Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Jun. 30, 2016	Aug. 11, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	Oncobiologics, Inc.
Entity Central Index Key	0001649989
Trading Symbol	ons
Current Fiscal Year End Date	--09-30
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		22,802,778
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Current assets:
Cash	$ 13,555,375	$ 9,070,975
Accounts receivable	3,670	20,000
Stock subscription receivable		4,280,149
Related party receivable	43,350
Prepaid and other current assets	1,259,348	1,793,109
Total current assets	14,861,743	15,164,233
Property and equipment, net	17,054,098	17,759,938
Restricted cash	215,520	213,663
Deferred offering costs		960,563
Other assets	860,964	910,224
Total assets	32,992,325	35,008,621
Current liabilities:
Current portion of debt	752,449	742,646
Current portion of capital lease obligations	936,783	862,849
Current portion of stockholder notes	4,612,500	14,214,196
Accounts payable	4,534,396	11,563,055
Accrued expenses	8,266,564	5,924,648
Income taxes payable	1,854,629	1,754,629
Deferred revenue	1,979,576	1,979,576
Total current liabilities	22,936,897	37,041,599
Long-term debt	2,370,267	2,922,764
Capital lease obligations	564,536	1,219,373
Stockholder notes		2,000,000
Deferred revenue	4,881,263	6,365,945
Stock-based compensation liability		12,726,722
Other liabilities	676,231	284,710
Total liabilities	31,429,194	62,561,113
Redeemable preferred stock, common stock and noncontrolling interests:
Redeemable common stock-1,739,130 shares issued and outstanding at September 30, 2015		15,426,673
Redeemable noncontrolling interests		1,703,777
Total redeemable preferred stock, common stock and noncontrolling interests		27,321,311
Stockholders' equity (deficit):
Series A preferred stock, par value $0.01 per share: 10,000,000 shares authorized, no shares issued and outstanding
Common stock value		39,844,900
Additional paid-in capital	138,133,413
Accumulated deficit	(136,798,310)	(94,064,286)
Total Oncobiologics, Inc. stockholders' equity (deficit)	1,563,131	(54,219,386)
Non controlling interests		(654,417)
Total stockholders' equity (deficit)	1,563,131	(54,873,803)
Total liabilities, redeemable preferred stock, common stock, noncontrolling interests and stockholders' equity (deficit)	32,992,325	35,008,621
Series A redeemable preferred stock
Redeemable preferred stock, common stock and noncontrolling interests:
Redeemable preferred stock		5,072,653
Series B redeemable preferred stock
Redeemable preferred stock, common stock and noncontrolling interests:
Redeemable preferred stock		$ 5,118,208
Common Stock
Stockholders' equity (deficit):
Common stock value	$ 228,028

Consolidated Balance Sheets (Parentheticals) - $ / shares	Jun. 30, 2016	Sep. 30, 2015
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	0
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	0	100,000,000
Common stock, shares, issued	0	9,436,294
Common stock, shares, outstanding	0	9,436,294
Redeemable common stock, shares issued		1,739,130
Redeemable common stock, shares outstanding		1,739,130
Series A redeemable preferred stock
Preferred stock, par value per share (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	0	8,000
Preferred stock, shares issued	0	3,568
Preferred stock, shares outstanding	0	3,568
Series B redeemable preferred stock
Preferred stock, par value per share (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	0	4,000
Preferred stock, shares issued	0	4,000
Preferred stock, shares outstanding	0	4,000
Common stock
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0
Common stock, shares authorized	200,000,000	0
Common stock, shares, issued	22,802,778	0
Common stock, shares, outstanding	22,802,778	0

Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Collaboration revenues	$ 494,894	$ 1,294,894	$ 2,484,682	$ 4,724,343
Operating expenses:
Research and development	12,017,724	9,681,019	28,889,977	25,675,518
General and administrative	10,504,663	2,659,616	14,989,380	8,239,545
Operating expenses total	22,522,387	12,340,635	43,879,357	33,915,063
Loss from operations	(22,027,493)	(11,045,741)	(41,394,675)	(29,190,720)
Interest expense, net	299,439	554,831	1,236,349	1,618,340
Loss before income taxes	(22,326,932)	(11,600,572)	(42,631,024)	(30,809,060)
Income tax expense (benefit)	500	120,000	103,000	(199,855)
Net loss	(22,327,432)	(11,720,572)	(42,734,024)	(30,609,205)
Less: Net loss attributable to noncontrolling interests		(380,435)		(380,435)
Net loss attributable to Oncobiologics, Inc.	(22,327,432)	(11,340,137)	(42,734,024)	(30,228,770)
Accretion of redeemable preferred stock and noncontrolling interests	(493,207)	(1,091,590)	(2,463,160)	(3,197,283)
Deemed dividend upon issuance of warrants to common stockholders	(7,373,820)		(7,373,820)
Deemed dividends upon the repurchase of Series A redeemable preferred stock and redeemable noncontrolling interests				(1,298,631)
Net loss attributable to common stockholders of Oncobiologics, Inc.	$ (30,194,459)	$ (12,431,727)	$ (52,571,004)	$ (34,724,684)
Per share information:
Net loss per share of common stock, basic and diluted (in dollars per share)	$ (1.60)	$ (1.30)	$ (3.43)	$ (3.67)
Weighted average shares outstanding, basic and diluted (in shares)	18,816,708	9,588,022	15,336,117	9,449,575

Consolidated Statements of Redeemable Preferred Stock, Common Stock, Noncontrolling Interests (unaudited) - USD ($)	3 Months Ended	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Redeemable Preferred Stock, Common Stock and Noncontrolling Interests \| Preferred Stock \| Series A
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance		$ 5,072,653
Balance (in shares)		3,568
Reincorporation to a Delaware Corporation		$ (5,072,653)
Reincorporation to a Delaware Corporation (in shares)		(3,568)
Redeemable Preferred Stock, Common Stock and Noncontrolling Interests \| Preferred Stock \| Series B
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance		$ 5,118,208
Balance (in shares)		4,000
Reincorporation to a Delaware Corporation		$ (5,118,208)
Reincorporation to a Delaware Corporation (in shares)		(4,000)
Redeemable Preferred Stock, Common Stock and Noncontrolling Interests \| Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance		$ 15,426,673
Balance (in shares)		1,739,130
Accretion of redeemable common stock		$ 2,463,160
Reclassifiation of redeemable common stock upon consummation of the initial public offering		$ (17,889,833)
Reclassifiation of redeemable common stock upon consummation of the initial public offering (In shares)		(1,739,130)
Redeemable Preferred Stock, Common Stock and Noncontrolling Interests \| Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance		$ 1,703,777
Issuance of common stock upon the dissolution of Parilis		(1,703,777)
Preferred Stock \| Series A
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reincorporation to a Delaware Corporation		$ 102
Reincorporation to a Delaware Corporation (in shares)		10,193
Issuance of common stock upon the dissolution of Parilis		$ 16
Issuance of common stock upon the dissolution of Parilis (in shares)		1,626
Conversion of Series A preferred stock in connection with the initial public offering		$ (118)
Conversion of Series A preferred stock in connection with the initial public offering (in shares)		(11,819)
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance		$ 39,844,900
Balance (in shares)		9,436,294
Employee tax witholdings related to the vesting of restricted stock		$ (71,760)
Employee tax witholdings related to the vesting of restricted stock (in shares)		(2,782)
Reincorporation to a Delaware Corporation		$ (39,656,869)
Reincorporation to a Delaware Corporation (in shares)		2,193,601
Issuance of common stock upon the dissolution of Parilis		$ 2,267
Issuance of common stock upon the dissolution of Parilis (in shares)		226,663
Sale of common stock, net of issuance costs		$ 5,734
Sale of common stock, net of issuance costs (in shares)		573,388
Sale of common stock units upon consummation of initial public offering and concurrent private placement, net of issuance costs		$ 66,667
Sale of common stock units upon consummation of initial public offering and concurrent private placement, net of costs (in shares)		6,666,666
Reclassifiation of redeemable common stock upon consummation of the initial public offering		$ 17,391
Reclassifiation of redeemable common stock upon consummation of the initial public offering (In shares)		1,739,130
Conversion of Series A preferred stock in connection with the initial public offering		$ 19,698
Conversion of Series A preferred stock in connection with the initial public offering (in shares)		1,969,818
Balance	$ 228,028	$ 228,028
Balance (in shares)	22,802,778	22,802,778
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reincorporation to a Delaware Corporation		$ 49,847,628
Issuance of common stock upon the dissolution of Parilis		1,701,494
Sale of common stock, net of issuance costs		16,132,179
Reclassification of stock-based compensation liability		15,118,584
Accretion of redeemable common stock		(2,463,160)
Sale of common stock units upon consummation of initial public offering and concurrent private placement, net of issuance costs		33,717,538
Reclassifiation of redeemable common stock upon consummation of the initial public offering		17,872,442
Conversion of Series A preferred stock in connection with the initial public offering		(19,580)
Stock-based compensation expense		6,226,288
Balance	$ 138,133,413	138,133,413
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance		(94,064,286)
Net loss		(42,734,024)
Balance	(136,798,310)	(136,798,310)
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance		(654,417)
Deconsolidation of Sonnet Biotherapeutics, Inc.		654,417
Balance		(54,873,803)
Deconsolidation of Sonnet Biotherapeutics, Inc.		654,417
Employee tax witholdings related to the vesting of restricted stock		(71,760)
Reincorporation to a Delaware Corporation		10,190,861
Issuance of common stock upon the dissolution of Parilis		1,703,777
Sale of common stock, net of issuance costs		16,137,913
Reclassification of stock-based compensation liability		15,118,584
Accretion of redeemable common stock		(2,463,160)
Sale of common stock units upon consummation of initial public offering and concurrent private placement, net of issuance costs		33,784,205
Reclassifiation of redeemable common stock upon consummation of the initial public offering		17,889,833
Stock-based compensation expense		6,226,288
Net loss	(22,327,432)	(42,734,024)
Balance	$ 1,563,131	$ 1,563,131

Consolidated Statements of Cash Flows (unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
OPERATING ACTIVITIES
Net loss	$ (42,734,024)	$ (30,609,205)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,790,690	862,230
Non-cash interest expense	8,594	9,196
Stock-based compensation	8,618,150	9,206,563
Loss on disposal of fixed assets	13,647
Changes in operating assets and liabilities:
Accounts receivable	16,330	(72,910)
Prepaid expenses and other current assets	533,761	(896,824)
Other assets	49,260	(100,000)
Accounts payable	(5,708,893)	2,479,447
Accrued expenses	3,287,479	1,455,139
Income taxes payable	100,000	180,473
Deferred revenue	(1,484,682)	1,025,657
Other liabilities	397,330	(2,323)
Net cash used in operating activities	(35,112,358)	(16,462,557)
INVESTING ACTIVITIES
Purchase of property and equipment	(769,769)	(5,509,812)
Net cash used in investing activities	(769,769)	(5,509,812)
FINANCING ACTIVITIES
Repurchase of Series A redeemable preferred stock		(226,001)
Proceeds from the sale of common stock, net of offering costs	16,137,913	18,000,000
Proceeds from sale of common stock units in connection with initial public offering and private placement	37,074,996
Payment of offering costs and common stock issuance costs	(4,622,647)
Proceeds from subscriptions receivable	4,280,149
Proceeds from stockholders notes		10,880,252
Payments of capital leases obligations	(659,403)	(467,590)
Repayment of debt	(551,288)	(548,732)
Repayment of stockholder notes	(11,601,696)	(2,632,658)
Change in restricted cash	(1,857)	(1,649)
Proceeds from related party receivable	783,211
Deconsolidation of Sonnet Biotherapeutics, Inc.	(401,091)
Payment of employee tax witholdings related to the vesting of restricted stock	(71,760)
Net cash provided by financing activities	40,366,527	25,003,622
Net increase in cash	4,484,400	3,031,253
Cash at beginning of period	9,070,975	2,349,313
Cash at end of period	13,555,375	5,380,566
Supplemental disclosure of cash flow information
Cash paid for interest	1,500,675	1,036,292
Cash paid for income taxes	3,000	2,250
Supplemental schedule of noncash investing activities:
Purchases of property and equipment in accounts payable and accrued expenses	477,191	1,164,506
Supplemental schedule of noncash financing activities:
Accretion of redeemable preferred stock, common stock and noncontrolling interests	2,463,160	3,197,283
Deemed dividend upon repurchase of Series A redeemable preferred stock in excess of carrying value		1,215,000
Issuance of subscription receivable upon sale of common stock		1,300,000
Issuance of common and Series A preferred stock to redeemable preferred stockholders and noncontrolling interests upon reincorporation	11,894,638
Reclassification of equity classified stock-based compensation	15,118,584
Issuance of capital lease obligations in connection with purchase of property and equipment	78,500
Deferred offering costs and common stock issuance costs in accounts payable and accrued expenses	$ 18,145	$ 1,260,000

Organization and Description of Business

9 Months Ended

Jun. 30, 2016

Organization And Description Of Business [Abstract]

Organization and Description of Business

1. Organization and Description of Business

Oncobiologics, Inc. (“Oncobiologics” or the “Company”) was incorporated in New Jersey on January 5, 2010 and started operations in July 2011. Oncobiologics is a clinical-stage biopharmaceutical company focused on identifying, developing, manufacturing and commercializing complex biosimilar therapeutics in the disease areas of immunology and oncology. The Company has established fully integrated in-house development and manufacturing capabilities that addresses the numerous complex technical and regulatory challenges in developing and commercializing mAb biosimilars. Since inception, the Company has advanced two product candidates into clinical trials: a Phase 3-ready biosimilar to adalimumab (Humira®) and a Phase 3-ready biosimilar to bevacizumab (Avastin®). Additionally, the Company has six preclinical biosimilar product candidates under active development.

In October 2015, the Company reincorporated in Delaware through the merger with and into Oncobiologics, Inc., a newly formed Delaware corporation, with the Delaware corporation surviving the merger. As a result of the merger, each share of the Company’s previously issued and outstanding common stock converted into and became a share of common stock of the Delaware corporation on a 1-for-1 basis, each share of the Company’s previously issued and outstanding Series A redeemable preferred stock converted into 1,000 shares of common stock and approximately 1.4035 shares of Series A preferred stock of the Delaware corporation, and each share of the Company’s previously issued and outstanding Series B redeemable preferred stock converted into 1,000 shares of common stock and approximately 1.2867 shares of Series A preferred stock of the Delaware corporation. The holders of Series A and B also received an aggregate of 10,193 shares of Series A preferred stock of the Delaware corporation. Additionally, effective upon the reincorporation and in connection with the dissolution of the Company’s business development subsidiary, Parilis Biopharmaceuticals (“Parilis”), the Company issued 226,663 shares of common stock and 1,626 shares of Series A preferred stock to the holders of outstanding Parilis preferred member units in exchange for all such units.

In May 2016, the Company completed the initial public offering (“IPO”) of its securities by offering 5,833,334 units. Each unit consisted of one share of the Company’s common stock, one-half of a Series A warrant and one-half of a Series B warrant. Each whole Series A warrant entitles the holder to purchase one share of common stock at an initial exercise price of $6.60, subject to adjustment. Each whole Series B warrant entitles the holder to purchase one share of common stock at an initial exercise price of $8.50, subject to adjustment. The IPO price was $6.00 per unit. In addition, the Company also completed a concurrent private placement of an additional 833,332 shares of its common stock, 416,666 Series A warrants and 416,666 Series B warrants, for gross proceeds of approximately $5.0 million. On May 13, 2016, the units began trading on the NASDAQ Global Market. The units separated in accordance with their terms and ceased trading, and on June 13, 2016, the component securities (common stock, Series A warrants and Series B warrants) began trading on the NASDAQ Global Market. As a result of the IPO and the concurrent private placement, the Company received approximately $33.8 million in net proceeds, after deducting discounts and commissions of approximately $2.9 million and offering expenses of approximately $3.3 million payable by the Company.

On May 18, 2016, the Company filed an amended and restated certificate of incorporation (the “Restated Certificate”) with the Secretary of State of the State of Delaware in connection with the closing of its IPO. As set forth in the Restated Certificate, the Company’s authorized capital stock now consists of 200,000,000 shares of common stock, par value $0.01 per share, and 10,000,000 shares of preferred stock, par value $0.01 per share.

Liquidity

9 Months Ended

Jun. 30, 2016

Liquidity [Abstract]

Liquidity

2. Liquidity

The Company has incurred substantial losses and negative cash flows from operations since its inception and has an accumulated deficit of $136.8 million and $94.1 million as of June 30, 2016 and September 30, 2015, respectively. In addition, the Company has $4.6 million and $14.2 million of indebtedness that is due on demand, as of June 30, 2016 and September 30, 2015, respectively. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying unaudited interim consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The unaudited interim consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.

The Company has substantial indebtedness that includes $4.6 million in notes payable to stockholders that are payable on demand. There can be no assurance that note holders will not exercise their right to demand repayment.

The Company anticipates incurring additional losses until such time, if ever, that it can generate significant sales of its products currently in development. Although the Company closed the IPO of its securities and the concurrent private placement on May 18, 2016 raising aggregate net proceeds of approximately $33.8 million, excluding any proceeds it may receive from the exercise of the Series A warrants and Series B warrants, which proceeds are expected to fund the Company’s operations through December 2016, substantial additional financing will be needed by the Company to fund its operations and to commercially develop its product candidates. Management is currently evaluating different strategies to obtain the required funding for future operations. These strategies may include, but are not limited to: private placements of equity and/or debt, payments from potential strategic research and development, licensing and/or marketing arrangements with pharmaceutical companies, and public offerings of equity and/or debt securities. There can be no assurance that these future funding efforts will be successful.

Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

3. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”).

In the opinion of management, the accompanying unaudited interim consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the Company’s financial position as of June 30, 2016 and its results of operations for the three and nine months ended June 30, 2016 and 2015 and cash flows for the nine months ended June 30, 2016 and 2015. Operating results for the nine months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the full year ending September 30, 2016. The unaudited interim consolidated financial statements, presented herein, do not contain the required disclosures under GAAP for annual consolidated financial statements. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and related notes as of and for the year ended September 30, 2015 included in the final prospectus dated May 12, 2016 filed with the Securities and Exchange Commission (“SEC”).

Recapitalization

On April 26, 2016, the Company filed a certificate of amendment to amend its certificate of incorporation effecting a 1-for-3.45 reverse split of the Company’s common stock. All references in the unaudited interim consolidated financial statements to the number of shares and per-share amounts of common stock have been retroactively restated to reflect the reverse split.

Use of estimates

The preparation of the unaudited interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Due to the uncertainty of factors surrounding the estimates or judgments used in the preparation of the unaudited interim consolidated financial statements, actual results may materially vary from these estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the unaudited interim consolidated financial statements in the period they are determined to be necessary.

Income taxes

The Company recorded income tax expense (benefit) of $500 and $120,000 for the three months ended June 30, 2016 and 2015, respectively, and $103,000 and $(199,855) for the nine months ended June 30, 2016 and 2015, respectively, which is primarily attributable to the foreign withholding taxes in connection with the Company’s collaboration and licensing agreements and the sale of New Jersey net operating losses.

Net loss per share

Basic and diluted net loss per common share is determined by dividing net loss applicable to common stockholders by the weighted-average common shares outstanding during the period. For all periods presented, the outstanding shares of preferred stock have been excluded from the calculation because their effects would be anti-dilutive. Therefore, the weighted-average shares used to calculate both basic and diluted loss per share are the same.

The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding as of June 30, 2016 and 2015, as they would be antidilutive:

	June 30,
	2016		2015
Series A redeemable preferred stock		-		1,034,203
Series B redeemable preferred stock		-		1,159,418
Performance-based stock units		247,598		-
Restricted stock units		1,096,171		-
Unvested shares of restricted common stock		-		20,869
Convertible stockholder note		-		96,618
Common stock warrants		8,186,935		-

Amounts in the table above reflect the common stock equivalents of the noted instruments.

Recently Issued and Adopted Accounting Pronouncements

In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The amendments in this update will explicitly require a company’s management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The new standard will be effective in the first annual period ending after December 15, 2016. Early application is permitted. The Company is currently evaluating the potential impact of the adoption of this standard, but the Company believes its adoption will have no impact on its consolidated results of operations, financial position or cash flows.

In May 2014, the FASB issued ASU, No. 2014-09, Revenue from Contracts with Customers. This guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires an entity to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about:

Contracts with customers — including revenue and impairments recognized, disaggregation of revenue and information about contract balances and performance obligations (including the transaction price allocated to the remaining performance obligations).

Significant judgments and changes in judgments — determining the timing of satisfaction of performance obligations (over time or at a point in time), and determining the transaction price and amounts allocated to performance obligations.

Certain assets — assets recognized from the costs to obtain or fulfill a contract.

is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact that this guidance will have on its consolidated results of operations, financial position and cash flows.

In February 2016, the FASB issued ASU 2016-02, Leases, (Topic 842). This new ASU represents a wholesale change to lease accounting and introduces a lease model that brings most leases on the balance sheet. It also eliminates the required use of bright-line tests in current U.S. GAAP for determining lease classification. This ASU is effective for annual periods beginning after December 15, 2018 (i.e., calendar periods beginning on January 1, 2019), and interim periods thereafter. Earlier application is permitted for all entities. The Company is currently evaluating the impact of ASU 2016-02 on its consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which is intended to simplify the accounting and reporting for employee share-based payment transactions. The pronouncement is effective for interim and annual periods beginning after December 31, 2016 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

Fair Value Measurements

9 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. Fair Value Measurements

Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

■

Level 1 — Quoted prices in active markets for identical assets or liabilities.

■

Level 2 — Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

■

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis:

	September 30, 2015
	(Level 1)		(Level 2)		(Level 3)
Liabilities
Stock-based compensation liability	$	-	$	-	$	12,726,722

The table presented below is a summary of changes in the fair value of the Company’s Level 3 valuation for the stock-based compensation liability for the nine months ended June 30, 2016:

Balance at October 1, 2015	$	12,726,722
Change in fair value		2,391,862
Reclassification to stockholders' equity (deficit)		(15,118,584	)
Balance at June 30, 2016	$	-

As of June 30, 2016, the Company had no assets or liabilities that were measured at fair value.

The Company has issued stock-based performance units (“PSUs”), which generally have a ten year life from the date of grant and vest 50% after the third anniversary from issuance and the remaining 50% on the fourth anniversary. In addition, the PSUs are exercisable upon the earlier of (i) a change in control, (ii) consummation of an IPO, or (iii) a corporate valuation in excess of $400 million and at the discretion by the Company’s Board of Directors. Upon exercise, the PSU holder received a cash payment for the difference between the current per share value of the Company and the base price of the PSU. Given the cash settlement, the PSUs were liability classified and re-measured at each reporting date with changes in fair value recorded within the Company’s consolidated statements of operations. In December 2015, the PSUs were modified to provide for settlement in common stock or cash, at the Company’s discretion. As a result of this modification, the carrying value of the PSUs was reclassified to stockholders’ equity (deficit).

The PSUs contain a market condition as the exercisability of the awards are based on the Company achieving a market value of $400 million during the relevant performance period. The fair value of the market condition is valued using a Monte Carlo simulation model. The significant assumptions used in preparing the Monte Carlo simulation model include (i) volatility of the Company’s common stock, (ii) risk free interest rate, (iii) base price of the PSUs, (iv) fair value of the Company’s common stock and enterprise value of the Company, and (v) derived service period.

The fair value of the PSUs of $22.22 per PSU at September 30, 2015 was derived using the following assumptions:

		September 30,
		2015
Risk-free interest rate		1.4%
Derived service period		5 years
Expected volatility		60%
Annual dividend yield		0%
Fair value of common stock		$25.79 per share

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Property and Equipment

9 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

5.	Property and Equipment

Property and equipment, net, consists of:

	June 30, 2016			September 30, 2015
Laboratory equipment	$	10,881,344		$	10,936,364
Leasehold improvements		9,927,614			9,889,521
Computer software and hardware		421,206			402,075
Construction in progress		1,182,284			175,425
		22,412,448			21,403,385
Less: accumulated depreciation and amortization		(5,358,350	)		(3,643,447	)
	$	17,054,098		$	17,759,938

Depreciation and amortization expense was $598,615 and $421,162 for the three months ended June 30, 2016 and 2015, respectively, and $1,790,690 and $862,230 for the nine months ended June 30, 2016 and 2015, respectively.

At June 30, 2016 and September 30, 2015, $3,608,801 and $3,530,301 represents laboratory equipment under capital leases. The term of the leases are between 11 and 36 months and qualify as capital leases. The leases bear interest between 8.2% and 21.4%. At June 30, 2016 and September 30, 2015, $805,974 and $407,210, respectively, of accumulated depreciation related to this leased equipment has been recognized.

Accrued Expenses

9 Months Ended

Jun. 30, 2016

Accrued Expenses [Abstract]

Accrued Expenses

6.	Accrued Expenses

Accrued expenses consists of:

	June 30, 2016		September 30, 2015
Compensation	$	3,819,984	$	2,321,508
Research and development		3,871,303		951,759
Interest payable		206,417		806,475
Deferred offering costs		-		657,892
Professional fees		254,997		594,572
Director fees		-		414,421
Other accrued expenses		113,863		178,021
	$	8,266,564	$	5,924,648

Redeemable Preferred Stock, Common Stock, Noncontrolling Interests and Stockholders' Equity (Deficit)

9 Months Ended

Jun. 30, 2016

Equity [Abstract]

Redeemable Preferred Stock, Common Stock, Noncontrolling Interests and Stockholders' Equity (Deficit)

7.	Redeemable Preferred Stock, Common Stock, Noncontrolling Interests and Stockholders’ Equity (Deficit)

Common stock

From October 2015 through January 2016, the Company sold 573,788 shares of its common stock at $29.05 per share raising $16,137,913 in net proceeds. In May 2016, upon consummation of its IPO and private placement, the Company sold 5,833,334 units at $6.00 per unit and completed a concurrent private placement of an additional 833,332 shares of its common stock, 416,666 Series A warrants and 416,666 Series B warrants, at the same price (See Note 1), raising $33,802,350 in aggregate net proceeds. Each unit consisted of one share of the Company’s common stock and warrants described below.

Concurrent with the closing of the IPO, 1,739,130 shares of redeemable common stock were reclassified to common stock upon the lapse of a contractual redemption right.

Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Subject to preferences that may apply to any outstanding preferred stock, holders of common stock are entitled to receive ratably any dividends that the Company’s board of directors may declare out of funds legally available for that purpose on a non-cumulative basis. No dividends had been declared through June 30, 2016.

Series A Warrants and Series B Warrants

Each unit offered in connection with the Company’s IPO consisted of one share of the Company’s common stock, one-half of a Series A warrant to purchase one share of the Company’s common stock and one-half of a Series B warrant to purchase one share of the Company’s common stock. The Company also issued Series A warrants and Series B warrants in the concurrent private placement (see Note 1). Each whole Series A warrant and Series B warrant has an exercise price of $6.60 per share and $8.50 per share, respectively, and are exercisable until February 18, 2017 and May 18, 2018, respectively. Neither the Series A warrant holders nor Series B warrant holders has the rights or privileges of holders of common stock or any voting rights until they exercise their warrants and receive common stock.

The exercise price and number of shares issuable upon exercise of the Series A and Series B warrants may be adjusted upon the occurrence of certain events, including but not limited to any stock split, stock dividend, extraordinary dividend, recapitalization, reorganization, merger or consolidation.

Immediately following the consummation of the IPO and concurrent private placement, there were 3,333,333 Series A warrants and 3,333,333 Series B warrants outstanding.

Common Stock Warrants

In May 2016, upon the closing of the IPO, the Company issued warrants to acquire an aggregate of 1,520,269 shares of its common stock to certain of the investors party to that certain investors’ rights agreement dated March 10, 2014, as amended, pursuant to the terms of an amendment to such agreement dated April 26, 2016. The warrants issued to these investors are not exercisable until 180 days after May 12, 2016, and have an initial exercise price of $0.01 per share, which may increase to $1.00 per share under certain circumstances, and expire November 18, 2019. The estimated fair value of the warrants issued to these investors was $7,373,820 and is reflected as a deemed dividend in the statements of operations for purposes of computing basic and diluted loss per share.

Deconsolidation of noncontrolling interests

Through September 30, 2015, the Company consolidated the operations of Sonnet Biotherapeutics, Inc. (“Sonnet”), which was spun-off to the Company’s stockholders in April 2015, because the Company was the primary funding source to Sonnet through September 2015. Effective October 1, 2015, additional capital was contributed to Sonnet by third-party investors triggering a reconsideration event, which resulted in the Company no longer being considered the primary beneficiary and as a result, the Company has deconsolidated Sonnet. Sonnet issued the Company an $826,561 promissory note which reflects the funding the Company provided Sonnet through September 30, 2015. The note bears interest at 3.0% and matures September 30, 2016. There were no gains or losses recognized upon deconsolidation since no equity interest was owned by the Company. As of June 30, 2016, the balance of the note is $33,396 plus accrued interest of $9,954.

Series A preferred stock

In connection with the closing of the Company’s IPO, all outstanding shares of Series A preferred stock converted into 1,969,818 shares of common stock.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(d))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

+ Details

Stock-Based Compensation

9 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

8.	Stock-Based Compensation

2011 Equity Incentive Plan

The Company’s 2011 Equity Compensation Plan (the “2011 Plan”) provided for the Company to sell or issue restricted common stock, restricted stock units (“RSUs”), performance-based awards, cash-based awards or to grant stock options for the purchase of common stock to officers, employees, consultants and directors of the Company. The 2011 Plan was administered by the board of directors or, at the discretion of the board of directors, by a committee of the board. The number of shares of common stock reserved for issuance under the 2011 Plan is 1,159,420. As of June 30, 2016, PSUs representing 247,598 shares of the Company’s common stock were outstanding under the 2011 Plan. In light of the December 2015 adoption of the 2015 Equity Incentive Plan, no future awards under the 2011 Plan will be granted.

2015 Equity Incentive Plan

In December 2015, the Company adopted the 2015 Equity Incentive Plan (the “2015 Plan”). The 2015 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards and other forms of equity compensation to Company employees, directors and consultants. The maximum number of shares of common stock that may be issued under the 2015 Plan is 1,246,377 shares. As of June 30, 2016, RSUs representing 1,096,171 shares of the Company’s common stock were outstanding under the 2015 Plan and 150,206 shares remained available for grant under the 2015 Plan.

The Company recorded stock-based compensation expense in the following expense categories of its statements of operations for the three and nine months ended June 30, 2016 and 2015:

	Three Months ended June 30,				Nine Months ended June 30,
	2016		2015		2016		2015

Research and development	$	3,771,214	$	1,059,684	$	1,846,408	$	4,794,677
General and administrative		6,803,391		971,099		6,771,742		4,411,886
	$	10,574,605	$	2,030,783	$	8,618,150	$	9,206,563

	Three Months ended June 30,				Nine Months ended June 30,
	2016		2015		2016		2015

Equity-classified compensation	$	10,574,605	$	2,231	$	6,226,288	$	6,694
Liability-classified compensation		-		2,028,552		2,391,862		9,199,869
	$	10,574,605	$	2,030,783	$	8,618,150	$	9,206,563

Performance-based stock units

The Company has issued PSUs, which generally have a 10-year life from the date of grant and vest 50% after the third anniversary from issuance and the remaining 50% on the fourth anniversary. The PSUs are exercisable upon the earlier of (i) a change in control, (ii) consummation of an IPO, or (iii) a corporate valuation in excess of $400 million and at the discretion by the Company’s board of directors. Upon exercise, the PSU holder receives common stock or cash, at the Company’s discretion. See Note 4 for discussion of fair value of the PSUs.

The following table summarizes the PSU activity for the nine months ended June 30, 2016:

	Number			Base
	of			Price
	PSUs			Per PSU
Balance at October 1, 2015		687,013		$	3.45
Forfeitures		(4,635	)		4.68
Exchanged for restricted stock units		(434,780	)		3.45
Balance at June 30, 2016		247,598		$	6.33

In December 2015, the Company completed a tender-offer to holders of outstanding PSUs to amend the terms of such outstanding awards to increase the base price to an amount equal to the fair market value of a share of the Company’s common stock on the date of grant of the PSU, remove the right to be paid dividend equivalents and provide for settlement in shares of the Company’s common stock or cash, at the Company’s discretion. Upon amending the settlement terms of the PSUs, the Company reclassified the stock-based compensation liability to additional paid-in capital.

Concurrent with the tender-offer, several PSU holders cancelled an aggregate of 434,780 PSUs in exchange for 391,303 RSUs. The Company accounted for the exchange as a modification, and, as a result, recognized $98,172 of additional stock-based compensation during the nine months ended June 30, 2016 based on the fair value of the RSUs in excess of the fair value of the PSUs exchanged.

The PSU represents an award that is exercisable based upon the achievement of either a performance condition or a market condition. As a result, the Company measures and records compensation cost taking into consideration both conditions: (1) an award that becomes exercisable upon the Company achieving a market value of $400 million and at the discretion by the Company’s Board of Directors and (2) an award that is exercisable upon the earlier of a change in control or consummation of an IPO. Through December 2015, the fair value of both the performance and market conditions were remeasured prior to the PSUs being reclassified into equity. However, given the discretionary action required to be taken by the Company’s Board of Directors, the fair value of the market condition continued to be remeasured each reporting period as compensation cost was recognized. Because a change of control or an IPO is not deemed probable until such event occurs, no compensation cost related to the performance condition was recognized prior to the consummation of the Company’s IPO. Upon the consummation of the IPO in May 2016, the Company recorded compensation expense for the three and nine months ended June 30, 2016 based upon the fair value of the performance condition of the PSUs which was established in December 2015 when the PSUs became equity classified.

The fair value of the PSUs of $25.74 per PSU at December 31, 2015 was derived using the following assumptions:

		December 31,
		2015
Risk-free interest rate		1.0%
Derived service period		2.3 years
Expected volatility		57.6%
Annual dividend yield		0%
Fair value of common stock		$29.05 per share

As of June 30, 2016, there was $901,451 of unamortized expense that will be recognized in future periods.

Restricted stock units

The following table summarizes the activity related to RSUs granted during the nine months ended June 30, 2016:

				Weighted
	Number			Average
	of			Grant Date
	RSUs			Fair Value
Balance at October 1, 2015		-		$	-
Granted		705,311			29.05
Forfeitures		(443	)		17.93
Issued in connection with PSU exchange		391,303			29.05
Balance at June 30, 2016		1,096,171		$	28.58

As of June 30, 2016, there were 387,868 RSUs that will vest upon the expiration of the 180-day lock up period following the Company’s IPO or a change in control. The remaining 708,303 RSUs will vest upon the expiration of the 180-day lock up period following the Company’s IPO or change in control and over the following time-based vesting periods:

525,999 RSUs with 50% vesting on each of the first and second anniversaries of the recipient’s grant date

21,738 RSUs with one-third vesting on each of the first, second, and third anniversaries of the recipient’s hire date

160,566 RSUs with 50% vesting on each of the third and fourth anniversaries of the recipient’s hire date

The expiration of the lock-up period following an IPO or a change in control are performance conditions that are outside the Company’s control. Therefore, the Company did not recognize any stock-based compensation until the consummation of the IPO in May 2016. As of June 30, 2016, there was $13,447,517 of unamortized expense that will be recognized in future periods.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Recapitalization

Recapitalization

Use of estimates

Use of estimates

Income taxes

Income taxes

Net loss per share

Net loss per share

The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding as of June 30, 2016 and 2015, as they would be antidilutive:

	June 30,
	2016		2015
Series A redeemable preferred stock		-		1,034,203
Series B redeemable preferred stock		-		1,159,418
Performance-based stock units		247,598		-
Restricted stock units		1,096,171		-
Unvested shares of restricted common stock		-		20,869
Convertible stockholder note		-		96,618
Common stock warrants		8,186,935		-

Amounts in the table above reflect the common stock equivalents of the noted instruments.

Recently Issued and Adopted Accounting Pronouncements

Recently Issued and Adopted Accounting Pronouncements

Certain assets — assets recognized from the costs to obtain or fulfill a contract.

In July 2015, the FASB delayed the effective date of this guidance. As a result, this guidance will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact that this guidance will have on its consolidated results of operations, financial position and cash flows.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

+ References + Details

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Schedule of dilutive securities excluded from the computation weighted-average shares

	June 30,
	2016		2015
Series A redeemable preferred stock		-		1,034,203
Series B redeemable preferred stock		-		1,159,418
Performance-based stock units		247,598		-
Restricted stock units		1,096,171		-
Unvested shares of restricted common stock		-		20,869
Convertible stockholder note		-		96,618
Common stock warrants		8,186,935		-

Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on a recurring basis

	September 30, 2015
	(Level 1)		(Level 2)		(Level 3)
Liabilities
Stock-based compensation liability	$	-	$	-	$	12,726,722

Schedule of changes in the fair value of the Company's Level 3 valuation for the stock-based compensation

Balance at October 1, 2015	$	12,726,722
Change in fair value		2,391,862
Reclassification to stockholders' equity (deficit)		(15,118,584	)
Balance at June 30, 2016	$	-

Schedule of fair value of the performance-based stock units (PSUs)

		September 30,
		2015
Risk-free interest rate		1.4%
Derived service period		5 years
Expected volatility		60%
Annual dividend yield		0%
Fair value of common stock		$25.79 per share

Property and Equipment (Tables)

9 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	June 30, 2016			September 30, 2015
Laboratory equipment	$	10,881,344		$	10,936,364
Leasehold improvements		9,927,614			9,889,521
Computer software and hardware		421,206			402,075
Construction in progress		1,182,284			175,425
		22,412,448			21,403,385
Less: accumulated depreciation and amortization		(5,358,350	)		(3,643,447	)
	$	17,054,098		$	17,759,938

Stock-Based Compensation (Tables)

9 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of stock-based compensation expense

	Three Months ended June 30,				Nine Months ended June 30,
	2016		2015		2016		2015

Research and development	$	3,771,214	$	1,059,684	$	1,846,408	$	4,794,677
General and administrative		6,803,391		971,099		6,771,742		4,411,886
	$	10,574,605	$	2,030,783	$	8,618,150	$	9,206,563

	Three Months ended June 30,				Nine Months ended June 30,
	2016		2015		2016		2015

Equity-classified compensation	$	10,574,605	$	2,231	$	6,226,288	$	6,694
Liability-classified compensation		-		2,028,552		2,391,862		9,199,869
	$	10,574,605	$	2,030,783	$	8,618,150	$	9,206,563

Schedule of performance-based stock units activity

	Number			Base
	of			Price
	PSUs			Per PSU
Balance at October 1, 2015		687,013		$	3.45
Forfeitures		(4,635	)		4.68
Exchanged for restricted stock units		(434,780	)		3.45
Balance at June 30, 2016		247,598		$	6.33

Schedule of fair value of the PSU

		December 31,
		2015
Risk-free interest rate		1.0%
Derived service period		2.3 years
Expected volatility		57.6%
Annual dividend yield		0%
Fair value of common stock		$29.05 per share

Schedule of restricted stock units activity

				Weighted
	Number			Average
	of			Grant Date
	RSUs			Fair Value
Balance at October 1, 2015		-		$	-
Granted		705,311			29.05
Forfeitures		(443	)		17.93
Issued in connection with PSU exchange		391,303			29.05
Balance at June 30, 2016		1,096,171		$	28.58

Organization and Description of Business (Detail Textuals) - USD ($)		1 Months Ended			9 Months Ended
	May 13, 2016	May 31, 2016	May 18, 2016	Oct. 31, 2015	Jun. 30, 2016	Jan. 31, 2016	Sep. 30, 2015
Organization And Description Of Business [Line Items]
Basis of conversion				1-for-1 basis
Exercise price per share			$ 0.01
Number of units issued		5,833,334
Gross proceeds of private placement and warrants		$ 5,000,000
Proceeds from sale of common stock units in connection with initial public offering and private placement					$ 37,074,996
Preferred stock, shares authorized					10,000,000		0
Common stock, shares authorized					0		100,000,000
Common Stock
Organization And Description Of Business [Line Items]
Common stock, shares authorized					200,000,000		0
Series A warrant
Organization And Description Of Business [Line Items]
Exercise price per share		$ 6.60			$ 6.60	$ 6.00
Number of units issued		416,666
Series B warrant
Organization And Description Of Business [Line Items]
Exercise price per share		$ 8.50			$ 8.50	$ 6.00
Number of units issued		416,666
IPO
Organization And Description Of Business [Line Items]
Description of IPO unit		Each unit consisted of one share of the Company's common stock, one-half of a Series A warrant and one-half of a Series B warrant.
Initial public offering price per share		$ 6.00
Number of units issued		833,332
Unit price per share		$ 6.00
Proceeds from sale of common stock units in connection with initial public offering and private placement	$ 33,800,000		$ 33,800,000
Underwriting discounts and commissions	2,900,000
Estimated offering expenses	$ 3,300,000
Holders of outstanding Parilis preferred stock members
Organization And Description Of Business [Line Items]
Conversion of stock number of common stock issued				226,663
Series A redeemable preferred stock
Organization And Description Of Business [Line Items]
Conversion of stock number of common stock issued				1,000
Conversion of stock shares, preferred stock shares issued				$ 1.4035
Series A redeemable preferred stock \| Holders of Series A and B preferred stock
Organization And Description Of Business [Line Items]
Conversion of stock, number of preferred stock issued				10,193
Series A redeemable preferred stock \| Holders of outstanding Parilis preferred stock members
Organization And Description Of Business [Line Items]
Conversion of stock, number of preferred stock issued				1,626
Series B redeemable preferred stock
Organization And Description Of Business [Line Items]
Conversion of stock number of common stock issued				1,000
Conversion of stock shares, preferred stock shares issued				$ 1.2867

Liquidity (Detail Textuals) - USD ($)		1 Months Ended	9 Months Ended
Liquidity (Detail Textuals) - USD ($)	May 13, 2016	May 18, 2016	Jun. 30, 2016	Sep. 30, 2015
Liquidity [Line Items]
Net proceeds initial public offering			$ 37,074,996
Accumulated deficit			(136,798,310)	$ (94,064,286)
Aggregate indebtedness			4,600,000	$ 14,200,000
Notes payable to stockholders			$ 4,600,000
IPO
Liquidity [Line Items]
Net proceeds initial public offering	$ 33,800,000	$ 33,800,000

Basis of Presentation and Summary of Significant Accounting Policies (Details) - shares	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Series A redeemable preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount		1,034,203
Series B redeemable preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount		1,159,418
Performance-based stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	247,598
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	1,096,171
Unvested shares of restricted common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount		20,869
Convertible stockholder note
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount		96,618
Common stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	8,186,935

Basis of Presentation and Summary of Significant Accounting Policies (Detail Textuals) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Accounting Policies [Abstract]
Reverse split			1-for-3.45
Income tax expense (benefit) attributable to foreign withholding taxes in connection with collaboration and licensing agreements	$ 500	$ 120,000	$ 103,000	$ (199,855)

Fair Value Measurements (Details) - Fair value measurements recurring basis	Sep. 30, 2015 USD ($)
Level 1
Liabilities
Stock-based compensation liability
Level 2
Liabilities
Stock-based compensation liability
Level 3
Liabilities
Stock-based compensation liability	$ 12,726,722

Fair Value Measurements (Detail 1)	9 Months Ended
Fair Value Measurements (Detail 1)	Jun. 30, 2016 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at October 1, 2015	$ 12,726,722
Change in fair value	2,391,862
Reclassification to stockholders' equity (deficit)	(15,118,584)
Balance at June 30, 2016

Fair Value Measurements (Detail 2) - Stock-based performance units ("PSUs"), - $ / shares	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk-free interest rate	1.00%	1.40%
Derived service period	2 years 3 months 18 days	5 years
Expected volatility	57.60%	60.00%
Annual dividend yield	0.00%	0.00%
Fair value of common stock	$ 29.05	$ 25.79

Fair Value Measurements (Detail Textuals) - Stock-based performance units ("PSUs"), - $ / shares	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2015	Jun. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of PSUs		10 years
Condition for early exercise of stock based performance units		excess of $400 million
Method used for cost of award		Monte Carlo simulation model
Share price	$ 25.74		$ 22.22
After third anniversary from issuance of stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		50.00%
Fourth anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		50.00%

Property and Equipment (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 22,412,448	$ 21,403,385
Less: accumulated depreciation and amortization	(5,358,350)	(3,643,447)
Property and equipment, net	17,054,098	17,759,938
Laboratory equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,881,344	10,936,364
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,927,614	9,889,521
Computer software and hardware
Property, Plant and Equipment [Line Items]
Property and equipment, gross	421,206	402,075
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,182,284	$ 175,425

Property and Equipment (Detail Textuals) - USD ($)	3 Months Ended		9 Months Ended
Property and Equipment (Detail Textuals) - USD ($)	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 598,615	$ 421,162	$ 1,790,690	$ 862,230
Accumulated depreciation related to leased equipment	805,974		805,974		$ 407,210
Laboratory Equipment
Property, Plant and Equipment [Line Items]
Laboratory equipment under capital leases	$ 3,608,801		$ 3,608,801		$ 3,530,301
Laboratory Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Term of capital leases			11 months
Capital leases interest rate			8.20%
Laboratory Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Term of capital leases			36 months
Capital leases interest rate			21.40%

Accrued Expenses (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Accrued Liabilities, Current [Abstract]
Compensation	$ 3,819,984	$ 2,321,508
Research and development	3,871,303	951,759
Interest payable	206,417	806,475
Deferred offering costs		657,892
Professional fees	254,997	594,572
Director fees		414,421
Other accrued expenses	113,863	178,021
Accrued expenses	$ 8,266,564	$ 5,924,648

Redeemable Preferred Stock, Common Stock, Noncontrolling Interests and Stockholders' Equity (Deficit) (Detail Textuals) - USD ($)	1 Months Ended		4 Months Ended	9 Months Ended
	May 31, 2016	Jan. 31, 2016	Jan. 31, 2016	Jun. 30, 2016	Sep. 30, 2015
Stockholders Equity [Line Items]
Stock issued during period, value				$ 16,137,913
Redeemable common stock, shares issued					1,739,130
IPO and private placement
Stockholders Equity [Line Items]
Shares issued during period	5,833,334
Shares issued, price per share	$ 6.00
Stock issued during period, value	$ 33,802,350
Sonnet
Stockholders Equity [Line Items]
Promissory note amount				$ 826,561
Interest rate				3.00%
Carrying amount of promissory note				$ 33,396
Accrued interest				$ 9,954
Series A preferred stock
Stockholders Equity [Line Items]
Series A converted in to common stock				1,969,818
Common stock
Stockholders Equity [Line Items]
Shares issued during period		573,788		573,388
Shares issued, price per share		$ 29.05	$ 29.05
Stock issued during period, value		$ 16,137,913		$ 5,734
Conversion of Series A preferred stock in common stock				1,969,818
Common stock \| IPO and private placement
Stockholders Equity [Line Items]
Shares issued during period			833,332

Redeemable Preferred Stock, Common Stock, Noncontrolling Interests and Stockholders' Equity (Deficit) (Detail Textuals 1) - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended
	May 31, 2016	Jun. 30, 2016	Jun. 30, 2016	May 18, 2016	Jan. 31, 2016
Stockholders Equity [Line Items]
Exercise price per share				$ 0.01
Number of common stock called by warrants	1,520,269
Other common stock warrants decripation	In May 2016, upon the closing of the IPO, the Company issued three-year warrants to acquire an aggregate of 1,520,269 shares of its common stock to certain of the investors party to that certain investors' rights agreement dated March 10, 2014, as amended, pursuant to the terms of an amendment to such agreement dated April 26, 2016. The warrants issued to these investors are not exercisable until 180 days after May 12, 2016, and have an initial exercise price of $0.01 per share, which may increase to $1.00 per share under certain circumstances, and expire November 18, 2019.
Deemed dividend upon issuance of warrants to common stockholders		$ (7,373,820)	$ (7,373,820)
Series A warrant
Stockholders Equity [Line Items]
Exercise price per share	$ 6.60	$ 6.60	$ 6.60		$ 6.00
Outstanding warrants		3,333,333	3,333,333		416,666
Series B warrant
Stockholders Equity [Line Items]
Exercise price per share	$ 8.50	$ 8.50	$ 8.50		$ 6.00
Outstanding warrants		3,333,333	3,333,333		416,666

Stock Based Compensation (Details) - 2015 Equity Incentive Plan - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 10,574,605	$ 2,030,783	$ 8,618,150	$ 9,206,563
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	3,771,214	1,059,684	1,846,408	4,794,677
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 6,803,391	$ 971,099	$ 6,771,742	$ 4,411,886

Stock Based Compensation (Detail 1) - 2015 Equity Incentive Plan - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 10,574,605	$ 2,030,783	$ 8,618,150	$ 9,206,563
Equity-classified compensation
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	10,574,605	2,231	6,226,288	6,694
Liability-classified compensation
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 2,028,552	$ 2,391,862	$ 9,199,869

Stock Based Compensation (Detail 2) - Performance-based stock units	9 Months Ended
	Jun. 30, 2016 $ / shares shares
Number of PSUs
Balance at October 1, 2015 \| shares	687,013
Forfeitures \| shares	(4,635)
Exchanged for restricted stock units \| shares	(434,780)
Balance at June 30, 2016 \| shares	247,598
Base Price Per PSU
Balance at October 1, 2015 \| $ / shares	$ 3.45
Forfeitures \| $ / shares	4.68
Exchanged for restricted stock units \| $ / shares	3.45
Balance at June 30, 2016 \| $ / shares	$ 6.33

Stock Based Compensation (Detail 3) - Performance-based stock units - $ / shares	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk-free interest rate	1.00%	1.40%
Derived service period	2 years 3 months 18 days	5 years
Expected volatility	57.60%	60.00%
Annual dividend yield	0.00%	0.00%
Fair value of common stock	$ 29.05	$ 25.79

Stock Based Compensation (Detail 4) - Restricted stock units	9 Months Ended
	Jun. 30, 2016 $ / shares shares
Number of RSUs
Balance at October 1, 2015 \| shares
Granted \| shares	705,311
Forfeitures \| shares	(443)
Issued in connection with PSU exchange \| shares	391,303
Balance at June 30, 2016 \| shares	1,096,171
Weighted Average Grant Date Fair Value
Balance at October 1, 2015 \| $ / shares
Granted \| $ / shares	29.05
Forfeitures \| $ / shares	17.93
Issued in connection with PSU exchange \| $ / shares	29.05
Balance at June 30, 2016 \| $ / shares	$ 28.58

Stock Based Compensation (Detail Textuals) - shares	Jun. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares, outstanding	0	9,436,294
2011 Equity Incentive Plan \| Officers, Employees, Consultants and Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock reserved for issuance	1,159,420
2011 Equity Incentive Plan \| Performance-based stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares, outstanding	247,598

Stock Based Compensation (Detail Textuals 1) - shares	Jun. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares, outstanding	0	9,436,294
2015 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares can be issued	1,246,377
2015 Equity Incentive Plan \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares, outstanding	1,096,171
Number of shares available for grant	150,206

Stock Based Compensation (Detail Textuals 2) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
Stock Based Compensation (Detail Textuals 2) - USD ($)	Dec. 31, 2015	Jun. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional stock-based compensation as result of modification		$ 98,172
Performance-based stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of PSUs		10 years
Condition for early exercise of stock based performance units		excess of $400 million
Method used for cost of award		Monte Carlo simulation model
Number of PSU exchanged for RSU		434,780
Share price	$ 25.74		$ 22.22
Unamortized expense		$ 901,451
Performance-based stock units \| After third anniversary from issuance of stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		50.00%
Performance-based stock units \| Fourth anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		50.00%
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSU issued in connection with PSU		391,303
Unamortized expense		$ 13,447,517
Restricted stock units \| After third anniversary from issuance of stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		50.00%

Stock Based Compensation (Detail Textuals 3) - Restricted stock units	9 Months Ended
	Jun. 30, 2016 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized expense \| $	$ 13,447,517
IPO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested in period	387,868
Remaining number of shares vested in period	708,303
Vesting on each of first and second anniversaries of recipient's grant date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested in period	525,999
Vesting percentage	50.00%
One-third vesting on each of first, second, and third anniversaries of recipient's hire date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested in period	21,738
Description of vesting percentage	one-third vesting
Vesting on each of third and fourth anniversaries of recipient's hire date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested in period	160,566
Vesting percentage	50.00%