Applied DNA Sciences (APDN) 10-Q 10 Aug 23 2023 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2023	Aug. 04, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Entity File Number	001-36745
Entity Registrant Name	Applied DNA Sciences, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	59-2262718
Entity Address, Address Line One	50 Health Sciences Drive
Entity Address, City or Town	Stony Brook
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11790
City Area Code	631
Local Phone Number	240-8800
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	APDN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,658,520
Entity Central Index Key	0000744452
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2023	Sep. 30, 2022
Current assets:
Cash and cash equivalents	$ 10,756,235	$ 15,215,285
Accounts receivable, net of allowance of $75,000 and $330,853 at June 30, 2023 and September 30, 2022, respectively	682,701	3,067,544
Inventories	276,422	602,244
Prepaid expenses and other current assets	524,904	1,058,056
Total current assets	12,240,262	19,943,129
Property and equipment, net	1,168,038	2,222,988
Other assets:
Restricted cash	750,000
Capitalized transaction costs	275,726
Operating right of use asset	1,355,508
Deposits		98,997
Total assets	15,789,534	22,265,114
Current liabilities:
Accounts payable and accrued liabilities	2,127,908	3,621,751
Operating lease liability, current	487,425
Deferred revenue	275,885	563,557
Total current liabilities	2,891,218	4,185,308
Long term accrued liabilities	31,467	31,467
Operating lease liability, long term	868,081
Warrants classified as a liability	4,804,700	5,139,400
Total liabilities	8,595,466	9,356,175
Commitments and contingencies
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 June 30 2023 and September 30, 2022, respectively
Common stock, par value $0.001 per share; 200,000,000 shares authorized as of June 30, 2023 and September 30, 2022, 12,908,520 shares issued and outstanding as of June 30, 2023, 2023 and September 30, 2022	12,909	12,909
Additional paid in capital	306,091,402	305,399,008
Accumulated deficit	(298,854,883)	(292,500,088)
Applied DNA Sciences, Inc. stockholders' equity	7,249,428	12,911,829
Noncontrolling interest	(55,360)	(2,890)
Total equity	7,194,068	12,908,939
Total liabilities and equity	15,789,534	22,265,114
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 June 30 2023 and September 30, 2022, respectively
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 June 30 2023 and September 30, 2022, respectively

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Jun. 30, 2023	Sep. 30, 2022
Allowance on accounts receivable	$ 75,000	$ 330,853
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	12,908,520	12,908,520
Common stock, shares outstanding	12,908,520	12,908,520
Series A Preferred stock
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B Preferred stock
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues
Total revenues	$ 2,917,341	$ 4,296,371	$ 12,587,707	$ 14,609,360
Total cost of revenues	1,648,023	3,257,113	7,133,271	9,972,479
Gross profit	1,269,318	1,039,258	5,454,436	4,636,881
Operating expenses:
Selling, general and administrative	3,292,304	3,032,877	9,440,734	11,341,176
Research and development	836,123	863,025	2,796,171	3,013,162
Total operating expenses	4,128,427	3,895,902	12,236,905	14,354,338
LOSS FROM OPERATIONS	(2,859,109)	(2,856,644)	(6,782,469)	(9,717,457)
Interest income	26,783		34,108	5,813
Transaction costs allocated to warrant liabilities				(391,335)
Unrealized (loss) gain on change in fair value of warrants classified as a liability	(278,400)	1,758,200	334,700	2,540,700
Other (expense) income, net	(3,469)	(26,352)	6,396	(43,226)
Loss before provision for income taxes	(3,114,195)	(1,124,796)	(6,407,265)	(7,605,505)
Provision for income taxes	0	0	0	0
NET LOSS	(3,114,195)	(1,124,796)	(6,407,265)	(7,605,505)
Less: Net loss attributable to noncontrolling interest	14,429	576	52,470	833
NET LOSS attributable to Applied DNA Sciences, Inc.	(3,099,766)	(1,124,220)	(6,354,795)	(7,604,672)
Deemed dividend related to warrant modification				110,105
NET LOSS attributable to common stockholders	$ (3,099,766)	$ (1,124,220)	$ (6,354,795)	$ (7,714,777)
Net loss per share attributable to common stockholders - basic	$ (0.24)	$ (0.13)	$ (0.49)	$ (0.94)
Net loss per share attributable to common stockholders - diluted	$ (0.24)	$ (0.13)	$ (0.49)	$ (0.94)
Weighted average shares outstanding - basic	12,908,520	8,982,520	12,908,520	8,184,807
Weighted average shares outstanding - diluted	12,908,520	8,982,520	12,908,520	8,184,807
Product revenues
Revenues
Total revenues	$ 316,950	$ 219,765	$ 1,130,800	$ 1,454,427
Total cost of revenues	368,902	307,049	1,103,843	1,211,959
Service revenues
Revenues
Total revenues	425,694	182,796	826,813	570,759
Clinical laboratory service revenues
Revenues
Total revenues	2,174,697	3,893,810	10,630,094	12,584,174
Total cost of revenues	$ 1,279,121	$ 2,950,064	$ 6,029,428	$ 8,760,520

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Common Shares	Additional Paid in Capital	Accumulated Deficit	Noncontrolling Interest	Total
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
Increase (Decrease) in Stockholders' Equity
Stock based compensation expense		1,699,920			1,699,920
Options issued in settlement of accrued bonus		300,000			300,000
Net income (loss)			(4,721,766)	855	(4,720,911)
Balance at Dec. 31, 2021	$ 7,488	297,228,192	(288,843,858)	133	8,391,955
Balance (in shares) at Dec. 31, 2021	7,486,120
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
Increase (Decrease) in Stockholders' Equity
Net income (loss)					(7,605,505)
Balance at Jun. 30, 2022	$ 8,984	298,624,137	(291,836,869)	(1,554)	6,794,698
Balance (in shares) at Jun. 30, 2022	8,982,520
Balance at Dec. 31, 2021	$ 7,488	297,228,192	(288,843,858)	133	8,391,955
Balance (in shares) at Dec. 31, 2021	7,486,120
Increase (Decrease) in Stockholders' Equity
Stock based compensation expense		272,915			272,915
Deemed dividend - warrant repricing		110,105	(110,105)
Common stock issued in public offering, net of offering costs	$ 748	4,091,085			4,091,833
Common stock issued in public offering, net of offering costs (in shares)	748,200
Fair value of warrants issued in connection with public offering		(3,350,400)			(3,350,400)
Net income (loss)			(1,758,685)	(1,112)	(1,759,797)
Balance at Mar. 31, 2022	$ 8,236	298,351,897	(290,712,648)	(979)	7,646,506
Balance (in shares) at Mar. 31, 2022	8,234,320
Increase (Decrease) in Stockholders' Equity
Exercise of warrants	$ 748	(674)			74
Exercise of warrants (in shares)	748,200
Stock based compensation expense		272,914			272,914
Net income (loss)			(1,124,221)	(575)	(1,124,796)
Balance at Jun. 30, 2022	$ 8,984	298,624,137	(291,836,869)	(1,554)	6,794,698
Balance (in shares) at Jun. 30, 2022	8,982,520
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
Increase (Decrease) in Stockholders' Equity
Stock based compensation expense		93,748			$ 93,748
Net income (loss)			(3,843,372)	(874)	(3,844,246)
Balance at Dec. 31, 2022	$ 12,909	305,492,756	(296,343,460)	(3,764)	9,158,441
Balance (in shares) at Dec. 31, 2022	12,908,520
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
Increase (Decrease) in Stockholders' Equity
Net income (loss)					$ (6,407,265)
Balance at Jun. 30, 2023	$ 12,909	306,091,402	(298,854,883)	(55,360)	$ 7,194,068
Balance (in shares) at Jun. 30, 2023	12,908,520				12,908,520
Balance at Dec. 31, 2022	$ 12,909	305,492,756	(296,343,460)	(3,764)	$ 9,158,441
Balance (in shares) at Dec. 31, 2022	12,908,520
Increase (Decrease) in Stockholders' Equity
Stock based compensation expense		258,604			258,604
Net income (loss)			588,343	(37,167)	551,176
Balance at Mar. 31, 2023	$ 12,909	305,751,360	(295,755,117)	(40,931)	9,968,221
Balance (in shares) at Mar. 31, 2023	12,908,520
Increase (Decrease) in Stockholders' Equity
Stock based compensation expense		340,042			340,042
Net income (loss)			(3,099,766)	(14,429)	(3,114,195)
Balance at Jun. 30, 2023	$ 12,909	$ 306,091,402	$ (298,854,883)	$ (55,360)	$ 7,194,068
Balance (in shares) at Jun. 30, 2023	12,908,520				12,908,520

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net loss	$ (6,407,265)	$ (7,605,505)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,032,568	962,800
Gain on sale of property and equipment	(6,083)
Unrealized gain on change in fair value of warrants	(334,700)	(2,540,700)
Stock-based compensation	692,394	2,245,749
Change in provision for bad debts	(255,853)	10,000
Write-off of property and equipment	62,000
Change in operating assets and liabilities:
Accounts receivable	2,640,694	(64,928)
Inventories	325,822	815,294
Prepaid expenses and other current assets and deposits	632,149	(603,439)
Accounts payable and accrued liabilities	(1,631,965)	586,379
Deferred revenue	(287,672)	476,264
Net cash used in operating activities	(3,537,911)	(5,718,086)
Cash flows from investing activities:
Capitalized transaction costs for asset purchase transaction	(137,604)
Proceeds from sale of property and equipment	45,000
Purchase of property and equipment	(78,535)	(246,892)
Net cash used in investing activities	(171,139)	(246,892)
Cash flows from financing activities:
Net proceeds from exercise of warrants		75
Net proceeds from issuance of common stock and warrants		4,091,833
Net cash provided by financing activities		4,091,908
Net decrease in cash, cash equivalents and restricted cash	(3,709,050)	(1,873,070)
Cash, cash equivalents and restricted cash at beginning of period	15,215,285	6,554,948
Cash, cash equivalents and restricted cash at end of period	11,506,235	4,681,878
Supplemental Disclosures of Cash Flow Information:
Cash paid during period for interest	0	0
Cash paid during period for income taxes	0	0
Non-cash investing and financing activities:
Property and equipment acquired, and included in accounts payable		249,468
Deemed dividend warrant modifications		110,105
Leased assets obtained in exchange for new operating lease liabilities	1,545,916
Fair value of warrants issued		3,350,400
Transaction costs for asset purchase included in accounts payable	$ 138,122
Issuance of stock options for payment of accrued bonus		$ 300,000

NATURE OF THE BUSINESS

NATURE OF THE BUSINESS	9 Months Ended
	Jun. 30, 2023
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 and commercializing technologies to produce and detect deoxyribonucleic acid (“DNA”) and ribonucleic acid (“RNA”). The Company uses the polymerase chain reaction (“PCR”) to enable the production and detection of DNA and RNA, for use in three primary markets: (i) the manufacture of synthetic DNA for use in the production of nucleic acid-based therapeutics and, through its recent acquisition of Spindle Biotech, Inc. (“Spindle”), for the development and sale of proprietary RNA polymerase (“RNAP”) for use in the production of mRNA therapeutics (“Therapeutic DNA Production Services”); (ii) the detection of DNA and RNA in molecular diagnostics and genetic 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

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES	9 Months Ended
	Jun. 30, 2023
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES	NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES Interim Financial Statements The accompanying condensed consolidated financial statements as of June 30, 2023, and for the three and nine-month periods ended June 30, 2023 and 2022 are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and are presented in accordance with the requirements of Regulation S-X of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine-month periods ended June 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2023. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the fiscal year ended September 30, 2022 and footnotes thereto included in the Annual Report on Form 10-K of the Company filed with the SEC on December 14, 2022, as amended. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year’s presentation. The condensed consolidated balance sheet as of September 30, 2022 contained herein has been derived from the audited consolidated financial statements as of September 30, 2022 but does not include all disclosures required by GAAP. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, APDN (B.V.I.) Inc., Applied DNA Sciences Europe Limited, Applied DNA Sciences India Private Limited, ADCL, and Spindle Acquisition Corp. (formed June 2023), and its majority-owned subsidiary, LineaRx, Inc. (“LRx”). Significant inter-company transactions and balances have been eliminated in consolidation. Going Concern and Management’s Plan The Company has recurring net losses, which have resulted in an accumulated deficit of $298,854,883 as of June 30, 2023. The Company incurred a net loss of $6,407,265 and generated negative operating cash flow of $3,537,911 for the nine-month period ended June 30, 2023. These factors raise substantial doubt about the Company’s ability to continue as a going concern for one year from the issuance of the financial statements. The ability of the Company to continue as a going concern is dependent on the Company’s ability to further implement its business plan, raise capital, and generate revenues. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. ​ NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Going Concern and Management's Plan, The Company’s current capital resources include cash and cash equivalents, accounts receivable and inventories. Historically, the Company has financed its operations principally from the sale of equity and equity-linked securities. Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The most 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. ​ NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Revenue Recognition Product Revenues 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. ​ NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Revenue Recognition Disaggregation of Revenue The following table presents revenues disaggregated by our business operations and timing of revenue recognition: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Month Period Ended: ​ ​ June 30, ​ June 30, ​ 2023 2022 Research and development services (over-time) ​ $ 135,622 ​ $ 152,732 Clinical laboratory testing services (point-in-time) ​ ​ 1,521,315 ​ ​ 2,506,976 Clinical laboratory testing services (over-time) ​ ​ 653,382 ​ ​ 1,386,834 Product and authentication services (point-in-time): ​ ​ ​ ​ Supply chain ​ 242,826 ​ 43,243 Large Scale DNA Production ​ ​ 271,884 ​ ​ — Asset marking ​ 92,312 ​ 127,075 MDx test kits and supplies ​ ​ — ​ ​ 79,511 Total ​ $ 2,917,341 ​ $ 4,296,371 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Month Period Ended: ​ ​ June 30, ​ June 30, ​ 2023 2022 Research and development services (over-time) ​ $ 349,587 ​ $ 472,539 Clinical laboratory testing services (point-in-time) ​ ​ 7,596,748 ​ ​ 8,712,565 Clinical laboratory testing services (over-time) ​ ​ 3,033,346 ​ ​ 3,871,609 Product and authentication services (point-in-time): ​ ​ ​ ​ ​ ​ Supply chain ​ 682,799 ​ 570,252 Large Scale DNA Production ​ 653,015 ​ — Asset marking ​ ​ 272,212 ​ ​ 380,039 MDx test kits and supplies ​ — ​ 602,356 Total ​ $ 12,587,707 ​ $ 14,609,360 ​ ​ NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Revenue Recognition Contract balances As of June 30, 2023, the Company has entered into contracts with customers for which revenue has not yet been recognized. Consideration received from a customer prior to revenue recognition is recorded to a contract liability and is recognized as revenue when the Company satisfies the related performance obligations under the terms of the contract. The Company’s contract liabilities, which are reported as deferred revenue on the condensed consolidated balance sheet, consist almost entirely of research and development contracts where consideration has been received and the development services have not yet been fully performed. The opening and closing balances of the Company’s contract balances are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 1, ​ June 30, ​ $ ​ Balance sheet classification 2022 2023 change Contract liabilities Deferred revenue ​ $ 563,557 ​ $ 275,885 ​ $ 287,672 ​ For the three and nine-month periods ended June 30, 2023, the Company recognized $2,113 and $345,480 of revenue that was included in Contract liabilities as of October 1, 2022, respectively. ​ 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 B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued 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, restricted stock units and warrants. Securities that could potentially dilute basic net loss 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 anti-dilutive for the three and nine-month periods ended June 30, 2023 and 2022 are as follows: ​ ​ ​ ​ ​ ​ ​ 2023 2022 Warrants ​ 7,295,588 ​ 2,239,963 Restricted Stock Units ​ 282,640 ​ — Stock options ​ 2,198,971 ​ 1,063,143 Total ​ 9,777,199 ​ 3,303,106 ​ Cash and Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts shown in the statement of cash flows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ June 30, ​ 2023 2022 Cash and cash equivalents ​ $ 10,756,235 ​ $ 4,681,878 Restricted cash ​ 750,000 ​ — Total cash, cash equivalents and restricted cash ​ $ 11,506,235 ​ $ 4,681,878 ​ The Company’s restricted cash consists of cash that the Company is contractually obligated to maintain in accordance with the terms of its February 2023 standby letter of credit agreement related to its new operating lease. See Note F for further details. ​ NOTE B — 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, restricted cash 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 June 30, 2023, the Company had cash and cash equivalents of approximately $8.5 million in excess of the FDIC insurance limit. The Company’s revenues earned from sale of products and services for the three and nine-month periods ended June 30, 2023 included an aggregate of 71% and 81%, respectively from two customers within the MDx Testing Services segment. 53% and 69% of the revenues earned for the three and nine-month periods ended June 30, 2023, respectively were derived from the COVID-19 testing contract with CUNY that terminated during June 2023. One customer from within the MDx Testing Services segment accounted for 64% and 55%, respectively, of the Company’s revenues earned from sale of products and services for the three and nine-month periods ended June 30, 2022. Two customers accounted for 86% of the Company’s accounts receivable at June 30, 2023 and two customers accounted for 89% of the Company’s accounts receivable at 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 Chief Executive Officer (“CEO”), Chief Operating Officer (“COO”), Chief Financial Officer (“CFO”) and Chief Legal Officer (“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 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 expenses 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. ​ NOTE B – BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Fair Value of Financial Instruments The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related asset or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. The Company utilizes observable market inputs (quoted market prices) when measuring fair value whenever possible. For fair value measurements categorized within Level 3 of the fair value hierarchy, the Company’s accounting and finance department, 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 June 30, 2023, there were transfers between Levels 1 2 3 Recent Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments” (“ASU-2016-13”), which changes the methodology for measuring credit losses on financial instruments and certain other instruments, including trade receivables and contract assets. The new standard replaces the current incurred loss model for measurement of credit losses on financial assets with a forward-looking expected loss model based on historical experience, current conditions, and reasonable and supportable forecasts. The new standard is effective for fiscal years beginning after December 15, 2022. The adoption of ASU 2016-13 is not expected to have a significant impact on the Company’s condensed consolidated financial statements. 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 condensed consolidated financial statements.

INVENTORIES

INVENTORIES	9 Months Ended
	Jun. 30, 2023
INVENTORIES
INVENTORIES	NOTE C — INVENTORIES Inventories consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ 2023 2022 ​ ​ (unaudited) ​ ​ ​ Raw materials ​ $ 212,965 ​ $ 471,947 Work-in-progress ​ ​ 26,425 ​ ​ 55,817 Finished goods ​ 37,032 ​ 74,480 Total ​ $ 276,422 ​ $ 602,244 ​

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	9 Months Ended
	Jun. 30, 2023
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	NOTE D — ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ 2023 2022 ​ ​ (unaudited) ​ ​ ​ Accounts payable ​ $ 1,051,723 ​ $ 1,744,105 Accrued salaries payable ​ 999,952 ​ 1,458,661 Other accrued expenses ​ 76,233 ​ 418,985 Total ​ $ 2,127,908 ​ $ 3,621,751 ​

WARRANTS, STOCK OPTIONS AND RES

WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS	9 Months Ended
	Jun. 30, 2023
WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS
WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS	NOTE E —WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS Warrants The following table summarizes the changes in warrants outstanding. These warrants were granted as part of financing transactions, as well as in lieu of cash compensation for services performed or as financing expenses in connection with the sales of the Company’s common stock. Transactions involving warrants are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ ​ ​ Exercise ​ ​ Number of ​ Price Per ​ Shares Share Balance at October 1, 2022 ​ 7,313,963 ​ $ 3.68 Granted ​ — ​ — Exercised ​ — ​ — Cancelled or expired ​ (18,375) ​ 17.60 Balance at June 30, 2023 ​ 7,295,588 ​ $ 3.65 ​ ​ NOTE E —WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS Continued Options ​ For the nine-month period ended June 30, 2023, the Company granted 308,333 options to certain officers of the Company. These options have a ten-year term and vest 25% per year commencing on the first anniversary of the grant date. Also, during the nine-month period ended June 30, 2023, the Company granted 694,670 options to non-employee board of director members. The options granted to non-employee board of director members have a ten-year term and vest on the one-year anniversary of the date of grant. ​ The fair value of options granted during the nine-month period ended June 30, 2023, 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 fair value for options granted during the nine-month period ended June 30, 2023 was calculated using the following weighted average assumptions: stock price of $1.27 ; exercise price of $1.27 ; expected term of 5.74 years; dividend yield of 0 %; volatility of 157% ; and risk-free rate of 3.64% . The weighted average grant date fair value per share for the options granted during the nine-month period ended June 30, 2023 was $1.20 . ​ Restricted Stock Units ​ During the nine-month period ended June 30, 2023, the Company granted 282,640 restricted stock units (“RSUs”) to certain officers of the Company. These RSUs vest on the first anniversary of the grant date. The fair value of the RSUs granted was the closing stock price on the date of grant.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Jun. 30, 2023
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE F — COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases office space under an operating lease in Stony Brook, New York for its corporate headquarters. The lease is for a 30,000 square foot building. The Company entered into an amended lease agreement on February 1, 2023. The initial term is for three years and expires on February 1, 2026. The lease for the corporate headquarters requires monthly payments of $48,861 , which is adjusted annually based on the US Consumer Price Index (“CPI”). In lieu of a security deposit, the Company provided a standby letter of credit of $750,000 . In addition, the Company also has 2,500 square feet of laboratory space, which it entered into an amended lease agreement for on February 1, 2023. The initial lease term for the laboratory space is one year from the commencement date. The lease requires monthly payments of $8,750 . 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 2023, the Company renewed this lease with a new expiration date of July 31, 2024. The base rent is approximately $6,500 per annum. The laboratory lease, as well as the testing facility in Ahmedabad are both considered short-term lease obligations. The total rent expense for the three and nine-month periods ended June 30, 2023 were $174,399 and $489,096 , respectively. The components of lease expense are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three-month Nine-month ​ ​ period ended ​ period ended Lease Cost ​ June 30, 2023 ​ June 30, 2023 Operating lease cost ​ $ 244,306 ​ $ 342,028 Short-term lease cost ​ 43,750 ​ 260,725 Total lease cost ​ $ 288,056 ​ $ 602,753 ​ NOTE F — COMMITMENTS AND CONTINGENCIES continued ​ ​ ​ ​ ​ ​ Other Information ​ ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ Operating cash flows from operating leases ​ $ 244,306 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ 1,545,916 ​ Weighted-average remaining lease term — operating leases ​ 2.6 years ​ Weighted-average discount rate — operating leases ​ 9.1 % ​ Maturities of operating lease liabilities were as follows: ​ ​ ​ ​ ​ ​ Fiscal year ​ ​ ended Maturity of Lease Liabilities ​ September 30, ​ Operating Leases 2023 (excluding the nine-month period ended June 30, 2023) ​ $ 146,584 2024 ​ 586,334 2025 ​ 586,334 2026 ​ 195,445 2027 ​ — Thereafter ​ — Total lease payments ​ 1,514,697 Less: interest ​ (159,189) Present value of lease liabilities ​ $ 1,355,508 ​ Employment Agreement The employment agreement with Dr. James Hayward, the Company’s President and 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, 2023. Under the employment agreement, the CEO is eligible for an annual special aggregate cash incentive bonus of up to $800,000 each fiscal year, $300,000 of which is payable if and when annual revenue reaches $8 million for such fiscal year, plus an additional $100,000 payable for each additional $2 million of annual revenue in excess of $8 million for such fiscal year. Pursuant to the contract, the CEO’s annual salary is $400,000 . The Board of Directors, acting in its discretion, may grant annual bonuses to the CEO. The CEO will be entitled to certain benefits and perquisites and will be eligible to participate in retirement, welfare and incentive plans available to the Company’s other employees. The employment agreement with the CEO also provides that if he is terminated before the end of the initial or a renewal term by the Company without cause or if the CEO terminates his employment for good reason, then, in addition to previously earned and unpaid salary, bonus and benefits, and subject to the delivery of a general release and continuing compliance with restrictive covenants, the CEO will be entitled to receive a pro rata ​ NOTE F — COMMITMENTS AND CONTINGENCIES, continued Employment Agreement , continued 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. In accordance with the terms of his employment agreement, for the nine-month period ended June 30, 2023, the CEO earned a $500,000 bonus as the Company’s year to date revenue was greater than $12 million. The bonus has not yet been paid and is included in accounts payable and accrued liabilities in the condensed 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 INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Jun. 30, 2023
SEGMENT INFORMATION
SEGMENT INFORMATION	NOTE G – SEGMENT INFORMATION As detailed in Note B 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 CODM. Information regarding operations by segment for the three-month period ended June 30, 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services and Kits Security Products Consolidated Revenues: ​ ​ ​ ​ Product revenues ​ $ 230,544 ​ $ — ​ $ 86,406 ​ $ 316,950 Service revenues ​ 174,962 ​ — ​ 250,732 ​ 425,694 Clinical laboratory service revenues ​ — ​ 2,188,817 ​ — ​ 2,188,817 Less intersegment revenues ​ — ​ (14,120) ​ — ​ (14,120) Total revenues ​ ​ 405,506 ​ ​ 2,174,697 ​ ​ 337,138 ​ ​ 2,917,341 Gross profit ​ ​ 290,541 ​ ​ 829,798 ​ ​ 148,979 ​ ​ 1,269,318 (Loss) income from segment operations (a) ​ ​ (717,126) ​ ​ 14,742 ​ ​ (998,966) ​ ​ (1,701,350) ​ ​ NOTE G – SEGMENT INFORMATION, continued Information regarding operations by segment for the three-month period ended June 30, 2022 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services Security Products Consolidated Revenues: ​ ​ ​ ​ Product revenues ​ $ — ​ $ 79,512 ​ $ 140,253 ​ $ 219,765 Service revenues ​ 109,395 ​ — ​ 73,401 ​ 182,796 Clinical laboratory service revenues ​ — ​ 3,986,770 ​ — ​ 3,986,770 Less intersegment revenues ​ — ​ (92,960) ​ — ​ (92,960) Total revenues ​ $ 109,395 ​ $ 3,973,322 ​ $ 213,654 ​ $ 4,296,371 Gross profit ​ $ 109,395 ​ $ 1,274,502 ​ $ (344,639) ​ $ 1,039,258 (Loss) income from segment operations (a) ​ $ (854,644) ​ $ 425,706 ​ $ (1,560,123) ​ $ (1,989,061) ​ Information regarding operations by segment for the nine-month period ended June 30, 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services and Kits Security Products Consolidated Revenues: ​ ​ ​ ​ Product revenues ​ $ 560,000 ​ $ — ​ $ 570,800 ​ $ 1,130,800 Service revenues ​ 434,287 ​ — ​ 392,526 ​ 826,813 Clinical laboratory service revenues ​ — ​ 10,726,214 ​ — ​ 10,726,214 Less intersegment revenues ​ — ​ (96,120) ​ — ​ (96,120) Total revenues ​ $ 994,287 ​ $ 10,630,094 ​ $ 963,326 ​ $ 12,587,707 Gross profit ​ $ 676,942 ​ $ 4,413,130 ​ $ 364,364 ​ $ 5,454,436 (Loss) income from segment operations (a) ​ $ (2,623,502) ​ $ 1,616,914 ​ $ (2,388,417) ​ $ (3,395,005) ​ Information regarding operations by segment for the nine-month period ended June 30, 2022 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services Security Products Consolidated Revenues: ​ ​ ​ ​ Product revenues ​ $ — ​ $ 602,356 ​ $ 852,071 ​ $ 1,454,427 Service revenues ​ 357,076 ​ — ​ 213,683 ​ 570,759 Clinical laboratory service revenues ​ — ​ 12,960,350 ​ — ​ 12,960,350 Less intersegment revenues ​ — ​ (376,176) ​ — ​ (376,176) Total revenues ​ $ 357,076 ​ $ 13,186,530 ​ $ 1,065,754 ​ $ 14,609,360 Gross profit ​ $ 357,076 ​ $ 4,430,361 ​ $ (150,556) ​ $ 4,636,881 (Loss) income from segment operations (a) ​ $ (2,828,629) ​ $ 1,175,106 ​ $ (3,749,155) ​ $ (5,402,678) ​ NOTE G – SEGMENT INFORMATION, continued Reconciliation of segment loss from operations to consolidated loss before provision for income taxes is as follows: ​ ​ ​ ​ ​ ​ ​ ​ Three-Month Period Ended: ​ June 30, ​ 2023 2022 Loss from operations of reportable segments ​ $ (1,701,350) ​ $ (1,989,061) General corporate expenses (b) ​ (1,157,759) ​ (867,583) Interest income ​ 26,783 ​ — Unrealized (loss) gain on change in fair value of warrants classified as a liability ​ (278,400) ​ 1,758,200 Other expense, net ​ ​ (3,469) ​ ​ (26,352) Consolidated loss before provision for income taxes ​ $ (3,114,195) ​ $ (1,124,796) ​ ​ ​ ​ ​ ​ ​ ​ Nine-Month Period Ended: ​ June 30, ​ 2023 2022 Loss from operations of reportable segments ​ $ (3,395,005) ​ $ (5,402,678) General corporate expenses (b) ​ (3,387,464) ​ (4,314,779) Interest income ​ 34,108 ​ 5,813 Unrealized gain on change in fair value of warrants classified as a liability ​ 334,700 ​ 2,540,700 Transaction costs allocated to warrant liabilities ​ ​ — ​ ​ (391,335) Other income (expense), net ​ 6,396 ​ (43,226) Consolidated loss before provision for income taxes ​ $ (6,407,265) ​ $ (7,605,505) ​ (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.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Jun. 30, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE H – 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 warrants classified as a liability 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 B. The following table presents the fair value of the Company’s financial instruments as of June 30, 2023 and summarizes the significant unobservable inputs in fair value measurement of Level 3 financial assets and liabilities as of June 30, 2023. The Company did not have any assets or liabilities categorized as Level 1 or 2 as of June 30, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value at ​ Valuation ​ Unobservable ​ Weighted ​ June 30, 2023 Technique Input Average Liabilities: ​ ​ ​ Common Warrants ​ $ 1,629,000 ​ Monte Carlo simulation Annualized volatility ​ 160.00 % Series A Warrants ​ $ 3,153,000 ​ Monte Carlo simulation ​ Annualized volatility ​ 160.00 % Series B Warrants ​ $ 22,700 ​ Monte Carlo simulation ​ Annualized volatility ​ 130.00 % ​ NOTE H – FAIR VALUE OF FINANCIAL INSTRUMENTS, continued The change in fair value of the Warrants classified as a liability for the three-month period ended June 30, 2023 is summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Warrants Series A Warrants Series B Warrants Totals Fair value at April 1, 2023 ​ $ 1,429,000 ​ $ 2,768,000 ​ $ 329,300 ​ $ 4,526,300 Change in fair value ​ 200,000 ​ ​ 385,000 ​ (306,600) ​ ​ 278,400 Fair Value at June 30, 2023 ​ $ 1,629,000 ​ ​ 3,153,000 ​ ​ 22,700 ​ $ 4,804,700 ​ The change in fair value of the Warrants classified as a liability for the nine-month period ended June 30, 2023 is summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Warrants Series A Warrants Series B Warrants Totals Fair value at October 1, 2022 ​ $ 1,477,000 ​ $ 2,883,000 ​ $ 779,400 ​ $ 5,139,400 Change in fair value ​ ​ 152,000 ​ ​ 270,000 ​ (756,700) ​ ​ (334,700) Fair Value at June 30, 2023 ​ $ 1,629,000 ​ ​ 3,153,000 ​ ​ 22,700 ​ $ 4,804,700 ​

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Jun. 30, 2023
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE I – SUBSEQUENT EVENTS On July 12, 2023 (the “Closing Date”), the Company, through its wholly-owned subsidiary, Spindle Acquisition Corp (the “Purchaser”), entered into a Share Purchase Agreement (the “Purchase Agreement”) with Spindle Biotech Inc., a corporation existing under the federal laws of Canada (“Spindle”). Spindle is an early-stage, private biotech company developing next-generation RNA manufacturing technology, including but not limited to proprietary engineered RNA polymerase enzymes (collectively the “Acquired Technology”) Pursuant to the terms of the Purchase Agreement, the Company acquired all of the outstanding stock of Spindle from the sellers listed on Schedule 1.1 of the Purchase Agreement with effect from the Closing Date. As a result, Spindle became a wholly-owned subsidiary of the Purchaser, and the financials of Spindle will be consolidated with those of the Company. As consideration for the transactions the Company agreed to pay or issue to the Sellers, as applicable, on a pro rata basis: (i) a cash purchase price of $625,000, as adjusted for debt of Spindle as of the Closing Date and expenses related to the transaction, which was paid to the Sellers on the Closing Date; (ii) 750,000 restricted shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), which shares were delivered to the Sellers on the Closing Date ; (iii) a percentage of the revenues expected from the Company’s sale or exploitation of products including or derived from a heterologous fusion protein comprised of a DNA binding domain and an RNA polymerase enzyme developed by Spindle (the “Spindle RNAP”), payable to the Sellers in accordance with the terms of the Purchase Agreement for a period of ten The Company has incorporated the Acquired Technology into its Therapeutic DNA Production Services business segment and launched a new service marketed as the Linea TM

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES (Policies)	9 Months Ended
	Jun. 30, 2023
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Interim Financial Statements	Interim Financial Statements The accompanying condensed consolidated financial statements as of June 30, 2023, and for the three and nine-month periods ended June 30, 2023 and 2022 are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and are presented in accordance with the requirements of Regulation S-X of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine-month periods ended June 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2023. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the fiscal year ended September 30, 2022 and footnotes thereto included in the Annual Report on Form 10-K of the Company filed with the SEC on December 14, 2022, as amended. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year’s presentation. The condensed consolidated balance sheet as of September 30, 2022 contained herein has been derived from the audited consolidated financial statements as of September 30, 2022 but does not include all disclosures required by GAAP.
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, APDN (B.V.I.) Inc., Applied DNA Sciences Europe Limited, Applied DNA Sciences India Private Limited, ADCL, and Spindle Acquisition Corp. (formed June 2023), and its majority-owned subsidiary, LineaRx, Inc. (“LRx”). Significant inter-company transactions and balances have been eliminated in consolidation.
Going Concern And Management's Plan	Going Concern and Management’s Plan The Company has recurring net losses, which have resulted in an accumulated deficit of $298,854,883 as of June 30, 2023. The Company incurred a net loss of $6,407,265 and generated negative operating cash flow of $3,537,911 for the nine-month period ended June 30, 2023. These factors raise substantial doubt about the Company’s ability to continue as a going concern for one year from the issuance of the financial statements. The ability of the Company to continue as a going concern is dependent on the Company’s ability to further implement its business plan, raise capital, and generate revenues. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
Use of Estimates	Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The most 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. ​ NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Revenue Recognition Product Revenues 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. ​ NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Revenue Recognition Disaggregation of Revenue The following table presents revenues disaggregated by our business operations and timing of revenue recognition: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Month Period Ended: ​ ​ June 30, ​ June 30, ​ 2023 2022 Research and development services (over-time) ​ $ 135,622 ​ $ 152,732 Clinical laboratory testing services (point-in-time) ​ ​ 1,521,315 ​ ​ 2,506,976 Clinical laboratory testing services (over-time) ​ ​ 653,382 ​ ​ 1,386,834 Product and authentication services (point-in-time): ​ ​ ​ ​ Supply chain ​ 242,826 ​ 43,243 Large Scale DNA Production ​ ​ 271,884 ​ ​ — Asset marking ​ 92,312 ​ 127,075 MDx test kits and supplies ​ ​ — ​ ​ 79,511 Total ​ $ 2,917,341 ​ $ 4,296,371 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Month Period Ended: ​ ​ June 30, ​ June 30, ​ 2023 2022 Research and development services (over-time) ​ $ 349,587 ​ $ 472,539 Clinical laboratory testing services (point-in-time) ​ ​ 7,596,748 ​ ​ 8,712,565 Clinical laboratory testing services (over-time) ​ ​ 3,033,346 ​ ​ 3,871,609 Product and authentication services (point-in-time): ​ ​ ​ ​ ​ ​ Supply chain ​ 682,799 ​ 570,252 Large Scale DNA Production ​ 653,015 ​ — Asset marking ​ ​ 272,212 ​ ​ 380,039 MDx test kits and supplies ​ — ​ 602,356 Total ​ $ 12,587,707 ​ $ 14,609,360 ​ ​ NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Revenue Recognition Contract balances As of June 30, 2023, the Company has entered into contracts with customers for which revenue has not yet been recognized. Consideration received from a customer prior to revenue recognition is recorded to a contract liability and is recognized as revenue when the Company satisfies the related performance obligations under the terms of the contract. The Company’s contract liabilities, which are reported as deferred revenue on the condensed consolidated balance sheet, consist almost entirely of research and development contracts where consideration has been received and the development services have not yet been fully performed. The opening and closing balances of the Company’s contract balances are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 1, ​ June 30, ​ $ ​ Balance sheet classification 2022 2023 change Contract liabilities Deferred revenue ​ $ 563,557 ​ $ 275,885 ​ $ 287,672 ​ For the three and nine-month periods ended June 30, 2023, the Company recognized $2,113 and $345,480 of revenue that was included in Contract liabilities as of October 1, 2022, respectively.
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.
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, restricted stock units and warrants. Securities that could potentially dilute basic net loss 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 anti-dilutive for the three and nine-month periods ended June 30, 2023 and 2022 are as follows: ​ ​ ​ ​ ​ ​ ​ 2023 2022 Warrants ​ 7,295,588 ​ 2,239,963 Restricted Stock Units ​ 282,640 ​ — Stock options ​ 2,198,971 ​ 1,063,143 Total ​ 9,777,199 ​ 3,303,106
Cash and Cash Equivalents and Restricted Cash	Cash and Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts shown in the statement of cash flows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ June 30, ​ 2023 2022 Cash and cash equivalents ​ $ 10,756,235 ​ $ 4,681,878 Restricted cash ​ 750,000 ​ — Total cash, cash equivalents and restricted cash ​ $ 11,506,235 ​ $ 4,681,878 ​ The Company’s restricted cash consists of cash that the Company is contractually obligated to maintain in accordance with the terms of its February 2023 standby letter of credit agreement related to its new operating lease. See Note F for further details.
Concentrations	Concentrations Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents, restricted cash 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 June 30, 2023, the Company had cash and cash equivalents of approximately $8.5 million in excess of the FDIC insurance limit. The Company’s revenues earned from sale of products and services for the three and nine-month periods ended June 30, 2023 included an aggregate of 71% and 81%, respectively from two customers within the MDx Testing Services segment. 53% and 69% of the revenues earned for the three and nine-month periods ended June 30, 2023, respectively were derived from the COVID-19 testing contract with CUNY that terminated during June 2023. One customer from within the MDx Testing Services segment accounted for 64% and 55%, respectively, of the Company’s revenues earned from sale of products and services for the three and nine-month periods ended June 30, 2022. Two customers accounted for 86% of the Company’s accounts receivable at June 30, 2023 and two customers accounted for 89% of the Company’s accounts receivable at 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 Chief Executive Officer (“CEO”), Chief Operating Officer (“COO”), Chief Financial Officer (“CFO”) and Chief Legal Officer (“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 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 expenses 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. 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 June 30, 2023, there were transfers between Levels 1 2 3
Recent Accounting Standards	Recent Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments” (“ASU-2016-13”), which changes the methodology for measuring credit losses on financial instruments and certain other instruments, including trade receivables and contract assets. The new standard replaces the current incurred loss model for measurement of credit losses on financial assets with a forward-looking expected loss model based on historical experience, current conditions, and reasonable and supportable forecasts. The new standard is effective for fiscal years beginning after December 15, 2022. The adoption of ASU 2016-13 is not expected to have a significant impact on the Company’s condensed consolidated financial statements. 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 condensed consolidated financial statements.

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES (Tables)	9 Months Ended
	Jun. 30, 2023
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Schedule of revenues disaggregated by business operations and timing of revenue recognition	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Month Period Ended: ​ ​ June 30, ​ June 30, ​ 2023 2022 Research and development services (over-time) ​ $ 135,622 ​ $ 152,732 Clinical laboratory testing services (point-in-time) ​ ​ 1,521,315 ​ ​ 2,506,976 Clinical laboratory testing services (over-time) ​ ​ 653,382 ​ ​ 1,386,834 Product and authentication services (point-in-time): ​ ​ ​ ​ Supply chain ​ 242,826 ​ 43,243 Large Scale DNA Production ​ ​ 271,884 ​ ​ — Asset marking ​ 92,312 ​ 127,075 MDx test kits and supplies ​ ​ — ​ ​ 79,511 Total ​ $ 2,917,341 ​ $ 4,296,371 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Month Period Ended: ​ ​ June 30, ​ June 30, ​ 2023 2022 Research and development services (over-time) ​ $ 349,587 ​ $ 472,539 Clinical laboratory testing services (point-in-time) ​ ​ 7,596,748 ​ ​ 8,712,565 Clinical laboratory testing services (over-time) ​ ​ 3,033,346 ​ ​ 3,871,609 Product and authentication services (point-in-time): ​ ​ ​ ​ ​ ​ Supply chain ​ 682,799 ​ 570,252 Large Scale DNA Production ​ 653,015 ​ — Asset marking ​ ​ 272,212 ​ ​ 380,039 MDx test kits and supplies ​ — ​ 602,356 Total ​ $ 12,587,707 ​ $ 14,609,360
Schedule of opening and closing contract balances	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 1, ​ June 30, ​ $ ​ Balance sheet classification 2022 2023 change Contract liabilities Deferred revenue ​ $ 563,557 ​ $ 275,885 ​ $ 287,672
Schedule of anti-dilutive securities not included computation of net loss per share	Securities that could potentially dilute basic net loss 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 anti-dilutive for the three and nine-month periods ended June 30, 2023 and 2022 are as follows: ​ ​ ​ ​ ​ ​ ​ 2023 2022 Warrants ​ 7,295,588 ​ 2,239,963 Restricted Stock Units ​ 282,640 ​ — Stock options ​ 2,198,971 ​ 1,063,143 Total ​ 9,777,199 ​ 3,303,106
Schedule of reconciliation of cash, cash equivalents and restricted cash to amounts shown in statement of cash flows	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ June 30, ​ 2023 2022 Cash and cash equivalents ​ $ 10,756,235 ​ $ 4,681,878 Restricted cash ​ 750,000 ​ — Total cash, cash equivalents and restricted cash ​ $ 11,506,235 ​ $ 4,681,878

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Jun. 30, 2023
INVENTORIES
Schedule of inventories	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ 2023 2022 ​ ​ (unaudited) ​ ​ ​ Raw materials ​ $ 212,965 ​ $ 471,947 Work-in-progress ​ ​ 26,425 ​ ​ 55,817 Finished goods ​ 37,032 ​ 74,480 Total ​ $ 276,422 ​ $ 602,244

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	9 Months Ended
	Jun. 30, 2023
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Schedule of accounts payable and accrued liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ 2023 2022 ​ ​ (unaudited) ​ ​ ​ Accounts payable ​ $ 1,051,723 ​ $ 1,744,105 Accrued salaries payable ​ 999,952 ​ 1,458,661 Other accrued expenses ​ 76,233 ​ 418,985 Total ​ $ 2,127,908 ​ $ 3,621,751

WARRANTS, STOCK OPTIONS AND R_2

WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS (Tables)	9 Months Ended
	Jun. 30, 2023
WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS
Schedule of transactions involving warrants	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ ​ ​ Exercise ​ ​ Number of ​ Price Per ​ Shares Share Balance at October 1, 2022 ​ 7,313,963 ​ $ 3.68 Granted ​ — ​ — Exercised ​ — ​ — Cancelled or expired ​ (18,375) ​ 17.60 Balance at June 30, 2023 ​ 7,295,588 ​ $ 3.65

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Jun. 30, 2023
COMMITMENTS AND CONTINGENCIES
Schedule of components of lease expense	​ ​ ​ ​ ​ ​ ​ ​ ​ Three-month Nine-month ​ ​ period ended ​ period ended Lease Cost ​ June 30, 2023 ​ June 30, 2023 Operating lease cost ​ $ 244,306 ​ $ 342,028 Short-term lease cost ​ 43,750 ​ 260,725 Total lease cost ​ $ 288,056 ​ $ 602,753
Schedule of other information	​ ​ ​ ​ ​ ​ Other Information ​ ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ Operating cash flows from operating leases ​ $ 244,306 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ 1,545,916 ​ Weighted-average remaining lease term — operating leases ​ 2.6 years ​ Weighted-average discount rate — operating leases ​ 9.1 %
Schedule of maturities of operating lease liabilities	​ ​ ​ ​ ​ ​ Fiscal year ​ ​ ended Maturity of Lease Liabilities ​ September 30, ​ Operating Leases 2023 (excluding the nine-month period ended June 30, 2023) ​ $ 146,584 2024 ​ 586,334 2025 ​ 586,334 2026 ​ 195,445 2027 ​ — Thereafter ​ — Total lease payments ​ 1,514,697 Less: interest ​ (159,189) Present value of lease liabilities ​ $ 1,355,508

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Jun. 30, 2023
SEGMENT INFORMATION
Schedule of information regarding operations by segment	Information regarding operations by segment for the three-month period ended June 30, 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services and Kits Security Products Consolidated Revenues: ​ ​ ​ ​ Product revenues ​ $ 230,544 ​ $ — ​ $ 86,406 ​ $ 316,950 Service revenues ​ 174,962 ​ — ​ 250,732 ​ 425,694 Clinical laboratory service revenues ​ — ​ 2,188,817 ​ — ​ 2,188,817 Less intersegment revenues ​ — ​ (14,120) ​ — ​ (14,120) Total revenues ​ ​ 405,506 ​ ​ 2,174,697 ​ ​ 337,138 ​ ​ 2,917,341 Gross profit ​ ​ 290,541 ​ ​ 829,798 ​ ​ 148,979 ​ ​ 1,269,318 (Loss) income from segment operations (a) ​ ​ (717,126) ​ ​ 14,742 ​ ​ (998,966) ​ ​ (1,701,350) Information regarding operations by segment for the three-month period ended June 30, 2022 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services Security Products Consolidated Revenues: ​ ​ ​ ​ Product revenues ​ $ — ​ $ 79,512 ​ $ 140,253 ​ $ 219,765 Service revenues ​ 109,395 ​ — ​ 73,401 ​ 182,796 Clinical laboratory service revenues ​ — ​ 3,986,770 ​ — ​ 3,986,770 Less intersegment revenues ​ — ​ (92,960) ​ — ​ (92,960) Total revenues ​ $ 109,395 ​ $ 3,973,322 ​ $ 213,654 ​ $ 4,296,371 Gross profit ​ $ 109,395 ​ $ 1,274,502 ​ $ (344,639) ​ $ 1,039,258 (Loss) income from segment operations (a) ​ $ (854,644) ​ $ 425,706 ​ $ (1,560,123) ​ $ (1,989,061) Information regarding operations by segment for the nine-month period ended June 30, 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services and Kits Security Products Consolidated Revenues: ​ ​ ​ ​ Product revenues ​ $ 560,000 ​ $ — ​ $ 570,800 ​ $ 1,130,800 Service revenues ​ 434,287 ​ — ​ 392,526 ​ 826,813 Clinical laboratory service revenues ​ — ​ 10,726,214 ​ — ​ 10,726,214 Less intersegment revenues ​ — ​ (96,120) ​ — ​ (96,120) Total revenues ​ $ 994,287 ​ $ 10,630,094 ​ $ 963,326 ​ $ 12,587,707 Gross profit ​ $ 676,942 ​ $ 4,413,130 ​ $ 364,364 ​ $ 5,454,436 (Loss) income from segment operations (a) ​ $ (2,623,502) ​ $ 1,616,914 ​ $ (2,388,417) ​ $ (3,395,005) Information regarding operations by segment for the nine-month period ended June 30, 2022 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services Security Products Consolidated Revenues: ​ ​ ​ ​ Product revenues ​ $ — ​ $ 602,356 ​ $ 852,071 ​ $ 1,454,427 Service revenues ​ 357,076 ​ — ​ 213,683 ​ 570,759 Clinical laboratory service revenues ​ — ​ 12,960,350 ​ — ​ 12,960,350 Less intersegment revenues ​ — ​ (376,176) ​ — ​ (376,176) Total revenues ​ $ 357,076 ​ $ 13,186,530 ​ $ 1,065,754 ​ $ 14,609,360 Gross profit ​ $ 357,076 ​ $ 4,430,361 ​ $ (150,556) ​ $ 4,636,881 (Loss) income from segment operations (a) ​ $ (2,828,629) ​ $ 1,175,106 ​ $ (3,749,155) ​ $ (5,402,678)
Schedule of reconciliation of segment loss from operations to consolidated loss before provision for income taxes	​ ​ ​ ​ ​ ​ ​ ​ Three-Month Period Ended: ​ June 30, ​ 2023 2022 Loss from operations of reportable segments ​ $ (1,701,350) ​ $ (1,989,061) General corporate expenses (b) ​ (1,157,759) ​ (867,583) Interest income ​ 26,783 ​ — Unrealized (loss) gain on change in fair value of warrants classified as a liability ​ (278,400) ​ 1,758,200 Other expense, net ​ ​ (3,469) ​ ​ (26,352) Consolidated loss before provision for income taxes ​ $ (3,114,195) ​ $ (1,124,796) ​ ​ ​ ​ ​ ​ ​ ​ Nine-Month Period Ended: ​ June 30, ​ 2023 2022 Loss from operations of reportable segments ​ $ (3,395,005) ​ $ (5,402,678) General corporate expenses (b) ​ (3,387,464) ​ (4,314,779) Interest income ​ 34,108 ​ 5,813 Unrealized gain on change in fair value of warrants classified as a liability ​ 334,700 ​ 2,540,700 Transaction costs allocated to warrant liabilities ​ ​ — ​ ​ (391,335) Other income (expense), net ​ 6,396 ​ (43,226) Consolidated loss before provision for income taxes ​ $ (6,407,265) ​ $ (7,605,505) ​ (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.

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Jun. 30, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS
Summary of the significant unobservable inputs in fair value measurement of Level 3 financial assets and liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value at ​ Valuation ​ Unobservable ​ Weighted ​ June 30, 2023 Technique Input Average Liabilities: ​ ​ ​ Common Warrants ​ $ 1,629,000 ​ Monte Carlo simulation Annualized volatility ​ 160.00 % Series A Warrants ​ $ 3,153,000 ​ Monte Carlo simulation ​ Annualized volatility ​ 160.00 % Series B Warrants ​ $ 22,700 ​ Monte Carlo simulation ​ Annualized volatility ​ 130.00 %
Summary of change in fair value of warrants	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Warrants Series A Warrants Series B Warrants Totals Fair value at April 1, 2023 ​ $ 1,429,000 ​ $ 2,768,000 ​ $ 329,300 ​ $ 4,526,300 Change in fair value ​ 200,000 ​ ​ 385,000 ​ (306,600) ​ ​ 278,400 Fair Value at June 30, 2023 ​ $ 1,629,000 ​ ​ 3,153,000 ​ ​ 22,700 ​ $ 4,804,700 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Warrants Series A Warrants Series B Warrants Totals Fair value at October 1, 2022 ​ $ 1,477,000 ​ $ 2,883,000 ​ $ 779,400 ​ $ 5,139,400 Change in fair value ​ ​ 152,000 ​ ​ 270,000 ​ (756,700) ​ ​ (334,700) Fair Value at June 30, 2023 ​ $ 1,629,000 ​ ​ 3,153,000 ​ ​ 22,700 ​ $ 4,804,700

NATURE OF THE BUSINESS (Details

NATURE OF THE BUSINESS (Details)	9 Months Ended
	Jun. 30, 2023 item
NATURE OF THE BUSINESS
Number of primary markets that use the company's technologies	3

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 ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	$ 2,917,341	$ 4,296,371	$ 12,587,707	$ 14,609,360
Research and development services (over-time)
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	135,622	152,732	349,587	472,539
Clinical laboratory testing services (point-in-time)
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	1,521,315	2,506,976	7,596,748	8,712,565
Clinical laboratory testing services (over-time)
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	653,382	1,386,834	3,033,346	3,871,609
Supply chain
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	242,826	43,243	682,799	570,252
Large Scale DNA Production
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	271,884		653,015
Asset marking
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	$ 92,312	127,075	$ 272,212	380,039
MDx test kits and supplies
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total		$ 79,511		$ 602,356

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 ($)	3 Months Ended	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Oct. 01, 2022
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Change in contract liabilities		$ 287,672
Revenue recognized in contract liabilities	$ 2,113	345,480
Contract liabilities
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Deferred revenue	$ 275,885	$ 275,885	$ 563,557

BASIS OF PRESENTATION AND SUM_6

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Potential stock issuances under various options, and warrants (Details) - shares	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Antidilutive securities excluded from the computation of diluted net loss per share	9,777,199	3,303,106	9,777,199	3,303,106
Warrants
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Antidilutive securities excluded from the computation of diluted net loss per share	7,295,588	2,239,963	7,295,588	2,239,963
Stock options
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Antidilutive securities excluded from the computation of diluted net loss per share	2,198,971	1,063,143	2,198,971	1,063,143
Restricted Stock Units
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Antidilutive securities excluded from the computation of diluted net loss per share	282,640		282,640

BASIS OF PRESENTATION AND SUM_7

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Cash and Cash Equivalents and Restricted Cash (Details) (Imported) - USD ($)	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2021
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Cash and cash equivalents	$ 10,756,235	$ 15,215,285	$ 4,681,878
Restricted cash	750,000
Total cash, cash equivalents and restricted cash	$ 11,506,235	$ 15,215,285	$ 4,681,878	$ 6,554,948

BASIS OF PRESENTATION AND SUM_8

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Additional Information (Details)	3 Months Ended						9 Months Ended		12 Months Ended
	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2023 USD ($) customer segment	Jun. 30, 2022 USD ($) customer	Sep. 30, 2022 USD ($) customer
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Accumulated deficit	$ 298,854,883						$ 298,854,883		$ 292,500,088
Net loss	3,114,195	$ (551,176)	$ 3,844,246	$ 1,124,796	$ 1,759,797	$ 4,720,911	6,407,265	$ 7,605,505
Operating cash flow							3,537,911
Excess of FDIC insurance limit	8,500,000						$ 8,500,000
Number of reportable segments | segment							3
Transfers from Level 2 to Level 1, Assets	0						$ 0
Transfers from Level 1 to Level 2, Assets	0						0
Transfers from Level 2 to Level 1, Liabilities	0						0
Transfers from Level 1 to Level 2, Liabilities	$ 0						0
Transfers Into Level 3, Liabilities							0
Transfers out of Level 3, Liabilities							$ 0
Customer Concentration Risk | Total Revenue
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Number of customers | customer							2	1
Customer Concentration Risk | Total Revenue | One customer
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Concentration risk percentage	71%			64%			71%
Customer Concentration Risk | Total Revenue | Two customer
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Concentration risk percentage	81%						81%	55%
Customer Concentration Risk | Accounts Receivable
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Number of customers | customer							2		2
Customer Concentration Risk | Accounts Receivable | Two customer
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Concentration risk percentage							86%		89%
Customer Concentration Risk | COVID-19 testing contract | One customer
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Concentration risk percentage							53%
Customer Concentration Risk | COVID-19 testing contract | Two customer
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Concentration risk percentage							69%

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Jun. 30, 2023	Sep. 30, 2022
INVENTORIES
Raw materials	$ 212,965	$ 471,947
Work-in-progress	26,425	55,817
Finished goods	37,032	74,480
Total	$ 276,422	$ 602,244

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($)	Jun. 30, 2023	Sep. 30, 2022
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable	$ 1,051,723	$ 1,744,105
Accrued salaries payable	999,952	1,458,661
Other accrued expenses	76,233	418,985
Total	$ 2,127,908	$ 3,621,751

WARRANTS, STOCK OPTIONS AND R_3

WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS - Transactions involving warrants (Details)	9 Months Ended
	Jun. 30, 2023 $ / shares shares
Number of Shares
Balance at October 1, 2022 | shares	7,313,963
Cancelled or expired | shares	(18,375)
Balance at March 31, 2023 | shares	7,295,588
Weighted Average Exercise Price Per Share
Balance at October 1, 2022 | $ / shares	$ 3.68
Cancelled or expired | $ / shares	17.60
Balance at March 31, 2023 | $ / shares	$ 3.65

WARRANTS, STOCK OPTIONS AND R_4

WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS - Options (Details) - Options	9 Months Ended
	Jun. 30, 2023 $ / shares shares
WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS
Offering price (in dollars per share)	$ 1.27
exercise price	$ 1.27
Expected term	5 years 8 months 26 days
Fair value of options, dividend yield	0%
Fair value of options, volatility rate	157%
Fair value of options, risk free rate	3.64%
Weighted average grant date fair value per share for options granted	$ 1.20
Officers of the Company
WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS
Number of shares granted | shares	308,333
Term of option	10 years
Officers of the Company | Vest on first anniversary of grant date
WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS
Vesting percentage	25%
Non-employee board of director
WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS
Number of shares granted | shares	694,670
Term of option	10 years
Non-employee board of director | Vest on first anniversary of grant date
WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS
Vesting period	1 year

WARRANTS, STOCK OPTIONS AND R_5

WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS - Restricted Stock Units (Details)	9 Months Ended
	Jun. 30, 2023 shares
Restricted Stock Units | Vest on first anniversary of grant date
WARRANTS, STOCK OPTIONS AND RESTRICTED STOCK UNITS
Shares granted	282,640

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Operating Leases (Details)				3 Months Ended	9 Months Ended
	Feb. 01, 2023 ft²	Nov. 01, 2017 USD ($) ft²	Jun. 15, 2013 ft²	Jun. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)
COMMITMENTS AND CONTINGENCIES
Area of property under operating lease | ft²			30,000
Initial term expired period	3 years
Area of laboratory space | ft²	2,500
Lease for satellite testing | ft²		1,108
Initial lease term		3 years
Base rent during initial lease term per annum		$ 6,500
Total lease rental expenses				$ 174,399	$ 489,096
Leased office space for corporate headquarters
COMMITMENTS AND CONTINGENCIES
Monthly payments of lease				48,861	48,861
Leased office space for Laboratory
COMMITMENTS AND CONTINGENCIES
Monthly payments of lease				8,750	8,750
Initial lease term	1 year
Letter of credit
COMMITMENTS AND CONTINGENCIES
Letter of credit amount				$ 750,000	$ 750,000

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Components of lease expense (Details) - USD ($)	3 Months Ended	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Lease Cost
Operating lease cost	$ 244,306	$ 342,028
Short-term lease cost	43,750	260,725
Total lease cost	$ 288,056	$ 602,753

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES - Other Information (Details)	9 Months Ended
	Jun. 30, 2023 USD ($)
COMMITMENTS AND CONTINGENCIES
Operating cash flows from operating leases	$ 244,306
Leased assets obtained in exchange for new operating lease liabilities	$ 1,545,916
Weighted-average remaining lease term - operating leases	2 years 7 months 6 days
Weighted-average discount rate - operating leases	9.10%

COMMITMENTS AND CONTINGENCIES_4

COMMITMENTS AND CONTINGENCIES - Maturities of operating lease liabilities (Details)	Jun. 30, 2023 USD ($)
Maturity of Lease Liabilities
2023 (excluding the nine-month period ended June 30, 2023)	$ 146,584
2024	586,334
2025	586,334
2026	195,445
Total lease payments	1,514,697
Less: interest	(159,189)
Present value of lease liabilities	$ 1,355,508

COMMITMENTS AND CONTINGENCIES_5

COMMITMENTS AND CONTINGENCIES - Employment Agreement (Details) - Employment Agreement - CEO - USD ($)				9 Months Ended	12 Months Ended
	Jun. 30, 2023	Oct. 29, 2021	Jul. 28, 2017	Jun. 30, 2023	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	$ 400,000
Compensation description			The employment agreement with the CEO also provides that if he is terminated before the end of the initial or a renewal term by the Company without cause or if the CEO terminates his employment for good reason, then, in addition to previously earned and unpaid salary, bonus and benefits, and subject to the delivery of a general release and continuing compliance with restrictive covenants, the CEO will be entitled to receive a pro rata portion of the greater of either (X) the annual bonus he would have received if employment had continued through the end of the year of termination or (Y) the prior year’s bonus; salary continuation payments for two years following termination equal to the greater of (i) three times base salary or (ii) two times base salary plus bonus; Company-paid COBRA continuation coverage for 18 months post-termination; continuing life insurance benefits (if any) for two years; and extended exercisability of outstanding vested options (for three years from termination date or, if earlier, the expiration of the fixed option term). If termination of employment as described above occurs within six months before or two years after a change in control of the Company, then, in addition to the above payments and benefits, all of the CEO’s outstanding options and other equity incentive awards will become fully vested and the CEO will receive a lump sum payment of the amounts that would otherwise be paid as salary continuation. In general, a change in control will include a 30% or more change in ownership of the Company.
Approved bonus				$ 500,000
Revenue bonus recorded to long term accrued liabilities	$ 12,000,000			$ 12,000,000

SEGMENT INFORMATION - Informati

SEGMENT INFORMATION - Information regarding operations by segment (Details)	3 Months Ended		9 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($)
SEGMENT INFORMATION
Number of reportable segments | segment			3
Total revenues	$ 2,917,341	$ 4,296,371	$ 12,587,707	$ 14,609,360
Gross profit	1,269,318	1,039,258	5,454,436	4,636,881
(Loss) income from segment operations	(2,859,109)	(2,856,644)	(6,782,469)	(9,717,457)
Product revenues
SEGMENT INFORMATION
Total revenues	316,950	219,765	1,130,800	1,454,427
Service revenues
SEGMENT INFORMATION
Total revenues	425,694	182,796	826,813	570,759
Clinical laboratory service revenues
SEGMENT INFORMATION
Total revenues	2,174,697	3,893,810	10,630,094	12,584,174
Therapeutic DNA Production
SEGMENT INFORMATION
Total revenues	405,506	109,395	994,287	357,076
Gross profit	290,541	109,395	676,942	357,076
MDx Testing Services
SEGMENT INFORMATION
Total revenues	2,174,697	3,973,322	10,630,094	13,186,530
Gross profit	829,798	1,274,502	4,413,130	4,430,361
MDx Testing Services | Clinical laboratory service revenues
SEGMENT INFORMATION
Total revenues	2,188,817
DNA Tagging and Security Products
SEGMENT INFORMATION
Total revenues	337,138	213,654	963,326	1,065,754
Gross profit	148,979	(344,639)	364,364	(150,556)
Operating segment
SEGMENT INFORMATION
(Loss) income from segment operations	(1,701,350)	(1,989,061)	(3,395,005)	(5,402,678)
Operating segment | Product revenues
SEGMENT INFORMATION
Total revenues	316,950	219,765	1,130,800	1,454,427
Operating segment | Service revenues
SEGMENT INFORMATION
Total revenues	425,694	182,796	826,813	570,759
Operating segment | Therapeutic DNA Production
SEGMENT INFORMATION
(Loss) income from segment operations	(717,126)	(854,644)	(2,623,502)	(2,828,629)
Operating segment | Therapeutic DNA Production | Product revenues
SEGMENT INFORMATION
Total revenues	230,544		560,000
Operating segment | Therapeutic DNA Production | Service revenues
SEGMENT INFORMATION
Total revenues	174,962	109,395	434,287	357,076
Operating segment | MDx Testing Services
SEGMENT INFORMATION
(Loss) income from segment operations	14,742	425,706	1,616,914	1,175,106
Operating segment | MDx Testing Services | Product revenues
SEGMENT INFORMATION
Total revenues		79,512		602,356
Operating segment | MDx Testing Services | Clinical laboratory service revenues
SEGMENT INFORMATION
Total revenues	2,188,817	3,986,770	10,726,214	12,960,350
Operating segment | DNA Tagging and Security Products
SEGMENT INFORMATION
(Loss) income from segment operations	(998,966)	(1,560,123)	(2,388,417)	(3,749,155)
Operating segment | DNA Tagging and Security Products | Product revenues
SEGMENT INFORMATION
Total revenues	86,406	140,253	570,800	852,071
Operating segment | DNA Tagging and Security Products | Service revenues
SEGMENT INFORMATION
Total revenues	250,732	73,401	392,526	213,683
Less intersegment revenues | MDx Testing Services
SEGMENT INFORMATION
Total revenues	$ (14,120)	$ (92,960)	$ (96,120)	$ (376,176)

SEGMENT INFORMATION -Reconcilia

SEGMENT INFORMATION -Reconciliation of segment loss from operation to corporate loss (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Reconciliation of segment loss from operations to corporate loss
Loss from operations of reportable segments	$ (2,859,109)	$ (2,856,644)	$ (6,782,469)	$ (9,717,457)
Selling, general and administrative	3,292,304	3,032,877	9,440,734	11,341,176
Interest income	26,783		34,108	5,813
Unrealized (loss) gain on change in fair value of warrants classified as a liability	(278,400)	1,758,200	334,700	2,540,700
Transaction costs allocated to warrant liabilities				(391,335)
Other income (expense), net	(3,469)	(26,352)	6,396	(43,226)
Consolidated loss before provision for income taxes	(3,114,195)	(1,124,796)	(6,407,265)	(7,605,505)
Operating segment
Reconciliation of segment loss from operations to corporate loss
Loss from operations of reportable segments	(1,701,350)	(1,989,061)	(3,395,005)	(5,402,678)
Segment reconciling items
Reconciliation of segment loss from operations to corporate loss
Selling, general and administrative	$ 1,157,759	$ 867,583	$ 3,387,464	$ 4,314,779

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	Jun. 30, 2023 USD ($)
Common Warrants
FAIR VALUE OF FINANCIAL INSTRUMENTS
Financial liabilities fair value disclosure	$ 1,629,000
Common Warrants | Weighted Average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Warrants and rights outstanding, measurement input	160
Series A Warrants
FAIR VALUE OF FINANCIAL INSTRUMENTS
Financial liabilities fair value disclosure	$ 3,153,000
Series A Warrants | Weighted Average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Warrants and rights outstanding, measurement input	160
Series B Warrants
FAIR VALUE OF FINANCIAL INSTRUMENTS
Financial liabilities fair value disclosure	$ 22,700
Series B Warrants | Weighted Average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Warrants and rights outstanding, measurement input	130

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS - Change in fair value of warrants (Details) - USD ($)	3 Months Ended	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value at beginning of period	$ 4,526,300	$ 5,139,400
Change in fair value	278,400	(334,700)
Fair Value at ending of period	4,804,700	4,804,700
Common Warrants
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value at beginning of period	1,429,000	1,477,000
Change in fair value	200,000	152,000
Fair Value at ending of period	1,629,000	1,629,000
Series A Warrants
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value at beginning of period	2,768,000	2,883,000
Change in fair value	385,000	270,000
Fair Value at ending of period	3,153,000	3,153,000
Series B Warrants
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value at beginning of period	329,300	779,400
Change in fair value	(306,600)	(756,700)
Fair Value at ending of period	$ 22,700	$ 22,700

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)	Jul. 12, 2023	Jun. 30, 2023	Sep. 30, 2022
SUBSEQUENT EVENTS
Common stock, par value (in dollars per share)		$ 0.001	$ 0.001
Subsequent event | Share Purchase Agreement with Spindle
SUBSEQUENT EVENTS
Cash purchase price	$ 625,000
Threshold period for amount payable to sellers commencing on the closing date	10 years
Number of equal tranches for issuable of shares	3
Amount of gross sales milestone per tranche	$ 5,000,000
Subsequent event | Share Purchase Agreement with Spindle | Restricted shares
SUBSEQUENT EVENTS
Number of shares issued	750,000
Common stock, par value (in dollars per share)	$ 0.001
Maximum number of additional shares issuable	1,000,000
Number of shares issuable upon the issuance of patent	250,000
Number of shares issuable upon the achievement of sales milestone	750,000