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Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Mar. 31, 2020	May 13, 2020
Document And Entity Information
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Entity Registrant Name	Outlook Therapeutics, Inc.
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		91,377,648
Entity Central Index Key	0001649989
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets - USD ($)	Mar. 31, 2020	Sep. 30, 2019
Current assets:
Cash	$ 4,652,923	$ 8,015,528
Prepaid expenses and other current assets	4,833,089	4,986,033
Assets held for sale		500,000
Total current assets	9,486,012	13,501,561
Property and equipment, net	523,409	3,175,960
Operating lease right-of-use assets, net	244,600
Finance lease right-of-use assets, net	2,375,000
Other assets	540,834	457,476
Total assets	13,169,855	17,134,997
Current liabilities:
Convertible senior secured notes	7,185,993	6,699,000
Current portion of long-term debt	49,364	1,026,168
Current portion of finance lease liabilities	52,851	192,290
Current portion of operating lease liabilities	175,853
Stockholder notes	3,612,500	3,612,500
Accounts payable	3,306,553	2,277,817
Accrued expenses	7,463,091	4,622,988
Income taxes payable	1,859,434	1,859,434
Total current liabilities	23,705,639	20,290,197
Long-term debt	25,709	50,285
Redemption feature	6,467,469
Finance lease liabilities	3,346,381	3,365,790
Operating lease liabilities	95,747
Warrant liability	53,592	255,734
Other liabilities		3,942,948
Total liabilities	33,694,537	27,904,954
Convertible preferred stock:
Total convertible preferred stock		5,359,404
Stockholders’ equity (deficit):
Common stock, par value $0.01 per share; 200,000,000 shares authorized; 89,751,192 shares issued and outstanding at March 31, 2020 and 28,609,995 shares issued and outstanding at September 30, 2019	897,512	286,100
Additional paid-in capital	255,361,229	238,064,947
Accumulated deficit	(276,783,423)	(254,480,408)
Total stockholders' equity (deficit)	(20,524,682)	(16,129,361)
Total liabilities, convertible preferred stock and stockholders' equity (deficit)	13,169,855	17,134,997
Series A convertible preferred stock
Convertible preferred stock:
Total convertible preferred stock
Convertible Preferred Stock Series A-1
Convertible preferred stock:
Total convertible preferred stock		5,359,404
Series B convertible preferred stock
Stockholders’ equity (deficit):
Preferred stock, value

Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2020	Sep. 30, 2019
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	7,300,000	7,300,000
Preferred stock, shares issued	0	0
Preferred stock shares outstanding	0	0
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	89,751,192	28,609,995
Common stock, shares outstanding	89,751,192	28,609,995
Series A convertible preferred stock
Convertible stock, par value (in dollars per share)	$ 0.01	$ 0.01
Convertible preferred stock, shares authorized	1,000,000	1,000,000
Convertible preferred stock, shares issued	0	0
Convertible preferred stock outstanding	0	0
Convertible Preferred Stock Series A-1
Convertible stock, par value (in dollars per share)	$ 0.01	$ 0.01
Convertible preferred stock, shares authorized	200,000	200,000
Convertible preferred stock, shares issued	0	66,451
Convertible preferred stock outstanding	0	66,451
Series B convertible preferred stock
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,500,000	1,500,000
Preferred stock, shares issued	0	0

Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
Consolidated Statements of Operations - USD ($)	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Consolidated Statements of Operations
Collaboration revenues		$ 641,140		$ 1,708,738
Operating expenses:
Research and development	$ 4,383,214	5,935,884	$ 10,230,516	12,007,406
General and administrative	1,957,175	1,849,158	4,293,899	4,753,146
Impairment of property and equipment	423,328	561,735	423,328	2,911,138
Total operating expenses	6,763,717	8,346,777	14,947,743	19,671,690
Loss from operations	(6,763,717)	(7,705,637)	(14,947,743)	(17,962,952)
Interest expense, net	696,151	1,053,877	1,293,816	2,174,726
Loss on extinguishment of debt		183,554	8,060,580	183,554
Change in fair value of redemption feature	(1,759,037)		(1,796,982)
Change in fair value of warrant liability	(764)	1,301,728	(202,142)	(334,592)
Net loss	(5,700,067)	(10,244,796)	(22,303,015)	(19,986,640)
Beneficial conversion feature upon issuance of Series A-1 convertible preferred stock		(61,365)		(61,365)
Series A-1 convertible preferred stock dividends and related settlement		(154,271)	(166,133)	(304,779)
Deemed dividend upon modification of warrants	(1,431,406)	(829,530)	(3,140,009)	(829,530)
Deemed dividend upon amendment of the terms of the Series A-1 convertible preferred stock	(10,328,118)		(10,328,118)
Net loss attributable to common stockholders	$ (17,459,591)	$ (11,289,962)	$ (35,937,275)	$ (21,182,314)
Per share information:
Net loss per share of common stock, basic and diluted (in dollars per share)	$ (0.36)	$ (0.98)	$ (0.93)	$ (1.98)
Weighted average shares outstanding, basic and diluted (in shares)	47,895,771	11,529,033	38,849,364	10,677,020

Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($)	Convertible Preferred Stock Series A-1 Preferred Stock	Convertible Preferred Stock Series A-1	MTTR, LLC (“MTTR”) Common stock repurchase note	MTTR, LLC (“MTTR”) Additional Paid-in Capital	Common stock repurchase note	Additional Paid-in Capital	Accumulated Deficit	Total
Balance, beginning at Sep. 30, 2018	$ 4,734,416				$ 90,275	$ 190,672,166	$ (216,307,363)	$ (25,544,922)
Balance, beginning (in shares) at Sep. 30, 2018		60,203			9,027,491
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Sale of common stock (in shares)								2,680,390
Proceeds from exercise of common stock warrants					$ 9	(9)
Proceeds from exercise of common stock warrants (in shares)					909
Private placement sale of common stock and common stock warrants, net of costs					$ 26,804	19,781,513		$ 19,808,317
Private placement sale of common stock and common stock warrants, net of costs (in shares)					2,680,390
Issuance of vested restricted stock units					$ 4	(4)
Issuance of vested restricted stock units (in shares)					446			446
Issuance of common stock in connection with conversion of senior secured notes					$ 504	401,464		$ 401,968
Issuance of common stock in connection with conversion of senior secured notes (in shares)					50,394
Series A-1 convertible preferred stock dividends and related settlement	304,779					(304,779)		(304,779)
Series A-1 convertible preferred stock dividends and related settlement (in shares)		3,047
Stock-based compensation expense						1,140,031		1,140,031
Accrued directors fees settled in fully vested stock options						49,121		49,121
Net loss							(19,986,640)	(19,986,640)
Balance, ending at Mar. 31, 2019	$ 5,039,195				$ 117,596	211,739,503	(239,943,261)	(28,086,162)
Balance, ending (in shares) at Mar. 31, 2019	63,250	63,250			11,759,630
Balance, beginning at Dec. 31, 2018	$ 4,884,924				$ 106,365	203,237,836	(229,698,465)	(26,354,264)
Balance, beginning (in shares) at Dec. 31, 2018	61,708				10,636,421
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Proceeds from exercise of common stock warrants					$ 3	(3)
Proceeds from exercise of common stock warrants (in shares)					358
Private placement sale of common stock and common stock warrants, net of costs					$ 10,721	7,986,738		7,997,459
Private placement sale of common stock and common stock warrants, net of costs (in shares)					1,072,156
Issuance of vested restricted stock units					$ 3	(3)
Issuance of vested restricted stock units (in shares)					301
Issuance of common stock in connection with conversion of senior secured notes					$ 504	401,464		401,968
Issuance of common stock in connection with conversion of senior secured notes (in shares)					50,394
Series A-1 convertible preferred stock dividends and related settlement	$ 154,271					(154,271)		(154,271)
Series A-1 convertible preferred stock dividends and related settlement (in shares)	1,542
Stock-based compensation expense						267,742		267,742
Net loss							(10,244,796)	(10,244,796)
Balance, ending at Mar. 31, 2019	$ 5,039,195				$ 117,596	211,739,503	(239,943,261)	(28,086,162)
Balance, ending (in shares) at Mar. 31, 2019	63,250	63,250			11,759,630
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of adoption of ASU 2014-09 (Topic 606)							(3,649,258)	(3,649,258)
Balance, beginning at Sep. 30, 2019	$ 5,359,404				$ 286,100	238,064,947	(254,480,408)	(16,129,361)
Balance, beginning (in shares) at Sep. 30, 2019	66,451				28,609,995
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock in connection with exercise of warrants					$ 130,034	1,008,866		1,138,900
Issuance of common stock in connection with exercise of warrants (in shares)					13,003,414
Sale of common stock, net of issuance costs					$ 100,591	9,096,357		9,196,948
Sale of common stock (in shares)			7,244,739		10,059,056
Issuance of common stock in connection with conversion of stockholder notes					$ 14,753	1,533,673		$ 1,548,426
Issuance of common stock in connection with conversion of stockholder notes (in shares)					1,475,258
Issuance of vested restricted stock units					$ 1	(1)
Issuance of vested restricted stock units (in shares)					109			109
Series A-1 convertible preferred stock dividends and related settlement	$ 166,133					(166,133)		$ (166,133)
Series A-1 convertible preferred stock dividends and related settlement (in shares)	1,661
Stock-based compensation expense						664,016		664,016
Net loss							(22,303,015)	(22,303,015)
Conversion of Series A-1 convertible preferred stock to common stock (in shares)					29,358,621
Balance, ending at Mar. 31, 2020					$ 897,512	255,361,229	(276,783,423)	(20,524,682)
Balance, ending (in shares) at Mar. 31, 2020					89,751,192
Balance, beginning at Dec. 31, 2019	$ 5,525,537				$ 384,309	239,766,786	(271,083,356)	(30,932,261)
Balance, beginning (in shares) at Dec. 31, 2019	68,112				38,430,924
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock in connection with exercise of warrants					$ 46,579	1,034,043		1,080,622
Issuance of common stock in connection with exercise of warrants (in shares)					4,657,852
Sale of common stock, net of issuance costs			$ 72,447	$ (72,447)	$ 100,591	9,096,357		9,196,948
Sale of common stock (in shares)			7,244,739		10,059,056
Series A-1 convertible preferred stock dividends and related settlement (in shares)		1,661
Stock-based compensation expense						304,539		304,539
Net loss							(5,700,067)	(5,700,067)
Conversion of Series A-1 convertible preferred stock to common stock	$ (5,525,537)				$ 293,586	5,231,951		5,525,537
Conversion of Series A-1 convertible preferred stock to common stock (in shares)	(68,112)				29,358,621
Balance, ending at Mar. 31, 2020					$ 897,512	$ 255,361,229	$ (276,783,423)	$ (20,524,682)
Balance, ending (in shares) at Mar. 31, 2020					89,751,192

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Mar. 31, 2020	Mar. 31, 2019
OPERATING ACTIVITIES
Net loss	$ (22,303,015)	$ (19,986,640)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	351,623	1,639,618
Loss on extinguishment of debt	8,060,580	183,554
Non-cash interest expense	135,787	895,255
Stock-based compensation	664,016	1,140,031
Change in fair value of redemption feature	(1,796,982)
Change in fair value of warrant liability	(202,142)	(334,592)
Impairment of property and equipment	423,328	2,911,138
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	229,616	(71,433)
Other assets	(83,358)	42,527
Operating lease liability	(80,572)
Accounts payable	1,028,736	233,164
Accrued expenses	(233,806)	(778,391)
Deferred revenue		(1,693,738)
Other liabilities	49,455	(221,287)
Net cash used in operating activities	(13,756,734)	(16,040,794)
INVESTING ACTIVITIES
Purchase of property and equipment		(286,569)
Net cash used in investing activities		(286,569)
FINANCING ACTIVITIES
Proceeds from the sale of common stock, net of offering costs	9,457,400	19,808,317
Proceeds from exercise of common stock warrants	1,138,900
Payments of finance lease obligations	(178,757)	(415,697)
Repayment of debt	(23,414)	(4,627,180)
Net cash provided by financing activities	10,394,129	14,765,440
Net decrease in cash	(3,362,605)	(1,561,923)
Cash at beginning of period	8,015,528	1,717,391
Cash at end of period	4,652,923	155,468
Supplemental disclosure of cash flow information
Cash paid for interest	718,521	1,681,746
Accrued interest settled by conversion into common stock		1,393
Supplemental schedule of noncash investing activities:
Purchases of property and equipment in accounts payable and accrued expenses		1,095,266
Supplemental schedule of noncash financing activities:
Carrying amount of senior secured notes converted into common stock		400,575
Issuance of capital lease obligations in connection with purchase of property and equipment		48,682
Unsecured notes and accrued interest converted into common stock	1,548,426
Issuance of exchange notes at estimated fair value	7,050,206
Issuance of redemption feature at estimated fair value	8,264,451
Change in fair value of convertible senior secured notes warrants recorded as debt discount		1,466,710
Series A-1 convertible preferred stock dividends and related settlement	166,133	304,779
Deferred offering costs and common stock issuance costs in accounts payable and accrued expenses	260,452	74,975
Accrued directors' fees settled in fully vested stock options	$ 49,121	$ 49,121

Organization and Description of Business	6 Months Ended
Organization and Description of Business	Mar. 31, 2020
Organization and Description of Business
Organization and Description of Business	1. Organization and Description of Business Outlook Therapeutics, Inc. (“Outlook” or the “Company”) was incorporated in New Jersey on January 5, 2010, started operations in July 2011, and reincorporated in Delaware by merging with and into a Delaware corporation in October 2015 and changed its name to “Outlook Therapeutics, Inc.” in November 2018. The Company is a late clinical-stage biopharmaceutical company focused on developing and commercializing ONS-5010, an ophthalmic formulation of bevacizumab for use in retinal indications. The Company is based in Monmouth Junction, New Jersey. The Company has been actively monitoring the novel coronavirus (“COVID-19”) pandemic and its impact globally. Given the Company’s current infrastructure needs and current strategy, the Company was able to transition to remote working with limited impact on productivity, as shelter-in-place and similar government orders were imposed. All clinical and chemistry, manufacturing and control activities are currently active for both NORSE 1 and NORSE 2, the Company’s two clinical trials under its Phase 3 program for ONS-5010. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat COVID-19. Management believes the financial results for the three months ended March 31, 2020 were not significantly impacted by COVID-19.

Liquidity	6 Months Ended
Liquidity	Mar. 31, 2020
Liquidity
Liquidity	2. Liquidity The Company has incurred substantial losses and negative cash flows from operations since its inception and has a stockholders’ deficit of $20.5 million as of March 31, 2020. As of March 31, 2020, the Company had substantial indebtedness that included $7.8 million outstanding aggregate principal amount and accrued interest of convertible senior secured notes that mature on December 31, 2020 and $3.6 million unsecured notes that were due on demand as of such date. 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. On December 11, 2019, the Company received approval from the New Jersey Economic Development Authority’s Technology Business Tax Certificate Transfer Program to sell approximately $3.6 million of its unused New Jersey net operating losses (“NOLs”) and research and development tax credits (“R&D credits”). The Company received approximately $3.3 million of proceeds from the sale of the New Jersey NOLs and R&D credits in May 2020. Commencing in April 2020, following receipt of necessary stockholder approval, the holder of the convertible senior secured notes began exchanging the outstanding principal and accrued interest from those notes for the Company’s common stock per the terms of the notes. The holder exchanged $831,932 of principal and accrued interest for an aggregate 1,626,456 shares of the Company’s common stock between April 1, 2020 and May 13, 2020. On May 4, 2020, the Company received $0.9 million in proceeds from a loan granted pursuant to the Paycheck Protection Program (the “PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). Management believes that the Company’s existing cash as of March 31, 2020, the $3.3 million of proceeds from the sale of New Jersey NOLs and R&D credits, and the $0.9 million proceeds from a loan granted pursuant to the PPP received in May 2020 will be sufficient to fund its operations through August 2020, excluding any repayment of debt. Substantial additional financing will be needed by the Company to fund its operations in the future 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: payments from potential strategic research and development partners, licensing and/or marketing arrangements with pharmaceutical companies, private placements of equity and/or debt securities, sale of its development stage product candidates to third parties and public offerings of equity and/or debt securities. There can be no assurance that these future funding efforts will be successful. The Company’s future operations are highly dependent on a combination of factors, including (i) the timely and successful completion of additional financing discussed above; (ii) the Company’s ability to complete revenue-generating partnerships with pharmaceutical companies; (iii) the success of its research and development; (iv) the development of competitive therapies by other biotechnology and pharmaceutical companies, and, ultimately; (v) regulatory approval and market acceptance of the Company’s proposed future products.

Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Mar. 31, 2020

Basis of Presentation and Summary of Significant Accounting Policies

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 and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. 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 March 31, 2020 and its results of operations for the three and six months ended March 31, 2020 and 2019, cash flows for the six months ended March 31, 2020 and 2019, and convertible preferred stock and stockholders’ equity for the three and six months ended March 31, 2020 and 2019. Operating results for the three and six months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the full year ending September 30, 2020. 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, 2019 included in the Company’s Annual Report on Form 10‑K filed with the Securities and Exchange Commission (“SEC”) on December 19, 2019.

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, including as a result of the ongoing COVID-19 pandemic, 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.

Net loss per share

Basic and diluted net loss per common share is determined by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period.

For purposes of calculating diluted loss per common share, the denominator includes both the weighted average common shares outstanding and the number of common stock equivalents if the inclusion of such common stock equivalents would be dilutive. Dilutive common stock equivalents potentially include warrants, stock options and non-vested restricted stock unit (“RSU”) awards using the treasury stock method. For all periods presented, there is no difference in the number of shares used to compute basic and diluted shares due to the Company’s loss.

The following table sets forth the computation of basic earnings per share and diluted earnings per share:


	Three months ended March 31,		Six months ended March 31,
	2020	2019	2020		2019
Net loss attributable to common stockholders	$ (17,459,591)	$ (11,289,962)	$	(35,937,275)	$	(21,182,314)
Common stock outstanding (weighted average)	47,895,771	11,529,033		38,849,364		10,677,020
Basic and diluted net loss per share	$ (0.36)	$ (0.98)	$	(0.93)	$	(1.98)

The following potentially dilutive securities (in common stock equivalents) have been excluded from the computation of diluted weighted-average shares outstanding as of March 31, 2020 and 2019, as they would be antidilutive:


	As of March 31,
	2020	2019
Series A-1 convertible preferred stock	—	1,195,295
Convertible senior secured notes	—	957,482
Convertible unsecured notes	—	147,347
Performance-based stock units	2,470	16,131
Restricted stock units	—	7,156
Stock options	2,218,551	541,746
Common stock warrants	6,463,338	5,660,949

Recently issued and adopted accounting pronouncements

On October 1, 2019, the Company adopted ASU No. 2016-02, Leases (“ASC 842” or “ASU 2016-02”) issued by the FASB in February 2016 which was subsequently supplemented by clarifying guidance to improve financial reporting of leasing transactions. The new lease accounting guidance requires lessees to recognize lease liabilities and right-of-use assets on the balance sheet for all leases with initial terms longer than 12 months and provides enhanced disclosures on key information of leasing arrangements. The guidance allowed companies to apply the requirements retrospectively, either to all prior periods presented or through a cumulative adjustment in the year of adoption.

The Company adopted the new standard effective October 1, 2019 using the modified retrospective transition method using the package of practical expedients and a discount rate of 9% and elected to not apply the standard in the comparative periods presented in the year of adoption. The Company has implemented the internal controls to monitor and record historical and future lease arrangements and required disclosures. For all existing operating leases as of September 30, 2019, the Company recorded right of use assets of $352,172 and corresponding lease liabilities of $318,672 with an offset to other liabilities of $33,500 to eliminate deferred rent on the consolidated balance sheets. The Company recorded right of use assets of $2,525,000 and corresponding finance lease liabilities of $3,558,080 for leases previously classified as capital leases. This did not include an existing lease termination obligation of $3,909,448 pertaining to a lease for premises that had been leased in Cranbury, New Jersey for a planned office and laboratory expansion that did not materialize, and which prior termination remained unchanged as a result of the transition. Refer to Note 9 for the Company’s lease disclosures.

At lease commencement, the Company records a lease liability based on the present value of lease payments over the expected lease term including any options to extend the lease that the Company is reasonably certain to exercise. The Company calculates the present value of lease payments using an incremental borrowing rate as the Company’s leases do not provide an implicit interest rate. The Company’s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. At the lease commencement date, the Company records a corresponding right-of-use lease asset based on the lease liability, adjusted for any lease incentives received and any initial direct costs paid to the lessor prior to the lease commencement date. The Company may enter into leases with an initial term of 12 months or less (“Short-Term Leases”). For Short-Term Leases, the Company records the rent expense on a straight-line basis and does not record the leases on the consolidated balance sheet. The Company had no Short-Term Leases as of March 31, 2020.

After lease commencement, the Company measures its leases as follows: (i) the lease liability based on the present value of the remaining lease payments using the discount rate determined at lease commencement and (ii) the right-of-use lease asset based on the re-measured lease liability, adjusted for any unamortized lease incentives received, any unamortized initial direct costs and the cumulative difference between rent expense and amounts paid under the lease agreement. Any lease incentives received, and any initial direct costs are amortized on a straight-line basis over the expected lease term. Rent expense is recorded on a straight-line basis over the expected lease term.

The adoption of the new lease accounting standard did not have a material impact on the Company’s results of operations or cash flows.

On October 1, 2019, the Company adopted ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting Compensation, issued by the FASB in June 2018. The amendments in this ASU expanded the scope of Compensation—Stock Compensation (“Topic 718”) to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments specified that Topic 718 applied to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The Company applied the new guidance to share-based payments entered after October 1, 2019.

In August 2018, the FASB issued ASU No. 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"), which removes and modifies some existing disclosure requirements and adds others. ASU 2018-13 modifies the disclosure requirements for fair value measurements and removes the requirement to disclose (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels, and (3) the valuation processes for Level 3 fair value measurements. ASU 2018-13 requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The ASU is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted for any eliminated or modified disclosures upon issuance of this ASU. The Company is currently evaluating the impact of the adoption of this standard.

Reclassifications

Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation.

Fair Value Measurements

6 Months Ended

Mar. 31, 2020

Fair Value Measurements

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:


	March 31, 2020
	(Level 1)		(Level 2)		(Level 3)
Liabilities
Redemption feature	$	—	$	—	$	6,467,469
Warrant liability		—		—		53,592
	$	—	$	—	$	6,521,061

	September 30, 2019
	(Level 1)		(Level 2)		(Level 3)
Liabilities
Redemption feature	$	—	$	—	$	—
Warrant liability		—		—		255,734
	$	—	$	—	$	255,734

The Company evaluated a redemption feature within the senior secured notes issued in December 2019 and determined bifurcation of the redemption feature was required. The redemption feature is accounted for as a derivative instrument and re-measured at each reporting period until the redemption feature is exercised, expires, or otherwise settled.

The table presented below is a summary of changes in the fair value of the Company’s Level 3 valuation for the warrant liability and redemption feature for the six months ended March 31, 2020:


			Redemption
	Warrants		Feature
Balance at October 1, 2019	$	255,734	$	—
Addition of feature on December 20, 2019		—		8,264,451
Change in fair value		(202,142)		(1,796,982)
Balance at March 31, 2020	$	53,592	$	6,467,469

The warrants issued in connection with the convertible senior secured notes (see Note 7) are classified as liabilities on the accompanying consolidated balance sheet as the warrants include cash settlement features at the option of the holders under certain circumstances. The warrant liability is revalued each reporting period with the change in fair value recorded in the accompanying consolidated statements of operations until the warrants are exercised or expire. The fair value of the warrant liability is estimated using the Black-Scholes option pricing model using the following assumptions:


	March 31, 2020			September 30, 2019
Risk-free interest rate		0.37	%		1.56	%
Remaining contractual life of warrant		4.88	years		5.38	years
Expected volatility		90.2	%		89.0	%
Annual dividend yield		0	%		0	%
Fair value of common stock	$	0.60	per share	$	1.49	per share

The fair value of the redemption feature is estimated by using a Monte Carlo simulation model and a with-and-without perspective, where the fair value of debt instrument is measured with the derivative and without the derivative and the difference is the implied fair value of the redemption feature. The value of the debt instrument with the redemption feature depends on the daily stock price path followed by the Company’s common stock price. This model simulates daily common stock prices from the issuance date thru the maturity date for the debt instrument. At issuance, the Company utilized a volatility estimate of 130% based upon the observed historical volatility of both the Company and peer group for 1-year and 2-year periods. Risk-free interest rate was based upon US treasury yields.

- 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, Net

6 Months Ended

Mar. 31, 2020

Property and Equipment, Net

Property and Equipment, Net

5. Property and Equipment, Net

Property and equipment, net, consists of:


	March 31,		September 30,
	2020		2019
Laboratory equipment	$	1,067,351	$	1,067,351
Leasehold improvements		160,086		160,086
Land and building		—		3,000,000
		1,227,437		4,227,437
Less: accumulated depreciation and amortization		(704,028)		(1,051,477)
	$	523,409	$	3,175,960

Depreciation and amortization expense was $63,775 and $816,541 for the three months ended March 31, 2020 and 2019, respectively and $127,551 and $1,639,618 for the six months ended March 31, 2020 and 2019, respectively.

On October 1, 2019, the Company adopted ASC 842, which resulted in the reclassification of property and equipment under capital leases to finance lease right-of-use assets separately disclosed on the consolidated balance sheets. Refer to Note 9 for the Company’s lease disclosures.

At September 30, 2019, $3,000,000 represented the Company’s corporate office lease that was classified as a capital lease. The Company’s corporate office lease matures in February 2028 and the effective interest rate on the corporate office lease is 43.9%. At September 30, 2019, $475,000 of accumulated amortization related to capital leases.

Impairment charge

During the three and six months ended March 31, 2020, the Company recorded an impairment charge of $423,328 primarily due to the write-off of assets held for sale after the Company determined that the carrying amount of these assets was not recoverable as result of a lease termination agreement entered into in May 2020. Refer to Note 13 for further details.

During the three and six months ended March 31, 2019, the Company wrote off certain construction in progress and laboratory equipment with a carrying amount of $561,735 and $2,911,138, respectively. The Company determined that the carrying amount of these assets was not recoverable and was less than the fair value less the cost to sell due to the Company changing its operations to outsource the manufacturing of ONS-5010.

Accrued Expenses

6 Months Ended

Mar. 31, 2020

Accrued Expenses

Accrued expenses

6. Accrued Expenses

Accrued expenses consists of:


	March 31,		September 30,
	2020		2019
Compensation	$	347,094	$	919,394
Severance and related costs		121,357		505,570
Research and development		2,256,275		1,692,040
Interest payable		235,878		934,145
Professional fees		423,757		419,216
Lease termination obligation		3,938,994		—
Other accrued expenses		139,736		152,623
	$	7,463,091	$	4,622,988

Debt

6 Months Ended

Mar. 31, 2020

Debt

Debt

7. Debt

Senior secured notes


	March 31,		September 30,
	2020		2019
Convertible senior secured notes	$	7,589,027	$	6,699,000
Unamortized debt discount		(403,034)		—
	$	7,185,993	$	6,699,000

In December 2019, the Company entered into an exchange agreement with the holders of its approximately $7.3 million outstanding aggregate principal amount and accrued interest of senior secured notes (the “Old Senior Notes”) originally issued pursuant to the certain Note and Warrant Purchase Agreement dated December 22, 2017, as amended on April 13, 2017, November 5, 2018, and June 28, 2019 (the “Exchange Agreement”). Pursuant to the Exchange Agreement, the holders of the Old Senior Notes exchanged the entire outstanding principal and accrued interest for new senior secured notes having an aggregate outstanding original principal amount of $7.6 million, which includes an aggregate exchange fee of approximately $0.3 million.

The new senior secured notes are substantially similar to the Old Senior Notes, as amended through the date of the Exchange Agreement, bear interest at a rate of 12.0% per annum and will mature December 31, 2020 (subject to extension to June 30, 2021 at the Company’s option upon payment of an extension fee equal to 3% of the outstanding balance and being in compliance with applicable Nasdaq listing requirements). The new senior secured notes are convertible, at the option of the holder, beginning April 1, 2020, into shares of the Company’s common stock at a conversion price equal to 90% of the two lowest closing bid prices in the 20 trading days immediately preceding such conversion, subject to a floor price of $0.232 per share. In the event the conversion price is lower than the floor price for 20 consecutive trading days, the Company is required to make a cash redemption equal to $350,000 (provided that it shall not be required to make more than one redemption in any calendar month, nor shall a trading day where the conversion price is lower than the floor price be included in more than one 20-trading day period). The conversion feature was determined to be a redemption feature and was bifurcated from the debt instrument. The estimated fair value of the redemption feature was $8.3 million at issuance (see Note 4).

The Exchange Agreement was accounted for as an extinguishment of debt. Loss on extinguishment of convertible senior secured notes recognized during the six months ended March 31, 2020 was $8.1 million and equal to the excess fair value of the notes and bifurcated redemption feature over the notes’ net carrying value.

Aggregate interest expense on the Old Senior Notes and the new senior secured notes for the three months ended March 31, 2020 and 2019 was $348,541 and $561,485, respectively, and $550,062 and $1,162,917 for the six months ended March 31, 2020 and 2019, respectively.

Stockholder notes

The Company previously repurchased shares of its restricted stock in exchange for notes in the amount of $800,000 that do not bear interest and are due on demand.

The Company has a $2,812,500 note payable related to the previous repurchase of common stock that does not bear interest and is due on demand.

Other Indebtedness

6 Months Ended

Mar. 31, 2020

Other Indebtedness

Other Indebtedness

8. Other Indebtedness

The Company has other outstanding debt consisting of equipment loans and unsecured notes.


	March 31,		September 30,
	2020		2019
Unsecured notes	$	—	$	977,966
Equipment loans		75,073		98,487
		75,073		1,076,453
Less: current portion		(49,364)		(1,026,168)
Long-term debt	$	25,709	$	50,285

On March 7, 2019, the Company entered into a forbearance and exchange agreement with Iliad Research and Trading, L.P., a Utah limited partnership (the "Lender"). Concurrently with the execution of this agreement, the Lender purchased two stockholder notes issued by the Company previously in the original principal amount of $1,000,000 with an aggregate outstanding balance as of March 7, 2019 of $1,947,133 including accrued interest. The stockholder notes were accruing interest at the rate of 2.5% per month. The Lender agreed to refrain and forbear from bringing any action to collect under the stockholder notes until March 7, 2020 and to reduce the interest rates currently in effect to 12.0% per annum simple interest during such forbearance period. The Company also agreed to, at Lender's election, repay or exchange the stockholder notes (or portions thereof) for shares of the Company's common stock at an exchange rate of $13.44 per share or, beginning September 2019, at 95% of the average of the two lowest closing bid prices in the prior twenty trading days, as applicable.

In September 2019, the Lender began exchanging the outstanding principal and accrued interest from those notes for the Company’s common stock per the terms of the March 2019 forbearance and exchange agreement. During the six months ended March 31, 2020, the remaining unsecured notes with a carrying amount of $977,966 and accrued interest of $570,460 were exchanged for 1,475,258 shares of the Company’s common stock at a weighted average exchange price of $1.10. As of March 31, 2020, these unsecured notes were no longer outstanding.

During the three months ended March 31, 2019, the Company recognized interest expense related to the unsecured notes of $63,576 and $12,997 and $136,576 for the six months ended March 31, 2020 and 2019, respectively. No interest expense related to the unsecured notes was recognized during the three months ended March 31, 2020.

Leases

6 Months Ended

Mar. 31, 2020

Leases

Leases

9. Leases

Corporate office and warehouse leases

At March 31, 2020, the Company had leases for its corporate office and a warehouse space in the State of New Jersey. The Company entered into a lease termination agreement for its corporate office lease on May 6, 2020. Refer to Note 13 for additional details on the corporate office lease termination and related accounting. The terminated corporate office lease had a maturity date in February 2028 with two five-year renewal options. The Company’s warehouse lease matures in September 2021.

Equipment leases

The Company has equipment leases, with terms between 12 and 36 months, recorded as finance leases. The equipment leases bear interest between 4.0% and 13.0%.

Certain lease agreements contain provisions for future rent increases. Payments due under the lease contracts include minimum payments that the Company is obligated to make under the non-cancelable initial terms of the leases as the renewal terms are at the Company’s option. Lease expense is included in research and development or general and administrative based on the use of the lease asset.

The components of lease cost for the three and six months ended March 31, 2020 are as follows:


	Three months ended March 31,		Six months ended March 31,
	2020		2020
Finance lease cost:
Amortization of right-of-use assets	$	75,000	$	150,000
Interest on lease liabilities		361,033		733,256
Total finance lease cost		436,033		883,256
Operating lease cost		43,625		87,250
Total lease cost	$	479,658	$	970,506

Amounts reported in the consolidated balance sheets for leases where the Company is the lessee as of March 31, 2020 were as follows:


	March 31, 2020
Operating leases:
Right-of-use asset	$	244,600
Operating lease liabilities		271,600
Finance leases:
Right-of-use asset	$	2,375,000
Financing lease liabilities		3,399,232
Weighted-average remaining lease term (years):
Operating leases		1.6
Finance leases		7.7
Weighted-average discount rate:
Operating leases		9.0%
Finance leases		43.0%

Other information related to leases for the six months ended March 31, 2020 are as follows:


	Six months ended March 31,
	2020
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows from finance leases	$	713,364
Operating cash flows from operating leases		93,750
Financing cash flows from finance leases		178,757
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—
Finance leases		—

Future minimum lease payments under non-cancelable leases as of March 31, 2020 are as follows for the years ending September 30:


	Operating leases		Finance leases
2020 (remaining six months)	$	93,750	$	746,636
2021		195,000		1,492,390
2022		—		1,535,809
2023		—		1,564,028
2024		—		1,597,371
Thereafter		—		5,753,515
Total undiscounted lease payments	$	288,750	$	12,689,749
Less: Imputed interest		17,150		9,290,517
Total lease obligations	$	271,600	$	3,399,232

Future minimum rental payments under non-cancelable leases prior to adoption of ASC 842, Leases, as of September 30, 2019 were as follows:


	Operating leases		Finance leases
2020	$	187,500	$	1,608,067
2021		195,000		1,506,592
2022		—		1,535,809
2023		—		1,564,027
2024		—		1,593,291
Thereafter		—		5,691,492
Total undiscounted lease payments	$	382,500	$	13,499,278
Less: Imputed interest		—		9,941,198
Total lease obligations	$	382,500	$	3,558,080

Office and laboratory lease termination obligation

In August 2018, the Company entered into a lease termination agreement effective September 1, 2018, to terminate the lease for unutilized office and laboratory space in Cranbury, New Jersey. In consideration for the termination of the lease, the Company agreed to make payments to the landlord totaling up to $5.8 million, which includes (i) $287,615 upon execution of the termination agreement, (ii) $50,000 per month for up to 30 months, commencing September 1, 2018, and (iii) a $4.0 million payment, in any event, on or before February 1, 2021. The Company and landlord agreed that the $174,250 security deposit will be used to pay the 7th, 8th, 9th and a portion of the 10th monthly payments. The Company may pay the final $4.0 million payment at any time, whereupon the Company’s obligation to make the remaining monthly payments terminates.

At March 31, 2020, the lease termination obligation of $3,938,994 is included in accrued expenses on the consolidated balance sheets. A roll forward of the charges incurred to general and administrative expense for the six months ended March 31, 2020 is as follows:


	Balance		Expensed / Accrued		Cash		Balance
	October 1, 2019		Expense		Payments		March 31, 2020
Lease termination payments	$	3,909,448	$	329,546	$	(300,000)	$	3,938,994

Common Stock, Convertible Preferred Stock and Stockholders' Equity (Deficit)

6 Months Ended

Mar. 31, 2020

Common Stock, Convertible Preferred Stock and Stockholders’ Equity (Deficit)

Common Stock, Convertible Preferred Stock and Stockholders' Equity (Deficit)

10. Common Stock, Convertible Preferred Stock and Stockholders’ Equity (Deficit)

Common stock

In February 2020, the Company issued, in a registered direct offering, an aggregate of 7,598,426 shares of common stock and, in a concurrent private placement to the same investors, warrants to purchase up to an aggregate of 3,799,213 shares of common stock at a combined purchase price per share and accompanying warrant of $1.016 for approximately $6.7 million in net proceeds after payment of placement agent fees and other offering costs. In a separate concurrent private placement, the Company issued 2,460,630 shares of common stock and warrants to purchase up to an aggregate of 1,230,315 shares of common stock to GMS Ventures and Investments, an affiliate of BioLexis Pte. Ltd. (“BioLexis”), the Company’s controlling stockholder and strategic partner, at a combined purchase price per share and accompanying warrant of $1.016 for $2.5 million. The warrants issued were exercisable immediately at an exercise price of $0.9535 per share and will expire four years from the issuance date.

In connection with the registered direct offering and concurrent private placement of warrants to those investors, the Company issued placement agent warrants to purchase up to an aggregate of 531,890 shares of common stock, on substantially the same terms as the concurrent private placement warrants, at an exercise price of $1.27 per share and a 5-year term.

Effective March 19, 2020, following approval of the Company’s stockholders, the Company issued an aggregate of 7,244,739 shares of its common stock to the four principals (who include two of its named executive officers, Messrs. Dagnon and Evanson) of MTTR, LLC (“MTTR”) pursuant to their respective consulting agreements that were entered into on January 27, 2020 concurrent with the termination agreement and mutual release with MTTR to terminate the strategic partnership agreement. Refer to Note 11 for the accounting of the restricted stock issued and Note 12 for further details on the terminated MTTR strategic partnership agreement.

During the six months ended March 31, 2019, the Company issued an aggregate of 2,680,390 shares of the Company’s common stock for gross cash proceeds of $20.0 million ($19.8 million net of issuance costs) pursuant to a November 5, 2018 private placement agreement with BioLexis.

During the six months ended March 31, 2020 and 2019, the Company issued 109 and 446 shares of common stock, respectively, upon the vesting of RSUs.

Series A‑1 convertible preferred stock

A total of 200,000 shares of Series A-1 Convertible Preferred Stock (the “Series A-1”) have been authorized for issuance under the Certificate of Designation of Series A-1 Convertible Preferred Stock of the Company (the “Certificate of Designation”). The shares of Series A-1 have a stated value of $100.00 per share, and rank senior to all junior securities (as defined in the Certificate of Designation).

The Series A-1 accrued dividends at a rate of 10% per annum, compounded quarterly, payable quarterly at the Company’s option in cash or in kind in additional shares of Series A-1. The Series A-1 was also entitled to dividends on an as-if-converted basis in the same form as any dividends actually paid on shares of common stock or other securities. The initial conversion rate was subject to appropriate adjustment in the event of a stock split, stock dividend, combination, reclassification or other recapitalization affecting the common stock. The holders of the Series A-1 had the right to vote on matters submitted to a vote of the Company’s stockholders on an as-converted basis, voting with the Company’s other stockholders as a single class. In addition, without the prior written consent of a majority of the outstanding shares of Series A-1, the Company could not take certain actions, including amending its certificate of incorporation or bylaws, or issuing securities ranking pari passu or senior to the Series A-1.

On March 23, 2020, the Company issued 29,358,621 shares of its common stock upon conversion of the 68,112 shares of Series A-1 outstanding by BioLexis, pursuant to an agreement entered on January 27, 2020 with BioLexis, whereby the effective conversion rate of the Series A-1 was increased from the $18.89797 per share to $431.03447263 per share, (or an effective conversion rate of $0.232 per share) following stockholder approval of the amended terms on March 19, 2020.

The amendment to the Series A-1 was deemed an extinguishment for accounting purposes. The excess fair value of common stock received over the net carrying value of the Series A-1 was $10,328,118 and reflected as a deemed dividend in the consolidated statements of operations for purposes of presenting net loss attributable to common stockholders when calculating basic and diluted loss per share.

At March 31, 2020, there were no shares of Series A-1 outstanding. During the six months ended March 31, 2020, the Company issued 1,661 shares of Series A-1 to settle the related dividends that were due on a quarterly basis.

Common stock warrants

As of March 31, 2020, shares of common stock issuable upon the exercise of outstanding warrants were as follows:


	Shares of
	common stock
	issuable upon
	exercise of	Exercise Price
Expiration Date	warrants	Per Share
February 18, 2022	416,666	$	12.00
December 22, 2024	277,128	$	12.00
April 13, 2025	145,688	$	12.00
May 31, 2025	62,438	$	12.00
February 24, 2025	531,890	$	1.27
February 26, 2024	5,029,528	$	0.9535
	6,463,338

On December 23, 2019, the Company amended the terms of its outstanding 15-month warrants and five-year warrants issued April 12, 2019 (the “April 2019 Warrants”), which originally had an exercise price of $2.90 per share of the Company’s common stock. The exercise price of all outstanding April 2019 Warrants was reduced to $0.2320 per share and the exercise period was amended such that all April 2019 Warrants expire on December 24, 2019. Immediately prior to expiration, all then unexercised April 2019 Warrants were automatically net exercised pursuant to the amended provisions.

On January 27, 2020, the Company amended the exercise price of its outstanding warrants to purchase an aggregate 4,657,852 shares of its common, all of which were held by BioLexis to $0.232 per share. BioLexis exercised all such warrants for cash payment of approximately $1.1 million on January 29, 2020.

The estimated change in fair value of warrants amended during the three and six months ended March 31, 2020 was $1,431,406 and $3,140,009, respectively, and reflected as a deemed dividend in the consolidated statements of operations for purposes of presenting net loss attributable to common stockholders when calculating basic and diluted loss per share.

During the six months ended March 31, 2020, warrants to purchase an aggregate of 15,085,240 shares of common stock with a weighted averaged exercise price of $0.232 were exercised for an aggregate 13,003,414 shares of the Company's common stock; and warrants to purchase an aggregate of 80,797 shares of common stock with a weighted averaged exercise price of $0.08 expired. Of these exercised warrants, 10,157,050 of them were April 2019 Warrants, described above, exercised pursuant to the net exercise provisions therein, as amended.

Stock-Based Compensation

6 Months Ended

Mar. 31, 2020

Stock-Based Compensation

Stock-Based Compensation

11. 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, RSUs, performance-based awards (“PSUs”), 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 106,490. As of March 31, 2020, PSUs representing 2,470 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, (the “2015 Plan”) no future awards under the 2011 Plan will be granted.

2015 Equity Incentive Plan

In December 2015, the Company adopted the 2015 Plan. The 2015 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, RSU awards, performance stock awards and other forms of equity compensation to Company employees, directors and consultants. The aggregate number of shares of common stock authorized for issuance pursuant to the Company’s 2015 Plan is 4,022,526. As of March 31, 2020, 1,634,323 shares remained available for grant under the 2015 Plan.

Stock options and RSUs are granted under the Company’s 2015 Plan and generally vest over a period of one to four years from the date of grant and, in the case of stock options, have a term of 10 years. The Company recognizes the grant date fair value of each option and share of RSU over its vesting period.

The Company recorded stock-based compensation expense in the following expense categories of its statements of operations for the three and six months ended March 31, 2020 and 2019:


	Three months ended March 31,				Six months ended March 31,
	2020		2019		2020		2019
Research and development	$	41,148	$	120,763	$	148,938	$	211,972
General and administrative		263,391		146,979		515,078		928,059
	$	304,539	$	267,742	$	664,016	$	1,140,031

During the six months ended March 31, 2019, the Company awarded stock options with a fair value of $49,121 as settlement for directors fees accrued as of September 30, 2018.

Stock options

As of March 31, 2020, options to purchase common stock of the Company outstanding under the 2015 Plan were as follows:


				Weighted
				Average
		Weighted		Remaining
	Number of	Average		Contractual
	Shares	Exercise Price		Term (Years)
Balance at October 1, 2019	1,389,999	$	3.46
Granted	1,040,810		1.00
Forfeited	(212,258)		2.87
Balance at March 31, 2020	2,218,551		2.36	9.4
Vested and exercisable	377,985		4.03	9.1
Vested and expected to vest at March 31, 2020	2,218,551	$	2.36	9.4

As of March 31, 2020, the aggregate intrinsic value of options outstanding was $29,177. The aggregate intrinsic value represents the total amount by which the fair value of the common stock subject to options exceeds the exercise price of the related options.

The weighted average grant date fair value of the options awarded to employees for the six months ended March 31, 2020 and 2019 was $0.72 and $6.36 per option, respectively. The fair value of the options was estimated on the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions:


	Six months ended March 31,
	2020		2019
Risk-free interest rate	1.13	%	2.79	%
Expected life (years)	5.71		5.87
Expected volatility	89.2	%	88.8	%
Expected dividend yield	—		—

As of March 31, 2020, there was $2,431,719 of unrecognized compensation expense that is expected to be recognized over a weighted-average period of 2.84 years.

Performance-based stock units

The Company has issued PSUs, which generally have a ten-year life from the date of grant. Upon exercise, the PSU holder receives common stock or cash at the Company’s discretion.

The following table summarizes the activity related to PSUs during the six months ended March 31, 2020:


				Weighted
				Average
	Number	Base		Remaining
	of	Price		Contractual
	PSUs	Per PSU		Term (Years)
Balance at October 1, 2019	15,691	$	49.97
Forfeitures	(13,221)		50.60
Balance at March 31, 2020	2,470		49.97	4.3
Vested and exercisable at March 31, 2020	2,470		49.97	4.3
Vested and expected to vest at March 31, 2020	2,470	$	49.97	4.3

Restricted stock units

The following table summarizes the activity related to RSUs during the six months ended March 31, 2020:


		Weighted
	Number	Average
	of	Grant Date
	RSUs	Fair Value
Balance at October 1, 2019	109	$	96.00
Vested and settled	(109)		96.00
Balance at March 31, 2020	—	$	—

Restricted stock

In connection with the consulting agreements entered into by the Company and four principals of MTTR, the Company issued an aggregate of 7,244,739 shares of its common stock. Refer to Note 12 for further details on the consulting agreements and terminated strategic partnership agreement. The shares may not be sold until the earlier of (i) six months following FDA approval of ONS-5010, (ii) the date the Company publicly announces not to pursue development of ONS-5010, (iii) a change in control or (iv) January 2025. In addition, the Company has the right to repurchase the shares for $0.01 per share if the consultant terminates his agreement other than for good reason or the Company terminates the agreement for cause. The repurchase right lapses, in tiered percentages, based upon the completion of enrollment of the Company’s NORSE 2 clinical trial of ONS-5010 by certain dates. The repurchase right may also lapse as to 50% or 100% of the shares if the Company enters into certain agreements pertaining to ONS-5010 that meet certain value thresholds or the Company’s share price meets certain predefined targets. The repurchase right also lapses as to 100% of the shares upon the earliest to occur of (i) filing of the biologics license application for ONS-5010, (ii) termination of the agreement by the consultant for good reason or by the Company other than for cause. (iii) in the event of disability, or (iv) upon a change in control.

The grant date fair value of the restricted shares was $0.54 per share and equal to the closing stock price of the Company’s common stock at the time of grant. Compensation expense is recognized over the shorter of the explicit service period or derived service period which was determined to be 4.8 years at the time of grant. Compensation expense may be accelerated when certain performance conditions become probable and the corresponding purchase right has lapsed. During the three and six months ended March 31, 2020, the Company recognized compensation expense related to the restricted stock of $78,984. As of March 31, 2020, there was $3,833,176 of unrecognized compensation expense related to the restricted stock.

Related-Party Transactions	6 Months Ended
Related-Party Transactions	Mar. 31, 2020
Related-Party Transactions
Related-Party Transactions	12. Related-Party Transactions MTTR - strategic partnership agreement (ONS-5010) In February 2018, the Company entered into a strategic partnership agreement with MTTR to advise on regulatory, clinical and commercial strategy and assist in obtaining approval of ONS-5010, the Company's bevacizumab therapeutic product candidate for ophthalmic indications. In November 2018, the board of directors of the Company appointed Mr. Terry Dagnon as Chief Operating Officer, and Mr. Jeff Evanson as Chief Commercial Officer. Both Mr. Dagnon and Mr. Evanson initially provided services to the Company pursuant to the February 2018 strategic partnership agreement with MTTR, as amended. Mr. Dagnon and Mr. Evanson were both principals in MTTR. The Company did not pay Mr. Dagnon or Mr. Evanson any direct compensation as consultants or as employees during the six months ended March 31, 2019 nor during the period from October 1, 2019 through March 19, 2020. Both Mr. Dagnon and Mr. Evanson were compensated directly by MTTR for services provided to the Company as the Company's Chief Operating Officer and Chief Commercial Officer, respectively, pursuant to the strategic partnership agreement until such agreement, as amended, was terminated effective March 19, 2020. The Company began compensating Mr. Dagnon and Mr. Evanson directly as consultants effective March 19, 2020 pursuant to their respective consulting agreements with the Company, whch became effective March 19, 2020 following stockholder approval of the share issuances contemplated therein. Mr. Dagnon and Mr. Evanson have also agreed to provide consulting services to an affiliate of BioLexis pursuant to a separate arrangement. On January 27, 2020, the Company entered into a termination agreement and mutual release with MTTR to terminate the strategic partnership agreement. Pursuant to the agreement, the Company agreed (x) to issue to the four principals of MTTR (who include two of its named executive officers, Messrs. Dagnon and Evanson), an aggregate of 7,244,739 shares of its common stock, subject to stockholder approval, (y) to enter into consulting agreements with each of the four principals setting forth the terms of his respective compensation arrangement, and (z) to pay MTTR a one-time settlement fee of $110,000, upon effectiveness of the agreement. Concurrently, the Company also entered into consulting agreements directly with each of the four principals of MTTR setting forth the terms of his respective compensation arrangement, as well as providing for certain transfer restrictions and repurchase rights applicable to the shares of common stock to be issued pursuant hereto. The termination agreement, and the consulting agreements, became effective upon stockholder approval of the share issuance on March 19, 2020. Refer to Note 11 for the accounting of the restricted stock issued and compensation expense recognized. MTTR and its four principals under the strategic partnership agreement and the subsequent individual consulting agreements earned an aggregate $169,347 and $290,431 during the three months ended March 31, 2020 and 2019, respectively; and $780,771 and $580,911 during the six months ended March 31, 2020 and 2019, respectively, which includes monthly consulting fees and expense reimbursement. As of March 31, 2020, no amounts were due to MTTR. As of September 30, 2019, amount due to MTTR was $365,301 which is included in accrued expenses in the accompanying consolidated balance sheets.

Subsequent Events	6 Months Ended
Subsequent Events	Mar. 31, 2020
Subsequent Events
Subsequent Events	13. Subsequent Events Corporate office lease termination On May 6, 2020, the Company entered into a lease termination agreement with the landlord, Cedar Brook Corporate Center, LP, a New Jersey limited partnership, to terminate that certain lease dated June 12, 2011 for approximately 66,000 square feet of office, manufacturing and laboratory space located in Cranbury, New Jersey that served as the Company’s headquarters. The termination of the lease is expected to reduce cash needs by approximately $14.0 million over the remaining life of the original lease through February 2028. In consideration for the termination of the lease, the Company agreed to make payments to landlord totaling approximately $1.0 million (payable in eight monthly installments commencing May 1, 2020), with late payments subject to an additional 7% per annum until paid in full. In the third quarter of fiscal year 2020, the Company will write off the finance lease right-of-use asset and finance lease liability associated with the corporate office lease. The estimated loss on lease termination is $0.6 million. Paycheck Protection Program term loan On May 4, 2020, the Company received $0.9 million in proceeds from a loan granted pursuant to the PPP of the CARES Act. The PPP loan is evidenced by a promissory note containing the terms and conditions for repayment of the PPP loan.The PPP loan provides for an initial six-month deferral of payments and any amount owed on the loan has a two-year maturity (May 2022), with an interest rate of 1% per annum. The Company has the right to prepay any amounts outstanding under this loan at any time and from time to time, in whole or in part, without penalty.

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

6 Months Ended

Mar. 31, 2020

Basis of Presentation and Summary of Significant Accounting Policies

Basis of presentation

Use of estimates

Net loss per share

The following table sets forth the computation of basic earnings per share and diluted earnings per share:


	Three months ended March 31,		Six months ended March 31,
	2020	2019	2020		2019
Net loss attributable to common stockholders	$ (17,459,591)	$ (11,289,962)	$	(35,937,275)	$	(21,182,314)
Common stock outstanding (weighted average)	47,895,771	11,529,033		38,849,364		10,677,020
Basic and diluted net loss per share	$ (0.36)	$ (0.98)	$	(0.93)	$	(1.98)


	As of March 31,
	2020	2019
Series A-1 convertible preferred stock	—	1,195,295
Convertible senior secured notes	—	957,482
Convertible unsecured notes	—	147,347
Performance-based stock units	2,470	16,131
Restricted stock units	—	7,156
Stock options	2,218,551	541,746
Common stock warrants	6,463,338	5,660,949

Recently issued and adopted accounting pronouncements

The adoption of the new lease accounting standard did not have a material impact on the Company’s results of operations or cash flows.

Reclassifications

Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation.

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

6 Months Ended

Mar. 31, 2020

Basis of Presentation and Summary of Significant Accounting Policies

Schedule of computation of basic earnings per share and diluted earnings per share


	Three months ended March 31,		Six months ended March 31,
	2020	2019	2020		2019
Net loss attributable to common stockholders	$ (17,459,591)	$ (11,289,962)	$	(35,937,275)	$	(21,182,314)
Common stock outstanding (weighted average)	47,895,771	11,529,033		38,849,364		10,677,020
Basic and diluted net loss per share	$ (0.36)	$ (0.98)	$	(0.93)	$	(1.98)

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


	As of March 31,
	2020	2019
Series A-1 convertible preferred stock	—	1,195,295
Convertible senior secured notes	—	957,482
Convertible unsecured notes	—	147,347
Performance-based stock units	2,470	16,131
Restricted stock units	—	7,156
Stock options	2,218,551	541,746
Common stock warrants	6,463,338	5,660,949

Fair Value Measurements (Tables)

6 Months Ended

Mar. 31, 2020

Fair Value Measurements

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


	March 31, 2020
	(Level 1)		(Level 2)		(Level 3)
Liabilities
Redemption feature	$	—	$	—	$	6,467,469
Warrant liability		—		—		53,592
	$	—	$	—	$	6,521,061

	September 30, 2019
	(Level 1)		(Level 2)		(Level 3)
Liabilities
Redemption feature	$	—	$	—	$	—
Warrant liability		—		—		255,734
	$	—	$	—	$	255,734

Schedule of changes in the fair value of Level 3 valuation for the warrant liability


			Redemption
	Warrants		Feature
Balance at October 1, 2019	$	255,734	$	—
Addition of feature on December 20, 2019		—		8,264,451
Change in fair value		(202,142)		(1,796,982)
Balance at March 31, 2020	$	53,592	$	6,467,469

Schedule of fair value of the warrant liability


	March 31, 2020			September 30, 2019
Risk-free interest rate		0.37	%		1.56	%
Remaining contractual life of warrant		4.88	years		5.38	years
Expected volatility		90.2	%		89.0	%
Annual dividend yield		0	%		0	%
Fair value of common stock	$	0.60	per share	$	1.49	per share

Property and Equipment, Net (Tables)

6 Months Ended

Mar. 31, 2020

Property and Equipment, Net

Schedule of property and equipment


	March 31,		September 30,
	2020		2019
Laboratory equipment	$	1,067,351	$	1,067,351
Leasehold improvements		160,086		160,086
Land and building		—		3,000,000
		1,227,437		4,227,437
Less: accumulated depreciation and amortization		(704,028)		(1,051,477)
	$	523,409	$	3,175,960

Accrued Expenses (Tables)

6 Months Ended

Mar. 31, 2020

Accrued Expenses

Schedule of accrued expenses


	March 31,		September 30,
	2020		2019
Compensation	$	347,094	$	919,394
Severance and related costs		121,357		505,570
Research and development		2,256,275		1,692,040
Interest payable		235,878		934,145
Professional fees		423,757		419,216
Lease termination obligation		3,938,994		—
Other accrued expenses		139,736		152,623
	$	7,463,091	$	4,622,988

Debt (Tables)

6 Months Ended

Mar. 31, 2020

Debt

Schedule of senior secured note


	March 31,		September 30,
	2020		2019
Convertible senior secured notes	$	7,589,027	$	6,699,000
Unamortized debt discount		(403,034)		—
	$	7,185,993	$	6,699,000

Other Indebtedness (Tables)

6 Months Ended

Mar. 31, 2020

Other Indebtedness

Schedule of other indebtedness


	March 31,		September 30,
	2020		2019
Unsecured notes	$	—	$	977,966
Equipment loans		75,073		98,487
		75,073		1,076,453
Less: current portion		(49,364)		(1,026,168)
Long-term debt	$	25,709	$	50,285

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Leases (Tables)

6 Months Ended

Mar. 31, 2020

Leases

Schedule of lease information

The components of lease cost for the three and six months ended March 31, 2020 are as follows:


	Three months ended March 31,		Six months ended March 31,
	2020		2020
Finance lease cost:
Amortization of right-of-use assets	$	75,000	$	150,000
Interest on lease liabilities		361,033		733,256
Total finance lease cost		436,033		883,256
Operating lease cost		43,625		87,250
Total lease cost	$	479,658	$	970,506

Amounts reported in the consolidated balance sheets for leases where the Company is the lessee as of March 31, 2020 were as follows:


	March 31, 2020
Operating leases:
Right-of-use asset	$	244,600
Operating lease liabilities		271,600
Finance leases:
Right-of-use asset	$	2,375,000
Financing lease liabilities		3,399,232
Weighted-average remaining lease term (years):
Operating leases		1.6
Finance leases		7.7
Weighted-average discount rate:
Operating leases		9.0%
Finance leases		43.0%

Other information related to leases for the six months ended March 31, 2020 are as follows:


	Six months ended March 31,
	2020
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows from finance leases	$	713,364
Operating cash flows from operating leases		93,750
Financing cash flows from finance leases		178,757
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—
Finance leases		—

Schedule of operating lease future minimum payments

Future minimum lease payments under non-cancelable leases as of March 31, 2020 are as follows for the years ending September 30:


	Operating leases		Finance leases
2020 (remaining six months)	$	93,750	$	746,636
2021		195,000		1,492,390
2022		—		1,535,809
2023		—		1,564,028
2024		—		1,597,371
Thereafter		—		5,753,515
Total undiscounted lease payments	$	288,750	$	12,689,749
Less: Imputed interest		17,150		9,290,517
Total lease obligations	$	271,600	$	3,399,232

Schedule of finance lease future minimum payments


	Operating leases		Finance leases
2020 (remaining six months)	$	93,750	$	746,636
2021		195,000		1,492,390
2022		—		1,535,809
2023		—		1,564,028
2024		—		1,597,371
Thereafter		—		5,753,515
Total undiscounted lease payments	$	288,750	$	12,689,749
Less: Imputed interest		17,150		9,290,517
Total lease obligations	$	271,600	$	3,399,232

Schedule of prior year minimum rental payments in operating leases


	Operating leases		Finance leases
2020	$	187,500	$	1,608,067
2021		195,000		1,506,592
2022		—		1,535,809
2023		—		1,564,027
2024		—		1,593,291
Thereafter		—		5,691,492
Total undiscounted lease payments	$	382,500	$	13,499,278
Less: Imputed interest		—		9,941,198
Total lease obligations	$	382,500	$	3,558,080

Schedule of prior year minimum rental payments in capital leases

Future minimum rental payments under non-cancelable leases prior to adoption of ASC 842, Leases, as of September 30, 2019 were as follows:


	Operating leases		Finance leases
2020	$	187,500	$	1,608,067
2021		195,000		1,506,592
2022		—		1,535,809
2023		—		1,564,027
2024		—		1,593,291
Thereafter		—		5,691,492
Total undiscounted lease payments	$	382,500	$	13,499,278
Less: Imputed interest		—		9,941,198
Total lease obligations	$	382,500	$	3,558,080

Schedule of future termination payment derecognized assets and liabilities associated with financing lease


	Balance		Expensed / Accrued		Cash		Balance
	October 1, 2019		Expense		Payments		March 31, 2020
Lease termination payments	$	3,909,448	$	329,546	$	(300,000)	$	3,938,994

Common Stock, Convertible Preferred Stock and Stockholders' Equity (Deficit) (Tables)

6 Months Ended

Mar. 31, 2020

Common Stock, Convertible Preferred Stock and Stockholders’ Equity (Deficit)

Schedule of warrants outstanding


	Shares of
	common stock
	issuable upon
	exercise of	Exercise Price
Expiration Date	warrants	Per Share
February 18, 2022	416,666	$	12.00
December 22, 2024	277,128	$	12.00
April 13, 2025	145,688	$	12.00
May 31, 2025	62,438	$	12.00
February 24, 2025	531,890	$	1.27
February 26, 2024	5,029,528	$	0.9535
	6,463,338

Stock-Based Compensation (Tables)

6 Months Ended

Mar. 31, 2020

Stock-Based Compensation

Schedule of stock-based compensation expense


	Three months ended March 31,				Six months ended March 31,
	2020		2019		2020		2019
Research and development	$	41,148	$	120,763	$	148,938	$	211,972
General and administrative		263,391		146,979		515,078		928,059
	$	304,539	$	267,742	$	664,016	$	1,140,031

Schedule of options to purchase common stock of Company outstanding under 2015 Plan


				Weighted
				Average
		Weighted		Remaining
	Number of	Average		Contractual
	Shares	Exercise Price		Term (Years)
Balance at October 1, 2019	1,389,999	$	3.46
Granted	1,040,810		1.00
Forfeited	(212,258)		2.87
Balance at March 31, 2020	2,218,551		2.36	9.4
Vested and exercisable	377,985		4.03	9.1
Vested and expected to vest at March 31, 2020	2,218,551	$	2.36	9.4

Schedule of weighted-average assumptions used in option pricing model for stock options


	Six months ended March 31,
	2020		2019
Risk-free interest rate	1.13	%	2.79	%
Expected life (years)	5.71		5.87
Expected volatility	89.2	%	88.8	%
Expected dividend yield	—		—

Schedule of performance-based stock units activity


				Weighted
				Average
	Number	Base		Remaining
	of	Price		Contractual
	PSUs	Per PSU		Term (Years)
Balance at October 1, 2019	15,691	$	49.97
Forfeitures	(13,221)		50.60
Balance at March 31, 2020	2,470		49.97	4.3
Vested and exercisable at March 31, 2020	2,470		49.97	4.3
Vested and expected to vest at March 31, 2020	2,470	$	49.97	4.3

Schedule of restricted stock units activity


		Weighted
	Number	Average
	of	Grant Date
	RSUs	Fair Value
Balance at October 1, 2019	109	$	96.00
Vested and settled	(109)		96.00
Balance at March 31, 2020	—	$	—

Liquidity (Details) - USD ($)			1 Months Ended		6 Months Ended
Liquidity (Details) - USD ($)	May 04, 2020	Dec. 11, 2019	May 13, 2020	Dec. 31, 2019	Mar. 31, 2020	Sep. 30, 2019
Liquidity [Line Items]
Stockholders’ deficit					$ (20,524,682)	$ (16,129,361)
Secured notes					7,800,000
Unsecured debt					3,600,000
Sale of unused net operating losses and research and development tax credits		$ 3,600,000
Proceeds from sale of net operating losses and research and development tax credits		$ 3,300,000			3,300,000
Proceeds from exercise of common stock warrants					$ 1,138,900
Senior Note Warrants
Liquidity [Line Items]
Carrying value of notes exchanged				$ 7,300,000
Senior Note Warrants \| Subsequent Event
Liquidity [Line Items]
Carrying value of notes exchanged			$ 831,932
Common stock issued up on conversion of stockholder notes (in shares)			1,626,456
Paycheck Protection Program \| Subsequent Event
Liquidity [Line Items]
Proceeds from loan	$ 900,000

Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Basic and diluted earnings per share:
Net loss attributable to common stockholders	$ (17,459,591)	$ (11,289,962)	$ (35,937,275)	$ (21,182,314)
Common stock outstanding (weighted average)	47,895,771	11,529,033	38,849,364	10,677,020
Basic and diluted net loss per share (in dollars per share)	$ (0.36)	$ (0.98)	$ (0.93)	$ (1.98)

Basis of Presentation and Summary of Significant Accounting Policies - Potentially dilutive securities (Details) - shares	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Series A-1 convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share		1,195,295
Senior Note Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share		957,482
Unsecured notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share		147,347
Stock-based performance units ("PSUs"),
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	2,470	16,131
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share		7,156
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	2,218,551	541,746
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	6,463,338	5,660,949

Basis of Presentation and Summary of Significant Accounting Policies - Additional information (Details) - USD ($)	Mar. 31, 2020	Oct. 01, 2019	Sep. 30, 2019
New accounting pronouncements
Operating lease right-of-use assets, net	$ 244,600
Operating leases, Lease obligation	288,750
Finance lease right-of-use assets, net	2,375,000
Finance leases, Lease obligation	12,689,749
Lease termination obligation	$ 3,938,994	$ 3,909,448	$ 3,909,448
ASU 2016-02 Leases \| Restatement adjustment
New accounting pronouncements
Assumed discount rate (as a percent)		9.00%
Operating lease right-of-use assets, net		$ 352,172
Operating leases, Lease obligation		318,672
Deferred rent		33,500
Finance lease right-of-use assets, net		2,525,000
Finance leases, Lease obligation		$ 3,558,080

Fair Value Measurements (Details) - USD ($)	Mar. 31, 2020	Sep. 30, 2019
Liabilities
Warrant liability	$ 53,592	$ 255,734
Fair value measurements recurring basis \| Level 1
Liabilities
Fair value of liabilities	0	0
Fair value measurements recurring basis \| Level 1 \| Redemption feature
Liabilities
Derivative liability fair value	0	0
Fair value measurements recurring basis \| Level 1 \| Warrant
Liabilities
Derivative liability fair value	0	0
Fair value measurements recurring basis \| Level 2
Liabilities
Fair value of liabilities	0	0
Fair value measurements recurring basis \| Level 2 \| Redemption feature
Liabilities
Derivative liability fair value	0	0
Fair value measurements recurring basis \| Level 2 \| Warrant
Liabilities
Derivative liability fair value	0	0
Fair value measurements recurring basis \| Level 3
Liabilities
Fair value of liabilities	6,521,061	255,734
Fair value measurements recurring basis \| Level 3 \| Redemption feature
Liabilities
Derivative liability fair value	6,467,469	0
Fair value measurements recurring basis \| Level 3 \| Warrant
Liabilities
Derivative liability fair value	$ 53,592	$ 255,734

Fair Value Measurements - Changes in fair value (Details)	6 Months Ended
	Mar. 31, 2020 USD ($)
Warrant
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning	$ 255,734
Change in fair value	(202,142)
Balance, ending	53,592
Redemption feature
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning	0
Issuance	8,264,451
Change in fair value	(1,796,982)
Balance, ending	$ 6,467,469

Fair Value Measurements - Assumptions (Details)	Mar. 31, 2020 $ / shares USD ($)	Sep. 30, 2019 $ / shares USD ($)
Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant inputs	0.37	1.56
Remaining contractual life of warrant
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant inputs	4.88	5.38
Remaining contractual life of warrant \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Redemption feature input	1
Remaining contractual life of warrant \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Redemption feature input	2
Expected volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant inputs	90.2	89.0
Redemption feature input	130
Annual dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant inputs	0	0
Fair value of common stock
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant inputs \| $ / shares	0.60	1.49

Property and Equipment, Net (Details) - USD ($)	Mar. 31, 2020	Sep. 30, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,227,437	$ 4,227,437
Less: accumulated depreciation and amortization	(704,028)	(1,051,477)
Property and equipment, net	523,409	3,175,960
Laboratory equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,067,351	1,067,351
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	160,086	160,086
Land and building
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 0	$ 3,000,000

Property and Equipment, Net - Additional information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 63,775	$ 816,541	$ 127,551	$ 1,639,618
Finance leases, Right-of-use asset	$ 2,375,000		$ 2,375,000
Finance leases, Weighted-average discount rate (as a percent)	43.00%		43.00%
Finance lease accumulated amortization					$ 475,000
Impairment of property and equipment	$ 423,328	$ 561,735	$ 423,328	$ 2,911,138
Land and building
Property, Plant and Equipment [Line Items]
Finance leases, Right-of-use asset					$ 3,000,000
Finance leases, Weighted-average discount rate (as a percent)					43.90%

Accrued Expenses (Details) - USD ($)	Mar. 31, 2020	Sep. 30, 2019
Accrued Expenses
Compensation	$ 347,094	$ 919,394
Severance and related costs	121,357	505,570
Research and development	2,256,275	1,692,040
Interest payable	235,878	934,145
Professional fees	423,757	419,216
Lease termination obligation	3,938,994
Other accrued expenses	139,736	152,623
Accrued expenses, total	$ 7,463,091	$ 4,622,988

Debt (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019
Debt Instrument [Line Items]
Senior secured notes	$ 7,185,993		$ 6,699,000
Senior Note Warrants
Debt Instrument [Line Items]
Senior secured notes	7,589,027	$ 7,600,000	6,699,000
Unamortized debt discount	(403,034)		0
Senior secured notes	$ 7,185,993		$ 6,699,000

Debt - Additional information (Details)	1 Months Ended	3 Months Ended		6 Months Ended
Debt - Additional information (Details)	Dec. 31, 2019 USD ($) D item	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2020 USD ($) D $ / shares	Mar. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)
Debt Instrument [Line Items]
Convertible Senior Secured Notes.		$ 7,185,993		$ 7,185,993		$ 6,699,000
Redemption feature		6,467,469		6,467,469
Loss on extinguishment of debt			$ (183,554)	(8,060,580)	$ (183,554)
Stockholder notes		3,612,500		3,612,500		3,612,500
Senior Note Warrants
Debt Instrument [Line Items]
Carrying value of notes exchanged	$ 7,300,000
Convertible Senior Secured Notes.		7,185,993		$ 7,185,993		$ 6,699,000
Bank exchange fee	$ 300,000
Interest rate (as a percent)	12.00%
Extension fee (as a percent)	3.00%
Stock price threshold (as a percent)	90.00%
Number of lowest closing bid prices \| item	2
Trading day threshold \| D	20
Floor price \| $ / shares				$ 0.232
Consecutive trading days \| D	20			20
Redemption feature	$ 8,300,000
Cash redemption		350,000		$ 350,000
Loss on extinguishment of debt				(8,100,000)
Interest expense		348,541	$ 561,485	550,062	$ 1,162,917
Restricted stock purchase notes
Debt Instrument [Line Items]
Stockholder notes		800,000		800,000
Common stock repurchase note
Debt Instrument [Line Items]
Stockholder notes		$ 2,812,500		$ 2,812,500

Other Indebtedness (Details)	3 Months Ended		6 Months Ended
Other Indebtedness (Details)	Mar. 31, 2020 USD ($) item $ / shares	Mar. 31, 2019 USD ($)	Mar. 31, 2020 USD ($) item $ / shares shares	Mar. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Mar. 07, 2019 USD ($)
Debt Instrument [Line Items]
Total other indebtedness	$ 75,073		$ 75,073		$ 1,076,453
Less: current portion	(49,364)		(49,364)		(1,026,168)
Long-term debt	25,709		25,709		50,285
Stockholder notes	3,612,500		3,612,500		3,612,500
Loss on extinguishment of debt		$ (183,554)	(8,060,580)	$ (183,554)
Unsecured notes
Debt Instrument [Line Items]
Total other indebtedness	$ 0		$ 0		977,966	$ 1,947,133
Original principal amount						$ 1,000,000
Monthly stated interest rate						2.50%
Interest rate (as a percent)	12.00%		12.00%
Conversion rate per share \| $ / shares	$ 13.44		$ 13.44
Stock price threshold (as a percent)			95.00%
Number of lowest closing bid prices \| item	2		2
Trading day threshold			20
Carrying value of notes exchanged			$ 977,966
Accrued interest of notes exchanged			$ 570,460
Common stock issued up on conversion of stockholder notes (in shares) \| shares			1,475,258
Weighted average exchange price (per share) \| $ / shares	$ 1.10		$ 1.10
Interest expense	$ 0	$ 63,576	$ 12,997	$ 136,576
Equipment loan
Debt Instrument [Line Items]
Total other indebtedness	$ 75,073		$ 75,073		$ 98,487

Leases - Lease cost (Details)	3 Months Ended	6 Months Ended
Leases - Lease cost (Details)	Mar. 31, 2020 USD ($) item	Mar. 31, 2020 USD ($) item
Lease cost
Amortization of right-of-use assets	$ 75,000	$ 150,000
Interest on lease liabilities	361,033	733,256
Total finance lease cost	436,033	883,256
Operating lease cost	43,625	87,250
Total lease cost	$ 479,658	$ 970,506
Land and building
Leases
Number of lease renewal options \| item	2	2
Lessee, Finance Lease, Renewal Term	5 years	5 years
Laboratory equipment \| Minimum
Leases
Finance lease term	12 months	12 months
Finance lease interest (as a percent)	4.00%	4.00%
Laboratory equipment \| Maximum
Leases
Finance lease term	36 months	36 months
Finance lease interest (as a percent)	13.00%	13.00%

Leases - Lease balance sheet (Details)	Mar. 31, 2020 USD ($)
Leases
Operating leases, Right-of-use asset	$ 244,600
Operating leases, Lease obligation	271,600
Finance leases, Right-of-use asset	2,375,000
Finance leases, Lease obligation	$ 3,399,232
Operating leases, Weighted-average remaining lease term	1 month 18 days
Finance leases, Weighted-average remaining lease term	7 months 21 days
Operating leases, Weighted-average discount rate (as a percent)	9.00%
Finance leases, Weighted-average discount rate (as a percent)	43.00%

Leases - Lease cashflow (Details) - USD ($)	6 Months Ended
Leases - Lease cashflow (Details) - USD ($)	Mar. 31, 2020	Mar. 31, 2019
Leases
Operating cash flows from finance leases	$ 713,364
Operating cash flows from operating leases	93,750
Financing cash flows from finance leases	$ 178,757	$ 415,697
Right-of-use assets obtained in exchange for finance lease obligations		$ 48,682

Leases - Lease minimum payments (Details)	Mar. 31, 2020 USD ($)
Operating leases
2020 (remaining six months)	$ 93,750
2021	195,000
2022	0
2023	0
2024	0
Thereafter	0
Total undiscounted lease payments	288,750
Less: Imputed interest	17,150
Total lease obligations	271,600
Finance leases
2020 (remaining nine months)	746,636
2021	1,492,390
2022	1,535,809
2023	1,564,028
2024	1,597,371
Thereafter	5,753,515
Total undiscounted lease payments	12,689,749
Less: Imputed interest	9,290,517
Total lease obligations	$ 3,399,232

Leases - Prior year minimum payments (Details)	Sep. 30, 2019 USD ($)
Operating lease minimum payments
2020	$ 187,500
2021	195,000
Total operating lease obligations	382,500
Capital lease minimum payments
2020	1,608,067
2021	1,506,592
2022	1,535,809
2023	1,564,027
2024	1,593,291
Thereafter	5,691,492
Total undiscounted lease payments	13,499,278
Less: Imputed interest	9,941,198
Total capital lease obligations	$ 3,558,080

Leases - Lease termination (Details) - USD ($)	1 Months Ended
Leases - Lease termination (Details) - USD ($)	Aug. 31, 2018	Mar. 31, 2020	Oct. 01, 2019	Sep. 30, 2019
Leases
Consideration for termination of lease	$ 5,800,000
Amount of execution of termination agreement	287,615
Payment for lease per month	$ 50,000
Terms of payment for lease	30 months
Lease payment in any event	$ 4,000,000
Security deposit	$ 174,250
Lease termination payments included in other liabilities on the consolidated balance sheets		$ 3,938,994	$ 3,909,448	$ 3,909,448

Leases - Lease termination rollforward (Details)	6 Months Ended
Leases - Lease termination rollforward (Details)	Mar. 31, 2020 USD ($)
Lease termination obligation
Balance, beginning	$ 3,909,448
Expensed / Accrued Expense	329,546
Cash Payments	(300,000)
Balance, ending	$ 3,938,994

Common Stock, Convertible Preferred Stock and Stockholders' Equity (Deficit) - Common Stock (Details)		1 Months Ended	6 Months Ended
	Mar. 19, 2020 item shares	Feb. 29, 2020 USD ($) $ / shares shares	Mar. 31, 2019 USD ($) shares	Mar. 31, 2020 USD ($) shares	Jan. 27, 2020 individual	Sep. 30, 2019 USD ($)
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Sale of common stock (in shares)	7,244,739		2,680,390
Number of warrants issued				6,463,338
Net proceeds \| $			$ 19,800,000
Warrants outstanding \| $				$ 53,592		$ 255,734
Number of principals \| item	4
Number of executive officers	2				2
Direct registered offering
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Sale of common stock (in shares)		7,598,426
Number of warrants issued		3,799,213
Shares issued, price per share \| $ / shares		$ 1.016
Net proceeds \| $		$ 6,700,000
Private Placement
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Sale of common stock (in shares)		2,460,630
Number of warrants issued		1,230,315
Shares issued, price per share \| $ / shares		$ 1.016
Net proceeds \| $		$ 2,500,000
Exercise price per share \| $ / shares		$ 0.9535
Warrants exercise term		4 years
Placement Agent
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Number of warrants issued		531,890
Exercise price per share \| $ / shares		$ 1.27
Warrants exercise term		5 years

Common Stock, Convertible Preferred Stock and Stockholders' Equity (Deficit) - Stock (Details) - USD ($)			1 Months Ended	3 Months Ended	6 Months Ended
	Mar. 23, 2020	Mar. 19, 2020	Feb. 29, 2020	Mar. 31, 2020	Mar. 31, 2020	Mar. 31, 2019	Mar. 22, 2020	Jan. 27, 2020	Dec. 23, 2019	Sep. 30, 2019	Apr. 12, 2019
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Number of share issued		7,244,739				2,680,390
Gross cash proceeds						$ 20,000,000
Issuance of vested restricted stock units (in shares)					109	446
Deemed dividend upon amendment of the terms of the Series A-1 convertible preferred stock				$ 10,328,118	$ 10,328,118
Series A convertible preferred stock
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Convertible preferred stock, shares authorized				1,000,000	1,000,000					1,000,000
Convertible preferred stock outstanding				0	0					0
Convertible Preferred Stock Series A-1
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Number of share issued	29,358,621
Convertible preferred stock, shares authorized				200,000	200,000					200,000
Shares issued, price per share				$ 100.00	$ 100.00
Dividend rate					10.00%
Number of Series A convertible stock converted	68,112
Debt Instrument, Convertible, Conversion Price	$ 431.03447263						$ 18.89797
Deemed dividend upon amendment of the terms of the Series A-1 convertible preferred stock					$ 10,328,118
Convertible preferred stock outstanding				0	0					66,451
Preferred stock issued to settle dividends (in shares)				1,661		3,047
Warrant
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Number of share issued				13,003,414
Exercise price per share	$ 0.232			$ 0.232	$ 0.232			$ 0.232	$ 0.2320		$ 2.90
Private Placement
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Number of share issued			2,460,630
Shares issued, price per share			$ 1.016
Exercise price per share			$ 0.9535

Common Stock, Convertible Preferred Stock and Stockholders' Equity (Deficit) - Warrants summary (Details)	Mar. 31, 2020 $ / shares shares
Class of Warrant or Right [Line Items]
Shares of common stock issuable upon exercise of warrants	6,463,338
February 18, 2022
Class of Warrant or Right [Line Items]
Shares of common stock issuable upon exercise of warrants	416,666
Exercise price per share \| $ / shares	$ 12.00
December 22, 2024
Class of Warrant or Right [Line Items]
Shares of common stock issuable upon exercise of warrants	277,128
Exercise price per share \| $ / shares	$ 12.00
April 13, 2025
Class of Warrant or Right [Line Items]
Shares of common stock issuable upon exercise of warrants	145,688
Exercise price per share \| $ / shares	$ 12.00
May 31, 2025
Class of Warrant or Right [Line Items]
Shares of common stock issuable upon exercise of warrants	62,438
Exercise price per share \| $ / shares	$ 12.00
February 24, 2025
Class of Warrant or Right [Line Items]
Shares of common stock issuable upon exercise of warrants	531,890
Exercise price per share \| $ / shares	$ 1.27
February 26, 2024
Class of Warrant or Right [Line Items]
Shares of common stock issuable upon exercise of warrants	5,029,528
Exercise price per share \| $ / shares	$ 0.9535

Common Stock, Convertible Preferred Stock and Stockholders' Equity (Deficit) - Warrants (Details) - USD ($)			3 Months Ended		6 Months Ended
	Mar. 19, 2020	Jan. 27, 2020	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Mar. 23, 2020	Dec. 23, 2019	Apr. 12, 2019
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Shares of common stock issuable upon exercise of warrants			6,463,338		6,463,338
Net proceeds						$ 19,800,000
Deemed dividend upon modification of warrants			$ 1,431,406	$ 829,530	$ 3,140,009	$ 829,530
Number of share issued	7,244,739					2,680,390
Common stock repurchase note
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Number of share issued			10,059,056		10,059,056
Warrant
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Exercise price per share		$ 0.232	$ 0.232		$ 0.232		$ 0.232	$ 0.2320	$ 2.90
Shares of common stock issuable upon exercise of warrants		4,657,852	15,085,240		15,085,240
Net proceeds		$ 1,100,000
Number of share issued			13,003,414
Warrant expired (in shares)			80,797		80,797
Warrants expired (in dollars per share)			$ 0.08		$ 0.08
Warrant, 15 Months
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Warrants exercise term								15 months
Shares of common stock issuable upon exercise of warrants			10,157,050		10,157,050
Warrant, 5 Years
Convertible Preferred Stock And Stockholders' Equity (Deficit) [Line Items]
Warrants exercise term								5 years

Stock-Based Compensation - Additional information (Details)	6 Months Ended
	Mar. 31, 2020 shares
Stock-based performance units ("PSUs"),
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of award	10 years
2011 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock reserved for issuance	106,490
2011 Equity Incentive Plan \| Stock-based performance units ("PSUs"),
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding	2,470
2015 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of common stock authorized for issuance	4,022,526
Number of shares available for grant	1,634,323
Term of award	10 years
2015 Equity Incentive Plan \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
2015 Equity Incentive Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years

Stock-Based Compensation - Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
Stock-Based Compensation - Expense (Details) - USD ($)	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 304,539	$ 267,742	$ 664,016	$ 1,140,031
Accrued directors' fees settled in fully vested stock options			49,121	49,121
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	41,148	120,763	148,938	211,972
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 263,391	$ 146,979	$ 515,078	$ 928,059

Stock-Based Compensation - Stock option activity (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020
Number of Shares
Balance, Beginning			1,389,999
Granted			1,040,810
Forfeited			(212,258)
Balance, Ending	2,218,551		2,218,551
Vested and exercisable	377,985		377,985
Vested and expected to vest	2,218,551		2,218,551
Weighted Average Exercise Price
Balance, Beginning			$ 3.46
Granted			1.00
Forfeited			2.87
Balance, Ending	$ 2.36		2.36
Vested and exercisable	4.03		4.03
Vested and expected to vest	$ 2.36		$ 2.36
Other option information
Balance			9 years 4 months 24 days
Vested and exercisable			9 years 1 month 6 days
Vested and expected to vest			9 years 4 months 24 days
Aggregate intrinsic value	$ 29,177		$ 29,177
Weighted average grant date fair value of the options awarded to employees	$ 0.72	$ 6.36

Stock-Based Compensation - Option Assumptions (Details) - Stock options - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.13%	2.79%
Expected life (years)	5 years 8 months 16 days	5 years 10 months 13 days
Expected volatility	89.20%	88.80%
Expected dividend yield	0.00%	0.00%
Unrecognized compensation expense	$ 2,431,719
Weighted average exercise period of unrecognized compensation	2 years 10 months 2 days

Stock-Based Compensation - Performance-Based (Details) - Stock-based performance units ("PSUs"),	6 Months Ended
	Mar. 31, 2020 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of award	10 years
Number of PSUs
Balance, Beginning \| shares	15,691
Forfeitures \| shares	13,221
Balance, Ending \| shares	2,470
Vested and exercisable \| shares	2,470
Vested and expected to vest \| shares	2,470
Weighted Average Base Price Per Unit
Balance, Beginning \| $ / shares	$ 49.97
Forfeitures \| $ / shares	50.60
Balance, Ending \| $ / shares	49.97
Vested and exercisable \| $ / shares	49.97
Vested and expected to vest \| $ / shares	$ 49.97
Weighted average remaining contractual term, Outstanding	4 years 3 months 18 days
Weighted average remaining contractual term, Vested and exercisable	4 years 3 months 18 days
Weighted average remaining contractual term, Vested and expected to vest	4 years 3 months 18 days

Stock-Based Compensation - Restricted stock units (Details) - Restricted stock units	6 Months Ended
	Mar. 31, 2020 $ / shares shares
Number of RSUs
Balance, Beginning \| shares	109
Vested and settled \| shares	(109)
Balance, Ending \| shares	0
Weighted Average Grant Date Fair Value
Balance, Beginning \| $ / shares	$ 96.00
Vested and settled \| $ / shares	96.00
Balance, Ending \| $ / shares	$ 0.00

Stock-Based Compensation - Restricted stock (Details)			3 Months Ended		6 Months Ended
Stock-Based Compensation - Restricted stock (Details)	Mar. 19, 2020 item shares	Jan. 27, 2020 item $ / shares shares	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of principals \| item	4
Number of share issued \| shares	7,244,739					2,680,390
Stock-based compensation expense \| $			$ 304,539	$ 267,742	$ 664,016	$ 1,140,031
MTTR, LLC (“MTTR”)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of principals \| item		4
Number of share issued \| shares		7,244,739
Restricted Stock \| MTTR, LLC (“MTTR”)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of principals \| item		4
Number of share issued \| shares		7,244,739
Term following the FDA approval		6 months
Share repurchase price \| $ / shares		$ 0.01
Grant date fair value of share \| $ / shares		$ 0.54
Explicit service period		4 years 9 months 18 days
Stock-based compensation expense \| $			78,984		78,984
Unamortized expense to be recognized of stock awards other than options \| $			$ 3,833,176		$ 3,833,176
Restricted Stock \| MTTR, LLC (“MTTR”) \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Repurchase right lapses on shares (as a percent)		50.00%
Restricted Stock \| MTTR, LLC (“MTTR”) \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Repurchase right lapses on shares (as a percent)		100.00%

Related-Party Transactions (Details)			3 Months Ended		6 Months Ended
Related-Party Transactions (Details)	Mar. 19, 2020 item shares	Jan. 27, 2020 USD ($) item individual shares	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($) shares	Sep. 30, 2019 USD ($)
Related Party Transaction [Line Items]
Number of principals \| item	4
Number Of Executive Officers	2	2
Shares issued during period \| shares	7,244,739					2,680,390
MTTR, LLC (“MTTR”)
Related Party Transaction [Line Items]
Number of principals \| item		4
Shares issued during period \| shares		7,244,739
Contract termination settlement fee		$ 110,000
Related party expense			$ 169,347	$ 290,431	$ 780,771	$ 580,911
Due to related party, current			$ 0		$ 0		$ 365,301

Subsequent Event (Details) $ in Millions			1 Months Ended	3 Months Ended
Subsequent Event (Details) $ in Millions	May 06, 2020 USD ($) ft²	May 04, 2020 USD ($)	Aug. 31, 2018 USD ($)	Jun. 30, 2020 USD ($)
Subsequent Event
Consideration for termination of lease			$ 5.8
Terms of payment for lease			30 months
Subsequent Event
Subsequent Event
Area of property under lease termination \| ft²	66,000
Amount of reduction in cash	$ 14.0
Consideration for termination of lease	$ 1.0
Terms of payment for lease	8 months
Percentage of consideration late payment percentage	7.00%
Loss on lease termination				$ (0.6)
Subsequent Event \| Paycheck Protection Program
Subsequent Event
Proceeds from loan		$ 0.9
Deferral term		6 months
Debt Instrument, term		2 years
Interest rate (as a percent)		1.00%