6. INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Net deferred tax asset

Deferred taxes at September 30 consisted of the following:

	2014			2013
Net operating loss carryforwards	$	55,229,799		$	50,485,248
R&D credit		1,221,487			1,221,487
Stock-based compensation		4,054,450			3,323,353
Fixed assets and intangibles		26,329			-
Capitalized R&D		9,897,041			5,542,816
Vacation and other		108,891			270,121
Total deferred tax assets		70,537,997			60,843,025
Fixed assets and intangibles		-			(1,968	)
Total deferred tax liabilities		-			(1,968	)
Valuation allowance		(70,537,997	)		(60,841,057	)
Net deferred tax asset	$	-		$	-

Reconciliation of effective tax rate

The reconciliation of these rates for the three years ended September 30, 2014 is as follows:

	2014			2013			2012
Federal Rate		34.00	%		34.00	%		34.00	%
State tax rate, net of federal benefit		5.15			4.97			5.21
State tax rate change		0.93			(3.77	)		18.07
Other adjustments		0.00			0.00			(0.53	)
Expired tax attributes		0.00			(87.87	)		(33.54	)
Adjustment to deferreds		19.13			14.30			0.00
Permanent differences		(0.43	)		(1.59	)		(0.68	)
Change in valuation allowance		(58.78	)		39.96			(23.53	)
Effective tax rate		0.00	%		0.00	%		0.00	%