Applied DNA Sciences (APDN) 10-Q 10 Feb 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Feb. 05, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	APPLIED DNA SCIENCES INC
Entity Central Index Key	744,452
Trading Symbol	apdn
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		24,072,092
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 12,382,907	$ 7,312,184
Accounts receivable, net of allowance of $7,140 at December 31, 2015 and September 30, 2015	3,923,997	3,929,517
Prepaid expenses and other current assets	187,355	293,351
Total current assets	16,494,259	11,535,052
Property, plant and equipment, net of accumulated depreciation of $955,765 at December 31, 2015 and $852,867 at September 30, 2015	561,912	572,107
Other assets:
Long term accounts receivables	1,500,000	1,500,000
Deposits	58,488	62,988
Goodwill	285,386	285,386
Intangible assets, net of accumulated amortization of $284,816 and $238,368 at December 31, 2015 and September 30, 2015, respectively	1,584,473	1,598,779
Total Assets	20,484,518	15,554,312
Current liabilities:
Accounts payable and accrued liabilities	2,110,995	2,385,006
Deferred revenue	57,526	282,050
Total current liabilities	2,168,521	2,667,056
Long term accounts payable	320,400	320,400
Total liabilities	$ 2,488,921	$ 2,987,456
Commitments and contingencies
Stockholders' Equity
Preferred stock value
Common stock, par value $0.001 per share; 500,000,000 shares authorized at December 31, 2015 and September 30, 2015; 24,072,092 and 21,504,578 shares issued and outstanding as of December 31, 2015 and September 30, 2015, respectively	$ 24,073	$ 21,505
Additional paid in capital	232,539,203	224,186,760
Accumulated deficit	(214,567,679)	(211,641,409)
Total stockholders' equity	17,995,597	12,566,856
Total Liabilities and Stockholders' Equity	$ 20,484,518	$ 15,554,312
Series A Preferred stock
Stockholders' Equity
Preferred stock value
Series B Preferred stock
Stockholders' Equity
Preferred stock value

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Allowance on accounts receivable (in dollars)	$ 7,140	$ 7,140
Accumulated depreciation on property, plant and equipment (in dollars)	955,765	852,867
Accumulated amortization on intangible assets (in dollars)	$ 284,816	$ 238,368
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	24,072,092	21,504,578
Common stock, shares outstanding	24,072,092	21,504,578
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 (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenues	$ 1,324,114	$ 1,241,802
Operating expenses:
Selling, general and administrative	3,554,362	4,671,490
Research and development	471,934	278,288
Depreciation and amortization	218,346	109,726
Total operating expenses	4,244,642	5,059,504
LOSS FROM OPERATIONS	(2,920,528)	(3,817,702)
Other income (expense):
Interest income (expense), net	2,845	(31,875)
Other (expense) income, net	(8,587)	(3,685)
Loss on conversion of promissory notes		(980,842)
Loss on change in fair value of warrant liability		(2,994,540)
Net loss before provision for income taxes	$ (2,926,270)	$ (7,828,644)
Provision for income taxes
NET LOSS	$ (2,926,270)	$ (7,828,644)
Net loss per share-basic and diluted	$ (0.13)	$ (0.51)
Weighted average shares outstanding-
Basic and diluted	22,542,176	15,456,566

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net loss	$ (2,926,270)	$ (7,828,644)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	218,346	109,726
Stock based compensation expense	396,991	1,998,524
Change in fair value of warrant liability		2,994,540
Loss on conversion of promissory notes		980,842
Common stock issued for consulting services	58,120
Bad debt expense	10,000	2,779
Change in operating assets and liabilities:
Accounts receivable	(4,480)	(282,502)
Prepaid expenses and other current assets and deposits	71,896	(18,102)
Accounts payable and accrued liabilities	(320,825)	(253,997)
Deferred revenue	(224,524)	(59,001)
Net cash used in operating activities	(2,720,746)	(2,355,835)
Cash flows used in investing activities:
Purchase of property plant and equipment	(51,795)	(30,825)
Purchase of intangible assets	(14,301)
Net cash used in investing activities	(66,096)	(30,825)
Cash flows from financing activities:
Net proceeds from sale of common stock and warrants	7,853,155	7,956,050
Proceeds from the exercise of warrants	4,410
Purchase and cancelation of previously issued warrants		(4,090,952)
Net cash provided by financing activities	7,857,565	3,865,098
Net increase in cash and cash equivalents	5,070,723	1,478,438
Cash and cash equivalents at beginning of period	7,312,184	1,393,132
Cash and cash equivalents at end of period	$ 12,382,907	$ 2,871,570
Supplemental Disclosures of Cash Flow Information:
Cash paid during period for interest
Cash paid during period for taxes
Non-cash investing and financing activities:
Common stock issued for cashless exercise of options and warrants	$ 49
Property, plant and equipment acquired, and included in accounts payable	40,908	$ 181,104
Intangible assets acquired, and included in accounts payable	17,841
Issuance of options to settle accrued liability	$ 42,335

SUMMARY OF ACCOUNTING POLICIES

SUMMARY OF ACCOUNTING POLICIES	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
SUMMARY OF ACCOUNTING POLICIES	NOTE A — SUMMARY OF ACCOUNTING POLICIES General The accompanying condensed consolidated financial statements as of December 31, 2015 and for the three month periods ended December 31, 2015 and 2014 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 Rule 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 generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended December 31, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2016. 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, 2015 and footnotes thereto included in the Annual Report on Form 10-K, of Applied DNA Sciences, Inc. (the “Company”) filed with the SEC. The condensed consolidated balance sheet as of September 30, 2015 contained herein has been derived from the audited consolidated financial statements as of September 30, 2015, but does not include all disclosures required by GAAP. Business and Basis of Presentation The Company is a Delaware corporation, which was initially organized in 1983 under the laws of the State of Florida as Datalink Systems, Inc. In 1998, the Company reincorporated in the State of Nevada, and in 2002, the Company changed its name to its current name, Applied DNA Sciences, Inc. In December 2008, the Company reincorporated from Nevada to the State of Delaware. The Company is principally devoted to developing DNA embedded biotechnology security solutions in the United States and Europe. To date, the Company has produced limited recurring revenues from its services and products; it has incurred expenses and has sustained losses. Consequently, its operations are subject to all the risks inherent in the establishment of a biotechnology company. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, APDN (B.V.I.) Inc. and Applied DNA Sciences Europe Limited, which currently have no operations or activity. Significant inter-company transactions and balances have been eliminated in consolidation. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 605, Revenue Recognition (“ASC 605”). ASC 605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred and/or service has been performed; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered or services provided and the collectability of those amounts. Provisions for allowances and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product has not been delivered, service has not been provided, or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered, the service has been provided, or no refund will be required. At December 31, 2015 and September 30, 2015, the Company recorded deferred revenue of $57,526 and $282,050, respectively. Revenue arrangements with multiple components are divided into separate units of accounting if certain criteria are met, including whether the delivered component has stand-alone value to the customer. Consideration received is allocated among the separate units of accounting based on their respective selling prices. The selling price for each unit is based on vendor-specific objective evidence, or VSOE, if available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third party is available. The applicable revenue recognition criteria are then applied to each of the units. Revenue for government contract awards, which supports the Company’s development efforts on specific projects, is recognized as milestones are achieved as per the contract. The Company recognized revenue of $504,349 from these contract awards during the three month period ended December 31, 2015 and $449,647 for the three month period ended December 31, 2014. The Company recognizes the revenue under its cotton customer contracts when the product has been shipped, as there is no right of return under these arrangements. The Company has evaluated the other indicators of gross and net revenue recognition, including whether or not the Company is the primary obligor and if it has general inventory risk. The Company does not have any general inventory risk and is not the primary obligor as it relates to the marketing portion of the tagging fee. With respect to the Company’s mutual license agreement with Himatsingka America Inc. (formerly known as Divatex Home Fashion, Inc.) (“Himatsingka”), the Company has carefully evaluated all of the key gross and net revenue recognition indicators and has concluded that the circumstances as they relate to Himatsingka’s portion of the tagging fee are more consistent with those key indicators that support net revenue reporting. In addition, the nature of some of the Company’s cotton contracts includes extended payment terms that will result in a longer collection period and slower cash inflows. As a result, $1,500,000 of revenue recognized during the fiscal year ended September 30, 2015 under the Company’s memorandum of understanding with Louis Dreyfus Commodities is included in long-term accounts receivable as of December 31, 2015 and September 30, 2015. The cotton ginning season in the United States takes place between September and December each year, therefore, revenues from these contracts may be seasonal. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenue and expenses during the reporting period. Actual results could differ from those estimates. Net Loss Per Share The Company presents loss per share utilizing a dual presentation of basic and diluted loss per share. Basic loss per share includes no dilution and has been calculated based upon the weighted average number of common shares outstanding during the period. Dilutive common stock equivalents consist of shares issuable upon the exercise of the Company’s stock options and warrants. For the three month periods ended December 31, 2015 and 2014, common stock equivalent shares are excluded from the computation of the diluted loss per share as their effect would be anti-dilutive. Securities that could potentially dilute basic net income per share in the future that were not included in the computation of diluted net loss per share because including those securities would have been anti-dilutive for the three month periods ended December 31, 2015 and 2014 are as follows: 2015 2014 Warrants 7,324,727 4,470,502 Employee options 3,890,420 3,777,888 11,215,147 8,248,390 Stock Based Compensation The Company accounts for stock-based compensation for employees and directors in accordance with ASC 718, Compensation (“ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statement of operations based on their fair values. Under the provisions of ASC 718, stock-based compensation costs are measured at the grant date, based on the fair value of the award, and are recognized as expense over the employee’s requisite service period (generally the vesting period of the equity grant). The fair value of the Company’s common stock options are estimated using the Black Scholes option-pricing model with the following assumptions: expected volatility, dividend rate, risk free interest rate and the expected life. The Company expenses stock-based compensation by using the straight-line method. In accordance with ASC 718, excess tax benefits realized from the exercise of stock-based awards are classified in cash flows from financing activities. The future realization of the reserved deferred tax assets related to these tax benefits associated with the exercise of stock options will result in a credit to additional paid in capital if the related tax deduction reduces taxes payable. The Company has elected the “with and without approach” regarding ordering of windfall tax benefits to determine whether the windfall tax benefit did reduce taxes payable in the current year. Under this approach, the windfall tax benefit would be recognized in additional paid-in-capital only if an incremental tax benefit is realized after considering all other benefits presently available. The Company accounts for stock based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in ASC 505-50. Concentrations Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. The Company’s revenues earned from sale of products and services for the three month period ended December 31, 2015 included an aggregate of 73%, from three customers. These three customers accounted for approximately 92% of the Company’s total accounts receivable, of which $1,500,000 is classified as long term accounts receivable at December 31, 2015. The Company’s revenues earned from sale of products and services for the three month period ended December 31, 2014 included an aggregate of 53% from two customers. These two customers accounted for approximately 74% of the Company’s total accounts receivable at December 31, 2014. In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17"). This update requires an entity to classify deferred tax liabilities and assets as noncurrent within a classified statement of financial position. ASU 2015-17 is effective for annual and interim reporting periods beginning after December 15, 2016. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early application is permitted as of the beginning of the interim or annual reporting period. The Company is currently evaluating the impact of the adoption of this pronouncement on its balance sheet, although it does not expect the pronouncement to have a significant impact. In September 2015, the FASB issued Accounting Standards Update 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015-16”). The FASB issued ASU 2015-16 to simplify US GAAP to require that the acquirer record, in the same period’s financial statements, the effect of changes to provisional, measurement period amounts calculated as if the accounting had been completed at the acquisition date and disclose the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The Company does not believe that this updated standard will have a material impact on its condensed consolidated financial statements. In August 2014, FASB In June 2014, the FASB issued Accounting Standards Update 2014-12, “Accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period,” (“ASU 2014-12”) which requires performance-based awards with a performance target that affects vesting and that could be achieved after an employee completes the requisite service period to be accounted for as a performance condition. If performance targets are clearly defined and it is probable that the performance condition will be achieved, stock-based expense should be recognized over the remaining requisite service period. This guidance will be effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2015. Early adoption is permitted. The Company is in the process of evaluating the provisions of the ASU and assessing the potential effect on the Company’s condensed consolidated financial position or results of operations. In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”) which provides updated, comprehensive revenue recognition guidance for contracts with customers, including a new principles-based five step framework that eliminates much of the industry-specific guidance in current accounting literature. Under ASU 2014-09, revenue recognition is based on a core principle that companies recognize revenue in an amount consistent with the consideration it expects to be entitled to in exchange for the transfer of goods or services. The standards update also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of recognized revenue. This guidance will be effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2017. The Company is in the process of evaluating the provisions of the ASU and assessing the potential effect on the Company’s condensed consolidated financial position or results of operations.

LIQUIDITY AND MANAGEMENT'S PLAN

LIQUIDITY AND MANAGEMENT'S PLAN	3 Months Ended
	Dec. 31, 2015
Liquidity And Management Plan [Abstract]
LIQUIDITY AND MANAGEMENT'S PLAN	NOTE B – LIQUIDITY AND MANAGEMENT’S PLAN The Company has recurring net losses, which have resulted in an accumulated deficit of $214,567,679 as of December 31, 2015. The Company incurred a net loss of $2,926,270 and generated negative operating cash flow of $2,720,746 for the three month period ended December 31, 2015. However, the Company also has working capital of $14,325,738 as of December 31, 2015. At December 31, 2015 the Company had cash and cash equivalents of $12,382,907. The Company’s current capital resources include cash and cash equivalents, accounts receivable and prepaid expenses and other current assets. Historically, the Company has financed its operations principally from the sale of equity securities. On November 23, 2015, the Company closed a registered direct public offering of common stock and a concurrent private placement of warrants to purchase common stock, for aggregate gross proceeds of approximately $8,750,000, before deducting placement agent fees and offering expenses (See Note D). The Company expects to finance operations and capital expenditures primarily through cash received from the November 2015 public offering and concurrent private placement as well as cash flows provided by operating activities provided that it will achieve a sufficient level of future revenues. The Company estimates that its cash and cash equivalents are sufficient to fund operations for the next twelve months. The Company may require additional funds to complete the continued development of its products, product manufacturing, and to fund expected additional losses from operations, until revenues are sufficient to cover the Company’s operating expenses. As a result of the Company's inability to file with the SEC certain audited historical financial statements relating to the assets of Vandalia Research, Inc. acquired in September 2015 by the date on which they were required to be filed, the Company is currently ineligible to use Form S-3, a streamlined registration form, to register securities for at least twelve calendar months and it would not regain the use of Form S-3 unless the Company was able to subsequently file these audited historical financial statements. Moreover, until the Company has filed the audited historical financial statements, it would be unable to use Form S-1 or other SEC forms to register securities as required for a public offering and would be unable to conduct offerings in private placements under Rule 505 or 506 of Regulation D to any purchasers who are not accredited investors. Therefore, until such time as the Company is able to conduct a public offering, if it determines it to be necessary or advisable to raise additional capital, the Company would need to issue securities in private placements to the extent permissible by law or seek other forms of financing. These alternatives generally entail greater total costs to the Company than a public offering of securities.

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	3 Months Ended
	Dec. 31, 2015
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	NOTE C – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities at December 31, 2015 and September 30, 2015 are as follows: December 31, September 30, Accounts payable $ 1,598,934 $ 1,237,973 Accrued salaries payable 471,114 1,002,743 Other accrued expenses 40,947 144,290 Total $ 2,110,995 $ 2,385,006

CAPITAL STOCK

CAPITAL STOCK	3 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
CAPITAL STOCK	NOTE D - CAPITAL STOCK On November 23, 2015, the Company entered into a securities purchase agreement with certain institutional investors providing for the purchase and sale of 2,500,000 shares of common stock at a price of $3.49 per share in a registered direct public offering. In a concurrent private placement, the Company sold warrants to purchase 1,250,000 shares of its common stock at a price of $0.01 per warrant, with an exercise price of $4.30 per share. The warrants will be exercisable beginning six months following the closing date of the private placement and will expire five years from the date on which they become exercisable. The warrants provide each warrant holder the right, at the warrant holder's election, to exercise by means of a cashless exercise feature. The gross proceeds to the Company from this registered direct offering and concurrent private placement were $8.75 million and net proceeds after deducting the placement agent fees and offering expenses were approximately $7.9 million. In connection with the closing of the registered direct public offering and the concurrent private placement, as partial compensation, on November 25, 2015, the Company granted warrants to purchase 50,000 shares of common stock to its placement agent. These warrants have an exercise price of $4.01 (115% of the public offering price), subject to adjustment as set forth therein, will be exercisable beginning six months following the closing date of the private placement and expire at 5:00 PM (Eastern Standard Time) on November 25, 2020. These warrants provide the placement agent the right, at the placement agent’s election, to exercise by means of a cashless exercise feature.

STOCK OPTIONS AND WARRANTS

STOCK OPTIONS AND WARRANTS	3 Months Ended
	Dec. 31, 2015
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
STOCK OPTIONS AND WARRANTS	NOTE E - STOCK OPTIONS AND WARRANTS Warrants The following table summarizes the changes in warrants outstanding and the related prices for the shares of common stock issued to non-employees of the Company. These warrants were granted in lieu of cash for services performed or financing expenses in connection with the sale of common stock. Transactions involving warrants (see Note D) are summarized as follows: Number of Weighted Balance at October 1, 2015 6,027,654 $ 3.54 Granted 1,300,000 4.29 Exercised (1,260 ) (3.50 ) Cancelled or expired (1,667 ) (10.74 ) Balance at December 31, 2015 $ 7,324,727 $ 3.67 Employee Stock Options In 2005, the Board of Directors and the holders of a majority of the outstanding shares of common stock approved the 2005 Incentive Stock Plan (the “Incentive Plan”). In 2007, 2008, 2012 and 2015, the Board of Directors and holders of a majority of the outstanding shares of common stock approved various increases in the number of shares of common stock that can be issued as stock awards and stock options thereunder to an aggregate of 8,833,333 shares and the number of shares of common stock that can be covered by awards made to any participant in any calendar year to 833,334 shares. The Incentive Plan’s expiration date is January 25, 2025. The Incentive Plan is designed to retain directors, executives, and selected employees and consultants by rewarding them for making contributions to the Company's success with an award of options to purchase shares of common stock and an award of shares of common stock. As of December 31, 2015 a total of 269,752 shares have been issued and options to purchase 4,666,469 shares have been granted under the Incentive Plan. Transactions involving stock options issued to employees are summarized as follows: Number of Weighted Aggregate Outstanding at October 1, 2015 3,458,905 $ 4.74 Granted 531,523 3.04 Exercised (75,000 ) (2.86 ) Cancelled or expired (25,008 ) (4.20 ) Outstanding at December 31, 2015 3,890,420 $ 4.26 Vested at December 31, 2015 2,819,006 $ 4.23 $ 0.97 Non-vested at December 31, 2015 1,071,415 $ 0.87 During the three month period ended December 31, 2015, the Company issued an aggregate of 531,523 options to employees and non-employee board of director members. Included in these grants were 160,000 options granted to executives. The fair value of options granted during the three month periods ended December 31, 2015 and 2014 was determined using the Black Scholes Option Pricing Model with the following weighted average assumptions: Three Three Stock price $ 3.04 $ 2.84 Exercise price $ 3.04 $ 2.84 Expected term, years 6.10 4.86 Dividend yield — % — % Volatility 130 % 132 % Risk free rate 1.8 % 1.58 % The Company recorded $396,991 and $1,998,524 as stock compensation expense for the three month periods ended December 31, 2015 and 2014, respectively. As of December 31, 2015, unrecorded compensation cost related to non-vested awards was $3,402,145 which is expected to be recognized over a weighted average period of approximately 2.35 years. The weighted average grant date fair value per share for options granted during the three month period ended December 31, 2015 was $2.71.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
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 term of the lease commenced on June 15, 2013 and expires on May 31, 2016, with the option to extend the lease for two additional three-year periods. The base rent during the initial lease term is $449,142 per annum. Total rent expense for the three month periods ended December 31, 2015 and 2014 was $144,716 and $124,838, respectively. Employment Agreement The Company has an employment agreement with the Chief Executive Officer. Effective June 21, 2014, the Chief Executive Officer’s annual salary was voluntarily deferred by $50,000. This salary deferral will be accrued and repaid when the Company reaches $3,000,000 in sales for two consecutive quarters or the Company has net income at the end of any fiscal year. Effective January 1, 2015, the Chief Executive Officer’s annual salary was voluntarily reduced by an additional $50,000. Effective January 1, 2016, $400,000 pursuant to approval by the Compensation Committee of the Board of Directors. 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.

ASSET PURCHASE AGREEMENT

ASSET PURCHASE AGREEMENT	3 Months Ended
	Dec. 31, 2015
Asset Purchase Agreement [Abstract]
ASSET PURCHASE AGREEMENT	NOTE H - ASSET PURCHASE AGREEMENT As disclosed in the Company's audited consolidated financial statements as of and for the fiscal year ended September 30, 2015 and footnotes thereto included in the Annual Report on Form 10-K, filed with the SEC, on September 11, 2015, the Company entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”), with Vandalia Research, Inc. a West Virginia corporation ("Vandalia"), and Derek A. Gregg, Vandalia’s Chief Executive Officer and a director of Vandalia, providing for the purchase of substantially all the assets (“Assets”) of Vandalia. The Company completed the acquisition of such Assets on the same date. The purchase price for the Assets was $1,500,000, which amount was determined through arms-length negotiation. Of this amount, $500,000 was placed in an escrow account for a period of nine months following the closing to satisfy Vandalia’s indemnification obligations, of which $350,000 was released after sixty days. The audits of the historical financial statements of Vandalia are currently still in process. The following unaudited supplemental pro forma information presents the Company's financial results as if the acquisition of Vandalia had occurred October 1, 2013: Three month period ended December 31, 2014 Revenue $ 1,257,844 Net loss (8,030,404 ) Basic and diluted loss per share $ (0.52 )

SUMMARY OF ACCOUNTING POLICIES

SUMMARY OF ACCOUNTING POLICIES (Policies)	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Business and Basis of Presentation	Business and Basis of Presentation The Company is a Delaware corporation, which was initially organized in 1983 under the laws of the State of Florida as Datalink Systems, Inc. In 1998, the Company reincorporated in the State of Nevada, and in 2002, the Company changed its name to its current name, Applied DNA Sciences, Inc. In December 2008, the Company reincorporated from Nevada to the State of Delaware. The Company is principally devoted to developing DNA embedded biotechnology security solutions in the United States and Europe. To date, the Company has produced limited recurring revenues from its services and products; it has incurred expenses and has sustained losses. Consequently, its operations are subject to all the risks inherent in the establishment of a biotechnology company. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, APDN (B.V.I.) Inc. and Applied DNA Sciences Europe Limited, which currently have no operations or activity. Significant inter-company transactions and balances have been eliminated in consolidation.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 605, Revenue Recognition (“ASC 605”). ASC 605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred and/or service has been performed; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered or services provided and the collectability of those amounts. Provisions for allowances and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product has not been delivered, service has not been provided, or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered, the service has been provided, or no refund will be required. At December 31, 2015 and September 30, 2015, the Company recorded deferred revenue of $57,526 and $282,050, respectively. Revenue arrangements with multiple components are divided into separate units of accounting if certain criteria are met, including whether the delivered component has stand-alone value to the customer. Consideration received is allocated among the separate units of accounting based on their respective selling prices. The selling price for each unit is based on vendor-specific objective evidence, or VSOE, if available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third party is available. The applicable revenue recognition criteria are then applied to each of the units. Revenue for government contract awards, which supports the Company’s development efforts on specific projects, is recognized as milestones are achieved as per the contract. The Company recognized revenue of $504,349 from these contract awards during the three month period ended December 31, 2015 and $449,647 for the three month period ended December 31, 2014. The Company recognizes the revenue under its cotton customer contracts when the product has been shipped, as there is no right of return under these arrangements. The Company has evaluated the other indicators of gross and net revenue recognition, including whether or not the Company is the primary obligor and if it has general inventory risk. The Company does not have any general inventory risk and is not the primary obligor as it relates to the marketing portion of the tagging fee. With respect to the Company’s mutual license agreement with Himatsingka America Inc. (formerly known as Divatex Home Fashion, Inc.) (“Himatsingka”), the Company has carefully evaluated all of the key gross and net revenue recognition indicators and has concluded that the circumstances as they relate to Himatsingka’s portion of the tagging fee are more consistent with those key indicators that support net revenue reporting. In addition, the nature of some of the Company’s cotton contracts includes extended payment terms that will result in a longer collection period and slower cash inflows. As a result, $1,500,000 of revenue recognized during the fiscal year ended September 30, 2015 under the Company’s memorandum of understanding with Louis Dreyfus Commodities is included in long-term accounts receivable as of December 31, 2015 and September 30, 2015. The cotton ginning season in the United States takes place between September and December each year, therefore, revenues from these contracts may be seasonal.
Use of Estimates	Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenue and expenses during the reporting period. Actual results could differ from those estimates.
Net Loss Per Share	Net Loss Per Share The Company presents loss per share utilizing a dual presentation of basic and diluted loss per share. Basic loss per share includes no dilution and has been calculated based upon the weighted average number of common shares outstanding during the period. Dilutive common stock equivalents consist of shares issuable upon the exercise of the Company’s stock options and warrants. For the three month periods ended December 31, 2015 and 2014, common stock equivalent shares are excluded from the computation of the diluted loss per share as their effect would be anti-dilutive. Securities that could potentially dilute basic net income per share in the future that were not included in the computation of diluted net loss per share because including those securities would have been anti-dilutive for the three month periods ended December 31, 2015 and 2014 are as follows: 2015 2014 Warrants 7,324,727 4,470,502 Employee options 3,890,420 3,777,888 11,215,147 8,248,390
Stock Based Compensation	Stock Based Compensation The Company accounts for stock-based compensation for employees and directors in accordance with ASC 718, Compensation (“ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statement of operations based on their fair values. Under the provisions of ASC 718, stock-based compensation costs are measured at the grant date, based on the fair value of the award, and are recognized as expense over the employee’s requisite service period (generally the vesting period of the equity grant). The fair value of the Company’s common stock options are estimated using the Black Scholes option-pricing model with the following assumptions: expected volatility, dividend rate, risk free interest rate and the expected life. The Company expenses stock-based compensation by using the straight-line method. In accordance with ASC 718, excess tax benefits realized from the exercise of stock-based awards are classified in cash flows from financing activities. The future realization of the reserved deferred tax assets related to these tax benefits associated with the exercise of stock options will result in a credit to additional paid in capital if the related tax deduction reduces taxes payable. The Company has elected the “with and without approach” regarding ordering of windfall tax benefits to determine whether the windfall tax benefit did reduce taxes payable in the current year. Under this approach, the windfall tax benefit would be recognized in additional paid-in-capital only if an incremental tax benefit is realized after considering all other benefits presently available. The Company accounts for stock based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in ASC 505-50.
Concentrations	Concentrations Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. The Company’s revenues earned from sale of products and services for the three month period ended December 31, 2015 included an aggregate of 73%, from three customers. These three customers accounted for approximately 92% of the Company’s total accounts receivable, of which $1,500,000 is classified as long term accounts receivable at December 31, 2015. The Company’s revenues earned from sale of products and services for the three month period ended December 31, 2014 included an aggregate of 53% from two customers. These two customers accounted for approximately 74% of the Company’s total accounts receivable at December 31, 2014.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17"). This update requires an entity to classify deferred tax liabilities and assets as noncurrent within a classified statement of financial position. ASU 2015-17 is effective for annual and interim reporting periods beginning after December 15, 2016. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early application is permitted as of the beginning of the interim or annual reporting period. The Company is currently evaluating the impact of the adoption of this pronouncement on its balance sheet, although it does not expect the pronouncement to have a significant impact. In September 2015, the FASB issued Accounting Standards Update 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015-16”). The FASB issued ASU 2015-16 to simplify US GAAP to require that the acquirer record, in the same period’s financial statements, the effect of changes to provisional, measurement period amounts calculated as if the accounting had been completed at the acquisition date and disclose the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The Company does not believe that this updated standard will have a material impact on its condensed consolidated financial statements. In August 2014, FASB In June 2014, the FASB issued Accounting Standards Update 2014-12, “Accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period,” (“ASU 2014-12”) which requires performance-based awards with a performance target that affects vesting and that could be achieved after an employee completes the requisite service period to be accounted for as a performance condition. If performance targets are clearly defined and it is probable that the performance condition will be achieved, stock-based expense should be recognized over the remaining requisite service period. This guidance will be effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2015. Early adoption is permitted. The Company is in the process of evaluating the provisions of the ASU and assessing the potential effect on the Company’s condensed consolidated financial position or results of operations. In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”) which provides updated, comprehensive revenue recognition guidance for contracts with customers, including a new principles-based five step framework that eliminates much of the industry-specific guidance in current accounting literature. Under ASU 2014-09, revenue recognition is based on a core principle that companies recognize revenue in an amount consistent with the consideration it expects to be entitled to in exchange for the transfer of goods or services. The standards update also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of recognized revenue. This guidance will be effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2017. The Company is in the process of evaluating the provisions of the ASU and assessing the potential effect on the Company’s condensed consolidated financial position or results of operations.

SUMMARY OF ACCOUNTING POLICIE14

SUMMARY OF ACCOUNTING POLICIES (Tables)	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Schedule of anti-dilutive securities excluded from computation of earning per share	2015 2014 Warrants 7,324,727 4,470,502 Employee options 3,890,420 3,777,888 11,215,147 8,248,390

ACCOUNTS PAYABLE AND ACCRUED 15

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	3 Months Ended
	Dec. 31, 2015
Payables and Accruals [Abstract]
Schedule of accounts payable and accrued liabilities	December 31, September 30, Accounts payable $ 1,598,934 $ 1,237,973 Accrued salaries payable 471,114 1,002,743 Other accrued expenses 40,947 144,290 Total $ 2,110,995 $ 2,385,006

STOCK OPTIONS AND WARRANTS (Tab

STOCK OPTIONS AND WARRANTS (Tables)	3 Months Ended
	Dec. 31, 2015
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Schedule of transactions involving warrants	Number of Weighted Balance at October 1, 2015 6,027,654 $ 3.54 Granted 1,300,000 4.29 Exercised (1,260 ) (3.50 ) Cancelled or expired (1,667 ) (10.74 ) Balance at December 31, 2015 $ 7,324,727 $ 3.67
Schedule of summary of transactions involving stock options issued to employees	Number of Weighted Aggregate Outstanding at October 1, 2015 3,458,905 $ 4.74 Granted 531,523 3.04 Exercised (75,000 ) (2.86 ) Cancelled or expired (25,008 ) (4.20 ) Outstanding at December 31, 2015 3,890,420 $ 4.26 Vested at December 31, 2015 2,819,006 $ 4.23 $ 0.97 Non-vested at December 31, 2015 1,071,415 $ 0.87
Schedule of fair value of options granted	Three Three Stock price $ 3.04 $ 2.84 Exercise price $ 3.04 $ 2.84 Expected term, years 6.10 4.86 Dividend yield — % — % Volatility 130 % 132 % Risk free rate 1.8 % 1.58 %

ASSET PURCHASE AGREEMENT (Table

ASSET PURCHASE AGREEMENT (Tables)	3 Months Ended
	Dec. 31, 2015
Asset Purchase Agreement [Abstract]
Per forma information of company's financial results as if acquisition occurred	Three month period ended December 31, 2014 Revenue $ 1,257,844 Net loss (8,030,404 ) Basic and diluted loss per share $ (0.52 )

SUMMARY OF ACCOUNTING POLICIE18

SUMMARY OF ACCOUNTING POLICIES - Summary of potential stock issuances under various options, and warrants (Details) - shares	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from diluted net loss per share	11,215,147	8,248,390
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from diluted net loss per share	7,324,727	4,470,502
Employee options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from diluted net loss per share	3,890,420	3,777,888

SUMMARY OF ACCOUNTING POLICIE19

SUMMARY OF ACCOUNTING POLICIES (Detail Textuals) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Accounting Policies [Abstract]
Deferred revenue	$ 57,526		$ 282,050
Revenue for government contract awards	504,349	$ 449,647
Long-term accounts receivable revenue recognized	$ 1,500,000		$ 1,500,000

SUMMARY OF ACCOUNTING POLICIE20

SUMMARY OF ACCOUNTING POLICIES (Detail Textuals 1)	3 Months Ended
	Dec. 31, 2015USD ($)Customer	Dec. 31, 2014Customer	Sep. 30, 2015USD ($)
Concentration Risk [Line Items]
Long term accounts receivables | $	$ 1,500,000		$ 1,500,000
Customer Concentration Risk | Total Revenue | Three customers
Concentration Risk [Line Items]
Percentage of total revenue and accounts receivable	73.00%
Number of customers	3
Customer Concentration Risk | Total Revenue | Two customers
Concentration Risk [Line Items]
Percentage of total revenue and accounts receivable		53.00%
Number of customers		2
Customer Concentration Risk | Accounts Receivable | Three customers
Concentration Risk [Line Items]
Percentage of total revenue and accounts receivable	92.00%
Number of customers	3
Long term accounts receivables | $	$ 1,500,000
Customer Concentration Risk | Accounts Receivable | Two customers
Concentration Risk [Line Items]
Percentage of total revenue and accounts receivable		74.00%
Number of customers		2

LIQUIDITY AND MANAGEMENT'S PL21

LIQUIDITY AND MANAGEMENT'S PLAN (Detail Textuals) - USD ($)	1 Months Ended	3 Months Ended
	Nov. 23, 2015	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Sep. 30, 2014
Liquidity And Management Plan [Abstract]
Accumulated deficit		$ (214,567,679)		$ (211,641,409)
Net loss		(2,926,270)	$ (7,828,644)
Operating cash flow		(2,720,746)	(2,355,835)
Working capital		14,325,738
Cash and cash equivalents		$ 12,382,907	$ 2,871,570	$ 7,312,184	$ 1,393,132
Gross proceeds from offering	$ 8,750,000

ACCOUNTS PAYABLE AND ACCRUED 22

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Summary of accounts payable and accrued liabilities (Details) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Payables and Accruals [Abstract]
Accounts payable	$ 1,598,934	$ 1,237,973
Accrued salaries payable	471,114	1,002,743
Other accrued expenses	40,947	144,290
Total	$ 2,110,995	$ 2,385,006

CAPITAL STOCK (Detail Textuals)

CAPITAL STOCK (Detail Textuals) - USD ($)	1 Months Ended
	Nov. 25, 2015	Nov. 23, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Gross proceeds from offering		$ 8,750,000
Private placement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock called by warrants	50,000
Exercise price of warrants	$ 4.01
Exercise price percentage of public offering price	115.00%
Securities Purchase Agreement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued		2,500,000
Share issued (Price per share)		$ 3.49
Gross proceeds from offering		$ 8,750,000
Net proceeds after deducting placement agent fees and offering expenses		$ 7,900,000
Securities Purchase Agreement | Private placement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock called by warrants		1,250,000
Share price		$ 0.01
Exercise price of warrants		$ 4.30

STOCK OPTIONS AND WARRANTS - Tr

STOCK OPTIONS AND WARRANTS - Transactions involving warrants (Details)	3 Months Ended
	Dec. 31, 2015$ / sharesshares
Number of Shares
Balance at October 1, 2015 | shares	6,027,654
Granted | shares	1,300,000
Exercised | shares	(1,260)
Cancelled or expired | shares	(1,667)
Balance, December 31, 2015 | shares	7,324,727
Weighted Average Exercise Price Per Share
Balance at October 1, 2015 | $ / shares	$ 3.54
Granted | $ / shares	4.29
Exercised | $ / shares	(3.50)
Cancelled or expired | $ / shares	(10.74)
Balance, December 31, 2015 | $ / shares	$ 3.67

STOCK OPTIONS AND WARRANTS - 25

STOCK OPTIONS AND WARRANTS - Transactions involving stock options issued to employees (Details 1) - Employee Stock Options - Incentive Stock Plan 2005	3 Months Ended
	Dec. 31, 2015$ / sharesshares
Number of Shares
Outstanding at October 1, 2015 | shares	3,458,905
Granted | shares	531,523
Exercised | shares	(75,000)
Cancelled or expired | shares	(25,008)
Outstanding at December 31, 2015 | shares	3,890,420
Vested at December 31, 2015 | shares	2,819,006
Non-vested at December 31, 2015 | shares	1,071,415
Weighted Average Exercise Price Per Share
Outstanding at October 1, 2015	$ 4.74
Granted	3.04
Exercised	(2.86)
Cancelled or expired	(4.20)
Outstanding at December 31, 2015	4.26
Vested at December 31, 2015	4.23
Aggregate Intrinsic Value, Vested at December 31, 2015	0.97
Aggregate Intrinsic Value, Non-vested at December 31, 2015	$ 0.87

STOCK OPTIONS AND WARRANTS - Fa

STOCK OPTIONS AND WARRANTS - Fair value of options granted using Black Scholes Option Pricing Model with weighted average assumptions (Details 2) - $ / shares	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Stock price	$ 3.04	$ 2.84
Exercise price	$ 3.04	$ 2.84
Expected term, years	6 years 1 month 6 days	4 years 10 months 10 days
Dividend yield
Volatility	130.00%	132.00%
Risk free rate	1.80%	1.58%

STOCK OPTIONS AND WARRANTS - Em

STOCK OPTIONS AND WARRANTS - Employee Stock Options (Detail Textuals) - Employee Stock Options - Incentive Stock Plan 2005	3 Months Ended
	Dec. 31, 2015shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares of common stock that can be issued as stock awards and stock option	8,833,333
Number of common stock shares that can be covered by awards made to any participant per period	833,334
Number of shares issued	269,752
Options to purchase shares under the 2005 Incentive Stock Plan	4,666,469

STOCK OPTIONS AND WARRANTS - 28

STOCK OPTIONS AND WARRANTS - Employee Stock Options (Detail Textuals 1) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 396,991	$ 1,998,524
Unrecorded compensation cost related to non-vested awards	$ 3,402,145
Weighted average period of non-vested awards options	2 years 4 months 6 days
Weighted average grant date fair value for options granted	$ 2.71
Employee Stock Options | Employees, consultants and non-employee board of director members
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted	531,523
Employee Stock Options | Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted	160,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Detail Textuals)	1 Months Ended	3 Months Ended
	Jun. 15, 2013USD ($)ft²	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Jan. 01, 2016USD ($)	Jan. 01, 2015USD ($)	Jun. 21, 2014USD ($)
Commitments And Contingencies [Line Items]
Area of property under operating lease | ft²	30,000
Extended operating lease for two additional period	3 years
Base rent during initial lease term per annum	$ 449,142
Total lease rental expenses		$ 144,716	$ 124,838
Chief Executive Officer | Employment Agreement
Commitments And Contingencies [Line Items]
Deferred amount of salary					$ 50,000	$ 50,000
Threshold amount of sales for two consecutive quarters						$ 3,000,000
Chief Executive Officer | Employment Agreement | Subsequent Event
Commitments And Contingencies [Line Items]
Increased amount of salary				$ 400,000

ASSET PURCHASE AGREEMENT (Detai

ASSET PURCHASE AGREEMENT (Details)	3 Months Ended
	Dec. 31, 2014USD ($)$ / shares
Business Acquisition [Line Items]
Revenue	$ 1,257,844
Net loss	$ (8,030,404)
Basic and diluted loss per share | $ / shares	$ (0.52)

ASSET PURCHASE AGREEMENT (Det31

ASSET PURCHASE AGREEMENT (Detail Textuals) - Asset Purchase Agreement - Vandalia	Sep. 11, 2015USD ($)
Business Acquisition [Line Items]
Purchase price for assets	$ 1,500,000
Amount held in escrow	500,000
Amount of indemnification claims paid	$ 350,000