403 ​
Schedule of restricted stock activity	Restricted stock activity in shares under the 2013 Plan for the nine months ended June 30, 2021 and 2020 follows: ​ ​ ​ ​ ​ ​ ​ 2020 2019 Non Vested at September 30, 2020 and 2019 — 965,000 Awarded 550,000 — Vested (550,000) — Forfeited — — Non Vested at June 30, 2021 and 2020 — 965,000 ​
Schedule of weighted average restricted stock award date fair value information	The weighted average restricted stock award date fair value information for the nine months ended June 30, 2021 and 2020 follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 2019 Non Vested at September 30, 2020 and 2019 ​ $ — ​ $ 0.57 Awarded ​ 0.19 ​ — Vested ​ (0.19) ​ — Forfeited ​ — ​ — Non Vested at June 30, 2021 and 2020 ​ $ — ​ $ 0.57 ​

DERIVATIVE LIABILITIES (Tables)

DERIVATIVE LIABILITIES (Tables)	9 Months Ended
	Jun. 30, 2021
DERIVATIVE LIABILITIES
Schedule of fair value measurements	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements Using Significant Unobservable Inputs - June 30, 2021 ​ ​ ​ ​ (Level 3) Series F Series G Series H Beginning balance at September 30, 2020 ​ $ 1,000,000 ​ $ 748,275 ​ $ 568,144 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Issuances ​ ​ — ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjustments to estimated fair value ​ — ​ — ​ ​ (108,944) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending balance at June 30, 2021 ​ $ 1,000,000 ​ $ 748,275 ​ $ 459,200 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements Using Significant Unobservable Inputs - September 30, 2020 ​ ​ ​ ​ (Level 3) Series F Series G Series H Beginning balance at September 30, 2019 ​ $ 1,000,000 ​ $ 748,275 ​ $ 1,247,415 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Issuances ​ ​ — ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjustments to estimated fair value ​ — ​ — ​ ​ (679,271) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending balance at September 30, 2020 ​ $ 1,000,000 ​ $ 748,275 ​ $ 568,144 ​
Schedule of assumptions used to value derivative liabilities	The derivative liabilities were valued as of June 30, 2021 using the Black Scholes Model with the following assumptions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Series F Series G Series H ​ Closing price per share of common stock ​ $ 0.095 ​ $ 0.095 ​ $ 0.095 ​ Exercise price per share ​ $ 0.75 ​ $ 0.70 ​ $ 0.40 ​ Expected volatility ​ 75.98 % 82.22 % ​ 77.58 % Risk-free interest rate ​ 0.06 % 0.25 % ​ 0.46 % Dividend yield ​ — ​ — ​ ​ — ​ Remaining expected term of underlying securities (years) ​ 0.59 ​ 1.96 ​ ​ 2.84 ​ ​ The derivative liabilities were valued as of September 30, 2020 using the Black Scholes Model with the following assumptions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Series F Series G Series H ​ Closing price per share of common stock ​ $ 0.17 ​ $ 0.17 ​ $ 0.17 ​ Exercise price per share ​ $ 0.75 ​ $ 0.70 ​ $ 0.40 ​ Expected volatility ​ 84.17 % 83.31 % ​ 82.24 % Risk-free interest rate ​ 0.13 % 0.15 % ​ 0.22 % Dividend yield ​ — ​ — ​ ​ — ​ Remaining expected term of underlying securities (years) ​ 1.35 ​ 2.71 ​ ​ 3.60 ​

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Jun. 30, 2021	Sep. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash equivalents	$ 0	$ 0
Right of use assets	10,000	39,000
Operating lease liabilities	$ 10,000	$ 39,000
Operating lease, liability, statement of financial position	us:gaap_OperatingLeaseLiability	us:gaap_OperatingLeaseLiability

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	9 Months Ended
	Jun. 30, 2021	Sep. 30, 2020
Property and equipment, gross, Total	$ 33,756	$ 30,481
Less - accumulated depreciation	27,717	25,929
Property and equipment, net	$ 6,039	4,552
Furniture and fixtures
Property, and equipment, Estimated Useful Life	5 years
Property and equipment, gross, Total	$ 9,357	9,357
Leasehold improvements
Property and equipment, gross, Total	$ 8,983	8,983
Computer equipment
Property, and equipment, Estimated Useful Life	3 years
Property and equipment, gross, Total	$ 14,416	11,141
Lab equipment
Property, and equipment, Estimated Useful Life	5 years
Property and equipment, gross, Total	$ 1,000	$ 1,000

PROPERTY AND EQUIPMENT - Additi

PROPERTY AND EQUIPMENT - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
PROPERTY AND EQUIPMENT
Depreciation expense	$ 799	$ 1,765	$ 1,788	$ 5,466

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	3 Months Ended		12 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020
INVENTORIES
Finished Goods	$ 249,696
Goods-in-process	578,524		$ 967,993
Total	828,220		967,993
Reduction in inventory reserves	$ 828,220	$ 139,773	$ 967,993

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock compensation activity (Details) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2021	Sep. 30, 2020
Option Shares Outstanding
Outstanding at September 30, 2020	18,248,346
Awarded	2,495,000
Forfeited/Cancelled	(213,348)
Outstanding at June 30, 2021	20,529,998	18,248,346
Vested at June 30, 2021	17,608,293
Vested and expected to vest at June 30, 2021	20,529,998
Weighted Average Exercise Price
Outstanding at June 30, 2020	$ 0.36
Awarded	0.15
Forfeited/Cancelled	0.44
Outstanding at June 30, 2021	0.34	$ 0.36
Vested at June 30, 2021	0.36
Vested and expected to vest at June 30, 2021	$ 0.34
Weighted Average Remaining Contractual Term (years)
Outstanding at September 30, 2020		2 years 7 months 2 days
Outstanding at June 30, 2021	2 years 1 month 24 days
Vested at June 30, 2021	2 years 4 months 17 days
Vested and expected to vest at June 30, 2021	2 years 1 month 24 days
Aggregate Intrinsic Value
Outstanding at September 30, 2020	$ 79,330
Awarded	0
Forfeited/Cancelled	0
Outstanding at June 30, 2021	247,403	$ 79,330
Vested at June 30, 2021	97,368
Vested and expected to vest at June 30, 2021	$ 247,403

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted stock activity (Details) - 2013 Incentive Plan [Member] - shares	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non Vested, Beginning Balance		965,000
Awarded	550,000	0
Vested	(550,000)	0
Forfeited	0	0
Non Vested, Ending Balance	0	965,000

STOCK-BASED COMPENSATION - Weig

STOCK-BASED COMPENSATION - Weighted average restricted stock (Details) - 2013 Incentive Plan [Member] - $ / shares	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non Vested, Beginning Balance		$ 0.57
Awarded	$ 0.19	0
Vested	(0.19)	0
Forfeited	0	0
Non Vested, Ending Balance	$ 0	$ 0.57

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($)	Jun. 30, 2021	Jan. 27, 2021	Oct. 14, 2020	Jul. 19, 2018	Jun. 18, 2013	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Oct. 01, 2020	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected dividend rate								0.00%
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term								5 years 7 months 6 days
Common Stock, Shares Authorized	800,000,000					800,000,000		800,000,000			800,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross								2,495,000
Non-Employee Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense						$ 0	$ 39,000	$ 104,000	$ 119,000
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense						35,000	56,000	89,000	243,000
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense						59,000	89,000	$ 180,000	318,000
Employees And Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross								19,899,212
Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross								9,492,500
Employees, Directors And Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense						$ 94,000	$ 145,000	$ 269,000	$ 561,000
2013 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase In Aggregate Number Of Shares										3,000,000
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition								1 year 2 months 23 days
Common Stock, Shares Authorized										31,114,256	28,114,256
Share-based compensation arrangement by share-based payment award, number of additional shares authorized					3,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross								0	0
2013 Stock Incentive Plan | Restricted Stock [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage				100.00%
Plan 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period			90 days
Share-based compensation arrangement by share-based payment award, number of shares available for grant	4,918,356					4,918,356		4,918,356
Plan 2013 [Member] | Employees And Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross								720,000
Plan 2013 [Member] | Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross								1,775,000
Plan 2013 [Member] | Consultants [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted		500,000	50,000
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Other				220,000
Plan 2013 [Member] | Employees, Directors And Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 218,000
Plan 2013 [Member] | Board of Directors And Management [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted				745,000

Issuance and Treatment of the_2

Issuance and Treatment of the Series D, Series and Series J Warrants - Additional Information (Details) - USD ($)

Jun. 30, 2021

Nov. 06, 2020

Jun. 22, 2020

Jun. 04, 2020

Jun. 03, 2020

May 26, 2016

Jun. 30, 2015

Jun. 30, 2021

Jun. 30, 2020

Sep. 30, 2020

Nov. 30, 2020

Jun. 21, 2020

Jun. 02, 2020

Issuance and Treatment of the Series D, Series and Series J Warrants

Proceeds from exercise of warrants

$ 0

$ 932,728

2015 Investors [Member]

Issuance and Treatment of the Series D, Series and Series J Warrants

Number of shares issued during the period

4,214,582

Series E warrant

Issuance and Treatment of the Series D, Series and Series J Warrants

Payments of Stock Issuance Costs

$ 281,000

2015 Private Placement [Member]

Issuance and Treatment of the Series D, Series and Series J Warrants

Number of shares issued during the period

14,390,754

Share Price

$ 0.22

Proceeds from Issuance of Common Stock

$ 3,200,000

2015 Private Placement [Member] | Keyes Sulat Agreement

Issuance and Treatment of the Series D, Series and Series J Warrants

Common Stock Issuance Upon Exercise Of Warrants

454,546

2015 Private Placement [Member] | Series D Warrants [Member]

Issuance and Treatment of the Series D, Series and Series J Warrants

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 0.18

$ 0.25

$ 0.25

Proceeds from exercise of warrants

$ 850,000

$ 932,728

Percentage of increase in ownership interest as a result of reduction in exercise price of warrant

4.90%

Common Stock Issuance Upon Exercise Of Warrants

4,727,273

5,181,819

Number of warrants expired

3,792,570

2015 Private Placement [Member] | Series J warrant

Issuance and Treatment of the Series D, Series and Series J Warrants

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 0.25

Common Stock Issuance Upon Exercise Of Warrants

3,375,000

3,545,454

Warrants exercisable period

30 months

1 year

1 year

2015 Private Placement [Member] | Series J warrant | Keyes Sulat Agreement

Issuance and Treatment of the Series D, Series and Series J Warrants

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 0.25

Proceeds from exercise of warrants

$ 82,000

Common Stock Issuance Upon Exercise Of Warrants

340,910

Warrants exercisable period

1 year

2016 Private Placement [Member]

Issuance and Treatment of the Series D, Series and Series J Warrants

Number of shares issued during the period

9,418,334

2016 Private Placement [Member] | Series E warrant

Issuance and Treatment of the Series D, Series and Series J Warrants

Stock Issued During Period, Value, New Issues

$ 3,400,000

Share Price

$ 0.36

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 0.4380

Warrants to purchase shares of Common Stock

0.75

REGISTERED DIRECT OFFERINGS - A

REGISTERED DIRECT OFFERINGS - Additional Information (Details)	May 12, 2019item$ / sharesshares	Jun. 28, 2018item$ / sharesshares	Feb. 20, 2017item$ / sharesshares	Jun. 30, 2021shares	Jun. 30, 2020shares	Sep. 30, 2016USD ($)
Shelf Registration Statement, Maximum Amount Authorized | $						$ 50,000,000
Series F Warrant [Member]
Number of warrants exercised				0	0
Number of shares may be acquired upon exercise				5,591,664
Series G Warrant [Member]
Number of warrants exercised				0	0
Number of shares may be acquired upon exercise				6,802,500
Series H Warrant [Member]
Number of warrants exercised				0	0
Number of shares may be acquired upon exercise				8,615,384
REGISTERED DIRECT OFFERING 2017 [Member]
Number of accredited investors | item			6
Number of shares issued during the period			10,166,664
Shares Issued, Price Per Share | $ / shares			$ 0.60
REGISTERED DIRECT OFFERING 2017 [Member] | Series F Warrant [Member]
Percentage of warrant per unit			55.00%
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares			$ 0.75
REGISTERED DIRECT OFFERINGS 2018 [Member]
Number of accredited investors | item		8
Number of shares issued during the period		9,070,000
Shares Issued, Price Per Share | $ / shares		$ 0.50
REGISTERED DIRECT OFFERINGS 2018 [Member] | Series G Warrant [Member]
Percentage of warrant per unit		75.00%
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares		$ 0.70
Registered Direct Offering 2019 [Member]
Number of accredited investors | item	5
Number of shares issued during the period	8,615,384
Shares Issued, Price Per Share | $ / shares	$ 0.325
Registered Direct Offering 2019 [Member] | Series H Warrant [Member]
Warrants to purchase shares of Common Stock	1
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 0.40

DERIVATIVE LIABILITIES - Fair v

DERIVATIVE LIABILITIES - Fair value of derivative (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($)	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Series F [Member]
Beginning balance at beginning of year	$ 1,000,000	$ 1,000,000
Issuances	0
Adjustments to estimated fair value	0
Ending balance at end of year	1,000,000	1,000,000
Series G [Member]
Beginning balance at beginning of year	748,275	748,275
Issuances	0
Adjustments to estimated fair value	0
Ending balance at end of year	748,275	748,275
Series H [Member]
Beginning balance at beginning of year	568,144	1,247,415
Issuances	0
Adjustments to estimated fair value	(108,944)	(679,271)
Ending balance at end of year	$ 459,200	$ 568,144

DERIVATIVE LIABILITIES - Deriva

DERIVATIVE LIABILITIES - Derivative liabilities using Black Scholes Model (Details)	9 Months Ended
	Jun. 30, 2021$ / shares	Jun. 30, 2020$ / shares	Sep. 30, 2020$ / shares
Closing price per share of common stock	$ 0.001		$ 0.001
Series F [Member] | Derivative Financial Instruments, Liabilities [Member]
Closing price per share of common stock	$ 0.095	$ 0.17
Series F [Member] | Derivative Financial Instruments, Liabilities [Member] | Measurement Input, Exercise Price [Member]
Derivative Liability, Measurement Input	0.75	0.75
Series F [Member] | Derivative Financial Instruments, Liabilities [Member] | Measurement Input, Price Volatility [Member]
Derivative Liability, Measurement Input	75.98	84.17
Series F [Member] | Derivative Financial Instruments, Liabilities [Member] | Measurement Input, Risk Free Interest Rate [Member]
Derivative Liability, Measurement Input	0.06	0.13
Series F [Member] | Derivative Financial Instruments, Liabilities [Member] | Measurement Input, Expected Dividend Rate [Member]
Derivative Liability, Measurement Input	0	0
Series F [Member] | Derivative Financial Instruments, Liabilities [Member] | Measurement Input, Expected Term [Member]
Remaining expected term of underlying securities (years)	7 months 2 days	1 year 4 months 6 days
Series G [Member] | Derivative Financial Instruments, Liabilities [Member]
Closing price per share of common stock	$ 0.095	$ 0.17
Series G [Member] | Derivative Financial Instruments, Liabilities [Member] | Measurement Input, Exercise Price [Member]
Derivative Liability, Measurement Input	0.70	0.70
Series G [Member] | Derivative Financial Instruments, Liabilities [Member] | Measurement Input, Price Volatility [Member]
Derivative Liability, Measurement Input	82.22	83.31
Series G [Member] | Derivative Financial Instruments, Liabilities [Member] | Measurement Input, Risk Free Interest Rate [Member]
Derivative Liability, Measurement Input	0.25	0.15
Series G [Member] | Derivative Financial Instruments, Liabilities [Member] | Measurement Input, Expected Dividend Rate [Member]
Derivative Liability, Measurement Input	0	0
Series G [Member] | Derivative Financial Instruments, Liabilities [Member] | Measurement Input, Expected Term [Member]
Remaining expected term of underlying securities (years)	1 year 11 months 15 days	2 years 8 months 15 days
Series H [Member] | Derivative Financial Instruments, Liabilities [Member]
Closing price per share of common stock	$ 0.095	$ 0.17
Series H [Member] | Derivative Financial Instruments, Liabilities [Member] | Measurement Input, Exercise Price [Member]
Derivative Liability, Measurement Input	0.40	0.40
Series H [Member] | Derivative Financial Instruments, Liabilities [Member] | Measurement Input, Price Volatility [Member]
Derivative Liability, Measurement Input	77.58	82.24
Series H [Member] | Derivative Financial Instruments, Liabilities [Member] | Measurement Input, Risk Free Interest Rate [Member]
Derivative Liability, Measurement Input	0.46	0.22
Series H [Member] | Derivative Financial Instruments, Liabilities [Member] | Measurement Input, Expected Dividend Rate [Member]
Derivative Liability, Measurement Input	0	0
Series H [Member] | Derivative Financial Instruments, Liabilities [Member] | Measurement Input, Expected Term [Member]
Remaining expected term of underlying securities (years)	2 years 10 months 2 days	3 years 7 months 6 days

DERIVATIVE LIABILITIES - Additi

DERIVATIVE LIABILITIES - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative Liability	$ 1,628,113		$ 1,628,113
Decrease (increase) to fair value of derivative	$ 0	$ 337,333	108,944	$ 719,831
Series F [Member]
Cash Price Per Each Common Stock Underlying Warrants			0.18
Series G [Member]
Cash Price Per Each Common Stock Underlying Warrants			0.11
Series H [Member]
Cash Price Per Each Common Stock Underlying Warrants			$ 0.0533

OCTOBER 2019 REGISTERED DIREC_2

OCTOBER 2019 REGISTERED DIRECT OFFERING (Details) - USD ($)	Oct. 18, 2019	Oct. 16, 2019	Oct. 10, 2019	Oct. 31, 2019	Jun. 30, 2021	Jun. 30, 2020
Class Of Series I Warrant [Member]
Number of shares issued during the period					0	0
Proceeds from Subscribed but Unissued Common Stock and Warrants			$ 2,500,000
Payments of Stock Issuance Costs			$ 158,000
Warrants to purchase shares of Common Stock					14,285,714
Class Of Series I Warrant [Member] | Maximum [Member]
Percentage of fee on Gross Proceeds of Warrants			8.20%
Class Of Series I Warrant [Member] | Minimum [Member]
Percentage of fee on Gross Proceeds of Warrants			6.00%
Placement Agent Warrants [Member]
Warrants to purchase shares of Common Stock		1,071,429			1,071,429
Registered Direct Offering October 2019 [Member]
Number of shares issued during the period	14,285,714	14,285,714
Shares Issued, Price Per Share		$ 0.175
Class of Warrant or Right, Exercise Price of Warrants or Rights		0.22
Proceeds from Subscribed but Unissued Common Stock and Warrants				$ 2,500,000
Payments of Financing Costs				333,000
Payments of Stock Issuance Costs				$ 158,000
Registered Direct Offering October 2019 [Member] | Placement Agent Warrants [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 0.21875
Warrants exercisable period		5 years

2021 REGISTERED DIRECT OFFERI_2

2021 REGISTERED DIRECT OFFERING (Details) - USD ($)	Feb. 17, 2021	Feb. 11, 2021	Feb. 08, 2021	Jun. 30, 2021	Sep. 30, 2020
Registered Direct Offering 2021 [Line Items]
Common Stock, Par Value				$ 0.001	$ 0.001
2021 REGISTERED DIRECT OFFERING
Registered Direct Offering 2021 [Line Items]
Number of shares issued during the period	43,125,004	43,125,004
Common Stock, Par Value		$ 0.001
Combined offering price		$ 0.16
Placement agent's fees and expenses and other offering expenses		$ 700,000
Placement agent's fees as a percentage of gross proceeds from certain investors participating in the 2021 Financing			7.50%
Placement agent's fees as a percentage of gross proceeds from certain investors with pre-existing relationships			6.00%
One-time non-accountable expense fee		10,000
Maximum fees and expenses of legal counsel and other out-of-pocket expenses		50,000
Clearing expenses		$ 10,000
Placement agent's fees as a percentage of warrants to purchase aggregate number of shares sold to investors		7.50%
Threshold period for restrictions to undertake a reverse or forward stock split or reclassification of the Common Stock	180 days
Number of warrants exercised				0
2021 REGISTERED DIRECT OFFERING | Series K Warrants
Registered Direct Offering 2021 [Line Items]
Warrants issued to purchase shares		32,343,754
Exercise price of warrants		$ 0.17
Warrants exercisable period		5 years 6 months
Gross proceeds for the sale of the Shares and Warrants		$ 6,900,000
Number of warrants outstanding				32,343,754
2021 REGISTERED DIRECT OFFERING | Placement Agent 2 Warrants
Registered Direct Offering 2021 [Line Items]
Warrants issued to purchase shares		3,234,375
Exercise price of warrants		$ 0.20
Number of warrants outstanding				3,234,375

2021 REGISTERED DIRECT OFFERI_3

2021 REGISTERED DIRECT OFFERING - Additional Information (Details) - shares	Feb. 17, 2021	Feb. 11, 2021
2021 REGISTERED DIRECT OFFERING
Registered Direct Offering 2021 [Line Items]
Number of shares issued during the period	43,125,004	43,125,004

CONVERTIBLE NOTES (Details)

CONVERTIBLE NOTES (Details) - USD ($)	Jun. 04, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Nov. 06, 2020	Sep. 30, 2020
Debt Conversion [Line Items]
Common Stock, Par Value		$ 0.001		$ 0.001			$ 0.001
Interest expense		$ 40,186	$ 4,227	$ 110,202	$ 4,227
Convertible Notes Payable
Debt Conversion [Line Items]
Interest expense		$ 40,000	$ 4,000	$ 110,000	$ 4,000
Series 1 convertible notes
Debt Conversion [Line Items]
Aggregate principal amount	$ 550,000
Debt Instrument, Term	3 years
Common Stock, Par Value	$ 0.001
Conversion Price (in dollars per share)	0.27
VWAP (in dollars per share)	$ 0.32
Number of consecutive trading days for minimum VWAP	15 days
Percentage of unpaid principal amount for outstanding note obligations	35.00%
Percentage on Interest for Outstanding Note Obligations	10.00%
Interest rate on the convertible debt	10.00%
Series 2 convertible notes
Debt Conversion [Line Items]
Aggregate principal amount						$ 1,050,000
Conversion Price (in dollars per share)						$ 0.25

PAYROLL PROTECTION PROGRAM LO_2

PAYROLL PROTECTION PROGRAM LOAN (Details) - USD ($)	Apr. 25, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Gain on forgiveness of loan		$ 178,229	$ 0	$ 178,229	$ 0
PPP Loan
Unsecured loan amount	$ 176,300
Term of the debt (in years)	2 years
Interest rate (as a percent)	1.00%
Payments of principal and interest (in monthly)	$ 20,000
Gain on forgiveness of loan		$ 178,000		$ 178,000