Applied DNA Sciences (APDN) 10-K 18 Dec 18 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Dec. 14, 2018	Mar. 31, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	APPLIED DNA SCIENCES INC
Entity Central Index Key	744,452
Trading Symbol	apdn
Entity Current Reporting Status	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		30,112,057
Entity Public Float			$ 38
Document Type	10-K
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
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, 2018	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 1,659,564	$ 2,959,781
Accounts receivable, net of allowance of $13,133 and $10,000 at September 30, 2018 and 2017, respectively	1,485,938	2,587,969
Inventories	221,369	326,468
Prepaid expenses and other current assets	635,174	366,954
Total current assets	4,002,045	6,241,172
Property and equipment, net	419,774	523,688
Other assets:
Deposits	62,325	61,626
Goodwill	285,386	285,386
Intangible assets, net	864,203	1,042,076
Total Assets	5,633,733	8,153,948
Current liabilities:
Accounts payable and accrued liabilities (including related party of $5,844 at September 30, 2018)	965,167	944,133
Deferred revenue	1,856,693	351,735
Total current liabilities	2,821,860	1,295,868
Long term accrued liabilities	470,739
Secured convertible notes payable, net of debt issuance costs (including related party of $1,139,490 at September 30, 2018)	1,586,631
Total liabilities	4,879,230	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 September 30, 2018 and 2017, respectively	30,112	27,377
Additional paid in capital	249,090,474	243,503,858
Accumulated deficit	(248,366,083)	(236,673,155)
Total stockholders' equity	754,503	6,858,080
Total Liabilities and Stockholders' Equity	5,633,733	8,153,948
Series A Preferred stock
Stockholders' Equity:
Preferred stock, value
Series B Preferred stock
Stockholders' Equity:
Preferred stock, value

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Sep. 30, 2018	Sep. 30, 2017
Allowance on accounts receivable (in dollars)	$ 13,133	$ 10,000
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 (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

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Total revenues	$ 3,903,343	$ 4,751,260
Cost of revenues	1,206,814	1,077,232
Operating expenses:
Selling, general and administrative	11,043,463	13,324,503
Research and development	2,751,578	2,282,362
Depreciation and amortization	547,796	887,305
Total operating expenses	14,342,837	16,494,170
LOSS FROM OPERATIONS	(11,646,308)	(12,820,142)
Other (expense) income:
Interest (expense) income, net (including related party interest of $5,844 for the year ended September 30, 2018)	(9,615)	2,763
Other expense, net	(37,005)	(38,388)
Loss before provision for income taxes	(11,692,928)	(12,855,767)
Provision for income taxes	0	0
NET LOSS	$ (11,692,928)	$ (12,855,767)
Net loss per share-basic and diluted (in dollars per share)	$ (0.40)	$ (0.49)
Weighted average shares outstanding-basic and diluted (in shares)	29,497,619	26,378,991
Product revenues
Revenues:
Total revenues	$ 1,827,626	$ 3,733,995
Service revenues
Revenues:
Total revenues	$ 2,075,717	$ 1,017,265

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS (Parentheticals)	12 Months Ended
	Sep. 30, 2018USD ($)
Income Statement [Abstract]
Interest (expense) income, related party interest	$ 5,844

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Common Stock	Additional Paid in Capital	Accumulated Deficit	Total
Balance at Sep. 30, 2016	$ 24,079	$ 234,158,711	$ (223,817,388)	$ 10,365,402
Balance (in shares) at Sep. 30, 2016	24,078,756
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for consulting services	$ 1,025	1,770,252		1,771,277
Common stock issued for consulting services (in shares)	1,025,574
Shares issued in underwritten public offerings, net of offering costs	$ 2,273	4,317,590		4,319,863
Shares issued in underwritten public offerings, net of offering costs (in shares)	2,272,727
Stock based compensation expense		3,257,305		3,257,305
Net loss			(12,855,767)	(12,855,767)
Balance at Sep. 30, 2017	$ 27,377	243,503,858	(236,673,155)	$ 6,858,080
Balance (in shares) at Sep. 30, 2017	27,377,057			27,377,057
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued in private placement, net of offering costs	$ 2,735	4,230,265		$ 4,233,000
Common stock issued in private placement, net of offering costs (in shares)	2,735,000
Stock based compensation expense		1,356,351		1,356,351
Net loss			(11,692,928)	(11,692,928)
Balance at Sep. 30, 2018	$ 30,112	$ 249,090,474	$ (248,366,083)	$ 754,503
Balance (in shares) at Sep. 30, 2018	30,112,057			30,112,057

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (11,692,928)	$ (12,855,767)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	547,796	633,328
Impairment expense		253,977
Stock based compensation expense	1,356,351	3,257,305
Amortization of debt issuance costs	1,479
Provision for bad debts	20,552	423,920
Change in operating assets and liabilities:
Accounts receivable	1,081,480	3,084,311
Inventories	105,099	(28,709)
Prepaid expenses, other current assets and deposits	(268,920)	(167,448)
Accounts payable and accrued liabilities	426,924	(610,504)
Deferred revenue	1,504,958	(1,469,597)
Net cash used in operating activities	(6,917,209)	(7,479,184)
Cash flows from investing activities:
Purchases of property and equipment	(266,008)	(145,436)
Net cash used in investing activities	(266,008)	(145,436)
Cash flows from financing activities:
Net proceeds from sale of common stock and warrants	4,233,000	6,105,127
Net proceeds from secured convertible promissory notes (including related party of $1,185,000 for the year ended September 30, 2018)	1,650,000
Net cash provided by financing activities	5,883,000	6,105,127
Net decrease in cash and cash equivalents	(1,300,217)	(1,519,493)
Cash and cash equivalents at beginning of year	2,959,781	4,479,274
Cash and cash equivalents at end of year	1,659,564	2,959,781
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 transactions:
Debt issuance costs included in accounts payable and accrued liabilities	$ 64,848
Reclassification of deferred offering costs to additional paid in capital		$ 13,986

CONSOLIDATED STATEMENT OF CAS_2

CONSOLIDATED STATEMENT OF CASH FLOWS (Parentheticals)	12 Months Ended
	Sep. 30, 2018USD ($)
Statement of Cash Flows [Abstract]
Senior convertible promissory notes, related party	$ 1,185,000

LIQUIDITY AND MANAGEMENT'S PLAN

LIQUIDITY AND MANAGEMENT'S PLAN	12 Months Ended
	Sep. 30, 2018
Liquidity And Management Plan [Abstract]
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 $248,366,083 as of September 30, 2018. The Company incurred a net loss of $11,692,928 and generated negative operating cash flow of $6,917,209 for the fiscal year ended September 30, 2018. At September 30, 2018 the Company had cash and cash equivalents of $1,659,564 and working capital of $1,180,185. These factors raise substantial doubt about the Company’s ability to continue as a going concern for one year from the issuance of the financial statements. The ability of the Company to continue as a going concern is dependent on the Company's ability to further implement its business plan, raise capital, and generate revenues. The Financial Statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. 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.

SUMMARY OF ACCOUNTING POLICIES

SUMMARY OF ACCOUNTING POLICIES	12 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
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 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; it has incurred expenses and has sustained losses. Consequently, its operations are subject to all the risks inherent in the establishment 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 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. 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 recoverability of long-lived assets, including the values assigned to goodwill, intangible assets and property and equipment, 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 consolidated financial statements in the period they are deemed necessary. Accordingly, actual results could differ from those estimates. 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. At September 30, 2018 and 2017, the Company recorded total deferred revenue of $1,856,693 and $351,735, respectively. 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 $748,040 and $249,348 for the fiscal years ended September 30, 2018 and 2017, respectively. The Company has a licensing agreement with a company that operates in the cotton industry. The shipment to this customer during fiscal 2018 included extended payment terms, as compared to those defined in the contract and therefore is included in deferred revenue as of September 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 assuming all other conditions for revenue recognition have been satisfied. At September 30, 2018, the amount included in deferred revenue related to the shipment with extended payment terms was $766,192. The cotton ginning season in the United States takes place between September and March each year; therefore, revenues from our cotton customer contracts may be seasonal and recognized primarily during our first and fourth fiscal quarters. 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, 2018 and 2017, the Company has an allowance for doubtful accounts of $13,133 and $10,000, respectively. The Company writes-off receivables that are deemed uncollectible. Inventories Inventories, which consist primarily of raw materials and finished goods, are stated at the lower of cost or net realizable value, which 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, 2018 and 2017, 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, 2018 and 2017. Tax years 2014 through 2017 remain subject to future examination by the applicable taxing authorities. 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% in the fiscal year ending September 30, 2018. As the Company has a September 30 fiscal year-end, the lower corporate income tax rate will be phased in, resulting in a U.S. federal statutory rate of approximately 24.3% for fiscal 2018 and a 21% U.S. federal statutory rate for subsequent fiscal years. The reduction of the corporate tax rate caused the Company to reduce its deferred tax asset to the lower federal base rate of 21% and the Company adjusted the valuation allowance against the deferred tax asset by the same amount, this also resulted in a decrease to the deferred tax asset and valuation allowance of $6,865,546. 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 twelve month period ended September 30, 2018. The Tax Act imposes a one-time transition tax that requires companies to increase U.S. taxable income for accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings. As the foreign subsidiaries of the Company have a cumulative net deficit position, there is no impact for this transition tax. 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 lease terms. Property and equipment consist of: September 30, 2018 2017 Computer equipment $ 135,621 $ 85,413 Lab equipment 1,951,955 1,770,407 Furniture 74,781 44,592 Leasehold improvements 293,672 289,573 Total 2,456,029 2,189,985 Accumulated depreciation 2,036,255 1,666,297 Property and equipment, net $ 419,774 $ 523,688 Depreciation expense for the fiscal years ended September 30, 2018 and 2017 were $369,924 and $403,482, 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. For the fiscal year ended September 30, 2017, the Company recorded an impairment charge of $253,977, as determined by non-recurring Level 3 inputs, related to capitalized software which is included in depreciation and amortization expense in the consolidated statements of operations. 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, 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 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, 2018 and 2017 are as follows: 2018 2017 Warrants 12,208,527 9,540,455 Options 6,183,214 5,333,227 18,391,741 14,873,682 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 is 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 in cash flows from operating activities. All excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payments awards) are recognized as income tax expense or benefit in the consolidated statement 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 temporary cash investments 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, 2018 include 24%, 16%, 14% and 11%, respectively from four customers of the Company’s total revenues. These customers accounted for approximately 96% of the Company’s total accounts receivable at September 30, 2018. At September 30, 2018, one customer accounted for an aggregate of 82% of the Company’s total accounts receivable. The Company’s revenues earned from sale of products and services for the fiscal years ended September 30, 2017 include 29%, 26%, 13% and 10%, respectively from four customers of the Company’s total revenues. These customers accounted for approximately 97% of the Company’s total accounts receivable at September 30, 2017. At September 30, 2017, one customer accounted for an aggregate of 80% of the Company’s total accounts receivable. 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, 2018 and 2017, the Company incurred research and development expenses of $2,751,578 and $2,282,362, respectively. Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations $287,156 and $315,266, as advertising costs for the fiscal years ended September 30, 2018 and 2017, 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, 2018 and 2017, the Company performed its 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. Recently Issued Accounting Principles In November 2018, the Financial Accounting Standards Board (“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 is to clarify certain transactions between collaborative arrangement participants which 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. In June 2018, the FASB issued ASU 2018-07, Compensation – “Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting”, 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. Early adoption is permitted. The Company does not expect the adoption of ASU 2018-18 to have a material impact on its consolidated financial statements and related disclosures. In July 2017, the 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 2018-11 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 20178-11 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. In May 2017, the FASB issued ASU 2017-09, Compensation – “Stock Compensation (Topic 718): Scope of Modification Accounting” , 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 does not expect the adoption of ASU 2017-01 to 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 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 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, which for the Company is the first quarter of fiscal 2019. 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 performed an evaluation of the impact, including a review of current accounting policies and practices, as well as customer contracts, to identify differences upon the adoption of the new standard. Based on the evaluation, the Company has identified certain customer contracts, which will require different recognition under the new guidance. The Company had determined that the revenue under certain of its research and development contracts should be recognized on an overtime basis 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 is 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 guidance will be adopted using the modified retrospective basis with a cumulative adjustment to opening retained earnings in fiscal 2019; the cumulative adjustment is expected to be approximately $500,000.

INVENTORIES

INVENTORIES	12 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
INVENTORIES	NOTE C – INVENTORIES Inventories consist of the following at September 30, 2018 and 2017: 2018 2017 Raw materials $ 147,984 $ 193,069 Finished goods 73,385 133,399 Total $ 221,369 $ 326,468

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Sep. 30, 2018
Intangible Assets, Net (Excluding Goodwill) [Abstract]
INTANGIBLE ASSETS	NOTE D – INTANGIBLE ASSETS Intangible assets at September 30, 2018 and 2017 are as follows: 2018 2017 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 831,368 653,495 Intangible assets, net $ 864,203 $ 1,042,076 Total amortization expense charged to operations for the fiscal years ended September 30, 2018 and 2017 were $177,872 and $483,823, respectively. Impairment expense of $253,977 relating to internally developed software was included in amortization expense included in depreciation and amortization within the consolidated statements of operations for the fiscal year ended September 30, 2017. The following table presents the estimated amortization expense of the intangible assets for each of the five succeeding years as of September 30, 2018: Amount 2019 $ 129,435 2020 129,435 2021 91,967 2022 91,967 2023 91,967 Thereafter 329,432 Total $ 864,203

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	12 Months Ended
	Sep. 30, 2018
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	NOTE F – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities at September 30, 2018 and 2017 are as follows: 2018 2017 Accounts payable $ 500,849 $ 382,984 Accrued salaries payable 401,130 446,012 Other accrued expenses 63,188 115,137 Total $ 965,167 $ 944,133

SECURED CONVERTIBLE NOTES PAYAB

SECURED CONVERTIBLE NOTES PAYABLE	12 Months Ended
	Sep. 30, 2018
Short-term Debt [Abstract]
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 “Purchaser”), pursuant to which the Company issued and sold an aggregate of $1,650,000 in principal amount of secured convertible notes (the “August 31 st st st The August 31 st st st Upon any Change in Control (as defined in the August 31 st st st The August 31 st st The August 31 st st st The Company has also entered into a registration rights agreement, dated as of the date of the Purchase Agreement (the “Registration Rights 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 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 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). The Company recorded $64,848 to debt issuance costs based on the cost incurred to complete the financing. During the fiscal year ended September 30, 2018, the Company amortized $1,479 of debt issuance costs resulting in unamortized debt issuance costs of $63,369 and carrying value of $1,586,631 at September 30, 2018. The debt issuance cost will be amortized over the life of the Notes. During the fiscal year ended September 30, 2018, the Company incurred approximately $8,136 of interest expense and for the fiscal year ended September 30, 2018. The effective interest for the fiscal year ended September 30, 2018 was 7.4%. 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 29 th th th

CAPITAL STOCK

CAPITAL STOCK	12 Months Ended
	Sep. 30, 2018
Stockholders' Equity Note [Abstract]
CAPITAL STOCK	NOTE H – CAPITAL STOCK 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 2,735,000 shares of our common stock and warrants to purchase an aggregate of 2,735,000 shares of common stock in a registered direct offering with an aggregate gross proceeds of $4,786,250, at a combined purchase price of $1.75 per share. 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 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 $0.44. 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.” Common Stock Transactions during the Fiscal Year Ended September 30, 2017: On November 2, 2016, the Company entered into a securities purchase agreement with an institutional investor providing for the purchase of $5 million of common stock and warrants at a combined price of $2.20 per share of common stock and warrant (the “Private Placement”). In the Private Placement, the Company sold 2,272,727 shares of its common stock and warrants to purchase 2,272,727 shares of its common stock. The warrants have the same terms as the Company’s existing publicly traded warrants (APDNW) with an exercise price of $3.50 per share and an expiration date of November 20, 2019. The offering closed on November 7, 2016. The Company filed a registration statement providing for the resale of these securities on Form S-3 by December 7, 2016. Upon effectiveness of the registration statement, it is expected that the common stock and warrants issued in the Private Placement will be freely tradeable on The NASDAQ Capital Market under the symbols “APDN” and “APDNW”, respectively. The aggregate gross proceeds to the Company from the Private Placement were $5 million before deducting the placement agents’ fee and other offering expenses. In connection with the closing of this Private Placement, as partial compensation, on November 7, 2016, the Company granted warrants to purchase an aggregate of 68,182 shares of its common stock to the Company’s placement agents, Maxim Group LLC and Imperial Capital LLC (the “Placement Agent Warrants”) at an exercise price of $2.53 (115% of the public offering price), subject to adjustment as set forth therein (including for stock dividends and splits and certain other distributions and “Fundamental Transactions,” as defined therein). The Placement Agent Warrants will be exercisable beginning six months following the closing date of the Private Placement and terminate at 5:00 P.M. (Eastern Standard Time) on November 7, 2021. In addition, the Placement Agent Warrants provide for cashless exercise, which the Placement Agents may elect if there is no effective registration statement registering the resale of the shares issuable upon exercise of the Placement Agent Warrants. The number of shares of common stock that may be acquired by the Placement Agents upon any exercise of the Placement Agent Warrants (or otherwise in respect hereof) shall be limited to the extent necessary to insure that, following such exercise, the total number of shares of common stock then beneficially owned by the Placement Agent and its Affiliates (as defined therein) and any other Persons whose beneficial ownership of common stock would be aggregated with the Placement Agent pursuant to the Exchange Act, does not exceed 9.99% of the total number of issued and outstanding shares of common stock. On June 28, 2017 the Company entered into subscription agreements for a private placement of its common stock, with a group of investors, including a strategic investor which is also a key customer and intellectual property licensee of the Company as well as all of the Company’s executive officers and all members of the Board of Directors (the “June Private Placement”). As a result of the June Private Placement, the Company issued 1,025,574 shares of common stock at a price of $1.76 per share for total gross proceeds of $1,805,000. As part of the June Private Placement, the Company’s management and Board of Directors purchased 315,346 shares of common stock for gross proceeds of $555,000. The issuance of the Common Stock was exempt from the registration requirements of the Securities Act of 1933 pursuant to Section 4(a)(2) of such Securities Act and Regulation D promulgated thereunder and such Common Stock therefore is restricted. Each investor gave representations that he, she or it was an “accredited investor” (as defined under Rule 501 of Regulation D) and that he, she or it is purchasing such securities without a present view toward a distribution of the securities. In addition, there was no general solicitation conducted in connection with the offer and sale of the securities.

STOCK OPTIONS AND WARRANTS

STOCK OPTIONS AND WARRANTS	12 Months Ended
	Sep. 30, 2018
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
STOCK OPTIONS AND WARRANTS	NOTE I– STOCK OPTIONS AND WARRANTS Warrants Transactions involving warrants (see Note H) are summarized as follows: Number of Weighted Average Balance at October 1, 2017 9,540,455 $ 3.60 Granted 2,735,000 2.00 Exercised (-) (- ) Cancelled or expired (66,928 ) (2.88 ) Balance, September 30, 2018 12,208,527 $ 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 Incentive Plan. In 2007, 2008, 2012 and 2015, the Board of Directors and holders of a majority of the outstanding shares of common stock approved various increases in the number of shares of common stock that can be issued as stock awards and stock options thereunder to 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 to 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 our success with an award of options to purchase shares of common stock. As of September 30, 2018, a total of 275,752 shares have been issued and options to purchase 6,704,115 shares have been granted under the Incentive Plan. Transactions involving stock options issued are summarized as follows: Number of Weighted Average Aggregate Weighted Outstanding at October 1, 2017 5,333,227 $ 3.71 Granted 2,188,141 2.00 Exercised - - Cancelled or expired (1,338,154 ) 3.58 Outstanding at September 30, 2018 6,183,214 $ 3.13 Vested at September 30, 2018 5,392,896 3.31 $ 273,951 5.81 Non-vested at September 30, 2018 790,318 $ 10,542 8.92 For the fiscal year ended September 30, 2018, the Company issued an aggregate of 2,188,141 (including award modifications of 666,667) options to employees, consultants, members of the strategic advisory board and non-employee board of director members. Included in these grants was 500,000 options granted to executives. For the fiscal year ended September 30, 2017, the Company issued 1,099,844 (including award modifications of 119,182 options) options to employees, consultants, members of the strategic advisory board and non-employee board of director members. Included in these grants was 280,000 options granted to executives and 5,000 performance based options issued to a consultant. These performance based options vest when a certain performance condition is met by the consultant. The fair value of options granted during the fiscal years ended September 30, 2018 and 2017 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: 2018 2017 Stock price $ 1.31 $ 2.11 Exercise price $ 2.00 $ 2.31 Expected term 4.42 5.38 Dividend yield - - Volatility 86 % 111 % Risk free rate 2.70 % 2.0 % The Company recorded $1,356,351 and $3,257,305 as stock compensation expense within selling, general and administrative for fiscal years ended September 30, 2018 and 2017, respectively. Included in this amount is $145,053 and $89,951 for the fiscal years ended September 30, 2018 and 2017, respectively for employee stock option modifications. These modifications extended the term of the option for an employee in fiscal 2018 and extended the terms of the options for a former employee in fiscal 2017. As of September 30, 2018, unrecorded compensation cost related to non-vested awards was $619,060, which is expected to be recognized over a weighted average period of approximately 0.81 years. The weighted average grant date fair value per share for options granted during the fiscal years ended September 30, 2018 and 2017 was $0.75 and $1.58, respectively.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE J– INCOME TAXES The income tax provision (benefit) for the fiscal years ended September 30, 2018 and 2017 consists of the following: 2018 2017 Federal: Current $ - - Deferred 4,430,000 (4,303,000 ) 4,430,000 (4,303,000 ) State and local: Current - - Deferred (925,000 ) (376,000 ) (925,000 ) (376,000 ) Change in valuation allowance (3,505,000 ) 4,679,000 Income tax provision (benefit) $ - - 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, 2018 and 2017 as follows: 2018 2017 Statutory federal income tax rate 24.28 % 34.00 % Statutory state and local income tax rate (1%, as of September 30, 2018 and 2017), net of federal benefit 2.50 % 1.62 % Stock based compensation (2.29 %) (2.65 %) Other permanent differences 4.24 % 3.42 % Impact of change in Federal statutory tax rate (58.71 %) - % Change in valuation allowance 29.98 % (36.39 %) 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, 2018 2017 Deferred tax assets (liabilities): Stock based compensation $ 1,947,000 $ 2,836,000 Depreciation and amortization 339,000 500,000 Net operating loss carry forward 13,248,000 16,143,000 Tax credits 944,000 521,000 Other 69,000 52,000 Less: valuation allowance (16,547,000 ) (20,052,000 ) Net deferred tax asset $ - $ - As of September 30, 2018, the Company has approximately $53,619,000 of Federal and $73,236,000 of State net operating loss “NOL” carryforwards available which begin to expire after 2022. 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 decreased by $3,505,000. Additionally, deferred tax asset at September 30, 2017 has been revised as follows: deferred tax asset related to amortization of debt discounts is decreased by $16,311,000; the valuation allowance decreased by $16,311,000, completely offsetting the increase in the deferred tax assets. The revision resulted in no change to the net tax provision of the Company as of September 30, 2017 and for the fiscal year ended. The Company has Federal research and development credits of approximately $597,000 that will begin to expire after 2034. The Company also has state investment tax credits of $340,000 that will begin to expire after 2029.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
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, 2018. 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, 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. 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, 2018 and 2017 were $528,234 and $552,240, respectively. Future minimum rental payments (excluding real estate tax and maintenance costs) as of September 30, 2018 are as follows: For the fiscal year ending September 30, 2019 $ 316,457 2020 7,104 2021 595 Total $ 324,156 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 Chief Executive Officer (“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, 2018, 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 May 7, 2016, the CEO’s annual salary was voluntarily reduced by $100,000. Effective May 20, 2017, the CEO’s annual salary was voluntarily reduced by an additional $50,000. Accordingly, his current annual base salary as of September 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 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 $395,708. The accrual for the Revenue Bonus of $360,125 is recorded to long term accrued liabilities on the balance sheet as of September 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	12 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
GEOGRAPHIC AREA INFORMATION	NOTE L– GEOGRAPHIC AREA INFORMATION Net revenues by geographic location of customers are as follows: Year Ended September 30, 2018 2017 Americas $ 2,141,169 $ 3,485,691 Europe 1,004,452 1,055,125 Asia and other 757,722 210,444 Total $ 3,903,343 $ 4,751,260

SUMMARY OF ACCOUNTING POLICIES

SUMMARY OF ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
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 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; it has incurred expenses and has sustained losses. Consequently, its operations are subject to all the risks inherent in the establishment 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 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.
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 recoverability of long-lived assets, including the values assigned to goodwill, intangible assets and property and equipment, 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 consolidated financial statements in the period they are deemed necessary. Accordingly, actual results could differ from those estimates.
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. At September 30, 2018 and 2017, the Company recorded total deferred revenue of $1,856,693 and $351,735, respectively. 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 $748,040 and $249,348 for the fiscal years ended September 30, 2018 and 2017, respectively. The Company has a licensing agreement with a company that operates in the cotton industry. The shipment to this customer during fiscal 2018 included extended payment terms, as compared to those defined in the contract and therefore is included in deferred revenue as of September 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 assuming all other conditions for revenue recognition have been satisfied. At September 30, 2018, the amount included in deferred revenue related to the shipment with extended payment terms was $766,192. The cotton ginning season in the United States takes place between September and March each year; therefore, revenues from our cotton customer contracts may be seasonal and recognized primarily during our first and fourth fiscal quarters.
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, 2018 and 2017, the Company has an allowance for doubtful accounts of $13,133 and $10,000, respectively. The Company writes-off receivables that are deemed uncollectible.
Inventories	Inventories Inventories, which consist primarily of raw materials and finished goods, are stated at the lower of cost or net realizable value, which 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, 2018 and 2017, 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, 2018 and 2017. Tax years 2014 through 2017 remain subject to future examination by the applicable taxing authorities. 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% in the fiscal year ending September 30, 2018. As the Company has a September 30 fiscal year-end, the lower corporate income tax rate will be phased in, resulting in a U.S. federal statutory rate of approximately 24.3% for fiscal 2018 and a 21% U.S. federal statutory rate for subsequent fiscal years. The reduction of the corporate tax rate caused the Company to reduce its deferred tax asset to the lower federal base rate of 21% and the Company adjusted the valuation allowance against the deferred tax asset by the same amount, this also resulted in a decrease to the deferred tax asset and valuation allowance of $6,865,546. 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 twelve month period ended September 30, 2018. The Tax Act imposes a one-time transition tax that requires companies to increase U.S. taxable income for accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings. As the foreign subsidiaries of the Company have a cumulative net deficit position, there is no impact for this transition tax.
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 lease terms. Property and equipment consist of: September 30, 2018 2017 Computer equipment $ 135,621 $ 85,413 Lab equipment 1,951,955 1,770,407 Furniture 74,781 44,592 Leasehold improvements 293,672 289,573 Total 2,456,029 2,189,985 Accumulated depreciation 2,036,255 1,666,297 Property and equipment, net $ 419,774 $ 523,688 Depreciation expense for the fiscal years ended September 30, 2018 and 2017 were $369,924 and $403,482, 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. For the fiscal year ended September 30, 2017, the Company recorded an impairment charge of $253,977, as determined by non-recurring Level 3 inputs, related to capitalized software which is included in depreciation and amortization expense in the consolidated statements of operations.
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, 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 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, 2018 and 2017 are as follows: 2018 2017 Warrants 12,208,527 9,540,455 Options 6,183,214 5,333,227 18,391,741 14,873,682
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 is 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 in cash flows from operating activities. All excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payments awards) are recognized as income tax expense or benefit in the consolidated statement 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 temporary cash investments 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, 2018 include 24%, 16%, 14% and 11%, respectively from four customers of the Company’s total revenues. These customers accounted for approximately 96% of the Company’s total accounts receivable at September 30, 2018. At September 30, 2018, one customer accounted for an aggregate of 82% of the Company’s total accounts receivable. The Company’s revenues earned from sale of products and services for the fiscal years ended September 30, 2017 include 29%, 26%, 13% and 10%, respectively from four customers of the Company’s total revenues. These customers accounted for approximately 97% of the Company’s total accounts receivable at September 30, 2017. At September 30, 2017, one customer accounted for an aggregate of 80% of the Company’s total accounts receivable.
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, 2018 and 2017, the Company incurred research and development expenses of $2,751,578 and $2,282,362, respectively.
Advertising	Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations $287,156 and $315,266, as advertising costs for the fiscal years ended September 30, 2018 and 2017, 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, 2018 and 2017, the Company performed its 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.
Recently Issued Accounting Principles	Recently Issued Accounting Principles In November 2018, the Financial Accounting Standards Board (“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 is to clarify certain transactions between collaborative arrangement participants which 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. In June 2018, the FASB issued ASU 2018-07, Compensation – “Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting”, 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. Early adoption is permitted. The Company does not expect the adoption of ASU 2018-18 to have a material impact on its consolidated financial statements and related disclosures. In July 2017, the 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 2018-11 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 20178-11 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. In May 2017, the FASB issued ASU 2017-09, Compensation – “Stock Compensation (Topic 718): Scope of Modification Accounting” , 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 does not expect the adoption of ASU 2017-01 to 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 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 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, which for the Company is the first quarter of fiscal 2019. 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 performed an evaluation of the impact, including a review of current accounting policies and practices, as well as customer contracts, to identify differences upon the adoption of the new standard. Based on the evaluation, the Company has identified certain customer contracts, which will require different recognition under the new guidance. The Company had determined that the revenue under certain of its research and development contracts should be recognized on an overtime basis 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 is 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 guidance will be adopted using the modified retrospective basis with a cumulative adjustment to opening retained earnings in fiscal 2019; the cumulative adjustment is expected to be approximately $500,000.

SUMMARY OF ACCOUNTING POLICIE_2

SUMMARY OF ACCOUNTING POLICIES (Tables)	12 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Schedule of property, plant and equipment	September 30, 2018 2017 Computer equipment $ 135,621 $ 85,413 Lab equipment 1,951,955 1,770,407 Furniture 74,781 44,592 Leasehold improvements 293,672 289,573 Total 2,456,029 2,189,985 Accumulated depreciation 2,036,255 1,666,297 Property and equipment, net $ 419,774 $ 523,688
Schedule of summary of potential stock issuances under various options, and warrants that could have a dilutive effect on the shares outstanding	2018 2017 Warrants 12,208,527 9,540,455 Options 6,183,214 5,333,227 18,391,741 14,873,682

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Schedule of inventories	2018 2017 Raw materials $ 147,984 $ 193,069 Finished goods 73,385 133,399 Total $ 221,369 $ 326,468

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Sep. 30, 2018
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Schedule of intangible assets acquired and their carrying values	2018 2017 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 831,368 653,495 Intangible assets, net $ 864,203 $ 1,042,076
Schedule of estimated amortization expense of the intangible assets for each of the five succeeding years	Amount 2019 $ 129,435 2020 129,435 2021 91,967 2022 91,967 2023 91,967 Thereafter 329,432 Total $ 864,203

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	12 Months Ended
	Sep. 30, 2018
Payables and Accruals [Abstract]
Schedule of accounts payable and accrued liabilities	2018 2017 Accounts payable $ 500,849 $ 382,984 Accrued salaries payable 401,130 446,012 Other accrued expenses 63,188 115,137 Total $ 965,167 $ 944,133

STOCK OPTIONS AND WARRANTS (Tab

STOCK OPTIONS AND WARRANTS (Tables)	12 Months Ended
	Sep. 30, 2018
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Schedule of transactions involving warrants	Number of Weighted Average Balance at October 1, 2017 9,540,455 $ 3.60 Granted 2,735,000 2.00 Exercised (-) (- ) Cancelled or expired (66,928 ) (2.88 ) Balance, September 30, 2018 12,208,527 $ 3.24
Schedule of summary of transactions involving stock options issued to employees	Number of Weighted Average Aggregate Weighted Outstanding at October 1, 2017 5,333,227 $ 3.71 Granted 2,188,141 2.00 Exercised - - Cancelled or expired (1,338,154 ) 3.58 Outstanding at September 30, 2018 6,183,214 $ 3.13 Vested at September 30, 2018 5,392,896 3.31 $ 273,951 5.81 Non-vested at September 30, 2018 790,318 $ 10,542 8.92
Schedule of fair value of options granted	2018 2017 Stock price $ 1.31 $ 2.11 Exercise price $ 2.00 $ 2.31 Expected term 4.42 5.38 Dividend yield - - Volatility 86 % 111 % Risk free rate 2.70 % 2.0 %

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of income tax provision (benefit)	2018 2017 Federal: Current $ - - Deferred 4,430,000 (4,303,000 ) 4,430,000 (4,303,000 ) State and local: Current - - Deferred (925,000 ) (376,000 ) (925,000 ) (376,000 ) Change in valuation allowance (3,505,000 ) 4,679,000 Income tax provision (benefit) $ - -
Schedule of effective income tax rate reconciliation	2018 2017 Statutory federal income tax rate 24.28 % 34.00 % Statutory state and local income tax rate (1%, as of September 30, 2018 and 2017), net of federal benefit 2.50 % 1.62 % Stock based compensation (2.29 %) (2.65 %) Other permanent differences 4.24 % 3.42 % Impact of change in Federal statutory tax rate (58.71 %) - % Change in valuation allowance 29.98 % (36.39 %) Effective tax rate 0.00 % 0.00 %
Schedule of components of deferred tax assets	September 30, 2018 2017 Deferred tax assets (liabilities): Stock based compensation $ 1,947,000 $ 2,836,000 Depreciation and amortization 339,000 500,000 Net operating loss carry forward 13,248,000 16,143,000 Tax credits 944,000 521,000 Other 69,000 52,000 Less: valuation allowance (16,547,000 ) (20,052,000 ) Net deferred tax asset $ - $ -

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum rental payments	For the fiscal year ending September 30, 2019 $ 316,457 2020 7,104 2021 595 Total $ 324,156

GEOGRAPHIC AREA INFORMATION (Ta

GEOGRAPHIC AREA INFORMATION (Tables)	12 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Schedule of net sales by geographic location of customers	Year Ended September 30, 2018 2017 Americas $ 2,141,169 $ 3,485,691 Europe 1,004,452 1,055,125 Asia and other 757,722 210,444 Total $ 3,903,343 $ 4,751,260

LIQUIDITY AND MANAGEMENT'S PL_2

LIQUIDITY AND MANAGEMENT'S PLAN (Detail Textuals) - USD ($)	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Liquidity And Management Plan [Abstract]
Accumulated deficit	$ (248,366,083)	$ (236,673,155)
Net loss	(11,692,928)	(12,855,767)
Operating cash flow	(6,917,209)
Cash and cash equivalents	1,659,564	$ 2,959,781	$ 4,479,274
Working capital	$ 1,180,185

SUMMARY OF ACCOUNTING POLICIE_3

SUMMARY OF ACCOUNTING POLICIES - Property, plant and equipment (Details) - USD ($)	Sep. 30, 2018	Sep. 30, 2017
Property, Plant and Equipment [Line Items]
Total	$ 2,456,029	$ 2,189,985
Accumulated depreciation	2,036,255	1,666,297
Property and equipment, net	419,774	523,688
Computer equipment
Property, Plant and Equipment [Line Items]
Total	135,621	85,413
Lab equipment
Property, Plant and Equipment [Line Items]
Total	1,951,955	1,770,407
Furniture
Property, Plant and Equipment [Line Items]
Total	74,781	44,592
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total	$ 293,672	$ 289,573

SUMMARY OF ACCOUNTING POLICIE_4

SUMMARY OF ACCOUNTING POLICIES - Summary of potential stock issuances under various options, and warrants (Details 1) - shares	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of diluted net loss per share	18,391,741	14,873,682
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of diluted net loss per share	12,208,527	9,540,455
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of diluted net loss per share	6,183,214	5,333,227

SUMMARY OF ACCOUNTING POLICIE_5

SUMMARY OF ACCOUNTING POLICIES (Detail Textuals) - USD ($)	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Property, Plant and Equipment [Line Items]
Depreciation method	Straight line method
Depreciation expenses	$ 369,924	$ 403,482
Impairment expense		253,977
Deferred revenue	1,856,693	351,735
Revenue recognized for government contract awards	748,040	249,348
Deferred revenue related to the extended payment	766,192
Allowance on accounts receivable	$ 13,133	$ 10,000
US corporate income tax rate	24.28%	34.00%
US corporate income tax rate subsequent to fiscal year	21.00%
Decrease to deferred tax asset and valuation allowance	$ (6,865,546)
Percentage increase in U.S. taxable income for accumulated foreign subsidiary earnings	15.50%
Percentage of foreign cash and certain other net current assets on remaining earnings	8.00%
Computer equipment
Property, Plant and Equipment [Line Items]
Estimated useful life for computer equipment, lab equipment and furniture		3 years
Lab equipment
Property, Plant and Equipment [Line Items]
Estimated useful life for computer equipment, lab equipment and furniture	3 years
Furniture
Property, Plant and Equipment [Line Items]
Estimated useful life for computer equipment, lab equipment and furniture	3 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated useful life for computer equipment, lab equipment and furniture	amortized over the shorter of their useful life or the lease terms

SUMMARY OF ACCOUNTING POLICIE_6

SUMMARY OF ACCOUNTING POLICIES (Detail Textuals 1)	12 Months Ended
	Sep. 30, 2018USD ($)Customer	Sep. 30, 2017USD ($)Customer
Concentration Risk [Line Items]
Impairment expense		$ 253,977
Research and development	$ 2,751,578	2,282,362
Advertising expense	287,156	$ 315,266
Cumulative adjustment to opening retained earnings in fiscal 2019	$ 500,000
Computer equipment
Concentration Risk [Line Items]
Estimated useful life for computer equipment, lab equipment and furniture		3 years
Customer Concentration Risk | Total Revenue
Concentration Risk [Line Items]
Number of customers | Customer	4
Customer Concentration Risk | Total Revenue | One customer
Concentration Risk [Line Items]
Concentration risk percentage	24.00%	29.00%
Customer Concentration Risk | Total Revenue | Two customers
Concentration Risk [Line Items]
Concentration risk percentage	16.00%	26.00%
Customer Concentration Risk | Total Revenue | Three customers
Concentration Risk [Line Items]
Concentration risk percentage	14.00%	13.00%
Customer Concentration Risk | Total Revenue | Four customers
Concentration Risk [Line Items]
Concentration risk percentage	11.00%	10.00%
Customer Concentration Risk | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk percentage	96.00%	97.00%
Customer Concentration Risk | Accounts Receivable | One customer
Concentration Risk [Line Items]
Concentration risk percentage	82.00%	80.00%
Number of customers | Customer	1	1

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Sep. 30, 2018	Sep. 30, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 147,984	$ 193,069
Finished goods	73,385	133,399
Total	$ 221,369	$ 326,468

INTANGIBLE ASSETS - Summary of

INTANGIBLE ASSETS - Summary of intangible assets (Details) - USD ($)	Sep. 30, 2018	Sep. 30, 2017
Intangible Assets, Net (Excluding Goodwill) [Abstract]
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	831,368	653,495
Total	$ 864,203	$ 1,042,076

INTANGIBLE ASSETS - Summary o_2

INTANGIBLE ASSETS - Summary of intangible assets (Parentheticals) (Details)	12 Months Ended
	Sep. 30, 2018
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 1) - USD ($)	Sep. 30, 2018	Sep. 30, 2017
Intangible Assets, Net (Excluding Goodwill) [Abstract]
2,019	$ 129,435
2,020	129,435
2,021	91,967
2,022	91,967
2,023	91,967
Thereafter	329,432
Total	$ 864,203	$ 1,042,076

INTANGIBLE ASSETS (Detail Textu

INTANGIBLE ASSETS (Detail Textuals) - USD ($)	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total amortization expense charged to operations	$ 177,872	$ 483,823
Impairment expense		$ 253,977

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Summary of accounts payable and accrued liabilities (Details) - USD ($)	Sep. 30, 2018	Sep. 30, 2017
Payables and Accruals [Abstract]
Accounts payable	$ 500,849	$ 382,984
Accrued salaries payable	401,130	446,012
Other accrued expenses	63,188	115,137
Total	$ 965,167	$ 944,133

SECURED CONVERTIBLE NOTES PAY_2

SECURED CONVERTIBLE NOTES PAYABLE (Detail Textuals)	12 Months Ended
	Sep. 30, 2018USD ($)Day$ / shares	Nov. 29, 2018USD ($)	Nov. 26, 2018USD ($)	Aug. 31, 2018USD ($)
Debt Instrument [Line Items]
Debt issuance costs based on financing	$ 64,848
Unamortization of debt issuance costs	63,369
Carrying value	1,586,631
Interest expense	$ 8,136
Effective interest rate	7.40%
Common Stock
Debt Instrument [Line Items]
Common stock conversion price | $ / shares	$ 2.50
Common stock consecutive trading days | Day	20
Common stock closing price trading days | $ / shares	$ 3.50
Securities Purchase Agreement | Subsequent Event
Debt Instrument [Line Items]
Aggregate principal amount			$ 0
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 | Subsequent Event | Convertible notes
Debt Instrument [Line Items]
Aggregate principal amount		$ 550,000
Interest rate		6.00%

CAPITAL STOCK (Detail Textuals)

CAPITAL STOCK (Detail Textuals) - USD ($)	Nov. 02, 2016	Dec. 22, 2017	Jun. 28, 2017
Private Placement
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Common stock issued in private placement, net of offering costs (in shares)	2,272,727
Number of common stock called by warrants	2,272,727
Aggregate gross proceeds from private placement	$ 5,000,000
Exercise price of warrants (in dollars per share)	$ 3.50
Private Placement | Board of Directors Chairman
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Common stock issued in private placement, net of offering costs (in shares)			315,346
Aggregate gross proceeds from private placement			$ 555,000
Securities Purchase Agreement
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Common stock issued in private placement, net of offering costs (in shares)		2,735,000
Number of common stock called by warrants		2,735,000
Aggregate gross proceeds from private placement		$ 4,786,250
Share price (in dollars per share)		$ 1.75
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)		$ 2
Minimum exercise price		$ 0.44
Securities Purchase Agreement | Private Placement
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Share price (in dollars per share)	$ 2.20
Value of common stock and warrants purchased	$ 5,000,000
Private Placement Subscription Agreements
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Common stock issued in private placement, net of offering costs (in shares)			1,025,574
Aggregate gross proceeds from private placement			$ 1,805,000
Share price (in dollars per share)			$ 1.76

STOCK OPTIONS AND WARRANTS - Tr

STOCK OPTIONS AND WARRANTS - Transactions involving warrants (Details)	12 Months Ended
	Sep. 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	(66,928)
Balance, September 30, 2018 | shares	12,208,527
Weighted Average Exercise Price Per Share
Balance at October 1, 2017 | $ / shares	$ 3.6
Granted | $ / shares	2
Exercised | $ / shares	0
Cancelled or expired | $ / shares	(2.88)
Balance, September 30, 2018 | $ / shares	$ 3.24

STOCK OPTIONS AND WARRANTS - _2

STOCK OPTIONS AND WARRANTS - Transactions involving stock options issued to employees (Details 1) - Employee Stock Option - Incentive Stock Plan 2005	12 Months Ended
	Sep. 30, 2018USD ($)$ / sharesshares
Number of Shares
Outstanding at October 1, 2017	5,333,227
Granted	2,188,141
Exercised	0
Cancelled or expired	(1,338,154)
Outstanding at September 30, 2018	6,183,214
Vested at September 30, 2018	5,392,896
Non-vested at September 30, 2018	790,318
Weighted Average Exercise Price Per Share
Outstanding at October 1, 2017 | $ / shares	$ 3.71
Granted | $ / shares	2
Exercised | $ / shares	0
Cancelled or expired | $ / shares	3.58
Outstanding at September 30, 2018 | $ / shares	3.13
Vested at September 30, 2018 | $ / shares	$ 3.31
Aggregate Intrinsic Value, Vested | $	$ 273,951
Aggregate Intrinsic Value, Non-vested | $	$ 10,542
Weighted Average Contractual Life (years), Vested	5 years 9 months 22 days
Weighted Average Contractual Life (years), Non-vested	8 years 11 months 1 day

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 2) - $ / shares	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Stock price	$ 1.31	$ 2.11
Exercise price	$ 2	$ 2.31
Expected term	4 years 5 months 1 day	5 years 4 months 17 days
Dividend yield	0.00%	0.00%
Volatility	86.00%	111.00%
Risk free rate	2.70%	2.00%

STOCK OPTIONS AND WARRANTS - Em

STOCK OPTIONS AND WARRANTS - Employee Stock Options (Detail Textuals) - Employee Stock Option - Incentive Stock Plan 2005	12 Months Ended
	Sep. 30, 2018shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock as stock awards and stock options	8,333,333
Issuance of additional common stock as stock awards and stock options	833,334
Cumulative number of shares issued	275,752
Options to purchase shares under the 2005 Incentive stock plan	6,704,115

STOCK OPTIONS AND WARRANTS - _3

STOCK OPTIONS AND WARRANTS - Employee Stock Options (Detail Textuals 1)	12 Months Ended
	Sep. 30, 2018USD ($)StockOption$ / sharesshares	Sep. 30, 2017USD ($)StockOption$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense | $	$ 1,356,351	$ 3,257,305
Unrecorded compensation cost related to non-vested awards | $	$ 619,060
Weighted average period of non-vested awards options	9 months 22 days
Weighted average grant date fair value for options granted | $ / shares	$ 0.75	$ 1.58
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense | $	$ 145,053	$ 89,951
Employee Stock Option | Employees, consultants and non-employee board of director members
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted | shares	2,188,141	1,099,844
Number of stock option modified | StockOption	666,667	119,182
Employee Stock Option | Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted | shares	500,000	280,000
Performance based options to employees, consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted | shares		5,000

INCOME TAXES - Provision (Benef

INCOME TAXES - Provision (Benefit) (Details) - USD ($)	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Federal:
Current	$ 0	$ 0
Deferred	4,430,000	(4,303,000)
State and local income tax expense benefit, total	4,430,000	(4,303,000)
State and local:
Current	0	0
Deferred	(925,000)	(376,000)
State and local income tax expense benefit, total	(925,000)	(376,000)
Decreased in valuation allowance	(3,505,000)	4,679,000
Income tax provision (benefit)	$ 0	$ 0

INCOME TAXES - Provision for in

INCOME TAXES - Provision for income taxes differ from amount of income tax determined (Details 1)	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Statutory federal income tax rate	24.28%	34.00%
Statutory state and local income tax rate (1%, as of September 30, 2018 and 2017), net of federal benefit	2.50%	1.62%
Stock based compensation	(2.29%)	(2.65%)
Other permanent differences	4.24%	3.42%
Impact of change in Federal statutory tax rate	(58.71%)	0.00%
Change in valuation allowance	29.98%	(36.39%)
Effective tax rate	0.00%	0.00%

INCOME TAXES (Parentheticals)

INCOME TAXES (Parentheticals) (Details 1)	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Federal benefit	1.00%	1.00%

INCOME TAXES - Components of de

INCOME TAXES - Components of deferred tax assets (Details 2) - USD ($)	Sep. 30, 2018	Sep. 30, 2017
Deferred tax assets (liabilities):
Stock based compensation	$ 1,947,000	$ 2,836,000
Depreciation and amortization	339,000	500,000
Net operating loss carry forward	13,248,000	16,143,000
Tax credits	944,000	521,000
Other	69,000	52,000
Less: valuation allowance	(16,547,000)	(20,052,000)
Net deferred tax asset	$ 0	$ 0

INCOME TAXES (Detail Textuals)

INCOME TAXES (Detail Textuals) - USD ($)	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Deferred Income Taxes [Line Items]
Federal and net operating loss carryforward	$ 53,619,000
State net operating loss carryforward	73,236,000
Federal research and development credits	597,000
State investment tax credits	340,000
Decreased in valuation allowance	(3,505,000)	$ 4,679,000
Decrease in deferred tax asset related to amortization of debt discounts	(16,311,000)
Deferred tax asset decrease in valuation allowance	(16,311,000)
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, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,019	$ 316,457
2,020	7,104
2,021	595
Total	$ 324,156

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Detail Textuals)	1 Months Ended		12 Months Ended
	Nov. 17, 2017USD ($)ft²	Jun. 15, 2013USD ($)ft²	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)
Commitments and Contingencies [Line Items]
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
Total lease rental expenses | $			$ 528,234	$ 552,240
Satellite testing facility
Commitments and Contingencies [Line Items]
Lease for satellite testing | ft²	1,108
Base Rent | $	$ 6,500
Term lease	3 years

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Detail Textuals 1) - USD ($)	Mar. 02, 2018	Jul. 28, 2017	Sep. 30, 2018	Mar. 15, 2018	May 20, 2017	May 07, 2016
Commitments and Contingencies [Line Items]
Revenue Bonus recorded to long term accrued liabilities			$ 360,125
Employment Agreement | CEO
Commitments and Contingencies [Line Items]
Annual base salary			$ 250,000
Decrease in amount of 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 | CEO
Commitments and Contingencies [Line Items]
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, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Revenues	$ 3,903,343	$ 4,751,260
Americas
Segment Reporting Information [Line Items]
Revenues	2,141,169	3,485,691
Europe
Segment Reporting Information [Line Items]
Revenues	1,004,452	1,055,125
Asia and other
Segment Reporting Information [Line Items]
Revenues	$ 757,722	$ 210,444