Applied DNA Sciences (APDN) 10-K 12 Dec 19 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2019	Dec. 06, 2019	Mar. 31, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	APPLIED DNA SCIENCES INC
Entity Central Index Key	0000744452
Trading Symbol	apdn
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--09-30
Entity Filer Category	Non-accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding		3,485,399
Entity Public Float			$ 21
Document Type	10-K
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Current assets:
Cash and cash equivalents	$ 558,988	$ 1,659,564
Accounts receivable, net of allowance of $4,500 and $13,133 at September 30, 2019 and 2018, respectively	839,951	1,485,938
Inventories	142,629	221,369
Prepaid expenses and other current assets	604,740	635,174
Total current assets	2,146,308	4,002,045
Property and equipment, net	226,221	419,774
Other assets:
Deferred offering costs	109,698
Deposits	62,351	62,325
Goodwill	285,386	285,386
Intangible assets, net	734,771	864,203
Total Assets	3,564,735	5,633,733
Current liabilities:
Accounts payable and accrued liabilities (including related party of $5,844 at September 30, 2018)	1,616,997	965,167
Deferred revenue	628,993	1,856,693
Total current liabilities	2,245,990	2,821,860
Long term accrued liabilities	621,970	470,739
Secured convertible notes payable, net of debt issuance costs (including related party of $1,139,490 at September 30, 2018)	1,442,497	1,586,631
Secured convertible notes payable, recorded at fair value	102,777
Total liabilities	4,413,234	4,879,230
Commitments and contingencies
Applied DNA Sciences, Inc. Stockholders' (Deficit) Equity:
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0 shares issued and outstanding as of September 30, 2019 and 2018
Common stock, par value $0.001 per share; 500,000,000 shares authorized; 35,612,057 and 30,112,057 shares issued and outstanding as of December 31, 2018 and September 30, 2018, respectively	1,200	753
Additional paid in capital	255,962,930	249,119,833
Accumulated deficit	(256,805,589)	(248,366,083)
Applied DNA Sciences, Inc.'s stockholders' (deficit) equity	(841,459)	754,503
Noncontrolling interest	(7,040)
Total (deficit) equity	(848,499)	754,503
Total Liabilities and (Deficit) Equity	3,564,735	5,633,733
Series A Preferred Stock [Member]
Applied DNA Sciences, Inc. Stockholders' (Deficit) Equity:
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0 shares issued and outstanding as of September 30, 2019 and 2018
Series B Preferred Stock [Member]
Applied DNA Sciences, Inc. Stockholders' (Deficit) Equity:
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0 shares issued and outstanding as of September 30, 2019 and 2018

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Allowance on accounts receivable (in dollars)	$ 4,500	$ 13,133
Accounts payable and accrued liabilities, related parties (in dollars)		5,844
Convertible notes payable, related parties (in dollars)		$ 1,139,490
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	1,200,399	752,802
Common stock, shares outstanding	1,200,399	752,802
Series A Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Total revenues	$ 5,389,089	$ 3,903,343
Cost of revenues	877,613	1,206,814
Operating expenses:
Selling, general and administrative	10,278,045	11,043,463
Research and development	2,967,278	2,751,578
Depreciation and amortization	390,424	547,796
Total operating expenses	13,635,747	14,342,837
LOSS FROM OPERATIONS	(9,124,271)	(11,646,308)
Other (expense) income:
Interest (expense) income, net (including related party interest of $46,586 and $5,844 for the years ended September 30, 2019 and 2018, respectively)	(162,432)	(9,615)
Other expense, net	(43,299)	(37,005)
Loss on extinguishment of debt	(1,260,399)	0
Unrealized gain on change in fair value of secured convertible notes payable	1,972,955	0
Loss before provision for income taxes	(8,617,446)	(11,692,928)
Provision for income taxes	15,000	0
NET LOSS	(8,632,446)	(11,692,928)
Less: Net loss attributable to noncontrolling interest	9,323	0
NET LOSS attributable to Applied DNA Sciences, Inc.	(8,623,123)	(11,692,928)
Deemed dividend related to warrant modifications	(309,607)	0
NET LOSS applicable to common stockholders	$ (8,932,730)	$ (11,692,928)
Net loss per share applicable to common stockholders-basic and diluted	$ (9.69)	$ (15.86)
Weighted average shares outstanding-basic and diluted (in shares)	921,809	737,441
Product
Revenues:
Total revenues	$ 2,136,055	$ 1,827,626
Service
Revenues:
Total revenues	$ 3,253,034	$ 2,075,717

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS (Parentheticals) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS
Interest (expense) income, related party interest	$ 46,586	$ 5,844

CONSOLIDATED STATEMENTS OF (DEF

CONSOLIDATED STATEMENTS OF (DEFICIT) EQUITY - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Noncontrolling Interest [Member]	Total
Balance at Sep. 30, 2017	$ 684	$ 243,530,551	$ (236,673,155)	$ 0	$ 6,858,080
Balance (in shares) at Sep. 30, 2017	684,427
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued in private placement, net of offering costs	$ 69	4,232,931	0	0	4,233,000
Common stock issued in private placement, net of offering costs (in shares)	68,375
Stock based compensation expense	$ 0	1,356,351	0	0	1,356,351
Net loss	0	0	(11,692,928)	0	(11,692,928)
Balance at Sep. 30, 2018	$ 753	249,119,833	(248,366,083)	0	$ 754,503
Balance (in shares) at Sep. 30, 2018	752,802				752,802
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued in public offering, net of offering costs	$ 150	2,463,441	0	0	$ 2,463,591
Common stock issued in public offering, net of offering costs (in shares)	150,000
Common stock issued in private placement, net of offering costs	$ 39	402,342	0	0	402,381
Common stock issued in private placement, net of offering costs (in shares)	38,704
Exercise of warrants	$ 55	987,446	0	0	987,501
Exercise of warrants (in shares)	55,376
Exercise of warrants cashlessly	$ 100	(100)	0	0	0
Exercise of warrants cashlessly (in shares)	100,617
Common stock issued in secured convertible note conversion	$ 103	1,440,402	0	0	1,440,505
Common stock issued in secured convertible note conversion (in shares)	102,900
Deemed dividend - warrant repricing	$ 0	309,607	(309,607)	0
Investment in LineaRx, Inc.	0	110,849	0	2,283	113,132
Impact of adoption of new accounting pronouncements included in accumulated deficit	0	0	493,224	0	493,224
Stock based compensation expense	0	1,129,110	0	0	1,129,110
Net loss	0	0	(8,623,123)	(9,323)	(8,632,446)
Balance at Sep. 30, 2019	$ 1,200	$ 255,962,930	$ (256,805,589)	$ (7,040)	$ (848,499)
Balance (in shares) at Sep. 30, 2019	1,200,399				1,200,399

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net loss	$ (8,632,446)	$ (11,692,928)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	390,424	547,796
Loss on extinguishment of debt	1,260,399	0
Unrealized gain on change in fair value of senior secured convertible notes	(1,972,955)	0
Stock based compensation expense	1,129,110	1,356,351
Non-cash in process research and development	251,420	0
Amortization of debt issuance costs	23,828	1,479
Provision for bad debts	7,624	20,552
Change in operating assets and liabilities:
Accounts receivable	638,339	1,081,480
Inventories	78,740	105,099
Prepaid expenses, other current assets and deposits	23,767	(268,920)
Accounts payable and accrued liabilities	667,898	426,924
Deferred revenue	(727,920)	1,504,958
Net cash used in operating activities	(6,861,772)	(6,917,209)
Cash flows from investing activities:
Purchases of property and equipment	(67,438)	(266,008)
Net cash used in investing activities	(67,438)	(266,008)
Cash flows from financing activities:
Proceeds from secured convertible notes payable (including related parties of $550,000 and $1,185,000 for the years ended September 30, 2019 and 2018, respectively)	1,985,392	1,650,000
Net proceeds from sale of common stock and warrants	2,463,591	4,233,000
Net proceeds from private placement	402,381	0
Proceeds from exercise of warrants	987,501	0
Capitalized offering costs	(10,231)	0
Net cash provided by financing activities	5,828,634	5,883,000
Net decrease in cash and cash equivalents	(1,100,576)	(1,300,217)
Cash and cash equivalents at beginning of year	1,659,564	2,959,781
Cash and cash equivalents at end of year	558,988	1,659,564
Supplemental Disclosures of Cash Flow Information:
Cash paid during year for interest	0	0
Cash paid during year for income taxes	0	0
Non-cash investing and financing activities:
Public offering costs included in accounts payable and accrued liabilities	99,468	64,848
Deemed dividend-warrant repricing	309,607	0
Interest paid in kind (related party of $98,752)	126,980	0
Impact of adoption of new accounting pronouncements included in accumulated deficit	493,223	0
Warrants exercised cashlessly	100	0
Conversion of notes payable	$ 1,440,505	$ 0

CONSOLIDATED STATEMENT OF CAS_2

CONSOLIDATED STATEMENT OF CASH FLOWS (Parentheticals) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED STATEMENT OF CASH FLOWS
Proceeds from senior convertible notes payable, related party	$ 550,000	$ 1,185,000
Interest paid in kind, related party	$ 98,752	$ 98,752

LIQUIDITY AND MANAGEMENT'S PLAN

LIQUIDITY AND MANAGEMENT'S PLAN	12 Months Ended
	Sep. 30, 2019
LIQUIDITY AND MANAGEMENT'S PLAN
LIQUIDITY AND MANAGEMENT'S PLAN	NOTE A – LIQUIDITY AND MANAGEMENT’S PLAN Applied DNA Sciences, Inc. (the “Company”) has recurring net losses, which have resulted in an accumulated deficit of $256,805,589 as of September 30, 2019. The Company incurred a net loss of $8,632,446 and generated negative operating cash flow of $6,861,772 for the fiscal year ended September 30, 2019. At September 30, 2019 the Company had cash and cash equivalents of $558,988 and working capital deficit of $99,682. The Company’s current capital resources include cash and cash equivalents, accounts receivable and inventories. The Company expects to finance its operations primarily through cash received from the November 2019 underwritten public offering, discussed below, as well as collection of its accounts receivable. The Company estimates that it will have sufficient cash and cash equivalents to fund operations for the next twelve months from the date of filing of this annual report. Historically, the Company has financed its operations principally from the sale of equity and equity-linked securities. As discussed in Note H, on November 15, 2019 the Company closed on an underwritten public offering of 2,285,000 shares of common stock and warrants to purchase up to an aggregate of 2,285,000 shares of common stock. Each share of common stock was sold together with one warrant to purchase one share of common stock at a combined effective price to the public of $5.25 per share and accompanying warrant. Gross proceeds, before underwriting discounts and commissions and estimated offering expenses, were approximately $12.0 million. After deducting underwriting discounts and commissions and other estimated offering expenses total expected net proceeds are $10.8 million. The Company has granted the underwriters a 45-day option to purchase up to an additional 342,750 shares of common stock and/or warrants to purchase up to 342,750 shares of common stock, at the public offering price less discounts and commissions. The Company may require additional funds to complete the continued development of its products, product manufacturing, and to fund expected additional losses from operations until revenues are sufficient to cover its operating expenses. If revenues are not sufficient to cover the Company's operating expenses, and if it is not successful in obtaining the necessary additional financing, the Company will most likely be forced to reduce operations.

SUMMARY OF ACCOUNTING POLICIES

SUMMARY OF ACCOUNTING POLICIES	12 Months Ended
	Sep. 30, 2019
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES	NOTE B – SUMMARY OF ACCOUNTING POLICIES Business and Basis of Presentation On September 16, 2002, the Company was incorporated under the laws of the State of Nevada. Effective December 2008, the Company reincorporated from the State of Nevada to the State of Delaware. The Company is principally devoted to developing and marketing linear DNA technology solutions in the United States, Europe and Asia. To date, the Company has produced limited recurring revenues from its products and services; it has incurred expenses and has sustained losses. Consequently, its operations are subject to all the risks inherent in the establishment and development of a biotechnology company. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, APDN (B.V.I.) Inc., Applied DNA Sciences Europe Limited, Applied DNA Sciences India Private Limited and its majority – owned subsidiary, LineaRx, Inc. (“LRx”). Applied DNA Sciences India Private Limited was incorporated in India on June 22, 2018 and LineaRx, Inc. was incorporated in Delaware on September 11, 2018. Significant inter-company transactions and balances have been eliminated in consolidation. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year’s presentation. On October 31, 2019, the Company filed a Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware that effected a one-for-forty (1:40) reverse stock split of its common stock, par value $.001 per share, effective November 1, 2019. All warrant, option, share, and per share information in the consolidated financial statements gives retroactive effect to a one-for-forty reverse stock split that was affected on November 1, 2019. Use of Estimates The preparation of the financial statements in conformity with Accounting Principles Generally Accepted in the U.S. (“GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The most complex and subjective estimates include revenue recognition, recoverability of long-lived assets, including the values assigned to goodwill, intangible assets and property and equipment, fair value calculations for stock based compensation and convertible promissory notes, contingencies, allowance for doubtful accounts and management’s anticipated liquidity. Management reviews its estimates on a regular basis and the effects of any material revisions are reflected in the consolidated financial statements in the period they are deemed necessary. Accordingly, actual results could differ from those estimates. Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued accounting standard updates which clarified principles for recognizing revenue arising from contracts with customers ("ASC 606" or "Topic 606") and superseded most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue standard is that an entity recognizes revenue to depict the transfer of promised goods or services to clients in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance applies a five-step model for revenue measurement and recognition and also requires increased disclosures including the nature, amount, timing, and uncertainty of revenue and cash flows related to contracts with clients. The Company adopted the new revenue standard at the beginning of the first quarter of fiscal 2019, using the modified retrospective method of adoption and applied the guidance to those contracts that were not completed as of September 30, 2018. Comparative financial information for reporting periods beginning prior to October 1, 2018, has not been restated and continues to be reported under the previous reporting guidance. Under the modified retrospective method of adoption, the cumulative effect of applying the new standard is recorded at the date of initial application, with no restatement of the comparative prior periods presented. Based on the evaluation, the Company has identified certain customer contracts, which required different recognition under the new guidance. The Company has determined that the revenue under certain of its research and development contracts should be recognized on an over time basis using the input method as compared to ratably over the contract term. Also, the shipment to the Company's cotton customer during fiscal 2018 that included extended payment terms and was included in deferred revenue as of September 30, 2018, would have met the criteria under the new guidance to be recognized as revenue upon shipment. The Company has determined that the cumulative adjustment to opening retained earnings in fiscal 2019 was approximately $493,000. The Company measures revenue at the amounts that reflect the consideration to which it is expected to be entitled in exchange for transferring control of goods and services to customers. The Company recognizes revenue either at the point in time or over the period of time that performance obligations to customers are satisfied. The Company's contracts with customers may include multiple performance obligations (e.g. taggants, maintenance, authentication services, research and development services, etc.). For such arrangements, the Company allocates revenues to each performance obligation based on their relative standalone selling price. Under the new accounting guidance, the Company recognizes revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration it expects to receive for those goods or services, including any variable consideration. Due to the short-term nature of the Company's contracts with customers, it has elected to apply the practical expedients under Topic 606 to: (1) expense as incurred, incremental costs of obtaining a contract and (2) not adjust the consideration for the effects of a significant financing component for contracts with an original expected duration of one year or less. Impact of Adoption A summary and discussion of such cumulative effect adjustment and the impact on current period financial statements of adopting Topic 606 is as follows: Fiscal Year ended September 30, 2019 Prior U.S. GAAP Topic 606 impact As reported Statement of Operations Revenues Product $ 2,902,247 $ (766,192) $ 2,136,055 Service 3,402,138 (149,104) 3,253,034 Total revenues 6,304,385 (915,296) 5,389,089 Cost of revenues 884,281 (6,668) 877,613 Loss from operations (8,215,643) (908,628) (9,124,271) Assets Prepaids and other current assets $ 611,408 $ (6,668) $ 604,740 Liabilities and (deficit) equity Deferred Revenue $ 802,107 $ (173,114) $ 628,993 Accumulated Deficit (256,805,589) — (256,805,589) Product Revenues and Authentication Services The Company’s PCR-produced linear DNA products, including molecular taggants are manufactured in accordance with contracts with customers. The Company recognizes revenue upon satisfying its promises to transfer goods or services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company transfers control of the goods to the customer, which in nearly all cases is when title to and risk of loss of the goods transfer to the customer. The timing of transfer of title and risk of loss is dictated by customary or explicitly stated contract terms. The Company does not consider payment terms a performance obligation for customers with contractual terms that are one year or less and has elected the practical expedient. Nearly all of the Company’s sales contracts reflect market pricing at the time the contract is executed, are one year or less, and generally provide for shipment within 30 to 60 days after the price has been agreed upon with the customer. We invoice customers upon shipment, and our collection terms range, on average from 30-60 days The cotton ginning season in the United States takes place between September and March each year; therefore, revenues from these customer contracts may be seasonal and recognized primarily during the first and fourth quarters of the Company’s fiscal year. Authentication Services The Company recognizes revenue for authentication services upon satisfying its promises to provide services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company services are complete, which in nearly all cases is when the authentication report is released to the customer. Research and Development Services The Company records revenue for its research and development contracts using the over-time revenue recognition model. Revenue is primarily measured using the cost-to-cost method, which the Company believes best depicts the transfer of control to the customer. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the identified performance obligation. Revenues are recorded proportionally as costs are incurred. For contracts where the total costs cannot be estimated, revenues are recognized for the actual costs incurred during a period until the remaining costs to complete a contract can be estimated. The Company has elected to not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Disaggregation of Revenue The following table presents revenues disaggregated by our business operations and timing of revenue recognition: Fiscal Years Ended: September 30, 2019 2018 Research and development services (over-time) $ 2,975,961 $ 1,766,202 Product and authentication services (point-in-time): Supply chain 1,438,106 674,224 Asset marking 587,012 1,002,934 Large scale DNA production 388,010 459,983 Total $ 5,389,089 $ 3,903,343 Contract balances As of September 30, 2019, the Company has entered into contracts with customers for which revenue has not yet been recognized. Consideration received from a customer prior to revenue recognition is recorded to a contract liability and is recognized as revenue when the Company satisfies the related performance obligations under the terms of the contract. The Company’s contract liabilities, which are reported as deferred revenue on the consolidated balance sheet, consist almost entirely of research and development contracts where consideration has been received and the development services have not yet been fully performed. The opening and closing balances of the Company’s contract balances are as follows: October 1, September 30, $ Balance sheet classification 2018 2019 change Contract liabilities Deferred revenue $ 1,356,502 $ 628,993 $ (727,509) For the fiscal year ended September 30, 2019, the Company recognized $1,224,331 of revenue that was included in Contract liabilities as of October 1, 2018. Cash Equivalents For the purpose of the accompanying consolidated financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. Accounts Receivable The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts may change. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company classifies receivable amounts as current or long-term based on expected payment and records long-term accounts receivable when the collection period is expected to be greater than one year. At September 30, 2019 and 2018, the Company has an allowance for doubtful accounts of $4,500 and $13,133, respectively. The Company writes-off receivables that are deemed uncollectible. Inventories Inventories, which consist primarily of raw materials and finished goods, is stated at the lower of cost or net realizable value, with cost determined by using the first-in, first-out (FIFO) method. Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740‑10”) which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes include, but not limited to, accounting for intangibles, equity based compensation and depreciation and amortization. The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all of the deferred tax asset will not be realized. During the fiscal years ended September 30, 2019 and 2018, the Company incurred losses from operations. Based upon these results and the trends in the Company’s performance projected for fiscal year 2019, it is more likely than not that the Company will not realize any benefit from the deferred tax assets recorded by the Company in previous periods. Management makes judgments as to the interpretation of tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. The Company has identified its federal tax return and its state tax return in New York as “major” tax jurisdictions. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s consolidated financial statements. The Company believes that its income tax positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to its financial position. It is the Company’s policy to accrue interest and penalties on unrecognized tax benefits as components of income tax provision. The Company did not have any accrued interest or penalties as of September 30, 2019 and 2018. Tax years 2015 through 2018 remain subject to future examination by the applicable taxing authorities. Property and Equipment Property and equipment are stated at cost and depreciated using the straight line method over their estimated useful lives. The estimated useful life for computer equipment, lab equipment and furniture is 3 years and leasehold improvements are amortized over the shorter of their useful life or the remaining lease terms. Property and equipment consist of: September 30, 2019 2018 Computer equipment $ 265,542 $ 135,621 Lab equipment 1,885,487 1,951,955 Furniture 74,781 74,781 Leasehold improvements 293,672 293,672 Total 2,519,482 2,456,029 Accumulated depreciation 2,293,261 2,036,255 Property and equipment, net $ 226,221 $ 419,774 Depreciation expense for the fiscal years ended September 30, 2019 and 2018 were $260,992 and $369,924, respectively. Impairment of Long-Lived Assets The Company evaluates its long lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of long-lived assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. Net Loss per Share The Company presents loss per share utilizing a dual presentation of basic and diluted loss per share. Basic loss per share includes no dilution and has been calculated based upon the weighted average number of common shares outstanding during the period. Dilutive common stock equivalents consist of shares issuable upon the exercise of the Company’s stock options and warrants. For the fiscal years ended September 30, 2019 and 2018, common stock equivalent shares are excluded from the computation of the diluted loss per share as their effect would be anti-dilutive. Securities that could potentially dilute basic net income per share in the future that were not included in the computation of diluted net loss per share because to do so would have been antidilutive for the fiscal years ended September 30, 2019 and 2018 are as follows: 2019 2018 Warrants 263,592 305,217 Options 199,395 154,581 Secured convertible note 74,282 16,500 573,269 476,298 Stock-Based Compensation The Company accounts for stock-based compensation for employees, directors and nonemployees in accordance with ASC 718, Compensation (“ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statement of operations based on their fair values. Under the provisions of ASC 718, stock-based compensation costs are measured at the grant date, based on the fair value of the award, and are recognized as expense over the employee’s requisite service period (generally the vesting period of the equity grant). The fair value of the Company’s common stock options are estimated using the Black Scholes option-pricing model with the following assumptions: expected volatility, dividend rate, risk free interest rate and the expected life. The Company expenses stock-based compensation by using the straight-line method. In accordance with ASC 718 and, excess tax benefits realized from the exercise of stock-based awards are classified as cash flows from operating activities. All excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) are recognized as income tax expense or benefit in the condensed consolidated statements of operations. Concentrations Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and cash equivalents with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. The Company’s revenues earned from sale of products and services for the fiscal year ended September 30, 2019 included an aggregate of 27%, 26% and 15%, respectively from three customers. The Company’s revenues earned from sale of products and services for the fiscal year ended September 30, 2018 included an aggregate of 24%, 16%, 14% and 11%, respectively from four customers. One customer accounted for 77% of the Company's accounts receivable at September 30, 2019 and one customer accounted for an aggregate of 80% of the Company’s total accounts receivable at September 30, 2018. Research and Development The Company accounts for research and development costs in accordance with the ASC 730, Research and Development (“ASC 730”). Under ASC 730, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. During the fiscal years ended September 30, 2019 and 2018, the Company incurred research and development expenses of $2,967,278 and $2,751,578, respectively. Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations approximately $133,000 and $287,156, as advertising costs for the fiscal years ended September 30, 2019 and 2018, respectively. Goodwill and Other Intangible Assets The Company amortizes its intangible assets using the straight-line method over their estimated period of benefit. All of the Company’s intangible assets, except for goodwill are subject to amortization. Goodwill arises as a result of business acquisitions. Goodwill consists of the excess of the cost of the acquisitions over the tangible and intangible assets acquired and liabilities assumed. The Company evaluates goodwill for impairment at least annually. The Company qualitatively and quantitatively determines whether, more likely than not, the fair value exceeds the carrying amount of a reporting unit. There are numerous assumptions and estimates underlying the quantitative assessments including future earnings, long-term strategies, and the Company’s annual planning and forecasts. If these planned initiatives do not accomplish the targeted objectives, the assumptions and estimates underlying the quantitative assessments could be adversely affected and have a material effect upon the Company’s financial condition and results of operations. As of September 30, 2019 and 2018, the Company performed its qualitative assessment of goodwill and indicated that there was no impairment. Internally Developed Software Internally developed software products, consist of capitalized costs associated with the development of computer software to be sold, leased or otherwise marketed. Software development costs associated with new products are expensed as incurred until technological feasibility, as defined in FASB ASC Topic 985‑20, has been established. Costs incurred thereafter are capitalized until the product is made generally available. The stage during the Company’s development process for a new product or new release at which technological feasibility requirements are established affects the amount of costs capitalized. Annual amortization of internally developed software products is the greater of the amount computed using the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product or the straight-line method over the remaining estimated economic life of the software product, generally estimated to be 3 years from the date the product became available for general release to customers. The Company generally recognizes amortization expense for capitalized software costs using the straight-line method. Internally developed software products are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and its carrying amount exceeds its fair value. Convertible Instruments The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with ASC 470‑20, Debt with Conversion and Other Options. Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their earliest date of redemption. Fair Value of Financial Instruments The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related asset or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. The Company utilizes observable market inputs (quoted market prices) when measuring fair value whenever possible. For fair value measurements categorized within Level 3 of the fair value hierarchy, the Company’s accounting and finance department, who report to the Chief Financial Officer, determine its valuation policies and procedures. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s accounting and finance department and are approved by the Chief Financial Officer. As of September 30, 2019, there were no transfers between Levels 1, 2 and 3 of the fair value hierarchy. Summary of Significant Valuation Techniques Level 3 Measurements: Secured convertible notes payable : For the Existing Notes (as defined in Note G), the Company has elected to record them at fair value. The fair value for the Existing Notes is estimated using the Monte Carlo simulation model. Significant observable and unobservable inputs include stock price, conversion price, annual risk free rate, term, likelihood of an event of default, and expected volatility. An increase or decrease in these inputs could significantly increase or decrease the fair value of the secured convertible notes payable. See Note G. Recently Issued Accounting Standards In November 2018, the FASB issued ASU 2018‑18," Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606” (“ASU 2018‑18”). The amendments in this update clarify that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606. ASU 2018‑18 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact of ASU 2018‑18 on its consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation – “Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting”, which addresses aspects of the accounting for nonemployee share-based payment transactions. This pronouncement is effective for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The Company early adopted ASU 2018-07 on October 1, 2018 using the modified retrospective transition approach. The cumulative -effect adjustment to opening retained earnings was not material. In July 2017, the FASB issued a two-part ASU No. 2017‑11, I. Accounting for Certain Financial Instruments With Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests With a Scope Exception (“ASU 2017‑11”). ASU 2017‑11 amends guidance in FASB ASC 260, Earnings Per Share, FASB ASC 480, Distinguishing Liabilities from Equity, and FASB ASC 815, Derivatives and Hedging. The amendments in Part I of ASU 2017‑11 change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The amendments in Part II of ASU 2017‑11 re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. ASU 2017‑11 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company adopted ASU 2017-11 during the fiscal year ended September 30, 2019. The effect of adoption was $0.34 per share to basic and diluted earnings per share. In May 2017, FASB issued ASU No. 2017-09, Compensation – “Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”) , which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. This pronouncement is effective for annual reporting periods and interim periods within those annual periods beginning after December 15, 2017. Early adoption is permitted. The Company adopted ASU 2017-09 during the fiscal year ended September 30, 2019 and it did not have a material impact on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The purpose of the amendment is to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. For public entities, the amendments in ASU 2017-04 are effective for interim and annual reporting periods beginning after December 15, 2019. The Company is currently assessing the impact of ASU 2017-04 on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. The Company is currently evaluating the new guidance and does not expect the adoption to have a significant impact on its consolidated financial statements, as the Company does not currently have any long-term lease obligations.

INVENTORIES

INVENTORIES	12 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
INVENTORIES	NOTE C – INVENTORIES Inventories consist of the following at September 30, 2019 and 2018: 2019 2018 Raw materials $ 87,886 $ 147,984 Finished goods 54,743 73,385 Total $ 142,629 $ 221,369

ASSET PURCHASE AGREEMENT

ASSET PURCHASE AGREEMENT	12 Months Ended
	Sep. 30, 2019
ASSET PURCHASE AGREEMENT
ASSET PURCHASE AGREEMENT	NOTE D – ASSET PURCHASE AGREEMENT During August 2019, LRx entered into an Asset Purchase Agreement (the “Vitatex Agreement”) with Vitatex, Inc. (“Vitatex”), providing for the purchase of substantially all of the assets of Vitatex (“Vitatex Assets”). The Vitatex assets relate to the business of an early stage private biotechnology company focused on advancing personalized medicine with a potential solution that isolates Invasive Circulating Tumor Cells (“iCTCs”) from standard patient blood samples. The acquisition of the Vitatex Assets was completed in August 2019. The Vitatex Assets include physical assets, such as laboratory equipment, as well as registered trademarks and other intellectual property. The Vitatex Assets also include Vitatex’s rights under an exclusive patent license agreement between The Research Foundation for the State University of New York (the “Research Foundation”) and Vitatex. The Company did not assume any liabilities of Vitatex. In connection with the acquisition of the Vitatex Assets, the Company entered into the Amended and Restated Exclusive License Agreement with the Research Foundation and Vitatex on August 7, 2019, pursuant to which the Company assumed the rights to a global patent portfolio covering the iCTC technology. The purchase price for the Vitatex Assets consisted of $500,000 in cash and common stock of LRx and up to an additional $500,000 of LRx common stock as performance-based contingent consideration. Of this amount, (i) an initial payment comprised of $300,000 in shares of common stock of LRx made to the shareholders of Vitatex, (ii) $100,000 in cash must be paid to Vitatex on or before September 30, 2019, subject to adjustment as provided below, and (iii) $100,000 in cash must be paid to Vitatex on or before December 31, 2019. The purchase price was reduced by an amount equal to any payment required to be made by LRx to pay off and satisfy Vitatex’s outstanding cash and/or equity obligations owed to the Research Foundation under the License Agreement as delineated in the Restated License Agreement. Pursuant to the Restated License Agreement, LRx paid $11,710 in cash to the Research Foundation, thereby reducing the cash payment due to Vitatex before September 30, 2019 to $88,290. In addition, the shareholders of Vitatex are also entitled to additional performance-based equity distributions of up to $500,000 in shares of common stock of LRx with (i) $250,000 of LRx common stock that was paid upon the occurrence of LRx completing certain National Cancer Institute Small Business Innovation Research program filings, (ii) $100,000 of LRx common stock that will become due if the Vitatex Assets yield more than $100,000 in gross revenue by July 29, 2020 and (iii) $150,000 of LRx common stock that will become due if the Vitatex Assets yield an additional $200,000 in gross revenue. The Research Foundation will receive cash instead of shares of LRx upon the completion of any such performance-based events. As part of this transaction, the Company issued 2% of LRx’s common stock, valued at $113,132. This transaction was accounted for as an asset acquisition in accordance with ASC 805. The Company concluded that since the assets acquired were considered in process research and development assets, the value of $345,332 that was assigned to the “know-how” was expensed to research and development expenses in the consolidated statement of operations for the fiscal year ended September 30, 2019. For the remaining contingent consideration, the Company has determined that it is not probable that the milestones will be met and therefore, no liability is recorded as of September 30, 2019.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Sep. 30, 2019
INTANGIBLE ASSETS
INTANGIBLE ASSETS	NOTE E – INTANGIBLE ASSETS Intangible assets at September 30, 2019 and 2018 are as follows: 2019 2018 Internally developed software (5‑year useful life) $ 157,221 $ 157,221 Customer relationships (10‑year useful life) 621,000 621,000 Intellectual property (5‑15 years) 917,350 917,350 1,695,571 1,695,571 Less: Accumulated amortization 960,800 831,368 Intangible assets, net $ 734,771 $ 864,203 Total amortization expense charged to operations for the fiscal years ended September 30, 2019 and 2018 were $129,432 and $177,872, respectively. The following table presents the estimated amortization expense of the intangible assets for each of the five succeeding years as of September 30, 2019: Amount 2020 $ 129,432 2021 91,967 2022 91,967 2023 91,967 2024 91,967 Thereafter 237,471 Total $ 734,771

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	12 Months Ended
	Sep. 30, 2019
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	NOTE F – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities at September 30, 2019 and 2018 are as follows: 2019 2018 Accounts payable $ 1,152,103 $ 500,849 Accrued salaries payable 319,260 401,130 Income taxes payable 15,000 — Other accrued expenses 130,634 63,188 Total $ 1,616,997 $ 965,167

SECURED CONVERTIBLE NOTES PAYAB

SECURED CONVERTIBLE NOTES PAYABLE	12 Months Ended
	Sep. 30, 2019
SECURED CONVERTIBLE NOTES PAYABLE
SECURED CONVERTIBLE NOTES PAYABLE	NOTE G – SECURED CONVERTIBLE NOTES PAYABLE On August 31, 2018, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with accredited investors and certain members of its management team and Board of Directors (the “Purchasers”), pursuant to which the Company issued and sold an aggregate of $1,650,000 in principal amount of secured convertible notes (the “August 2018 Notes”) bearing interest at a rate of 6% per annum. As part of the August 2018 Notes, the Company’s management and Board of Directors purchased August 2018 Notes with a principal amount of $1,185,000. The August 2018 Notes are convertible, in whole or in part, at any time, at the option of the Purchasers, into shares of the Company’s Common Stock, in an amount determined by dividing the principal amount of each August 2018 Note, together with any and all accrued and unpaid interest, by the conversion price of $100.00. The Company has the right to require the Purchasers to convert all or any part of their August 2018 Notes into shares of its Common Stock at a conversion price of $100.00 if the price of the Common Stock remains at a closing price of $140.00 or more for a period of twenty consecutive trading days. Upon any Change in Control (as defined in the August 2018 Notes), the Purchasers have the right to require the Company to redeem the August 2018 Notes, in whole or in part, at a redemption price equal to such August 2018 Notes’ outstanding principal balance plus accrued interest. The August 2018 Notes contain certain events of default that are customarily included in financing of this nature. If an event of default occurs, the Purchasers may require the Company to redeem the August 2018 Notes, in whole or in part, at a redemption price equal to such notes’ outstanding principal balance plus accrued interest. The August 2018 Notes bear interest at the rate of 6% per annum, payable semi-annually in cash or in kind, at the Company’s option, and are due and payable in full on August 30, 2021. Until the principal and accrued but unpaid interest under the August 2018 Notes is paid in full, or converted into shares of Common Stock pursuant to their terms, the Company’s obligations under the August 2018 Notes will be secured by a lien on substantially all assets of the Company (excluding certain cash accounts) and the assets of APDN (B.V.I.) Inc. The Company has also entered into a registration rights agreement, dated as of the date of the Purchase Agreement, with the Purchasers, pursuant to which it has agreed to prepare and file a registration statement with the SEC to register under the Securities Act of 1933, as amended (the “Securities Act”) resales from time to time of the Common Stock issued or issuable upon conversion or redemption of the August 2018 Notes. The Company is required to file a registration statement within 60 days of receiving a demand registration request from holders of a majority of the outstanding principal balance of the August 2018 Notes, and to cause the registration statement to be declared effective within 45 days (or 90 days if the registration statement is reviewed by the SEC). On November 29, 2018, the Company closed a securities purchase agreement with its chairman, president and chief executive officer and one member of the management team, pursuant to which the Company issued and sold an aggregate of $550,000 in principal amount of secured convertible notes bearing interest at a rate of 6% per annum (the “November 2018 Notes”). The November 2018 Notes are substantially similar to the Company’s August 2018 Notes except with respect to maturity date, which is November 29, 2021 The November 2018 Notes are secured on a pari passu basis with the same Company assets as the August 2018 Notes. On July 17, 2019, the Company closed $1.5 million in gross proceeds in July 2019 Notes, bearing interest at a rate of 6% per annum, in a non-brokered private placement with an accredited investor, Dillon Hill Capital, LLC (“Dillon Hill”) and simultaneously amended the terms of the Existing Notes and, (together with the July 2019 Notes, the “Company Notes”) to, among other amendments, (i) reduce the conversion price of the Existing Notes to $21.60 to facilitate their conversion into equity and (ii) change the maturity date of the August 2018 Notes to be November 28, 2021. Under the terms of the July 2019 Notes, until October 13, 2019, Dillon Hill had the right to purchase on the same terms as the July 16, 2019 sale up to an additional $500,000 in principal amount of the July 2019 Notes, and up to an additional $1 million in principal amount of the July 2019 Notes if approved by the Company. This right was not exercised. In addition, Dillon Hill was granted a right to participate in certain future financing transactions of the Company (each a “Subsequent Financing”) until July 16, 2020 equal to the amount required for Dillon Hill to maintain its pro rata ownership of the Company as if the July 2019 Notes had been fully converted into Common Stock. Until July 16, 2020, Dillon Hill shall have the right to participate in full for the first $1 million of such Subsequent Financing. This right was exercised and Dillon Hill participated in the November 2019 underwritten public offering. After giving effect to the amendments to the Existing Notes, the July 2019 Notes are substantially similar to the Existing Notes. The July 2019 Notes are secured on a pari passu basis with the same Company assets as the Existing Notes. In addition, on July 19, 2019, the Company also amended the security agreements dated as of October 19, 2018, to among other amendments, exclude 20% of the Company’s equity interest in LRx from the assets securing the Company Notes. The July 2019 Notes are convertible, in whole or in part, at any time, at the option of Dillon Hill, into shares of Common Stock, in an amount determined by dividing the principal amount of the July 2019 Notes, together with any and all accrued and unpaid interest, by the conversion price of $21.60 (the “Conversion Price”). The July 2019 Notes are due and payable in full on November 28, 2021. On or before September 30, 2019, the Company had the right to prepay all or a portion of the July 2019 Notes. If the Company exercised such option, Dillon Hill had the option to (i) convert all or any part of the July 2019 Notes into shares of Common Stock at the Conversion Price or (ii) redeem the July 2019 Notes at a redemption price equal to the outstanding principal balance plus accrued interest of the July 2019 Notes and be issued warrants equal in amount to 40% of the shares of Common Stock that Dillon Hill would have received had it elected to convert its July 2019 Note into shares of Common Stock. Such warrants, if any, would have an exercise price equal to 105% of the Conversion Price. Further, the Company has the right to require Dillon Hill to convert all or any part of their Notes into shares of the Company’s Common Stock at the Conversion Price if the price of the Common Stock remains at a closing price of $140.00 or more for a period of twenty consecutive trading days. The prepayment option expired on September 30, 2019. The July 2019 Notes and the Existing Notes, after giving effect to the amendments to the Existing Notes, contain certain negative covenants that restrict the Company, including prohibitions or limitations, among other things, on the incurrence of additional indebtedness, subsidiary asset sales, intercompany loans, liens, amendments to the Company’s organization documents, dividends, and redemptions without consent of the Required Holders (as defined in the Company Notes). The July 2019 Notes contain certain events of default that are customarily included in financings of this nature. If an event of default occurs, Dillon Hill (by an affirmative vote of the holders of the Company Notes representing at least 30% of the aggregate principal amount of the Company Notes then outstanding) may require the Company to redeem the July 2019 Notes, in whole or in part, at a redemption price equal to the greater of (i) their outstanding principal balance, plus all accrued and unpaid interest, divided by the Conversion Price, multiplied by the volume-weighted average price (VWAP) on the date the redemption price is either (x) demanded or otherwise due or (y) paid in full, whichever has a higher VWAP, or (ii) 130% of the outstanding principal, plus all accrued and unpaid interest. The amendments to the Existing Notes resulted in a change in fair value of the conversion option that exceeded ten percent of the carrying amount of the Existing Notes. Accordingly, the amendment was treated as an extinguishment of the Existing Notes and a corresponding loss on extinguishment of debt of $1,260,399. The fair value of the Existing Notes immediately after the amendments (“Amended Existing Notes”) was $3,498,457. Going forward, the Company has elected to record the Amended Existing Notes at fair value in accordance with ASC 825. As a result, the Company recorded a gain on the change in fair value of $65,576 for the year ended September 30, 2019. The July 2019 Notes are recorded at carrying value. During September 2019, a total of $2.2 million of the Amended Existing Notes was converted into 102,893 shares of the Company’s common stock. As part of the total amount converted, Dr. James A. Hayward, our Chairman, Chief Executive Officer and President (“CEO”), converted approximately $1.59 million of the Amended Existing Notes, into approximately 73,400 shares of the Company’s common stock, and other directors, officers, and affiliates of the Company converted approximately $409,000 of such Existing Notes in September 2019 into 18,929 shares of the Company’s common stock. The fair value of the Amended Existing Notes was calculated immediately prior to conversion and resulted in a gain on the change in fair value of the Amended Existing Notes of approximately $1,907,379. During the fiscal year ended September 30, 2019, the Company reclassified $126,980 from accrued liabilities to senior secured notes payable to represent interest due to noteholders that was paid in kind and therefore increasing the convertible note balance outstanding at September 30, 2019. The Company incurred $64,848 to debt issuance costs based on the cost incurred to complete the Existing Notes financing, which was written off as part of the extinguishment accounting discussed above. The Company incurred $64,608 to debt issuance costs based on the cost incurred to complete the July 2019 Notes. During the fiscal years ended September 30, 2019 and 2018 the Company amortized $23,828 and $1,479, respectively, of debt issuance costs resulting in unamortized debt issuance costs of $59,698 and the secured notes payable of $1,602,777 at September 30, 2019. The debt issuance cost will be amortized over the life of the Company Notes. During the fiscal years ended September 30, 2019 and 2018, the Company incurred $138,604 and $8,136 of interest expense. The effective interest rate for the fiscal years ended September 30, 2019 and 2018 was 7.5% and 7.4%, respectively.

CAPITAL STOCK

CAPITAL STOCK	12 Months Ended
	Sep. 30, 2019
CAPITAL STOCK
CAPITAL STOCK	NOTE H – CAPITAL STOCK On October 31, 2019, the Company filed a Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware that effected a one-for-forty (1:40) reverse stock split of its common stock, par value $.001 per share, effective November 1, 2019. All warrant, option, share, and per share information in the consolidated financial statements gives retroactive effect to the one-for-forty reverse stock split that was effected on November 1, 2019. Common Stock Transactions subsequent to the Fiscal Year Ended September 30, 2019: On November 15, 2019, the Company closed an underwritten public offering (the “Offering”) in which, pursuant to the Underwriting Agreement dated November 13, 2019 by and between the Company and Maxim Group LLC (“Maxim”), as Representative of the Underwriters, the Company issued and sold 2,285,000 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and 2,285,000 accompanying warrants each with the right to purchase one share of Common Stock at an exercise price of $5.25 per share (the “Common Warrants”). The shares of Common Stock and accompanying Common Warrants were sold at a combined offering price of $5.25 before underwriting discounts. The Common Stock and the Common Warrants are collectively referred to herein as the “Securities.” As part of the Offering, the Company granted Maxim an option to purchase an additional 342,750 shares of Common Stock and/or additional Common Warrants to purchase 342,750 shares of Common Stock (the “Option Warrants”) at the public offering price, less discounts and commissions, to cover any over-allotments made by the Underwriters in the sale and distribution of the Securities. The option to purchase additional shares of Common Stock and/or Option Warrants has not yet been exercised and may be exercised from time to time within 45 days after November 13, 2019. The gross proceeds of the offering, before deducting Underwriter discounts and commissions and other offering expenses, are approximately $12.0 million, or approximately $13.8 million if the Underwriters exercise in full their overallotment option. After deducting Underwriter fees and other estimated expenses related to the underwritten public offering, we estimate the aggregate net proceeds to be approximately $10.8 million, assuming the overallotment option is not exercised. Pursuant to the Warrant Agreement, each Common Warrant will be exercisable beginning on the date of issuance thereof and ending on November 15, 2024. The Common Warrant includes an adjustment provision that, subject to certain exceptions, reduces its exercise price if the Company issues Common Stock or Common Stock equivalents at a price lower than the then-current exercise price of the Common Warrant, subject to a minimum exercise price of $1.47 per share. Subject to limited exceptions, a holder of a Common Warrant will not have the right to exercise any portion of its Common Warrant if the holder, together with its affiliates, would beneficially own in excess of 4.99% (or, at the election of the holder, 9.99%) of the number of shares of Common Stock outstanding immediately after giving effect to such exercise (the “Beneficial Ownership Limitation”); provided, however, that upon 61 days’ prior notice to us, the holder may increase the Beneficial Ownership Limitation, provided that in no event shall the Beneficial Ownership Limitation exceed 9.99%. The exercise price and number of the shares of Common Stock issuable upon the exercise of the Common Warrant will be subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization or similar transaction, as described in the Warrant Agreement. Common Stock Transactions during the Fiscal Year Ended September 30, 2019: On August 22, 2019, the Company issued and sold 38,704 shares of common stock at a price of $10.80 per share for total gross proceeds of $418,000 to a group of accredited investors, including its chief executive officer, president and chairman of the board of directors, its chief information officer, and a 5% or greater stockholder. On December 21, 2018, the Company entered into an underwriting agreement (the “Agreement”) with Maxim , as the sole underwriter and book running manager, with respect to the issuance and sale of an aggregate of 137,500 shares (the “Shares”) of Common Stock, together with warrants to purchase an aggregate of 137,500 shares of Common Stock (the “Warrants”) at an exercise price equal to $20.00 per share of Common Stock (the “Exercise Price”) in an underwritten public offering. The public offering price for each Share together with the accompanying Warrant was $20.00. Pursuant to the Agreement, the Company also granted Maxim a 45-day option to purchase an additional 20,625 Shares and/or additional Warrants to purchase 20,625 Shares to cover any over-allotments made by the underwriters in the sale and distribution of the Shares and Warrants. The gross proceeds of the offering, before deducting underwriter discounts and commissions and other offering expenses, were $2,750,000. The offering closed on December 26, 2018. On December 26, 2018, Maxim partially exercised its overallotment option and purchased an additional 20,000 Warrants at a price of $0.0000004 per Warrant. After deducting underwriting fees and other expenses related to the offering, the aggregate net proceeds were approximately $2,262,000. On January 25, 2019, the Company closed on the underwriters’ partial exercise of its over-allotment option for 12,500 shares of Common Stock for gross proceeds of $250,000. After deducting underwriting fees and other expenses related to the over-allotment option, the aggregate net proceeds were approximately $201,000. The total number of Common Stock and Warrants issued under this offering, including the exercise of the over-allotment option was 150,000 and 157,500, respectively. The gross proceeds to us were approximately $3.0 million and net proceeds after deducting underwriting expenses and other estimated offering expenses was approximately $2.5 million. The Warrants are immediately exercisable beginning on the date of issuance (the “Initial Exercise Date”). The Warrants will be exercisable for five years from the Initial Exercise Date, but not thereafter. The Warrants include an adjustment provision that, subject to certain exceptions, reduces their exercise price if the Company issues Common Stock or Common Stock equivalents at a price lower than the then-current exercise price of the Warrants, subject to a minimum exercise price of $5.60 per share. The exercise price and number of the shares of the Company’s Common Stock issuable upon the exercise of the Warrants will be subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization or similar transaction, as described therein. In addition, on or after any trading day 75 days after the closing date of the offering, if the daily volume weighted average price of the Company’s Common Stock fails to exceed the Exercise Price, the aggregate number of warrant shares issuable in a cashless exercise shall equal the product of (i) the aggregate number of warrant shares that would be issuable upon exercise of the Warrants if such exercise were by means of a cash exercise and (ii) 0.70. As a result of the 2019 private placement offering of the Company’s common stock, the exercise price of these warrants was reduced to $12.00 per share. The incremental change in fair value of these warrants as a result of the triggering event was $78,785. Subsequently, as a result of the underwritten public offering on November 15, 2019, the exercise price of these warrants was further reduced to $5.60 per share. As a result of the Company’s stock price falling below $20.00, 143,252 warrants have been cashlessly exercised. These exercises resulted in the issuance of 100,617 shares of the Company’s Common Stock. As a result of this financing, the exercise price of the 68,375 warrants issued during December 2017 was reduced to an exercise price of $17.60 per share in accordance with the adjustment provision contained in the warrant agreement. The incremental change in fair value of these warrants as a result of the triggering event was $281,042. Common Stock Transactions during the Fiscal Year Ended September 30, 2018: On December 22, 2017, the Company entered into a securities purchase agreement with certain institutional investors for the purchase and sale of 68,375 shares of its common stock and warrants to purchase an aggregate of 68,375 shares of common stock in a registered direct offering with aggregate gross proceeds of $4,786,250, at a combined purchase price of $70.00 per share. The warrants will be immediately exercisable at a price of $80.00 per share of common stock and will expire five years from the date of issuance. After deducting placement agent fees and other estimated expenses related to the registered direct offering, the aggregate net proceeds were approximately $4,200,000. The warrants will be exercisable for five years from the grant date, but not thereafter. The warrants include an adjustment provision that, subject to certain exceptions, reduces their exercise price if the Company issues Common Stock or Common Stock equivalents at a price lower than the then-current exercise price of the Purchase Warrants, subject to a minimum exercise price of $17.60. The exercise price and number of the shares of our Common Stock issuable upon the exercise of the warrants will be subject to adjustment as set forth therein (including for stock dividends and splits, reverse stock split, recapitalization, reorganization or similar transaction). In addition, if and only if there is no effective registration statement registering, or no current prospectus available for, the resale of the Purchase Warrants, the Purchasers may exercise the Purchase Warrants by means of a “cashless exercise.”

STOCK OPTIONS AND WARRANTS

STOCK OPTIONS AND WARRANTS	12 Months Ended
	Sep. 30, 2019
STOCK OPTIONS AND WARRANTS
STOCK OPTIONS AND WARRANTS	NOTE I – STOCK OPTIONS AND WARRANTS Warrants Transactions involving warrants (see Note H) are summarized as follows: Weighted Average Number of Exercise Price Per Shares Share Balance at October 1, 2018 305,217 $ 129.60 Granted 258,502 18.36 Exercised (199,127) (18.42) Cancelled or expired (101,000) (87.70) Balance, September 30, 2019 263,592 $ 131.12 Stock Options In 2005, the Board of Directors and the holders of a majority of the outstanding shares of Common Stock approved the 2005 Incentive Stock Plan, as amended and restated as of January 21, 2015 (the "Incentive Plan"). On March 27, 2019, the Board of Directors approved an amendment to the Incentive Plan, which was approved by shareholders on May 16, 2019. The amendment increases the number of shares of Common Stock that can be issued as stock awards and stock options thereunder from an aggregate of 208,334 to an aggregate of 358,334. The number of shares of Common Stock that can be covered by awards made to any participant in any calendar year is 20,834 shares. The Incentive Plan’s expiration date is January 25, 2025. The Incentive Plan is designed to retain directors, executives, and selected employees and consultants by rewarding them for making contributions to the Company's success with an award of options to purchase shares of Common Stock. As of September 30, 2019, a total of 6,894 shares have been issued and options to purchase 212,271 shares have been granted under the Incentive Plan. Transactions involving stock options issued are summarized as follows: Weighted Weighted Average Aggregate Average Number of Exercise Price Per Intrinsic Contractual Shares Share Value Life (years) Outstanding at October 1, 2018 154,676 $ 125.16 Granted 86,349 100.65 Exercised — — Cancelled or expired (41,630) 195.96 Outstanding at September 30, 2019 199,395 $ 99.68 Vested at September 30, 2019 162,112 116.50 $ — 6.18 Non-vested at September 30, 2019 37,283 27.01 $ — 9.48 For the fiscal year ended September 30, 2019, the Company issued an aggregate of 86,349 (including award modifications of 35,040) options to employees, consultants, members of the strategic advisory board and non-employee board of director members. For the fiscal year ended September 30, 2018, the Company issued an aggregate of 54,704 (including award modifications of 16,667) options to employees, consultants, members of the strategic advisory board and non-employee board of director members. Included in these grants was 12,500 options granted to executives. The fair value of options granted during the fiscal years ended September 30, 2019 and 2018 was determined using the Black Scholes Option Pricing Model. For the purposes of the valuation model, the Company used the simplified method for determining the granted options expected lives. The simplified method is used since the Company does not have adequate historical data to utilize in calculating the expected term of options. The fair value for options granted was calculated using the following weighted average assumptions: 2019 2018 Stock price $ 32.82 $ 52.40 Exercise price $ 100.65 $ 80.00 Expected term 4.40 4.42 Dividend yield — — Volatility 89 % 86 % Risk free rate 2.43 % 2.70 % The Company recorded $1,129,110 and $1,356,351 as stock compensation expense within selling, general and administrative for fiscal years ended September 30, 2019 and 2018, respectively. Included in this amount is $221,046 and $145,053 for the fiscal years ended September 30, 2019 and 2018, respectively for employee stock option modifications. These modifications extended the terms of the options for employees in fiscal 2019 and extended the terms of the options for former employees in fiscal 2019 and 2018. As of September 30, 2019, unrecorded compensation cost related to non-vested awards was $434,553 which is expected to be recognized over a weighted average period of approximately 0.61 years. The weighted average grant date fair value per share for options granted during the fiscal years ended September 30, 2019 and 2018 was $11.51 and $30.00, respectively.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Sep. 30, 2019
INCOME TAXES
INCOME TAXES	NOTE J – INCOME TAXES The income tax provision (benefit) for the fiscal years ended September 30, 2019 and 2018 consists of the following: 2019 2018 Federal: Current $ — — Deferred (1,658,000) 4,430,000 (1,658,000) 4,430,000 State and local: Current — — Deferred 308,000 (925,000) 308,000 (925,000) Foreign: Current 15,000 — Deferred — — 15,000 — Change in valuation allowance 1,350,000 (3,505,000) Income tax provision (benefit) $ 15,000 — The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory rate to losses before income tax expense for the years ended September 30, 2019 and 2018 as follows: 2019 2018 Statutory federal income tax rate 21.00 % 24.28 % Statutory state and local income tax rate (1%, as of September 30, 2019 and 2018), net of federal benefit 0.52 % 2.50 % Stock based compensation (1.62) % (2.29) % Other permanent differences (3.15) % 4.24 % Change in deferred tax rate (2.33) % 0.00 % Impact of change in Federal statutory tax rate 0.00 % (58.71) % Change in valuation allowance (14.42) % 29.98 % Effective tax rate 0.00 % 0.00 % Deferred income taxes result from temporary differences in the recognition of income and expenses for financial reporting purposes and for tax purposes. The tax effect of these temporary differences representing deferred tax asset and liabilities result principally from the following: September 30, 2019 2018 Deferred tax assets (liabilities): Stock based compensation $ 1,960,000 $ 1,947,000 Depreciation and amortization 277,000 339,000 Net operating loss carry forward 14,091,000 13,248,000 Tax credits 1,171,000 944,000 Other 397,000 69,000 Less: valuation allowance (17,896,000) (16,547,000) Net deferred tax asset $ — $ — As of September 30, 2019, the Company has approximately $58,458,000 of Federal and $75,496,000 of State net operating loss “NOL” carryforwards available which begin to expire after 2022. The Federal and State carry forwards of $5,230,470 and $5,797,009, respectively for fiscal year end 2019 have indefinite lives. Pursuant to Internal Revenue Code Section 382, the Company’s ability to utilize the NOLs is subject to certain limitations due to changes in stock ownership in prior years. The annual limitation ranges between $786,000 and $1,103,000 and any unused amounts can be carried forward to subsequent years. The Company has provided a full valuation allowance against all of the net deferred tax assets based on management’s determination that it is more likely than not that the net deferred tax assets will not be realized in the future. The valuation allowance increased by $1,350,000. The Company has Federal research and development credits of approximately $762,000 that will begin to expire after 2034. The Company also has state investment tax credits of $392,000 that will begin to expire after 2029.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Sep. 30, 2019
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE K – COMMITMENTS AND CONTINGENCIES Operating leases The Company leases office space under an operating lease in Stony Brook, New York for its corporate headquarters. The lease is for a 30,000 square foot building. The term of the lease commenced on June 15, 2013 and expired on May 31, 2017, with the option to extend the lease for two additional three-year periods. The Company has exercised its option to extend the lease for one additional three-year period ending May 31, 2019. The base rent during the additional three-year period is $458,098 per annum. During November 2019, the Company extended this lease until January 15, 2020. In addition to the office space, the Company also has 1,500 square feet of laboratory space. The term of the lease commenced on November 1, 2015 and expired on October 31, 2018, with a month to month agreement thereafter. Effective November 20, 2018, the Company renewed this lease for one additional year, ending October 31, 2018. This lease has also been extended until January 15, 2020. The Company set up a satellite testing facility in Ahmedabad, India during fiscal 2018. On November 17, 2017, it leased 1,108 square feet for a three-year term beginning November 1, 2017. The base rent is approximately $6,500 per annum. Total rent expense for the fiscal years ended September 30, 2019 and 2018 were $516,988 and $528,234, respectively.. Future minimum rental payments (excluding real estate tax and maintenance costs) as of September 30, 2019 are as follows: For the fiscal year ending September 30, 2020 $ 7,104 2021 595 Total $ 7,699 Employment and Consulting Agreements Employment agreements On July 11, 2011, the Company’s Board of Directors approved the terms of employment for Dr. James A. Hayward, the Company’s CEO. The CEO’s employment agreement provides that he will be the Company’s CEO, and will continue to serve on the Company’s Board of Directors. On July 28, 2017, a new employment agreement was entered into with the CEO effective July 1, 2017. The initial term was from July 1, 2017 through June 30, 2018, with automatic one-year renewal periods. As of June 30, 2019, the employment contract renewed for an additional year. Under the new agreement, the CEO will be eligible for a special cash incentive bonus of up to $800,000, $300,000 of which is payable if and when annual revenue reaches $8 million and $100,000 of which would be payable for each $2 million of annual revenue in excess of $8 million. Pursuant to the contract, the CEO’s annual salary is $400,000. The Board of Directors, acting in its discretion, may grant annual bonuses to the CEO. The CEO will be entitled to certain benefits and perquisites and will be eligible to participate in retirement, welfare and incentive plans available to the Company’s other employees. The agreement with the CEO also provides that if he is terminated before the end of the initial or a renewal term by the Company without cause or if the CEO terminates his employment for good reason, then, in addition to previously earned and unpaid salary, bonus and benefits, and subject to the delivery of a general release and continuing compliance with restrictive covenants, the CEO will be entitled to receive a pro rata portion of the greater of either (X) the annual bonus he would have received if employment had continued through the end of the year of termination or (Y) the prior year’s bonus; salary continuation payments for two years following termination equal to the greater of (i) three times base salary or (ii) two times base salary plus bonus; company-paid COBRA continuation coverage for 18 months post-termination; continuing life insurance benefits (if any) for two years; and extended exercisability of outstanding vested options (for three years from termination date or, if earlier, the expiration of the fixed option term). If termination of employment as described above occurs within six months before or two years after a change in control of the Company, then, in addition to the above payments and benefits, all of the CEO’s outstanding options and other equity incentive awards will become fully vested and the CEO will receive a lump sum payment of the amounts that would otherwise be paid as salary continuation. In general, a change in control will include a 30% or more change in ownership of the Company. Upon termination due to death or disability, the CEO will generally be entitled to receive the same payments and benefits he would have received if his employment had been terminated by the Company without cause (as described in the preceding paragraph), other than salary continuation payments. Effective March 15, 2018, the Compensation Committee of the Company’s Board of Directors, approved a bonus of $121,125 that would be payable to the CEO when the Company reaches $3,000,000 in revenues for two consecutive quarters or $12,000,000 in revenues for a fiscal year, provided that the CEO is still employed by the Company on such date (the “Revenue Bonus”). Effective May 2, 2018, the Compensation Committee of the Company’s Board of Directors, increased the amount of the Revenue Bonus to $403,623. Effective December 27, 2018, the compensation committee approved an additional bonus opportunity of $150,000 for the calendar year-ended December 31, 2019 that would be payable to the CEO under the same terms as described above. As of September 4, 2019, the CEO voluntarily reduced his salary to $50,000. The accrual for the Revenue Bonus of $590,502 is recorded to long term accrued liabilities on the balance sheet as of September 30, 2019. Litigation From time to time, the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. When the Company is aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company will record a liability for the loss. In addition to the estimated loss, the recorded liability includes probable and estimable legal costs associated with the claim or potential claim. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company’s business. There is no pending litigation involving the Company at this time.

GEOGRAPHIC AREA INFORMATION

GEOGRAPHIC AREA INFORMATION	12 Months Ended
	Sep. 30, 2019
GEOGRAPHIC AREA INFORMATION
GEOGRAPHIC AREA INFORMATION	NOTE L – GEOGRAPHIC AREA INFORMATION Net revenues by geographic location of customers are as follows: Year Ended September 30, 2019 2018 Americas $ 4,166,315 $ 2,141,169 Europe 600,374 1,004,452 Asia and other 622,400 757,722 Total $ 5,389,089 $ 3,903,343

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Sep. 30, 2019
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	Note M – FAIR VALUE OF FINANCIAL INSTRUMENTS The Company's financial instruments at fair value are measured on a recurring basis. Related unrealized gains or losses are recognized in unrealized gain on change in fair value of secured convertible notes payable in the consolidated statements of operations. For additional disclosures regarding methods and assumptions used in estimating fair values of these financial instruments, see Note B. The following table presents carrying amounts and fair values of the Company's financial instruments as of September 30, 2019 and summarizes the significant unobservable inputs in fair value measurement of Level 3 financial assets and liabilities as of September 30, 2019. The Company did not have any assets or liabilities categorized as Level 1 or 2 as of September 30, 2019. Fair value at Carrying value at September 30, September 30, Weighted 2019 2019 Valuation Technique Unobservable Input Range Average Liabilities: Secured Convertible Notes ("Existing Notes") $ 102,777 $ 104,482 Monte Carlo simulation Annualized volatility 87.22% - 92.66% 87.39 % The following table presents a summary of changes in fair value of the secured convertible notes (Level 3 financial liabilities) which are marked to market on a periodic basis: 2019 Beginning balance $ 3,516,237 Change in fair value included in earnings (1,972,955) Change in fair value for conversion of notes payable (1,440,505) Ending balance $ 102,777

SUMMARY OF ACCOUNTING POLICIES

SUMMARY OF ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2019
SUMMARY OF ACCOUNTING POLICIES
Business and Basis of Presentation	Business and Basis of Presentation On September 16, 2002, the Company was incorporated under the laws of the State of Nevada. Effective December 2008, the Company reincorporated from the State of Nevada to the State of Delaware. The Company is principally devoted to developing and marketing linear DNA technology solutions in the United States, Europe and Asia. To date, the Company has produced limited recurring revenues from its products and services; it has incurred expenses and has sustained losses. Consequently, its operations are subject to all the risks inherent in the establishment and development of a biotechnology company. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, APDN (B.V.I.) Inc., Applied DNA Sciences Europe Limited, Applied DNA Sciences India Private Limited and its majority – owned subsidiary, LineaRx, Inc. (“LRx”). Applied DNA Sciences India Private Limited was incorporated in India on June 22, 2018 and LineaRx, Inc. was incorporated in Delaware on September 11, 2018. Significant inter-company transactions and balances have been eliminated in consolidation. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year’s presentation. On October 31, 2019, the Company filed a Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware that effected a one-for-forty (1:40) reverse stock split of its common stock, par value $.001 per share, effective November 1, 2019. All warrant, option, share, and per share information in the consolidated financial statements gives retroactive effect to a one-for-forty reverse stock split that was affected on November 1, 2019.
Use of Estimates	Use of Estimates The preparation of the financial statements in conformity with Accounting Principles Generally Accepted in the U.S. (“GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The most complex and subjective estimates include revenue recognition, recoverability of long-lived assets, including the values assigned to goodwill, intangible assets and property and equipment, fair value calculations for stock based compensation and convertible promissory notes, contingencies, allowance for doubtful accounts and management’s anticipated liquidity. Management reviews its estimates on a regular basis and the effects of any material revisions are reflected in the consolidated financial statements in the period they are deemed necessary. Accordingly, actual results could differ from those estimates.
Revenue Recognition	Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued accounting standard updates which clarified principles for recognizing revenue arising from contracts with customers ("ASC 606" or "Topic 606") and superseded most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue standard is that an entity recognizes revenue to depict the transfer of promised goods or services to clients in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance applies a five-step model for revenue measurement and recognition and also requires increased disclosures including the nature, amount, timing, and uncertainty of revenue and cash flows related to contracts with clients. The Company adopted the new revenue standard at the beginning of the first quarter of fiscal 2019, using the modified retrospective method of adoption and applied the guidance to those contracts that were not completed as of September 30, 2018. Comparative financial information for reporting periods beginning prior to October 1, 2018, has not been restated and continues to be reported under the previous reporting guidance. Under the modified retrospective method of adoption, the cumulative effect of applying the new standard is recorded at the date of initial application, with no restatement of the comparative prior periods presented. Based on the evaluation, the Company has identified certain customer contracts, which required different recognition under the new guidance. The Company has determined that the revenue under certain of its research and development contracts should be recognized on an over time basis using the input method as compared to ratably over the contract term. Also, the shipment to the Company's cotton customer during fiscal 2018 that included extended payment terms and was included in deferred revenue as of September 30, 2018, would have met the criteria under the new guidance to be recognized as revenue upon shipment. The Company has determined that the cumulative adjustment to opening retained earnings in fiscal 2019 was approximately $493,000. The Company measures revenue at the amounts that reflect the consideration to which it is expected to be entitled in exchange for transferring control of goods and services to customers. The Company recognizes revenue either at the point in time or over the period of time that performance obligations to customers are satisfied. The Company's contracts with customers may include multiple performance obligations (e.g. taggants, maintenance, authentication services, research and development services, etc.). For such arrangements, the Company allocates revenues to each performance obligation based on their relative standalone selling price. Under the new accounting guidance, the Company recognizes revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration it expects to receive for those goods or services, including any variable consideration. Due to the short-term nature of the Company's contracts with customers, it has elected to apply the practical expedients under Topic 606 to: (1) expense as incurred, incremental costs of obtaining a contract and (2) not adjust the consideration for the effects of a significant financing component for contracts with an original expected duration of one year or less. Impact of Adoption A summary and discussion of such cumulative effect adjustment and the impact on current period financial statements of adopting Topic 606 is as follows: Fiscal Year ended September 30, 2019 Prior U.S. GAAP Topic 606 impact As reported Statement of Operations Revenues Product $ 2,902,247 $ (766,192) $ 2,136,055 Service 3,402,138 (149,104) 3,253,034 Total revenues 6,304,385 (915,296) 5,389,089 Cost of revenues 884,281 (6,668) 877,613 Loss from operations (8,215,643) (908,628) (9,124,271) Assets Prepaids and other current assets $ 611,408 $ (6,668) $ 604,740 Liabilities and (deficit) equity Deferred Revenue $ 802,107 $ (173,114) $ 628,993 Accumulated Deficit (256,805,589) — (256,805,589) Product Revenues and Authentication Services The Company’s PCR-produced linear DNA products, including molecular taggants are manufactured in accordance with contracts with customers. The Company recognizes revenue upon satisfying its promises to transfer goods or services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company transfers control of the goods to the customer, which in nearly all cases is when title to and risk of loss of the goods transfer to the customer. The timing of transfer of title and risk of loss is dictated by customary or explicitly stated contract terms. The Company does not consider payment terms a performance obligation for customers with contractual terms that are one year or less and has elected the practical expedient. Nearly all of the Company’s sales contracts reflect market pricing at the time the contract is executed, are one year or less, and generally provide for shipment within 30 to 60 days after the price has been agreed upon with the customer. We invoice customers upon shipment, and our collection terms range, on average from 30-60 days The cotton ginning season in the United States takes place between September and March each year; therefore, revenues from these customer contracts may be seasonal and recognized primarily during the first and fourth quarters of the Company’s fiscal year. Authentication Services The Company recognizes revenue for authentication services upon satisfying its promises to provide services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company services are complete, which in nearly all cases is when the authentication report is released to the customer. Research and Development Services The Company records revenue for its research and development contracts using the over-time revenue recognition model. Revenue is primarily measured using the cost-to-cost method, which the Company believes best depicts the transfer of control to the customer. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the identified performance obligation. Revenues are recorded proportionally as costs are incurred. For contracts where the total costs cannot be estimated, revenues are recognized for the actual costs incurred during a period until the remaining costs to complete a contract can be estimated. The Company has elected to not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Disaggregation of Revenue The following table presents revenues disaggregated by our business operations and timing of revenue recognition: Fiscal Years Ended: September 30, 2019 2018 Research and development services (over-time) $ 2,975,961 $ 1,766,202 Product and authentication services (point-in-time): Supply chain 1,438,106 674,224 Asset marking 587,012 1,002,934 Large scale DNA production 388,010 459,983 Total $ 5,389,089 $ 3,903,343 Contract balances As of September 30, 2019, the Company has entered into contracts with customers for which revenue has not yet been recognized. Consideration received from a customer prior to revenue recognition is recorded to a contract liability and is recognized as revenue when the Company satisfies the related performance obligations under the terms of the contract. The Company’s contract liabilities, which are reported as deferred revenue on the consolidated balance sheet, consist almost entirely of research and development contracts where consideration has been received and the development services have not yet been fully performed. The opening and closing balances of the Company’s contract balances are as follows: October 1, September 30, $ Balance sheet classification 2018 2019 change Contract liabilities Deferred revenue $ 1,356,502 $ 628,993 $ (727,509) For the fiscal year ended September 30, 2019, the Company recognized $1,224,331 of revenue that was included in Contract liabilities as of October 1, 2018.
Cash Equivalents	Cash Equivalents For the purpose of the accompanying consolidated financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents.
Accounts Receivable	Accounts Receivable The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts may change. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company classifies receivable amounts as current or long-term based on expected payment and records long-term accounts receivable when the collection period is expected to be greater than one year. At September 30, 2019 and 2018, the Company has an allowance for doubtful accounts of $4,500 and $13,133, respectively. The Company writes-off receivables that are deemed uncollectible.
Inventories	Inventories Inventories, which consist primarily of raw materials and finished goods, is stated at the lower of cost or net realizable value, with cost determined by using the first-in, first-out (FIFO) method.
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740‑10”) which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes include, but not limited to, accounting for intangibles, equity based compensation and depreciation and amortization. The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all of the deferred tax asset will not be realized. During the fiscal years ended September 30, 2019 and 2018, the Company incurred losses from operations. Based upon these results and the trends in the Company’s performance projected for fiscal year 2019, it is more likely than not that the Company will not realize any benefit from the deferred tax assets recorded by the Company in previous periods. Management makes judgments as to the interpretation of tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. The Company has identified its federal tax return and its state tax return in New York as “major” tax jurisdictions. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s consolidated financial statements. The Company believes that its income tax positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to its financial position. It is the Company’s policy to accrue interest and penalties on unrecognized tax benefits as components of income tax provision. The Company did not have any accrued interest or penalties as of September 30, 2019 and 2018. Tax years 2015 through 2018 remain subject to future examination by the applicable taxing authorities.
Property and Equipment	Property and Equipment Property and equipment are stated at cost and depreciated using the straight line method over their estimated useful lives. The estimated useful life for computer equipment, lab equipment and furniture is 3 years and leasehold improvements are amortized over the shorter of their useful life or the remaining lease terms. Property and equipment consist of: September 30, 2019 2018 Computer equipment $ 265,542 $ 135,621 Lab equipment 1,885,487 1,951,955 Furniture 74,781 74,781 Leasehold improvements 293,672 293,672 Total 2,519,482 2,456,029 Accumulated depreciation 2,293,261 2,036,255 Property and equipment, net $ 226,221 $ 419,774 Depreciation expense for the fiscal years ended September 30, 2019 and 2018 were $260,992 and $369,924, respectively.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company evaluates its long lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of long-lived assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset.
Net Loss per Share	Net Loss per Share The Company presents loss per share utilizing a dual presentation of basic and diluted loss per share. Basic loss per share includes no dilution and has been calculated based upon the weighted average number of common shares outstanding during the period. Dilutive common stock equivalents consist of shares issuable upon the exercise of the Company’s stock options and warrants. For the fiscal years ended September 30, 2019 and 2018, common stock equivalent shares are excluded from the computation of the diluted loss per share as their effect would be anti-dilutive. Securities that could potentially dilute basic net income per share in the future that were not included in the computation of diluted net loss per share because to do so would have been antidilutive for the fiscal years ended September 30, 2019 and 2018 are as follows: 2019 2018 Warrants 263,592 305,217 Options 199,395 154,581 Secured convertible note 74,282 16,500 573,269 476,298
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock-based compensation for employees, directors and nonemployees in accordance with ASC 718, Compensation (“ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statement of operations based on their fair values. Under the provisions of ASC 718, stock-based compensation costs are measured at the grant date, based on the fair value of the award, and are recognized as expense over the employee’s requisite service period (generally the vesting period of the equity grant). The fair value of the Company’s common stock options are estimated using the Black Scholes option-pricing model with the following assumptions: expected volatility, dividend rate, risk free interest rate and the expected life. The Company expenses stock-based compensation by using the straight-line method. In accordance with ASC 718 and, excess tax benefits realized from the exercise of stock-based awards are classified as cash flows from operating activities. All excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) are recognized as income tax expense or benefit in the condensed consolidated statements of operations.
Concentrations	Concentrations Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and cash equivalents with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. The Company’s revenues earned from sale of products and services for the fiscal year ended September 30, 2019 included an aggregate of 27%, 26% and 15%, respectively from three customers. The Company’s revenues earned from sale of products and services for the fiscal year ended September 30, 2018 included an aggregate of 24%, 16%, 14% and 11%, respectively from four customers. One customer accounted for 77% of the Company's accounts receivable at September 30, 2019 and one customer accounted for an aggregate of 80% of the Company’s total accounts receivable at September 30, 2018.
Research and Development	Research and Development The Company accounts for research and development costs in accordance with the ASC 730, Research and Development (“ASC 730”). Under ASC 730, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. During the fiscal years ended September 30, 2019 and 2018, the Company incurred research and development expenses of $2,967,278 and $2,751,578, respectively.
Advertising	Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations approximately $133,000 and $287,156, as advertising costs for the fiscal years ended September 30, 2019 and 2018, respectively.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets The Company amortizes its intangible assets using the straight-line method over their estimated period of benefit. All of the Company’s intangible assets, except for goodwill are subject to amortization. Goodwill arises as a result of business acquisitions. Goodwill consists of the excess of the cost of the acquisitions over the tangible and intangible assets acquired and liabilities assumed. The Company evaluates goodwill for impairment at least annually. The Company qualitatively and quantitatively determines whether, more likely than not, the fair value exceeds the carrying amount of a reporting unit. There are numerous assumptions and estimates underlying the quantitative assessments including future earnings, long-term strategies, and the Company’s annual planning and forecasts. If these planned initiatives do not accomplish the targeted objectives, the assumptions and estimates underlying the quantitative assessments could be adversely affected and have a material effect upon the Company’s financial condition and results of operations. As of September 30, 2019 and 2018, the Company performed its qualitative assessment of goodwill and indicated that there was no impairment.
Internally Developed Software	Internally Developed Software Internally developed software products, consist of capitalized costs associated with the development of computer software to be sold, leased or otherwise marketed. Software development costs associated with new products are expensed as incurred until technological feasibility, as defined in FASB ASC Topic 985‑20, has been established. Costs incurred thereafter are capitalized until the product is made generally available. The stage during the Company’s development process for a new product or new release at which technological feasibility requirements are established affects the amount of costs capitalized. Annual amortization of internally developed software products is the greater of the amount computed using the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product or the straight-line method over the remaining estimated economic life of the software product, generally estimated to be 3 years from the date the product became available for general release to customers. The Company generally recognizes amortization expense for capitalized software costs using the straight-line method. Internally developed software products are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and its carrying amount exceeds its fair value.
Convertible Instruments	Convertible Instruments The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with ASC 470‑20, Debt with Conversion and Other Options. Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their earliest date of redemption.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related asset or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. The Company utilizes observable market inputs (quoted market prices) when measuring fair value whenever possible. For fair value measurements categorized within Level 3 of the fair value hierarchy, the Company’s accounting and finance department, who report to the Chief Financial Officer, determine its valuation policies and procedures. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s accounting and finance department and are approved by the Chief Financial Officer. As of September 30, 2019, there were no transfers between Levels 1, 2 and 3 of the fair value hierarchy.
Summary of Significant Valuation Techniques	Summary of Significant Valuation Techniques Level 3 Measurements: Secured convertible notes payable : For the Existing Notes (as defined in Note G), the Company has elected to record them at fair value. The fair value for the Existing Notes is estimated using the Monte Carlo simulation model. Significant observable and unobservable inputs include stock price, conversion price, annual risk free rate, term, likelihood of an event of default, and expected volatility. An increase or decrease in these inputs could significantly increase or decrease the fair value of the secured convertible notes payable. See Note G.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In November 2018, the FASB issued ASU 2018‑18," Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606” (“ASU 2018‑18”). The amendments in this update clarify that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606. ASU 2018‑18 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact of ASU 2018‑18 on its consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation – “Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting”, which addresses aspects of the accounting for nonemployee share-based payment transactions. This pronouncement is effective for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The Company early adopted ASU 2018-07 on October 1, 2018 using the modified retrospective transition approach. The cumulative -effect adjustment to opening retained earnings was not material. In July 2017, the FASB issued a two-part ASU No. 2017‑11, I. Accounting for Certain Financial Instruments With Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests With a Scope Exception (“ASU 2017‑11”). ASU 2017‑11 amends guidance in FASB ASC 260, Earnings Per Share, FASB ASC 480, Distinguishing Liabilities from Equity, and FASB ASC 815, Derivatives and Hedging. The amendments in Part I of ASU 2017‑11 change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The amendments in Part II of ASU 2017‑11 re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. ASU 2017‑11 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company adopted ASU 2017-11 during the fiscal year ended September 30, 2019. The effect of adoption was $0.34 per share to basic and diluted earnings per share. In May 2017, FASB issued ASU No. 2017-09, Compensation – “Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”) , which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. This pronouncement is effective for annual reporting periods and interim periods within those annual periods beginning after December 15, 2017. Early adoption is permitted. The Company adopted ASU 2017-09 during the fiscal year ended September 30, 2019 and it did not have a material impact on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The purpose of the amendment is to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. For public entities, the amendments in ASU 2017-04 are effective for interim and annual reporting periods beginning after December 15, 2019. The Company is currently assessing the impact of ASU 2017-04 on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. The Company is currently evaluating the new guidance and does not expect the adoption to have a significant impact on its consolidated financial statements, as the Company does not currently have any long-term lease obligations.

SUMMARY OF ACCOUNTING POLICIE_2

SUMMARY OF ACCOUNTING POLICIES (Tables)	12 Months Ended
	Sep. 30, 2019
SUMMARY OF ACCOUNTING POLICIES
Schedule of cumulative effect adjustment and the impact on current period financial statements of adopting Topic 606	Fiscal Year ended September 30, 2019 Prior U.S. GAAP Topic 606 impact As reported Statement of Operations Revenues Product $ 2,902,247 $ (766,192) $ 2,136,055 Service 3,402,138 (149,104) 3,253,034 Total revenues 6,304,385 (915,296) 5,389,089 Cost of revenues 884,281 (6,668) 877,613 Loss from operations (8,215,643) (908,628) (9,124,271) Assets Prepaids and other current assets $ 611,408 $ (6,668) $ 604,740 Liabilities and (deficit) equity Deferred Revenue $ 802,107 $ (173,114) $ 628,993 Accumulated Deficit (256,805,589) — (256,805,589)
Schedule of operations and timing of revenue recognition	Fiscal Years Ended: September 30, 2019 2018 Research and development services (over-time) $ 2,975,961 $ 1,766,202 Product and authentication services (point-in-time): Supply chain 1,438,106 674,224 Asset marking 587,012 1,002,934 Large scale DNA production 388,010 459,983 Total $ 5,389,089 $ 3,903,343
Schedule of opening and closing contract balances	October 1, September 30, $ Balance sheet classification 2018 2019 change Contract liabilities Deferred revenue $ 1,356,502 $ 628,993 $ (727,509)
Schedule of property, plant and equipment	September 30, 2019 2018 Computer equipment $ 265,542 $ 135,621 Lab equipment 1,885,487 1,951,955 Furniture 74,781 74,781 Leasehold improvements 293,672 293,672 Total 2,519,482 2,456,029 Accumulated depreciation 2,293,261 2,036,255 Property and equipment, net $ 226,221 $ 419,774
Schedule of anti-dilutive securities not included computation of net loss per share	2019 2018 Warrants 263,592 305,217 Options 199,395 154,581 Secured convertible note 74,282 16,500 573,269 476,298

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Schedule of inventories	2019 2018 Raw materials $ 87,886 $ 147,984 Finished goods 54,743 73,385 Total $ 142,629 $ 221,369

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Sep. 30, 2019
INTANGIBLE ASSETS
Schedule of intangible assets acquired and their carrying values	2019 2018 Internally developed software (5‑year useful life) $ 157,221 $ 157,221 Customer relationships (10‑year useful life) 621,000 621,000 Intellectual property (5‑15 years) 917,350 917,350 1,695,571 1,695,571 Less: Accumulated amortization 960,800 831,368 Intangible assets, net $ 734,771 $ 864,203
Schedule of estimated amortization expense of the intangible assets for each of the five succeeding years	Amount 2020 $ 129,432 2021 91,967 2022 91,967 2023 91,967 2024 91,967 Thereafter 237,471 Total $ 734,771

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	12 Months Ended
	Sep. 30, 2019
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Schedule of accounts payable and accrued liabilities	2019 2018 Accounts payable $ 1,152,103 $ 500,849 Accrued salaries payable 319,260 401,130 Income taxes payable 15,000 — Other accrued expenses 130,634 63,188 Total $ 1,616,997 $ 965,167

STOCK OPTIONS AND WARRANTS (Tab

STOCK OPTIONS AND WARRANTS (Tables)	12 Months Ended
	Sep. 30, 2019
STOCK OPTIONS AND WARRANTS
Schedule of transactions involving warrants	Weighted Average Number of Exercise Price Per Shares Share Balance at October 1, 2018 305,217 $ 129.60 Granted 258,502 18.36 Exercised (199,127) (18.42) Cancelled or expired (101,000) (87.70) Balance, September 30, 2019 263,592 $ 131.12
Schedule of summary of transactions involving stock options issued to employees	Weighted Weighted Average Aggregate Average Number of Exercise Price Per Intrinsic Contractual Shares Share Value Life (years) Outstanding at October 1, 2018 154,676 $ 125.16 Granted 86,349 100.65 Exercised — — Cancelled or expired (41,630) 195.96 Outstanding at September 30, 2019 199,395 $ 99.68 Vested at September 30, 2019 162,112 116.50 $ — 6.18 Non-vested at September 30, 2019 37,283 27.01 $ — 9.48
Schedule of fair value of options granted	2019 2018 Stock price $ 32.82 $ 52.40 Exercise price $ 100.65 $ 80.00 Expected term 4.40 4.42 Dividend yield — — Volatility 89 % 86 % Risk free rate 2.43 % 2.70 %

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Sep. 30, 2019
INCOME TAXES
Schedule of income tax provision (benefit)	2019 2018 Federal: Current $ — — Deferred (1,658,000) 4,430,000 (1,658,000) 4,430,000 State and local: Current — — Deferred 308,000 (925,000) 308,000 (925,000) Foreign: Current 15,000 — Deferred — — 15,000 — Change in valuation allowance 1,350,000 (3,505,000) Income tax provision (benefit) $ 15,000 —
Schedule of effective income tax rate reconciliation	2019 2018 Statutory federal income tax rate 21.00 % 24.28 % Statutory state and local income tax rate (1%, as of September 30, 2019 and 2018), net of federal benefit 0.52 % 2.50 % Stock based compensation (1.62) % (2.29) % Other permanent differences (3.15) % 4.24 % Change in deferred tax rate (2.33) % 0.00 % Impact of change in Federal statutory tax rate 0.00 % (58.71) % Change in valuation allowance (14.42) % 29.98 % Effective tax rate 0.00 % 0.00 %
Schedule of components of deferred tax assets	September 30, 2019 2018 Deferred tax assets (liabilities): Stock based compensation $ 1,960,000 $ 1,947,000 Depreciation and amortization 277,000 339,000 Net operating loss carry forward 14,091,000 13,248,000 Tax credits 1,171,000 944,000 Other 397,000 69,000 Less: valuation allowance (17,896,000) (16,547,000) Net deferred tax asset $ — $ —

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Sep. 30, 2019
COMMITMENTS AND CONTINGENCIES
Schedule of future minimum rental payments	For the fiscal year ending September 30, 2020 $ 7,104 2021 595 Total $ 7,699

GEOGRAPHIC AREA INFORMATION (Ta

GEOGRAPHIC AREA INFORMATION (Tables)	12 Months Ended
	Sep. 30, 2019
GEOGRAPHIC AREA INFORMATION
Schedule of net sales by geographic location of customers	Year Ended September 30, 2019 2018 Americas $ 4,166,315 $ 2,141,169 Europe 600,374 1,004,452 Asia and other 622,400 757,722 Total $ 5,389,089 $ 3,903,343

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Sep. 30, 2019
FAIR VALUE OF FINANCIAL INSTRUMENTS
Summarizes of the significant unobservable inputs in fair value measurement of Level 3 financial assets and liabilities	Fair value at Carrying value at September 30, September 30, Weighted 2019 2019 Valuation Technique Unobservable Input Range Average Liabilities: Secured Convertible Notes ("Existing Notes") $ 102,777 $ 104,482 Monte Carlo simulation Annualized volatility 87.22% - 92.66% 87.39 %
Summary of changes in fair value of the secured convertible notes (Level 3 financial liabilities)	2019 Beginning balance $ 3,516,237 Change in fair value included in earnings (1,972,955) Change in fair value for conversion of notes payable (1,440,505) Ending balance $ 102,777

LIQUIDITY AND MANAGEMENT'S PL_2

LIQUIDITY AND MANAGEMENT'S PLAN (Details) - USD ($)	Nov. 15, 2019	Aug. 07, 2019	Sep. 30, 2019	Sep. 30, 2018
Liquidity And Managements Plan [Line items]
Accumulated deficit			$ (256,805,589)	$ (248,366,083)
Net loss			(8,632,446)	(11,692,928)
Operating cash flow			(6,861,772)
Cash and cash equivalents			558,988	$ 1,659,564
Working capital			$ 99,682
Common stock issued in private placement, net of offering costs (in shares)		100,617
Subsequent Event
Liquidity And Managements Plan [Line items]
Number of warrants sold along with each share	1
Offering | Subsequent Event
Liquidity And Managements Plan [Line items]
Common stock issued in private placement, net of offering costs (in shares)	2,285,000
Number of common stock called by warrants	2,285,000
Number of shares per warrant	1
Public offering price for each share together with warrant	$ 5.25
Gross proceeds of offering before underwriter discounts, commissions and other offering expenses	$ 12,000,000
Net proceeds of offering after underwriter discounts, commissions and other offering expenses	$ 10,800,000
Additional number of common stock called by warrants	342,750
Warrants exercisable expiration period	45 days
Offering | Warrant | Subsequent Event
Liquidity And Managements Plan [Line items]
Additional number of common stock called by warrants	342,750

SUMMARY OF ACCOUNTING POLICIE_3

SUMMARY OF ACCOUNTING POLICIES (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Revenues
Total revenues	$ 5,389,089
Cost of revenues	877,613
Loss from operations	(9,124,271)	$ (11,646,308)
Assets
Prepaids and other current assets	604,740	635,174
Liabilities and (deficit) equity
Deferred Revenue	628,993	1,856,693
Accumulated Deficit	(256,805,589)	$ (248,366,083)
Product
Revenues
Total revenues	2,136,055
Service
Revenues
Total revenues	3,253,034
Prior U.S. GAAP
Revenues
Total revenues	6,304,385
Cost of revenues	884,281
Loss from operations	(8,215,643)
Assets
Prepaids and other current assets	611,408
Liabilities and (deficit) equity
Deferred Revenue	802,107
Accumulated Deficit	(256,805,589)
Prior U.S. GAAP | Product
Revenues
Total revenues	2,902,247
Prior U.S. GAAP | Service
Revenues
Total revenues	3,402,138
Topic 606 impact
Revenues
Total revenues	(915,296)
Cost of revenues	(6,668)
Loss from operations	(908,628)
Assets
Prepaids and other current assets	(6,668)
Liabilities and (deficit) equity
Deferred Revenue	(173,114)
Accumulated Deficit	0
Topic 606 impact | Product
Revenues
Total revenues	(766,192)
Topic 606 impact | Service
Revenues
Total revenues	$ (149,104)

SUMMARY OF ACCOUNTING POLICIE_4

SUMMARY OF ACCOUNTING POLICIES - Summary of revenues disaggregated by our business operations and timing of revenue recognition (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Total	$ 5,389,089	$ 3,903,343
Research and development services (over-time)
Disaggregation of Revenue [Line Items]
Total	2,975,961	1,766,202
Supply chain
Disaggregation of Revenue [Line Items]
Total	1,438,106	674,224
Asset marking
Disaggregation of Revenue [Line Items]
Total	587,012	1,002,934
Large scale DNA production
Disaggregation of Revenue [Line Items]
Total	$ 388,010	$ 459,983

SUMMARY OF ACCOUNTING POLICIE_5

SUMMARY OF ACCOUNTING POLICIES - Summary of opening and closing balances of the Company's contract balances (Details) - Contract liabilities - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Schedule Of Contract Balances [Line Items]
Deferred Revenue	$ 628,993	$ 1,356,502
Change in contract liabilities	$ (727,509)

SUMMARY OF ACCOUNTING POLICIE_6

SUMMARY OF ACCOUNTING POLICIES - Property and equipment (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Line Items]
Total	$ 2,519,482	$ 2,456,029
Accumulated depreciation	2,293,261	2,036,255
Property and equipment, net	226,221	419,774
Computer equipment
Property, Plant and Equipment [Line Items]
Total	265,542	135,621
Lab equipment
Property, Plant and Equipment [Line Items]
Total	1,885,487	1,951,955
Furniture
Property, Plant and Equipment [Line Items]
Total	74,781	74,781
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total	$ 293,672	$ 293,672

SUMMARY OF ACCOUNTING POLICIE_7

SUMMARY OF ACCOUNTING POLICIES - Summary of anti-dilutive securities not included computation of net loss per share (Details) - shares	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of diluted net loss per share	573,269	476,298
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of diluted net loss per share	263,592	305,217
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of diluted net loss per share	199,395	154,581
Secured convertible note
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of diluted net loss per share	74,282	16,500

SUMMARY OF ACCOUNTING POLICIE_8

SUMMARY OF ACCOUNTING POLICIES - Additional Information (Details)	Oct. 31, 2019$ / shares	Sep. 30, 2019USD ($)customer$ / shares	Sep. 30, 2018USD ($)customer$ / shares	Nov. 15, 2019$ / shares	Nov. 01, 2019$ / shares
Concentration Risk [Line Items]
Research and development		$ 2,967,278	$ 2,751,578
Advertising expense		133,000	287,156
Cumulative adjustment to opening retained earnings in fiscal 2019		493,000
Allowance on accounts receivable		$ 4,500	13,133
Depreciation method		Straight line method
Depreciation expenses		$ 260,992	$ 369,924
Revenue recognized in contract liabilities		$ 1,224,331
Common stock, par value | $ / shares		$ 0.001	$ 0.001
Transfers from Level 1 to Level 2, Assets		$ 0
Transfers from Level 2 to Level 1, Assets		0
Transfers from Level 1 to Level 2, Liabilities		0
Transfers from Level 2 to Level 1, Liabilities		0
Transfers Into Level 3, Assets		0
Transfers out of Level 3, Assets		0
Transfers Into Level 3, Liabilities		0
Transfers out of Level 3, Liabilities		$ 0
ASU 2017-11
Concentration Risk [Line Items]
Effect of adoption in basic and diluted earnings per share | $ / shares		$ 0.34
Subsequent Event
Concentration Risk [Line Items]
Reverse stock split of its common stock	0.025
Common stock, par value | $ / shares	$ 0.001			$ 0.001	$ 0.001
Computer equipment
Concentration Risk [Line Items]
Estimated useful life for computer equipment, lab equipment and furniture			3 years
Lab equipment
Concentration Risk [Line Items]
Estimated useful life for computer equipment, lab equipment and furniture		3 years
Furniture
Concentration Risk [Line Items]
Estimated useful life for computer equipment, lab equipment and furniture		3 years
Leasehold improvements
Concentration Risk [Line Items]
Estimated useful life for computer equipment, lab equipment and furniture		amortized over the shorter of their useful life or the remaining lease terms
Accounts Receivable | One customer
Concentration Risk [Line Items]
Concentration risk percentage		77.00%	80.00%
Number of customers | customer		1	1
Customer Concentration Risk | Total Revenue
Concentration Risk [Line Items]
Number of customers | customer		3	4
Customer Concentration Risk | Total Revenue | One customer
Concentration Risk [Line Items]
Concentration risk percentage		27.00%	24.00%
Customer Concentration Risk | Total Revenue | Two customer
Concentration Risk [Line Items]
Concentration risk percentage		26.00%	16.00%
Customer Concentration Risk | Total Revenue | Three customers
Concentration Risk [Line Items]
Concentration risk percentage		15.00%	14.00%
Customer Concentration Risk | Total Revenue | Four customer
Concentration Risk [Line Items]
Concentration risk percentage			11.00%
Customer Concentration Risk | Accounts Receivable | One customer
Concentration Risk [Line Items]
Concentration risk percentage		15.00%

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 87,886	$ 147,984
Finished goods	54,743	73,385
Total	$ 142,629	$ 221,369

ASSET PURCHASE AGREEMENT (Detai

ASSET PURCHASE AGREEMENT (Details) - USD ($)	Aug. 07, 2019	Aug. 31, 2019	Sep. 30, 2019	Sep. 30, 2018
Asset Purchase Agreement [Line Items]
Purchase price for assets acquired			$ 67,438	$ 266,008
Common stock value			1,200	753
Research and Development Expense			2,967,278	$ 2,751,578
Asset Purchase Agreement
Asset Purchase Agreement [Line Items]
Research and Development Expense			345,332
Contingent consideration liability			$ 0
Asset Purchase Agreement | Vitatex, Inc | LineaRx, Inc.
Asset Purchase Agreement [Line Items]
Purchase price for assets acquired	$ 500,000
Initial payment at closing using common stock	300,000
Payments for issuance of common stock before September 30, 2019	100,000
Payments for issuance of common stock before December 31, 2019	100,000
Outstanding cash and/or equity obligations	11,710
Reduction in cash payment on outstanding cash and equity obligations	88,290
Additional performance-based equity distributions	500,000
Common stock value	150,000	$ 113,132
Common stock due on occurrence of completing program filings	250,000
Threshold limit of Assets yield in gross revenue	100,000
Threshold limit of Assets yield in additional gross revenue	$ 200,000
Percentage of common stock issued		2.00%

INTANGIBLE ASSETS - Summary of

INTANGIBLE ASSETS - Summary of intangible assets (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
INTANGIBLE ASSETS
Internally developed software (5-year useful life)	$ 157,221	$ 157,221
Customer relationships (10-year useful life)	621,000	621,000
Intellectual property (5-15 years)	917,350	917,350
Intangible assets, gross	1,695,571	1,695,571
Less: Accumulated amortization	960,800	831,368
Total	$ 734,771	$ 864,203

INTANGIBLE ASSETS - Summary o_2

INTANGIBLE ASSETS - Summary of intangible assets (Parentheticals) (Details)	12 Months Ended
	Sep. 30, 2019
Internally developed software
Finite-Lived Intangible Assets [Line Items]
Intangible assets, estimated useful life (in years)	5 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, estimated useful life (in years)	10 years
Intellectual property | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, estimated useful life (in years)	5 years
Intellectual property | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, estimated useful life (in years)	15 years

INTANGIBLE ASSETS - Estimated a

INTANGIBLE ASSETS - Estimated amortization expense of intangible assets (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
INTANGIBLE ASSETS
2020	$ 129,432
2021	91,967
2022	91,967
2023	91,967
2024	91,967
Thereafter	237,471
Total	$ 734,771	$ 864,203

INTANGIBLE ASSETS - Additional

INTANGIBLE ASSETS - Additional Information (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
INTANGIBLE ASSETS
Total amortization expense charged to operations	$ 129,432	$ 177,872

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Summary of accounts payable and accrued liabilities (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable	$ 1,152,103	$ 500,849
Accrued salaries payable	319,260	401,130
Income taxes payable	15,000	0
Other accrued expenses	130,634	63,188
Total	$ 1,616,997	$ 965,167

SECURED CONVERTIBLE NOTES PAY_2

SECURED CONVERTIBLE NOTES PAYABLE (Details)	1 Months Ended			12 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares	Jul. 31, 2019USD ($)	Jul. 17, 2019USD ($)	Sep. 30, 2019USD ($)D$ / shares	Sep. 30, 2018USD ($)	Nov. 29, 2018USD ($)	Aug. 31, 2018USD ($)
Debt Instrument [Line Items]
Reclassified amount from accrued liabilities to senior secured notes payable				$ 126,980
Debt issuance costs based on financing				64,848
Amortization of debt issuance costs				23,828	$ 1,479
Unamortization of debt issuance costs				59,698
Secured notes payable	$ 1,602,777			1,602,777
Interest expense				$ 138,604	$ 8,136
Effective interest rate	7.50%			7.50%	7.40%
Convertible debt converted into common stock				$ 1,440,505	$ 0
Loss on extinguishment of debt				(1,260,399)	$ 0
Secured Convertible Notes ("Existing Notes")
Debt Instrument [Line Items]
Debt issuance costs based on financing				64,608
Conversion price reduce into equity			21.60
Loss on extinguishment of debt		$ 1,260,399
Secured Convertible Notes ("Existing Notes") | Dillon Hill Capital, LLC
Debt Instrument [Line Items]
Gross proceeds in secured convertible debt			$ 1,500,000
Percentage of secured convertible debt			6.00%
Conversion price reduce into equity			21.60
Sale up to additional principal amount			$ 500,000
Approval of convertible debt principal amount			1,000,000
Convertible debt converted into common stock			$ 1,000,000
Percentage of aggregate principal amount of convertible debt and outstanding		30.00%
Percentage of outstanding principal of accrued and unpaid interest		130.00%
Amended Existing Notes
Debt Instrument [Line Items]
Loss on extinguishment of debt	$ 1,907,379
Convertible debt on fair value disclosures		$ 3,498,457
Gain on change in fair value				$ 65,576
Debt conversion amount	$ 2,200,000
Conversion of share price of debt | shares	102,893
Minimum | Secured Convertible Notes ("Existing Notes")
Debt Instrument [Line Items]
Percentage of change in fair value of convertible debt		10.00%
Common Stock
Debt Instrument [Line Items]
Common stock conversion price | $ / shares				$ 100
Common stock consecutive trading days | D				20
Common stock closing price trading days | $ / shares				$ 140
Common Stock | Secured Convertible Notes ("Existing Notes") | Dillon Hill Capital, LLC
Debt Instrument [Line Items]
Common stock consecutive trading days	20
Common stock closing price trading days | $ / shares	$ 140
Percentage of issued warrants equal to common stock	40.00%
Percentage of warrant exercise price equal to conversion price	105.00%
Dr. James A. Hayward, Chairman, Chief Executive Officer and President ("CEO") | Amended Existing Notes
Debt Instrument [Line Items]
Debt conversion amount	$ 1,590,000
Conversion of share price of debt | shares	73,400
Other Directors, Officers, and Affiliates | Secured Convertible Notes ("Existing Notes")
Debt Instrument [Line Items]
Debt conversion amount	$ 409,000
Conversion of share price of debt | shares	18,929
Securities Purchase Agreement | Accredited investors Management team and Board of Directors
Debt Instrument [Line Items]
Aggregate principal amount							$ 1,650,000
Interest rate							6.00%
Securities Purchase Agreement | Management and Board of Directors
Debt Instrument [Line Items]
Aggregate principal amount							$ 1,185,000
Securities Purchase Agreement | Chairman President And Chief Executive Officer And One Member Of The Management Team | Secured Convertible Notes ("Existing Notes")
Debt Instrument [Line Items]
Aggregate principal amount						$ 550,000
Interest rate						6.00%

CAPITAL STOCK (Details)

CAPITAL STOCK (Details)	Nov. 15, 2019USD ($)$ / sharesshares	Oct. 31, 2019$ / shares	Aug. 22, 2019USD ($)$ / sharesshares	Aug. 07, 2019$ / sharesshares	Jan. 25, 2019USD ($)shares	Dec. 26, 2018$ / sharesshares	Dec. 21, 2018USD ($)$ / sharesshares	Dec. 21, 2019$ / sharesshares	Nov. 01, 2019$ / shares	Sep. 30, 2019$ / sharesshares	Sep. 30, 2018$ / sharesshares
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Common stock, par value | $ / shares										$ 0.001	$ 0.001
Common stock issued in private placement, net of offering costs (in shares)				100,617
Exercise price of warrants (in dollars per share) | $ / shares				$ 20				$ 17.60
Number of common stock issued				100,617
Number of warrants outstanding				143,252						263,592	305,217
Accredited investors
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Common stock issued in private placement, net of offering costs (in shares)			38,704
Number of common stock issued			38,704
Common stock, issue price | $ / shares			$ 10.80
Total Gross Proceeds | $			$ 418,000
Accredited investors, minimum stockholding percentage			5.00%
Subsequent Event
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Reverse stock split		0.025
Common stock, par value | $ / shares	$ 0.001	$ 0.001							$ 0.001
Exercise price of warrants (in dollars per share) | $ / shares	$ 5.60
Offering
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Exercise price of warrants (in dollars per share) | $ / shares										$ 12
Offering | Subsequent Event
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Common stock issued in private placement, net of offering costs (in shares)	2,285,000
Number of common stock called by warrants	2,285,000
Number of common shares that each warrant has right to purchase	1
Exercise price of warrants (in dollars per share) | $ / shares	$ 5.25
Public offering price for each share together with warrant | $ / shares	$ 5.25
Additional number of common stock called by warrants	342,750
Warrants exercisable expiration period	45 days
Gross proceeds of offering before underwriter discounts, commissions and other offering expenses | $	$ 12,000,000
Proceeds of offering if underwriters exercise in full their overallotment option | $	13,800,000
Net proceeds from offering after deducting underwriting fees and other expense | $	$ 10,800,000
Minimum exercise price | $ / shares	$ 1.47
Beneficial Ownership Limitation (as a percent)	4.99%
Beneficial Ownership Limitation, at the election of the holder (as a percent)	9.99%
Prior notice period to increase beneficial ownership	61 days
Number of common stock issued	2,285,000
Number of common stock called by warrants	2,285,000
Underwriting Agreement [Member] | Maxim Group Llc [Member]
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Common stock issued in private placement, net of offering costs (in shares)							137,500
Number of common stock called by warrants							137,500
Exercise price of warrants (in dollars per share) | $ / shares							$ 20
Public offering price for each share together with warrant | $ / shares							$ 20
Additional number of common stock called by warrants							20,625
Gross proceeds of offering before underwriter discounts, commissions and other offering expenses | $							$ 2,750,000
Net proceeds from offering after deducting underwriting fees and other expense | $							$ 2,262,000
Minimum exercise price | $ / shares							$ 5.60
Number of common stock issued							137,500
Determinant for number of shares issued on exercise of warrants							0.70
Number of warrants outstanding								68,375
Number of common stock called by warrants							137,500
Number of warrants purchased						20,000
Term of warrants							5 years
Purchase price per warrant (in dollars per warrant) | $ / shares						$ 0.00
Underwriting Agreement [Member] | Maxim Group Llc [Member] | Over-Allotment Option [Member]
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Number of aggregate common stock issued including exercise of over-allotment option					150,000
Gross amount of common stock and warrants issued including exercise of over-allotment option | $					$ 3,000,000
Net amount of common stock and warrants issued including exercise of over-allotment option | $					$ 2,500,000
Number of common shares issued under underwriters partial exercise of over-allotment option					12,500
Amount of common shares issued under underwriters partial exercise of over-allotment option | $					$ 250,000
Number of warrants issued including exercise of over-allotment option					157,500
Net proceeds from over allotment after deducting underwriting fees and other expense | $					$ 201,000

CAPITAL STOCK - Additional Info

CAPITAL STOCK - Additional Information (Details) - USD ($)	Dec. 21, 2019	Aug. 07, 2019	Dec. 22, 2017	Sep. 30, 2019	Sep. 30, 2018
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Number of common stock issued		100,617
Aggregate gross proceeds from private placement				$ 402,381	$ 0
Exercise price of warrants (in dollars per share)	$ 17.60	$ 20
Value of common stock and warrants purchased	$ 281,042			$ 78,785
Securities Purchase Agreement
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Number of common stock issued			68,375
Number of common stock called by warrants			68,375
Aggregate gross proceeds from private placement			$ 4,786,250
Share price (in dollars per share)			$ 70
Net proceeds after deducting placement agent fees and offering expenses			$ 4,200,000
Warrants exercisable expiration period			5 years
Exercise price of warrants (in dollars per share)			$ 80
Minimum exercise price			$ 17.60

STOCK OPTIONS AND WARRANTS - Tr

STOCK OPTIONS AND WARRANTS - Transactions involving warrants (Details)	12 Months Ended
	Sep. 30, 2019$ / sharesshares
Number of Shares
Balance at October 1, 2018 | shares	305,217
Granted | shares	258,502
Exercised | shares	(199,127)
Cancelled or expired | shares	(101,000)
Balance, September 30, 2019 | shares	263,592
Weighted Average Exercise Price Per Share
Balance at October 1, 2018 | $ / shares	$ 129.60
Granted | $ / shares	18.36
Exercised | $ / shares	18.42
Cancelled or expired | $ / shares	87.70
Balance, September 30, 2019 | $ / shares	$ 131.12

STOCK OPTIONS AND WARRANTS - _2

STOCK OPTIONS AND WARRANTS - Transactions involving stock options issued to employees (Details) - Stock options - Incentive Stock Plan 2005 [Member]	12 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Number of Shares
Outstanding at October 1, 2018	154,676
Granted	86,349
Exercised	0
Cancelled or expired	(41,630)
Outstanding at September 30, 2019	199,395
Vested at September 30, 2019	162,112
Non-vested at September 30, 2019	37,283
Weighted Average Exercise Price Per Share
Outstanding at October 1, 2018 | $ / shares	$ 125.16
Granted | $ / shares	100.65
Cancelled or expired | $ / shares	(195.96)
Outstanding at September 30, 2019 | $ / shares	99.68
Vested at September 30, 2019 | $ / shares	116.50
Non-vested at September 30, 2019 | $ / shares	$ 27.01
Aggregate Intrinsic Value, Vested | $	$ 0
Aggregate Intrinsic Value, Non-vested | $	$ 0
Weighted Average Contractual Life (years), Vested	6 years 2 months 5 days
Weighted Average Contractual Life (years), Vested	9 years 5 months 23 days

STOCK OPTIONS AND WARRANTS - Su

STOCK OPTIONS AND WARRANTS - Summary of value of options granted using Black Scholes Option Pricing Model with weighted average assumptions (Details) - $ / shares	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
STOCK OPTIONS AND WARRANTS
Stock price	$ 32.82	$ 52.40
Exercise price	$ 100.65	$ 80
Expected term, years	4 years 4 months 24 days	4 years 5 months 1 day
Dividend yield	0.00%	0.00%
Volatility	89.00%	86.00%
Risk free rate	2.43%	2.70%

STOCK OPTIONS AND WARRANTS - Em

STOCK OPTIONS AND WARRANTS - Employee Stock Options - Additional Information (Details)	12 Months Ended
	Sep. 30, 2019USD ($)Options$ / sharesshares	Sep. 30, 2018USD ($)Options$ / sharesshares	May 17, 2019shares	May 16, 2019shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense | $	$ 1,129,110	$ 1,356,351
Unrecorded compensation cost related to non-vested awards | $	$ 434,553
Weighted average period of non-vested awards options	7 months 10 days
Weighted average grant date fair value for options granted | $ / shares	$ 11.51	$ 30
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense | $	$ 221,046	$ 145,053
Stock options | Employees, consultants and non-employee board of director members
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	86,349	54,704
Number of stock option modified | Options	35,040	16,667
Stock options | Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted		12,500
Stock options | Incentive Stock Plan 2005 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock as stock awards and stock options			358,334	208,334
Issuance of additional common stock as stock awards and stock options	20,834
Cumulative number of shares issued	6,894
Options to purchase shares under the 2005 Incentive stock plan	212,271
Number of shares granted	86,349

INCOME TAXES - Provision (Benef

INCOME TAXES - Provision (Benefit) (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Federal:
Current	$ 0	$ 0
Deferred	(1,658,000)	4,430,000
Federal income tax expense benefit, total	(1,658,000)	4,430,000
State and local:
Current	0	0
Deferred	308,000	(925,000)
State and local income tax expense benefit, total	308,000	(925,000)
Foreign:
Current	15,000	0
Deferred	0	0
Foreign income tax expense benefit, total	15,000	0
Change in valuation allowance	1,350,000	(3,505,000)
Income tax provision (benefit)	$ 15,000	$ 0

INCOME TAXES - Provision for in

INCOME TAXES - Provision for income taxes differ from amount of income tax determined (Details)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
INCOME TAXES
Statutory federal income tax rate	21.00%	24.28%
Statutory state and local income tax rate (1%, as of September 30, 2019 and 2018), net of federal benefit	0.52%	2.50%
Stock based compensation	(1.62%)	(2.29%)
Other permanent differences	(3.15%)	4.24%
Change in deferred tax rate	(2.33%)	0.00%
Impact of change in Federal statutory tax rate	0.00%	(58.71%)
Change in valuation allowance	(14.42%)	29.98%
Effective tax rate	0.00%	0.00%

INCOME TAXES (Parentheticals) (

INCOME TAXES (Parentheticals) (Details)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
INCOME TAXES
Federal benefit	1.00%	1.00%

INCOME TAXES - Components of de

INCOME TAXES - Components of deferred tax assets (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Deferred tax assets (liabilities):
Stock based compensation	$ 1,960,000	$ 1,947,000
Depreciation and amortization	277,000	339,000
Net operating loss carry forward	14,091,000	13,248,000
Tax credits	1,171,000	944,000
Other	397,000	69,000
Less: valuation allowance	(17,896,000)	(16,547,000)
Net deferred tax asset	$ 0	$ 0

INCOME TAXES - Additional Infor

INCOME TAXES - Additional Information (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Deferred Income Taxes [Line Items]
Federal and net operating loss carryforward	$ 58,458,000
State net operating loss carryforward	75,496,000
Federal carryforwards subject to indefinite lives	5,230,470
State carryforwards subject to indefinite lives	5,797,009
Federal research and development credits	762,000
State investment tax credits	392,000
Change in valuation allowance	(1,350,000)	$ 3,505,000
Maximum
Deferred Income Taxes [Line Items]
Operating loss carryforwards limitations on use amount	1,103,000
Minimum
Deferred Income Taxes [Line Items]
Operating loss carryforwards limitations on use amount	$ 786,000

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Future minimum rental payments (Details)	Sep. 30, 2019USD ($)
COMMITMENTS AND CONTINGENCIES
2020	$ 7,104
2021	595
Total	$ 7,699

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Operating Leases (Details)	1 Months Ended		12 Months Ended
	Nov. 17, 2017USD ($)ft²	Jun. 15, 2013USD ($)ft²	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)
COMMITMENTS AND CONTINGENCIES
Area of property under operating lease | ft²		30,000
Extended operating lease for additional period		3 years
Base rent during initial lease term per annum | $		$ 458,098
Area of laboratory space | ft²		1,500
Lease for satellite testing | ft²	1,108
Term lease	3 years
Base rent | $	$ 6,500
Total rent expense | $			$ 516,988	$ 528,234

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES - Employment Agreement (Details) - USD ($)	May 02, 2018	Jul. 28, 2017	Sep. 30, 2019	Mar. 15, 2018	Sep. 04, 2019
COMMITMENTS AND CONTINGENCIES
Revenue bonus recorded to long term accrued liabilities			$ 590,502
Employment Agreement [Member] | CEO
COMMITMENTS AND CONTINGENCIES
Reduced salary					$ 50,000
Additional Bonus Opportunity			$ 150,000
Approved bonus	$ 403,623			$ 121,125
Threshold revenue for two consecutive quarters				3,000,000
Threshold revenue for fiscal year				$ 12,000,000
New Employment Agreement | CEO
COMMITMENTS AND CONTINGENCIES
Agreement renewal period		1 year
Special cash incentive bonus		$ 800,000
Special cash incentive bonus payable on completing threshold annual revenue		300,000
Threshold annual revenue		8,000,000
Special cash incentive bonus payable on completing threshold annual revenue in excess of first threshold		100,000
Threshold annual revenue in excess of first threshold		2,000,000
Annual base salary		$ 400,000
Compensation Description		The agreement with Dr. Hayward also provides that if he is terminated before the end of the initial or a renewal term by the Company without cause or if Dr. Hayward terminates his employment for good reason, then, in addition to previously earned and unpaid salary, bonus and benefits, and subject to the delivery of a general release and continuing compliance with restrictive covenants, Dr. Hayward will be entitled to receive a pro rata portion of the greater of either (X) the annual bonus he would have received if employment had continued through the end of the year of termination or (Y) the prior year's bonus; salary continuation payments for two years following termination equal to the greater of (i) three times base salary or (ii) two times base salary plus bonus; company-paid COBRA continuation coverage for 18 months post-termination; continuing life insurance benefits (if any) for two years; and extended exercisability of outstanding vested options (for three years from termination date or, if earlier, the expiration of the fixed option term). If termination of employment as described above occurs within six months before or two years after a change in control of the Company, then, in addition to the above payments and benefits, all of Dr. Hayward's outstanding options and other equity incentive awards will become fully vested and Dr. Hayward will receive a lump sum payment of the amounts that would otherwise be paid as salary continuation. In general, a change in control will include a 30% or more change in ownership of the Company.

GEOGRAPHIC AREA INFORMATION (De

GEOGRAPHIC AREA INFORMATION (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
GEOGRAPHIC AREA INFORMATION
Total	$ 5,389,089	$ 3,903,343
Americas
GEOGRAPHIC AREA INFORMATION
Total	4,166,315	2,141,169
Europe
GEOGRAPHIC AREA INFORMATION
Total	600,374	1,004,452
Asia and other
GEOGRAPHIC AREA INFORMATION
Total	$ 622,400	$ 757,722

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details)	12 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)
Changes in fair value of the secured convertible notes
Change in fair value included in earnings	$ (1,972,955)	$ 0
Change in fair value for conversion of notes payable	(1,440,505)
Level 3 | Secured Convertible Notes ("Existing Notes")
Liabilities
Fair value	102,777	3,516,237	$ 102,777
Carrying value			$ 104,482
Changes in fair value of the secured convertible notes
Beginning balance	3,516,237
Change in fair value included in earnings	(1,972,955)
Change in fair value for conversion of notes payable	(1,440,505)
Ending balance	$ 102,777	$ 3,516,237
Level 3 | Secured Convertible Notes ("Existing Notes") | Minimum
Liabilities
Measurement input (in percent)			87.22
Level 3 | Secured Convertible Notes ("Existing Notes") | Maximum
Liabilities
Measurement input (in percent)			92.66
Level 3 | Secured Convertible Notes ("Existing Notes") | Weighted Average
Liabilities
Measurement input (in percent)			87.39