Arch Therapeutics (ARTH) 10-K 15 Nov 17 2017 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2017	Nov. 14, 2017	Mar. 31, 2017
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
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			$ 78,000,000
Trading Symbol	ARTH
Entity Common Stock, Shares Outstanding		153,935,130

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2017	Sep. 30, 2016
Current assets:
Cash	$ 5,994,052	$ 5,036,476
Prepaid expenses and other current assets	85,343	107,784
Total current assets	6,079,395	5,144,260
Long-term assets:
Property and equipment, net	7,188	0
Other assets	3,500	0
Total long-term assets	10,688	0
Total assets	6,090,083	5,144,260
Current liabilities:
Accounts payable	264,876	374,896
Accrued expenses and other liabilities	168,655	299,487
Accrued interest	0	304,770
Note payable, net of unamortized discount	0	899,627
Total current liabilities	433,531	1,878,780
Long-term liabilities:
Long-term derivative liability	3,430,033	0
Note payable, net of unamortized discount and current portion	0	78,255
Accrued interest, net of current portion	0	26,230
Total long-term liabilities	3,430,033	104,485
Total liabilities	3,863,564	1,983,265
Commitments and contingencies (Note 13)
Stockholders' equity:
Common stock, $0.001 par value, 300,000,000 shares authorized, 153,692,857 and 136,657,075 shares issued and outstanding as of September 30, 2017 and September 30, 2016, respectively	149,943	134,432
Additional paid-in capital	31,580,022	24,741,153
Accumulated deficit	(29,503,446)	(21,714,590)
Total stockholders’ equity	2,226,519	3,160,995
Total liabilities and stockholders' equity	$ 6,090,083	$ 5,144,260

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Sep. 30, 2016
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	300,000,000	300,000,000
Common Stock, Shares Issued	153,692,857	136,657,075
Common Stock, Shares Outstanding	153,692,857	136,657,075

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Revenues	$ 0	$ 0
Operating expenses:
General and administrative expenses	5,207,753	4,367,476
Research and development expenses	2,094,795	1,683,299
Total operating expenses	7,302,548	6,050,775
Operating loss	(7,302,548)	(6,050,775)
Other income (expense):
(Increase) decrease to fair value of derivative	(433,923)	192,128
Interest expense	(52,385)	(276,687)
Gain on conversion of debt	0	142,964
Total other (expense) income	(486,308)	58,405
Net loss	$ (7,788,856)	$ (5,992,370)
Earnings per share - basic and diluted
Net loss per common share - basic and diluted	$ (0.05)	$ (0.05)
Weighted common shares - basic and diluted	142,722,788	121,462,897

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, 2015	$ 1,540,117	$ 107,392	$ 17,154,945	$ (15,722,220)
Beginning balance (in shares) at Sep. 30, 2015		107,392,205
Net loss	(5,992,370)			(5,992,370)
Issuance of restricted stock for services	52,500	$ 150	52,350
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
Shares issued for the exercise of warrants (in shares)		11,844,516
Shares issued for the exercise of stock options	0	$ 69	(69)
Shares issued for the exercise of stock options (in shares)		68,967
Exercise of Series A Warrants Cashless	0	$ 2,334	(2,334)
Exercise of Series A Warrants Cashless (in shares)		2,333,559
Issuance of common stock in private placement funding	3,108,939	$ 9,418	3,099,521
Issuance of common 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
Shares issued for the conversion of the convertible notes (in shares)		3,224,494
Stock based compensation expense	1,098,160		1,098,160
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
Net loss	(7,788,856)	$ 0	0	(7,788,856)
Issuance of restricted stock for services	162,000	$ 225	161,775	0
Issuance of restricted stock for services (in shares)		225,000
Shares issued for the exercise of warrants	1,589,888	$ 4,979	1,584,909	0
Shares issued for the exercise of warrants (in shares)		4,978,742
Shares issued for the exercise of stock options	5,500	$ 15	5,485	0
Shares issued for the exercise of stock options (in shares)		15,000
Shares issued for the exercise of stock options - Cashless	$ 0	$ 106	(106)	0
Shares issued for the exercise of stock options - Cashless (in shares)		106,666
Shares issued for the exercise of stock options (in shares)	255,000
Exercise of Series A Warrants Cashless	$ 0	$ 19	(19)	0
Exercise of Series A Warrants Cashless (in shares)		18,710
Issuance of common stock in private placement funding	2,991,012	$ 10,167	2,980,845	0
Issuance of common stock in private placement funding (in shares)		10,166,664
Stock based compensation expense	2,105,980	$ 0	2,105,980	0
Ending balance at Sep. 30, 2017	$ 2,226,519	$ 149,943	$ 31,580,022	$ (29,503,446)
Ending balance (in shares) at Sep. 30, 2017		149,942,857

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net loss	$ (7,788,856)	$ (5,992,370)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation	1,498	0
Stock-based compensation	2,105,980	1,098,160
Noncash interest expense on notes payable	22,118	276,687
Issuance of restricted stock for services	162,000	52,500
Gain on conversion of debt	0	(142,964)
Decrease (Increase) to fair value of derivative	433,923	(192,128)
(Increase) decrease in:
Prepaid expenses and other current assets	22,441	(64,865)
Other assets	(3,500)	0
Increase (decrease) in:
Accounts payable	(110,020)	137,420
Accrued expenses and other liabilities	(130,832)	80,533
Accrued interest	(331,000)	0
Net cash used in operating activities	(5,616,248)	(4,747,027)
Cash flows from investing activities:
Purchases of property and equipment	(8,686)	0
Net cash used in investing activities	(8,686)	0
Cash flows from financing activities:
Proceeds from issuance of common stock and warrants, net of financing costs	5,987,122	3,114,654
Proceeds from exercise of warrants	1,589,888	2,708,749
Proceeds from exercise of stock options	5,500	0
Payments on note payable	(1,000,000)	0
Net cash provided by financing activities	6,582,510	5,823,403
Net increase in cash	957,576	1,076,376
Cash, beginning of year	5,036,476	3,960,100
Cash, end of year	5,994,052	5,036,476
Non-cash financing activities
Warrant derivative liability	2,996,110	0
Exercise of stock options - cashless	106	69
Exercise of warrants - cashless	19	2,334
Conversion of 8% convertible notes and accrued interest to common stock	0	644,900
Financing Costs on issuance of common stock and warrants	0	5,715
Cash paid for
Interest on note	$ 361,268	$ 0

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	12 Months Ended
	Sep. 30, 2017
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, 2017
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”). Basis of Presentation The consolidated financial statements include the accounts of Arch Therapeutics, Inc. and its wholly owned subsidiary, Arch Biosurgery, Inc., a biotechnology company. All intercompany accounts and transactions have been eliminated in consolidation. 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 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 Accounting Standards Update (ASU) 2016-15, “Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Payments” was issued by the Financial Accounting Standards Board (FASB) in August 2016. The purpose of this amendment is to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. 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, 2017. Early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated results of operations, financial position or disclosures. ASU 2016-09, “Compensation—Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting” was issued by the FASB in March 2016. The purpose of this amendment is to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. 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, 2016. Early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated results of operations, financial position or disclosures. ASU 2016-02, “Leases (Topic 842)” was issued by the FASB in February 2016. The purpose of this amendment requires the recognition of lease assets and lease liabilities by lessees for those leases previously classified as operating leases. 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, 2018. Early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated results of operations, financial position or disclosures. 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 amendments 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 adopted ASU 2014-15 during our first quarter of fiscal year 2017, which had no impact on our consolidated financial statements, and will apply the new guidance in future periods. 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 adopted ASU 2014-12 during the first quarter of fiscal year 2017, which had no impact on our consolidated financial statements, and will apply the new guidance in future periods. 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, 2017 and September 30, 2016. 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 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. These costs are netted against the proceeds received as a reduction to additional paid-in capital. 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 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 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, 2017 and September 30, 2016. 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 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 sufficient 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 At September 30, 2017 and September 30, 2016, 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. Derivative Liabilities The Company accounts for its warrants and other derivative financial instruments as either equity or liabilities based upon the characteristics and provisions of each instrument, in accordance with FASB ASC Topic 815, Derivatives and Hedging. Warrants classified as equity are recorded at fair value as of the date of issuance on the Company’s consolidated balance sheets and no further adjustments to their valuation are made. Warrants classified as derivative liabilities and other derivative financial instruments that require separate accounting as liabilities are recorded on the Company’s consolidated balance sheets at their fair value on the date of issuance and will be revalued on each subsequent balance sheet date until such instruments are exercised or expire, with any changes in the fair value between reporting periods recorded as other income or expense. Management estimates the fair value of these liabilities using option pricing models and assumptions that are based on the individual characteristics of the warrants or instruments on the valuation date, as well as assumptions for future financings, expected volatility, expected life, yield, and risk-free interest rate. Subsequent Events The Company evaluated all events or transactions that occurred commencing from October 1, 2017 and ending on November 14, 2017 the date which these consolidated financial statements were issued. The Company disclosed material subsequent events in Note 14. 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, 2017, 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 into 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. Provisions in the 2017 SPA restricts the Company’s ability to effect or enter into an agreement to effect any issuance by the Company or any of its subsidiaries of Common Stock or securities convertible, exercisable or exchangeable for Common Stock (or a combination of units thereof) involving a Variable Rate Transaction (as defined in the 2017 SPA) including, but not limited to, an equity line of credit or “At-the-Market” financing facility until the three lead investors in the 2017 Financing collectively own less than 20% of the Series F Warrants purchased by them pursuant to the 2017 SPA. 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, 2017
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	3. PROPERTY AND EQUIPMENT Estimated September 30, September 30, Useful Life 2017 2016 Computer equipment 3 years $ 8,686 $ - Furniture and fixtures 5 years 2,925 2,925 Lab equipment 5 years 1,000 1,000 12,611 3,925 Less – accumulated depreciation 5,323 3,925 Property and equipment, net $ 7,188 $ - For the years ended September 30, 2017 and 2016 depreciation expense recorded was $ 1,498 0

INCOME TAXES

INCOME TAXES	12 Months Ended
	Sep. 30, 2017
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: 2017 2016 Net operating loss carryforwards $ 7,129,736 $ 5,424,530 Capitalized expenditures 1,511,187 1,104,928 Research and experimentation credit carryforwards 632,659 458,417 Stock based compensation 2,370,477 1,463,474 Property and Equipment 1,488 1,578 Accrued expenses 20,100 171,083 Gross deferred tax assets 11,665,647 8,624,010 Deferred tax asset valuation allowance (11,665,647) (8,624,010) Net deferred tax assets $ - $ - As of September 30, 2017 and 2016, the Company had federal net operating loss carryforwards of approximately $ 17,960,000 13,675,000 526,957 380,982 As of September 30, 2017 and 2016, the Company had state net operating loss carryforwards of approximately $ 16,771,000 12,814,000 162,000 119,000 As the Company has not yet achieved profitable operations, management believes the tax benefits as of September 30, 2017 and 2016 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 2017 and 2016 by approximately $ 3,041,000 2,767,000 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, 2017, the Company is open to examination in the U.S. federal and certain state jurisdictions for tax years ended September 30, 2017, 2016, 2015, and 2014.

PRIVATE PLACEMENT FINANCING 201

PRIVATE PLACEMENT FINANCING 2014	12 Months Ended
	Sep. 30, 2017
2014 Private Placement
Private Placement [Line Items]
PRIVATE PLACEMENT FINANCING	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 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, 2017, Series A Warrants had been exercised on a cash basis for an aggregate issuance of 1,100,000 shares of the Company’s common stock, resulting in gross proceeds to the Company of $220,000. 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

PRIVATE PLACEMENT FINANCING 212

PRIVATE PLACEMENT FINANCING 2015	12 Months Ended
	Sep. 30, 2017
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 30,2017, Series D Warrants had been exercised on a cash basis for an aggregate issuance of 1,750,001 437,500 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, 2017
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”) as our exclusive institutional investor placement agent in connection with the 2016 Private Placement Financing, and in consideration for the services provided by it, Maxim was entitled to receive cash fees equal to 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, 2017, Series E Warrants had been exercised on a cash basis for an aggregate issuance of 2,128,741 932,388 705,425 308,976 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

REGISTERED DIRECT OFFERING 2017

REGISTERED DIRECT OFFERING 2017	12 Months Ended
	Sep. 30, 2017
Stockholders' Equity Note [Abstract]
REGISTERED DIRECT OFFERING	8. 2017 REGISTERED DIRECT OFFERING On September 30, 2016, the Company filed a registration statement with the SEC utilizing a “shelf” registration process, which was subsequently declared effective by the SEC on October 20, 2016 (such registration statement, the “ Shelf Registration Statement 50,000,000 On February 20, 2017, the Company entered into Securities Purchase Agreement (the “ 2017 SPA ”) with 6 accredited investors (collectively, the “ 2017 Investors ”) providing for the issuance and sale by the Company to the 2017 Investors of an aggregate of 10,166,664 0.60 2017 Financing ”). The securities comprising the units sold in the 2017 Financing were issued under the Shelf Registration Statement, and consisted of a share of Common Stock, and 0.55 0.75 2017 Warrants ,” and the shares issuable upon exercise of the 2017 Warrants, collectively, the “ 2017 Warrant Shares ”). Provisions in the 2017 SPA restrict the Company’s ability to effect or enter into an agreement to effect any issuance by the Company or any of its subsidiaries of Common Stock or securities convertible, exercisable or exchangeable for Common Stock (or a combination of units thereof) involving a Variable Rate Transaction (as defined in the 2017 SPA) including, but not limited to, an equity line of credit or “At-the-Market” financing facility until the three lead investors in the 2017 Financing collectively own less than 20 The gross proceeds to Arch from the 2017 Financing, which closed on February 24, 2017, were approximately $ 6.1 112,000 The number of shares of the Company’s Common Stock into which each of the Series F Warrants is exercisable and the exercise price therefore are subject to adjustment, as set forth in the Series F Warrants, including adjustments for stock subdivisions or combinations (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise). In addition, at anytime during the term of the Series F Warrants, the Company may reduce the then-current exercise price to any amount and for any period of time deemed appropriate by the Board of the Company. In addition, if the Company undergoes a change of control or is involved in a similar transaction, the holder may cause the Company or any successor entity to purchase its Series F Warrant for an amount of cash equal to $ 0.18 As of September 30, 2017, no Series F Warrants have been exercised. As noted in Note 12, on September 28, 2016, the Company and the Massachusetts Life Sciences Center (“MLSC”) entered into the Amendment. Pursuant to this Amendment, the term “ Qualified Financing 5,000,000 830,000 Common Stock At February 24, 2017, the Closing Date of the 2017 Financing, the Company issued 10,166,664 Derivative Liabilities The Company accounted for the Series F Warrants relating to the aforementioned 2017 Financing in accordance with ASC 815-10, Derivatives and Hedging On the Closing Date, the derivative liabilities were recorded at fair value of $ 2,996,110 5,987,122 2,991,012 433,923 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Warrant Derivative Liability Beginning balance at September 30, 2016 $ - Issuances 2,996,110 Adjustments to estimated fair value 433,923 Ending balance at September 30, 2017 $ 3,430,033 February 24, September 30, 2017 2017 Closing price per share of common stock $ 0.68 $ 0.60 Exercise price per share $ 0.75 $ 0.75 Expected volatility 111.84 % 109.77 % Risk-free interest rate 1.80 % 1.89 % Dividend yield — — Remaining expected term of underlying securities (years) 5.00 4.39

8% CONVERTIBLE NOTES

8% CONVERTIBLE NOTES	12 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
8% CONVERTIBLE NOTES	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 were originally due and payable on March 13, 2016 (the “Stated Maturity Date”) and they were not prepayable or redeemable by the Company prior to the stated maturity date. The Notes bore interest on the unpaid principal balance at a rate equal to eight percent (8.0%) (computed on the basis of the actual number of days elapsed in a 360-day year) per annum until 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 became due and payable upon their conversion or the Stated Maturity Date and could become due and payable upon the occurrence of an event of default under the Notes. The Notes contained 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 then 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 had 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 was $ 0.20 4.99 9.99 The issuance and sale of the Notes and Conversion Shares (collectively, the “Securities”) was not, 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 0 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 0 142,964 192,128 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Convertible Debt Derivative Liability Beginning balance at September 30, 2015 $ 335,092 Gain on conversion of debt (142,964) Decrease to fair value of derivative (192,128) Ending balance at September 30, 2016 $ - September 30, 2015 Stated interest rate 8.0 % Exercise price per share $ 0.20 Expected volatility 80.0 % Risk-free interest rate 0.07 % Credit adjusted discount rate 22.0 % Remaining expected term of underlying securities (years) 0.46

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	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, 2017, a total of 13,524,212 5,282,500 Share-based awards During the year ended September 30, 2017, the Company granted options to employees and directors to purchase 2,495,000 205,000 1 10 3 0.60 0.65 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, 2017 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, 2017; expected volatility, 72.26 119.44 1.14 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. Prior to the year ended September 30, 2015, the Company did not experience any forfeitures of stock options. During the year ended September 30, 2017 and the year ended September 30, 2016, the Company experienced an insignificant number of forfeitures of stock options. 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 Weighted Weighted Average Option Average Remaining Aggregate Shares Exercise Contractual Intrinsic Outstanding Price Term (years) Value Outstanding at September 30, 2016 12,379,210 $ 0.33 6.4 $ 4,341,816 Awarded 2,700,000 $ 0.65 - - Exercised (255,000) $ 0.35 - - Forfeited/Cancelled (190,000) $ 0.39 - - Outstanding at September 30, 2017 14,634,210 $ 0.39 4.72 $ 6,178,263 Vested 11,776,130 $ 0.36 5.09 $ 5,321,198 Vested and expected to vest at September 30, 2017 14,634,210 $ 0.39 4.72 $ 6,178,263 As of September 30, 2017, 1,465,861 1,343,000 938,000 374,000 270,000 969,000 668,000 During the year ended September 30, 2017, 240,000 106,666 15,000 15,000 As of September 30, 2017, there is approximately $ 809,000 1.59 Restricted Stock On February 3, 2017, the Company awarded 1,750,000 100 On August 9, 2016, we entered into a consulting agreement with Acorn Management Partners, LLC (“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 Restricted Stock Activity Non Vested at September 30, 2016 225,000 Awarded 1,750,000 Vested (225,000) Forfeited - Non Vested at September 30, 2017 1,750,000 Weighted Average Restricted Stock Award Non Vested at September 30, 2016 $ 0.72 Awarded 0.65 Vested 0.72 Forfeited - Non Vested at September 30, 2017 $ 0.65 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 years ended September 30, 2017 and 2016 compensation expense recorded for the restricted stock awards was approximately $ 372,000 0

Restricted Stock Awarded Outsid

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan	12 Months Ended
	Sep. 30, 2017
RESTRICTED STOCK [Line Items]
Restricted Assets Disclosure	11. 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 300,000 0.35 150,000 150,000 75,000 50,000 25,000 2017 2016 Non Vested at beginning of year 2,000,000 150,000 Awarded - 2,000,000 Vested - (150,000) Forfeited - - Non Vested at end of year 2,000,000 2,000,000 2017 2016 Non Vested at beginning of year $ 0.39 $ 0.35 Awarded - 0.39 Vested - 0.35 Forfeited - - Non Vested at end of year $ 0.39 $ 0.39 For the years ended September 30, 2017 and 2016, compensation expense recorded for the restricted stock awards was approximately $ 553,000 213,000

NOTE PAYABLE

NOTE PAYABLE	12 Months Ended
	Sep. 30, 2017
Notes Payable [Abstract]
NOTE PAYABLE	12. 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 originally bore interest at a rate of 10% per annum, and was originally scheduled to 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 22,100 8,300 0 977,882 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 decreased from 10% per annum to 7% per annum beginning October 3, 2016; and (ii) the MLSC Loan became due and payable on the earlier of October 3, 2017 (the “ Maturity Date Qualified Financing 232,000 7 6.1 830,000 250,000

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Sep. 30, 2017
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, 2017 and 2016, 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 50,000 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, 2017. 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 September 30, 2020 38,400 39,600 42,000 Year Ending September 30, 2018 $ 38,400 2019 39,600 2020 42,000 $ 120,000

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS During the period commencing October 1, 2017 through November 14, 2017, additional Series D warrants have been exercised for an aggregate issuance of 227,273 0.25 56,818 15,000 0.438 6,570

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Accounting	Basis of Presentation The consolidated financial statements include the accounts of Arch Therapeutics, Inc. and its wholly owned subsidiary, Arch Biosurgery, Inc., a biotechnology company. All intercompany accounts and transactions have been eliminated in consolidation. 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.
Recently Issued Accounting Guidance	Recently Issued Accounting Guidance Accounting Standards Update (ASU) 2016-15, “Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Payments” was issued by the Financial Accounting Standards Board (FASB) in August 2016. The purpose of this amendment is to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. 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, 2017. Early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated results of operations, financial position or disclosures. ASU 2016-09, “Compensation—Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting” was issued by the FASB in March 2016. The purpose of this amendment is to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. 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, 2016. Early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated results of operations, financial position or disclosures. ASU 2016-02, “Leases (Topic 842)” was issued by the FASB in February 2016. The purpose of this amendment requires the recognition of lease assets and lease liabilities by lessees for those leases previously classified as operating leases. 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, 2018. Early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated results of operations, financial position or disclosures. 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 amendments 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 adopted ASU 2014-15 during our first quarter of fiscal year 2017, which had no impact on our consolidated financial statements, and will apply the new guidance in future periods. 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 adopted ASU 2014-12 during the first quarter of fiscal year 2017, which had no impact on our consolidated financial statements, and will apply the new guidance in future periods.
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, 2017 and September 30, 2016.
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. These costs are netted against the proceeds received as a reduction to additional paid-in capital.
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, 2017 and September 30, 2016.
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 sufficient 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, 2017 and September 30, 2016, 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.
Derivative Liabilities	Derivative Liabilities The Company accounts for its warrants and other derivative financial instruments as either equity or liabilities based upon the characteristics and provisions of each instrument, in accordance with FASB ASC Topic 815, Derivatives and Hedging. Warrants classified as equity are recorded at fair value as of the date of issuance on the Company’s consolidated balance sheets and no further adjustments to their valuation are made. Warrants classified as derivative liabilities and other derivative financial instruments that require separate accounting as liabilities are recorded on the Company’s consolidated balance sheets at their fair value on the date of issuance and will be revalued on each subsequent balance sheet date until such instruments are exercised or expire, with any changes in the fair value between reporting periods recorded as other income or expense. Management estimates the fair value of these liabilities using option pricing models and assumptions that are based on the individual characteristics of the warrants or instruments on the valuation date, as well as assumptions for future financings, expected volatility, expected life, yield, and risk-free interest rate.
Subsequent Events	Subsequent Events The Company evaluated all events or transactions that occurred commencing from October 1, 2017 and ending on November 14, 2017 the date which these consolidated financial statements were issued. The Company disclosed material subsequent events in Note 14.
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, 2017, 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 into 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. Provisions in the 2017 SPA restricts the Company’s ability to effect or enter into an agreement to effect any issuance by the Company or any of its subsidiaries of Common Stock or securities convertible, exercisable or exchangeable for Common Stock (or a combination of units thereof) involving a Variable Rate Transaction (as defined in the 2017 SPA) including, but not limited to, an equity line of credit or “At-the-Market” financing facility until the three lead investors in the 2017 Financing collectively own less than 20% of the Series F Warrants purchased by them pursuant to the 2017 SPA. 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, 2017
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	At September 30, 2017 and September 30, 2016, property and equipment consisted of: Estimated September 30, September 30, Useful Life 2017 2016 Computer equipment 3 years $ 8,686 $ - Furniture and fixtures 5 years 2,925 2,925 Lab equipment 5 years 1,000 1,000 12,611 3,925 Less – accumulated depreciation 5,323 3,925 Property and equipment, net $ 7,188 $ -

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Sep. 30, 2017
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: 2017 2016 Net operating loss carryforwards $ 7,129,736 $ 5,424,530 Capitalized expenditures 1,511,187 1,104,928 Research and experimentation credit carryforwards 632,659 458,417 Stock based compensation 2,370,477 1,463,474 Property and Equipment 1,488 1,578 Accrued expenses 20,100 171,083 Gross deferred tax assets 11,665,647 8,624,010 Deferred tax asset valuation allowance (11,665,647) (8,624,010) Net deferred tax assets $ - $ -

REGISTERED DIRECT OFFERING 2024

REGISTERED DIRECT OFFERING 2017 (Tables) - Registered Direct Offering 2017 [Member]	12 Months Ended
	Sep. 30, 2017
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	Given that the fair value of the derivative liabilities were less than the net proceeds of the 2017 Financing of $ 5,987,122 2,991,012 433,923 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Warrant Derivative Liability Beginning balance at September 30, 2016 $ - Issuances 2,996,110 Adjustments to estimated fair value 433,923 Ending balance at September 30, 2017 $ 3,430,033
Schedule Of Assumptions Used To Value Derivative Liability	The derivative liabilities were valued as of February 24, 2017 and September 30, 2017 using the Black Scholes Model with the following assumptions: February 24, September 30, 2017 2017 Closing price per share of common stock $ 0.68 $ 0.60 Exercise price per share $ 0.75 $ 0.75 Expected volatility 111.84 % 109.77 % Risk-free interest rate 1.80 % 1.89 % Dividend yield — — Remaining expected term of underlying securities (years) 5.00 4.39

8% CONVERTIBLE NOTES (Tables)

8% CONVERTIBLE NOTES (Tables)	12 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of Derivative Liabilities at Fair Value	As a result of the conversion of notes, we recorded a gain on conversion of debt of $ 142,964 192,128 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Convertible Debt Derivative Liability Beginning balance at September 30, 2015 $ 335,092 Gain on conversion of debt (142,964) Decrease to fair value of derivative (192,128) Ending balance at September 30, 2016 $ -
Schedule of Assumptions Used	September 30, 2015 Stated interest rate 8.0 % Exercise price per share $ 0.20 Expected volatility 80.0 % Risk-free interest rate 0.07 % Credit adjusted discount rate 22.0 % Remaining expected term of underlying securities (years) 0.46

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables) - 2013 Stock Incentive Plan	12 Months Ended
	Sep. 30, 2017
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, 2017 follows: Weighted Weighted Average Option Average Remaining Aggregate Shares Exercise Contractual Intrinsic Outstanding Price Term (years) Value Outstanding at September 30, 2016 12,379,210 $ 0.33 6.4 $ 4,341,816 Awarded 2,700,000 $ 0.65 - - Exercised (255,000) $ 0.35 - - Forfeited/Cancelled (190,000) $ 0.39 - - Outstanding at September 30, 2017 14,634,210 $ 0.39 4.72 $ 6,178,263 Vested 11,776,130 $ 0.36 5.09 $ 5,321,198 Vested and expected to vest at September 30, 2017 14,634,210 $ 0.39 4.72 $ 6,178,263
Nonvested Restricted Stock Shares Activity	Restricted stock activity under the 2013 Plan for the year ended September 30, 2017 follows: Restricted Stock Activity Non Vested at September 30, 2016 225,000 Awarded 1,750,000 Vested (225,000) Forfeited - Non Vested at September 30, 2017 1,750,000
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 year ended September 30, 2017 follows: Weighted Average Restricted Stock Award Non Vested at September 30, 2016 $ 0.72 Awarded 0.65 Vested 0.72 Forfeited - Non Vested at September 30, 2017 $ 0.65

Restricted Stock Awarded Outs27

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan (Tables) - Restricted Stock Units (RSUs) [Member]	12 Months Ended
	Sep. 30, 2017
Nonvested Restricted Stock Shares Activity	Restricted Stock activity for the years ended September 30, 2017 and 2016 is as follows: 2017 2016 Non Vested at beginning of year 2,000,000 150,000 Awarded - 2,000,000 Vested - (150,000) Forfeited - - Non Vested at end of year 2,000,000 2,000,000
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, 2017 and 2016 follows: 2017 2016 Non Vested at beginning of year $ 0.39 $ 0.35 Awarded - 0.39 Vested - 0.35 Forfeited - - Non Vested at end of year $ 0.39 $ 0.39

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Sep. 30, 2017
Framingham [Member]
Annual Lease Commitments	The following table reflects the Company’s annual lease commitments: Year Ending September 30, 2018 $ 38,400 2019 39,600 2020 42,000 $ 120,000

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Property, plant and equipment, gross, total	$ 12,611	$ 3,925
Less - accumulated depreciation	5,323	3,925
Property, plant and equipment, net, total	$ 7,188	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
Computer Equipment [Member]
Property, plant and equipment, useful life	3 years
Property, plant and equipment, gross, total	$ 8,686	$ 0

PROPERTY AND EQUIPMENT (Detai30

PROPERTY AND EQUIPMENT (Details Textual) - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Depreciation expense	$ 1,498	$ 0

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	Sep. 30, 2017	Sep. 30, 2016
Income Taxes [Line Items]
Net operating loss carryforwards	$ 7,129,736	$ 5,424,530
Capitalized expenditures	1,511,187	1,104,928
Research and experimentation credit carryforwards	632,659	458,417
Stock based compensation	2,370,477	1,463,474
Property and Equipment	1,488	1,578
Accrued expenses	20,100	171,083
Gross deferred tax assets	11,665,647	8,624,010
Deferred tax asset valuation allowance	(11,665,647)	(8,624,010)
Net deferred tax assets	$ 0	$ 0

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Income Taxes [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	$ 17,960,000	$ 13,675,000
Research and experimentation credit carryforwards	632,659	458,417
Deferred tax assets, operating loss carryforwards, state and local	16,771,000	12,814,000
Valuation allowance, deferred tax asset, change in amount	3,041,000	2,767,000
Expire In 2023
Income Taxes [Line Items]
Research and experimentation credit carryforwards	162,000	119,000
Expire in 2029
Income Taxes [Line Items]
Research and experimentation credit carryforwards	$ 526,957	$ 380,982

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	Sep. 30, 2017	Sep. 30, 2016
Private Placement [Line Items]
Common Stock, Shares Issued							153,692,857	136,657,075
Gains (Losses) on Extinguishment of Debt				$ 224,000
Gain (Loss) On Warrant Derivative Modification		$ 624,016
Debt Instrument, Face Amount							$ 0	$ 0
Proceeds from Warrant Exercises							$ 1,589,888	$ 2,708,749
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity			$ 3,263,753
Subscription Agreement [Member]
Private Placement [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Debt Instrument, Face Amount		$ 750,000
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
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
Exercises of Warrants							$ 220,000
Reduction In Exercise Price Of Warrants		$ 0.20
Additional Warrants Issued		5,700,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights							1,100,000	4,300,000
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
Class of Warrant or Right, Exercise Price of Warrants or Rights							$ 0.35
Common Stock, Shares Issued				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							451,000	$ 680,000
Gains (Losses) on Extinguishment of Debt							$ 75,321
Class of Warrant or Right, Number of Securities Called by Warrants or Rights								3,400,000
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, 2017	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				1,750,001	3,439,091
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 0.25	$ 0.25
Proceeds from Issuance of Common Stock				$ 437,500	$ 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, 2017	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	2,128,741	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			$ 932,388	$ 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
Payments of Stock Issuance Costs	$ 281,000
Proceeds from Issuance of Private Placement	$ 3,400,000

REGISTERED DIRECT OFFERING 2036

REGISTERED DIRECT OFFERING 2017 (Details) - Fair Value, Inputs, Level 3 [Member]	12 Months Ended
	Sep. 30, 2017USD ($)
Balance	$ 0
Issuances	2,996,110
Adjustments to estimated fair value	433,923
Balance	$ 3,430,033

REGISTERED DIRECT OFFERING 2037

REGISTERED DIRECT OFFERING 2017 (Details 1) - $ / shares	1 Months Ended	12 Months Ended
	Feb. 24, 2017	Sep. 30, 2017	Sep. 30, 2016
Common Stock, Par Value		$ 0.001	$ 0.001
Derivative Financial Instruments, Liabilities [Member]
Common Stock, Par Value	$ 0.68	0.60
Exercise price per share	$ 0.75	$ 0.75
Expected volatility	111.84%	109.77%
Risk-free interest rate	1.80%	1.89%
Dividend yield	0.00%	0.00%
Remaining expected term of underlying securities (years)	5 years	4 years 4 months 20 days

REGISTERED DIRECT OFFERING 2038

REGISTERED DIRECT OFFERING 2017 (Details Textual) - USD ($)	Nov. 14, 2017	Mar. 03, 2017	Feb. 24, 2017	Feb. 20, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 28, 2016	Sep. 30, 2013
Repayments of Notes Payable					$ 1,000,000	$ 0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease)					$ (433,923)	192,128
Registered Direct Offering 2017 [Member]
Repayments of Notes Payable						$ 50,000,000
Stock Issued During Period, Shares, New Issues				10,166,664
Shares Issued, Price Per Share				$ 0.60
Cash Price Per Each Common Stock Underlying Warrants			$ 0.18
Allocation Of Remaining Proceeds To Common Stock And Additional Paid In Capital			2,991,012
Payments of Stock Issuance Costs			112,000
Stock Issued During Period, Value, New Issues			6,100,000
Derivative Liability			2,996,110
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease)	$ 433,923
Massachusetts Life Sciences Center [Member]
Repayments of Notes Payable		$ 830,000	$ 830,000
Class of Warrant or Right, Exercise Price of Warrants or Rights								$ 0.27
Qualified Financing Minimum Net Proceeds							$ 5,000,000
Common Stock [Member]
Stock Issued During Period, Shares, New Issues			10,166,664
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 0.75
Series F Warrant [Member] | Registered Direct Offering 2017 [Member]
Stock Issued During Period, Value, New Issues			$ 5,987,122
Percentage of Class of Warrant Or Right Held				20.00%

8% CONVERTIBLE NOTES (Details)

8% CONVERTIBLE NOTES (Details) - Fair Value, Inputs, Level 3 [Member] - Convertible Debt [Member]	12 Months Ended
	Sep. 30, 2016USD ($)
Derivative [Line Items]
Beginning balance	$ 335,092
Gain on conversion of debt	(142,964)
Decrease to fair value of derivative	(192,128)
Ending balance	$ 0

8% CONVERTIBLE NOTES (Details 1

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

8% CONVERTIBLE NOTES (Details T

8% CONVERTIBLE NOTES (Details Textual) - USD ($)	Mar. 13, 2016	Mar. 13, 2015	Sep. 30, 2017	Sep. 30, 2016
8% Convertible Notes [Line Items]
Debt Instrument, Face Amount			$ 0	$ 0
Debt Instrument, Convertible, Conversion Price		$ 0.20
Derivative Liability, Fair Value, Amount Not Offset Against Collateral			354,988
Proceeds from Issuance of Debt			395,012
Interest and Debt Expense			$ 131,252
Convertible Notes Payable, Current				$ 0
Common Stock [Member]
8% Convertible Notes [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities				3,224,494
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 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 became due and payable upon their conversion or the Stated Maturity Date and could become due and payable upon the occurrence of an event of default under the Notes. The Notes contained 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.
Derivative, Gain on Derivative				$ 142,964
Derivative Liability Adjustments				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, Periodic Payment, Interest				39,900
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, 2017	Sep. 30, 2015
Option Shares Outstanding
Outstanding, Beginning Balance	12,379,210
Awarded	2,700,000
Exercised	(255,000)
Forfeited/Cancelled	(190,000)
Outstanding, Ending Balance	14,634,210
Vested	11,776,130
Vested and expected to vest	14,634,210
Weighted Average Exercise Price
Outstanding, Beginning Balance	$ 0.33
Awarded	0.65
Exercised	0.35
Forfeited/Cancelled	0.39
Outstanding, Ending Balance	0.39
Vested	0.36
Vested and expected to vest	$ 0.39
Weighted Average Remaining Contractual Term (years)
Balance	4 years 8 months 19 days	6 years 4 months 24 days
Awarded	0 years
Exercised	0 years
Forfeited/Cancelled	0 years
Vested	5 years 1 month 2 days
Vested and expected to vest	4 years 8 months 19 days
Aggregate Intrinsic Value
Outstanding, Beginning Balance	$ 4,341,816
Awarded	0
Exercised	0
Forfeited/Cancelled	0
Outstanding, Ending Balance	6,178,263
Vested	5,321,198
Vested and expected to vest	$ 6,178,263

STOCK-BASED COMPENSATION (Det43

STOCK-BASED COMPENSATION (Details 1) - Restricted Stock - shares	1 Months Ended	12 Months Ended
	May 03, 2016	Sep. 30, 2017
Weighted Average Grant Date Fair Value
Awarded	2,000,000
2013 Incentive Plan [Member]
Weighted Average Grant Date Fair Value
Non Vested, Beginning Balance		225,000
Awarded		1,750,000
Vested		(225,000)
Forfeited		0
Non Vested, Ending Balance		1,750,000

STOCK-BASED COMPENSATION (Det44

STOCK-BASED COMPENSATION (Details 2) - 2013 Incentive Plan [Member]	12 Months Ended
	Sep. 30, 2017$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non Vested, Beginning Balance	$ 0.72
Awarded	0.65
Vested	0.72
Forfeited	0
Non Vested, Ending Balance	$ 0.65

STOCK-BASED COMPENSATION (Det45

STOCK-BASED COMPENSATION (Details Textual) - USD ($)	Oct. 01, 2017	Feb. 03, 2017	Aug. 09, 2016	Aug. 06, 2015	May 03, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015	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						4 years 8 months 19 days		6 years 4 months 24 days
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price						$ 0.65
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate, minimum						72.26%
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						1.14%
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						1,465,861
Common Stock, Shares Authorized						300,000,000	300,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						2,700,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares						11,776,130
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period						255,000
Restricted Stock
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				150,000
Share Price				$ 0.35
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period				300,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage					100.00%
Non-Employee Resricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense						$ 372,000	$ 0
Research and Development Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense						374,000	270,000
General and Administrative Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense						969,000	668,000
General and Administrative Expense | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense						$ 553,000	213,000
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						$ 1,343,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						13,524,212
Consultants
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						5,282,500
Chief Executive Officer [Member] | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares				150,000
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						$ 809,000
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition						1 year 7 months 2 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 | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted		1,750,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		100.00%
2013 Stock Incentive Plan | Cashless Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						240,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period						106,666
2013 Stock Incentive Plan | Cash Basis Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						15,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period						15,000
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						$ 0.65
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						$ 0.60
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						2,495,000
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						205,000

Restricted Stock Awarded Outs46

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan (Details) - Restricted Stock Units (RSUs) [Member] - shares	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Non Vested, Beginning Balance	2,000,000	150,000
Awarded	0	2,000,000
Vested	0	(150,000)
Forfeited	0	0
Non Vested, Ending Balance	2,000,000	2,000,000

Restricted Stock Awarded Outs47

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan (Details 1) - Restricted Stock [Member] - $ / shares	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Non Vested, Beginning Balance	$ 0.39	$ 0.35
Awarded	0	0.39
Vested	0	0.35
Forfeited	0	0
Non Vested, Ending Balance	$ 0.39	$ 0.39

Restricted Stock Awarded Outs48

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan (Details Textual) - USD ($)	Aug. 06, 2015	May 03, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares			11,776,130
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			2,700,000
General and Administrative Expense [Member]
Allocated Share-based Compensation Expense			$ 969,000	$ 668,000
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			$ 553,000	$ 213,000
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 ($)	Mar. 03, 2017	Feb. 24, 2017	Sep. 28, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2013
Note Payable [Line Items]
Interest Expense, Debt				$ 22,100	$ 8,300
Debt instrument, unamortized discount				0	977,882
Repayments of Notes Payable				1,000,000	0
Registered Direct Offering 2017
Note Payable [Line Items]
Stock Issued During Period, Value, New Issues		$ 6,100,000
Repayments of Notes Payable					$ 50,000,000
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 decreased from 10% per annum to 7% per annum beginning October 3, 2016; and (ii) the MLSC Loan became due and payable on the earlier of October 3, 2017 (the Maturity Date), the occurrence of a Corporate Event (which was 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 began 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 was 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 originally bore interest at a rate of 10% per annum, and was originally scheduled to 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%
Repayments of Notes Payable	$ 830,000	830,000
Debt Instrument Reduction In Interest Expenses		$ 250,000

COMMITMENTS AND CONTINGENCIES50

COMMITMENTS AND CONTINGENCIES (Details) - Framingham [Member]	Sep. 30, 2017USD ($)
2,018	$ 38,400
2,019	39,600
2,020	42,000
Contractual obligation, total	$ 120,000

COMMITMENTS AND CONTINGENCIES51

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	1 Months Ended			12 Months Ended
	Jul. 31, 2017	Apr. 30, 2015	Oct. 31, 2013	Sep. 30, 2017	Sep. 30, 2016
Commitments And Contingencies [Line Items]
License Maintenance Costs				$ 50,000	$ 50,000
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
Lease Expiration Date	Sep. 30, 2020
Operating Leases, Future Minimum Payments Due, Next Twelve Months				38,400
Operating Leases, Future Minimum Payments, Due in Two Years				39,600
Operating Leases, Future Minimum Payments, Due in Three Years				$ 42,000
Lessee, Operating Lease, Term of Contract	3 years
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]	Nov. 14, 2017USD ($)$ / sharesshares
Series D Warrants [Member]
Business Acquisition, Equity Interests Issued Or Issuable [Line Items]
Common Stock Issuance Upon Exercise Of Warrants | shares	227,273
Series D Warrants [Member] | Common Stock [Member]
Business Acquisition, Equity Interests Issued Or Issuable [Line Items]
Proceeds from Issuance of Common Stock | $	$ 56,818
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 0.25
Series E warrants [Member]
Business Acquisition, Equity Interests Issued Or Issuable [Line Items]
Common Stock Issuance Upon Exercise Of Warrants | shares	15,000
Series E warrants [Member] | Common Stock [Member]
Business Acquisition, Equity Interests Issued Or Issuable [Line Items]
Proceeds from Issuance of Common Stock | $	$ 6,570
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 0.438