SUBSEQUENT EVENTS

12 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE M – SUBSEQUENT EVENTS

On November 20, 2014, the Company closed its underwritten public offering of 2,800,000 shares of common stock and warrants to purchase up to an aggregate of 2,800,000 shares of Common Stock for gross proceeds of $9.1 million before deducting underwriting discounts and offering expenses. The Company utilized $4,091,000 of the gross proceeds to repurchase the remaining Series B Warrants from Crede, as discussed in Note F. The public offering price for each share of Common Stock and each warrant was $3.25. The warrants may be exercised for a period of five years and have a per share exercise price of $3.50 per share of Common Stock. In connection with the offering, the Company granted to the underwriters a 45-day option to purchase up to 420,000 additional shares of Common Stock and/or up to 420,000 additional warrants to cover over-allotments, if any. The Company’s Chief Executive Officer and an affiliate of a member of the Company’s board of directors participated in this underwritten public offering. The Company’s Common Stock and warrants are listed on the Nasdaq Capital Market under the symbols “APDN” and “APDNW”, respectively. In addition, the Company agreed to issue to the underwriters warrants to purchase 128,800 shares of common stock at an exercise price of $3.73 per share. The Company had approximately $1,212,000 of deferred offering costs as of December 15, 2014.

In connection with the closing of the offering, the Company entered into a Warrant Agreement with American Stock Transfer & Trust Company, LLC, as warrant agent (“Warrant Agreement”), pursuant to which American Stock Transfer & Trust Company, LLC has agreed to act as transfer agent with respect to the warrants for the Company. A copy of the Warrant Agreement is filed as Exhibit 4.1 and is incorporated herein by reference.

On November 20, 2014 the Company granted 83,334 options to purchase the Company’s Common Stock at an exercise price of $2.69 per share for five years to a consultant, which vest immediately.

On December 3, 2014, Joseph Ceccoli was appointed to the Company’s Board of Directors.