Applied DNA Sciences (APDN) 10-K14 Dec 222022 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Sep. 30, 2022	Dec. 09, 2022	Mar. 31, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
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 Public Float			$ 17.2
Entity Common Stock, Shares Outstanding		12,908,520
Entity Central Index Key	0000744452
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Auditor Name	Marcum LLP
Auditor Location	Melville, NY
Auditor Firm ID	688

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Current assets:
Cash and cash equivalents	$ 15,215,285	$ 6,554,948
Accounts receivable, net of allowance of $330,853 and $29,821 at September 30, 2022 and 2021, respectively	3,067,544	2,804,039
Inventories	602,244	1,369,933
Prepaid expenses and other current assets	1,058,056	568,881
Total current assets	19,943,129	11,297,801
Property and equipment, net	2,222,988	3,023,915
Other assets:
Deposits	98,997	95,040
Total assets	22,265,114	14,416,756
Current liabilities:
Accounts payable and accrued liabilities	3,621,751	2,991,343
Deferred revenue	563,557	281,000
Total current liabilities	4,185,308	3,272,343
Long term accrued liabilities	31,467	31,467
Common Warrant liability	5,139,400
Total liabilities	9,356,175	3,303,810
Commitments and contingencies (Note K)
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 September 30, 2022 and 2021, respectively	0	0
Common stock, par value $0.001 per share; 200,000,000 shares authorized as of September 30, 2022 and 2021, 12,908,520 and 7,486,120 shares issued and outstanding as of September 30, 2022 and 2021, respectively	12,909	7,488
Additional paid in capital	305,399,008	295,228,272
Accumulated deficit	(292,500,088)	(284,122,092)
Applied DNA Sciences, Inc. stockholders' equity:	12,911,829	11,113,668
Noncontrolling interest	(2,890)	(722)
Total equity	12,908,939	11,112,946
Total liabilities and equity	22,265,114	14,416,756
Series A Preferred Stock
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 September 30, 2022 and 2021, respectively	0	0
Series B Preferred Stock
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 September 30, 2022 and 2021, respectively	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Allowance on accounts receivable (in dollars)	$ 330,853	$ 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	12,908,520	7,486,120
Common stock, shares outstanding	12,908,520	7,486,120
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 ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Revenues
Total revenues	$ 18,168,677	$ 9,027,738
Total cost of revenues	13,115,037	4,544,832
Gross profit	5,053,640	4,482,906
Operating expenses:
Selling, general and administrative	15,097,360	12,845,372
Research and development	3,926,043	4,164,434
Impairment losses	0	821,741
Total operating expenses	19,023,403	17,831,547
LOSS FROM OPERATIONS	(13,969,763)	(13,348,641)
Other (expense) income:
Interest income, net	7,200	13,675
Loss on extinguishment of convertible notes payable	0	(1,774,662)
Unrealized gain on change in fair value of warrants classified as a liability	17,999,521	0
Gain on extinguishment of notes payable	0	839,945
Transaction costs related to warrant liabilities	(1,668,112)
Loss on issuance of warrants	(10,591,600)	0
Other expense, net	(47,305)	(8,756)
Loss before provision for income taxes	(8,270,059)	(14,278,439)
Provision for income taxes	0	0
NET LOSS	(8,270,059)	(14,278,439)
Less: Net (income) loss attributable to noncontrolling interest	2,168	(8,003)
NET LOSS attributable to Applied DNA Sciences, Inc.	(8,267,891)	(14,286,442)
Deemed dividend related to warrant modifications	110,105
NET LOSS attributable to common stockholders	$ (8,377,996)	$ (14,286,442)
Net loss per share attributable to common stockholders - basic	$ (0.93)	$ (2.07)
Net loss per share attributable to common stockholders - diluted	$ (0.93)	$ (2.07)
Weighted average shares outstanding - basic	8,967,704	6,916,999
Weighted average shares outstanding - diluted	8,967,704	6,916,999
Product revenues
Revenues
Total revenues	$ 1,882,804	$ 3,295,849
Total cost of revenues	2,116,717	1,566,656
Service revenues
Revenues
Total revenues	759,138	937,735
Clinical laboratory service revenues
Revenues
Total revenues	15,526,735	4,794,154
Total cost of revenues	$ 10,998,320	$ 2,978,176

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($)	Common Shares	Additional Paid in Capital	Accumulated Deficit	Noncontrolling Interest	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	$ 521	2,613,408			2,613,929
Exercise of warrants (in shares)	520,151
Fair value of warrants issued in connection with convertible note repayment		1,643,440			1,643,440
Stock based compensation expense		1,668,003			1,668,003
Common stock issued in public offering, net of offering costs	$ 1,810	13,754,697			13,756,507
Common stock issued in public offering, net of offering costs (in shares)	1,810,000
Exercise of options cashlessly	$ 13	(13)
Exercise of options cashlessly (in shares)	13,190
Net loss			(14,286,442)	8,003	(14,278,439)
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]
Exercise of warrants	$ 1,673	3,698,402			$ 3,700,075
Exercise of warrants (in shares)	1,674,200
Derecognition of warrant liability		2,802,879			2,802,879
Stock based compensation expense		2,518,665			2,518,665
Common stock issued in public offering, net of offering costs	$ 3,748	740,685			744,433
Common stock issued in public offering, net of offering costs (in shares)	3,748,200
Options issued in settlement of accrued bonus		300,000			300,000
Deemed dividend - warrant repricing		110,105	(110,105)
Net loss			(8,267,891)	(2,168)	(8,270,059)
Balance at Sep. 30, 2022	$ 12,909	$ 305,399,008	$ (292,500,088)	$ (2,890)	$ 12,908,939
Balance (in shares) at Sep. 30, 2022	12,908,520				12,908,520

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net loss	$ (8,270,059)	$ (14,278,439)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,290,480	844,438
Loss on disposal of property and equipment	0	208,782
Impairment of goodwill and intangible assets	0	821,741
Loss on extinguishment of convertible notes payable	0	1,774,662
Gain on extinguishment of notes payable	0	(839,945)
Public offering costs incurred	1,668,112	0
Loss on issuance of warrants	10,591,600	0
Unrealized gain on change in fair value of the warrants classified as a liability	(17,999,521)	0
Stock-based compensation	2,518,665	1,668,003
Provision for bad debts	269,451	28,629
Change in operating assets and liabilities:
Accounts receivable	(532,957)	(2,638,350)
Inventories	767,689	(872,566)
Prepaid expenses and other current assets and deposits	(493,220)	30,415
Accounts payable and accrued liabilities	930,497	94,711
Deferred revenue	282,557	(230,036)
Net cash used in operating activities	(8,976,706)	(13,387,955)
Cash flows from investing activities:
Purchase of property and equipment	(489,553)	(2,548,695)
Net cash used in investing activities	(489,553)	(2,548,695)
Cash flows from financing activities:
Net proceeds from exercise of warrants	3,700,075	2,613,929
Net proceeds from issuance of common stock and warrants	14,426,521	13,756,507
Repayment of convertible notes	0	(1,665,581)
Net cash provided by financing activities	18,126,596	14,704,855
Net increase (decrease) in cash and cash equivalents	8,660,337	(1,231,795)
Cash and cash equivalents at beginning of period	6,554,948	7,786,743
Cash and cash equivalents at end of period	15,215,285	6,554,948
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	28,329
Deemed dividend warrant modifications	110,105	0
Property and equipment acquired, and included in accounts payable	0	181,807
Issuance of stock options for payment of accrued bonus	300,000	0
Issuance of warrants in settlement of convertible notes payable	0	1,074,118
Fair value of warrants exercised	2,802,879	0
Fair value of warrants issued	$ 25,939,000	$ 0

NATURE OF THE BUSINESS

NATURE OF THE BUSINESS	12 Months Ended
NATURE OF THE BUSINESS	Sep. 30, 2022
NATURE OF THE BUSINESS
NATURE OF THE BUSINESS	NOTE A – NATURE OF THE BUSINESS Applied DNA Sciences, Inc. (“Applied DNA” or the “Company”) is a biotechnology company developing technologies to produce and detect deoxyribonucleic acid (“DNA”). The Company uses the polymerase chain reaction (“PCR”) to enable both the production and detection of DNA, for use in three primary markets: (i) the manufacture of DNA for use in nucleic acid-based therapeutics (“Therapeutic DNA Production Services”); (ii) the detection of DNA in molecular diagnostics testing services (“MDx Testing Services”); and (iii) the manufacture and detection of DNA for industrial supply chain security services (“DNA Tagging and Security Products and Services”). Under its MDx Testing Services, the Company’s wholly owned subsidiary, Applied DNA Clinical Labs, LLC (“ADCL”), is offering a high-throughput turnkey solution for population-scale COVID-19 testing marketed as safeCircle TM On September 16, 2002, the Company was incorporated under the laws of the State of Nevada. Effective December 2008, the Company reincorporated from the State of Nevada to the State of Delaware. The Company is principally devoted to developing and marketing linear DNA technology solutions in the United States, Europe and Asia. To date, the Company has produced limited recurring revenues from its products and services; it has incurred expenses and has sustained losses. Consequently, its operations are subject to all the risks inherent in the establishment and development of a biotechnology company.

LIQUIDITY AND MANAGEMENT'S PLAN

LIQUIDITY AND MANAGEMENT'S PLAN	12 Months Ended
LIQUIDITY AND MANAGEMENT'S PLAN	Sep. 30, 2022
LIQUIDITY AND MANAGEMENT'S PLAN
LIQUIDITY AND MANAGEMENT'S PLAN	NOTE B – LIQUIDITY AND MANAGEMENT’S PLAN The Company has recurring net losses, which have resulted in an accumulated deficit of $292,500,088 as of September 30, 2022. The Company incurred a net loss of $8,270,059 and generated negative operating cash flow of $8,976,706 for the twelve-month period ended September 30, 2022. At September 30, 2022, the Company had cash and cash equivalents of $15,215,285 and working capital of $15,757,821. 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. Through September 30, 2022, the Company has dedicated most of its financial resources to commercialization of its MDx Testing Services, specifically its COVID-19 Testing Services, as well as to research and development efforts, primarily in the Therapeutic DNA Production segment, including the development and validation of its own technologies as well as, advancing its intellectual property, and general and administrative activities. As discussed in Note H, on August 8, 2022, the Company closed on a public offering of 3,000,000 shares of Common Stock and warrants, at a purchase price of $4.00 per share. The net proceeds, after deducting the placement agent’s fees and other offering expenses were approximately $10.7 million. Also, the Company received $3.7 million in proceeds from the exercise of 925,000 Series B Warrants. The Company has alleviated the substantial doubt of a going concern through the cash received from the August 2022 public offering and the warrant exercises, discussed above, as well as collection of its accounts receivable. The Company estimates that it will have sufficient cash and cash equivalents to fund operations for the next twelve months from the date of filing of this annual report. The Company may require additional funds to complete the continued development of its products, services, product manufacturing, and to fund expected additional losses from operations until revenues are sufficient to cover its operating expenses. If revenues are not sufficient to cover the Company’s operating expenses, and if the Company is not successful in obtaining the necessary additional financing, the Company will most likely be forced to reduce operations.

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES	12 Months Ended
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES	Sep. 30, 2022
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES	NOTE C – BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES Principles of Consolidation 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, ADCL and its majority–owned subsidiary, LineaRx, Inc. (“LRx”). 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 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, recoverability of long-lived assets, including the values assigned to property and equipment, fair value calculations for 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 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 Codifications (“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 product revenues are accounted for/recognized 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 C – BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Revenue Recognition, continued 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: Fiscal Years Ended: September 30, 2022 2021 Research and development services (over-time) $ 592,001 $ 799,718 Clinical laboratory testing services (point-in-time) 10,398,782 4,231,654 Clinical laboratory services (over-time) 5,127,953 562,500 Product and authentication services (point-in-time): Supply chain 887,061 1,003,248 Asset marking 534,594 458,409 MDx test kits and supplies 628,286 1,972,209 Total $ 18,168,677 $ 9,027,738 Contract balances As of September 30, 2022, the Company has entered into contracts with customers for which revenue has not yet been recognized. Consideration received from a customer prior to revenue recognition is recorded to a contract liability and is recognized as revenue when the Company satisfies the related performance obligations under the terms of the contract. The Company’s contract liabilities, which are reported as deferred revenue on the consolidated balance sheet, consist almost entirely of research and development contracts where consideration has been received and the development services have not yet been fully performed. NOTE C – BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Revenue Recognition, continued The opening and closing balances of the Company’s contract balances are as follows: October 1, September 30, $ Balance sheet classification 2021 2022 change Contract liabilities Deferred revenue $ 281,000 $ 563,557 $ (282,557) October 1, September 30, $ Balance sheet classification 2020 2021 change Contract liabilities Deferred revenue $ 511,036 $ 281,000 $ 230,036 For the fiscal year ended September 30, 2022, the Company recognized $31,061 of revenue that was included in contract liabilities as of October 1, 2021. For the fiscal year ended September 30, 2021, the Company recognized $277,331 of revenue that was included in contract liabilities as of October 1, 2020. 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. As of September 30, 2022 and 2021, cash equivalents were $15,215,285 and $6,554,948, respectively. 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, 2022 and 2021, the Company has an allowance for doubtful accounts of $330,853 and $29,821, respectively. The Company writes-off receivables that are deemed uncollectible. 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. NOTE C – BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued 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, 2022 and 2021, the Company incurred losses from operations. Based upon these results and the trends in the Company’s performance projected for fiscal year 2022, 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, 2022 and 2021. Tax years 2017 through 2020 remain subject to future examination by the applicable taxing authorities. Property and Equipment Property and equipment are stated at cost and depreciated using the straight line method computer equipment furniture leasehold improvements September 30, 2022 2021 Computer equipment $ — $ — Lab equipment 4,059,754 3,565,057 Furniture — — Vehicles 108,361 108,361 Leasehold improvements 124,825 124,825 Total 4,292,940 3,798,243 Accumulated depreciation 2,069,952 774,328 Property and equipment, net $ 2,222,988 $ 3,023,915 As of September 30, 2022 and 2021, there was $127,935 and $6,580 of construction in progress, respectively that was included in lab equipment. Depreciation expense for the fiscal years ended September 30, 2022 and 2021 were $1,290,480 and $767,025, respectively. NOTE C – BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued 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. Based on the qualitative analysis performed by management, as of September 30, 2021, the Company has recorded a non-cash impairment charge of $285,386 and $536,355 to write-off the goodwill and remaining net book value of the intangible assets, respectively. Such intangible assets were the goodwill, intellectual property and customer lists were from the Vandalia Asset Acquisition and related to the right to produce, sell and have sold, market and develop the Triathlon DNA production system. Since the Company is no longer utilizing this technology, as the Company is now using a different technology to produce these products, the impairment assessment concluded that the asset group was not recoverable and resulted in the full impairment and write-off of the goodwill and intangible assets as of September 30, 2021. See Note E below for further details. 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, warrants, and secured convertible notes. For the fiscal years ended September 30, 2022 and 2021, 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, 2022 and 2021 are as follows: 2022 2021 Warrants 7,313,963 745,268 Options 1,063,055 487,377 8,377,018 1,232,645 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. NOTE C – BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued 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 September 30, 2022 and 2021, the Company had cash and cash equivalents of approximately $14.6 million and $6.0 million in excess of the FDIC insurance limit, respectively. The Company’s revenues earned from sale of products and services for the fiscal year ended September 30, 2022 included an aggregate of 58% from one customer within the MDx Testing Services segment. The Company’s revenues earned from sale of products and services for the fiscal year ended September 30, 2021 included an aggregate of 18%, and 13%, respectively from two customers within the MDx Testing Services segment. Two customers accounted for 89% of the Company’s accounts receivable at September 30, 2022 and two customers accounted for an aggregate of 67% of the Company’s total accounts receivable at September 30, 2021. 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. 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, 2022 and 2021, the Company incurred research and development expenses of 3,926,043 and $4,164,434, respectively. Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations $293,395 and $283,621, as advertising costs for the fiscal years ended September 30, 2022 and 2021, 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, 2021, as a result of the qualitative analysis performed, the Company has recorded a non-cash impairment charge of $821,741 to write-off the goodwill and remaining net book value of the intangible assets due to a reduction in demand from certain customers and a transition in the way the product is produced for these customers, which no longer utilizes the previously purchased intellectual property. NOTE C – BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Warrant Liabilities The Company evaluated the Common Warrants and the Series A and Series B Warrants (collectively the “Warrants) in accordance with ASC 480 “Distinguishing Liabilities from Equity” and ASC 815-40, “Derivatives and Hedging — Contracts in Entity’s Own Equity” and concluded that due to the terms of the warrant agreements, the instruments do not qualify for equity treatment. As such, the Warrants were recorded as a liability on the consolidated balance sheet and measured at fair value at inception and at each reporting date in accordance with ASC 820, “Fair Value Measurement”, with changes in fair value recognized in the consolidated statement of operations in the period of change. Offering Costs The Company complies with the requirements of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A - “Expenses of Offering”. Offering costs consist principally of professional and underwriting fees incurred. Accordingly, in relation to the registered direct offering and the public offering (See Note H), offering costs in the aggregate of $1,766,170 were incurred, of which $98,058 was charged to additional paid in capital, and $1,668,112 was allocated to the liability classified warrants, and are included in other expense in the accompanying consolidated statement of operations for the twelve-month period ended September 30, 2022. Segment Reporting The Company has three reportable segments. (1) Therapeutic DNA Production Services (2) MDx Testing Services, and (3)DNA Tagging and Security Products and Services. Resources are allocated by our CEO, COO, CFO and CLO whom, collectively the Company has determined to be our Chief Operating Decision Maker (CODM). The following is a brief description of our reportable segments. Therapeutic DNA Production Services MDx Testing Services TM DNA Tagging and Security Products and Services The accounting policies of the segments are the same as those described in the “Summary of Accounting Policies” above. The Company evaluates the performance of its segments and allocates resources to them based on revenues and operating income (losses). Operating income (loss) includes intersegment revenues, as well as a charge allocating all corporate headquarters costs. Since each vertical has shared employee resources, payroll and certain other general expense such as rent, and utilities were allocated based on an estimate by management of the percentage of employee time spent in each vertical. Segment assets are not reported to, or used by, the CODM to allocate resources to, or assess performance of, the segments and therefore, total segment assets have not been disclosed. 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. NOTE C – BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued 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, which reports to the Chief Financial Officer, determine its valuation policies and procedures. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s accounting and finance department and are approved by the Chief Financial Officer. As of September 30, 2022, there were no transfers between Levels 1 2 3 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	12 Months Ended
INVENTORIES	Sep. 30, 2022
INVENTORIES
INVENTORIES	NOTE D – INVENTORIES Inventories consist of the following at September 30, 2022 and 2021: 2022 2021 Raw materials $ 471,947 $ 786,938 Work in progress 55,817 — Finished goods 74,480 582,995 Total $ 602,244 $ 1,369,933

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
INTANGIBLE ASSETS	Sep. 30, 2022
INTANGIBLE ASSETS
INTANGIBLE ASSETS	NOTE E – INTANGIBLE ASSETS Intangible assets at September 30, 2021 are as follows: 2021 Customer relationships (10‑year useful life) $ 621,000 Intellectual property (5‑15 years) 917,350 1,538,350 Less: Accumulated amortization 1,001,995 Impairment losses 536,355 Intangible assets, net $ — Total amortization expense charged to operations for the fiscal year ended September 30, 2022 and 2021 were $0 and $68,976, respectively. During the fourth quarter of 2021, the Company performed an impairment assessment of its customer relationships and intellectual property as a result of the Company no longer using the acquired technology, as well as a reduction in demand and future demand from certain customers impacting projected net sales and cash flows. The Company is now using a different technology to produce these products. The intellectual property and customer lists were purchased as part of the Vandalia Asset Acquisition and related to the right to produce, sell and have sold, market and develop the Triathlon DNA production system. The qualitative impairment assessment concluded that the asset group was not recoverable and resulted in the full impairment of the remaining book value of these intangible assets of $536,355 . See Note C above for further details.

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	12 Months Ended
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	Sep. 30, 2022
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	NOTE F – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities at September 30, 2022 and 2021 are as follows: 2022 2021 Accounts payable $ 1,744,105 $ 2,010,410 Accrued salaries payable 1,458,661 655,240 Other accrued expenses 418,985 325,693 Total $ 3,621,751 $ 2,991,343

NOTES PAYABLE

NOTES PAYABLE	12 Months Ended
NOTES PAYABLE	Sep. 30, 2022
NOTES PAYABLE
NOTES PAYABLE	NOTE G – NOTES PAYABLE CARES Act Loan The Company received a loan of approximately $847,000 on May 1, 2020 from Bank of America as lender pursuant to the PPP of the CARES Act. All or a portion of the loan may be forgiven by the U.S. Small Business Administration (“SBA”) upon application by the Company beginning 60 days but not later than 130 days after loan approval and upon documentation of expenditures in accordance with the SBA requirements. Under the CARES Act, loan forgiveness is available for the sum of documented payroll costs, covered rent payments, covered mortgage interest, and covered utilities during the covered period as defined by the CARES Act. The Company used the proceeds from the loan to retain employees, maintain payroll and make lease and utility payments. For purposes of the CARES Act, payroll costs exclude compensation of an individual employee in excess of $100,000, prorated annually. Not more than 40% of the forgiven amount may be for non-payroll costs. Forgiveness is reduced if full-time headcount declines, or if salaries and wages for employees with salaries of $100,000 or less annually are reduced by more than 25%. In the event the loan, or any portion thereof, is forgiven pursuant to the PPP, the amount forgiven is applied to outstanding principal. The Company’s PPP loan, including accrued interest was fully forgiven on February 26, 2021. The forgiveness of the loan resulted in a gain on extinguishment of debt of $839,945 for the fiscal year ended September 30, 2021. Repayment of the July 2019 Notes On October 9, 2020, the Company entered into a letter agreement (the “Letter Agreement”) with Dillon Hill Capital, LLC (“Dillon Hill”), as sole holder of the $1.5 million of secured convertible notes issued in July 2019 (the “July 2019 Notes”), providing for the repayment in full of the July 2019 Notes, in an aggregate amount of $1,665,581 (the “Payoff Amount”), representing the outstanding principal amount of the July 2019 Notes plus accrued but unpaid interest through the scheduled maturity of the July 2019 Notes. The Company paid the Payoff Amount to Dillon Hill on October 9, 2020. As of October 9, 2020, all of the obligations and liabilities of the Company and its affiliates under the July 2019 Notes, the Purchase Agreement, and the Security Agreements, and any other related documents and instruments, were satisfied in full, and all related liens, mortgages or other security interests were automatically released. Based solely on a review of Schedule 13G filings with the SEC, Dillon Hill at the time of the repayment of the July 2019 Notes and thereafter has been a greater than 5% shareholder in the Company’s common stock. Warrant Exercise Agreement In conjunction with the Letter Agreement discussed above, on October 7, 2020, the Company entered into Warrant Exercise Agreements with Dillon Hill and its affiliate, Dillon Hill Investment Company LLC (together, the “Investors”), whereby 318,000 of the warrants issued to the Investors in the Company’s November 2019 underwritten public offering (the “2019 Warrants”) with an exercise price of $5.25 per share were exercised. The gross proceeds to the Company from this partial exercise of the 2019 Warrants were $1,669,500. In consideration of this partial exercise of the 2019 Warrants and of the consent to repayment of the July 2019 Notes, as described above, the Company agreed to issue 159,000 replacement warrants (the “Replacement Warrants”) to the Investors, which is an amount equal to one-half the amount of the 2019 Warrants exercised pursuant to the Warrant Exercise Agreements. The Replacement Warrants had an initial exercise price of $7.54. The Warrant Exercise Agreements expired on January 5, 2021. Each Replacement Warrant is exercisable beginning on the date of issuance thereof and ending on the five-year anniversary of such date. The exercise price and number of shares of common stock issuable upon exercise of the Replacement Warrants will be subject to adjustment in the event of any stock dividend, split, recapitalization, reorganization, or similar transaction, as described in the Replacement Warrant. NOTE G – NOTES PAYABLE, continued On each of December 9 and 10, 2020, the Investors exercised 100,000 of their 2019 Warrants, for an aggregate exercise of 200,000 of their 2019 Warrants, resulting in total net proceeds to the Company of approximately $1.1 million. As a result of these exercises, pursuant to the Warrant Exercise Agreements the Company issued to the Investors an aggregate of 100,000 additional replacement warrants, which are substantially similar to the Replacement Warrants described above except that 50,000 of the newly-issued replacement warrants had an original exercise price of $6.57 and 50,000 of such replacement warrants have an original exercise price of $6.46. No additional 2019 Warrants were exercised by January 5, 2021 and no additional replacement warrants were issued. The repayment of the July 2019 Notes resulted in a loss on extinguishment of debt of $1,774,662 for the fiscal year ended September 30, 2021. Included in the loss on extinguishment of debt is $1,643,440 for the fair value of the Replacement Warrants (described above) that were issued in conjunction with the payoff of the July 2019 Notes.

CAPITAL STOCK

CAPITAL STOCK	12 Months Ended
CAPITAL STOCK	Sep. 30, 2022
CAPITAL STOCK
CAPITAL STOCK	NOTE H – CAPITAL STOCK On February 24, 2022, the Company closed a registered direct offering (the “Offering”) in which, pursuant to the Securities Purchase Agreement dated February 21, 2022, by and between the Company and an institutional investor, the Company issued and sold 748,200 shares of the Company’s Common Stock (“Share”) and 748,200 pre-funded warrants (“Pre-Funded Warrants”) to purchase shares of the Company’s Common Stock. The Pre-Funded Warrants have an exercise price of $0.0001 per share and were immediately exercisable and can be exercised at any time after their original issuance until such Pre-Funded Warrants are exercised in full. Each Share was sold at an offering price of $2.80 and each Pre-Funded Warrant was sold at an offering price of $2.7999. Pursuant to the Securities Purchase Agreement, in a concurrent private placement (together with the Registered Direct Offering, the “Offerings”), the Company issued unregistered warrants (“Common Warrants”) to purchase up to 1,496,400 shares of Common Stock. Each Common Warrant has an exercise price of $2.84 per share, is exercisable six months from the date of issuance and will expire five years from the initial exercise date on August 24, 2027. The gross proceeds of the offering, before deducting placement agent fees and other offering expenses, were approximately $4.2 million. On June 9, 2022, all of the 748,200 Pre-Funded Warrants were exercised. After deducting underwriting discounts and commissions and other expenses related to the offering, the aggregate net proceeds were approximately $3.7 million. Subject to limited exceptions, a holder of a Common Warrant will not have the right to exercise any portion of its Common Warrant if the holder, together with its affiliates, would beneficially own in excess of 4.99% (or, at the election of the holder, 9.99%) of the number of shares of Common Stock outstanding immediately after giving effect to such exercise (the “Beneficial Ownership Limitation”); provided, however, that upon 61 days’ prior notice to us, the holder may increase the Beneficial Ownership Limitation, provided that in no event shall the Beneficial Ownership Limitation exceed 9.99%. The exercise price and number of the shares of Common Stock issuable upon the exercise of the Common Warrant will be subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization or similar transaction, as described in the Warrant Agreement. The Common Warrants are recorded as a liability in the consolidated balance sheet and were recorded at fair value and will be marked to market at each period end. The fair value of the Common Warrants upon issuance was $3,350,400. The fair value of the warrants as of September 30, 2022 was $1,477,000, which resulted in an unrealized gain in the change in fair value of Common Warrants of $1,873,400 for the twelve-month period ended September 30, 2022. Additionally, the Company allocated $391,335 of transaction costs to the warrant liabilities which is included in the consolidated statement of operations for the twelve-month period ended September 30, 2022. As a result of this financing, the exercise price of the 458,813 remaining warrants issued during November 2019, 159,000 warrants issued during October 2020 and 100,000 warrants issued during December 2020 was all reduced to an exercise price of $2.80 per share in accordance with the adjustment provision contained in their respective warrant agreements. The incremental change in fair value of these warrants as a result of the triggering event was $110,105 and is recorded as a deemed dividend in the consolidated statement of operations for the twelve-month period ended September 30, 2022. NOTE H – CAPITAL STOCK, continued On August 8, 2022, the Company closed on a public offering (the “August 2022 Offering”) of 3,000,000 shares of its common stock (or common stock equivalents in lieu thereof), together with Series A warrants to purchase up to 3,000,000 shares of its common stock and Series B warrants to purchase up to 3,000,000 shares of its common stock at a combined offering price to the public of $4.00 per share (or $3.9999 per common stock equivalent with an exercise price of $0.0001) and associated warrants, priced at a premium to market under Nasdaq rules. The Series A warrants have an exercise price of $4.00 per share, are exercisable immediately upon issuance, and expire five years following the date of issuance. The Series B warrants have an exercise price of $4.00 per share, are exercisable immediately upon issuance, and expire thirteen months following the date of issuance. The gross proceeds to the Company from the offering were approximately $12 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. After deducting placement agent’s fees and commissions and expenses, other expenses related to the August 2022 Offering, the aggregate net proceeds were approximately $10.7 million. Subject to limited exceptions, a holder of a Series A or B Warrant will not have the right to exercise any portion of its Warrant if the holder, together with its affiliates, would beneficially own in excess of 4.99% (or, at the election of the holder, 9.99%) of the number of shares of Common Stock outstanding immediately after giving effect to such exercise (the “Beneficial Ownership Limitation”); provided, however, that upon 61 days’ prior notice to us, the holder may increase the Beneficial Ownership Limitation, provided that in no event shall the Beneficial Ownership Limitation exceed 9.99%. The exercise price and number of the shares of Common Stock issuable upon the exercise of the Series A or B Warrant will be subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization or similar transaction, as described in the Warrant Agreement. The Common Warrants are recorded as a liability in the consolidated balance sheet and were recorded at fair value and will be marked to market at each period end (see Note I). Additionally, the Company allocated $1,276,777 of transaction costs to the warrant liabilities which is included in the consolidated statement of operations for the twelve-month period ended September 30, 2022. Common Stock Transactions during the Fiscal Year Ended September 30, 2021: On January 13, 2021, the Company closed on a registered direct public offering (the “Offering) of 1,810,000 shares (the “Shares”) of the Company’s common stock, pursuant to (i) the securities purchase agreement, dated January 10, 2021, by and between the Company and certain institutional investors(the “Purchasers”) whereby the Company agreed to issue and sell the Shares directly to the Purchasers at a price of $8.30 per share of Common Stock and (ii) the placement agency agreement, dated January 10, 2021, by and between the Company and the placement agent”). Net proceeds, after deducting underwriting discounts and commissions, and other offering expenses, were approximately $13.8 million.

STOCK OPTIONS AND WARRANTS

STOCK OPTIONS AND WARRANTS	12 Months Ended
STOCK OPTIONS AND WARRANTS	Sep. 30, 2022
STOCK OPTIONS AND WARRANTS
STOCK OPTIONS AND WARRANTS	NOTE I – STOCK OPTIONS AND WARRANTS Warrants Transactions involving warrants (see Note H) are summarized as follows: Weighted Average Number of Exercise Price Per Shares Share Balance at October 1, 2021 745,268 $ 6.44 Granted 9,142,413 3.31 Exercised (1,854,200) (2.00) Cancelled or expired (719,518) (6.16) Balance, September 30, 2022 7,313,963 $ 3.68 Series A Warrants The Series A warrants are recorded as a liability in the consolidated balance sheet were recorded at fair value and will be marked to market at each period end. The fair value of the Series A Warrants upon issuance and as of September 30, 2022, was $13,414,000 and $2,883,000, respectively, which resulted in an unrealized gain in the change in fair value of Series A Warrants of $10,531,000 for the twelve-month period ended September 30, 2022. Series B Warrants The Series B warrants are recorded as a liability in the consolidated balance sheet and were recorded at fair value and will be marked to market at each period end. The fair value of the Series B Warrants upon issuance was $9,174,600. During the twelve-month period ended September 30, 2022, there were 925,000 Series B Warrants exercised, with a fair value upon exercise of $2,802,879. The fair value of the remaining Series B Warrants as of September 30, 2022, was $779,400. These changes in fair value resulted in an unrealized gain in the change in fair value of the Series B Warrants of $5,566,365 for the twelve-month period ended September 30, 2022. Stock Options During June 2020, the Board of Directors and subsequently during September 2020, the holders of a majority of the Company’s outstanding shares of common stock approved the 2020 Equity Incentive Plan (the “2020 Incentive Plan”). The 2020 Incentive Plan, among other things, reserves an additional 3,500,000 shares of the Company’s common stock for issuance in the form of equity-based awards to employees, directors, consultants, and other service providers, and those of the Company’s affiliates. The maximum total grant date fair value of awards granted under the 2020 Incentive Plan to individuals in their capacity as non-employee directors may not exceed $250,000 in any single calendar year. The 2020 Incentive Plan’s expiration date is September 15, 2030. The 2020 Incentive Plan is designed to retain directors, executives, and selected employees and consultants by rewarding them for making contributions to the Company’s success with an award of options to purchase shares of common stock. As of September 30, 2021, a total of 6,894 shares have been issued and options to purchase 501,240 shares have been granted under the Company’s Incentive Plans. In 2005, the Board of Directors and the holders of a majority of the outstanding shares of common stock approved the 2005 Incentive Stock Plan, as amended and restated as of January 21, 2015 (the “2005 Incentive Plan”, collectively with the 2020 Incentive Plan, the “Company’s Incentive Plans”). Effective as of September 16, 2020, no further awards will be made under the Company’s 2005 Incentive Stock Plan, as amended and restated. NOTE I – STOCK OPTIONS AND WARRANTS, continued Stock Options Transactions involving stock options issued are summarized as follows: Weighted Weighted Average Aggregate Average Number of Exercise Price Per Intrinsic Contractual Shares Share Value Life (years) Outstanding at October 1, 2021 487,377 $ 40.26 Granted 588,187 5.94 Exercised — — Cancelled or expired (12,509) 99.63 Outstanding at September 30, 2022 1,063,055 20.49 Vested at September 30, 2022 840,012 24.57 — 7.67 Non-vested at September 30, 2022 223,043 5.53 — 9.08 For the twelve-month period ended September 30, 2022, the Company granted 361,552 options to officers of the Company. These options have a ten-year term and vest immediately. Also, during the twelve-month period ended September 30, 2022, 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. For the fiscal year ended September 30, 2021, the Company issued an aggregate of 203,405 options to employees and non-employee board of director members and consultants. The fair value of options granted during the fiscal years ended September 30, 2022 and 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 was calculated using the following weighted average assumptions: 2022 2021 Stock price $ 5.55 $ 6.43 Exercise price $ 594 $ 6.43 Expected term 5.16 5.10 Dividend yield — — Volatility 143 % 141 % Risk free rate 1.18 % 0.47 % The Company recorded $2,518,665 and $1,668,003 as stock compensation expense within selling, general and administrative for fiscal years ended September 30, 2022 and 2021, respectively. As of September 30, 2022, unrecorded compensation cost related to non-vested awards was $125,118 which is expected to be recognized over a weighted average period of approximately 0.20 years. The weighted average grant date fair value per share for options granted during the fiscal years ended September 30, 2022 and 2021 was $0.84 and $5.72, respectively.

INCOME TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Sep. 30, 2022
INCOME TAXES
INCOME TAXES	NOTE J – INCOME TAXES The income tax provision (benefit) for the fiscal years ended September 30, 2022 and 2021 consists of the following: 2022 2021 Federal: Current $ — $ — Deferred (2,781,000) (1,423,000) (2,781,000) (1,423,000) State and local: Current — — Deferred (852,000) (26,000) (852,000) (26,000) Foreign: Current — — Deferred 11,000 18,000 — — Change in valuation allowance 3,622,000 1,431,000 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, 2022 and 2021 as follows: 2022 2021 Statutory federal income tax rate 21.00 % 21.00 % Statutory state and local income tax rate (1%, as of September 30, 2021 and 2020), net of federal benefit 6.20 % 1.52 % Stock based compensation (5.01) % (11.54) % Permanent differences related to warrants 14.60 % — % Other permanent differences 1.70 % (0.56) % Federal R&D Credit 3.83 % — % Change in deferred tax rate 1.56 % (0.41) % Change in valuation allowance (43.88) % (10.01) % 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, 2022 2021 Deferred tax assets (liabilities): Stock based compensation $ 847,000 $ 650,000 Depreciation and amortization 113,000 247,000 Net operating loss carry forward 22,872,000 20,115,000 Impairment of intangibles 205,000 187,000 Tax credits 2,055,000 1,566,000 Other 397,000 99,000 Less: valuation allowance (26,489,000) (22,864,000) Net deferred tax asset $ — $ — NOTE J– INCOME TAXES, continued As of September 30, 2022, the Company has approximately $94,315,000 of Federal and $45,746,000 of State net operating loss “NOL” carryforwards available. The Federal NOL of $60,374,000 begins to expire after 2022. The Federal NOLs generated in tax years beginning after December 31, 2017 have no expiration period due to the Tax Cuts and Jobs Act that was enacted in 2017. 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, and as a result of the August 2022 public offering. The annual limitation ranges between $94,000 and $1,528,742 and any unused amounts can be carried forward to subsequent years. The Company has provided a full valuation allowance against all of the net deferred tax assets based on management’s determination that it is more likely than not that the net deferred tax assets will not be realized in the future. The valuation allowance increased by $3,622,000. The Company has Federal research and development credits of approximately $1,552,000 that will begin to expire after 2034. The Company also has state investment tax credits of $457,000 that will begin to expire after 2029. On August 16, 2022, President Biden signed the Inflation Reduction Act, which is effective for tax years beginning on or after January 1, 2023 and includes a corporate minimum tax on certain corporations and a one percent excise tax on stock repurchases. We do not anticipate this legislation will have a material impact on our consolidated financial statements.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2022
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE K – COMMITMENTS AND CONTINGENCIES Operating leases The Company leases office space under an operating lease in Stony Brook, New York for its corporate headquarters. The lease is for a 30,000 square foot building. The term of the lease commenced on June 15, 2013 and originally expired on May 31, 2016, with the option to extend the lease for two additional three-year periods. The Company exercised its option to extend the lease for one additional three-year period ending May 31, 2019. During 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. During October 2020, the Company exercised the one-year renewal option, extending the term for these leases until January 15, 2022. On February 1, 2022, the Company entered into a new lease agreement for the same facility for an one-year term, 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 August 2022, the Company renewed this lease with a new expiration date of July 31, 2023. The base rent is approximately $6,500 per annum. The Company’s future minimum rental payments (excluding real estate tax and maintenance costs as of September 30, 2022 are $199,665 and are considered short-term lease obligations). Total rent expense for the fiscal years ended September 30, 2022 and 2021 were $587,346 and $565,597, respectively. Employment and Consulting Agreements Employment agreements 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 was $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. NOTE K – COMMITMENTS AND CONTINGENCIES, continued Employment agreements 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. 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. 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. Effective March 7, 2022 the CEO voluntarily reduced his salary to $225,000. The CEO’s salary was restored back to $450,000 on September 3, 2022 and the CEO was paid a one-time payment of $110,343, which represents the reduction in his salary from March 7, 2022 through September 3, 2022. As of September 30, 2022 the CEO’s annual salary was $450,000. In accordance with the terms of his employment agreement, for the twelve-month period ended September 30, 2022, the CEO earned a $800,000 bonus as the Company’s year to date revenue was greater than $18 million. The bonus was not paid as of September 30, 2022 and is included in accounts payable and accrued liabilities in the consolidated balance sheet. 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.

SEGMENT AND GEOGRAPHIC AREA INF

SEGMENT AND GEOGRAPHIC AREA INFORMATION	12 Months Ended
SEGMENT AND GEOGRAPHIC AREA INFORMATION	Sep. 30, 2022
SEGMENT AND GEOGRAPHIC AREA INFORMATION
SEGMENT AND GEOGRAPHIC AREA INFORMATION	NOTE L – SEGMENT AND GEOGRAPHIC AREA INFORMATION As detailed in Note C above, the Company has three reportable segments. (1) Therapeutic DNA Production Services (2) MDx Testing Services, and (3)DNA Tagging and Security Products and Services. Resources are allocated by our CEO, COO, CFO and CLO whom, collectively the Company has determined to be our Chief Operating Decision Maker (CODM). Information regarding operations by segment for the twelve- month period ended September 30, 2022 is as follows: Therapeutic DNA MDx Testing DNA Tagging and Production Services Security Products Consolidated Revenues: Product revenues $ — $ 628,286 $ 1,254,518 $ 1,882,804 Service revenues 439,355 — 319,783 759,138 Clinical laboratory service revenues — 15,979,631 — 15,979,631 Less intersegment revenues — (452,896) — (452,896) Total revenues 439,355 16,155,021 1,574,301 18,168,677 Gross profit 439,355 4,827,672 (213,387) 5,053,640 Loss from segment operations (a) (4,497,699) (464,894) (4,652,786) (9,615,379) Information regarding operations by segment for the twelve- month period ended September 30, 2021 is as follows: Therapeutic DNA MDx Testing DNA Tagging and Production Services Security Products Consolidated Revenues: Product revenues $ — $ 1,943,697 $ 1,352,152 $ 3,295,849 Service revenues 559,319 — 378,416 937,735 Clinical laboratory service revenues — 5,090,794 — 5,090,794 Less intersegment revenues — (296,640) — (296,640) Total revenues 559,319 6,737,851 1,730,568 9,027,738 Gross profit 559,318 3,327,080 596,508 4,482,906 Loss from segment operations (a) (5,214,221) (274,250) (4,823,348) (10,311,819) Reconciliation of segment loss from operations to corporate loss: 2022 2021 Loss from operations of reportable segments $ (9,615,379) $ (10,311,819) General corporate expenses (b) (4,354,384) (3,036,822) Interest income (expense), net 7,200 13,675 Unrealized gain on change in fair value of warrants 17,999,521 — Transaction costs related to warrant liabilities (1,668,112) — Loss on issuance of warrants (10,591,600) — Loss on extinguishment of convertible notes payable — (1,774,662) Gain on extinguishment of notes payable — 839,945 Other expense, net (47,305) (8,756) Consolidated loss before provision for income taxes $ (8,270,059) $ (14,278,439) (a) Segment operating loss consists of net sales less cost of sales, specifically identifiable research and development, and selling, general and administrative expenses. (b) General corporate expenses consists of Selling, general and administrative expenses that are not specifically identifiable to a segment. NOTE L – SEGMENT AND GEOGRAPHIC AREA INFORMATION, continued The Company attributes net revenues from external customers according to the geographic location of the customer. Net revenues by geographic location of customers are as follows: Year Ended September 30, 2022 2021 Americas $ 17,544,444 $ 8,520,336 Europe 448,847 359,509 Asia and other 175,386 147,893 Total $ 18,168,677 $ 9,027,738

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Sep. 30, 2022
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE M — RELATED PARTY TRANSACTIONS On each of December 9 and 10, 2020, Dillon Hill Capital, LLC and its affiliate, Dillon Hill Investment Company LLC., a greater than 5% shareholder, exercised 100,000 of their 2019 Warrants, for an aggregate exercise of 200,000 of their 2019 Warrants, resulting in total net proceeds to the Company of approximately $1.1 million. As a result of these exercises, the Company issued to the Investors an aggregate of 100,000 additional replacement warrants, which are substantially similar to the Replacement Warrants described above except that 50,000 of the newly-issued replacement warrants have an exercise price of $6.57 and 50,000 of such replacement warrants have an exercise price of $6.46. As of September 30, 2022, Dillon Hill Capital, LLC and its affiliate, Dillon Hill Investment Company, LLC, are no longer a greater than 5% shareholder.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS	Sep. 30, 2022
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE N – FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s financial instruments at fair value are measured on a recurring basis. Related unrealized gains or losses are recognized in unrealized gain on change in fair value of the Common Warrants in the condensed consolidated statements of operations. For additional disclosures regarding methods and assumptions used in estimating fair values of these financial instruments, see Note C. The following table presents the fair value of the Company’s financial instruments as of September 30, 2022 and summarizes the significant unobservable inputs in fair value measurement of Level 3 financial assets and liabilities as of September 30, 2022. The Company did not have any assets or liabilities categorized as Level 1 or 2 as of September 30, 2022. Fair value at Valuation Unobservable Weighted September 30, 2022 Technique Input Range Average Liabilities: Common Warrants $ 1,477,000 Monte Carlo simulation Annualized volatility 146.72% - 174.63 % 160.00 % Series A Warrants $ 2,883,000 Monte Carlo simulation Annualized volatility 146.72% - 174.63 % 160.00 % Series B Warrants $ 779,400 Monte Carlo simulation Annualized volatility 146.72% - 174.63 % 170 % The change in fair value of the Common Warrants for the twelve-month period ended September 30, 2022 is summarized as follows: Common Warrants Fair value at issuance, February 24, 2022 $ 3,350,400 Change in fair value (1,873,400) Fair Value at September 30, 2022 $ 1,477,000 The change in fair value of the Series A and Series B Warrants for the twelve-month period ended September 30, 2022 is summarized as follows: Series A Warrants Series B Warrants Fair value at issuance August 8, 2022 $ 13,414,000 $ 9,174,600 Fair value of warrants exercised — (2,828,835) Change in fair value (10,531,000) (5,566,365) Fair Value at September 30, 2022 $ 2,883,000 779,400

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2022
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Principles of Consolidation	Principles of Consolidation 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, ADCL and its majority–owned subsidiary, LineaRx, Inc. (“LRx”). 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 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, recoverability of long-lived assets, including the values assigned to property and equipment, fair value calculations for 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 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 Codifications (“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 product revenues are accounted for/recognized 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. 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: Fiscal Years Ended: September 30, 2022 2021 Research and development services (over-time) $ 592,001 $ 799,718 Clinical laboratory testing services (point-in-time) 10,398,782 4,231,654 Clinical laboratory services (over-time) 5,127,953 562,500 Product and authentication services (point-in-time): Supply chain 887,061 1,003,248 Asset marking 534,594 458,409 MDx test kits and supplies 628,286 1,972,209 Total $ 18,168,677 $ 9,027,738 Contract balances As of September 30, 2022, the Company has entered into contracts with customers for which revenue has not yet been recognized. Consideration received from a customer prior to revenue recognition is recorded to a contract liability and is recognized as revenue when the Company satisfies the related performance obligations under the terms of the contract. The Company’s contract liabilities, which are reported as deferred revenue on the consolidated balance sheet, consist almost entirely of research and development contracts where consideration has been received and the development services have not yet been fully performed. The opening and closing balances of the Company’s contract balances are as follows: October 1, September 30, $ Balance sheet classification 2021 2022 change Contract liabilities Deferred revenue $ 281,000 $ 563,557 $ (282,557) October 1, September 30, $ Balance sheet classification 2020 2021 change Contract liabilities Deferred revenue $ 511,036 $ 281,000 $ 230,036 For the fiscal year ended September 30, 2022, the Company recognized $31,061 of revenue that was included in contract liabilities as of October 1, 2021. For the fiscal year ended September 30, 2021, the Company recognized $277,331 of revenue that was included in contract liabilities as of October 1, 2020.
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. As of September 30, 2022 and 2021, cash equivalents were $15,215,285 and $6,554,948, respectively.
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, 2022 and 2021, the Company has an allowance for doubtful accounts of $330,853 and $29,821, respectively. The Company writes-off receivables that are deemed uncollectible.
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.
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, 2022 and 2021, the Company incurred losses from operations. Based upon these results and the trends in the Company’s performance projected for fiscal year 2022, 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, 2022 and 2021. Tax years 2017 through 2020 remain subject to future examination by the applicable taxing authorities.
Property and Equipment	Property and Equipment Property and equipment are stated at cost and depreciated using the straight line method computer equipment furniture leasehold improvements September 30, 2022 2021 Computer equipment $ — $ — Lab equipment 4,059,754 3,565,057 Furniture — — Vehicles 108,361 108,361 Leasehold improvements 124,825 124,825 Total 4,292,940 3,798,243 Accumulated depreciation 2,069,952 774,328 Property and equipment, net $ 2,222,988 $ 3,023,915 As of September 30, 2022 and 2021, there was $127,935 and $6,580 of construction in progress, respectively that was included in lab equipment. Depreciation expense for the fiscal years ended September 30, 2022 and 2021 were $1,290,480 and $767,025, 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. Based on the qualitative analysis performed by management, as of September 30, 2021, the Company has recorded a non-cash impairment charge of $285,386 and $536,355 to write-off the goodwill and remaining net book value of the intangible assets, respectively. Such intangible assets were the goodwill, intellectual property and customer lists were from the Vandalia Asset Acquisition and related to the right to produce, sell and have sold, market and develop the Triathlon DNA production system. Since the Company is no longer utilizing this technology, as the Company is now using a different technology to produce these products, the impairment assessment concluded that the asset group was not recoverable and resulted in the full impairment and write-off of the goodwill and intangible assets as of September 30, 2021. See Note E below for further details.
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, warrants, and secured convertible notes. For the fiscal years ended September 30, 2022 and 2021, 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, 2022 and 2021 are as follows: 2022 2021 Warrants 7,313,963 745,268 Options 1,063,055 487,377 8,377,018 1,232,645
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 September 30, 2022 and 2021, the Company had cash and cash equivalents of approximately $14.6 million and $6.0 million in excess of the FDIC insurance limit, respectively. The Company’s revenues earned from sale of products and services for the fiscal year ended September 30, 2022 included an aggregate of 58% from one customer within the MDx Testing Services segment. The Company’s revenues earned from sale of products and services for the fiscal year ended September 30, 2021 included an aggregate of 18%, and 13%, respectively from two customers within the MDx Testing Services segment. Two customers accounted for 89% of the Company’s accounts receivable at September 30, 2022 and two customers accounted for an aggregate of 67% of the Company’s total accounts receivable at September 30, 2021.
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. 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, 2022 and 2021, the Company incurred research and development expenses of 3,926,043 and $4,164,434, respectively.
Advertising	Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations $293,395 and $283,621, as advertising costs for the fiscal years ended September 30, 2022 and 2021, 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, 2021, as a result of the qualitative analysis performed, the Company has recorded a non-cash impairment charge of $821,741 to write-off the goodwill and remaining net book value of the intangible assets due to a reduction in demand from certain customers and a transition in the way the product is produced for these customers, which no longer utilizes the previously purchased intellectual property.
Warrant Liabilities	Warrant Liabilities The Company evaluated the Common Warrants and the Series A and Series B Warrants (collectively the “Warrants) in accordance with ASC 480 “Distinguishing Liabilities from Equity” and ASC 815-40, “Derivatives and Hedging — Contracts in Entity’s Own Equity” and concluded that due to the terms of the warrant agreements, the instruments do not qualify for equity treatment. As such, the Warrants were recorded as a liability on the consolidated balance sheet and measured at fair value at inception and at each reporting date in accordance with ASC 820, “Fair Value Measurement”, with changes in fair value recognized in the consolidated statement of operations in the period of change.
Offering Costs	Offering Costs The Company complies with the requirements of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A - “Expenses of Offering”. Offering costs consist principally of professional and underwriting fees incurred. Accordingly, in relation to the registered direct offering and the public offering (See Note H), offering costs in the aggregate of $1,766,170 were incurred, of which $98,058 was charged to additional paid in capital, and $1,668,112 was allocated to the liability classified warrants, and are included in other expense in the accompanying consolidated statement of operations for the twelve-month period ended September 30, 2022.
Segment Reporting	Segment Reporting The Company has three reportable segments. (1) Therapeutic DNA Production Services (2) MDx Testing Services, and (3)DNA Tagging and Security Products and Services. Resources are allocated by our CEO, COO, CFO and CLO whom, collectively the Company has determined to be our Chief Operating Decision Maker (CODM). The following is a brief description of our reportable segments. Therapeutic DNA Production Services MDx Testing Services TM DNA Tagging and Security Products and Services The accounting policies of the segments are the same as those described in the “Summary of Accounting Policies” above. The Company evaluates the performance of its segments and allocates resources to them based on revenues and operating income (losses). Operating income (loss) includes intersegment revenues, as well as a charge allocating all corporate headquarters costs. Since each vertical has shared employee resources, payroll and certain other general expense such as rent, and utilities were allocated based on an estimate by management of the percentage of employee time spent in each vertical. Segment assets are not reported to, or used by, the CODM to allocate resources to, or assess performance of, the segments and therefore, total segment assets have not been disclosed.
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. NOTE C – BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued 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, which reports to the Chief Financial Officer, determine its valuation policies and procedures. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s accounting and finance department and are approved by the Chief Financial Officer. As of September 30, 2022, there were no transfers between Levels 1 2 3
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)	12 Months Ended
	Sep. 30, 2022
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Schedule of revenues disaggregated by business operations and timing of revenue recognition	Fiscal Years Ended: September 30, 2022 2021 Research and development services (over-time) $ 592,001 $ 799,718 Clinical laboratory testing services (point-in-time) 10,398,782 4,231,654 Clinical laboratory services (over-time) 5,127,953 562,500 Product and authentication services (point-in-time): Supply chain 887,061 1,003,248 Asset marking 534,594 458,409 MDx test kits and supplies 628,286 1,972,209 Total $ 18,168,677 $ 9,027,738
Schedule of opening and closing contract balances	October 1, September 30, $ Balance sheet classification 2021 2022 change Contract liabilities Deferred revenue $ 281,000 $ 563,557 $ (282,557) October 1, September 30, $ Balance sheet classification 2020 2021 change Contract liabilities Deferred revenue $ 511,036 $ 281,000 $ 230,036
Schedule of property, plant and equipment	September 30, 2022 2021 Computer equipment $ — $ — Lab equipment 4,059,754 3,565,057 Furniture — — Vehicles 108,361 108,361 Leasehold improvements 124,825 124,825 Total 4,292,940 3,798,243 Accumulated depreciation 2,069,952 774,328 Property and equipment, net $ 2,222,988 $ 3,023,915
Schedule of anti-dilutive securities not included computation of net loss per share	2022 2021 Warrants 7,313,963 745,268 Options 1,063,055 487,377 8,377,018 1,232,645

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
INVENTORIES (Tables)	Sep. 30, 2022
INVENTORIES
Schedule of inventories	2022 2021 Raw materials $ 471,947 $ 786,938 Work in progress 55,817 — Finished goods 74,480 582,995 Total $ 602,244 $ 1,369,933

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
INTANGIBLE ASSETS (Tables)	Sep. 30, 2022
INTANGIBLE ASSETS
Schedule of intangible assets acquired and their carrying values	2021 Customer relationships (10‑year useful life) $ 621,000 Intellectual property (5‑15 years) 917,350 1,538,350 Less: Accumulated amortization 1,001,995 Impairment losses 536,355 Intangible assets, net $ —

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	12 Months Ended
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	Sep. 30, 2022
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Schedule of accounts payable and accrued liabilities	2022 2021 Accounts payable $ 1,744,105 $ 2,010,410 Accrued salaries payable 1,458,661 655,240 Other accrued expenses 418,985 325,693 Total $ 3,621,751 $ 2,991,343

STOCK OPTIONS AND WARRANTS (Tab

STOCK OPTIONS AND WARRANTS (Tables)	12 Months Ended
STOCK OPTIONS AND WARRANTS (Tables)	Sep. 30, 2022
STOCK OPTIONS AND WARRANTS
Schedule of transactions involving warrants	Weighted Average Number of Exercise Price Per Shares Share Balance at October 1, 2021 745,268 $ 6.44 Granted 9,142,413 3.31 Exercised (1,854,200) (2.00) Cancelled or expired (719,518) (6.16) Balance, September 30, 2022 7,313,963 $ 3.68
Schedule of summary of transactions involving stock options issued to employees	Weighted Weighted Average Aggregate Average Number of Exercise Price Per Intrinsic Contractual Shares Share Value Life (years) Outstanding at October 1, 2021 487,377 $ 40.26 Granted 588,187 5.94 Exercised — — Cancelled or expired (12,509) 99.63 Outstanding at September 30, 2022 1,063,055 20.49 Vested at September 30, 2022 840,012 24.57 — 7.67 Non-vested at September 30, 2022 223,043 5.53 — 9.08
Schedule of fair value of options granted	2022 2021 Stock price $ 5.55 $ 6.43 Exercise price $ 594 $ 6.43 Expected term 5.16 5.10 Dividend yield — — Volatility 143 % 141 % Risk free rate 1.18 % 0.47 %

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Sep. 30, 2022
INCOME TAXES
Schedule of income tax provision (benefit)	2022 2021 Federal: Current $ — $ — Deferred (2,781,000) (1,423,000) (2,781,000) (1,423,000) State and local: Current — — Deferred (852,000) (26,000) (852,000) (26,000) Foreign: Current — — Deferred 11,000 18,000 — — Change in valuation allowance 3,622,000 1,431,000 Income tax provision (benefit) $ — $ —
Schedule of effective income tax rate reconciliation	2022 2021 Statutory federal income tax rate 21.00 % 21.00 % Statutory state and local income tax rate (1%, as of September 30, 2021 and 2020), net of federal benefit 6.20 % 1.52 % Stock based compensation (5.01) % (11.54) % Permanent differences related to warrants 14.60 % — % Other permanent differences 1.70 % (0.56) % Federal R&D Credit 3.83 % — % Change in deferred tax rate 1.56 % (0.41) % Change in valuation allowance (43.88) % (10.01) % Effective tax rate 0.00 % 0.00 %
Schedule of components of deferred tax assets	September 30, 2022 2021 Deferred tax assets (liabilities): Stock based compensation $ 847,000 $ 650,000 Depreciation and amortization 113,000 247,000 Net operating loss carry forward 22,872,000 20,115,000 Impairment of intangibles 205,000 187,000 Tax credits 2,055,000 1,566,000 Other 397,000 99,000 Less: valuation allowance (26,489,000) (22,864,000) Net deferred tax asset $ — $ —

SEGMENT AND GEOGRAPHIC AREA I_2

SEGMENT AND GEOGRAPHIC AREA INFORMATION (Tables)	12 Months Ended
SEGMENT AND GEOGRAPHIC AREA INFORMATION (Tables)	Sep. 30, 2022
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Schedule of information regarding operations by segment	Information regarding operations by segment for the twelve- month period ended September 30, 2022 is as follows: Therapeutic DNA MDx Testing DNA Tagging and Production Services Security Products Consolidated Revenues: Product revenues $ — $ 628,286 $ 1,254,518 $ 1,882,804 Service revenues 439,355 — 319,783 759,138 Clinical laboratory service revenues — 15,979,631 — 15,979,631 Less intersegment revenues — (452,896) — (452,896) Total revenues 439,355 16,155,021 1,574,301 18,168,677 Gross profit 439,355 4,827,672 (213,387) 5,053,640 Loss from segment operations (a) (4,497,699) (464,894) (4,652,786) (9,615,379) Information regarding operations by segment for the twelve- month period ended September 30, 2021 is as follows: Therapeutic DNA MDx Testing DNA Tagging and Production Services Security Products Consolidated Revenues: Product revenues $ — $ 1,943,697 $ 1,352,152 $ 3,295,849 Service revenues 559,319 — 378,416 937,735 Clinical laboratory service revenues — 5,090,794 — 5,090,794 Less intersegment revenues — (296,640) — (296,640) Total revenues 559,319 6,737,851 1,730,568 9,027,738 Gross profit 559,318 3,327,080 596,508 4,482,906 Loss from segment operations (a) (5,214,221) (274,250) (4,823,348) (10,311,819) (a) Segment operating loss consists of net sales less cost of sales, specifically identifiable research and development, and selling, general and administrative expenses.
Schedule of reconciliation of segment loss from operations to corporate loss	2022 2021 Loss from operations of reportable segments $ (9,615,379) $ (10,311,819) General corporate expenses (b) (4,354,384) (3,036,822) Interest income (expense), net 7,200 13,675 Unrealized gain on change in fair value of warrants 17,999,521 — Transaction costs related to warrant liabilities (1,668,112) — Loss on issuance of warrants (10,591,600) — Loss on extinguishment of convertible notes payable — (1,774,662) Gain on extinguishment of notes payable — 839,945 Other expense, net (47,305) (8,756) Consolidated loss before provision for income taxes $ (8,270,059) $ (14,278,439) (b) General corporate expenses consists of Selling, general and administrative expenses that are not specifically identifiable to a segment.
Schedule of net revenues by geographic location of customers	Year Ended September 30, 2022 2021 Americas $ 17,544,444 $ 8,520,336 Europe 448,847 359,509 Asia and other 175,386 147,893 Total $ 18,168,677 $ 9,027,738

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	Sep. 30, 2022
FAIR VALUE OF FINANCIAL INSTRUMENTS
Schedule of the significant unobservable inputs in fair value measurement of Level 3 financial assets and liabilities	Fair value at Valuation Unobservable Weighted September 30, 2022 Technique Input Range Average Liabilities: Common Warrants $ 1,477,000 Monte Carlo simulation Annualized volatility 146.72% - 174.63 % 160.00 % Series A Warrants $ 2,883,000 Monte Carlo simulation Annualized volatility 146.72% - 174.63 % 160.00 % Series B Warrants $ 779,400 Monte Carlo simulation Annualized volatility 146.72% - 174.63 % 170 %
Schedule of change in fair value of warrants	The change in fair value of the Common Warrants for the twelve-month period ended September 30, 2022 is summarized as follows: Common Warrants Fair value at issuance, February 24, 2022 $ 3,350,400 Change in fair value (1,873,400) Fair Value at September 30, 2022 $ 1,477,000 The change in fair value of the Series A and Series B Warrants for the twelve-month period ended September 30, 2022 is summarized as follows: Series A Warrants Series B Warrants Fair value at issuance August 8, 2022 $ 13,414,000 $ 9,174,600 Fair value of warrants exercised — (2,828,835) Change in fair value (10,531,000) (5,566,365) Fair Value at September 30, 2022 $ 2,883,000 779,400

NATURE OF THE BUSINESS (Details

NATURE OF THE BUSINESS (Details)	12 Months Ended
NATURE OF THE BUSINESS (Details)	Sep. 30, 2022 item
NATURE OF THE BUSINESS
Number of primary markets that use the Company's technologies	3

LIQUIDITY AND MANAGEMENT'S PL_2

LIQUIDITY AND MANAGEMENT'S PLAN (Details) - USD ($)				12 Months Ended
LIQUIDITY AND MANAGEMENT'S PLAN (Details) - USD ($)	Aug. 08, 2022	Dec. 10, 2020	Dec. 09, 2020	Sep. 30, 2022	Sep. 30, 2021
LIQUIDITY AND MANAGEMENT'S PLAN
Accumulated deficit				$ 292,500,088	$ 284,122,092
Net loss				(8,270,059)	(14,278,439)
Negative operating cash flow				8,976,706
Cash and cash equivalents				15,215,285	6,554,948
Working capital				15,757,821
Proceeds from exercise of warrants		$ 1,100,000	$ 1,100,000	$ 3,700,075	$ 2,613,929
Number of warrants exercised				1,854,200
Series B Warrants
LIQUIDITY AND MANAGEMENT'S PLAN
Proceeds from exercise of warrants	$ 3,700,000
Number of warrants exercised	925,000			925,000
Public offering
LIQUIDITY AND MANAGEMENT'S PLAN
Common stock issued and sold	3,000,000
Offering price (in dollars per share)	$ 4
Net proceeds after deducting placement agent fees and offering expenses	$ 10,700,000

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Revenues disaggregated by our business operations and timing of revenue recognition (Details) - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	$ 18,168,677	$ 9,027,738
Research and development services (over-time)
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	592,001	799,718
Clinical laboratory testing services (point-in-time)
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	10,398,782	4,231,654
Clinical laboratory services (over-time)
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	5,127,953	562,500
Supply chain
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	887,061	1,003,248
Asset marking
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	534,594	458,409
MDx test kits and supplies
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	$ 628,286	$ 1,972,209

BASIS OF PRESENTATION AND SUM_5

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Opening and closing balances of the Company's contract balances (Details) - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Oct. 01, 2021	Oct. 01, 2020
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Revenue recognized in contract liabilities	$ 31,061	$ 277,331
Contract liabilities
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Deferred revenue	563,557	281,000	$ 281,000	$ 511,036
Change in contract liabilities	$ (282,557)	$ 230,036

BASIS OF PRESENTATION AND SUM_6

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Property and equipment (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Property, Plant and Equipment [Line Items]
Total	$ 4,292,940	$ 3,798,243
Accumulated depreciation	2,069,952	774,328
Property and equipment, net	2,222,988	3,023,915
Lab equipment
Property, Plant and Equipment [Line Items]
Total	4,059,754	3,565,057
Vehicles
Property, Plant and Equipment [Line Items]
Total	108,361	108,361
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total	$ 124,825	$ 124,825

BASIS OF PRESENTATION AND SUM_7

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Potential stock issuances under various options, and warrants (Details) - shares	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Antidilutive securities excluded from the computation of diluted net loss per share	8,377,018	1,232,645
Warrants
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Antidilutive securities excluded from the computation of diluted net loss per share	7,313,963	745,268
Stock options
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Antidilutive securities excluded from the computation of diluted net loss per share	1,063,055	487,377

BASIS OF PRESENTATION AND SUM_8

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Additional information (Details)	12 Months Ended
	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
cash equivalents	$ 15,215,285	$ 6,554,948
Allowance on accounts receivable	$ 330,853	29,821
Depreciation method	Straight line method
Depreciation expense	$ 1,290,480	767,025
Goodwill write-off		285,386
Cash and cash equivalents	15,215,285	6,554,948
Research and development	3,926,043	4,164,434
Advertising expense	293,395	283,621
Impairment losses	0	821,741
Offering costs in aggregate	1,766,170
Additional paid in capital charges	98,058
Transaction costs related to warrant liabilities	$ (1,668,112)
Number of reportable segments \| segment	3
Transfers from Level 2 to Level 1, Assets	$ 0
Transfers from Level 1 to Level 2, Assets	0
Transfers from Level 2 to Level 1, Liabilities	0
Transfers from Level 1 to Level 2, Liabilities	0
Transfers Into Level 3, Liabilities	0
Transfers out of Level 3, Liabilities	0
Working capital	15,757,821
Customer Concentration Risk
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Cash and cash equivalents	$ 14,600,000	$ 6,000,000
Customer Concentration Risk \| Total Revenue
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Number of customers	1	2
Customer Concentration Risk \| Total Revenue \| One customer
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Concentration risk percentage	58%	18%
Customer Concentration Risk \| Total Revenue \| Two customer
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Concentration risk percentage		13%
Customer Concentration Risk \| Accounts Receivable \| Two customer
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Concentration risk percentage	89%	67%
Number of customers	2
Computer equipment
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Estimated useful life for computer equipment, lab equipment and furniture	3 years
Lab equipment
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Estimated useful life for computer equipment, lab equipment and furniture	3 years
Construction in progress	$ 127,935	$ 6,580
Vehicles
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Estimated useful life for computer equipment, lab equipment and furniture	P5Y
Furniture
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Estimated useful life for computer equipment, lab equipment and furniture	3 years
Leasehold improvements
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Estimated useful life for computer equipment, lab equipment and furniture	P5Y

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
INVENTORIES
Raw materials	$ 471,947	$ 786,938
Work-in-progress	55,817	0
Finished goods	74,480	582,995
Total	$ 602,244	$ 1,369,933

INTANGIBLE ASSETS - Summary of

INTANGIBLE ASSETS - Summary of intangible assets (Details)	12 Months Ended
INTANGIBLE ASSETS - Summary of intangible assets (Details)	Sep. 30, 2021 USD ($)
INTANGIBLE ASSETS
Customer relationships (10-year useful life)	$ 621,000
Intellectual property (5-15 years)	917,350
Intangible assets, gross	1,538,350
Less: Accumulated amortization	1,001,995
Impairment losses	$ 536,355

INTANGIBLE ASSETS - Summary o_2

INTANGIBLE ASSETS - Summary of intangible assets - Useful life (Details)	12 Months Ended
	Sep. 30, 2021
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 - Additional

INTANGIBLE ASSETS - Additional Information (Details) - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
INTANGIBLE ASSETS
Total amortization expense charged to operations	$ 0	$ 68,976
Non-cash impairment charge, Intangible assets		$ 536,355

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable	$ 1,744,105	$ 2,010,410
Accrued salaries payable	1,458,661	655,240
Other accrued expenses	418,985	325,693
Total	$ 3,621,751	$ 2,991,343

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($)							12 Months Ended
NOTES PAYABLE (Details) - USD ($)	Jan. 05, 2021	Dec. 10, 2020	Dec. 09, 2020	Oct. 09, 2020	Oct. 07, 2020	May 01, 2020	Sep. 30, 2022	Sep. 30, 2021
NOTES PAYABLE
Interest rate (as a percent)							40%
Payroll costs exclude compensation							$ 100,000
Gain on extinguishment of notes payable							$ 0	$ 839,945
Number of warrants exercised							1,854,200
Exercise price							$ 2.80
Proceeds from exercise of warrants		$ 1,100,000	$ 1,100,000				$ 3,700,075	2,613,929
Term of the warrants					5 years
Investors exercised warrants		100,000	100,000
Aggregate exercised of warrants		200,000	200,000
Additional 2019 warrants	0
Additional replacement warrants							0
Loss on extinguishment of convertible notes payable							$ 0	$ 1,774,662
PPP loan
NOTES PAYABLE
Proceeds from notes payable						$ 847,000	$ 100,000
Interest rate (as a percent)							25%
Public offering
NOTES PAYABLE
Number of warrants exercised					318,000
Exercise price					$ 5.25
Proceeds from exercise of warrants					$ 1,669,500
Secured convertible notes ("July 2019 Notes") \| Dillon Hill Capital, LLC
NOTES PAYABLE
Secured notes payable				$ 1,500,000
Payoff amount				$ 1,665,581
Minimum percentage of shareholding in the company's common stock				5%
Replacement Warrants
NOTES PAYABLE
Exercise price					$ 7.54
Number of warrants agreed to be issued		100,000	100,000		159,000
Loss on extinguishment of convertible notes payable							$ (1,643,440)
Replacement warrants of $6.57 exercise price
NOTES PAYABLE
Exercise price		$ 6.57	$ 6.57
Number of warrants agreed to be issued		50,000	50,000
Replacement warrants of $6.46 exercise price
NOTES PAYABLE
Exercise price		$ 6.46	$ 6.46
Number of warrants agreed to be issued		50,000	50,000

CAPITAL STOCK (Details)

CAPITAL STOCK (Details) - USD ($)								12 Months Ended
CAPITAL STOCK (Details) - USD ($)	Aug. 08, 2022	Jun. 09, 2022	Feb. 24, 2022	Jan. 13, 2021	Dec. 10, 2020	Dec. 09, 2020	Oct. 07, 2020	Sep. 30, 2022	Sep. 30, 2021
CAPITAL STOCK
Exercise price of warrants (in dollars per share)								$ 2.80
Warrants expiration period							5 years
Beneficial ownership limitation percentage								4.99%
Beneficial ownership limitation percentage at the option of the holder								9.99%
Period of prior notice to increase beneficial ownership percentage limitation								61 days
Unrealized gain on change in fair value of the warrants classified as a liability								$ (17,999,521)	$ 0
Deemed dividend related to warrant modifications								$ 110,105
Number of warrants exercised								1,854,200
Net proceeds from exercise of warrants					$ 1,100,000	$ 1,100,000		$ 3,700,075	$ 2,613,929
Transaction costs related to warrant liabilities								$ (1,668,112)
Minimum percentage of beneficial ownership limitation to exercise rights								4.99%
Percentage on the number of shares for beneficial ownership limitation to exercise rights								9.99%
Notice period to increase beneficial ownership limitation percentage								61 days
Warrants issued in November 2019
CAPITAL STOCK
Number of remaining warrants issued								458,813
Warrants issued in October 2020
CAPITAL STOCK
Number of remaining warrants issued								159,000
Warrants issued in December 2020
CAPITAL STOCK
Number of remaining warrants issued								100,000
Common Warrants
CAPITAL STOCK
Warrants fair value								$ 1,477,000
Unrealized gain on change in fair value of the warrants classified as a liability								1,873,400
Transaction costs related to warrant liabilities								1,276,777
Series A Warrants
CAPITAL STOCK
Warrants expiration period	5 years
Warrants fair value	$ 13,414,000							2,883,000
Unrealized gain on change in fair value of the warrants classified as a liability								10,531,000
Series B Warrants
CAPITAL STOCK
Warrants expiration period	13 months
Warrants fair value	$ 9,174,600							779,400
Unrealized gain on change in fair value of the warrants classified as a liability								$ 5,566,365
Number of warrants exercised	925,000							925,000
Net proceeds from exercise of warrants	$ 3,700,000
Offering \| Pre-Funded Warrants
CAPITAL STOCK
Number of warrants exercised		748,200
Offering \| Common Warrants
CAPITAL STOCK
Warrants exercise period			6 months
Warrants expiration period			5 years
Gross proceeds			$ 4,200,000
Net proceeds								$ 3,700,000
Warrants fair value at the time of issuance								3,350,400
Transaction costs related to warrant liabilities								391,335
Offering \| Institutional investors
CAPITAL STOCK
Common stock issued and sold			748,200
Offering price (in dollars per share)			$ 2.80
Offering \| Institutional investors \| Pre-Funded Warrants
CAPITAL STOCK
Common stock issued and sold			748,200
Exercise price of warrants (in dollars per share)			$ 0.0001
Offering price (in dollars per share)			2.7999
Offering \| Institutional investors \| Common Warrants
CAPITAL STOCK
Exercise price of warrants (in dollars per share)			$ 2.84
Number of common stock called by warrants			1,496,400
Public offering
CAPITAL STOCK
Common stock issued and sold				1,810,000
Exercise price of warrants (in dollars per share)							$ 5.25
Net proceeds				$ 13,800,000
Public offering price for each share together with warrant				$ 8.30
Number of warrants exercised							318,000
Net proceeds from exercise of warrants							$ 1,669,500
August 2022 Offering
CAPITAL STOCK
Common stock issued and sold	3,000,000
Exercise price of warrants (in dollars per share)	$ 0.0001
Offering price (in dollars per share)	$ 4
Gross proceeds	$ 12,000,000
Common stock, issue price	$ 3.9999
Net proceeds after deducting placement agent fees and offering expenses								$ 10,700,000
August 2022 Offering \| Series A Warrants
CAPITAL STOCK
Offering price (in dollars per share)	$ 4
Number of common stock called by warrants	3,000,000
August 2022 Offering \| Series B Warrants
CAPITAL STOCK
Offering price (in dollars per share)	$ 4
Number of common stock called by warrants	3,000,000

STOCK OPTIONS AND WARRANTS - Tr

STOCK OPTIONS AND WARRANTS - Transactions involving warrants (Details)	12 Months Ended
	Sep. 30, 2022 $ / shares shares
Number of Shares
Balance at October 1, 2021 \| shares	745,268
Granted \| shares	9,142,413
Exercised \| shares	(1,854,200)
Cancelled or expired \| shares	(719,518)
Balance at September 30, 2022 \| shares	7,313,963
Weighted Average Exercise Price Per Share
Balance at October 1, 2021 \| $ / shares	$ 6.44
Granted \| $ / shares	3.31
Exercised \| $ / shares	(2)
Cancelled or expired \| $ / shares	(6.16)
Balance at September 30, 2022 \| $ / shares	$ 3.68

STOCK OPTIONS AND WARRANTS - _2

STOCK OPTIONS AND WARRANTS - Transactions involving stock options issued (Details) - Stock options - Incentive Stock Plan 2005	12 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
Number of Shares
Outstanding at October 1, 2021	487,377
Granted	588,187
Exercised	0
Cancelled or expired	(12,509)
Outstanding at September 30, 2022	1,063,055
Vested at September 30, 2022	840,012
Non-vested at September 30, 2022	223,043
Weighted Average Exercise Price Per Share
Outstanding at October 1, 2021 \| $ / shares	$ 40.26
Granted \| $ / shares	5.94
Cancelled or expired \| $ / shares	99.63
Outstanding at September 30, 2022 \| $ / shares	20.49
Vested at September 30, 2022 \| $ / shares	24.57
Non-vested at September 30, 2022 \| $ / shares	$ 5.53
Aggregate Intrinsic Value, Vested \| $	$ 0
Aggregate Intrinsic Value, Non-vested \| $	$ 0
Weighted Average Contractual Life (years), Vested	7 years 8 months 1 day
Weighted Average Contractual Life (years), Non -vested	9 years 29 days

STOCK OPTIONS AND WARRANTS - Su

STOCK OPTIONS AND WARRANTS - Summary of value of options granted using Black Scholes Option Pricing Model with weighted average assumptions (Details) - $ / shares	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
STOCK OPTIONS AND WARRANTS
Stock price	$ 5.55	$ 6.43
Exercise price	$ 594	$ 6.43
Expected term	5 years 1 month 28 days	5 years 1 month 6 days
Dividend yield	0%	0%
Volatility	143%	141%
Risk free rate	1.18%	0.47%

STOCK OPTIONS AND WARRANTS (Det

STOCK OPTIONS AND WARRANTS (Details) - USD ($)		1 Months Ended	12 Months Ended
STOCK OPTIONS AND WARRANTS (Details) - USD ($)	Aug. 08, 2022	Jun. 30, 2020	Sep. 30, 2022	Sep. 30, 2021
STOCK OPTIONS AND WARRANTS
Number of warrants exercised			1,854,200
Fair value of warrants exercised			$ 2,802,879	$ 0
Unrealized gain on change in fair value of the warrants classified as a liability			$ (17,999,521)	$ 0
Expected term			5 years 1 month 28 days	5 years 1 month 6 days
Stock-based compensation			$ 2,518,665	$ 1,668,003
Unrecorded compensation cost related to non-vested awards			$ 125,118
Weighted average period of non-vested awards options			2 months 12 days
Weighted average grant date fair value for options granted			$ 0.84	$ 5.72
Incentive Stock Plan 2020
STOCK OPTIONS AND WARRANTS
Issuance of common stock as stock awards and stock options		3,500,000
Incentive Stock Plan 2020 \| Employees, consultants and non-employee board of director members
STOCK OPTIONS AND WARRANTS
Stock-based compensation		$ 250,000
Series A Warrants
STOCK OPTIONS AND WARRANTS
Fair value of warrants	$ 13,414,000		$ 2,883,000
Unrealized gain on change in fair value of the warrants classified as a liability			10,531,000
Series B Warrants
STOCK OPTIONS AND WARRANTS
Fair value of warrants	$ 9,174,600		$ 779,400
Number of warrants exercised	925,000		925,000
Fair value of warrants exercised			$ 2,802,879
Unrealized gain on change in fair value of the warrants classified as a liability			$ 5,566,365
Officers of the Company
STOCK OPTIONS AND WARRANTS
Number of shares granted			361,552
Expected term			10 years
Non-employee board of director
STOCK OPTIONS AND WARRANTS
Number of shares granted			213,889
Expected term			10 years
Vesting period			1 year
Stock options \| Employees, consultants and non-employee board of director members
STOCK OPTIONS AND WARRANTS
Number of shares granted				203,405
Stock options \| Incentive Stock Plan 2005
STOCK OPTIONS AND WARRANTS
Number of shares granted			588,187
Stock options \| Incentive Stock Plan 2020
STOCK OPTIONS AND WARRANTS
Cumulative number of shares issued				6,894
Options to purchase shares under the 2005 Incentive stock plan				501,240

INCOME TAXES - Provision (Benef

INCOME TAXES - Provision (Benefit) (Details) - USD ($)	12 Months Ended
INCOME TAXES - Provision (Benefit) (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Federal:
Current	$ 0	$ 0
Deferred	(2,781,000)	(1,423,000)
Federal income tax expense benefit, total	(2,781,000)	(1,423,000)
State and local:
Current	0	0
Deferred	(852,000)	(26,000)
State and local income tax expense benefit, total	(852,000)	(26,000)
Foreign:
Current	0	0
Deferred	11,000	18,000
Foreign income tax expense benefit, total	0	0
Change in valuation allowance	3,622,000	1,431,000
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)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
INCOME TAXES
Statutory federal income tax rate	21%	21%
Statutory state and local income tax rate (1%, as of September 30, 2020 and 2019), net of federal benefit	6.20%	1.52%
Stock based compensation	(5.01%)	(11.54%)
Permanent differences related to warrants	14.60%
Other permanent differences	1.70%	(0.56%)
Federal R&D Credit	3.83%	0%
Change in deferred tax rate	1.56%	(0.41%)
Change in valuation allowance	(43.88%)	(10.01%)
Effective tax rate	0%	0%

INCOME TAXES (Details)

INCOME TAXES (Details)	12 Months Ended
INCOME TAXES (Details)	Sep. 30, 2021	Sep. 30, 2020
INCOME TAXES
Federal benefit	1%	1%

INCOME TAXES - Components of de

INCOME TAXES - Components of deferred tax assets (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Deferred tax assets (liabilities):
Stock based compensation	$ 847,000	$ 650,000
Depreciation and amortization	113,000	247,000
Net operating loss carry forward	22,872,000	20,115,000
Impairment of intangibles	205,000	187,000
Tax credits	2,055,000	1,566,000
Other	397,000	99,000
Less: valuation allowance	(26,489,000)	(22,864,000)
Net deferred tax asset	$ 0	$ 0

INCOME TAXES - Additional Infor

INCOME TAXES - Additional Information (Details) - USD ($)		12 Months Ended
INCOME TAXES - Additional Information (Details) - USD ($)	Aug. 16, 2022	Sep. 30, 2022	Sep. 30, 2021
INCOME TAXES
Federal net operating loss carryforward		$ 94,315,000
State net operating loss carryforward		45,746,000
Federal net operating loss expire		60,374,000
Increased in valuation allowance		3,622,000	$ 1,431,000
Federal research and development credits		1,552,000
State investment tax credits		457,000
Excise tax	1%
Minimum
INCOME TAXES
Operating loss carryforwards limitations on use amount		94,000
Maximum
INCOME TAXES
Operating loss carryforwards limitations on use amount		$ 1,528,742

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Operating Leases (Details)					12 Months Ended
COMMITMENTS AND CONTINGENCIES - Operating Leases (Details)	Oct. 31, 2020 USD ($)	Jan. 20, 2020	Nov. 01, 2017 USD ($) ft²	Jun. 15, 2013 ft²	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Feb. 01, 2022
COMMITMENTS AND CONTINGENCIES
Area of property under operating lease \| ft²				30,000
Extended operating lease for additional period	1 year	1 year		3 years
Area of laboratory space \| ft²				2,200
Lessee, operating lease, option to extend		Jan. 20, 2020
Base rent during initial lease term per annum	$ 589,056
Lease for satellite testing \| ft²			1,108
Term lease			3 years				1 year
Base rent			$ 6,500
Short-term lease obligation					$ 199,665
Total lease rental expenses					$ 587,346	$ 565,597

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Employment Agreement (Details) - Employment Agreement - CEO - USD ($)						12 Months Ended
	Sep. 03, 2022	Mar. 07, 2022	Oct. 29, 2021	Jun. 30, 2021	Jul. 28, 2017	Sep. 30, 2022	Jun. 30, 2017
COMMITMENTS AND CONTINGENCIES
Agreement renewal period				1 year	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 salary	$ 450,000	$ 225,000	$ 450,000		$ 400,000	$ 450,000
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.
One time payment in lieu of reduction in salary	$ 110,343
Approved bonus						800,000
Revenue bonus recorded to long term accrued liabilities						$ 18,000,000

SEGMENT AND GEOGRAPHIC AREA I_3

SEGMENT AND GEOGRAPHIC AREA INFORMATION - Information regarding operations by segment (Details)	12 Months Ended
	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Number of reportable segments \| segment	3
Total revenues	$ 18,168,677	$ 9,027,738
Gross profit	5,053,640	4,482,906
Loss from segment operations	(13,969,763)	(13,348,641)
Product revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	1,882,804	3,295,849
Service revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	759,138	937,735
Clinical laboratory service revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	15,526,735	4,794,154
Therapeutic DNA Production
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	439,355	559,319
Gross profit	439,355	559,318
Therapeutic DNA Production \| Service revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	439,355	559,319
MDx Testing Services
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	16,155,021	6,737,851
Gross profit	4,827,672	3,327,080
MDx Testing Services \| Product revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	628,286	1,943,697
DNA Tagging and Security Products
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	1,574,301	1,730,568
Gross profit	(213,387)	596,508
DNA Tagging and Security Products \| Product revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	1,254,518	1,352,152
DNA Tagging and Security Products \| Service revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	319,783	378,416
Operating segment
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Loss from segment operations	(9,615,379)	(10,311,819)
Operating segment \| Clinical laboratory service revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	15,979,631	5,090,794
Operating segment \| Therapeutic DNA Production
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Loss from segment operations	(4,497,699)	(5,214,221)
Operating segment \| MDx Testing Services
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Loss from segment operations	(464,894)	(274,250)
Operating segment \| MDx Testing Services \| Clinical laboratory service revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	15,979,631	5,090,794
Operating segment \| DNA Tagging and Security Products
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Loss from segment operations	(4,652,786)	(4,823,348)
Intersegment Elimination
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	(452,896)	(296,640)
Intersegment Elimination \| MDx Testing Services
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	$ (452,896)	$ (296,640)

SEGMENT AND GEOGRAPHIC AREA I_4

SEGMENT AND GEOGRAPHIC AREA INFORMATION -Reconciliation of segment loss from operation to corporate loss (Details) - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Reconciliation of segment loss from operations to corporate loss
Loss from operations of reportable segments	$ (13,969,763)	$ (13,348,641)
General corporate expenses	(15,097,360)	(12,845,372)
Interest income (expense), net	7,200	13,675
Unrealized gain on change in fair value of warrants	17,999,521	0
Transaction costs related to warrant liabilities	(1,668,112)
Loss on issuance of warrants	(10,591,600)	0
Loss on extinguishment of convertible notes payable	0	(1,774,662)
Gain on extinguishment of notes payable	0	839,945
Other expense, net	(47,305)	(8,756)
Consolidated loss before provision for income taxes	(8,270,059)	(14,278,439)
Operating segment
Reconciliation of segment loss from operations to corporate loss
Loss from operations of reportable segments	(9,615,379)	(10,311,819)
Segment reconciling items
Reconciliation of segment loss from operations to corporate loss
General corporate expenses	$ (4,354,384)	$ (3,036,822)

SEGMENT AND GEOGRAPHIC AREA I_5

SEGMENT AND GEOGRAPHIC AREA INFORMATION - Net revenues by geographic location of customers (Details) - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Net revenues by geographic location of customers
Total	$ 18,168,677	$ 9,027,738
Americas
Net revenues by geographic location of customers
Total	17,544,444	8,520,336
Europe
Net revenues by geographic location of customers
Total	448,847	359,509
Asia and other
Net revenues by geographic location of customers
Total	$ 175,386	$ 147,893

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)						12 Months Ended
RELATED PARTY TRANSACTIONS (Details) - USD ($)	Dec. 10, 2020	Dec. 09, 2020	Oct. 07, 2020	Dec. 10, 2019	Dec. 09, 2019	Sep. 30, 2022	Sep. 30, 2021
RELATED PARTY TRANSACTIONS
Investors exercised warrants	100,000	100,000
Threshold percentage of shareholder exercising warrants				5%	5%	5%
Aggregate exercised of warrants	200,000	200,000
Net proceeds from exercise of warrants	$ 1,100,000	$ 1,100,000				$ 3,700,075	$ 2,613,929
Exercise price of warrants (in dollars per share)						$ 2.80
Replacement warrants
RELATED PARTY TRANSACTIONS
Number of warrants issued the investors	100,000	100,000	159,000
Exercise price of warrants (in dollars per share)			$ 7.54
Replacement warrants of $6.57 exercise price
RELATED PARTY TRANSACTIONS
Number of warrants issued the investors	50,000	50,000
Exercise price of warrants (in dollars per share)	$ 6.57	$ 6.57
Replacement warrants of $6.46 exercise price
RELATED PARTY TRANSACTIONS
Number of warrants issued the investors	50,000	50,000
Exercise price of warrants (in dollars per share)	$ 6.46	$ 6.46

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS - inputs used in fair value of Level 3 Financial asset and liabilities (Details) - Level 3 - Monte Carlo simulation - Annualized Volatility	Sep. 30, 2022 USD ($)
Common Warrants
FAIR VALUE OF FINANCIAL INSTRUMENTS
Financial liabilities fair value disclosure	$ 1,477,000
Common Warrants \| Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Warrants and rights outstanding, measurement input	1.4672
Common Warrants \| Maximum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Warrants and rights outstanding, measurement input	1.7463
Common Warrants \| Weighted Average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Warrants and rights outstanding, measurement input	1.6000
Series A Warrants
FAIR VALUE OF FINANCIAL INSTRUMENTS
Financial liabilities fair value disclosure	$ 2,883,000
Series A Warrants \| Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Warrants and rights outstanding, measurement input	1.4672
Series A Warrants \| Maximum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Warrants and rights outstanding, measurement input	1.7463
Series A Warrants \| Weighted Average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Warrants and rights outstanding, measurement input	1.6000
Series B Warrants
FAIR VALUE OF FINANCIAL INSTRUMENTS
Financial liabilities fair value disclosure	$ 779,400
Series B Warrants \| Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Warrants and rights outstanding, measurement input	1.4672
Series B Warrants \| Maximum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Warrants and rights outstanding, measurement input	1.7463
Series B Warrants \| Weighted Average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Warrants and rights outstanding, measurement input	1.70

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS - Change in fair value of warrants (Details) - USD ($)	2 Months Ended	7 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2022
Common Warrants [Member]
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value at beginning of period			$ 3,350,400
Change in fair value		$ (1,873,400)
Fair Value at ending of period	$ 1,477,000	1,477,000	$ 1,477,000
Change in fair value, Gain (loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Unrealized gain on change in fair value of the warrants classified as a liability
Series A Warrants
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value at beginning of period	13,414,000
Change in fair value	(10,531,000)
Fair Value at ending of period	$ 2,883,000	2,883,000	$ 2,883,000
Change in fair value, Gain (loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Unrealized gain on change in fair value of the warrants classified as a liability
Series B Warrants
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value at beginning of period	$ 9,174,600
Fair value of warrants exercised	(2,828,835)
Change in fair value	(5,566,365)
Fair Value at ending of period	$ 779,400	$ 779,400	$ 779,400
Change in fair value, Gain (loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Unrealized gain on change in fair value of the warrants classified as a liability