Applied DNA Sciences (APDN) 10-Q 13 Aug 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2018	Aug. 10, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	APPLIED DNA SCIENCES INC
Entity Central Index Key	744,452
Trading Symbol	apdn
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		30,112,057
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2018	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 2,514,816	$ 2,959,781
Accounts receivable, net of allowance of $13,133 at June 30, 2018 and $10,000 at September 30, 2017	1,414,948	2,587,969
Inventories	295,278	326,468
Prepaid expenses and other current assets	602,800	366,954
Total current assets	4,827,842	6,241,172
Property and equipment, net	535,805	523,688
Other assets:
Deposits	62,380	61,626
Goodwill	285,386	285,386
Intangible assets, net	896,562	1,042,076
Total Assets	6,607,975	8,153,948
Current liabilities:
Accounts payable and accrued liabilities	818,642	944,133
Deferred revenue	2,298,152	351,735
Total current liabilities	3,116,794	1,295,868
Long term accrued liabilities	433,051
Total Liabilities	3,549,845	1,295,868
Commitments and contingencies
Stockholders' Equity
Preferred stock, value
Common stock, par value $0.001 per share; 500,000,000 shares authorized; 30,112,057 and 27,377,057 shares issued and outstanding as of June 30, 2018 and September 30, 2017, respectively	30,112	27,377
Additional paid in capital	247,918,818	243,503,858
Accumulated deficit	(244,890,800)	(236,673,155)
Total stockholders' equity	3,058,130	6,858,080
Total Liabilities and Stockholders' Equity	6,607,975	8,153,948
Series A Preferred stock
Stockholders' Equity
Preferred stock, value
Series B Preferred stock
Stockholders' Equity
Preferred stock, value

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Jun. 30, 2018	Sep. 30, 2017
Allowance on accounts receivable (in dollars)	$ 13,133	$ 10,000
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 (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	30,112,057	27,377,057
Common stock, shares outstanding	30,112,057	27,377,057
Series A Preferred stock
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
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

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Total revenues	$ 1,016,355	$ 1,797,382	$ 2,707,978	$ 3,605,763
Cost of revenues	252,562	232,348	956,155	804,552
Operating expenses:
Selling, general and administrative	2,882,158	3,402,817	7,471,917	10,534,105
Research and development	625,006	603,095	2,034,886	1,757,616
Depreciation and amortization	122,999	161,441	425,927	486,786
Total operating expenses	3,630,163	4,167,353	9,932,730	12,778,507
LOSS FROM OPERATIONS	(2,866,370)	(2,602,319)	(8,180,907)	(9,977,296)
Other income (expense):
Interest income, net		228		2,763
Other expense	(21,353)	(8,758)	(36,738)	(26,556)
Loss before provision for income taxes	(2,887,723)	(2,610,849)	(8,217,645)	(10,001,089)
Provision for income taxes	0	0	0	0
NET LOSS	$ (2,887,723)	$ (2,610,849)	$ (8,217,645)	$ (10,001,089)
Net loss per share-basic and diluted (in dollars per share)	$ (0.10)	$ (0.10)	$ (0.28)	$ (0.38)
Weighted average shares outstanding-Basic and diluted (in shares)	30,112,057	26,374,023	29,290,555	26,049,866
Product revenues
Revenues:
Total revenues	$ 393,758	$ 1,493,449	$ 1,230,232	$ 2,887,054
Service revenues
Revenues:
Total revenues	$ 622,597	$ 303,933	$ 1,477,746	$ 718,709

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net loss	$ (8,217,645)	$ (10,001,089)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	425,927	486,786
Stock-based compensation	184,806	2,562,300
Provision for bad debts	20,552	368,168
Change in operating assets and liabilities:
Accounts receivable	1,152,470	1,576,636
Inventories	31,190	(78,761)
Prepaid expenses and other current assets and deposits	(236,600)	86,272
Accounts payable and accrued liabilities	284,550	(418,689)
Deferred revenue	1,946,417	(1,146,903)
Net cash used in operating activities	(4,408,333)	(6,565,280)
Cash flows from investing activities:
Purchase of property and equipment	(269,520)	(111,312)
Net cash used in investing activities	(269,520)	(111,312)
Cash flows from financing activities:
Net proceeds from sale of common stock and warrants	4,232,888	4,600,127
Net cash provided by financing activities	4,232,888	4,600,127
Net decrease in cash and cash equivalents	(444,965)	(2,076,465)
Cash and cash equivalents at beginning of period	2,959,781	4,479,274
Cash and cash equivalents at end of period	2,514,816	2,402,809
Supplemental Disclosures of Cash Flow Information:
Cash paid during period for interest	0	0
Cash paid during period for income taxes	0	0
Non-cash investing and financing activities:
Property and equipment acquired, and included in accounts payable	$ 23,010
Common stock issued in exchange for subscription receivable		1,505,000
Reclassification of deferred offering costs to additional paid in capital		$ 13,986

SUMMARY OF ACCOUNTING POLICIES

SUMMARY OF ACCOUNTING POLICIES	9 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
SUMMARY OF ACCOUNTING POLICIES	NOTE A — SUMMARY OF ACCOUNTING POLICIES General The accompanying condensed consolidated financial statements as of June 30, 2018 and for the three and nine month periods ended June 30, 2018 and 2017 are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and are presented in accordance with the requirements of Regulation S-X of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine month periods ended June 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2018. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the fiscal year ended September 30, 2017 and footnotes thereto included in the Annual Report on Form 10-K of Applied DNA Sciences, Inc. (the “Company”) filed with the SEC on December 28, 2017. The condensed consolidated balance sheet as of September 30, 2017 contained herein has been derived from the audited consolidated financial statements as of September 30, 2017, but does not include all disclosures required by GAAP. Business and Basis of Presentation The Company is principally devoted to developing and marketing plant-based or other DNA technology solutions in the United States, Europe and Asia. To date, the Company has produced limited recurring revenues from its products and services and 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 unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, APDN (B.V.I.) Inc., Applied DNA Sciences Europe Limited, and Applied DNA Sciences India Private Limited. Applied DNA Sciences India Private Limited was incorporated in India on June 22, 2017. Significant inter-company transactions and balances have been eliminated in consolidation. 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. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 605, Revenue Recognition (“ASC 605”). ASC 605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred and/or service has been performed; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered or services provided and the collectability of those amounts. Provisions for allowances and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product has not been delivered, service has not been provided, or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered, the service has been provided, or no refund will be required. Revenue arrangements with multiple components are divided into separate units of accounting if certain criteria are met, including whether the delivered component has stand-alone value to the customer. Consideration received is allocated among the separate units of accounting based on their respective selling prices. The selling price for each unit is based on vendor-specific objective evidence, or VSOE, if available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third party evidence is available. The applicable revenue recognition criteria are then applied to each of the units. Revenue for government contract awards, which supports the Company’s development efforts on specific projects, is recognized as firm fixed price government contract awards and are recognized over the period of the contract. The Company recognized revenue from a government contract of $187,010 and $561,030 for the three and nine month periods ended June 30, 2018, respectively. The Company recognized revenue from government contract awards during the three and nine month periods ended June 30, 2017 of $62,337. The Company has a licensing agreement with a company that operates in the cotton industry. The shipment to this customer during the three month period ended June 30, 2018 included extended payment terms, as compared to those defined in the contract and therefore is included in deferred revenue as of June 30, 2018. The extended payment terms for this shipment are three equal installments due 90, 180 and 270 days from shipment. The deferred revenue will be recognized to revenue as the payments become due. At June 30, 2018 and September 30, 2017, the Company recorded deferred revenue of $2,298,152 and $351,735, respectively. 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 second half of the Company’s fiscal year. Use of Estimates The preparation of the financial statements in conformity with 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 recoverability of long-lived assets, fair value calculations for stock based compensation, 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 condensed consolidated financial statements in the period they are deemed necessary. Accordingly, actual results could differ from those estimates. Income Taxes The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company estimates the degree to which tax assets and credit carry forwards will result in a benefit based on expected profitability by tax jurisdiction. In its interim financial statements, the Company follows the guidance in ASC 270, “Interim Reporting” and ASC 740 “Income Taxes”, whereby the Company utilizes the expected annual effective tax rate in determining its income tax provisions for the interim periods. That rate differs from U.S. statutory rates primarily as a result of valuation allowance related to the Company’s net operating loss carryforward as a result of the historical losses of the Company. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code that will affect the Company’s fiscal year ending September 30, 2018, including, but not limited to, reducing the U.S. federal corporate tax rate. The Tax Act reduces the federal corporate tax rate to 21 percent in the fiscal year ending September 30, 2018. Section 15 of the Internal Revenue Code stipulates that the Company’s fiscal year ending September 30, 2018, will have a blended corporate tax rate of approximately 25 percent, which is based on the applicable tax rates before and after the Tax Act and the number of days in the year. The reduction of the corporate tax rate will cause the Company to reduce its deferred tax asset to the lower federal base rate of 21% and adjust the allowance against the deferred tax asset by the same amount. The Company has not yet determined the impact the rate reduction will have on its gross deferred tax asset and liabilities and offsetting valuation allowance. The Company has a full allowance against the deferred tax asset and as a result there was no impact to income tax expense for the three and nine month periods ended June 30, 2018. The changes included in the Tax Act are broad and complex. The final transition impacts of the Tax Act may differ from the above estimate, possibly materially, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates the Company has utilized to calculate the transition impact. The Securities and Exchange Commission has issued rules that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. The Company currently anticipates finalizing and recording any resulting adjustments by the end of its current fiscal year ending September 30, 2018. 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 three and nine month periods ended June 30, 2018 and 2017, 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 loss per share in the future were not included in the computation of diluted net loss per share because to do so would have been anti-dilutive for the three and nine month periods ended June 30, 2018 and 2017 are as follows: 2018 2017 Warrants 12,271,686 9,548,969 Stock options 5,223,221 5,276,222 17,494,907 14,825,191 Stock-Based Compensation The Company accounts for stock-based compensation for employees and directors 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, 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. The Company estimates the number of awards expected to be forfeited and adjusts the estimate when it is no longer probable that the employee will fulfill the service conditions. The Company accounts for stock-based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the fair value of the services rendered, or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in ASC 505-50. 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 three month period ended June 30, 2018 included an aggregate of 18%, 23%, 15%, 12% and 15% from five customers, respectively. The Company’s revenues earned from sale of products and services for the nine month period ended June 30, 2018 included an aggregate of 26%, 17%, and 16% from three customers, respectively. The Company’s revenues earned from sale of products and services for the three month period ended June 30, 2017 included 11% and 71% from two customers, respectively. The Company’s revenues earned from sale of products and services for the nine month period ended June 30, 2017 included 15%, 18% and 38% from three customers, respectively. One customer accounted for 85% and two customers accounted for 93% of the Company’s accounts receivable at June 30, 2018 and September 30, 2017, respectively. Recent Accounting Pronouncements In July 2017, the Financial Accounting Standards Board (“FASB”) issued a two-part Accounting Standards Update (“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 has adopted this guidance for the three and nine month periods ended June 30, 2018. The adoption of this pronouncement did not have a material impact on the Company’s condensed consolidated financial statements. In May 2017, FASB issued ASU 2017-09, Compensation – “Stock Compensation (Topic 718): Scope of Modification Accounting”, 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 does not expect the adoption of ASU 2016-09 to have a material impact on its condensed consolidated financial statements and related disclosures. In January 2017, the FASB ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”). The amendments in this update are to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company is currently evaluating the impact of adopting this guidance. 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 condensed consolidated financial statements. In February 2016, the FASB issued ASU 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 to determine the impact it may have on its condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which was subsequently modified in August 2015 by ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date. This guidance will be effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2017. The core principle of ASU No. 2014-09 is that companies should recognize revenue when the transfer of promised goods or services to customers occurs in an amount that reflects what the company expects to receive. It requires additional disclosures to describe the nature, amount, timing and uncertainty of revenue and cash flows from contracts with customers. In 2016 and 2017, the FASB issued additional ASUs that clarify the implementation guidance on principal versus agent considerations (ASU 2016-08), on identifying performance obligations and licensing (ASU 2016-10), and on narrow-scope improvements and practical expedients (ASU 2016-12), revenue recognition criteria and other technical corrections (ASU 2016-20) as well as clarifying the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets (ASU 2017-05). The Company is in the process of evaluating the provisions of these ASU’s and assessing the potential effect on the Company’s condensed consolidated financial position or results of operations. However, based upon the revenue recognized for the current contracts in place as of June 30, 2018, the Company expects to identify similar performance obligations under these ASUs as compared with the deliverables and separate units of accounting previously identified. The Company is also evaluating the transition guidance under ASU 2014-09 to determine if it will apply the full retrospective or modified retrospective approach.

LIQUIDITY AND MANAGEMENT'S PLAN

LIQUIDITY AND MANAGEMENT'S PLAN	9 Months Ended
	Jun. 30, 2018
Liquidity And Management Plan [Abstract]
LIQUIDITY AND MANAGEMENT'S PLAN	NOTE B — LIQUIDITY AND MANAGEMENT’S PLAN The Company has recurring net losses, which have resulted in an accumulated deficit of $244,890,800 as of June 30, 2018. The Company incurred a net loss of $8,217,645 and generated negative operating cash flow of $4,408,333 for the nine month period ended June 30, 2018. The Company also had working capital of $1,711,048 and cash and cash equivalents of $2,514,816 as of June 30, 2018. The Company’s current capital resources include cash and cash equivalents, accounts receivable, and inventories. Historically, the Company has financed its operations principally from the sale of equity securities. Management has evaluated relevant conditions and events with respect to liquidity requirements for the twelve month period after the Company’s June 30, 2018 financial statements are filed with the SEC. If the Company does not meet its forecasted revenues for the next twelve months, it would not have sufficient cash and cash equivalents to cover the Company’s operating expenses. Due to this condition, management of the Company has established a plan, which has been approved by its Board of Directors that includes potential financing options and/or cost saving measures that will be implemented if revenue targets are not met within a specified time period. Management believes that it is probable that such plan, if implemented, will result in the liquidity deemed necessary for the Company to mitigate the relevant conditions that raised substantial doubt about the Company’s ability to continue as a going concern one year after the date the financial statements are issued. Management believes that the Company’s cash balances on hand, collection of its accounts receivable, reduced cash burn from cost saving measures and proceeds from a potential financing will be sufficient to fund the Company’s net cash requirements for the next twelve months from the date of filing this quarterly report.

INVENTORIES

INVENTORIES	9 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
INVENTORIES	NOTE C — INVENTORIES Inventories consist of the following: June 30, September 30, (unaudited) Raw materials $ 201,507 $ 193,069 Finished goods 93,771 133,399 Total $ 295,278 $ 326,468

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	9 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	NOTE D — ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities are as follows: June 30, September 30, (unaudited) Accounts payable $ 386,920 $ 382,984 Accrued salaries payable 313,664 446,012 Other accrued expenses 118,058 115,137 Total $ 818,642 $ 944,133

CAPITAL STOCK

CAPITAL STOCK	9 Months Ended
	Jun. 30, 2018
Stockholders' Equity Note [Abstract]
CAPITAL STOCK	NOTE E — CAPITAL STOCK On December 20, 2017, the Company entered into a securities purchase agreement with certain institutional investors for the purchase and sale of 2,735,000 shares of its common stock and warrants to purchase an aggregate of 2,735,000 shares of common stock in a registered direct offering with aggregate gross proceeds of $4,786,250, at a combined purchase price of $1.75 per share and warrant. The warrants will be immediately exercisable at a price of $2.00 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 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 $0.44. 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 as set forth therein (including for stock dividends and splits, reverse stock split, recapitalization, reorganization or similar transaction). The warrants are subject to a call provision whereby the Company may, subject to certain provisions, including that the weighted average price of the Company’s common stock has exceeded $5.00 for twenty consecutive trading days, call for cancellation of all or any portion of the warrants not yet exercised. In addition, if and only if there is no effective registration statement registering, or no current prospectus available for, the resale of the warrants, the Purchasers may exercise the warrants by means of a “cashless exercise.” The offering closed on December 22, 2017.

STOCK OPTIONS AND WARRANTS

STOCK OPTIONS AND WARRANTS	9 Months Ended
	Jun. 30, 2018
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
STOCK OPTIONS AND WARRANTS	NOTE F — STOCK OPTIONS AND WARRANTS Warrants The following table summarizes the changes in warrants outstanding and the related prices for the shares of common stock issued to non-employees of the Company. Transactions involving warrants are summarized as follows: Number of Weighted Balance at October 1, 2017 9,540,455 $ 3.60 Granted 2,735,000 2.00 Exercised - - Cancelled or expired (3,769 ) 3.32 Balance at June 30, 2018 12,271,686 $ 3.24 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 (the “Incentive Plan”). The number of shares of common stock that can be issued as stock awards and stock options thereunder is an aggregate of 8,333,333 shares and the number of shares of common stock that can be covered by awards made to any participant in any calendar year is 833,334 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 June 30, 2018, a total of 275,752 shares have been issued and options to purchase 5,745,789 shares have been granted under the Incentive Plan. Transactions involving stock options issued to employees and consultants are summarized as follows: Number of Weighted Aggregate Weighted Average Contractual Life Outstanding at October 1, 2017 5,333,227 $ 3.71 Granted 560,814 1.57 Exercised - - Cancelled or expired (670,820 ) (3.65 ) Outstanding at June 30, 2018 5,223,221 $ 3.48 4.49 Vested at June 30, 2018 4,474,702 $ 3.75 $ - 3.72 Non-vested at June 30, 2018 748,519 $ - During the nine month period ended June 30, 2018, the Company issued stock options to purchase an aggregate of 560,814 shares, of which 556,147 were granted to non-employee Board of Director members. The Company uses the Black Scholes Option Pricing Model to determine the fair value of options granted. The following significant weighted average assumptions in the Black Scholes Option Pricing Model were utilized to estimate the fair value of share based payment awards during the nine month periods ended June 30, 2018 and 2017: Nine Nine Stock price $ 1.57 $ 2.01 Exercise price $ 1.57 $ 2.29 Expected term, years 5.35 5.47 Dividend yield - % -% Volatility 94 % 112 % Risk free rate 2.6 % 2.0 % The Company recorded an expense of $238,738 and $566,377 as stock compensation for the three month periods ended June 30, 2018 and 2017, respectively. The Company recorded an expense of $184,806 and $2,562,300 as stock compensation for the nine month periods ended June 30, 2018 and 2017, respectively. The expense for the nine month period ended June 30, 2018 include the reversal of the expense of $415,786 previously recorded for certain performance based stock options that were cancelled and therefore the performance conditions were no longer probable and the options did not vest. As of June 30, 2018, unrecorded compensation cost related to non-vested awards was $814,781 which is expected to be recognized over a weighted average period of approximately 1.04 years. The weighted average grant date fair value per share for options granted during the nine month period ended June 30, 2018 was $1.16.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE G — 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, 2016, 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. 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, 2017. Effective November 20, 2017, the Company renewed this lease for one additional year, ending October 31, 2018. The Company set up a satellite testing facility in Ahmedabad, India during fiscal 2017. 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 three and nine month periods ended June 30, 2018 were $129,310 and $400,603, respectively. Total rent expense for the three and nine month period ended June 30, 2017 were $134,519 and $417,684, respectively. Employment Agreement The Company has an employment agreement with Dr. James Hayward, its Chief Executive Officer effective July 1, 2016. The initial term was through June 30, 2017, with automatic one-year renewal periods. Under the agreement, Dr. Hayward will be eligible for a special cash incentive bonus of up to $800,000, $300,000 of which will be 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. Dr. Hayward's annual salary under the agreement was $400,000. Effective May 7, 2016, the Chief Executive Officer's annual salary was voluntarily reduced by $100,000. Effective May 20, 2017, the Chief Executive Officer’s annual salary was voluntarily reduced by an additional $50,000. Accordingly, his current annual base salary as of June 30, 2018 is $250,000. Effective March 15, 2018, the Compensation Committee of the Company’s Board of Directors, approved a bonus of $118,750 that would be payable to the Chief Executive Officer 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 Dr. Hayward 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 $395,708. The accrual for the Revenue Bonus of $322,437 is recorded to long term accrued liabilities on the balance sheet as of June 30, 2018. 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	9 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
GEOGRAPHIC AREA INFORMATION	NOTE H– GEOGRAPHIC AREA INFORMATION Net revenues by geographic location of customers are as follows: Three Month Period Ended June 30, 2018 2017 Americas $ 574,805 1,448,776 Europe 228,414 326,606 Asia and other 213,136 22,000 Total $ 1,016,355 $ 1,797,382 Nine Month Period Ended June 30, 2018 2017 Americas $ 1,204,025 2,592,719 Europe 799,003 953,944 Asia and other 704,950 59,100 Total $ 2,707,978 $ 3,605,763

SUMMARY OF ACCOUNTING POLICIES

SUMMARY OF ACCOUNTING POLICIES (Policies)	9 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
General	General The accompanying condensed consolidated financial statements as of June 30, 2018 and for the three and nine month periods ended June 30, 2018 and 2017 are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and are presented in accordance with the requirements of Regulation S-X of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine month periods ended June 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2018. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the fiscal year ended September 30, 2017 and footnotes thereto included in the Annual Report on Form 10-K of Applied DNA Sciences, Inc. (the “Company”) filed with the SEC on December 28, 2017. The condensed consolidated balance sheet as of September 30, 2017 contained herein has been derived from the audited consolidated financial statements as of September 30, 2017, but does not include all disclosures required by GAAP.
Business and Basis of Presentation	Business and Basis of Presentation The Company is principally devoted to developing and marketing plant-based or other DNA technology solutions in the United States, Europe and Asia. To date, the Company has produced limited recurring revenues from its products and services and 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 unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, APDN (B.V.I.) Inc., Applied DNA Sciences Europe Limited, and Applied DNA Sciences India Private Limited. Applied DNA Sciences India Private Limited was incorporated in India on June 22, 2017. Significant inter-company transactions and balances have been eliminated in consolidation.
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.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 605, Revenue Recognition (“ASC 605”). ASC 605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred and/or service has been performed; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered or services provided and the collectability of those amounts. Provisions for allowances and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product has not been delivered, service has not been provided, or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered, the service has been provided, or no refund will be required. Revenue arrangements with multiple components are divided into separate units of accounting if certain criteria are met, including whether the delivered component has stand-alone value to the customer. Consideration received is allocated among the separate units of accounting based on their respective selling prices. The selling price for each unit is based on vendor-specific objective evidence, or VSOE, if available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third party evidence is available. The applicable revenue recognition criteria are then applied to each of the units. Revenue for government contract awards, which supports the Company’s development efforts on specific projects, is recognized as firm fixed price government contract awards and are recognized over the period of the contract. The Company recognized revenue from a government contract of $187,010 and $561,030 for the three and nine month periods ended June 30, 2018, respectively. The Company recognized revenue from government contract awards during the three and nine month periods ended June 30, 2017 of $62,337. The Company has a licensing agreement with a company that operates in the cotton industry. The shipment to this customer during the three month period ended June 30, 2018 included extended payment terms, as compared to those defined in the contract and therefore is included in deferred revenue as of June 30, 2018. The extended payment terms for this shipment are three equal installments due 90, 180 and 270 days from shipment. The deferred revenue will be recognized to revenue as the payments become due. At June 30, 2018 and September 30, 2017, the Company recorded deferred revenue of $2,298,152 and $351,735, respectively. 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 second half of the Company’s fiscal year.
Use of Estimates	Use of Estimates The preparation of the financial statements in conformity with 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 recoverability of long-lived assets, fair value calculations for stock based compensation, 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 condensed consolidated financial statements in the period they are deemed necessary. Accordingly, actual results could differ from those estimates.
Income Taxes	Income Taxes The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company estimates the degree to which tax assets and credit carry forwards will result in a benefit based on expected profitability by tax jurisdiction. In its interim financial statements, the Company follows the guidance in ASC 270, “Interim Reporting” and ASC 740 “Income Taxes”, whereby the Company utilizes the expected annual effective tax rate in determining its income tax provisions for the interim periods. That rate differs from U.S. statutory rates primarily as a result of valuation allowance related to the Company’s net operating loss carryforward as a result of the historical losses of the Company. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code that will affect the Company’s fiscal year ending September 30, 2018, including, but not limited to, reducing the U.S. federal corporate tax rate. The Tax Act reduces the federal corporate tax rate to 21 percent in the fiscal year ending September 30, 2018. Section 15 of the Internal Revenue Code stipulates that the Company’s fiscal year ending September 30, 2018, will have a blended corporate tax rate of approximately 25 percent, which is based on the applicable tax rates before and after the Tax Act and the number of days in the year. The reduction of the corporate tax rate will cause the Company to reduce its deferred tax asset to the lower federal base rate of 21% and adjust the allowance against the deferred tax asset by the same amount. The Company has not yet determined the impact the rate reduction will have on its gross deferred tax asset and liabilities and offsetting valuation allowance. The Company has a full allowance against the deferred tax asset and as a result there was no impact to income tax expense for the three and nine month periods ended June 30, 2018. The changes included in the Tax Act are broad and complex. The final transition impacts of the Tax Act may differ from the above estimate, possibly materially, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates the Company has utilized to calculate the transition impact. The Securities and Exchange Commission has issued rules that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. The Company currently anticipates finalizing and recording any resulting adjustments by the end of its current fiscal year ending September 30, 2018.
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 three and nine month periods ended June 30, 2018 and 2017, 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 loss per share in the future were not included in the computation of diluted net loss per share because to do so would have been anti-dilutive for the three and nine month periods ended June 30, 2018 and 2017 are as follows: 2018 2017 Warrants 12,271,686 9,548,969 Stock options 5,223,221 5,276,222 17,494,907 14,825,191
Stock-based compensation	Stock-Based Compensation The Company accounts for stock-based compensation for employees and directors 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, 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. The Company estimates the number of awards expected to be forfeited and adjusts the estimate when it is no longer probable that the employee will fulfill the service conditions. The Company accounts for stock-based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the fair value of the services rendered, or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in ASC 505-50.
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 three month period ended June 30, 2018 included an aggregate of 18%, 23%, 15%, 12% and 15% from five customers, respectively. The Company’s revenues earned from sale of products and services for the nine month period ended June 30, 2018 included an aggregate of 26%, 17%, and 16% from three customers, respectively. The Company’s revenues earned from sale of products and services for the three month period ended June 30, 2017 included 11% and 71% from two customers, respectively. The Company’s revenues earned from sale of products and services for the nine month period ended June 30, 2017 included 15%, 18% and 38% from three customers, respectively. One customer accounted for 85% and two customers accounted for 93% of the Company’s accounts receivable at June 30, 2018 and September 30, 2017, respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In July 2017, the Financial Accounting Standards Board (“FASB”) issued a two-part Accounting Standards Update (“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 has adopted this guidance for the three and nine month periods ended June 30, 2018. The adoption of this pronouncement did not have a material impact on the Company’s condensed consolidated financial statements. In May 2017, FASB issued ASU 2017-09, Compensation – “Stock Compensation (Topic 718): Scope of Modification Accounting”, 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 does not expect the adoption of ASU 2016-09 to have a material impact on its condensed consolidated financial statements and related disclosures. In January 2017, the FASB ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”). The amendments in this update are to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company is currently evaluating the impact of adopting this guidance. 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 condensed consolidated financial statements. In February 2016, the FASB issued ASU 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 to determine the impact it may have on its condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which was subsequently modified in August 2015 by ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date. This guidance will be effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2017. The core principle of ASU No. 2014-09 is that companies should recognize revenue when the transfer of promised goods or services to customers occurs in an amount that reflects what the company expects to receive. It requires additional disclosures to describe the nature, amount, timing and uncertainty of revenue and cash flows from contracts with customers. In 2016 and 2017, the FASB issued additional ASUs that clarify the implementation guidance on principal versus agent considerations (ASU 2016-08), on identifying performance obligations and licensing (ASU 2016-10), and on narrow-scope improvements and practical expedients (ASU 2016-12), revenue recognition criteria and other technical corrections (ASU 2016-20) as well as clarifying the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets (ASU 2017-05). The Company is in the process of evaluating the provisions of these ASU’s and assessing the potential effect on the Company’s condensed consolidated financial position or results of operations. However, based upon the revenue recognized for the current contracts in place as of June 30, 2018, the Company expects to identify similar performance obligations under these ASUs as compared with the deliverables and separate units of accounting previously identified. The Company is also evaluating the transition guidance under ASU 2014-09 to determine if it will apply the full retrospective or modified retrospective approach.

SUMMARY OF ACCOUNTING POLICIE15

SUMMARY OF ACCOUNTING POLICIES (Tables)	9 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Schedule of anti-dilutive securities not included computation of net loss per share	2018 2017 Warrants 12,271,686 9,548,969 Stock options 5,223,221 5,276,222 17,494,907 14,825,191

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Schedule of inventories	June 30, September 30, (unaudited) Raw materials $ 201,507 $ 193,069 Finished goods 93,771 133,399 Total $ 295,278 $ 326,468

ACCOUNTS PAYABLE AND ACCRUED 17

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	9 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Schedule of accounts payable and accrued liabilities	June 30, September 30, (unaudited) Accounts payable $ 386,920 $ 382,984 Accrued salaries payable 313,664 446,012 Other accrued expenses 118,058 115,137 Total $ 818,642 $ 944,133

STOCK OPTIONS AND WARRANTS (Tab

STOCK OPTIONS AND WARRANTS (Tables)	9 Months Ended
	Jun. 30, 2018
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Schedule of transactions involving warrants	Number of Weighted Balance at October 1, 2017 9,540,455 $ 3.60 Granted 2,735,000 2.00 Exercised - - Cancelled or expired (3,769 ) 3.32 Balance at June 30, 2018 12,271,686 $ 3.24
Schedule of transactions involving stock options issued to employees and consultants	Number of Weighted Aggregate Weighted Average Contractual Life Outstanding at October 1, 2017 5,333,227 $ 3.71 Granted 560,814 1.57 Exercised - - Cancelled or expired (670,820 ) (3.65 ) Outstanding at June 30, 2018 5,223,221 $ 3.48 4.49 Vested at June 30, 2018 4,474,702 $ 3.75 $ - 3.72 Non-vested at June 30, 2018 748,519 $ -
Schedule of fair value of options granted	Nine Nine Stock price $ 1.57 $ 2.01 Exercise price $ 1.57 $ 2.29 Expected term, years 5.35 5.47 Dividend yield - % -% Volatility 94 % 112 % Risk free rate 2.6 % 2.0 %

GEOGRAPHIC AREA INFORMATION (Ta

GEOGRAPHIC AREA INFORMATION (Tables)	9 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Schedule of net sales by geographic location of customers	Three Month Period Ended June 30, 2018 2017 Americas $ 574,805 1,448,776 Europe 228,414 326,606 Asia and other 213,136 22,000 Total $ 1,016,355 $ 1,797,382 Nine Month Period Ended June 30, 2018 2017 Americas $ 1,204,025 2,592,719 Europe 799,003 953,944 Asia and other 704,950 59,100 Total $ 2,707,978 $ 3,605,763

SUMMARY OF ACCOUNTING POLICIE20

SUMMARY OF ACCOUNTING POLICIES - Summary of potential stock issuances under various options, and warrants (Details) - shares	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from diluted net loss per share	17,494,907	14,825,191
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from diluted net loss per share	12,271,686	9,548,969
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from diluted net loss per share	5,223,221	5,276,222

SUMMARY OF ACCOUNTING POLICIE21

SUMMARY OF ACCOUNTING POLICIES (Detail Textuals) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017
Accounting Policies [Abstract]
Deferred revenue	$ 2,298,152		$ 2,298,152		$ 351,735
Revenue for government contract awards	$ 187,010	$ 62,337	$ 561,030	$ 62,337
US corporate income tax rate			21.00%
Blended corporate tax rate			25.00%

SUMMARY OF ACCOUNTING POLICIE22

SUMMARY OF ACCOUNTING POLICIES (Detail Textuals 1) - Customer Concentration Risk - Customer	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017
Total Revenue
Concentration Risk [Line Items]
Number of customers	5	2	3	3
Total Revenue | First customer
Concentration Risk [Line Items]
Percentage of total revenue and accounts receivable	18.00%	11.00%	26.00%	15.00%
Total Revenue | Second customer
Concentration Risk [Line Items]
Percentage of total revenue and accounts receivable	23.00%	71.00%	17.00%	18.00%
Total Revenue | Third customer
Concentration Risk [Line Items]
Percentage of total revenue and accounts receivable	15.00%		16.00%	38.00%
Total Revenue | Fourth customer
Concentration Risk [Line Items]
Percentage of total revenue and accounts receivable	12.00%
Total Revenue | Fifth customer
Concentration Risk [Line Items]
Percentage of total revenue and accounts receivable	15.00%
Accounts Receivable | Two customers
Concentration Risk [Line Items]
Percentage of total revenue and accounts receivable			85.00%		93.00%
Number of customers			2		2

LIQUIDITY AND MANAGEMENT'S PL23

LIQUIDITY AND MANAGEMENT'S PLAN (Detail Textuals) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Liquidity And Management Plan [Abstract]
Accumulated deficit	$ (244,890,800)		$ (244,890,800)		$ (236,673,155)
Net loss	(2,887,723)	$ (2,610,849)	(8,217,645)	$ (10,001,089)
Net cash used in operating activities			(4,408,333)	(6,565,280)
Working capital	1,711,048		1,711,048
Cash and cash equivalents	$ 2,514,816	$ 2,402,809	$ 2,514,816	$ 2,402,809	$ 2,959,781	$ 4,479,274

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Jun. 30, 2018	Sep. 30, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 201,507	$ 193,069
Finished goods	93,771	133,399
Total	$ 295,278	$ 326,468

ACCOUNTS PAYABLE AND ACCRUED 25

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Summary of accounts payable and accrued liabilities (Details) - USD ($)	Jun. 30, 2018	Sep. 30, 2017
Payables and Accruals [Abstract]
Accounts payable	$ 386,920	$ 382,984
Accrued salaries payable	313,664	446,012
Other accrued expenses	118,058	115,137
Total	$ 818,642	$ 944,133

CAPITAL STOCK (Detail Textuals)

CAPITAL STOCK (Detail Textuals) - Private placement - Securities Purchase Agreement	1 Months Ended
	Dec. 20, 2017USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued in private placement, net of offering costs (in shares) | shares	2,735,000
Number of common stock called by warrants | shares	2,735,000
Aggregate gross proceeds | $	$ 4,786,250
Share price (in dollars per share)	$ 1.75
Exercise price of warrants (in dollars per share)	$ 2
Net proceeds after deducting placement agent fees and offering expenses | $	$ 4,200,000
Minimum exercise price	$ 0.44
Weighted average price of common stock exceeded (in dollars per share)	$ 5
Number of trading days for call cancellation	20 days

STOCK OPTIONS AND WARRANTS - Tr

STOCK OPTIONS AND WARRANTS - Transactions involving warrants (Details)	9 Months Ended
	Jun. 30, 2018$ / sharesshares
Number of Shares
Balance at October 1, 2017 | shares	9,540,455
Granted | shares	2,735,000
Exercised | shares	0
Cancelled or expired | shares	(3,769)
Balance at June 30, 2018 | shares	12,271,686
Weighted Average Exercise Price Per Share
Balance at October 1, 2017 | $ / shares	$ 3.60
Granted | $ / shares	2
Exercised | $ / shares	0
Cancelled or expired | $ / shares	3.32
Balance at June 30, 2018 | $ / shares	$ 3.24

STOCK OPTIONS AND WARRANTS - 28

STOCK OPTIONS AND WARRANTS - Transactions involving stock options issued to employees and consultants (Details 1) - Stock Options - 2005 Incentive Stock Plan (the "Incentive Plan")	9 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Number of Shares
Outstanding at October 1, 2017	5,333,227
Granted	560,814
Exercised	0
Cancelled or expired	(670,820)
Outstanding at June 30, 2018	5,223,221
Vested at June 30, 2018	4,474,702
Non-vested at June 30, 2018	748,519
Weighted Average Exercise Price Per Share
Outstanding at October 1, 2017 | $ / shares	$ 3.71
Granted | $ / shares	1.57
Exercised | $ / shares	0
Cancelled or expired | $ / shares	(3.65)
Outstanding at June 30, 2018 | $ / shares	3.48
Vested at June 30, 2018 | $ / shares	$ 3.75
Aggregate Intrinsic Value, Vested at June 30, 2018 | $	$ 0
Aggregate Intrinsic Value, Non-vested at June 30, 2018 | $	$ 0
Weighted Average Contractual Life (years), Outstanding at June 30, 2018	4 years 5 months 27 days
Weighted Average Contractual Life (years), Vested at June 30, 2018	3 years 8 months 19 days

STOCK OPTIONS AND WARRANTS - Fa

STOCK OPTIONS AND WARRANTS - Fair value of options granted using Black Scholes Option Pricing Model with weighted average assumptions (Details 2) - $ / shares	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Stock price	$ 1.57	$ 2.01
Exercise price	$ 1.57	$ 2.29
Expected term, years	5 years 4 months 6 days	5 years 5 months 19 days
Dividend yield	0.00%	0.00%
Volatility	94.00%	112.00%
Risk free rate	2.60%	2.00%

STOCK OPTIONS AND WARRANTS (Det

STOCK OPTIONS AND WARRANTS (Detail Textuals) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 238,738	$ 566,377	$ 184,806	$ 2,562,300
Unrecorded compensation cost related to non-vested awards	$ 814,781		$ 814,781
Weighted average period for non-vested awards			1 year 15 days
Weighted average grant date fair value for options granted (in dollars per share)			$ 1.16
Reversal of expense			$ 415,786
Stock Options | Non-employee Board of Director members
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted			556,147
Stock Options | 2005 Incentive Stock Plan (the "Incentive Plan")
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares of common stock that can be issued as stock awards and stock option	8,333,333		8,333,333
Number of common stock shares that can be covered by awards made to any participant per period			833,334
Number of shares issued			275,752
Options to purchase shares under the 2005 Incentive Stock Plan			5,745,789
Number of options granted			560,814

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Detail Textuals)

May 02, 2018USD ($)

Mar. 15, 2018USD ($)

Jul. 01, 2016USD ($)

Nov. 20, 2017

Nov. 17, 2017USD ($)ft²

Jun. 15, 2013USD ($)ft²

Jun. 30, 2018USD ($)

Jun. 30, 2017USD ($)

Jun. 30, 2018USD ($)

Jun. 30, 2017USD ($)

May 20, 2017USD ($)

May 07, 2016USD ($)

Commitments And Contingencies [Line Items]

Area of property under operating lease | ft²

30,000

Extended operating lease for two 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

Base rent per annum

$ 6,500

Term of lease

3 years

Total rent expense

$ 129,310

$ 134,519

$ 400,603

$ 417,684

Agreement renewal period

1 year

Revenue Bonus recorded to long term accrued liabilities

$ 322,437

322,437

Employment Agreement | Dr. James Hayward - Chief Executive Officer

Commitments And Contingencies [Line Items]

Annual base salary

$ 250,000

Reduction in annual salary

$ 50,000

$ 100,000

Approved Bonus

$ 395,708

$ 118,750

Threshold revenue for two consecutive quarters

3,000,000

Threshold revenue for fiscal year

$ 12,000,000

New Employment Agreement | Dr. James Hayward - Chief Executive Officer

Commitments And Contingencies [Line Items]

Agreement renewal period

1 year

Special cash incentive bonus

$ 800,000

Special cash incentive bonus on completing threshold annual revenue

300,000

Threshold annual revenue

8,000,000

Special cash incentive bonus on completing threshold annual revenue in excess of first threshold revenue

100,000

Threshold annual revenue in excess of first threshold

2,000,000

Annual base salary

$ 400,000

GEOGRAPHIC AREA INFORMATION (De

GEOGRAPHIC AREA INFORMATION (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Net sales	$ 1,016,355	$ 1,797,382	$ 2,707,978	$ 3,605,763
Americas
Segment Reporting Information [Line Items]
Net sales	574,805	1,448,776	1,204,025	2,592,719
Europe
Segment Reporting Information [Line Items]
Net sales	228,414	326,606	799,003	953,944
Asia and other
Segment Reporting Information [Line Items]
Net sales	$ 213,136	$ 22,000	$ 704,950	$ 59,100