7. INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Net deferred tax asset

	2016			2015
Net operating loss carryforwards	$	64,366,000		$	61,363,000
R&D credit		1,221,000			1,221,000
Stock-based compensation		6,379,000			5,855,000
Capitalized R&D		18,508,000			15,082,000
Vacation and other		179,000			114,000
Loan modification		-			57,000
Total deferred tax assets		90,653 ,000			83,692,000
Fixed assets and intangibles		(49,000	)		(86,000	)
Total deferred tax liabilities		(49,000	)		(86,000	)
Valuation allowance		(90,604,000	)		(83,606,000	)
Net deferred tax asset	$	-		$	-

Reconciliation of effective tax rate

	2016			2015			2014
Federal Rate		34.00	%		34.00	%		34.00	%
State tax rate, net of federal benefit		3.92			5.12			5.15
State tax rate change		(22.00	)		(0.15	)		0.93
Other adjustments		(0.03	)		(0.21	)		0.00
Adjustment to deferreds		0.00			0.00			19.13
Permanent differences (1)		44.90			(0.71	)		(0.43	)
Change in valuation allowance		(60.79	)		(38.05	)		(58.78	)
Effective tax rate		0.00	%		0.00	%		0.00	%