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C. STOCKHOLDERS EQUITY

3 Months Ended

Dec. 31, 2019

Equity [Abstract]

C. STOCKHOLDERS' EQUITY

Proceeds from the Sale of Common Stock

In December 2019, the Company sold 606,395 shares of common stock at a public offering price of $9.07 per share and received aggregate proceeds of approximately $5.0 million.

Equity Compensation

Underlying share information for equity compensation plans as of December 31, 2019 is as follows:

Name of Plan		Total Shares Reserved Under Plans				Shares Reserved for Outstanding Options				Shares Issued				Remaining Options/Shares Under Plans

Incentive Stock Options Plans			138,400				89,895				N/A				213
Non-Qualified Stock Option Plans			6,387,200				6,129,285				N/A				111,170
Stock Bonus Plans			783,760				N/A				335,700				448,027
Stock Compensation Plan			634,000				N/A				133,908				481,682
Incentive Stock Bonus Plan			640,000				N/A				616,500				23,500

Underlying share information for equity compensation plans as of September 30, 2019 is as follows:

Name of Plan		Total Shares Reserved Under Plans				Shares Reserved for Outstanding Options				Shares Issued				Remaining Options/Shares Under Plans

Incentive Stock Option Plans			138,400				89,895				N/A				213
Non-Qualified Stock Option Plans			6,387,200				6,128,321				N/A				112,166
Stock Bonus Plans			783,760				N/A				331,226				452,501
Stock Compensation Plan			634,000				N/A				130,183				485,407
Incentive Stock Bonus Plan			640,000				N/A				616,500				23,500

Stock option activity:

		Three Months Ended December 31,
		2019				2018
Options granted			1,000				500
Options expired			36				2,400

Stock-Based Compensation Expense

		Three months Ended December 31,
		2019				2018
Employees		$	1,800,225			$	573,660
Non-employees		$	155,740			$	238,904

Employee compensation expense includes the expense related to options issued or vested and restricted stock granted. Non-employee expense includes the expense related to options and stock issued to consultants expensed over the period of their service contracts.

Warrants and Non-Employee Options

The following chart represents the warrants and non-employee options outstanding at December 31, 2019:

Warrant/Options	Issue Date		Shares Issuable upon Exercise of Warrants/ Options				Exercise Price			Expiration Date		Reference
Series N	8/18/2008			85,339			$	3.00		2/18/2020			*
Series V	5/28/2015			810,127			$	19.75		5/28/2020			*
Series UU	6/11/2018			154,810			$	2.80		6/11/2020			*
Series W	10/28/2015			688,930			$	16.75		10/28/2020			*
Series X	1/13/2016			120,000			$	9.25		1/13/2021			*
Series Y	2/15/2016			26,000			$	12.00		2/15/2021			*
Series ZZ	5/23/2016			20,000			$	13.75		5/18/2021			*
Series BB	8/26/2016			16,000			$	13.75		8/22/2021			*
Series Z	5/23/2016			264,000			$	13.75		11/23/2021			*
Series FF	12/8/2016			68,048			$	3.91		12/1/2021			*
Series CC	12/8/2016			277,463			$	5.00		12/8/2021			*
Series HH	2/23/2017			6,500			$	3.13		2/16/2022			*
Series AA	8/26/2016			200,000			$	13.75		2/22/2022			*
Series JJ	3/14/2017			9,450			$	3.13		3/8/2022			*
Series LL	4/30/2017			26,398			$	3.59		4/30/2022			*
Series MM	6/22/2017			893,491			$	1.86		6/22/2022			*
Series NN	7/24/2017			473,798			$	2.52		7/24/2022			*
Series OO	7/31/2017			40,000			$	2.52		7/31/2022			*
Series RR	10/30/2017			457,116			$	1.65		10/30/2022			*
Series SS	12/19/2017			460,012			$	2.09		12/18/2022			2
Series TT	2/5/2018			459,421			$	2.24		2/5/2023			2
Series VV	7/2/2018			82,500			$	1.75		1/2/2024			*
Consultants	7/28/17			10,000			$	2.18		7/27/2027			3

* No current period changes to these warrants

1.	Derivative Liabilities

The table below presents the fair value of the warrant liabilities at the balance sheet dates:

		December 31, 2019				September 30, 2019
Series V warrants		$	119,411			$	674,442
Series W warrants			1,042,133				1,193,507
Series Z warrants			1,098,996				1,109,545
Series ZZ warrants			62,791				77,638
Series AA warrants			851,930				916,908
Series BB warrants			64,397				63,966
Series CC warrants			1,733,579				1,710,898
Series FF warrants			453,374				446,185
Series HH warrants			45,739				45,657
Series JJ warrants			66,729				66,599
Series LL warrants			182,722				182,965
Total warrant liabilities		$	5,721,801			$	6,488,310

The table below presents the gains and (losses) on the warrant liabilities for the three months ended December 31:

		2019				2018
Series S warrants		$	-			$	33
Series V warrants			555,031				556,332
Series W warrants			151,374				626,850
Series Z warrants			10,549				204,121
Series ZZ warrants			14,847				14,323
Series AA warrants			64,978				157,219
Series BB warrants			(431	)			12,110
Series CC warrants			(22,681	)			665,606
Series DD warrants			-				1,249,287
Series EE warrants			-				1,249,287
Series FF warrants			(7,189	)			69,062
Series GG warrants			-				212,782
Series HH warrants			(82	)			20,951
Series II warrants			-				230,589
Series JJ warrants			(130	)			31,462
Series KK warrants			-				228,095
Series LL warrants			243				28,197
Net gain on warrant liabilities		$	766,509			$	5,556,306

The Company reviews all outstanding warrants in accordance with the requirements of ASC 815. This topic provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instrument’s contingent exercise and settlement provisions. The warrant agreements provide for adjustments to the exercise price for certain dilutive events. Under the provisions of ASC 815, the warrants are not considered indexed to the Company’s stock because future equity offerings or sales of the Company’s stock are not an input to the fair value of a “fixed-for-fixed” option on equity shares, and equity classification is therefore precluded.

In accordance with ASC 815, derivative liabilities must be measured at fair value upon issuance and re-valued at the end of each reporting period through expiration. Any change in fair value between the respective reporting dates is recognized as a gain or loss.

Changes in Warrant Liabilities

On December 10, 2018, 1,360,960 Series DD and 1,360,960 Series EE warrants, with an exercise price of $4.50 expired. On October 11, 2018, 327,729 Series S warrants, with an exercise price of $31.25 expired.

2.	Changes in Equity Warrants

Exercise of Equity Warrants

The following warrants recorded as equity were exercised during the three months ended December 31, 2019.

Warrants		Warrants Exercised				Exercise Price				Proceeds
Series OO			10,000			$	2.52			$	25,200
Series SS			22,632			$	2.09				47,301
Series TT			100,628			$	2.24				224,600
			132,900							$	297,101

The following warrants recorded as equity were exercised during the three months ended December 31, 2018

Warrants		Warrants Exercised				Exercise Price				Proceeds
Series PP			60,000			$	2.30			$	138,000
Series SS			152,632			$	2.09				319,001
Series TT			86,050			$	2.24				192,752
			298,682							$	649,753

3.	Options and Shares Issued to Consultants

During the three months ended December 31, 2019 and 2018, respectively, the Company issued 15,819 and 62,784 shares of restricted common stock to consultants for services. The weighted average grant date fair value of the shares issued to consultants was $7.18 and $3.22 during the three months ended December 31, 2019 and 2018, respectively. The aggregate values of the issuances of restricted common stock and common stock options are recorded as prepaid expenses and are charged to general and administrative expenses over the periods of service.

During the three months ended December 31, 2019 and 2018, the Company recorded total expense of approximately $156,000 and $239,000, respectively, relating to these consulting agreements. At December 31, 2019 and September 30, 2019, approximately $159,000 and $230,000, respectively, are included in prepaid expenses. During the three months ended December 31, 2019 and 2018, 0 and 2,400 options, respectively, expired that were issued to consultants as payment for services rendered. As of December 31, 2019, 10,000 options issued to consultants remained outstanding, all of which were issued from the Non-Qualified Stock Option plans and are fully vested.

4.	Securities Purchase Agreement

The Company entered into a Securities Purchase Agreement with Ergomed plc, one of the Company’s Clinical Research Organizations responsible for managing the Company’s Phase 3 clinical trial, to facilitate a partial payment of amounts due Ergomed. Under the Agreement, the Company issued Ergomed shares of common stock that the net proceeds from the sales of those shares would reduce outstanding amounts due Ergomed. Upon issuance, the Company expenses the full value of the shares as Other non-operating gain/loss and subsequently offsets the expense as amounts are realized through the sale by Ergomed and reduces accounts payable to Ergomed.

During the quarters ended December 31, 2019 and 2018, respectively, the Company realized approximately $0.8 million and $1.2 million through the sale by Ergomed of 98,350 and 353,995 shares of the Company’s common stock and the Company reduced the payables to Ergomed and credited Other Operating Gain by those amounts. No shares were issued to Ergomed during the quarters ended December 31, 2019 and 2018.

On December 31, 2018, the expiration date of the prior agreement, Ergomed returned 564,905 unsold shares for cancellation.

As of December 31, 2019, Ergomed held 99,650 shares for resale.