|
Delaware |
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|
7380 |
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59-2262718 |
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---|---|---|---|---|---|---|---|---|
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(State or other jurisdiction of incorporation or organization) |
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|
(Primary Standard Industrial Classification Code Number) |
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(I.R.S. Employer Identification Number) |
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| | | | | |
|
Merrill M. Kraines, Esq. Fulbright & Jaworski LLP (a Member Firm of Norton Rose Fulbright) 666 Fifth Avenue New York, New York 10103 Telephone: 212-318-3261 Facsimile: 212-318-3400 |
|
|
James M. Jenkins, Esq. Alexander R. McClean, Esq. Harter Secrest & Emery LLP 1600 Bausch & Lomb Place Rochester, New York 14604 Telephone: 585-232-6500 Facsimile: 585-232-2152 |
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| | | |
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Large accelerated filer ☐ |
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Accelerated filer ☒ |
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Non-accelerated filer ☐ |
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Smaller reporting company ☐ |
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| | | | | | | |
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Title of Each Class of Securities to be Registered |
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Proposed Maximum Aggregate Offering Price(1)(2) |
|
|
Amount of Registration Fee |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Common Stock(3) |
|
|
|
$ |
13,800,000 |
|
|
|
|
$ |
1,603.56 |
|
| ||
|
Warrants to purchase Common Stock |
|
|
|
|
— |
(4) |
|
|
|
|
|
— |
(5) |
|
|
|
Common Stock issuable upon exercise of Warrants(3)(6) |
|
|
|
$ |
17,250,000 |
|
|
|
|
$ |
2,004.45 |
|
| ||
|
Total Registration Fee |
|
|
|
$ |
31,050,000 |
|
|
|
|
$ |
3,608.01 |
|
| ||
| | | | | | | | |
|
|
|
|
Per Share |
|
|
Per Warrant |
|
|
Total |
| ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Public offering price |
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|
|
$ |
|
|
|
|
$ |
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|
$ |
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| ||||||
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Underwriting discounts and commissions(1) |
|
|
|
$ |
|
|
|
|
$ |
|
|
|
|
$ |
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| ||||||
|
Proceeds, before expenses, to us(3) |
|
|
|
$ |
|
|
|
|
$ |
|
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|
$ |
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| | | | | |
|
Proceeds: |
|
|
|
|
|
|
| |
|
Gross Proceeds |
|
|
|
$ |
12,000,000 |
|
| |
|
Fees and Expenses |
|
|
|
|
(1,360,500 |
) |
|
|
|
Net Proceeds |
|
|
|
$ |
10,639,500 |
|
| |
|
Uses: |
|
|
|
|
|
|
| |
|
Working Capital and Repurchase of Warrants |
|
|
|
$ |
8,100,000 |
|
| |
|
Business Development |
|
|
|
|
1,539,500 |
|
| |
|
Research and Development |
|
|
|
|
1,000,000 |
|
| |
|
Total Uses |
|
|
|
$ |
10,639,500 |
|
| |
| | | | |
|
|
|
|
Years Ended September 30, |
|
|
Nine Months Ended June 30, |
| |||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
2013 |
|
|
2012 |
|
|
2011 |
|
|
2010 |
|
|
2009 |
|
|
2014 |
|
|
2013 |
| ||||||||||||||||||||||||||||
|
Revenues: |
|
|
|
$ |
2,036,222 |
|
|
|
|
$ |
1,854,694 |
|
|
|
|
$ |
968,848 |
|
|
|
|
$ |
519,844 |
|
|
|
|
$ |
295,162 |
|
|
|
|
$ |
2,075,698 |
|
|
|
|
$ |
1,307,117 |
|
| |||||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Selling, general and administrative |
|
|
|
|
11,198,505 |
|
|
|
|
|
7,615,734 |
|
|
|
|
|
8,388,873 |
|
|
|
|
|
7,189,020 |
|
|
|
|
|
6,637,672 |
|
|
|
|
|
10,093,631 |
|
|
|
|
|
8,516,390 |
|
| |||||||
|
Research and development |
|
|
|
|
692,480 |
|
|
|
|
|
432,669 |
|
|
|
|
|
268,876 |
|
|
|
|
|
75,961 |
|
|
|
|
|
135,405 |
|
|
|
|
|
1,085,416 |
|
|
|
|
|
509,132 |
|
| |||||||
|
Depreciation and amortization |
|
|
|
|
321,074 |
|
|
|
|
|
313,940 |
|
|
|
|
|
367,556 |
|
|
|
|
|
371,914 |
|
|
|
|
|
418,128 |
|
|
|
|
|
325,448 |
|
|
|
|
|
105,105 |
|
| |||||||
|
Total operating expenses |
|
|
|
|
12,212,059 |
|
|
|
|
|
8,362,343 |
|
|
|
|
|
9,025,305 |
|
|
|
|
|
7,636,895 |
|
|
|
|
|
7,191,205 |
|
|
|
|
|
11,504,495 |
|
|
|
|
|
9,130,627 |
|
| |||||||
|
LOSS FROM OPERATIONS |
|
|
|
|
(10,175,837 |
) |
|
|
|
|
|
(6,507,649 |
) |
|
|
|
|
|
(8,056,457 |
) |
|
|
|
|
|
(7,117,051 |
) |
|
|
|
|
|
(6,896,043 |
) |
|
|
|
|
|
(9,428,797 |
) |
|
|
|
|
|
(7,823,510 |
) |
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Interest income (expense), net |
|
|
|
|
1,272 |
|
|
|
|
|
(643,063 |
) |
|
|
|
|
|
(2,458,667 |
) |
|
|
|
|
|
(792,549 |
) |
|
|
|
|
|
(1,182,695 |
) |
|
|
|
|
|
784 |
|
|
|
|
|
738 |
|
| |||
|
Other (expense) income, net |
|
|
|
|
(3,761 |
) |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
12,023,888 |
|
|
|
|
|
130,186 |
|
|
|
|
|
— |
|
| ||||||
|
Loss on change in fair value of warrant liability |
|
|
|
|
(7,508,146 |
) |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(1,663,316 |
) |
|
|
|
|
|
(6,145,229 |
) |
|
| ||||
|
(Loss) income before provision for income taxes |
|
|
|
|
(17,686,472 |
) |
|
|
|
|
|
(7,150,712 |
) |
|
|
|
|
|
(10,515,124 |
) |
|
|
|
|
|
(7,909,600 |
) |
|
|
|
|
|
3,945,150 |
|
|
|
|
|
(10,961,143 |
) |
|
|
|
|
|
(13,968,001 |
) |
|
| |
|
Income taxes (benefit) |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
572 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
| |||||||
|
NET (LOSS) INCOME |
|
|
|
$ |
(17,686,472 |
) |
|
|
|
|
$ |
(7,150,712 |
) |
|
|
|
|
$ |
(10,515,124 |
) |
|
|
|
|
$ |
(7,909,600 |
) |
|
|
|
|
$ |
3,944,578 |
|
|
|
|
$ |
(10,961,143 |
) |
|
|
|
|
$ |
(13,968,001 |
) |
|
| |
|
Net (loss) income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Basic |
|
|
|
$ |
(0.03 |
) |
|
|
|
|
$ |
(0.01 |
) |
|
|
|
|
$ |
(0.03 |
) |
|
|
|
|
$ |
(0.03 |
) |
|
|
|
|
$ |
0.02 |
|
|
|
|
$ |
(0.01 |
) |
|
|
|
|
$ |
(0.02 |
) |
|
| |
|
Diluted |
|
|
|
$ |
(0.03 |
) |
|
|
|
|
$ |
(0.01 |
) |
|
|
|
|
$ |
(0.03 |
) |
|
|
|
|
$ |
(0.03 |
) |
|
|
|
|
$ |
0.01 |
|
|
|
|
$ |
(0.01 |
) |
|
|
|
|
$ |
(0.02 |
) |
|
| |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Basic |
|
|
|
|
703,852,716 |
|
|
|
|
|
576,091,498 |
|
|
|
|
|
376,833,809 |
|
|
|
|
|
300,352,913 |
|
|
|
|
|
251,520,538 |
|
|
|
|
|
804,032,409 |
|
|
|
|
|
683,709,950 |
|
| |||||||
|
Diluted |
|
|
|
|
703,852,716 |
|
|
|
|
|
576,091,498 |
|
|
|
|
|
376,833,809 |
|
|
|
|
|
300,352,913 |
|
|
|
|
|
308,912,411 |
|
|
|
|
|
804,032,409 |
|
|
|
|
|
683,709,950 |
|
| |||||||
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
As of September 30, |
|
|
As of June 30, 2014 |
| ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
2013 |
|
|
2012 |
|
|
2011 |
|
|
2010 |
|
|
2009 |
| |||||||||||||||||||||||||||
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Cash and cash equivalents |
|
|
|
$ |
6,360,301 |
|
|
|
|
$ |
724,782 |
|
|
|
|
$ |
2,747,294 |
|
|
|
|
$ |
17,618 |
|
|
|
|
$ |
213,307 |
|
|
|
|
$ |
2,025,716 |
|
| ||||||
|
Accounts receivable, net of allowance |
|
|
|
|
672,638 |
|
|
|
|
|
296,994 |
|
|
|
|
|
208,587 |
|
|
|
|
|
63,029 |
|
|
|
|
|
47,302 |
|
|
|
|
|
518,274 |
|
| ||||||
|
Prepaid expenses |
|
|
|
|
174,096 |
|
|
|
|
|
80,037 |
|
|
|
|
|
76,290 |
|
|
|
|
|
161,456 |
|
|
|
|
|
79,436 |
|
|
|
|
|
170,792 |
|
| ||||||
|
Total current assets |
|
|
|
|
7,207,035 |
|
|
|
|
|
1,101,813 |
|
|
|
|
|
3,032,171 |
|
|
|
|
|
242,103 |
|
|
|
|
|
340,045 |
|
|
|
|
|
2,714,782 |
|
| ||||||
|
Noncurrent assets |
|
|
|
|
1,267,931 |
|
|
|
|
|
247,121 |
|
|
|
|
|
471,385 |
|
|
|
|
|
1,171,211 |
|
|
|
|
|
1,167,025 |
|
|
|
|
|
1,056,233 |
|
| ||||||
|
Total assets |
|
|
|
$ |
8,374,966 |
|
|
|
|
$ |
1,348,934 |
|
|
|
|
|
3,503,556 |
|
|
|
|
$ |
1,413,314 |
|
|
|
|
$ |
1,507,070 |
|
|
|
|
$ |
3,771,015 |
|
| ||||||
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Accounts payable and accrued liabilities |
|
|
|
$ |
966,977 |
|
|
|
|
$ |
592,009 |
|
|
|
|
$ |
768,061 |
|
|
|
|
$ |
967,550 |
|
|
|
|
$ |
843,491 |
|
|
|
|
$ |
1,259,439 |
|
| ||||||
|
Advances from Officers |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
50,000 |
|
|
|
|
|
— |
|
| | | | | | | | |||||
|
Convertible notes payable, net |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
3,730,880 |
|
|
|
|
|
1,774,080 |
|
|
|
|
|
2,410,411 |
|
| | | | | | | | |||||
|
Deferred revenue |
|
|
|
|
148,503 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
348,624 |
|
| ||||||
|
Total current liabilities |
|
|
|
|
1,115,480 |
|
|
|
|
|
592,009 |
|
|
|
|
|
4,498,941 |
|
|
|
|
|
2,791,630 |
|
|
|
|
|
3,253,902 |
|
|
|
|
|
1,608,063 |
|
| ||||||
|
Convertible note payable-related party, net |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
219,714 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||||||
|
Warrant liability |
|
|
|
|
2,643,449 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
1,851,723 |
|
| ||||||
|
Total liabilities |
|
|
|
|
3,758,929 |
|
|
|
|
|
592,009 |
|
|
|
|
|
4,498,941 |
|
|
|
|
|
3,011,344 |
|
|
|
|
|
3,253,902 |
|
|
|
|
|
3,459,786 |
|
| ||||||
|
Preferred stock |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||||||
|
Common stock |
|
|
|
|
786,527 |
|
|
|
|
|
646,183 |
|
|
|
|
|
473,326 |
|
|
|
|
|
346,366 |
|
|
|
|
|
275,204 |
|
|
|
|
|
827,332 |
|
| ||||||
|
Additional paid in capital |
|
|
|
|
190,523,121 |
|
|
|
|
|
169,117,881 |
|
|
|
|
|
160,387,716 |
|
|
|
|
|
149,396,907 |
|
|
|
|
|
141,409,667 |
|
|
|
|
|
197,138,651 |
|
| ||||||
|
Accumulated deficit |
|
|
|
|
(186,693,611 |
) |
|
|
|
|
|
(169,007,139 |
) |
|
|
|
|
|
(161,856,427 |
) |
|
|
|
|
|
(151,341,303 |
) |
|
|
|
|
|
(143,431,703 |
) |
|
|
|
|
|
(197,654,754 |
) |
|
|
|
Total stockholders’ equity (deficit) |
|
|
|
|
4,616,037 |
|
|
|
|
|
756,925 |
|
|
|
|
|
(995,385 |
) |
|
|
|
|
|
(1,598,030 |
) |
|
|
|
|
|
(1,746,832 |
) |
|
|
|
|
|
311,229 |
|
| |||
|
Total Liabilities and Stockholders’ Equity (Deficit) |
|
|
|
$ |
8,374,966 |
|
|
|
|
$ |
1,348,934 |
|
|
|
|
$ |
3,503,556 |
|
|
|
|
$ |
1,413,314 |
|
|
|
|
$ |
1,507,070 |
|
|
|
|
$ |
3,771,015 |
|
| ||||||
| | | | | | | | | | | | | | | | | | | | |
|
Proceeds: |
|
|
|
|
|
|
| |
|
Gross Proceeds |
|
|
|
$ |
12,000,000 |
|
| |
|
Fees and Expenses |
|
|
|
|
(1,360,500 |
) |
|
|
|
Net Proceeds |
|
|
|
$ |
10,639,500 |
|
| |
|
Uses: |
|
|
|
|
|
|
| |
|
Working Capital and Repurchase of Warrants |
|
|
|
$ |
8,100,000 |
|
| |
|
Business Development |
|
|
|
|
1,539,500 |
|
| |
|
Research and Development |
|
|
|
|
1,000,000 |
|
| |
|
Total Uses |
|
|
|
$ |
10,639,500 |
|
| |
| | | | |
|
|
|
|
Fiscal 2013 |
|
|
Fiscal 2014 |
| ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
High |
|
|
Low |
|
|
High |
|
|
Low |
| ||||||||||||||||
|
First Quarter |
|
|
|
$ |
0.29 |
|
|
|
|
$ |
0.17 |
|
|
|
|
$ |
0.19 |
|
|
|
|
$ |
0.08 |
|
| ||||
|
Second Quarter |
|
|
|
$ |
0.23 |
|
|
|
|
$ |
0.13 |
|
|
|
|
$ |
0.18 |
|
|
|
|
$ |
0.12 |
|
| ||||
|
Third Quarter |
|
|
|
$ |
0.26 |
|
|
|
|
$ |
0.17 |
|
|
|
|
$ |
0.14 |
|
|
|
|
$ |
0.10 |
|
| ||||
|
Fourth Quarter |
|
|
|
$ |
0.20 |
|
|
|
|
$ |
0.09 |
|
|
|
|
$ |
0.13 |
|
|
|
|
$ |
0.09 |
|
| ||||
| | | | | | | | | | | | | | |
|
Public offering price per share |
|
|
|
|
|
|
|
|
|
$ |
|
| |||
|
Net tangible book value per share as of June 30, 2014 |
|
|
|
$ |
1,811,000 |
|
|
|
|
|
|
|
| ||
|
Increase in net tangible book value per share attributable to this offering |
|
|
|
$ |
|
|
|
|
|
|
|
| |||
|
Adjusted net tangible book value per share after this offering |
|
|
|
|
|
|
|
|
|
$ |
|
| |||
|
Amount of dilution in net tangible book value per share to new investors in this offering |
|
|
|
|
|
|
|
|
|
$ |
|
|
| ||
| | | | | | | | |
|
|
|
|
As of June 30, 2014 |
| |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
Unaudited, Actual |
|
|
Unaudited, Pro forma |
| ||||||||
|
Cash and cash equivalents |
|
|
|
$ |
2,025,716 |
|
|
|
|
|
|
| |||
|
Warrant liability |
|
|
|
|
1,851,723 |
|
|
|
|
|
|
|
| ||
|
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of June 30, 2014 |
|
|
|
$ |
|
|
|
|
$ |
|
| ||||
|
Series A Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares outstanding as of June 30, 2014 |
| | | | | | | | | | | | | | |
|
Series B Preferred stock, par value $.001 per share; 10,000,000 shares authorized; -0- shares outstanding as of June 30, 2014 Common stock, $0.001 par value per share; 1,350,000,000 shares authorized; 827,332,292 shares issued and outstanding as of June 30, 2014 |
|
|
|
|
827,332 |
|
|
|
|
|
|
|
| ||
|
Additional paid-in capital |
|
|
|
|
197,138,651 |
|
|
|
|
|
|
|
| ||
|
Accumulated deficit |
|
|
|
|
(197,654,754 |
) |
|
|
|
|
|
|
|
| |
|
Total Stockholders’ Equity |
|
|
|
$ |
311,229 |
|
|
|
|
|
|
|
| ||
| | | | | | | | |
|
|
|
|
Payments Due By Period |
| ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Contractual Obligations (in thousands) |
|
|
Total |
|
|
Less Than 1 Year |
|
|
1 – 3 Years |
|
|
3 – 5 Years |
|
|
Over 5 Years |
| ||||||||||||||||||||
|
Lease commitments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Operating leases |
|
|
|
$ |
1,199,187 |
|
|
|
|
$ |
450,617 |
|
|
|
|
$ |
748,570 |
|
|
|
|
$ |
— |
|
|
|
|
$ |
— |
|
| |||||
|
Fixed common area maintenance |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
| |||||
|
Total |
|
|
|
$ |
1,199,187 |
|
|
|
|
$ |
450,617 |
|
|
|
|
$ |
748,570 |
|
|
|
|
$ |
— |
|
|
|
|
$ |
— |
|
| |||||
| | | | | | | | | | | | | | | | | |
|
Securities Issued |
|
|
Initial Purchase Agreement |
|
|
Second Purchase Agreement |
| ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
Shares issued |
|
|
Price per share |
|
|
Shares issued |
|
|
Price per share |
| ||||||||||||||||
|
Common Stock |
|
|
|
|
10,752,688 |
|
|
|
|
$ |
0.1860 |
|
|
|
|
|
10,695,187 |
|
|
|
|
$ |
0.1870 |
|
| ||||
|
Series A Warrants |
|
|
|
|
10,752,688 |
|
|
|
|
$ |
0.2232 |
|
|
|
|
|
10,695,187 |
|
|
|
|
$ |
0.2431 |
|
| ||||
|
Series B Warrants |
|
|
|
|
29,569,862 |
|
|
|
|
$ |
0.2232 |
|
|
|
|
|
29,411,764 |
|
|
|
|
$ |
0.2431 |
|
| ||||
|
Series C Warrants |
|
|
|
|
26,881,720 |
|
|
|
|
$ |
0.2232 |
|
|
|
|
|
26,737,967 |
|
|
|
|
$ |
0.2431 |
|
| ||||
|
Series A Preferred Stock |
|
|
|
|
5,500 |
|
|
|
|
$ |
1,000 |
|
|
|
|
|
— |
|
|
|
|
$ |
— |
|
| ||||
|
Series B Preferred Stock |
|
|
|
|
— |
|
|
|
|
$ |
— |
|
|
|
|
|
5,500 |
|
|
|
|
$ |
1,000 |
|
| ||||
| | | | | | | | | | | | | | |
|
Name |
|
|
Age |
|
|
Title |
|
|
Board of Directors |
|
---|---|---|---|---|---|---|---|---|---|---|---|
|
James A. Hayward |
|
|
61 |
|
|
Chief Executive Officer, President, and Chairman of the Board |
|
|
Director |
|
|
John Bitzer, III |
|
|
53 |
|
|
|
|
|
Director |
|
|
Charles Ryan |
|
|
50 |
|
|
|
|
|
Director |
|
|
Yacov Shamash |
|
|
64 |
|
|
|
|
|
Director |
|
|
Sanford R. Simon |
|
|
71 |
|
|
|
|
|
Director |
|
|
Karol Gray |
|
|
61 |
|
|
Chief Financial Officer |
|
|
|
|
|
Judith Murrah |
|
|
55 |
|
|
Chief Information Officer |
|
|
|
|
|
Ming-Hwa Benjamin Liang |
|
|
50 |
|
|
Secretary and Strategic Technology Development Officer |
|
|
|
|
| | | | | | | |
|
Name |
|
|
Audit |
|
|
Compensation |
|
|
Nominating |
|
---|---|---|---|---|---|---|---|---|---|---|---|
|
James A. Hayward |
|
|
— |
|
|
— |
|
|
— |
|
|
John Bitzer, III(I) |
|
|
![]() |
|
|
![]() |
|
|
![]() |
|
|
Charles Ryan(I) |
|
|
![]() |
|
|
![]() |
|
|
— |
|
|
Sanford R. Simon(I) |
|
|
— |
|
|
— |
|
|
![]() |
|
|
Yacov Shamash(I) |
|
|
![]() |
|
|
![]() |
|
|
![]() |
|
| | | | | | | |
|
![]() |
|
|
Chairperson |
|
|
![]() |
|
|
Member |
|
|
(I) |
|
|
Independent director |
|
| | | |
|
|
|
|
Year |
|
|
Salary ($) (c) |
|
|
Bonus ($) (d) |
|
|
Stock Awards ($) (e) |
|
|
Option Awards ($) (f)(1) |
|
|
Non-Equity Incentive Plan Compensation ($) (g) |
|
|
Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) (h) |
|
|
All Other Compensation ($) (i) |
|
|
Total ($) (j) |
| ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
James A. Hayward Chairman, President and CEO |
|
|
|
|
2014 |
|
|
|
|
|
343,269 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
3,530,437 |
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,873,706 |
|
| |||||||||
|
|
|
2013 |
|
|
|
|
|
319,974 |
|
|
|
|
|
150,000 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
469,974 |
|
| ||||||||||||
|
|
|
2012 |
|
|
|
|
|
242,334 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
242,334 |
|
| ||||||||||||
|
Karol K. Gray CFO |
|
|
|
|
2014 |
|
|
|
|
|
310,962 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
207,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
518,005 |
|
| |||||||||
|
|
|
2013 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||||||||||||
|
|
|
2011 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||||||||||||
|
Judith Murrah CIO(3) |
|
|
|
|
2014 |
|
|
|
|
|
250,000 |
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
195,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
445,691 |
|
| |||||||||
|
|
|
2013 |
|
|
|
|
|
81,731 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
81,731 |
|
| ||||||||||||
|
|
|
2012 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
|
|
| ||||||||||||
|
Ming-Hwa Liang CTO and Secretary |
|
|
|
|
2014 |
|
|
|
|
|
140,000 |
|
|
|
|
|
2,000 |
|
|
|
|
|
— |
|
|
|
|
|
211,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
353,826 |
|
| |||||||||
|
|
|
2013 |
|
|
|
|
|
140,000 |
|
|
|
|
|
10,000 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
150,000 |
|
| ||||||||||||
|
|
|
2012 |
|
|
|
|
|
140,000 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
140,000 |
|
| ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Name |
|
|
Grant Date |
|
|
All Other Stock Awards: Number of Shares of Stock or Units(1) (#) |
|
|
All Other Option Awards: Number of Securities Underlying Options (#) |
|
|
Exercise or Base Price of Option Awards ($/Sh) |
|
|
Grant Date Fair Value of Stock and Option Awards(3) ($) |
| ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
James A. Hayward |
|
|
|
|
10/17/2013 |
(1) |
|
|
|
|
|
— |
|
|
|
|
|
50,000,000 |
|
|
|
|
$ |
0.0970 |
|
|
|
|
|
3,530,437 |
|
| ||||
|
Karol K. Gray |
|
|
|
|
12/10/2013 |
(2) |
|
|
|
|
|
— |
|
|
|
|
|
500,000 |
|
|
|
|
$ |
0.1360 |
|
|
|
|
|
49,640 |
|
| ||||
|
|
|
4/14/2014 |
(1) |
|
|
|
|
|
— |
|
|
|
|
|
2,000,000 |
|
|
|
|
$ |
0.1100 |
|
|
|
|
|
157,403 |
|
| |||||||
|
Judith Murrah |
|
|
|
|
12/02/2013 |
(1) |
|
|
|
|
|
— |
|
|
|
|
|
2,000,000 |
|
|
|
|
$ |
0.1170 |
|
|
|
|
|
170,871 |
|
| ||||
|
|
|
12/10/2013 |
(2) |
|
|
|
|
|
— |
|
|
|
|
|
250,000 |
|
|
|
|
$ |
0.1360 |
|
|
|
|
|
24,820 |
|
| |||||||
|
Ming-Hwa Liang |
|
|
|
|
10/17/2013 |
(1) |
|
|
|
|
|
— |
|
|
|
|
|
3,000,000 |
|
|
|
|
$ |
0.0970 |
|
|
|
|
|
211,826 |
|
| ||||
| | | | | | | | | | | | | | | | | |
|
|
|
|
Option Awards |
| |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Name |
|
|
Number of Securities Underlying Unexercised Options (#) Exercisable |
|
|
Number of Securities Underlying Unexercised Options (#) Unexercisable |
|
|
Option Exercise Price ($) |
|
|
Option Expiration Date |
| ||||||||||||||||
|
James A. Hayward |
|
|
|
|
17,000,000 |
(1) |
|
|
|
|
|
— |
|
|
|
|
$ |
0.050 |
|
|
|
|
|
5/27/2015 |
|
| |||
|
|
|
10,000,000 |
(2) |
|
|
|
|
|
— |
|
|
|
|
|
0.060 |
|
|
|
|
|
7/1/2015 |
|
| ||||||
|
|
|
40,000,000 |
(3) |
|
|
|
|
|
— |
|
|
|
|
|
0.0585 |
|
|
|
|
|
7/11/2018 |
|
| ||||||
|
|
|
— |
(4) |
|
|
|
|
|
50,000,000 |
|
|
|
|
|
0.0970 |
|
|
|
|
|
10/16/2018 |
|
| ||||||
|
Karol K. Gray |
|
|
|
|
500,000 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
0.1360 |
|
|
|
|
|
12/09/2018 |
|
| |||
|
|
|
— |
(6) |
|
|
|
|
|
2,000,000 |
|
|
|
|
|
0.1100 |
|
|
|
|
|
04/13/2019 |
|
| ||||||
|
Judith Murrah |
|
|
|
|
— |
(7) |
|
|
|
|
|
2,000,000 |
|
|
|
|
|
0.1170 |
|
|
|
|
|
12/01/2018 |
|
| |||
|
|
|
250,000 |
(5) |
|
|
|
|
|
— |
|
|
|
|
|
0.1360 |
|
|
|
|
|
12/09/2018 |
|
| ||||||
|
Ming-Hwa Liang |
|
|
|
|
7,000,000 |
(1) |
|
|
|
|
|
— |
|
|
|
|
|
0.0500 |
|
|
|
|
|
5/27/2015 |
|
| |||
|
|
|
10,000,000 |
(2) |
|
|
|
|
|
— |
|
|
|
|
|
0.0600 |
|
|
|
|
|
7/1/2015 |
|
| ||||||
|
|
|
— |
(4) |
|
|
|
|
|
3,000,000 |
|
|
|
|
|
0.0970 |
|
|
|
|
|
10/16/2018 |
|
| ||||||
| | | | | | | | | | | | | | |
|
|
|
|
Fees Earned or Paid in Cash ($) |
|
|
Stock Awards ($) |
|
|
Option Awards ($)(1)(2) |
|
|
All Other Compensation ($) |
|
|
Total ($)(1)(5) |
| ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Sanford R. Simon |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
40,000 |
|
|
|
|
|
— |
|
|
|
|
|
40,000 |
|
| |||||
|
Yacov Shamash(2) |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
53,350 |
|
|
|
|
|
— |
|
|
|
|
|
53,350 |
|
| |||||
|
John Bitzer, III(3) |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
45,000 |
|
|
|
|
|
— |
|
|
|
|
|
45,000 |
|
| |||||
|
Karol Gray(4) |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
40,000 |
|
|
|
|
|
— |
|
|
|
|
|
40,000 |
|
| |||||
|
Charles Ryan(3) |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
45,000 |
|
|
|
|
|
— |
|
|
|
|
|
45,000 |
|
| |||||
| | | | | | | | | | | | | | | | | |
|
Name and Address of Beneficial Owner |
|
|
Title of Class |
|
|
Number of Shares Owned(1)(2) |
|
|
Percentage of Class(3) |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Executive Officers and Directors: |
| | | | | | | | | | | | | | | | | |
|
James A. Hayward |
|
|
Common Stock |
|
|
|
|
165,247,882 |
(4) |
|
|
|
|
|
19.8 |
% |
|
|
|
Yacov Shamash |
|
|
Common Stock |
|
|
|
|
3,585,206 |
(5) |
|
|
|
|
|
* |
|
| |
|
John Bitzer, III(11) |
|
|
Common Stock |
|
|
|
|
67,360,224 |
(6)(7) |
|
|
|
|
|
8.06 |
% |
|
|
|
Karol Gray |
|
|
Common Stock |
|
|
|
|
2,677,206 |
(6)(12) |
|
|
|
|
|
* |
|
| |
|
Judith Murrah |
|
|
Common Stock |
|
|
|
|
424,612 |
(12) |
|
|
|
|
|
* |
|
| |
|
Charles Ryan |
|
|
Common Stock |
|
|
|
|
2,152,889 |
(6) |
|
|
|
|
|
* |
|
| |
|
Ben Liang |
|
|
Common Stock |
|
|
|
|
17,344,870 |
(8) |
|
|
|
|
|
2.1 |
% |
|
|
|
Sanford R. Simon |
|
|
Common Stock |
|
|
|
|
2,899,869 |
(9) |
|
|
|
|
|
* |
|
| |
|
All directors and officers as a group (8 persons) |
|
|
Common Stock |
|
|
|
|
261,692,758 |
(10) |
|
|
|
|
|
31.30 |
% |
|
|
|
5% Stockholders: |
| | | | | | | | | | | | | | | | | |
|
Delabarta, Inc.(11) |
|
|
Common Stock |
|
|
|
|
63,563,335 |
|
|
|
|
|
7.7 |
% |
|
| |
| | | | | | | | | | | |
|
Underwriter |
|
|
Number of Shares |
| ||||
---|---|---|---|---|---|---|---|---|---|
|
Maxim Group LLC |
|
|
|
|
|
|
| |
|
________________ |
|
|
|
|
|
|
| |
|
Total |
|
|
|
|
|
|
| |
| | | | |
|
|
|
|
Per Share(1) |
|
|
Total Without Over Allotment |
|
|
Total With Over-Allotment |
| ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Public Offering price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Underwriting discounts and commissions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Proceeds, before expenses, to us |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| | | | | | | | | | | |
|
|
|
|
Page |
| ||||
---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
| |||
|
|
|
|
|
|
| |||
|
|
|
|
|
|
| |||
| | | | | |
|
|
|
|
Page |
| ||||
---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
| |||
|
|
|
|
|
|
| |||
|
|
|
|
|
|
| |||
|
|
|
|
|
|
| |||
|
|
|
|
|
|
| |||
| | | | | |
|
|
|
|
Page |
| ||||
---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
| |||
|
|
|
|
|
|
| |||
|
|
|
|
|
|
| |||
|
|
|
|
|
|
| |||
|
|
|
|
|
|
| |||
| | | | | |
|
|
|
|
June 30, 2014 |
|
|
September 30, 2013 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
(unaudited) |
| |||||||||||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Current assets: |
| | | | | | | | | | | | | | |
|
Cash and cash equivalents |
|
|
|
$ |
2,025,716 |
|
|
|
|
$ |
6,360,301 |
|
| ||
|
Accounts receivable, net of allowance of $36,757 and $62,415 at June 30, 2014 and September 30, 2013, respectively |
|
|
|
|
518,274 |
|
|
|
|
|
672,638 |
|
| ||
|
Prepaid expenses |
|
|
|
|
170,792 |
|
|
|
|
|
174,096 |
|
| ||
|
Total current assets |
|
|
|
|
2,714,782 |
|
|
|
|
|
7,207,035 |
|
| ||
|
Property, plant and equipment, net |
|
|
|
|
649,417 |
|
|
|
|
|
695,995 |
|
| ||
|
Other assets: |
| | | | | | | | | | | | | | |
|
Deposits |
|
|
|
|
55,488 |
|
|
|
|
|
51,260 |
|
| ||
|
Intangible assets: |
| ||||||||||||||
|
Intellectual property, net of accumulated amortization and impairment of $232,751 and $163,403 at June 30, 2014 and September 30, 2013, respectively |
|
|
|
|
351,328 |
|
|
|
|
|
420,676 |
|
| ||
|
Total Assets |
|
|
|
$ |
3,771,015 |
|
|
|
|
$ |
8,374,966 |
|
| ||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Current liabilities: |
| ||||||||||||||
|
Accounts payable and accrued liabilities |
|
|
|
$ |
1,259,439 |
|
|
|
|
$ |
966,977 |
|
| ||
|
Deferred revenue |
|
|
|
|
348,624 |
|
|
|
|
|
148,503 |
|
| ||
|
Total current liabilities |
|
|
|
|
1,608,063 |
|
|
|
|
|
1,115,480 |
|
| ||
|
Warrant liability |
|
|
|
|
1,851,723 |
|
|
|
|
|
2,643,449 |
|
| ||
|
Total liabilities |
|
|
|
|
3,459,786 |
|
|
|
|
|
3,758,929 |
|
| ||
|
Commitments and contingencies |
| ||||||||||||||
|
Stockholders’ Equity |
| ||||||||||||||
|
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of June 30, 2014 and September 30, 2013 |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
Series A Preferred stock, par value $0.001 per share, 10,000,000 shares authorized; -0- issued and outstanding as of June 30, 2014 and September 30, 2013 |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
Series B Preferred stock, par value $0.001 per share, 10,000,000 shares authorized; -0- issued and outstanding as of June 30, 2014 and September 30, 2013 |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
Common stock, par value $0.001 per share; 1,350,000,000 shares authorized; 827,332,292 and 786,526,955 shares issued and outstanding as of June 30, 2014 and September 30, 2013, respectively |
|
|
|
|
827,332 |
|
|
|
|
|
786,527 |
|
| ||
|
Additional paid in capital |
|
|
|
|
197,138,651 |
|
|
|
|
|
190,523,121 |
|
| ||
|
Accumulated deficit |
|
|
|
|
(197,654,754 |
) |
|
|
|
|
|
(186,693,611 |
) |
|
|
|
Total stockholders’ equity |
|
|
|
|
311,229 |
|
|
|
|
|
4,616,037 |
|
| ||
|
Total Liabilities and Stockholders’ Equity |
|
|
|
$ |
3,771,015 |
|
|
|
|
$ |
8,374,966 |
|
| ||
| | | | | | | | |
|
|
|
|
Three Months Ended June 30, |
|
|
Nine Months Ended June 30, |
| ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
| ||||||||||||||||
|
Revenues |
|
|
|
$ |
841,197 |
|
|
|
|
$ |
644,842 |
|
|
|
|
$ |
2,075,698 |
|
|
|
|
$ |
1,307,117 |
|
| ||||
|
Operating expenses: |
| ||||||||||||||||||||||||||||
|
Selling, general and administrative |
|
|
|
|
2,948,452 |
|
|
|
|
|
3,240,815 |
|
|
|
|
|
10,093,631 |
|
|
|
|
|
8,516,390 |
|
| ||||
|
Research and development |
|
|
|
|
266,331 |
|
|
|
|
|
184,981 |
|
|
|
|
|
1,085,416 |
|
|
|
|
|
509,132 |
|
| ||||
|
Depreciation and amortization |
|
|
|
|
113,424 |
|
|
|
|
|
62,280 |
|
|
|
|
|
325,448 |
|
|
|
|
|
105,105 |
|
| ||||
|
Total operating expenses |
|
|
|
|
3,328,207 |
|
|
|
|
|
3,488,076 |
|
|
|
|
|
11,504,495 |
|
|
|
|
|
9,130,627 |
|
| ||||
|
LOSS FROM OPERATIONS |
|
|
|
|
(2,487,010 |
) |
|
|
|
|
|
(2,843,234 |
) |
|
|
|
|
|
(9,428,797 |
) |
|
|
|
|
|
(7,823,510 |
) |
|
|
|
Other income (expense): |
| ||||||||||||||||||||||||||||
|
Interest income (expense), net |
|
|
|
|
111 |
|
|
|
|
|
333 |
|
|
|
|
|
784 |
|
|
|
|
|
738 |
|
| ||||
|
Other income (expense), net |
|
|
|
|
52,299 |
|
|
|
|
|
— |
|
|
|
|
|
130,186 |
|
|
|
|
|
— |
|
| ||||
|
Gain (loss) on change in fair value of warrant liability |
|
|
|
|
515,543 |
|
|
|
|
|
707,289 |
|
|
|
|
|
(1,663,316 |
) |
|
|
|
|
|
(6,145,229 |
) |
|
| ||
|
Net loss before provision for income taxes |
|
|
|
|
(1,919,057 |
) |
|
|
|
|
|
(2,135,612 |
) |
|
|
|
|
|
(10,961,143 |
) |
|
|
|
|
|
(13,968,001 |
) |
|
|
|
Provision for income taxes |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||||
|
NET LOSS |
|
|
|
$ |
(1,919,057 |
) |
|
|
|
|
$ |
(2,135,612 |
) |
|
|
|
|
$ |
(10,961,143 |
) |
|
|
|
|
$ |
(13,968,001 |
) |
|
|
|
Net loss per share – basic and diluted |
|
|
|
$ |
(0.00 |
) |
|
|
|
|
$ |
(0.00 |
) |
|
|
|
|
$ |
(0.01 |
) |
|
|
|
|
$ |
(0.02 |
) |
|
|
|
Weighted average shares outstanding – Basic and diluted |
|
|
|
|
814,155,727 |
|
|
|
|
|
721,142,161 |
|
|
|
|
|
804,032,409 |
|
|
|
|
|
683,709,950 |
|
| ||||
| | | | | | | | | | | | | | |
|
|
|
|
Nine Months Ended June 30, |
| |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
2014 |
|
|
2013 |
| ||||||||
|
Cash flows from operating activities: |
| ||||||||||||||
|
Net loss |
|
|
|
$ |
(10,961,143 |
) |
|
|
|
|
$ |
(13,968,001 |
) |
|
|
|
Adjustments to reconcile net loss to net cash used in operating activities: |
| ||||||||||||||
|
Depreciation and amortization |
|
|
|
|
325,448 |
|
|
|
|
|
105,105 |
|
| ||
|
Stock based compensation expense |
|
|
|
|
1,674,436 |
|
|
|
|
|
1,334,993 |
|
| ||
|
Change in fair value of warrant liability |
|
|
|
|
1,663,316 |
|
|
|
|
|
6,145,229 |
|
| ||
|
Fair value change from employee option modification |
|
|
|
|
43,401 |
|
|
|
|
|
408,605 |
|
| ||
|
Fair value of vested warrants issued for services |
|
|
|
|
— |
|
|
|
|
|
28,256 |
|
| ||
|
Common stock issued for consulting services |
|
|
|
|
337,500 |
|
|
|
|
|
— |
|
| ||
|
Bad debt expense |
|
|
|
|
16,878 |
|
|
|
|
|
70,000 |
|
| ||
|
Change in operating assets and liabilities: |
| ||||||||||||||
|
Accounts receivable |
|
|
|
|
137,486 |
|
|
|
|
|
(360,661 |
) |
|
| |
|
Prepaid expenses and deposits |
|
|
|
|
(924 |
) |
|
|
|
|
|
(76,510 |
) |
|
|
|
Accounts payable and accrued liabilities |
|
|
|
|
292,462 |
|
|
|
|
|
616,067 |
|
| ||
|
Deferred revenue |
|
|
|
|
200,121 |
|
|
|
|
|
— |
|
| ||
|
Net cash used in operating activities |
|
|
|
|
(6,271,019 |
) |
|
|
|
|
|
(5,696,917 |
) |
|
|
|
Cash flows from investing activities: |
| ||||||||||||||
|
Purchase of assets under RedWeb asset purchase agreement |
|
|
|
|
— |
|
|
|
|
|
(584,080 |
) |
|
| |
|
Purchase of property plant and equipment |
|
|
|
|
(209,522 |
) |
|
|
|
|
|
(213,494 |
) |
|
|
|
Net cash used in investing activities |
|
|
|
|
(209,522 |
) |
|
|
|
|
|
(797,574 |
) |
|
|
|
Cash flows from financing activities: |
| ||||||||||||||
|
Net proceeds from sale of common stock |
|
|
|
|
2,145,956 |
|
|
|
|
|
2,000,000 |
|
| ||
|
Proceeds from sale of Series A preferred stock |
|
|
|
|
— |
|
|
|
|
|
5,500,000 |
|
| ||
|
Proceeds from exercise of warrants |
|
|
|
|
— |
|
|
|
|
|
150,000 |
|
| ||
|
Proceeds from exercise of options |
|
|
|
|
— |
|
|
|
|
|
1,500 |
|
| ||
|
Purchase and cancelation of previously issued warrants |
|
|
|
|
— |
|
|
|
|
|
(50,000 |
) |
|
| |
|
Net cash provided by financing activities |
|
|
|
|
2,145,956 |
|
|
|
|
|
7,601,500 |
|
| ||
|
Net (decrease)increase in cash and cash equivalents |
|
|
|
|
(4,334,585 |
) |
|
|
|
|
|
1,107,009 |
|
| |
|
Cash and cash equivalents at beginning of period |
|
|
|
|
6,360,301 |
|
|
|
|
|
724,782 |
|
| ||
|
Cash and cash equivalents at end of period |
|
|
|
$ |
2,025,716 |
|
|
|
|
$ |
1,831,791 |
|
| ||
|
Supplemental Disclosures of Cash Flow Information: |
| ||||||||||||||
|
Cash paid during period for interest |
|
|
|
$ |
— |
|
|
|
|
$ |
— |
|
| ||
|
Cash paid during period for taxes |
|
|
|
$ |
— |
|
|
|
|
$ |
— |
|
| ||
|
Non-cash investing and financing activities: |
| ||||||||||||||
|
Common stock issued for cashless exercise of options and warrants |
|
|
|
$ |
19,570 |
|
|
|
|
$ |
— |
|
| ||
|
Reclassification of warrants from liability to equity upon exercise |
|
|
|
$ |
2,455,042 |
|
|
|
|
$ |
7,326,553 |
|
| ||
|
Property, plant and equipment acquired, and included in accounts payable |
|
|
|
$ |
— |
|
|
|
|
$ |
325,402 |
|
| ||
| | | | | | | | |
|
|
|
|
June 30, 2014 |
|
|
September 30, 2013 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
(unaudited) |
|
|
| |||||||||
|
Computer equipment |
|
|
|
$ |
69,182 |
|
|
|
|
$ |
43,555 |
|
| ||
|
Lab equipment |
|
|
|
|
832,036 |
|
|
|
|
|
657,735 |
|
| ||
|
Furniture |
|
|
|
|
164,997 |
|
|
|
|
|
164,997 |
|
| ||
|
Leasehold improvements |
|
|
|
|
248,931 |
|
|
|
|
|
239,337 |
|
| ||
|
Total |
|
|
|
|
1,315,146 |
|
|
|
|
|
1,105,624 |
|
| ||
|
Accumulated depreciation |
|
|
|
|
665,729 |
|
|
|
|
|
409,629 |
|
| ||
|
Property plant and equipment, net |
|
|
|
$ |
649,417 |
|
|
|
|
$ |
695,995 |
|
| ||
| | | | | | | |
|
|
|
|
2014 |
|
|
2013 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Warrants |
|
|
|
|
14,426,354 |
|
|
|
|
|
17,526,354 |
|
| ||
|
Employee options |
|
|
|
|
124,382,605 |
|
|
|
|
|
96,892,325 |
|
| ||
|
|
|
|
|
|
138,808,959 |
|
|
|
|
|
114,418,679 |
|
| ||
| | | | | | | |
|
|
|
|
June 30, 2014 |
|
|
September 30, 2013 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
(unaudited) |
|
|
| |||||||||
|
Accounts payable |
|
|
|
$ |
904,794 |
|
|
|
|
$ |
641,302 |
|
| ||
|
Accrued consulting fees |
|
|
|
|
102,500 |
|
|
|
|
|
102,500 |
|
| ||
|
Accrued salaries payable |
|
|
|
|
175,009 |
|
|
|
|
|
220,175 |
|
| ||
|
Other accrued expenses |
|
|
|
|
77,136 |
|
|
|
|
|
3,000 |
|
| ||
|
Total |
|
|
|
$ |
1,259,439 |
|
|
|
|
$ |
966,977 |
|
| ||
| | | | | | | |
|
|
|
|
Number of Shares |
|
|
Weighted Average Exercise Price Per Share |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Balance at October 1, 2013 |
|
|
|
|
59,033,305 |
|
|
|
|
$ |
0.1907 |
|
| ||
|
Granted |
|
|
|
|
19,520,760 |
|
|
|
|
|
0.1414 |
|
| ||
|
Exercised |
|
|
|
|
(18,695,187 |
) |
|
|
|
|
|
(0.2245 |
) |
|
|
|
Cancelled or expired |
|
|
|
|
(3,300,000 |
) |
|
|
|
|
|
(0.2333 |
) |
|
|
|
Balance, June 30, 2014 |
|
|
|
|
56,558,878 |
|
|
|
|
$ |
0.1600 |
|
| ||
| | | | | | | |
|
|
|
|
Number of Shares |
|
|
Weighted Average Exercise Price Per Share |
|
|
Aggregate Intrinsic Value |
| ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Outstanding at October 1, 2013 |
|
|
|
|
121,454,192 |
|
|
|
|
$ |
0.0630 |
|
|
|
|
|
|
|
| |||
|
Granted |
|
|
|
|
73,280,780 |
|
|
|
|
|
0.1003 |
|
|
|
|
|
|
|
| |||
|
Exercised |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
|
|
| |||
|
Cancelled or expired |
|
|
|
|
(5,000 |
) |
|
|
|
|
|
0.0885 |
|
|
|
|
|
|
|
| ||
|
Outstanding at June 30, 2014 |
|
|
|
|
194,729,972 |
|
|
|
|
$ |
0.0769 |
|
|
|
|
|
|
|
| |||
|
Vested at June 30, 2014 |
|
|
|
|
131,132,972 |
|
|
|
|
$ |
0.0670 |
|
|
|
|
$ |
0.0620 |
|
| |||
|
Non-vested at June 30, 2014 |
|
|
|
|
63,597,000 |
|
|
|
|
|
|
|
|
|
|
$ |
0.0300 |
|
| |||
| | | | | | | | | | |
|
|
|
|
Three Months Ended June 30, 2014 |
|
|
Nine Months Ended June 30, 2014 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Stock price |
|
|
|
$ |
0.1245 |
|
|
|
|
$ |
0.1011 |
|
| ||
|
Exercise price |
|
|
|
$ |
0.0969 |
|
|
|
|
$ |
0.1215 |
|
| ||
|
Dividend yield |
|
|
|
|
0.00 |
% |
|
|
|
|
|
0.00 |
% |
|
|
|
Volatility |
|
|
|
|
110.46 |
% |
|
|
|
|
|
112.19 |
% |
|
|
|
Risk free rate |
|
|
|
|
1.19 |
% |
|
|
|
|
|
0.95 |
% |
|
|
| | | | | | | |
|
|
|
|
Nine Month Periods Ended June 30, |
| |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
2014 |
|
|
2013 |
| ||||||||
|
Balance at October 1, 2013 and 2012 |
|
|
|
$ |
2,643,449 |
|
|
|
|
$ |
— |
|
| ||
|
Issuance of Series A and B Warrants |
|
|
|
|
— |
|
|
|
|
|
1,181,324 |
|
| ||
|
Adjustment resulting from change in fair value(a) |
|
|
|
|
1,663,316 |
|
|
|
|
|
6,145,229 |
|
| ||
|
Reclassification to equity upon exercise |
|
|
|
|
(2,455,042 |
) |
|
|
|
|
|
(7,326,553 |
) |
|
|
|
Balance at June 30, |
|
|
|
$ |
1,851,723 |
|
|
|
|
$ |
— |
|
| ||
| | | | | | | |
|
|
|
|
2013 |
|
|
2012 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
ASSETS |
| | | | | | | | | | | | | | |
|
Current assets: |
| | | | | | | | | | | | | | |
|
Cash and cash equivalents |
|
|
|
$ |
6,360,301 |
|
|
|
|
$ |
724,782 |
|
| ||
|
Accounts receivable, net of allowance of $62,415 and $0 at September 30, 2013 and 2012, respectively |
|
|
|
|
672,638 |
|
|
|
|
|
296,994 |
|
| ||
|
Prepaid expenses |
|
|
|
|
174,096 |
|
|
|
|
|
80,037 |
|
| ||
|
Total current assets |
|
|
|
|
7,207,035 |
|
|
|
|
|
1,101,813 |
|
| ||
|
Property, plant and equipment – net of accumulated depreciation of $409,629 and $251,958, respectively |
|
|
|
|
695,995 |
|
|
|
|
|
210,845 |
|
| ||
|
Other assets: |
| | | | | | | | | | | | | | |
|
Deposits |
|
|
|
|
51,260 |
|
|
|
|
|
36,276 |
|
| ||
|
Intangible assets: |
| | | | | | | | | | | | | | |
|
Intellectual property, net of accumulated amortization and impairment of $163,403 and $0, respectively |
|
|
|
|
420,676 |
|
|
|
|
|
— |
|
| ||
|
Total Assets |
|
|
|
$ |
8,374,966 |
|
|
|
|
$ |
1,348,934 |
|
| ||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
| | | | | | | | | | | | | | |
|
Current liabilities: |
| | | | | | | | | | | | | | |
|
Accounts payable and accrued liabilities |
|
|
|
$ |
966,977 |
|
|
|
|
$ |
592,009 |
|
| ||
|
Deferred revenue |
|
|
|
|
148,503 |
|
|
|
|
|
— |
|
| ||
|
Total current liabilities |
|
|
|
|
1,115,480 |
|
|
|
|
|
592,009 |
|
| ||
|
Warrant liability |
|
|
|
|
2,643,449 |
|
|
|
|
|
— |
|
| ||
|
Total liabilities |
|
|
|
|
3,758,929 |
|
|
|
|
|
592,009 |
|
| ||
|
Commitments and contingencies |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
Stockholders’ Equity |
| | | | | | | | | | | | | | |
|
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of September 30, 2013 and 2012 |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
Series A Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of September 30, 2013 and 2012 |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
Series B Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of September 30, 2013 and 2012 |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
Common stock, par value $0.001 per share; 1,350,000,000 shares authorized; 786,526,955 and 646,182,550 shares issued and outstanding as of September 30, 2013 and 2012, respectively |
|
|
|
|
786,527 |
|
|
|
|
|
646,183 |
|
| ||
|
Additional paid in capital |
|
|
|
|
190,523,121 |
|
|
|
|
|
169,117,881 |
|
| ||
|
Accumulated deficit |
|
|
|
|
(186,693,611 |
) |
|
|
|
|
|
(169,007,139 |
) |
|
|
|
Total stockholders’ equity |
|
|
|
|
4,616,037 |
|
|
|
|
|
756,925 |
|
| ||
|
Total Liabilities and Stockholders’ Equity |
|
|
|
$ |
8,374,966 |
|
|
|
|
$ |
1,348,934 |
|
| ||
| | | | | | | | |
|
|
|
|
2013 |
|
|
2012 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Revenues |
|
|
|
$ |
2,036,222 |
|
|
|
|
$ |
1,854,694 |
|
| ||
|
Operating expenses: |
| | | | | | | | | | | | | | |
|
Selling, general and administrative |
|
|
|
|
11,198,505 |
|
|
|
|
|
7,615,734 |
|
| ||
|
Research and development |
|
|
|
|
692,480 |
|
|
|
|
|
432,669 |
|
| ||
|
Depreciation and amortization |
|
|
|
|
321,074 |
|
|
|
|
|
313,940 |
|
| ||
|
Total operating expenses |
|
|
|
|
12,212,059 |
|
|
|
|
|
8,362,343 |
|
| ||
|
LOSS FROM OPERATIONS |
|
|
|
|
(10,175,837 |
) |
|
|
|
|
|
(6,507,649 |
) |
|
|
|
Other income (expense): |
| | | | | | | | | | | | | | |
|
Interest income (expense), net |
|
|
|
|
1,272 |
|
|
|
|
|
(643,063 |
) |
|
| |
|
Other (expense) income, net |
|
|
|
|
(3,761 |
) |
|
|
|
|
|
— |
|
| |
|
Loss on change in fair value of warrant liability |
|
|
|
|
(7,508,146 |
) |
|
|
|
|
|
— |
|
| |
|
Loss before provision for income taxes |
|
|
|
|
(17,686,472 |
) |
|
|
|
|
|
(7,150,712 |
) |
|
|
|
Income taxes (benefit) |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
NET LOSS |
|
|
|
$ |
(17,686,472 |
) |
|
|
|
|
$ |
(7,150,712 |
) |
|
|
|
Net loss per share – basic and diluted |
|
|
|
$ |
(0.03 |
) |
|
|
|
|
$ |
(0.01 |
) |
|
|
|
Weighted average shares outstanding – basic and diluted |
|
|
|
|
703,852,716 |
|
|
|
|
|
576,091,498 |
|
| ||
| | | | | | | | |
|
|
|
|
Preferred Shares |
|
|
Preferred Stock Amount |
|
|
Common Shares |
|
|
Common Stock Amount |
|
|
Additional Paid in Capital |
|
|
Accumulated Deficit |
|
|
Total |
| ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Balance, October 1, 2011 |
|
|
|
|
— |
|
|
|
|
$ |
— |
|
|
|
|
|
473,325,859 |
|
|
|
|
$ |
473,326 |
|
|
|
|
$ |
160,387,716 |
|
|
|
|
$ |
(161,856,427 |
) |
|
|
|
|
$ |
(995,385 |
) |
|
| |||||
|
Common stock issued in settlement of convertible debentures and interest |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
122,531,901 |
|
|
|
|
|
122,532 |
|
|
|
|
|
4,667,408 |
|
|
|
|
|
— |
|
|
|
|
|
4,789,940 |
|
| |||||||
|
Sale of common stock |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
44,963,516 |
|
|
|
|
|
44,964 |
|
|
|
|
|
2,056,036 |
|
|
|
|
|
— |
|
|
|
|
|
2,101,000 |
|
| |||||||
|
Exercise of warrants and options cashlessly |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,361,274 |
|
|
|
|
|
5,361 |
|
|
|
|
|
(5,361 |
) |
|
|
|
|
|
|
|
|
|
|
|
— |
|
| ||||||
|
Fair value of warrants issued for services |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
58,238 |
|
|
|
|
|
— |
|
|
|
|
|
58,238 |
|
| |||||||
|
Equity based compensation |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
1,953,844 |
|
|
|
|
|
— |
|
|
|
|
|
1,953,844 |
|
| |||||||
|
Net loss |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(7,150,712 |
) |
|
|
|
|
|
(7,150,712 |
) |
|
| |||||
|
Balance, September 30, 2012 |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
646,182,550 |
|
|
|
|
|
646,183 |
|
|
|
|
|
169,117,881 |
|
|
|
|
|
(169,007,139 |
) |
|
|
|
|
|
756,925 |
|
| ||||||
|
Sale of Series A preferred stock |
|
|
|
|
5,500 |
|
|
|
|
|
6 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
5,499,994 |
|
|
|
|
|
— |
|
|
|
|
|
5,500,000 |
|
| |||||||
|
Sale of Series B preferred stock |
|
|
|
|
5,500 |
|
|
|
|
|
6 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
5,234,994 |
|
|
|
|
|
— |
|
|
|
|
|
5,235,000 |
|
| |||||||
|
Sale of common stock |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
21,447,875 |
|
|
|
|
|
21,448 |
|
|
|
|
|
1,416,698 |
|
|
|
|
|
— |
|
|
|
|
|
1,438,146 |
|
| |||||||
|
Common stock issued in conversion of Series A preferred stock |
|
|
|
|
(5,500 |
) |
|
|
|
|
|
(6 |
) |
|
|
|
|
|
25,462,963 |
|
|
|
|
|
25,463 |
|
|
|
|
|
(25,457 |
) |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||||
|
Common stock issued in conversion of Series B preferred stock |
|
|
|
|
(5,500 |
) |
|
|
|
|
|
(6 |
) |
|
|
|
|
|
42,307,692 |
|
|
|
|
|
42,308 |
|
|
|
|
|
(42,302 |
) |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||||
|
Exercise of warrants and options |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
1,525,000 |
|
|
|
|
|
1,525 |
|
|
|
|
|
149,975 |
|
|
|
|
|
— |
|
|
|
|
|
151,500 |
|
| |||||||
|
Purchase and cancellation of issued warrants |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(60,000 |
) |
|
|
|
|
|
— |
|
|
|
|
|
(60,000 |
) |
|
| |||||
|
Fair value of warrants issued for services |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
28,256 |
|
|
|
|
|
— |
|
|
|
|
|
28,256 |
|
| |||||||
|
Reclassification of warrants upon exercise |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
7,326,553 |
|
|
|
|
|
— |
|
|
|
|
|
7,326,553 |
|
| |||||||
|
Exercise of warrants cashlessly |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
44,961,392 |
|
|
|
|
|
44,961 |
|
|
|
|
|
(44,961 |
) |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||||||
|
Equity based compensation |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
1,926,129 |
|
|
|
|
|
— |
|
|
|
|
|
1,926,129 |
|
| |||||||
|
Exercise of options cashlessly |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
4,639,483 |
|
|
|
|
|
4,639 |
|
|
|
|
|
(4,639 |
) |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||||||
|
Net loss |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(17,686,472 |
) |
|
|
|
|
|
(17,686,472 |
) |
|
| |||||
|
Balance, September 30, 2013 |
|
|
|
|
— |
|
|
|
|
$ |
— |
|
|
|
|
|
786,526,955 |
|
|
|
|
$ |
786,527 |
|
|
|
|
$ |
190,523,121 |
|
|
|
|
$ |
(186,693,611 |
) |
|
|
|
|
$ |
4,616,037 |
|
| ||||||
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
2013 |
|
|
2012 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Cash flows from operating activities: |
| | | | | | | | | | | | | | |
|
Net loss |
|
|
|
$ |
(17,686,472 |
) |
|
|
|
|
$ |
(7,150,712 |
) |
|
|
|
Adjustments to reconcile net loss to net cash used in operating activities: |
| | | | | | | | | | | | | | |
|
Depreciation and amortization |
|
|
|
|
206,344 |
|
|
|
|
|
313,940 |
|
| ||
|
Impairment of intellectual property |
|
|
|
|
114,730 |
|
|
|
|
|
— |
|
| ||
|
Fair value of vested options issued to officers, directors and employees |
|
|
|
|
1,517,524 |
|
|
|
|
|
1,953,844 |
|
| ||
|
Change in fair value of warrant liability |
|
|
|
|
7,508,146 |
|
|
|
|
|
— |
|
| ||
|
Amortization of capitalized financing costs |
|
|
|
|
— |
|
|
|
|
|
85,975 |
|
| ||
|
Amortization of debt discount attributable to convertible debentures |
|
|
|
|
— |
|
|
|
|
|
541,120 |
|
| ||
|
Fair value of vested warrants issued for service |
|
|
|
|
28,256 |
|
|
|
|
|
58,238 |
|
| ||
|
Common stock issued in settlement of interest |
|
|
|
|
— |
|
|
|
|
|
102,844 |
|
| ||
|
Fair value change from employee option modifications |
|
|
|
|
408,605 |
|
|
|
|
|
— |
|
| ||
|
Bad debt expense |
|
|
|
|
77,415 |
|
|
|
|
|
— |
|
| ||
|
Change in operating assets and liabilities: |
| | | | | | | | | | | | | | |
|
Accounts receivable |
|
|
|
|
(453,059 |
) |
|
|
|
|
|
(88,407 |
) |
|
|
|
Prepaid expenses and deposits |
|
|
|
|
(109,042 |
) |
|
|
|
|
|
(16,565 |
) |
|
|
|
Accounts payable and accrued liabilities |
|
|
|
|
517,200 |
|
|
|
|
|
239,044 |
|
| ||
|
Net cash used in operating activities |
|
|
|
|
(7,870,353 |
) |
|
|
|
|
|
(3,960,679 |
) |
|
|
|
Cash flows used in investing activities: |
| | | | | | | | | | | | | | |
|
Purchase of assets under RedWeb asset purchase agreement |
|
|
|
|
(584,080 |
) |
|
|
|
|
|
— |
|
| |
|
Purchase of property and equipment |
|
|
|
|
(636,548 |
) |
|
|
|
|
|
(162,833 |
) |
|
|
|
Net cash used in investing activities |
|
|
|
|
(1,220,628 |
) |
|
|
|
|
|
(162,833 |
) |
|
|
|
Cash flows from financing activities: |
| | | | | | | | | | | | | | |
|
Net proceeds from sale of Series A and Series B Preferred Stock |
|
|
|
|
10,735,000 |
|
|
|
|
|
— |
|
| ||
|
Net proceeds from sale of common stock and warrants |
|
|
|
|
3,900,000 |
|
|
|
|
|
2,101,000 |
|
| ||
|
Purchase and cancellation of previously issued warrants |
|
|
|
|
(60,000 |
) |
|
|
|
|
|
— |
|
| |
|
Proceeds from exercise of options and warrants |
|
|
|
|
151,500 |
|
|
|
|
|
— |
|
| ||
|
Net cash provided by financing activities |
|
|
|
|
14,726,500 |
|
|
|
|
|
2,101,000 |
|
| ||
|
Net increase (decrease) in cash and cash equivalents |
|
|
|
|
5,635,519 |
|
|
|
|
|
(2,022,512 |
) |
|
| |
|
Cash and cash equivalents at beginning of year |
|
|
|
|
724,782 |
|
|
|
|
|
2,747,294 |
|
| ||
|
Cash and cash equivalents at end of year |
|
|
|
$ |
6,360,301 |
|
|
|
|
$ |
724,782 |
|
| ||
|
Supplemental Disclosures of Cash Flow Information: |
| | | | | | | | | | | | | | |
|
Cash paid during period for interest |
|
|
|
$ |
— |
|
|
|
|
$ |
— |
|
| ||
|
Cash paid during period for income taxes |
|
|
|
$ |
— |
|
|
|
|
$ |
— |
|
| ||
|
Non-cash investing and financing transactions: |
| | | | | | | | | | | | | | |
|
Fair value of warrants issued for financing costs |
|
|
|
$ |
— |
|
|
|
|
$ |
— |
|
| ||
|
Property, plant and equipment acquired, and included in accounts payable |
|
|
|
|
6,273 |
|
|
|
|
|
|
|
| ||
|
Common stock issued upon conversion of Series A and Series B preferred stock |
|
|
|
|
67,759 |
|
|
|
|
|
|
|
| ||
|
Common stock issued for cashless exercise of options and warrants |
|
|
|
|
49,600 |
|
|
|
|
|
|
|
| ||
|
Common stock issued in exchange for previously incurred debt and related accrued interest |
|
|
|
$ |
— |
|
|
|
|
$ |
4,687,096 |
|
| ||
| | | | | | | | |
|
|
|
|
September 30, |
| |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
2013 |
|
|
2012 |
| ||||||||
|
Computer equipment |
|
|
|
$ |
43,555 |
|
|
|
|
$ |
33,464 |
|
| ||
|
Lab equipment |
|
|
|
|
657,735 |
|
|
|
|
|
296,904 |
|
| ||
|
Furniture |
|
|
|
|
164,997 |
|
|
|
|
|
132,435 |
|
| ||
|
Leasehold improvements |
|
|
|
|
239,337 |
|
|
|
|
|
— |
|
| ||
|
Total |
|
|
|
|
1,105,624 |
|
|
|
|
|
462,803 |
|
| ||
|
Accumulated depreciation |
|
|
|
|
409,629 |
|
|
|
|
|
251,958 |
|
| ||
|
Property and equipment, net |
|
|
|
$ |
695,995 |
|
|
|
|
$ |
210,845 |
|
| ||
| | | | | | | |
|
|
|
|
2013 |
|
|
2012 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Trade secrets and developed technologies (Weighted average life of 7 years) |
|
|
|
$ |
— |
|
|
|
|
$ |
3,775,889 |
|
| ||
|
Patents (Weighted average life of 5 years) |
|
|
|
|
— |
|
|
|
|
|
34,257 |
|
| ||
|
Intellectual property (Weighted average life of 5 years) |
|
|
|
|
584,080 |
|
|
|
|
|
— |
|
| ||
|
Total identifiable intangible assets — Gross carrying value: |
|
|
|
|
584,080 |
|
|
|
|
|
3,810,146 |
|
| ||
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Accumulated amortization |
|
|
|
|
(48,674 |
) |
|
|
|
|
|
(3,810,146 |
) |
|
|
|
Impairment charges |
|
|
|
|
(114,730 |
) |
|
|
|
|
|
— |
|
| |
|
Intangible assets, net |
|
|
|
$ |
420,676 |
|
|
|
|
$ |
— |
|
| ||
| | | | | | | |
|
|
|
|
Amount |
| ||||
---|---|---|---|---|---|---|---|---|---|
|
2014 |
|
|
|
$ |
90,145 |
|
| |
|
2015 |
|
|
|
|
90,145 |
|
| |
|
2016 |
|
|
|
|
90,145 |
|
| |
|
2017 |
|
|
|
|
90,145 |
|
| |
|
2018 |
|
|
|
|
60,096 |
|
| |
|
Total |
|
|
|
$ |
420,676 |
|
| |
| | | | |
|
|
|
|
2013 |
|
|
2012 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Accounts payable |
|
|
|
$ |
641,302 |
|
|
|
|
$ |
473,060 |
|
| ||
|
Accrued consulting fees |
|
|
|
|
102,500 |
|
|
|
|
|
102,500 |
|
| ||
|
Accrued salaries payable |
|
|
|
|
220,175 |
|
|
|
|
|
16,449 |
|
| ||
|
Other accrued expenses |
|
|
|
|
3,000 |
|
|
|
|
|
— |
|
| ||
|
Total |
|
|
|
$ |
966,977 |
|
|
|
|
$ |
592,009 |
|
| ||
| | | | | | | |
|
Securities Issued |
|
|
Initial Purchase Agreement |
|
|
Second Purchase Agreement |
| ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
Shares issued |
|
|
Price per share |
|
|
Shares issued |
|
|
Price per share |
| ||||||||||||||||
|
Series A Warrants |
|
|
|
|
10,752,688 |
|
|
|
|
$ |
0.2232 |
|
|
|
|
|
10,695,187 |
|
|
|
|
$ |
0.2431 |
|
| ||||
|
Series B Warrants |
|
|
|
|
29,569,862 |
|
|
|
|
$ |
0.2232 |
|
|
|
|
|
29,411,764 |
|
|
|
|
$ |
0.2431 |
|
| ||||
|
Series C Warrants |
|
|
|
|
26,881,720 |
|
|
|
|
$ |
0.2232 |
|
|
|
|
|
26,737,967 |
|
|
|
|
$ |
0.2431 |
|
| ||||
| | | | | | | | | | | | | |
|
Securities Issued |
|
|
Initial Purchase Agreement |
|
|
Second Purchase Agreement |
| ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
Shares issued |
|
|
Price per share |
|
|
Shares issued |
|
|
Price per share |
| ||||||||||||||||
|
Common Stock |
|
|
|
|
10,752,688 |
|
|
|
|
$ |
0.1860 |
|
|
|
|
|
10,695,187 |
|
|
|
|
$ |
0.1870 |
|
| ||||
|
Series A Warrants |
|
|
|
|
10,752,688 |
|
|
|
|
$ |
0.2232 |
|
|
|
|
|
10,695,187 |
|
|
|
|
$ |
0.2431 |
|
| ||||
|
Series B Warrants |
|
|
|
|
29,569,862 |
|
|
|
|
$ |
0.2232 |
|
|
|
|
|
29,411,764 |
|
|
|
|
$ |
0.2431 |
|
| ||||
|
Series C Warrants |
|
|
|
|
26,881,720 |
|
|
|
|
$ |
0.2232 |
|
|
|
|
|
26,737,967 |
|
|
|
|
$ |
0.2431 |
|
| ||||
|
Series A Preferred Stock |
|
|
|
|
5,500 |
|
|
|
|
$ |
1,000 |
|
|
|
|
|
— |
|
|
|
|
$ |
— |
|
| ||||
|
Series B Preferred Stock |
|
|
|
|
— |
|
|
|
|
$ |
— |
|
|
|
|
|
5,500 |
|
|
|
|
$ |
1,000 |
|
| ||||
| | | | | | | | | | | | | |
|
Exercise Prices |
|
|
Number Outstanding |
|
|
Warrants Outstanding Remaining Contractual Life (Years) |
|
|
Weighted Average Exercise Price |
|
|
Weighted Average Exercisable |
|
|
Exercisable Weighted Average Exercise Price |
| ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
$0.0400 |
|
|
|
|
|
3,000,000 |
|
|
|
|
|
1.92 |
|
|
|
|
$ |
0.0400 |
|
|
|
|
|
3,000,000 |
|
|
|
|
$ |
0.0400 |
|
| |||||||
|
|
$0.0441 |
|
|
|
|
|
510,784 |
|
|
|
|
|
3.79 |
|
|
|
|
$ |
0.0441 |
|
|
|
|
|
510,784 |
|
|
|
|
$ |
0.0441 |
|
| |||||||
|
|
$0.0475 |
|
|
|
|
|
3,789,489 |
|
|
|
|
|
4.79 |
|
|
|
|
$ |
0.0475 |
|
|
|
|
|
3,789,489 |
|
|
|
|
$ |
0.0475 |
|
| |||||||
|
|
$0.0553 |
|
|
|
|
|
226,081 |
|
|
|
|
|
4.27 |
|
|
|
|
$ |
0.0553 |
|
|
|
|
|
226,081 |
|
|
|
|
$ |
0.0553 |
|
| |||||||
|
|
$0.0600 |
|
|
|
|
|
2,000,000 |
|
|
|
|
|
0.39 |
|
|
|
|
$ |
0.0600 |
|
|
|
|
|
2,000,000 |
|
|
|
|
$ |
0.0600 |
|
| |||||||
|
|
$0.0710 |
|
|
|
|
|
1,000,000 |
|
|
|
|
|
1.32 |
|
|
|
|
$ |
0.0710 |
|
|
|
|
|
1,000,000 |
|
|
|
|
$ |
0.0710 |
|
| |||||||
|
|
$0.0900 |
|
|
|
|
|
6,900,000 |
|
|
|
|
|
2.92 |
|
|
|
|
$ |
0.0900 |
|
|
|
|
|
6,900,000 |
|
|
|
|
$ |
0.0900 |
|
| |||||||
|
|
$0.1790 |
|
|
|
|
|
100,000 |
|
|
|
|
|
2.10 |
|
|
|
|
$ |
0.1790 |
|
|
|
|
|
100,000 |
|
|
|
|
$ |
0.1790 |
|
| |||||||
|
|
$0.2140 |
|
|
|
|
|
100,000 |
|
|
|
|
|
2.60 |
|
|
|
|
$ |
0.2140 |
|
|
|
|
|
— |
|
|
|
|
$ |
— |
|
| |||||||
|
|
$0.2431 |
|
|
|
|
|
40,106,951 |
|
|
|
|
|
4.80 |
|
|
|
|
$ |
0.2431 |
|
|
|
|
|
40,106,951 |
|
|
|
|
$ |
0.2431 |
|
| |||||||
|
|
$0.5000 |
|
|
|
|
|
1,300,000 |
|
|
|
|
|
0.12 |
|
|
|
|
$ |
0.5000 |
|
|
|
|
|
1,300,000 |
|
|
|
|
$ |
0.5000 |
|
| |||||||
|
|
|
|
|
|
|
59,033,305 |
|
|
|
|
|
4.10 |
|
|
|
|
$ |
0.1976 |
|
|
|
|
|
58,933,305 |
|
|
|
|
$ |
0.1963 |
|
| ||||||||
| | | | | | | | | | | | | | | | | |
|
|
|
|
Number of Shares |
|
|
Weighted Average Price Per Share |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Balance, September 30, 2011 |
|
|
|
|
58,205,280 |
|
|
|
|
$ |
0.140 |
|
| ||
|
Granted |
|
|
|
|
1,075,000 |
|
|
|
|
|
0.071 |
|
| ||
|
Exercised |
|
|
|
|
(5,039,633 |
) |
|
|
|
|
|
(0.045 |
|
| |
|
Cancelled or expired |
|
|
|
|
(8,400,000 |
) |
|
|
|
|
|
(0.161 |
) |
|
|
|
Balance at September 30, 2012 |
|
|
|
|
45,840,647 |
|
|
|
|
$ |
0.145 |
|
| ||
|
Granted |
|
|
|
|
134,249,218 |
|
|
|
|
|
0.233 |
|
| ||
|
Exercised |
|
|
|
|
(60,236,873 |
) |
|
|
|
|
|
(0.170 |
) |
|
|
|
Cancelled or expired |
|
|
|
|
(60,819,687 |
) |
|
|
|
|
|
(0.265 |
) |
|
|
|
Balance, September 30, 2013 |
|
|
|
|
59,033,305 |
|
|
|
|
$ |
0.196 |
|
| ||
| | | | | | | |
|
Options Outstanding |
|
|
Options Exercisable |
| ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Exercise Prices |
|
|
Number Outstanding |
|
|
Weighted Average Remaining Contractual Life (Years) |
|
|
Weighted Average Exercise Price |
|
|
Number Exercisable |
|
|
Weighted Average Exercise Price |
| ||||||||||||||||||||||||
|
|
$0.0500 |
|
|
|
|
|
24,000,000 |
|
|
|
|
|
1.65 |
|
|
|
|
$ |
0.0500 |
|
|
|
|
|
24,000,000 |
|
|
|
|
$ |
0.0500 |
|
| |||||||
|
|
$0.0585 |
|
|
|
|
|
50,000,000 |
|
|
|
|
|
4.79 |
|
|
|
|
$ |
0.0585 |
|
|
|
|
|
50,000,000 |
|
|
|
|
$ |
0.0585 |
|
| |||||||
|
|
$0.0600 |
|
|
|
|
|
30,000,000 |
|
|
|
|
|
1.76 |
|
|
|
|
$ |
0.0600 |
|
|
|
|
|
30,000,000 |
|
|
|
|
$ |
0.0600 |
|
| |||||||
|
|
$0.0650 |
|
|
|
|
|
634,825 |
|
|
|
|
|
3.18 |
|
|
|
|
$ |
0.0650 |
|
|
|
|
|
634,825 |
|
|
|
|
$ |
0.0650 |
|
| |||||||
|
|
$0.0680 |
|
|
|
|
|
4,770,000 |
|
|
|
|
|
3.17 |
|
|
|
|
$ |
0.0680 |
|
|
|
|
|
4,770,000 |
|
|
|
|
$ |
0.0680 |
|
| |||||||
|
|
$0.0700 |
|
|
|
|
|
2,850,000 |
|
|
|
|
|
1.67 |
|
|
|
|
$ |
0.0700 |
|
|
|
|
|
1,900,000 |
|
|
|
|
$ |
0.0700 |
|
| |||||||
|
|
$0.0900 |
|
|
|
|
|
1,500,000 |
|
|
|
|
|
2.92 |
|
|
|
|
$ |
0.0900 |
|
|
|
|
|
1,500,000 |
|
|
|
|
$ |
0.0900 |
|
| |||||||
|
|
$0.1100 |
|
|
|
|
|
5,400,000 |
|
|
|
|
|
4.71 |
|
|
|
|
$ |
0.1100 |
|
|
|
|
|
5,400,000 |
|
|
|
|
$ |
0.1100 |
|
| |||||||
|
|
$0.1799 |
|
|
|
|
|
2,099,367 |
|
|
|
|
|
4.17 |
|
|
|
|
$ |
0.1799 |
|
|
|
|
|
— |
|
|
|
|
$ |
— |
|
| |||||||
|
|
$0.1930 |
|
|
|
|
|
100,000 |
|
|
|
|
|
4.75 |
|
|
|
|
$ |
0.1930 |
|
|
|
|
|
— |
|
|
|
|
$ |
— |
|
| |||||||
|
|
$0.2000 |
|
|
|
|
|
100,000 |
|
|
|
|
|
4.63 |
|
|
|
|
$ |
0.2000 |
|
|
|
|
|
— |
|
|
|
|
$ |
— |
|
| |||||||
|
|
|
|
|
|
|
121,454,192 |
|
|
|
|
|
3.23 |
|
|
|
|
$ |
0.063 |
|
|
|
|
|
118,204,825 |
|
|
|
|
$ |
0.0605 |
|
| ||||||||
| | | | | | | | | | | | | | | | | |
|
|
|
|
Number of Shares |
|
|
Weighted Average Exercise Price Per Share |
|
|
Aggregate Intrinsic Value |
| ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Outstanding at October 1, 2011 |
|
|
|
|
120,650,000 |
|
|
|
|
$ |
0.060 |
|
|
|
|
|
|
|
| |||
|
Granted |
|
|
|
|
6,558,825 |
|
|
|
|
|
0.067 |
|
|
|
|
|
|
|
| |||
|
Exercised |
|
|
|
|
(500,000 |
) |
|
|
|
|
|
(0.08 |
) |
|
|
|
|
|
|
|
| |
|
Cancelled or expired |
|
|
|
|
(1,500,000 |
) |
|
|
|
|
|
(0.08 |
) |
|
|
|
|
|
|
|
| |
|
Outstanding at September 30, 2012 |
|
|
|
|
125,208,825 |
|
|
|
|
$ |
0.060 |
|
|
|
|
|
|
|
| |||
|
Granted |
|
|
|
|
2,299,367 |
|
|
|
|
|
0.181 |
|
|
|
|
|
|
|
| |||
|
Exercised |
|
|
|
|
(5,979,000 |
) |
|
|
|
|
|
(0.042 |
) |
|
|
|
|
|
|
|
| |
|
Cancelled or expired |
|
|
|
|
(75,000 |
) |
|
|
|
|
|
(0.060 |
) |
|
|
|
|
|
|
|
| |
|
Outstanding at September 30, 2013 |
|
|
|
|
121,454,192 |
|
|
|
|
$ |
0.063 |
|
|
|
|
|
|
|
| |||
|
Vested at September 30, 2013 |
|
|
|
|
118,204,825 |
|
|
|
|
|
|
|
|
|
|
$ |
0.136 |
|
| |||
|
Non-vested at September 30, 2013 |
|
|
|
|
3,429,367 |
|
|
|
|
|
|
|
|
|
|
$ |
0.055 |
|
| |||
| | | | | | | | | | |
|
|
|
|
2013 |
|
|
2012 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Federal: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Current |
|
|
|
$ |
— |
|
|
|
|
$ |
— |
|
| ||
|
Deferred |
|
|
|
|
2,955,000 |
|
|
|
|
|
1,422,000 |
|
| ||
|
|
|
|
|
|
2,955,000 |
|
|
|
|
|
1,422,000 |
|
| ||
|
State and local: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Current |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
Deferred |
|
|
|
|
407,000 |
|
|
|
|
|
196,000 |
|
| ||
|
|
|
|
|
|
407,000 |
|
|
|
|
|
196,000 |
|
| ||
|
Change in valuation allowance |
|
|
|
|
(3,362,000 |
) |
|
|
|
|
|
(1,618,000 |
) |
|
|
|
Income tax provision (benefit) |
|
|
|
$ |
— |
|
|
|
|
$ |
— |
|
| ||
| | | | | | | |
|
|
|
|
September 30, |
| |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
2013 |
|
|
2012 |
| ||||||||
|
Statutory federal income tax rate |
|
|
|
|
(34.00 |
%) |
|
|
|
|
|
(34.00 |
%) |
|
|
|
Statutory state and local income tax rate (7.1%), net of federal benefit |
|
|
|
|
(4.69 |
%) |
|
|
|
|
|
(4.69 |
%) |
|
|
|
Stock based compensation |
|
|
|
|
3.27 |
% |
|
|
|
|
|
10.74 |
% |
|
|
|
Depreciation and amortization |
|
|
|
|
(0.12 |
%) |
|
|
|
|
|
(0.28 |
%) |
|
|
|
Amortization of debt discount |
|
|
|
|
0.00 |
% |
|
|
|
|
|
2.92 |
% |
|
|
|
Change in valuation allowance |
|
|
|
|
35.54 |
% |
|
|
|
|
|
25.31 |
% |
|
|
|
Effective tax rate |
|
|
|
|
0.00 |
% |
|
|
|
|
|
0.00 |
% |
|
|
| | | | | | | |
|
|
|
|
September 30, |
| |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
2013 |
|
|
2012 |
| ||||||||
|
Deferred tax assets (liabilities): |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Stock based compensation |
|
|
|
$ |
578,000 |
|
|
|
|
$ |
768,000 |
|
| ||
|
Depreciation and amortization |
|
|
|
|
(21,000 |
) |
|
|
|
|
|
(20,000 |
) |
|
|
|
Amortization of debt discount |
|
|
|
|
— |
|
|
|
|
|
209,000 |
|
| ||
|
Net operating loss carry forward |
|
|
|
|
17,913,000 |
|
|
|
|
|
14,551,000 |
|
| ||
|
Less: valuation allowance |
|
|
|
|
(18,470,000 |
) |
|
|
|
|
|
(15,508,000 |
) |
|
|
|
Net deferred tax asset |
|
|
|
$ |
— |
|
|
|
|
$ |
— |
|
| ||
| | | | | | | |
|
2014 |
|
|
|
$ |
450,617 |
|
| |
|
2015 |
|
|
|
|
449,142 |
|
| |
|
2016 |
|
|
|
|
299,428 |
|
| |
|
Total |
|
|
|
$ |
1,199,187 |
|
| |
| | | | |
|
Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3) |
| ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
Year Ended September 30, |
| |||||||||||
|
|
|
|
2013 |
|
|
2012 |
| ||||||||
|
Balance at October 1, |
|
|
|
$ |
— |
|
|
|
|
$ |
— |
|
| ||
|
Issuance of Series A and B Warrants |
|
|
|
|
2,461,856 |
|
|
|
|
|
— |
|
| ||
|
Adjustment resulting from change in value recognized in earnings(a) |
|
|
|
|
7,508,146 |
|
|
|
|
|
— |
|
| ||
|
Reclassification to equity upon exercise |
|
|
|
|
(7,326,553 |
) |
|
|
|
|
|
— |
|
| |
|
Balance at September 30, |
|
|
|
$ |
2,643,449 |
|
|
|
|
$ |
— |
|
| ||
| | | | | | | |
|
|
|
|
2012 |
|
|
2011 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Cash and cash equivalents |
|
|
|
$ |
724,782 |
|
|
|
|
$ |
2,747,294 |
|
| ||
|
Accounts receivable |
|
|
|
|
296,994 |
|
|
|
|
|
208,587 |
|
| ||
|
Prepaid expenses |
|
|
|
|
80,037 |
|
|
|
|
|
76,290 |
|
| ||
|
Total current assets |
|
|
|
|
1,101,813 |
|
|
|
|
|
3,032,171 |
|
| ||
|
Property, plant and equipment – net of accumulated depreciation of $251,958 and $210,862, respectively |
|
|
|
|
210,845 |
|
|
|
|
|
89,108 |
|
| ||
|
Other assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Deposits |
|
|
|
|
36,276 |
|
|
|
|
|
23,458 |
|
| ||
|
Capitalized finance costs – net of accumulated amortization of $1,892,236 and $1,806,261, respectively |
|
|
|
|
— |
|
|
|
|
|
85,975 |
|
| ||
|
Intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Patents, net of accumulated amortization of $34,257 (Note B) |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
Intellectual property, net of accumulated amortization and write off of $9,430,900 and $9,158,056, respectively (Note B) |
|
|
|
|
— |
|
|
|
|
|
272,844 |
|
| ||
|
Total Assets |
|
|
|
$ |
1,348,934 |
|
|
|
|
$ |
3,503,556 |
|
| ||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Accounts payable and accrued liabilities |
|
|
|
$ |
592,009 |
|
|
|
|
$ |
768,061 |
|
| ||
|
Convertible notes payable, net of unamortized discount of $541,120 (Note D) |
|
|
|
|
— |
|
|
|
|
|
3,730,880 |
|
| ||
|
Total current liabilities |
|
|
|
|
592,009 |
|
|
|
|
|
4,498,941 |
|
| ||
|
Commitments and contingencies (Note J) |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
Stockholders’ Equity (Deficit) – (Note F) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of September 30, 2012 and 2011 |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
Common stock, par value $0.001 per share; 1,350,000,000 and 800,000,000 shares authorized as of September 30, 2012 and 2011, respectively; 646,182,550 and 473,325,859 shares issued and outstanding as of September 30, 2012 and 2011, respectively |
|
|
|
|
646,183 |
|
|
|
|
|
473,326 |
|
| ||
|
Additional paid in capital |
|
|
|
|
169,117,881 |
|
|
|
|
|
160,387,716 |
|
| ||
|
Accumulated deficit |
|
|
|
|
(169,007,139 |
) |
|
|
|
|
|
(161,856,427 |
) |
|
|
|
Total stockholders’ equity (deficit) |
|
|
|
|
756,925 |
|
|
|
|
|
(995,385 |
) |
|
| |
|
Total Liabilities and Stockholders’ Equity (Deficit) |
|
|
|
$ |
1,348,934 |
|
|
|
|
$ |
3,503,556 |
|
| ||
| | | | | | | | |
|
|
|
|
2012 |
|
|
2011 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Revenues |
|
|
|
$ |
1,854,694 |
|
|
|
|
$ |
968,848 |
|
| ||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Selling, general and administrative |
|
|
|
|
7,615,734 |
|
|
|
|
|
8,388,873 |
|
| ||
|
Research and development |
|
|
|
|
432,669 |
|
|
|
|
|
268,876 |
|
| ||
|
Depreciation and amortization |
|
|
|
|
313,940 |
|
|
|
|
|
367,556 |
|
| ||
|
Total operating expenses |
|
|
|
|
8,362,343 |
|
|
|
|
|
9,025,305 |
|
| ||
|
LOSS FROM OPERATIONS |
|
|
|
|
(6,507,649 |
) |
|
|
|
|
|
(8,056,457 |
) |
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Interest expense, net |
|
|
|
|
(643,063 |
) |
|
|
|
|
|
(2,458,667 |
) |
|
|
|
Loss before provision for income taxes |
|
|
|
|
(7,150,712 |
) |
|
|
|
|
|
(10,515,124 |
) |
|
|
|
Income taxes (benefit) |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
NET LOSS |
|
|
|
$ |
(7,150,712 |
) |
|
|
|
|
$ |
(10,515,124 |
) |
|
|
|
Net loss per share – basic and diluted |
|
|
|
$ |
(0.01 |
) |
|
|
|
|
$ |
(0.03 |
) |
|
|
|
Weighted average shares outstanding – basic and diluted |
|
|
|
|
576,091,498 |
|
|
|
|
|
376,833,809 |
|
| ||
| | | | | | | | |
|
|
|
|
Preferred Shares |
|
|
Preferred Stock Amount |
|
|
Common Shares |
|
|
Common Stock Amount |
|
|
Additional Paid in Capital |
|
|
Accumulated Deficit |
|
|
Total |
| ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Balance, September 30, 2010 |
|
|
|
|
— |
|
|
|
|
$ |
— |
|
|
|
|
|
346,366,244 |
|
|
|
|
$ |
346,366 |
|
|
|
|
$ |
149,396,907 |
|
|
|
|
$ |
(151,341,303 |
) |
|
|
|
|
$ |
(1,598,030 |
) |
|
| |||||
|
Equity based compensation |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
502,082 |
|
|
|
|
|
— |
|
|
|
|
|
502,082 |
|
| |||||||
|
Fair value of vested options issued to directors, officers and employees |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
1,485,068 |
|
|
|
|
|
— |
|
|
|
|
|
1,485,068 |
|
| |||||||
|
Fair value of vested warrants issued for service |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
217,971 |
|
|
|
|
|
— |
|
|
|
|
|
217,971 |
|
| |||||||
|
Common stock issued in settlement of convertible debentures and interest |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
5,807,643 |
|
|
|
|
|
5,808 |
|
|
|
|
|
404,189 |
|
|
|
|
|
— |
|
|
|
|
|
409,997 |
|
| |||||||
|
Common stock issued in exchange for consulting services |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
888,813 |
|
|
|
|
|
889 |
|
|
|
|
|
64,111 |
|
|
|
|
|
— |
|
|
|
|
|
65,000 |
|
| |||||||
|
Sale of common stock |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
105,263,159 |
|
|
|
|
|
105,263 |
|
|
|
|
|
4,629,737 |
|
|
|
|
|
— |
|
|
|
|
|
4,735,000 |
|
| |||||||
|
Common stock issued as officer compensation |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
15,000,000 |
|
|
|
|
|
15,000 |
|
|
|
|
|
862,500 |
|
|
|
|
|
— |
|
|
|
|
|
877,500 |
|
| |||||||
|
Change in fair value of extended vested options |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
738,810 |
|
|
|
|
|
— |
|
|
|
|
|
738,810 |
|
| |||||||
|
Beneficial conversion feature relating to convertible debentures |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
2,086,341 |
|
|
|
|
|
— |
|
|
|
|
|
2,086,341 |
|
| |||||||
|
Net loss |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(10,515,124 |
) |
|
|
|
|
|
(10,515,124 |
) |
|
| |||||
|
Balance, September 30, 2011 |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
473,325,859 |
|
|
|
|
|
473,326 |
|
|
|
|
|
160,387,716 |
|
|
|
|
|
(161,856,427 |
) |
|
|
|
|
|
(995,385 |
) |
|
| |||||
|
Common stock issued in settlement of convertible debentures and interest |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
122,531,901 |
|
|
|
|
|
122,532 |
|
|
|
|
|
4,667,408 |
|
|
|
|
|
— |
|
|
|
|
|
4,789,940 |
|
| |||||||
|
Sale of common stock |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
44,963,516 |
|
|
|
|
|
44,964 |
|
|
|
|
|
2,056,036 |
|
|
|
|
|
— |
|
|
|
|
|
2,101,000 |
|
| |||||||
|
Exercise of warrants and options cashlessly |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,361,274 |
|
|
|
|
|
5,361 |
|
|
|
|
|
(5,361 |
) |
|
|
|
|
|
|
|
|
|
|
|
— |
|
| ||||||
|
Fair value of warrants issued for services |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
58,238 |
|
|
|
|
|
— |
|
|
|
|
|
58,238 |
|
| |||||||
|
Equity based compensation |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
1,953,844 |
|
|
|
|
|
— |
|
|
|
|
|
1,953,844 |
|
| |||||||
|
Net loss |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(7,150,712 |
) |
|
|
|
|
|
(7,150,712 |
) |
|
| |||||
|
Balance, September 30, 2012 |
|
|
|
|
— |
|
|
|
|
$ |
— |
|
|
|
|
|
646,182,550 |
|
|
|
|
$ |
646,183 |
|
|
|
|
$ |
169,117,881 |
|
|
|
|
$ |
(169,007,139 |
) |
|
|
|
|
$ |
756,925 |
|
| ||||||
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
2012 |
|
|
2011 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Net loss |
|
|
|
$ |
(7,150,712 |
) |
|
|
|
|
$ |
(10,515,124 |
) |
|
|
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Depreciation and amortization |
|
|
|
|
313,940 |
|
|
|
|
|
367,556 |
|
| ||
|
Fair value of vested options issued to officers, directors and employees |
|
|
|
|
1,953,844 |
|
|
|
|
|
1,485,068 |
|
| ||
|
Amortization of capitalized financing costs |
|
|
|
|
85,975 |
|
|
|
|
|
858,985 |
|
| ||
|
Amortization of debt discount attributable to convertible debentures |
|
|
|
|
541,120 |
|
|
|
|
|
2,096,427 |
|
| ||
|
Equity based compensation |
|
|
|
|
58,238 |
|
|
|
|
|
1,444,583 |
|
| ||
|
Common stock issued in settlement of interest |
|
|
|
|
102,844 |
|
|
|
|
|
36,997 |
|
| ||
|
Fair value change from employee option modifications |
|
|
|
|
— |
|
|
|
|
|
738,810 |
|
| ||
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Increase in accounts receivable |
|
|
|
|
(88,407 |
) |
|
|
|
|
|
(145,558 |
) |
|
|
|
(Increase) decrease in prepaid expenses and deposits |
|
|
|
|
(16,565 |
) |
|
|
|
|
|
70,030 |
|
| |
|
Increase (decrease) in accounts payable and accrued liabilities |
|
|
|
|
239,044 |
|
|
|
|
|
(199,490 |
) |
|
| |
|
Net cash used in operating activities |
|
|
|
|
(3,960,679 |
) |
|
|
|
|
|
(3,761,716 |
) |
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Purchase of property and equipment |
|
|
|
|
(162,833 |
) |
|
|
|
|
|
(89,108 |
) |
|
|
|
Net cash used in investing activities |
|
|
|
|
(162,833 |
) |
|
|
|
|
|
(89,108 |
) |
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Net proceeds from (payments of) related party advances |
|
|
|
|
— |
|
|
|
|
|
(50,000 |
) |
|
| |
|
Net proceeds from sale of common stock |
|
|
|
|
2,101,000 |
|
|
|
|
|
4,735,000 |
|
| ||
|
Net proceeds from issuance of convertible notes |
|
|
|
|
— |
|
|
|
|
|
1,895,500 |
|
| ||
|
Net cash provided by financing activities |
|
|
|
|
2,101,000 |
|
|
|
|
|
6,580,500 |
|
| ||
|
Net (decrease) increase in cash and cash equivalents |
|
|
|
|
(2,022,512 |
) |
|
|
|
|
|
2,729,676 |
|
| |
|
Cash and cash equivalents at beginning of year |
|
|
|
|
2,747,294 |
|
|
|
|
|
17,618 |
|
| ||
|
Cash and cash equivalents at end of year |
|
|
|
$ |
724,782 |
|
|
|
|
$ |
2,747,294 |
|
| ||
|
Supplemental Disclosures of Cash Flow Information: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Cash paid during period for interest |
|
|
|
$ |
— |
|
|
|
|
$ |
— |
|
| ||
|
Cash paid during period for income taxes |
|
|
|
$ |
— |
|
|
|
|
$ |
— |
|
| ||
|
Non-cash investing and financing transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Fair value of warrants issued for financing costs |
|
|
|
$ |
— |
|
|
|
|
$ |
217,971 |
|
| ||
|
Common stock issued in exchange for previously incurred debt and related accrued interest |
|
|
|
$ |
4,687,096 |
|
|
|
|
$ |
373,000 |
|
| ||
| | | | | | | | |
|
|
|
|
2012 |
|
|
2011 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Computer equipment |
|
|
|
$ |
33,464 |
|
|
|
|
$ |
33,464 |
|
| ||
|
Lab equipment |
|
|
|
|
296,904 |
|
|
|
|
|
146,101 |
|
| ||
|
Furniture |
|
|
|
|
132,435 |
|
|
|
|
|
120,405 |
|
| ||
|
Total |
|
|
|
|
462,803 |
|
|
|
|
|
299,970 |
|
| ||
|
Accumulated depreciation |
|
|
|
|
251,958 |
|
|
|
|
|
210,862 |
|
| ||
|
Property and equipment, net |
|
|
|
$ |
210,845 |
|
|
|
|
$ |
89,108 |
|
| ||
| | | | | | | |
|
|
|
|
2012 |
|
|
2011 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Trade secrets and developed technologies (Weighted average life of 7 years) |
|
|
|
$ |
9,430,900 |
|
|
|
|
$ |
9,430,900 |
|
| ||
|
Patents (Weighted average life of 5 years) |
|
|
|
|
34,257 |
|
|
|
|
|
34,257 |
|
| ||
|
Total identifiable intangible assets – Gross carrying value: |
|
|
|
|
9,465,157 |
|
|
|
|
|
9,465,157 |
|
| ||
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Accumulated amortization |
|
|
|
|
(3,810,146 |
) |
|
|
|
|
|
(3,537,302 |
) |
|
|
|
Impairment (2006) |
|
|
|
|
(5,655,011 |
) |
|
|
|
|
|
(5,655,011 |
) |
|
|
|
Net |
|
|
|
$ |
0 |
|
|
|
|
$ |
272,844 |
|
| ||
|
Residual value |
|
|
|
$ |
0 |
|
|
|
|
$ |
0 |
|
| ||
| | | | | | | |
|
|
|
|
2012 |
|
|
2011 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Accounts payable |
|
|
|
$ |
473,060 |
|
|
|
|
$ |
165,465 |
|
| ||
|
Accrued consulting fees |
|
|
|
|
102,500 |
|
|
|
|
|
102,500 |
|
| ||
|
Accrued interest payable |
|
|
|
|
— |
|
|
|
|
|
415,096 |
|
| ||
|
Accrued salaries payable |
|
|
|
|
16,449 |
|
|
|
|
|
85,000 |
|
| ||
|
Total |
|
|
|
$ |
592,009 |
|
|
|
|
$ |
768,061 |
|
| ||
| | | | | | | |
|
|
|
|
2012 |
|
|
2011 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Secured Convertible Note Payable dated June 4, 2010, net of unamortized debt discount of $1,332 (see below) |
|
|
|
$ |
— |
|
|
|
|
$ |
223,668 |
|
| ||
|
Secured Convertible Notes Payable dated July 15, 2010, net of unamortized debt discount of $26,091 (see below) |
|
|
|
|
— |
|
|
|
|
|
423,909 |
|
| ||
|
Secured Convertible Notes Payable dated November 19, 2010, net of unamortized debt discount of $10,479 (see below) |
|
|
|
|
— |
|
|
|
|
|
339,521 |
|
| ||
|
Secured Convertible Note Payable dated November 30, 2010, net of unamortized debt discount of $45,136 (see below) |
|
|
|
|
— |
|
|
|
|
|
704,864 |
|
| ||
|
Secured Convertible Note Payable dated January 7, 2011, net of unamortized debt discount of $65,159 (see below) |
|
|
|
|
— |
|
|
|
|
|
684,841 |
|
| ||
|
Secured Convertible Notes Payable, dated July 15, 2010, modified January 7, 2011, net of unamortized debt discount of $392,923 (see below) |
|
|
|
|
— |
|
|
|
|
|
1,104,077 |
|
| ||
|
Secured Convertible Note Payable, dated July 11, 2011 |
|
|
|
|
— |
|
|
|
|
|
250,000 |
|
| ||
|
Total |
|
|
|
|
— |
|
|
|
|
|
3,730,880 |
|
| ||
|
Less: current portion |
|
|
|
|
(— |
) |
|
|
|
|
|
(3,730,880 |
) |
|
|
|
Long-term debt – net |
|
|
|
$ |
— |
|
|
|
|
$ |
— |
|
| ||
| | | | | | | | |
|
Exercise Prices |
|
|
Number Outstanding |
|
|
Warrants Outstanding Remaining Contractual Life (Years) |
|
|
Weighted Average Exercise Price |
|
|
Weighted Average Exercisable |
|
|
Exercisable Weighted Average Exercise Price |
| ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
$0.03088 |
|
|
|
|
|
1,619,171 |
|
|
|
|
|
5.17 |
|
|
|
|
$ |
0.03088 |
|
|
|
|
|
1,619,171 |
|
|
|
|
$ |
0.03088 |
|
| |||||||
|
|
$0.03283 |
|
|
|
|
|
355,421 |
|
|
|
|
|
5.14 |
|
|
|
|
$ |
0.03283 |
|
|
|
|
|
355,421 |
|
|
|
|
$ |
0.03283 |
|
| |||||||
|
|
$ 0.04 |
|
|
|
|
|
3,000,000 |
|
|
|
|
|
2.92 |
|
|
|
|
$ |
0.04 |
|
|
|
|
|
3,000,000 |
|
|
|
|
$ |
0.04 |
|
| |||||||
|
|
$0.04405 |
|
|
|
|
|
2,009,081 |
|
|
|
|
|
4.79 |
|
|
|
|
$ |
0.04405 |
|
|
|
|
|
2,009,081 |
|
|
|
|
$ |
0.04405 |
|
| |||||||
|
|
$0.04750 |
|
|
|
|
|
5,052,652 |
|
|
|
|
|
5.79 |
|
|
|
|
$ |
0.04750 |
|
|
|
|
|
5,052,652 |
|
|
|
|
$ |
0.04750 |
|
| |||||||
|
|
$0.05529 |
|
|
|
|
|
904,322 |
|
|
|
|
|
5.27 |
|
|
|
|
$ |
0.05529 |
|
|
|
|
|
904,322 |
|
|
|
|
$ |
0.05529 |
|
| |||||||
|
|
$ 0.06 |
|
|
|
|
|
12,000,000 |
|
|
|
|
|
2.38 |
|
|
|
|
$ |
0.06 |
|
|
|
|
|
12,000,000 |
|
|
|
|
$ |
0.06 |
|
| |||||||
|
|
$ 0.071 |
|
|
|
|
|
1,000,000 |
|
|
|
|
|
2.32 |
|
|
|
|
$ |
0.071 |
|
|
|
|
|
— |
|
|
|
|
$ |
0.071 |
|
| |||||||
|
|
$ 0.09 |
|
|
|
|
|
9,900,000 |
|
|
|
|
|
3.92 |
|
|
|
|
$ |
0.09 |
|
|
|
|
|
9,900,000 |
|
|
|
|
$ |
0.09 |
|
| |||||||
|
|
$ 0.10 |
|
|
|
|
|
1,500,000 |
|
|
|
|
|
0.48 |
|
|
|
|
$ |
0.10 |
|
|
|
|
|
1,500,000 |
|
|
|
|
$ |
0.10 |
|
| |||||||
|
|
$ 0.50 |
|
|
|
|
|
8,500,000 |
|
|
|
|
|
0.34 |
|
|
|
|
$ |
0.50 |
|
|
|
|
|
8,500,000 |
|
|
|
|
$ |
0.50 |
|
| |||||||
|
|
|
|
|
|
|
45,840,647 |
|
|
|
|
|
2.97 |
|
|
|
|
$ |
0.14 |
|
|
|
|
|
44,840,647 |
|
|
|
|
$ |
0.145 |
|
| ||||||||
| | | | | | | | | | | | | | | | | |
|
|
|
|
Number of Shares |
|
|
Weighted Average Price Per Share |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Balance, September 30, 2010 |
|
|
|
|
69,207,946 |
|
|
|
|
$ |
0.237 |
|
| ||
|
Granted |
|
|
|
|
11,897,334 |
|
|
|
|
|
0.044 |
|
| ||
|
Exercised |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
Cancelled or expired |
|
|
|
|
(22,900,000 |
) |
|
|
|
|
|
(0.384 |
) |
|
|
|
Balance at September 30, 2011 |
|
|
|
|
58,205,280 |
|
|
|
|
$ |
0.140 |
|
| ||
|
Granted |
|
|
|
|
1,075,000 |
|
|
|
|
|
0.071 |
|
| ||
|
Exercised |
|
|
|
|
(5,039,633 |
) |
|
|
|
|
|
(0.045 |
) |
|
|
|
Cancelled or expired |
|
|
|
|
(8,400,000 |
) |
|
|
|
|
|
(0.161 |
) |
|
|
|
Balance, September 30, 2012 |
|
|
|
|
45,840,647 |
|
|
|
|
$ |
0.145 |
|
| ||
| | | | | | | |
|
Options Outstanding |
|
|
Options Exercisable |
| ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Exercise Prices |
|
|
Number Outstanding |
|
|
Weighted Average Remaining Contractual Life (Years) |
|
|
Weighted Average Exercise Price |
|
|
Number Exercisable |
|
|
Weighted Average Exercise Price |
| ||||||||||||||||||||||||
|
|
$ 0.05 |
|
|
|
|
|
29,000,000 |
|
|
|
|
|
2.65 |
|
|
|
|
$ |
0.05 |
|
|
|
|
|
29,000,000 |
|
|
|
|
$ |
0.05 |
|
| |||||||
|
|
$0.0585 |
|
|
|
|
|
50,000,000 |
|
|
|
|
|
5.79 |
|
|
|
|
$ |
0.0585 |
|
|
|
|
|
31,250,000 |
|
|
|
|
$ |
0.0585 |
|
| |||||||
|
|
$ 0.06 |
|
|
|
|
|
30,100,000 |
|
|
|
|
|
2.76 |
|
|
|
|
$ |
0.06 |
|
|
|
|
|
22,500,000 |
|
|
|
|
$ |
0.06 |
|
| |||||||
|
|
$ 0.065 |
|
|
|
|
|
634,825 |
|
|
|
|
|
4.18 |
|
|
|
|
$ |
0.065 |
|
|
|
|
|
634,825 |
|
|
|
|
$ |
0.065 |
|
| |||||||
|
|
$ 0.068 |
|
|
|
|
|
5,724,000 |
|
|
|
|
|
4.17 |
|
|
|
|
$ |
0.068 |
|
|
|
|
|
5,724,000 |
|
|
|
|
$ |
0.068 |
|
| |||||||
|
|
$ 0.07 |
|
|
|
|
|
2,850,000 |
|
|
|
|
|
2.67 |
|
|
|
|
$ |
0.07 |
|
|
|
|
|
1,187,500 |
|
|
|
|
$ |
0.07 |
|
| |||||||
|
|
$ 0.09 |
|
|
|
|
|
1,500,000 |
|
|
|
|
|
3.92 |
|
|
|
|
$ |
0.09 |
|
|
|
|
|
1,500,000 |
|
|
|
|
$ |
0.09 |
|
| |||||||
|
|
$ 0.11 |
|
|
|
|
|
5,400,000 |
|
|
|
|
|
0.71 |
|
|
|
|
$ |
0.11 |
|
|
|
|
|
5,400,000 |
|
|
|
|
$ |
0.11 |
|
| |||||||
|
|
|
|
|
|
|
125,208,825 |
|
|
|
|
|
3.94 |
|
|
|
|
$ |
0.06 |
|
|
|
|
|
97,196,325 |
|
|
|
|
$ |
0.06 |
|
| ||||||||
| | | | | | | | | | | | | | | | | |
|
|
|
|
Number of Shares |
|
|
Weighted Average Exercise Price Per Share |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Outstanding at October 1, 2010 |
|
|
|
|
66,900,000 |
|
|
|
|
$ |
0.060 |
|
| ||
|
Granted |
|
|
|
|
53,750,000 |
|
|
|
|
|
0.060 |
|
| ||
|
Exercised |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
Cancelled or expired |
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||
|
Outstanding at September 30, 2011 |
|
|
|
|
120,650,000 |
|
|
|
|
$ |
0.060 |
|
| ||
|
Granted |
|
|
|
|
6,558,825 |
|
|
|
|
|
0.067 |
|
| ||
|
Exercised |
|
|
|
|
(500,000 |
) |
|
|
|
|
|
(0.08 |
) |
|
|
|
Expired |
|
|
|
|
(1,500,000 |
) |
|
|
|
|
|
(0.08 |
) |
|
|
|
Outstanding at September 30, 2012 |
|
|
|
|
125,208,825 |
|
|
|
|
$ |
0.060 |
|
| ||
| | | | | | | |
|
Non current: |
|
|
|
|
|
|
| |
|
Net operating loss carryforward |
|
|
|
$ |
38,000,000 |
|
| |
|
Valuation allowance |
|
|
|
|
(38,000,000 |
) |
|
|
|
Net deferred tax asset |
|
|
|
$ |
— |
|
| |
| | | | |
|
|
|
|
For the Year Ended September 30, 2012 |
|
|
For the Year Ended September 30, 2011 |
| ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Net loss available for common shareholders |
|
|
|
$ |
(7,150,712 |
) |
|
|
|
|
$ |
(10,515,124 |
) |
|
|
|
Net Loss per share – basic and diluted |
|
|
|
$ |
(0.01 |
) |
|
|
|
|
$ |
(0.03 |
) |
|
|
|
Weighted average common shares outstanding – basic |
|
|
|
|
576,091,498 |
|
|
|
|
|
376,833,809 |
|
| ||
|
Weighted average common shares outstanding – diluted |
|
|
|
|
576,091,498 |
|
|
|
|
|
376,833,809 |
|
| ||
| | | | | | | |
|
Nature of Expense |
|
|
Amount |
| ||||
---|---|---|---|---|---|---|---|---|---|
|
Registration fee |
|
|
|
$ |
3,608 |
|
| |
|
NASDAQ filing fee |
|
|
|
$ |
75,000 |
* |
|
|
|
Accounting fees and expenses |
|
|
|
$ |
27,500 |
* |
|
|
|
Legal fees and expenses |
|
|
|
$ |
270,000 |
* |
|
|
|
Transfer agent fees and expenses |
|
|
|
$ |
18,000 |
* |
|
|
|
Miscellaneous |
|
|
|
$ |
130,892 |
* |
|
|
|
TOTAL |
|
|
|
$ |
525,000 |
* |
|
|
| | | | |
|
Securities Issued |
|
|
Initial Purchase Agreement |
|
|
Second Purchase Agreement |
| ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
Shares issued |
|
|
Price per share |
|
|
Shares issued |
|
|
Price per share |
| ||||||||||||||||
|
Common Stock |
|
|
|
|
10,752,688 |
|
|
|
|
$ |
0.1860 |
|
|
|
|
|
10,695,187 |
|
|
|
|
$ |
0.1870 |
|
| ||||
|
Series A Warrants |
|
|
|
|
10,752,688 |
|
|
|
|
$ |
0.2232 |
|
|
|
|
|
10,695,187 |
|
|
|
|
$ |
0.2431 |
|
| ||||
|
Series B Warrants |
|
|
|
|
29,569,862 |
|
|
|
|
$ |
0.2232 |
|
|
|
|
|
29,411,764 |
|
|
|
|
$ |
0.2431 |
|
| ||||
|
Series C Warrants |
|
|
|
|
26,881,720 |
|
|
|
|
$ |
0.2232 |
|
|
|
|
|
26,737,967 |
|
|
|
|
$ |
0.2431 |
|
| ||||
|
Series A Preferred Stock |
|
|
|
|
5,500 |
|
|
|
|
|
1,000 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
| ||||
|
Series B Preferred Stock |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
5,500 |
|
|
|
|
|
1,000 |
|
| ||||
| | | | | | | | | | | | | | |
|
Exhibit Number |
|
|
Description |
|
|
Incorporated by Reference |
|
|
Filed or Furnished Herewith |
| ||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Form |
|
|
File No. |
|
|
Date Filed |
| |||||||||
|
1.1# |
|
|
Form of Underwriting Agreement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.1 |
|
|
Certificate of Incorporation |
|
|
8-K |
|
|
002-90539 |
|
|
1/16/2009 |
|
|
|
|
|
3.2 |
|
|
Certificate of Amendment of Certificate of Incorporation |
|
|
8-K |
|
|
002-90539 |
|
|
1/30/2012 |
|
|
|
|
|
3.3 |
|
|
Form of Certificate of Designations of the Series A Convertible Preferred Stock |
|
|
8-K |
|
|
002-90539 |
|
|
11/29/2012 |
|
|
|
|
|
3.4 |
|
|
Form of Certificate of Designations of the Series B Convertible Preferred Stock |
|
|
8-K |
|
|
002-90539 |
|
|
7/22/2013 |
|
|
|
|
|
3.5 |
|
|
By-Laws |
|
|
8-K |
|
|
002-90539 |
|
|
1/16/2009 |
|
|
|
|
|
4.1 |
|
|
Form of Series A Warrants issued to Crede CG III, Ltd. as of July 19, 2013 |
|
|
8-K |
|
|
002-90539 |
|
|
7/22/2013 |
|
|
|
|
|
4.2 |
|
|
Form of Series B Warrants issued to Crede CG III, Ltd. as of July 19, 2013 |
|
|
8-K |
|
|
002-90539 |
|
|
7/22/2013 |
|
|
|
|
|
4.3 |
|
|
Registration Rights Agreement dated as of July 19, 2013 by and between Applied DNA Sciences, Inc. and Crede CG III, Ltd. |
|
|
8-K |
|
|
002-90539 |
|
|
7/22/2013 |
|
|
|
|
|
4.4 |
|
|
Registration Rights Agreement dated as of November 28, 2012 by and between Applied DNA Sciences, Inc. and Crede CG II, Ltd. |
|
|
8-K |
|
|
002-90539 |
|
|
11/29/2012 |
|
|
|
|
|
4.5# |
|
|
Form of underwriter’s warrant |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.1# |
|
|
Opinion of Fulbright & Jaworski LLP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1† |
|
|
Applied DNA Sciences, Inc. 2005 Stock Incentive Plan and form of employee stock option agreement thereunder, amended and restated as of January 27, 2012 |
|
|
10-Q |
|
|
002-90539 |
|
|
5/15/2012 |
|
|
|
|
|
10.2* |
|
|
Joint Development and Marketing Agreement, dated April 18, 2007 by and between Applied DNA Sciences and International Imaging Materials, Inc. |
|
|
8-K |
|
|
002-90539 |
|
|
4/24/2007 |
|
|
|
|
|
10.4 |
|
|
Agreement, dated August 11, 2008, by and between Huddersfield and Textile Training Company, Limited and Applied DNA Sciences, Inc. |
|
|
10-K/A |
|
|
002-90539 |
|
|
7/25/2011 |
|
|
|
|
|
10.5 |
|
|
Form of Subscription Agreement, dated July 15, 2011, by and among Applied DNA Sciences, Inc. and the investors named on the signature pages thereto |
|
|
10-K |
|
|
002-90539 |
|
|
12/9/2011 |
|
|
|
|
|
10.6 |
|
|
Form of Warrant, dated July 15, 2011, issued to the investors named on the signature pages |
|
|
10-K |
|
|
002-90539 |
|
|
12/9/2011 |
|
|
|
|
|
10.9† |
|
|
Employment Agreement, dated July 11, 2011, between James A. Hayward and Applied DNA Sciences, Inc. |
|
|
10-K |
|
|
002-90539 |
|
|
12/9/2011 |
|
|
|
|
| | | | | | | | | | | |
|
Exhibit Number |
|
|
Description |
|
|
Incorporated by Reference |
|
|
Filed or Furnished Herewith |
| ||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Form |
|
|
File No. |
|
|
Date Filed |
| |||||||||
|
10.11* |
|
|
Exclusive Sales Agreement dated November 1, 2011 by and between Applied DNA Sciences, Inc. and Nissha Printing Co., Ltd. |
|
|
10-Q |
|
|
002-90539 |
|
|
2/14/2012 |
|
|
|
|
|
10.12 |
|
|
Software Distribution Agreement, dated as of January 25, 2012, by and between Applied DNA Sciences, Inc. and DivineRune, Inc. |
|
|
10-Q |
|
|
002-90539 |
|
|
5/15/2012 |
|
|
|
|
|
10.13 |
|
|
Form of Subscription Agreement dated June 21, 2012, by and among Applied DNA Sciences, Inc. and the investor named on the signature page thereto |
|
|
10-K |
|
|
002-90539 |
|
|
12/20/2013 |
|
|
|
|
|
10.14† |
|
|
Form of Indemnification Agreement dated as of September 7, 2012, by and between Applied DNA Sciences, Inc. and each of its directors and executive officers |
|
|
8-K |
|
|
002-90539 |
|
|
9/13/2012 |
|
|
|
|
|
10.15 |
|
|
Securities Purchase Agreement dated as of November 28, 2012 by and between Applied DNA Sciences, Inc. and Crede CG II, Ltd. |
|
|
8-K |
|
|
002-90539 |
|
|
11/29/2012 |
|
|
|
|
|
10.16 |
|
|
Securities Purchase Agreement dated as of July 19, 2013, between Applied DNA Sciences, Inc. and Crede CG III, Ltd. |
|
|
8-K |
|
|
002-90539 |
|
|
7/22/2013 |
|
|
|
|
|
10.17† |
|
|
Employment Offer Letter dated August 6, 2013, between Applied DNA Sciences, Inc. and Karol Gray |
|
|
10-K |
|
|
002-90539 |
|
|
12/20/2013 |
|
|
|
|
|
10.18 |
|
|
Asset Purchase Agreement dated May 10, 2013, between Applied DNA Sciences, Inc. and RedWeb Technologies Limited |
|
|
10-Q |
|
|
002-90539 |
|
|
8/13/2013 |
|
|
|
|
|
10.19 |
|
|
Agreement of Lease dated June 14, 2013, between Applied DNA Sciences, Inc. and Long Island High Technology Incubator, Inc. |
|
|
10-Q |
|
|
002-90539 |
|
|
8/13/2013 |
|
|
|
|
|
10.20** |
|
|
Term sheet for Mutual Cooperation with Borealis AG dated March 31, 2014 |
|
|
8-K/A |
|
|
002-90539 |
|
|
7/22/2014 |
|
|
|
|
|
10.21 |
|
|
Form of Subscription Agreement dated June 3, 2014 |
|
|
8-K |
|
|
002-90539 |
|
|
6/6//2014 |
|
|
|
|
|
10.22 |
|
|
Form of Warrant dated June 3, 2014 |
|
|
8-K |
|
|
002-90539 |
|
|
6/6/2014 |
|
|
|
|
|
10.23 |
|
|
Form of Award/Contract issued by U.S. Missile Defense Agency dated July 14, 2014 |
|
|
8-K |
|
|
002-90539 |
|
|
7/18/2014 |
|
|
|
|
|
10.24 |
|
|
Form of Promissory Note |
|
|
8-K |
|
|
002-90539 |
|
|
9/17/14 |
|
|
|
|
|
10.25# |
|
|
Form of Warrant |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21.1# |
|
|
Subsidiaries of Applied DNA Sciences, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23.1 |
|
|
Consent of RBSM LLP |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
|
23.2# |
|
|
Consent of Fulbright & Jaworski LLP (included in Exhibit 5.1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24.1 |
|
|
Power of Attorney (included on signature page) |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
|
101 INS |
|
|
XBRL Instance Document |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
| | | | | | | | | | | |
|
Exhibit Number |
|
|
Description |
|
|
Incorporated by Reference |
|
|
Filed or Furnished Herewith |
| ||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Form |
|
|
File No. |
|
|
Date Filed |
| |||||||||
|
101 SCH |
|
|
XBRL Taxonomy Extension Schema Document |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
|
101 CAL |
|
|
XBRL Taxonomy Extension Calculation Linkbase Document |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
|
101 DEF |
|
|
XBRL Taxonomy Extension Definitions Linkbase Document |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
|
101 LAB |
|
|
XBRL Taxonomy Extension Labels Linkbase Document |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
|
101 PRE |
|
|
XBRL Taxonomy Extension Presentation Linkbase Document |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
| | | | | | | | | | | |
|
|
|
|
APPLIED DNA SCIENCES, INC. (Registrant) |
| |||
|
|
|
|
By: |
|
|
/s/ JAMES A. HAYWARD |
|
|
|
|
|
|
|
|
James A. Hayward Chairman, President and Chief Executive Officer |
|
| | | | | |
|
Signature |
|
|
Title |
|
|
Date |
|
---|---|---|---|---|---|---|---|---|
|
/s/ JAMES A. HAYWARD James A. Hayward |
|
|
Chairman, President, Chief Executive Officer (Principal Executive Officer) and Director |
|
|
October 2, 2014 |
|
|
/s/ KAROL KAIN GRAY Karol Kain Gray |
|
|
Chief Financial Officer (Principal Financial and Accounting Officer) |
|
|
October 2, 2014 |
|
|
/s/ JOHN BITZER, III John Bitzer, III |
|
|
Director |
|
|
October 2, 2014 |
|
|
/s/ CHARLES RYAN Charles Ryan |
|
|
Director |
|
|
October 2, 2014 |
|
|
/s/ YACOV SHAMASH Yacov Shamash |
|
|
Director |
|
|
October 2, 2014 |
|
|
/s/ SANFORD R. SIMON Sanford R. Simon |
|
|
Director |
|
|
October 2, 2014 |
|
| | | | | |
|
Exhibit Number |
|
|
Description |
|
|
Incorporated by Reference |
|
|
Filed or Furnished Herewith |
| ||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Form |
|
|
File No. |
|
|
Date Filed |
| |||||||||
|
1.1# |
|
|
Form of Underwriting Agreement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.1 |
|
|
Certificate of Incorporation |
|
|
8-K |
|
|
002-90539 |
|
|
1/16/2009 |
|
|
|
|
|
3.2 |
|
|
Certificate of Amendment of Certificate of Incorporation |
|
|
8-K |
|
|
002-90539 |
|
|
1/30/2012 |
|
|
|
|
|
3.3 |
|
|
Form of Certificate of Designations of the Series A Convertible Preferred Stock |
|
|
8-K |
|
|
002-90539 |
|
|
11/29/2012 |
|
|
|
|
|
3.4 |
|
|
Form of Certificate of Designations of the Series B Convertible Preferred Stock |
|
|
8-K |
|
|
002-90539 |
|
|
7/22/2013 |
|
|
|
|
|
3.5 |
|
|
By-Laws |
|
|
8-K |
|
|
002-90539 |
|
|
1/16/2009 |
|
|
|
|
|
4.1 |
|
|
Form of Series A Warrants issued to Crede CG III, Ltd. as of July 19, 2013 |
|
|
8-K |
|
|
002-90539 |
|
|
7/22/2013 |
|
|
|
|
|
4.2 |
|
|
Form of Series B Warrants issued to Crede CG III, Ltd. as of July 19, 2013 |
|
|
8-K |
|
|
002-90539 |
|
|
7/22/2013 |
|
|
|
|
|
4.3 |
|
|
Registration Rights Agreement dated as of July 19, 2013 by and between Applied DNA Sciences, Inc. and Crede CG III, Ltd. |
|
|
8-K |
|
|
002-90539 |
|
|
7/22/2013 |
|
|
|
|
|
4.4 |
|
|
Registration Rights Agreement dated as of November 28, 2012 by and between Applied DNA Sciences, Inc. and Crede CG II, Ltd. |
|
|
8-K |
|
|
002-90539 |
|
|
11/29/2012 |
|
|
|
|
|
4.5 |
|
|
Form of underwriter’s warrant |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.1# |
|
|
Opinion of Fulbright & Jaworski LLP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1† |
|
|
Applied DNA Sciences, Inc. 2005 Stock Incentive Plan and form of employee stock option agreement thereunder, amended and restated as of January 27, 2012 |
|
|
10-Q |
|
|
002-90539 |
|
|
5/15/2012 |
|
|
|
|
|
10.2* |
|
|
Joint Development and Marketing Agreement, dated April 18, 2007 by and between Applied DNA Sciences and International Imaging Materials, Inc. |
|
|
8-K |
|
|
002-90539 |
|
|
4/24/2007 |
|
|
|
|
|
10.4 |
|
|
Agreement, dated August 11, 2008, by and between Huddersfield and Textile Training Company, Limited and Applied DNA Sciences, Inc. |
|
|
10-K/A |
|
|
002-90539 |
|
|
7/25/2011 |
|
|
|
|
|
10.5 |
|
|
Form of Subscription Agreement, dated July 15, 2011, by and among Applied DNA Sciences, Inc. and the investors named on the signature pages thereto |
|
|
10-K |
|
|
002-90539 |
|
|
12/9/2011 |
|
|
|
|
|
10.6 |
|
|
Form of Warrant, dated July 15, 2011, issued to the investors named on the signature pages |
|
|
10-K |
|
|
002-90539 |
|
|
12/9/2011 |
|
|
|
|
|
10.9† |
|
|
Employment Agreement, dated July 11, 2011, between James A. Hayward and Applied DNA Sciences, Inc. |
|
|
10-K |
|
|
002-90539 |
|
|
12/9/2011 |
|
|
|
|
|
10.11* |
|
|
Exclusive Sales Agreement dated November 1, 2011 by and between Applied DNA Sciences, Inc. and Nissha Printing Co., Ltd. |
|
|
10-Q |
|
|
002-90539 |
|
|
2/14/2012 |
|
|
| |
| | | | | | | | | | | |
|
Exhibit Number |
|
|
Description |
|
|
Incorporated by Reference |
|
|
Filed or Furnished Herewith |
| ||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Form |
|
|
File No. |
|
|
Date Filed |
| |||||||||
|
10.12 |
|
|
Software Distribution Agreement, dated as of January 25, 2012, by and between Applied DNA Sciences, Inc. and DivineRune, Inc. |
|
|
10-Q |
|
|
002-90539 |
|
|
5/15/2012 |
|
|
|
|
|
10.13 |
|
|
Form of Subscription Agreement dated June 21, 2012, by and among Applied DNA Sciences, Inc. and the investor named on the signature page thereto |
|
|
10-K |
|
|
002-90539 |
|
|
12/20/2013 |
|
|
|
|
|
10.14† |
|
|
Form of Indemnification Agreement dated as of September 7, 2012, by and between Applied DNA Sciences, Inc. and each of its directors and executive officers |
|
|
8-K |
|
|
002-90539 |
|
|
9/13/2012 |
|
|
|
|
|
10.15 |
|
|
Securities Purchase Agreement dated as of November 28, 2012 by and between Applied DNA Sciences, Inc. and Crede CG II, Ltd. |
|
|
8-K |
|
|
002-90539 |
|
|
11/29/2012 |
|
|
|
|
|
10.16 |
|
|
Securities Purchase Agreement dated as of July 19, 2013, between Applied DNA Sciences, Inc. and Crede CG III, Ltd. |
|
|
8-K |
|
|
002-90539 |
|
|
7/22/2013 |
|
|
|
|
|
10.17† |
|
|
Employment Offer Letter dated August 6, 2013, between Applied DNA Sciences, Inc. and Karol Gray |
|
|
10-K |
|
|
002-90539 |
|
|
12/20/2013 |
|
|
|
|
|
10.18 |
|
|
Asset Purchase Agreement dated May 10, 2013, between Applied DNA Sciences, Inc. and RedWeb Technologies Limited |
|
|
10-Q |
|
|
002-90539 |
|
|
8/13/2013 |
|
|
|
|
|
10.19 |
|
|
Agreement of Lease dated June 14, 2013, between Applied DNA Sciences, Inc. and Long Island High Technology Incubator, Inc. |
|
|
10-Q |
|
|
002-90539 |
|
|
8/13/2013 |
|
|
|
|
|
10.20** |
|
|
Term sheet for Mutual Cooperation with Borealis AG dated March 31, 2014 |
|
|
8-K/A |
|
|
002-90539 |
|
|
7/22/2014 |
|
|
|
|
|
10.21 |
|
|
Form of Subscription Agreement dated June 3, 2014 |
|
|
8-K |
|
|
002-90539 |
|
|
6/6//2014 |
|
|
|
|
|
10.22 |
|
|
Form of Warrant dated June 3, 2014 |
|
|
8-K |
|
|
002-90539 |
|
|
6/6/2014 |
|
|
|
|
|
10.23 |
|
|
Form of Award/Contract issued by U.S. Missile Defense Agency dated July 14, 2014 |
|
|
8-K |
|
|
002-90539 |
|
|
7/18/2014 |
|
|
|
|
|
10.24 |
|
|
Form of Promissory Note |
|
|
8-K |
|
|
002-90539 |
|
|
9/17/14 |
|
|
|
|
|
10.25# |
|
|
Form of Warrant |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21.1# |
|
|
Subsidiaries of Applied DNA Sciences, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23.1 |
|
|
Consent of RBSM LLP |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
|
23.2# |
|
|
Consent of Fulbright & Jaworski LLP (included in Exhibit 5.1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24.1 |
|
|
Power of Attorney (included on signature page) |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
|
101 INS |
|
|
XBRL Instance Document |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
|
101 SCH |
|
|
XBRL Taxonomy Extension Schema Document |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
|
101 CAL |
|
|
XBRL Taxonomy Extension Calculation Linkbase Document |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
| | | | | | | | | | | |
|
Exhibit Number |
|
|
Description |
|
|
Incorporated by Reference |
|
|
Filed or Furnished Herewith |
| ||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Form |
|
|
File No. |
|
|
Date Filed |
| |||||||||
|
101 DEF |
|
|
XBRL Taxonomy Extension Definitions Linkbase Document |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
|
101 LAB |
|
|
XBRL Taxonomy Extension Labels Linkbase Document |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
|
101 PRE |
|
|
XBRL Taxonomy Extension Presentation Linkbase Document |
|
|
|
|
|
|
|
|
|
|
|
Filed |
|
| | | | | | | | | | | |
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the inclusion in this Registration Statement on Form S-1 of Applied DNA Sciences, Inc. (the “Company”) of our report dated May 1, 2014, relating to the consolidated financial statements of the Company as of September 30, 2013 and 2012 and for each of the two years in the period ended September 30, 2013 and the effectiveness of internal control over financial reporting of the Company as of September 30, 2013, and of our report dated December 20, 2012, relating to the consolidated financial statements of the Company as of September 30, 2012 and for each of the two years in the period ended September 30, 2012. We also consent to the references to our Firm under the caption “Experts” appearing in such Registration Statement and related Prospectus.
/s/ RBSM LLP
New York, New York
October 1, 2014
LIQUIDITY AND MANAGEMENT'S PLAN (Detail Textuals) (USD $)
|
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2014
|
Jun. 30, 2013
|
Jun. 30, 2014
|
Jun. 30, 2013
|
Sep. 30, 2013
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Oct. 01, 2012
|
Oct. 01, 2011
|
Sep. 30, 2010
|
|
Agreement [Line Items] | ||||||||||
Accumulated deficit | $ (197,654,754) | $ (197,654,754) | $ (186,693,611) | $ (169,007,139) | $ (161,856,427) | |||||
Net loss | (1,919,057) | (2,135,612) | (10,961,143) | (13,968,001) | (17,686,472) | (7,150,712) | (10,515,124) | |||
Operating cash flow | (6,271,019) | (5,696,917) | (7,870,353) | (3,960,679) | (3,761,716) | |||||
Working capital | 1,106,719 | 1,106,719 | 6,091,555 | |||||||
Cash and cash equivalents | 2,025,716 | 1,831,791 | 2,025,716 | 1,831,791 | 6,360,301 | 724,782 | 2,747,294 | 724,782 | 2,747,294 | 17,618 |
Proceeds from issuance of private placement | 2,145,956 | |||||||||
Positive working capital | 509,804 | |||||||||
Securities Purchase Agreement With Crede CG II Ltd
|
||||||||||
Agreement [Line Items] | ||||||||||
Capital raised | 7,500,000 | |||||||||
Gross proceeds from raising of capital | $ 2,000,000 |
PRIVATE PLACEMENT OF CONVERTIBLE NOTES - 10% Senior Secured Convertible Promissory Notes dated July 15, 2010 (Details Textuals 1) (USD $)
|
0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 07, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Jun. 30, 2014
|
Sep. 30, 2013
|
Jan. 07, 2011
Secured Convertible Notes Payable dated July 15, 2010
|
Jul. 15, 2010
Secured Convertible Notes Payable dated July 15, 2010
|
Jan. 31, 2012
Secured Convertible Notes Payable dated July 15, 2010
|
Sep. 30, 2012
Secured Convertible Notes Payable dated July 15, 2010
|
Sep. 30, 2011
Secured Convertible Notes Payable dated July 15, 2010
|
Jan. 06, 2011
Secured Convertible Notes Payable dated July 15, 2010
|
|
Debt Instrument [Line Items] | |||||||||||
Converted portion of convertible promissory notes issued | $ 1,550,000 | $ 450,000 | |||||||||
Interest rate on promissory note | 10.00% | ||||||||||
Convertible promissory note issued to related party | 2,000,000 | ||||||||||
Price at maturity for conversion into common stock | $ 0.037104 | $ 0.04405 | $ 0.04405 | ||||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Percentage of price paid by investor used for determination of conversion price in lieu of fixed conversion price after closing of subsequent financing rate | 80.00% | ||||||||||
Threshold limit of gross proceeds to be classified as qualified financing | 10,000,000 | ||||||||||
Remaining senior secured convertible promissory notes | 450,000 | ||||||||||
Intrinsic value of the embedded beneficial conversion feature | 678,774 | ||||||||||
Intrinsic value of the embedded beneficial conversion feature amortized to interest expense | (678,774) | ||||||||||
Amortization of debt discount attributable to convertible debentures | 331,332 | 541,120 | 2,096,427 | 331,332 | 26,091 | 70,102 | |||||
Common stock issued in settlement of convertible debentures and interest (in shares) | 22,924,513 | 11,729,821 | |||||||||
Convertible notes and related accrued interest settled | $ 450,000 |
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