Outlook Therapeutics (OTLK) 10-Q 14 Feb 20 2020 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Dec. 31, 2019	Feb. 07, 2020
Document And Entity Information
Document Type	10-Q
Document Period End Date	Dec. 31, 2019
Entity Registrant Name	Outlook Therapeutics, Inc.
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		43,088,776
Entity Central Index Key	0001649989
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2019	Sep. 30, 2019
Current assets:
Cash	$ 1,333,559	$ 8,015,528
Prepaid expenses and other current assets	4,707,497	4,986,033
Assets held for sale	500,000	500,000
Total current assets	6,541,056	13,501,561
Property and equipment, net	587,184	3,175,960
Operating lease right-of-use assets, net	282,107
Finance lease right-of-use assets, net	2,450,000
Other assets	562,748	457,476
Total assets	10,423,095	17,134,997
Current liabilities:
Convertible senior secured notes	7,065,928	6,699,000
Current portion of long-term debt	48,936	1,026,168
Current portion of finance lease liabilities	172,609	192,290
Current portion of operating lease liabilities	170,228
Stockholder notes	3,612,500	3,612,500
Accounts payable	2,567,995	2,277,817
Accrued expenses	4,602,769	4,622,988
Income taxes payable	1,859,434	1,859,434
Total current liabilities	20,100,399	20,290,197
Long-term debt	38,011	50,285
Redemption feature	8,226,506
Finance lease liabilities	3,344,505	3,365,790
Operating lease liabilities	142,129
Warrant liability	54,356	255,734
Other liabilities	3,923,913	3,942,948
Total liabilities	35,829,819	27,904,954
Convertible preferred stock:
Total convertible preferred stock	5,525,537	5,359,404
Stockholders' equity (deficit):
Common stock, par value $0.01 per share; 200,000,000 shares authorized; 38,430,924 shares issued and outstanding at December 31, 2019 and 28,609,995 shares issued and outstanding at September 30, 2019	384,309	286,100
Additional paid-in capital	239,766,786	238,064,947
Accumulated deficit	(271,083,356)	(254,480,408)
Total stockholders' equity (deficit)	(30,932,261)	(16,129,361)
Total liabilities, convertible preferred stock and stockholders' equity (deficit)	10,423,095	17,134,997
Series A convertible preferred stock
Convertible preferred stock:
Total convertible preferred stock
Series A-1 Convertible Preferred Stock
Convertible preferred stock:
Total convertible preferred stock	5,525,537	5,359,404
Series B convertible preferred stock
Stockholders' equity (deficit):
Preferred stock, value

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares	Dec. 31, 2019	Sep. 30, 2019
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	7,300,000	7,300,000
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	38,430,924	28,609,995
Common stock, shares outstanding	38,430,924	28,609,995
Series A convertible preferred stock
Convertible stock, par value (in dollars per share)	$ 0.01	$ 0.01
Convertible preferred stock, shares authorized	1,000,000	1,000,000
Convertible preferred stock, shares issued	0	0
Convertible preferred stock outstanding	0	0
Series A-1 Convertible Preferred Stock
Convertible stock, par value (in dollars per share)	$ 0.01	$ 0.01
Convertible preferred stock, shares authorized	200,000	200,000
Convertible preferred stock, shares issued	68,112	66,451
Convertible preferred stock outstanding	68,112	66,451
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	0	0

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Consolidated Statements of Operations
Collaboration revenues		$ 1,067,598
Operating expenses:
Research and development	$ 5,847,302	6,071,522
General and administrative	2,336,724	2,903,988
Impairment of property and equipment		2,349,403
Total operating expenses	8,184,026	11,324,913
Loss from operations	(8,184,026)	(10,257,315)
Interest expense, net	597,665	1,120,849
Loss on extinguishment of debt	8,060,580
Change in fair value of redemption feature	(37,945)
Change in fair value of warrant liability	(201,378)	(1,636,320)
Net loss	(16,602,948)	(9,741,844)
Series A-1 convertible preferred stock dividends and related settlement	(166,133)	(150,508)
Deemed dividend upon modification of warrants	(1,708,603)
Net loss attributable to common stockholders	$ (18,477,684)	$ (9,892,352)
Per share information:
Net loss per share of common stock, basic and diluted (in dollars per share)	$ (0.62)	$ (1)
Weighted average shares outstanding, basic and diluted (in shares)	29,901,285	9,843,540

Consolidated Statements of Conv

Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($)	Series A-1 Convertible Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance, beginning at Sep. 30, 2018	$ 4,734,416	$ 90,275	$ 190,672,166	$ (216,307,363)	$ (25,544,922)
Balance, beginning (in shares) at Sep. 30, 2018	60,203	9,027,491
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock in connection with exercise of warrants		$ 6	(6)
Issuance of common stock in connection with exercise of warrants (in shares)		554
Issuance of vested restricted stock units		$ 1	(1)
Issuance of vested restricted stock units (in shares)		144			144
Series A-1 convertible preferred stock dividends and related settlement	$ 150,508		(150,508)		$ (150,508)
Series A-1 convertible preferred stock dividends and related settlement (in shares)	1,505
Stock-based compensation expense			872,289		872,289
Private placement sale of common stock and common stock warrants, net of costs		$ 16,082	11,794,776		11,810,858
Private placement sale of common stock and common stock warrants, net of costs (in shares)		1,608,234
Accrued directors fees settled in fully vested stock options			49,121		49,121
Net loss				(9,741,844)	(9,741,844)
Balance, ending at Dec. 31, 2018	$ 4,884,924	$ 106,364	203,237,837	(229,698,465)	(26,354,264)
Balance, ending (in shares) at Dec. 31, 2018	61,708	10,636,423
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of adoption of ASU 2014-09 (Topic 606)				(3,649,258)	(3,649,258)
Balance, beginning at Sep. 30, 2019	$ 5,359,404	$ 286,100	238,064,947	(254,480,408)	(16,129,361)
Balance, beginning (in shares) at Sep. 30, 2019	66,451	28,609,995
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock in connection with exercise of warrants		$ 83,455	(25,177)		58,278
Issuance of common stock in connection with exercise of warrants (in shares)		8,345,562
Issuance of common stock in connection with conversion of stockholder notes		$ 14,753	1,533,673		$ 1,548,426
Issuance of common stock in connection with conversion of stockholder notes (in shares)		1,475,258
Issuance of vested restricted stock units		$ 1	(1)
Issuance of vested restricted stock units (in shares)		109			109
Series A-1 convertible preferred stock dividends and related settlement	$ 166,133		(166,133)		$ (166,133)
Series A-1 convertible preferred stock dividends and related settlement (in shares)	1,661
Stock-based compensation expense			359,477		359,477
Net loss				(16,602,948)	(16,602,948)
Balance, ending at Dec. 31, 2019	$ 5,525,537	$ 384,309	$ 239,766,786	$ (271,083,356)	$ (30,932,261)
Balance, ending (in shares) at Dec. 31, 2019	68,112	38,430,924

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
OPERATING ACTIVITIES
Net loss	$ (16,602,948)	$ (9,741,844)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	175,341	823,077
Loss on extinguishment of debt	8,060,580
Non-cash interest expense	15,722	450,381
Stock-based compensation	359,477	872,289
Change in fair value of redemption feature	(37,945)
Change in fair value of warrant liability	(201,378)	(1,636,320)
Impairment of property and equipment		2,349,403
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	288,930	(50,486)
Other assets	(115,666)	21,913
Operating lease liability	(39,815)
Accounts payable	290,178	(260,943)
Accrued expenses	1,105,318	(1,419,110)
Deferred revenue		(1,052,598)
Other liabilities	28,530	(137,137)
Net cash used in operating activities	(6,673,676)	(9,781,375)
INVESTING ACTIVITIES
Purchase of property and equipment		(236,433)
Net cash used in investing activities		(236,433)
FINANCING ACTIVITIES
Proceeds from the sale of common stock, net of offering costs		11,885,833
Proceeds from exercise of common stock warrants	58,278
Payments of finance lease obligations	(55,031)	(231,221)
Repayment of debt	(11,540)	(3,126,479)
Net cash (used in) provided by financing activities	(8,293)	8,528,133
Net decrease in cash	(6,681,969)	(1,489,675)
Cash at beginning of period	8,015,528	1,717,391
Cash at end of period	1,333,559	227,716
Supplemental disclosure of cash flow information
Cash paid for interest	360,904	1,657,157
Supplemental schedule of noncash investing activities:
Purchases of property and equipment in accounts payable and accrued expenses		625,830
Supplemental schedule of noncash financing activities:
Unsecured notes and accrued interest converted into common stock	1,548,426
Issuance of exchange notes at estimated fair value	7,050,206
Issuance of redemption feature at estimated fair value	8,264,451
Change in fair value of convertible senior secured notes warrants capitalized as deferred financing costs		1,466,710
Series A-1 convertible preferred stock dividends and related settlement	$ 166,133	150,508
Deferred offering costs and common stock issuance costs in accounts payable and accrued expenses		74,975
Accrued directors' fees settled in fully vested stock options		$ 49,121

Organization and Operations

Organization and Operations	3 Months Ended
	Dec. 31, 2019
Organization and Operations
Organization and Operations	1. Organization and Description of Business Outlook Therapeutics, Inc. (“Outlook” or the “Company”) was incorporated in New Jersey on January 5, 2010, started operations in July 2011, and reincorporated in Delaware by merging with and into a Delaware corporation in October 2015 and changed its name to “Outlook Therapeutics, Inc.” in November 2018. The Company is a late clinical-stage biopharmaceutical company focused on developing and commercializing ONS-5010, an ophthalmic formulation of bevacizumab for use in retinal indications. The Company is based in Cranbury, New Jersey.

Liquidity

Liquidity	3 Months Ended
	Dec. 31, 2019
Liquidity
Liquidity	2. Liquidity The Company has incurred substantial losses and negative cash flows from operations since its inception and has a stockholders’ deficit of $30.9 million as of December 31, 2019. As of December 31, 2019, the Company had substantial indebtedness that included $7.6 million outstanding aggregate principal amount and accrued interest of senior secured notes that mature on December 31, 2020 and $3.6 million unsecured notes that were due on demand as of such date. 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. On December 11, 2019, the Company received approval from the New Jersey Economic Development Authority’s Technology Business Tax Certificate Transfer Program to sell approximately $3.6 million of its unused New Jersey net operating losses (“NOLs”) and research and development tax credits (“R&D credits”). The Company expects to receive approximately $3.3 million of proceeds from the sale of the New Jersey NOLs and R&D credits in March 2020. Management believes that the Company’s existing cash as of December 31, 2019, the $1.1 million of cash proceeds from the exercise of warrants in January 2020, and the $3.3 million of proceeds from the sale of New Jersey NOLs and R&D credits expected to be received in March 2020, will be sufficient to fund its operations through March 2020, excluding any repayment of debt. 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: payments from potential strategic research and development partners, licensing and/or marketing arrangements with pharmaceutical companies, private placements of equity and/or debt securities, sale of its development stage product candidates to third parties 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	3 Months Ended
	Dec. 31, 2019
Basis of Presentation and Summary of Significant Accounting Policies
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 and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. 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 December 31, 2019 and its results of operations for the three months ended December 31, 2019 and 2018, cash flows for the three months ended December 31, 2019 and 2018, and convertible preferred stock and stockholders’ equity for the three months ended December 31, 2019 and 2018. Operating results for the three months ended December 31, 2019 are not necessarily indicative of the results that may be expected for the full year ending September 30, 2020. 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, 2019 included in the Company’s Annual Report on Form 10‑K filed with the Securities and Exchange Commission (“SEC”) on December 19, 2019. Reverse stock-split On March 15, 2019, the Company amended its amended and restated certificate of incorporation to implement a one-for-eight reverse stock split of its common stock. As a result of the reverse stock split, the Company adjusted the share amounts under its employee incentive plans, outstanding options, restricted stock units and common stock warrant agreements with third parties. The disclosure of common shares and per common share data in the accompanying unaudited interim consolidated financial statements and related notes reflect the reverse stock split for all periods presented. 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. Net loss per share Basic and diluted net loss per common share is determined by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock 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. For all periods presented, there is no difference in the number of shares used to compute basic and diluted shares due to the Company’s loss. The following table sets forth the computation of basic earnings per share and diluted earnings per share: Three months ended December 31, 2019 2018 Net loss attributable to common stockholders $ (18,477,684) $ (9,892,352) Common stock outstanding (weighted average) 29,901,285 9,843,540 Basic and diluted net loss per share $ (0.62) $ (1.00) The following potentially dilutive securities (in common stock equivalents) have been excluded from the computation of diluted weighted-average shares outstanding as of December 31, 2019 and 2018, as they would be antidilutive: As of December 31, 2019 2018 Series A-1 convertible preferred stock 1,287,178 1,166,156 Convertible senior secured notes — 1,162,994 Performance-based stock units 2,470 16,136 Restricted stock units — 7,457 Stock options 1,791,500 386,247 Common stock warrants 5,559,763 5,661,015 Recently issued and adopted accounting pronouncements On October 1, 2019, the Company adopted ASU No. 2016-02, Leases (“ASC 842” or “ASU 2016-02”) issued by the FASB in February 2016 which was subsequently supplemented by clarifying guidance to improve financial reporting of leasing transactions. The new lease accounting guidance requires lessees to recognize lease liabilities and right-of-use assets on the balance sheet for all leases with initial terms longer than 12 months and provides enhanced disclosures on key information of leasing arrangements. The guidance allowed companies to apply the requirements retrospectively, either to all prior periods presented or through a cumulative adjustment in the year of adoption. The Company adopted the new standards effective October 1, 2019 using the modified retrospective transition method using the package of practical expedients and a discount rate of 9% and elected to not apply the standard in the comparative periods presented in the year of adoption. The Company has implemented the internal controls to monitor and record historical and future lease arrangements and required disclosures. For all existing operating leases as of September 30, 2019, the Company recorded right of use assets of $352,172 and corresponding lease liabilities of $318,672 with an offset to other liabilities of $33,500 to eliminate deferred rent on the consolidated balance sheets. The Company recorded right of use assets of $2,525,000 and corresponding finance lease liabilities of $3,558,080 for leases previously classified as capital leases. This did not include an existing lease termination obligation of approximately $3,909,448 pertaining to a lease for the Company’s planned office and laboratory expansion space in Cranbury, New Jersey that remained unchanged as a result of the transition. Refer to Note 9 for the Company’s lease disclosures. At lease commencement, the Company records a lease liability based on the present value of lease payments over the expected lease term including any options to extend the lease that the Company is reasonably certain to exercise. The Company calculates the present value of lease payments using an incremental borrowing rate as the Company’s leases do not provide an implicit interest rate. The Company’s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. At the lease commencement date, the Company records a corresponding right-of-use lease asset based on the lease liability, adjusted for any lease incentives received and any initial direct costs paid to the lessor prior to the lease commencement date. The Company may enter into leases with an initial term of 12 months or less (“Short-Term Leases”). For Short-Term Leases, the Company records the rent expense on a straight-line basis and does not record the leases on the consolidated balance sheet. The Company had no Short-Term Leases as of December 31, 2019. After lease commencement, the Company measures its leases as follows: (i) the lease liability based on the present value of the remaining lease payments using the discount rate determined at lease commencement and (ii) the right-of-use lease asset based on the re-measured lease liability, adjusted for any unamortized lease incentives received, any unamortized initial direct costs and the cumulative difference between rent expense and amounts paid under the lease agreement. Any lease incentives received, and any initial direct costs are amortized on a straight-line basis over the expected lease term. Rent expense is recorded on a straight-line basis over the expected lease term. The adoption of the new lease accounting standard did not have a material impact on the Company’s results of operations or cash flows. In August 2018, the FASB issued ASU No. 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"), which removes and modifies some existing disclosure requirements and adds others. ASU 2018-13 modifies the disclosure requirements for fair value measurements and removes the requirement to disclose (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels, and (3) the valuation processes for Level 3 fair value measurements. ASU 2018-13 requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The ASU is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted for any eliminated or modified disclosures upon issuance of this ASU. The Company is currently evaluating the impact of the adoption of this standard. Reclassifications Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 2019
Fair Value Measurements
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: December 31, 2019 (Level 1) (Level 2) (Level 3) Liabilities Redemption feature $ — $ — $ 8,226,506 Warrant liability — — 54,356 $ — $ — $ 8,280,862 September 30, 2019 (Level 1) (Level 2) (Level 3) Liabilities Redemption feature $ — $ — $ — Warrant liability — — 255,734 $ — $ — $ 255,734 The Company evaluated a redemption feature within the senior secured notes issued in December 2019 and determined bifurcation of the redemption feature was required. The redemption feature is accounted for as a derivative instrument and re-measured at each reporting period until the redemption feature is exercised, expires, or otherwise settled. The table presented below is a summary of changes in the fair value of the Company’s Level 3 valuation for the warrant liability and redemption feature for the three months ended December 31, 2019: Redemption Warrants Feature Balance at October 1, 2019 $ 255,734 $ — Addition of feature on December 20, 2019 — 8,264,451 Change in fair value (201,378) (37,945) Balance at December 31, 2019 $ 54,356 $ 8,226,506 The warrants issued in connection with the senior secured notes (see Note 7) are classified as liabilities on the accompanying consolidated balance sheet as the 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: December 31, September 30, 2019 2019 Risk-free interest rate 1.70 % 1.56 % Remaining contractual life of warrant 5.13 years 5.38 years Expected volatility 88 % 89 % Annual dividend yield 0 % 0 % Fair value of common stock $ 0.59 per share $ 1.49 per share The fair value of the redemption feature is estimated by using a Monte Carlo simulation model and a with-and-without perspective, where the fair value of debt instrument is measured with the derivative and without the derivative and the difference is the implied fair value of the redemption feature. The value of the debt instrument with the redemption feature depends on the daily stock price path followed by the Company’s common stock price. This model simulates daily common stock prices from the issuance date thru the maturity date for the debt instrument. At issuance, the Company utilized a volatility estimate of 130% based upon the observed historical volatility of both the Company and peer group for 1-year and 2-year periods. Risk-free interest rate was based upon US treasury yields.

Property and Equipment, Net

Property and Equipment, Net	3 Months Ended
	Dec. 31, 2019
Property and Equipment, Net
Property and Equipment, Net	5. Property and Equipment, Net Property and equipment, net, consists of: December 31, September 30, 2019 2019 Laboratory equipment $ 1,067,351 $ 1,067,351 Leasehold improvements 160,086 160,086 Land and building — 3,000,000 1,227,437 4,227,437 Less: accumulated depreciation and amortization (640,253) (1,051,477) $ 587,184 $ 3,175,960 Depreciation and amortization expense was $63,776 and $823,077 for the three months ended December 31, 2019 and 2018, respectively. On October 1, 2019, the Company adopted ASC 842, which resulted in the reclassification of property and equipment under capital leases to finance lease right-of-use assets separately disclosed on the consolidated balance sheets. Refer to Note 9 for the Company’s lease disclosures. At September 30, 2019, $3,000,000 represented the Company’s corporate office lease that was classified as a capital lease. The Company’s corporate office lease matures in February 2028 and the effective interest rate on the corporate office lease is 43.9%. At September 30, 2019, $475,000 of accumulated amortization related to capital leases. Impairment Charge During the three months ended December 31, 2018, the Company wrote off certain construction in progress and laboratory equipment with a carrying amount of $2,349,403. The Company determined that the carrying amount of these assets as of December 31, 2018 was not recoverable and was less than the fair value less the cost to sell due to the Company changing its operations to outsource the manufacturing of ONS-5010.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Dec. 31, 2019
Accrued Expenses
Accrued expenses	6. Accrued Expenses Accrued expenses consists of: December 31, September 30, 2019 2019 Compensation $ 969,399 $ 919,394 Severance and related costs 389,558 505,570 Research and development 2,765,669 1,692,040 Interest payable 23,125 934,145 Professional fees 285,747 419,216 Other accrued expenses 169,271 152,623 $ 4,602,769 $ 4,622,988

Debt

Debt	3 Months Ended
	Dec. 31, 2019
Debt
Debt	7. Debt Senior secured notes December 31, September 30, 2019 2019 Convertible senior secured notes $ 7,589,027 $ 6,699,000 Unamortized debt discount (523,099) — $ 7,065,928 $ 6,699,000 In December 2019, the Company entered into an exchange agreement with the holders of its approximately $7.3 million outstanding aggregate principal amount and accrued interest of senior secured notes (the “Old Senior Notes”) originally issued pursuant to the certain Note and Warrant Purchase Agreement dated December 22, 2017, as amended on April 13, 2017, November 5, 2018, and June 28, 2019 (the “Exchange Agreement”). Pursuant to the Exchange Agreement, the holders of the Old Senior Notes exchanged the entire outstanding principal and accrued interest for new senior secured notes having an aggregate outstanding original principal amount of $7.6 million, which includes an aggregate exchange fee of approximately $0.3 million. The new senior secured notes are substantially similar to the Old Senior Notes, as amended through the date of the Exchange Agreement, bear interest at a rate of 12.0% per annum and will mature December 31, 2020 (subject to extension to June 30, 2021 at the Company’s option upon payment of an extension fee equal to 3% of the outstanding balance and being in compliance with applicable Nasdaq listing requirements). The new senior secured notes are convertible, at the option of the holder, beginning April 1, 2020, into shares of the Company’s common stock at a conversion price equal to 90% of the two lowest closing bid prices in the 20 trading days immediately preceding such conversion, subject to a floor price of $0.232 per share. In the event the conversion price is lower than the floor price for 20 consecutive trading days, the Company is required to make a cash redemption equal to $350,000 (provided that it shall not be required to make more than one redemption in any calendar month, nor shall a trading day where the conversion price is lower than the floor price be included in more than one 20-trading day period). The conversion feature was determined to be a redemption feature and was bifurcated from the debt instrument. The estimated fair value of the redemption feature was $8.3 million at issuance (see Note 4). The Exchange Agreement was accounted for as an extinguishment of debt. Loss on extinguishment of convertible senior secured notes recognized during the three months ended December 31, 2019 was $8.0 million and equal to the excess fair value of the notes and bifurcated redemption feature over the notes’ net carrying value. Aggregate interest expense on the Old Senior Notes and the new senior secured notes for the three months ended December 31, 2019 and 2018 was $201,521 and $151,052, respectively. Stockholder Notes The Company previously repurchased shares of its restricted stock in exchange for notes in the amount of $800,000 that do not bear interest and are due on demand. The Company has a $2,812,500 note payable related to the previous repurchase of common stock that does not bear interest and is due on demand.

Other Indebtedness

Other Indebtedness	3 Months Ended
	Dec. 31, 2019
Other Indebtedness
Other Indebtedness	8. Other Indebtedness The Company has other outstanding debt consisting of equipment loans and unsecured notes. December 31, September 30, 2019 2019 Unsecured notes $ — $ 977,966 Equipment loans 86,947 98,487 86,947 1,076,453 Less: current portion (48,936) (1,026,168) Long-term debt $ 38,011 $ 50,285 On March 7, 2019, the Company entered into a Forbearance and Exchange Agreement (the "Agreement") with Iliad Research and Trading, L.P., a Utah limited partnership (the "Lender"). Concurrently with the execution of this Agreement, the Lender purchased two stockholder notes issued by the Company previously in the original principal amount of $1,000,000 with an aggregate outstanding balance as of March 7, 2019 of $1,947,133 including accrued interest. The stockholder notes were accruing interest at the rate of 2.5% per month. The Lender agreed to refrain and forbear from bringing any action to collect under the stockholder notes until March 7, 2020 and to reduce the interest rates currently in effect to 12.0% per annum simple interest during such forbearance period. The Company also agreed to, at Lender's election, repay or exchange the stockholder notes (or portions thereof) for shares of the Company's common stock at an exchange rate of $13.44 per share or, beginning September 2019, at 95% of the average of the two lowest closing bid prices in the prior twenty trading days, as applicable. In September 2019, the Lender began exchanging the outstanding principal and accrued interest from those notes for the Company’s common stock per the terms of a forbearance agreement dated March 7, 2019. During the three months ended December 31, 2019, the remaining unsecured notes with a carrying amount of $977,966 and accrued interest of $570,460 were exchanged for 1,475,258 shares of the Company’s common stock at a weighted average exchange price of $1.10. As of December 31, 2019, these unsecured notes were no longer outstanding. During the three months ended December 31, 2019 and 2018, the Company recognized interest expense related to the unsecured notes of $12,997 and $75,000, respectively.

Leases

Leases	3 Months Ended
	Dec. 31, 2019
Leases
Leases	9. Leases The Company has finance leases for its corporate office and a commitment under an operating lease for warehouse space in the State of New Jersey. The Company’s leases for the corporate office and warehouse mature in February 2028 with two five-year renewal options and in September 2021, respectively. The terms of the equipment leases are between 12 and 36 months and are recorded as finance leases. The equipment leases bear interest between 4.0% and 19.4% and the effective interest rate on the corporate office lease is 43.9%. Certain lease agreements contain provisions for future rent increases. Payments due under the lease contracts include minimum payments that the Company is obligated to make under the non-cancelable initial terms of the leases as the renewal terms are at the Company’s option. Lease expense is included in research and development or general and administrative based on the use of the lease asset. The components of lease cost for the three-month period ended December 31, 2019 are as follows: Three months ended December 31, 2019 Finance lease cost: Amortization of right-of-use assets $ 75,000 Interest on lease liabilities 372,223 Total finance lease cost 447,223 Operating lease cost 43,625 Total lease cost $ 490,848 Amounts reported in the consolidated balance sheets for leases where the Company is the lessee as of December 31, 2019 were as follows: December 31, 2019 Operating leases: Right-of-use asset $ 282,107 Operating lease liabilities 312,357 Finance leases: Right-of-use asset $ 2,450,000 Financing lease liabilities 3,517,114 Weighted-average remaining lease term (years): Operating leases 1.8 Finance leases 7.7 Weighted-average discount rate: Operating leases Finance leases Other information related to leases for the three-month period ended December 31, 2019 are as follows: Three months ended December 31, 2019 Cash paid for amounts included in the measurement of lease obligations: Operating cash flows from finance leases $ 358,159 Operating cash flows from operating leases 46,875 Financing cash flows from finance leases 55,031 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — Finance leases — Future minimum lease payments under non-cancelable leases as of December 31, 2019 are as follows for the years ending September 30: Operating leases Finance leases 2020 (remaining nine months) $ 140,625 $ 1,208,977 2021 195,000 1,518,146 2022 — 1,535,809 2023 — 1,564,028 2024 — 1,597,371 Thereafter — 5,753,515 Total undiscounted lease payments $ 335,625 $ 13,177,846 Less: Imputed interest 23,268 9,660,732 Total lease obligations $ 312,357 $ 3,517,114 Future minimum rental payments under non-cancelable leases prior to adoption of ASC 842, Leases, as of September 30, 2019 were as follows: Operating leases Finance leases 2020 $ 187,500 $ 1,608,067 2021 195,000 1,506,592 2022 — 1,535,809 2023 — 1,564,027 2024 — 1,593,291 Thereafter — 5,691,492 Total undiscounted lease payments $ 382,500 $ 13,499,278 Less: Imputed interest — 9,941,198 Total lease obligations $ 382,500 $ 3,558,080 Lease termination obligation In August 2018, the Company entered into a lease termination agreement effective September 1, 2018, to terminate the lease for office and laboratory space in Cranbury, New Jersey. In consideration for the termination of the lease, the Company agreed to make payments to the landlord totaling up to $5.8 million, which includes (i) $287,615 upon execution of the termination agreement, (ii) $50,000 per month for up to 30 months, commencing September 1, 2018, and (iii) a $4.0 million payment, in any event, on or before February 1, 2021. The Company and landlord agreed that the $174,250 security deposit will be used to pay the 7th, 8th, 9th and a portion of the 10th monthly payments. The Company may pay the final $4.0 million payment at any time, whereupon the Company’s obligation to make the remaining monthly payments terminates. At December 31, 2019, the lease termination obligation of $3,923,913 is included in other liabilities on the consolidated balance sheets. A roll forward of the charges incurred to general and administrative expense for the three months ended December 31, 2019 is as follows: Balance Expensed / Accrued Cash Balance October 1, 2019 Expense Payments December 31, 2019 Lease termination payments $ 3,909,448 $ 164,465 $ (150,000) $ 3,923,913

Common Stock, Convertible Prefe

Common Stock, Convertible Preferred Stock and Stockholders' Equity (Deficit)	3 Months Ended
	Dec. 31, 2019
Common Stock, Convertible Preferred Stock and Stockholders’ Equity (Deficit)
Common Stock, Convertible Preferred Stock and Stockholders' Equity (Deficit)	10. Common Stock, Convertible Preferred Stock and Stockholders’ Equity (Deficit) Common stock During the three months ended December 31, 2018, the Company issued an aggregate of 1,608,234 shares of the Company’s common stock for gross cash proceeds of $12.0 million ($11.8 million net of issuance costs) pursuant to the November 5, 2018 private placement agreement with BioLexis Pte. Ltd. (“BioLexis”). During the three months ended December 31, 2019 and 2018, the Company issued 109 and 144 shares of common stock, respectively, upon the vesting of RSUs. Series A‑1 Convertible Preferred Stock A total of 200,000 shares of Series A-1 Convertible Preferred Stock (the “Series A-1”) have been authorized for issuance under the Certificate of Designation of Series A-1 Convertible Preferred Stock of the Company (the “Certificate of Designation”). The shares of Series A-1 have a stated value of  $100.00 per share, and rank senior to all junior securities (as defined in the Certificate of Designation). The Series A-1 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-1. The Series A-1 is also 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. The holders of the Series A-1 have the right to vote on matters submitted to a vote of the Company’s stockholders on an as-converted basis, voting with the Company’s other stockholders as a single class. In addition, without the prior written consent of a majority of the outstanding shares of Series A-1, the Company may not take certain actions, including amending its certificate of incorporation or bylaws, or issuing securities ranking pari passu or senior to the Series A-1. At December 31, 2019, 68,112 shares of Series A-1 would be convertible into 1,287,178 shares of common stock. During the three months ended December 31, 2019, the Company issued 1,661 shares of Series A-1 to settle the related dividends that are due on a quarterly basis. The terms of the Series A-1 distinguish between certain liquidation events (such as a voluntary or involuntary liquidation, dissolution or winding up of the Company) and “deemed” liquidation events (such as a sale of all or substantially all of the Company’s assets, various merger and reorganization transactions, being delisted from Nasdaq, and the occurrence of an event of default under the terms of the senior secured notes), in each case as defined in the Certificate of Designation. In the event of a liquidation (as defined in the Certificate of Designation), the liquidation preference payable equals the sum of  (A) 550% of the Series A-1 stated value per share plus (B) an amount equal to (x) 550% of any accrued, but unpaid, preferred dividends (as defined in the Certificate of Designation) plus (y) any unpaid participating dividends (as defined in the Certificate of Designation). In the case of a deemed liquidation event (as defined in the Certificate of Designation), the multiplier is increased to 600%. The Series A-1 is convertible at any time at the option of the holder based on the then applicable conversion rate. If conversion is in connection with a liquidation, the holder is entitled to receive 550% of the number of shares of common stock issuable based upon the then applicable conversion rate. In the event of a deemed liquidation event, the multiplier is increased to 600%. Additionally, the holder may irrevocably require the Company to redeem the Series A-1 in the event of a deemed liquidation event for the sum of  (A) 600% of the Series A-1 stated value per share plus (B) an amount equal to (x) 600% of any accrued, but unpaid, preferred dividends plus (y) any unpaid participating dividends, although such redemption may not be made without the consent of the senior secured noteholders if such notes are outstanding at the time of any such redemption. Refer to Note 13 for detailed discussion of proposed changes to the Series A-1 to be effected after December 31, 2019. Common stock warrants As of December 31, 2019, shares of common stock issuable upon the exercise of outstanding warrants were as follows: Shares of common stock issuable upon exercise of Exercise Price Expiration Date warrants Per Share February 18, 2022 416,666 $ 12.00 December 22, 2024 277,122 $ 12.00 April 13, 2025 145,686 $ 12.00 May 31, 2025 62,437 $ 12.00 October 31, 2025 2,093,750 $ 7.20 (i) May 10, 2026 1,282,051 $ 7.80 (i) June 8, 2026 1,282,051 $ 7.80 (i) 5,559,763 (i) On January 27, 2020, the Company amended the exercise price of its outstanding warrants to purchase an aggregate 4,657,852 shares of its common, all of which were held by BioLexis, the Company’s controlling stockholder, to $0.232 per share. BioLexis exercised all such warrants for cash payment of approximately $1.1 million on January 29, 2020. On December 23, 2019, the Company amended the terms of its outstanding 15-month warrants and five-year warrants issued April 12, 2019 (the “April 2019 Warrants”), which originally had an exercise price of $2.90 per share of the Company’s common stock. The exercise price of all outstanding April 2019 Warrants was reduced to $0.2320 per share and the exercise period was amended such that all April 2019 Warrants expire on December 24, 2019. Immediately prior to expiration, all then unexercised April 2019 Warrants were automatically net exercised pursuant to the amended provisions. During the three months ended December 31, 2019, warrants to

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Dec. 31, 2019
Stock-Based Compensation
Stock-Based Compensation	11. 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 106,490. As of December 31, 2019, PSUs representing 2,470 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 aggregate number of shares of common stock authorized for issuance pursuant to the Company’s 2015 Plan is 2,869,598. As of December 31, 2019, 908,449 shares remained available for grant under the 2015 Plan. Stock options and RSUs are granted under the Company’s 2015 Plan and generally vest over a period of one to four years from the date of grant and, in the case of stock options, have a term of 10 years. The Company recognizes the grant date fair value of each option and share of RSU over its vesting period. The Company recorded stock-based compensation expense in the following expense categories of its statements of operations for the three months ended December 31, 2019 and 2018: Three months ended December 31, 2019 2018 Research and development $ 107,790 $ 91,209 General and administrative 251,687 781,080 $ 359,477 $ 872,289 During the three months ended December 31, 2018, the Company awarded stock options with a fair value of $49,121 as settlement for directors fees accrued as of September 30, 2018. Stock options As of December 31, 2019, 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, 2019 1,389,999 $ 3.46 Granted 558,084 1.40 Forfeited (156,583) 3.02 Balance at December 31, 2019 1,791,500 2.85 9.7 Vested and exercisable 245,111 4.63 8.6 Vested and expected to vest at December 31, 2019 1,791,500 $ 2.85 9.7 As of December 31, 2019, the aggregate intrinsic value of options outstanding was zero. 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. The weighted average grant date fair value of the options awarded to employees for the three months ended December 31, 2019 and 2018 was $0.99 and $5.16 per option, respectively. 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: December 31, September 30, 2019 2019 Risk-free interest rate 1.36 % 2.02 % Expected life (years) 5.34 6.14 Expected volatility 88.6 % 92.7 % Expected dividend yield — — As of December 31, 2019, there was $3,306,331 of unrecognized compensation expense that is expected to be recognized over a weighted-average period of 2.96 years. Performance-based stock units The Company has issued PSUs, which generally have a ten-year life from the date of grant. 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 three months ended December 31, 2019: Weighted Average Number Base Remaining of Price Contractual PSUs Per PSU Term (Years) Balance at October 1, 2019 15,691 $ 49.97 Forfeitures (13,221) 50.60 Balance at December 31, 2019 2,470 49.97 4.7 Vested and exercisable at December 31, 2019 2,470 49.97 4.7 Vested and expected to vest at December 31, 2019 2,470 $ 49.97 4.7 Restricted stock units The following table summarizes the activity related to RSUs during the three months ended December 31, 2019: Weighted Number Average of Grant Date RSUs Fair Value Balance at October 1, 2019 109 $ 150.24 Vested and settled (109) 150.24 Balance at December 31, 2019 — $ —

Related-Party Transactions

Related-Party Transactions	3 Months Ended
	Dec. 31, 2019
Related-Party Transactions
Related-Party Transactions	12. Related-Party Transactions MTTR - Strategic Partnership Agreement (ONS-5010) In February 2018, the Company entered into a strategic partnership agreement with MTTR, LLC (“MTTR”) to advise on regulatory, clinical and commercial strategy and assist in obtaining approval of ONS-5010, the Company's bevacizumab therapeutic product candidate for ophthalmic indications. MTTR earned an aggregate $611,424 and $290,480 during the three months ended December 31, 2019 and 2018, respectively, which includes monthly consulting fees and expense reimbursement. As of December 31, 2019, and September 30, 2019, amounts due to MTTR were $421,354 and $365,301, respectively, which amounts are included in accrued expenses in the accompanying consolidated balance sheets. In November 2018, the board of directors of the Company appointed Mr. Terry Dagnon as Chief Operating Officer, and Mr. Jeff Evanson as Chief Commercial Officer. Both Mr. Dagnon and Mr. Evanson are providing services to the Company pursuant to the February 2018 strategic partnership agreement with MTTR. Mr. Dagnon and Mr. Evanson are both principals in MTTR. The Company did not pay Mr. Dagnon or Mr. Evanson any direct compensation as consultants or as employees during the three months ended December 31, 2019 or 2018. Both Mr. Dagnon and Mr. Evanson were compensated directly by MTTR for services provided to the Company as the Company's Chief Operating Officer and Chief Commercial Officer, respectively, pursuant to the strategic partnership agreement. Mr. Dagnon and Mr. Evanson have also agreed to provide consulting services to an affiliate of BioLexis pursuant to a separate arrangement. Refer to Note 13 for a detailed discussion of changes to the MTTR strategic partnership agreement effected after December 31, 2019.

Subsequent Events

Subsequent Events	3 Months Ended
	Dec. 31, 2019
Subsequent Events
Subsequent Events	13. Subsequent Events Series A-1 Convertible Preferred Stock On January 27, 2020, the Company entered into an agreement with BioLexis, whereby the Company agreed to seek stockholder approval to amend the terms of the Series A-1, and the issuance of its common stock pursuant to such amended terms, and BioLexis agreed to promptly convert its shares of Series A-1 pursuant to such amended terms, and in any event, within five business days of stockholder approval thereof. As proposed to be amended, the effective conversion rate will be increased from the current $18.89797 per share to $431.03447263 per share, which, if approved, would result in 29,358,621 shares issuable upon conversion of the 68,112 shares of Series A-1 outstanding (or an effective conversion rate of $0.232 per share). The Series A-1 rank senior to the common equity and have protective provisions, as well as a current redemption premium of $37.5 million and a liquidation preference of $40.9 million, all of which will be eliminated if converted to common stock. MTTR - Strategic Partnership Agreement (ONS-5010) On January 27, 2020, the Company entered into a termination agreement and mutual release with MTTR to terminate the strategic partnership agreement. Pursuant to the agreement, the Company agreed (x) to issue to the four principals of MTTR (who include two of its named executive officers, Messrs. Dagnon and Evanson), an aggregate of 7,244,739 shares of its common stock, subject to stockholder approval, (y) to enter into consulting agreements with each of the four principals setting forth the terms of his respective compensation arrangement, and (z) to pay MTTR a one-time settlement fee of $110,000, upon effectiveness of the agreement. The termination agreement is effective upon stockholder approval of the share issuance. Concurrently, the Company also entered into consulting agreements directly with each of the four principals of MTTR setting forth the terms of his respective compensation arrangement, as well as providing for certain transfer restrictions and repurchase rights applicable to the shares of common stock to be issued pursuant thereto. The consulting agreements are effective upon stockholder approval of the share issuances contemplated thereby.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2019
Basis of Presentation and Summary of Significant Accounting Policies
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 and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. 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 December 31, 2019 and its results of operations for the three months ended December 31, 2019 and 2018, cash flows for the three months ended December 31, 2019 and 2018, and convertible preferred stock and stockholders’ equity for the three months ended December 31, 2019 and 2018. Operating results for the three months ended December 31, 2019 are not necessarily indicative of the results that may be expected for the full year ending September 30, 2020. 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, 2019 included in the Company’s Annual Report on Form 10‑K filed with the Securities and Exchange Commission (“SEC”) on December 19, 2019.
Reverse stock-split	Reverse stock-split On March 15, 2019, the Company amended its amended and restated certificate of incorporation to implement a one-for-eight reverse stock split of its common stock. As a result of the reverse stock split, the Company adjusted the share amounts under its employee incentive plans, outstanding options, restricted stock units and common stock warrant agreements with third parties. The disclosure of common shares and per common share data in the accompanying unaudited interim consolidated financial statements and related notes reflect the reverse stock split for all periods presented.
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.
Net loss per share	Net loss per share Basic and diluted net loss per common share is determined by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock 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. For all periods presented, there is no difference in the number of shares used to compute basic and diluted shares due to the Company’s loss. The following table sets forth the computation of basic earnings per share and diluted earnings per share: Three months ended December 31, 2019 2018 Net loss attributable to common stockholders $ (18,477,684) $ (9,892,352) Common stock outstanding (weighted average) 29,901,285 9,843,540 Basic and diluted net loss per share $ (0.62) $ (1.00) The following potentially dilutive securities (in common stock equivalents) have been excluded from the computation of diluted weighted-average shares outstanding as of December 31, 2019 and 2018, as they would be antidilutive: As of December 31, 2019 2018 Series A-1 convertible preferred stock 1,287,178 1,166,156 Convertible senior secured notes — 1,162,994 Performance-based stock units 2,470 16,136 Restricted stock units — 7,457 Stock options 1,791,500 386,247 Common stock warrants 5,559,763 5,661,015
Recently issued accounting pronouncements	Recently issued and adopted accounting pronouncements On October 1, 2019, the Company adopted ASU No. 2016-02, Leases (“ASC 842” or “ASU 2016-02”) issued by the FASB in February 2016 which was subsequently supplemented by clarifying guidance to improve financial reporting of leasing transactions. The new lease accounting guidance requires lessees to recognize lease liabilities and right-of-use assets on the balance sheet for all leases with initial terms longer than 12 months and provides enhanced disclosures on key information of leasing arrangements. The guidance allowed companies to apply the requirements retrospectively, either to all prior periods presented or through a cumulative adjustment in the year of adoption. The Company adopted the new standards effective October 1, 2019 using the modified retrospective transition method using the package of practical expedients and a discount rate of 9% and elected to not apply the standard in the comparative periods presented in the year of adoption. The Company has implemented the internal controls to monitor and record historical and future lease arrangements and required disclosures. For all existing operating leases as of September 30, 2019, the Company recorded right of use assets of $352,172 and corresponding lease liabilities of $318,672 with an offset to other liabilities of $33,500 to eliminate deferred rent on the consolidated balance sheets. The Company recorded right of use assets of $2,525,000 and corresponding finance lease liabilities of $3,558,080 for leases previously classified as capital leases. This did not include an existing lease termination obligation of approximately $3,909,448 pertaining to a lease for the Company’s planned office and laboratory expansion space in Cranbury, New Jersey that remained unchanged as a result of the transition. Refer to Note 9 for the Company’s lease disclosures. At lease commencement, the Company records a lease liability based on the present value of lease payments over the expected lease term including any options to extend the lease that the Company is reasonably certain to exercise. The Company calculates the present value of lease payments using an incremental borrowing rate as the Company’s leases do not provide an implicit interest rate. The Company’s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. At the lease commencement date, the Company records a corresponding right-of-use lease asset based on the lease liability, adjusted for any lease incentives received and any initial direct costs paid to the lessor prior to the lease commencement date. The Company may enter into leases with an initial term of 12 months or less (“Short-Term Leases”). For Short-Term Leases, the Company records the rent expense on a straight-line basis and does not record the leases on the consolidated balance sheet. The Company had no Short-Term Leases as of December 31, 2019. After lease commencement, the Company measures its leases as follows: (i) the lease liability based on the present value of the remaining lease payments using the discount rate determined at lease commencement and (ii) the right-of-use lease asset based on the re-measured lease liability, adjusted for any unamortized lease incentives received, any unamortized initial direct costs and the cumulative difference between rent expense and amounts paid under the lease agreement. Any lease incentives received, and any initial direct costs are amortized on a straight-line basis over the expected lease term. Rent expense is recorded on a straight-line basis over the expected lease term. The adoption of the new lease accounting standard did not have a material impact on the Company’s results of operations or cash flows. In August 2018, the FASB issued ASU No. 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"), which removes and modifies some existing disclosure requirements and adds others. ASU 2018-13 modifies the disclosure requirements for fair value measurements and removes the requirement to disclose (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels, and (3) the valuation processes for Level 3 fair value measurements. ASU 2018-13 requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The ASU is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted for any eliminated or modified disclosures upon issuance of this ASU. The Company is currently evaluating the impact of the adoption of this standard.
Reclassifications	Reclassifications Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation.

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Dec. 31, 2019
Basis of Presentation and Summary of Significant Accounting Policies
Schedule of computation of basic earnings per share and diluted earnings per share	Three months ended December 31, 2019 2018 Net loss attributable to common stockholders $ (18,477,684) $ (9,892,352) Common stock outstanding (weighted average) 29,901,285 9,843,540 Basic and diluted net loss per share $ (0.62) $ (1.00)
Schedule of dilutive securities excluded from the computation weighted-average shares	As of December 31, 2019 2018 Series A-1 convertible preferred stock 1,287,178 1,166,156 Convertible senior secured notes — 1,162,994 Performance-based stock units 2,470 16,136 Restricted stock units — 7,457 Stock options 1,791,500 386,247 Common stock warrants 5,559,763 5,661,015

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 2019
Fair Value Measurements
Schedule of assets and liabilities measured at fair value on a recurring basis	December 31, 2019 (Level 1) (Level 2) (Level 3) Liabilities Redemption feature $ — $ — $ 8,226,506 Warrant liability — — 54,356 $ — $ — $ 8,280,862 September 30, 2019 (Level 1) (Level 2) (Level 3) Liabilities Redemption feature $ — $ — $ — Warrant liability — — 255,734 $ — $ — $ 255,734
Schedule of changes in the fair value of Level 3 valuation for the warrant liability	Redemption Warrants Feature Balance at October 1, 2019 $ 255,734 $ — Addition of feature on December 20, 2019 — 8,264,451 Change in fair value (201,378) (37,945) Balance at December 31, 2019 $ 54,356 $ 8,226,506
Schedule of fair value of the warrant liability	December 31, September 30, 2019 2019 Risk-free interest rate 1.70 % 1.56 % Remaining contractual life of warrant 5.13 years 5.38 years Expected volatility 88 % 89 % Annual dividend yield 0 % 0 % Fair value of common stock $ 0.59 per share $ 1.49 per share

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	3 Months Ended
	Dec. 31, 2019
Property and Equipment, Net
Schedule of property and equipment	December 31, September 30, 2019 2019 Laboratory equipment $ 1,067,351 $ 1,067,351 Leasehold improvements 160,086 160,086 Land and building — 3,000,000 1,227,437 4,227,437 Less: accumulated depreciation and amortization (640,253) (1,051,477) $ 587,184 $ 3,175,960

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Dec. 31, 2019
Accrued Expenses
Schedule of accrued expenses	December 31, September 30, 2019 2019 Compensation $ 969,399 $ 919,394 Severance and related costs 389,558 505,570 Research and development 2,765,669 1,692,040 Interest payable 23,125 934,145 Professional fees 285,747 419,216 Other accrued expenses 169,271 152,623 $ 4,602,769 $ 4,622,988

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 31, 2019
Debt
Schedule of senior secured note	December 31, September 30, 2019 2019 Convertible senior secured notes $ 7,589,027 $ 6,699,000 Unamortized debt discount (523,099) — $ 7,065,928 $ 6,699,000

Other Indebtedness (Tables)

Other Indebtedness (Tables)	3 Months Ended
	Dec. 31, 2019
Other Indebtedness
Schedule of other indebtedness	December 31, September 30, 2019 2019 Unsecured notes $ — $ 977,966 Equipment loans 86,947 98,487 86,947 1,076,453 Less: current portion (48,936) (1,026,168) Long-term debt $ 38,011 $ 50,285

Leases (Tables)

Leases (Tables)	3 Months Ended
	Dec. 31, 2019
Leases
Schedule of lease information	The components of lease cost for the three-month period ended December 31, 2019 are as follows: Three months ended December 31, 2019 Finance lease cost: Amortization of right-of-use assets $ 75,000 Interest on lease liabilities 372,223 Total finance lease cost 447,223 Operating lease cost 43,625 Total lease cost $ 490,848 Amounts reported in the consolidated balance sheets for leases where the Company is the lessee as of December 31, 2019 were as follows: December 31, 2019 Operating leases: Right-of-use asset $ 282,107 Operating lease liabilities 312,357 Finance leases: Right-of-use asset $ 2,450,000 Financing lease liabilities 3,517,114 Weighted-average remaining lease term (years): Operating leases 1.8 Finance leases 7.7 Weighted-average discount rate: Operating leases Finance leases Other information related to leases for the three-month period ended December 31, 2019 are as follows: Three months ended December 31, 2019 Cash paid for amounts included in the measurement of lease obligations: Operating cash flows from finance leases $ 358,159 Operating cash flows from operating leases 46,875 Financing cash flows from finance leases 55,031 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — Finance leases —
Schedule of operating lease future minimum payments	Future minimum lease payments under non-cancelable leases as of December 31, 2019 are as follows for the years ending September 30: Operating leases Finance leases 2020 (remaining nine months) $ 140,625 $ 1,208,977 2021 195,000 1,518,146 2022 — 1,535,809 2023 — 1,564,028 2024 — 1,597,371 Thereafter — 5,753,515 Total undiscounted lease payments $ 335,625 $ 13,177,846 Less: Imputed interest 23,268 9,660,732 Total lease obligations $ 312,357 $ 3,517,114
Schedule of finance lease future minimum payments	Operating leases Finance leases 2020 (remaining nine months) $ 140,625 $ 1,208,977 2021 195,000 1,518,146 2022 — 1,535,809 2023 — 1,564,028 2024 — 1,597,371 Thereafter — 5,753,515 Total undiscounted lease payments $ 335,625 $ 13,177,846 Less: Imputed interest 23,268 9,660,732 Total lease obligations $ 312,357 $ 3,517,114
Schedule of prior year minimum rental payments in operating leases	Operating leases Finance leases 2020 $ 187,500 $ 1,608,067 2021 195,000 1,506,592 2022 — 1,535,809 2023 — 1,564,027 2024 — 1,593,291 Thereafter — 5,691,492 Total undiscounted lease payments $ 382,500 $ 13,499,278 Less: Imputed interest — 9,941,198 Total lease obligations $ 382,500 $ 3,558,080
Schedule of prior year minimum rental payments in capital leases	Future minimum rental payments under non-cancelable leases prior to adoption of ASC 842, Leases, as of September 30, 2019 were as follows: Operating leases Finance leases 2020 $ 187,500 $ 1,608,067 2021 195,000 1,506,592 2022 — 1,535,809 2023 — 1,564,027 2024 — 1,593,291 Thereafter — 5,691,492 Total undiscounted lease payments $ 382,500 $ 13,499,278 Less: Imputed interest — 9,941,198 Total lease obligations $ 382,500 $ 3,558,080
Schedule of future termination payment derecognized assets and liabilities associated with financing lease	Balance Expensed / Accrued Cash Balance October 1, 2019 Expense Payments December 31, 2019 Lease termination payments $ 3,909,448 $ 164,465 $ (150,000) $ 3,923,913

Common Stock, Convertible Pre_2

Common Stock, Convertible Preferred Stock and Stockholders' Equity (Deficit) (Tables)	3 Months Ended
	Dec. 31, 2019
Common Stock, Convertible Preferred Stock and Stockholders’ Equity (Deficit)
Schedule of warrants outstanding	Shares of common stock issuable upon exercise of Exercise Price Expiration Date warrants Per Share February 18, 2022 416,666 $ 12.00 December 22, 2024 277,122 $ 12.00 April 13, 2025 145,686 $ 12.00 May 31, 2025 62,437 $ 12.00 October 31, 2025 2,093,750 $ 7.20 (i) May 10, 2026 1,282,051 $ 7.80 (i) June 8, 2026 1,282,051 $ 7.80 (i) 5,559,763 On January 27, 2020, the Company amended the exercise price of its outstanding warrants to purchase an aggregate 4,657,852 shares of its common, all of which were held by BioLexis, the Company’s controlling stockholder, to $0.232 per share. BioLexis exercised all such warrants for cash payment of approximately $1.1 million on January 29, 2020.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Dec. 31, 2019
Stock-Based Compensation
Schedule of stock-based compensation expense	Three months ended December 31, 2019 2018 Research and development $ 107,790 $ 91,209 General and administrative 251,687 781,080 $ 359,477 $ 872,289
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, 2019 1,389,999 $ 3.46 Granted 558,084 1.40 Forfeited (156,583) 3.02 Balance at December 31, 2019 1,791,500 2.85 9.7 Vested and exercisable 245,111 4.63 8.6 Vested and expected to vest at December 31, 2019 1,791,500 $ 2.85 9.7
Schedule of weighted-average assumptions used in option pricing model for stock options	December 31, September 30, 2019 2019 Risk-free interest rate 1.36 % 2.02 % Expected life (years) 5.34 6.14 Expected volatility 88.6 % 92.7 % Expected dividend yield — —
Schedule of performance-based stock units activity	Weighted Average Number Base Remaining of Price Contractual PSUs Per PSU Term (Years) Balance at October 1, 2019 15,691 $ 49.97 Forfeitures (13,221) 50.60 Balance at December 31, 2019 2,470 49.97 4.7 Vested and exercisable at December 31, 2019 2,470 49.97 4.7 Vested and expected to vest at December 31, 2019 2,470 $ 49.97 4.7
Schedule of restricted stock units activity	Weighted Number Average of Grant Date RSUs Fair Value Balance at October 1, 2019 109 $ 150.24 Vested and settled (109) 150.24 Balance at December 31, 2019 — $ —

Liquidity (Details)

Liquidity (Details) - USD ($)	Jan. 29, 2020	Dec. 11, 2019	Dec. 31, 2019	Sep. 30, 2019
Liquidity [Line Items]
Stockholders’ deficit			$ (30,932,261)	$ (16,129,361)
Secured notes			7,600,000
Unsecured debt			3,600,000
Sale of unused net operating losses and research and development tax credits		$ 3,600,000
Proceeds from sale of net operating losses and research and development tax credits		$ 3,300,000	3,300,000
Proceeds from exercise of common stock warrants			58,278
Warrants
Liquidity [Line Items]
Proceeds from exercise of common stock warrants	$ 1,100,000		$ 1,100,000

Basis of Presentation and Sum_4

Basis of Presentation and Summary of Significant Accounting Policies (Details)	Mar. 15, 2019	Dec. 31, 2019USD ($)$ / sharesshares	Dec. 31, 2018USD ($)$ / sharesshares
Basis of Presentation and Summary of Significant Accounting Policies
Reverse stock split ratio	0.125
Basic and diluted earnings per share:
Net loss | $		$ (18,477,684)	$ (9,892,352)
Common stock outstanding (weighted average) | shares		29,901,285	9,843,540
Net loss per share of common stock, basic and diluted (in dollars per share) | $ / shares		$ (0.62)	$ (1)

Basis of Presentation and Sum_5

Basis of Presentation and Summary of Significant Accounting Policies - Potentially dilutive securities (Details) - shares	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Series A-1 convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	1,287,178	1,166,156
Convertible senior secured notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share		1,162,994
Performance-based stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	2,470	16,136
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share		7,457
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	1,791,500	386,247
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	5,559,763	5,661,015

Basis of Presentation and Sum_6

Basis of Presentation and Summary of Significant Accounting Policies - Additional information (Details) - USD ($)	Dec. 31, 2019	Oct. 01, 2019	Sep. 30, 2019
New accounting pronouncements
Operating lease right-of-use assets, net	$ 282,107
Operating leases, Lease obligation	335,625
Finance lease right-of-use assets, net	2,450,000
Finance leases, Lease obligation	13,177,846
Lease termination obligation	$ 3,923,913	$ 3,909,448	$ 3,909,448
ASU 2016-02 Leases | Restatement adjustment
New accounting pronouncements
Assumed discount rate (as a percent)		9.00%
Operating lease right-of-use assets, net		$ 352,172
Operating leases, Lease obligation		318,672
Deferred rent		33,500
Finance lease right-of-use assets, net		2,525,000
Finance leases, Lease obligation		$ 3,558,080

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Dec. 31, 2019	Sep. 30, 2019
Liabilities
Warrant liability	$ 54,356	$ 255,734
Fair value measurements recurring basis | Level 1
Liabilities
Fair value of liabilities	0	0
Fair value measurements recurring basis | Level 1 | Redemption feature
Liabilities
Derivative liability fair value	0	0
Fair value measurements recurring basis | Level 1 | Warrants
Liabilities
Derivative liability fair value	0	0
Fair value measurements recurring basis | Level 2
Liabilities
Fair value of liabilities	0	0
Fair value measurements recurring basis | Level 2 | Redemption feature
Liabilities
Derivative liability fair value	0	0
Fair value measurements recurring basis | Level 2 | Warrants
Liabilities
Derivative liability fair value	0	0
Fair value measurements recurring basis | Level 3
Liabilities
Fair value of liabilities	8,280,862	255,734
Fair value measurements recurring basis | Level 3 | Redemption feature
Liabilities
Derivative liability fair value	8,226,506	0
Fair value measurements recurring basis | Level 3 | Warrants
Liabilities
Derivative liability fair value	$ 54,356	$ 255,734

Fair Value Measurements - Chang

Fair Value Measurements - Changes in fair value (Details)	3 Months Ended
	Dec. 31, 2019USD ($)
Warrants
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning	$ 255,734
Change in fair value	(201,378)
Balance, ending	54,356
Redemption feature
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning	0
Issuance	8,264,451
Change in fair value	(37,945)
Balance, ending	$ 8,226,506

Fair Value Measurements - Assum

Fair Value Measurements - Assumptions (Details)	Dec. 31, 2019$ / sharesUSD ($)	Sep. 30, 2019$ / sharesUSD ($)
Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant inputs	1.70	1.56
Remaining contractual life of warrant
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant inputs	5.13	5.38
Remaining contractual life of warrant | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Redemption feature input	1
Remaining contractual life of warrant | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Redemption feature input	2
Expected volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant inputs	88	89
Redemption feature input	130
Annual dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant inputs	0	0
Fair value of common stock
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant inputs | $ / shares	0.59	1.49

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($)	Dec. 31, 2019	Sep. 30, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,227,437	$ 4,227,437
Less: accumulated depreciation and amortization	(640,253)	(1,051,477)
Property and equipment, net	587,184	3,175,960
Laboratory equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,067,351	1,067,351
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	160,086	160,086
Land and building
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 0	$ 3,000,000

Property and Equipment, Net - A

Property and Equipment, Net - Additional information (Details) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 63,776	$ 823,077
Finance leases, Right-of-use asset	$ 2,450,000
Finance leases, Weighted-average discount rate (as a percent)	41.80%
Finance lease accumulated amortization			$ 475,000
Impairment of property and equipment		2,349,403
Land and building
Property, Plant and Equipment [Line Items]
Finance leases, Right-of-use asset			$ 3,000,000
Finance leases, Weighted-average discount rate (as a percent)			43.90%
Construction in progress and laboratory equipment
Property, Plant and Equipment [Line Items]
Impairment of property and equipment		$ 2,349,403

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Dec. 31, 2019	Sep. 30, 2019
Accrued Expenses
Compensation	$ 969,399	$ 919,394
Severance and related costs	389,558	505,570
Research and development	2,765,669	1,692,040
Interest payable	23,125	934,145
Professional fees	285,747	419,216
Other accrued expenses	169,271	152,623
Accrued expenses, total	$ 4,602,769	$ 4,622,988

Debt (Details)

Debt (Details) - USD ($)	Dec. 31, 2019	Sep. 30, 2019
Debt Instrument [Line Items]
Senior secured notes	$ 7,065,928	$ 6,699,000
Convertible senior secured notes
Debt Instrument [Line Items]
Senior secured notes	7,589,027	6,699,000
Unamortized debt discount	(523,099)	0
Senior secured notes	$ 7,065,928	$ 6,699,000

Debt - Additional information (

Debt - Additional information (Details)	1 Months Ended	3 Months Ended
	Dec. 31, 2019USD ($)Ditem	Dec. 31, 2019USD ($)Ditem$ / shares	Dec. 31, 2018USD ($)	Sep. 30, 2019USD ($)
Debt Instrument [Line Items]
Convertible Senior Secured Notes.	$ 7,065,928	$ 7,065,928		$ 6,699,000
Redemption feature	8,226,506	8,226,506
Loss on extinguishment of debt		(8,060,580)
Stockholder notes	3,612,500	3,612,500		3,612,500
Convertible senior secured notes
Debt Instrument [Line Items]
Carrying value of notes exchanged	7,300,000
Convertible Senior Secured Notes.	7,065,928	7,065,928		$ 6,699,000
Bank exchange fee	$ 300,000	$ 300,000
Interest rate	12.00%	12.00%
Extension fee (as a percent)	3.00%	3.00%
Stock price threshold (as a percent)	90.00%
Number of lowest closing bid prices | item	2	2
Trading day threshold | D	20
Floor price | $ / shares		$ 0.232
Consecutive trading days | D	20	20
Redemption feature	$ 8,300,000	$ 8,300,000
Cash redemption	350,000	350,000
Loss on extinguishment of debt		(8,000,000)
Interest expense		201,521	$ 151,052
Restricted stock purchase notes
Debt Instrument [Line Items]
Stockholder notes	800,000	800,000
Common stock repurchase note
Debt Instrument [Line Items]
Stockholder notes	$ 2,812,500	$ 2,812,500

Other Indebtedness (Details)

Other Indebtedness (Details)	3 Months Ended
	Dec. 31, 2019USD ($)item$ / sharesshares	Dec. 31, 2018USD ($)	Sep. 30, 2019USD ($)	Mar. 07, 2019USD ($)
Debt Instrument [Line Items]
Total other indebtedness	$ 86,947		$ 1,076,453
Less: current portion	(48,936)		(1,026,168)
Long-term debt	38,011		50,285
Stockholder notes	3,612,500		3,612,500
Loss on extinguishment of debt	(8,060,580)
Unsecured notes
Debt Instrument [Line Items]
Total other indebtedness	$ 0		977,966	$ 1,947,133
Original principal amount				$ 1,000,000
Monthly stated interest rate				2.50%
Interest rate	12.00%
Conversion rate per share | $ / shares	$ 13.44
Stock price threshold (as a percent)	95.00%
Number of lowest closing bid prices | item	2
Trading day threshold	20
Carrying value of notes exchanged	$ 977,966
Accrued interest of notes exchanged	$ 570,460
Common stock issued up on conversion of stockholder notes (in shares) | shares	1,475,258
Weighted average exchange price (per share) | $ / shares	$ 1.10
Interest expense related to the stockholder notes	$ 12,997	$ 75,000
Equipment loan
Debt Instrument [Line Items]
Total other indebtedness	$ 86,947		$ 98,487

Leases - Lease cost (Details)

Leases - Lease cost (Details)	3 Months Ended
	Dec. 31, 2019USD ($)item
Lease cost
Amortization of right-of-use assets	$ 75,000
Interest on lease liabilities	372,223
Total finance lease cost	447,223
Operating lease cost	43,625
Total lease cost	$ 490,848
Land and building
Leases
Number of lease renewal options | item	2
Lessee, Finance Lease, Renewal Term	5 years
Finance lease interest (as a percent)	43.90%
Laboratory equipment | Minimum
Leases
Finance lease term	12 months
Finance lease interest (as a percent)	4.00%
Laboratory equipment | Maximum
Leases
Finance lease term	36 months
Finance lease interest (as a percent)	19.40%

Leases - Lease balance sheet (D

Leases - Lease balance sheet (Details)	Dec. 31, 2019USD ($)
Leases
Operating leases, Right-of-use asset	$ 282,107
Operating leases, Lease obligation	312,357
Finance leases, Right-of-use asset	2,450,000
Finance leases, Lease obligation	$ 3,517,114
Operating leases, Weighted-average remaining lease term	1 month 24 days
Finance leases, Weighted-average remaining lease term	7 months 21 days
Operating leases, Weighted-average discount rate (as a percent)	9.00%
Finance leases, Weighted-average discount rate (as a percent)	41.80%

Leases - Lease cashflow (Detail

Leases - Lease cashflow (Details) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Leases
Operating cash flows from finance leases	$ 358,159
Operating cash flows from operating leases	46,875
Financing cash flows from finance leases	$ 55,031	$ 231,221

Leases - Lease minimum payments

Leases - Lease minimum payments (Details)	Dec. 31, 2019USD ($)
Operating leases
2020 (remaining nine months)	$ 140,625
2021	195,000
2022	0
2023	0
2024	0
Thereafter	0
Total undiscounted lease payments	335,625
Less: Imputed interest	23,268
Total lease obligations	312,357
Finance leases
2020 (remaining nine months)	1,208,977
2021	1,518,146
2022	1,535,809
2023	1,564,028
2024	1,597,371
Thereafter	5,753,515
Total undiscounted lease payments	13,177,846
Less: Imputed interest	9,660,732
Total lease obligations	$ 3,517,114

Leases - Prior year minimum pay

Leases - Prior year minimum payments (Details)	Sep. 30, 2019USD ($)
Operating lease minimum payments
2020	$ 187,500
2021	195,000
Total operating lease obligations	382,500
Capital lease minimum payments
2020	1,608,067
2021	1,506,592
2022	1,535,809
2023	1,564,027
2024	1,593,291
Thereafter	5,691,492
Total undiscounted lease payments	13,499,278
Less: Imputed interest	9,941,198
Total capital lease obligations	$ 3,558,080

Leases - Lease termination (Det

Leases - Lease termination (Details) - USD ($)	1 Months Ended
	Aug. 31, 2018	Dec. 31, 2019	Oct. 01, 2019	Sep. 30, 2019
Leases
Consideration for termination of lease	$ 5,800,000
Amount of execution of termination agreement	287,615
Payment for lease per month	$ 50,000
Terms of payment for lease	30 months
Lease payment in any event	$ 4,000,000
Security deposit	$ 174,250
Lease termination payments included in other liabilities on the consolidated balance sheets		$ 3,923,913	$ 3,909,448	$ 3,909,448

Leases - Lease termination roll

Leases - Lease termination rollforward (Details)	3 Months Ended
	Dec. 31, 2019USD ($)
Lease termination obligation
Balance, beginning	$ 3,909,448
Expensed / Accrued Expense	164,465
Cash Payments	(150,000)
Balance, ending	$ 3,923,913

Common Stock, Convertible Pre_3

Common Stock, Convertible Preferred Stock and Stockholders' Equity (Deficit) - Stock (Details) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Jan. 27, 2020	Dec. 23, 2019	Apr. 12, 2019
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Number of share issued		1,608,234
Proceeds from the sale of common stock, net of offering costs		$ 11,885,833
Number of common stock called by warrants	5,559,763
Issuance of vested restricted stock units (in shares)	109	144
Gross cash proceeds		$ 12,000,000
Proceeds from issuance of private placement (net of issuance costs)		$ 11,800,000
Series A-1 Convertible Preferred Stock
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Number of share issued	1,287,178
Dividend rate	10.00%
Number of Series A convertible stock converted	68,112
Series A-1 authorized for issuance	200,000
Shares issued, price per share	$ 100
Preferred stock issued to settle dividends (in shares)	1,661	1,505
Percentage of stated value per share of preferred stock liquidation preference payable	550.00%
Percentage of accrued but unpaid preferred dividends	550.00%
Percentage increase in multiplier in case of deemed liquidation	600.00%
Warrants
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Number of share issued	8,345,562
Number of common stock called by warrants	10,427,388		4,657,852
Exercise price per share	$ 0.232		$ 0.232	$ 0.2320	$ 2.90
Warrant, 15 Months
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Number of common stock called by warrants	10,157,050

Common Stock, Convertible Pre_4

Common Stock, Convertible Preferred Stock and Stockholders' Equity (Deficit) - Warrants summary (Details)	3 Months Ended
	Dec. 31, 2019USD ($)$ / sharesshares
Class of Warrant or Right [Line Items]
Shares of common stock issuable upon exercise of warrants	5,559,763
Proceeds from exercise of common stock warrants | $	$ 58,278
February 18, 2022
Class of Warrant or Right [Line Items]
Shares of common stock issuable upon exercise of warrants	416,666
Exercise price per share | $ / shares	$ 12
December 22, 2024
Class of Warrant or Right [Line Items]
Shares of common stock issuable upon exercise of warrants	277,122
Exercise price per share | $ / shares	$ 12
April 13, 2025
Class of Warrant or Right [Line Items]
Shares of common stock issuable upon exercise of warrants	145,686
Exercise price per share | $ / shares	$ 12
May 31, 2025
Class of Warrant or Right [Line Items]
Shares of common stock issuable upon exercise of warrants	62,437
Exercise price per share | $ / shares	$ 12
October 31, 2025
Class of Warrant or Right [Line Items]
Shares of common stock issuable upon exercise of warrants	2,093,750
Exercise price per share | $ / shares	$ 7.20
May 10, 2026
Class of Warrant or Right [Line Items]
Shares of common stock issuable upon exercise of warrants	1,282,051
Exercise price per share | $ / shares	$ 7.80
June 8, 2026
Class of Warrant or Right [Line Items]
Shares of common stock issuable upon exercise of warrants	1,282,051
Exercise price per share | $ / shares	$ 7.80

Common Stock, Convertible Pre_5

Common Stock, Convertible Preferred Stock and Stockholders' Equity (Deficit) - Warrants (Details) - $ / shares	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Jan. 27, 2020	Dec. 23, 2019	Apr. 12, 2019
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Shares of common stock issuable upon exercise of warrants	5,559,763
Number of share issued		1,608,234
Warrants
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Shares of common stock issuable upon exercise of warrants	10,427,388		4,657,852
Exercise price per share	$ 0.232		$ 0.232	$ 0.2320	$ 2.90
Number of share issued	8,345,562
Warrant expired (in shares)	80,797
Warrants expired (in dollars per share)	$ 0.08
Warrant, 15 Months
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Warrant term				15 months
Shares of common stock issuable upon exercise of warrants	10,157,050
Warrant, 5 Years
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Warrant term				5 years

Stock-Based Compensation - Expe

Stock-Based Compensation - Expense (Details) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 359,477	$ 872,289
Accrued directors' fees settled in fully vested stock options		49,121
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	107,790	91,209
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 251,687	$ 781,080

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock option activity (Details)	3 Months Ended
	Dec. 31, 2019$ / sharesshares
Number of Shares
Balance, Beginning | shares	1,389,999
Granted | shares	558,084
Forfeited | shares	(156,583)
Balance, Ending | shares	1,791,500
Vested and exercisable | shares	245,111
Vested and expected to vest | shares	1,791,500
Weighted Average Exercise Price
Balance, Beginning | $ / shares	$ 3.46
Granted | $ / shares	1.40
Forfeited | $ / shares	3.02
Balance, Ending | $ / shares	2.85
Vested and exercisable | $ / shares	4.63
Vested and expected to vest | $ / shares	$ 2.85
Weighted Average Remaining Contractual Term (Years)
Balance	9 years 8 months 12 days
Vested and exercisable	8 years 7 months 6 days
Vested and expected to vest	9 years 8 months 12 days

Stock-Based Compensation - Opti

Stock-Based Compensation - Option Assumptions (Details) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 3,306,331
Weighted average period of unrecognized compensation expense that is expected to be recognized	2 years 11 months 16 days
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value	$ 0
Weighted average grant date fair value of the options awarded to employees	$ 0.99	$ 5.16
Risk-free interest rate	1.36%		2.02%
Expected life (years)	5 years 4 months 2 days		6 years 1 month 21 days
Expected volatility	88.60%		92.70%
Expected dividend yield	0.00%		0.00%

Stock-Based Compensation - Perf

Stock-Based Compensation - Performance-Based (Details) - Performance-based stock units	3 Months Ended
	Dec. 31, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of award	10 years
Number of PSUs
Balance, Beginning | shares	15,691
Forfeitures | shares	13,221
Balance, Ending | shares	2,470
Vested and exercisable at December 31, 2019 | shares	2,470
Vested and expected to vest at December 31, 2019 | shares	2,470
Weighted Average Base Price Per Unit
Balance, Beginning | $ / shares	$ 49.97
Forfeitures | $ / shares	50.60
Balance, Ending | $ / shares	49.97
Vested and exercisable | $ / shares	49.97
Vested and expected to vest | $ / shares	$ 49.97
Weighted Average Remaining Contractual Term (Years)
Balance at December 31, 2019	4 years 8 months 12 days
Vested and exercisable at December 31, 2019	4 years 8 months 12 days
Vested and expected to vest at December 31, 2019	4 years 8 months 12 days

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted stock (Details)	3 Months Ended
	Dec. 31, 2019$ / sharesshares
Weighted Average Grant Date Fair Value
Weighted-average period for recognition of unamortized expense	2 years 11 months 16 days
Restricted stock units
Number of RSUs
Balance, Beginning | shares	109
Vested and settled | shares	(109)
Balance, Ending | shares	0
Weighted Average Grant Date Fair Value
Balance, Beginning | $ / shares	$ 150.24
Vested and settled | $ / shares	150.24
Balance, Ending | $ / shares	$ 0

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional information (Details)	3 Months Ended
	Dec. 31, 2019shares
Performance-based stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of award	10 years
2011 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock reserved for issuance	106,490
2011 Equity Incentive Plan | Performance-based stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding	2,470
2015 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of common stock authorized for issuance	2,869,598
Number of shares available for grant	908,449
Term of award	10 years
2015 Equity Incentive Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
2015 Equity Incentive Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years

Related-Party Transactions (Det

Related-Party Transactions (Details) - MTTR, LLC (“MTTR”) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Related Party Transaction [Line Items]
Related party expense	$ 611,424	$ 290,480
Due to related party, current	$ 421,354		$ 365,301

Subsequent Event (Details)

Subsequent Event (Details) - USD ($)	Jan. 27, 2020	Dec. 31, 2019	Dec. 31, 2018	Jan. 26, 2020
Subsequent Event
Shares issued during period			1,608,234
Series A-1 Convertible Preferred Stock
Subsequent Event
Number of stock converted		68,112
Shares issued during period		1,287,178
Subsequent Event | MTTR, LLC (“MTTR”)
Subsequent Event
Shares issued during period	7,244,739
Contract termination settlement fee	$ 110,000
Subsequent Event | Series A-1 Convertible Preferred Stock
Subsequent Event
Effective conversion rate	$ 431.03447263			$ 18.89797
Shares issued upon conversion	29,358,621
Number of stock converted	68,112
Convertible stock conversion rate (in dollars per share)	$ 0.232
Current redemption premium	$ 37,500,000
Liquidation preference	$ 40,900,000