Arch Therapeutics (ARTH) 10-Q 26 Apr 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2018	Apr. 25, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Entity Registrant Name	Arch Therapeutics, Inc.
Entity Central Index Key	1,537,561
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Trading Symbol	ARTH
Entity Common Stock, Shares Outstanding		154,052,013

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Current assets:
Cash	$ 3,377,998	$ 5,994,052
Prepaid expenses	69,857	85,343
Total current assets	3,447,855	6,079,395
Long-term assets:
Property and equipment, net	15,228	7,188
Other assets	3,500	3,500
Total long-term assets	18,728	10,688
Total assets	3,466,583	6,090,083
Current liabilities:
Accounts payable	317,494	264,876
Accrued expenses and other liabilities	74,483	168,655
Total current liabilities	391,977	433,531
Long-term liabilities:
Long-term derivative liability	1,000,000	3,430,033
Total long-term liabilities	1,000,000	3,430,033
Total liabilities	1,391,977	3,863,564
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value, 300,000,000 shares authorized, 154,052,013 and 138,182,075 shares issued and outstanding as of March 31, 2018 and September 30, 2017, respectively	150,302	149,943
Additional paid-in capital	32,593,935	31,580,022
Accumulated deficit	(30,669,631)	(29,503,446)
Total stockholders’ equity	2,074,606	2,226,519
Total liabilities and stockholders' equity	$ 3,466,583	$ 6,090,083

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Sep. 30, 2017
Statement of Financial Position [Abstract]
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	300,000,000	300,000,000
Common Stock, Shares Issued	154,052,013	138,182,075
Common Stock, Shares Outstanding	154,052,013	138,182,075

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Income Statement
Revenues	$ 0	$ 0	$ 0	$ 0
Operating expenses:
General and administrative expenses	999,388	1,494,204	2,000,899	2,520,847
Research and development expenses	1,014,457	709,919	1,595,319	1,059,206
Total operating expenses	2,013,845	2,204,123	3,596,218	3,580,053
Operating loss	(2,013,845)	(2,204,123)	(3,596,218)	(3,580,053)
Other income (expense):
Decrease to fair value of derivative	458,484	361,506	2,430,033	361,506
Interest expense	0	(26,815)	0	(52,385)
Total other income (expense)	458,484	334,691	2,430,033	309,121
Net loss	$ (1,555,361)	$ (1,869,432)	$ (1,166,185)	$ (3,270,932)
Earnings per share - basic and diluted
Net loss per common share - basic and diluted	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.02)
Weighted common shares - basic and diluted	150,302,013	140,513,488	150,222,429	137,893,324

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net loss	$ (1,166,185)	$ (3,270,932)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation	1,854	477
Stock-based compensation	950,884	1,013,367
Noncash interest expense on notes payable	0	22,118
Issuance of restricted stock for services	0	162,000
Decrease to fair value of derivative	(2,430,033)	(361,506)
(Increase) decrease in:
Prepaid expenses	15,486	(237,446)
Increase (decrease) in:
Accounts payable	52,618	(247,825)
Accrued expenses and other liabilities	(94,172)	(157,471)
Accrued interest	0	(331,000)
Net cash used in operating activities	(2,669,548)	(3,408,218)
Cash flows from investing activities:
Purchases of property and equipment	(9,894)	(4,293)
Net cash used in investing activities	(9,894)	(4,293)
Cash flows from financing activities:
Proceeds from exercise of warrants	63,388	537,659
Proceeds from issuance of common stock and warrants	0	6,068,686
Payments on note payable	0	(1,000,000)
Net cash provided by financing activities	63,388	5,606,345
Net (decrease) increase in cash	(2,616,054)	2,193,834
Cash, beginning of year	5,994,052	5,036,476
Cash, end of period	3,377,998	7,230,310
Non-cash financing activities:
Exercise of stock options - cashless	117	107
Financing Costs on issuance of common stock and warrants	0	93,687
Warrant derivative liability	$ 0	$ 2,996,110

BASIS OF PRESENTATION AND DESCR

BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS	6 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS	1. BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS Organization and Description of Business Arch Therapeutics, Inc., (together with its subsidiary, the “Company” 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 (“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	6 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The interim consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly our results of operations and financial position for the interim periods. Although we believe that the disclosures in these unaudited interim consolidated financial statements are adequate to make the information presented not misleading, certain information normally included in the footnotes prepared in accordance with US GAAP has been omitted as permitted by the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2017, filed with the SEC on November 15, 2017. For a complete summary of our significant accounting policies, please refer to Note 2 included in Item 8 of our Form 10-K for the fiscal year ended September 30, 2017. There have been no material changes to our significant accounting policies during the three and six months ended March 31, 2018. The consolidated financial statements include the accounts of Arch Therapeutics, Inc. and its wholly owned subsidiary, Arch Biosurgery, Inc., a biotechnology company. All intercompany accounts and transactions have been eliminated in consolidation. The Company is in the development stage and is devoting substantially all of its efforts to developing technologies, raising capital, establishing customer and vendor relationships, and recruiting and retaining new employees. Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. 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 adopted ASU 2016-09 during our first quarter of fiscal year 2018, which had no impact on our consolidated financial statements, and will apply the new guidance in future periods 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. 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 March 31, 2018 and September 30, 2017. Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash. The Company maintains its cash in bank deposits accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash. Deferred Offering Costs consist of fees and expenses incurred in connection with the public offering and sale of the Company’s common stock, including legal, accounting, printing and other related expenses. These costs are netted against the proceeds received as a reduction to additional paid-in capital. Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful life of the related asset. Upon sale or retirement, the cost and accumulated depreciation are eliminated from their respective accounts, and the resulting gain or loss is included in income or loss for the period. Repair and maintenance expenditures are charged to expense as incurred. Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable in accordance with ASC 360, Property, Plant and Equipment 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. 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 March 31, 2018 and September 30, 2017. On December 22, 2017, the Tax Cuts and Jobs Act (“the Act”), was signed into law by the President of the United States. The Act includes a number of changes, including the lowering of the U.S. corporate tax rate from 35 21 The Company expenses internal and external research and development costs, including costs of funded research and development arrangements, in the period incurred. The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation-Stock Compensation Equity In accordance with FASB ASC Topic 718, the Company has elected to use the Black-Scholes option pricing model to determine the fair value of options granted and recognizes the compensation cost of share-based awards on a straight-line basis over the vesting period of the award. The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by the fair value of the common stock and a number of other assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. Prior to January 1, 2018, the Company did 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 The Company measures both financial and nonfinancial assets and liabilities in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures At March 31, 2018 and September 30, 2017, the carrying amounts of cash, accounts payable, accrued expenses and other liabilities, approximate fair value because of their short-term nature. 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 expected volatility, expected life, yield, and risk-free interest rate. The Company evaluated all events or transactions that occurred commencing from April 1, 2018 and ending on April 25, 2018 the date which these consolidated financial statements were issued. The Company disclosed material subsequent events in Note 11. 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 March 31, 2018, 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 Securities Purchase Agreement that the Company entered into on February 20, 2017 (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	6 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	3. PROPERTY AND EQUIPMENT Estimated Useful March 31, September 30, Life 2018 2017 Computer equipment 3 years $ 8.686 $ 8,686 Leasehold improvements 3 years 3,463 - Furniture and fixtures 5 years 9,356 2,925 Lab equipment 5 years 1,000 1,000 22,505 12,611 Less – accumulated depreciation 7,277 5,423 Property and equipment, net $ 15,228 $ 7,188 For the three months ended March 31, 2018 and 2017 depreciation expense recorded was $ 1,130 357 1,854 477

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Mar. 31, 2018
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, 2017, a maximum number of 19,114,256 3,000,000 3,000,000 22,114,256 As of March 31, 2018, a total of 14,624,212 5,407,506 Share-based awards During the three and six months ended March 31, 2018, the Company granted 915,000 125,000 . 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 three and six months ended March 31, 2018 was based on the fair market value at period end or grant date fair value estimated using the Black-Scholes Option Pricing Model. The following assumptions were used to calculate the fair value of share based compensation for the three and six months ended March 31, 2018; expected volatility, 93.15 119.44 1.31 2.74 0 0 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. Prior to January 1, 2018, 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. Effective January 1, 2018, 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. 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. Since the Company has a limited history of occurrences of stock option forfeitures and a small number of employees 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, 2017 14,634,210 $ 0.39 4.72 $ 6,178,263 Awarded 1,040,000 $ 0.48 - - Exercised (225,000) $ 0.37 - - Forfeited/Cancelled (870,000) $ 0.37 - - Outstanding at March 31, 2018 14,579,210 $ 0.40 4.26 $ 440,410 Exercisable at March 31, 2018 11,951,457 $ 0.37 4.70 $ 437,619 Vested and expected to vest at March 31, 2018 14,579,210 $ 0.40 4.26 $ 440,410 As of March 31, 2018, 4,258,980 280,000 564,000 148,000 192,000 132,000 372,000 473,000 731,000 209,000 228,000 264,000 503,000 During the three months ended March 31, 2018, no stock options awarded under the 2013 Stock Incentive Plan were exercised. During the six months ended March 31, 2018, 225,000 116,883 As of March 31, 2018, there is approximately $ 729,000 1.78 Restricted Stock On February 3, 2017, the Company awarded 1,750,000 100 100 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 90 75,000 120 75,000 150 125,000 125,000 125,000 2018 2017 Non Vested at beginning of year 1,750,000 225,000 Awarded - 1,750,000 Vested - (225,000) Forfeited - - Non Vested at March 31, 2018 and 2017 1,750,000 1,750,000 2018 2017 Non Vested at beginning of year $ 0.65 $ 0.72 Awarded - 0.65 Vested - 0.72 Forfeited - - Non Vested at March 31, 2018 and 2017 $ 0.65 $ 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 three months ended March 31, 2018 and 2017 compensation expense recorded for the restricted stock awards was approximately $ 140,000 141,000 284,000 141,000

Restricted Stock Awarded Outsid

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan	6 Months Ended
	Mar. 31, 2018
Restricted Stock [Abstract]
Restricted Stock Awarded Outside the 2013 Stock Incentive Plan	Restricted Stock Awarded Outside the 2013 Stock Incentive Plan On May 3, 2016, the Company awarded 2,000,000 100 2018 2017 Non Vested at beginning of year 2,000,000 2,000,000 Awarded - - Vested - - Forfeited - - Non Vested at March 31, 2018 and 2017 2,000,000 2,000,000 2018 2017 Non Vested at beginning of year $ 0.39 $ 0.39 Awarded - - Vested - - Forfeited - - Non Vested at March 31, 2018 and 2017 $ 0.39 $ 0.39 For the three months ended March 31, 2018 and 2017, compensation expense recorded for the restricted stock awards was approximately $ 96,000 195,000

NOTE PAYABLE

NOTE PAYABLE	6 Months Ended
	Mar. 31, 2018
Notes Payable [Abstract]
NOTE PAYABLE	NOTE PAYABLE On September 30, 2013, the Company entered into the Life Sciences Accelerator Funding Agreement (“MLSC Loan Agreement”) with the Massachusetts Life Sciences Center (“MLSC”), pursuant to which MLSC provided an unsecured subordinated loan in the amount of $ 1,000,000 10 145,985 0.27 March 31, 2018 Of the $ 1,000,000 944,707 55,293 0 16,600 22,100 0 On September 28, 2016, the Company and MLSC entered into that certain Amendment Agreement to Arch Therapeutics, Inc. Accelerator Funding Agreement (“Amendment”). Under the terms of 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 (“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. As a result of the Amendment, the Company expected to reduce interest expenses that would otherwise be incurred under the MLSC Loan Agreement by approximately $ 232,000 7 6.1 830,000 250,000 During the three months ended March 31, 2018 and 2017, the Company recorded Interest Expense of approximately $ 0 26,800 0 52,400

PRIVATE PLACEMENT FINANCING 201

PRIVATE PLACEMENT FINANCING 2014	6 Months Ended
	Mar. 31, 2018
2014 Private Placement Financing [Member]
Private Placement [Line Items]
PRIVATE PLACEMENT FINANCING	2014 PRIVATE PLACEMENT FINANCING On January 30, 2014, the Company entered into a Securities Purchase Agreement (“Securities Purchase Agreement”) with nine separate accredited investors (“2014 Investors”) providing for the issuance and sale by the Company to the 2014 Investors, in a private placement, of an aggregate of 11,400,000 0.25 34,200,000 2,850,000 Upon the closing of the 2014 Private Placement Financing on February 4, 2014 (“Closing Date”), the Company entered into a registration rights agreement (“2014 Registration Rights Agreement”) with the 2014 Investors, pursuant to which the Company became obligated, subject to certain conditions, to file with the SEC on or before March 21, 2014 one or more registration statements to register for resale under the Securities Act of 1933, as amended (“Securities Act”), (i) the 2014 Shares and the 2014 Warrant Shares, plus (ii) an additional number of shares of Common Stock equal to 33% of the total number of 2014 Shares and 2014 Warrant Shares, to account for adjustments, if any, to the number of 2014 Warrant Shares issuable pursuant to the terms of the 2014 Warrants (the securities set forth in this clause (ii), the “Additional Shares”). Under the terms of the 2014 Registration Rights Agreement, the Company was permitted to reduce the number of shares covered by a registration statement if such reduction is required by the SEC as a condition for permitting such registration statement to become effective and treated as a resale registration statement (“Cutback Provisions”). In response to comments received from the SEC and in accordance with the terms of the 2014 Registration Rights Agreement, the Company reduced the number of shares included in its draft resale registration statement (the “2014 S-1”) by the number of Additional Shares. The Company’s failure to satisfy certain other obligations and deadlines set forth in the 2014 Registration Rights Agreement may subject the Company to payment of monetary penalties as discussed below. The resale registration statement was declared effective on July 2, 2014. As described below, in the event that we fail to comply with certain requirements in the 2014 Registration Rights Agreement, we may be required to pay liquidated damages to the investors. The 2014 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 (“2014 S-3”) to register the remaining securities covered by the 2014 Registration Rights Agreement, and the 2014 S-3 was declared effective on November 23, 2016. Pursuant to Rule 429 promulgated under the Securities Act, the 2014 S-3 contained a combined prospectus that covered the securities that remained unsold under the 2014 S-1 and also registered those same securities under the 2014 S-3. Under Rule 429, the 2014 S-3 also constituted a post-effective amendment to the 2014 S-1, which became effective on the date that the 2014 S-3 was declared effective. The 2014 Warrants were exercisable immediately upon issuance. The Series A warrants had an initial exercise price of $ 0.30 0.35 12 0.40 18 11,400,000 4.9 On December 1, 2014, the Company entered into an agreement with Cranshire Capital Master Fund, Ltd. (“Cranshire”), which was the lead investor in the 2014 Private Placement Financing, to amend certain provisions of the 2014 Warrants (“December 2014 Amendment ). Under the terms of the December 2014 Amendment, the 2014 Warrants were amended to (i) reduce the exercise price of the Series B Warrants from $ 0.35 0.20 0.40 0.20 1,300,170 As of December 2, 2014, Series B Warrants had been exercised for an aggregate issuance of 4,000,000 800,000 224,000 On March 13, 2015, the Company issued unsecured 8 750,000 0.20 5,700,000 11,400,000 17,100,000 624,016 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 For the six months ended March 31, 2017, Series A Warrants had been exercised on a cash basis for an aggregate issuance of 1,100,000 220,000

PRIVATE PLACEMENT FINANCING 213

PRIVATE PLACEMENT FINANCING 2015	6 Months Ended
	Mar. 31, 2018
2015 Private Placement Financing [Member]
Private Placement [Line Items]
PRIVATE PLACEMENT FINANCING	8. 2015 PRIVATE PLACEMENT FINANCING Beginning June 22, 2015 June 30, 2015 20 2015 14,390,754 0.22 2015 2015 0.25 2015 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 8, 2014 Private Placement Financing, and other customary closing conditions. The conditions precedent were satisfied June 30, 2015 (the “Initial Closing Date”), and the Company conducted an initial closing (the “Initial Closing”) pursuant to which it sold and 19 of the 2015 Investors (“Initial Investors”) purchased 13,936,367 3,066,000 100,000 On the Initial Closing Date, the Company entered into a registration rights agreement with the Initial Investors (“2015 Registration Rights Agreement”), pursuant to which the Company was obligated, subject to certain conditions, to file with the Securities and Exchange Commission within 90 days after the closing of the 2015 Private Placement Financing one or more registration statements (any such registration statement, a “Resale Registration Statement”) to register the 2015 Shares and the 2015 Warrant Shares for resale under the Securities Act. The remaining 2015 Investor became a party to the 2015 Registration Rights Agreement upon the consummation of the Second Closing. The Company’s failure to satisfy certain filing and effectiveness deadlines with respect to a Resale Registration Statement and certain other requirements set forth in the 2015 Registration Rights Agreement may subject the Company to payment of monetary penalties. On October 27, 2015, we received from the SEC a Notice of Effectiveness of our Registration Statement related to the 2015 Private Placement Financing (“2015 S-1”) which satisfied some of our obligation to register these securities with the SEC. 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 (“2015 S-3”) to register the remaining securities covered by the 2015 Registration Rights Agreement, and the 2015 S-3 was declared effective on November 23, 2016. Pursuant to Rule 429 promulgated under the Securities Act, the 2015 S-3 contained a combined prospectus that covered the securities that remained unsold under the 2015 S-1 and also registered those same securities under the 2015 S-3. Under Rule 429, the 2015 S-3 also constituted a post-effective amendment to the 2015 S-1, which became effective on the date that the 2015 S-3 was declared effective. 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 three and six months ended March 31, 2018, Series D Warrants had been exercised on a cash basis for an aggregate issuance of 0 and 227,273, respectively shares of the Company’s Common stock resulting in gross proceeds to the Company of $0 and $56,818, respectively. During the three and six months ended March 31,2017, Series D Warrants had been exercised on a cash basis for an aggregate issuance of 363,637 and 613,637, respectively shares of the Company’s Common stock resulting in gross proceeds to the Company of $90,909 and $153,409, respectively. As of March 31, 2018 up to 8,974,389 shares may be acquired upon the exercise of the Series D Warrants. 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 214

PRIVATE PLACEMENT FINANCING 2016	6 Months Ended
	Mar. 31, 2018
Private Placement 2016 [Member]
Private Placement [Line Items]
PRIVATE PLACEMENT FINANCING	9. 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”) with 18 accredited investors (“2016 Investors”) providing for the issuance and sale by the Company to the 2016 Investors, in a private placement, of an aggregate of 9,418,334 0.36 0.75 0.4380 3.4 281,000 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 (“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 holder’s, would be deemed to beneficially own more than 4.99% of the Common Stock; 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 3,390,600 2,084,000 170,888 On May 26, 2016, we entered into a registration rights agreement with the 2016 Investors (“2016 Registration Rights Agreement”), pursuant to which we became obligated, subject to certain conditions, to file with the Securities and Exchange Commission (“SEC”) within 45 days after the closing of the 2016 Private Placement Financing one or more registration statements (the “2016 S-1”) to register the shares of Common Stock issued in the Closings and the Series E Warrant Shares for resale under the Securities Act of 1933, as amended (“Securities Act”). As a result, we registered for resale under the 2016 S-1 an aggregate of 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 (“2016 S-3”) to register the remaining securities covered by the 2016 Registration Rights Agreement, and the 2016 S-3 was declared effective on November 23, 2016. Pursuant to Rule 429 promulgated under the Securities Act, the 2016 S-3 contained a combined prospectus that covered the securities that remained unsold under the 2016 S-1 and also registered those same securities under the 2016 S-3. Under Rule 429, the 2016 S-3 also constituted a post-effective amendment to the 2016 S-1, which became effective on the date that the 2016 S-3 was declared effective. 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 three and six months ended March 31, 2018, Series E Warrants had been exercised on a cash basis for an aggregate issuance of 0 and 15,000 6,570 375,000 164,250 4,214,582 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	6 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
2017 REGISTERED DIRECT OFFERING	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”). Under the Shelf Registration Statement, the Company may offer and sell any combination of its Common Stock, warrants, debt securities, subscription rights, and/or units comprised of the foregoing to raise up to $ 50,000,000 On February 20, 2017, the Company entered into Securities Purchase Agreement with 6 accredited investors (“2017 Investors”) providing for the issuance and sale by the Company to the 2017 Investors of an aggregate of 10,166,664 0.60 0.55 0.75 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 $0.18 for each share of Common Stock underlying the Series F Warrant. As of March 31, 2018, no Series F Warrants have been exercised. As of March 31, 2018 up to 5,591,664 As noted in Note 6, on September 28, 2016, the Company and the Massachusetts Life Sciences Center (“MLSC”) entered into the Amendment. Pursuant to this Amendment, the term “Qualified Financing” was defined to mean one or more financing transactions in which the Company received, in a single transaction or series of transactions, cumulative net proceeds of not less than five million dollars ($ 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 0.18 On the Closing Date, February 24, 2017 the derivative liabilities were recorded at fair value of $ 2,996,110 5,987,122 2,991,012 458,484 361,506 2,430,033 361,506 433,923 Fair Value Measurements Using Significant Unobservable Inputs March 31, September 30, (Level 3) 2018 2017 Balance at beginning of year $ 3,430,033 $ - Issuances - 2,996,110 Adjustments to estimated fair value (2,430,033) 433,923 Ending balance at March 31, 2018 and September 30, 2017 $ 1,000,000 $ 3,430,033 March 31, September 30, 2018 2017 Closing price per share of common stock $ 0.32 $ 0.60 Exercise price per share $ 0.75 $ 0.75 Expected volatility 97.42 % 109.77 % Risk-free interest rate 2.48 % 1.89 % Dividend yield — — Remaining expected term of underlying securities (years) 3.89 4.39

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company evaluated subsequent events from April 1, 2018 through April 25, 2018, and concluded that no subsequent events have occurred that would require recognition or disclosure in the consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements include the accounts of Arch Therapeutics, Inc. and its wholly owned subsidiary, Arch Biosurgery, Inc., a biotechnology company. All intercompany accounts and transactions have been eliminated in consolidation. 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 adopted ASU 2016-09 during our first quarter of fiscal year 2018, which had no impact on our consolidated financial statements, and will apply the new guidance in future periods 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.
Cash	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 March 31, 2018 and September 30, 2017.
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 Offering 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 March 31, 2018 and September 30, 2017. On December 22, 2017, the Tax Cuts and Jobs Act (“the Act”), was signed into law by the President of the United States. The Act includes a number of changes, including the lowering of the U.S. corporate tax rate from 35 21
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. Prior to January 1, 2018, the Company did 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 March 31, 2018 and September 30, 2017, the carrying amounts of cash, accounts payable, accrued expenses and other liabilities, approximate fair value because of their short-term nature.
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 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 April 1, 2018 and ending on April 25, 2018 the date which these consolidated financial statements were issued. The Company disclosed material subsequent events in Note 11.
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 March 31, 2018, 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 Securities Purchase Agreement that the Company entered into on February 20, 2017 (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)	6 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	At March 31, 2018 and September 30, 2017, property and equipment consisted of: Estimated Useful March 31, September 30, Life 2018 2017 Computer equipment 3 years $ 8.686 $ 8,686 Leasehold improvements 3 years 3,463 - Furniture and fixtures 5 years 9,356 2,925 Lab equipment 5 years 1,000 1,000 22,505 12,611 Less – accumulated depreciation 7,277 5,423 Property and equipment, net $ 15,228 $ 7,188

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables) - 2013 Stock Incentive Plan [Member]	6 Months Ended
	Mar. 31, 2018
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 six months ended March 31, 2018 follows: Weighted Weighted Average Option Average Remaining Aggregate Shares Exercise Contractual Intrinsic Outstanding Price Term (years) Value Outstanding at September 30, 2017 14,634,210 $ 0.39 4.72 $ 6,178,263 Awarded 1,040,000 $ 0.48 - - Exercised (225,000) $ 0.37 - - Forfeited/Cancelled (870,000) $ 0.37 - - Outstanding at March 31, 2018 14,579,210 $ 0.40 4.26 $ 440,410 Exercisable at March 31, 2018 11,951,457 $ 0.37 4.70 $ 437,619 Vested and expected to vest at March 31, 2018 14,579,210 $ 0.40 4.26 $ 440,410
Nonvested Restricted Stock Shares Activity	Restricted stock activity under the 2013 Plan for the six months ended March 31, 2018 and 2017 follows: 2018 2017 Non Vested at beginning of year 1,750,000 225,000 Awarded - 1,750,000 Vested - (225,000) Forfeited - - Non Vested at March 31, 2018 and 2017 1,750,000 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 six months ended March 31, 2018 and 2017 follows: 2018 2017 Non Vested at beginning of year $ 0.65 $ 0.72 Awarded - 0.65 Vested - 0.72 Forfeited - - Non Vested at March 31, 2018 and 2017 $ 0.65 $ 0.65

Restricted Stock Awarded Outs20

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan (Tables) - Restricted Stock Units (RSUs) [Member]	6 Months Ended
	Mar. 31, 2018
Nonvested Restricted Stock Shares Activity	Restricted Stock activity for the six months ended March 31, 2018 and 2017 is as follows: 2018 2017 Non Vested at beginning of year 2,000,000 2,000,000 Awarded - - Vested - - Forfeited - - Non Vested at March 31, 2018 and 2017 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 six months ended March 31, 2018 and 2017 follows: 2018 2017 Non Vested at beginning of year $ 0.39 $ 0.39 Awarded - - Vested - - Forfeited - - Non Vested at March 31, 2018 and 2017 $ 0.39 $ 0.39

REGISTERED DIRECT OFFERING 2021

REGISTERED DIRECT OFFERING 2017 (Tables) - REGISTERED DIRECT OFFERING 2017 [Member]	6 Months Ended
	Mar. 31, 2018
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	For the year ended September 30, 2017, $ 433,923 Fair Value Measurements Using Significant Unobservable Inputs March 31, September 30, (Level 3) 2018 2017 Balance at beginning of year $ 3,430,033 $ - Issuances - 2,996,110 Adjustments to estimated fair value (2,430,033) 433,923 Ending balance at March 31, 2018 and September 30, 2017 $ 1,000,000 $ 3,430,033
Schedule of Assumptions Used to Value Derivative Liability	The derivative liabilities were valued as of March 31, 2018 and September 30, 2017 using the Black Scholes Model with the following assumptions March 31, September 30, 2018 2017 Closing price per share of common stock $ 0.32 $ 0.60 Exercise price per share $ 0.75 $ 0.75 Expected volatility 97.42 % 109.77 % Risk-free interest rate 2.48 % 1.89 % Dividend yield — — Remaining expected term of underlying securities (years) 3.89 4.39

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	6 Months Ended	12 Months Ended
	Mar. 31, 2018	Sep. 30, 2018
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%
Scenario, Plan [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		21.00%

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	6 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
Property, and equipment, gross, total	$ 22,505	$ 12,611
Less - accumulated depreciation	7,277	5,423
Property and equipment, net	$ 15,228	7,188
Computer equipment
Property, and equipment, useful life	3 years
Property, and equipment, gross, total	$ 8.686	8,686
Leasehold improvements
Property, and equipment, useful life	3 years
Property, and equipment, gross, total	$ 3,463	0
Furniture and fixtures
Property, and equipment, useful life	5 years
Property, and equipment, gross, total	$ 9,356	2,925
Lab equipment
Property, and equipment, useful life	5 years
Property, and equipment, gross, total	$ 1,000	$ 1,000

PROPERTY AND EQUIPMENT (Detai24

PROPERTY AND EQUIPMENT (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Depreciation expense	$ 1,130	$ 357	$ 1,854	$ 477

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($)	6 Months Ended
	Mar. 31, 2018
Option Shares Outstanding
Outstanding, Beginning Balance	14,634,210
Awarded	1,040,000
Exercised	(225,000)
Forfeited/Cancelled	(870,000)
Outstanding, Ending Balance	14,579,210
Exercisable	11,951,457
Vested and expected to vest	14,579,210
Weighted Average Exercise Price
Outstanding, Beginning Balance	$ 0.39
Awarded	0.48
Exercised	0.37
Forfeited/Cancelled	0.37
Outstanding, Ending Balance	0.4
Exercisable	0.37
Vested and expected to vest	$ 0.4
Weighted Average Remaining Contractual Term (years)
Outstanding, Beginning Balance	4 years 8 months 19 days
Awarded	0 years
Exercised	0 years
Forfeited/Cancelled	0 years
Outstanding, Ending Balance	4 years 3 months 4 days
Exercisable	4 years 8 months 12 days
Vested and expected to vest	4 years 3 months 4 days
Aggregate Intrinsic Value
Outstanding, Beginning Balance	$ 6,178,263
Awarded	0
Exercised	0
Forfeited/Cancelled	0
Outstanding, Ending Balance	440,410
Exercisable	437,619
Vested and expected to vest	$ 440,410

STOCK-BASED COMPENSATION (Det26

STOCK-BASED COMPENSATION (Details 1) - Restricted Stock - shares	1 Months Ended	6 Months Ended
	May 03, 2016	Mar. 31, 2018	Mar. 31, 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		1,750,000	225,000
Awarded		0	1,750,000
Vested		0	(225,000)
Forfeited		0	0
Non Vested, Ending Balance		1,750,000	1,750,000

STOCK-BASED COMPENSATION (Det27

STOCK-BASED COMPENSATION (Details 2) - 2013 Incentive Plan [Member] - $ / shares	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non Vested, Beginning Balance	$ 0.65	$ 0.72
Awarded	0	0.65
Vested	0	0.72
Forfeited	0	0
Non Vested, Ending Balance	$ 0.65	$ 0.65

STOCK-BASED COMPENSATION (Det28

STOCK-BASED COMPENSATION (Details Textual) - USD ($)	Oct. 02, 2017	Feb. 03, 2017	Aug. 09, 2016	May 03, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017	Jun. 18, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
common stock, shares, issued					154,052,013		154,052,013		138,182,075
Increase In Aggregate Number Of Shares										3,000,000
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price							$ 0.48
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate, minimum							93.15%
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							1.31%
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate, maximum							2.74%
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					4,258,980		4,258,980
Allocated share-based compensation expense							$ 473,000	$ 731,000
Common Stock, Shares Authorized					300,000,000		300,000,000		300,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross							1,040,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage				100.00%
Non-Employee Resricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense					$ 140,000	$ 141,000	$ 284,000	141,000
Research and Development Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense					148,000	192,000	209,000	228,000
General and Administrative Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense					132,000	372,000	264,000	503,000
General and Administrative Expense | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense					96,000		$ 195,000	$ 195,000
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]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross							14,624,212
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							5,407,506
Employees, Directors And Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense					280,000	$ 564,000
2013 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
common stock, shares, issued			225,000
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					$ 729,000		$ 729,000
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition							1 year 9 months 11 days
Common Stock, Shares Authorized	22,114,256								19,114,256
Share-based compensation arrangement by share-based payment award, number of additional shares authorized	3,000,000
Stock Issued During Period, Shares, New Issues							116,883	106,666
Share Price			$ 0.72
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period						240,000	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 | Restricted Stock | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		100.00%
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 years
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 years
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 years
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					915,000		125,000
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					915,000		125,000

Restricted Stock Awarded Outs29

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan (Details) - Restricted Stock Units (RSUs) [Member] - shares	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Non Vested, Beginning Balance	2,000,000	2,000,000
Awarded	0	0
Vested	0	0
Forfeited	0	0
Non Vested, Ending Balance	2,000,000	2,000,000

Restricted Stock Awarded Outs30

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan (Details 1) - Restricted Stock [Member] - $ / shares	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Non Vested, Beginning Balance	$ 0.39	$ 0.39
Awarded	0	0
Vested	0	0
Forfeited	0	0
Non Vested, Ending Balance	$ 0.39	$ 0.39

Restricted Stock Awarded Outs31

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	May 03, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Allocated Share-based Compensation Expense				$ 473,000	$ 731,000
General and Administrative Expense [Member]
Allocated Share-based Compensation Expense		$ 132,000	$ 372,000	264,000	503,000
Restricted Stock [Member]
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		$ 96,000		$ 195,000	$ 195,000

NOTE PAYABLE (Details Textual)

NOTE PAYABLE (Details Textual) - USD ($)	Mar. 03, 2017	Feb. 24, 2017	Sep. 28, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017	Feb. 20, 2017	Sep. 30, 2013
Note Payable [Line Items]
Interest Expense, Debt				$ 0	$ 26,800	$ 0	$ 52,400
Debt instrument, unamortized discount				0		0		$ 0
Repayments of Notes Payable						0	1,000,000
REGISTERED DIRECT OFFERING 2017 [Member]
Note Payable [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights									$ 0.75
Stock Issued During Period, Value, New Issues		$ 6,100,000
Loans
Note Payable [Line Items]
Notes Payable				944,707		944,707
Interest Expense, Debt				0	$ 16,600	0	$ 22,100
2014 Warrant
Note Payable [Line Items]
Notes Payable				55,293		55,293
Massachusetts Life Sciences Center
Note Payable [Line Items]
Subordinated Debt				$ 1,000,000		$ 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 (“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 (“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
Debt Instrument, Reduction In Interest Expenses	$ 250,000

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	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017
Private Placement [Line Items]
Common Stock, Shares Issued							154,052,013		138,182,075
Gains (Losses) on Extinguishment of Debt				$ 224,000
Gain (Loss) On Warrant Derivative Modification		$ 624,016
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]
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
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
Gains (Losses) on Extinguishment of Debt			$ 75,321
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	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
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				2,015	14,390,754	302,015	0.22
Class of Warrant or Right, Exercise Price of Warrants or Rights								$ 0.25
Proceeds from Issuance of Common Stock				$ 20	$ 2,015	$ 2,015	$ 2,015
Common Stock, Capital Shares Reserved for Future Issuance				2,015		2,015
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	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
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	0	250,000	15,000	375,000
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 (“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 holder’s, 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 Company’s 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			$ 0	$ 109,500	$ 6,570	$ 164,250
Common Stock, Capital Shares Reserved for Future Issuance			4,214,582		4,214,582
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
Stock Issued During Period, Value, New Issues	$ 3,400,000

REGISTERED DIRECT OFFERING 2036

REGISTERED DIRECT OFFERING 2017 (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
Balance	$ 3,430,033	$ 0
Issuances	0	2,996,110
Adjustments to estimated fair value	(2,430,033)	433,923
Balance	$ 1,000,000	$ 3,430,033

REGISTERED DIRECT OFFERING 2037

REGISTERED DIRECT OFFERING 2017 (Details 1) - $ / shares	6 Months Ended	12 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
Closing price per share of common stock	$ 0.001	$ 0.001
Derivative Financial Instruments, Liabilities [Member]
Closing price per share of common stock	0.32	0.6
Exercise price per share	$ 0.75	$ 0.75
Expected volatility	97.42%	109.77%
Risk-free interest rate	2.48%	1.89%
Dividend yield	0.00%	0.00%
Remaining expected term of underlying securities (years)	3 years 10 months 20 days	4 years 4 months 20 days

REGISTERED DIRECT OFFERING 2038

REGISTERED DIRECT OFFERING 2017 (Details Textual) - USD ($)	Mar. 03, 2017	Feb. 24, 2017	Feb. 20, 2017	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 28, 2016	Sep. 30, 2013
Repayments of Notes Payable						$ 0	$ 1,000,000
Derivative Liability		$ 2,996,110
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease)				$ 458,484	$ 361,506	$ 2,430,033	$ 361,506
Common Stock [Member]
Stock Issued During Period, Shares, New Issues		10,166,664
Massachusetts Life Sciences Center [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights											$ 0.27
Qualified Financing, Minimum Net Proceeds										$ 5,000,000
Repayments of Notes Payable	$ 830,000
Series F Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights				5,591,664		5,591,664
REGISTERED DIRECT OFFERING 2017 [Member]
Shelf Registration Statement, Maximum Amount Authorized									$ 50,000,000
Stock Issued During Period, Shares, New Issues			10,166,664
Shares Issued, Price Per Share			$ 0.60
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 0.75
Stock Issued During Period, Value, New Issues		$ 6,100,000
Number Of Warrants Per Unit			0.55
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
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease)								$ 433,923
Payments of Stock Issuance Costs		112,000
REGISTERED DIRECT OFFERING 2017 [Member] | Series F Warrant [Member]
Stock Issued During Period, Value, New Issues		$ 5,987,122