Applied DNA Sciences (APDN) 10-Q10 Feb 222022 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Dec. 31, 2021	Feb. 04, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2021
Entity File Number	001-36745
Entity Registrant Name	Applied DNA Sciences, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	59-2262718
Entity Address, Address Line One	50 Health Sciences Drive
Entity Address, City or Town	Stony Brook
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11790
City Area Code	631
Local Phone Number	240-8800
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	APDN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,486,120
Entity Central Index Key	0000744452
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2021	Sep. 30, 2021
Current assets:
Cash and cash equivalents	$ 2,748,368	$ 6,554,948
Accounts receivable, net of allowance of $39,821 and $29,821 at December 31, 2021 and September 30, 2021, respectively	3,857,275	2,804,039
Inventories	1,300,629	1,369,933
Prepaid expenses and other current assets	593,149	568,881
Total current assets	8,499,421	11,297,801
Property and equipment, net	2,807,852	3,023,915
Other assets:
Deposits	95,040	95,040
Total Assets	11,402,313	14,416,756
Current liabilities:
Accounts payable and accrued liabilities	2,521,353	2,991,343
Deferred revenue	457,538	281,000
Total current liabilities	2,978,891	3,272,343
Long term accrued liabilities	31,467	31,467
Total liabilities	3,010,358	3,303,810
Commitments and contingencies (Note F)
Applied DNA Sciences, Inc. stockholders' equity:
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of December 31, 2021 and September 30, 2021, respectively	0	0
Common stock, par value $0.001 per share; 200,000,000 shares authorized as of December 31, 2021 and September 30, 2021, 7,486,120 shares issued and outstanding as of December 31, 2021 and September 30, 2021	7,488	7,488
Additional paid in capital	297,228,192	295,228,272
Accumulated deficit	(288,843,858)	(284,122,092)
Applied DNA Sciences, Inc. stockholders' equity:	8,391,822	11,113,668
Noncontrolling interest	133	(722)
Total equity	8,391,955	11,112,946
Total liabilities and equity	11,402,313	14,416,756
Series A Preferred Stock [Member]
Applied DNA Sciences, Inc. stockholders' equity:
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of December 31, 2021 and September 30, 2021, respectively	0	0
Series B Preferred Stock [Member]
Applied DNA Sciences, Inc. stockholders' equity:
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of December 31, 2021 and September 30, 2021, respectively	$ 0	$ 0

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Dec. 31, 2021	Sep. 30, 2021
Allowance on accounts receivable (in dollars)	$ 39,821	$ 29,821
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	7,486,120	7,486,120
Common stock, shares outstanding	7,486,120	7,486,120
Series A Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Revenues
Total revenues	$ 4,165,706	$ 1,616,141
Total cost of product and clinical laboratory service revenues	3,056,568	515,781
Gross profit	1,109,138	1,100,360
Operating expenses:
Selling, general and administrative	4,662,173	3,309,654
Research and development	1,080,096	763,808
Total operating expenses	5,742,269	4,073,462
LOSS FROM OPERATIONS	(4,633,131)	(2,973,102)
Other (expense) income:
Interest income (expense), net	273	(5,438)
Loss on extinguishment of debt	0	(1,774,662)
Other expense, net	(88,053)	(53,860)
Loss before provision for income taxes	(4,720,911)	(4,807,062)
Provision for income taxes	0	0
NET LOSS	(4,720,911)	(4,807,062)
Less: Net income attributable to noncontrolling interest	(855)	(2,494)
NET LOSS attributable to common stockholders	$ (4,721,766)	$ (4,809,556)
Net loss per share attributable to common stockholders - basic	$ (0.63)	$ (0.88)
Net loss per share attributable to common stockholders - diluted	$ (0.63)	$ (0.88)
Weighted average shares outstanding - basic	7,486,120	5,457,967
Weighted average shares outstanding - diluted	7,486,120	5,457,967
Product revenues
Revenues
Total revenues	$ 826,311	$ 550,097
Total cost of product and clinical laboratory service revenues	434,929	270,688
Service revenues
Revenues
Total revenues	139,273	293,274
Clinical laboratory service revenues
Revenues
Total revenues	3,200,122	772,770
Total cost of product and clinical laboratory service revenues	$ 2,621,639	$ 245,093

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Noncontrolling Interest [Member]	Total
Balance at Sep. 30, 2020	$ 5,144	$ 275,548,737	$ (269,835,650)	$ (8,725)	$ 5,709,506
Balance (in shares) at Sep. 30, 2020	5,142,779
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of warrants	$ 519	2,605,010			2,605,529
Exercise of warrants (in shares)	518,551
Fair value of warrants issued in connection with convertible note repayment		1,643,440			1,643,440
Stock based compensation expense		571,498			571,498
Net loss			(4,809,556)	2,494	(4,807,062)
Balance at Dec. 31, 2020	$ 5,663	280,368,685	(274,645,206)	(6,231)	5,722,911
Balance (in shares) at Dec. 31, 2020	5,661,330
Balance at Sep. 30, 2021	$ 7,488	295,228,272	(284,122,092)	(722)	$ 11,112,946
Balance (in shares) at Sep. 30, 2021	7,486,120				7,486,120
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation expense		1,699,920			$ 1,699,920
Options issued in settlement of accrued bonus		300,000			300,000
Net loss			(4,721,766)	855	(4,720,911)
Balance at Dec. 31, 2021	$ 7,488	$ 297,228,192	$ (288,843,858)	$ 133	$ 8,391,955
Balance (in shares) at Dec. 31, 2021	7,486,120				7,486,120

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	3 Months Ended
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net loss	$ (4,720,911)	$ (4,807,062)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	320,751	97,412
Loss on extinguishment of convertible notes payable	0	1,774,662
Stock-based compensation	1,699,920	571,498
Provision for bad debts	10,000	0
Change in operating assets and liabilities:
Accounts receivable	(1,063,237)	(840,035)
Inventories	69,304	(46,096)
Prepaid expenses and other current assets and deposits	(24,268)	(121,850)
Accounts payable and accrued liabilities	(169,991)	(638,066)
Deferred revenue	176,538	(146,205)
Net cash used in operating activities	(3,701,894)	(4,155,742)
Cash flows from investing activities:
Purchase of property and equipment	(104,686)	(329,542)
Net cash used in investing activities	(104,686)	(329,542)
Cash flows from financing activities:
Net proceeds from exercise of warrants	0	2,605,529
Repayment of convertible notes	0	(1,665,581)
Net cash provided by financing activities	0	939,948
Net decrease in cash and cash equivalents	(3,806,580)	(3,545,336)
Cash and cash equivalents at beginning of period	6,554,948	7,786,743
Cash and cash equivalents at end of period	2,748,368	4,241,407
Supplemental Disclosures of Cash Flow Information:
Cash paid during period for interest	0	0
Cash paid during period for income taxes	0	0
Non-cash investing and financing activities:
Interest paid in kind	0	35,625
Property and equipment acquired, and included in accounts payable	0	641,979
Issuance of stock options for payment of accrued bonus	300,000	0
FV of warrants issued	$ 0	$ 1,074,118

NATURE OF THE BUSINESS

NATURE OF THE BUSINESS	3 Months Ended
NATURE OF THE BUSINESS	Dec. 31, 2021
NATURE OF THE BUSINESS
NATURE OF THE BUSINESS	NOTE A — NATURE OF THE BUSINESS Applied DNA Sciences, Inc. (“Applied DNA” or the “Company”) develops and markets DNA-based technology solutions utilizing its LinearDNA TM TM

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES	3 Months Ended
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES	Dec. 31, 2021
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES	NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES Interim Financial Statements The accompanying condensed consolidated financial statements as of December 31, 2021, and for the three-month periods ended December 31, 2021, and 2020 are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and are presented in accordance with the requirements of Regulation S-X of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month period ended December 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2022. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the fiscal year ended September 30, 2021 and footnotes thereto included in the Annual Report on Form 10-K of the Company filed with the Securities and Exchange Commission (“SEC”) on December 9, 2021, as amended. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year’s presentation. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, APDN (B.V.I.) Inc., Applied DNA Sciences Europe Limited, and Applied DNA Sciences India Private Limited, ADCL and its majority-owned subsidiary, LineaRx, Inc. (“LRx”). Significant inter-company transactions and balances have been eliminated in consolidation. The condensed consolidated balance sheet as of September 30, 2021 contained herein has been derived from the audited consolidated financial statements as of September 30, 2021 but does not include all disclosures required by GAAP. Going Concern and Management’s Plan The Company has recurring net losses. The Company incurred a net loss of $4,720,911 and generated negative operating cash flow of $3,701,894 for the three-month period ended December 31, 2021. 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 and equity-linked securities. NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Use of Estimates The preparation of the financial statements in conformity with Accounting Principles Generally Accepted in the United States of America (“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 significant estimates include revenue recognition, allowance for doubtful accounts, recoverability of long-lived assets, including the values assigned to property and equipment, fair value calculations for stock-based compensation and warrants, contingencies, and management’s anticipated liquidity. Management reviews its estimates on a regular basis and the effects of any material revisions are reflected in the condensed consolidated financial statements in the period they are deemed necessary. Accordingly, actual results could differ from those estimates. Revenue Recognition The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), Revenue Recognition (“ASC 606” or “Topic 606”). The Company measures revenue at the amounts that reflect the consideration to which it is expected to be entitled in exchange for transferring control of goods and services to customers. The Company recognizes revenue either at the point in time or over the period of time that performance obligations to customers are satisfied. The Company’s contracts with customers may include multiple performance obligations (e.g. taggants, maintenance, authentication services, research and development services, etc.). For such arrangements, the Company allocates revenues to each performance obligation based on their relative standalone selling price. Due to the short-term nature of the Company’s contracts with customers, it has elected to apply the practical expedients under Topic 606 to: (1) expense as incurred, incremental costs of obtaining a contract and (2) not adjust the consideration for the effects of a significant financing component for contracts with an original expected duration of one year or less. Product Revenues and Authentication Services The Company’s PCR-produced linear DNA products are manufactured in accordance with contracts with customers. The Company recognizes revenue upon satisfying its promises to transfer goods or services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company transfers control of the goods to the customer, which in nearly all cases is when title to and risk of loss of the goods transfer to the customer. The timing of transfer of title and risk of loss is dictated by customary or explicitly stated contract terms. The Company invoices customers upon shipment, and its collection terms range, on average, from 30 to 60 days. Authentication Services The Company recognizes revenue for authentication services upon satisfying its promises to provide services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company services are complete, which in nearly all cases is when the authentication report is released to the customer. NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Revenue Recognition Clinical Laboratory Testing Services The Company records revenue for its clinical laboratory testing service contracts, which includes its COVID-19 Testing Services, upon satisfying its promise to provide services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time that Company services are complete, which in nearly all cases is when the testing results are released to the customer. For those customers with a fixed monthly fee, the revenue is recognized over-time as the services are provided. Research and Development Services The Company records revenue for its research and development contracts using the over-time revenue recognition model. Revenue is primarily measured using the cost-to-cost method, which the Company believes best depicts the transfer of control to the customer. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the identified performance obligation. Revenues are recorded proportionally as costs are incurred. For contracts where the total costs cannot be estimated, revenues are recognized for the actual costs incurred during a period until the remaining costs to complete a contract can be estimated. The Company has elected not to disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Disaggregation of Revenue The following table presents revenues disaggregated by our business operations and timing of revenue recognition: Three Month Period Ended: December 31, December 31, 2021 2020 Research and development services (over-time) $ 105,695 $ 263,713 Clinical laboratory testing services (point-in-time) 1,873,722 578,370 Clinical laboratory testing services (over-time) 1,326,400 194,400 Product and authentication services (point-in-time): Supply chain 411,547 32,942 Asset marking 105,522 151,758 Diagnostic test kits 342,820 394,958 Total $ 4,165,706 $ 1,616,141 NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Revenue Recognition Contract balances As of December 31, 2021, the Company has entered into contracts with customers for which revenue has not yet been recognized. Consideration received from a customer prior to revenue recognition is recorded to a contract liability and is recognized as revenue when the Company satisfies the related performance obligations under the terms of the contract. The Company’s contract liabilities, which are reported as deferred revenue on the condensed consolidated balance sheet, consist almost entirely of research and development contracts where consideration has been received and the development services have not yet been fully performed. The opening and closing balances of the Company’s contract balances are as follows: October 1, December 31, $ Balance sheet classification 2021 2021 change Contract liabilities Deferred revenue $ 281,000 $ 457,538 $ 176,538 For the three-month period ended December 31, 2021, the Company recognized $13,782 of revenue that was included in Contract liabilities as of October 1, 2021. Inventories Inventories, which consist primarily of raw materials, work in progress and finished goods, are stated at the lower of cost or net realizable value, with cost determined by using the first-in, first-out (FIFO) method. 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 furniture Income Taxes The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company estimates the degree to which tax assets and credit carryforwards will result in a benefit based on expected profitability by tax jurisdiction. In its interim financial statements, the Company follows the guidance in ASC 270, “Interim Reporting” and ASC 740 “Income Taxes,” whereby the Company utilizes the expected annual effective tax rate in determining its income tax provisions for the interim periods. That rate differs from U.S. statutory rates primarily as a result of a valuation allowance related to the Company’s net operating loss carryforward as a result of the historical losses of the Company. 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. NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Net Loss Per Share For the three-month periods ended December 31, 2021 and 2020, 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 were not included in the computation of diluted net loss per share because to do so would have been anti-dilutive for the three-month periods ended December 31, 2021 and 2020 are as follows: 2021 2020 Warrants 743,563 778,118 Stock options 1,061,460 358,178 Total 1,805,023 1,136,296 Stock-Based Compensation The Company accounts for stock-based compensation for employees, directors, and nonemployees in accordance with ASC 718, Compensation (“ASC 718”). ASC 718 requires all share-based payments, 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 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 740, excess tax benefits realized from the exercise of stock-based awards are classified as cash flows from operating activities. All excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) are recognized as income tax expense or benefit in the consolidated statements of operations. Concentrations Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and cash equivalents with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. As of December 31, 2021, the Company had cash and cash equivalents of approximately $2.1 million in excess of the FDIC insurance limit. One customer accounted for 48% of the Company’s revenues earned from sale of products and services for the three-month period ended December 31, 2021. The Company’s revenues earned from sale of products and services for the three-month period ended December 31, 2020 included an aggregate of 26% and 10% from two customers, respectively. Two customers accounted for 74% of the Company’s accounts receivable at December 31, 2021 and two customers accounted for 67% of the Company’s accounts receivable at September 30, 2021. NOTE B – BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Recent Accounting Standards In August 2020, the FASB issued ASU No. 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40).” The objective of this update is to simplify the accounting for convertible preferred stock by removing the existing guidance in ASC 470-20, “Debt: Debt with Conversion and Other Options,” that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock. The guidance in ASC 470-20 applies to convertible instruments for which the embedded conversion features are not required to be bifurcated from the host contract and accounted for as derivatives. In addition, the amendments revise the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification. These amendments are expected to result in more freestanding financial instruments qualifying for equity classification (and, therefore, not accounted for as derivatives), as well as fewer embedded features requiring separate accounting from the host contract. This amendment also further revises the guidance in ASU 260, “Earnings per Share,” to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. The amendments in ASU 2020-06 are effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company does not expect the adoption of ASU 2020-06 to have a significant impact on its consolidated financial statements.

INVENTORIES

INVENTORIES	3 Months Ended
INVENTORIES	Dec. 31, 2021
INVENTORIES
INVENTORIES	NOTE C — INVENTORIES Inventories consist of the following: December 31, September 30, 2021 2021 (unaudited) Raw materials $ 1,194,571 $ 786,938 Work-in-progress — — Finished goods 106,058 582,995 Total $ 1,300,629 $ 1,369,933

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	3 Months Ended
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	Dec. 31, 2021
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	NOTE D — ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities are as follows: December 31, September 30, 2021 2021 (unaudited) Accounts payable $ 1,760,676 $ 2,010,410 Accrued salaries payable 396,796 655,240 Other accrued expenses 363,881 325,693 Total $ 2,521,353 $ 2,991,343

WARRANTS AND STOCK OPTIONS

WARRANTS AND STOCK OPTIONS	3 Months Ended
WARRANTS AND STOCK OPTIONS	Dec. 31, 2021
WARRANTS AND STOCK OPTIONS
WARRANTS AND STOCK OPTIONS	NOTE E —WARRANTS AND STOCK OPTIONS Warrants The following table summarizes the changes in warrants outstanding. These warrants were granted in lieu of cash compensation for services performed or as financing expenses in connection with the sales of the Company’s Common Stock. Transactions involving warrants are summarized as follows: Weighted Average Exercise Number of Price Per Shares Share Balance at October 1, 2021 745,268 $ 6.44 Granted — — Exercised — — Cancelled or expired (1,705) 7.54 Balance at December 31, 2021 743,563 $ 6.43 Stock Options For the three-month period ended December 31, 2021, the Company granted 361,552 options to officers of the Company. These options have a ten-year term and vest immediately. Also, during the three-month period ended December 31, 2021, the Company granted 213,889 options to non-employee board of director members. The options granted to the non-employee board of directors have a ten-year term and vest on the one-year anniversary of the date of grant. The fair value of options granted during the three months ended December 31, 2021, 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 during the three months ended December 31, 2021 was calculated using the following weighted average assumptions: stock price $5.57; exercise price $5.90; expected term 5.16years

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Dec. 31, 2021
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE F — COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases office space under an operating lease in Stony Brook, New York for its corporate headquarters. The lease is for a 30,000 square foot building. The term of the lease commenced on June 15, 2013 and expired on May 31, 2017, with the option to extend the lease for two additional three-year periods. The Company has exercised its option to extend the lease for one additional three-year period ending May 31, 2019. The base rent during the additional three-year period was $458,098 per annum. In November 2019, the Company extended this lease until January 15, 2020. In addition to the office space, the Company also has 2,200 square feet of laboratory space. On January 20, 2020 , the Company entered into an agreement to amend both of these leases, extending the term for the corporate headquarters as well as the laboratory space until January 15, 2021, with a one-year renewal option. In October 2020, the Company exercised the one-year renewal option, extending the term for these leases until January 15, 2022. The leases were subsequently renewed for an additional one-year term commencing on February 1, 2022 and expiring January 31, 2023. The base rent during the additional twelve-month period is $589,056 per annum. The Company also has a satellite testing facility in Ahmedabad, India, which occupies 1,108 square feet for a three-year term beginning November 1, 2017. During September 2021, the Company renewed this lease with a new expiration date of August 31, 2022. The base rent is approximately $6,500 per annum. The Company’s total short-term lease obligation as of December 31, 2021 is $644,059 . The total rent expense for the three-month periods ended December 31, 2021 and 2020 were $142,952 and $145,845 , respectively. Employment Agreement The employment agreement with Dr. James Hayward, the Company’s President and Chief Executive Officer (“CEO”), entered into in July 2016 provides that he will be the Company’s CEO and will continue to serve on the Company’s Board of Directors. The initial term was from July 1, 2016 through June 30, 2017, with automatic one-year renewal periods. On July 28, 2017, the employment agreement was renewed for a successive one-year term and the employment agreement has been renewed for successive one year terms, most recently as of June 30, 2021. Under the employment agreement, the CEO is eligible for a special aggregate cash incentive bonus of up to $800,000 , $300,000 of which is payable if and when annual revenue reaches $8 million, plus an additional $100,000 payable for each additional $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 employment 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 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. NOTE F — COMMITMENTS AND CONTINGENCIES, continued Employment Agreement On October 29, 2021, the Board of Directors amended the existing compensatory arrangement with the CEO to increase his salary to $450,000, effective November 1, 2021. For the fiscal year ended September 30, 2021, the CEO earned a $300,000 bonus as the Company’s annual revenue was greater than $8 million. On November 1, 2021, this $300,000 bonus was paid to the CEO by granting stock options with a fair value of $300,000 calculated using the Black Scholes Option Pricing Model. 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.

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES (Policies)	3 Months Ended
	Dec. 31, 2021
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Interim Financial Statements	Interim Financial Statements The accompanying condensed consolidated financial statements as of December 31, 2021, and for the three-month periods ended December 31, 2021, and 2020 are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and are presented in accordance with the requirements of Regulation S-X of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month period ended December 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2022. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the fiscal year ended September 30, 2021 and footnotes thereto included in the Annual Report on Form 10-K of the Company filed with the Securities and Exchange Commission (“SEC”) on December 9, 2021, as amended. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year’s presentation.
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, APDN (B.V.I.) Inc., Applied DNA Sciences Europe Limited, and Applied DNA Sciences India Private Limited, ADCL and its majority-owned subsidiary, LineaRx, Inc. (“LRx”). Significant inter-company transactions and balances have been eliminated in consolidation. The condensed consolidated balance sheet as of September 30, 2021 contained herein has been derived from the audited consolidated financial statements as of September 30, 2021 but does not include all disclosures required by GAAP.
Going Concern and Management's Plan	Going Concern and Management’s Plan The Company has recurring net losses. The Company incurred a net loss of $4,720,911 and generated negative operating cash flow of $3,701,894 for the three-month period ended December 31, 2021. 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 and equity-linked securities.
Use of Estimates	Use of Estimates The preparation of the financial statements in conformity with Accounting Principles Generally Accepted in the United States of America (“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 significant estimates include revenue recognition, allowance for doubtful accounts, recoverability of long-lived assets, including the values assigned to property and equipment, fair value calculations for stock-based compensation and warrants, contingencies, and management’s anticipated liquidity. Management reviews its estimates on a regular basis and the effects of any material revisions are reflected in the condensed consolidated financial statements in the period they are deemed necessary. Accordingly, actual results could differ from those estimates.
Revenue Recognition	Revenue Recognition The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), Revenue Recognition (“ASC 606” or “Topic 606”). The Company measures revenue at the amounts that reflect the consideration to which it is expected to be entitled in exchange for transferring control of goods and services to customers. The Company recognizes revenue either at the point in time or over the period of time that performance obligations to customers are satisfied. The Company’s contracts with customers may include multiple performance obligations (e.g. taggants, maintenance, authentication services, research and development services, etc.). For such arrangements, the Company allocates revenues to each performance obligation based on their relative standalone selling price. Due to the short-term nature of the Company’s contracts with customers, it has elected to apply the practical expedients under Topic 606 to: (1) expense as incurred, incremental costs of obtaining a contract and (2) not adjust the consideration for the effects of a significant financing component for contracts with an original expected duration of one year or less. Product Revenues and Authentication Services The Company’s PCR-produced linear DNA products are manufactured in accordance with contracts with customers. The Company recognizes revenue upon satisfying its promises to transfer goods or services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company transfers control of the goods to the customer, which in nearly all cases is when title to and risk of loss of the goods transfer to the customer. The timing of transfer of title and risk of loss is dictated by customary or explicitly stated contract terms. The Company invoices customers upon shipment, and its collection terms range, on average, from 30 to 60 days. Authentication Services The Company recognizes revenue for authentication services upon satisfying its promises to provide services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company services are complete, which in nearly all cases is when the authentication report is released to the customer. NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Revenue Recognition Clinical Laboratory Testing Services The Company records revenue for its clinical laboratory testing service contracts, which includes its COVID-19 Testing Services, upon satisfying its promise to provide services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time that Company services are complete, which in nearly all cases is when the testing results are released to the customer. For those customers with a fixed monthly fee, the revenue is recognized over-time as the services are provided. Research and Development Services The Company records revenue for its research and development contracts using the over-time revenue recognition model. Revenue is primarily measured using the cost-to-cost method, which the Company believes best depicts the transfer of control to the customer. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the identified performance obligation. Revenues are recorded proportionally as costs are incurred. For contracts where the total costs cannot be estimated, revenues are recognized for the actual costs incurred during a period until the remaining costs to complete a contract can be estimated. The Company has elected not to disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Disaggregation of Revenue The following table presents revenues disaggregated by our business operations and timing of revenue recognition: Three Month Period Ended: December 31, December 31, 2021 2020 Research and development services (over-time) $ 105,695 $ 263,713 Clinical laboratory testing services (point-in-time) 1,873,722 578,370 Clinical laboratory testing services (over-time) 1,326,400 194,400 Product and authentication services (point-in-time): Supply chain 411,547 32,942 Asset marking 105,522 151,758 Diagnostic test kits 342,820 394,958 Total $ 4,165,706 $ 1,616,141 NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Revenue Recognition Contract balances As of December 31, 2021, the Company has entered into contracts with customers for which revenue has not yet been recognized. Consideration received from a customer prior to revenue recognition is recorded to a contract liability and is recognized as revenue when the Company satisfies the related performance obligations under the terms of the contract. The Company’s contract liabilities, which are reported as deferred revenue on the condensed consolidated balance sheet, consist almost entirely of research and development contracts where consideration has been received and the development services have not yet been fully performed. The opening and closing balances of the Company’s contract balances are as follows: October 1, December 31, $ Balance sheet classification 2021 2021 change Contract liabilities Deferred revenue $ 281,000 $ 457,538 $ 176,538 For the three-month period ended December 31, 2021, the Company recognized $13,782 of revenue that was included in Contract liabilities as of October 1, 2021.
Inventories	Inventories Inventories, which consist primarily of raw materials, work in progress and finished goods, are stated at the lower of cost or net realizable value, with cost determined by using the first-in, first-out (FIFO) method.
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 furniture
Income Taxes	Income Taxes The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company estimates the degree to which tax assets and credit carryforwards will result in a benefit based on expected profitability by tax jurisdiction. In its interim financial statements, the Company follows the guidance in ASC 270, “Interim Reporting” and ASC 740 “Income Taxes,” whereby the Company utilizes the expected annual effective tax rate in determining its income tax provisions for the interim periods. That rate differs from U.S. statutory rates primarily as a result of a valuation allowance related to the Company’s net operating loss carryforward as a result of the historical losses of the Company.
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. NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Net Loss Per Share For the three-month periods ended December 31, 2021 and 2020, 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 were not included in the computation of diluted net loss per share because to do so would have been anti-dilutive for the three-month periods ended December 31, 2021 and 2020 are as follows: 2021 2020 Warrants 743,563 778,118 Stock options 1,061,460 358,178 Total 1,805,023 1,136,296
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock-based compensation for employees, directors, and nonemployees in accordance with ASC 718, Compensation (“ASC 718”). ASC 718 requires all share-based payments, 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 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 740, excess tax benefits realized from the exercise of stock-based awards are classified as cash flows from operating activities. All excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) are recognized as income tax expense or benefit in the consolidated statements of operations.
Concentrations	Concentrations Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and cash equivalents with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. As of December 31, 2021, the Company had cash and cash equivalents of approximately $2.1 million in excess of the FDIC insurance limit. One customer accounted for 48% of the Company’s revenues earned from sale of products and services for the three-month period ended December 31, 2021. The Company’s revenues earned from sale of products and services for the three-month period ended December 31, 2020 included an aggregate of 26% and 10% from two customers, respectively. Two customers accounted for 74% of the Company’s accounts receivable at December 31, 2021 and two customers accounted for 67% of the Company’s accounts receivable at September 30, 2021.
Recent Accounting Standards	Recent Accounting Standards In August 2020, the FASB issued ASU No. 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40).” The objective of this update is to simplify the accounting for convertible preferred stock by removing the existing guidance in ASC 470-20, “Debt: Debt with Conversion and Other Options,” that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock. The guidance in ASC 470-20 applies to convertible instruments for which the embedded conversion features are not required to be bifurcated from the host contract and accounted for as derivatives. In addition, the amendments revise the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification. These amendments are expected to result in more freestanding financial instruments qualifying for equity classification (and, therefore, not accounted for as derivatives), as well as fewer embedded features requiring separate accounting from the host contract. This amendment also further revises the guidance in ASU 260, “Earnings per Share,” to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. The amendments in ASU 2020-06 are effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company does not expect the adoption of ASU 2020-06 to have a significant impact on its consolidated financial statements.

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES (Tables)	3 Months Ended
	Dec. 31, 2021
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Schedule of operations and timing of revenue recognition	The following table presents revenues disaggregated by our business operations and timing of revenue recognition: Three Month Period Ended: December 31, December 31, 2021 2020 Research and development services (over-time) $ 105,695 $ 263,713 Clinical laboratory testing services (point-in-time) 1,873,722 578,370 Clinical laboratory testing services (over-time) 1,326,400 194,400 Product and authentication services (point-in-time): Supply chain 411,547 32,942 Asset marking 105,522 151,758 Diagnostic test kits 342,820 394,958 Total $ 4,165,706 $ 1,616,141
Schedule of opening and closing contract balances	The opening and closing balances of the Company’s contract balances are as follows: October 1, December 31, $ Balance sheet classification 2021 2021 change Contract liabilities Deferred revenue $ 281,000 $ 457,538 $ 176,538
Schedule of anti-dilutive securities not included computation of net loss per share	2021 2020 Warrants 743,563 778,118 Stock options 1,061,460 358,178 Total 1,805,023 1,136,296

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
INVENTORIES (Tables)	Dec. 31, 2021
INVENTORIES
Schedule of inventories	December 31, September 30, 2021 2021 (unaudited) Raw materials $ 1,194,571 $ 786,938 Work-in-progress — — Finished goods 106,058 582,995 Total $ 1,300,629 $ 1,369,933

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	3 Months Ended
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	Dec. 31, 2021
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Schedule of accounts payable and accrued liabilities	December 31, September 30, 2021 2021 (unaudited) Accounts payable $ 1,760,676 $ 2,010,410 Accrued salaries payable 396,796 655,240 Other accrued expenses 363,881 325,693 Total $ 2,521,353 $ 2,991,343

WARRANTS AND STOCK OPTIONS (Tab

WARRANTS AND STOCK OPTIONS (Tables)	3 Months Ended
WARRANTS AND STOCK OPTIONS (Tables)	Dec. 31, 2021
WARRANTS AND STOCK OPTIONS
Schedule of transactions involving warrants	Weighted Average Exercise Number of Price Per Shares Share Balance at October 1, 2021 745,268 $ 6.44 Granted — — Exercised — — Cancelled or expired (1,705) 7.54 Balance at December 31, 2021 743,563 $ 6.43

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Summary of revenues disaggregated by our business operations and timing of revenue recognition (Details) - USD ($)	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue
Total	$ 4,165,706	$ 1,616,141
Research and development services (over-time)
Disaggregation of Revenue
Total	105,695	263,713
Clinical laboratory testing services (point-in-time)
Disaggregation of Revenue
Total	1,873,722	578,370
Clinical laboratory testing services (over-time)
Disaggregation of Revenue
Total	1,326,400	194,400
Supply chain
Disaggregation of Revenue
Total	411,547	32,942
Asset marking
Disaggregation of Revenue
Total	105,522	151,758
Diagnostic test kits
Disaggregation of Revenue
Total	$ 342,820	$ 394,958

BASIS OF PRESENTATION AND SUM_5

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Summary of opening and closing balances of the Company's contract balances (Details) - USD ($)	3 Months Ended	9 Months Ended
	Dec. 31, 2021	Jun. 30, 2021	Oct. 01, 2021
Schedule Of Contract Balances [Line Items]
Change in contract liabilities		$ 176,538
Contract with Customer, Liability, Revenue Recognized	$ 13,782
Contract liabilities
Schedule Of Contract Balances [Line Items]
Deferred Revenue	$ 457,538		$ 281,000

BASIS OF PRESENTATION AND SUM_6

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Summary of potential stock issuances under various options, and warrants (Details) - shares	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of diluted net loss per share	1,805,023	1,136,296
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of diluted net loss per share	743,563	778,118
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of diluted net loss per share	1,061,460	358,178

BASIS OF PRESENTATION AND SUM_7

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Additional information (Details)	3 Months Ended		12 Months Ended
	Dec. 31, 2021USD ($)customer	Dec. 31, 2020USD ($)customer	Sep. 30, 2021customer
Concentration Risk [Line Items]
Net loss	$ (4,720,911)	$ (4,807,062)
Negative operating cash flow	$ 3,701,894	$ 4,155,742
Depreciation method	straight-line method
Excess of FDIC insurance limit	$ 2,100,000
Total Revenue
Concentration Risk [Line Items]
Number of customers \| customer	1	2
Accounts Receivable
Concentration Risk [Line Items]
Number of customers \| customer	2		2
Customer Concentration Risk \| Total Revenue \| One customer
Concentration Risk [Line Items]
Concentration risk percentage	48.00%	26.00%
Customer Concentration Risk \| Total Revenue \| Two customer
Concentration Risk [Line Items]
Concentration risk percentage		10.00%
Customer Concentration Risk \| Accounts Receivable \| Two customer
Concentration Risk [Line Items]
Concentration risk percentage	74.00%
Customer Concentration Risk \| Accounts Receivable \| Four customer
Concentration Risk [Line Items]
Concentration risk percentage			67.00%
Computer equipment
Concentration Risk [Line Items]
Estimated useful life for computer equipment, lab equipment and furniture	3 years
Lab equipment
Concentration Risk [Line Items]
Estimated useful life for computer equipment, lab equipment and furniture	P3Y
Furniture
Concentration Risk [Line Items]
Estimated useful life for computer equipment, lab equipment and furniture	3 years

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Dec. 31, 2021	Sep. 30, 2021
INVENTORIES
Raw materials	$ 1,194,571	$ 786,938
Work-in-progress	0
Finished goods	106,058	582,995
Total	$ 1,300,629	$ 1,369,933

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($)	Dec. 31, 2021	Sep. 30, 2021
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable	$ 1,760,676	$ 2,010,410
Accrued salaries payable	396,796	655,240
Other accrued expenses	363,881	325,693
Total	$ 2,521,353	$ 2,991,343

WARRANTS AND STOCK OPTIONS (Det

WARRANTS AND STOCK OPTIONS (Details)	3 Months Ended
WARRANTS AND STOCK OPTIONS (Details)	Dec. 31, 2021$ / sharesshares
Number of Shares
Balance at October 1, 2021 \| shares	745,268,000
Granted \| shares	0
Exercised \| shares	0
Cancelled or expired \| shares	(1,705)
Balance at December 31, 2021 \| shares	743,563,000
Weighted Average Exercise Price Per Share
Balance at October 1, 2021 \| $ / shares	$ 6.44
Granted \| $ / shares	0
Exercised \| $ / shares	0
Cancelled or expired \| $ / shares	7.54
Balance at December 31, 2021 \| $ / shares	$ 6.43

WARRANTS AND STOCK OPTIONS - Op

WARRANTS AND STOCK OPTIONS - Options (Details)	3 Months Ended
WARRANTS AND STOCK OPTIONS - Options (Details)	Dec. 31, 2021$ / sharesshares
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Granted \| shares	213,889
Stock price	$ 5.57
Exercise price	$ 5.90
Expected term, years	5 years 16 months
Dividend yield	0.00%
Volatility	143.00%
Risk free rate	1.17%
Vesting period	1 year
Officers of the Company
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Vesting period	10 years
Board members
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Granted \| shares	361,552
Exercise price	$ 5.90
Vesting period	10 years

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Operating Leases (Details)	Jan. 20, 2020	Nov. 01, 2017USD ($)ft²	Jun. 15, 2013USD ($)ft²	Oct. 31, 2020USD ($)	Dec. 31, 2021USD ($)	Dec. 31, 2020USD ($)
COMMITMENTS AND CONTINGENCIES
Area of property under operating lease \| ft²			30,000
Extended operating lease for additional period	1 year		3 years	1 year
Lessee, Operating Lease, Option to Extend	January 20, 2020
Base rent during initial lease term per annum			$ 458,098	$ 589,056
Area of laboratory space \| ft²			2,200
Lease for satellite testing \| ft²		1,108
Term lease		3 years
Base rent		$ 6,500
Short-term lease obligation					$ 644,059
Total lease rental expenses					$ 142,952	$ 145,845

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Employment Agreement (Details) - USD ($)	Nov. 01, 2021	Oct. 29, 2021	Jul. 28, 2018	Jul. 28, 2017	Sep. 30, 2021	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2017
COMMITMENTS AND CONTINGENCIES
Number of shares granted						213,889
Employment Agreement \| CEO
COMMITMENTS AND CONTINGENCIES
Agreement renewal period				1 year				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		$ 450,000		$ 400,000
Compensation Description			The employment 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.
Approved bonus	$ 300,000
Revenue bonus recorded to long term accrued liabilities	$ 300,000
Employment Agreement \| CEO \| Minimum
COMMITMENTS AND CONTINGENCIES
Threshold annual revenue					$ 300,000
Employment Agreement \| CEO \| Maximum
COMMITMENTS AND CONTINGENCIES
Threshold annual revenue							$ 8,000,000