Edesa Biotech (EDSA) 10-Q 7 May 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2018	May 07, 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	Stellar Biotechnologies, Inc.
Entity Central Index Key	1,540,159
Current Fiscal Year End Date	--09-30
Entity Filer Category	Non-accelerated Filer
Trading Symbol	SBOT
Entity Common Stock, Shares Outstanding		1,502,870

Condensed Interim Consolidated

Condensed Interim Consolidated Balance Sheets - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 3,293,010	$ 4,570,951
Accounts receivable	62,798	1,287
Short-term investments	499,623	1,994,401
Inventory	205,364	68,114
Prepaid and other assets	209,980	123,694
Total current assets	4,270,775	6,758,447
Noncurrent assets:
Equity investment in joint venture	66,695	66,695
Property, plant and equipment, net	976,936	879,523
Deposits	15,340	15,340
Total noncurrent assets	1,058,971	961,558
Total Assets	5,329,746	7,720,005
Current liabilities:
Accounts payable and accrued liabilities	589,793	320,947
Total Current Liabilities	589,793	320,947
Commitments (Note 7)
Shareholders' equity:
Common shares, unlimited common shares authorized, no par value, 1,502,870 issued and outstanding at March 31, 2018 and September 30, 2017	48,351,701	48,351,701
Accumulated share-based compensation	4,533,568	4,439,400
Accumulated deficit	(48,145,316)	(45,392,043)
Total Shareholders' Equity	4,739,953	7,399,058
Total Liabilities and Shareholders' Equity	$ 5,329,746	$ 7,720,005

Condensed Interim Consolidated3

Condensed Interim Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Sep. 30, 2017
Common shares, par value	$ 0	$ 0
Common shares, shares issued	1,502,870	1,502,870
Common shares, shares outstanding	1,502,870	1,502,870

Condensed Interim Consolidated4

Condensed Interim Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Product sales	$ 64,052	$ 13,019	$ 84,539	$ 154,875
Contract services revenue	0	50,000	0	50,000
Revenues	64,052	63,019	84,539	204,875
Expenses:
Cost of sales and contract services	65,623	71,443	68,424	150,008
Costs of aquaculture	74,424	63,402	172,474	148,237
Research and development	493,873	329,371	1,124,907	790,236
General and administrative	773,989	746,360	1,452,470	1,678,427
Total Expenses	1,407,909	1,210,576	2,818,275	2,766,908
Loss from Operations	(1,343,857)	(1,147,557)	(2,733,736)	(2,562,033)
Other Income (Loss)
Foreign exchange loss	(16,218)	35,227	(34,147)	(42,163)
Investment income	7,548	8,653	15,410	15,647
Other Income (Loss), Total	(8,670)	43,880	(18,737)	(26,516)
Loss Before Income Tax	(1,352,527)	(1,103,677)	(2,752,473)	(2,588,549)
Income tax expense	0	0	800	800
Net Loss	$ (1,352,527)	$ (1,103,677)	$ (2,753,273)	$ (2,589,349)
Loss per common share:
Basic and diluted	$ (0.9)	$ (0.76)	$ (1.83)	$ (1.79)
Weighted average number of common shares outstanding:
Basic and diluted	1,502,870	1,448,036	1,502,870	1,448,036

Condensed Interim Consolidated5

Condensed Interim Consolidated Statements of Cash Flows - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Cash Flows Used In Operating Activities:
Net loss	$ (1,352,527)	$ (1,103,677)	$ (2,753,273)	$ (2,589,349)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			95,894	90,720
Share-based compensation			94,168	64,794
Foreign exchange loss	16,218	(35,227)	34,147	42,163
Transfer of equipment to research and development expense			12,419	0
Changes in working capital items:
Accounts receivable			(61,549)	19,899
Inventory			(137,250)	(61,144)
Prepaid and other assets			(86,269)	(18,053)
Accounts payable and accrued liabilities			268,845	(190,227)
Net cash used in operating activities			(2,532,868)	(2,641,197)
Cash Flows From Investing Activities:
Acquisition of property, plant and equipment			(205,891)	(126,876)
Purchase of short-term investments			(505,222)	(2,005,570)
Proceeds on sales and maturities of short-term investments			2,000,000	2,000,000
Net cash provided by (used in) investing activities			1,288,887	(132,446)
Cash Flows From Financing Activities:
Effect of exchange rate changes on cash and cash equivalents			(33,960)	(42,039)
Net change in cash and cash equivalents			(1,277,941)	(2,815,682)
Cash and cash equivalents - beginning of period			4,570,951	7,416,904
Cash and cash equivalents - end of period	3,293,010	4,601,222	3,293,010	4,601,222
Cash (demand deposits)	2,788,805	850,224	2,788,805	850,224
Cash equivalents	504,205	3,750,998	504,205	3,750,998
Cash and cash equivalents	$ 3,293,010	$ 4,601,222	3,293,010	7,416,904
Supplemental cash flow information:
Cash paid during the period for taxes			$ 800	$ 800

Nature of Operations

Nature of Operations	6 Months Ended
	Mar. 31, 2018
Nature of Operations [Abstract]
Nature of Operations [Text Block]	Nature of Operations Stellar Biotechnologies, Inc. (the Company) is organized under the laws of British Columbia, Canada. The Company’s business is the aquaculture, research and development, manufacture and commercialization of Keyhole Limpet Hemocyanin (KLH). The Company markets and distributes its KLH products to biotechnology and pharmaceutical companies, academic institutions, and clinical research organizations primarily in Europe, Asia, and the United States. The Company’s common shares have been listed for trading on The Nasdaq Capital Market in the United States under the symbol “SBOT” since November 5, 2015. In April 2010, the Company changed its name from CAG Capital, Inc. to Stellar Biotechnologies, Inc. and completed a reverse merger transaction with Stellar Biotechnologies, Inc., a California corporation, which was founded in September 1999, and remains the Company’s wholly-owned subsidiary and principal operating entity. In January 2017, the California subsidiary and the Company established a wholly-owned Mexican subsidiary under the name BioEstelar, S.A. de C.V. in Ensenada, Baja California to perform aquaculture research and development activities in Mexico. The Company’s executive offices are located at 332 E. Scott Street, Port Hueneme, California, 93041, USA, and its registered and records office is 1500 Royal Centre, 1055 West Georgia Street, Vancouver, BC, V6E 4N7, Canada. Management Plans and Going Concern Company operations have historically been funded by the issuance of common shares, exercise of warrants, grant revenues, contract services revenue and product sales. For the six months ended March 31, 2018 and 2017, the Company reported net losses of approximately $ 2.8 2.6 48.1 3.7

Basis of Presentation

Basis of Presentation	6 Months Ended
	Mar. 31, 2018
Basis of Presentation [Abstract]
Basis of Accounting [Text Block]	2. Basis of Presentation The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. These condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2017. The accompanying condensed interim consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, Stellar Biotechnologies, Inc., a California corporation in the U.S. and BioEstelar, S.A. de C.V. a Baja California corporation in Mexico. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the period presented have been included in the interim period. Operating results for the six months ended March 31, 2018 are not necessarily indicative of the results that may be expected for other interim periods or the fiscal year ending September 30, 2018. The condensed interim consolidated financial data at September 30, 2017 is derived from audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2017, as filed on December 1, 2017 with the SEC. The preparation of financial statements in conformity with U.S. GAAP for interim financial information requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. Functional Currency The condensed interim consolidated financial statements of the Company are presented in U.S. dollars, unless otherwise stated, which is the Company’s functional currency.

Investments

Investments	6 Months Ended
	Mar. 31, 2018
Investments [Abstract]
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	3. Investments Short-term investments consisted of U.S. Treasury Bills at March 31, 2018 and September 30, 2017. U.S. Treasury Bills are carried at amortized cost which approximates fair value and are classified as held-to-maturity investments.

Inventory

Inventory	6 Months Ended
	Mar. 31, 2018
Inventory [Abstract]
Inventory Disclosure [Text Block]	4 . Inventory Raw materials include inventory of manufacturing supplies. Work in process includes manufacturing supplies, direct and indirect labor, contracted manufacturing and testing, and allocated manufacturing overhead for inventory in process at the end of the period. Finished goods include products that are complete and available for sale. At March 31, 2018 and September 30, 2017, the Company recorded work in process and finished goods inventory only for those products with recent sales levels to evaluate net realizable value. March 31, September 30, 2018 2017 Raw materials $ 35,514 $ 21,761 Work in process 69,100 - Finished goods 100,750 46,353 $ 205,364 $ 68,114

Property, Plant and Equipment,

Property, Plant and Equipment, net	6 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment, net [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	5. Property, Plant and Equipment, net March 31, September 30, 2018 2017 Aquaculture system $ 126,257 $ 126,257 Laboratory facilities 62,033 62,033 Computer and office equipment 119,199 117,840 Manufacturing and laboratory equipment 1,039,643 982,439 Vehicles 77,994 77,994 Leasehold improvements 342,935 337,060 1,768,061 1,703,623 Less: accumulated depreciation (1,054,907) (969,418) Depreciable assets, net 713,154 734,205 Construction in progress 263,782 145,318 $ 976,936 $ 879,523 Depreciation and amortization expense amounted to approximately $ 96,000 91,000

Commitments

Commitments	6 Months Ended
	Mar. 31, 2018
Commitments [Abstract]
Commitments and Contingencies Disclosure [Text Block]	6. Commitments Operating leases The Company leases buildings and facilities used in its operations under two sublease agreements. In June 2015, the Company exercised its option to extend these sublease agreements for an additional five-year term beginning in October and November 2015. The Company negotiated an option to extend the leases for two additional five-year terms. The Company leases facilities used for executive offices and laboratories and pays a portion of the common area maintenance. In July 2016, the Company extended this lease for a two-year term, with options to renew for three successive two-year terms. The Company leases undeveloped land in Baja California, Mexico to assess the potential development of an additional aquaculture locale and expansion of production. The lease term was three years from June 2015 with options to extend the lease for 30 years. In February 2018, the lease term was extended for two years without further rent payments. Six Months Ending September 30, 2018 71,000 Year Ending September 30, 2019 106,000 Year Ending September 30, 2020 106,000 Year Ending September 30, 2021 6,000 $ 289,000 Rent expense on these lease agreements amounted to approximately $ 120,000 119,000 Purchase obligations The Company has commitments totaling approximately $ 153,000 Supply agreements The Company has commitments under supply agreements with customers for fixed prices per gram of KLH in connection with clinical trials on a non-exclusive basis except within that customer’s field of use. The expiration dates of these supply agreements range from October 2019 to February 2022, and are generally renewable upon written request of the customer. Joint venture agreement In May 2016, the Company entered into a joint venture agreement with another party for the formation of a joint venture company to manufacture and sell conjugated therapeutic vaccines. The joint venture is organized as a French simplified corporation. The Company holds a 30 120,000 67,000 In connection with the formation of the joint venture and the execution of its strategy, the parties intend over time to enter into an exclusive supply agreement within a limited field of use for Stellar to supply KLH to the joint venture, a supply agreement designating the joint venture as the exclusive manufacturer and supplier of the other party’s vaccines, and services agreements for the provision of various knowledge and expertise by each of the parties. Licensing agreement and technology transfer agreement In July 2013, the Company acquired the exclusive, worldwide license to certain patented technology for the development of human immunotherapies against Clostridium difficile As a result of the termination of the License Agreement, there are no early termination penalties and no further annual licensing fees, contingent milestone payments, royalties, sub-licensing fees or other financial obligations payable by the Company to the Licensor. Retirement savings plan 401(k) contributions The Company sponsors a 401(k) retirement savings plan that requires an annual non-elective safe harbor employer contribution of 3 100 38,000 32,000 Related party commitments On August 14, 2002, through its California subsidiary, the Company entered into a patent royalty agreement with a director and officer of the Company, whereby he would receive royalty payments in exchange for assignment of his patent rights to the Company. The royalty is 5 500,000

Share Capital

Share Capital	6 Months Ended
	Mar. 31, 2018
Share Capital [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	7. Share Capital On May 4, 2018, the Company effected a share consolidation (reverse split) of the Company's common shares at a ratio of 1-for-7 10,520,096 1,502,870 Black-Scholes option valuation model The Company uses the Black-Scholes option valuation model to determine the fair value of warrants and share options. Option valuation models require the input of highly subjective assumptions including the expected price volatility. The Company has used historical volatility to estimate the volatility of the share price. Changes in the subjective input assumptions can materially affect the fair value estimates, and therefore the existing models do not necessarily provide a reliable single measure of the fair value of the Company’s warrants and share options. Warrants There were 180,805 31.50 January 6, 2022 The weighted average contractual life remaining on the outstanding warrants at March 31, 2018 is 45 Share Options The Company has an incentive compensation plan adopted in 2017 (the Incentive Plan) administered by the Board of Directors, which amended and restated the 2013 fixed share option plan. Options, restricted shares and restricted share units are eligible for grants under the Incentive Plan. The number of shares available for issuance under the Incentive Plan is 228,143 The exercise price of an option is set at the closing price of the Company’s common shares on the date of grant. Share options granted to directors, officers, employees and certain individual consultants for past service are subject to the following vesting schedule: (a) one-third shall vest immediately, (b) one-third shall vest at 12 months from the date of grant and (c) one-third shall vest at 18 months from the date of grant. Share options granted to directors, officers, employees and certain individual consultants for future service are subject to the following vesting schedule: (x) one-third shall vest at 12 months from the date of grant, (y) one-third shall vest at 24 months from the date of grant and (z) one-third shall vest at 36 months from the date of grant. Share options granted to certain individual investor relations consultants are subject to the following vesting schedule: (aa) 25% shall vest at 3 months from the date of grant, (bb) 25% shall vest at 6 months from the date of grant, (cc) 25% shall vest at 12 months from the date of grant and (dd) 25% shall vest at 15 months from the date of grant. Number of Weighted Balance - September 30, 2016 77,015 $ 37.03 Granted 10,229 13.23 Expired (4,033) 77.98 Expired (24,500) 20.30 CDN $ Balance - September 30, 2017 58,711 $ 40.18 Granted 29,426 5.88 Expired (1,671) 112.56 Expired (5,679) 36.19 CDN $ Balance - March 31, 2018 80,787 $ 26.46 The weighted average contractual life remaining on the outstanding options is 50 Number of Exercisable at Range of exercise prices Expiry Dates 13,479 13,479 CDN$15.00 - 35.00 Apr 2019-Dec 2019 40,641 15,859 $5.00 - 20.00 Sep 2023-Mar 2025 17,265 17,265 CDN$40.00 - 70.00 Aug 2018-Jun 2022 2,114 2,114 $50.00 - 60.00 Dec 2022 3,073 3,073 CDN$105.00 - 140.00 Nov 2018-Nov 2021 4,215 4,215 $120.00 - 130.00 Nov 2020 80,787 56,005 Six Months Ended March 31, March 31, 2018 2017 Risk free interest rate 2.13 % 1.44 % Expected life (years) 7.00 7.00 Expected share price volatility 155 % 166 % Expected dividend yield 0 % 0 % The weighted average fair value of share options granted during the six months ended March 31, 2018 and 2017 was $ 5.67 12.88 As of March 31, 2018, the Company had approximately $ 137,000 34 There were no options exercised during the six months ended March 31, 2018 and 2017. There was no intrinsic value of the vested options at March 31, 2018.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	8. Fair Value of Financial Instruments The Company uses the fair value measurement framework for valuing financial assets and liabilities measured on a recurring basis in situations where other accounting pronouncements either permit or require fair value measurements. Fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying value of certain financial instruments such as accounts receivable, accounts payable, accrued liabilities, and deferred revenue approximates fair value due to the short-term nature of such instruments. Short-term investments in U.S. Treasury Bills are recorded at amortized cost, which approximates fair value. The Company follows the fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical or similar assets and liabilities. Level 2: Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets and liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company reports its short-term investments in U.S. Treasury Bills at fair value using Level 1 inputs in the fair value hierarchy. Fair Value Measurements Using Quoted Prices in Significant Significant Total Fair Value March 31, 2018 Assets Short-term investments in U.S. Treasury Bills $ 499,623 $ - $ - $ 499,623 September 30, 2017 Assets Short-term investments in U.S. Treasury Bills $ 1,994,401 $ - $ - $ 1,994,401

Concentrations of Credit Risk

Concentrations of Credit Risk	6 Months Ended
	Mar. 31, 2018
Concentrations of Credit Risk [Abstract]
Concentration Risk Disclosure [Text Block]	9. Concentrations of Credit Risk Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents, U.S Treasury Bills, and accounts receivable. The Company estimates its maximum credit risk at the amount recorded on the balance sheet. Management’s assessment of the Company’s credit risk for cash and cash equivalents is low as they are held in major financial institutions believed to be credit worthy or U.S. Treasury Bills with maturities of 90 days or less. The Company limits its exposure to credit loss for short-term investments by holding U.S. Treasury Bills with maturities of 1 year or less. Based on credit monitoring and history, the Company considers the risk of credit losses due to customer non-performance on accounts receivable to be low. Six Months Ended March 31, March 31, 2018 2017 Product sales and contract services revenue 72% from 88% from 2 customers 2 customers The Company had the following concentrations of revenues by geographic areas: Six Months Ended March 31, March 31, 2018 2017 North America 81 % 29 % Europe 19 % 71 % The Company had the following concentrations of accounts receivable from its customers, each of which accounted for more than 10% in the applicable period: March 31, 2018 Accounts receivable 67% from 2 customers There were no customer accounts receivable at September 30, 2017.

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Mar. 31, 2018
Inventory [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventory consisted of the following: March 31, September 30, 2018 2017 Raw materials $ 35,514 $ 21,761 Work in process 69,100 - Finished goods 100,750 46,353 $ 205,364 $ 68,114

Property, Plant and Equipment16

Property, Plant and Equipment, net (Tables)	6 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment, net [Abstract]
Property, Plant and Equipment [Table Text Block]	Property, plant and equipment, net consisted of the following: March 31, September 30, 2018 2017 Aquaculture system $ 126,257 $ 126,257 Laboratory facilities 62,033 62,033 Computer and office equipment 119,199 117,840 Manufacturing and laboratory equipment 1,039,643 982,439 Vehicles 77,994 77,994 Leasehold improvements 342,935 337,060 1,768,061 1,703,623 Less: accumulated depreciation (1,054,907) (969,418) Depreciable assets, net 713,154 734,205 Construction in progress 263,782 145,318 $ 976,936 $ 879,523

Commitments (Tables)

Commitments (Tables)	6 Months Ended
	Mar. 31, 2018
Commitments [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Aggregate future minimum lease payments at March 31, 2018 are as follows: Six Months Ending September 30, 2018 71,000 Year Ending September 30, 2019 106,000 Year Ending September 30, 2020 106,000 Year Ending September 30, 2021 6,000 $ 289,000

Share Capital (Tables)

Share Capital (Tables)	6 Months Ended
	Mar. 31, 2018
Class of Warrant or Right [Line Items]
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Options have been granted under the Incentive Plan allowing the holders to purchase common shares of the Company as follows: Number of Weighted Balance - September 30, 2016 77,015 $ 37.03 Granted 10,229 13.23 Expired (4,033) 77.98 Expired (24,500) 20.30 CDN $ Balance - September 30, 2017 58,711 $ 40.18 Granted 29,426 5.88 Expired (1,671) 112.56 Expired (5,679) 36.19 CDN $ Balance - March 31, 2018 80,787 $ 26.46
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding [Table Text Block]	The following table summarizes information about the options under the Incentive Plan outstanding and exercisable at March 31, 2018: Number of Exercisable at Range of exercise prices Expiry Dates 13,479 13,479 CDN$15.00 - 35.00 Apr 2019-Dec 2019 40,641 15,859 $5.00 - 20.00 Sep 2023-Mar 2025 17,265 17,265 CDN$40.00 - 70.00 Aug 2018-Jun 2022 2,114 2,114 $50.00 - 60.00 Dec 2022 3,073 3,073 CDN$105.00 - 140.00 Nov 2018-Nov 2021 4,215 4,215 $120.00 - 130.00 Nov 2020 80,787 56,005
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	The estimated fair value of the share options granted during the six months ended March 31, 2018 and 2017 was determined using a Black-Scholes option valuation model with the following weighted average assumptions: Six Months Ended March 31, March 31, 2018 2017 Risk free interest rate 2.13 % 1.44 % Expected life (years) 7.00 7.00 Expected share price volatility 155 % 166 % Expected dividend yield 0 % 0 %

Fair Value of Financial Instr19

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	The following table summarizes fair values for those assets and liabilities with fair value measured on a recurring basis. Fair Value Measurements Using Quoted Prices in Significant Significant Total Fair Value March 31, 2018 Assets Short-term investments in U.S. Treasury Bills $ 499,623 $ - $ - $ 499,623 September 30, 2017 Assets Short-term investments in U.S. Treasury Bills $ 1,994,401 $ - $ - $ 1,994,401

Concentrations of Credit Risk (

Concentrations of Credit Risk (Tables)	6 Months Ended
	Mar. 31, 2018
Concentrations of Credit Risk [Abstract]
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	The Company had the following concentrations of revenues by customers, each of which accounted for more than 10% of revenues in the applicable period: Six Months Ended March 31, March 31, 2018 2017 Product sales and contract services revenue 72% from 88% from 2 customers 2 customers The Company had the following concentrations of revenues by geographic areas: Six Months Ended March 31, March 31, 2018 2017 North America 81 % 29 % Europe 19 % 71 % The Company had the following concentrations of accounts receivable from its customers, each of which accounted for more than 10% in the applicable period: March 31, 2018 Accounts receivable 67% from 2 customers

Nature of Operations (Details T

Nature of Operations (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017
Nature of Operations [Line Items]
Net Income (Loss)	$ (1,352,527)	$ (1,103,677)	$ (2,753,273)	$ (2,589,349)
Accumulated deficit	(48,145,316)		(48,145,316)		$ (45,392,043)
Working capital	$ 3,700,000		$ 3,700,000

Inventory (Details)

Inventory (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Raw materials	$ 35,514	$ 21,761
Work in process	69,100	0
Finished goods	100,750	46,353
Inventory	$ 205,364	$ 68,114

Property, Plant and Equipment23

Property, Plant and Equipment, net (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Property, Plant and Equipment [Line Items]
Depreciable assets, gross	$ 1,768,061	$ 1,703,623
Less: accumulated depreciation	(1,054,907)	(969,418)
Depreciable assets, net	713,154	734,205
Construction in progress	263,782	145,318
Property, plant and equipment, net	976,936	879,523
Aquaculture system
Property, Plant and Equipment [Line Items]
Depreciable assets, gross	126,257	126,257
Laboratory facilities
Property, Plant and Equipment [Line Items]
Depreciable assets, gross	62,033	62,033
Computer and office equipment
Property, Plant and Equipment [Line Items]
Depreciable assets, gross	119,199	117,840
Manufacturing and laboratory equipment
Property, Plant and Equipment [Line Items]
Depreciable assets, gross	1,039,643	982,439
Vehicles
Property, Plant and Equipment [Line Items]
Depreciable assets, gross	77,994	77,994
Leasehold improvements
Property, Plant and Equipment [Line Items]
Depreciable assets, gross	$ 342,935	$ 337,060

Property, Plant and Equipment24

Property, Plant and Equipment, net (Details Textual) - USD ($)	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 96,000	$ 91,000

Commitments (Details)

Commitments (Details)	Mar. 31, 2018USD ($)
Future minimum lease payments for the
Six Months Ending September 30, 2018	$ 71,000
Year Ending September 30, 2019	106,000
Year Ending September 30, 2020	106,000
Year Ending September 30, 2021	6,000
Future minimum lease payments, Total	$ 289,000

Commitments (Details Textual)

Commitments (Details Textual)	6 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2016EUR (€)	Aug. 14, 2002USD ($)
Other Commitments [Line Items]
Rent expense on lease agreements	$ 120,000	$ 119,000
Equity Method Investments	66,695		$ 66,695
Joint venture agreement [Member]
Other Commitments [Line Items]
Equity Method Investments Committed Capital | €					€ 120,000
Equity Method Investment, Ownership Percentage				30.00%	30.00%
Equity Method Investments				$ 67,000
Director and Officer [Member] | Royalty Agreements [Member]
Other Commitments [Line Items]
Royalty percentage of gross receipts over base amount						5.00%
Gross receipt base amount for royalty calculation						$ 500,000
Royalty expense	0	0
401(k) Retirement Savings Plan [Member]
Other Commitments [Line Items]
Employer contributions	$ 38,000	$ 32,000
Employee vesting percentage	100.00%
Annual non-elective safe harbor employer contribution	3.00%
Agreements With Contract Manufacturing Organizations And Consultants [Member]
Other Commitments [Line Items]
Purchase obligations	$ 153,000
Three buildings and facilities used in its operations [Member]
Other Commitments [Line Items]
Lease agreement, contract term	5 years
Lease agreement, renewal term	5 years
Facilities used for executive offices and laboratories [Member]
Other Commitments [Line Items]
Lease agreement, renewal term	2 years
Undeveloped land in Baja, Mexico
Other Commitments [Line Items]
Lease agreement, renewal term	3 years

Share Capital (Details)

Share Capital (Details)	6 Months Ended		12 Months Ended
	Mar. 31, 2018$ / sharesshares	Mar. 31, 2018$ / sharesshares	Sep. 30, 2017$ / sharesshares	Sep. 30, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options, Beginning Balance | shares	58,711	58,711	77,015	77,015
Number of Options, Granted | shares	29,426	29,426	10,229	10,229
Number of Options, Expired | shares	(1,671)	(1,671)	(4,033)	(4,033)
Number of Options, Expired | shares	(5,679)	(5,679)	(24,500)	(24,500)
Number of Options, Ending Balance | shares	80,787	80,787	58,711	58,711
Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 40.18		$ 37.03
Weighted Average Exercise Price, Granted | $ / shares	5.88		13.23
Weighted Average Exercise Price, Expired | $ / shares	112.56		77.98
Weighted Average Exercise Price, Expired | $ / shares		$ 36.19		$ 20.3
Weighted Average Exercise Price, Ending Balance | $ / shares	$ 26.46		$ 40.18

Share Capital (Details 1)

Share Capital (Details 1)	6 Months Ended
	Mar. 31, 2018$ / sharesshares	Mar. 31, 2018$ / sharesshares	Sep. 30, 2017shares	Sep. 30, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options	80,787	80,787	58,711	77,015
Exercisable at March 31, 2018	56,005	56,005
Stock Option One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options	13,479	13,479
Exercisable at March 31, 2018	13,479	13,479
Range of exercise prices, Lower Range Limit | $ / shares		$ 15
Range of exercise prices, Upper Range Limit | $ / shares		$ 35
Expiry Dates, Start	2019-04	2019-04
Expiry Dates, End	2019-12	2019-12
Stock Option Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options	40,641	40,641
Exercisable at March 31, 2018	15,859	15,859
Range of exercise prices, Lower Range Limit | $ / shares	$ 5
Range of exercise prices, Upper Range Limit | $ / shares	$ 20
Expiry Dates, Start	2023-09	2023-09
Expiry Dates, End	2025-03	2025-03
Stock Option Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options	17,265	17,265
Exercisable at March 31, 2018	17,265	17,265
Range of exercise prices, Lower Range Limit | $ / shares		$ 40
Range of exercise prices, Upper Range Limit | $ / shares		$ 70
Expiry Dates, Start	2018-08	2018-08
Expiry Dates, End	2022-06	2022-06
Stock Option Four [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options	2,114	2,114
Exercisable at March 31, 2018	2,114	2,114
Range of exercise prices, Lower Range Limit | $ / shares	$ 50
Range of exercise prices, Upper Range Limit | $ / shares	$ 60
Expiry Date	Dec. 31, 2022	Dec. 31, 2022
Stock Option Five [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options	3,073	3,073
Exercisable at March 31, 2018	3,073	3,073
Range of exercise prices, Lower Range Limit | $ / shares		$ 105
Range of exercise prices, Upper Range Limit | $ / shares		$ 140
Expiry Dates, Start	2018-11	2018-11
Expiry Dates, End	2021-11	2021-11
Stock Option Six [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options	4,215	4,215
Exercisable at March 31, 2018	4,215	4,215
Range of exercise prices, Lower Range Limit | $ / shares	$ 120
Range of exercise prices, Upper Range Limit | $ / shares	$ 130
Expiry Date	Nov. 30, 2020	Nov. 30, 2020

Share Capital (Details 2)

Share Capital (Details 2) - Employee Stock Option [Member]	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate	2.13%	1.44%
Expected life (years)	7 years	7 years
Expected share price volatility	155.00%	166.00%
Expected dividend yield	0.00%	0.00%

Share Capital (Details Textual)

Share Capital (Details Textual) - USD ($)	May 04, 2018	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017
Share Capital [Line Items]
Number of Warrants		180,805
Warrants, exercise price		$ 31.50
Warrants, expiry date		Jan. 6, 2022
Weighted average contractual life remaining on the outstanding warrants		50 months
Weighted average contractual life remaining on the outstanding options		45 months
Weighted average fair value of share options awarded		$ 5.67	$ 12.88
Unrecognized share-based compensation expense		$ 137,000
Unrecognized share-based compensation expense, recognition period		34 months
Common Stock, Shares, Outstanding		1,502,870		1,502,870
Share Capital [Member]
Share Capital [Line Items]
Common Stock, Shares, Outstanding		1,502,870		10,520,096
Subsequent Event [Member]
Share Capital [Line Items]
Stockholders' Equity, Reverse Stock Split	1-for-7
Employee Share Option [Member]
Share Capital [Line Items]
Share based compensation, shares reserved for issuance		228,143
Employee Stock Option One [Member]
Share Capital [Line Items]
Share based compensation, share option vesting schedule		Share options granted to directors, officers, employees and certain individual consultants for future service are subject to the following vesting schedule: (x) one-third shall vest at 12 months from the date of grant, (y) one-third shall vest at 24 months from the date of grant and (z) one-third shall vest at 36 months from the date of grant.

Fair Value of Financial Instr31

Fair Value of Financial Instruments (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments in U.S. Treasury Bills	$ 499,623	$ 1,994,401
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments in U.S. Treasury Bills	499,623	1,994,401
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments in U.S. Treasury Bills	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments in U.S. Treasury Bills	$ 0	$ 0

Concentrations of Credit Risk32

Concentrations of Credit Risk (Details)	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Customer Concentration Risk [Member] | Product sales and contract services revenue [Member] | Two Customers [Member]
Concentration Risk [Line Items]
Concentration risk percentage	72.00%	88.00%
Customer Concentration Risk [Member] | Accounts receivable [Member] | Two Customers [Member]
Concentration Risk [Line Items]
Concentration risk percentage	67.00%
Geographic Concentration Risk [Member] | Revenue [Member] | Europe [Member]
Concentration Risk [Line Items]
Concentration risk percentage	19.00%	71.00%
Geographic Concentration Risk [Member] | Revenue [Member] | North America [Member]
Concentration Risk [Line Items]
Concentration risk percentage	81.00%	29.00%