Applied DNA Sciences (APDN) 10-K 6 Dec 16 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2016	Nov. 28, 2016	Mar. 31, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	APPLIED DNA SCIENCES INC
Entity Central Index Key	744,452
Trading Symbol	apdn
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding		26,351,483
Entity Public Float			$ 72
Document Type	10-K
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 4,479,274	$ 7,312,184
Accounts receivable, net of allowance of $32,965 and $7,140 at September 30, 2016 and 2015, respectively	6,374,895	3,929,517
Inventories	297,759
Prepaid expenses and other current assets	200,006	293,351
Total current assets	11,351,934	11,535,052
Property, plant and equipment, net of accumulated depreciation of $1,263,200 and $852,867 at September 30, 2016 and 2015, respectively	792,499	572,107
Other assets:
Long term accounts receivables	1,535,000	1,500,000
Deposits	61,126	62,988
Deferred offering costs	13,986
Goodwill	285,386	285,386
Intangible assets, net of accumulated amortization of $423,649 and $238,368, as of September 30, 2016 and 2015, respectively	1,525,900	1,598,779
Total Assets	15,565,831	15,554,312
Current liabilities:
Accounts payable and accrued liabilities	2,247,341	2,385,006
Deferred revenue	1,837,588	282,050
Total current liabilities	4,084,929	2,667,056
Long term accounts payable	215,500	320,400
Long term deferred revenue	900,000
Total liabilities	5,200,429	2,987,456
Commitments and contingencies
Stockholders' Equity
Preferred stock, value
Common stock, par value $0.001 per share; 500,000,000 shares authorized; 24,078,756 and 21,504,578 shares issued and outstanding as of September 30, 2016 and 2015, respectively	24,079	21,505
Additional paid in capital	234,158,711	224,186,760
Accumulated deficit	(223,817,388)	(211,641,409)
Total stockholders' equity	10,365,402	12,566,856
Total Liabilities and Stockholders' Equity	15,565,831	15,554,312
Series A Preferred stock
Stockholders' Equity
Preferred stock, value
Series B Preferred stock
Stockholders' Equity
Preferred stock, value

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Allowance on accounts receivable (in dollars)	$ 32,965	$ 7,140
Accumulated depreciation on property, plant and equipment (in dollars)	1,263,200	852,867
Accumulated amortization and impairment on intellectual property (in dollars)	$ 423,649	$ 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	24,078,756	21,504,578
Common stock, shares outstanding	24,078,756	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

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Revenues:
Product revenues	$ 2,538,202	$ 5,435,776
Service revenues	1,648,225	3,572,723
Total revenues	4,186,427	9,008,499
Cost of revenues	746,582	384,269
Operating expenses:
Selling, general and administrative	11,239,397	13,410,256
Research and development	3,693,810	2,577,307
Depreciation and amortization	706,496	490,641
Total operating expenses	15,639,703	16,478,204
LOSS FROM OPERATIONS	(12,199,858)	(7,853,974)
Other (expense) income:
Interest income (expense), net (including related party interest of $31,875 for the year ended September 30, 2015)	11,004	(23,468)
Other income (expense), net	12,875	(28,313)
Loss on conversion of Promissory notes		(980,842)
Loss on change in fair value of warrant liability		(2,994,540)
Loss before provision for income taxes	(12,175,979)	(11,881,137)
Provision for income taxes
NET LOSS	$ (12,175,979)	$ (11,881,137)
Net loss per share-basic and diluted (in dollars per share)	$ (0.51)	$ (0.63)
Weighted average shares outstanding - basic and diluted (in shares)	23,693,096	18,938,283

CONSOLIDATED STATEMENTS OF OPE5

CONSOLIDATED STATEMENTS OF OPERATIONS ( (Parentheticals)	12 Months Ended
	Sep. 30, 2015USD ($)
Income Statement [Abstract]
Related party interest expanses	$ 31,875

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY - USD ($)	Common Stock	Additional Paid in Capital	Accumulated Deficit	Total
Balance at Sep. 30, 2014	$ 13,937	$ 198,277,859	$ (199,760,272)	$ (1,468,476)
Balance (in shares) at Sep. 30, 2014	13,935,954
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other	$ 6	(6)
Other (in shares)	6,440
Exercise of warrants and options cashlessly	$ 4	(4)
Exercise of warrants and options cashlessly (in shares)	4,376
Common stock issued for consulting services	$ 41	136,240		136,281
Common stock issued for consulting services (in shares)	40,500
Shares issued in underwritten public offerings, net of offering costs	$ 6,950	18,926,364		18,933,314
Shares issued in underwritten public offerings, net of offering costs (in shares)	6,950,000
Shares and warrants issued upon conversion of promissory notes and accrued interest	$ 567	2,824,024		2,824,591
Shares and warrants issued upon conversion of promissory notes and accrued interest (in shares)	567,308
Stock based compensation expense		4,022,283		4,022,283
Net loss			(11,881,137)	(11,881,137)
Balance at Sep. 30, 2015	$ 21,505	224,186,760	(211,641,409)	$ 12,566,856
Balance (in shares) at Sep. 30, 2015	21,504,578			21,504,578
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of warrants and options cashlessly	$ 49	(49)
Exercise of warrants and options cashlessly (in shares)	48,918
Common stock issued for consulting services	$ 24	78,106		$ 78,130
Common stock issued for consulting services (in shares)	24,000			24,000
Shares issued in underwritten public offerings, net of offering costs	$ 2,500	7,850,655		$ 7,853,155
Shares issued in underwritten public offerings, net of offering costs (in shares)	2,500,000
Exercise of warrants for cash	$ 1	4,409		4,410
Exercise of warrants for cash (in shares)	1,260
Stock based compensation expense		2,038,830		2,038,830
Net loss			(12,175,979)	(12,175,979)
Balance at Sep. 30, 2016	$ 24,079	$ 234,158,711	$ (223,817,388)	$ 10,365,402
Balance (in shares) at Sep. 30, 2016	24,078,756			24,078,756

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net loss	$ (12,175,979)	$ (11,881,137)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	706,496	490,641
Stock based compensation expense	2,038,830	4,022,283
Change in fair value of warrant liability		2,994,540
Loss on sale of property, plant and equipment	5,520
Loss on conversion of promissory notes		980,842
Common stock issued for consulting services	78,130	136,281
Security deposit write-off	10,000
Provision for bad debts	116,825	34,996
Change in operating assets and liabilities:
Accounts receivable	(2,597,203)	(4,635,445)
Prepaid expenses, other current assets and deposits	16,209	(78,587)
Inventories	(297,759)	30,000
Accounts payable and accrued liabilities	(253,333)	1,241,052
Deferred revenue	2,455,537	(301,312)
Net cash used in operating activities	(9,896,727)	(6,965,846)
Cash flows used in investing activities:
Proceeds from sale of property, plant and equipment	5,500
Purchase of assets under asset purchase agreement		(1,500,000)
Purchase of intangible assets	(112,403)	(286,953)
Purchase of property, plant and equipment	(672,859)	(351,615)
Net cash used in investing activities	(779,762)	(2,138,568)
Cash flows from financing activities:
Net proceeds from sale of common stock and warrants	7,853,155	19,114,418
Proceeds from exercise of warrants	4,410
Deferred offering costs	(13,986)
Purchase and cancellation of previously issued warrants		(4,090,952)
Net cash provided by financing activities	7,843,579	15,023,466
Net (decrease) increase in cash and cash equivalents	(2,832,910)	5,919,052
Cash and cash equivalents at beginning of year	7,312,184	1,393,132
Cash and cash equivalents at end of year	4,479,274	7,312,184
Supplemental Disclosures of Cash Flow Information:
Cash paid during year for interest
Cash paid during year for income taxes
Non-cash investing and financing transactions:
Common stock and warrants issued upon conversion of promissory notes payable and accrued interest		1,843,750
Property, plant and equipment acquired, and included in accounts payable	10,767	1,500
Intangible assets acquired, and included in accounts payable		11,845
Common stock issued for cashless exercise of options	$ 49	4
Reclassification of deferred offering costs to additional paid in capital		$ 181,104

LIQUIDITY AND MANAGEMENT'S PLAN

LIQUIDITY AND MANAGEMENT'S PLAN	12 Months Ended
	Sep. 30, 2016
Liquidity And Management Plan [Abstract]
LIQUIDITY AND MANAGEMENT'S PLAN	NOTE A – LIQUIDITY AND MANAGEMENT’S PLAN The Company has recurring net losses, which have resulted in an accumulated deficit of $223,817,388 as of September 30, 2016. The Company incurred a net loss of $12,175,979 and generated negative operating cash flow of $9,896,727 for the fiscal year ended September 30, 2016. At September 30, 2016 the Company had cash and cash equivalents of $4,479,274 and working capital of $7,267,005. 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 securities. As discussed in Note J, during the fiscal year ended September 30, 2016, the Company closed on a registered direct public offering and concurrent private placement of common stock and warrants for gross proceeds of approximately $8.75 million before deducting underwriting discounts and offering expenses. In addition, on November 7, 2016, the Company closed a private placement of common stock and warrants to purchase common stock, for aggregate gross proceeds of approximately $5 million, before deducting placement agent fees and offering expenses (See Note J). The Company expects to finance operations primarily through cash received from the November 2016 private placement as well as collection of its current accounts receivables. The Company estimates that it will have sufficient cash and cash equivalents to fund operations for the next twelve months from the Balance Sheet date. 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. If revenues are not sufficient to cover the Company's operating expenses, and if the Company is not successful in obtaining the necessary additional financing, it will most likely be forced to reduce operations.

SUMMARY OF ACCOUNTING POLICIES

SUMMARY OF ACCOUNTING POLICIES	12 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
SUMMARY OF ACCOUNTING POLICIES	NOTE B – SUMMARY OF ACCOUNTING POLICIES Business and Basis of Presentation On September 16, 2002, the Company was incorporated under the laws of the State of Nevada. Effective December 17, 2008, the Company reincorporated from the State of Nevada to the State of Delaware. The Company is principally devoted to developing and marketing plant-based or other DNA technology solutions in the United States, Europe and Asia. To date, the Company has had a limited operating history with its current business model, and as a result, its operations have 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 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. Significant inter-company transactions and balances have been eliminated in consolidation. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. On October 24, 2014, the Company filed a Third Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware that effected a one-for-60 (1:60) reverse stock split of its common stock, par value $.001 per share, and a decrease in its authorized common stock, from 1,350,000,000 to 500,000,000 shares, effective October 29, 2014. All warrant, option, share, and per share information in the consolidated financial statements gives retroactive effect to a one-for-60 reverse stock split that was effected on October 29, 2014. Use of Estimates The preparation of the financial statements in conformity with Accounting Principles Generally Accepted in the U.S. ("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 complex and subjective estimates include recoverability of long-lived assets, including the values assigned to goodwill, intangible assets and property, plant and equipment, fair value calculations for warrants and stock based compensation, contingencies, anticipated collection periods for accounts receivables and allowance for doubtful accounts. 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 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 September 30, 2016 and 2015, the Company recorded total deferred revenue of $2,737,588 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 approximately $1,064,105 and $2,792,555 from these contract awards during the fiscal years ended September 30, 2016 and 2015, respectively. The Company recognizes the revenue under its memorandum of understanding (“MOU”) with LD Commodities Cotton LLC (“Dreyfus”), when the product has been shipped, as there is no right of return under this arrangement and there is a commitment from their customer to purchase the marked cotton. 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 cotton 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. On June 29, 2016, Himatsingka waived its portion of the tagging fee for up to $250,000. 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. Under the Company’s MOU with Louis Dreyfus commodities, as of September 30, 2016 and 2015 there was $4,621,345 and $2,893,400, included in short term accounts receivable, respectively. As of September 30, 2016 and 2015 there was $1,535,000 and $1,500,000 included in long-term accounts receivable, respectively. Also, as of September 30, 2016 $2,305,000 was included in deferred revenue for shipments during fiscal 2016. The cotton ginning season in the United States takes place between September and December each year, therefore, revenues from these customer contracts may be seasonal. Cash Equivalents For the purpose of the accompanying consolidated financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. Accounts Receivable The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. As the Company increases sales to its cotton customers, which have longer payment terms on certain contracts, its collection cycle may increase in future periods. The Company classifies receivable amounts as current or long-term based on expected payment and records long-term accounts receivable when the collection period is expected to be greater than one year. At September 30, 2016 and 2015, the Company has an allowance for doubtful accounts of $32,965 and $7,140, respectively. The Company writes-off receivables that are deemed uncollectible. Inventories Inventories, which consist primarily of raw materials and finished goods, are stated at the lower of cost or market, which cost determined by using the first-in, first-out (FIFO) method. Deferred offering costs Deferred offering costs consist of fees paid in relation to legal, accounting, regulatory and printing work completed in preparation of equity offerings. Deferred offering costs will be charged against the proceeds from equity offerings. At September 30, 2016 deferred offering costs were $13,986 and were reclassified to equity upon the closing of the November 7, 2016 private placement (see Note J). Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740-10”) which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes include, but not limited to, accounting for intangibles, warrants, equity based compensation and depreciation and amortization. The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all of the deferred tax asset will not be realized. During the fiscal years ended September 30, 2016 and 2015, the Company incurred losses from operations. Based upon these results and the trends in the Company’s performance projected for fiscal year 2017, it is more likely than not that the Company will not realize any benefit from the deferred tax assets recorded by the Company in previous periods. Management makes judgments as to the interpretation of tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. The Company has identified its federal tax return and its state tax return in New York as “major” tax jurisdictions. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s consolidated financial statements. The Company believes that its income tax positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to its financial position. It is the Company’s policy to accrue interest and penalties on unrecognized tax benefits as components of income tax provision. The Company did not have any accrued interest or penalties as of September 30, 2016 and 2015. Tax years 2012 through 2015 remain subject to future examination by the applicable taxing authorities. Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated using the straight line method over their estimated useful lives. The estimated useful life for computer equipment, lab equipment and furniture is 3 to 5 years and leasehold improvements are amortized over the shorter of their useful life or the lease terms. Property plant and equipment consist of: September 30, 2016 2015 Computer equipment $ 70,134 $ 43,718 Lab equipment 1,651,400 1,069,541 Furniture 44,592 44,592 Leasehold improvements 289,573 267,123 Total 2,055,699 1,424,974 Accumulated depreciation 1,263,200 852,867 Property, plant and equipment, net $ 792,499 $ 572,107 Depreciation expense for the fiscal years ended September 30, 2016 and 2015 were $452,212 and $393,750, respectively. Impairment of Long-Lived Assets The Company evaluates its long lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of long-lived assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. As of September 30, 2016 and 2015, the Company concluded that its long-lived assets were not required to be tested for recoverability. 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 years ended September 30, 2016 and 2015, common stock equivalent shares are excluded from the computation of the diluted loss per share as their effect would be anti-dilutive. Securities that could potentially dilute basic net income per share in the future that were not included in the computation of diluted net loss per share because to do so would have been antidilutive for the fiscal years ended September 30, 2016 and 2015 are as follows: 2016 2015 Warrants 7,208,060 6,027,654 Employee options 4,403,234 3,458,905 11,611,294 9,486,559 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 is estimated using the Black Scholes option-pricing model with the following assumptions: expected volatility, dividend rate, risk free interest rate and the expected life. The Company expenses stock-based compensation by using the straight-line method. In accordance with ASC 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 fiscal years ended September 30, 2016 included an aggregate of 75% from three customers of the Company’s total revenues. These three customers accounted for approximately 20% of the Company’s total accounts receivable at September 30, 2016. At September 30, 2016, one customer accounted for an aggregate of 78% of the Company’s total accounts receivable. The Company’s revenues earned from sale of products and services for the fiscal year ended September 30, 2015 included an aggregate of 79% from two customers of the Company’s total revenues. These two customers accounted for approximately 90% of the Company’s total accounts receivable at September 30, 2015. Research and Development The Company accounts for research and development costs in accordance with the ASC 730, Research and Development (“ASC 730”). Under ASC 730, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. During the fiscal years ended September 30, 2016 and 2015, the Company incurred research and development expenses of $3,693,810 and $2,577,307, respectively. Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations $245,281 and $158,373, as advertising costs for the fiscal years ended September 30, 2016 and 2015, respectively. Goodwill and Other Intangible Assets The Company amortizes its intangible assets using the straight-line method over their estimated period of benefit. All of the Company’s intangible assets, except for goodwill are subject to amortization. Goodwill and other intangible assets arise as a result of business acquisitions. Goodwill consists of the excess of the cost of the acquisitions over the tangible and intangible assets acquired and liabilities. The Company evaluates goodwill for impairment at least annually. The Company also reviews its goodwill and other intangible assets for impairment whenever events or changes in circumstances indicate that it is more likely than not their carrying amount may exceed their implied fair value. The Company quantitatively determines whether, more likely than not, the fair value exceeds the carrying amount of a reporting unit. There are numerous assumptions and estimates underlying the quantitative assessments including future earnings, long-term strategies, and the Company's annual planning and forecasts. If these planned initiatives do not accomplish the targeted objectives, the assumptions and estimates underlying the quantitative assessments could be adversely affected and have a material effect upon the Company's financial condition and results of operations. As of September 30, 2016 and 2015 goodwill and other intangible impairment assessments indicated that there was no impairment. Internally Developed Software Internally developed software products, consist of capitalized costs associated with the development of computer software to be sold, leased or otherwise marketed. Software development costs associated with new products are expensed as incurred until technological feasibility, as defined in FASB ASC Topic 985-20, has been established. Costs incurred thereafter are capitalized until the product is made generally available. The stage during the Company's development process for a new product or new release at which technological feasibility requirements are established affects the amount of costs capitalized. Annual amortization of internally developed software products is the greater of the amount computed using the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product or the straight-line method over the remaining estimated economic life of the software product, generally estimated to be 5 years from the date the product became available for general release to customers. The Company generally recognizes amortization expense for capitalized software costs using the straight-line method. Internally developed software products are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Fair Value of Financial Instruments The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related asset or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. The Company utilizes observable market inputs (quoted market prices) when measuring fair value whenever possible. Level 3 Measurements: Warrant Liability For fair value measurements categorized within Level 3 of the fair value hierarchy, the Company’s accounting and finance department, who report 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. Recently Accounting Principles In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2016-09, "Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." The objective of this update is to simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. In November 2015, the 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 expects the impact of the adoption of this pronouncement on its consolidated balance sheet to be a reclassification only, and does not expect the pronouncement to have a significant impact. In September 2015, the FASB issued ASU 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 was effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The Company does not believe that this pronouncement will have a material impact on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330) ("ASU 2015-11"). ASU 2015-11 simplifies the accounting for the valuation of all inventory not accounted for using the last-in, first-out ("LIFO") method by prescribing that inventory be valued at the lower of cost and net realizable value. ASU 2015-11 is effective for financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 on a prospective basis. The Company does not expect the adoption of ASU 2015-11 to have a material effect on its consolidated financial statements. In August 2014, FASB In June 2014, the FASB issued ASU 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 is effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2015. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-12 to have a material impact on the Company’s consolidated financial position or results of operations. In May 2014, the FASB issued ASU 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 they expect 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 ASU 2014-09 and assessing the potential effect on the Company’s consolidated financial position or results of operations.

ASSET PURCHASE AGREEMENT

ASSET PURCHASE AGREEMENT	12 Months Ended
	Sep. 30, 2016
Asset Purchase Agreement [Abstract]
ASSET PURCHASE AGREEMENT	NOTE C - ASSET PURCHASE AGREEMENT 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 (“Vandalia Asset Acquisition”). The Vandalia Assets relate to the business of producing specific, DNA sequences with the polymerase chain reaction production system known as Triathlon™, including machinery, equipment, inventory, registered and other intellectual property, including patents, trademarks, trade secrets, domain names, copyrights and rights to software, and customer contracts. The Assets also include Vandalia’s rights under a patent license agreement between Marshall University Research Corporation (“Marshall”) and Vandalia pursuant to which the Company will pay to Marshall a royalty of one percent (1%) of the net revenues received by it from the sale of the licensed product. 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 to Vandalia after sixty days. On June 30, 2016, the Company received $50,000 of the remaining funds in escrow to satisfy indeminification obligations and the balance of $100,000 was released to Vandalia. Vandalia and Derek Gregg agreed not to compete with the Company and not to solicit the Company’s employees or customers for a period of five years following the closing. Derek Gregg also entered into a consulting agreement with the Company for a term of twelve months subject to earlier termination by either party upon thirty days’ notice. Pursuant to the Asset Purchase Agreement, the Company entered into a month to month sublease with Vandalia of approximately 5,000 square feet at Vandalia’s office facility at an aggregate monthly rent of $5,416, which the Company terminated during December 2015. Purchase orders of $237,000 were assigned by Vandalia to the Company. Prior to the Vandalia Asset Acquisition, the Company was a customer of Vandalia, paying approximately $230,300 during the fiscal year ended September 30, 2014. The Company entered into this Asset Purchase Agreement in order to be able to increase its capacity for producing DNA, as well as to expand its business and product offerings. The asset purchase agreement was accounted for using the acquisition method under ASC 805, Business Combinations, which requires the acquired assets to be recorded at fair values as of the acquisition date of September 11, 2015. The following table summarizes the purchase price and the values of assets acquired: Allocation of Purchase Price: September Inventory $ 30,000 Fixed assets 36,614 Security deposit 10,000 Identifiable intangible assets: Contract in place 69,000 Intellectual property 448,000 Customer relationships 621,000 Goodwill 285,386 Fair value of assets acquired $ 1,500,000 The goodwill acquired is the result of expected synergies as well as intangible assets that did not qualify for separation. During the fiscal year ended September 30, 2015, the Company expensed $184,319 of acquisition-related legal costs. The costs are included in the line item Selling, General & Administrative costs in the accompanying consolidated statements of operations for the fiscal year ended September 30, 2015 . The amounts of revenue and net income of Vandalia included in the Company’s consolidated statements of operations for the fiscal year ended September 30, 2015 was $175,000 and $102,398, respectively. The goodwill of $285,386 is fully deductible for tax purposes.

INVENTORIES

INVENTORIES	12 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
INVENTORIES	NOTE D – INVENTORIES Inventories consist of the following: September 30, 2016 Raw materials $ 100,420 Finished goods 197,339 $ 297,759 Total

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Sep. 30, 2016
Intangible Assets, Net (Excluding Goodwill) [Abstract]
INTANGIBLE ASSETS	NOTE E – INTANGIBLE ASSETS Intangible assets at September 30, 2016 and 2015 are as follows: 2016 2015 Internally developed software (5-year useful life) $ 411,199 $ 298,797 Customer relationships (10-year useful life) 621,000 621,000 Intellectual property (5-15 years) 917,350 917,350 1,949,549 1,837,147 Less: Accumulated amortization 423,649 238,368 Intangible assets, net $ 1,525,900 $ 1,598,779 Total amortization expense charged to operations for the fiscal years ended September 30, 2016 and 2015 were $254,284 and $96,891, respectively. The following table presents the estimated amortization expense of the intangible assets for each of the five succeeding years as of September 30, 2016: Amount 2017 $ 243,177 2018 197,031 2019 149,357 2020 174,207 2021 174,207 Thereafter 587,921 Total $ 1,525,900

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	12 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	NOTE F – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities at September 30, 2016 and 2015 are as follows: 2016 2015 Accounts payable $ 1,530,258 $ 1,237,973 Accrued salaries payable 678,982 1,002,743 Other accrued expenses 38,101 144,290 Total $ 2,247,341 $ 2,385,006

PROMISSORY NOTES PAYABLE

PROMISSORY NOTES PAYABLE	12 Months Ended
	Sep. 30, 2016
Convertible Notes Payable [Abstract]
PROMISSORY NOTES PAYABLE	NOTE G – PROMISSORY NOTES PAYABLE On September 11, 2014, the Company issued and sold promissory notes (the “Notes”) in the aggregate principal amount of $1,800,000 and bearing interest at a rate of 12.5% per annum to Dr. James A. Hayward, the Company’s President, Chairman and Chief Executive Officer, in the amount of $1,000,000, and to another individual, in the amount of $800,000, both of whom are “accredited investors” as defined in regulations promulgated under the Securities Act of 1933, as amended (the “Securities Act”). The Notes had a ten-month maturity. Interest was payable in cash or in shares of common stock at the option of the holders of the Notes. Interest to be paid in shares was to be paid in shares of common stock equal to (i) the amount of interest payable, divided by (ii) the average of the closing prices for the five consecutive trading days immediately preceding the applicable interest date. The Notes were permitted to be prepaid in whole or in part, at any time, subject to certain prepayment penalties. Upon an event of default, the Notes and all accrued interest thereon were to automatically convert into common stock at the closing price of the common stock on the date of issuance of the Notes. In the event of a consolidation or merger with another corporation in which the Company does not survive, the Notes were to be paid in full. On November 11, 2014, Dr. Hayward and the other individual agreed to exchange for cancellation their respective Notes (including principal and accrued interest thereon) for 315,171 shares of common stock and warrants to purchase 315,171 shares of common stock, in the case of Dr. Hayward, and 252,137 shares of common stock and warrants to purchase 252,137 shares of common stock, in the case of the other individual, at $3.25 ($3.24 for one share of common stock and $0.01 for one warrant) (“combined price”) , the aggregate public offering per share price of common stock and warrants issued in the Company’s underwritten public offering, which closed on November 20, 2014. The conversion of the Notes resulted in a loss on conversion of approximately $981,000, which was recorded on the consolidated statement of operations for the fiscal year ended September 30, 2015. The loss was calculated as the difference between the carrying amount of the promissory note and accrued interest on the conversion date compared to the fair value of the common stock and warrants issued as settlement of the Notes. Interest expense for these Notes was $31,875 for the fiscal year ended September 30, 2015.

WARRANT LIABILITY

WARRANT LIABILITY	12 Months Ended
	Sep. 30, 2016
Warrant Liability [Abstract]
WARRANT LIABILITY	NOTE H– WARRANT LIABILITY On December 16, 2013, Crede CG III, Ltd (“Crede”) effected the cashless exercise of 178,253 Series A Warrants and 116,667 Series B Warrants. At December 16, 2013 (date of exercise), the Company determined the fair value of the Warrants to be $2,455,042 using the Binomial Lattice model with the following assumptions: fair value of the Company’s common stock $10.80 per share; dividend yield 0%; expected term: 4.55 years; risk free interest rate: 1.55%; expected volatility of: 118.89%; and an exercise price of $14.59. The Series A and Series B Warrants were classified as liabilities on the issuance date due to certain provisions contained in the warrant agreements, which may cause an adjustment to the conversion rate or the number of warrants outstanding. On October 28, 2014, the Company entered into a warrant repurchase option agreement with Crede, pursuant to which it had the option to purchase between 50% and 100% of Crede’s Series B Warrant (then exercisable for 387,621 shares of common stock) at a purchase price of $10.55 per share underlying such Series B Warrant (up to an aggregate purchase price of $4,091,000 for all of the Series B Warrant). On November 21, 2014, the Company exercised its option and repurchased 100% of Crede’s Series B Warrant for an aggregate purchase price of approximately $4,091,000. The change in fair value of the warrant liability on the day of repurchase amounted to a loss of $2,994,540 and was included in other income (expense) for the fiscal year ended September 30, 2015.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE I– RELATED PARTY TRANSACTIONS As discussed in Note G, on September 11, 2014, the Company issued and sold a promissory note in the aggregate principal amount of $1,000,000 and bearing interest at a rate of 12.5% per annum to Dr. James A. Hayward, the Company’s President, Chairman and Chief Executive Officer. On November 11, 2014, Dr. Hayward agreed to exchange for cancellation of his Note (including principal and accrued interest thereon) for 315,171 shares of common stock and warrants to purchase 315,171 shares of common stock, at a combined price of $3.25, the aggregate public offering price of common stock and warrants issued in the Company’s underwritten public offering which closed on November 20, 2014. As discussed in Note J, the Company’s Chief Executive Officer and an affiliated company of a member of the Company’s board of directors participated in the Company’s November 20, 2014 underwritten public offering.

CAPITAL STOCK

CAPITAL STOCK	12 Months Ended
	Sep. 30, 2016
Stockholders' Equity Note [Abstract]
CAPITAL STOCK	NOTE J – CAPITAL STOCK Common Stock Transactions during and subsequent to the Fiscal Year Ended September 30, 2016: On November 2, 2016, the Company entered into a securities purchase agreement with an institutional investor providing for the purchase of $5 million of common stock and warrants at a combined price of $2.20 per share of common stock and warrant (the “Private Placement”). In the Private Placement, the Company sold 2,272,727 shares of its common stock and warrants to purchase 2,272,727 shares of its common stock. The warrants have the same terms as the Company's existing publicly traded warrants with an exercise price of $3.50 per share and an expiration date of November 20, 2019. The offering closed on November 7, 2016. The Company has agreed to file a registration statement providing for the resale of these securities on Form S-3 by December 7, 2016. Upon effectiveness of the registration statement, it is expected that the common stock and warrants issued in the Private Placement will be freely tradeable on The NASDAQ Capital Market under the symbols "APDN" and "APDNW", respectively. The aggregate gross proceeds to the Company from the Private Placement were $5 million before deducting the placement agents' fee and other offering expenses. In connection with the closing of this Private Placement, as partial compensation, on November 7, 2016, the Company granted warrants to purchase an aggregate of 68,182 shares of its common stock to the Company's placement agents, Maxim Group LLC and Imperial Capital LLC (the “Placement Agent Warrants”) at an exercise price of $2.53 (115% of the public offering price), subject to adjustment as set forth therein (including for stock dividends and splits and certain other distributions and “Fundamental Transactions,” as defined therein). The Placement Agent Warrants will be exercisable beginning six months following the closing date of the Private Placement and terminate at 5:00 P.M. (Eastern Standard Time) on November 7, 2021. In addition, the Placement Agent Warrants provide for cashless exercise, which the Placement Agents may elect if there is no effective registration statement registering the resale of the shares issuable upon exercise of the Placement Agent Warrants. The number of shares of common stock that may be acquired by the Placement Agents upon any exercise of the Placement Agent Warrants (or otherwise in respect hereof) shall be limited to the extent necessary to insure that, following such exercise, the total number of shares of common stock then beneficially owned by the Placement Agent and its Affiliates (as defined therein) and any other Persons whose beneficial ownership of common stock would be aggregated with the Placement Agent pursuant to the Exchange Act, does not exceed 9.99% of the total number of issued and outstanding shares of common 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 were 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 gross proceeds to the Company from this registered direct offering and private placement before deducting the placement agent fees and offering expenses, is $8.75 million. In connection with the closing of the registered direct 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 $4.03 (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. During the fiscal year ended September 30, 2016, the Company granted 24,000 shares of common stock to consultants for a total expense of approximately $78,130 pursuant to the Company's 2005 Incentive Stock Plan. Common Stock Transactions during the Fiscal Year Ended September 30, 2015: On October 24, 2014, the Company filed a Third Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware that effected a one-for-60 (1:60) reverse stock split of its common stock, par value $.001 per share, and a decrease in its authorized common stock, from 1,350,000,000 to 500,000,000 shares, effective October 29, 2014. All warrant, option, share, and per share information in the consolidated financial statements gives retroactive effect to the one-for-60 reverse stock split that was effected on October 29, 2014. On November 20, 2014, the Company closed its underwritten public offering of 2,800,000 shares of common stock and warrants to purchase up to an aggregate of 2,800,000 shares of common stock for gross proceeds of $9.1 million before deducting underwriting discounts and offering expenses. The Company utilized $4,091,000 of the gross proceeds to repurchase the remaining Series B Warrants from Crede, as discussed in Note H. The combined price for each share of common stock and one warrant was $3.25. The warrants may be exercised for a period of five years and have an exercise price of $3.50 per share. In connection with the offering, the Company granted to the underwriters a 45-day option to purchase up to 420,000 additional shares of common stock at $3.24 per share and/or up to 420,000 additional warrants at $0.01 per share to cover over-allotments, if any. The Company’s Chief Executive Officer and an affiliated company of a member of the Company’s board of directors participated in this underwritten public offering. The Company’s common stock and warrants are listed on the Nasdaq Capital Market under the symbols “APDN” and “APDNW”, respectively. On December 19, 2014, the Company closed on the underwriters’ exercise of its over-allotment option of 416,850 warrants for gross proceeds of $4,169 and on December 30, 2014, the Company closed on the underwriters’ additional exercise of its over-allotment option of 52,000 shares of common stock for gross proceeds of $168,480. The total number of common stock and warrants issued under this offering, including the exercise of the over-allotment option was 2,852,000 and 3,216,850, respectively. The gross proceeds to the Company was $9.3 million and net proceeds after deducting underwriting discounts, offering expenses and the repurchase of the remaining Series B Warrants from Crede was approximately $3.69 million. In connection with the closing of this underwritten public offering, on November 20, 2014, the Company granted 128,800 warrants to purchase common stock to its underwriters as partial compensation. These warrants have an exercise price of $3.73 (115% of the public offering price) and expire on November 14, 2019. See Note G for the common stock and warrants issued in connection with the conversion of the promissory notes. During the fiscal year ended September 30, 2015, the Company granted 40,500 shares of common stock to consultants for a total expense of approximately $136,281 pursuant to the Company's 2005 Incentive Stock Plan. On April 1, 2015, the Company closed its underwritten public offering of 4,011,000 shares of common stock and warrants to purchase up to an aggregate of 1,604,400 shares of common stock, at $3.00 ($2.99 for one share of common stock and $0.01 for one warrant) (“combined offering price”), including 191,000 shares and 76,400 warrants sold pursuant to the partial exercise of the underwriters’ over-allotment option. The warrants have a per share exercise price of $3.50, are exercisable immediately, and expire on November 20, 2019. The gross proceeds to the Company from this offering, including the partial exercise of the over-allotment option but before deducting the underwriting discount and offering expenses, were $12.0 million. In connection with the offering, the Company granted to the underwriters a 45-day option to purchase up to 573,000 additional shares of common stock and up to 229,200 additional warrants to cover over-allotments, if any. On April 30, 2015, the Company closed on the underwriters’ exercise of its over-allotment option of 87,000 shares of common stock and 152,800 warrants for gross proceeds of $263,950. In connection with the closing of this underwritten public offering, as partial compensation, on April 1, 2015, the Company granted up to 163,720 warrants to purchase common stock to its underwriters. These warrants have an exercise price of $3.44 (115% of the public offering price) and expire on March 27, 2020.

STOCK OPTIONS AND WARRANTS

STOCK OPTIONS AND WARRANTS	12 Months Ended
	Sep. 30, 2016
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
STOCK OPTIONS AND WARRANTS	NOTE K– STOCK OPTIONS AND WARRANTS Warrants The following table summarizes the changes in warrants outstanding. These warrants were granted in lieu of cash compensation for services performed or financing expenses in connection with the sales of the Company’s common stock. Transactions involving warrants (see Note J) are summarized as follows: Number of Weighted Average Balance at October 1, 2015 6,027,654 $ 3.54 Granted 1,300,000 4.29 Exercised (1,260 ) (3.50 ) Cancelled or expired (118,334 ) (5.58 ) Balance, September 30, 2016 7,208,060 $ 3.64 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 8,333,333 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 our success with an award of options to purchase shares of common stock. As of September 30, 2016, a total of 275,752 shares have been issued and options to purchase 4,925,357 shares have been granted under the Incentive Plan. The following table summarizes the changes in options outstanding and the related prices for the shares of the Company’s common stock issued to employees of the Company under the 2005 Incentive Stock Plan as of September 30, 2016: Exercise Number Weighted Average Weighted Number Exercisable $ 2.59 41,667 3.50 $ 2.59 41,667 $ 2.59 $ 2.66 4,584 3.58 $ 2.66 1,146 $ 2.66 $ 2.69 83,334 3.14 $ 2.69 83,334 $ 2.69 $ 2.78 8,750 9.37 $ 2.78 3,125 $ 2.78 $ 2.81 500,000 9.60 $ 2.81 - $ - $ 2.85 1,667 3.31 $ 2.85 417 $ 2.85 $ 2.86 690,008 7.64 $ 2.86 690,008 $ 2.86 $ 2.96 50,000 9.60 $ 2.96 - $ - $ 2.99 489,523 9.23 $ 2.99 - $ - $ 3.00 1,000 9.90 $ 3.00 - $ - $ 3.06 5,000 9.77 $ 3.06 - $ - $ 3.18 2,000 9.81 $ 3.18 - $ - $ 3.20 17,668 9.92 $ 3.20 16,668 $ 3.20 $ 3.24 5,000 9.25 $ 3.24 - $ - $ 3.45 30,000 8.38 $ 3.45 7,500 $ 3.45 $ 3.48 2,500 8.95 $ 3.48 625 $ 3.48 $ 3.51 666,667 1.78 $ 3.51 666,667 $ 3.51 $ 3.60 333,334 3.75 $ 3.60 333,334 $ 3.60 $ 3.90 10,581 0.18 $ 3.90 10,581 $ 3.90 $ 3.92 3,000 9.12 $ 3.92 - $ - $ 4.08 79,500 0.81 $ 4.08 79,500 $ 4.08 $ 4.20 20,834 1.98 $ 4.20 20,834 $ 4.20 $ 4.91 10,000 9.01 $ 4.91 10,000 $ 4.91 $ 5.31 116,561 1.54 $ 5.31 74,948 $ 5.31 $ 5.82 946,300 2.06 $ 5.82 504,633 $ 5.82 $ 6.00 8,334 2.97 $ 6.00 8,334 $ 6.00 $ 6.60 123,338 2.16 $ 6.60 123,338 $ 6.60 $ 6.89 4,167 2.58 $ 6.89 2,084 $ 6.89 $ 6.96 4,167 2.16 $ 6.96 2,084 $ 6.96 $ 7.02 33,334 2.17 $ 7.02 16,666 $ 7.02 $ 8.16 32,091 2.50 $ 8.16 32,091 $ 8.16 $ 9.60 41,667 2.35 $ 9.60 41,667 $ 9.60 $ 10.79 34,991 1.55 $ 10.79 34,991 $ 10.79 $ 12.00 1,667 1.61 $ 12.00 1,250 $ 12.00 4,403,234 4.90 $ 4.08 2,807,492 $ 4.22 Transactions involving stock options issued to employees are summarized as follows: Number of Weighted Average Aggregate Weighted Average Contractual Life (years) Outstanding at October 1, 2015 3,458,905 $ 4.42 Granted 1,115,941 2.93 Exercised (80,334 ) 2.86 Cancelled or expired (91,278 ) 4.04 Outstanding at September 30, 2016 4,403,234 $ 4. 08 Vested at September 30, 2016 2,807,492 4.22 $ 540,606 3.52 Non-vested at September 30, 2016 1,595,742 $ 615,810 7.06 The aggregate intrinsic value for options exercised during the fiscal years ended September 30, 2016 and 2015 was $50,110 and $308, respectively. For the fiscal year ended September 30, 2016, the Company issued an aggregate of 1,115,941 options to employees, non-employee board of director members, members of the strategic advisory board and consultants. Included in these grants was 160,000 options granted to executives and 500,000 performance based options granted to an employee during May 2016. The performance based options vest in tranches as certain performance conditions are met by the employee. None of these performance based options were vested as of September 30, 2016. For the fiscal year ended September 30, 2015, the Company issued 952,594 options to employees, consultants and non-employee board of director members. Included in these grants was 450,000 options granted to executives. The fair value of options granted during the fiscal years ended September 30, 2016 and 2015 was determined using the Black Scholes Option Pricing Model. For the purposes of the valuation model, the Company used the simplified method for determining the granted options expected lives. The simplified method is used since the Company does not have adequate historical data to utilize in calculating the expected term of options. The fair value for options granted was calculated using the following weighted average assumptions: 2016 2015 Stock price $ 3.05 $ 2.85 Exercise price $ 2.93 $ 2.85 Expected term 7.89 5.12 Dividend yield - - Volatility 135 % 133 % Risk free rate 1.8 % 1.7 % The Company recorded $2,038,830 and $4,022,283 as stock compensation expense for fiscal years ended September 30, 2016 and 2015, respectively. Included in this amount is $37,342 and $676,175 for the fiscal years ended September 30, 2016 and 2015, respectively for employee stock option modifications. These modifications extended the term of the option for an employee in fiscal 2016 and extended the terms of the options for three former employees and two executive officers in fiscal 2015. As of September 30, 2016, unrecorded compensation cost related to non-vested awards was $3,565,086, which is expected to be recognized over a weighted average period of approximately 4.97 years. The weighted average grant date fair value per share for options granted during the fiscal years ended September 30, 2016 and 2015 was $2.84 and $2.49, respectively.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE L– INCOME TAXES The income tax provision (benefit) for the fiscal years ended September 30, 2016 and 2015 consists of the following: 2016 2015 Federal: Current $ - - Deferred (3,780,000 ) 13,924,000 (3,780,000 ) 13,924,000 State and local: Current - - Deferred (1,302,000 ) (70,000 ) (1,302,000 ) (70,000 ) Change in valuation allowance 5,082,000 (13,854,000 ) Income tax provision (benefit) $ - - The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S statutory rate to losses before income tax expense for the years ended September 30, 2016 and 2015 as follows: 2016 2015 Statutory federal income tax rate 34.00 % 34.00 % Statutory state and local income tax rate (1%, as of September 30, 2016 and 2015), net of federal benefit 7.72 % 0.59 % Stock based compensation (2.33 %) (8.34 %) Other permanent differences 0.72 % (4.94 %) Effect of change in deferred tax rate 2.01 % 4.15 % Warrant liability - (33.78 %) Adjustment to state tax credits 0.41 % - Adjustment to depreciation and amortization 1.09 % (16.28 %) Adjustment to stock based compensation (2.43 %) (30,73 %) Adjustment of prior years’ NOLs 0.55 % (61.28 %) Change in valuation allowance (41.74 %) 116.61 % Effective tax rate 0.00 % 0.00 % Deferred income taxes result from temporary differences in the recognition of income and expenses for financial reporting purposes and for tax purposes. The tax effect of these temporary differences representing deferred tax asset and liabilities result principally from the following: September 30, 2016 2015 Deferred tax assets (liabilities): Stock based compensation $ 2,025,000 $ 1,961,000 Depreciation and amortization 351,000 35,000 Amortization of debt discount 16,269,000 16,055,000 Net operating loss carry forward 12,713,000 8,199,000 Tax credits 221,000 86,000 Other 105,000 266,000 Less: valuation allowance (31,684,000 ) (26,602,000 ) Net deferred tax asset $ - $ - As of September 30, 2016, the Company has approximately $33,920,000 of Federal and $45,229,000 of State net operating loss “NOL” carryforwards available which begin to expire after 2022. Pursuant to Internal Revenue Code Section 382, the Company’s ability to utilize the NOLs is subject to certain limitations due to changes in stock ownership in prior years. The annual limitation ranges between $786,000 and $1,103,000 and any unused amounts can be carried forward to subsequent years. The Company has provided a full valuation allowance against all of the net deferred tax assets based on management’s determination that it is more likely than not that the net deferred tax assets will not be realized in the future. The valuation allowance increased by $5,082,000. Based on a study of Section 382 of the Internal Revenue Code conducted by the Company at September 30, 2015, deferred tax asset related to net operating loss carryforward is decreased by $21,118,000 and the state NOL is decreased by $20,796,000 at September 30, 2015. A similar study was performed at September 30, 2016, which resulted in no change. The Company has Federal research and development credits of approximately $172,000 that will expire after 2034. The Company also has state investment tax credits of $49,000 that will expire after 2029.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE M – COMMITMENTS AND CONTINGENCIES Operating leases The Company leases office space under an operating lease in Stony Brook, New York for its corporate headquarters. The lease is for a 30,000 square foot building. The term of the lease commenced on June 15, 2013 and expired on May 31, 2016, with the option to extend the lease for two additional three-year periods. The Company has exercised its option to extend the lease for one additional three-year period, ended May 31, 2019. The base rent during the additional three-year period is $458,098 per annum. In addition to the office space, the Company also has 1,500 square feet of laboratory space. The term of the lease commenced on November 1, 2015 and expires on October 31, 2017. The Company also has an operating lease for a laboratory Huddersfield, England, which is currently inactive and in Calverton, New York. The Calverton lease was from February 1, 2014 through October 31, 2014 , Future minimum rental payments (excluding real estate tax and maintenance costs) as of September 30, 2016 are as follows: For the year ending September 30, 2017 $ 513,277 2018 462,717 2019 305,399 Total $ 1,281,393 Employment and Consulting Agreements Employment agreements On July 11, 2011, the Company’s Board of Directors approved the terms of employment for Dr. James A. Hayward, the Company’s Chief Executive Officer (“CEO”). Dr. Hayward’s employment agreement provides that Dr. Hayward will be the Company’s CEO, and will continue to serve on the Company’s Board of Directors. The initial term of his employment was from July 1, 2011 through June 30, 2014, which automatically renews for one-year periods subject to ninety days’ prior notice of non-renewal by either party. On July 28, 2016, a new employment agreement was entered into with the Chief Executive Officer effective July 1, 2016. The initial term is from July 1, 2016 through June 30, 2017, with automatic one-year renewal periods. The terms of the agreement are substantially the same as his original agreement, except a cash incentive bonus was modified. Under the new agreement, Dr. Hayward will be eligible for a special cash incentive bonus of up to $800,000, $300,000 of which is payable if and when annual revenue reaches $8 million and $100,000 of which would be payable for each $2 million of annual revenue in excess of $8 million. Pursuant to the contract, Dr. Hayward’s annual salary is $400,000. The Board of Directors, acting in its discretion, may grant annual bonuses to Dr. Hayward. Dr. Hayward will be entitled to certain benefits and perquisites and will be eligible to participate in retirement, welfare and incentive plans available to the Company’s other employees. The agreement with Dr. Hayward also provides that if he is terminated before the end of the initial or a renewal term by us without cause or if Dr. Hayward terminates his employment for good reason, then, in addition to previously earned and unpaid salary, bonus and benefits, and subject to the delivery of a general release and continuing compliance with restrictive covenants, Dr. Hayward will be entitled to receive a pro rata portion of the greater of either (X) the annual bonus he would have received if employment had continued through the end of the year of termination or (Y) the prior year’s bonus; salary continuation payments for two years following termination equal to the greater of (i) three times base salary or (ii) two times base salary plus bonus; company-paid COBRA continuation coverage for 18 months post-termination; continuing life insurance benefits (if any) for two years; and extended exercisability of outstanding vested options (for three years from termination date or, if earlier, the expiration of the fixed option term). If termination of employment as described above occurs within six months before or two years after a change in control of the Company, then, in addition to the above payments and benefits, all of Dr. Hayward’s outstanding options and other equity incentive awards will become fully vested and Dr. Hayward will receive a lump sum payment of the amounts that would otherwise be paid as salary continuation. In general, a change in control will include a 30% or more change in ownership of the Company. Upon termination due to death or disability, Dr. Hayward 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. Effective May 7, 2016, the Chief Executive Officer's annual salary was voluntarily reduced by $100,000. Accordingly, his current annual base salary as of September 30, 2016 is $300,000. 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.

FAIR VALUE

FAIR VALUE	12 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE	NOTE N– FAIR VALUE The carrying value of cash, accounts receivable, accounts payable and accrued expenses approximate estimated fair values because of their short maturities. The carrying value of the warrant liability is determined using the Binomial Lattice model option pricing model as described in Note H. Certain assumptions used in the calculation of the warrants liability represent level-3 unobservable inputs. The Company did not have any assets or liabilities categorized as Level 1 or 2 as of September 30, 2016. The following table summarizes the activity of Level 3 inputs measured on a recurring basis: Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3) Fair Value Measurements of Derivative Warrant Liability Using Significant Unobservable Inputs (Level 3) Year Ended September 30, 2015 Balance at October 1, 2014 $ 1,096,412 Adjustment resulting from change in value recognized in earnings (a) 2,994,540 Reclassification of warrant upon repurchase (4,090,952 ) Reclassification to equity upon exercise - Balance at September 30, 2015 $ - (a) Adjustment resulting from change in fair value

GEOGRAPHIC AREA INFORMATION

GEOGRAPHIC AREA INFORMATION	12 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
GEOGRAPHIC AREA INFORMATION	NOTE O– GEOGRAPHIC AREA INFORMATION Net revenues by geographic location of customers are as follows: Year Ended September 30, 2016 2015 United States $ 3,177,792 $ 7,817,037 Europe 876,790 920,267 Asia and other 131,845 271,195 Total $ 4,186,427 $ 9,008,499

SUMMARY OF ACCOUNTING POLICIES

SUMMARY OF ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Business and Basis of Presentation	Business and Basis of Presentation On September 16, 2002, the Company was incorporated under the laws of the State of Nevada. Effective December 17, 2008, the Company reincorporated from the State of Nevada to the State of Delaware. The Company is principally devoted to developing and marketing plant-based or other DNA technology solutions in the United States, Europe and Asia. To date, the Company has had a limited operating history with its current business model, and as a result, its operations have 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 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. Significant inter-company transactions and balances have been eliminated in consolidation. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. On October 24, 2014, the Company filed a Third Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware that effected a one-for-60 (1:60) reverse stock split of its common stock, par value $.001 per share, and a decrease in its authorized common stock, from 1,350,000,000 to 500,000,000 shares, effective October 29, 2014. All warrant, option, share, and per share information in the consolidated financial statements gives retroactive effect to a one-for-60 reverse stock split that was effected on October 29, 2014.
Use of Estimates	Use of Estimates The preparation of the financial statements in conformity with Accounting Principles Generally Accepted in the U.S. ("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 complex and subjective estimates include recoverability of long-lived assets, including the values assigned to goodwill, intangible assets and property, plant and equipment, fair value calculations for warrants and stock based compensation, contingencies, anticipated collection periods for accounts receivables and allowance for doubtful accounts. 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 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 September 30, 2016 and 2015, the Company recorded total deferred revenue of $2,737,588 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 approximately $1,064,105 and $2,792,555 from these contract awards during the fiscal years ended September 30, 2016 and 2015, respectively. The Company recognizes the revenue under its memorandum of understanding (“MOU”) with LD Commodities Cotton LLC (“Dreyfus”), when the product has been shipped, as there is no right of return under this arrangement and there is a commitment from their customer to purchase the marked cotton. 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 cotton 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. On June 29, 2016, Himatsingka waived its portion of the tagging fee for up to $250,000. 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. Under the Company’s MOU with Louis Dreyfus commodities, as of September 30, 2016 and 2015 there was $4,621,345 and $2,893,400, included in short term accounts receivable, respectively. As of September 30, 2016 and 2015 there was $1,535,000 and $1,500,000 included in long-term accounts receivable, respectively. Also, as of September 30, 2016 $2,305,000 was included in deferred revenue for shipments during fiscal 2016. The cotton ginning season in the United States takes place between September and December each year, therefore, revenues from these customer contracts may be seasonal.
Cash Equivalents	Cash Equivalents For the purpose of the accompanying consolidated financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents.
Accounts Receivable	Accounts Receivable The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. As the Company increases sales to its cotton customers, which have longer payment terms on certain contracts, its collection cycle may increase in future periods. The Company classifies receivable amounts as current or long-term based on expected payment and records long-term accounts receivable when the collection period is expected to be greater than one year. At September 30, 2016 and 2015, the Company has an allowance for doubtful accounts of $32,965 and $7,140, respectively. The Company writes-off receivables that are deemed uncollectible.
Inventories	Inventories Inventories, which consist primarily of raw materials and finished goods, are stated at the lower of cost or market, which cost determined by using the first-in, first-out (FIFO) method.
Deferred offering costs	Deferred offering costs Deferred offering costs consist of fees paid in relation to legal, accounting, regulatory and printing work completed in preparation of equity offerings. Deferred offering costs will be charged against the proceeds from equity offerings. At September 30, 2016 deferred offering costs were $13,986 and were reclassified to equity upon the closing of the November 7, 2016 private placement (see Note J).
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740-10”) which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes include, but not limited to, accounting for intangibles, warrants, equity based compensation and depreciation and amortization. The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all of the deferred tax asset will not be realized. During the fiscal years ended September 30, 2016 and 2015, the Company incurred losses from operations. Based upon these results and the trends in the Company’s performance projected for fiscal year 2017, it is more likely than not that the Company will not realize any benefit from the deferred tax assets recorded by the Company in previous periods. Management makes judgments as to the interpretation of tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. The Company has identified its federal tax return and its state tax return in New York as “major” tax jurisdictions. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s consolidated financial statements. The Company believes that its income tax positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to its financial position. It is the Company’s policy to accrue interest and penalties on unrecognized tax benefits as components of income tax provision. The Company did not have any accrued interest or penalties as of September 30, 2016 and 2015. Tax years 2012 through 2015 remain subject to future examination by the applicable taxing authorities.
Property Plant and Equipment	Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated using the straight line method over their estimated useful lives. The estimated useful life for computer equipment, lab equipment and furniture is 3 to 5 years and leasehold improvements are amortized over the shorter of their useful life or the lease terms. Property plant and equipment consist of: September 30, 2016 2015 Computer equipment $ 70,134 $ 43,718 Lab equipment 1,651,400 1,069,541 Furniture 44,592 44,592 Leasehold improvements 289,573 267,123 Total 2,055,699 1,424,974 Accumulated depreciation 1,263,200 852,867 Property, plant and equipment, net $ 792,499 $ 572,107 Depreciation expense for the fiscal years ended September 30, 2016 and 2015 were $452,212 and $393,750, respectively.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company evaluates its long lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of long-lived assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. As of September 30, 2016 and 2015, the Company concluded that its long-lived assets were not required to be tested for recoverability.
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 years ended September 30, 2016 and 2015, common stock equivalent shares are excluded from the computation of the diluted loss per share as their effect would be anti-dilutive. Securities that could potentially dilute basic net income per share in the future that were not included in the computation of diluted net loss per share because to do so would have been antidilutive for the fiscal years ended September 30, 2016 and 2015 are as follows: 2016 2015 Warrants 7,208,060 6,027,654 Employee options 4,403,234 3,458,905 11,611,294 9,486,559
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 is estimated using the Black Scholes option-pricing model with the following assumptions: expected volatility, dividend rate, risk free interest rate and the expected life. The Company expenses stock-based compensation by using the straight-line method. In accordance with ASC 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 fiscal years ended September 30, 2016 included an aggregate of 75% from three customers of the Company’s total revenues. These three customers accounted for approximately 20% of the Company’s total accounts receivable at September 30, 2016. At September 30, 2016, one customer accounted for an aggregate of 78% of the Company’s total accounts receivable. The Company’s revenues earned from sale of products and services for the fiscal year ended September 30, 2015 included an aggregate of 79% from two customers of the Company’s total revenues. These two customers accounted for approximately 90% of the Company’s total accounts receivable at September 30, 2015.
Research and Development	Research and Development The Company accounts for research and development costs in accordance with the ASC 730, Research and Development (“ASC 730”). Under ASC 730, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. During the fiscal years ended September 30, 2016 and 2015, the Company incurred research and development expenses of $3,693,810 and $2,577,307, respectively.
Advertising	Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations $245,281 and $158,373, as advertising costs for the fiscal years ended September 30, 2016 and 2015, respectively.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets The Company amortizes its intangible assets using the straight-line method over their estimated period of benefit. All of the Company’s intangible assets, except for goodwill are subject to amortization. Goodwill and other intangible assets arise as a result of business acquisitions. Goodwill consists of the excess of the cost of the acquisitions over the tangible and intangible assets acquired and liabilities. The Company evaluates goodwill for impairment at least annually. The Company also reviews its goodwill and other intangible assets for impairment whenever events or changes in circumstances indicate that it is more likely than not their carrying amount may exceed their implied fair value. The Company quantitatively determines whether, more likely than not, the fair value exceeds the carrying amount of a reporting unit. There are numerous assumptions and estimates underlying the quantitative assessments including future earnings, long-term strategies, and the Company's annual planning and forecasts. If these planned initiatives do not accomplish the targeted objectives, the assumptions and estimates underlying the quantitative assessments could be adversely affected and have a material effect upon the Company's financial condition and results of operations. As of September 30, 2016 and 2015 goodwill and other intangible impairment assessments indicated that there was no impairment.
Internally Developed Software	Internally Developed Software Internally developed software products, consist of capitalized costs associated with the development of computer software to be sold, leased or otherwise marketed. Software development costs associated with new products are expensed as incurred until technological feasibility, as defined in FASB ASC Topic 985-20, has been established. Costs incurred thereafter are capitalized until the product is made generally available. The stage during the Company's development process for a new product or new release at which technological feasibility requirements are established affects the amount of costs capitalized. Annual amortization of internally developed software products is the greater of the amount computed using the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product or the straight-line method over the remaining estimated economic life of the software product, generally estimated to be 5 years from the date the product became available for general release to customers. The Company generally recognizes amortization expense for capitalized software costs using the straight-line method. Internally developed software products are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related asset or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. The Company utilizes observable market inputs (quoted market prices) when measuring fair value whenever possible. Level 3 Measurements: Warrant Liability For fair value measurements categorized within Level 3 of the fair value hierarchy, the Company’s accounting and finance department, who report 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.
Recently Accounting Principles	Recently Accounting Principles In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2016-09, "Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." The objective of this update is to simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. In November 2015, the 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 expects the impact of the adoption of this pronouncement on its consolidated balance sheet to be a reclassification only, and does not expect the pronouncement to have a significant impact. In September 2015, the FASB issued ASU 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 was effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The Company does not believe that this pronouncement will have a material impact on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330) ("ASU 2015-11"). ASU 2015-11 simplifies the accounting for the valuation of all inventory not accounted for using the last-in, first-out ("LIFO") method by prescribing that inventory be valued at the lower of cost and net realizable value. ASU 2015-11 is effective for financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 on a prospective basis. The Company does not expect the adoption of ASU 2015-11 to have a material effect on its consolidated financial statements. In August 2014, FASB In June 2014, the FASB issued ASU 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 is effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2015. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-12 to have a material impact on the Company’s consolidated financial position or results of operations. In May 2014, the FASB issued ASU 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 they expect 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 ASU 2014-09 and assessing the potential effect on the Company’s consolidated financial position or results of operations.

SUMMARY OF ACCOUNTING POLICIE24

SUMMARY OF ACCOUNTING POLICIES (Tables)	12 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Schedule of property, plant and equipment	September 30, 2016 2015 Computer equipment $ 70,134 $ 43,718 Lab equipment 1,651,400 1,069,541 Furniture 44,592 44,592 Leasehold improvements 289,573 267,123 Total 2,055,699 1,424,974 Accumulated depreciation 1,263,200 852,867 Property, plant and equipment, net $ 792,499 $ 572,107
Schedule of summary of potential stock issuances under various options, and warrants that could have a dilutive effect on the shares outstanding	2016 2015 Warrants 7,208,060 6,027,654 Employee options 4,403,234 3,458,905 11,611,294 9,486,559

ASSET PURCHASE AGREEMENT (Table

ASSET PURCHASE AGREEMENT (Tables)	12 Months Ended
	Sep. 30, 2016
Asset Purchase Agreement [Abstract]
Schedule of purchase price and values of assets acquired	Allocation of Purchase Price: September Inventory $ 30,000 Fixed assets 36,614 Security deposit 10,000 Identifiable intangible assets: Contract in place 69,000 Intellectual property 448,000 Customer relationships 621,000 Goodwill 285,386 Fair value of assets acquired $ 1,500,000

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Schedule of inventories	September 30, 2016 Raw materials $ 100,420 Finished goods 197,339 $ 297,759 Total

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Sep. 30, 2016
Intangible Assets Disclosure [Abstract]
Schedule of intangible assets acquired and their carrying values	2016 2015 Internally developed software (5-year useful life) $ 411,199 $ 298,797 Customer relationships (10-year useful life) 621,000 621,000 Intellectual property (5-15 years) 917,350 917,350 1,949,549 1,837,147 Less: Accumulated amortization 423,649 238,368 Intangible assets, net $ 1,525,900 $ 1,598,779
Schedule of estimated amortization expense of the intangible assets for each of the five succeeding years	Amount 2017 $ 243,177 2018 197,031 2019 149,357 2020 174,207 2021 174,207 Thereafter 587,921 Total $ 1,525,900

ACCOUNTS PAYABLE AND ACCRUED 28

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	12 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Schedule of accounts payable and accrued liabilities	2016 2015 Accounts payable $ 1,530,258 $ 1,237,973 Accrued salaries payable 678,982 1,002,743 Other accrued expenses 38,101 144,290 Total $ 2,247,341 $ 2,385,006

STOCK OPTIONS AND WARRANTS (Tab

STOCK OPTIONS AND WARRANTS (Tables)	12 Months Ended
	Sep. 30, 2016
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Schedule of transactions involving warrants	Number of Weighted Average Balance at October 1, 2015 6,027,654 $ 3.54 Granted 1,300,000 4.29 Exercised (1,260 ) (3.50 ) Cancelled or expired (118,334 ) (5.58 ) Balance, September 30, 2016 7,208,060 $ 3.64
Schedule of summary of the changes in options outstanding and the related prices for the shares of common Stock issued to employees of the company under the 2005 Incentive Stock Plan	Exercise Number Weighted Average Weighted Number Exercisable $ 2.59 41,667 3.50 $ 2.59 41,667 $ 2.59 $ 2.66 4,584 3.58 $ 2.66 1,146 $ 2.66 $ 2.69 83,334 3.14 $ 2.69 83,334 $ 2.69 $ 2.78 8,750 9.37 $ 2.78 3,125 $ 2.78 $ 2.81 500,000 9.60 $ 2.81 - $ - $ 2.85 1,667 3.31 $ 2.85 417 $ 2.85 $ 2.86 690,008 7.64 $ 2.86 690,008 $ 2.86 $ 2.96 50,000 9.60 $ 2.96 - $ - $ 2.99 489,523 9.23 $ 2.99 - $ - $ 3.00 1,000 9.90 $ 3.00 - $ - $ 3.06 5,000 9.77 $ 3.06 - $ - $ 3.18 2,000 9.81 $ 3.18 - $ - $ 3.20 17,668 9.92 $ 3.20 16,668 $ 3.20 $ 3.24 5,000 9.25 $ 3.24 - $ - $ 3.45 30,000 8.38 $ 3.45 7,500 $ 3.45 $ 3.48 2,500 8.95 $ 3.48 625 $ 3.48 $ 3.51 666,667 1.78 $ 3.51 666,667 $ 3.51 $ 3.60 333,334 3.75 $ 3.60 333,334 $ 3.60 $ 3.90 10,581 0.18 $ 3.90 10,581 $ 3.90 $ 3.92 3,000 9.12 $ 3.92 - $ - $ 4.08 79,500 0.81 $ 4.08 79,500 $ 4.08 $ 4.20 20,834 1.98 $ 4.20 20,834 $ 4.20 $ 4.91 10,000 9.01 $ 4.91 10,000 $ 4.91 $ 5.31 116,561 1.54 $ 5.31 74,948 $ 5.31 $ 5.82 946,300 2.06 $ 5.82 504,633 $ 5.82 $ 6.00 8,334 2.97 $ 6.00 8,334 $ 6.00 $ 6.60 123,338 2.16 $ 6.60 123,338 $ 6.60 $ 6.89 4,167 2.58 $ 6.89 2,084 $ 6.89 $ 6.96 4,167 2.16 $ 6.96 2,084 $ 6.96 $ 7.02 33,334 2.17 $ 7.02 16,666 $ 7.02 $ 8.16 32,091 2.50 $ 8.16 32,091 $ 8.16 $ 9.60 41,667 2.35 $ 9.60 41,667 $ 9.60 $ 10.79 34,991 1.55 $ 10.79 34,991 $ 10.79 $ 12.00 1,667 1.61 $ 12.00 1,250 $ 12.00 4,403,234 4.90 $ 4.08 2,807,492 $ 4.22
Schedule of summary of transactions involving stock options issued to employees	Number of Weighted Average Aggregate Weighted Average Contractual Life (years) Outstanding at October 1, 2015 3,458,905 $ 4.42 Granted 1,115,941 2.93 Exercised (80,334 ) 2.86 Cancelled or expired (91,278 ) 4.04 Outstanding at September 30, 2016 4,403,234 $ 4. 08 Vested at September 30, 2016 2,807,492 4.22 $ 540,606 3.52 Non-vested at September 30, 2016 1,595,742 $ 615,810 7.06
Schedule of fair value of options granted	2016 2015 Stock price $ 3.05 $ 2.85 Exercise price $ 2.93 $ 2.85 Expected term 7.89 5.12 Dividend yield - - Volatility 135 % 133 % Risk free rate 1.8 % 1.7 %

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Schedule of income tax provision (benefit)	2016 2015 Federal: Current $ - - Deferred (3,780,000 ) 13,924,000 (3,780,000 ) 13,924,000 State and local: Current - - Deferred (1,302,000 ) (70,000 ) (1,302,000 ) (70,000 ) Change in valuation allowance 5,082,000 (13,854,000 ) Income tax provision (benefit) $ - -
Schedule of effective income tax rate reconciliation	2016 2015 Statutory federal income tax rate 34.00 % 34.00 % Statutory state and local income tax rate (1%, as of September 30, 2016 and 2015), net of federal benefit 7.72 % 0.59 % Stock based compensation (2.33 %) (8.34 %) Other permanent differences 0.72 % (4.94 %) Effect of change in deferred tax rate 2.01 % 4.15 % Warrant liability - (33.78 %) Adjustment to state tax credits 0.41 % - Adjustment to depreciation and amortization 1.09 % (16.28 %) Adjustment to stock based compensation (2.43 %) (30,73 %) Adjustment of prior years’ NOLs 0.55 % (61.28 %) Change in valuation allowance (41.74 %) 116.61 % Effective tax rate 0.00 % 0.00 %
Schedule of components of deferred tax assets	September 30, 2016 2015 Deferred tax assets (liabilities): Stock based compensation $ 2,025,000 $ 1,961,000 Depreciation and amortization 351,000 35,000 Amortization of debt discount 16,269,000 16,055,000 Net operating loss carry forward 12,713,000 8,199,000 Tax credits 221,000 86,000 Other 105,000 266,000 Less: valuation allowance (31,684,000 ) (26,602,000 ) Net deferred tax asset $ - $ -

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum rental payments	For the year ending September 30, 2017 $ 513,277 2018 462,717 2019 305,399 Total $ 1,281,393

FAIR VALUE (Tables)

FAIR VALUE (Tables)	12 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of fair value measurements of common stock warrants using significant unobservable inputs (Level 3)	Year Ended September 30, 2015 Balance at October 1, 2014 $ 1,096,412 Adjustment resulting from change in value recognized in earnings (a) 2,994,540 Reclassification of warrant upon repurchase (4,090,952 ) Reclassification to equity upon exercise - Balance at September 30, 2015 $ - (a) Adjustment resulting from change in fair value

GEOGRAPHIC AREA INFORMATION (Ta

GEOGRAPHIC AREA INFORMATION (Tables)	12 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of net sales by geographic location of customers	Year Ended September 30, 2016 2015 United States $ 3,177,792 $ 7,817,037 Europe 876,790 920,267 Asia and other 131,845 271,195 Total $ 4,186,427 $ 9,008,499

LIQUIDITY AND MANAGEMENT'S PL34

LIQUIDITY AND MANAGEMENT'S PLAN (Detail Textuals) - USD ($)	Nov. 07, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Liquidity And Management Plan [Line Items]
Accumulated deficit		$ (223,817,388)	$ (211,641,409)
Net loss		(12,175,979)	(11,881,137)
Operating cash flow		(9,896,727)	(6,965,846)
Cash and cash equivalents		4,479,274	$ 7,312,184	$ 1,393,132
Working capital		7,267,005
Gross proceeds from common stock and warrants upon closure of direct public offering and private placement		$ 8,750,000
Subsequent Event
Liquidity And Management Plan [Line Items]
Gross proceeds from common stock and warrants upon closure of direct public offering and private placement	$ 5,000,000

SUMMARY OF ACCOUNTING POLICIE35

SUMMARY OF ACCOUNTING POLICIES - Property, plant and equipment (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Total	$ 2,055,699	$ 1,424,974
Accumulated depreciation	1,263,200	852,867
Property, plant and equipment, net	792,499	572,107
Computer equipment
Property, Plant and Equipment [Line Items]
Total	70,134	43,718
Lab equipment
Property, Plant and Equipment [Line Items]
Total	1,651,400	1,069,541
Furniture
Property, Plant and Equipment [Line Items]
Total	44,592	44,592
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total	$ 289,573	$ 267,123

SUMMARY OF ACCOUNTING POLICIE36

SUMMARY OF ACCOUNTING POLICIES - Summary of potential stock issuances under various options, and warrants (Details 1) - shares	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of diluted net loss per share	11,611,294	9,486,559
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of diluted net loss per share	7,208,060	6,027,654
Employee options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of diluted net loss per share	4,403,234	3,458,905

SUMMARY OF ACCOUNTING POLICIE37

SUMMARY OF ACCOUNTING POLICIES (Detail Textuals) - USD ($)	1 Months Ended		12 Months Ended
	Jun. 29, 2016	Oct. 24, 2014	Sep. 30, 2016	Sep. 30, 2015	Oct. 29, 2014	Oct. 28, 2014
Accounting Policies [Line Items]
Common stock reverse stock split		one-for-60 (1:60)
Common stock, shares authorized			500,000,000	500,000,000	500,000,000	1,350,000,000
Common stock, par value (in dollars per share)		$ 0.001	$ 0.001	$ 0.001	$ 0.001	$ 0.001
Deferred revenue			$ 2,737,588	$ 282,050
Revenue recognized for government contract awards			1,064,105	2,792,555
Short term accounts receivable			4,621,345	2,893,400
Long-term accounts receivable revenue recognized			1,535,000	1,500,000
Deferred revenue for shipments			2,305,000
Allowance on accounts receivable (in dollars)			32,965	7,140
Deferred offering costs			$ 13,986
Depreciation method			straight line method
Estimated useful lives			3 to 5 years
Depreciation expenses			$ 452,212	393,750
Research and development			3,693,810	2,577,307
Advertising expense			$ 245,281	$ 158,373
Himatsingka America Inc
Accounting Policies [Line Items]
Maximum portion of cotton tagging fee waived	$ 250,000

SUMMARY OF ACCOUNTING POLICIE38

SUMMARY OF ACCOUNTING POLICIES (Detail Textuals 1) - Customer Concentration Risk - Customer	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Total Revenue | Two Customer
Concentration Risk [Line Items]
Concentration risk percentage		79.00%
Number of customers		2
Total Revenue | Three customers
Concentration Risk [Line Items]
Concentration risk percentage	75.00%
Number of customers	3
Accounts Receivable | One Customer
Concentration Risk [Line Items]
Concentration risk percentage	78.00%
Number of customers	1
Accounts Receivable | Two Customer
Concentration Risk [Line Items]
Concentration risk percentage		90.00%
Number of customers		2
Accounts Receivable | Three customers
Concentration Risk [Line Items]
Concentration risk percentage	20.00%
Number of customers	3

ASSET PURCHASE AGREEMENT (Detai

ASSET PURCHASE AGREEMENT (Details) - Asset Purchase Agreement - Vandalia	Sep. 11, 2015USD ($)
Allocation of Purchase Price:
Inventory	$ 30,000
Fixed assets	36,614
Security deposit	10,000
Identifiable intangible assets:
Contract in place	69,000
Intellectual property	448,000
Customer relationships	621,000
Goodwill	285,386
Fair value of assets acquired	$ 1,500,000

ASSET PURCHASE AGREEMENT (Det40

ASSET PURCHASE AGREEMENT (Detail Textuals)	Sep. 11, 2015USD ($)ft²	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2016USD ($)
Business Acquisition [Line Items]
Revenues		$ 4,186,427	$ 9,008,499
Net income		(12,175,979)	(11,881,137)
Goodwill		$ 285,386	285,386
Asset Purchase Agreement | Vandalia
Business Acquisition [Line Items]
Purchase price for assets	$ 1,500,000
Amount held in escrow	500,000
Amount of indemnification claims paid	100,000				$ 350,000
Amount of remaining funds in escrow to satisfy indemnification obligation	$ 50,000
Area of land | ft²	5,000
Aggregate monthly rent	$ 5,416
Purchase orders amount	$ 237,000
Payment made on yearly basis prior asset acquisition				$ 230,300
Asset Purchase Agreement | Vandalia | Acquisition-related cost
Business Acquisition [Line Items]
Revenues			175,000
Net income			102,398
Goodwill			285,386
Asset Purchase Agreement | Vandalia | Acquisition-related cost | Selling, General & Administrative costs
Business Acquisition [Line Items]
Legal cost			$ 184,319
Patent license agreement | Vandalia | Marshall
Business Acquisition [Line Items]
Percentage of royalty payment	1.00%

INVENTORIES (Details)

INVENTORIES (Details)	Sep. 30, 2016USD ($)
Inventory Disclosure [Abstract]
Raw materials	$ 100,420
Finished goods	197,339
Total	$ 297,759

INTANGIBLE ASSETS - Summary of

INTANGIBLE ASSETS - Summary of intangible assets (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Internally developed software (5-year useful life)	$ 411,199	$ 298,797
Customer relationships (10-year useful life)	621,000	621,000
Intellectual property (5-15 years)	917,350	917,350
Intangible assets, gross	1,949,549	1,837,147
Less: Accumulated amortization	423,649	238,368
Intangible assets, net	$ 1,525,900	$ 1,598,779

INTANGIBLE ASSETS - Summary o43

INTANGIBLE ASSETS - Summary of intangible assets (Parentheticals) (Details)	12 Months Ended
	Sep. 30, 2016
Internally developed software
Finite-Lived Intangible Assets [Line Items]
Intangible assets, estimated useful life (in years)	5 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, estimated useful life (in years)	10 years
Intellectual Property | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, estimated useful life (in years)	5 years
Intellectual Property | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, estimated useful life (in years)	15 years

INTANGIBLE ASSETS - Estimated a

INTANGIBLE ASSETS - Estimated amortization expense of intangible assets (Details 1) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Intangible Assets Disclosure [Abstract]
2,016	$ 243,177
2,017	197,031
2,018	149,357
2,019	174,207
2,020	174,207
Thereafter	587,921
Intangible assets, net	$ 1,525,900	$ 1,598,779

INTANGIBLE ASSETS (Detail Textu

INTANGIBLE ASSETS (Detail Textuals) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total amortization expense charged to operations	$ 254,284	$ 96,891

ACCOUNTS PAYABLE AND ACCRUED 46

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Summary of accounts payable and accrued liabilities (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Payables and Accruals [Abstract]
Accounts payable	$ 1,530,258	$ 1,237,973
Accrued salaries payable	678,982	1,002,743
Other accrued expenses	38,101	144,290
Total	$ 2,247,341	$ 2,385,006

PROMISSORY NOTES PAYABLE (Detai

PROMISSORY NOTES PAYABLE (Detail Textuals)	Nov. 11, 2014$ / shares$ / Warrantshares	Sep. 11, 2014USD ($)	Sep. 30, 2015USD ($)
Short-term Debt [Line Items]
Loss on conversion of promissory notes			$ 980,842
Promissory notes
Short-term Debt [Line Items]
Convertible promissory note issued to related party		$ 1,800,000
Interest rate on promissory note		12.50%
Term of notes		10 months
Debt instrument, convertible, threshold consecutive trading days		5 days
Debt instrument convertible for one share of common stock conversion price | $ / shares	$ 3.24
Debt instrument convertible for one share of warrant conversion price | $ / Warrant	0.01
Loss on conversion of promissory notes			981,000
Interest expense			$ 31,875
Promissory notes | James A. Hayward
Short-term Debt [Line Items]
Convertible promissory note issued to related party		$ 1,000,000
Common stock issued in exchange for cancellation of Notes | shares	315,171
Number of warrants to purchase common stock in settlement of convertible notes and accrued interest | shares	315,171
Conversion price of convertible promissory note converted into common stock (in dollars per share) | $ / shares	$ 3.25
Promissory notes | Another individual
Short-term Debt [Line Items]
Convertible promissory note issued to related party		$ 800,000
Common stock issued in exchange for cancellation of Notes | shares	252,137
Number of warrants to purchase common stock in settlement of convertible notes and accrued interest | shares	252,137
Conversion price of convertible promissory note converted into common stock (in dollars per share) | $ / shares	$ 3.25

WARRANT LIABILITY (Detail Textu

WARRANT LIABILITY (Detail Textuals) - USD ($)	1 Months Ended			12 Months Ended
	Nov. 21, 2014	Oct. 28, 2014	Dec. 16, 2013	Sep. 30, 2016	Sep. 30, 2015
Class of Warrant or Right [Line Items]
Cashless exercise of warrant				1,260
Loss on change in fair value of warrant liability					$ 2,994,540
Crede CG III, Ltd | Warrants
Class of Warrant or Right [Line Items]
Fair value of the warrants			$ 2,455,042
Method used for determining allocated fair value of the Warrants			Binomial Lattice model
Fair value of common stock			$ 10.80
Dividend yield			0.00%
Expected terms			4 years 6 months 18 days
Risk free interest rate			1.55%
Expected volatility			118.89%
Expected price at which holders exercise Warrants			$ 14.59
Crede CG III, Ltd | Series A Warrants
Class of Warrant or Right [Line Items]
Cashless exercise of warrant			178,253
Crede CG III, Ltd | Series B Warrants
Class of Warrant or Right [Line Items]
Cashless exercise of warrant			116,667
Loss on change in fair value of warrant liability					$ 2,994,540
Warrant repurchase option agreement | Crede CG III, Ltd | Series B Warrants
Class of Warrant or Right [Line Items]
Cashless exercise of warrant		387,621
Expected price at which holders exercise Warrants		$ 10.55
Percentage of option to purchase warrant	100.00%
Aggregate purchase price of warrant exercise	$ 4,091,000	$ 4,091,000
Warrant repurchase option agreement | Crede CG III, Ltd | Series B Warrants | Minimum
Class of Warrant or Right [Line Items]
Percentage of option to purchase warrant		50.00%
Warrant repurchase option agreement | Crede CG III, Ltd | Series B Warrants | Maximum
Class of Warrant or Right [Line Items]
Percentage of option to purchase warrant		100.00%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Detail Textuals) - James A. Hayward - Promissory notes - USD ($)	Nov. 11, 2014	Sep. 11, 2014
Related Party Transaction [Line Items]
Convertible promissory note issued to related party in advance for working capital purposes		$ 1,000,000
Interest rate on promissory note		12.50%
Common stock issued in exchange for cancellation of Notes	315,171
Number of warrants to purchase common stock in settlement of convertible notes and accrued interest	315,171
Conversion price of convertible promissory note converted into common stock (in dollars per share)	$ 3.25

CAPITAL STOCK (Detail Textual)

CAPITAL STOCK (Detail Textual) - USD ($)	Nov. 07, 2016	Nov. 02, 2016	Nov. 25, 2015	Nov. 23, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Number of shares issued for services					24,000
Value of shares issued for services					$ 78,130	$ 136,281
2005 Incentive Stock Plan
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Number of shares issued for services					24,000	40,500
Value of shares issued for services					$ 78,130	$ 136,281
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 (in dollars per share)			$ 4.03
Exercise price percentage of public offering price			115.00%
Private Placement | Subsequent Event
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Number of shares issued		2,272,727
Number of common stock called by warrants	68,182	2,272,727
Exercise price of warrants (in dollars per share)	$ 2.53	$ 3.50
Aggregate gross proceeds from private placement		$ 5,000,000
Exercise price percentage of public offering price	115.00%
Maximum total number issued and outstanding shares of common stock	9.99%
Securities Purchase Agreement
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Number of shares issued				2,500,000
Share price (in dollars per share)				$ 3.49
Number of common stock called by warrants				1,250,000
Exercise price of warrants (in dollars per share)				$ 4.30
Aggregate gross proceeds from private placement				$ 8,750,000
Share price				$ 0.01
Securities Purchase Agreement | Subsequent Event
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Value of common stock and warrants purchased		$ 5,000,000
Share price (in dollars per share)		$ 2.20

CAPITAL STOCK (Detail Textuals

CAPITAL STOCK (Detail Textuals 1) - $ / shares	1 Months Ended
	Oct. 24, 2014	Sep. 30, 2016	Sep. 30, 2015	Oct. 29, 2014	Oct. 28, 2014
Stockholders' Equity Note [Abstract]
Common stock reverse stock split	one-for-60 (1:60)
Common stock, shares authorized		500,000,000	500,000,000	500,000,000	1,350,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares authorized		10,000,000	10,000,000
Preferred stock, par value (in dollars per share)		$ 0.001	$ 0.001

CAPITAL STOCK (Detail Textual52

CAPITAL STOCK (Detail Textuals 2) - USD ($)	Apr. 01, 2015	Apr. 30, 2015	Dec. 30, 2014	Dec. 19, 2014	Nov. 20, 2014	Sep. 30, 2016	Sep. 30, 2015
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Gross proceeds from common stock and warrants upon closure of direct public offering and private placement						$ 8,750,000
Net proceeds from sale of common stock and warrants						$ 7,853,155	$ 19,114,418
Underwritten public offering
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Underwritten public offering of common stock and warrants closed	4,011,000				2,800,000
Number of common stock called by warrants	1,604,400				2,800,000
Gross proceeds from underwritten public offering of common stock and warrants	$ 12,000,000				$ 9,100,000
Gross proceeds to repurchase remaining Series B Warrants					$ 4,091,000
Period of warrant exercised					5 years
Share price	$ 3				$ 3.25
Exercise price of warrants (in dollars per share)	$ 3.50				$ 3.50
Number of days option given to underwriters	45 days				45 days
Additional common stock purchase limit given to underwriters	573,000				420,000
Additional common stock per share purchase limit given to underwriters					$ 3.24
Additional warrants purchase limit given to underwriters	229,200				420,000
Additional per share warrants purchase limit given to underwriters					$ 0.01
Number of warrants for which underwriters' close exercise of its over-allotment option		152,800		416,850
Gross proceeds from closed on underwriters exercise of over-allotment option				$ 4,169
Common stock closed on underwriters additional exercise of over-allotment option		87,000	52,000
Gross proceeds from closed on underwriters additional exercise of over-allotment option		$ 263,950	$ 168,480
Number of common stock including the exercise of over allotment option					2,852,000
Number of warrant issued including the exercise of over allotment option					3,216,850
Gross proceeds from common stock and warrants upon closure of direct public offering and private placement					$ 9,300,000
Net proceeds from sale of common stock and warrants					$ 3,690,000
Number of warrants stock sold pursuant to over allotment option	76,400
Offering price for common stock	$ 2.99
Offering price for warrant	$ 0.01
Number of common stock sold pursuant to over allotment option	191,000
Additional number of common stock called by warrants	163,720				128,800
Exercise price of warrants which company agreed to issue to the underwriters	$ 3.44				$ 3.73
Exercise price percentage of public offering price	115.00%				115.00%

STOCK OPTIONS AND WARRANTS - Tr

STOCK OPTIONS AND WARRANTS - Transactions involving warrants (Details)	12 Months Ended
	Sep. 30, 2016$ / 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	(118,334)
Balance, September 30, 2016 | shares	7,208,060
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	(5.58)
Balance, September 30, 2016 | $ / shares	$ 3.64

STOCK OPTIONS AND WARRANTS - Ch

STOCK OPTIONS AND WARRANTS - Changes in options outstanding and related prices (Details 1) - Employee Stock Option - Incentive Stock Plan 2005 - $ / shares	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 2.93
Number Outstanding	4,403,234	3,458,905
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	4 years 10 months 24 days
Weighted Average Exercise Price of Options Outstanding	$ 4.08	$ 4.42
Number Exercisable	2,807,492
Exercisable Weighted Average Exercise Price	$ 4.22
Dollar 2.59
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 2.59
Number Outstanding	41,667
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	3 years 6 months
Weighted Average Exercise Price of Options Outstanding	$ 2.59
Number Exercisable	41,667
Exercisable Weighted Average Exercise Price	$ 2.59
Dollar 2.66
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 2.66
Number Outstanding	4,584
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	3 years 6 months 29 days
Weighted Average Exercise Price of Options Outstanding	$ 2.66
Number Exercisable	1,146
Exercisable Weighted Average Exercise Price	$ 2.66
Dollar 2.69
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 2.69
Number Outstanding	83,334
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	3 years 1 month 21 days
Weighted Average Exercise Price of Options Outstanding	$ 2.69
Number Exercisable	83,334
Exercisable Weighted Average Exercise Price	$ 2.69
Dollar 2.78
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 2.78
Number Outstanding	8,750
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	9 years 4 months 13 days
Weighted Average Exercise Price of Options Outstanding	$ 2.78
Number Exercisable	3,125
Exercisable Weighted Average Exercise Price	$ 2.78
Dollar 2.81
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 2.81
Number Outstanding	500,000
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	9 years 7 months 6 days
Weighted Average Exercise Price of Options Outstanding	$ 2.81
Number Exercisable
Exercisable Weighted Average Exercise Price
Dollar 2.85
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 2.85
Number Outstanding	1,667
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	3 years 3 months 22 days
Weighted Average Exercise Price of Options Outstanding	$ 2.85
Number Exercisable	417
Exercisable Weighted Average Exercise Price	$ 2.85
Dollar 2.86
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 2.86
Number Outstanding	690,008
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	7 years 7 months 21 days
Weighted Average Exercise Price of Options Outstanding	$ 2.86
Number Exercisable	690,008
Exercisable Weighted Average Exercise Price	$ 2.86
Dollar 2.96
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 2.96
Number Outstanding	50,000
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	9 years 7 months 6 days
Weighted Average Exercise Price of Options Outstanding	$ 2.96
Number Exercisable
Exercisable Weighted Average Exercise Price
Dollar 2.99
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 2.99
Number Outstanding	489,523
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	9 years 2 months 23 days
Weighted Average Exercise Price of Options Outstanding	$ 2.99
Number Exercisable
Exercisable Weighted Average Exercise Price
Dollar 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 3
Number Outstanding	1,000
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	9 years 10 months 24 days
Weighted Average Exercise Price of Options Outstanding	$ 3
Number Exercisable
Exercisable Weighted Average Exercise Price
Dollar 3.06
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 3.06
Number Outstanding	5,000
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	9 years 9 months 7 days
Weighted Average Exercise Price of Options Outstanding	$ 3.06
Number Exercisable
Exercisable Weighted Average Exercise Price
Dollar 3.18
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 3.18
Number Outstanding	2,000
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	9 years 9 months 22 days
Weighted Average Exercise Price of Options Outstanding	$ 3.18
Number Exercisable
Exercisable Weighted Average Exercise Price
Dollar 3.20
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 3.20
Number Outstanding	17,668
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	9 years 11 months 1 day
Weighted Average Exercise Price of Options Outstanding	$ 3.20
Number Exercisable	16,668
Exercisable Weighted Average Exercise Price	$ 3.20
Dollar 3.24
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 3.24
Number Outstanding	5,000
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	9 years 3 months
Weighted Average Exercise Price of Options Outstanding	$ 3.24
Number Exercisable
Exercisable Weighted Average Exercise Price
Dollar 3.45
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 3.45
Number Outstanding	30,000
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	8 years 4 months 17 days
Weighted Average Exercise Price of Options Outstanding	$ 3.45
Number Exercisable	7,500
Exercisable Weighted Average Exercise Price	$ 3.45
Dollar 3.48
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 3.48
Number Outstanding	2,500
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	8 years 11 months 12 days
Weighted Average Exercise Price of Options Outstanding	$ 3.48
Number Exercisable	625
Exercisable Weighted Average Exercise Price	$ 3.48
Dollar 3.51
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 3.51
Number Outstanding	666,667
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	1 year 9 months 11 days
Weighted Average Exercise Price of Options Outstanding	$ 3.51
Number Exercisable	666,667
Exercisable Weighted Average Exercise Price	$ 3.51
Dollar 3.60
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 3.60
Number Outstanding	333,334
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	3 years 9 months
Weighted Average Exercise Price of Options Outstanding	$ 3.60
Number Exercisable	333,334
Exercisable Weighted Average Exercise Price	$ 3.60
Dollar 3.90
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 3.90
Number Outstanding	10,581
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	2 months 5 days
Weighted Average Exercise Price of Options Outstanding	$ 3.90
Number Exercisable	10,581
Exercisable Weighted Average Exercise Price	$ 3.90
Dollar 3.92
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 3.92
Number Outstanding	3,000
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	9 years 1 month 13 days
Weighted Average Exercise Price of Options Outstanding	$ 3.92
Number Exercisable
Exercisable Weighted Average Exercise Price
Dollar 4.08
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 4.08
Number Outstanding	79,500
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	9 months 22 days
Weighted Average Exercise Price of Options Outstanding	$ 4.08
Number Exercisable	79,500
Exercisable Weighted Average Exercise Price	$ 4.08
Dollar 4.20
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 4.20
Number Outstanding	20,834
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	1 year 11 months 23 days
Weighted Average Exercise Price of Options Outstanding	$ 4.20
Number Exercisable	20,834
Exercisable Weighted Average Exercise Price	$ 4.20
Dollar 4.91
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 4.91
Number Outstanding	10,000
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	9 years 4 days
Weighted Average Exercise Price of Options Outstanding	$ 4.91
Number Exercisable	10,000
Exercisable Weighted Average Exercise Price	$ 4.91
Dollar 5.31
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 5.31
Number Outstanding	116,561
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	1 year 6 months 15 days
Weighted Average Exercise Price of Options Outstanding	$ 5.31
Number Exercisable	74,948
Exercisable Weighted Average Exercise Price	$ 5.31
Dollar 5.82
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 5.82
Number Outstanding	946,300
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	2 years 23 days
Weighted Average Exercise Price of Options Outstanding	$ 5.82
Number Exercisable	504,633
Exercisable Weighted Average Exercise Price	$ 5.82
Dollar 6
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 6
Number Outstanding	8,334
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	2 years 11 months 19 days
Weighted Average Exercise Price of Options Outstanding	$ 6
Number Exercisable	8,334
Exercisable Weighted Average Exercise Price	$ 6
Dollar 6.60
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 6.60
Number Outstanding	123,338
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	2 years 1 month 28 days
Weighted Average Exercise Price of Options Outstanding	$ 6.60
Number Exercisable	123,338
Exercisable Weighted Average Exercise Price	$ 6.60
Dollar 6.89
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 6.89
Number Outstanding	4,167
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	2 years 6 months 29 days
Weighted Average Exercise Price of Options Outstanding	$ 6.89
Number Exercisable	2,084
Exercisable Weighted Average Exercise Price	$ 6.89
Dollar 6.96
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 6.96
Number Outstanding	4,167
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	2 years 1 month 28 days
Weighted Average Exercise Price of Options Outstanding	$ 6.96
Number Exercisable	2,084
Exercisable Weighted Average Exercise Price	$ 6.96
Dollar 7.02
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 7.02
Number Outstanding	33,334
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	2 years 2 months 1 day
Weighted Average Exercise Price of Options Outstanding	$ 7.02
Number Exercisable	16,666
Exercisable Weighted Average Exercise Price	$ 7.02
Dollar 8.16
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 8.16
Number Outstanding	32,091
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	2 years 6 months
Weighted Average Exercise Price of Options Outstanding	$ 8.16
Number Exercisable	32,091
Exercisable Weighted Average Exercise Price	$ 8.16
Dollar 9.60
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 9.60
Number Outstanding	41,667
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	2 years 4 months 6 days
Weighted Average Exercise Price of Options Outstanding	$ 9.60
Number Exercisable	41,667
Exercisable Weighted Average Exercise Price	$ 9.60
Dollar 10.79
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 10.79
Number Outstanding	34,991
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	1 year 6 months 18 days
Weighted Average Exercise Price of Options Outstanding	$ 10.79
Number Exercisable	34,991
Exercisable Weighted Average Exercise Price	$ 10.79
Dollar 12
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 12
Number Outstanding	1,667
Weighted Average Remaining Contractual Life of Options Outstanding (Years)	1 year 7 months 10 days
Weighted Average Exercise Price of Options Outstanding	$ 12
Number Exercisable	1,250
Exercisable Weighted Average Exercise Price	$ 12

STOCK OPTIONS AND WARRANTS - 55

STOCK OPTIONS AND WARRANTS - Transactions involving stock options issued to employees (Details 2)	12 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Weighted Average Exercise Price Per Share
Weighted Average Contractual Life (years), Vested	4 years 11 months 19 days
Employee Stock Option | Incentive Stock Plan 2005
Number of Shares
Outstanding at October 1, 2015 | shares	3,458,905
Exercised | shares	(80,334)
Cancelled or expired | shares	(91,278)
Outstanding at September 30, 2016 | shares	4,403,234
Vested at September 30, | shares	2,807,492
Non-vested at September 30, | shares	1,595,742
Weighted Average Exercise Price Per Share
Outstanding at October 1, 2015	$ 4.42
Granted	2.93
Exercised	2.86
Cancelled or expired	4.04
Outstanding at September 30, 2016	4.08
Vested at September 30,	$ 4.22
Aggregate Intrinsic Value, Vested | $	$ 540,606
Aggregate Intrinsic Value, Non-vested	$ 615,810
Weighted Average Contractual Life (years), Non-vested	7 years 22 days

STOCK OPTIONS AND WARRANTS - Su

STOCK OPTIONS AND WARRANTS - Summary of value of options granted using Black Scholes Option Pricing Model with weighted average assumptions (Details 3) - $ / shares	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Stock price	$ 3.05	$ 2.85
Exercise price	$ 2.93	$ 2.85
Term of options granted	7 years 10 months 21 days	5 years 1 month 13 days
Dividend yield
Volatility	135.00%	133.00%
Risk free rate	1.80%	1.70%

STOCK OPTIONS AND WARRANTS - Em

STOCK OPTIONS AND WARRANTS - Employee Stock Options (Detail Textuals) - Employee Stock Option - Incentive Stock Plan 2005	12 Months Ended
	Sep. 30, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock as stock awards and stock options	8,333,333
Issuance of additional common stock as stock awards and stock options	833,334
Cumulative number of shares issued	275,752
Options to purchase shares under the 2005 Incentive stock plan	4,925,357

STOCK OPTIONS AND WARRANTS - 58

STOCK OPTIONS AND WARRANTS - Employee Stock Options (Detail Textuals 1)	1 Months Ended	12 Months Ended
	May 31, 2016shares	Sep. 30, 2016USD ($)Executive_OfficersFormer_Employees$ / sharesshares	Sep. 30, 2015USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value		$ 50,110	$ 308
Stock based compensation expense		$ 2,038,830	$ 4,022,283
Term of options granted		7 years 10 months 21 days	5 years 1 month 13 days
Unrecorded compensation cost related to non-vested awards		$ 3,565,086
Weighted average period of non-vested awards options		4 years 11 months 19 days
Weighted average grant date fair value for options granted | $ / shares		$ 2.84
Number of former employees | Former_Employees		3
Number of executive officers | Executive_Officers		2
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense		$ 37,342	$ 676,175
Employee Stock Option | Employees, consultants and non-employee board of director members
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted | shares		1,115,941	952,594
Employee Stock Option | Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted | shares		160,000	450,000
Performance based options to employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted | shares	500,000

INCOME TAXES - Provision (Benef

INCOME TAXES - Provision (Benefit) (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Federal:
Current
Deferred	(3,780,000)	13,924,000
Federal income tax expense benefit, total	(3,780,000)	13,924,000
State and local:
Current
Deferred	(1,302,000)	(70,000)
State and local income tax expense benefit, total	(1,302,000)	(70,000)
Change in valuation allowance	5,082,000	(13,854,000)
Income tax provision (benefit)

INCOME TAXES - Provision for in

INCOME TAXES - Provision for income taxes differ from amount of income tax determined (Details 1)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Statutory federal income tax rate	34.00%	34.00%
Statutory state and local income tax rate (1%, as of September 30, 2016 and 2015), net of federal benefit	7.72%	0.59%
Stock based compensation	(2.33%)	(8.34%)
Other permanent differences	0.72%	(4.94%)
Effect of change in deferred tax rate	2.01%	4.15%
Warrant liability		(33.78%)
Adjustment to state tax credits	0.41%
Adjustment to depreciation and amortization	1.09%	(16.28%)
Adjustment to stock based compensation	(2.43%)	(30.73%)
Adjustment of prior years' NOLs	0.55%	(61.28%)
Change in valuation allowance	(41.74%)	116.61%
Effective tax rate	0.00%	0.00%

INCOME TAXES (Parentheticals)

INCOME TAXES (Parentheticals) (Details 1)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Federal benefit	1.00%	1.00%

INCOME TAXES - Components of de

INCOME TAXES - Components of deferred tax assets (Details 2) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Deferred tax assets (liabilities):
Stock based compensation	$ 2,025,000	$ 1,961,000
Depreciation and amortization	351,000	35,000
Amortization of debt discount	16,269,000	16,055,000
Net operating loss carry forward	12,713,000	8,199,000
Tax credits	221,000	86,000
Other	105,000	266,000
Less: valuation allowance	(31,684,000)	(26,602,000)
Net deferred tax asset

INCOME TAXES (Detail Textuals)

INCOME TAXES (Detail Textuals) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Deferred Income Taxes [Line Items]
Federal and net operating loss carryforward	$ 33,920,000
State net operating loss carryforward	45,229,000
Decrease in deferred tax asset		$ 21,118,000
Decrease in state net operating loss carryforward		$ 20,796,000
Federal research and development credits	172,000
State investment tax credits	49,000
Increase in valuation allowance	5,082,000
Maximum
Deferred Income Taxes [Line Items]
Operating loss carryforwards limitations on use amount	1,103,000
Minimum
Deferred Income Taxes [Line Items]
Operating loss carryforwards limitations on use amount	$ 786,000

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Future minimum rental payments (Details)	Sep. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,017	$ 513,277
2,018	462,717
2,019	305,399
Total	$ 1,281,393

COMMITMENTS AND CONTINGENCIES65

COMMITMENTS AND CONTINGENCIES (Detail Textuals)	12 Months Ended
	Sep. 30, 2016USD ($)ft²	Sep. 30, 2015USD ($)
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 | $	$ 458,098
Area of laboratory space | ft²	1,500
Total lease rental expenses | $	$ 490,745	$ 490,915
Asset Purchase Agreement | Vandalia
Commitments and Contingencies [Line Items]
Area of property under operating lease | ft²	5,000
Monthly rent | $	$ 5,416

COMMITMENTS AND CONTINGENCIES66

COMMITMENTS AND CONTINGENCIES (Detail Textuals 1) - Employment agreement - Chief Executive Officer - USD ($)	1 Months Ended	12 Months Ended
	Jul. 28, 2016	Sep. 30, 2016	May 07, 2016
Commitments and Contingencies [Line Items]
Agreement renewal period	1 year
Special cash incentive bonus	$ 800,000
Special cash incentive bonus payable on completing threshold annual revenue	300,000
Threshold annual revenue	8,000,000
Special cash incentive bonus payable on completing threshold annual revenue in excess of first threshold	100,000
Threshold annual revenue in excess of first threshold	2,000,000
Annual base salary	$ 400,000	$ 300,000
Decrease in amount of salary			$ 100,000
Compensation description	The agreement with Dr. Hayward also provides that if he is terminated before the end of the initial or a renewal term by us without cause or if Dr. Hayward terminates his employment for good reason, then, in addition to previously earned and unpaid salary, bonus and benefits, and subject to the delivery of a general release and continuing compliance with restrictive covenants, Dr. Hayward will be entitled to receive a pro rata portion of the greater of either (X) the annual bonus he would have received if employment had continued through the end of the year of termination or (Y) the prior year's bonus; salary continuation payments for two years following termination equal to the greater of (i) three times base salary or (ii) two times base salary plus bonus; company-paid COBRA continuation coverage for 18 months post-termination; continuing life insurance benefits (if any) for two years; and extended exercisability of outstanding vested options (for three years from termination date or, if earlier, the expiration of the fixed option term). If termination of employment as described above occurs within six months before or two years after a change in control of the Company, then, in addition to the above payments and benefits, all of Dr. Hayward's outstanding options and other equity incentive awards will become fully vested and Dr. Hayward will receive a lump sum payment of the amounts that would otherwise be paid as salary continuation. In general, a change in control will include a 30% or more change in ownership of the Company.

FAIR VALUE - Activity of Level

FAIR VALUE - Activity of Level 3 inputs measured on a recurring basis (Details) - Common Stock Warrants	12 Months Ended
	Sep. 30, 2015USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at October 1, 2014	$ 1,096,412
Adjustment resulting from change in value recognized in earnings (a)	2,994,540	[1]
Reclassification of warrant upon repurchase	(4,090,952)
Reclassification to equity upon exercise
Balance at September 30, 2015
[1]	Adjustment resulting from change in fair value is the amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to liabilities held at the reporting date and realized gains or losses at the date of exercise. The gain or loss is recorded in change in fair value of warrant liability in the accompanying consolidated statements of operations.

GEOGRAPHIC AREA INFORMATION (De

GEOGRAPHIC AREA INFORMATION (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Net sales	$ 4,186,427	$ 9,008,499
United States
Segment Reporting Information [Line Items]
Net sales	3,177,792	7,817,037
Europe
Segment Reporting Information [Line Items]
Net sales	876,790	920,267
Asia and other
Segment Reporting Information [Line Items]
Net sales	$ 131,845	$ 271,195