Document And Entity Information
Document And Entity Information | 9 Months Ended |
Jun. 30, 2015 | |
Document Information [Line Items] | |
Document Type | S1 |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2015 |
Entity Registrant Name | Arch Therapeutics, Inc. |
Entity Central Index Key | 1,537,561 |
Entity Filer Category | Smaller Reporting Company |
Consolidated Balance Sheets
Consolidated Balance Sheets - Derivative, Name [Domain] - USD ($) | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Current assets: | |||
Cash and cash equivalents | $ 3,273,764 | $ 833,520 | $ 557,319 |
Promissory note receivable | 0 | 1,000,000 | |
Prepaid expenses and other current assets | 44,091 | 43,470 | 19,629 |
Total current assets | 3,317,855 | 876,990 | 1,576,948 |
Long-term assets: | |||
Property and equipment, net | 0 | 322 | |
Other Assets | 0 | 10,062 | |
Total long-term assets | 0 | 10,384 | |
Total assets | 3,317,855 | 876,990 | 1,587,332 |
Current liabilities: | |||
Accounts payable | 499,682 | 175,832 | 314,769 |
Accrued expenses and other liabilities | 481,904 | 267,835 | 140,840 |
Convertible notes, net of unamortized discount | 498,550 | 0 | |
Current derivative liabilities | 411,753 | 2,280,000 | 0 |
Total current liabilities | 1,891,889 | 2,723,667 | 455,609 |
Long-term liabilities: | |||
Note payable, net of unamortized discount | 964,060 | 955,766 | 944,707 |
Accrued interest, net of current portion | 182,500 | 100,000 | 0 |
Derivative liabilities, net of current portion | 6,344,817 | 3,990,000 | 0 |
Total long-term liabilities | 7,491,377 | 5,045,766 | 944,707 |
Total liabilities | $ 9,383,266 | $ 7,769,433 | $ 1,400,316 |
Commitments and contingencies | |||
Stockholders’ (deficit) equity: | |||
Common Stock Value | $ 92,702 | $ 72,051 | $ 60,145 |
Common Stock Subscribed $0.001 par value | 454 | 0 | |
Additional paid in capital | 8,566,193 | 5,810,200 | 4,758,742 |
Stock Subscription Receivable | (100,000) | 0 | |
Accumulated deficit | (14,624,760) | (12,774,694) | (4,631,871) |
Total stockholders' (deficit) equity | (6,065,411) | (6,892,443) | 187,016 |
Total liabilities and stockholders' (deficit) equity | $ 3,317,855 | $ 876,990 | $ 1,587,332 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Common Stock, Par Value | $ 0.001 | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 | 300,000,000 |
Common Stock, Shares Issued | 92,702,854 | 72,076,487 | 60,145,237 |
Common Stock, Shares Outstanding | 92,702,854 | 72,076,487 | 60,145,237 |
Consolidated Statements of Oper
Consolidated Statements of Operations - Entity [Domain] - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenues | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Operating expenses: | ||||||
General and administrative expenses | 813,122 | 825,951 | 2,536,654 | 2,271,443 | 3,134,285 | 1,526,075 |
Research and development expenses | 525,107 | 320,345 | 1,327,337 | 951,101 | 1,477,479 | 218,901 |
Total operating expenses | 1,338,229 | 1,146,296 | 3,863,991 | 3,222,544 | 4,611,764 | 1,744,976 |
Operating loss | (1,338,229) | (1,146,296) | (3,863,991) | (3,222,544) | (4,611,764) | (1,744,976) |
Other income (expense): | ||||||
Interest expense | (134,326) | (27,763) | (212,647) | (83,293) | (111,059) | (108,879) |
Loss on issuance of warrants | (7,541,693) | 0 | ||||
(Increase)/decrease to fair value of derivative | (925,384) | 1,584,818 | 2,924,064 | 2,069,693 | 4,121,693 | 0 |
Fair value of derivative liabilities in excess of proceeds | 0 | 0 | 0 | (7,541,693) | ||
Gain on exercise of warrants | 75,321 | 0 | 299,321 | 0 | ||
Gain/(loss) on warrant derivative modification | 927,373 | 0 | (996,813) | 0 | ||
Other income | 0 | 64 | ||||
Total other income (expense) | (57,016) | 1,557,055 | 2,013,925 | (5,555,293) | (3,531,059) | (108,815) |
Net (Loss)/income | $ (1,395,245) | $ 410,759 | $ (1,850,066) | $ (8,777,837) | $ (8,142,823) | $ (1,853,791) |
Basic earnings per share | ||||||
Net (loss) income per common share basic | $ (0.02) | $ 0.01 | $ (0.02) | $ (0.13) | $ (0.12) | $ (0.09) |
Weighted common shares - basic | 76,804,674 | 71,949,564 | 75,396,047 | 65,933,378 | ||
Diluted earnings per share | ||||||
Net (loss) income per common share diluted | $ (0.02) | $ 0.01 | $ (0.02) | $ (0.13) | ||
Weighted common shares - diluted | 76,804,674 | 72,084,748 | 75,396,047 | 65,933,378 | ||
Weighted Common Shares - Basic and Diluted | 67,492,823 | 21,366,752 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' (Deficit) Equity - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance at Sep. 30, 2012 | $ (2,772,435) | $ 5,645 | $ 0 | $ (2,778,080) |
Balance (in shares) at Sep. 30, 2012 | 5,645,212 | |||
Net loss | (1,853,791) | $ 0 | 0 | (1,853,791) |
Equity acquired in reverse merger on June 26 | 0 | $ 41,500 | (41,500) | 0 |
Equity acquired in reverse merger on June 26 (in shares) | 41,500,000 | |||
Issuance of common stock and 2,500,000 warrants to purchase 2,500,000 shares of common stock on June 26 for $1,250,000 ($0.50 per share) | 1,250,000 | $ 2,500 | 1,247,500 | 0 |
Issuance of common stock and 2,500,000 warrants to purchase 2,500,000 shares of common stock on June 26 for $1,250,000 ($0.50 per share) (in shares) | 2,500,000 | |||
Exchange of debt and accrued interest for common stock pursuant to reverse merger on June 26 | 2,470,022 | $ 9,000 | 2,461,022 | 0 |
Exchange of debt and accrued interest for common stock pursuant to reverse merger on June 26 (in shares) | 9,000,025 | |||
500,000 warrants to purchase 500,000 shares of common stock on July 3 for $250,000 ($0.50 per share) | 250,000 | $ 500 | 249,500 | 0 |
500,000 warrants to purchase 500,000 shares of common stock on July 3 for $250,000 ($0.50 per share) (in shares) | 500,000 | |||
Issuance of common stock and 1,000,000 warrants to purchase 1,000,000 shares of common stock on August 30 for $500,000 ($0.50 per share) | 500,000 | $ 1,000 | 499,000 | 0 |
Issuance of common stock and 1,000,000 warrants to purchase 1,000,000 shares of common stock on August 30 for $500,000 ($0.50 per share) (in shares) | 1,000,000 | |||
Grant of one warrant to purchase 145,985 shares of common stock issued with note payable on September 30 | 55,293 | $ 0 | 55,293 | 0 |
Stock based compensation expense | 287,927 | 0 | 287,927 | 0 |
Balance at Sep. 30, 2013 | 187,016 | $ 60,145 | 4,758,742 | (4,631,871) |
Balance (in shares) at Sep. 30, 2013 | 60,145,237 | |||
Net loss | (8,142,823) | $ 0 | 0 | (8,142,823) |
Issuance of restricted stock for services | 94,875 | $ 275 | 94,600 | 0 |
Issuance of restricted stock for services (in shares) | 275,000 | |||
Exercise of stock options | 92,500 | $ 231 | 92,269 | 0 |
Exercise of stock options (in shares) | 231,250 | |||
Issuance of stock in Private Placement Funding | (225,297) | $ 11,400 | (236,697) | 0 |
Issuance of stock in Private Placement Funding (in shares) | 11,400,000 | |||
Stock based compensation expense | 1,101,286 | $ 0 | 1,101,286 | 0 |
Balance at Sep. 30, 2014 | (6,892,443) | $ 72,051 | $ 5,810,200 | $ (12,774,694) |
Balance (in shares) at Sep. 30, 2014 | 72,051,487 | |||
Net loss | $ (1,850,066) | |||
Exercise of stock options (in shares) | 0 | |||
Balance at Jun. 30, 2015 | $ (6,065,411) |
Consolidated Statements of Cha6
Consolidated Statements of Changes in Stockholders' (Deficit) Equity (Parenthetical) - Sep. 30, 2013 - $ / shares | Total |
Issuance of common stock and warrants | 2,500,000 |
Issuance of common stock and warrants value per share | $ 0.50 |
Issuance of common stock and warrants one | 500,000 |
Issuance of common stock and warrants value per share one | $ 0.50 |
Issuance of common stock and warrants two | 1,000,000 |
Issuance of common stock and warrants value per share two | $ 0.50 |
Grant of warrant to purchase common stock | 145,985 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - Entity [Domain] - USD ($) | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | ||||
Net Loss | $ (1,850,066) | $ (8,777,837) | $ (8,142,823) | $ (1,853,791) |
Adjustments to reconcile net loss to cash used in operating activities: | ||||
Depreciation Expense | 0 | 322 | 322 | 586 |
Stock-based compensation | 859,627 | 748,600 | 1,101,286 | 287,927 |
Noncash interest expense on notes payable | 212,332 | 83,295 | 111,059 | 0 |
Issuance of common stock for services | 8,625 | 77,625 | 94,875 | 0 |
Gain on exercise of warrants | (299,321) | 0 | ||
Loss on warrant derivative modification, net of inducement shares | 996,813 | 0 | ||
Decrease to fair value of derivative | (2,924,064) | (2,069,693) | ||
Non cash expense for issuance of warrants | 0 | 7,541,693 | 3,420,000 | 0 |
Other noncash adjustments | 0 | 92,500 | 92,500 | (92) |
Noncash interest expense on convertible notes payable | 0 | 82,147 | ||
Noncash interest expense on notes payable to related party | 0 | 25,599 | ||
Repayment of accrued interest to related party | 0 | (98,288) | ||
(Increase) decrease in: | ||||
Prepaid expenses and other current assets | (621) | (2,515) | (13,779) | (16,321) |
Other Assets | 0 | (10,062) | ||
Increase (decrease) in: | ||||
Accounts payable | 323,850 | (148,758) | (138,937) | 56,343 |
Accrued expenses and other liabilities | 46,069 | 75,270 | 126,995 | 91,332 |
Net cash used in operating activities | (2,626,756) | (2,379,498) | (3,348,502) | (1,434,620) |
Cash flows from investing activities: | 0 | 0 | ||
Cash flows from financing activities: | ||||
Proceeds from exercise of warrants | 1,251,000 | 0 | ||
Proceeds from issuance of common stock and warrants | 3,066,000 | 2,624,703 | 2,624,703 | 2,000,000 |
Repayment of notes payable to related party | 0 | (275,200) | ||
Proceeds from issuance of convertible notes | 750,000 | 0 | 0 | 250,000 |
Proceeds from issuance of notes payable | 0 | 1,000,000 | 1,000,000 | 0 |
Net cash provided by financing activities | 5,067,000 | 3,624,703 | 3,624,703 | 1,974,800 |
Net incerease in cash and cash equivalents | 2,440,244 | 1,245,205 | 276,201 | 540,180 |
Cash and cash equivalents, beginning of period | 833,520 | 557,319 | 557,319 | 17,139 |
Cash and cash equivalents, end of period | 3,273,764 | 1,802,524 | 833,520 | 557,319 |
Cash paid during the period for: | ||||
Interest | 0 | 98,288 | ||
Debt with warrants issued for promissory note receivable | 0 | 1,000,000 | ||
Exchange of convertible notes and related accrued interest for common stock | 0 | 2,470,022 | ||
Fully depreciated fixed assets disposed of | $ 2,066 | $ 0 | ||
Non-cash financing activities | ||||
Issuance of Inducement shares | $ 100,050 | $ 0 |
BASIS OF PRESENTATION AND DESCR
BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS | 1. BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS Organization and Description of Business Arch Therapeutics, Inc., (together with its subsidiary, the “Company”) was incorporated under the laws of the State of Nevada on September 16, 2009, under the name “Almah, Inc.” to pursue the business of distributing automobile spare parts online. 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 has changed its operations to the business of a life science medical device company. Our current 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 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 has generated no operating revenues to date, and is devoting substantially all of its efforts toward product research and development. To date, the Company has principally raised capital through borrowings and the issuance of convertible debt and units consisting of common stock and warrants. The Company expects to incur substantial expenses for the foreseeable future relating to research, development and commercialization of its potential products. The Company will be required to raise additional capital, obtain alternative means of financial support, or both prior to or during April 2016 in order to continue to fund operations. 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. | 1. DESCRIPTION OF BUSINESS Arch Therapeutics, Inc., (together with its subsidiary, the “Company”) was incorporated under the laws of the State of Nevada on September 16, 2009, under the name “Almah, Inc.” to pursue the business of distributing automobile spare parts online. 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 has changed its operations to the business of a life science medical device company. Subsequent to the Merger, we relocated our principal office to Wellesley, Massachusetts. For financial reporting purposes, the Merger represented a “reverse merger” rather than a business combination and 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 Commonwealth of Massachusetts on March 6, 2006 as Clear Nano Solutions, Inc. On April 7, 2008, ABS changed its name 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 has generated no operating revenues to date, and is devoting substantially all of its efforts toward product research and development. To date, the Company has principally raised capital through borrowings and the issuance of convertible debt and units consisting of common stock and warrants. The Company expects to incur substantial expenses for the foreseeable future relating to the research, development and commercialization of its potential products. The Company does not have sufficient cash and cash equivalents to support its current operating plan. The Company will be required to raise additional capital, obtain alternative means of financial support, or both, in order to continue to fund operations. 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 | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 we believe 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, 2014, filed with the SEC on December 12, 2014. For a complete summary of our significant accounting policies, please refer to Note 2 included in Item 8 of our Form 10-K for the fiscal year ended September 30, 2014. There have been no material changes to our significant accounting policies during the nine months ended June 30, 2015. The consolidated financial statements include the accounts of Arch Therapeutics, Inc. and its wholly owned subsidiary, Arch Biosurgery, Inc., a life science medical device company. All intercompany accounts and transactions have been eliminated in consolidation. The Company is in the development stage and is devoting substantially all of its efforts to developing technologies, raising capital, establishing customer and vendor relationships, and recruiting new employees. 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. Accounting Standards Update (ASU) 2015-03 “Interest Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs” was issued by the FASB in April 2015. The purpose of this amendment requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. 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, 2015. Early application 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. ASU 2015-02, “Consolidation (Topic 810) Amendments to the Consolidation Analysis”, was issued by the FASB in February 2015. The purpose of this amendment is to change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. 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, 2015. Early application is permitted. The Company does not believe that this guidance will have a material impact on its consolidated results of operations or financial position or disclosures. ASU 2014-16, “Derivatives and Hedging (Topic 815)” was issued by the FASB in November 2014. The primary purpose of the ASU is to determine whether the host contract in a Hybrid Financial Instrument issued in the form of a share is more akin to debt or equity. ASU 2014-16 is effective for public entities for the fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated results of operations or financial position or disclosures. ASU 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40) Disclosure of Uncertainties about an Entity’s Ability to ‘Continue as a Going Concern” was issued by the FASB in August 2014. The primary purpose of the ASU is to provide guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendment should reduce diversity in the timing and content of footnote disclosure. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for the annual periods and interim periods thereafter. Early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated results of operations or financial position or disclosures. ASU 2014-12, “Compensation-Stock Compensation (Topic 718) Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” was issued by the FASB in June 2014. ASU 2014-12 requires that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for public business entities for annual periods and interim periods within the annual periods beginning after December 15, 2015. Early adoption is permitted. The Company is currently assessing the impact of this guidance, but does not believe that it will have a material impact on its consolidated results of operations, financial position or disclosures. ASU 2014-09, “Revenue from Contracts with Customers (Topic 606) was issued by the FASB in May 2014. The primary purpose of the ASU is to develop a common revenue standard for revenue recognition between the FASB and the International Accounting Standards Board (IASB). The ASU removes inconsistencies and weaknesses in revenue requirements, provides a more robust framework for addressing revenue issues, and improves comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets, among other items. We are a development stage company and do not currently generate revenue. ASU 2014-09 is effective for public business entities for annual periods beginning after December 15, 2017. While we are a development stage company and do not currently generate revenue, we currently anticipate generating revenue by the effective date of this ASU and therefore will be subject to this guidance. The Company is currently assessing the impact of this guidance, but does not believe that it will have a material impact on its consolidated results of operations, financial position or disclosures. ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, was issued by the FASB in April 2014. This update changes the criteria for reporting discontinued operations and requires additional disclosures about discontinued operations. ASU 2014-08 requires that an entity report as a discontinued operation only a disposal that represents a strategic shift in operations that has a major effect on its operations and financial results. ASU 2014-08 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2014. Early adoption is permitted, but only for a disposal (or classification as held for sale) that has not been reported in financial statements previously issued or made available for issuance. The ASU must be applied prospectively. The Company does not believe this guidance will have a material impact on its consolidated results of operations or financial position. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents. The Company maintains its cash in bank deposit 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 and cash equivalents. 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. 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 The Company records a discount to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized to noncash interest expense using the effective interest rate method over the term of the related debt to their date of maturity. If a security or instrument becomes convertible only upon the occurrence of a future event outside the control of the Company, or, is convertible from inception, but contains conversion terms that change upon the occurrence of a future event, then any contingent beneficial conversion feature is measured and recognized when the triggering event occurs and contingency has been resolved. In accordance with 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 probable that a loss will be incurred related to these matters and the amount of the loss is reasonably determinable. The Company has no reserves related to uncertain tax positions as of June 30, 2015 and September 30, 2014. The Company expenses internal and external research and development costs, including costs of funded research and development arrangements, in the period incurred. The Company accounts for employee stock-based compensation in accordance with the guidance of ASC 718, Compensation-Stock Compensation Equity, In accordance with ASC 718, the Company has elected to use the Black-Scholes option pricing model to determine the fair value of options granted and recognizes the compensation cost of share-based awards on a straight-line basis over the vesting period of the award. 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 Company has a limited history of market prices of the common stock, and as such volatility is estimated in accordance with ASC 718-10-S99 Staff Accounting Bulletin (“SAB”) No. 107, Share-Based Payment The Company measures both financial and nonfinancial assets and liabilities in accordance with ASC 820, Fair Value Measurements and Disclosures The Company’s financial instruments include cash and cash equivalents. Because of their short maturity, the carrying amount of cash and cash equivalents are considered to approximate fair value. The Company evaluated all events or transactions that occurred through August 7, 2015 The Company does not currently believe its existing cash resources are sufficient to meet its anticipated needs during the next twelve months. As reflected in the financial statements, the Company has an accumulated deficit, has suffered significant net losses and negative cash flows from operations, and has limited working capital. The continuation of our business as a going concern is dependent upon raising additional capital and eventually attaining and maintaining profitable operations. As of June 30, 2015, there is substantial doubt about our ability to continue as a going concern. The unaudited interim consolidated financial statements included in this report do not include any adjustments that might be necessary should operations discontinue. The Company expects to incur substantial expenses for the foreseeable future for the research, development and commercialization of its 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. The Company does not have sufficient cash and cash equivalents to support its current operating plan. The Company will be required to raise additional capital, obtain alternative means of financial support, or both, in order to continue to fund operations. Therefore, there exists substantial doubt about the Company’s ability to continue as a going concern. Historically, the Company has funded its operations primarily through equity and debt financings. | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Basis of Accounting The consolidated financial statements include the accounts of Arch Therapeutics and its wholly owned subsidiary, Arch Biosurgery, Inc., a life science medical device company. All intercompany accounts and transactions have been eliminated in consolidation. The Company is in the development stage and is devoting substantially all of its efforts to developing technologies, raising capital, establishing customer and vendor relationships, and recruiting new employees. Due to the fact that we are a development stage company, we have historically included inception-to-date information, and certain disclosures required under U.S. GAAP in our financial statements. The amendments in this ASU (2014-10) remove all incremental financial reporting requirements, except for certain required incremental disclosures from U.S. GAAP for development stage companies. We have elected to early adopt this ASU. The amendments required in this ASU have been applied retrospectively and all inception to date information has been removed from our financial statements presented within this Annual Report on Form 10-K. The clarification to Topic 275 was applied prospectively to all unrecognized tax benefits that existed at the effective date. 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. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents. 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 and cash equivalents. 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 Convertible Debt The Company records a discount to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying preferred stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized to noncash interest expense using the effective interest rate method over the term of the related debt to their date of maturity. If a security or instrument becomes convertible only upon the occurrence of a future event outside the control of the Company, or, is convertible from inception, but contains conversion terms that change upon the occurrence of a future event, then any contingent beneficial conversion feature is measured and recognized when the triggering event occurs and contingency has been resolved. Income Taxes In accordance with 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 probable that a loss will be incurred related to these matters and the amount of the loss is reasonably determinable. The Company has no reserves related to uncertain tax positions as of September 30, 2014 and 2013. 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 employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation-Stock Compensation (“FASB ASC Topic 718”) that requires all share-based payments to employees, including grants of employee stock options, to be recognized in the consolidated financial statements based on their fair values. The Company accounts for non-employee stock-based compensation in accordance with the guidance of FASB ASC Topic 505, Equity , In accordance with FASB ASC Topic 718, the Company has elected to use the Black-Scholes option pricing model to determine the fair value of options granted and recognizes the compensation cost of share-based awards on a straight-line basis over the vesting period of the award. 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 Company does not have a history of market prices of the common stock, and as such volatility is estimated in accordance with ASC 718-10-S99 Staff Accounting Bulletin (“SAB”) No. 107, Share-Based Payment 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 The Company’s financial instruments include cash and cash equivalents. Because of their short maturity, the carrying amount of cash and cash equivalents are considered to approximate fair value. Subsequent Events The Company evaluated all events or transactions that occurred through December 10, 2014 the date which these consolidated financial statements were available to be issued. The Company disclosed material subsequent events in Note 14. Going Concern Basis of Accounting The Company does not currently believe its existing cash resources are sufficient to meet its anticipated needs during the next twelve months. As reflected in the financial statements, the Company has an accumulated deficit, has suffered significant net losses and negative cash flows from operations, and has limited working capital. The continuation of our business as a going concern is dependent upon raising additional capital and eventually attaining and maintaining profitable operations. As of September 30, 2014, there is substantial doubt about our ability to continue as a going concern. The consolidated financial statements included in this report do not include any adjustments that might be necessary should operations discontinue. The Company expects to incur substantial expenses for the foreseeable future for the research, development and commercialization of its 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. The Company does not have sufficient cash and cash equivalents to support its current operating plan. The Company will be required to raise additional capital, obtain alternative means of financial support, or both, in order to continue to fund operations. Therefore, there exists substantial doubt about the Company’s ability to continue as a going concern. Historically, the Company has funded its operations primarily through equity and debt financings. 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. The consolidated financial statements include the accounts of the Company as of September 30, 2014 and 2013. All significant intercompany balances and transactions have been eliminated in consolidation. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2014 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 3. PROPERTY AND EQUIPMENT Estimated Useful Life 2014 2013 Furniture and fixtures 5 years $ 2,925 $ 2,925 Lab equipment 5 years 1,000 3,066 3,925 5,991 Less - accumulated depreciation 3,925 5,669 $ - $ 322 Depreciation expense for the years ended September 30, 2014 and 2013 was $ 322 586 During the year ended September 30, 2014, the Company disposed of certain property and equipment with historical costs of $ 2,066 2,066 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 4. INCOME TAXES The principal components of the Company's net deferred tax assets consisted of the following at September 30: 2014 2013 Net operating loss carryforwards $ 2,731,492 $ 1,332,955 Capitalized expenditures 381,872 - Research and experimentation credit carryforwards 63,368 32,559 Stock based compensation 501,175 115,171 Fixed assets 1,568 7,492 Accrued expenses 46,230 35,744 Gross deferred tax assets 3,725,705 1,523,921 Deferred tax asset valuation allowance (3,725,705) (1,523,921) Net deferred tax assets $ - $ - As of September 30, 2014 and 2013, the Company had federal net operating loss carryforwards of approximately $ 6,230,000 3,486,000 44,112 32,559 As of September 30, 2014 and 2013, the Company had state net operating loss carryforwards of approximately $ 5,271,000 2,800,000 19,000 10,000 As the Company has not yet achieved profitable operations, management believes the tax benefits as of September 30, 2014 and 2013 did not satisfy the realization criteria set forth in FASB ASC Topic 740, Income Taxes, and therefore has recorded a valuation allowance for the entire deferred tax asset. The valuation allowance increased in 2014 and 2013 by approximately $ 2,202,000 589,000 The Company experienced an ownership change as a result of the Merger described in Note 6, causing a limitation on the annual use of the net operating loss carryforwards, which are subject to a substantial annual limitation due to the ownership change limitations set forth in Internal Revenue Code Section 382 and similar state provisions |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 5. RELATED PARTY TRANSACTIONS Notes Payable, Related Party In February 2009, ABS issued a promissory note (the “Note”) to Terrence Norchi (the “Note Holder”), a shareholder and director of the Company. During the period from February 2009 through February 2011, aggregate cash proceeds of $275,200 were advanced to the Company under Note. The Note accrued interest at a rate of 6% per year through December 31, 2009 and 10% per year beginning January 1, 2010. The original maturity date of the Note was August 10, 2010. In connection with the Note, the Company issued warrants to purchase shares of convertible preferred stock at the purchase price of such stock equal to 20% of the principal balance of the Note divided by the purchase price. Upon maturity of the Note on August 10, 2010, the Note Holder entered into an agreement of forbearance with the Company extending the time to repay the Note and accrued interest for an unspecified period of time. Under the terms of the agreement, interest continued to accrue at 10% per year. On June 24, 2013 the Company repaid the full amount of principle and accrued interest and the Note Holder agreed to cancel all related warrants. Convertible Notes Payable, Related Parties From June 2006 through December 2008, ABS issued convertible notes (“Convertible Notes”) to related parties for aggregate cash proceeds of $105,000. The notes accrued interest at various rates ranging from 6% to 10% per year and had an original maturity date of two years from issuance. The Convertible Notes were originally convertible into shares of convertible preferred stock upon the closing of a preferred equity financing of at least $1,000,000, the number of which was to be determined by dividing the principal and accrued interest by the purchase price of the convertible preferred stock ("Conversion Price"). In connection with the notes, ABS issued warrants to purchase additional shares of convertible preferred stock at the conversion price equal to an aggregate amount of 20% of the principal. At September 30, 2012, $55,000 of the convertible notes with related parties had matured. In January 2013, an additional $50,000 matured bringing the total to $105,000. Each of the holders of the matured notes entered into an agreement of forbearance with the Company extending the time to repay the matured notes and accrued interest for an unspecified amount of time. Under the terms of the forbearance agreement, interest continued to accrue at the rate in effect at the time of maturity. On April 20, 2013, the Convertible Note Holders and the Company entered into an agreement to cancel the related warrants and exchange the notes (with a total aggregate principal balance of $1,880,000) and the interest accrued through April 30, 2013 for the Company’s common stock upon the completion of the Merger on June 26, 2013 as described in Note 6. Directors Compensation In November 2010, ABS entered into an agreement to pay Terrence Norchi, its Chief Executive Officer, a cash bonus of $500,000 upon the raising of capital from a financing of at least $1,000,000. Additionally, ABS agreed that upon such closing, warrants shall be issued to him allowing the purchase of the number of shares of convertible preferred stock equal to $100,000 divided by the purchase price per share of the convertible preferred stock. On June 25, 2013 Terrence Norchi and ABS entered into a Termination Agreement and Release terminating the agreement for the cash bonus and warrants. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
STOCK-BASED COMPENSATION | 3. STOCK-BASED COMPENSATION 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, 2014, a maximum number of 10,231,197 3,000,000 2,883,059 13,114,256 As of June 30, 2015, a total of 7,254,212 4,602,500 Share-based awards During the nine months ended June 30, 2015, the Company granted options to employees and directors to purchase 1,950,000 1,037,500 1 10 3 0.17 0.22 During the three months ended June 30, 2015, the Company did not grant any options to employees and directors or to consultants to purchase shares of common stock under the 2013 Plan. The Company recognizes compensation expense for stock option awards on a straight-line basis over the applicable service period of the award. The service period is generally the vesting period, with the exception of options granted subject to a consulting agreement, whereby the option vesting period and the service period are defined pursuant to the terms of the consulting agreement. Share-based compensation expense for awards granted during the nine months ended June 30, 2015 was based on the fair market value at period end or 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 three and nine months ended June 30, 2015; expected volatility, 76.6 119.4 0.25 2.40 0.00 0.00 1 10 Expected price volatility is the measure by which the Company’s stock price is expected to fluctuate during the expected term of an option. The Company exited shell company status on June 26, 2013. In situations where a newly public entity has limited historical data on the price of its publicly traded shares and no other traded financial instruments, authoritative guidance is provided on estimating this assumption by basing its expected volatility on the historical, expected, or implied volatility of similar entities whose share option prices are publicly available. In making the determination as to similarity, the guidance recommends the consideration of industry, stage of life cycle, size and financial leverage of such other entities. The Company’s expected volatility is derived from the historical daily change in the market price of its common stock since it exited shell company status, as well as the historical daily change in the market price for the peer group as determined by the Company. For so called “plain vanilla” options granted to employees, the expected term of the options is based upon the simplified method as defined in ASC 718-10-S99 which averages an award’s weighted-average vesting period and the contractual term for share options. The Company will continue to use the simplified method until it has the historical data necessary to provide a reasonable estimate of expected life in accordance with ASC Topic 718. The Company’s estimation of the expected term for stock options not subject to the simplified method is based upon the contractual term of the option award. For the purposes of estimating the fair value of stock option awards, the risk-free interest rate used in the Black-Scholes calculation is based on the prevailing U.S. Treasury yield. The Company has never paid any dividends on its common stock and does not anticipate paying dividends on its common stock in the foreseeable future. Stock-based compensation expense recognized in the Company’s consolidated statements of operations is based on awards ultimately expected to vest, reduced for estimated forfeitures. Authoritative guidance requires forfeitures to be estimated at the time of grant, and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Historically, the Company has not had significant forfeitures of stock options granted to employees, directors and non-employees. Therefore, the Company has estimated the forfeiture rate of its outstanding stock options as zero, but will continually evaluate its historical data as a basis for determining expected forfeitures. Stock compensation plan activity is as follows: Common Stock Options Weighted Weighted Average Aggregate Option Average Remaining Intrinsic Shares Exercise Contractual Value Outstanding Price Term (years) ($0’s) Outstanding at September 30, 2014 8,637,962 $ 0.34 - $ - Awarded 2,987,500 0.19 - - Exercised - - - - Forfeited (515,625) $ 0.35 - - Outstanding at June 30, 2015 11,109,837 $ 0.31 5.36 292,860 Vested 8,051,432 $ 0.32 4.74 160,901 Vested and expected to vest at June 30, 2015 11,109,837 $ 0.31 5.36 292,860 As of June 30, 2015, 1,257,544 250,000 245,000 122,342 112,304 128,013 132,941 859,626 748,600 396,668 461,312 462,958 287,287 As of June 30, 2015, there is approximately $ 549,278 1.72 | 9. STOCK-BASED COMPENSATION 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, 2013, a maximum number of 7,825,388 2,405,809 10,231,197 2,883,059 13,114,256 As of September 30, 2014, a total of 5,304,212 3,565,000 2009 Stock Incentive Plan During 2009, ABS established the 2009 Stock Incentive Plan (the “2009 Plan”). Under the 2009 Plan, a maximum number of 707,460 Upon effectiveness of the 2013 Plan and the Merger, the Company ceased making awards under the 2009 Plan, and the right to receive shares of ABS pursuant to awards previously issued under the 2009 Plan was converted into the right to receive shares of the Company’s common stock. As of September 30, 2014, 579,026 116,973 Share-based awards During the fiscal year ended September 30, 2014, the Company granted options to purchase 3,404,212 2,465,000 3 10 1 3 0.17 0.37 The Company recognizes compensation expense for stock option awards on a straight-line basis over the applicable service period of the award. The service period is generally the vesting period, with the exception of options granted subject to a consulting agreement, whereby the option vesting period and the service period are defined pursuant to the terms of the consulting agreement. Share-based compensation expense for awards granted during the fiscal year ended September 30, 2014, was based on the fair market value at period end or 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 fiscal year ended September 30, 2014; expected volatility, 77 134 0.83 2.52 0.00 0.00 2.4 10 Expected price volatility is the measure by which the Company’s stock price is expected to fluctuate during the expected term of an option. The Company exited shell company status on June 26, 2013. In situations where a newly public entity has limited historical data on the price of its publicly traded shares and no other traded financial instruments, authoritative guidance is provided on estimating this assumption by basing its expected volatility on the historical, expected, or implied volatility of similar entities whose share option prices are publicly available. In making the determination as to similarity, the guidance recommends the consideration of industry, stage of life cycle, size and financial leverage of such other entities. The Company’s expected volatility is derived from the historical daily change in the market price of its common stock since it exited shell company status, as well as the historical daily changes in the market price for the peer group as determined by the Company. For so called “plain vanilla” options granted to employees, the expected term of the options is based upon the simplified method as defined in ASC 718-10-S99 which averages an award’s weighted-average vesting period and the contractual term for share options. The Company will continue to use the simplified method until it has the historical data necessary to provide a reasonable estimate of expected life in accordance with ASC Topic 718. The Company’s estimation of the expected term for stock options not subject to the simplified method is based upon the contractual term of the option award. For the purposes of estimating the fair value of stock option awards, the risk-free interest rate used in the Black-Scholes calculation is based on the prevailing U.S. Treasury yield. The Company has never paid any dividends on its common stock and does not anticipate paying dividends on its common stock in the foreseeable future. Stock-based compensation expense recognized in the Company’s consolidated statements of operations is based on awards ultimately expected to vest, reduced for estimated forfeitures. Authoritative guidance requires forfeitures to be estimated at the time of grant, and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Due to the Company’s minimal stock-based compensation activity, the Company has not had significant forfeitures of stock options granted to employees, directors and non-employees. Therefore, the Company has estimated the forfeiture rate of its outstanding stock options as zero, but will continually evaluate its historical data as a basis for determining expected forfeitures. Stock compensation plan activity is as follows: Common Stock Options Option Weighted Weighted Aggregate Outstanding at October 1, 2013 3,000,000 $ 0.38 $ - Awarded 5,869,212 0.33 - - Exercised (231,250) 0.40 - - Forfeited - - - Outstanding at September 30, 2014 8,637,962 $ 0.34 5.46 2,750 Vested 4,645,935 $ 0.36 4.60 76 Vested and expected to vest at September 30, 2014 8,637,962 $ 0.34 5.46 2,750 As of September 30, 2014, 1,361,985 1,101,000 288,000 629,000 38,000 472,000 250,000 As of September 30, 2014, there is approximately $ 965,000 2.03 Restricted Stock 2014 2013 Restricted Stock Non Vested at October 1 - 56,844 Awarded 300,000 - Vested (275,000) (56,844) Forfeited - - Non Vested at September 30 25,000 - 2014 2013 Non Vested at October 1 $ - $ 0.0024 Awarded 0.345 - Vested 0.345 0.0024 Forfeited - - Non Vested at September 30 $ 0.345 $ - Non-employee restricted shares subject to vesting are revalued at each vesting date and at the end of the reporting period, with all changes in fair value recorded as stock-based compensation expense. For the year ended September 30, 2014 and 2013, compensation expense recorded for the restricted stock awards was approximately $ 95,000 0 |
MERGER
MERGER | 12 Months Ended |
Sep. 30, 2014 | |
Business Combinations [Abstract] | |
MERGER | 6. MERGER On June 26, 2013, a merger (the “ Merger 14,645,237 |
8% CONVERTIBLE NOTES
8% CONVERTIBLE NOTES | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ||
8% CONVERTIBLE NOTES | 4. 8% CONVERTIBLE NOTES Beginning March 11, 2015 and through March 13, 2015, the Company entered into a series of substantially similar subscription agreements (each a “Subscription Agreement”) with each of Anson Investments Master Fund, Ltd., Equitec Specialists, LLC and Capital Ventures International (collectively, the “Note Investors”) pursuant to which the Company issued unsecured 8 750,000 250,000 The Notes become due and payable on March 13, 2016 (the “Stated Maturity Date”) and may not be prepaid. The Notes bear interest on the unpaid principal balance at a rate equal to eight percent ( 8.0 either (a) converted into shares of the Company’s common stock, $0.001 par value per share (“Common Stock”) or (b) the outstanding principal and accrued interest on the Notes is paid in full by the Company. Interest on the Notes becomes due and payable upon their conversion or the Stated Maturity Date and may become due and payable upon the occurrence of an event of default under the Notes. The Notes contain customary events of default, which include, among other things, (i) the Company’s failure to pay other indebtedness of $100,000 or more within the specified cure period for such breach; (iii) the acceleration of the stated maturity of such indebtedness; (iii) the insolvency of the Company; and (iv) the receipt of final, non-appealable judgments in the aggregate amount of $100,000 or more. At any time prior to the Stated Maturity Date, the holders of the Notes have the right to convert some or all of such Notes into the number of shares of Common Stock determined by dividing (a) the aggregate sum of the (i) principal amount of the Note to be converted, and (ii) amount of any accrued but unpaid interest with respect to such portion of the Note to be converted; and (b) the conversion price then in effect (the shares of Common Stock issuable upon such conversion, the “Conversion Shares”). The initial conversion price is $ 0.20 4.99 9.99 The issuance and sale of the Notes and Conversion Shares (collectively, the “Securities”) has not been, and will not upon issuance be, registered under the Securities Act of 1933, as amended (the “Securities Act”), and the Securities may not be offered or sold in the United States absent registration under or exemption from the Securities Act and any applicable state securities laws. The Securities were issued and sold in reliance upon an exemption from registration afforded by Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated under the Securities Act, based on the following facts: each of the Note Investors has represented that it is (and on the date of any conversion or sale of the Notes and/or Conversion Shares will be) an accredited investor as defined in Rule 501(a) promulgated under the Securities Act, that it is acquiring the Securities for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof in violation of applicable securities laws and that it has sufficient investment experience to evaluate the risks of the investment; the Company used no advertising or general solicitation in connection with the issuance and sale of the Securities to the Note Investors; the Securities were issued as restricted securities. Derivative Liabilities The Company accounted for the conversion feature embedded within the Notes in accordance with ASC 815-10, Derivatives and Hedging On the closing date, the derivative liability was recorded at fair value of $ 354,988 395,012 88,747 103,538 498,550 The value of the derivative liability as of June 30, 2015 was $ 411,753 149,622 56,765 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Convertible Debt Derivative Liability Beginning balance at September 30, 2014 $ - Issuances 354,988 Adjustments to estimated fair value 56,765 Ending balance at June 30, 2015 $ 411,753 March 15, June 30, 2015 2015 Stated interest rate 8.0 % 8.0 % Exercise price per share $ 0.20 $ 0.20 Expected volatility 90.0 % 70.0 % Risk-free interest rate 0.24 % 0.18 % Credit adjusted discount rate 20.0 % 19.0 % Remaining expected term of underlying securities (years) 1.00 .75 | 7. CONVERTIBLE NOTES PAYABLE From March 2006 through January 2013, the Company issued convertible notes for aggregate cash proceeds of $ 1,735,000 6 10 1,000,000 10 50 On July 5, 2011, the Company issued a convertible note for cash proceeds of $ 250,000 6 750,000 The Company held $ 1,245,000 50,000 1,345,000 On April 20, 2013, the convertible noteholders and the Company entered into an agreement to cancel the warrants and exchange the notes (with a total aggregate principal balance of $ 1,880,000 |
NOTE PAYABLE
NOTE PAYABLE | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Notes Payable [Abstract] | ||
NOTE PAYABLE | 5. NOTE PAYABLE On September 30, 2013, the Company entered into the Life Sciences Accelerator Funding Agreement (the “MLSC Loan Agreement”) with the Massachusetts Life Sciences Center (“MLSC”), pursuant to which MLSC provided an unsecured subordinated loan in the amount of $ 1,000,000 The loan bears interest at a rate of 10% per annum, and will become fully due and payable on the earlier of (i) September 30, 2018, (ii) the occurrence of an event of default under the MLSC Loan Agreement, or (iii) the completion of a sale of substantially all of our assets, a change-of-control transaction or one or more financing transactions in which we receive from third parties other than our then existing shareholders net proceeds of $5,000,000 or more in a 12-month period. 145,985 0.27 Of the $1,000,000, the Company allocated $ 944,707 55,293 2.64 0.0 10 114 2,765 8,294 964,060 955,766 | 12. Note Payable On September 30, 2013, the Company entered into the Life Sciences Accelerator Funding Agreement (the “MLSC Loan Agreement”) with the Massachusetts Life Sciences Center (“MLSC”), pursuant to which MLSC provided an unsecured subordinated loan in the amount of $1,000,000. The loan bears interest at a rate of 10% per annum, and will become fully due and payable on the earlier of (i) September 30, 2018, (ii) the occurrence of an event of default under the MLSC Loan Agreement, or (iii) the completion of a sale of substantially all of our assets, a change-of-control transaction or one or more financing transactions in which we receive net proceeds of $5,000,000 or more in a 12-month period. The MLSC Loan Agreement includes warrants to purchase 145,985 shares of the Company’s common stock at an exercise price of $0.27 per share. None of the warrants, which expire on September 30, 2023, have been exercised as of September 30, 2014. Of the $1,000,000, the Company allocated $944,707 to the loan and $55,293 to the warrants. The warrant valuation was derived with the Black-Scholes option pricing model with the following assumptions: risk free rate 2.64%, dividend yield 0.0%, expected life of 10 years, and volatility 114%. The fair value of the warrant was recorded as an increase to additional paid-in capital. The allocation of funds to the warrants resulted in a discount on the loan, which will be accreted to interest expense over the life of the loan. For the year ended September 30, 2014, $11,059 of the loan discount has been accreted to interest expense. As of September 30, 2014 the accreted balance of MLSC Loan was $955,766. |
PRIVATE PLACEMENT FINANCING
PRIVATE PLACEMENT FINANCING | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Private Placement Financing [Member] | ||
Private Placement [Line Items] | ||
PRIVATE PLACEMENT FINANCING | 6. PRIVATE PLACEMENT FINANCING On January 30, 2014, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with nine separate accredited investors (“2014 Investors”) providing for the issuance and sale by the Company to the 2014 Investors, in a private placement, of an aggregate of 11,400,000 0.25 34,200,000 2,850,000 Upon the closing of the 2014 Private Placement Financing on February 4, 2014 (the “Closing Date”), the Company entered into a registration rights agreement (the “2014 Registration Rights Agreement”) with the 2014 Investors, pursuant to which the Company became obligated, subject to certain conditions, to file with the Securities and Exchange Commission (“SEC”) on or before March 21, 2014 one or more registration statements to register for resale under the Securities Act of 1933, as amended, (i) the 2014 Shares and the 2014 Warrant Shares, plus (ii) an additional number of shares of Common Stock equal to 33% of the total number of 2014 Shares and 2014 Warrant Shares, to account for adjustments, if any, to the number of 2014 Warrant Shares issuable pursuant to the terms of the 2014 Warrants (the securities set forth in this clause (ii), the “Additional Shares”). Under the terms of the 2014 Registration Rights Agreement, the Company is permitted to reduce the number of shares covered by a registration statement if such reduction is required by the SEC as a condition for permitting such registration statement to become effective and treated as a resale registration statement (the “Cutback Provisions”). In response to comments received from the SEC and in accordance with the terms of the 2014 Registration Rights Agreement, the Company reduced the number of shares included in its draft resale registration statement by the number of Additional Shares. The Company’s failure to satisfy certain other obligations and deadlines set forth in the 2014 Registration Rights Agreement may subject the Company to payment of monetary penalties as discussed below. The resale registration statement was declared effective on July 2, 2014. As described below, in the event that we fail to comply with certain requirements in the 2014 Registration Rights Agreement, we may be required to pay liquidated damages to the investors. The 2014 Warrants were exercisable immediately upon issuance. The Series A warrants had an initial exercise price of $ 0.30 0.35 12 0.40 18 4.9 The Company may be required to make certain payments to the 2014 Investors under certain circumstances in the future pursuant to the terms of the Securities Purchase Agreement and the 2014 Registration Rights Agreement. These potential future payments include: (a) potential partial damages for failure to register the Common Stock issued or issuable upon exercise of 2014 Warrants (in a cash amount equal to 1% of the price paid to the Company by each investor in the 2014 Private Placement Financing on the date of and on each 30-day anniversary of such failure until the cure thereof; (b) amounts payable if the Company and its transfer agent fail to timely remove certain restrictive legends from certificates representing shares of Common Stock issued in the 2014 Private Placement Financing or issuable upon exercise of the 2014 Warrants; (c) expense reimbursement for the lead investor in the 2014 Private Placement Financing; and (d) payments in respect of claims for which the Company provides indemnification. There is no cap to the potential consideration. On July 2, 2014, we received from the SEC a Notice of Effectiveness of our Registration Statement related to the 2014 Private Placement Financing which satisfied some of our obligation to register these securities with the SEC. On December 1, 2014, the Company agreed to amend certain provisions of the 2014 Warrants (the “December 2014 Amendment”). Under the terms of the December 2014 Amendment, the affected 2014 Warrants were amended to (i) reduce the exercise price of the Series B Warrants from $ 0.35 0.20 0.40 0.20 1,300,170 As of December 2, 2014, Series B Warrants had been exercised for an aggregate issuance of 4,000,000 800,000 224,000 On March 13, 2015, the Company issued unsecured 8 750,000 0.20 5,700,000 11,400,000 17,100,000 624,016 During the quarter ended June 30, 2015, Series C Warrants had been exercised for an aggregate issuance of 2,255,000 451,000 75,321 On June 22, 2015 the Company entered into the Amendment to the Series A Warrants and Series C Warrants to purchase Common Stock (the “June 2015 Amendment”), with Cranshire Capital Master Fund, Ltd. (“Cranshire”), to (i) delete the full ratchet anti-dilution provisions set forth in the Series A Warrants and Series C Warrants; and (ii) extend the expiration date of the Series C Warrants from to 5:00 p.m., New York time, on July 2, 2015 to 5:00 p.m., New York time, on July 2, 2016. In consideration of Cranshire’s entrance into the June 2015 Amendment (and for no additional consideration), the Company agreed to issue to the holders of the 2014 Warrants up to 570,000 927,373 For the period ended June 30, 2015, 435,000 570,000 125,000 total of 560,000 Derivative Liabilities The Company accounted for the 2014 Warrants relating to the aforementioned 2014 Private Placement Financing in accordance with ASC 815-10, Derivatives and Hedging On February 4, 2014, the initial closing date of the 2014 Private Placement Financing, the derivative liabilities were recorded at fair value of $ 10,391,693 2,850,000 7,541,693 The value of the derivative liability as of June 30, 2015 and September 30, 2014 was $ 3,886,613 6,270,000 925,384 2,980,829 1,584,818 2,069,693 927,373 896,763 75,321 299,321 4,000,000 2,255,000 6,255,000 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Warrant Derivative Liability Beginning balance at September 30, 2014 $ 6,270,000 Modification of warrants, net of Inducement Shares 896,763 Exercises of warrants (299,321) Adjustments to estimated fair value (2,980,829) Ending balance at June 30, 2015 $ 3,886,613 September 30, December 1, March 15, June 22, June 30, 2014 2014 2015 2015 2015 Closing price per share of Common Stock $ 0.18 $ 0.25 $ 0.21 $ 0.23 $ 0.26 Exercise price per share $ 0.30 - 0.40 $ 0.20 - $0.30 $ 0.20 - $0.30 $ 0.20 $ 0.20 Expected volatility 85 - 90 % 80 90 % 80 110 % 55- 85 % 75-85 % Risk-free interest rate 0.02 - 1.55 % .01 1.39 % 0.03 1.41 % 0.27 - 1.68 % 0.28 1.63 % Dividend yield Remaining expected term of underlying securities (years) 0.33 - 4.33 0.33 4.6 0.22 4.3 1.03 4.03 1.01 4.01 Common Stock At the February 4, 2014 closing date of the 2014 Private Placement Financing, the Company issued 11,400,000 11,400 0.001 | 8. PRIVATE PLACEMENT FINANCING On January 30, 2014, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with nine separate accredited investors (“Investors”) providing for the issuance and sale by the Company to the Investors, in a private placement, of an aggregate of 11,400,000 shares of the Company’s common stock (collectively, the “Shares”) at a purchase price of $0.25 per share and three series of warrants, the Series A warrants, the Series B warrants and the Series C warrants, to purchase up to an aggregate of 34,200,000 shares of the Company’s common stock (collectively, the “Warrants,” and the shares issuable upon exercise of the Warrants, collectively, the “Warrant Shares”), for aggregate gross proceeds to the Company of approximately $2,850,000 (the “Private Placement Financing”). Upon the closing of the Private Placement Financing on February 4, 2014 (the “Closing Date”), the Company entered into a registration rights agreement (the “Registration Rights Agreement”) with the Investors, pursuant to which the Company became obligated, subject to certain conditions, to file with the Securities and Exchange Commission on or before March 21, 2014 one or more registration statements to register for resale under the Securities Act of 1933, as amended, (i) the Shares and the Warrant Shares, plus (ii) an additional number of shares of common stock equal to 33% of the total number of Shares and Warrant Shares, to account for adjustments, if any, to the number of Warrant Shares issuable pursuant to the terms of the Warrants (the securities set forth in this clause (ii), the “Additional Shares”). Under the terms of the Registration Rights Agreement, the Company is permitted to reduce the number of shares covered by a registration statement if such reduction is required by the SEC as a condition for permitting such registration statement to become effective and treated as a resale registration statement (the “Cutback Provisions”). In response to comments received from the SEC and in accordance with the terms of the Registration Rights Agreement, the Company reduced the number of shares included in its draft resale registration statement by the number of Additional Shares. The Company’s failure to satisfy certain other obligations and deadlines set forth in the Registration Rights Agreement may subject the Company to payment of monetary penalties as discussed below. The resale registration statement was declared effective on July 2, 2014. As described below, in the event that we fail to comply with certain requirements in the Registration Rights Agreement, we may be required to pay liquidated damages to the investors. The Warrants are exercisable immediately upon issuance. The Series A warrants have an exercise price of $ 0.30 0.35 12 0.40 18 4.9 The Company may be required to make certain payments to the investors in the Private Placement Financing under certain circumstances in the future pursuant to the terms of the Securities Purchase Agreement and the Registration Rights Agreement. These potential future payments include: (a) potential partial damages for failure to register the common stock issued or issuable upon exercise of Warrants (in a cash amount equal to 1% of the price paid to the Company by each investor in the Private Placement Financing on the date of and on each 30-day anniversary of such failure until the cure thereof); (b) amounts payable if the Company and its transfer agent fail to timely remove certain restrictive legends from certificates representing shares of common stock issued in the Private Placement Financing or issuable upon exercise of the Warrants; (c) expense reimbursement for the lead investor in the Private Placement Financing; and (d) payments in respect of claims for which the Company provides indemnification. There is no cap to the potential consideration. On July 2, 2014, we received from the SEC a Notice of Effectiveness of our Registration Statement related to the Private Placement which satisfied some of our obligation to register these securities with the SEC. Derivative Liabilities The Company accounted for the Warrants relating to the aforementioned Private Placement in accordance with ASC 815-10, Derivatives and Hedging On the closing date, the derivative liabilities were recorded at fair value of $ 10,391,693 2,850,000 7,541,693 The value of the derivative liability as of September 30, 2014 was $ 6,270,000 4,121,693 Fair Value Measurements Using Significant Unobservable Warrant Derivative Liability Beginning balance at September 30, 2013 $ Issuances 10,391,693 Adjustments to estimated fair value (4,121,693) Ending balance at September 30, 2014 $ 6,270,000 September 30, February 04, 2014 Closing price per share of common stock $0.18 $0.30 Exercise price per share $0.30 - 0.40 $0.30 - 0.40 Expected volatility 85 - 90% 100 - 125% Risk-free interest rate 0.02 - 1.55% 0.12-1.46% Dividend yield Remaining expected term of underlying securities (years) .33 4.33 1 - 5 Common Stock At the Closing Date, the Company issued 11,400,000 11,400 0.001 |
PRIVATE PLACEMENT FINANCING (20
PRIVATE PLACEMENT FINANCING (2015) | 9 Months Ended |
Jun. 30, 2015 | |
2015 Private Placement Financing | |
Private Placement [Line Items] | |
2015 PRIVATE PLACEMENT FINANCING | 2015 PRIVATE PLACEMENT FINANCING 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 0.22 0.25 3,100,000 The Company’s obligation to issue and sell the 2015 Shares and the Series D Warrants and the corresponding obligation of the 2015 Investors to purchase such 2015 Shares and Series D Warrants were subject to a number of conditions precedent including, but not limited to, the amendment of the Company’s Series A Warrants and Series C Warrants to delete certain of the anti-dilution provisions contained therein, as described in Footnote 6, Private Placement Financing, and other customary closing conditions. The conditions precedent were satisfied June 30, 2015 (the “Initial Closing Date”), and the Company conducted an initial closing (the “Initial Closing”) pursuant to which it sold and 19 of the 2015 Investors (the “Initial Investors”) purchased 13,936,367 3,066,000 454,387 100,000 454,387 100,000 On the Initial Closing Date, the Company entered into a registration rights agreement with the Initial Investors (the “ 2015 Registration Rights Agreement”), pursuant to which the Company will be obligated, subject to certain conditions, to file with the Securities and Exchange Commission within 90 days after the closing of the 2015 Private Placement Financing one or more registration statements (any such registration statement, a “Resale Registration Statement”) to register the 2015 Shares and the 2015 Warrant Shares for resale under the Securities Act of 1933, as amended (the “Securities Act”). The remaining 2015 Investor became a party to the 2015 Registration Rights Agreement upon the consummation of the Second Closing. The Company’s failure to satisfy certain filing and effectiveness deadlines with respect to a Resale Registration Statement and certain other requirements set forth in the 2015 Registration Rights Agreement may subject the Company to payment of monetary penalties. Following each Closing, each 2015 Investor was also issued Series D Warrants to purchase shares of the Company’s Common Stock up to 100% of the 2015 Shares purchased by such 2015 Investor under such 2015 Investor’s Subscription Agreement. The Series D Warrants have an exercise price of $ 0.25 Derivative Liabilities The Company accounted for the Series D Warrants relating to the aforementioned 2015 Private Placement Financing in accordance with ASC 815-10, Derivatives and Hedging On the Initial Closing Date, the derivative liabilities were recorded at fair value of $ 2,458,204 3,066,000 607,796 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Warrant Derivative Liability Beginning balance at September 30, 2014 $ - Issuances 2,458,204 Adjustments to estimated fair value - Ending balance at June 30, 2015 $ 2,458,204 June 30, 2015 Closing price per share of common stock $ 0.26 Exercise price per share $ 0.25 Expected volatility 85 % Risk-free interest rate 1.63 % Dividend yield Remaining expected term of underlying securities (years) 5.00 Common Stock At the June 30, 2015 Initial Closing Date of the 2015 Private Placement Financing, the Company issued 13,936,367 13,936 0.001 593,860 454,387 100,000 454,387 100,000 |
PRE MERGER WARRANTS
PRE MERGER WARRANTS | 12 Months Ended |
Sep. 30, 2014 | |
Warrants and Rights Note Disclosure [Abstract] | |
PRE MERGER WARRANTS | 10. PRE MERGER WARRANTS During the period from inception (March 6, 2006) through September 30, 2013, ABS had issued a total of 42 warrants, all of which were attached to various debt instruments and commitments issued by ABS. The warrants issued were convertible into shares of Series A Preferred Stock, $.01 par value at the conversion price equal to an aggregate amount ranging from 10% to up to 50% of the principal balance of the debt. Conversion of all warrants was contingent on ABS completing a Series A Preferred Equity Financing, defined as the sale of financing securities to a third party in which ABS receives gross proceeds from investors of at least $1,000,000, excluding the conversion of the notes. The warrants were cancelled in connection with the exchange of the debt for common shares pursuant to the Merger completed on June 26, 2013 described in Note 6. |
COLDSTREAM FINANCING
COLDSTREAM FINANCING | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Coldstream Financing [Abstract] | ||
COLDSTREAM FINANCING | COLDSTREAM FINANCING In contemplation of the Merger, on April 19, 2013, the Company entered into a financing agreement (the “Financing Agreement”) with Coldstream Summit Ltd. (“Coldstream”) pursuant to which we agreed to issue and sell, and Coldstream agreed to purchase or assist in securing the purchase of $ 2,000,000 0.50 0.75 4,000,000 4,000,000 2,000,000 | 11. Coldstream Financing In contemplation of the Merger, on April 19, 2013, the Company entered into a financing agreement (the “Financing Agreement”) with Coldstream Summit Ltd. (“Coldstream”) pursuant to which we agreed to issue and sell, and Coldstream agreed to purchase or assist in securing the purchase of $2,000,000 worth of units in a private offering within the 12-month period following the closing of the Merger (the “Coldstream Financing”). Each unit issued in the Coldstream Financing was to be sold at a price of $0.50 per share and was to consist of (i) one share of common stock and (ii) one warrant to purchase one share of common stock at an exercise price of $0.75 per share and with a term of 12 months. Pursuant to the Coldstream Financing, we issued and sold units consisting of 4,000,000 shares of common stock and warrants to purchase 4,000,000 shares of common stock for aggregate gross proceeds of $2,000,000. As of September 30, 2014, all warrants issued in connection with the Coldstream Financing have expired. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 13. COMMITMENTS AND CONTINGENCIES In the ordinary course of business, the Company enters into various agreements containing standard indemnification provisions. The Company's indemnification obligations under such provisions are typically in effect from the date of execution of the applicable agreement through the end of the applicable statute of limitations. The aggregate maximum potential future liability of the Company under such indemnification provisions is uncertain. As of September 30, 2014 and 2013, no amounts have been accrued related to such indemnification provisions. From time to time, the Company may be exposed to litigation in connection with its operations. The Company’s policy is to assess the likelihood of any adverse judgments or outcomes related to legal matters, as well as ranges of probable losses. MIT Licensing Agreement In December, 2007, the Company entered into a license agreement with MIT pursuant to which the Company acquired an exclusive world-wide license to develop and commercialize technology related to self-assembling peptide compositions, and methods of making and using such compositions in medical and non-medical applications, including claims that cover the Company’s proposed products and methods of use thereof. The license also provides non-exclusive rights to additional intellectual property in the fields that cover the Company’s proposed products and methods of use thereof, in order to provide freedom to operate. The license provides the Company a right to sublicense the exclusively licensed intellectual property. The Company has not sublicensed the exclusively licensed intellectual property to any party for any field. In exchange for the licenses granted in the agreement, the Company has paid MIT license maintenance fees and patent prosecution costs. The Company paid license maintenance fees of $ 35,000 25,000 45,000 35,000 Annual license maintenance obligations extend through the life of the patents. Year Ending 2015 $ 45,000 2016 50,000 2017 50,000 2018 50,000 $ 195,000 In addition, MIT is entitled to royalties on applicable future product sales, if any. The annual payments may be applied towards royalties payable to MIT for that year for product sales. The Company is obligated to indemnify MIT and related parties from losses arising from claims relating to the exercise of any rights granted to the Company under the license, with certain exceptions. The maximum potential amount of future payments the Company could be required to make under this provision is unlimited. The Company considers there to be a low performance risk as of September 30, 2014. The agreement expires upon the expiration or abandonment of all patents that are issued and licensed to the Company by MIT under such agreement. The Company expects that patents will be issued from presently pending U.S. and foreign patent applications. Any such patent will have a term of 20 Leases On August 30, 2013, the Company entered into a sublease agreement for an office facility located at 20 William Street, Suite 270, Wellesley, Massachusetts 02481, effective October 1, 2013. The Company has leased this office space pursuant to the terms of a sublease agreement (the “Sublease”) with Stream Global Services, Inc. Pursuant to the terms of the Sublease, the Company has agreed to rent the leased premises, comprising approximately 2,322 square feet, through March 31, 2015 for an annual base rent equal to $ 26 5,031 10,062 Year Ending 2015 $ 30,186 $ 30,186 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Subsequent Events [Abstract] | ||
SUBSEQUENT EVENTS | 9. SUBSEQUENT EVENTS During the period commencing July 1, 2015 and ending on August 5, 2015, additional Series A and Series C Warrants have been exercised for an aggregate issuance of 7,345,000 0.20 1,469,000 As part of the amendment made to the Series A Warrants and Series C Warrants to delete the full ratchet anti-dilution provisions set forth in the Series A Warrants and Series C Warrants and to extend the expiration date of the Series C Warrants, an additional 125,000 10,000 | 14. SUBSEQUENT EVENTS The Company entered into an agreement to amend certain provisions of the Warrants (the “ Amendment Following the Amendment, certain holders of the Private Placement Warrants exercised portions of their Series B Warrants, resulting in an aggregate issuance of 4,000,000 shares of the Company’s common stock (which increased the number of shares of common stock outstanding to 76,076,487), and gross proceeds to the Company of $800,000. |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Accounting Policies [Abstract] | ||
Basis of Accounting | Basis of Accounting The consolidated financial statements include the accounts of Arch Therapeutics, Inc. and its wholly owned subsidiary, Arch Biosurgery, Inc., a life science medical device company. All intercompany accounts and transactions have been eliminated in consolidation. The Company is in the development stage and is devoting substantially all of its efforts to developing technologies, raising capital, establishing customer and vendor relationships, and recruiting new employees. | Basis of Accounting The consolidated financial statements include the accounts of Arch Therapeutics and its wholly owned subsidiary, Arch Biosurgery, Inc., a life science medical device company. All intercompany accounts and transactions have been eliminated in consolidation. The Company is in the development stage and is devoting substantially all of its efforts to developing technologies, raising capital, establishing customer and vendor relationships, and recruiting new employees. Due to the fact that we are a development stage company, we have historically included inception-to-date information, and certain disclosures required under U.S. GAAP in our financial statements. The amendments in this ASU (2014-10) remove all incremental financial reporting requirements, except for certain required incremental disclosures from U.S. GAAP for development stage companies. We have elected to early adopt this ASU. The amendments required in this ASU have been applied retrospectively and all inception to date information has been removed from our financial statements presented within this Annual Report on Form 10-K. The clarification to Topic 275 was applied prospectively to all unrecognized tax benefits that existed at the effective date. |
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. | 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 Accounting Guidance | Recently Issued Accounting Guidance Accounting Standards Update (ASU) 2015-03 “Interest Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs” was issued by the FASB in April 2015. The purpose of this amendment requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. 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, 2015. Early application 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. ASU 2015-02, “Consolidation (Topic 810) Amendments to the Consolidation Analysis”, was issued by the FASB in February 2015. The purpose of this amendment is to change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. 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, 2015. Early application is permitted. The Company does not believe that this guidance will have a material impact on its consolidated results of operations or financial position or disclosures. ASU 2014-16, “Derivatives and Hedging (Topic 815)” was issued by the FASB in November 2014. The primary purpose of the ASU is to determine whether the host contract in a Hybrid Financial Instrument issued in the form of a share is more akin to debt or equity. ASU 2014-16 is effective for public entities for the fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated results of operations or financial position or disclosures. ASU 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40) Disclosure of Uncertainties about an Entity’s Ability to ‘Continue as a Going Concern” was issued by the FASB in August 2014. The primary purpose of the ASU is to provide guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendment should reduce diversity in the timing and content of footnote disclosure. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for the annual periods and interim periods thereafter. Early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated results of operations or financial position or disclosures. ASU 2014-12, “Compensation-Stock Compensation (Topic 718) Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” was issued by the FASB in June 2014. ASU 2014-12 requires that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for public business entities for annual periods and interim periods within the annual periods beginning after December 15, 2015. Early adoption is permitted. The Company is currently assessing the impact of this guidance, but does not believe that it will have a material impact on its consolidated results of operations, financial position or disclosures. ASU 2014-09, “Revenue from Contracts with Customers (Topic 606) was issued by the FASB in May 2014. The primary purpose of the ASU is to develop a common revenue standard for revenue recognition between the FASB and the International Accounting Standards Board (IASB). The ASU removes inconsistencies and weaknesses in revenue requirements, provides a more robust framework for addressing revenue issues, and improves comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets, among other items. We are a development stage company and do not currently generate revenue. ASU 2014-09 is effective for public business entities for annual periods beginning after December 15, 2017. While we are a development stage company and do not currently generate revenue, we currently anticipate generating revenue by the effective date of this ASU and therefore will be subject to this guidance. The Company is currently assessing the impact of this guidance, but does not believe that it will have a material impact on its consolidated results of operations, financial position or disclosures. ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, was issued by the FASB in April 2014. This update changes the criteria for reporting discontinued operations and requires additional disclosures about discontinued operations. ASU 2014-08 requires that an entity report as a discontinued operation only a disposal that represents a strategic shift in operations that has a major effect on its operations and financial results. ASU 2014-08 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2014. Early adoption is permitted, but only for a disposal (or classification as held for sale) that has not been reported in financial statements previously issued or made available for issuance. The ASU must be applied prospectively. The Company does not believe this guidance will have a material impact on its consolidated results of operations or financial position. | |
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. | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents. The Company maintains its cash in bank deposit 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 and cash equivalents. | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents. 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 and cash equivalents. |
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. | 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 | 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 |
Convertible Debt | Convertible Debt The Company records a discount to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized to noncash interest expense using the effective interest rate method over the term of the related debt to their date of maturity. If a security or instrument becomes convertible only upon the occurrence of a future event outside the control of the Company, or, is convertible from inception, but contains conversion terms that change upon the occurrence of a future event, then any contingent beneficial conversion feature is measured and recognized when the triggering event occurs and contingency has been resolved. | Convertible Debt The Company records a discount to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying preferred stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized to noncash interest expense using the effective interest rate method over the term of the related debt to their date of maturity. If a security or instrument becomes convertible only upon the occurrence of a future event outside the control of the Company, or, is convertible from inception, but contains conversion terms that change upon the occurrence of a future event, then any contingent beneficial conversion feature is measured and recognized when the triggering event occurs and contingency has been resolved. |
Income Taxes | Income Taxes In accordance with 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 probable that a loss will be incurred related to these matters and the amount of the loss is reasonably determinable. The Company has no reserves related to uncertain tax positions as of June 30, 2015 and September 30, 2014. | Income Taxes In accordance with 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 probable that a loss will be incurred related to these matters and the amount of the loss is reasonably determinable. The Company has no reserves related to uncertain tax positions as of September 30, 2014 and 2013. |
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. | 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 employee stock-based compensation in accordance with the guidance of ASC 718, Compensation-Stock Compensation Equity, In accordance with ASC 718, the Company has elected to use the Black-Scholes option pricing model to determine the fair value of options granted and recognizes the compensation cost of share-based awards on a straight-line basis over the vesting period of the award. 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 Company has a limited history of market prices of the common stock, and as such volatility is estimated in accordance with ASC 718-10-S99 Staff Accounting Bulletin (“SAB”) No. 107, Share-Based Payment | Accounting for Stock-Based Compensation The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation-Stock Compensation (“FASB ASC Topic 718”) that requires all share-based payments to employees, including grants of employee stock options, to be recognized in the consolidated financial statements based on their fair values. The Company accounts for non-employee stock-based compensation in accordance with the guidance of FASB ASC Topic 505, Equity , In accordance with FASB ASC Topic 718, the Company has elected to use the Black-Scholes option pricing model to determine the fair value of options granted and recognizes the compensation cost of share-based awards on a straight-line basis over the vesting period of the award. 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 Company does not have a history of market prices of the common stock, and as such volatility is estimated in accordance with ASC 718-10-S99 Staff Accounting Bulletin (“SAB”) No. 107, Share-Based Payment |
Fair Value Measurements | Fair Value Measurements The Company measures both financial and nonfinancial assets and liabilities in accordance with ASC 820, Fair Value Measurements and Disclosures The Company’s financial instruments include cash and cash equivalents. Because of their short maturity, the carrying amount of cash and cash equivalents are considered to approximate fair value. | 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 The Company’s financial instruments include cash and cash equivalents. Because of their short maturity, the carrying amount of cash and cash equivalents are considered to approximate fair value. |
Subsequent Events | Subsequent Events The Company evaluated all events or transactions that occurred through August 7, 2015 | Subsequent Events The Company evaluated all events or transactions that occurred through December 10, 2014 the date which these consolidated financial statements were available to be issued. The Company disclosed material subsequent events in Note 14. |
Going Concern Basis of Accounting | Going Concern Basis of Accounting The Company does not currently believe its existing cash resources are sufficient to meet its anticipated needs during the next twelve months. As reflected in the financial statements, the Company has an accumulated deficit, has suffered significant net losses and negative cash flows from operations, and has limited working capital. The continuation of our business as a going concern is dependent upon raising additional capital and eventually attaining and maintaining profitable operations. As of June 30, 2015, there is substantial doubt about our ability to continue as a going concern. The unaudited interim consolidated financial statements included in this report do not include any adjustments that might be necessary should operations discontinue. The Company expects to incur substantial expenses for the foreseeable future for the research, development and commercialization of its 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. The Company does not have sufficient cash and cash equivalents to support its current operating plan. The Company will be required to raise additional capital, obtain alternative means of financial support, or both, in order to continue to fund operations. Therefore, there exists substantial doubt about the Company’s ability to continue as a going concern. Historically, the Company has funded its operations primarily through equity and debt financings. | Going Concern Basis of Accounting The Company does not currently believe its existing cash resources are sufficient to meet its anticipated needs during the next twelve months. As reflected in the financial statements, the Company has an accumulated deficit, has suffered significant net losses and negative cash flows from operations, and has limited working capital. The continuation of our business as a going concern is dependent upon raising additional capital and eventually attaining and maintaining profitable operations. As of September 30, 2014, there is substantial doubt about our ability to continue as a going concern. The consolidated financial statements included in this report do not include any adjustments that might be necessary should operations discontinue. The Company expects to incur substantial expenses for the foreseeable future for the research, development and commercialization of its 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. The Company does not have sufficient cash and cash equivalents to support its current operating plan. The Company will be required to raise additional capital, obtain alternative means of financial support, or both, in order to continue to fund operations. Therefore, there exists substantial doubt about the Company’s ability to continue as a going concern. Historically, the Company has funded its operations primarily through equity and debt financings. 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. The consolidated financial statements include the accounts of the Company as of September 30, 2014 and 2013. All significant intercompany balances and transactions have been eliminated in consolidation. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2014 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | Estimated Useful Life 2014 2013 Furniture and fixtures 5 years $ 2,925 $ 2,925 Lab equipment 5 years 1,000 3,066 3,925 5,991 Less - accumulated depreciation 3,925 5,669 $ - $ 322 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax assets and liabilities | The principal components of the Company's net deferred tax assets consisted of the following at September 30: 2014 2013 Net operating loss carryforwards $ 2,731,492 $ 1,332,955 Capitalized expenditures 381,872 - Research and experimentation credit carryforwards 63,368 32,559 Stock based compensation 501,175 115,171 Fixed assets 1,568 7,492 Accrued expenses 46,230 35,744 Gross deferred tax assets 3,725,705 1,523,921 Deferred tax asset valuation allowance (3,725,705) (1,523,921) Net deferred tax assets $ - $ - |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Schedule of Share-based Compensation, Stock Options, Activity | Stock compensation activity under the 2013 Plan for the nine months ended June 30, 2015 follows: Weighted Weighted Average Aggregate Option Average Remaining Intrinsic Shares Exercise Contractual Value Outstanding Price Term (years) ($0’s) Outstanding at September 30, 2014 8,637,962 $ 0.34 - $ - Awarded 2,987,500 0.19 - - Exercised - - - - Forfeited (515,625) $ 0.35 - - Outstanding at June 30, 2015 11,109,837 $ 0.31 5.36 292,860 Vested 8,051,432 $ 0.32 4.74 160,901 Vested and expected to vest at June 30, 2015 11,109,837 $ 0.31 5.36 292,860 | Stock compensation activity under the 2013 Plan for the year ended September 30, 2014 follows: Option Weighted Weighted Aggregate Outstanding at October 1, 2013 3,000,000 $ 0.38 $ - Awarded 5,869,212 0.33 - - Exercised (231,250) 0.40 - - Forfeited - - - Outstanding at September 30, 2014 8,637,962 $ 0.34 5.46 2,750 Vested 4,645,935 $ 0.36 4.60 76 Vested and expected to vest at September 30, 2014 8,637,962 $ 0.34 5.46 2,750 |
Nonvested Restricted Stock Shares Activity | Restricted stock activity under the 2009 Plan and the 2013 Plan for the years ended September 30, 2014 and 2013 follows: 2014 2013 Restricted Stock Non Vested at October 1 - 56,844 Awarded 300,000 - Vested (275,000) (56,844) Forfeited - - Non Vested at September 30 25,000 - | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | The weighted average restricted stock award date fair value information for the years ended September 30, 2014 and 2013 follows: 2014 2013 Non Vested at October 1 $ - $ 0.0024 Awarded 0.345 - Vested 0.345 0.0024 Forfeited - - Non Vested at September 30 $ 0.345 $ - |
8% CONVERTIBLE NOTES (Tables)
8% CONVERTIBLE NOTES (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Derivative Liabilities at Fair Value | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Convertible Debt Derivative Liability Beginning balance at September 30, 2014 $ - Issuances 354,988 Adjustments to estimated fair value 56,765 Ending balance at June 30, 2015 $ 411,753 |
Schedule of Assumptions Used | The derivative liability was valued as of March 15, 2015 and June 30, 2015 using Monte Carlo Simulations with the following assumptions: March 15, June 30, 2015 2015 Stated interest rate 8.0 % 8.0 % Exercise price per share $ 0.20 $ 0.20 Expected volatility 90.0 % 70.0 % Risk-free interest rate 0.24 % 0.18 % Credit adjusted discount rate 20.0 % 19.0 % Remaining expected term of underlying securities (years) 1.00 .75 |
PRIVATE PLACEMENT FINANCING (Ta
PRIVATE PLACEMENT FINANCING (Tables) - Private Placement Financing [Member] | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Private Placement [Line Items] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Warrant Derivative Liability Beginning balance at September 30, 2014 $ 6,270,000 Modification of warrants, net of Inducement Shares 896,763 Exercises of warrants (299,321) Adjustments to estimated fair value (2,980,829) Ending balance at June 30, 2015 $ 3,886,613 | Fair Value Measurements Using Significant Unobservable Warrant Derivative Liability Beginning balance at September 30, 2013 $ Issuances 10,391,693 Adjustments to estimated fair value (4,121,693) Ending balance at September 30, 2014 $ 6,270,000 |
Schedule Of Assumptions Used To Value Derivative Liability | The derivative liabilities were valued as of September 30, 2014, December 1, 2014, March 15, 2015, June 22, 2015, and June 30, 2015 using Monte Carlo Simulation or Black Schole, as appropriate, with the following assumptions: September 30, December 1, March 15, June 22, June 30, 2014 2014 2015 2015 2015 Closing price per share of Common Stock $ 0.18 $ 0.25 $ 0.21 $ 0.23 $ 0.26 Exercise price per share $ 0.30 - 0.40 $ 0.20 - $0.30 $ 0.20 - $0.30 $ 0.20 $ 0.20 Expected volatility 85 - 90 % 80 90 % 80 110 % 55- 85 % 75-85 % Risk-free interest rate 0.02 - 1.55 % .01 1.39 % 0.03 1.41 % 0.27 - 1.68 % 0.28 1.63 % Dividend yield Remaining expected term of underlying securities (years) 0.33 - 4.33 0.33 4.6 0.22 4.3 1.03 4.03 1.01 4.01 | The derivative liabilities were valued as of February 4, 2014 and September 30, 2014, using Monte Carlo Simulation with the following assumptions: September 30, February 04, 2014 Closing price per share of common stock $0.18 $0.30 Exercise price per share $0.30 - 0.40 $0.30 - 0.40 Expected volatility 85 - 90% 100 - 125% Risk-free interest rate 0.02 - 1.55% 0.12-1.46% Dividend yield Remaining expected term of underlying securities (years) .33 4.33 1 - 5 |
PRIVATE PLACEMENT FINANCING (29
PRIVATE PLACEMENT FINANCING (2015) (Tables) - 2015 Private Placement Financing | 9 Months Ended |
Jun. 30, 2015 | |
Private Placement [Line Items] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Warrant Derivative Liability Beginning balance at September 30, 2014 $ - Issuances 2,458,204 Adjustments to estimated fair value - Ending balance at June 30, 2015 $ 2,458,204 |
Schedule Of Assumptions Used To Value Derivative Liability | The derivative liabilities were valued as of June 30, 2015 using Monte Carlo Simulation with the following assumptions: June 30, 2015 Closing price per share of common stock $ 0.26 Exercise price per share $ 0.25 Expected volatility 85 % Risk-free interest rate 1.63 % Dividend yield Remaining expected term of underlying securities (years) 5.00 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Annual License Maintenance Fee Commitments | The following table reflects the Company’s annual license maintenance fee commitments: Year Ending 2015 $ 45,000 2016 50,000 2017 50,000 2018 50,000 $ 195,000 |
Schedule of Future Minimum Leases Payments | The following table reflects the Company’s future minimum lease payments due under this noncancelable lease agreement as of September 30, 2014: Year Ending 2015 $ 30,186 $ 30,186 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Property, plant and equipment, gross, total | $ 3,925 | $ 5,991 |
Less - accumulated depreciation | 3,925 | 5,669 |
Property, plant and equipment, net, total | $ 0 | 322 |
Furniture and fixtures | ||
Property, plant and equipment, useful life | 5 years | |
Property, plant and equipment, gross, total | $ 2,925 | 2,925 |
Lab equipment | ||
Property, plant and equipment, useful life | 5 years | |
Property, plant and equipment, gross, total | $ 1,000 | $ 3,066 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | |
Depreciation expense | $ 0 | $ 322 | $ 322 | $ 586 |
Property, Plant and Equipment, Disposals | 2,066 | |||
Accumulated Depreciation | $ 2,066 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) | Sep. 30, 2014 | Sep. 30, 2013 |
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 2,731,492 | $ 1,332,955 |
Capitalized expenditures | 381,872 | 0 |
Research and experimentation credit carryforwards | 63,368 | 32,559 |
Stock based compensation | 501,175 | 115,171 |
Fixed assets | 1,568 | 7,492 |
Accrued expenses | 46,230 | 35,744 |
Gross deferred tax assets | 3,725,705 | 1,523,921 |
Deferred tax asset valuation allowance | (3,725,705) | (1,523,921) |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes [Line Items] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 6,230,000 | $ 3,486,000 |
Research and experimentation credit carryforwards | 63,368 | 32,559 |
Deferred tax assets, operating loss carryforwards, state and local | 5,271,000 | 2,800,000 |
Valuation allowance, deferred tax asset, change in amount | 2,202,000 | 589,000 |
Expire In 2023 | ||
Income Taxes [Line Items] | ||
Research and experimentation credit carryforwards | 19,000 | 10,000 |
Expire in 2029 | ||
Income Taxes [Line Items] | ||
Research and experimentation credit carryforwards | $ 44,112 | $ 32,559 |
Stock Based Compensation Stock
Stock Based Compensation Stock Option Activity (Detail) - Relationship to Entity [Domain] - USD ($) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Option Shares Outstanding | ||
Outstanding, Beginning Balance | 8,637,962 | |
Awarded | 2,987,500 | |
Exercised | 0 | |
Forfeited | (515,625) | |
Outstanding, Ending Balance | 11,109,837 | 8,637,962 |
Vested | 8,051,432 | |
Vested and expected to vest | 11,109,837 | |
Weighted Average Exercise Price | ||
Outstanding, Beginning Balance | $ 0.34 | |
Awarded | 0.19 | |
Exercised | 0 | |
Forfeited | 0.35 | |
Outstanding, Ending Balance | 0.31 | $ 0.34 |
Vested | 0.32 | |
Vested and expected to vest | $ 0.31 | |
Weighted Average Remaining Contractual Term (years) | ||
Awarded | ||
Exercised | ||
Forfeited | ||
Balance | 5 years 4 months 10 days | |
Vested | 4 years 8 months 26 days | |
Vested and expected to vest | 5 years 4 months 10 days | |
Aggregate Intrinsic Value | ||
Outstanding, Beginning Balance | $ 0 | |
Awarded | 0 | |
Exercised | 0 | |
Forfeited | 0 | |
Outstanding, Ending Balance | 292,860 | $ 0 |
Vested | 160,901 | |
Vested and expected to vest | $ 292,860 | |
Employee Stock Option [Member] | ||
Option Shares Outstanding | ||
Outstanding, Beginning Balance | 8,637,962 | 3,000,000 |
Awarded | 5,869,212 | |
Exercised | (231,250) | |
Forfeited | 0 | |
Outstanding, Ending Balance | 8,637,962 | |
Vested | 4,645,935 | |
Vested and expected to vest | 8,637,962 | |
Weighted Average Exercise Price | ||
Outstanding, Beginning Balance | $ 0.34 | $ 0.38 |
Awarded | 0.33 | |
Exercised | 0.40 | |
Outstanding, Ending Balance | 0.34 | |
Vested | 0.36 | |
Vested and expected to vest | $ 0.34 | |
Weighted Average Remaining Contractual Term (years) | ||
Awarded | ||
Exercised | ||
Forfeited | ||
Balance | 5 years 5 months 16 days | |
Vested | 4 years 7 months 6 days | |
Vested and expected to vest | 5 years 5 months 16 days | |
Aggregate Intrinsic Value | ||
Outstanding, Beginning Balance | $ 2,750 | $ 0 |
Awarded | 0 | |
Exercised | 0 | |
Forfeited | 0 | |
Outstanding, Ending Balance | 2,750 | |
Vested | 76 | |
Vested and expected to vest | $ 2,750 |
Stock Based Compensation Restri
Stock Based Compensation Restricted Stock Award Activity (Detail) - Restricted Stock - shares | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Weighted Average Grant Date Fair Value | ||
Non Vested, Beginning Balance | 0 | 56,844 |
Awarded | 300,000 | 0 |
Vested | (275,000) | (56,844) |
Forfeited | 0 | 0 |
Non Vested, Ending Balance | 25,000 | 0 |
Weighted Average Restricted Sto
Weighted Average Restricted Stock Award (Detail) - $ / shares | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non Vested, Beginning Balance | $ 0 | $ 0.0024 |
Awarded | 0.345 | 0 |
Vested | 0.345 | 0.0024 |
Forfeited | 0 | 0 |
Non Vested, Ending Balance | $ 0.345 | $ 0 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Detail) - USD ($) | Jul. 02, 2015 | Oct. 02, 2014 | Oct. 31, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Oct. 02, 2013 | Jun. 18, 2013 | Sep. 30, 2009 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
common stock, shares, issued | 92,702,854 | 92,702,854 | 72,076,487 | 60,145,237 | ||||||||
Increase In Aggregate Number Of Shares | 3,000,000 | |||||||||||
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average remaining contractual term | 5 years 4 months 10 days | |||||||||||
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price | $ 0.19 | |||||||||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate, minimum | 76.60% | 76.60% | 77.00% | |||||||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate, maximum | 119.40% | 119.40% | 134.00% | |||||||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate, minimum | 0.25% | 0.25% | 0.83% | |||||||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate, maximum | 2.40% | 2.40% | 2.52% | |||||||||
Share based compensation arrangement by share based payment award fair value assumptions expected forfeiture rate | 0.00% | 0.00% | 0.00% | |||||||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected dividend rate | 0.00% | 0.00% | 0.00% | |||||||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 1,257,544 | 1,257,544 | 1,361,985 | |||||||||
Allocated share-based compensation expense | $ 1,101,000 | $ 288,000 | ||||||||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 2 years 11 days | |||||||||||
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | ||||||||
Stock Issued During Period, Shares, New Issues | 454,387 | 454,387 | ||||||||||
Restricted Stock or Unit Expense | $ 95,000 | $ 0 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 2,987,500 | |||||||||||
Research and Development Expense | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Allocated share-based compensation expense | $ 122,342 | $ 112,304 | $ 396,668 | $ 461,312 | 629,000 | 38,000 | ||||||
General and Administrative Expense | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Allocated share-based compensation expense | $ 128,013 | 132,941 | $ 462,958 | 287,287 | $ 472,000 | $ 250,000 | ||||||
Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price | $ 0.22 | |||||||||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term | 10 years | 10 years | 10 years | |||||||||
Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price | $ 0.17 | |||||||||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term | 1 year | 1 year | 2 years 4 months 24 days | |||||||||
Employees And Directors | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Allocated share-based compensation expense | $ 250,000 | $ 859,626 | ||||||||||
Stock Issued During Period, Shares, New Issues | 5,304,212 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 7,254,212 | |||||||||||
Consultants | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Allocated share-based compensation expense | $ 245,000 | $ 748,600 | ||||||||||
Stock Issued During Period, Shares, New Issues | 3,565,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 4,602,500 | 2,465,000 | ||||||||||
Employees | ||||||||||||
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 | 3,404,212 | |||||||||||
Employees | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price | $ 0.37 | |||||||||||
Employees | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price | $ 0.17 | |||||||||||
2013 Stock Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
common stock, shares, issued | 7,825,388 | |||||||||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, total | $ 549,278 | $ 549,278 | $ 965,000 | |||||||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 8 months 19 days | |||||||||||
Common Stock, Shares Authorized | 13,114,256 | 10,231,197 | 10,231,197 | |||||||||
Share-based compensation arrangement by share-based payment award, number of additional shares authorized | 2,883,059 | 2,405,809 | ||||||||||
2013 Stock Incentive Plan | Employees And Directors | ||||||||||||
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 | 1,950,000 | |||||||||||
2013 Stock Incentive Plan | Consultants | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,037,500 | |||||||||||
2013 Stock Incentive Plan | Consultants | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average remaining contractual term | 10 years | 10 years | ||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | |||||||||||
2013 Stock Incentive Plan | Consultants | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average remaining contractual term | 1 year | 3 years | ||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | |||||||||||
2009 Stock Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
common stock, shares, issued | 707,460 | |||||||||||
2009 Stock Incentive Plan | Consultants | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Additional Common Stock Shares Subject To Vesting Issued | 116,973 | |||||||||||
2009 Stock Incentive Plan | Employees | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common Stock Shares Subject To Vesting Issued | 579,026 |
Estimated fair market value of
Estimated fair market value of the derivative liability (Detail) - Fair Value, Inputs, Level 3 [Member] - Convertible Debt [Member] | 9 Months Ended |
Jun. 30, 2015USD ($) | |
Derivative [Line Items] | |
Beginning balance at September 30, 2014 | $ 0 |
Issuances | 354,988 |
Adjustments to estimated fair value | 56,765 |
Ending balance at June 30, 2015 | $ 411,753 |
Derivative liability for Monte
Derivative liability for Monte Carlo Simulations (Detail) - Derivative Liability - $ / shares | Mar. 15, 2015 | Jun. 30, 2015 |
Derivative [Line Items] | ||
Stated interest rate | 8.00% | 8.00% |
Exercise price per share | $ 0.20 | $ 0.20 |
Expected volatility | 90.00% | 70.00% |
Risk-free interest rate | 0.24% | 0.18% |
Credit adjusted discount rate | 20.00% | 19.00% |
Remaining expected term of underlying securities (years) | 1 year | 9 months |
8% CONVERTIBLE NOTES - Addition
8% CONVERTIBLE NOTES - Additional Information (Detail) - USD ($) | Mar. 15, 2015 | Mar. 13, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Jan. 31, 2013 |
8% Convertible Notes [Line Items] | ||||||||
Debt Instrument, Convertible, Conversion Price | $ 0.20 | |||||||
Interest Expense, Debt | $ 2,765 | $ 8,294 | $ 2,765 | $ 8,294 | $ 11,059 | |||
Convertible Notes Payable, Current | 498,550 | 498,550 | $ 0 | |||||
Debt [Member] | ||||||||
8% Convertible Notes [Line Items] | ||||||||
Interest Expense, Debt | 88,747 | 103,538 | ||||||
Convertible Notes Payable, Current | $ 498,550 | $ 498,550 | ||||||
Maximum [Member] | ||||||||
8% Convertible Notes [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 9.99% | |||||||
Minimum [Member] | ||||||||
8% Convertible Notes [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 4.99% | |||||||
Subscription Agreement [Member] | ||||||||
8% Convertible Notes [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 750,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | |||||
Debt Conversion, Description | either (a) converted into shares of the Companys common stock, $0.001 par value per share (Common Stock) or (b) the outstanding principal and accrued interest on the Notes is paid in full by the Company. Interest on the Notes becomes due and payable upon their conversion or the Stated Maturity Date and may become due and payable upon the occurrence of an event of default under the Notes. The Notes contain customary events of default, which include, among other things, (i) the Companys failure to pay other indebtedness of $100,000 or more within the specified cure period for such breach; (iii) the acceleration of the stated maturity of such indebtedness; (iii) the insolvency of the Company; and (iv) the receipt of final, non-appealable judgments in the aggregate amount of $100,000 or more. | |||||||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | $ 354,988 | $ 411,753 | $ 411,753 | |||||
Other Noncash Expense | $ 149,622 | $ 56,765 | ||||||
Proceeds from Issuance of Debt | $ 395,012 | |||||||
Subscription Agreement [Member] | Investor [Member] | ||||||||
8% Convertible Notes [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 250,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | 25 Months Ended | 31 Months Ended | 83 Months Ended | 91 Months Ended | ||||||||
Nov. 30, 2010 | Feb. 28, 2009 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Feb. 28, 2011 | Dec. 31, 2008 | Jan. 31, 2013 | Sep. 30, 2013 | Apr. 30, 2013 | Mar. 31, 2013 | Oct. 31, 2012 | Sep. 30, 2012 | Jul. 05, 2011 | |
Related Party Transaction [Line Items] | |||||||||||||||
Proceeds from convertible debt | $ 750,000 | $ 0 | $ 0 | $ 250,000 | $ 275,200 | $ 105,000 | $ 1,735,000 | ||||||||
Convertible preferred stock, value, upon closing of preferred equity financing | $ 1,000,000 | 1,000,000 | $ 750,000 | ||||||||||||
Percentage of principle balance of notes on conversion price of notes | 20.00% | ||||||||||||||
Debt instrument, maturity date | Aug. 10, 2010 | ||||||||||||||
Percentage of conversion price of convertible preferred stock | 20.00% | ||||||||||||||
Current maturities of convertible notes payable, related parties | $ 105,000 | $ 1,345,000 | |||||||||||||
Cash bonus | $ 500,000 | ||||||||||||||
Debt instrument, convertible, threshold amount | 1,000,000 | ||||||||||||||
Convertible preferred stock value upon closing | $ 100,000 | ||||||||||||||
Matured Convertible Notes | $ 50,000 | $ 50,000 | $ 1,245,000 | ||||||||||||
Related Parties | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Convertible notes, total aggregate principal balance | $ 1,880,000 | ||||||||||||||
Matured Convertible Notes | $ 50,000 | $ 50,000 | $ 55,000 | ||||||||||||
Maximum | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Percentage of principle balance of notes on conversion price of notes | 10.00% | 50.00% | 50.00% | ||||||||||||
Minimum | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Percentage of principle balance of notes on conversion price of notes | 6.00% | 10.00% | 10.00% | ||||||||||||
Accrued Interest Through December Thirty One Two Thousand And Nine | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Percentage of principle balance of notes on conversion price of notes | 6.00% | ||||||||||||||
Accrued Interest Beginning January One Two Thousand And Ten | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Percentage of principle balance of notes on conversion price of notes | 10.00% |
Merger - Additional Information
Merger - Additional Information (Detail) | 1 Months Ended |
Jun. 26, 2013shares | |
Schedule Of Merger [Line Items] | |
Stock issued during period shares acquisitions | 14,645,237 |
NOTE PAYABLE - Additional Infor
NOTE PAYABLE - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Apr. 19, 2013 | |
Note Payable [Line Items] | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.75 | ||||||
Interest Expense, Debt | $ 2,765 | $ 8,294 | $ 2,765 | $ 8,294 | $ 11,059 | ||
Debt instrument, unamortized discount | 964,060 | 964,060 | 955,766 | ||||
Loans | |||||||
Note Payable [Line Items] | |||||||
Notes Payable, Total | $ 944,707 | 944,707 | 944,707 | ||||
2014 Warrant | |||||||
Note Payable [Line Items] | |||||||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 55,293 | $ 55,293 | |||||
Fair Value Assumptions, Risk Free Interest Rate | 2.64% | 2.64% | |||||
Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | |||||
Fair Value Assumptions, Expected Term | 10 years | 10 years | |||||
Fair Value Assumptions, Expected Volatility Rate | 114.00% | 114.00% | |||||
Massachusetts Life Sciences Center | |||||||
Note Payable [Line Items] | |||||||
Subordinated Debt | $ 1,000,000 | ||||||
Debt Instrument, Payment Terms | The loan bears interest at a rate of 10% per annum, and will become fully due and payable on the earlier of (i) September 30, 2018, (ii) the occurrence of an event of default under the MLSC Loan Agreement, or (iii) the completion of a sale of substantially all of our assets, a change-of-control transaction or one or more financing transactions in which we receive from third parties other than our then existing shareholders net proceeds of $5,000,000 or more in a 12-month period. | ||||||
Warrants Issued To Purchase Of Common Stock | 145,985 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.27 |
Convertible Notes Payable - Add
Convertible Notes Payable - Additional Information (Detail) - USD ($) | Jul. 05, 2011 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Feb. 28, 2011 | Dec. 31, 2008 | Jan. 31, 2013 | Sep. 30, 2013 | Apr. 30, 2013 | Mar. 31, 2013 | Oct. 31, 2012 | Sep. 30, 2012 |
Short-term Debt [Line Items] | |||||||||||||
Proceeds from convertible debt | $ 750,000 | $ 0 | $ 0 | $ 250,000 | $ 275,200 | $ 105,000 | $ 1,735,000 | ||||||
Convertible preferred stock, value, upon closing of preferred equity financing | $ 750,000 | $ 1,000,000 | 1,000,000 | ||||||||||
Matured Convertible Notes | $ 50,000 | $ 50,000 | $ 1,245,000 | ||||||||||
Percentage of principle balance of notes on conversion price of notes | 20.00% | ||||||||||||
Convertible Notes Payable Related Parties Current | $ 105,000 | $ 1,345,000 | |||||||||||
Related Parties [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Convertible notes, total aggregate principal balance | $ 1,880,000 | ||||||||||||
Matured Convertible Notes | $ 50,000 | $ 50,000 | $ 55,000 | ||||||||||
Minimum | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Debt instrument, interest rate, stated percentage | 6.00% | ||||||||||||
Percentage of principle balance of notes on conversion price of notes | 6.00% | 10.00% | 10.00% | ||||||||||
Maximum | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Debt instrument, interest rate, stated percentage | 10.00% | ||||||||||||
Percentage of principle balance of notes on conversion price of notes | 10.00% | 50.00% | 50.00% | ||||||||||
Convertible Notes Payable | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Proceeds from convertible debt | $ 250,000 | ||||||||||||
Debt instrument, interest rate, stated percentage | 6.00% |
Pre Merger Warrants - Additiona
Pre Merger Warrants - Additional Information (Detail) - USD ($) | 12 Months Ended | 83 Months Ended | 91 Months Ended |
Sep. 30, 2014 | Jan. 31, 2013 | Sep. 30, 2013 | |
Class of Warrant or Right [Line Items] | |||
Debt Conversion, Converted Instrument, Warrants or Options Issued | 42 | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||
Percentage of principle balance of notes on conversion price of notes | 20.00% | ||
Proceeds from Issuance or Sale of Equity | $ 1,000,000 | ||
Minimum [Member] | |||
Class of Warrant or Right [Line Items] | |||
Percentage of principle balance of notes on conversion price of notes | 6.00% | 10.00% | 10.00% |
Maximum [Member] | |||
Class of Warrant or Right [Line Items] | |||
Percentage of principle balance of notes on conversion price of notes | 10.00% | 50.00% | 50.00% |
COLDSTREAM FINANCING - Addition
COLDSTREAM FINANCING - Additional Information (Detail) - Class of Stock [Domain] - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Apr. 19, 2013 | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Coldstream Financing [Line Items] | ||||
Proceeds from issuance of private placement | $ 2,000,000 | $ 451,000 | $ 2,850,000 | |
Unit issued price per share. | $ 0.50 | |||
Class of warrant or right, exercise price of warrants or rights | $ 0.75 | |||
Proceeds from investors in contemplation of merger | $ 2,000,000 | |||
Common Stock, Shares Issued | 92,702,854 | 72,076,487 | 60,145,237 | |
Coldstream Financing | ||||
Coldstream Financing [Line Items] | ||||
Warrants issued to purchase of common stock | 4,000,000 | |||
Common Stock, Shares Issued | 4,000,000 |
Annual License Maintenance Fee
Annual License Maintenance Fee Commitments (Detail) | Sep. 30, 2014USD ($) |
Contractual Obligation Fiscal Year Maturity [Line Items] | |
2,015 | $ 45,000 |
2,016 | 50,000 |
2,017 | 50,000 |
2,018 | 50,000 |
Contractual obligation, total | $ 195,000 |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments Due (Detail) | Sep. 30, 2014USD ($) |
Schedule Of Future Minimum Rental Payments For Operating Leases [Line Items] | |
2,015 | $ 30,186 |
Future minimum payments due, Total | $ 30,186 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2013USD ($)ft² | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
Commitments And Contingencies [Line Items] | |||
License Maintenance Costs | $ 35,000 | $ 25,000 | |
Payments For Rent Per Square Foot | $ 26 | ||
Payments For Rent Monthly Payments | 5,031 | ||
Payments For Security Deposits | $ 10,062 | ||
Contractual Obligation | $ 195,000 | ||
Area of Land | ft² | 2,322 | ||
Patents | |||
Commitments And Contingencies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
MIT Licensing Agreement | |||
Commitments And Contingencies [Line Items] | |||
Contractual Obligation | $ 45,000 | $ 35,000 |
PRIVATE PLACEMENT FINANCING - A
PRIVATE PLACEMENT FINANCING - Additional Information (Detail) - USD ($) | Jul. 02, 2015 | Jun. 30, 2015 | Mar. 13, 2015 | Dec. 02, 2014 | Dec. 01, 2014 | Jul. 31, 2015 | Jun. 22, 2015 | Jan. 30, 2014 | Apr. 19, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Feb. 04, 2014 | Jan. 31, 2013 |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Stock issued during period, shares, new issues | 454,387 | 454,387 | |||||||||||||||
Proceeds from issuance of common stock | $ 100,000 | $ 100,000 | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.75 | ||||||||||||||||
Common Stock | $ 92,702 | $ 92,702 | $ 92,702 | $ 72,051 | $ 60,145 | ||||||||||||
Common Stock, Shares Issued | 92,702,854 | 92,702,854 | 92,702,854 | 72,076,487 | 60,145,237 | ||||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||
Derivative, Fair Value, Net, Total | $ 927,373 | $ 10,391,693 | |||||||||||||||
Exercises of Warrants | $ 2,000,000 | $ 451,000 | 2,850,000 | ||||||||||||||
Fair Value Of Derivative Liabilities In Excess Of Proceeds | $ 0 | $ 0 | 0 | $ (7,541,693) | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease) | (925,384) | 1,584,818 | $ 2,924,064 | 2,069,693 | 4,121,693 | $ 0 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 6,270,000 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | ||||||||||||||||
Gain On Warrant Derivative Modification | $ 624,016 | 927,373 | $ 896,763 | ||||||||||||||
Gain On Exercise Of Warrants | $ 75,321 | 0 | 299,321 | 0 | |||||||||||||
Gains (Losses) on Extinguishment of Debt | $ 224,000 | ||||||||||||||||
Stock Issued During Period Inducement Shares | $ 570,000 | $ 435,000 | |||||||||||||||
Minimum [Member] | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||||||||||
Maximum [Member] | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||||||||||||||
2014 Private Placement | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Stock issued during period, shares, new issues | 14,390,754 | 11,400,000 | |||||||||||||||
Share price | $ 0.22 | $ 0.25 | $ 0.22 | $ 0.22 | |||||||||||||
Common Stock Issuance Upon Exercise Of Warrants | 34,200,000 | ||||||||||||||||
Proceeds from issuance of common stock | $ 3,100,000 | $ 2,850,000 | $ 800,000 | ||||||||||||||
Common Stock | $ 13,936 | $ 13,936 | $ 13,936 | $ 11,400 | |||||||||||||
Common Stock, Shares Issued | 11,400,000 | 11,400,000 | |||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||
Derivative, Fair Value, Net, Total | $ 2,458,204 | $ 2,458,204 | $ 2,458,204 | $ 10,391,693 | |||||||||||||
Exercises of Warrants | 2,850,000 | 3,066,000 | |||||||||||||||
Fair Value Of Derivative Liabilities In Excess Of Proceeds | 7,541,693 | 593,860 | 607,796 | $ 7,541,693 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease) | $ 1,584,818 | $ 2,069,693 | |||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $ 3,886,613 | $ 3,886,613 | $ 3,886,613 | $ 6,270,000 | |||||||||||||
Series A Warrants | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | |||||||||||||
Reduction In Exercise Price Of Warrants | $ 0.20 | ||||||||||||||||
Additional Warrants Issued | 5,700,000 | ||||||||||||||||
Series A Warrants | Minimum [Member] | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Class of Warrant or Right, Outstanding | 11,400,000 | ||||||||||||||||
Series A Warrants | Maximum [Member] | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Class of Warrant or Right, Outstanding | 17,100,000 | ||||||||||||||||
Series B Warrants | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Proceeds from issuance of common stock | $ 800,000 | ||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | |||||||||||||
Exercise Term Of Warrants | 12 months | ||||||||||||||||
Common Stock, Shares Issued | 4,000,000 | ||||||||||||||||
Derivative, Fair Value, Net, Total | $ 2,255,000 | $ 2,255,000 | $ 2,255,000 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 4,000,000 | ||||||||||||||||
Class of Warrant or Right, Outstanding | 2,255,000 | 2,255,000 | 2,255,000 | ||||||||||||||
Gain On Warrant Derivative Modification | $ 1,300,170 | ||||||||||||||||
Series B Warrants | Minimum [Member] | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.20 | ||||||||||||||||
Series B Warrants | Maximum [Member] | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | 0.35 | ||||||||||||||||
Series B Warrants | After Issuance | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Exercise Term Of Warrants | 12 years | ||||||||||||||||
Series C Warrants | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | |||||||||||||
Percentage Of Exercisability Of Warrants | 4.90% | 4.90% | |||||||||||||||
Exercise Term Of Warrants | 18 months | ||||||||||||||||
Class of Warrant or Right, Outstanding | 6,255,000 | 6,255,000 | 6,255,000 | ||||||||||||||
Series C Warrants | Minimum [Member] | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | 0.20 | ||||||||||||||||
Series C Warrants | Maximum [Member] | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.40 | ||||||||||||||||
Series C Warrants | After Issuance | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Exercise Term Of Warrants | 18 years | ||||||||||||||||
2014 Warrant | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||||||||||||
Debt Instrument, Face Amount | $ 750,000 | ||||||||||||||||
2014 Warrant | 2014 Private Placement | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Stock issued during period, shares, new issues | 570,000 | ||||||||||||||||
Subsequent Event | |||||||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||||||||||
Stock Issued During Period, Shares, Other | 125,000 | ||||||||||||||||
Description For Total Inducement Shares | total of 560,000 |
Fair Value Measurements Using S
Fair Value Measurements Using Significant Unobservable Inputs Level 3 (Detail) - USD ($) | Mar. 13, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 |
Balance | $ 6,270,000 | |||||
Modification of warrants, net of Inducement Shares | $ 624,016 | $ 927,373 | 896,763 | |||
Exercises of Warrants | (75,321) | $ 0 | (299,321) | $ 0 | ||
Adjustments to estimated fair value | 0 | $ 0 | 0 | 7,541,693 | ||
Balance | $ 6,270,000 | |||||
Fair Value, Inputs, Level 3 | ||||||
Balance | 6,270,000 | $ 0 | 0 | |||
Issuances | 10,391,693 | |||||
Adjustments to estimated fair value | (4,121,693) | |||||
Balance | 6,270,000 | |||||
Fair Value, Inputs, Level 3 | Private Placement Financing [Member] | ||||||
Balance | 6,270,000 | |||||
Modification of warrants, net of Inducement Shares | 896,763 | |||||
Exercises of Warrants | (299,321) | |||||
Adjustments to estimated fair value | (2,980,829) | |||||
Balance | $ 3,886,613 | $ 3,886,613 | $ 6,270,000 |
Assumptions Used For Derivative
Assumptions Used For Derivative Liability (Detail) - $ / shares | Mar. 15, 2015 | Dec. 01, 2014 | Jun. 30, 2015 | Jun. 22, 2015 | Sep. 30, 2014 | Feb. 04, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Closing price per share of Common Stock | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Derivative liabilities Assumptions | ||||||||
Closing price per share of Common Stock | 0.18 | $ 0.30 | $ 0.18 | |||||
Dividend yield | 0.00% | 0.00% | ||||||
Derivative liabilities Assumptions | Private Placement Financing | ||||||||
Closing price per share of Common Stock | $ 0.21 | $ 0.25 | 0.26 | $ 0.23 | $ 0.18 | $ 0.18 | ||
Exercise price per share | $ 0.20 | $ 0.20 | ||||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |||
Maximum | Derivative liabilities Assumptions | ||||||||
Exercise price per share | $ 0.40 | $ 0.40 | $ 0.40 | |||||
Expected volatility | 125.00% | 90.00% | ||||||
Risk-free interest rate | 1.46% | 1.55% | ||||||
Remaining expected term of underlying securities (years) | 5 years | 4 years 3 months 29 days | ||||||
Maximum | Derivative liabilities Assumptions | Private Placement Financing | ||||||||
Exercise price per share | $ 0.30 | $ 0.30 | $ 0.40 | $ 0.40 | ||||
Expected volatility | 110.00% | 90.00% | 85.00% | 85.00% | 90.00% | |||
Risk-free interest rate | 1.41% | 1.39% | 1.63% | 1.68% | 1.55% | |||
Remaining expected term of underlying securities (years) | 4 years 3 months 18 days | 4 years 7 months 6 days | 4 years 4 days | 4 years 11 days | 4 years 3 months 29 days | |||
Minimum | Derivative liabilities Assumptions | ||||||||
Exercise price per share | $ 0.30 | $ 0.30 | $ 0.30 | |||||
Expected volatility | 100.00% | 85.00% | ||||||
Risk-free interest rate | 0.12% | 0.02% | ||||||
Remaining expected term of underlying securities (years) | 1 year | 3 months 29 days | ||||||
Minimum | Derivative liabilities Assumptions | Private Placement Financing | ||||||||
Exercise price per share | $ 0.20 | $ 0.20 | $ 0.30 | $ 0.30 | ||||
Expected volatility | 80.00% | 80.00% | 75.00% | 55.00% | 85.00% | |||
Risk-free interest rate | 0.03% | 0.01% | 0.28% | 0.27% | 0.02% | |||
Remaining expected term of underlying securities (years) | 2 months 19 days | 3 months 29 days | 1 year 4 days | 1 year 11 days | 3 months 29 days |
PRIVATE PLACEMENT FINANCING (54
PRIVATE PLACEMENT FINANCING (2015) - Additional Information (Detail) - USD ($) | Jul. 02, 2015 | Jun. 30, 2015 | Jan. 30, 2014 | Apr. 19, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 22, 2015 | Feb. 04, 2014 | Sep. 30, 2013 |
Private Placement [Line Items] | ||||||||||||
Stock Issued During Period, Shares, New Issues | 454,387 | 454,387 | ||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.75 | |||||||||||
Proceeds from Issuance of Common Stock | $ 100,000 | $ 100,000 | ||||||||||
Derivative, Fair Value, Net, Total | $ 10,391,693 | $ 927,373 | ||||||||||
Proceeds from Issuance of Private Placement | $ 2,000,000 | 451,000 | 2,850,000 | |||||||||
Fair Value Of Derivative Liabilities In Excess Of Proceeds | $ 0 | $ 0 | 0 | $ (7,541,693) | ||||||||
Common Stock | $ 92,702 | $ 92,702 | $ 92,702 | $ 72,051 | $ 60,145 | |||||||
2015 Investor | ||||||||||||
Private Placement [Line Items] | ||||||||||||
Stock Issued During Period, Shares, New Issues | 454,387 | 454,387 | ||||||||||
Proceeds from Issuance of Common Stock | $ 100,000 | $ 100,000 | ||||||||||
Series D Warrants | ||||||||||||
Private Placement [Line Items] | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.25 | $ 0.25 | $ 0.25 | |||||||||
Series A and Series C Warrants [Member] | ||||||||||||
Private Placement [Line Items] | ||||||||||||
Stock Issued During Period, Shares, New Issues | 13,936,367 | |||||||||||
Proceeds from Issuance of Common Stock | $ 3,066,000 | |||||||||||
2015 Private Placement | ||||||||||||
Private Placement [Line Items] | ||||||||||||
Stock Issued During Period, Shares, New Issues | 14,390,754 | 11,400,000 | ||||||||||
Share Price | $ 0.22 | $ 0.25 | 0.22 | $ 0.22 | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Proceeds from Issuance of Common Stock | $ 3,100,000 | $ 2,850,000 | $ 800,000 | |||||||||
Derivative, Fair Value, Net, Total | 2,458,204 | $ 2,458,204 | $ 2,458,204 | $ 10,391,693 | ||||||||
Proceeds from Issuance of Private Placement | 2,850,000 | 3,066,000 | ||||||||||
Fair Value Of Derivative Liabilities In Excess Of Proceeds | 7,541,693 | 593,860 | $ 607,796 | $ 7,541,693 | ||||||||
Common Stock | $ 13,936 | $ 13,936 | $ 13,936 | $ 11,400 | ||||||||
2015 Private Placement | Series D Warrants | ||||||||||||
Private Placement [Line Items] | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.25 | $ 0.25 | $ 0.25 |
Derivative liability for Mont55
Derivative liability for Monte Carlo Simulations - 2015 Private Placement Financing (Detail) - $ / shares | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Feb. 04, 2014 | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Private Placement [Line Items] | ||||
Closing price per share of Common Stock | $ 0.001 | $ 0.001 | $ 0.001 | |
Derivative Liabilities Assumptions | ||||
Private Placement [Line Items] | ||||
Closing price per share of Common Stock | $ 0.30 | $ 0.18 | ||
Dividend yield | 0.00% | 0.00% | ||
2015 Private Placement Financing | Derivative Liabilities Assumptions | ||||
Private Placement [Line Items] | ||||
Closing price per share of Common Stock | 0.26 | |||
Exercise price per share | $ 0.25 | |||
Expected volatility | 85.00% | |||
Risk-free interest rate | 1.63% | |||
Dividend yield | 0.00% | |||
Remaining expected term of underlying securities (years) | 5 years |
Fair Value Measurements Using56
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - 2015 Private Placement (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Private Placement [Line Items] | |||||
Balance | $ 6,270,000 | ||||
Adjustments to estimated fair value | $ 0 | $ 0 | 0 | $ (7,541,693) | |
Balance | $ 6,270,000 | ||||
Fair Value, Inputs, Level 3 [Member] | |||||
Private Placement [Line Items] | |||||
Balance | 6,270,000 | $ 0 | 0 | ||
Issuances | 10,391,693 | ||||
Adjustments to estimated fair value | 4,121,693 | ||||
Balance | 6,270,000 | ||||
2015 Private Placement Financing | Fair Value, Inputs, Level 3 [Member] | |||||
Private Placement [Line Items] | |||||
Balance | 0 | ||||
Issuances | 2,458,204 | ||||
Adjustments to estimated fair value | 0 | ||||
Balance | $ 2,458,204 | $ 2,458,204 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Jul. 02, 2015 | Jun. 30, 2015 | Aug. 05, 2015 | Jul. 31, 2015 | Jan. 30, 2014 | Jun. 30, 2015 | Sep. 30, 2014 | Dec. 01, 2014 | Feb. 04, 2014 | Sep. 30, 2013 |
Business Acquisition, Equity Interests Issued Or Issuable [Line Items] | ||||||||||
Common stock, par or stated value per share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Common stock, shares, outstanding | 92,702,854 | 92,702,854 | 72,076,487 | 60,145,237 | ||||||
Proceeds from Issuance of Common Stock | $ 100,000 | $ 100,000 | ||||||||
Private Placement | ||||||||||
Business Acquisition, Equity Interests Issued Or Issuable [Line Items] | ||||||||||
Common stock, par or stated value per share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Common stock, shares, outstanding | 76,076,487 | |||||||||
Proceeds from Issuance of Common Stock | $ 3,100,000 | $ 2,850,000 | $ 800,000 | |||||||
Series B Warrants | Private Placement | ||||||||||
Business Acquisition, Equity Interests Issued Or Issuable [Line Items] | ||||||||||
Common stock aggregate issuance | 4,000,000 | |||||||||
Series B Warrants | Subsequent Event | Minimum | ||||||||||
Business Acquisition, Equity Interests Issued Or Issuable [Line Items] | ||||||||||
Common stock, par or stated value per share | $ 0.20 | |||||||||
Series B Warrants | Subsequent Event | Maximum | ||||||||||
Business Acquisition, Equity Interests Issued Or Issuable [Line Items] | ||||||||||
Common stock, par or stated value per share | 0.35 | |||||||||
Series C Warrants | Subsequent Event | Minimum | ||||||||||
Business Acquisition, Equity Interests Issued Or Issuable [Line Items] | ||||||||||
Common stock, par or stated value per share | 0.20 | |||||||||
Series C Warrants | Subsequent Event | Maximum | ||||||||||
Business Acquisition, Equity Interests Issued Or Issuable [Line Items] | ||||||||||
Common stock, par or stated value per share | $ 0.40 | |||||||||
Series A and Series C Warrants [Member] | ||||||||||
Business Acquisition, Equity Interests Issued Or Issuable [Line Items] | ||||||||||
Proceeds from Issuance of Common Stock | $ 3,066,000 | |||||||||
Series A and Series C Warrants [Member] | Subsequent Event | ||||||||||
Business Acquisition, Equity Interests Issued Or Issuable [Line Items] | ||||||||||
Common stock, par or stated value per share | $ 0.20 | |||||||||
Proceeds from Issuance of Common Stock | $ 1,469,000 | |||||||||
Common stock aggregate issuance | 7,345,000 | |||||||||
Inducement Shares Issued | 125,000 | |||||||||
Remaininig Inducement Shares Issued | 10,000 |