LIQUIDITY AND MANAGEMENT'S PLAN

12 Months Ended

Sep. 30, 2014

Liquidity And Management Plan [Abstract]

LIQUIDITY AND MANAGEMENT'S PLAN

NOTE A – LIQUIDITY AND MANAGEMENT’S PLAN

The Company has recurring net losses, which have resulted in an accumulated deficit of $199,760,272 as of September 30, 2014. The Company incurred a net loss of $13,066,661 and generated negative operating cash flow of $8,512,738 for the fiscal year ended September 30, 2014. The Company also has a working capital deficit of $1,514,806 as of September 30, 2014. At September 30, 2014 the Company had cash and cash equivalents of $1,393,132. The Company’s current capital resources include cash and cash equivalents and other working capital resources. Historically, the Company has financed its operations principally from the sale of equity securities. The Company raised $2,156,264 in a private placement of common stock and warrants and $1,800,000 in promissory notes during the fiscal year ended September 30, 2014, including $1,000,000 from a related party. See Notes H and E, respectively. As discussed in Note M, on November 20, 2014 the Company closed its underwritten public offering of common stock and warrants 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 Company expects to finance operations primarily through cash flows provided by operating activities provided that it achieves a sufficient level of future revenues. The Company estimates that its cash and cash equivalents are sufficient to fund operations for the next twelve months.

The Company will require additional funds to complete the continued development of its products, product manufacturing, and to fund expected additional losses from operations, until revenues are sufficient to cover the Company's operating expenses. If the Company is unsuccessful in obtaining the necessary additional financing, it will most likely be forced to reduce operations.