Outlook Therapeutics (OTLK) 10-Q 15 May 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2018	May 14, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	Oncobiologics, Inc.
Entity Central Index Key	1,649,989
Trading Symbol	ons
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		32,332,568
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Current assets:
Cash	$ 5,936,115	$ 3,185,519
Prepaid and other current assets	981,590	719,087
Total current assets	6,917,705	3,904,606
Property and equipment, net	20,176,847	16,088,902
Other assets	692,104	740,362
Total assets	27,786,656	20,733,870
Current liabilities:
Senior secured notes	12,507,368
Current portion of long-term debt	102,907	52,600
Current portion of capital lease obligations	855,233	341,120
Stockholder notes	4,612,500	4,612,500
Accounts payable	3,607,776	10,954,358
Accrued expenses	5,038,283	7,337,469
Income taxes payable	2,352,129	2,352,129
Deferred revenue	2,676,103	3,087,561
Total current liabilities	31,752,299	28,737,737
Senior secured notes		13,231,700
Long-term debt	127,787	151,110
Capital lease obligations	3,510,811	28,067
Warrant liability	1,984,179	2,274,954
Deferred revenue	3,334,543	4,466,865
Other liabilities	2,347,344	2,569,971
Total liabilities	43,056,963	51,460,404
Commitments (Note 8)
Series A convertible preferred stock, par value $0.01 per share: 1,000,000 shares authorized, 261,045 and 32,628 shares issued and outstanding at March 31, 2018 and September 30, 2017, respectively	18,294,782	2,924,441
Stockholders' equity (deficit):
Preferred stock, value
Common stock, par value $0.01 per share; 200,000,000 shares authorized; 25,740,458 and 24,933,944 shares issued and outstanding at March 31, 2018 and September 30, 2017, respectively	257,405	249,339
Additional paid-in capital	159,191,316	152,315,088
Accumulated deficit	(195,675,782)	(186,215,402)
Total stockholders' equity (deficit)	(33,565,089)	(33,650,975)
Total liabilities, convertible preferred stock and stockholders' equity (deficit)	27,786,656	$ 20,733,870
Series B Convertible Preferred Stock
Stockholders' equity (deficit):
Preferred stock, value	2,661,972
Total stockholders' equity (deficit)	$ 2,661,972

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Series A convertible preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Series A convertible preferred stock, shares authorized	1,000,000	1,000,000
Series A convertible preferred stock, shares issued	261,045	32,628
Series A convertible preferred stock outstanding	261,045	32,628
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	7,500,000	7,500,000
Preferred stock, shares issued	0	0
Preferred stock shares outstanding	0	0
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	25,740,458	24,933,944
Common stock, shares outstanding	25,740,458	24,933,944
Series B Convertible Preferred Stock
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,500,000	1,500,000
Preferred stock, shares issued	1,500,000	0
Preferred stock shares outstanding	1,500,000	0

Consolidated Statements of Oper

Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Collaboration revenues	$ 771,890	$ 303,140	$ 1,543,780	$ 606,281
Operating expenses:
Research and development	5,156,386	4,116,856	5,558,788	17,347,243
General and administrative	2,446,505	4,024,276	5,995,757	8,892,271
Total Operating expenses	7,602,891	8,141,132	11,554,545	26,239,514
Loss from operations	(6,831,001)	(7,837,992)	(10,010,765)	(25,633,233)
Interest expense, net	920,870	1,243,892	1,638,753	1,733,037
Loss on extinguishment of debt			1,252,353
Change in fair value of warrant liability	(211,992)	(1,035,902)	(290,775)	(225,819)
Loss before income taxes	(7,539,879)	(8,045,982)	(12,611,096)	(27,140,451)
Income tax (benefit) expense			(3,150,716)	4,000
Net loss	(7,539,879)	(8,045,982)	(9,460,380)	(27,144,451)
Recognition of beneficial conversion feature upon issuance of Series A convertible preferred stock	(381,664)		(15,736,683)
Series A convertible preferred stock dividends and related settlement	(636,695)		(1,087,496)
Net loss attributable to common stockholders	$ (8,558,238)	$ (8,045,982)	$ (26,284,559)	$ (27,144,451)
Per share information:
Net loss per share of common stock, basic (in dollars per share)	$ (0.33)	$ (0.34)	$ (1.04)	$ (1.16)
Net loss per share of common stock, diluted (in dollars per shares)	$ (0.34)	$ (0.38)	$ (1.05)	$ (1.16)
Weighted average shares outstanding, basic (in shares)	25,733,467	23,723,551	25,364,247	23,457,361
Weighted average shares outstanding, diluted (in shares)	25,733,467	23,801,223	25,364,247	23,496,197

Consolidated Statements of Conv

Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (unaudited) - 6 months ended Mar. 31, 2018 - USD ($)	Convertible Preferred Stock Series A	Series B Convertible Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at Sep. 30, 2017	$ 2,924,441		$ 249,339	$ 152,315,088	$ (186,215,402)	$ (33,650,975)
Balance (in shares) at Sep. 30, 2017	32,628		24,933,944
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of vested restricted stock units			$ 8,066	(8,066)
Issuance of vested restricted stock units (in shares)			806,514
Sale of Series A convertible preferred stock and common stock warrants, net of costs	$ 14,265,861			6,382,181		6,382,181
Sale of Series A convertible preferred stock and common stock warrants, net of costs (in shares)	217,372
Series A convertible preferred stock dividends and settlement			$ 1,104,480	(1,087,496)		(1,087,496)
Series A convertible preferred stock dividends and settlement (in shares)	11,045
Conversion of senior secured notes into Series B convertible preferred stock		$ 2,661,972				2,661,972
Conversion of senior secured notes into Series B convertible preferred stock (in shares)		1,500,000
Stock-based compensation expense				1,589,609		1,589,609
Net loss					(9,460,380)	(9,460,380)
Balance at Mar. 31, 2018	$ 18,294,782	$ 2,661,972	$ 257,405	$ 159,191,316	$ (195,675,782)	$ (33,565,089)
Balance (in shares) at Mar. 31, 2018	261,045	1,500,000	25,740,458

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($)	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
OPERATING ACTIVITIES
Net loss	$ (9,460,380)	$ (27,144,451)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,407,888	1,349,930
Loss on extinguishment of debt	1,252,353
Non-cash interest expense	970,287	977,693
Stock-based compensation	1,589,609	4,791,443
Change in fair value of warrant liability	(290,775)	(225,819)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(262,503)	2,552,975
Other assets	(56,401)	33,550
Accounts payable	(6,909,512)	6,973,453
Accrued expenses	(2,584,186)	1,193,392
Deferred revenue	(1,543,780)	(606,280)
Other liabilities	(222,627)	151,986
Net cash used in operating activities	(16,110,027)	(9,952,128)
INVESTING ACTIVITIES
Purchase of property and equipment	(1,350,329)	(191,877)
Net cash used in investing activities	(1,350,329)	(191,877)
FINANCING ACTIVITIES
Proceeds from the sale of common stock, net of offering costs		679,789
Payment of debt issuance costs		(40,000)
Proceeds from issuance of Series A convertible preferred stock	21,737,200
Proceeds from the sale of senior secured notes and detachable warrants		10,000,000
Proceeds from exercise of common stock warrants		123,001
Change in restricted cash		216,086
Payments of capital leases obligations	(375,081)	(477,299)
Repayment of debt	(62,009)	(2,628,410)
Payment of financing costs	(1,089,158)
Net cash provided by financing activities	20,210,952	7,873,167
Net increase (decrease) in cash	2,750,596	(2,270,838)
Cash at beginning of period	3,185,519	2,351,887
Cash at end of period	5,936,115	81,049
Supplemental disclosure of cash flow information
Cash paid for interest	25,505	418,496
Supplemental schedule of noncash investing activities:
Purchases of property and equipment in accounts payable and accrued expenses	27,870	79,236
Supplemental schedule of noncash financing activities:
Issuance of Series B convertible preferred stock upon conversion of senior secured notes, net of unamortized debt discount	1,409,619
Issuance of capital lease obligations in connection with purchase of property and equipment	3,401,964	62,230
Series A convertible preferred stock dividends	0	0
Settlement of Series A convertible preferred stock dividends upon issuance of Series A convertible preferred stock	$ 1,104,480
Deferred offering costs and common stock issuance costs in accounts payable and accrued expenses		$ (288,725)

Organization and Description of

Organization and Description of Business	6 Months Ended
	Mar. 31, 2018
Organization And Description Of Business [Abstract]
Organization and Description of Business	1. Organization and Description of Business Oncobiologics, Inc. (“Oncobiologics” or the “Company”) was incorporated in New Jersey on January 5, 2010 and started operations in July 2011. Oncobiologics is a clinical-stage biopharmaceutical company focused on identifying, developing, manufacturing and commercializing complex monoclonal antibody (“mAb”) therapeutics. The Company has established fully integrated in-house development and manufacturing capabilities that addresses the numerous complex technical and regulatory challenges in developing and commercializing mAb therapeutics. Since inception, the Company has advanced two product candidates through Phase 1 clinical trials: ONS-3010, a biosimilar to adalimumab (Humira®) and ONS-1045, a biosimilar to bevacizumab (Avastin®). Additionally, the Company has a pipeline of preclinical product candidates in various stages of development. The Company is based in Cranbury, New Jersey.

Liquidity

Liquidity	6 Months Ended
	Mar. 31, 2018
Liquidity [Abstract]
Liquidity	2. Liquidity The Company has incurred substantial losses and negative cash flows from operations since its inception and has an accumulated deficit of $195.7 million as of March 31, 2018. The Company has substantial indebtedness that includes $13.5 million of senior secured notes due in December 2018 and $4.6 million in notes payable to stockholders that are payable on demand. There can be no assurance that the holders of the stockholder notes will not exercise their right to demand repayment. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying unaudited interim consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The unaudited interim consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. Management believes that the Company’s existing cash as of March 31, 2018 and the proceeds received and to be received from the May 2018 private placement of common stock and warrants, will be sufficient to fund its operations through December 2018, excluding repayment of debt. See Note 11. Substantial additional financing will be needed by the Company to fund its operations in the future and to commercially develop its product candidates. Management is currently evaluating different strategies to obtain the required funding for future operations. These strategies may include, but are not limited to: private placements of equity and/or debt, payments from potential strategic research and development, licensing and/or marketing arrangements with pharmaceutical companies, providing manufacturing services on a contract basis to other biopharmaceutical companies and public offerings of equity and/or debt securities. There can be no assurance that these future funding efforts will be successful. The Company’s future operations are highly dependent on a combination of factors, including (i) the timely and successful completion of additional financing discussed above; (ii) the Company’s ability to complete revenue-generating partnerships with pharmaceutical companies; (iii) the success of its research and development; (iv) the development of competitive therapies by other biotechnology and pharmaceutical companies, and, ultimately, (v) regulatory approval and market acceptance of the Company’s proposed future products.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	3. Basis of Presentation and Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited interim consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). In the opinion of management, the accompanying unaudited interim consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the Company’s financial position as of March 31, 2018 and its results of operations for the three and six months ended March 31, 2018 and 2017 and cash flows for the six months ended March 31, 2018. Operating results for the three and six months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the full year ending September 30, 2018. The unaudited interim consolidated financial statements, presented herein, do not contain the required disclosures under GAAP for annual consolidated financial statements. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and related notes as of and for the year ended September 30, 2017 included in the Company’s Annual Report on Form 10-K, as amended to date, filed with the Securities and Exchange Commission (“SEC”), on December 29, 2017. Use of estimates The preparation of the unaudited interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Due to the uncertainty of factors surrounding the estimates or judgments used in the preparation of the unaudited interim consolidated financial statements, actual results may materially vary from these estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the unaudited interim consolidated financial statements in the period they are determined to be necessary. Income taxes In November 2017, the Company received approval from the New Jersey Economic Development Authority’s Technology Business Tax Certificate Transfer Program to sell a portion of its unused New Jersey net operating losses (“NOLs”), and research and development (“R&D”) tax credits. As a result, the Company received $3.15 million of cash from the sale of these NOLs and credits in December 2017, which it recognized as an income tax benefit for the six months ended March 31, 2018. The Company recorded income tax expense of $4,000 for the six months ended March 31, 2017, which is primarily attributable to state and foreign withholding taxes in connection with the Company’s collaboration and licensing agreements. Net loss per share Basic and diluted net loss per common share is determined by dividing net loss applicable to common stockholders by the weighted-average common shares outstanding during the period. For purposes of calculating diluted loss per common share, the denominator includes both the weighted average common shares outstanding and the number of common stock equivalents if the inclusion of such common stock equivalents would be dilutive. Dilutive common stock equivalents potentially include warrants, stock options and non-vested restricted stock unit (“RSU”) awards using the treasury stock method. The diluted loss per common share calculation is further affected by an add-back of change in fair value of warrant liability to the numerator under the assumption that the change in fair value of warrant liability would not have been incurred if the warrants had been converted into common stock. The following table sets forth the computation of basic earnings per share and diluted earnings per share: Three months ended March 31, Six months ended March 31, 2018 2017 2018 2017 Basic Earnings Per Share Net loss $ (8,558,238 ) $ (8,045,982 ) $ (26,284,559 ) $ (27,144,451 ) Common stock outstanding (weighted average) 25,733,467 23,723,551 25,364,247 23,457,361 Basic net loss per share $ (0.33 ) $ (0.34 ) $ (1.04 ) $ (1.16 ) Diluted Earnings Per Share Net loss (8,558,238 ) (8,045,982 ) (26,284,559 ) (27,144,451 ) Add change in fair value of warrant liability (211,992 ) (1,035,902 ) (290,775 ) (225,819 ) Diluted net loss (8,770,230 ) (9,081,884 ) (26,575,334 ) (27,370,270 ) Common stock outstanding (weighted average) 25,733,467 23,723,551 25,364,247 23,457,361 Add shares from dilutive warrants - 77,672 - 38,836 Common stock equivalents 25,733,467 23,801,223 25,364,247 23,496,197 Diluted net loss per share $ (0.34 ) $ (0.38 ) $ (1.05 ) $ (1.16 ) The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding as of March 31, 2018 and 2017, as they would be antidilutive: As of March 31, 2018 2017 Series A convertible preferred stock 39,465,772 - Series B convertible preferred stock 2,112,676 - Performance-based stock units 163,934 241,573 Restricted stock units 97,773 1,200,529 Common stock warrants 28,116,505 7,786,573 Correction of immaterial error related to prior periods During fiscal 2017, the Company identified an error related to its accounting and classification for the 82,000 square feet of office and laboratory space in Cranbury, New Jersey that was entered into during August 2015. Due to the Company’s involvement in the construction required to complete the leased facility, the Company concluded that the lease should have been accounted for as a direct financing arrangement, whereby the Company records, the fair value of the asset in property and equipment, net on the consolidated balance sheets. A corresponding liability is also recorded and amortized over the lease term through monthly rental payments using the effective interest method. For the three and six months ended March 31, 2017, rent expense was overstated by $0.1 million and $0.2 million, respectively, and interest expense was understated by $0.1 million and $0.2 million, respectively. This was primarily attributable to the reclassification of rental payments into interest expense payments in connection with a financing arrangement rather than an operating lease arrangement, as previously presented. The Company reviewed the impact of this error on the prior periods in accordance with SEC Staff Accounting Bulletin No. 99 “Materiality,” Recently issued and adopted accounting pronouncements In May 2017, the FASB, issued ASU, No. 2017-09 , Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting Compensation — Stock Compensation In February 2016, the FASB issued ASU No. 2016-02, Leases In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers · Contracts with customers · Significant judgments and changes in judgments · Certain assets ​ In July 2015, the FASB delayed the effective date of this guidance. As a result, this guidance will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact that this guidance will have on its consolidated results of operations, financial position and cash flows.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: ■ Level 1 - Quoted prices in active markets for identical assets or liabilities. ■ Level 2 - Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. ■ Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis: March 31, 2018 (Level 1) (Level 2) (Level 3) Liabilities Warrant liability $ - $ - $ 1,984,179 September 30, 2017 (Level 1) (Level 2) (Level 3) Liabilities Warrant liability $ - $ - $ 2,274,954 The table presented below is a summary of changes in the fair value of the Company’s Level 3 valuation for the warrant liability for the six months ended March 31, 2018: Balance at October 1, 2017 $ 2,274,954 Change in fair value (290,775 ) Balance at March 31, 2018 $ 1,984,179 The warrants issued in connection with the senior secured notes are classified as liabilities on the accompanying consolidated balance sheet as such warrants include cash settlement features at the option of the holders under certain circumstances. The warrant liability is revalued each reporting period with the change in fair value recorded in the accompanying consolidated statements of operations until the warrants are exercised or expire. The fair value of the warrant liability is estimated using the Black- Scholes option pricing model using the following assumptions: March 31, 2018 Risk-free interest rate 2.48% Remaining contractual life of warrant 3.89 years Expected volatility 114% Annual dividend yield 0% Fair value of common stock $0.89 per share

Property and Equipment, Net

Property and Equipment, Net	6 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	5. Property and Equipment, Net Property and equipment, net, consists of: March 31, September 30, 2018 2017 Laboratory equipment $ 13,846,649 $ 11,574,474 Leasehold improvements 10,032,640 10,032,640 Computer software and hardware 483,807 472,054 Land and building 3,000,000 - Construction in progress 2,866,581 2,654,675 30,229,677 24,733,843 Less: accumulated depreciation and amortization (10,052,830 ) (8,644,941 ) $ 20,176,847 $ 16,088,902 Depreciation and amortization expense was $706,264 and $680,149 for the three months ended March 31, 2018 and 2017 respectively, and $1,407,888 and $1,349,930 for the six months ended March 31, 2018 and 2017, respectively. At March 31, 2018, $6,965,545 represents laboratory equipment under capital leases and the Company’s corporate office that is classified as a capital lease. At September 30, 2017, $3,692,913 represents laboratory equipment under capital leases. The term of the equipment leases are between 22 and 36 months and qualify as capital leases. The Company’s corporate office lease matures in February 2028. The equipment leases bear interest between 5.0% and 19.4% and the effective interest rate on the corporate office lease is 43.9%. At March 31, 2018 and September 30, 2017, $1,259,136 and $1,061,901, respectively, of accumulated amortization related to capital leases.

Accrued Expenses

Accrued Expenses	6 Months Ended
	Mar. 31, 2018
Accrued Expenses [Abstract]
Accrued Expenses	6. Accrued Expenses Accrued expenses consists of: March 31, September 30, 2018 2017 Compensation $ 3,301,826 $ 3,688,592 Research and development 125,208 1,637,657 Interest payable 1,498,560 1,047,122 Professional fees 53,786 521,973 Director fees 58,903 376,695 Other accrued expenses - 65,430 $ 5,038,283 $ 7,337,469

Senior Secured Notes

Senior Secured Notes	6 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Senior Secured Notes	7. Senior Secured Notes March 31, 2018 Senior secured notes $ 13,500,000 Unamortized debt discount (992,632 ) $ 12,507,368 In September 2017, the Company entered into a purchase and exchange agreement (the “Exchange Agreement”) with two existing investors and holders of its senior secured notes (the “Noteholders”), pursuant to which the Noteholders exchanged $1.5 million aggregate principal amount of senior secured notes for 1,500,000 shares of Series B convertible preferred stock (“Series B Convertible”) and $41,507 of accrued interest on such exchanged senior secured notes in October 2017. The Company recognized a loss on extinguishment of $1,252,353 in connection with the exchange and represents the excess fair value of the Series B convertible preferred stock issued over the net carrying amount of the debt and accrued interest. Interest expense on the senior secured notes for the three months ended March 31, 2018 and 2017 was $484,746 and $958,037, respectively, and $989,331 and $1,047,929 for the six months ended March 31, 2018 and 2017, respectively.

Commitments

Commitments	6 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments	8. Commitments During the three months ended March 31, 2018, the Company entered into an amendment to its lease for its corporate offices in Cranbury, New Jersey. Pursuant to the amended terms, the Company is occupying 100% of the corporate facility and has extended the lease term through February 2028 with two five year renewal options. As a result of this amendment, the lease is now classified as a capital lease. The Company initially recorded the lease obligation and corresponding building asset based on its estimated fair value of approximately $3,000,000. The building is being depreciated over the lease term. Future lease payments will be allocated to interest expense and a paydown of the lease obligation. Future minimum payments under the amended lease at March 31, 2018 are as follows: March 31, 2018 Within one year $ 1,491,022 Two years 1,395,842 Three years 1,411,752 Four years 1,486,125 Five years 1,512,586 Thereafter 8,071,794 Total rental payments $ 15,369,121 Less: amount representing interest (12,162,295 ) Present value of payments $ 3,206,826

Convertible Preferred Stock and

Convertible Preferred Stock and Stockholders' Equity (Deficit)	6 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
Convertible Preferred Stock and Stockholders' Equity (Deficit)	9. Convertible Preferred Stock and Stockholders’ Equity (Deficit) Common stock During the six months ended March 31, 2018, the Company issued 806,514 shares of common stock upon the vesting of RSUs. Convertible preferred stock In September 2017, the Company entered into a purchase agreement (the “Purchase Agreement”) with GMS Tenshi Holdings Pte. Limited, a Singapore private limited company (“GMS Tenshi”), pursuant to which GMS Tenshi agreed to purchase, in a private placement (the “Private Placement”), $25.0 million of the Company’s newly-created voting Series A Convertible Preferred Stock (the “Series A Convertible”), and warrants (the “GMS Tenshi Warrants” and together with the Series A Convertible, the “Securities”) to acquire 16,750,000 shares of common stock. On September 11, 2017, the Company completed the initial sale of 32,628 shares of Series A Convertible to GMS Tenshi for $3,262,800 in cash. In October 2017, the Company completed the sale of the remaining 217,372 shares of Series A Convertible and the GMS Tenshi Warrants to GMS Tenshi in the Private Placement, for $21,737,200 in cash. The Series A Convertible is initially convertible into 37,795,948 shares of the Company’s common stock, representing an effective conversion rate of $0.66 per share, which represents a discount to the market value of the Company’s common stock as of September 7, 2017 and October 31, 2017 (on which dates, the closing price of the Company’s common stock was $0.90 and $1.26 per share, respectively). In connection with the second closing of the Series A Convertible in October 2017, the Company issued the GMS Tenshi Warrants, which have a term of 8-years and an initial exercise price of $0.90 per share. The proceeds from the second closing of the Series A Convertible were allocated among the Series A Convertible and the GMS Tenshi Warrants based on their relative fair values. As a result of the discount to the market value and the allocation of a portion of the proceeds to the GMS Tenshi Warrants, the Company recognized a beneficial conversion charge of $15,355,019, which represents the in-the-money value of the conversion rate as of the date of sale. The Series A Convertible accrue dividends at a rate of 10% per annum, compounded quarterly, payable quarterly at the Company’s option in cash or in kind in additional shares of Series A Convertible, although the initial dividends payable on the shares of Series A Convertible issued in September 2017, while accruing from issuance, was payable in December 2017. The Series A Convertible will also be entitled to dividends on an as-if-converted basis in the same form as any dividends actually paid on shares of common stock or other securities. The initial conversion rate is subject to appropriate adjustment in the event of a stock split, stock dividend, combination, reclassification or other recapitalization affecting the common stock. During the six months ended March 31, 2018, the Company issued an additional 11,045 shares of Series A Convertible to settle the related dividends that are due on a quarterly basis. The Company recognized a beneficial conversion charge of $381,664 during the three months ended March 31, 2018, which represents the in-the-money value of the conversion rate as of the date of issuance. Concurrent with completing the sale of Series A Convertible in October 2017, the Noteholders exchanged $1,500,000 in aggregate principal borrowings and $41,507 in accrued interest for 1,500,000 shares of Series B Convertible. The exchange was accounted for as an extinguishment of debt. See Note 7. The Series B Convertible are non-voting, do not accrue dividends nor do the shares of Series B Convertible have any specific rights or preferences, and have a stated value of  $1.00 per share and are convertible into 2,112,676 shares of common stock. The Series B Convertible are not convertible into common stock if the holder thereof would beneficially own more than 9.99% of the common stock, or, if during the first six-month period following the closing of the exchange, 7.50%, but automatically converts into common stock in part from time to time if the holder beneficially owns below a certain beneficial ownership threshold of the common stock. Common stock warrants As of March 31, 2018, the Company had the following warrants outstanding to acquire shares of its common stock: Outstanding Exercise Expiration Series A warrants 3,333,333 $ 6.60 February 18, 2019 Series B warrants 3,333,333 $ 8.50 May 18, 2018 Common stock warrants issued with initial public offering 817,838 $ 0.01 November 11, 2019 Common stock warrants issued with senior secured notes 3,882,001 $ 3.00 December 22, 2021 Common stock warrants issued with Series A Convertible 16,750,000 $ 0.90 October 31, 2025 28,116,505

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	10. Stock-Based Compensation 2011 Equity Incentive Plan The Company’s 2011 Equity Compensation Plan (the “2011 Plan”) provided for the Company to sell or issue restricted common stock, RSUs, performance-based awards (“PSUs”), cash-based awards or to grant stock options for the purchase of common stock to officers, employees, consultants and directors of the Company. The 2011 Plan was administered by the board of directors or, at the discretion of the board of directors, by a committee of the board. The number of shares of common stock reserved for issuance under the 2011 Plan is 851,926. As of March 31, 2018, PSUs representing 163,934 shares of the Company’s common stock were outstanding under the 2011 Plan. In light of the December 2015 adoption of the 2015 Equity Incentive Plan, (the “2015 Plan”) no future awards under the 2011 Plan will be granted. 2015 Equity Incentive Plan In December 2015, the Company adopted the 2015 Plan. The 2015 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, RSU awards, performance stock awards and other forms of equity compensation to Company employees, directors and consultants. The maximum number of shares of common stock that may be issued under the 2015 Plan is 2,638,101 shares. As of March 31, 2018, 1,697,339 shares remained available for grant under the 2015 Plan. The Company recorded stock-based compensation (income) expense in the following expense categories of its statements of operations for the three and six months ended March 31, 2018 and 2017: Three months ended March 31, Six months ended March 31, 2018 2017 2018 2017 Research and development $ (403,034 ) $ 431,706 $ (84,793 ) $ 817,815 General and administrative 102,823 1,895,685 1,674,402 3,973,628 $ (300,211 ) $ 2,327,391 $ 1,589,609 $ 4,791,443 Stock options During the six months ended March 31, 2018, the Company granted a total of 205,000 stock options to its board of directors and employees of which 20,000 options granted will vest 50% on the third anniversary of the commencement date and the remaining 50% on the fourth anniversary of the commencement date, 60,000 options granted will vest on the first anniversary of the grant date and 125,000 options granted will vest ratably over three years. As of March 31, 2018, options to purchase common stock of the Company outstanding under the 2015 Plan were as follows: Weighted Average Weighted Remaining Number of Average Contractual Shares Exercise Price Term (Years) Balance at October 1, 2017 - $ - Granted 205,000 1.23 Expired/forfeited/cancelled (15,000 ) 1.32 Balance at March 31, 2018 190,000 $ 1.22 9.7 Vested and exercisable - Vested and expected to vest at March 31, 2018 190,000 1.22 9.7 The weighted average grant date fair value of the options awarded to employees for the six months ended March 31, 2018 was $0.73 per share. The aggregate intrinsic value represents the total amount by which the fair value of the common stock subject to options exceeds the exercise price of the related options. As of March 31, 2018, the aggregate intrinsic value of the unvested options was $0. The fair value of the options was estimated on the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: March 31, 2018 Risk-free interest rate 2.25% Expected life 5.93 years Expected volatility 64% Expected dividend yield - As of March 31, 2018, there was $112,015 of unrecognized compensation expense that is expected to be recognized over a weighted-average period of 2.42 years. Performance-based stock units The Company has issued PSUs, which generally have a ten year life from the date of grant and vest 50% after the third anniversary from issuance and the remaining 50% on the fourth anniversary. The PSUs are exercisable upon the earlier of (i) a change in control, (ii) consummation of an initial public offering, or (iii) a corporate valuation in excess of $400 million. Upon exercise, the PSU holder receives common stock or cash at the Company’s discretion. The following table summarizes the activity related to PSUs during the six months ended March 31, 2018: Weighted Number Average of Base Price PSUs Per Unit Balance at October 1, 2017 175,530 $ 6.30 Forfeitures (11,596 ) 6.21 Balance at March 31, 2018 163,934 $ 6.30 As of March 31, 2018, there was $46,066 of unamortized expense that will be recognized over a weighted-average period of 0.69 years. Restricted stock units The RSUs generally vest over a period of two to four years from the date of grant. The following table summarizes the activity related to RSUs during the six months ended March 31, 2018: Weighted Number Average of Grant Date RSUs Fair Value Balance at October 1, 2017 939,879 $ 18.78 Granted 20,000 1.16 Vested and settled (806,514 ) 17.51 Forfeitures (55,592 ) 16.62 Balance at March 31, 2018 97,773 $ 22.84 As of March 31, 2018, there was $880,559 of unamortized expense that will be recognized over a weighted-average period of 1.40 years.

Subsequent Events

Subsequent Events	6 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	11. Subsequent Events On May 11, 2018, the Company entered into a purchase agreement (the “May 2018 Purchase Agreement”) with GMS Tenshi pursuant to which the Company agreed to sell to GMS Tenshi, and GMS Tenshi agreed to purchase, in a private placement, $15.0 million of the Company’s common stock and warrants to acquire that number of shares of common stock having an aggregate exercise price of approximately $20.0 million, to close in two tranches. On May 14, 2018, the Company closed the sale of the first tranche of the common stock and warrants for aggregate cash proceeds of $7.5 million, issuing to GMS Tenshi an aggregate of 6,377,383 shares of its common stock and warrants to acquire up to 10,256,410 additional shares of its common stock at an exercise price of $0.975 per share, which warrants have a term of eight years from their issuance date. Under the May 2018 Purchase Agreement, the Company and GMS Tenshi will close the sale of the remaining $7.5 million of common stock and warrants beginning on June 11, 2018 but no later than September 21, 2018, although, if necessary, GMS Tenshi agreed to acquire that portion of the second tranche of common stock and warrants no later than June 11, 2018 if necessary for the Company to achieve compliance with the minimum market value of listed securities requirement of the Nasdaq Capital Market. In connection with the May 2018 Purchase Agreement, the Company and GMS Tenshi amended the Investor Rights Agreement dated September 11, 2017, in order to provide GMS Tenshi certain registration and other rights with respect to the shares of common stock to be acquired pursuant to the May 2018 Purchase Agreement and the shares of common stock that may be issuable upon exercise of the warrants acquired pursuant to the May 2018 Purchase Agreement.

Basis of Presentation and Sum18

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The accompanying unaudited interim consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). In the opinion of management, the accompanying unaudited interim consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the Company’s financial position as of March 31, 2018 and its results of operations for the three and six months ended March 31, 2018 and 2017 and cash flows for the six months ended March 31, 2018. Operating results for the three and six months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the full year ending September 30, 2018. The unaudited interim consolidated financial statements, presented herein, do not contain the required disclosures under GAAP for annual consolidated financial statements. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and related notes as of and for the year ended September 30, 2017 included in the Company’s Annual Report on Form 10-K, as amended to date, filed with the Securities and Exchange Commission (“SEC”), on December 29, 2017.
Use of estimates	Use of estimates The preparation of the unaudited interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Due to the uncertainty of factors surrounding the estimates or judgments used in the preparation of the unaudited interim consolidated financial statements, actual results may materially vary from these estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the unaudited interim consolidated financial statements in the period they are determined to be necessary.
Income taxes	Income taxes In November 2017, the Company received approval from the New Jersey Economic Development Authority’s Technology Business Tax Certificate Transfer Program to sell a portion of its unused New Jersey net operating losses (“NOLs”), and research and development (“R&D”) tax credits. As a result, the Company received $3.15 million of cash from the sale of these NOLs and credits in December 2017, which it recognized as an income tax benefit for the six months ended March 31, 2018. The Company recorded income tax expense of $4,000 for the six months ended March 31, 2017, which is primarily attributable to state and foreign withholding taxes in connection with the Company’s collaboration and licensing agreements.
Net loss per share	Net loss per share Basic and diluted net loss per common share is determined by dividing net loss applicable to common stockholders by the weighted-average common shares outstanding during the period. For purposes of calculating diluted loss per common share, the denominator includes both the weighted average common shares outstanding and the number of common stock equivalents if the inclusion of such common stock equivalents would be dilutive. Dilutive common stock equivalents potentially include warrants, stock options and non-vested restricted stock unit (“RSU”) awards using the treasury stock method. The diluted loss per common share calculation is further affected by an add-back of change in fair value of warrant liability to the numerator under the assumption that the change in fair value of warrant liability would not have been incurred if the warrants had been converted into common stock. The following table sets forth the computation of basic earnings per share and diluted earnings per share: Three months ended March 31, Six months ended March 31, 2018 2017 2018 2017 Basic Earnings Per Share Net loss $ (8,558,238 ) $ (8,045,982 ) $ (26,284,559 ) $ (27,144,451 ) Common stock outstanding (weighted average) 25,733,467 23,723,551 25,364,247 23,457,361 Basic net loss per share $ (0.33 ) $ (0.34 ) $ (1.04 ) $ (1.16 ) Diluted Earnings Per Share Net loss (8,558,238 ) (8,045,982 ) (26,284,559 ) (27,144,451 ) Add change in fair value of warrant liability (211,992 ) (1,035,902 ) (290,775 ) (225,819 ) Diluted net loss (8,770,230 ) (9,081,884 ) (26,575,334 ) (27,370,270 ) Common stock outstanding (weighted average) 25,733,467 23,723,551 25,364,247 23,457,361 Add shares from dilutive warrants - 77,672 - 38,836 Common stock equivalents 25,733,467 23,801,223 25,364,247 23,496,197 Diluted net loss per share $ (0.34 ) $ (0.38 ) $ (1.05 ) $ (1.16 ) The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding as of March 31, 2018 and 2017, as they would be antidilutive: As of March 31, 2018 2017 Series A convertible preferred stock 39,465,772 - Series B convertible preferred stock 2,112,676 - Performance-based stock units 163,934 241,573 Restricted stock units 97,773 1,200,529 Common stock warrants 28,116,505 7,786,573
Correction of immaterial error related to prior periods	Correction of immaterial error related to prior periods During fiscal 2017, the Company identified an error related to its accounting and classification for the 82,000 square feet of office and laboratory space in Cranbury, New Jersey that was entered into during August 2015. Due to the Company’s involvement in the construction required to complete the leased facility, the Company concluded that the lease should have been accounted for as a direct financing arrangement, whereby the Company records, the fair value of the asset in property and equipment, net on the consolidated balance sheets. A corresponding liability is also recorded and amortized over the lease term through monthly rental payments using the effective interest method. For the three and six months ended March 31, 2017, rent expense was overstated by $0.1 million and $0.2 million, respectively, and interest expense was understated by $0.1 million and $0.2 million, respectively. This was primarily attributable to the reclassification of rental payments into interest expense payments in connection with a financing arrangement rather than an operating lease arrangement, as previously presented. The Company reviewed the impact of this error on the prior periods in accordance with SEC Staff Accounting Bulletin No. 99 “Materiality,”
Recently issued and adopted accounting pronouncements	Recently issued and adopted accounting pronouncements In May 2017, the FASB, issued ASU, No. 2017-09 , Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting Compensation — Stock Compensation In February 2016, the FASB issued ASU No. 2016-02, Leases In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers · Contracts with customers · Significant judgments and changes in judgments · Certain assets ​ In July 2015, the FASB delayed the effective date of this guidance. As a result, this guidance will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact that this guidance will have on its consolidated results of operations, financial position and cash flows.

Basis of Presentation and Sum19

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Schedule of computation of basic earnings per share and diluted earnings per share	Three months ended March 31, Six months ended March 31, 2018 2017 2018 2017 Basic Earnings Per Share Net loss $ (8,558,238 ) $ (8,045,982 ) $ (26,284,559 ) $ (27,144,451 ) Common stock outstanding (weighted average) 25,733,467 23,723,551 25,364,247 23,457,361 Basic net loss per share $ (0.33 ) $ (0.34 ) $ (1.04 ) $ (1.16 ) Diluted Earnings Per Share Net loss (8,558,238 ) (8,045,982 ) (26,284,559 ) (27,144,451 ) Add change in fair value of warrant liability (211,992 ) (1,035,902 ) (290,775 ) (225,819 ) Diluted net loss (8,770,230 ) (9,081,884 ) (26,575,334 ) (27,370,270 ) Common stock outstanding (weighted average) 25,733,467 23,723,551 25,364,247 23,457,361 Add shares from dilutive warrants - 77,672 - 38,836 Common stock equivalents 25,733,467 23,801,223 25,364,247 23,496,197 Diluted net loss per share $ (0.34 ) $ (0.38 ) $ (1.05 ) $ (1.16 )
Schedule of dilutive securities excluded from the computation weighted-average shares	As of March 31, 2018 2017 Series A convertible preferred stock 39,465,772 - Series B convertible preferred stock 2,112,676 - Performance-based stock units 163,934 241,573 Restricted stock units 97,773 1,200,529 Common stock warrants 28,116,505 7,786,573

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities measured at fair value on a recurring basis	March 31, 2018 (Level 1) (Level 2) (Level 3) Liabilities Warrant liability $ - $ - $ 1,984,179 September 30, 2017 (Level 1) (Level 2) (Level 3) Liabilities Warrant liability $ - $ - $ 2,274,954
Schedule of changes in the fair value of Level 3 valuation for the warrant liability	Balance at October 1, 2017 $ 2,274,954 Change in fair value (290,775 ) Balance at March 31, 2018 $ 1,984,179
Schedule of fair value of the warrant liability	March 31, 2018 Risk-free interest rate 2.48% Remaining contractual life of warrant 3.89 years Expected volatility 114% Annual dividend yield 0% Fair value of common stock $0.89 per share

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	6 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	March 31, September 30, 2018 2017 Laboratory equipment $ 13,846,649 $ 11,574,474 Leasehold improvements 10,032,640 10,032,640 Computer software and hardware 483,807 472,054 Land and building 3,000,000 - Construction in progress 2,866,581 2,654,675 30,229,677 24,733,843 Less: accumulated depreciation and amortization (10,052,830 ) (8,644,941 ) $ 20,176,847 $ 16,088,902

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Mar. 31, 2018
Accrued Expenses [Abstract]
Schedule of accrued expenses	March 31, September 30, 2018 2017 Compensation $ 3,301,826 $ 3,688,592 Research and development 125,208 1,637,657 Interest payable 1,498,560 1,047,122 Professional fees 53,786 521,973 Director fees 58,903 376,695 Other accrued expenses - 65,430 $ 5,038,283 $ 7,337,469

Senior Secured Notes (Tables)

Senior Secured Notes (Tables)	6 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of senior secured note	March 31, 2018 Senior secured notes $ 13,500,000 Unamortized debt discount (992,632 ) $ 12,507,368

Commitments (Tables)

Commitments (Tables)	6 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum payments under the amended lease	March 31, 2018 Within one year $ 1,491,022 Two years 1,395,842 Three years 1,411,752 Four years 1,486,125 Five years 1,512,586 Thereafter 8,071,794 Total rental payments $ 15,369,121 Less: amount representing interest (12,162,295 ) Present value of payments $ 3,206,826

Convertible Preferred Stock a25

Convertible Preferred Stock and Stockholders' Equity (Deficit) (Tables)	6 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
Schedule of warrants outstanding	Outstanding Exercise Expiration Series A warrants 3,333,333 $ 6.60 February 18, 2019 Series B warrants 3,333,333 $ 8.50 May 18, 2018 Common stock warrants issued with initial public offering 817,838 $ 0.01 November 11, 2019 Common stock warrants issued with senior secured notes 3,882,001 $ 3.00 December 22, 2021 Common stock warrants issued with Series A Convertible 16,750,000 $ 0.90 October 31, 2025 28,116,505

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock-based compensation expense	Three months ended March 31, Six months ended March 31, 2018 2017 2018 2017 Research and development $ (403,034 ) $ 431,706 $ (84,793 ) $ 817,815 General and administrative 102,823 1,895,685 1,674,402 3,973,628 $ (300,211 ) $ 2,327,391 $ 1,589,609 $ 4,791,443
Schedule of options to purchase common stock of Company outstanding under 2015 Plan	Weighted Average Weighted Remaining Number of Average Contractual Shares Exercise Price Term (Years) Balance at October 1, 2017 - $ - Granted 205,000 1.23 Expired/forfeited/cancelled (15,000 ) 1.32 Balance at March 31, 2018 190,000 $ 1.22 9.7 Vested and exercisable - Vested and expected to vest at March 31, 2018 190,000 1.22 9.7
Schedule of assumptions under fair value of options estimated on the date of grant using a Black-Scholes option pricing model	March 31, 2018 Risk-free interest rate 2.25% Expected life 5.93 years Expected volatility 64% Expected dividend yield -
Schedule of performance-based stock units activity	Weighted Number Average of Base Price PSUs Per Unit Balance at October 1, 2017 175,530 $ 6.30 Forfeitures (11,596 ) 6.21 Balance at March 31, 2018 163,934 $ 6.30
Schedule of restricted stock units activity	Weighted Number Average of Grant Date RSUs Fair Value Balance at October 1, 2017 939,879 $ 18.78 Granted 20,000 1.16 Vested and settled (806,514 ) 17.51 Forfeitures (55,592 ) 16.62 Balance at March 31, 2018 97,773 $ 22.84

Liquidity (Detail Textuals)

Liquidity (Detail Textuals) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Liquidity [Abstract]
Accumulated deficit	$ (195,675,782)	$ (186,215,402)
Aggregate indebtedness	13,500,000
Notes payable to stockholders	$ 4,600,000

Basis of Presentation and Sum28

Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Basic Earnings Per Share
Net loss	$ (8,558,238)	$ (8,045,982)	$ (26,284,559)	$ (27,144,451)
Common stock outstanding (weighted average)	25,733,467	23,723,551	25,364,247	23,457,361
Basic net loss per share	$ (0.33)	$ (0.34)	$ (1.04)	$ (1.16)
Diluted Earnings Per Share
Net loss	$ (8,558,238)	$ (8,045,982)	$ (26,284,559)	$ (27,144,451)
Add change in fair value of warrant liability	(211,992)	(1,035,902)	(290,775)	(225,819)
Diluted net loss	$ (8,770,230)	$ (9,081,884)	$ (26,575,334)	$ (27,370,270)
Common stock outstanding (weighted average)	25,733,467	23,723,551	25,364,247	23,457,361
Add shares from dilutive warrants	0	77,672	0	38,836
Common stock equivalents	25,733,467	23,801,223	25,364,247	23,496,197
Diluted net loss per share (in dollars per share)	$ (0.34)	$ (0.38)	$ (1.05)	$ (1.16)

Basis of Presentation and Sum29

Basis of Presentation and Summary of Significant Accounting Policies (Details 1) - shares	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Series A convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	39,465,772	0
Series B Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	2,112,676	0
Performance-based stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	163,934	241,573
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	97,773	1,200,529
Common stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	28,116,505	7,786,573

Basis of Presentation and Sum30

Basis of Presentation and Summary of Significant Accounting Policies (Detail Textuals) - USD ($)	6 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Accounting Policies [Abstract]
Income tax (benefit) expense	$ (3,150,716)	$ 4,000	$ 3,150,000

Basis of Presentation and Sum31

Basis of Presentation and Summary of Significant Accounting Policies (Detail Textuals 1)	3 Months Ended		6 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Sep. 30, 2017ft²
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net rentable area | ft²					82,000
Interest expense	$ 920,870	$ 1,243,892	$ 1,638,753	$ 1,733,037
Research and development expenses	5,156,386	4,116,856	5,558,788	17,347,243
General and administrative expenses	2,446,505	4,024,276	5,995,757	8,892,271
Error for accounting and classification
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net rentable area | ft²					82,000
Error for accounting and classification | Previously reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Rent expense	100,000		200,000
Interest expense	$ (100,000)		$ (200,000)
Error for accounting and classification | Restatement adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Interest expense		100,000		200,000
Research and development expenses		82,000		(200,000)
General and administrative expenses		$ 21,000		$ (42,000)

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Liabilities
Warrant liability	$ 1,984,179	$ 2,274,954
Fair value measurements recurring basis | Level 1
Liabilities
Warrant liability	0	0
Fair value measurements recurring basis | Level 2
Liabilities
Warrant liability	0	0
Fair value measurements recurring basis | Level 3
Liabilities
Warrant liability	$ 1,984,179	$ 2,274,954

Fair Value Measurements (Deta33

Fair Value Measurements (Details 1) - Warrant	6 Months Ended
	Mar. 31, 2018USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at October 1, 2017	$ 2,274,954
Change in fair value	(290,775)
Balance at March 31, 2018	$ 1,984,179

Fair Value Measurements (Deta34

Fair Value Measurements (Details 2) - Warrant	6 Months Ended
	Mar. 31, 2018$ / shares
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk-free interest rate	2.48%
Remaining contractual life of warrant	3 years 10 months 21 days
Expected volatility	114.00%
Annual dividend yield	0.00%
Fair value of common stock	$ 0.89

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 30,229,677	$ 24,733,843
Less: accumulated depreciation and amortization	(10,052,830)	(8,644,941)
Property and equipment, net	20,176,847	16,088,902
Laboratory equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	13,846,649	11,574,474
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,032,640	10,032,640
Computer software and hardware
Property, Plant and Equipment [Line Items]
Property and equipment, gross	483,807	472,054
Land and building
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,000,000	0
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,866,581	$ 2,654,675

Property and Equipment, Net (36

Property and Equipment, Net (Detail Textuals) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 706,264	$ 680,149	$ 1,407,888	$ 1,349,930
Corporate office, interest rate			43.90%
Accumulated depreciation related to leased equipment	1,259,136		$ 1,259,136		$ 1,061,901
Laboratory Equipment
Property, Plant and Equipment [Line Items]
Laboratory equipment under capital leases	$ 6,965,545		$ 6,965,545		$ 3,692,913
Laboratory Equipment | Minimum
Property, Plant and Equipment [Line Items]
Term of capital leases			22 months
Capital leases interest rate			5.00%
Laboratory Equipment | Maximum
Property, Plant and Equipment [Line Items]
Term of capital leases			36 months
Capital leases interest rate			19.40%

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Accrued Liabilities, Current [Abstract]
Compensation	$ 3,301,826	$ 3,688,592
Research and development	125,208	1,637,657
Interest payable	1,498,560	1,047,122
Professional fees	53,786	521,973
Director fees	58,903	376,695
Other accrued expenses	0	65,430
Accrued expenses, total	$ 5,038,283	$ 7,337,469

Senior Secured Notes (Details)

Senior Secured Notes (Details)	Mar. 31, 2018USD ($)
Debt Instrument [Line Items]
Senior secured notes	$ 12,507,368
Senior secured notes
Debt Instrument [Line Items]
Senior secured notes	13,500,000
Unamortized debt discount	(992,632)
Senior secured notes	$ 12,507,368

Senior Secured Notes (Detail Te

Senior Secured Notes (Detail Textuals)	1 Months Ended	3 Months Ended		6 Months Ended
	Oct. 31, 2017USD ($)Investorshares	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)
Debt Instrument [Line Items]
Loss on extinguishment of debt				$ (1,252,353)
Interest expense on the notes		$ 484,746	$ 958,037	$ 989,331	$ 1,047,929
Purchase and exchange agreement | Series B convertible preferred stock
Debt Instrument [Line Items]
Number of preferred shares issued upon conversion of debt | shares	1,500,000
Purchase and exchange agreement | Senior secured notes
Debt Instrument [Line Items]
Number of existing investors and holders | Investor	2
Aggregate principal amount of senior secured notes	$ 1,500,000
Accrued interest on debt conversion	41,507
Loss on extinguishment of debt	$ 1,252,353

Commitments (Details)

Commitments (Details)	Mar. 31, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Within one year	$ 1,491,022
Two years	1,395,842
Three years	1,411,752
Four years	1,486,125
Five years	1,512,586
Thereafter	8,071,794
Total rental payments	15,369,121
Less: amount representing interest	(12,162,295)
Present value of payments	$ 3,206,826

Commitments (Detail Textuals)

Commitments (Detail Textuals) - USD ($)	6 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
Other Commitments [Line Items]
Estimated fair value of approximately	$ 30,229,677	$ 24,733,843
Percentage of corporate facility	100.00%
Minimum
Other Commitments [Line Items]
Operating lease, renewal term	2 years
Maximum
Other Commitments [Line Items]
Operating lease, renewal term	5 years
Land and building
Other Commitments [Line Items]
Estimated fair value of approximately	$ 3,000,000	$ 0

Convertible Preferred Stock a42

Convertible Preferred Stock and Stockholders' Equity (Deficit) (Details)	6 Months Ended
	Mar. 31, 2018$ / sharesshares
Class of Warrant or Right [Line Items]
Outstanding	28,116,505
Series A warrants
Class of Warrant or Right [Line Items]
Outstanding	3,333,333
Exercise price per share | $ / shares	$ 6.60
Expiration date	Feb. 18, 2019
Series B warrants
Class of Warrant or Right [Line Items]
Outstanding	3,333,333
Exercise price per share | $ / shares	$ 8.50
Expiration date	May 18, 2018
Common stock warrants issued with IPO
Class of Warrant or Right [Line Items]
Outstanding	817,838
Exercise price per share | $ / shares	$ 0.01
Expiration date	Nov. 11, 2019
Common stock warrants issued with senior secured notes
Class of Warrant or Right [Line Items]
Outstanding	3,882,001
Exercise price per share | $ / shares	$ 3
Expiration date	Dec. 22, 2021
Common stock warrants issued with Series A Convertible
Class of Warrant or Right [Line Items]
Outstanding	16,750,000
Exercise price per share | $ / shares	$ 0.90
Expiration date	Oct. 31, 2025

Convertible Preferred Stock a43

Convertible Preferred Stock and Stockholders' Equity (Deficit) (Detail Textuals) - USD ($)	Sep. 11, 2017	Oct. 31, 2017	Mar. 31, 2018	Mar. 31, 2018	Sep. 30, 2017	Sep. 07, 2017
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Value of shares issued in cash				$ 6,382,181
Preferred stock, stated value (in dollars per share)			$ 0.01	$ 0.01	$ 0.01
Series A convertible preferred stock
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Value of shares issued in cash				$ 14,265,861
Number of share issued				217,372
Dividend rate				10.00%
Series A convertible preferred stock dividends and settlement (in shares)				11,045
Series B Convertible Preferred Stock
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Preferred stock, stated value (in dollars per share)			$ 0.01	$ 0.01	$ 0.01
Preferred stock not convertible to common stock description				The Series B Convertible are non-voting, do not accrue dividends nor do the shares of Series B Convertible have any specific rights or preferences, and have a stated value of $1.00 per share and are convertible into 2,112,676 shares of common stock. The Series B Convertible are not convertible into common stock if the holder thereof would beneficially own more than 9.99% of the common stock, or, if during the first six-month period following the closing of the exchange, 7.50%, but automatically converts into common stock in part from time to time if the holder beneficially owns below a certain beneficial ownership threshold of the common stock.
Common Stock
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Number of shares issued upon vesting of restricted stock units (in shares)				806,514
Common Stock | Series B Convertible Preferred Stock
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Convertible preferred stock, shares issued upon conversion			2,112,676	2,112,676
GMS Tenshi Holdings Pte. Limited | Series B Convertible Preferred Stock
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Preferred stock, stated value (in dollars per share)			$ 1	$ 1
Purchase Agreement | GMS Tenshi Holdings Pte. Limited | GMS Tenshi Warrants
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Terms of warrant		8 years
Warrants exercise price per share		$ 0.90
Recognition of beneficial conversion feature upon issuance of Series A convertible preferred stock				$ 15,355,019
Purchase Agreement | GMS Tenshi Holdings Pte. Limited | IPO | Series A convertible preferred stock
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Number of share issued	32,628
Proceeds from issuance of Series A convertible preferred stock	$ 3,262,800
Purchase Agreement | GMS Tenshi Holdings Pte. Limited | Private Placement | Series A convertible preferred stock
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Recognition of beneficial conversion feature upon issuance of Series A convertible preferred stock			$ 381,664
Purchase Agreement | GMS Tenshi Holdings Pte. Limited | Private Placement | Series A Convertible and GMS Tenshi Warrants
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Value of shares issued in cash				$ 25,000,000
Sale of remaining shares of Series A Convertible and GMS Tenshi Warrants		217,372
Cash received upon sale of Series A Convertible and GMS Tenshi Warrants		$ 21,737,200
Purchase Agreement | GMS Tenshi Holdings Pte. Limited | Private Placement | Common Stock
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Stock and warrant issued to acquire shares of common stock				16,750,000
Convertible preferred stock, shares issued upon conversion			37,795,948	37,795,948
Conversion rate per share		$ 1.26	$ 0.66	$ 0.66		$ 0.90
Purchase and exchange agreement | Senior note
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Aggregate principal amount of notes		$ 1,500,000
Accrued interest on debt conversion		$ 41,507
Purchase and exchange agreement | Series B Convertible Preferred Stock
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Number of preferred shares issued upon conversion of debt		1,500,000

Stock Based Compensation (Detai

Stock Based Compensation (Details) - 2015 Equity Incentive Plan - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ (300,211)	$ 2,327,391	$ 1,589,609	$ 4,791,443
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	(403,034)	431,706	(84,793)	817,815
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 102,823	$ 1,895,685	$ 1,674,402	$ 3,973,628

Stock Based Compensation (Det45

Stock Based Compensation (Details 1)	6 Months Ended
	Mar. 31, 2018$ / sharesshares
Number of Shares
Balance at October 1, 2017	0
Granted	205,000
Expired/forfeited/cancelled	(15,000)
Balance at March 31, 2018	190,000
Vested and exercisable	0
Vested and expected to vest at March 31, 2018	190,000
Weighted Average Exercise Price
Balance at October 1, 2017 | $ / shares	$ 0
Granted | $ / shares	1.23
Expired/forfeited/cancelled | $ / shares	1.32
Balance at March 31, 2018 | $ / shares	1.22
Vested and expected to vest at March 31, 2018 | $ / shares	$ 1.22
Weighted Average Remaining Contractual Term (Years)
Balance at March 31, 2018	9 years 8 months 12 days
Vested and expected to vest at March 31, 2018	9 years 8 months 12 days

Stock Based Compensation (Det46

Stock Based Compensation (Details 2)	6 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Risk-free interest rate	2.25%
Expected life	5 years 11 months 5 days
Expected volatility	64.00%
Expected dividend yield	0.00%

Stock Based Compensation (Det47

Stock Based Compensation (Details 3) - Performance-based stock units	6 Months Ended
	Mar. 31, 2018$ / sharesshares
Number of PSUs
Balance at October 1, 2017 | shares	175,530
Forfeitures | shares	(11,596)
Balance at March 31, 2018 | shares	163,934
Weighted Average Base Price Per Unit
Balance at October 1, 2017 | $ / shares	$ 6.30
Forfeitures | $ / shares	6.21
Balance at March 31, 2018 | $ / shares	$ 6.30

Stock Based Compensation (Det48

Stock Based Compensation (Details 4) - Restricted stock units	6 Months Ended
	Mar. 31, 2018$ / sharesshares
Number of RSUs
Balance at October 1, 2017 | shares	939,879
Granted | shares	20,000
Vested and settled | shares	(806,514)
Forfeitures | shares	(55,592)
Balance at March 31, 2018 | shares	97,773
Weighted Average Grant Date Fair Value
Balance at October 1, 2017 | $ / shares	$ 18.78
Granted | $ / shares	1.16
Vested and settled | $ / shares	17.51
Forfeitures | $ / shares	16.62
Balance at March 31, 2018 | $ / shares	$ 22.84

Stock Based Compensation (Det49

Stock Based Compensation (Detail Textuals)	Mar. 31, 2018shares
2015 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized under 2015 Plan	2,638,101
Number of shares available for grant	1,697,339
2011 Equity Compensation Plan (the "2011 Plan") | Officers, Employees, Consultants and Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock reserved for issuance	851,926
Number of shares available for grant	163,934

Stock Based Compensation (Det50

Stock Based Compensation (Detail Textuals 1)	6 Months Ended
	Mar. 31, 2018USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	205,000
Weighted average grant date fair value of the options awarded to employees | $ / shares	$ 0.73
Aggregate intrinsic value of the unvested options | $	$ 0
Unrecognized compensation expense of stock options expected to be recognized | $	$ 112,015
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period of unrecognized compensation expense that is expected to be recognized	2 years 5 months 1 day
Vest 50% on third anniversary and remaining 50% on fourth anniversary of commencement date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	20,000
Third anniversary of the commencement date | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	50.00%
Fourth anniversary of commencement date | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	50.00%
Vest on first anniversary of the grant date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	60,000
Vest ratably over three years | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	125,000
Vesting period	3 years

Stock Based Compensation (Det51

Stock Based Compensation (Detail Textuals 2)	6 Months Ended
	Mar. 31, 2018USD ($)
Performance-based stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of PSUs	10 years
Minimum corporate valuation for early exercise of stock based performance units	$ 400,000,000
Unamortized expense to be recognized of stock awards other than options	$ 46,066
Weighted-average period for recognition of unamortized expense	8 months 9 days
Performance-based stock units | Third anniversary from issuance
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	50.00%
Performance-based stock units | Fourth anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	50.00%
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized expense to be recognized of stock awards other than options	$ 880,559
Weighted-average period for recognition of unamortized expense	1 year 4 months 24 days
Restricted stock units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period from the date of grant	2 years
Restricted stock units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period from the date of grant	4 years

Subsequent Events (Detail Textu

Subsequent Events (Detail Textuals)	May 15, 2018USD ($)	May 14, 2018USD ($)$ / sharesshares	May 11, 2018USD ($)Tranche	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)
Subsequent Event [Line Items]
Value of shares issued in cash				$ 6,382,181
Proceeds from the sale of common stock					$ 679,789
Subsequent Event | Purchase Agreement | GMS Tenshi Holdings Pte. Limited | Private Placement
Subsequent Event [Line Items]
Value of shares issued in cash			$ 15,000,000
Common stock aggregate exercise price			$ 20,000,000
Number of tranche | Tranche			2
Proceeds from the sale of common stock	$ 7,500,000	$ 7,500,000
Aggregate shares of common stock and warrants issue | shares		6,377,383
Acquire additional shares of common stock | shares		10,256,410
Warrants exercise price per share | $ / shares		$ 0.975
Term of warrant		8 years