XML 64 R13.htm IDEA: XBRL DOCUMENT
v3.3.1.900

6. INCOME TAXES | 12 Months Ended
--- | ---
Sep. 30, 2015
Income Tax Disclosure [Abstract] |
6. INCOME TAXES | At September 30, 2015 and 2014, the Company had federal net operating loss carryforwards of approximately $157.0 million and 141.0 million, respectively. The NOLs begin to expire during the fiscal year ended in 2018 and become fully expired by the end of the fiscal year ended 2035. In addition, the Company has a general business credit as a result of the credit for increasing research activities (“R&D credit”) of approximately $1.2 million at September 30, 2015 and 2014. The R&D credit begins to expire during the fiscal year ended 2020 and is fully expired during the fiscal year ended 2029. Deferred taxes at September 30 consisted of the following:
|  |  | 2015 |  |  |  | 2014 |
Net operating loss carryforwards |  | $ | 61,363,080 |  |  | $ | 55,229,799 |
R&D credit |  |  | 1,221,487 |  |  |  | 1,221,487 |
Stock-based compensation |  |  | 5,854,794 |  |  |  | 4,054,450 |
Fixed assets and intangibles |  |  | 41,018 |  |  |  | 26,329 |
Capitalized R&D |  |  | 15,081,545 |  |  |  | 9,897,041 |
Vacation and other |  |  | 114,625 |  |  |  | 108,891 |
Loan modification |  |  | 56,779 |  |  |  | - |
Total deferred tax assets |  |  | 83,733,328 |  |  |  | 70,537,997 |
Valuation allowance |  |  | (83,733,328 | ) |  |  | (70,537,9977 | )
Net deferred tax asset |  | $ | - |  |  | $ | - |
In assessing the realization of deferred tax assets, management considered whether it was more likely than not that some, or all, of the deferred tax asset will be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income. Management has considered the history of the Company’s operating losses and believes that the realization of the benefit of the deferred tax assets cannot be reasonably assured. In addition, under Internal Revenue Code Section 382, the Company’s ability to utilize these net operating loss carryforwards may be limited or eliminated in the event of future changes in ownership. The Company has no federal or state current or deferred tax expense or benefit. The Company’s effective tax rate differs from the applicable federal statutory tax rate. The reconciliation of these rates for the three years ended September 30, 2015 is as follows:
|  |  | 2015 |  |  |  | 2014 |  |  |  | 2013 |
Federal Rate |  |  | 34.00 | % |  |  | 34.00 | % |  |  | 34.00 | %
State tax rate, net of federal benefit |  |  | 5.12 |  |  |  | 5.15 |  |  |  | 4.97 |
State tax rate change |  |  | (0.15 | ) |  |  | 0.93 |  |  |  | (3.77 | )
Other adjustments |  |  | (0.21 | ) |  |  | 0.00 |  |  |  | 0.00 |
Expired tax attributes |  |  | 0.00 |  |  |  | 0.00 |  |  |  | (87.87 | )
Adjustment to deferreds |  |  | 0.00 |  |  |  | 19.13 |  |  |  | 14.30 |
Permanent differences |  |  | (0.71 | ) |  |  | (0.43 | ) |  |  | (1.59 | )
Change in valuation allowance |  |  | (38.05 | ) |  |  | (58.78 | ) |  |  | 39.96 |
Effective tax rate |  |  | 0.00 | % |  |  | 0.00 | % |  |  | 0.00 | %
The Company applies the provisions of ASC 740, “Accounting for Uncertainty in Income Taxes,” which requires financial statement benefits to be recognized for positions taken for tax return purposes when it is more likely than not that the position will be sustained. The Company has elected to reflect any tax penalties or interest resulting from tax assessments on uncertain tax positions as a component of tax expense. The Company has generated federal net operating losses in tax years ending September 30, 1998 through 2014. These years remain open to examination by the major domestic taxing jurisdictions to which the Company is subject.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration