Arch Therapeutics (ARTH) 10-K 5 Dec 16 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2016	Dec. 02, 2016	Mar. 31, 2016
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Entity Registrant Name	Arch Therapeutics, Inc.
Entity Central Index Key	1,537,561
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 27,300,000
Trading Symbol	ARTH
Entity Common Stock, Shares Outstanding		137,882,075

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Current assets:
Cash	$ 5,036,476	$ 3,960,100
Prepaid expenses and other current assets	107,784	42,919
Total current assets	5,144,260	4,003,019
Total assets	5,144,260	4,003,019
Current liabilities:
Accounts payable	374,896	231,761
Accrued expenses and other liabilities	299,487	245,478
Accrued Interest	304,770	0
Note payable, net of unamortized discount	899,627	0
Convertible notes, net of unamortized discount	0	473,747
Current derivative liabilities	0	335,092
Total current liabilities	1,878,780	1,286,078
Long-term liabilities:
Note payable, net of unamortized discount and current portion	78,255	966,824
Accrued interest, net of current portion	26,230	210,000
Total long-term liabilities	104,485	1,176,824
Total liabilities	1,983,265	2,462,902
Commitments and contingencies (see Note 12)
Stockholders' equity:
Common stock, $0.001 par value, 300,000,000 shares authorized, 136,657,075 and 107,592,205 shares issued and outstanding as of September 30, 2016 and September 30, 2015, respectively	134,432	107,392
Additional paid-in capital	24,741,153	17,154,945
Accumulated deficit	(21,714,590)	(15,722,220)
Total stockholders’ equity	3,160,995	1,540,117
Total liabilities and stockholders' equity	$ 5,144,260	$ 4,003,019

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Sep. 30, 2015
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	300,000,000	300,000,000
Common Stock, Shares Issued	136,657,075	107,592,205
Common Stock, Shares Outstanding	136,657,075	107,592,205

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Revenues	$ 0	$ 0
Operating expenses:
General and administrative expenses	4,367,476	3,700,477
Research and development expenses	1,683,299	1,760,037
Total operating expenses	6,050,775	5,460,514
Operating loss	(6,050,775)	(5,460,514)
Other income (expense):
Interest expense	(276,687)	(377,805)
Gain on exercise of warrants and conversion of debt	142,964	386,612
Loss on warrant derivative modification, net of inducement shares	0	(1,032,113)
Decrease to fair value of derivative	192,128	3,536,294
Total other income (expense)	58,405	2,512,988
Net loss	$ (5,992,370)	$ (2,947,526)
Earnings per share - basic and diluted
Net loss per common share - basic and diluted	$ (0.05)	$ (0.04)
Weighted common shares - basic and diluted	121,462,897	81,394,873

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance at Sep. 30, 2014	$ (6,892,443)	$ 72,051	$ 5,810,200	$ (12,774,694)
Beginning balance (in shares) at Sep. 30, 2014		72,051,487
Net loss	(2,947,526)	$ 0	0	(2,947,526)
Issuance of restricted stock for services	166,157	$ 475	165,682	0
Issuance of restricted stock for services (in shares)		475,000
Reclassification of Series A and C Warrants	3,263,753	$ 0	3,263,753	0
Shares issued for the exercise of warrants	3,600,000	$ 18,687	3,581,313	0
Shares issued for the exercise of warrants (in shares)		18,686,801
Shares issued for the exercise of stock options	0	$ 462	(462)	0
Shares issued for the exercise of stock options (in shares)		462,298
Shares issued in consideration for extending the Series C Warrants and eliminating the Ratchet Provision	135,352	$ 570	134,782	0
Shares issued in consideration for extending the Series C Warrants and eliminating the Ratchet Provision (in shares)		570,000
Issuance of stock in private placement funding	3,015,966	$ 14,391	3,001,575	0
Issuance of stock in private placement funding (in shares)		14,390,754
Shares issued for the conversion of the convertible notes	151,173	$ 756	150,417	0
Shares issued for the conversion of the convertible notes (in shares)		755,865
Stock based compensation expense	1,047,685	$ 0	1,047,685	0
Ending balance at Sep. 30, 2015	1,540,117	$ 107,392	17,154,945	(15,722,220)
Ending balance (in shares) at Sep. 30, 2015		107,392,205
Net loss	(5,992,370)	$ 0	0	(5,992,370)
Issuance of restricted stock for services	52,500	$ 150	52,350	0
Issuance of restricted stock for services (in shares)		150,000
Shares issued for the exercise of warrants	2,708,749	$ 11,845	2,696,904	0
Shares issued for the exercise of warrants (in shares)		11,844,516
Shares issued for the exercise of stock options	$ 0	$ 69	(69)	0
Shares issued for the exercise of stock options (in shares)	362,500	68,967
Exercise of Series A Warrants Cashless	$ 0	$ 2,334	(2,334)	0
Exercise of Series A Warrants Cashless (in shares)		2,333,559
Issuance of stock in private placement funding	3,108,939	$ 9,418	3,099,521	0
Issuance of stock in private placement funding (in shares)		9,418,334
Shares issued for the conversion of the convertible notes	644,900	$ 3,224	641,676	0
Shares issued for the conversion of the convertible notes (in shares)		3,224,494
Stock based compensation expense	1,098,160	$ 0	1,098,160	0
Ending balance at Sep. 30, 2016	$ 3,160,995	$ 134,432	$ 24,741,153	$ (21,714,590)
Ending balance (in shares) at Sep. 30, 2016		134,432,075

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net loss	$ (5,992,370)	$ (2,947,526)
Adjustments to reconcile net loss to cash used in operating activities:
Stock-based compensation	1,098,160	1,047,685
Noncash interest expense on notes payable	276,687	377,805
Issuance of restricted stock for services	52,500	166,157
Gain on exercise of warrants and conversion of debt	(142,964)	(386,612)
Loss on warrant derivative modification, net of inducement shares	0	1,032,113
Decrease to fair value of derivative	(192,128)	(3,536,294)
(Increase) decrease in:
Prepaid expenses and other current assets	(64,865)	551
Increase (decrease) in:
Accounts payable	137,420	55,929
Accrued expenses and other liabilities	80,533	(49,194)
Net cash used in operating activities	(4,747,027)	(4,239,386)
Cash flows from financing activities:
Proceeds from exercise of warrants	2,708,749	3,600,000
Proceeds from issuance of common stock and warrants	3,114,654	3,015,966
Proceeds from issuance of convertible notes	0	750,000
Net cash provided by financing activities	5,823,403	7,365,966
Net increase in cash	1,076,376	3,126,580
Cash, beginning of year	3,960,100	833,520
Cash, end of year	5,036,476	3,960,100
Non-cash financing activities
Financing Costs on issuance of common stock and warrants	5,715	0
Cashless exercise of Series A warrants	2,334	686
Conversion of 8% convertible notes and accrued interest to common stock	644,900	151,173
Cashless exercise of stock options	69	462
Issuance of inducement shares	0	135,352
Reclass of Series A and Series C Warrants from derivative liabilities to equity	0	3,263,753
Conversion Feature embedded in convertible note	$ 0	$ 354,988

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	12 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	1. DESCRIPTION OF BUSINESS Arch Therapeutics, Inc., (together with its subsidiary, the “Company” or “Arch”) was incorporated under the laws of the State of Nevada on September 16, 2009, under the name “Almah, Inc.”. Effective June 26, 2013, the Company completed a merger (the “Merger”) with Arch Biosurgery, Inc. (formerly known as Arch Therapeutics, Inc.), a Massachusetts corporation (“ABS”), and Arch Acquisition Corporation (“Merger Sub”), the Company’s wholly owned subsidiary formed for the purpose of the transaction, pursuant to which Merger Sub merged with and into ABS and ABS thereby became the wholly owned subsidiary of the Company. As a result of the acquisition of ABS, the Company abandoned its prior business plan and changed its operations to the business of a biotechnology company. Our principal offices are located in Framingham, Massachusetts. For financial reporting purposes, the Merger represented a “reverse merger”. ABS was deemed to be the accounting acquirer in the transaction and the predecessor of Arch. Consequently, the accumulated deficit and the historical operations that are reflected in the Company’s consolidated financial statements prior to the Merger are those of ABS. All share information has been restated to reflect the effects of the Merger. The Company’s financial information has been consolidated with that of ABS after consummation of the Merger on June 26, 2013, and the historical financial statements of the Company before the Merger have been replaced with the historical financial statements of ABS before the Merger in this report. ABS was incorporated under the laws of the Commonwealth of Massachusetts on March 6, 2006 as Clear Nano Solutions, Inc. On April 7, 2008, ABS changed its name from Clear Nano Solutions, Inc. to Arch Therapeutics, Inc. Effective upon the closing of the Merger, ABS changed its name from Arch Therapeutics, Inc. to Arch Biosurgery, Inc. The Company 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 debt borrowings, the issuance of convertible debt, and the issuance of 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. 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	12 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	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”). The consolidated financial statements include the accounts of Arch Therapeutics, Inc. and its wholly owned subsidiary, Arch Biosurgery, Inc., a biotechnology company. All intercompany accounts and transactions have been eliminated in consolidation. 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 and retaining 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. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company had no cash equivalents as of September 30, 2016 and September 30, 2015. Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash. The Company maintains its cash in bank deposits accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash. Deferred Offering Costs consist of fees and expenses incurred in connection with the public offering and sale of the Company’s common stock, including legal, accounting, printing and other related expenses, as well as costs incurred in connection with the filing of a shelf registration statement. 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 September 30, 2016 and 2015. 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 FASB ASC Topic 718, Compensation-Stock Compensation 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 The Company measures both financial and nonfinancial assets and liabilities in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures At September 30, 2016 and 2015, the carrying amounts of cash, accounts payable, accrued expenses and other liabilities, and convertible notes approximate fair value because of their short-term nature. The fair value of note payable, which is influenced by interest rates and the Company’s liquidity, approximates carrying value. The Company evaluated all events or transactions that occurred commencing from October 1, 2016 and ending on December 1, 2016 the date which these consolidated financial statements were issued. The Company disclosed material subsequent events in Note 13. As reflected in the consolidated financial statements, the Company has an accumulated deficit, has suffered significant net losses and negative cash flows from operations, has not generated operating revenues, 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. In particular, as of September 30, 2016, the Company will be required to raise additional capital, obtain alternative means of financial support, or both, in order to continue to fund operations, and therefore there is substantial doubt about our ability to continue as a going concern. 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. Historically, the Company has principally funded operations through debt borrowings, the issuance of convertible debt, and the issuance of units consisting of common stock and warrants. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The consolidated financial statements do not include any adjustments that might result from this uncertainty.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	3. PROPERTY AND EQUIPMENT At September 30, 2016 and 2015, property and equipment consisted of: Estimated Useful Life 2016 2015 Furniture and fixtures 5 years $ 2,925 $ 2,925 Lab equipment 5 years 1,000 1,000 3,925 3,925 Less - accumulated depreciation 3,925 3,925 $ - $ -

INCOME TAXES

INCOME TAXES	12 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	4. INCOME TAXES 2016 2015 Net operating loss carryforwards $ 5,424,530 $ 3,748,426 Capitalized expenditures 1,104,928 802,769 Research and experimentation credit carryforwards 458,417 164,252 Stock based compensation 1,463,474 1,014,654 Property and Equipment 1,578 1,569 Accrued expenses 171,083 124,716 Gross deferred tax assets 8,624,010 5,856,386 Deferred tax asset valuation allowance (8,624,010) (5,856,386) Net deferred tax assets $ - $ - As of September 30, 2016 and 2015, the Company had federal net operating loss carryforwards of approximately $ 13,675,000 9,509,000 380,982 139,744 As of September 30, 2016 and 2015, the Company had state net operating loss carryforwards of approximately $ 12,814,000 8,487,000 119,000 37,000 As the Company has not yet achieved profitable operations, management believes the tax benefits as of September 30, 2016 and 2015 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 2016 and 2015 by approximately $ 2,767,000 2,130,000 The Company experienced an ownership change as a result of the Merger described in Note 1, 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. As of September 30, 2016, the Company is open to examination in the U.S. federal and certain state jurisdictions for tax years ended September 30, 2016, 2015, 2014, and 2013.

PRIVATE PLACEMENT FINANCING 201

PRIVATE PLACEMENT FINANCING 2014	12 Months Ended
	Sep. 30, 2016
2014 Private Placement
Private Placement [Line Items]
PRIVATE PLACEMENT FINANCING	5. 2014 PRIVATE PLACEMENT FINANCING On January 30, 2014, the Company entered into a Securities Purchase Agreement (the “ Securities Purchase Agreement 2014 Investors 11,400,000 2014 Shares 0.25 34,200,000 2014 Warrants 2014 Warrant Shares 2,850,000 2014 Private Placement Financing Upon the closing of the 2014 Private Placement Financing on February 4, 2014 (the “ Closing Date 2014 Registration Rights Agreement Securities Act Additional Shares Cutback Provisions 2014 S-1 The 2014 Registration Rights Agreement also obligated the Company to register the resale of all securities covered by the 2014 Registration Rights Agreement on a short-form registration statement on Form S-3 as soon as the Company becomes eligible to use Form S-3. On October 31, 2016, the Company filed a resale registration statement on Form S-3 (the “ 2014 S-3 The 2014 Warrants were exercisable immediately upon issuance. The Series A warrants had an initial exercise price of $ 0.30 0.35 12 2014 Registration Statement Effective Date 0.40 18 11,400,000 Anti-Dilution Provisions 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 December 1, 2014, the Company entered into an agreement with Cranshire Capital Master Fund, Ltd. (“ Cranshire December 2014 Amendment 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 Prior to June 22, 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 an amendment to the Series A Warrants and Series C Warrants to purchase Common Stock (the “June 2015 Amendment”), with Cranshire, to (i) delete the Anti-Dilution Provisions 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 3,263,753 During the year ended September 30, 2016, Series C Warrants had been exercised on a cash basis for an aggregate issuance of 3,400,000 680,000 4,300,000 860,000 3,925,000 2,333,559 6,000,000 8,000,000 2,800,000 1,750,000 0.001 Derivative Liabilities The Company initially accounted for the 2014 Warrants relating to the aforementioned 2014 Private Placement Financing in accordance with ASC 815-10, Derivatives and Hedging 3,263,753 The values of the derivative liability as of September 30, 2015 were $ 0 896,763 2,980,829 4,000,000 Fair Value Measurements Using Significant Unobservable Warrant Derivative 2015 Beginning balance at September 30, 2014 $ 6,270,000 Issuances - Modification of warrants, net of Inducement Shares 896,763 Exercises of warrants (299,321) Adjustments to estimated fair value (3,603,689) Reclass of Derivative Liability to Equity (3,263,753) Ending balance at September 30, 2015 $ - December 1, March 15, June 22, Closing price per share of Common Stock $ 0.25 $ 0.21 $ 0.23 Exercise price per share $ 0.20 - $0.30 $ 0.20 - $0.30 $ 0.20 Expected volatility 80 – 90 % 80 – 110 % 55- 85 % Risk-free interest rate .01 – 1.39 % 0.03 – 1.41 % 0.27 - 1.68 % Dividend yield — — — Remaining expected term of underlying securities (years) 0.33 – 4.6 0.22 – 4.3 1.03 – 4.03 As of Exercises during th As of Closing price per share of Common Stock $ 0.26 $ 0.23-0.27 $ 0.27 Exercise price per share $ 0.20 $ 0.20 $ 0.20 Expected volatility 75-85 % 75- 85 % 75-85 % Risk-free interest rate 1.63 % 0.23-1.36 % 0.21-1.09 % Dividend yield — — — Remaining expected term of underlying securities (years) 1.01 0.80-3.96 0.76-3.76

PRIVATE PLACEMENT FINANCING 212

PRIVATE PLACEMENT FINANCING 2015	12 Months Ended
	Sep. 30, 2016
2015 Private Placement Financing [Member]
Private Placement [Line Items]
PRIVATE PLACEMENT FINANCING	6. 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 2015 Investors 14,390,754 Unit 0.22 2015 Private Placement Financing 2015 Shares 0.25 Series D Warrants 3,200,000 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 Note 5, 2014 Private Placement Financing, and other customary closing conditions. The conditions precedent were satisfied June 30, 2015 (the “ Initial Closing Date Initial Closing Initial Investors 13,936,367 3,066,000 Second Closing Closings 100,000 On the Initial Closing Date, the Company entered into a registration rights agreement with the Initial Investors (the “ 2015 Registration Rights Agreement Resale Registration Statement 2015 S-1 The 2015 Registration Rights Agreement also obligated the Company to register the resale of all securities covered by the 2015 Registration Rights Agreement on a short-form registration statement on Form S-3 as soon as the Company becomes eligible to use Form S-3. On October 31, 2016, the Company filed a resale registration statement on Form S-3 (the “ 2015 S-3 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 During the year ended September 30, 2016, Series D Warrants had been exercised on a cash basis for an aggregate issuance of 3,439,091 859,773 Common Stock At the June 30, 2015 Initial Closing Date of the 2015 Private Placement Financing, the Company issued 13,936,367 454,387 Equity Value of Warrants The Company accounted for the Series D Warrants relating to the aforementioned 2015 Private Placement Financing in accordance with ASC 815-40, Derivatives and Hedging

PRIVATE PLACEMENT FINANCING 213

PRIVATE PLACEMENT FINANCING 2016	12 Months Ended
	Sep. 30, 2016
Private Placement 2016 [Member]
Private Placement [Line Items]
PRIVATE PLACEMENT FINANCING	7. 2016 PRIVATE PLACEMENT FINANCING Beginning May 24, 2016 and through May 26, 2016, we entered into a series of substantially similar subscription agreements (each a “ 2016 Subscription Agreement 2016 Investors 9,418,334 0.36 2016 Private Placement Financing 0.75 0.4380 Series E Warrants Series E Warrant Shares The number of shares of Common Stock into which each of the Series E Warrants is exercisable and the exercise price therefor are subject to adjustment as set forth in the Series E Warrants, including adjustments for stock subdivisions or combinations (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise). In addition, (i) at any time during the term of the Series E Warrants, we may reduce the then-current exercise price to any amount and for any period of time deemed appropriate by our Board of Directors (the “ Board provided, however provided that st We engaged Maxim Group LLC (“ Maxim 8.2 Maxim Investors 3,390,600 2,084,000 170,888 On May 26, 2016, we entered into a registration rights agreement with the 2016 Investors (the “ 2016 Registration Rights Agreement SEC 2016 S-1 Securities Act 16,482,082 9,418,334 7,063,748 The 2016 Registration Rights Agreement also obligated the Company to register the resale of all securities covered by the 2016 Registration Rights Agreement on a short-form registration statement on Form S-3 as soon as the Company becomes eligible to use Form S-3. On October 31, 2016, the Company filed a resale registration statement on Form S-3 (the “ 2016 S-3 Following the Closing, each 2016 Investor was also issued Series E Warrants to purchase shares of the Company’s Common Stock up to 75 During the year ended September 30, 2016, Series E Warrants had been exercised on a cash basis for an aggregate issuance of 705,425 308,976 Common Stock At May 26, 2016, the Closing Date of the 2016 Private Placement Financing, the Company issued 9,418,334 shares of Common Stock. Equity Value of Warrants The Company accounted for the Series E Warrants relating to the aforementioned 2016 Private Placement Financing in accordance with ASC 815-40, Derivatives and Hedging

8% CONVERTIBLE NOTES

8% CONVERTIBLE NOTES	12 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
8% CONVERTIBLE NOTES	8. 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. On September 8, 2015, we, along with the current holders of the Convertible Notes, entered into a series of substantially similar subordination agreements with the Massachusetts Life Sciences Center (“ MLSC Subordination Agreements 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. During the year ended September 30, 2016, $ 605,000 39,900 3,224,494 145,000 6,173 755,865 0 605,000 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 $ 354,988 395,012 131,252 223,7835 145,000 725,000 0 473,747 142,964 192,128 67,395 87,291 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Convertible 2016 2015 Beginning balance at September 30, $ 335,092 $ - Issuance - 354,988 Conversion of notes (142,964) (87,291) Adjustments to estimated fair value (192,128) 67,395 Ending balance at September 30, $ - $ 355,092 September 30, October 29, December 31, 2015 2015 2015 Stated interest rate 8.0 % 8.0 % 8.0 % Exercise price per share $ 0.20 $ 0.20 $ 0.20 Expected volatility 80.0 % 85.0 % 110.0 % Risk-free interest rate 0.07 % 0.14 % 0.16 % Credit adjusted discount rate 22.0 % 22.0 % 25.0 % Remaining expected term of underlying securities (years) 0.46 0.38 0.21

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	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, 2016, a maximum number of 16,114,256 3,000,000 3,000,000 19,114,256 As of September 30, 2016, a total of 11,214,212 5,077,500 Share-based awards During the year ended September 30, 2016, the Company granted options to employees and directors to purchase 2,735,000 425,000 1 10 3 0.38 0.72 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 year ended September 30, 2016 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 year ended September 30, 2016; expected volatility, 76.57 119.44 0.59 2.40 0.00 0.00 1 10 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. Prior to the year ended September 30, 2015, the Company did not experience any forfeitures of stock options. During the year ended September 30, 2016, the Company experienced an insignificant number of forfeitures of stock options granted. Since the Company has a limited history of stock option forfeitures it continues to estimate the forfeiture rate of its outstanding stock options as zero, but will continually evaluate its historical data as a basis for determining expected forfeitures. Common Stock Options Option Weighted Weighted Aggregate Outstanding at September 30, 2015 10,776,500 $ 0.30 - $ - Awarded 3,160,000 $ 0.43 - - Exercised (362,500) $ 0.32 - - Forfeited (1,194,790) $ 0.39 - - Outstanding at September 30, 2016 12,379,210 $ 0.33 6.40 $ 4,341,816 Vested 9,033,226 $ 0.31 6.26 $ 3,304,049 Vested and expected to vest at September 30, 2016 12,379,210 $ 0.33 6.40 $ 4,341,816 As of September 30, 2016, 2,447,527 938,000 1,048,000 270,000 466,000 668,000 582,000 As of September 30, 2016, there is approximately $ 676,000 1.9 Restricted Stock On August 9, 2016, we entered into a follow-on consulting agreement with Acorn. In consideration of the services to be provided under and in accordance with the terms of the consulting agreement, we issued (i) 225,000 0.72 375,000 0.72 75,000 75,000 75,000 125,000 90 125,000 120 125,000 150 2016 2015 Restricted Stock Non Vested at October 1 - 25,000 Awarded 225,000 - Vested - (25,000) Forfeited - - Non Vested at September 30 225,000 - 2016 2015 Non Vested at October 1 $ - $ 0.345 Awarded 0.72 - Vested - 0.345 Forfeited - - Non Vested at September 30 $ 0.72 $ - 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, 2016 and 2015, compensation expense recorded for the restricted stock awards was approximately $ 0 9,000

Restricted Stock Awarded Outsid

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan	12 Months Ended
	Sep. 30, 2016
RESTRICTED STOCK [Line Items]
Restricted Assets Disclosure	10. Restricted Stock Awarded Outside the 2013 Stock Incentive Plan On May 3, 2016, the Company awarded 2,000,000 100 On August 6, 2015, we entered into separate consulting agreements with two investor relations firms, Excelsior Global Advisors LLC (“ Excelsior Acorn 300,000 0.35 150,000 150,000 75,000 50,000 25,000 2016 2015 Restricted Stock Non Vested at October 1 150,000 - Awarded 2,000,000 600,000 Vested (150,000) (450,000) Forfeited - - Non Vested at September 30 2,000,000 150,000 2016 2015 Non Vested at October 1 $ 0.35 $ - Awarded 0.39 0.35 Vested 0.35 0.35 Forfeited - - Non Vested at September 30 $ 0.39 $ 0.35 For the year ended September 30, 2016, compensation expense recorded for the restricted stock awards was approximately $ 212,000

NOTE PAYABLE

NOTE PAYABLE	12 Months Ended
	Sep. 30, 2016
Notes Payable [Abstract]
NOTE PAYABLE	11. NOTE PAYABLE On September 30, 2013, the Company entered into the Life Sciences Accelerator Funding Agreement (the “ MLSC Loan Agreement MLSC 1,000,000 MLSC Loan 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 (a “ Qualified Sale Qualified Financing 145,985 0.27 Of the $ 1,000,000 944,707 55,293 11,000 On September 28, 2016, the Company and MLSC entered into that certain Amendment Agreement to Arch Therapeutics, Inc. Accelerator Funding Agreement (the “ Amendment (i) interest on the MLSC Loan will decrease from 10% per annum to 7% per annum beginning October 3, 2016; and (ii) the MLSC Loan will now become due and payable on the earlier of October 3, 2017 (the “ Maturity Date Qualified Financing 232,000 7 As of September 30, 2016 and 2015 the accreted balance of the MLSC Loan was $ 977,882 966,824

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	12. 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, 2016 and 2015, 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 $ 50,000 45,000 50,000 Annual license maintenance obligations extend through the life of the patents. Year Ending September 30, 2017 $ 50,000 2018 50,000 2019 50,000 2020 50,000 $ 200,000 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, 2016. 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 We do not own any real property. In October 2013, we entered into a one and one-half year operating sublease agreement pursuant to which we leased the office space of our relocated headquarters in Wellesley, Massachusetts for a base annual rent equal to $ 5,031 2,000

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	13. SUBSEQUENT EVENTS During the period commencing October 1, 2016 and ending on December 2, 2016 additional Series A warrants have been exercised for an aggregate issuance of 1,100,000 0.20 220,000 125,000 0.438 54,750

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2016
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 biotechnology 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 and retaining new employees.
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.
Cash and Cash Equivalents	Cash The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company had no cash equivalents as of September 30, 2016 and September 30, 2015.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash. The Company maintains its cash in bank deposits accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash.
Deferred Oferring Costs	Deferred Offering Costs Deferred Offering Costs consist of fees and expenses incurred in connection with the public offering and sale of the Company’s common stock, including legal, accounting, printing and other related expenses, as well as costs incurred in connection with the filing of a shelf registration statement.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful life of the related asset. Upon sale or retirement, the cost and accumulated depreciation are eliminated from their respective accounts, and the resulting gain or loss is included in income or loss for the period. Repair and maintenance expenditures are charged to expense as incurred.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable in accordance with ASC 360, Property, Plant and Equipment
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.
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 September 30, 2016 and 2015.
Research and Development	Research and Development The Company expenses internal and external research and development costs, including costs of funded research and development arrangements, in the period incurred.
Accounting for Stock-Based Compensation	Accounting for Stock-Based Compensation The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation-Stock Compensation 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 FASB ASC Topic 820, Fair Value Measurements and Disclosures At September 30, 2016 and 2015, the carrying amounts of cash, accounts payable, accrued expenses and other liabilities, and convertible notes approximate fair value because of their short-term nature. The fair value of note payable, which is influenced by interest rates and the Company’s liquidity, approximates carrying value.
Subsequent Events	Subsequent Events The Company evaluated all events or transactions that occurred commencing from October 1, 2016 and ending on December 1, 2016 the date which these consolidated financial statements were issued. The Company disclosed material subsequent events in Note 13.
Going Concern Basis of Accounting	Going Concern Basis of Accounting As reflected in the consolidated financial statements, the Company has an accumulated deficit, has suffered significant net losses and negative cash flows from operations, has not generated operating revenues, 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. In particular, as of September 30, 2016, the Company will be required to raise additional capital, obtain alternative means of financial support, or both, in order to continue to fund operations, and therefore there is substantial doubt about our ability to continue as a going concern. 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. Historically, the Company has principally funded operations through debt borrowings, the issuance of convertible debt, and the issuance of units consisting of common stock and warrants. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The consolidated financial statements do not include any adjustments that might result from this uncertainty.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	At September 30, 2016 and 2015, property and equipment consisted of: Estimated Useful Life 2016 2015 Furniture and fixtures 5 years $ 2,925 $ 2,925 Lab equipment 5 years 1,000 1,000 3,925 3,925 Less - accumulated depreciation 3,925 3,925 $ - $ -

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Sep. 30, 2016
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: 2016 2015 Net operating loss carryforwards $ 5,424,530 $ 3,748,426 Capitalized expenditures 1,104,928 802,769 Research and experimentation credit carryforwards 458,417 164,252 Stock based compensation 1,463,474 1,014,654 Property and Equipment 1,578 1,569 Accrued expenses 171,083 124,716 Gross deferred tax assets 8,624,010 5,856,386 Deferred tax asset valuation allowance (8,624,010) (5,856,386) Net deferred tax assets $ - $ -

PRIVATE PLACEMENT FINANCING 223

PRIVATE PLACEMENT FINANCING 2014 (Tables) - Private Placement Financing [Member]	12 Months Ended
	Sep. 30, 2016
Private Placement [Line Items]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The change in the estimated fair value was primarily due to the reduction of the exercise prices of the 2014 Warrants, the exercise of 4,000,000 Fair Value Measurements Using Significant Unobservable Warrant Derivative 2015 Beginning balance at September 30, 2014 $ 6,270,000 Issuances - Modification of warrants, net of Inducement Shares 896,763 Exercises of warrants (299,321) Adjustments to estimated fair value (3,603,689) Reclass of Derivative Liability to Equity (3,263,753) Ending balance at September 30, 2015 $ -
Schedule of Assumptions Used to Value Derivative Liability	The derivative liabilities were valued as of December 1, 2014, and March 15, 2015 using Monte Carlo Simulation. The derivative liabilities as of June 22, 2015, June 30, 2015, and September 30, 2015 as well as the exercises during 4th quarter of fiscal 2015 were valued using Black Scholes. December 1, March 15, June 22, Closing price per share of Common Stock $ 0.25 $ 0.21 $ 0.23 Exercise price per share $ 0.20 - $0.30 $ 0.20 - $0.30 $ 0.20 Expected volatility 80 – 90 % 80 – 110 % 55- 85 % Risk-free interest rate .01 – 1.39 % 0.03 – 1.41 % 0.27 - 1.68 % Dividend yield — — — Remaining expected term of underlying securities (years) 0.33 – 4.6 0.22 – 4.3 1.03 – 4.03 As of Exercises during th As of Closing price per share of Common Stock $ 0.26 $ 0.23-0.27 $ 0.27 Exercise price per share $ 0.20 $ 0.20 $ 0.20 Expected volatility 75-85 % 75- 85 % 75-85 % Risk-free interest rate 1.63 % 0.23-1.36 % 0.21-1.09 % Dividend yield — — — Remaining expected term of underlying securities (years) 1.01 0.80-3.96 0.76-3.76

8% CONVERTIBLE NOTES (Tables)

8% CONVERTIBLE NOTES (Tables)	12 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of Derivative Liabilities at Fair Value	As a result of the conversion of notes we recorded other income of $ 142,964 192,128 67,395 87,291 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Convertible 2016 2015 Beginning balance at September 30, $ 335,092 $ - Issuance - 354,988 Conversion of notes (142,964) (87,291) Adjustments to estimated fair value (192,128) 67,395 Ending balance at September 30, $ - $ 355,092
Schedule of Assumptions Used	The derivative liability was valued as of September 30, 2015, October 29, 2015 (weighted average conversion date) and December 31, 2015 using Monte Carlo Simulations with the following assumptions: September 30, October 29, December 31, 2015 2015 2015 Stated interest rate 8.0 % 8.0 % 8.0 % Exercise price per share $ 0.20 $ 0.20 $ 0.20 Expected volatility 80.0 % 85.0 % 110.0 % Risk-free interest rate 0.07 % 0.14 % 0.16 % Credit adjusted discount rate 22.0 % 22.0 % 25.0 % Remaining expected term of underlying securities (years) 0.46 0.38 0.21

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables) - 2013 Stock Incentive Plan	12 Months Ended
	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Share-based Compensation, Stock Options, Activity	Stock compensation activity under the 2013 Plan for the year ended September 30, 2016 follows: Option Weighted Weighted Aggregate Outstanding at September 30, 2015 10,776,500 $ 0.30 - $ - Awarded 3,160,000 $ 0.43 - - Exercised (362,500) $ 0.32 - - Forfeited (1,194,790) $ 0.39 - - Outstanding at September 30, 2016 12,379,210 $ 0.33 6.40 $ 4,341,816 Vested 9,033,226 $ 0.31 6.26 $ 3,304,049 Vested and expected to vest at September 30, 2016 12,379,210 $ 0.33 6.40 $ 4,341,816
Nonvested Restricted Stock Shares Activity	Restricted stock activity under the 2013 Plan for the years ended September 30, 2016 and 2015 follows: 2016 2015 Restricted Stock Non Vested at October 1 - 25,000 Awarded 225,000 - Vested - (25,000) Forfeited - - Non Vested at September 30 225,000 -
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, 2016 and 2015 follows: 2016 2015 Non Vested at October 1 $ - $ 0.345 Awarded 0.72 - Vested - 0.345 Forfeited - - Non Vested at September 30 $ 0.72 $ -

Restricted Stock Awarded Outs26

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan (Tables) - Restricted Stock Units (RSUs) [Member]	12 Months Ended
	Sep. 30, 2016
Nonvested Restricted Stock Shares Activity	2016 2015 Restricted Stock Non Vested at October 1 150,000 - Awarded 2,000,000 600,000 Vested (150,000) (450,000) Forfeited - - Non Vested at September 30 2,000,000 150,000
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, 2016 and 2015 follows: 2016 2015 Non Vested at October 1 $ 0.35 $ - Awarded 0.39 0.35 Vested 0.35 0.35 Forfeited - - Non Vested at September 30 $ 0.39 $ 0.35

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Annual License Maintenance Fee Commitments	The following table reflects the Company’s annual license maintenance fee commitments: Year Ending September 30, 2017 $ 50,000 2018 50,000 2019 50,000 2020 50,000 $ 200,000

PROPERTY AND EQUIPMENT (Detail)

PROPERTY AND EQUIPMENT (Detail) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Property, plant and equipment, gross, total	$ 3,925	$ 3,925
Less - accumulated depreciation	3,925	3,925
Property, plant and equipment, net, total	$ 0	0
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	$ 1,000

INCOME TAXES (Detail)

INCOME TAXES (Detail) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Income Taxes [Line Items]
Net operating loss carryforwards	$ 5,424,530	$ 3,748,426
Capitalized expenditures	1,104,928	802,769
Research and experimentation credit carryforwards	458,417	164,252
Stock based compensation	1,463,474	1,014,654
Property and Equipment	1,578	1,569
Accrued expenses	171,083	124,716
Gross deferred tax assets	8,624,010	5,856,386
Deferred tax asset valuation allowance	(8,624,010)	(5,856,386)
Net deferred tax assets	$ 0	$ 0

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Income Taxes [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	$ 13,675,000	$ 9,509,000
Research and experimentation credit carryforwards	458,417	164,252
Deferred tax assets, operating loss carryforwards, state and local	12,814,000	8,487,000
Valuation allowance, deferred tax asset, change in amount	2,767,000	2,130,000
Expire In 2023
Income Taxes [Line Items]
Research and experimentation credit carryforwards	119,000	37,000
Expire in 2029
Income Taxes [Line Items]
Research and experimentation credit carryforwards	$ 380,982	$ 139,744

PRIVATE PLACEMENT FINANCING 231

PRIVATE PLACEMENT FINANCING 2014 (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Private Placement [Line Items]
Exercises of Warrants	$ (142,964)	$ (386,612)
Private Placement Financing [Member] | Fair Value, Inputs, Level 3 [Member]
Private Placement [Line Items]
Balance	$ 0	6,270,000
Issuances		0
Modification of warrants, net of Inducement Shares		896,763
Exercises of Warrants		(299,321)
Adjustments to estimated fair value		(3,603,689)
Reclass of Derivative Liability to Equity		(3,263,753)
Balance		$ 0

PRIVATE PLACEMENT FINANCING 232

PRIVATE PLACEMENT FINANCING 2014 (Details 1) - $ / shares	1 Months Ended				3 Months Ended
	Jun. 30, 2015	Jun. 22, 2015	Mar. 15, 2015	Dec. 01, 2014	Sep. 30, 2015	Sep. 30, 2016
Private Placement [Line Items]
Closing price per share of Common Stock					$ 0.001	$ 0.001
Private Placement Financing [Member] | Derivative Financial Instruments, Liabilities [Member]
Private Placement [Line Items]
Closing price per share of Common Stock	$ 0.26	$ 0.23	$ 0.21	$ 0.25	0.27
Exercise price per share	$ 0.20	$ 0.20			$ 0.20
Risk-free interest rate	1.63%
Dividend yield	0.00%	0.00%	0.00%	0.00%	0.00%
Remaining expected term of underlying securities (years)	1 year 4 days
Private Placement Financing [Member] | Derivative Financial Instruments, Liabilities [Member] | Minimum [Member]
Private Placement [Line Items]
Exercise price per share			$ 0.20	$ 0.20
Expected volatility	75.00%	55.00%	80.00%	80.00%	75.00%
Risk-free interest rate		0.27%	0.03%	0.01%	0.21%
Remaining expected term of underlying securities (years)		1 year 11 days	2 months 19 days	3 months 29 days	9 months 4 days
Private Placement Financing [Member] | Derivative Financial Instruments, Liabilities [Member] | Maximum [Member]
Private Placement [Line Items]
Exercise price per share			$ 0.30	$ 0.30
Expected volatility	85.00%	85.00%	110.00%	90.00%	85.00%
Risk-free interest rate		1.68%	1.41%	1.39%	1.09%
Remaining expected term of underlying securities (years)		4 years 11 days	4 years 3 months 18 days	4 years 7 months 6 days	3 years 9 months 4 days
Private Placement Financing [Member] | Exercises during 4th Quarter [Member] | Derivative Financial Instruments, Liabilities [Member]
Private Placement [Line Items]
Exercise price per share					$ 0.20
Dividend yield					0.00%
Private Placement Financing [Member] | Exercises during 4th Quarter [Member] | Derivative Financial Instruments, Liabilities [Member] | Minimum [Member]
Private Placement [Line Items]
Closing price per share of Common Stock					$ 0.23
Expected volatility					75.00%
Risk-free interest rate					0.23%
Remaining expected term of underlying securities (years)					9 months 18 days
Private Placement Financing [Member] | Exercises during 4th Quarter [Member] | Derivative Financial Instruments, Liabilities [Member] | Maximum [Member]
Private Placement [Line Items]
Closing price per share of Common Stock					$ 0.27
Expected volatility					85.00%
Risk-free interest rate					1.36%
Remaining expected term of underlying securities (years)					3 years 11 months 16 days

PRIVATE PLACEMENT FINANCING 233

PRIVATE PLACEMENT FINANCING 2014 (Details Textual) - USD ($)	Jul. 02, 2016	Mar. 13, 2015	Jun. 22, 2015	Dec. 02, 2014	Dec. 01, 2014	Jan. 30, 2014	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015
Private Placement [Line Items]
Common Stock, Shares Issued								136,657,075	107,592,205
Common Stock, Par or Stated Value Per Share								$ 0.001	$ 0.001
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period								362,500
Gains (Losses) on Extinguishment of Debt				$ 224,000
Gain (Loss) On Warrant Derivative Modification		$ 624,016							$ 2,980,829
Debt Instrument, Face Amount								$ 0	605,000
Proceeds from Warrant Exercises								2,708,749	3,600,000
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity			$ 3,263,753
Derivative, Gain (Loss) on Derivative, Net								0	(1,032,113)
Other Noncash Expense									896,763
Subscription Agreement [Member]
Private Placement [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Debt Instrument, Face Amount		$ 750,000
Other Noncash Expense								$ 142,964	67,395
2014 Private Placement [Member]
Private Placement [Line Items]
Stock issued during period, shares, new issues						11,400,000
Share price						$ 0.25
Common Stock Issuance Upon Exercise Of Warrants						34,200,000
Proceeds from issuance of common stock						$ 2,850,000
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value									$ 0
Derivative Liability			$ 3,263,753
Stock Issued During Period, Shares, Other									681,801
Adjustments to Additional Paid in Capital, Warrant Issued									$ 687
Series A Warrants
Private Placement [Line Items]
Common Stock Issuance Upon Exercise Of Warrants								2,333,559
Class of Warrant or Right, Exercise Price of Warrants or Rights								$ 0.30
Reduction In Exercise Price Of Warrants		$ 0.20
Additional Warrants Issued		5,700,000
Stock Issued During Period Shares Warrants Exercised									1,750,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights								4,300,000	6,000,000
Proceeds from Warrant Exercises								$ 860,000
Class Of Warrant Or Right, Number Of Warrants Exercised on Cashless Basis								3,925,000
Series A Warrants | Minimum [Member]
Private Placement [Line Items]
Class of Warrant or Right, Outstanding		11,400,000
Series A Warrants | Maximum [Member]
Private Placement [Line Items]
Class of Warrant or Right, Outstanding		17,100,000
Series B Warrants
Private Placement [Line Items]
Proceeds from issuance of common stock				$ 800,000					$ 2,800,000
Class of Warrant or Right, Exercise Price of Warrants or Rights								$ 0.35
Common Stock, Shares Issued				4,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period								4,000,000
Gain On Warrant Derivative Modification					$ 1,300,170
Series B Warrants | Minimum [Member]
Private Placement [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 0.20
Series B Warrants | Maximum [Member]
Private Placement [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights					0.35
Series B Warrants | After Issuance
Private Placement [Line Items]
Exercise Term Of Warrants								12 months
Series C Warrants
Private Placement [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights								$ 0.40
Percentage Of Exercisability Of Warrants								4.90%
Exercise Term Of Warrants								18 months
Derivative, Fair Value, Net, Total								$ 2,255,000
Exercises of Warrants							$ 680,000	451,000
Gains (Losses) on Extinguishment of Debt								$ 75,321
Class of Warrant or Right, Number of Securities Called by Warrants or Rights								3,400,000	8,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised	11,400,000
Series C Warrants | Minimum [Member]
Private Placement [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights					0.20
Series C Warrants | Maximum [Member]
Private Placement [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 0.40
2014 Warrant | 2014 Private Placement [Member]
Private Placement [Line Items]
Stock issued during period, shares, new issues			570,000
Series A And Series C Warrants [Member]
Private Placement [Line Items]
Derivative, Gain (Loss) on Derivative, Net			$ 927,373

PRIVATE PLACEMENT FINANCING 234

PRIVATE PLACEMENT FINANCING 2015 (Details Textual) - USD ($)	Jul. 02, 2015	Jun. 30, 2015	Jun. 30, 2015	Sep. 30, 2016
2015 Investors [Member]
Private Placement [Line Items]
Stock Issued During Period, Shares, New Issues	454,387	13,936,367
Proceeds from Issuance of Common Stock	$ 100,000		$ 3,066,000
Series D Warrants [Member]
Private Placement [Line Items]
Stock Issued During Period, Shares, New Issues				3,439,091
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 0.25
Proceeds from Issuance of Common Stock				$ 859,773
2015 Private Placement [Member]
Private Placement [Line Items]
Stock Issued During Period, Shares, New Issues		14,390,754	13,936,367
Share Price		$ 0.22	$ 0.22
Proceeds from Issuance of Common Stock		$ 3,200,000
2015 Private Placement [Member] | Series D Warrants [Member]
Private Placement [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 0.25	$ 0.25

PRIVATE PLACEMENT FINANCING 235

PRIVATE PLACEMENT FINANCING 2016 (Details Textual) - USD ($)	May 26, 2016	May 31, 2016	Sep. 30, 2016
Registration Rights Agreement [Member]
Private Placement [Line Items]
Stock Issued During Period, Shares, New Issues		16,482,082
Investor's Subscription Agreement [Member]
Private Placement [Line Items]
Percentage of shares Purchased by Investors			75.00%
Series E Warrant [Member]
Private Placement [Line Items]
Stock Issued During Period, Shares, New Issues		7,063,748	705,425
Terms Of Warrants			(i) at any time during the term of the Series E Warrants, we may reduce the then-current exercise price to any amount and for any period of time deemed appropriate by our Board of Directors (the Board); and (ii) certain of the Series E Warrants provide that they shall not be exercisable in the event and to the extent that the exercise thereof would result in the holder of the Series E Warrant, together with its affiliates and any other persons whose beneficial ownership of Common Stock would be aggregated with the holders, would be deemed to beneficially own more than 4.99% of the Common Stock; provided, however, the holder, upon notice to us, may increase or decrease the ownership limitation, provided that any increase is limited to a maximum of 9.99% of the Companys Common Stock, and any increase in the ownership limitation will not become effective until the 61st day after delivery of such notice.
Proceeds from Issuance of Common Stock			$ 308,976
Private Placement 2016 [Member]
Private Placement [Line Items]
Stock Issued During Period, Shares, New Issues	9,418,334	9,418,334
Share Price	$ 0.36
Proceeds from Issuance of Common Stock			$ 3,390,600
Private Placement 2016 [Member] | Maxim Group LLC [Member]
Private Placement [Line Items]
Underwriting Fees, Percentage			8.20%
Proceeds from Issuance of Common Stock			$ 2,084,000
Payments of Stock Issuance Costs			$ 170,888
Private Placement 2016 [Member] | Series E Warrant [Member]
Private Placement [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	0.75
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.4380

8% CONVERTIBLE NOTES (Details)

8% CONVERTIBLE NOTES (Details) - Fair Value, Inputs, Level 3 [Member] - Convertible Debt [Member] - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Derivative [Line Items]
Beginning balance	$ 335,092	$ 0
Issuances	0	354,988
Conversion of notes	(142,964)	(87,291)
Adjustments to estimated fair value	(192,128)	67,395
Ending balance	$ 0	$ 335,092

8% CONVERTIBLE NOTES (Details 1

8% CONVERTIBLE NOTES (Details 1) - Derivative Liability - $ / shares	12 Months Ended		13 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Oct. 29, 2015
Derivative [Line Items]
Stated interest rate	8.00%	8.00%	8.00%
Exercise price per share	$ 0.20	$ 0.20	$ 0.20
Expected volatility	110.00%	80.00%	85.00%
Risk-free interest rate	0.16%	0.07%	0.14%
Credit adjusted discount rate	25.00%	22.00%	22.00%
Remaining expected term of underlying securities (years)	2 months 16 days	5 months 16 days	4 months 17 days

8% CONVERTIBLE NOTES (Details T

8% CONVERTIBLE NOTES (Details Textual) - USD ($)	Mar. 13, 2015	Sep. 30, 2016	Sep. 30, 2015
8% Convertible Notes [Line Items]
Debt Instrument, Face Amount		$ 0	$ 605,000
Debt Instrument, Convertible, Conversion Price	$ 0.20
Derivative Liability, Fair Value, Amount Not Offset Against Collateral		354,988
Other Noncash Expense			896,763
Proceeds from Issuance of Debt		395,012
Interest Expense, Debt		11,000	11,000
Convertible Notes Payable, Current		$ 0	$ 473,747
Common Stock [Member]
8% Convertible Notes [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities		3,224,494	755,865
Debt [Member]
8% Convertible Notes [Line Items]
Interest Expense, Debt		$ 131,252	$ 2,237,835
Maximum [Member]
8% Convertible Notes [Line Items]
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger	9.99%
Minimum [Member]
8% Convertible Notes [Line Items]
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%
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.
Other Noncash Expense		142,964	67,395
Derivative, Gain on Derivative		192,128
Subscription Agreement [Member] | Investor [Member]
8% Convertible Notes [Line Items]
Debt Instrument, Face Amount	$ 250,000
Convertible Debt [Member]
8% Convertible Notes [Line Items]
Debt Instrument, Annual Principal Payment			145,000
Debt Instrument, Periodic Payment, Interest		39,900	$ 6,173
Stock Issued During Period, Shares, Conversion of Convertible Securities			725,000
Convertible Debt [Member] | Fair Value, Inputs, Level 3 [Member]
8% Convertible Notes [Line Items]
Derivative, Gain on Derivative		142,964	$ 87,291
Convertible Notes Payable [Member]
8% Convertible Notes [Line Items]
Debt Instrument, Annual Principal Payment		$ 605,000

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Option Shares Outstanding
Outstanding, Beginning Balance	10,776,500
Awarded	3,160,000
Exercised	(362,500)
Forfeited	(1,194,790)
Outstanding, Ending Balance	12,379,210	10,776,500
Vested	9,033,226
Vested and expected to vest	12,379,210
Weighted Average Exercise Price
Outstanding, Beginning Balance	$ 0.3
Awarded	0.43
Exercised	0.32
Forfeited	0.39
Outstanding, Ending Balance	0.33	$ 0.3
Vested	0.31
Vested and expected to vest	$ 0.33
Weighted Average Remaining Contractual Term (years)
Balance	6 years 4 months 24 days	0 years
Awarded	0 years
Exercised	0 years
Forfeited	0 years
Vested	6 years 3 months 4 days
Vested and expected to vest	6 years 4 months 24 days
Aggregate Intrinsic Value
Outstanding, Beginning Balance	$ 0
Awarded	0
Exercised	0
Forfeited	0
Outstanding, Ending Balance	4,341,816	$ 0
Vested	3,304,049
Vested and expected to vest	$ 4,341,816

STOCK-BASED COMPENSATION (Det40

STOCK-BASED COMPENSATION (Detail 1) - Restricted Stock - shares	1 Months Ended	12 Months Ended
	May 03, 2016	Sep. 30, 2016	Sep. 30, 2015
Weighted Average Grant Date Fair Value
Awarded	2,000,000
2013 Incentive Plan [Member]
Weighted Average Grant Date Fair Value
Non Vested, Beginning Balance		0	25,000
Awarded		225,000	0
Vested		0	(25,000)
Forfeited		0	0
Non Vested, Ending Balance		225,000	0

STOCK-BASED COMPENSATION (Det41

STOCK-BASED COMPENSATION (Detail 2) - 2013 Incentive Plan [Member] - $ / shares	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non Vested, Beginning Balance	$ 0	$ 0.345
Awarded	0.72	0
Vested	0	0.345
Forfeited	0	0
Non Vested, Ending Balance	$ 0.72	$ 0

STOCK-BASED COMPENSATION (Det42

STOCK-BASED COMPENSATION (Details Textual) - USD ($)	Aug. 09, 2016	Oct. 02, 2015	Sep. 30, 2016	Sep. 30, 2015	Oct. 02, 2016	Jun. 18, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
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			6 years 4 months 24 days	0 years
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price			$ 0.43
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate, minimum			76.57%
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate, maximum			119.44%
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate, minimum			0.59%
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate, maximum			2.40%
Share based compensation arrangement by share based payment award fair value assumptions expected forfeiture rate			0.00%
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected dividend rate			0.00%
Share-based compensation arrangement by share-based payment award, number of shares available for grant			2,447,527
Common Stock, Shares Authorized			300,000,000	300,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			3,160,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares			9,033,226
Non-Employee Resricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense			$ 0	$ 9,000
Research and Development Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense			270,000	466,000
General and Administrative Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense			$ 668,000	582,000
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term			10 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term			1 year
Employees And Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense			$ 938,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			11,214,212
Consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense				$ 1,048,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			5,077,500
2013 Stock Incentive Plan
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 arrangements by share-based payment award, options, grants in period, weighted average exercise price	$ 0.72
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, total			$ 676,000
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition			1 year 10 months 24 days
Common Stock, Shares Authorized					19,114,256	16,114,256
Share-based compensation arrangement by share-based payment award, number of additional shares authorized		3,000,000
Share Price	$ 0.72
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	225,000
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee	375,000
2013 Stock Incentive Plan | 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
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price			$ 0.72
2013 Stock Incentive Plan | 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
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price			$ 0.38
2013 Stock Incentive Plan | Chief Executive Officer [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period	90 days
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee	125,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	75,000
2013 Stock Incentive Plan | Chief Executive Officer [Member] | Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period	120 days
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee	125,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	75,000
2013 Stock Incentive Plan | Chief Executive Officer [Member] | Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period	150 days
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee	125,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	75,000
Plan 2013 [Member] | 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			2,735,000
Plan 2013 [Member] | Consultants
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			425,000

Restricted Stock Awarded Outs43

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan (Details) - Restricted Stock Units (RSUs) [Member] - shares	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Non Vested, Beginning Balance	150,000	0
Awarded	2,000,000	600,000
Vested	(150,000)	(450,000)
Forfeited	0	0
Non Vested, Ending Balance	2,000,000	150,000

Restricted Stock Awarded Outs44

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan (Details 1) - Restricted Stock [Member] - $ / shares	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Non Vested, Beginning Balance	$ 0.35	$ 0
Awarded	0.39	0.35
Vested	0.35	0.35
Forfeited	0	0
Non Vested, Ending Balance	$ 0.39	$ 0.35

Restricted Stock Awarded Outs45

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan (Details Textual) - USD ($)	Aug. 06, 2015	May 03, 2016	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares			9,033,226
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			3,160,000
General and Administrative Expense [Member]
Allocated Share-based Compensation Expense			$ 668,000	$ 582,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	300,000
Share Price	$ 0.35
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	150,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		2,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		100.00%
Restricted Stock [Member] | General and Administrative Expense [Member]
Allocated Share-based Compensation Expense			$ 212,000
September 4, 2015 [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	75,000
October 2, 2015 [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	50,000
November 4, 2015 [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	25,000
Chief Executive Officer [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	150,000

NOTE PAYABLE (Details Textual)

NOTE PAYABLE (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
	Sep. 28, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2013
Note Payable [Line Items]
Interest Expense, Debt		$ 11,000	$ 11,000
Debt instrument, unamortized discount		977,882	$ 966,824
Loans
Note Payable [Line Items]
Notes Payable		944,707
2014 Warrant
Note Payable [Line Items]
Notes Payable		55,293
Massachusetts Life Sciences Center
Note Payable [Line Items]
Subordinated Debt		$ 1,000,000		$ 1,000,000
Debt Instrument, Payment Terms	(i) interest on the MLSC Loan will decrease from 10% per annum to 7% per annum beginning October 3, 2016; and (ii) the MLSC Loan will now become due and payable on the earlier of October 3, 2017 (the Maturity Date), the occurrence of a Corporate Event (which is defined as the occurrence of either a Qualified Sale or Qualified Financing),or the occurrence of a Default (as defined in the promissory note issued in connection with the MLSC Loan Agreement). In addition, under the terms of the Amendment, (a) beginning October 3, 2016, the Company will begin amortizing the principal and accrued interest under the MLSC Loan by making the first of 13 monthly payments of approximately $106,022, with the last payment scheduled to occur on the Maturity Date; and (b) the term Qualified Financing is now defined to mean one or more financing transactions in which we receive, in a single transaction or series of transactions, cumulative net proceeds of not less than five million dollars ($5,000,000) at any time after October 3, 2016.	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 (a Qualified Sale) 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
Debt Instrument, Increase, Accrued Interest	$ 232,000
Debt Instrument, Interest Rate, Stated Percentage	7.00%

COMMITMENTS AND CONTINGENCIES47

COMMITMENTS AND CONTINGENCIES (Detail) - License Maintenance Obligation [Member]	Sep. 30, 2016USD ($)
Contractual Obligation Fiscal Year Maturity [Line Items]
2,017	$ 50,000
2,018	50,000
2,019	50,000
2,020	50,000
Contractual obligation, total	$ 200,000

COMMITMENTS AND CONTINGENCIES48

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	1 Months Ended		12 Months Ended
	Apr. 30, 2015	Oct. 31, 2013	Sep. 30, 2016	Sep. 30, 2015
Commitments And Contingencies [Line Items]
License Maintenance Costs			$ 50,000	$ 45,000
Wellesley [Member]
Commitments And Contingencies [Line Items]
Payments For Rent Monthly Payments		$ 5,031
Framingham [Member]
Commitments And Contingencies [Line Items]
Payments For Rent Monthly Payments	$ 2,000
Patents
Commitments And Contingencies [Line Items]
Finite-Lived Intangible Asset, Useful Life			20 years
MIT Licensing Agreement
Commitments And Contingencies [Line Items]
Contractual Obligation			$ 50,000	$ 50,000

SUBSEQUENT EVENTS (Details Text

SUBSEQUENT EVENTS (Details Textual) - Subsequent Event [Member]	1 Months Ended
	Dec. 02, 2016USD ($)$ / sharesshares
Series A Warrants [Member]
Business Acquisition, Equity Interests Issued Or Issuable [Line Items]
Common Stock Issuance Upon Exercise Of Warrants | shares	1,100,000
Series A Warrants [Member] | Common Stock [Member]
Business Acquisition, Equity Interests Issued Or Issuable [Line Items]
Proceeds from Issuance of Common Stock | $	$ 220,000
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 0.20
Series E warrants [Member]
Business Acquisition, Equity Interests Issued Or Issuable [Line Items]
Common Stock Issuance Upon Exercise Of Warrants | shares	125,000
Series E warrants [Member] | Common Stock [Member]
Business Acquisition, Equity Interests Issued Or Issuable [Line Items]
Proceeds from Issuance of Common Stock | $	$ 54,750
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 0.438