Applied DNA Sciences (APDN) 10-Q 10 May 24 2024 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2024	May 08, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
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		984,728
Entity Central Index Key	0000744452
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2024	Sep. 30, 2023
Current assets:
Cash and cash equivalents	$ 3,149,640	$ 7,151,800
Accounts receivable, net of allowance for credit losses of $75,000 at March 31, 2024 and September 30, 2023, respectively	408,853	255,502
Inventories	335,943	330,027
Prepaid expenses and other current assets	470,284	389,241
Total current assets	4,364,720	8,126,570
Property and equipment, net	367,821	838,270
Other assets:
Restricted cash	750,000	750,000
Intangible assets	2,698,975	2,698,975
Operating right of use asset	994,111	1,237,762
Total assets	9,175,627	13,651,577
Current liabilities:
Accounts payable and accrued liabilities	2,050,035	2,270,388
Operating lease liability, current	521,719	498,598
Deferred revenue	51,285	76,435
Total current liabilities	2,623,039	2,845,421
Long term accrued liabilities	31,467	31,467
Deferred revenue, long term	194,000	194,000
Operating lease liability, long term	472,391	739,162
Deferred tax liability, net	684,115	684,115
Warrants classified as a liability	5,346,000	4,285,000
Total liabilities	9,351,012	8,779,165
Commitments and contingencies (Note G)
Applied DNA Sciences, Inc. stockholders' (deficit) equity:
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively
Common stock, par value $0.001 per share; 200,000,000 shares authorized as of March 31, 2024 and September 30, 2023, 863,068 and 682,926 shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively	864	683
Additional paid in capital	308,206,796	307,397,623
Accumulated deficit	(308,255,808)	(302,447,147)
Applied DNA Sciences, Inc. stockholders' (deficit) equity	(48,148)	4,951,159
Noncontrolling interest	(127,237)	(78,747)
Total (deficit) equity	(175,385)	4,872,412
Total liabilities and (deficit) equity	9,175,627	13,651,577
Series A Preferred stock
Applied DNA Sciences, Inc. stockholders' (deficit) equity:
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively
Series B Preferred stock
Applied DNA Sciences, Inc. stockholders' (deficit) equity:
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Mar. 31, 2024	Sep. 30, 2023
Allowance on accounts receivable	$ 75,000	$ 75,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	863,068	863,068
Common stock, shares outstanding	682,926	682,926
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		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Revenues
Total revenues	$ 929,631	$ 4,407,614	$ 1,820,795	$ 9,670,366
Total cost of revenues	633,980	2,600,179	1,294,047	5,485,248
Gross profit	295,651	1,807,435	526,748	4,185,118
Operating expenses:
Selling, general and administrative	3,000,208	3,522,715	6,084,557	6,148,072
Research and development	913,194	988,744	1,849,009	1,960,048
Total operating expenses	3,913,402	4,511,459	7,933,566	8,108,120
LOSS FROM OPERATIONS	(3,617,751)	(2,704,024)	(7,406,818)	(3,923,002)
Interest income	15,352	3,639	48,676	7,325
Unrealized gain on change in fair value of warrants classified as a liability	1,765,000	3,250,900	4,404,000	613,100
Unrealized (loss) on change in fair value of warrants classified as a liability - warrant modification	(394,000)		(394,000)
Loss on issuance of warrants	(1,633,767)		(1,633,767)
Transaction cost allocated to warrant liabilities	(633,198)		(633,198)
Other income (expense), net	4,581	661	(8,957)	9,507
(Loss) income before provision for income taxes	(4,493,783)	551,176	(5,624,064)	(3,293,070)
NET (LOSS) INCOME	(4,493,783)	551,176	(5,624,064)	(3,293,070)
Less: Net loss attributable to noncontrolling interest	23,309	37,167	48,490	38,041
NET (LOSS) INCOME attributable to Applied DNA Sciences, Inc.	(4,470,474)	588,343	(5,575,574)	(3,255,029)
Deemed dividend related to warrant modifications	(155,330)		(233,087)
NET (LOSS) INCOME attributable to common stockholders	$ (4,625,804)	$ 588,343	$ (5,808,661)	$ (3,255,029)
Net (loss) income per share attributable to common stockholders - basic (in dollars per share)	$ (5.31)	$ 0.91	$ (7.47)	$ (5.04)
Net (loss) income per share attributable to common stockholders - diluted (in dollars per share)	$ (5.31)	$ 0.91	$ (7.47)	$ (5.04)
Weighted average shares outstanding - basic (in shares)	871,319	645,426	777,495	645,426
Weighted average shares outstanding - diluted (in shares)	871,319	645,426	777,495	645,426
Product revenues
Revenues
Total revenues	$ 393,125	$ 297,454	$ 700,442	$ 813,850
Total cost of revenues	340,301	369,563	622,846	734,941
Service revenues
Revenues
Total revenues	205,486	169,058	452,633	401,119
Clinical laboratory service revenues
Revenues
Total revenues	331,020	3,941,102	667,720	8,455,397
Total cost of revenues	$ 293,679	$ 2,230,616	$ 671,201	$ 4,750,307

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Common Shares Offering	Common Shares	Additional Paid in Capital	Accumulated Deficit	Noncontrolling Interest	Offering	Total
Beginning Balance at Sep. 30, 2022		$ 645	$ 305,411,272	$ (292,500,088)	$ (2,890)		$ 12,908,939
Beginning Balance (in shares) at Sep. 30, 2022		645,426
Increase (Decrease) in Stockholders' Equity
Stock based compensation expense			93,748				93,748
Net income (loss)				(3,843,372)	(874)		(3,844,246)
Ending Balance at Dec. 31, 2022		$ 645	305,505,020	(296,343,460)	(3,764)		9,158,441
Ending Balance (in shares) at Dec. 31, 2022		645,426
Beginning Balance at Sep. 30, 2022		$ 645	305,411,272	(292,500,088)	(2,890)		12,908,939
Beginning Balance (in shares) at Sep. 30, 2022		645,426
Increase (Decrease) in Stockholders' Equity
Net income (loss)							(3,293,070)
Ending Balance at Mar. 31, 2023		$ 645	305,763,624	(295,755,117)	(40,931)		9,968,221
Ending Balance (in shares) at Mar. 31, 2023		645,426
Beginning Balance at Dec. 31, 2022		$ 645	305,505,020	(296,343,460)	(3,764)		9,158,441
Beginning Balance (in shares) at Dec. 31, 2022		645,426
Increase (Decrease) in Stockholders' Equity
Stock based compensation expense			258,604				258,604
Net income (loss)				588,343	(37,167)		551,176
Ending Balance at Mar. 31, 2023		$ 645	305,763,624	(295,755,117)	(40,931)		9,968,221
Ending Balance (in shares) at Mar. 31, 2023		645,426
Beginning Balance at Sep. 30, 2023		$ 683	307,397,623	(302,447,147)	(78,747)		$ 4,872,412
Beginning Balance (in shares) at Sep. 30, 2023		682,926					682,926
Increase (Decrease) in Stockholders' Equity
Stock based compensation expense			340,705				$ 340,705
Exercise of options cashlessly		$ 1	(1)
Exercise of options cashlessly (in shares)		105
Common stock issued		$ (4)	(45,562)				(45,566)
Common stock issued (In shares)		4,397
Deemed dividend - warrant repricing			77,757	(77,757)
Net income (loss)				(1,105,100)	(25,181)		(1,130,281)
Ending Balance at Dec. 31, 2023		$ 688	307,861,646	(303,630,004)	(103,928)		4,128,402
Ending Balance (in shares) at Dec. 31, 2023		687,428
Beginning Balance at Sep. 30, 2023		$ 683	307,397,623	(302,447,147)	(78,747)		$ 4,872,412
Beginning Balance (in shares) at Sep. 30, 2023		682,926					682,926
Increase (Decrease) in Stockholders' Equity
Common stock issued (In shares)							4,501
Deemed dividend - warrant repricing						$ 155,330
Net income (loss)							$ (5,624,064)
Ending Balance at Mar. 31, 2024		$ 864	308,206,796	(308,255,808)	(127,237)		$ (175,385)
Ending Balance (in shares) at Mar. 31, 2024		863,068					682,926
Beginning Balance at Dec. 31, 2023		$ 688	307,861,646	(303,630,004)	(103,928)		$ 4,128,402
Beginning Balance (in shares) at Dec. 31, 2023		687,428
Increase (Decrease) in Stockholders' Equity
Stock based compensation expense			171,004				171,004
Common stock issued	$ 161	$ 1	18,830			$ 161	18,831
Common stock issued (In shares)	161,403	105
Deemed dividend - warrant repricing			155,330	(155,330)
Share issued upon restricted stock vesting (in shares)		14,132
Share issued upon restricted stock vesting		$ 14	(14)
Net income (loss)				(4,470,474)	(23,309)		(4,493,783)
Ending Balance at Mar. 31, 2024		$ 864	$ 308,206,796	$ (308,255,808)	$ (127,237)		$ (175,385)
Ending Balance (in shares) at Mar. 31, 2024		863,068					682,926

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net loss	$ (5,624,064)	$ (3,293,070)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	485,277	683,422
Gain on sale of property and equipment		(6,083)
Unrealized gain on change in fair value of warrants classified as a liability	(4,404,000)	(613,100)
Unrealized loss on change in fair value of warrants classified as a liability-warrant modification	394,000
Transaction costs allocated to warrant liabilities	633,198
Loss on issuance of warrants	1,633,767
Stock-based compensation	511,709	352,352
Change in provision for bad debts		(290,022)
Change in operating assets and liabilities:
Accounts receivable	(153,350)	1,389,855
Inventories	(5,916)	236,159
Prepaid expenses, other current assets and deposits	(81,043)	398,523
Accounts payable and accrued liabilities	(332,100)	(746,495)
Deferred revenue	(25,150)	(280,259)
Net cash used in operating activities	(6,967,672)	(2,168,718)
Cash flows from investing activities:
Proceeds from sale of property and equipment		45,000
Purchase of property and equipment	(14,828)	(54,339)
Net cash used in investing activities	(14,828)	(9,339)
Cash flows from financing activities:
Net proceeds from issuance of common stock	2,980,340
Net cash provided by financing activities	2,980,340
Net decrease in cash, cash equivalents and restricted cash	(4,002,160)	(2,178,057)
Cash, cash equivalents and restricted cash at beginning of period	7,901,800	15,215,285
Cash, cash equivalents and restricted cash at end of period	3,899,640	13,037,228
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:
Offering transaction costs included in accounts payable	111,747
Deemed dividend warrant modifications	$ 233,087
Leased assets obtained in exchange for new operating lease liabilities		1,545,916
Property and equipment acquired and included in accounts payable		$ 20,321

NATURE OF THE BUSINESS

NATURE OF THE BUSINESS	6 Months Ended
	Mar. 31, 2024
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”). Using the polymerase chain reaction (“PCR”) to enable the production and detection of DNA and RNA, the Company currently operates in three primary business markets: (i) the enzymatic manufacture of synthetic DNA for use in the production of nucleic acid - based therapeutics (including biologics and drugs) and, through the Company’s recent acquisition of Spindle Biotech, Inc. (“Spindle”), the development and sale of a proprietary RNA polymerase (“RNAP”) for use in the production of messenger RNA (“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”). On April 24, 2024, the Company filed a Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware that effected a one one

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES	6 Months Ended
	Mar. 31, 2024
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 March 31, 2024, and for the three and six-month periods ended March 31, 2024, and 2023 are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and are presented in accordance with the requirements of Regulation S-X of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six-month periods ended March 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2024. 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, 2023 and footnotes thereto included in the Annual Report on Form 10-K of the Company filed with the SEC on December 7, 2023, as amended. The condensed consolidated balance sheet as of September 30, 2023 contained herein has been derived from the audited consolidated financial statements as of September 30, 2023 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, Applied DNA Clinical Labs, LLC (“ADCL”), Spindle and its majority-owned subsidiary, LineaRx, Inc. Significant inter-company transactions and balances have been eliminated in consolidation. Going Concern and Management’s Plan The Company has recurring net losses. The Company incurred a net loss of $5,624,064 and generated negative operating cash flow of $6,967,672 for the six-month period ended March 31, 2024. At March 31, 2024, the Company had cash and cash equivalents of $3,149,640. These factors raise substantial doubt about the Company’s ability to continue as a going concern for one year from the date of issuance of these 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 intangible assets and property and equipment, fair value calculations for warrants, contingencies, and management’s anticipated liquidity. Management reviews its estimates on a regular basis and the effects of any material revisions are reflected in the consolidated financial statements in the period they are deemed necessary. Accordingly, actual results could differ from those estimates. Revenue Recognition The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codifications (“ASC”), Revenue Recognition (“ASC 606” or “Topic 606”). The Company measures revenue at the amounts that reflect the consideration to which it is expected to be entitled in exchange for transferring control of goods and services to customers. The Company recognizes revenue either at the point in time or over the period of time that performance obligations to customers are satisfied. The Company’s contracts with customers may include multiple performance obligations (e.g. taggants, maintenance, authentication services, research and development services, etc.). For such arrangements, the Company allocates revenues to each performance obligation based on their relative standalone selling price. Due to the short-term nature of the Company’s contracts with customers, it has elected to apply the practical expedients under Topic 606 to: (1) expense as incurred, incremental costs of obtaining a contract and (2) not adjust the consideration for the effects of a significant financing component for contracts with an original expected duration of one year or less. Product Revenues and Authentication Services The Company’s PCR-produced linear DNA product revenues are accounted for/recognized in accordance with contracts with customers. The Company recognizes revenue upon satisfying its promises to transfer goods or services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company transfers control of the goods to the customer, which in nearly all cases is when title to and risk of loss of the goods transfer to the customer. The timing of transfer of title and risk of loss is dictated by customary or explicitly stated contract terms. The Company invoices customers upon shipment, and its collection terms range, on average, from 30 to 60 days. Authentication Services The Company recognizes revenue for authentication services upon satisfying its promises to provide services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company services are complete, which in nearly all cases is when the authentication report is released to the customer. NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Revenue Recognition Clinical Laboratory Testing Services The Company records revenue for its clinical laboratory testing service contracts, which includes its COVID-19 testing services, upon satisfying its promise to provide services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time that Company services are complete, which in nearly all cases is when the testing results are released to the customer. For those customers with a fixed monthly fee, the revenue is recognized over-time as the services are provided. Research and Development Services The Company records revenue for its research and development contracts using the over-time revenue recognition model. Revenue is primarily measured using the cost-to-cost method, which the Company believes best depicts the transfer of control to the customer. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the identified performance obligation. Revenues are recorded proportionally as costs are incurred. For contracts where the total costs cannot be estimated, revenues are recognized for the actual costs incurred during a period until the remaining costs to complete a contract can be estimated. The Company has elected not to disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Disaggregation of Revenue The following table presents revenues disaggregated by our business operations and timing of revenue recognition: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Month Period Ended: ​ ​ March 31, ​ March 31, ​ 2024 2023 Research and development services (over-time) ​ $ 65,200 ​ $ 87,907 Clinical laboratory testing services (point-in-time) ​ ​ 6,440 ​ ​ 3,003,022 Clinical laboratory testing services (over-time) ​ ​ 324,580 ​ ​ 938,080 Product and authentication services (point-in-time): ​ ​ ​ ​ Supply chain ​ 275,259 ​ 27,636 Large Scale DNA Production ​ ​ 258,152 ​ ​ 253,626 Asset marking ​ — ​ 97,343 Total ​ $ 929,631 ​ $ 4,407,614 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Month Period Ended: ​ ​ March 31, ​ March 31, ​ 2024 2023 Research and development services (over-time) ​ $ 142,735 ​ $ 213,964 Clinical laboratory testing services (point-in-time) ​ ​ 18,560 ​ ​ 6,077,436 Clinical laboratory testing services (over-time) ​ ​ 649,160 ​ ​ 2,377,961 Product and authentication services (point-in-time): ​ ​ ​ ​ ​ ​ Supply chain ​ 742,746 ​ 439,973 Large Scale DNA Production ​ 258,152 ​ 381,131 Asset marking ​ ​ 9,442 ​ ​ 179,901 Total ​ $ 1,820,795 ​ $ 9,670,366 ​ ​ NOTE B — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Revenue Recognition Contract balances As of March 31, 2024, 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, ​ March 31, ​ $ ​ Balance sheet classification 2023 2024 change Contract liabilities Deferred revenue ​ $ 270,435 ​ $ 245,285 ​ $ 25,150 ​ For the three and six-month periods ended March 31, 2024, the Company recognized $0 and $40,035, respectively of revenue that was included in Contract liabilities as of October 1, 2023, respectively. ​ Cash, Cash Equivalents, and Restricted Cash For the purpose of the accompanying consolidated financial statements, all highly liquid investments with a maturity of three months or less from when purchased are considered to be cash equivalents. The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts shown in the statement of cash flows. ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, September 30, ​ ​ 2024 ​ 2023 Cash and cash equivalents ​ $ 3,149,640 ​ $ 7,151,800 Restricted cash ​ 750,000 ​ 750,000 Total cash, cash equivalents and restricted cash ​ $ 3,899,640 ​ $ 7,901,800 ​ 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 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 six-month periods ended March 31, 2024 and 2023 are as follows: ​ ​ ​ ​ ​ ​ ​ 2024 2023 Warrants ​ 825,066 ​ 364,779 Restricted Stock Units ​ — ​ 14,132 Stock options ​ 109,363 ​ 110,317 Total ​ 934,429 ​ 489,228 ​ ​ 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 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 March 31, 2024, the Company had cash and cash equivalents of approximately $2.8 million in excess of the FDIC insurance limit. The Company’s revenues earned from sale of products and services for the three and six-month periods ended March 31, 2024 included an aggregate of 24% and 25% from one customer, respectively within the MDx Testing Services segment and an aggregate of 28% and 14%, respectively from one customer within the Therapeutic DNA Production Services segment. The Company’s revenues earned from sale of products and services for the three and six-month periods ended March 31, 2023 included an aggregate of 85% and 84%, respectively, from two customers within the MDx Testing Services segment. One customer accounted for 44% of the Company’s accounts receivable at March 31, 2024 and three customers accounted for 60% of the Company’s accounts receivable at September 30, 2023. Warrant Liabilities The Company evaluates its issued warrants (the “Warrants) in accordance with ASC 480 “Distinguishing Liabilities from Equity” and ASC 815-40, “Derivatives and Hedging — Contracts in Entity’s Own Equity” and concluded that due to the terms of certain of its warrant agreements, the instruments do not qualify for equity treatment. As such, the Warrants were recorded as a liability on the condensed consolidated balance sheet and measured at fair value at inception and at each reporting date in accordance with ASC 820, “Fair Value Measurement”, with changes in fair value recognized in the condensed consolidated statement of operations in the period of change. 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 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 expense such as rent, and utilities were allocated based on an estimate by management of the percentage of employee time spent in each vertical. Segment assets are not reported to, or used by, the CODM to allocate resources to, or assess performance of, the segments and therefore, total segment assets have not been disclosed. ​ 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 — Unadjusted 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 March 31, 2024, there were transfers between Levels 1 2 3 Recent Accounting Standards In December 2023, the FASB issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ​ NOTE B – BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES, continued Recent Accounting Standards In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure.” The ASU updates reportable segment disclosure requirements, primarily through requiring enhanced disclosures about significant segment expenses and information used to assess segment performance. These disclosures are required quarterly. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024, with early adoption permitted. It is required to be adopted retrospectively for all prior periods presented in the financial statements The Company is currently evaluating the impact of adopting this ASU on its disclosures.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	6 Months Ended
	Mar. 31, 2024
INVENTORIES
INVENTORIES	NOTE C — INVENTORIES Inventories consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ September 30, ​ 2024 2023 ​ ​ (unaudited) ​ ​ ​ Raw materials ​ $ 167,252 ​ $ 212,079 Work-in-progress ​ ​ 15,006 ​ ​ 19,859 Finished goods ​ 153,685 ​ 98,089 Total ​ $ 335,943 ​ $ 330,027 ​

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	6 Months Ended
	Mar. 31, 2024
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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ September 30, ​ 2024 2023 ​ ​ (unaudited) ​ ​ ​ Accounts payable ​ $ 1,127,763 ​ $ 1,072,161 Accrued salaries payable ​ 807,100 ​ 1,138,235 Other accrued expenses ​ 115,172 ​ 59,992 Total ​ $ 2,050,035 ​ $ 2,270,388 ​

CAPITAL STOCK

CAPITAL STOCK	6 Months Ended
	Mar. 31, 2024
CAPITAL STOCK
CAPITAL STOCK	NOTE E – CAPITAL STOCK Reverse Stock Split On April 24, 2024, the Company filed a Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware that effected the Reverse Stock Split, as discussed further in Note J. ​ Registered Direct Offering On February 2, 2024, the Company closed on a registered direct public offering (the “Offering”) of 161,403 shares (“Shares”) of the Company’s common stock, par value $0.001 (“Common Stock”) and pre-funded warrants (“Pre-Funded Warrants”) to purchase up to 120,800 shares of Common Stock, and in a concurrent private placement, unregistered common warrants (“Private Common Warrants”) to purchase up to 564,407 shares of Common Stock. The Company received net proceeds from the Offering, after deducting placement agent fees and other estimated offering expenses payable by the Company, of approximately $2.8 million. The Pre-Funded Warrants have an exercise price of $0.0001 per share and are immediately exercisable and can be exercised at any time after their original issuance until such Pre-Funded Warrants are exercised in full. Each Share was sold at an offering price of $12.18 and each Pre-Funded Warrant was sold at an offering price of $12.18 (equal to the purchase price per Share minus the exercise price of the Pre-Funded Warrant). Pursuant to the Purchase Agreements, the Company also agreed to issue to the Purchasers, in a concurrent private placement, the Private Common Warrants. Each Private Common Warrant has an exercise price of $12.18 per share, and became exercisable on April 15, 2024 and will expire on April 15, 2029. Subseqent to the three-month period ended March 31, 2024, all of the 120,800 Pre-Funded Warrants were exercised. The Private Common Warrants and the shares of Common Stock issuable upon the exercise of the Private Common Warrants are not registered under the Securities Act. The Private Common Warrants and the shares of Common Stock issuable upon exercise thereof were issued or will be issued, respectively, in reliance on the exemptions from registration provided by Section 4(a)(2) under the Securities Act and Regulation D promulgated thereunder, for transactions not involving a public offering. Pursuant to the Purchase Agreements, within 45 calendar days from the date of the Purchase Agreements, the Company agreed to file a registration statement on Form S-3 (or other appropriate form if the Company is not then S-3 eligible) providing for the resale by the Purchasers of the Shares issuable upon exercise of the Private Common Warrants. The Company agreed to use commercially reasonable efforts to cause such registration statement to become effective within 90 days following the closing date of the Purchase Agreements and to keep such registration statement effective at all times until no Purchaser owns any Private Common Warrants or Shares issuable upon exercise thereof. The Company filed the registration statement for this transaction on March 12, 2024, and the registration statement was declared effective on March 20, 2024. The Private Common Warrants are recorded as a liability in the condensed consolidated balance sheet and were recorded at fair value and will be marked to market at each period end (see Note I). Additionally, the Company incurred $633,198 of transaction costs related to the Offering which is included in the condensed consolidated statement of operations for the three and six--month periods ended March 31, 2024. In connection with the Offering and the Purchase Agreements, the Company agreed to reduce the exercise price of warrants previously issued to the Purchasers with exercise prices ranging from $25.80 to $80.00 per warrant to $12.18 per warrant. The Company also agreed to extend the expiration dates for such warrants to August 2028. In addition, 2,904 outstanding common stock warrants held by other investors who did not participate in the Offering had their exercise price reduced to $12.18 per warrant share and had their warrant expiration dates extended to August 2028. The foregoing reductions of the exercise price and extension of expiration dates of such warrants were approved by shareholders on April 15, 2024. The incremental change in fair value as a result of the modification for the warrants that are recorded as a liability was $1,633,767 and is recorded as a unrealized loss on the change in fair value of warrants classified as a liability in the condensed consolidated statement of operations for the three and six-month periods ended March 31, 2024. The incremental change in fair value as a result of the modification for the warrants that are recorded to equity was $155,330 and is recorded as a deemed dividend in the condensed consolidated statement of operations for the three and six-month periods ended March 31, 2024. NOTE E – CAPITAL STOCK, continued ATM On November 7, 2023, the Company entered into an Equity Distribution Agreement (the “Agreement”) with Maxim Group LLC, as sales agent (the “Agent”), pursuant to which the Company may, from time to time, issue and sell shares of its common stock, par value $0.001 per share, in an aggregate offering price of up to $6,397,939 (the “Shares”) through the Agent. ​ The offer and sales of the Shares made pursuant to the Agreement, will be made under the Company’s effective “shelf” registration statement on Form S-3. Under the terms of the Agreement, the Agent may sell the Shares at market prices by any method that is deemed to be an “at the market offering” as defined in Rule 415 under the Securities Act of 1933, as amended. As of March 31, 2024, the Company has issued 4,501 shares of its common stock for net proceeds of approximately $64,397 under this Agreement. Effective January 30, 2024, the Company terminated the Agreement by providing notice of termination to the Agent in accordance with the terms of the Agreement. As a result of terminating the Agreement, the $217,000 of capitalized transaction costs were written off and are included in the condensed consolidated statement of operations for the three and six - month periods ended March 31, 2024. ​ As a result of the issuance of common stock under this Agreement, the exercise price of the 22,891 remaining warrants issued during November 2019 was reduced to $29.40 per share, the exercise price of 7,950 warrants issued during October 2020 was reduced to $30.20 per share and the exercise prices of 5,000 warrants issued during December 2020 was reduced to an exercise price of $26.20 per share for 2,500 warrants and an exercise price of $25.80 per share for the remaining 2,500 warrants. These exercise price adjustments are in accordance with the adjustment provisions contained in the respective warrant agreements. The incremental change in fair value of these warrants as a result of the triggering event was $77,757 and is recorded as a deemed dividend in the condensed consolidated statement of operations for the six-month period ended March 31, 2024.

WARRANTS

WARRANTS	6 Months Ended
	Mar. 31, 2024
WARRANTS
WARRANTS	NOTE F —WARRANTS 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ ​ ​ Exercise ​ ​ Number of ​ Price Per ​ Shares Share Balance at October 1, 2023 ​ 261,030 ​ $ 72.00 Granted ​ 876,708 ​ 12.00 Exercised ​ (150) ​ 112.00 Cancelled or expired ​ (191,721) ​ 57.00 Balance at March 31, 2024 ​ 945,867 ​ $ 18.20 ​

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Mar. 31, 2024
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE G — COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases office space under an operating lease in Stony Brook, New York for its corporate headquarters. The lease is for a 30,000 square foot building. The 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 six-month periods ended March 31, 2024 was $180,589 and $355,008 , respectively. 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. The Board of Directors, acting in its discretion, may grant annual bonuses to the CEO. The CEO will be entitled to certain benefits and perquisites and will be eligible to participate in retirement, welfare and incentive plans available to the Company’s other employees. NOTE G — COMMITMENTS AND CONTINGENCIES, continued Employment Agreement The employment agreement with the CEO also provides that if he is terminated before the end of the initial or a renewal term by the Company without cause or if the CEO terminates his employment for good reason, then, in addition to previously earned and unpaid salary, bonus and benefits, and subject to the delivery of a general release and continuing compliance with restrictive covenants, the CEO will be entitled to receive a pro rata ​ Upon termination due to death or disability, the CEO will generally be entitled to receive the same payments and benefits he would have received if his employment had been terminated by the Company without cause (as described in the preceding paragraph), other than salary continuation payments. 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. On January 4, 2024, in connection with certain cost management efforts, the Company entered into a letter agreement with the CEO to amend the CEO’s employment agreement with the Company and to provide for a temporary 45% reduction to the CEO’s annual base salary, from $450,000 to $250,000, for a period of three months, effective as of January 1, 2024 through March 31, 2024. On April 1, 2024, the CEO extended the voluntary salary reduction with all terms and conditions withstanding until May 15, 2024. The CEO also agreed to waive any right to resign for “good reason” under his employment agreement with the Company as a result of the foregoing salary reduction. While the compensation committee determined that the CEO was eligible to receive a discretionary bonus in the amount of $500,000 with respect to his performance for fiscal 2023, on January 19, 2024, the CEO elected not to receive any cash incentive or other bonus for fiscal 2023, in light of the Company’s cash position. 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	6 Months Ended
	Mar. 31, 2024
SEGMENT INFORMATION
SEGMENT INFORMATION	NOTE H – 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 March 31, 2024 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services and Kit Security Products Consolidated Revenues ​ ​ ​ ​ Product revenues ​ $ 258,152 ​ $ — ​ $ 134,973 ​ $ 393,125 Service revenues ​ 65,200 ​ — ​ 140,286 ​ 205,486 Clinical laboratory service revenues ​ — ​ 335,580 ​ — ​ 335,580 Less intersegment revenues ​ — ​ (4,560) ​ — ​ (4,560) Total revenues ​ $ 323,352 ​ $ 331,020 ​ $ 275,259 ​ $ 929,631 Gross profit ​ $ 190,588 ​ $ 18,515 ​ $ 86,548 ​ $ 295,651 (Loss) from segment operations (a) ​ $ (1,165,449) ​ $ (298,591) ​ $ (500,052) ​ $ (1,964,092) ​ Information regarding operations by segment for the three-month period ended March 31, 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services Security Products Consolidated Revenues: ​ ​ ​ ​ Product revenues ​ $ 203,951 ​ $ — ​ $ 93,503 ​ $ 297,454 Service revenues ​ 135,581 ​ — ​ 33,477 ​ 169,058 Clinical laboratory service revenues ​ — ​ 3,971,582 ​ — ​ 3,971,582 Less intersegment revenues ​ — ​ (30,480) ​ — ​ (30,480) Total revenues ​ $ 339,532 ​ $ 3,941,102 ​ $ 126,980 ​ $ 4,407,614 Gross profit ​ $ 215,477 ​ $ 1,650,113 ​ $ (58,155) ​ $ 1,807,435 (Loss) income from segment operations (a) ​ $ (1,054,123) ​ $ 492,288 ​ $ (914,736) ​ $ (1,476,571) ​ Information regarding operations by segment for the six-month period ended March 31, 2024 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services Security Products Consolidated Revenues: ​ ​ ​ ​ Product revenues ​ $ 258,152 ​ $ — ​ $ 442,290 ​ $ 700,442 Service revenues ​ 142,735 ​ — ​ 309,898 ​ 452,633 Clinical laboratory service revenues ​ — ​ 678,320 ​ — ​ 678,320 Less intersegment revenues ​ — ​ (10,600) ​ — ​ (10,600) Total revenues ​ $ 400,887 ​ $ 667,720 ​ $ 752,188 ​ $ 1,820,795 Gross profit ​ $ 268,123 ​ $ (44,443) ​ $ 303,068 ​ $ 526,748 (Loss) income from segment operations (a) ​ $ (2,424,495) ​ $ (795,103) ​ $ (1,284,355) ​ $ (4,503,953) ​ NOTE H – SEGMENT INFORMATION, continued Information regarding operations by segment for the six-month period ended March 31, 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services Security Products Consolidated Revenues: ​ ​ ​ ​ Product revenues ​ $ 331,457 ​ $ — ​ $ 482,393 ​ $ 813,850 Service revenues ​ 257,324 ​ — ​ 143,795 ​ 401,119 Clinical laboratory service revenues ​ — ​ 8,537,397 ​ — ​ 8,537,397 Less intersegment revenues ​ — ​ (82,000) ​ — ​ (82,000) Total revenues ​ $ 588,781 ​ $ 8,455,397 ​ $ 626,188 ​ $ 9,670,366 Gross profit ​ $ 386,401 ​ $ 3,583,332 ​ $ 215,385 ​ $ 4,185,118 (Loss) income from segment operations (a) ​ $ (1,906,376) ​ $ 1,602,172 ​ $ (1,389,451) ​ $ (1,693,655) ​ Reconciliation of loss from segment operations to Corporate (loss) income for the three-month periods ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ 2024 2023 Loss from operations of reportable segments ​ $ (1,964,092) ​ $ (1,476,571) General corporate expenses (b) ​ (1,653,659) ​ (1,227,453) Interest income ​ 15,352 ​ 3,639 Unrealized gain on change in fair value of warrants classified as a liability ​ ​ 1,765,000 ​ ​ 3,250,900 Unrealized loss on change in fair value of warrants classified as a liability - warrant modification ​ ​ (394,000) ​ ​ — Transaction costs allocated to registered direct offering ​ ​ (633,198) ​ ​ — Loss on issuance of warrants ​ (1,633,767) ​ — Other (expense) income, net ​ ​ 4,581 ​ ​ 661 Consolidated (loss) income before provision for income taxes ​ $ (4,493,783) ​ $ 551,176 ​ Reconciliation of loss from segment operations to Corporate loss for the six-month periods ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ 2024 2023 Loss from operations of reportable segments ​ $ (4,503,953) ​ $ (1,693,655) General corporate expenses (b) ​ (2,902,865) ​ (2,229,347) Interest income ​ 48,676 ​ 7,325 Unrealized gain on change in fair value of warrants classified as a liability ​ 4,404,000 ​ 613,100 Unrealized loss on change in fair value of warrants classified as a liability - warrant modification ​ ​ (394,000) ​ ​ — Transaction costs allocated to registered direct offering ​ ​ (633,198) ​ ​ — Loss on issuance of warrants ​ ​ (1,633,767) ​ ​ — Other (expense) income, net ​ (8,957) ​ 9,507 Consolidated loss before provision for income taxes ​ $ (5,624,064) ​ $ (3,293,070) ​ (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 consist of selling, general and administrative expenses that are not specifically identifiable to a segment.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Mar. 31, 2024
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE I – 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 (loss) 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 March 31, 2024 and summarizes the significant unobservable inputs in fair value measurement of Level 3 financial assets and liabilities as of March 31, 2024. The Company did not have any assets or liabilities categorized as Level 1 or 2 as of March 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value at ​ Valuation ​ Unobservable ​ Volatility ​ March 31, 2024 Technique Input Input Liabilities: ​ ​ ​ Common Warrants ​ $ 506,000 ​ Monte Carlo simulation Annualized volatility ​ 142.50 % Series A Warrants ​ $ 346,000 ​ Monte Carlo simulation ​ Annualized volatility ​ 130.00 % Series A Warrants - modified ​ $ 304,000 ​ Monte Carlo simulation ​ Annualized volatility ​ 142.50 % Private Common Warrants ​ $ 4,190,000 ​ Monte Carlo simulation ​ Annualized volatility ​ 160.00 % ​ The change in fair value of the Common Warrants, the Series A Warrants and the Private Common Warrants for the three-month period ended March 31, 2024 is summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Series A ​ Private ​ ​ ​ ​ ​ Common ​ Series A ​ Warrants- ​ Common ​ ​ ​ ​ ​ Warrants Warrants modified Warrants Totals Fair value at January 1, 2024 ​ $ 581,000 ​ $ 745,500 ​ ​ 319,500 ​ ​ — ​ $ 1,646,000 Fair value at February 2, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 5,071,000 ​ ​ 5,071,000 Change in fair value-warrant modification ​ ​ 230,000 ​ ​ — ​ ​ 164,000 ​ ​ — ​ ​ 394,000 Change in fair value ​ ​ (305,000) ​ ​ (399,500) ​ (179,500) ​ (881,000) ​ ​ (1,765,000) Fair Value at March 31, 2024 ​ $ 506,000 ​ $ 346,000 ​ $ 304,000 ​ $ 4,190,000 ​ $ 5,346,000 ​ The change in fair value of the Common Warrants, the Series A Warrants and the Private Common Warrants for the six-month period ended March 31, 2024 is summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Series A Private ​ ​ ​ Common ​ Series A ​ Warrants- ​ Common ​ ​ ​ ​ Warrants ​ Warrants ​ modified ​ Warrants ​ Totals Fair value at October 1, 2023 ​ $ 1,468,000 ​ $ 1,971,900 ​ 845,100 ​ — ​ $ 4,285,000 Fair value at February 2, 2024 ​ — ​ — ​ — ​ 5,071,000 ​ 5,071,000 Change in fair value-warrant modification ​ 230,000 ​ — ​ 164,000 ​ — ​ 394,000 Change in fair value ​ (1,192,000) ​ (1,625,900) ​ (705,100) ​ (881,000) ​ (4,404,000) Fair Value at March 31, 2024 ​ $ 506,000 ​ $ 346,000 ​ $ 304,000 ​ $ 4,190,000 ​ $ 5,346,000 ​

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Mar. 31, 2024
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE J – SUBSEQUENT EVENTS Special Meeting of Stockholders On April 15, 2024, the Company held a special meeting of stockholders (the “Special Meeting”) pursuant to which the Company’s stockholders approved the following: (i) in accordance with Nasdaq Listing Rule 5635(d), the issuance to certain holders of common stock purchase warrants in connection with a private placement; (ii) in accordance with Nasdaq Listing Rule 5635(d), the repricing of certain of our common stock purchase warrants; (iii) a grant of discretionary authority to the Board of Directors giving them the authority to amend the Company’s certificate of incorporation, as amended, to effect a reverse stock split of common stock, at a ratio in the range from one-for-five to one-for-fifty, with such specific ratio to be determined by the Company’s Board of Directors following the Special Meeting (the “Reverse Split Proposal”); and (iv) an amendment to the Company’s 2020 Equity Incentive Plan to increase the number of authorized shares of common stock reserved for issuance by 200,000 shares. Reverse Stock Split On April 15, 2024, the Company held the Special Meeting where its stockholders approved the Reverse Split Proposal. The Company’s Board of Directors believes that the Reverse Stock Split is the best option available to increase the Company’s stock price as required for continued listing on Nasdaq and determined on April 21, 2024 that the split ratio should be one-for-twenty shares. The Reverse Stock Split was effected as of 12:01 a.m. Eastern Time on Thursday, April 25, 2024 and combined each twenty shares of the Company’s outstanding common stock into one share of common stock, without any change in the par value per share. Moreover, the Reverse Stock Split correspondingly adjusted, a) the per share exercise price and the number of shares issuable upon the exercise of all outstanding options, and b) the number of shares underlying any of our outstanding warrants by adjusting the conversion ratio for each instrument and increasing the applicable exercise price or conversion price in accordance with the terms of each instrument and based on the reverse stock split ratio. No fractional shares were issued in connection with the Reverse Stock Split. Any fractional shares resulting from the Reverse Stock Split were rounded up to the nearest whole share. Nasdaq Notification On May 9, 2024, the Company received a written notification from Nasdaq’s Listing Qualifications Department notifying the Company that the closing bid price of its common stock had exceeded $1.00 per share for 10 consecutive trading days, and as a result, the Company had regained compliance with the Minimum Bid Price Requirement.

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES (Policies)	6 Months Ended
	Mar. 31, 2024
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Interim Financial Statements	Interim Financial Statements The accompanying condensed consolidated financial statements as of March 31, 2024, and for the three and six-month periods ended March 31, 2024, and 2023 are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and are presented in accordance with the requirements of Regulation S-X of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six-month periods ended March 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2024. 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, 2023 and footnotes thereto included in the Annual Report on Form 10-K of the Company filed with the SEC on December 7, 2023, as amended. The condensed consolidated balance sheet as of September 30, 2023 contained herein has been derived from the audited consolidated financial statements as of September 30, 2023 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, Applied DNA Clinical Labs, LLC (“ADCL”), Spindle and its majority-owned subsidiary, LineaRx, Inc. 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. The Company incurred a net loss of $5,624,064 and generated negative operating cash flow of $6,967,672 for the six-month period ended March 31, 2024. At March 31, 2024, the Company had cash and cash equivalents of $3,149,640. These factors raise substantial doubt about the Company’s ability to continue as a going concern for one year from the date of issuance of these 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 intangible assets and property and equipment, fair value calculations for warrants, contingencies, and management’s anticipated liquidity. Management reviews its estimates on a regular basis and the effects of any material revisions are reflected in the consolidated financial statements in the period they are deemed necessary. Accordingly, actual results could differ from those estimates.
Revenue Recognition	Revenue Recognition The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codifications (“ASC”), Revenue Recognition (“ASC 606” or “Topic 606”). The Company measures revenue at the amounts that reflect the consideration to which it is expected to be entitled in exchange for transferring control of goods and services to customers. The Company recognizes revenue either at the point in time or over the period of time that performance obligations to customers are satisfied. The Company’s contracts with customers may include multiple performance obligations (e.g. taggants, maintenance, authentication services, research and development services, etc.). For such arrangements, the Company allocates revenues to each performance obligation based on their relative standalone selling price. Due to the short-term nature of the Company’s contracts with customers, it has elected to apply the practical expedients under Topic 606 to: (1) expense as incurred, incremental costs of obtaining a contract and (2) not adjust the consideration for the effects of a significant financing component for contracts with an original expected duration of one year or less. Product Revenues and Authentication Services The Company’s PCR-produced linear DNA product revenues are accounted for/recognized in accordance with contracts with customers. The Company recognizes revenue upon satisfying its promises to transfer goods or services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company transfers control of the goods to the customer, which in nearly all cases is when title to and risk of loss of the goods transfer to the customer. The timing of transfer of title and risk of loss is dictated by customary or explicitly stated contract terms. The Company invoices customers upon shipment, and its collection terms range, on average, from 30 to 60 days. Authentication Services The Company recognizes revenue for authentication services upon satisfying its promises to provide services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company services are complete, which in nearly all cases is when the authentication report is released to the customer. Clinical Laboratory Testing Services The Company records revenue for its clinical laboratory testing service contracts, which includes its COVID-19 testing services, upon satisfying its promise to provide services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time that Company services are complete, which in nearly all cases is when the testing results are released to the customer. For those customers with a fixed monthly fee, the revenue is recognized over-time as the services are provided. Research and Development Services The Company records revenue for its research and development contracts using the over-time revenue recognition model. Revenue is primarily measured using the cost-to-cost method, which the Company believes best depicts the transfer of control to the customer. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the identified performance obligation. Revenues are recorded proportionally as costs are incurred. For contracts where the total costs cannot be estimated, revenues are recognized for the actual costs incurred during a period until the remaining costs to complete a contract can be estimated. The Company has elected not to disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Disaggregation of Revenue The following table presents revenues disaggregated by our business operations and timing of revenue recognition: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Month Period Ended: ​ ​ March 31, ​ March 31, ​ 2024 2023 Research and development services (over-time) ​ $ 65,200 ​ $ 87,907 Clinical laboratory testing services (point-in-time) ​ ​ 6,440 ​ ​ 3,003,022 Clinical laboratory testing services (over-time) ​ ​ 324,580 ​ ​ 938,080 Product and authentication services (point-in-time): ​ ​ ​ ​ Supply chain ​ 275,259 ​ 27,636 Large Scale DNA Production ​ ​ 258,152 ​ ​ 253,626 Asset marking ​ — ​ 97,343 Total ​ $ 929,631 ​ $ 4,407,614 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Month Period Ended: ​ ​ March 31, ​ March 31, ​ 2024 2023 Research and development services (over-time) ​ $ 142,735 ​ $ 213,964 Clinical laboratory testing services (point-in-time) ​ ​ 18,560 ​ ​ 6,077,436 Clinical laboratory testing services (over-time) ​ ​ 649,160 ​ ​ 2,377,961 Product and authentication services (point-in-time): ​ ​ ​ ​ ​ ​ Supply chain ​ 742,746 ​ 439,973 Large Scale DNA Production ​ 258,152 ​ 381,131 Asset marking ​ ​ 9,442 ​ ​ 179,901 Total ​ $ 1,820,795 ​ $ 9,670,366 Contract balances As of March 31, 2024, 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, ​ March 31, ​ $ ​ Balance sheet classification 2023 2024 change Contract liabilities Deferred revenue ​ $ 270,435 ​ $ 245,285 ​ $ 25,150 ​ For the three and six-month periods ended March 31, 2024, the Company recognized $0 and $40,035, respectively of revenue that was included in Contract liabilities as of October 1, 2023, respectively.
Cash and Cash Equivalents and Restricted Cash	Cash, Cash Equivalents, and Restricted Cash For the purpose of the accompanying consolidated financial statements, all highly liquid investments with a maturity of three months or less from when purchased are considered to be cash equivalents. The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts shown in the statement of cash flows. ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, September 30, ​ ​ 2024 ​ 2023 Cash and cash equivalents ​ $ 3,149,640 ​ $ 7,151,800 Restricted cash ​ 750,000 ​ 750,000 Total cash, cash equivalents and restricted cash ​ $ 3,899,640 ​ $ 7,901,800
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 six-month periods ended March 31, 2024 and 2023 are as follows: ​ ​ ​ ​ ​ ​ ​ 2024 2023 Warrants ​ 825,066 ​ 364,779 Restricted Stock Units ​ — ​ 14,132 Stock options ​ 109,363 ​ 110,317 Total ​ 934,429 ​ 489,228
Concentrations	Concentrations Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and cash equivalents with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. As of March 31, 2024, the Company had cash and cash equivalents of approximately $2.8 million in excess of the FDIC insurance limit. The Company’s revenues earned from sale of products and services for the three and six-month periods ended March 31, 2024 included an aggregate of 24% and 25% from one customer, respectively within the MDx Testing Services segment and an aggregate of 28% and 14%, respectively from one customer within the Therapeutic DNA Production Services segment. The Company’s revenues earned from sale of products and services for the three and six-month periods ended March 31, 2023 included an aggregate of 85% and 84%, respectively, from two customers within the MDx Testing Services segment. One customer accounted for 44% of the Company’s accounts receivable at March 31, 2024 and three customers accounted for 60% of the Company’s accounts receivable at September 30, 2023.
Warrant Liabilities	Warrant Liabilities The Company evaluates its issued warrants (the “Warrants) in accordance with ASC 480 “Distinguishing Liabilities from Equity” and ASC 815-40, “Derivatives and Hedging — Contracts in Entity’s Own Equity” and concluded that due to the terms of certain of its warrant agreements, the instruments do not qualify for equity treatment. As such, the Warrants were recorded as a liability on the condensed consolidated balance sheet and measured at fair value at inception and at each reporting date in accordance with ASC 820, “Fair Value Measurement”, with changes in fair value recognized in the condensed consolidated statement of operations in the period of change.
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 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 expense such as rent, and utilities were allocated based on an estimate by management of the percentage of employee time spent in each vertical. Segment assets are not reported to, or used by, the CODM to allocate resources to, or assess performance of, the segments and therefore, total segment assets have not been disclosed.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 — Unadjusted 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 March 31, 2024, there were transfers between Levels 1 2 3
Recent Accounting Standards	Recent Accounting Standards In December 2023, the FASB issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure.” The ASU updates reportable segment disclosure requirements, primarily through requiring enhanced disclosures about significant segment expenses and information used to assess segment performance. These disclosures are required quarterly. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024, with early adoption permitted. It is required to be adopted retrospectively for all prior periods presented in the financial statements The Company is currently evaluating the impact of adopting this ASU on its disclosures.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)	6 Months Ended
	Mar. 31, 2024
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Schedule of revenues disaggregated by business operations and timing of revenue recognition	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Month Period Ended: ​ ​ March 31, ​ March 31, ​ 2024 2023 Research and development services (over-time) ​ $ 65,200 ​ $ 87,907 Clinical laboratory testing services (point-in-time) ​ ​ 6,440 ​ ​ 3,003,022 Clinical laboratory testing services (over-time) ​ ​ 324,580 ​ ​ 938,080 Product and authentication services (point-in-time): ​ ​ ​ ​ Supply chain ​ 275,259 ​ 27,636 Large Scale DNA Production ​ ​ 258,152 ​ ​ 253,626 Asset marking ​ — ​ 97,343 Total ​ $ 929,631 ​ $ 4,407,614 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Month Period Ended: ​ ​ March 31, ​ March 31, ​ 2024 2023 Research and development services (over-time) ​ $ 142,735 ​ $ 213,964 Clinical laboratory testing services (point-in-time) ​ ​ 18,560 ​ ​ 6,077,436 Clinical laboratory testing services (over-time) ​ ​ 649,160 ​ ​ 2,377,961 Product and authentication services (point-in-time): ​ ​ ​ ​ ​ ​ Supply chain ​ 742,746 ​ 439,973 Large Scale DNA Production ​ 258,152 ​ 381,131 Asset marking ​ ​ 9,442 ​ ​ 179,901 Total ​ $ 1,820,795 ​ $ 9,670,366
Schedule of opening and closing contract balances	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 1, ​ March 31, ​ $ ​ Balance sheet classification 2023 2024 change Contract liabilities Deferred revenue ​ $ 270,435 ​ $ 245,285 ​ $ 25,150
Schedule of reconciliation of cash, cash equivalents and restricted cash to amounts shown in statement of cash flows	​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, September 30, ​ ​ 2024 ​ 2023 Cash and cash equivalents ​ $ 3,149,640 ​ $ 7,151,800 Restricted cash ​ 750,000 ​ 750,000 Total cash, cash equivalents and restricted cash ​ $ 3,899,640 ​ $ 7,901,800
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 six-month periods ended March 31, 2024 and 2023 are as follows: ​ ​ ​ ​ ​ ​ ​ 2024 2023 Warrants ​ 825,066 ​ 364,779 Restricted Stock Units ​ — ​ 14,132 Stock options ​ 109,363 ​ 110,317 Total ​ 934,429 ​ 489,228

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Mar. 31, 2024
INVENTORIES
Schedule of inventories	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ September 30, ​ 2024 2023 ​ ​ (unaudited) ​ ​ ​ Raw materials ​ $ 167,252 ​ $ 212,079 Work-in-progress ​ ​ 15,006 ​ ​ 19,859 Finished goods ​ 153,685 ​ 98,089 Total ​ $ 335,943 ​ $ 330,027 ​

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	6 Months Ended
	Mar. 31, 2024
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Schedule of accounts payable and accrued liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ September 30, ​ 2024 2023 ​ ​ (unaudited) ​ ​ ​ Accounts payable ​ $ 1,127,763 ​ $ 1,072,161 Accrued salaries payable ​ 807,100 ​ 1,138,235 Other accrued expenses ​ 115,172 ​ 59,992 Total ​ $ 2,050,035 ​ $ 2,270,388 ​

WARRANTS (Tables)

WARRANTS (Tables)	6 Months Ended
	Mar. 31, 2024
WARRANTS
Schedule of transactions involving warrants	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ ​ ​ Exercise ​ ​ Number of ​ Price Per ​ Shares Share Balance at October 1, 2023 ​ 261,030 ​ $ 72.00 Granted ​ 876,708 ​ 12.00 Exercised ​ (150) ​ 112.00 Cancelled or expired ​ (191,721) ​ 57.00 Balance at March 31, 2024 ​ 945,867 ​ $ 18.20 ​

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Mar. 31, 2024
SEGMENT INFORMATION
Schedule of information regarding operations by segment	Information regarding operations by segment for the three-month period ended March 31, 2024 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services and Kit Security Products Consolidated Revenues ​ ​ ​ ​ Product revenues ​ $ 258,152 ​ $ — ​ $ 134,973 ​ $ 393,125 Service revenues ​ 65,200 ​ — ​ 140,286 ​ 205,486 Clinical laboratory service revenues ​ — ​ 335,580 ​ — ​ 335,580 Less intersegment revenues ​ — ​ (4,560) ​ — ​ (4,560) Total revenues ​ $ 323,352 ​ $ 331,020 ​ $ 275,259 ​ $ 929,631 Gross profit ​ $ 190,588 ​ $ 18,515 ​ $ 86,548 ​ $ 295,651 (Loss) from segment operations (a) ​ $ (1,165,449) ​ $ (298,591) ​ $ (500,052) ​ $ (1,964,092) ​ Information regarding operations by segment for the three-month period ended March 31, 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services Security Products Consolidated Revenues: ​ ​ ​ ​ Product revenues ​ $ 203,951 ​ $ — ​ $ 93,503 ​ $ 297,454 Service revenues ​ 135,581 ​ — ​ 33,477 ​ 169,058 Clinical laboratory service revenues ​ — ​ 3,971,582 ​ — ​ 3,971,582 Less intersegment revenues ​ — ​ (30,480) ​ — ​ (30,480) Total revenues ​ $ 339,532 ​ $ 3,941,102 ​ $ 126,980 ​ $ 4,407,614 Gross profit ​ $ 215,477 ​ $ 1,650,113 ​ $ (58,155) ​ $ 1,807,435 (Loss) income from segment operations (a) ​ $ (1,054,123) ​ $ 492,288 ​ $ (914,736) ​ $ (1,476,571) ​ Information regarding operations by segment for the six-month period ended March 31, 2024 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services Security Products Consolidated Revenues: ​ ​ ​ ​ Product revenues ​ $ 258,152 ​ $ — ​ $ 442,290 ​ $ 700,442 Service revenues ​ 142,735 ​ — ​ 309,898 ​ 452,633 Clinical laboratory service revenues ​ — ​ 678,320 ​ — ​ 678,320 Less intersegment revenues ​ — ​ (10,600) ​ — ​ (10,600) Total revenues ​ $ 400,887 ​ $ 667,720 ​ $ 752,188 ​ $ 1,820,795 Gross profit ​ $ 268,123 ​ $ (44,443) ​ $ 303,068 ​ $ 526,748 (Loss) income from segment operations (a) ​ $ (2,424,495) ​ $ (795,103) ​ $ (1,284,355) ​ $ (4,503,953) Information regarding operations by segment for the six-month period ended March 31, 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Therapeutic DNA ​ MDx Testing ​ DNA Tagging and ​ ​ ​ Production Services Security Products Consolidated Revenues: ​ ​ ​ ​ Product revenues ​ $ 331,457 ​ $ — ​ $ 482,393 ​ $ 813,850 Service revenues ​ 257,324 ​ — ​ 143,795 ​ 401,119 Clinical laboratory service revenues ​ — ​ 8,537,397 ​ — ​ 8,537,397 Less intersegment revenues ​ — ​ (82,000) ​ — ​ (82,000) Total revenues ​ $ 588,781 ​ $ 8,455,397 ​ $ 626,188 ​ $ 9,670,366 Gross profit ​ $ 386,401 ​ $ 3,583,332 ​ $ 215,385 ​ $ 4,185,118 (Loss) income from segment operations (a) ​ $ (1,906,376) ​ $ 1,602,172 ​ $ (1,389,451) ​ $ (1,693,655) (a) Segment operating loss consists of net sales, less cost of sales, specifically identifiable research and development, and selling, general and administrative expenses.
Schedule of reconciliation of segment loss from operations to corporate (loss) income	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ 2024 2023 Loss from operations of reportable segments ​ $ (1,964,092) ​ $ (1,476,571) General corporate expenses (b) ​ (1,653,659) ​ (1,227,453) Interest income ​ 15,352 ​ 3,639 Unrealized gain on change in fair value of warrants classified as a liability ​ ​ 1,765,000 ​ ​ 3,250,900 Unrealized loss on change in fair value of warrants classified as a liability - warrant modification ​ ​ (394,000) ​ ​ — Transaction costs allocated to registered direct offering ​ ​ (633,198) ​ ​ — Loss on issuance of warrants ​ (1,633,767) ​ — Other (expense) income, net ​ ​ 4,581 ​ ​ 661 Consolidated (loss) income before provision for income taxes ​ $ (4,493,783) ​ $ 551,176 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ 2024 2023 Loss from operations of reportable segments ​ $ (4,503,953) ​ $ (1,693,655) General corporate expenses (b) ​ (2,902,865) ​ (2,229,347) Interest income ​ 48,676 ​ 7,325 Unrealized gain on change in fair value of warrants classified as a liability ​ 4,404,000 ​ 613,100 Unrealized loss on change in fair value of warrants classified as a liability - warrant modification ​ ​ (394,000) ​ ​ — Transaction costs allocated to registered direct offering ​ ​ (633,198) ​ ​ — Loss on issuance of warrants ​ ​ (1,633,767) ​ ​ — Other (expense) income, net ​ (8,957) ​ 9,507 Consolidated loss before provision for income taxes ​ $ (5,624,064) ​ $ (3,293,070) (b) General corporate expenses consist 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)	6 Months Ended
	Mar. 31, 2024
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 ​ Volatility ​ March 31, 2024 Technique Input Input Liabilities: ​ ​ ​ Common Warrants ​ $ 506,000 ​ Monte Carlo simulation Annualized volatility ​ 142.50 % Series A Warrants ​ $ 346,000 ​ Monte Carlo simulation ​ Annualized volatility ​ 130.00 % Series A Warrants - modified ​ $ 304,000 ​ Monte Carlo simulation ​ Annualized volatility ​ 142.50 % Private Common Warrants ​ $ 4,190,000 ​ Monte Carlo simulation ​ Annualized volatility ​ 160.00 %
Summary of change in fair value of warrants	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Series A ​ Private ​ ​ ​ ​ ​ Common ​ Series A ​ Warrants- ​ Common ​ ​ ​ ​ ​ Warrants Warrants modified Warrants Totals Fair value at January 1, 2024 ​ $ 581,000 ​ $ 745,500 ​ ​ 319,500 ​ ​ — ​ $ 1,646,000 Fair value at February 2, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 5,071,000 ​ ​ 5,071,000 Change in fair value-warrant modification ​ ​ 230,000 ​ ​ — ​ ​ 164,000 ​ ​ — ​ ​ 394,000 Change in fair value ​ ​ (305,000) ​ ​ (399,500) ​ (179,500) ​ (881,000) ​ ​ (1,765,000) Fair Value at March 31, 2024 ​ $ 506,000 ​ $ 346,000 ​ $ 304,000 ​ $ 4,190,000 ​ $ 5,346,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Series A Private ​ ​ ​ Common ​ Series A ​ Warrants- ​ Common ​ ​ ​ ​ Warrants ​ Warrants ​ modified ​ Warrants ​ Totals Fair value at October 1, 2023 ​ $ 1,468,000 ​ $ 1,971,900 ​ 845,100 ​ — ​ $ 4,285,000 Fair value at February 2, 2024 ​ — ​ — ​ — ​ 5,071,000 ​ 5,071,000 Change in fair value-warrant modification ​ 230,000 ​ — ​ 164,000 ​ — ​ 394,000 Change in fair value ​ (1,192,000) ​ (1,625,900) ​ (705,100) ​ (881,000) ​ (4,404,000) Fair Value at March 31, 2024 ​ $ 506,000 ​ $ 346,000 ​ $ 304,000 ​ $ 4,190,000 ​ $ 5,346,000 ​

NATURE OF THE BUSINESS (Details

NATURE OF THE BUSINESS (Details)				6 Months Ended
	Apr. 25, 2024	Apr. 24, 2024 $ / shares	Apr. 15, 2024	Mar. 31, 2024 item $ / shares	Nov. 07, 2023 $ / shares	Sep. 30, 2023 $ / shares
Subsequent Event [Line Items]
Number of primary markets that use the company's technologies | item				3
Common stock, par value (in dollars per share)				$ 0.001	$ 0.001	$ 0.001
Subsequent events
Subsequent Event [Line Items]
Reverse stock split of its common stock	0.05	0.05	1
Common stock, par value (in dollars per share)		$ 0.001

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		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	$ 929,631	$ 4,407,614	$ 1,820,795	$ 9,670,366
Research and development services (over-time)
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	65,200	87,907	142,735	213,964
Clinical laboratory testing services (point-in-time)
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	6,440	3,003,022	18,560	6,077,436
Clinical laboratory testing services (over-time)
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	324,580	938,080	649,160	2,377,961
Supply chain
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	275,259	27,636	742,746	439,973
Large Scale DNA Production
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total	$ 258,152	253,626	258,152	381,131
Asset marking
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Total		$ 97,343	$ 9,442	$ 179,901

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	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2024	Oct. 01, 2023
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Change in contract liabilities		$ 25,150
Revenue recognized in contract liabilities	$ 0	40,035
Contract liabilities
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Deferred revenue	$ 245,285	$ 245,285	$ 270,435

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		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Antidilutive securities excluded from the computation of diluted net loss per share	934,429	489,228	934,429	489,228
Warrants
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Antidilutive securities excluded from the computation of diluted net loss per share	825,066	364,779	825,066	364,779
Restricted Stock Units
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Antidilutive securities excluded from the computation of diluted net loss per share		14,132		14,132
Employee Stock Option
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Antidilutive securities excluded from the computation of diluted net loss per share	109,363	110,317	109,363	110,317

BASIS OF PRESENTATION AND SUM_7

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Additional Information (Details)	3 Months Ended				6 Months Ended		12 Months Ended
	Mar. 31, 2024 USD ($) customer	Dec. 31, 2023 USD ($)	Mar. 31, 2023 USD ($) customer	Dec. 31, 2022 USD ($)	Mar. 31, 2024 USD ($) customer segment	Mar. 31, 2023 USD ($) customer	Sep. 30, 2023 USD ($) customer
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Net loss	$ 4,493,783	$ 1,130,281	$ (551,176)	$ 3,844,246	$ 5,624,064	$ 3,293,070
Operating cash flow					6,967,672
Cash and cash equivalents	3,149,640				3,149,640		$ 7,151,800
Excess of FDIC insurance limit	2,800,000				$ 2,800,000
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 | Two customer | MDx Testing Services
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Number of customers | customer			2			2
Customer Concentration Risk | Total Revenue | DNA Tagging and Security Products
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Number of customers | customer	1				1
Customer Concentration Risk | Total Revenue | MDx Testing Services
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Number of customers | customer	1				1
Customer Concentration Risk | Total Revenue | One customer | DNA Tagging and Security Products
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Concentration risk percentage	28%				14%
Customer Concentration Risk | Total Revenue | One customer | MDx Testing Services
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Concentration risk percentage	24%				25%
Customer Concentration Risk | Total Revenue | Two customer | MDx Testing Services
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Concentration risk percentage			85%			84%
Customer Concentration Risk | Accounts Receivable
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Number of customers | customer					1		3
Customer Concentration Risk | Accounts Receivable | Two customer
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Concentration risk percentage					44%		60%

BASIS OF PRESENTATION AND SUM_8

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Cash and Cash Equivalents and Restricted Cash (Details) - USD ($)	Mar. 31, 2024	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2022
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES
Cash and cash equivalents	$ 3,149,640	$ 7,151,800
Restricted cash	750,000	750,000
Total cash, cash equivalents and restricted cash	$ 3,899,640	$ 7,901,800	$ 13,037,228	$ 15,215,285

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Mar. 31, 2024	Sep. 30, 2023
INVENTORIES
Raw materials	$ 167,252	$ 212,079
Work-in-progress	15,006	19,859
Finished goods	153,685	98,089
Total	$ 335,943	$ 330,027

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($)	Mar. 31, 2024	Sep. 30, 2023
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable	$ 1,127,763	$ 1,072,161
Accrued salaries payable	807,100	1,138,235
Other accrued expenses	115,172	59,992
Total	$ 2,050,035	$ 2,270,388

CAPITAL STOCK (Details)

CAPITAL STOCK (Details) - USD ($)				3 Months Ended	6 Months Ended
	Feb. 02, 2024	Jan. 31, 2024	Nov. 07, 2023	Mar. 31, 2024	Mar. 31, 2024	Apr. 24, 2024	Sep. 30, 2023
CAPITAL STOCK
Number of shares issued		5,635			4,501
Common stock, par value (in dollars per share)			$ 0.001	$ 0.001	$ 0.001		$ 0.001
Maximum aggregate offering price			$ 6,397,939
Net proceeds from issuance of common stock					$ 64,397
Capitalized transaction costs				$ 217,000	$ 217,000
Offering price (in dollars per share)	$ 12.18
Number of warrants exercised					150
Threshold period to file registration statement on Form S-3 from the date of the Purchase Agreements	45 days
Threshold period to use commercially reasonable efforts to cause registration statement to become effective from closing date of the Purchase Agreements	90 days
Transaction costs from offering				(633,198)	$ (633,198)
Offering price of warrant	$ 12.18
Number of warrants held by other investors who are not participating in the Offering	2,904
Deemed dividend related to warrant modifications				155,330	233,087
Change in deemed dividend related to warrant Modification					77,757
Net proceeds from issuance of common stock					2,980,340
Offering
CAPITAL STOCK
Number of shares issued	161,403
Common stock, par value (in dollars per share)	$ 0.001
Gross proceeds	$ 2,800,000
Unrealized gain on change in fair value of warrants classified as a liability				$ 1,633,767	1,633,767
Deemed dividend - warrant repricing					$ 155,330
Subsequent events
CAPITAL STOCK
Common stock, par value (in dollars per share)						$ 0.001
Minimum
CAPITAL STOCK
Exercise price of warrants (in dollars per share)	$ 25.80
Maximum
CAPITAL STOCK
Exercise price of warrants (in dollars per share)	80
Private Common Warrants
CAPITAL STOCK
Offering price (in dollars per share)	$ 12.18
Private Common Warrants | Offering
CAPITAL STOCK
Warrants issued to placement agent	564,407
Number of common stock called by warrants	564,407
Number of warrants exercised				120,800
Pre-Funded Warrants
CAPITAL STOCK
Exercise price of warrants (in dollars per share)	$ 0.0001
Offering price (in dollars per share)	$ 12.18
Pre-Funded Warrants | Offering
CAPITAL STOCK
Warrants issued to placement agent	120,800
Number of common stock called by warrants	120,800
Pre-Funded Warrants | Maximum
CAPITAL STOCK
Warrants issued to placement agent		5,635
Number of common stock called by warrants		5,635
Warrants issued in November 2019
CAPITAL STOCK
Number of remaining warrants issued			22,891
Exercise price of warrants (in dollars per share)			$ 29.40
Warrants issued in October 2020
CAPITAL STOCK
Number of remaining warrants issued			7,950
Exercise price of warrants (in dollars per share)			$ 30.20
Warrants issued in December 2020
CAPITAL STOCK
Number of remaining warrants issued			5,000
Exercise price of warrants (in dollars per share)			$ 26.20
Warrants issued in December 2020, one
CAPITAL STOCK
Number of remaining warrants issued			2,500
Exercise price of warrants (in dollars per share)			$ 25.80
Warrants issued in December 2020, two
CAPITAL STOCK
Number of remaining warrants issued			2,500

WARRANTS (Details)

WARRANTS (Details)	6 Months Ended
	Mar. 31, 2024 $ / shares shares
Number of Shares
Balance at October 1, 2023 | shares	261,030
Granted | shares	876,708
Exercised | shares	(150)
Cancelled or expired | shares	(191,721)
Balance at December 31, 2023 | shares	945,867
Weighted Average Exercise Price Per Share
Balance at October 1, 2023 | $ / shares	$ 72
Granted | $ / shares	12
Exercised | $ / shares	112
Cancelled or expired | $ / shares	57
Balance at December 31, 2023 | $ / shares	$ 18.20

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Operating Leases (Details)			3 Months Ended	6 Months Ended
	Feb. 01, 2023 USD ($) ft²	Nov. 01, 2017 USD ($) ft²	Mar. 31, 2024 USD ($)	Mar. 31, 2024 USD ($) ft²
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			$ 180,589	$ 355,008
Leased office space for corporate headquarters
COMMITMENTS AND CONTINGENCIES
Monthly payments of lease	$ 48,861
Leased office space for Laboratory
COMMITMENTS AND CONTINGENCIES
Monthly payments of lease	$ 8,750
Initial lease term	1 year
Letter of credit
COMMITMENTS AND CONTINGENCIES
Letter of credit amount	$ 750,000

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Employment Agreement (Details) - Employment Agreement - USD ($)								12 Months Ended
	Mar. 31, 2024	Jan. 19, 2024	Jan. 04, 2024	Jan. 01, 2024	Jun. 30, 2023	Oct. 29, 2021	Jul. 28, 2017	Jun. 30, 2017
COMMITMENTS AND CONTINGENCIES
Discretionary bonus		$ 500,000
CEO
COMMITMENTS AND CONTINGENCIES
Agreement renewal period					1 year		1 year	1 year
Annual salary	$ 250,000			$ 450,000		$ 450,000
percentage of reduction CEO's annual base salary			45%
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.

SEGMENT INFORMATION - Informati

SEGMENT INFORMATION - Information regarding operations by segment (Details)	3 Months Ended		6 Months Ended
	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023 USD ($)
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Number of reportable segments | segment			3
Total revenues	$ 929,631	$ 4,407,614	$ 1,820,795	$ 9,670,366
Gross profit	295,651	1,807,435	526,748	4,185,118
(Loss) income from segment operations	(3,617,751)	(2,704,024)	(7,406,818)	(3,923,002)
Product revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	393,125	297,454	700,442	813,850
Service revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	205,486	169,058	452,633	401,119
Clinical laboratory service revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	331,020	3,941,102	667,720	8,455,397
Therapeutic DNA Production
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	323,352	339,532	400,887	588,781
Gross profit	190,588	215,477	268,123	386,401
MDx Testing Services
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	331,020	3,941,102	667,720	8,455,397
Gross profit	18,515	1,650,113	(44,443)	3,583,332
DNA Tagging and Security Products
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	275,259	126,980	752,188	626,188
Gross profit	86,548	(58,155)	303,068	215,385
Operating segment
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues		(30,480)		(82,000)
(Loss) income from segment operations	(1,964,092)	(1,476,571)	(4,503,953)	(1,693,655)
Operating segment | Product revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	393,125	297,454	700,442	813,850
Operating segment | Service revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	205,486	169,058	452,633	401,119
Operating segment | Clinical laboratory service revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues		3,971,582		8,537,397
Operating segment | Therapeutic DNA Production
SEGMENT AND GEOGRAPHIC AREA INFORMATION
(Loss) income from segment operations	(1,165,449)	(1,054,123)	(2,424,495)	(1,906,376)
Operating segment | Therapeutic DNA Production | Product revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	258,152	203,951	258,152	331,457
Operating segment | Therapeutic DNA Production | Service revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	65,200	135,581	142,735	257,324
Operating segment | MDx Testing Services
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues		(30,480)		(82,000)
(Loss) income from segment operations	(298,591)	492,288	(795,103)	1,602,172
Operating segment | MDx Testing Services | Clinical laboratory service revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	335,580	3,971,582	678,320	8,537,397
Operating segment | DNA Tagging and Security Products
SEGMENT AND GEOGRAPHIC AREA INFORMATION
(Loss) income from segment operations	(500,052)	(914,736)	(1,284,355)	(1,389,451)
Operating segment | DNA Tagging and Security Products | Product revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	134,973	93,503	442,290	482,393
Operating segment | DNA Tagging and Security Products | Service revenues
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	140,286	$ 33,477	309,898	$ 143,795
Less intersegment revenues | MDx Testing Services
SEGMENT AND GEOGRAPHIC AREA INFORMATION
Total revenues	$ (4,560)		$ (10,600)

SEGMENT INFORMATION - Reconcili

SEGMENT INFORMATION - Reconciliation of segment loss from operation to corporate loss (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Reconciliation of segment loss from operations to corporate loss
Loss from operations of reportable segments	$ (3,617,751)	$ (2,704,024)	$ (7,406,818)	$ (3,923,002)
General corporate expenses (b)	3,000,208	3,522,715	6,084,557	6,148,072
Interest income	15,352	3,639	48,676	7,325
Unrealized gain on change in fair value of warrants classified as a liability	1,765,000	3,250,900	4,404,000	613,100
Unrealized (loss) on change in fair value of warrants classified as a liability - warrant modification	(394,000)		(394,000)
Transaction costs allocated to warrant liabilities	633,198		633,198
Transaction cost allocated to warrant liabilities	(633,198)		(633,198)
Loss on issuance of warrants	(1,633,767)		(1,633,767)
Other (expense) income , net	4,581	661	(8,957)	9,507
Consolidated (loss) income before provision for income taxes	(4,493,783)	551,176	(5,624,064)	(3,293,070)
Operating segment
Reconciliation of segment loss from operations to corporate loss
Loss from operations of reportable segments	(1,964,092)	(1,476,571)	(4,503,953)	(1,693,655)
Segment reconciling items
Reconciliation of segment loss from operations to corporate loss
General corporate expenses (b)	$ 1,653,659	$ 1,227,453	$ (2,902,865)	$ (2,229,347)

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 - Annualized Volatility	Mar. 31, 2024 USD ($)
Common Warrants | Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Warrants and rights outstanding, measurement input	1.4250
Common Warrants | Monte Carlo simulation
FAIR VALUE OF FINANCIAL INSTRUMENTS
Financial liabilities fair value disclosure	$ 506,000
Warrants and rights outstanding, measurement input	1.4250
Series A Warrants | Monte Carlo simulation
FAIR VALUE OF FINANCIAL INSTRUMENTS
Financial liabilities fair value disclosure	$ 346,000
Warrants and rights outstanding, measurement input	1.3000
Series A Warrants - modified | Monte Carlo simulation
FAIR VALUE OF FINANCIAL INSTRUMENTS
Financial liabilities fair value disclosure	$ 304,000
Warrants and rights outstanding, measurement input	1.4250
Private Common Warrants
FAIR VALUE OF FINANCIAL INSTRUMENTS
Warrants and rights outstanding, measurement input	1.6000
Private Common Warrants | Monte Carlo simulation
FAIR VALUE OF FINANCIAL INSTRUMENTS
Financial liabilities fair value disclosure	$ 4,190,000

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS - Change in fair value of warrants (Details) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2024
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value at beginning of period	$ 1,646,000	$ 4,285,000
Fair value at February 2, 2024	5,071,000	5,071,000
Change in fair value-warrant modification	394,000	394,000
Change in fair value	(1,765,000)	(4,404,000)
Fair Value at ending of period	5,346,000	5,346,000
Common Warrants
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value at beginning of period	581,000	1,468,000
Change in fair value-warrant modification	230,000	230,000
Change in fair value	(305,000)	(1,192,000)
Fair Value at ending of period	506,000	506,000
Series A Warrants
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value at beginning of period	745,500	1,971,900
Change in fair value	(399,500)	(1,625,900)
Fair Value at ending of period	$ 346,000	$ 346,000
Change in fair value, Gain (loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Loss on issuance of warrants	Loss on issuance of warrants
Series A Warrants - modified
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value at beginning of period	$ 319,500	$ 845,100
Change in fair value-warrant modification	164,000	164,000
Change in fair value	(179,500)	(705,100)
Fair Value at ending of period	304,000	304,000
Private Common Warrants
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value at February 2, 2024	5,071,000	5,071,000
Change in fair value	(881,000)	(881,000)
Fair Value at ending of period	$ 4,190,000	$ 4,190,000

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event [Member]	Apr. 25, 2024	Apr. 24, 2024	Apr. 15, 2024 shares
Subsequent Event [Line Items]
Reverse stock split of its common stock	0.05	0.05	1
Incentive Stock Plan 2020
Subsequent Event [Line Items]
Common Stock reserved for issuance			200,000

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (4,470,474)	$ 588,343	$ (5,575,574)	$ (3,255,029)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false