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Stockholders' Deficit
 12 Months Ended
Sep. 30, 2021
Stockholders' Equity Note [Abstract]  
Stockholders' Deficit

NOTE 10 - Stockholders’ Deficit

 

2021 Private Placement

 

On January 12, 2021, the Company entered into a Common Stock and Warrant Purchase Agreement with certain accredited investors, pursuant to which the Company, in the 2021 Private Placement, agreed to issue and sell an aggregate of 4,166,682 shares of the common stock of the Company and warrants to purchase an aggregate of 4,166,682 shares of common stock (the “2021 Warrants”) at an aggregate purchase price of $3.00 per share of common stock and corresponding warrant, resulting in total gross proceeds of $12.5 million before deducting placement agent fees and estimated offering expenses. The 2021 Warrants have an initial exercise price of $5.25 per share. The 2021 Warrants are immediately exercisable and will expire on the fifth anniversary of issuance. Prior to expiration, subject to the terms and conditions set forth in the 2021 Warrants, the holders of such 2021 Warrants may exercise the 2021 Warrants for shares of common stock by providing notice to the Company and paying the exercise price per share for each share so exercised or by utilizing the “cashless exercise” feature contained in each 2021 Warrant. The fair value of the 2021 Warrants was $7.3 million and was based on the Black-Scholes pricing model. Input assumptions used were as follows: a risk-free interest rate of 0.5%; expected volatility of 56.0%; expected life of 5 years; expected dividend yield of 0%; and the underlying traded stock price. $3.7 million of the total proceeds was allocated to the 2021 Warrants based on the relative fair value allocation method, which has been reflected in stockholders’ equity. The 2021 Warrants were classified in stockholders’ equity as the number of shares were fixed and determinable, and no other provisions precluded equity treatment. The private placement closed on January 14, 2021.

 

2020 Common Stock Offering

 

On July 28, 2020, the Company entered into securities purchase agreements with an accredited investor in a private placement, pursuant to which the Company has issued and sold 25,000 shares to such investor, at $5.40 per share for gross proceeds amounting to $135,000.

 

2019 Common Stock Offering

 

On October 23, 2019, the Company entered into Securities Purchase Agreements with certain accredited investors, pursuant to which the Company, in a private placement, has issued and sold 47,223 shares of the Company’s common stock to the accredited investors at a price of $5.40 per share, for gross proceeds amounting to $255,000. The Company filed a registration statement with the SEC covering the resale of the shares of common stock sold in the private placement on August 11, 2020.

 

Warrant Activity and Summary

 

The following table summarizes warrant activity during the years ended September 30, 2021 and 2020:

 

     Warrants         Exercise
Price Per
Warrant		     Weighted
Average Exercise
Price		     Weighted
Average Term
(years)		  
Outstanding and exercisable at September 30, 2019     2,421,940     $ 5.40 - 9.00      $ 7.65       3.60  
Issued     968,380     $ 5.61     $

5.61

       —  
Exercised     —     $ —     $ —       —  
Forfeited     —     $ —     $ —       —  
Outstanding and exercisable at September 30, 2020     3,390,320     $ 5.40 - 9.00      $ 7.05       2.89  
Issued     4,166,682     $ 5.25     $ 4.29       —   
Exercised     (53,194 )   $ 5.61-8.25     $ 5.61       —   
Forfeited     —     $ —     $ —       —  
Outstanding and exercisable at September 30, 2021     7,503,808     $ 5.25-9.00     $ 6.06       3.23  

 

The following table summarizes information about warrants outstanding at September 30, 2021:

 

Exercise Price     Number Outstanding     Weighted Average
Remaining Contractual
life (Years)		   Number Exercisable at
September 30,
2021		  
$ 5.25       4,166,682     4.29     4,166,682  
$ 5.40       750,364     0.14     750,364  
$ 5.61       916,753     2.68     916,753  
$ 6.00       45,173     2.75     45,173  
$ 7.50       279,733     2.41     279,733  
$ 8.25       62,911     2.75     62,911  
$ 9.00       1,282,192     2.18     1,282,192  
Total       7,503,808           7,503,808