Document And Entity Information	3 Months Ended
Document And Entity Information	Dec. 31, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	Oncobiologics, Inc.
Entity Central Index Key	0001649989
Trading Symbol	ons
Entity Filer Category	Smaller Reporting Company
Document Type	S-1
Document Period End Date	Dec. 31, 2016
Amendment Flag	false

Consolidated Balance Sheets - USD ($)	Dec. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Current assets:
Cash	$ 2,078,535	$ 2,351,887	$ 9,070,975
Accounts receivable			20,000
Stock subscription receivable			4,280,149
Prepaid and other current assets	1,095,976	3,326,607	1,793,109
Total current assets	3,174,511	5,678,494	15,164,233
Property and equipment, net	16,440,919	16,958,553	17,759,938
Restricted cash		216,086	213,663
Deferred offering costs			960,563
Other assets	830,887	852,801	910,224
Total assets	20,446,317	23,705,934	35,008,621
Current liabilities:
Senior secured notes	4,933,661
Current portion of debt	110,394	586,454	742,646
Current portion of capital lease obligations	1,014,563	977,248	862,849
Current portion of stockholder notes	4,612,500	4,612,500	14,214,196
Accounts payable	11,049,027	5,071,520	11,563,055
Accrued expenses	7,342,102	6,121,942	5,924,648
Income taxes payable	1,854,629	1,854,629	1,754,629
Deferred revenue	1,212,561	1,212,561	1,979,576
Total current liabilities	32,129,437	20,436,854	37,041,599
Long-term debt	191,236	2,233,803	2,922,764
Capital lease obligations	113,082	320,737	1,219,373
Warrant liability	4,128,727
Stockholder notes			2,000,000
Deferred revenue	4,850,244	5,153,384	6,365,945
Stock-based compensation liability			12,726,722
Other liabilities	865,526	761,334	284,710
Total liabilities	42,278,252	28,906,112	62,561,113
Commitments (Note 9)
Redeemable preferred stock, common stock and noncontrolling interests:
Redeemable common stock - 1,739,130 shares issued and outstanding at September 30, 2015			15,426,673
Redeemable noncontrolling interests			1,703,777
Total redeemable preferred stock, common stock and noncontrolling interests			27,321,311
Stockholders' equity (deficit):
Series A preferred stock, par value $0.01 per share: 10,000,000 shares authorized, no shares issued and outstanding
Common stock value	235,881	228,028	39,844,900
Additional paid-in capital	144,424,554	141,965,342
Accumulated deficit	(166,492,370)	(147,393,548)	(94,064,286)
Total Oncobiologics, Inc. stockholders' equity (deficit)	(21,831,935)	(5,200,178)	(54,219,386)
Noncontrolling interests			(654,417)
Total stockholders' equity (deficit)		(5,200,178)	(54,873,803)
Total liabilities, redeemable preferred stock, common stock, noncontrolling interests and stockholders' equity (deficit)	20,446,317	23,705,934	35,008,621
Series A redeemable preferred stock
Redeemable preferred stock, common stock and noncontrolling interests:
Redeemable preferred stock			5,072,653
Series B redeemable preferred stock
Redeemable preferred stock, common stock and noncontrolling interests:
Redeemable preferred stock			$ 5,118,208
Common stock repurchase note
Stockholders' equity (deficit):
Total Oncobiologics, Inc. stockholders' equity (deficit)	$ 235,881	$ 228,028

Consolidated Balance Sheets (Parentheticals) - $ / shares	Dec. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000	10,000,000
Preferred stock, shares issued	0	0	0
Preferred stock, shares outstanding	0	0	0
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, no par value (in dollars per share)		$ 0	$ 0
Common stock, shares authorized	200,000,000	200,000,000	100,000,000
Common stock, shares, issued	23,588,031	22,802,778	9,436,294
Common stock, shares, outstanding	23,588,031	22,802,778	9,436,294
Redeemable stock, shares issued		0	1,739,130
Redeemable stock, shares outstanding		0	1,739,130
Series A redeemable preferred stock
Redeemable stock, shares authorized		0	8,000
Redeemable stock, shares issued		0	3,568
Redeemable stock, shares outstanding		0	3,568
Series B redeemable preferred stock
Redeemable stock, shares authorized		0	4,000
Redeemable stock, shares issued		0	4,000
Redeemable stock, shares outstanding		0	4,000

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Collaboration revenues	$ 303,140	$ 994,894	$ 2,979,576	$ 5,219,237
Operating expenses:
Research and development	13,312,306	12,733,976	33,101,543	38,876,040
General and administrative	4,888,860	4,674,155	21,636,345	12,905,823
Operating expenses total	18,201,166	17,408,131	54,737,888	51,781,863
Loss from operations	(17,898,026)	(16,413,237)	(51,758,312)	(46,562,626)
Interest expense, net	386,713	398,975	1,467,950	2,297,339
Change in fair value of warrant liability	810,083
Loss before income taxes	(19,094,822)	(16,812,212)	(53,226,262)	(48,859,965)
Income tax expense (benefit)	4,000	52,000	103,000	(190,111)
Net loss			(53,329,262)	(48,669,854)
Less: Net loss attributable to noncontrolling interests				(1,276,571)
Net loss attributable to Oncobiologics, Inc.	(19,098,822)	(16,864,212)	(53,329,262)	(47,393,283)
Accretion of redeemable preferred stock and noncontrolling interests		(939,539)	(2,463,160)	(4,306,488)
Deemed dividends upon the repurchase of Series A redeemable preferred stock and redeemable noncontrolling interests				(1,298,631)
Deemed dividend upon issuance of warrants to common stockholders			(7,373,820)
Net loss attributable to common stockholders of Oncobiologics, Inc.	$ (19,098,822)	$ (17,803,751)	$ (63,166,242)	$ (52,998,402)
Per share information:
Net loss per share of common stock, basic and diluted (in dollars per share)	$ (0.82)	$ (1.36)	$ (3.67)	$ (5.43)
Weighted average shares outstanding, basic and diluted (in shares)	23,196,959	13,061,557	17,212,983	9,753,616

Consolidated Statements of Redeemable Preferred Stock, Common Stock, Noncontrolling Interests and Stockholders' Equity (Deficit) -(Unaudited) - USD ($)	Redeemable Preferred Stock, Common Stock and Noncontrolling Interests Preferred Stock Series A	Redeemable Preferred Stock, Common Stock and Noncontrolling Interests Preferred Stock Series B	Redeemable Preferred Stock, Common Stock and Noncontrolling Interests Common stock	Redeemable Preferred Stock, Common Stock and Noncontrolling Interests Noncontrolling Interests	Preferred Stock Series A	Common stock	Additional Paid-in Capital	Accumulated Deficit	Noncontrolling Interests	Total
Balance at Sep. 30, 2014	$ 4,787,996	$ 4,589,872	$ 12,225,096	$ 3,101,047				$ (45,151,218)		$ (45,151,218)
Balance (in shares) at Sep. 30, 2014	3,681	4,000	1,739,130			7,670,783
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Distribution of common stock in Sonnet Biotherapeutics, Inc. to stockholders								(221,154)	221,154
Contributions to noncontrolling interests									401,000	401,000
Repurchase of Series A redeemable preferred stock and deemed dividends	$ (142,370)			(1,546,818)				(83,631)		(83,631)
Repurchase of Series A redeemable preferred stock and deemed dividends (in shares)	(113)
Repurchase of redeemable noncontrolling interests and deemed dividends								(1,215,000)		(1,215,000)
Issuance of vested restricted stock units
Sale of common stock, net of issuance costs						$ 44,142,463				44,142,463
Sale of common stock, net of issuance costs (in shares)						1,765,511
Accretion of redeemable common stock	$ 427,027	$ 528,336	$ 3,201,577	149,548		$ (4,306,488)				(4,306,488)
Stock-based compensation expense						8,925				8,925
Net loss										(47,393,283)
Balance at Sep. 30, 2015	$ 5,072,653	$ 5,118,208	$ 15,426,673	1,703,777		$ 39,844,900		(94,064,286)	(654,417)	(54,873,803)
Balance (in shares) at Sep. 30, 2015	3,568	4,000	1,739,130			9,436,294
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Deconsolidation of Sonnet Biotherapeutics, Inc.									654,417	654,417
Employee tax withholdings related to the vesting of restricted stock						$ (71,760)				(71,760)
Employee tax withholdings related to the vesting of restricted stock (in shares)						(2,782)
Sale of common stock, net of issuance costs						$ 5,734	16,132,179			16,137,913
Sale of common stock, net of issuance costs (in shares)						573,388
Accretion of redeemable common stock			$ 2,463,160				(2,463,160)			(2,463,160)
Reincorporation to a Delaware Corporation	$ (5,072,653)	$ (5,118,208)			$ 102	$ (39,656,869)	49,847,628			10,190,861
Reincorporation to a Delaware Corporation (in shares)	(3,568)	(4,000)			10,193	2,193,601
Issuance of common stock upon the dissolution of Parilis				(1,703,777)	$ 16	$ 2,267	1,701,494			1,703,777
Issuance of common stock upon the dissolution of Parilis (in shares)					1,626	226,663
Reclassification of stock-based compensation liability							15,118,584			15,118,584
Sale of common stock units upon consummation of initial public offering and concurrent private placement, net of issuance costs						$ 66,667	33,717,538	33,784,205		33,784,205
Sale of common stock units upon consummation of initial public offering and concurrent private placement, net of costs (in shares)						6,666,666
Reclassification of redeemable common stock upon consummation of the initial public offering			$ (17,889,833)			$ 17,391	17,872,442			17,889,833
Reclassification of redeemable common stock upon consummation of the initial public offering (In shares)			(1,739,130)			1,739,130
Conversion of Series A preferred stock in connection with the initial public offering					$ (118)	$ 19,698	(19,580)
Conversion of Series A preferred stock in connection with the initial public offering (in shares)					(11,819)	1,969,818
Stock-based compensation expense							10,058,217			10,058,217
Net loss										(53,329,262)
Balance at Sep. 30, 2016						$ 228,028	$ 141,965,342	(147,393,548)		(5,200,178)
Balance (in shares) at Sep. 30, 2016						22,802,778	141,965,342
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Proceeds from exercise of common stock warrants						$ 3,013				3,013
Proceeds from exercise of common stock warrants (in shares)						301,340
Issuance of vested restricted stock units						$ 4,840	$ (4,840)
Issuance of vested restricted stock units (in shares)						483,913
Stock-based compensation expense							$ 2,464,052			2,464,052
Net loss								$ (19,098,822)		$ (19,098,822)
Balance (in shares) at Dec. 31, 2016						23,588,031

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Sep. 30, 2015
OPERATING ACTIVITIES
Net loss	$ (19,098,822)	$ (16,864,212)	$ (53,329,262)	$ (47,393,283)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	669,780	593,977	2,394,279	1,824,600
Non-cash interest expense	140,820	3,065	13,465	12,264
Stock-based compensation	2,464,052	2,490,034	12,450,079	11,177,858
Change in fair value of warrant liability	810,083
Loss on disposal of fixed assets			13,647
Changes in operating assets and liabilities:
Accounts receivable		(83,090)	20,000	(20,000)
Prepaid expenses and other current assets	2,230,631	142,073	(1,533,498)	(1,021,852)
Other assets	21,914	5,433	57,423	(322,729)
Accounts payable	5,898,662	(233,942)	(5,326,374)	6,580,722
Accrued expenses	1,220,160	2,203,188	1,154,712	2,240,800
Income taxes payable		50,000	100,000	190,218
Deferred revenue	(303,140)	(494,894)	(1,979,576)	530,763
Other liabilities	104,192	176,087	482,433	1,010
Net cash used in operating activities	(5,841,668)	(12,012,281)	(45,482,672)	(27,476,200)
INVESTING ACTIVITIES
Purchase of property and equipment	(148,362)	(364,242)	(1,098,180)	(8,804,244)
Net cash used in investing activities	(148,362)	(364,242)	(1,098,180)	(8,804,244)
FINANCING ACTIVITIES
Repurchase of Series A redeemable preferred stock				(226,001)
Proceeds from the sale of common stock, net of offering costs		11,318,690	16,137,913	41,249,998
Payment of debt issuance costs	(40,000)
Proceeds from sale of common stock units in connection with initial public offering and private placement			37,074,996
Payment of offering costs and common stock issuance costs			(4,637,647)
Proceeds from subscriptions receivable		4,280,149	4,280,149
Proceeds from future stock issuance		50,520
Proceeds from exercise of common stock warrants	3,013
Proceeds from the sale of equity in noncontrolling interest				401,000
Proceeds from stockholders notes	8,350,000			10,880,252
Payments of capital leases obligations	(232,570)	(222,652)	(884,620)	(686,676)
Proceeds from debt			200,416
Repayment of debt	(2,579,851)	(180,058)	(1,059,034)	(725,598)
Repayment of stockholder notes		(6,073,383)	(11,601,696)	(7,888,658)
Change in restricted cash	216,086		(2,423)	(2,211)
Proceeds from Sonnet Biotherapeutics, Inc.		187,388	826,561
Deconsolidation of Sonnet Biotherapeutics, Inc.		(401,091)	(401,091)
Payment of employee tax withholdings related to the vesting of restricted stock		(71,760)	(71,760)
Net cash provided by financing activities	5,716,678	8,887,803	39,861,764	43,002,106
Net (decrease) increase in cash	(273,352)	(3,488,720)	(6,719,088)	6,721,662
Cash at beginning of year	2,351,887	9,070,975	9,070,975	2,349,313
Cash at end of year	2,078,535	5,582,255	2,351,887	9,070,975
Supplemental disclosure of cash flow information
Cash paid for interest	221,266	407,403	1,477,913	1,402,209
Cash paid for income taxes		2,000	3,000	2,250
Supplemental schedule of noncash investing activities:
Purchases of property and equipment in accounts payable and accrued expenses	(20,711)	(200,780)	634,941	(2,770,730)
Supplemental schedule of noncash financing activities:
Accretion of redeemable preferred stock, common stock and noncontrolling interests		939,539	2,463,160	4,306,488
Deemed dividend upon repurchase of Series A redeemable preferred stock in excess of carrying value				(1,298,631)
Issuance of subscription receivable upon sale of common stock		(2,749,997)		(4,280,149)
Issuance of common and Series A preferred stock to redeemable preferred stockholders and noncontrolling interests upon reincorporation		(11,894,638)	11,894,638
Reclassification of equity classified stock-based compensation		(15,118,584)	15,118,584
Distribution of common stock in Sonnet Biotherapeutics, Inc. to stockholders				(221,154)
Issuance of capital lease obligations in connection with purchase of property and equipment			100,383	2,603,894
Deferred offering costs and common stock issuance costs in accounts payable and accrued expenses	$ (137,291)	$ (1,014,281)	$ 3,144	$ 2,310,961

Organization and Description of Business

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Organization And Description Of Business [Abstract]

Organization and Description of Business

1. Organization and Description of Business

Oncobiologics, Inc. (“Oncobiologics” or the “Company”) was incorporated in New Jersey on January 5, 2010 and started operations in July 2011. In October 2015, the Company reincorporated in Delaware through the merger with and into Oncobiologics, Inc., a newly formed Delaware corporation, with the Delaware corporation surviving the merger. Oncobiologics is a clinical-stage biopharmaceutical company focused on identifying, developing, manufacturing and commercializing complex biosimilar therapeutics in the disease areas of immunology and oncology. The Company has established fully integrated in-house development and manufacturing capabilities that addresses the numerous complex technical and regulatory challenges in developing and commercializing mAb biosimilars. Since inception, the Company has advanced two product candidates into clinical trials: a Phase 3-ready biosimilar to adalimumab (Humira®) and a Phase 3-ready biosimilar to bevacizumab (Avastin®). Additionally, the Company has six preclinical biosimilar product candidates under active development.

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

Organization and Operations

Description of the Business

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

In April 2015, the Company spun-off certain assets unrelated to its biosimilar business through a pro rata distribution to its stockholders through a newly-formed subsidiary, Sonnet Biotherapeutics, Inc. (“Sonnet”). Concurrent with the Company’s contribution of the assets relating to the innovation business of Sonnet, the Company distributed all of its shares of Sonnet to Oncobiologics’ stockholders.

In October 2015, the Company reincorporated in Delaware through the merger with and into Oncobiologics, Inc., a newly formed Delaware corporation, with the Delaware corporation surviving the merger. As a result of the merger, each share of the Company’s previously issued and outstanding common stock converted into and became a share of common stock of the Delaware corporation on a 1-for-1 basis, each share of the Company’s previously issued and outstanding Series A redeemable preferred stock converted into 289 shares of common stock and approximately 1.4035 shares of Series A preferred stock of the Delaware corporation, and each share of the Company’s previously issued and outstanding Series B redeemable preferred stock converted into 289 shares of common stock and approximately 1.2867 shares of Series A preferred stock of the Delaware corporation. The holders of Series A and B also received an aggregate of 10,193 shares of Series A preferred stock of the Delaware corporation. Additionally, effective upon the reincorporation and in connection with the dissolution of the Company’s business development subsidiary, Parilis Biopharmaceuticals (“Parilis”), the Company issued 226,663 shares of common stock and 1,626 shares of Series A preferred stock to the holders of outstanding Parilis preferred member units in exchange for all such units.

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

Liquidity

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Liquidity [Abstract]

Liquidity

2. Liquidity

The Company has incurred substantial losses and negative cash flows from operations since its inception and has an accumulated deficit of $166.5 million as of December 31, 2016. The Company has substantial indebtedness that includes $10.0 million of senior secured notes due in December 2017 and $4.6 million in notes payable to stockholders that are payable on demand. There can be no assurance that the holders of the stockholder notes will not exercise their right to demand repayment. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying unaudited interim consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The unaudited interim consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.

The Company anticipates incurring additional losses until such time, if ever, that it can generate significant sales of its products currently in development. Management believes that the Company’s existing cash as of December 31, 2016 and $1.65 million in cash proceeds in January 2017 from the issuance of the notes and warrants will be sufficient to fund its operations through February 2017. Substantial additional financing will be needed by the Company to fund its operations and to commercially develop its product candidates. Management is currently evaluating different strategies to obtain the required funding for future operations. These strategies may include, but are not limited to: private placements of equity and/or debt, payments from potential strategic research and development, licensing and/or marketing arrangements with pharmaceutical companies, and public offerings of equity and/or debt securities. There can be no assurance that these future funding efforts will be successful.

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.

Liquidity

The Company has incurred substantial losses and negative cash flows from operations since its inception and has an accumulated deficit of $147.4 million as of September 30, 2016. In addition, the Company has $4.6 million of indebtedness that is due on demand. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying 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 consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.

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

The Company anticipates incurring additional losses until such time, if ever, that it can generate significant sales of its products currently in development. The Company closed the IPO of its securities and the concurrent private placement on May 18, 2016 raising aggregate net proceeds of approximately $33.8 million, excluding any proceeds it may receive from the exercise of the Series A warrants and Series B warrants. In October, November and December 2016, the Company raised $8.35 million of cash proceeds from the issuance of notes and warrants, of which $2.4 million was used to repay existing senior secured bank loans (see Note 15). Management believes that the Company’s existing cash as of September 30, 2016 and the net proceeds from the issuance of the notes and warrants will be sufficient to fund its operations through February 2017. Substantial additional financing will be needed by the Company to fund its operations and to commercially develop its product candidates. Management is currently evaluating different strategies to obtain the required funding for future operations. These strategies may include, but are not limited to: private placements of equity and/or debt, payments from potential strategic research and development, licensing and/or marketing arrangements with pharmaceutical companies, and public offerings of equity and/or debt securities. There can be no assurance that these future funding efforts will be successful.

Basis of Presentation and Summary of Significant Accounting Policies

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

3. Basis of Presentation and Summary of Significant Accounting Policies

Basis of presentation

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

In the opinion of management, the accompanying unaudited interim consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the Company’s financial position as of December 31, 2016 and its results of operations and cash flows for the three months ended December 31, 2016 and 2015. Operating results for the three months ended December 31, 2016 are not necessarily indicative of the results that may be expected for the full year ending September 30, 2017. 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, 2016 included on Form 10-K dated December 29, 2016 filed with the Securities and Exchange Commission (“SEC”), as amended to date.

Use of estimates

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

Income taxes

The Company recorded income tax expense of $4,000 and $52,000 for the three months ended December 31, 2016 and 2015 which is primarily attributable to the foreign withholding taxes in connection with the Company’s collaboration and licensing agreements.

Net loss per share

Basic and diluted net loss per common share is determined by dividing net loss applicable to common stockholders by the weighted-average common shares outstanding during the period. For all periods presented, the Company’s previously outstanding shares of preferred stock and other potentially dilutive securities have been excluded from the calculation because their effects would

be anti-dilutive. Therefore, the weighted-average shares used to calculate both basic and diluted loss per share are the same.

The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding as of December 31, 2016 and 2015, as they would be antidilutive:

	December 31,
	2016		2015
Series A preferred stock		-		1,969,818
Performance-based stock units		243,774		249,510
Restricted stock units		1,224,957		1,066,193
Convertible stockholder note		-		96,618
Common stock warrants		9,806,028		-

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

Recently Issued and Adopted Accounting Pronouncements

In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The amendments in this update explicitly require a company’s management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The Company adopted this new standard effective in the quarter ended after December 31, 2016.

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

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

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

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

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

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

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

3. Basis of Presentation and Summary of Significant Accounting Policies

Basis of presentation

The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). 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”).

The consolidated financial statements include the accounts of the Company’s subsidiaries and affiliates in which the Company held a controlling financial interest as of the financial statement date. As the Company had been the primary funding source for Sonnet, the operations and financial position of Sonnet were included in the consolidated financial statements of the Company through September 30, 2015. Participation of the stockholders in the net assets and losses of Sonnet were reflected in the line items “Noncontrolling interests” in the Company’s consolidated balance sheet and “Net loss attributable to the noncontrolling interests” in the Company’s consolidated statement of operations.

Prior to its dissolution, Parilis had issued Series A and Series A Hybrid Redeemable Preferred Units (“Preferred Units”) to investors other than Oncobiologics. The Preferred Units were redeemable both at the option of the Parilis Preferred holders and upon the occurrence of an event that was not solely within the Company’s control. Because redemption of Preferred Units was outside of the Company’s control, the noncontrolling interests was presented on the consolidated balance sheet under the caption redeemable noncontrolling interests and was carried at its current redemption value. As of and for the year ended September 30, 2015, the redeemable noncontrolling interests was presented at its carrying amount and adjusted for dividends to and contributions from the noncontrolling interests with an offsetting charge to common stock or, in the absence of common stock, a charge to accumulated deficit.

Use of estimates

The preparation of the 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 consolidated financial statements, actual results may materially vary from these estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary.

Recapitalization

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

Restricted cash

As of September 30, 2016 and 2015, the Company had $216,086 and $213,663, respectively, in certificates of deposit related to the requirements of the Company’s bank loans.

Fair value of financial instruments

At September 30, 2016 and 2015, the Company’s financial instruments included accounts payable, accrued expenses, stockholder notes and debt. The carrying amount of accounts payable and accrued expenses approximates fair value due to the short-term maturities of these instruments. The stockholder notes and debt approximates fair value as the interest rates are reflective of the rate the Company could obtain on debt with similar terms and conditions. As of September 30, 2015, the carrying value of the stock-based compensation liability was the estimated fair value of the liability (See Note 11).

Prepaid expenses and other current assets

As of September 30, 2016 and 2015, the Company had prepaid research and development of $1,979,527 and $355,182, respectively.

Property and equipment

Property and equipment are recorded at cost. Depreciation and amortization is determined using the straight-line method over the estimated useful lives ranging from 3 to 10 years. Leasehold improvements are amortized over the life of the lease or the estimated useful life of the assets, whichever is shorter. Expenditures for maintenance and repairs are expensed as incurred while renewals and betterments are capitalized. When property and equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in operations.

Long-lived assets

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated. Impairment charges are recognized at the amount by which the carrying amount of an asset exceeds the fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. The Company has not recognized any impairment of long-lived assets.

Deferred offering costs

The Company capitalizes costs that are directly associated with in-process equity financings until such financings are consummated at which time such costs are recorded against the gross proceeds of the offering.

Stock-based compensation

The Company measures equity classified stock-based awards granted to employees and directors based on the estimated fair value on the date of grant and recognizes compensation expense of those awards, net of estimated forfeitures, on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award.

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model, which is described more fully in note 11. The fair value of each restricted stock award is measured as the fair value per share of the Company’s common stock on the date of grant.

Stock-based awards granted to consultants and non-employees are measured based on the fair value of the award on the date on which the related services are completed. Compensation expense is recognized over the period during which services are rendered by such consultants and non-employees until completed. At the end of each financial reporting period prior to completion of the service, the fair value of these awards is remeasured using the then-current fair value of the Company’s common stock and updated assumption inputs in the Black-Scholes option-pricing model.

Stock-based awards that are settled in cash are accounted for as liabilities and are remeasured at each reporting period until the obligations are satisfied. Stock-based compensation liabilities are valued through the use of a Monte Carlo simulation model.

Revenue recognition

The Company’s revenue is generated primarily through collaboration research and license agreements. The terms of these agreements generally contain multiple deliverables which may include (i) licenses, (ii) research and development activities, clinical manufacturing, and (iii) product supply. The payment terms of these agreements may include nonrefundable upfront fees, payments for research and development activities, payments based upon the achievement of certain milestones, royalty payments based on product sales derived from the collaboration, and payments for supplying product.

The Company considers whether the deliverables under the arrangement represent separate units of accounting. In determining the units of accounting, management evaluates certain criteria, including whether the deliverables have stand-alone value. The consideration received is allocated to the separate units of accounting using the relative selling price method, and the applicable revenue recognition criteria are applied to each of the separate units.

The Company typically receives upfront, nonrefundable payments when licensing its intellectual property. For intellectual property licenses that do not have stand-alone value from the other deliverables to be provided, the upfront fee is deferred and revenue is recognized over the contractual or estimated performance period, which is typically the term of the research and development obligations. The periods over which revenue is recognized are subject to estimates by management and may change over the course of the research and development agreement. Such a change could have a material impact on the amount of revenue the Company records in future periods. Payments or reimbursements resulting from the Company’s research and development efforts are recognized as the services are performed. Amounts received prior to satisfying the above revenue recognition criteria are recorded as deferred revenue.

The Company recognizes revenue from milestone payments when: (i) the milestone event is substantive and its achievability was not reasonably assured at the inception of the agreement, and (ii) the Company does not have ongoing performance obligations related to the achievement of the milestone earned. Milestone payments are considered substantive if all of the following conditions are met: the milestone payment (a) is commensurate with either the Company’s performance to achieve the milestone or the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from the Company’s performance to achieve the milestone, (b) relates solely to past performance, and (c) is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement.

Research and development

Research and development costs are expensed as incurred and consist primarily of funds paid to third parties for the provision of services for product candidate development, clinical and preclinical development and related supply and manufacturing costs, and regulatory compliance costs. At the end of the reporting period, the Company compares payments made to third-party service providers to the estimated progress toward completion of the research or development objectives. Such estimates are subject to change as additional information becomes available. Depending on the timing of payments to the service providers and the progress that the Company estimates has been made as a result of the service provided, the Company may record net prepaid or accrued expense relating to these costs.

Upfront milestone payments made to third parties who perform research and development services on the Company’s behalf are expensed as services are rendered. Costs incurred in obtaining technology licenses are charged to research and development expense as acquired in-process research and development if the technology licensed has not reached technological feasibility and has no alternative future use.

Income taxes

The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded to the extent it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Accretion of redeemable preferred stock, redeemable common stock and redeemable noncontrolling interests

Accretion of redeemable preferred stock included the accretion of dividends and issuance costs of the Company’s Series A and Series B redeemable preferred stock and the redeemable common stock. The carrying values of the Series A and Series B redeemable preferred stock, redeemable common stock and redeemable noncontrolling interests were being accreted to their respective redemption values, using the effective interest method, from the date of issuance to the earliest date the holders can demand redemption. Increases to the carrying value of redeemable preferred stock, common stock, and noncontrolling interests are charged to common stock or, in the absence of common stock, charged to accumulated deficit. Upon repurchase of redeemable preferred stock and redeemable noncontrolling interests, the excess consideration paid over the carrying value at the time of repurchase was accounted for as a deemed dividends to the preferred stockholders.

Net loss per share

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

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

	September 30,
	2016		2015
Series A redeemable preferred stock		—		1,034,181
Series B redeemable preferred stock		—		1,159,418
Performance-based stock units		247,309		—
Restricted stock units		1,094,351		—
Convertible stockholder note		—		96,618
Common stock warrants		8,186,934		—

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

Recently issued and adopted accounting pronouncements

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

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

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

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

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

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

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

Fair Value Measurements

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. Fair Value Measurements

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

■

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

■

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

■

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

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

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

	December 31, 2016
	(Level 1)		(Level 2)		(Level 3)
Liabilities
Warrant liability	$	-	$	-	$	4,128,727

The table presented below is a summary of changes in the fair value of the Company’s Level 3 valuation for the warrant liability for the three months ended December 31, 2016:

Balance at October 1, 2016	$	-
Issuance of warrants		3,318,644
Change in fair value		810,083
Balance at December 31, 2016	$	4,128,727

The warrants issued in connection with senior secured notes 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:

		December 31,
		2016
Risk-free interest rate		1.93%
Remaining contractual life of warrant		5 years
Expected volatility		93%
Annual dividend yield		0%
Fair value of common stock		$3.01 per share

4. Fair Value Measurements

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

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

The table presented below is a summary of changes in the fair value of the Company’s Level 3 valuation for the stock-based compensation liability for the years ended September 30, 2016 and 2015:

Balance at October 1, 2014	$	1,557,789
Change in fair value		11,168,933
Balance at September 30, 2015		12,726,722
Change in fair value		2,391,862
Reclassification to stockholders’ equity (deficit)		(15,118,584)
Balance at September 30, 2016	$	—

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

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

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

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

- Definition

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

+ References + Details

Property and Equipment

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

5. Property and Equipment

Property and equipment, net, consists of:

	December 31,			September 30,
	2016			2016
Laboratory equipment	$	11,486,716		$	11,452,858
Leasehold improvements		10,031,739			10,031,739
Computer software and hardware		471,152			421,206
Construction in progress		1,083,032			1,014,690
		23,072,639			22,920,493
Less: accumulated depreciation and amortization		(6,631,720	)		(5,961,940	)
	$	16,440,919		$	16,958,553

Depreciation and amortization expense was $669,780 and $593,977 for the three months ended December 31, 2016 and 2015, respectively.

At December 31, 2016 and September 30, 2016, $3,692,913 and $3,630,683 represents laboratory equipment under capital leases. The term of the leases are between 22 and 36 months and qualify as capital leases. The leases bear interest between 5.0% and 19.4%. At December 31, 2016 and September 30, 2016, $813,200 and $732,002, respectively, of accumulated amortization related to this leased equipment has been recognized.

5. Property and Equipment

Property and equipment, net, consists of:

	September 30,
	2016			2015
Laboratory equipment		$	11,452,858		$	10,936,364
Leasehold improvements			10,031,739			9,889,521
Computer software and hardware			421,206			402,075
Construction in progress			1,014,690			175,425
			22,920,493			21,403,385
Less: accumulated depreciation and amortization			(5,961,940)			(3,643,447)
		$	16,958,553		$	17,759,938

Depreciation and amortization expense for the years ended September 30, 2016 and 2015 was $2,394,279 and $1,824,600, respectively.

At September 30, 2016 and 2015, $3,630,683 and $3,530,301, respectively represents laboratory equipment under capital leases. The term of the leases are between 22 and 36 months and qualify as capital leases. The leases bear interest between 5.0 % and 19.4 %. At September 30, 2016 and 2015, $732,002 and $407,210, respectively, of accumulated depreciation related to this leased equipment has been recognized.

The following is a schedule of future minimum lease payments under capital leases as of September 30, 2016:

2017	$	1,093,624
2018		341,740
		1,435,364
Less: amounts representing interest		(137,379)
Less: current portion		(977,248)
Capital lease obligations, excluding current portion	$	320,737

Accrued Expenses

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Accrued Expenses [Abstract]

Accrued Expenses

6. Accrued Expenses

Accrued expenses consists of:

	December 31,		September 30,
	2016		2016
Compensation	$	3,786,902	$	3,884,386
Research and development		1,991,612		1,343,910
Interest payable		345,087		234,754
Deferred offering costs		-		26,028
Professional fees		582,731		486,705
Director fees		146,250		73,125
Other accrued expenses		489,520		73,034
	$	7,342,102	$	6,121,942

6. Accrued Expenses

Accrued expenses consists of:

	September 30,
	2016			2015
Compensation		$	3,884,386		$	2,321,508
Research and development			1,343,910			951,759
Interest payable			234,754			806,475
Deferred offering costs			26,028			657,892
Professional fees			486,705			594,572
Director fees			73,125			414,421
Other accrued expenses			73,034			178,021
		$	6,121,942		$	5,924,648

Stockholder Notes

12 Months Ended

Sep. 30, 2016

Short-term Debt [Abstract]

Stockholder Notes

	September 30,
	2016			2015
Series A repurchase notes		$	—		$	800,534
Parilis Series A repurchase notes			—			2,275,818
Restricted stock repurchase notes			800,000			1,097,750
Common stock repurchase note			2,812,500			2,812,500
Convertible note			—			2,000,000
Working capital notes			1,000,000			7,227,594
			4,612,500			16,214,196
Less: current portion			(4,612,500)			(14,214,196)
		$	—		$	2,000,000

In June 2014, the Company, upon the repurchase of its Series A redeemable preferred stock, issued $3,364,534 in notes to the investors as settlement of cumulative unpaid dividends. The notes bore interest at 4.0% and were originally due in June 2015. During the year ended September 30, 2015, $64,000 of the notes were offset against advances previously made to the Company’s CEO. Additionally, $100,000 of the notes were offset against advances previously made to an investor. The Company made principal payments of $800,534 and $2,050,000 during the years ended September 30, 2016 and 2015, respectively.

In October 2014, the Company, upon the repurchase of 1,215 Parilis Preferred Units, issued $2,761,818 in notes to the investors at a price of $2,000 per unit and $331,818 in cumulative unpaid dividends. During the years ended September 30, 2016 and 2015, the Company made $2,275,818 and $486,000 in principal payments, respectively.

In June 2014, the Company repurchased shares of its restricted stock in exchange for $1,097,750 in notes payable. During the year ended September 30 2016, the Company paid $297,750 of the notes. The notes bear interest at rates ranging from 0% to 4% 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.

In October and December 2014, the Company issued convertible promissory notes to a redeemable common stock investor, each in the amount of $2,000,000 and bearing interest at 12%. The December note was paid in full during the year ended September 30, 2015 and the October note was paid in full during the year ended September 30, 2016.

The Company has borrowed from stockholders for working capital purposes. The notes bear interest from 0% to 30% per annum. One of the notes is collateralized by 0.3 million common shares of the Company’s founding stockholder and Chief Executive Officer (“CEO”). The notes are due on demand.

During the years ended September 30, 2016 and 2015, the Company recognized interest expense related to the stockholder notes of $589,675 and $1,869,113, respectively.

Debt

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Debt Disclosure [Abstract]

Debt

7. Senior Secured Notes

	December 31,
	2016
Senior secured notes	$	8,350,000
Unamortized debt discount		(3,416,339	)
	$	4,933,661

In October, November and December 2016, the Company issued $1.85 million aggregate principal amount of unsecured bridge notes to accredited investors. These unsecured notes bore interest at a rate of 15% per year and had a one-year maturity date from the date of issuance. These unsecured notes were exchanged for senior secured promissory notes in December 2016 as described below.

On December 22, 2016, the Company entered into a Note and Warrant Purchase Agreement with accredited investors providing for the issuance and sale of up to $10.0 million of senior secured promissory notes (the “Notes”), which bear interest at a rate of 5% per year and mature December 22, 2017 and warrants (the “Warrants”) to acquire an aggregate 2.3 million shares of the Company’s common stock at an exercise price of $3.00 per share, which have a five-year term. The Company closed the initial sale and purchase of the Notes and Warrants on December 22, 2016, issuing $8.35 million aggregate principal amount of Notes and Warrants to acquire up to 1,920,500 shares of the Company’s common stock in exchange for $6.5 million of cash and an aggregate of $1.85 million of existing unsecured bridge notes issued by the Company in October, November and December 2016. The proceeds were first allocated to the warrant liability and based on their initial fair value of $3.3 million with a corresponding amount recorded as a debt discount. In addition, the Company incurred $179,526 of debt issuance costs that have been recorded as a debt discount. The debt discount is being amortized into interest expense over the term of the Notes using the effective interest method.

The Company used $2.4 million of the proceeds from the sale of the Notes to pay off its remaining senior secured bank loans, and will use the remainder for working capital purposes. In January 2017, the Company issued the remaining Notes and Warrants for $1.65 million of cash.

Under the Note and Warrant Purchase Agreement, the Company agreed to customary negative covenants restricting its ability to repay indebtedness to officers, pay dividends to stockholders, repay or incur other indebtedness other than as permitted, grant or suffer to exist a security interest in any of the Company’s assets, other than as permitted, or enter into any transactions with affiliates. In addition to the negative covenants in the Note and Warrant Purchase Agreement, the Notes include customary events of default. In connection with the closing of the initial sale of the Notes and Warrants, the Company entered into a Security Agreement and an Intellectual Property Security Agreement, each dated December 22, 2016, granting the holders of the Notes a security interest in all of its assets.

Interest expense on the Notes for the three months ended December 31, 2016 was $89,892.

Debt

	September 30,
	2016			2015
Term loans-Bank		$	2,526,502		$	3,404,759
Equipment loans			354,979			334,093
Unamortized debt discount			(61,224)			(73,442)
			2,820,257			3,665,410
Less: current portion			(586,454)			(742,646)
Long-term debt		$	2,233,803		$	2,922,764

The term bank loans bear interest at the prime rate plus 2.75% and are adjusted monthly. The original term of the loans range from 7 to 10 years. Minimum monthly payments of principal and interest under the terms of the loans are $48,048 and are collateralized by equipment, a secured interest in the personal residence of the founding stockholder and CEO, an unconditional personal guarantee by the founding stockholder and CEO and a $200,000 certificate of deposit. In August 2016, the Company paid in full one of the three term loans. The Company maintains a life insurance policy on its founding stockholder and CEO in which the bank is the primary beneficiary. The loans contain certain non-financial covenants.

The equipment loans bear interest at rates ranging from 12% to 16% with the original term of the loans ranging from 1 to 5 years. Minimum monthly payments of principal and interest under the equipment loans are $19,379 and are collateralized by the related equipment purchased and an unconditional personal guarantee by the founding stockholder and CEO.

Interest expense on the above loans for the years ended September 30, 2016 and 2015 was $230,824 and $287,280, respectively.

Future maturities of debt at September 30, 2016 are as follows:

2017	$	586,454
2018		515,793
2019		549,694
2020		569,142
2021		497,491
Thereafter		162,907
	$	2,881,481

Commitments

12 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments

Selexis Commercial License Agreements

In April 2013, the Company entered into commercial license agreements with Selexis for each of the ONS-3010, ONS-1045 and ONS-1050 biosimilar product candidates (which agreements were subsequently amended on May 21, 2014). Under the terms of each commercial license agreement, the Company acquired a non-exclusive worldwide license under the Selexis Technology to use the applicable Selexis expression technology along with the resulting Selexis materials/ cell lines, each developed under the research license, to manufacture and commercialize licensed and final products, with a limited right to sublicense.

The Company paid an upfront licensing fee to Selexis for each commercial license and also agreed to pay a fixed milestone payment for each licensed product. In addition, the Company is required to pay a low single-digit royalty on a final product-by-final product and country-by-country basis, based on worldwide net sales of such final products by the Company or any of the Company’s affiliates or sublicensees during the royalty term. The royalty term for each final product in each country is the period commencing from the first commercial sale of the applicable final product in the applicable country and ending on the expiration of the specified patent coverage. At any time during the term, the Company has the right to terminate its royalty payment obligation by providing written notice to Selexis and paying Selexis a royalty termination fee.

Each of the Company’s commercial agreements with Selexis will expire upon the expiration of all applicable Selexis patent rights. Either party may terminate the related agreement in the event of an uncured material breach by the other party or in the event the other party becomes subject to specified bankruptcy, winding up or similar circumstances. Either party may also terminate the related agreement under designated circumstances if the Selexis Technology infringes third-party intellectual property rights. In addition, the Company has the right to terminate each of the commercial agreements at any time at its convenience; however, with respect to the agreements relating to ONS-3010 and ONS-1045, this right is subject to the licensee’s consent pursuant to a corresponding letter the Company executed in conjunction with the standby agreement entered into between Selexis and Liomont in November 2014.

The standby agreement permits Liomont to assume the license under the applicable commercial agreement for Mexico upon specified triggering events involving our bankruptcy, insolvency or similar circumstances.

Technology License

The Company entered into a technology license agreement that will require milestone payments of $376,000 (based on an exchange rate on September 30, 2016 for converting Swiss Francs to U.S. dollars) to the licensor by the Company upon achievement of certain clinical milestones and pay a single digit royalty on net sales by the Company utilizing such technology. The Company also has the contractual right to buy out the royalty payments at a future date.

Leases

In July 2016, the Company entered into a fifth amendment to its lease agreement for its office and operating space which, as amended, has a term ending in June 2021. Additionally, in August 2015, the Company entered into a lease for approximately 82,000 square feet of office and laboratory space in Cranbury, New Jersey, with lease payments that commenced in March 2016 and expire in March 2026. Rent expense under the leases was $1,619,019 and $720,875, respectively for the years ended September 30, 2016 and 2015, respectively. The Company recognizes rent expense on a straight-line basis over the lease period and has accrued for rent expense incurred but not yet paid. Landlord allowances for tenant improvements are deferred and recognized as a reduction to rent expense on a straight line basis and over the remaining lease term.

Future minimum rental payments under noncancelable operating leases at September 30, 2016 are as follows:

2017	$	1,551,513
2018		1,735,263
2019		1,753,323
2020		1,771,545
2021		1,596,976
Thereafter		3,541,990
	$	11,950,610

Employment Benefit Plan

The Company maintains a defined contribution 401(k) plan in which employees may contribute up to 100% of their salary and bonus, subject to statutory maximum contribution amounts. The Company matches 100% of the first 3% of employee contributions. The Company assumes all administrative costs of the Plan. For the years ended September 30, 2016 and 2015, the expense relating to the matching contribution was $191,097 and $131,385, respectively.

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

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Equity [Abstract]

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

8. Common Stock Warrants

As of December 31, 2016, the Company had the following warrants outstanding to acquire shares of its common stock:

	Outstanding		Exercise price per share		Expiration date

Series A warrants		3,333,333	$	6.60	February 18, 2018
Series B warrants		3,333,333	$	8.50	May 18, 2018
Common stock warrants issued with IPO		1,218,862	$	0.01	November 11, 2019
Common stock warrants issued with senior secured notes		1,920,500	$	3.00	December 22, 2021
		9,806,028

10.

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

Common stock

During the year ended September 30, 2015, the Company sold 1,765,511 shares of its common stock at $25.79 per share under a mezzanine funding round raising $44,142,463 in net proceeds of which $4,280,149 was received in October 2015.

From October 2015 through January 2016, the Company sold 573,388 shares of its common stock at $29.05 per share raising $16,137,913 in net proceeds. In May 2016, upon consummation of its IPO and private placement, the Company sold 5,833,334 units at $6.00 per unit and completed a concurrent private placement of an additional 833,332 shares of its common stock, 416,666 Series A warrants and 416,666 Series B warrants, at the same price (See Note 1), raising $33,784,205 in aggregate net proceeds. Each unit consisted of one share of the Company’s common stock and warrants described below.

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

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

Series A warrants and Series B warrants

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

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

As of September 30, 2016, there were 3,333,333 Series A warrants and 3,333,333 Series B warrants outstanding.

Common stock warrants

In May 2016, upon the closing of the IPO, the Company issued warrants to acquire an aggregate of 1,520,268 shares of its common stock to certain of the investors party to that certain investors’ rights agreement dated March 10, 2014, as amended, pursuant to the terms of an amendment to such agreement dated April 26, 2016. The warrants issued to these investors are not exercisable until 180 days after May 12, 2016, and have an initial exercise price of $0.01 per share, which may increase to $1.00 per share under certain circumstances, and expire November 18, 2019. The estimated fair value of the warrants issued to these investors was $7,373,820 and reflected as a deemed dividend in the consolidated statement of operations for purposes of computing basic and diluted loss per share.

Deconsolidation of noncontrolling interests

Through September 30, 2015, the Company consolidated the operations of Sonnet because the Company was the primary funding source to Sonnet through September 2015. Effective October 1, 2015, additional capital was contributed to Sonnet by third-party investors triggering a reconsideration event, which resulted in the Company no longer being considered the primary beneficiary and as a result, the Company has deconsolidated Sonnet. Sonnet issued the Company an $826,561 promissory note which reflects the funding the Company provided Sonnet through September 30, 2015. There were no gains or losses recognized upon deconsolidation because no equity interest was owned by the Company. As of September 30, 2016, the balance of the promissory note plus accrued interest was paid in full.

Series A preferred stock

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

- Definition

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

+ References

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

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

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

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

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

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

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

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

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

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

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

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

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

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

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

+ Details

Stock-Based Compensation

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

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

Stock-Based Compensation

9. Stock-Based Compensation

2011 Equity Incentive Plan

The Company’s 2011 Equity Compensation Plan (the “2011 Plan”) provided for the Company to sell or issue restricted common stock, restricted stock units (“RSUs”), performance-based units (“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 1,159,420. As of December 31, 2016, PSUs representing 243,774 shares of the Company’s common stock were outstanding under the 2011 Plan. In light of the December 2015 adoption of the 2015 Equity Incentive Plan, no future awards under the 2011 Plan will be granted.

2015 Equity Incentive Plan

In December 2015, the Company adopted the 2015 Equity Incentive Plan (the “2015 Plan”). The 2015 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards and other forms of equity compensation to Company employees, directors and consultants. The maximum number of shares of common stock that may be issued under the 2015 Plan is 1,930,460 shares. As of December 31, 2016, RSUs representing 1,224,957 shares of the Company’s common stock were outstanding under the 2015 Plan and 221,590 shares remained available for grant under the 2015 Plan.

The Company recorded stock-based compensation expense in the following expense categories of its statements of operations for the three months ended December 31, 2016 and 2015:

	Three months ended December 31,
	2016		2015

Research and development	$	386,109	$	1,356,408
General and administrative		2,077,943		1,133,626
	$	2,464,052	$	2,490,034

	Three months ended December 31,
	2016		2015

Equity-classified compensation	$	2,464,052	$	98,172
Liability-classified compensation		-		2,391,862
	$	2,464,052	$	2,490,034

Performance-based stock units

The Company has issued PSUs, which generally have a ten year life from the date of grant and vest 50% after the third anniversary from issuance and the remaining 50% on the fourth anniversary. The PSUs are exercisable upon the earlier of (i) a change in control, (ii) consummation of an initial public offering, or (iii) a corporate valuation in excess of $400 million. Upon exercise, the PSU holder receives common stock or cash at the Company’s discretion.

The following table summarizes the PSU activity for the three months ended December 31, 2016:

	Number			Base
	of			Price
	PSUs			Per PSU
Balance at October 1, 2016		247,309		$	6.33
Forfeitures		(3,535	)		7.40
Balance at December 31, 2016		243,774		$	6.35

As of December 31, 2016, there was $532,508 of unamortized expense that will be recognized over a weighted-average period of 1.46 years.

Restricted stock units

The following table summarizes the activity related to RSUs granted during the three months ended December 31, 2016:

				Weighted
	Number			Average
	of			Grant Date
	RSUs			Fair Value
Balance at October 1, 2016		1,094,351		$	28.61
Granted		615,000			2.11
Vested and settled		(483,913	)		29.05
Forfeitures		(481	)		29.05
Balance at December 31, 2016		1,224,957		$	15.13

The Company has granted RSUs that generally vest over a period of two to four years from the date of grant. In addition, vesting of the RSUs was also dependent upon the closing of the Company’s IPO, which is a performance condition that is outside the Company’s control. Therefore, the Company did not recognize any stock-based compensation until the consummation of the IPO in May 2016. As of December 31, 2016, there was $11,402,327 of unamortized expense that will be recognized over a weighted-average period of 1.42 years.

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, restricted stock units (“RSUs”), performance-based awards, cash-based awards or to grant stock options for the purchase of common stock to officers, employees, consultants and directors of the Company. The 2011 Plan was administered by the board of directors or, at the discretion of the board of directors, by a committee of the board. The number of shares of common stock reserved for issuance under the 2011 Plan is 1,159,420. As of September 30, 2016, PSUs representing 247,309 shares of the Company’s common stock were outstanding under the 2011 Plan. In light of the December 2015 adoption of the 2015 Equity Incentive Plan, no future awards under the 2011 Plan will be granted.

2015 Equity Incentive Plan

In December 2015, the Company adopted the 2015 Equity Incentive Plan (the “2015 Plan”). The 2015 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards and other forms of equity compensation to Company employees, directors and consultants. On July 11, 2016 the maximum number of shares of the 2015 plan increased by 684,083 shares or 3% of the outstanding common stock of the Company. This increase resulted from a provision in the plan that allows an annual increase of shares in the plan. The maximum number of shares of common stock that may be issued under the 2015 Plan is 1,930,460 shares. As of September 30, 2016, RSUs representing 1,094,351 shares of the Company’s common stock were outstanding under the 2015 Plan and 836,109 shares remained available for grant under the 2015 Plan.

The Company recorded stock-based compensation expense in the following expense categories of its consolidated statements of operations for the years ended September 30, 2016 and 2015:

	Year ended September 30,
	2016			2015
Research and development		$	2,044,379		$	5,817,830
General and administrative			10,405,700			5,360,028
		$	12,450,079		$	11,177,858

	Year ended September 30,
	2016			2015
Equity-classified compensation		$	10,058,217		$	8,925
Liability-classified compensation			2,391,862			11,168,933
		$	12,450,079		$	11,177,858

Performance-based stock units

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

The following table summarizes the PSU activity for the years ended September 30, 2016 and 2015:

	Number of PSUs		Base Price Per PSU
Balance at October 1, 2014		658,498		$	3.45
Granted		39,988			3.45
Forfeitures		(11,473)			3.45
Balance at October 1, 2015		687,013			3.45
Forfeitures		(4,924)			4.85
Exchanged for restricted stock units		(434,780)			3.45
Balance at September 30, 2016		247,309		$	6.33

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

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

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

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

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

As of September 30, 2016, there was $646,531 of unamortized expense that will be recognized over a weighted-average period of 1.71 years.

Restricted stock units

The following table summarizes the activity related to RSUs granted during the year ended September 30, 2016:

	Number of RSUs		Weighted Average Grant Date Fair Value
Balance at October 1, 2015		—		$	—
Granted		705,311			28.31
Forfeitures		(2,263)			13.78
Issued in connection with PSU exchange		391,303			29.05
Balance at September 30, 2016		1,094,351		$	28.61

As of September 30, 2016, there were 387,868 RSUs that will vest upon the expiration of the 180-day lock up period following the Company’s IPO. The remaining 706,483 RSUs will vest upon the expiration of the 180-day lock up period following the Company’s IPO and over the following time-based vesting periods:

•

424,468 RSUs with 50% vesting on each of the first and second anniversaries of the recipient’s grant date

•

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

•

260,277 RSUs with 50% vesting on each of the third and fourth anniversaries of the recipient’s hire date

The expiration of the lock-up period following an IPO or a change in control are performance conditions that are outside the Company’s control. Therefore, the Company did not recognize any stock-based compensation until the consummation of the IPO in May 2016. As of September 30, 2016, there was $12,527,573 of unamortized expense that will be recognized over a weighted-average period of 1.53 years.

- Definition

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

+ References + Details

Collaboration Arrangements

12 Months Ended

Sep. 30, 2016

Collaboration Arrangements [Abstract]

Collaboration Arrangements

12.

Collaboration Arrangements

Huahai agreement

In May 2013, the Company entered into strategic license and collaboration arrangement with Zhejiang Huahai Pharmaceutical Co., Ltd (“Huahai”) under which the Company granted Huahai and its affiliates an exclusive license for the research, development, manufacture, use or sale of ONS-3010 or ONS-1045 in China, including, the People’s Republic of China, Hong Kong, Macau and Taiwan. In addition, the Company granted Huahai a right and license under the Selexis Technology agreement to establish a production process for the products in the agreed territory and to market the products in the agreed territory pursuant to the relevant terms and conditions of the Company’s commercial license agreement with Selexis.

Under the terms of the arrangement, the Company has received $7,500,000 in upfront payments and non-substantive milestones and received $8,500,000 in substantive milestones. The Company determined that the deliverables under the Huahai arrangement were the exclusive license and the research and development services to be completed by the Company. Since the license did not have standalone value, the upfront and non-substantive milestones payments received have been deferred and are being recognized ratably on a straight line basis through December 2019, the expected date in which the research and development will be completed. Substantive milestones received under the Huahai arrangement are recognized upon achievement.

During each of the years ended September 30, 2016 and 2015, the Company recognized $1,175,580 of deferred revenues. For the year ended September 30, 2015, the Company received and recognized $2,000,000 in substantive milestone payments. As of September 30, 2016 and 2015, deferred revenue included in the Company’s consolidated balance sheet related to the Huahai arrangement was $3,752,950 and $4,928,530, respectively.

IPCA License and Collaboration Agreement

In August 2013, the Company entered into a strategic license agreement with IPCA Laboratories Limited and its affiliates (“IPCA”) under which the Company granted IPCA a license for the research, development, manufacture, use or sale of the ONS-3010 and, by amendment in May 2014, the ONS-1045 biosimilar product candidates with respect to India, Sri-Lanka, and Myanmar, and non-exclusive with respect to Nepal and Bhutan, or collectively, the agreed territory. In addition, the Company granted IPCA a right and license under the Selexis Technology to enable IPCA to establish an exclusive production process for the products in its agreed territory and to exclusively market the products in the agreed territory. The Company also agreed not to amend or terminate its rights under its commercial license agreement with Selexis without IPCA’s prior written consent.

Pursuant to the agreement, the Company agreed to continue the non-clinical and clinical development of each of ONS-3010 and ONS-1045 and corresponding products around the world and to develop and commercialize such products through Phase 3 clinical trials and regulatory approval in the United States and European Union. These obligations continue until termination of the agreement or the individual development programs or upon final regulatory approval of the last product for such biosimilars in the United States or European Union. The Company agreed to provide IPCA with a pre-IND package as submitted to EMEA and FDA, as well as perform preclinical development and characterization of ONS-3010 and ONS-1045 so as to enable IPCA to file an IND to conduct clinical trials and to perform clinical trials.

Under the terms of the agreement, the Company has received upfront and non-substantive milestone payments of $2,400,000, and received $1,000,000 in regulatory milestone payments. In addition, the Company is eligible to receive royalties at a low double-digit percentage rate of annual net sales of products by IPCA and its affiliates in the agreed territory. For each of ONS-3010 and ONS-1045, IPCA agreed to fund a portion of the global costs associated with the Phase 3 clinical trials.

The Company determined that the deliverables under the IPCA arrangement were the exclusive license and the research and development services to be completed by the Company. Since the license did not have standalone value, the upfront and non-substantive milestones payments received have been deferred and are being recognized ratably on a straight line basis through December 2019, the expected date in which the research and development will be completed. Substantive milestone payments received under the IPCA arrangement are recognized upon achievement. Cost reimbursements from IPCA related to the global costs associated with the Phase 3 clinical trials are recorded as a reduction in research and development expense.

During the years ended September 30, 2016 and 2015, the Company recognized deferred revenues of $421,732 and $402,377, respectively. For the year ended September 30, 2015, the Company received and recognized a $500,000 substantive milestone payment. As of September 30, 2016 and 2015, deferred revenue included in the Company’s consolidated balance sheets was $1,370,630 and $1,792,362, respectively.

Strategic Collaboration and Non-Exclusive License Agreement

In January 2014, the Company entered into a strategic collaboration and license agreement with IPCA to assist IPCA in establishing its research, development and manufacturing capabilities for monoclonal antibodies and biologics, including, in part, through collaborative development, manufacture and commercialization of ONS-1050 in the agreed territory (as specified below). Under the agreement, the Company granted IPCA and its affiliates a non-exclusive license in the agreed territory for the research, development, manufacture, use or sale of ONS-1050. The Company also agreed to assist IPCA with its research and development program. The agreed territory for ONS-1050 includes the Republics of India, Sri-Lanka, and Myanmar, Nepal and Bhutan, while the agreed territory for any product candidates developed independent of the Company’s involvement is global without geographical restriction. Any further collaboration between for such independently developed product candidates will be the subject of a separate written agreement if required by IPCA.

Under the terms of the agreement, the Company receives development payments and commercialization fees. In addition, the Company is eligible to receive royalties from IPCA at a mid-single digit rate on annual net sales of ONS-1050 commercialized by IPCA and its affiliates in the agreed territory.

The Company accounts for the agreement with IPCA as a research and development services arrangement and recognizes revenue under the proportional performance model. For the years ended September 30, 2016 and 2015, the Company recognized revenue of $0 and $800,000, respectively.

Liomont agreement

In June 2014, the Company entered into a strategic license agreement with Laboratorios Liomont, S.A. (“Liomont”), under which the Company granted Liomont and its affiliates an exclusive, sublicenseable license in Mexico for the research, development, manufacture, use or sale of the ONS-3010 and ONS-1045 biosimilar product candidates in Mexico. In addition, the Company granted Liomont a non-exclusive right and license under the Selexis Technology and related intellectual property to enable Liomont to distribute, market and commercialize the products in Mexico. The Company also agreed not to amend or terminate its rights under the commercial agreement with Selexis without Liomont’s prior written consent.

Under the terms of the agreement, the Company has received upfront payments and non-substantive milestone payments of $2,000,000 and received $1,000,000 in regulatory milestone payments. In addition, the Company is eligible to receive up to $2,000,000 in future substantive milestone payments. For each of ONS-3010 and ONS-1045, Liomont agreed to fund a portion of the global costs for Phase 3 clinical trials. The Company is eligible to receive tiered royalties at upper single-digit to low double-digit percentage rates of annual net sales of products by Liomont and its affiliates in Mexico.

The Company determined that the deliverables under the Liomont arrangement were the exclusive license and the research and development services to be completed by the Company. Since the license did not have standalone value, the upfront payments received have been deferred and are being recognized ratably on a straight line basis through December 2019, the expected date in which the research and development will be completed. Cost reimbursements from Liomont related to the global costs associated with the Phase 3 clinical trials are recorded as a reduction in research and development expense.

During the years ended September 30, 2016 and 2015, the Company recognized deferred revenue of $382,264 and $341,280, respectively. As of September 30, 2016 and 2015, deferred revenue included in the Company’s consolidated balance sheets was $1,242,365 and $1,624,629.

Related-Party Transactions	12 Months Ended
Related-Party Transactions	Sep. 30, 2016
Related Party Transactions [Abstract]
Related-Party Transactions	13. Related-Party Transactions During the years ended September 30, 2016 and 2015, the following related party transactions occurred other than as disclosed in Note 7 and Note 8: • During the year ended September 30, 2015, the Company provided $783,707 of non-interest bearing advances to the Company’s founding stockholder and CEO, of which $395,257 was repaid. Additionally, the CEO has deferred a portion of his salary, bonus, and related benefits during the year ended September 30, 2015 and applied such deferrals against previous advances. As of September 30, 2015, the Company had accrued compensation payments of $117,506, due to the CEO. • In March 2015, a director of the Company loaned $1,000,000 to the Company with an interest rate of 24%. The loan was repaid in October 2015 and included $128,219 in accrued interest. • During the years ended September 30, 2015 and 2014, the Company repurchased 1,250 shares of Series A redeemable preferred stock and satisfied accrued dividends of $326,354 from three directors of the Company in exchange for $650,000 in cash payments and the issuance of $1,850,000 in stockholder notes. The notes bear interest at 4% which are due on demand. Under the terms of the agreement, because the notes were not paid upon maturity, they now bear interest at 6%. Terms of the share repurchase were the same as non-related parties. Refer to notes 7 and 10.

Income Taxes

12 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

14. Income Taxes

Income tax expense (benefit) for the years ended September 30, 2016 and 2015 consists of the following:

	Year Ended September 30,
	2016			2015
State tax, including sale of New Jersey losses and credits		$	3,000		$	(725,969)
Foreign tax provision			100,000			535,858
		$	103,000		$	(190,111)

The Company has been eligible to receive cash from the sale of its net operating losses (“NOLs”) and R&D tax credits under the State of New Jersey Technology Business Tax Certificate Transfer Program. During the year ended September 30, 2015, the Company received $0.7 million from the sale of New Jersey NOLs. In addition, the Company incurred $0.1 million and $0.5 million of foreign withholding taxes in connection with the Company’s collaboration and licensing agreements during the years ended September 30, 2016 and 2015, respectively.

A reconciliation of income tax (expense) benefit at the statutory federal income tax rate and income taxes as reflected in the financial statements is as follows:

	Year Ended September 30,
	2016		2015
U.S. federal statutory rate		(34.0)%		(34.0)%
State taxes, net of federal benefit		(5.9)		(5.5)
Foreign withholding tax		0.2		1.1
Permanent differences		—		1.8
Foreign tax credits		—		(1.1)
Research and development credit		—		(6.9)
Change in valuation allowance		40.0		44.6
Other		(0.1)		(0.4)
Effective income tax rate		0.2%		(0.4)%

The tax effects of the temporary differences that gave rise to deferred taxes were as follows:

	Year Ended September 30,
	2016			2015
Deferred tax assets
Net operating loss carryforwards		$	36,146,789		$	20,164,392
Stock compensation			11,249,314			6,317,492
Deferred revenue			2,542,558			3,333,201
Research and development credit carryforward			757,701			5,979,964
Foreign tax credits			2,257,309			2,602,949
Accruals and others			1,287,592			1,072,422
Gross deferred tax assets			54,241,263			39,470,420
Less: valuation allowance			(52,737,104)			(38,694,795)
			1,504,159			775,625
Deferred tax liability:
Fixed assets			(1,504,159)			(775,625)
Net deferred tax assets		$	—		$	—

As of September 30, 2016, the Company has approximately $99.8 million and $37.0 million of Federal and New Jersey net operating losses that will begin to expire in 2030 and 2036, respectively. As of September 30, 2016, the Company has Federal research and development tax credit carryforwards of $0.8 million available to reduce future tax liabilities which will begin to expire in 2032. As of September 30, 2016, the Company has Federal foreign tax credit carryforwards of $2.3 million available to reduce future tax liabilities which will begin to expire starting in 2023. $1.8 million of the FTC carryforward is included in the balance of unrecognized tax benefits. Realization of the deferred tax asset is contingent on future taxable income and based upon the level of historical losses, management has concluded that the deferred tax asset does not meet the more-likely-than-not threshold for realizability. Accordingly, a full valuation allowance continues to be recorded against the Company’s deferred tax assets as of September 30, 2016 and 2015. The valuation allowance increased $14.0 million and $21.3 million during the years ended September 30, 2016 and 2015, respectively.

When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely-than-not be realized. The determination as to whether the tax benefit will more-likely-than-not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company recognizes interest and penalties accrued on any unrecognized tax benefits within the provision for income taxes in its consolidated statements of operations.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Year Ended September 30,
	2016			2015
Balance at beginning of year		$	1,754,629		$	1,564,411
Additions based on tax positions related to the current year			100,000			190,218
Balance at end of year			1,854,629			1,754,629

The Company does not anticipate material change in the unrecognized tax benefits in the next 12 months. These unrecognized tax benefits, if recognized, would affect the annual effective tax rate. The Company’s income tax returns for the years from 2011 through 2015 remain open for examination by the Internal Revenue Service as well as various state, local and foreign jurisdictions.

Due to the change in ownership provisions of the Internal Revenue Code, the availability of the Company’s net operating loss carryforwards may be subject to annual limitations against taxable income in future periods, which could substantially limit the eventual utilization of such carryforwards. The Company has not analyzed the historical or potential impact of its equity financings on beneficial ownership and therefore no determination has been made whether the net operating loss carry forward is subject to any Internal Revenue Code Section 382 limitation. To the extent there is a limitation, there would be a reduction in the deferred tax assets with an offsetting reduction in the valuation allowance.

Subsequent Events

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

10. Subsequent events

On January 6, 2017, the Company raised an additional $1.65 million of cash proceeds from the issuance of Notes and the issuance of 379,500 Warrants pursuant to the December 2016 Note and Warrant Purchase Agreement.

On February 3, 2017, the Company entered into a registration rights agreement with the investors party thereto, all of whom are purchasers of the Notes and Warrants issued pursuant to the December 2016 Note and Warrant Purchase Agreement.

On February 6, 2017, the Company extended the expiration date of its outstanding Series A warrants to February 18, 2018 by entering into an amendment to the Warrant Agreement dated as of May 18, 2016 between the Company and the American Stock Transfer & Trust Company, LLC, as warrant agent.

15.

Subsequent Events

On December 22, 2016, the Company entered into a Note and Warrant Purchase Agreement with accredited investors providing for the issuance and sale of up to $10.0 million of senior secured promissory notes (the “Notes”), which bear interest at a rate of 5% per year and mature December 22, 2017 and warrants (the “Warrants”) to acquire an aggregate 2.3 million shares of the Company’s common stock at an exercise price of $3.00 per share which have a five-year term. The Company closed the initial sale and purchase of the Notes and Warrants on December 22, 2016, issuing $8.35 million aggregate principal amount of Notes and Warrants to acquire 1,920,500 shares of the Company’s common stock in exchange for $6.5 million of cash and an aggregate of $1.85 million of existing unsecured bridge notes issued by the Company in October, November and December 2016. The Company used $2.4 million of the proceeds from the sale of the Notes to pay off its existing senior secured bank loans, and will use the remainder for working capital purposes. The Company may issue up to $1.65 million of additional Notes and Warrants to acquire up to an additional 379,500 shares of the Company’s common stock in additional closings over the next 90 days without approval of holders of the Notes. Under the Note and Warrant Purchase Agreement, the Company agreed to customary negative covenants restricting its ability to repay indebtedness to officers, pay dividends to stockholders, repay or incur other indebtedness other than as permitted, grant or suffer to exist a security interest in any of the Company’s assets, other than as permitted, or enter into any transactions with affiliates. In addition to the negative covenants in the Note and Warrant Purchase Agreement, the Notes include customary events of default.

In connection with the closing of the initial sale of the Notes and Warrants, the Company entered into a Security Agreement and an Intellectual Property Security Agreement, each dated December 22, 2016, granting the holders of the Notes a security interest in all of its assets.

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

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation

Basis of presentation

Basis of presentation

Use of estimates

Use of estimates

Use of estimates

Recapitalization

Restricted cash

As of September 30, 2016 and 2015, the Company had $216,086 and $213,663, respectively, in certificates of deposit related to the requirements of the Company’s bank loans.

Fair Value of financial instruments

Fair value of financial instruments

Prepaid expenses and other current assets

As of September 30, 2016 and 2015, the Company had prepaid research and development of $1,979,527 and $355,182, respectively.

Property and equipment

Long-lived assets

Deferred offering costs

Stock-based compensation

Revenue recognition

Research and development

Income taxes

Income taxes

Income taxes

Accretion of redeemable preferred stock, redeemable common stock and redeemable noncontrolling interests

Net loss per share

Net loss per share

be anti-dilutive. Therefore, the weighted-average shares used to calculate both basic and diluted loss per share are the same.

The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding as of December 31, 2016 and 2015, as they would be antidilutive:

	December 31,
	2016		2015
Series A preferred stock		-		1,969,818
Performance-based stock units		243,774		249,510
Restricted stock units		1,224,957		1,066,193
Convertible stockholder note		-		96,618
Common stock warrants		9,806,028		-

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

Net loss per share

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

	September 30,
	2016		2015
Series A redeemable preferred stock		—		1,034,181
Series B redeemable preferred stock		—		1,159,418
Performance-based stock units		247,309		—
Restricted stock units		1,094,351		—
Convertible stockholder note		—		96,618
Common stock warrants		8,186,934		—

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

Recently issued and adopted accounting pronouncements

Recently Issued and Adopted Accounting Pronouncements

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

Recently issued and adopted accounting pronouncements

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

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

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Accounting Policies [Abstract]

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

	December 31,
	2016		2015
Series A preferred stock		-		1,969,818
Performance-based stock units		243,774		249,510
Restricted stock units		1,224,957		1,066,193
Convertible stockholder note		-		96,618
Common stock warrants		9,806,028		-

	September 30,
	2016		2015
Series A redeemable preferred stock		—		1,034,181
Series B redeemable preferred stock		—		1,159,418
Performance-based stock units		247,309		—
Restricted stock units		1,094,351		—
Convertible stockholder note		—		96,618
Common stock warrants		8,186,934		—

Fair Value Measurements (Tables)

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Fair Value Disclosures [Abstract]

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

	December 31, 2016
	(Level 1)		(Level 2)		(Level 3)
Liabilities
Warrant liability	$	-	$	-	$	4,128,727

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

The table presented below is a summary of changes in the fair value of the Company’s Level 3 valuation for the stock-based compensation liability for the years ended September 30, 2016 and 2015:

Balance at October 1, 2014	$	1,557,789
Change in fair value		11,168,933
Balance at September 30, 2015		12,726,722
Change in fair value		2,391,862
Reclassification to stockholders’ equity (deficit)		(15,118,584)
Balance at September 30, 2016	$	—

Summary of changes in the fair value of the Company's Level 3 valuation for the warrant liability

Balance at October 1, 2016	$	-
Issuance of warrants		3,318,644
Change in fair value		810,083
Balance at December 31, 2016	$	4,128,727

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

		December 31,
		2016
Risk-free interest rate		1.93%
Remaining contractual life of warrant		5 years
Expected volatility		93%
Annual dividend yield		0%
Fair value of common stock		$3.01 per share

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

Property and Equipment (Tables)

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	December 31,			September 30,
	2016			2016
Laboratory equipment	$	11,486,716		$	11,452,858
Leasehold improvements		10,031,739			10,031,739
Computer software and hardware		471,152			421,206
Construction in progress		1,083,032			1,014,690
		23,072,639			22,920,493
Less: accumulated depreciation and amortization		(6,631,720	)		(5,961,940	)
	$	16,440,919		$	16,958,553

	September 30,
	2016			2015
Laboratory equipment		$	11,452,858		$	10,936,364
Leasehold improvements			10,031,739			9,889,521
Computer software and hardware			421,206			402,075
Construction in progress			1,014,690			175,425
			22,920,493			21,403,385
Less: accumulated depreciation and amortization			(5,961,940)			(3,643,447)
		$	16,958,553		$	17,759,938

Schedule of future minimum lease payments under capital leases

2017	$	1,093,624
2018		341,740
		1,435,364
Less: amounts representing interest		(137,379)
Less: current portion		(977,248)
Capital lease obligations, excluding current portion	$	320,737

Accrued Expenses (Tables)

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Accrued Expenses [Abstract]

Schedule of accrued expenses

	December 31,		September 30,
	2016		2016
Compensation	$	3,786,902	$	3,884,386
Research and development		1,991,612		1,343,910
Interest payable		345,087		234,754
Deferred offering costs		-		26,028
Professional fees		582,731		486,705
Director fees		146,250		73,125
Other accrued expenses		489,520		73,034
	$	7,342,102	$	6,121,942

	September 30,
	2016			2015
Compensation		$	3,884,386		$	2,321,508
Research and development			1,343,910			951,759
Interest payable			234,754			806,475
Deferred offering costs			26,028			657,892
Professional fees			486,705			594,572
Director fees			73,125			414,421
Other accrued expenses			73,034			178,021
		$	6,121,942		$	5,924,648

Common Stock Warrants (Tables)

3 Months Ended

Dec. 31, 2016

Equity [Abstract]

Schedule of warrants outstanding to acquire shares of common stock

	Outstanding		Exercise price per share		Expiration date

Series A warrants		3,333,333	$	6.60	February 18, 2018
Series B warrants		3,333,333	$	8.50	May 18, 2018
Common stock warrants issued with IPO		1,218,862	$	0.01	November 11, 2019
Common stock warrants issued with senior secured notes		1,920,500	$	3.00	December 22, 2021
		9,806,028

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

Stockholder Notes (Tables)

12 Months Ended

Sep. 30, 2016

Short-term Debt [Abstract]

Schedule of stockholder equity

	September 30,
	2016			2015
Series A repurchase notes		$	—		$	800,534
Parilis Series A repurchase notes			—			2,275,818
Restricted stock repurchase notes			800,000			1,097,750
Common stock repurchase note			2,812,500			2,812,500
Convertible note			—			2,000,000
Working capital notes			1,000,000			7,227,594
			4,612,500			16,214,196
Less: current portion			(4,612,500)			(14,214,196)
		$	—		$	2,000,000

Debt (Tables)

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Debt Disclosure [Abstract]

Schedule of debt

	December 31,
	2016
Senior secured notes	$	8,350,000
Unamortized debt discount		(3,416,339	)
	$	4,933,661

	September 30,
	2016			2015
Term loans-Bank		$	2,526,502		$	3,404,759
Equipment loans			354,979			334,093
Unamortized debt discount			(61,224)			(73,442)
			2,820,257			3,665,410
Less: current portion			(586,454)			(742,646)
Long-term debt		$	2,233,803		$	2,922,764

Schedule of future maturities of debt

2017	$	586,454
2018		515,793
2019		549,694
2020		569,142
2021		497,491
Thereafter		162,907
	$	2,881,481

Commitments (Tables)

12 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum rental payments in operating leases

2017	$	1,551,513
2018		1,735,263
2019		1,753,323
2020		1,771,545
2021		1,596,976
Thereafter		3,541,990
	$	11,950,610

Stock-Based Compensation (Tables)

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

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

Schedule of stock-based compensation expense

	Three months ended December 31,
	2016		2015

Research and development	$	386,109	$	1,356,408
General and administrative		2,077,943		1,133,626
	$	2,464,052	$	2,490,034

	Three months ended December 31,
	2016		2015

Equity-classified compensation	$	2,464,052	$	98,172
Liability-classified compensation		-		2,391,862
	$	2,464,052	$	2,490,034

	Year ended September 30,
	2016			2015
Research and development		$	2,044,379		$	5,817,830
General and administrative			10,405,700			5,360,028
		$	12,450,079		$	11,177,858

	Year ended September 30,
	2016			2015
Equity-classified compensation		$	10,058,217		$	8,925
Liability-classified compensation			2,391,862			11,168,933
		$	12,450,079		$	11,177,858

Schedule of performance-based stock units activity

	Number			Base
	of			Price
	PSUs			Per PSU
Balance at October 1, 2016		247,309		$	6.33
Forfeitures		(3,535	)		7.40
Balance at December 31, 2016		243,774		$	6.35

	Number of PSUs		Base Price Per PSU
Balance at October 1, 2014		658,498		$	3.45
Granted		39,988			3.45
Forfeitures		(11,473)			3.45
Balance at October 1, 2015		687,013			3.45
Forfeitures		(4,924)			4.85
Exchanged for restricted stock units		(434,780)			3.45
Balance at September 30, 2016		247,309		$	6.33

Schedule of fair value of the PSU

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

Schedule of restricted stock units activity

				Weighted
	Number			Average
	of			Grant Date
	RSUs			Fair Value
Balance at October 1, 2016		1,094,351		$	28.61
Granted		615,000			2.11
Vested and settled		(483,913	)		29.05
Forfeitures		(481	)		29.05
Balance at December 31, 2016		1,224,957		$	15.13

	Number of RSUs		Weighted Average Grant Date Fair Value
Balance at October 1, 2015		—		$	—
Granted		705,311			28.31
Forfeitures		(2,263)			13.78
Issued in connection with PSU exchange		391,303			29.05
Balance at September 30, 2016		1,094,351		$	28.61

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Schedule of income tax expense (benefit)

	Year Ended September 30,
	2016			2015
State tax, including sale of New Jersey losses and credits		$	3,000		$	(725,969)
Foreign tax provision			100,000			535,858
		$	103,000		$	(190,111)

Schedule of reconciliation of income tax expense (benefit) at the statutory income tax rate

	Year Ended September 30,
	2016		2015
U.S. federal statutory rate		(34.0)%		(34.0)%
State taxes, net of federal benefit		(5.9)		(5.5)
Foreign withholding tax		0.2		1.1
Permanent differences		—		1.8
Foreign tax credits		—		(1.1)
Research and development credit		—		(6.9)
Change in valuation allowance		40.0		44.6
Other		(0.1)		(0.4)
Effective income tax rate		0.2%		(0.4)%

Schedule of deferred taxes

	Year Ended September 30,
	2016			2015
Deferred tax assets
Net operating loss carryforwards		$	36,146,789		$	20,164,392
Stock compensation			11,249,314			6,317,492
Deferred revenue			2,542,558			3,333,201
Research and development credit carryforward			757,701			5,979,964
Foreign tax credits			2,257,309			2,602,949
Accruals and others			1,287,592			1,072,422
Gross deferred tax assets			54,241,263			39,470,420
Less: valuation allowance			(52,737,104)			(38,694,795)
			1,504,159			775,625
Deferred tax liability:
Fixed assets			(1,504,159)			(775,625)
Net deferred tax assets		$	—		$	—

Schedule of reconciliation of unrecognized tax benefits

	Year Ended September 30,
	2016			2015
Balance at beginning of year		$	1,754,629		$	1,564,411
Additions based on tax positions related to the current year			100,000			190,218
Balance at end of year			1,854,629			1,754,629

Organization and Description of Business (Detail Textuals) - USD ($)		1 Months Ended			12 Months Ended
	May 13, 2016	May 31, 2016	May 18, 2016	Oct. 31, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2016
Organization And Description Of Business [Line Items]
Basis of conversion				1-for-1 basis
Number of unit issued by securities offering					$ 16,137,913	$ 44,142,463
Exercise price per share		$ 0.01
Gross proceeds of private placement and warrants		$ 5,000,000				$ 401,000
Proceeds from sale of common stock units in connection with initial public offering and private placement					$ 37,074,996
Preferred stock, shares authorized					10,000,000	10,000,000	10,000,000
Common stock, shares authorized					200,000,000	100,000,000	200,000,000
Preferred stock, par value per share (in dollars per share)					$ 0.01	$ 0.01	$ 0.01
Common stock, par value per share (in dollars per share)					$ 0.01	$ 0.01	0.01
Common stock repurchase note
Organization And Description Of Business [Line Items]
Number of unit issued by securities offering					$ 5,734	$ 44,142,463
Additional share of common stock					573,388	1,765,511
Series A warrant
Organization And Description Of Business [Line Items]
Additional share of common stock		416,666
Exercise price per share		$ 6.60			$ 6.60		6.60
Series B warrant
Organization And Description Of Business [Line Items]
Additional share of common stock		416,666
Exercise price per share		$ 8.50			$ 8.50		$ 8.50
IPO
Organization And Description Of Business [Line Items]
Description of IPO unit		Each unit consisted of one share of the Company's common stock, one-half of a Series A warrant and one-half of a Series B warrant.
Number of unit issued by securities offering		$ 5,833,334
Additional share of common stock		5,833,334
Initial public offering price per share		$ 6.00
Proceeds from sale of common stock units in connection with initial public offering and private placement			$ 33,800,000
Underwriting discounts and commissions			2,900,000
Estimated offering expenses			$ 3,300,000
IPO \| Series A warrant
Organization And Description Of Business [Line Items]
Exercise price per share		6.60
IPO \| Series B warrant
Organization And Description Of Business [Line Items]
Exercise price per share		$ 8.50
Private Placement
Organization And Description Of Business [Line Items]
Additional share of common stock		833,332
Gross proceeds of private placement and warrants		$ 5,000,000
Private Placement \| Series A warrant
Organization And Description Of Business [Line Items]
Additional share of common stock		416,666
Exercise price per share		$ 6.60
Private Placement \| Series B warrant
Organization And Description Of Business [Line Items]
Additional share of common stock		416,666
Exercise price per share		$ 8.50
Initial Public Offering And Private Placement
Organization And Description Of Business [Line Items]
Proceeds from sale of common stock units in connection with initial public offering and private placement	$ 33,800,000
Underwriting discounts and commissions	2,900,000
Estimated offering expenses	$ 3,300,000
Parilis Biopharmaceuticals ("Parilis")
Organization And Description Of Business [Line Items]
Conversion of stock number of common stock issued				226,663
Series A redeemable preferred stock
Organization And Description Of Business [Line Items]
Conversion of stock number of common stock issued				289
Conversion of stock shares, preferred stock shares issued				$ 1.4035
Series A redeemable preferred stock \| Holders of Series A and B preferred stock
Organization And Description Of Business [Line Items]
Conversion of stock, number of preferred stock issued				10,193
Series A redeemable preferred stock \| Parilis Biopharmaceuticals ("Parilis")
Organization And Description Of Business [Line Items]
Conversion of stock, number of preferred stock issued				1,626
Series B redeemable preferred stock
Organization And Description Of Business [Line Items]
Conversion of stock number of common stock issued				289
Conversion of stock shares, preferred stock shares issued				$ 1.2867

Liquidity (Detail Textuals) - USD ($)		1 Months Ended		3 Months Ended		12 Months Ended
Liquidity (Detail Textuals) - USD ($)	Jan. 06, 2017	Dec. 23, 2016	May 18, 2016	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Sep. 30, 2015
Liquidity [Line Items]
Net proceeds initial public offering						$ 37,074,996
Accumulated deficit				$ (166,492,370)		(147,393,548)	$ (94,064,286)
Aggregate indebtedness				10,000,000		4,600,000
Notes payable to stockholders				4,600,000		4,612,500	16,214,196
Proceeds from issuance of notes		$ 8,350,000		8,350,000			10,880,252
Repayment of senior secured bank loans		$ 2,400,000		$ 2,579,851	$ 180,058	$ 1,059,034	$ 725,598
Subsequent Event
Liquidity [Line Items]
Proceeds from issuance of notes	$ 1,650,000
IPO
Liquidity [Line Items]
Net proceeds initial public offering			$ 33,800,000

Basis of Presentation and Summary of Significant Accounting Policies (Details) - shares	3 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Sep. 30, 2015
Series A preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount		1,969,818
Series A redeemable preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount				1,034,181
Series B redeemable preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount				1,159,418
Performance-based stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	243,774	249,510	247,309
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	1,224,957	1,066,193	1,094,351
Convertible stockholder note
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount		96,618		96,618
Common stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	9,806,028		8,186,934

Basis of Presentation and Summary of Significant Accounting Policies (Detail Textuals) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Sep. 30, 2015
Accounting Policies [Abstract]
Reverse split			1-for-3.45
Restricted Cash			$ 216,086	$ 213,663
Prepaid research and development			$ 1,979,527	$ 355,182
Estimated useful lives			3 to 10 years
Methods of depreciation and amortization			Straight-line
Income tax expense (benefit) attributable to foreign withholding taxes in connection with collaboration and licensing agreements	$ 4,000	$ 52,000

Fair Value Measurements (Details) - USD ($)	Dec. 31, 2016	Sep. 30, 2015
Liabilities
Warrant liability	$ 4,128,727
Fair value measurements recurring basis \| Level 1
Liabilities
Stock-based compensation liability
Warrant liability
Fair value measurements recurring basis \| Level 2
Liabilities
Stock-based compensation liability
Warrant liability
Fair value measurements recurring basis \| Level 3
Liabilities
Stock-based compensation liability		$ 12,726,722
Warrant liability	$ 4,128,727

Fair Value Measurements (Details 1) - USD ($)	3 Months Ended	12 Months Ended
Fair Value Measurements (Details 1) - USD ($)	Dec. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at October 1, 2016		$ 12,726,722	$ 1,557,789
Change in fair value		2,391,862	11,168,933
Balance			$ 12,726,722
Warrant
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at October 1, 2016
Issuance of warrants	3,318,644
Change in fair value	810,083
Balance	$ 4,128,727

Fair Value Measurements (Details 2) - $ / shares	3 Months Ended	12 Months Ended
Fair Value Measurements (Details 2) - $ / shares	Dec. 31, 2016	Sep. 30, 2015
Warrant
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk-free interest rate	1.93%
Derived service period	5 years
Expected volatility	93.00%
Annual dividend yield	0.00%
Fair value of common stock	$ 3.01
Stock-based performance units ("PSUs"),
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk-free interest rate		1.40%
Derived service period		5 years
Expected volatility		60.00%
Annual dividend yield		0.00%
Fair value of common stock		$ 25.79

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

Property and Equipment (Details) - USD ($)	Dec. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 23,072,639	$ 22,920,493	$ 21,403,385
Less: accumulated depreciation and amortization	(6,631,720)	(5,961,940)	(3,643,447)
Property and equipment, net	16,440,919	16,958,553	17,759,938
Laboratory equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,486,716	11,452,858	10,936,364
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,031,739	10,031,739	9,889,521
Computer software and hardware
Property, Plant and Equipment [Line Items]
Property and equipment, gross	471,152	421,206	402,075
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,083,032	$ 1,014,690	$ 175,425

Property and Equipment (Details 1) - USD ($)	Dec. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
2017		$ 1,093,624
2018		341,740
Total future minimum lease payments under capital leases		1,435,364
Less: amounts representing interest		(137,379)
Less: current portion	$ (1,014,563)	(977,248)	$ (862,849)
Capital lease obligations, excluding current portion	$ 113,082	$ 320,737	$ 1,219,373

Property and Equipment (Detail Textuals) - USD ($)	3 Months Ended		12 Months Ended
Property and Equipment (Detail Textuals) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 669,780	$ 593,977	$ 2,394,279	$ 1,824,600
Accumulated depreciation related to leased equipment			732,002	407,210
Laboratory Equipment
Property, Plant and Equipment [Line Items]
Laboratory equipment under capital leases	3,692,913		3,630,683	$ 3,530,301
Accumulated depreciation related to leased equipment	$ 813,200		$ 732,002
Laboratory Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Term of capital leases	22 months		22 months
Capital leases interest rate	5.00%		5.00%
Laboratory Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Term of capital leases	36 months		36 months
Capital leases interest rate	19.40%		19.40%

Accrued Expenses (Details) - USD ($)	Dec. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Accrued Liabilities, Current [Abstract]
Compensation	$ 3,786,902	$ 3,884,386	$ 2,321,508
Research and development	1,991,612	1,343,910	951,759
Interest payable	345,087	234,754	806,475
Deferred offering costs		26,028	657,892
Professional fees	582,731	486,705	594,572
Director fees	146,250	73,125	414,421
Other accrued expenses	489,520	73,034	178,021
Accrued expenses	$ 7,342,102	$ 6,121,942	$ 5,924,648

Senior Secured Notes (Details)	Dec. 31, 2016 USD ($)
Debt Instrument [Line Items]
Senior secured notes	$ 4,933,661
Senior Notes [Member]
Debt Instrument [Line Items]
Senior secured notes	8,350,000
Unamortized debt discount	(3,416,339)
Senior secured notes	$ 4,933,661

Senior Secured Notes (Detail Textuals) - USD ($)			1 Months Ended		3 Months Ended		12 Months Ended
Senior Secured Notes (Detail Textuals) - USD ($)	Jan. 06, 2017	Dec. 15, 2016	Dec. 23, 2016	Dec. 22, 2016	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Sep. 30, 2015	May 31, 2016
Debt Instrument [Line Items]
Warrants to acquire common stock					379,500				1,520,268
Exercise price per share									$ 0.01
Aggregate principal amount of notes and warrants issued			$ 8,350,000		$ 8,350,000			$ 10,880,252
Repayment of senior secured bank loans			$ 2,400,000		2,579,851	$ 180,058	$ 1,059,034	$ 725,598
Interest expense on the notes					89,892
Subsequent event
Debt Instrument [Line Items]
Aggregate principal amount of notes and warrants issued	$ 1,650,000
Bridge note
Debt Instrument [Line Items]
Unsecured bridge notes					$ 1,850,000
Interest rate					15.00%
Debt Instrument, term					1 year
Senior note
Debt Instrument [Line Items]
Interest rate				5.00%
Senior secured promissory note
Debt instrument, maturity date				Dec. 22, 2017
Warrants to acquire common stock				2,300,000
Exercise price per share				$ 3.00
Term of warrants				5 years
Aggregate principal amount of notes and warrants issued				$ 8,350,000
Maximum number of shares called by warrants				1,920,500
Proceeds from issuance of secured debt				$ 6,500,000
Repayment of senior secured bank loans					$ 2,400,000
Intial fair value of warrant liability				3,300,000
Debt issuance costs				179,526
Senior note \| Maximum
Debt Instrument [Line Items]
Senior secured promissory note				$ 10,000,000

Common Stock Warrants (Details) - $ / shares	3 Months Ended
Common Stock Warrants (Details) - $ / shares	Dec. 31, 2016	Sep. 30, 2016	May 31, 2016
Class of Warrant or Right [Line Items]
Outstanding	9,806,028	7,373,820
Exercise price per share			$ 0.01
Series A warrant
Class of Warrant or Right [Line Items]
Outstanding	3,333,333	3,333,333
Exercise price per share	$ 6.60	$ 6.60	6.60
Expiration date	Feb. 18, 2018
Series B warrant
Class of Warrant or Right [Line Items]
Outstanding	3,333,333	3,333,333
Exercise price per share	$ 8.50	$ 8.50	$ 8.50
Expiration date	May 18, 2018
Common stock warrants issued with IPO
Class of Warrant or Right [Line Items]
Outstanding	1,218,862
Exercise price per share	$ 0.01
Expiration date	Nov. 11, 2019
Common stock warrants issued with senior secured notes
Class of Warrant or Right [Line Items]
Outstanding	1,920,500
Exercise price per share	$ 3.00
Expiration date	Dec. 22, 2021

Stockholder Notes (Details) - USD ($)	Dec. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Stockholder Notes [Line Items]
Stockholder notes	$ 4,600,000	$ 4,612,500	$ 16,214,196
Less: current portion	$ (4,612,500)	(4,612,500)	(14,214,196)
Long-tem stockholder notes			2,000,000
Series A repurchase notes
Stockholder Notes [Line Items]
Stockholder notes			800,534
Parilis Series A repurchase notes
Stockholder Notes [Line Items]
Stockholder notes			2,275,818
Restricted stock repurchase notes
Stockholder Notes [Line Items]
Stockholder notes		800,000	1,097,750
Common stock repurchase note
Stockholder Notes [Line Items]
Stockholder notes		2,812,500	2,812,500
Convertible note
Stockholder Notes [Line Items]
Stockholder notes			2,000,000
Working capital notes
Stockholder Notes [Line Items]
Stockholder notes		$ 1,000,000	$ 7,227,594

Stockholder Notes (Detail Textuals) - USD ($)	1 Months Ended			3 Months Ended	12 Months Ended
Stockholder Notes (Detail Textuals) - USD ($)	Dec. 31, 2014	Oct. 31, 2014	Jun. 30, 2014	Dec. 31, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2016
Stockholder Notes [Line Items]
Repayment of stockholder notes				$ 6,073,383	$ 11,601,696	$ 7,888,658
Interest expense related to the stockholder notes					589,675	1,869,113
Stockholder notes					$ 4,612,500	16,214,196	$ 4,600,000
Series A redeemable preferred stock
Stockholder Notes [Line Items]
Notes issued			$ 3,364,534
Interest rate			4.00%		4.00%
Notes offset against collateral						64,000
Principal payments of notes					$ 800,534	2,050,000
Stockholder notes						800,534
Series A redeemable preferred stock \| Investors
Stockholder Notes [Line Items]
Notes issued			$ 3,364,534
Notes offset against collateral						100,000
Series A redeemable preferred stock \| CEO
Stockholder Notes [Line Items]
Notes offset against collateral						64,000
Parilis Series A repurchase notes
Stockholder Notes [Line Items]
Notes issued		$ 2,761,818
Cumulative unpaid dividends		$ 331,818
Principal payments of notes					2,275,818	486,000
Number of unit repurchase		1,215
Preferred stock price per units		$ 2,000
Stockholder notes						2,275,818
Restricted stock repurchase notes
Stockholder Notes [Line Items]
Repayment of stockholder notes			297,750
Repurchase of restricted stock in exchange for notes payable			$ 1,097,750
Stockholder notes					800,000	1,097,750
Restricted stock repurchase notes \| Minimum
Stockholder Notes [Line Items]
Interest rate			0.00%
Restricted stock repurchase notes \| Maximum
Stockholder Notes [Line Items]
Interest rate			4.00%
Common stock repurchase note
Stockholder Notes [Line Items]
Interest rate	12.00%	12.00%
Repurchase of restricted stock in exchange for notes payable	$ 2,000,000	$ 2,000,000
Stockholder notes					2,812,500	2,812,500
Convertible note
Stockholder Notes [Line Items]
Stockholder notes						2,000,000
Working capital notes
Stockholder Notes [Line Items]
Note collateralized by common shares					300,000
Stockholder notes					$ 1,000,000	$ 7,227,594
Working capital notes \| Minimum
Stockholder Notes [Line Items]
Interest rate					0.00%
Working capital notes \| Maximum
Stockholder Notes [Line Items]
Interest rate					30.00%

Debt (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Debt Disclosure [Abstract]
Term loans-Bank	$ 2,526,502	$ 3,404,759
Equipment loans	354,979	334,093
Unamortized debt discount	(61,224)	(73,442)
Total loans payable	2,820,257	3,665,410
Less: current portion	(586,454)	(742,646)
Loans payable, noncurrent	$ 2,233,803	$ 2,922,764

Debt (Details 1) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Debt Disclosure [Abstract]
2017	$ 586,454
2018	515,793
2019	549,694
2020	569,142
2021	497,491
Thereafter	162,907
Total debt	$ 2,881,481	$ 2,922,764

Debt (Detail Textuals) - USD ($)	12 Months Ended
Debt (Detail Textuals) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Debt Instrument [Line Items]
Interest expense	$ 230,824	$ 287,280
Loans payable to bank
Debt Instrument [Line Items]
Debt instrument, frequency of periodic payment	Monthly
Payments of principal and interest	$ 48,048
Debt instrument, description of collateral	Collateralized by equipment, a secured interest in the personal residence of the founding stockholder and CEO, an unconditional personal guarantee by the founding stockholder and CEO and a $200,000 certificate of deposit.
Loans payable to bank \| Maximum
Debt Instrument [Line Items]
Debt Instrument, term	10 years
Loans payable to bank \| Minimum
Debt Instrument [Line Items]
Debt Instrument, term	7 years
Loans payable to bank \| Prime rate
Debt Instrument [Line Items]
Debt, interest rate	2.75%
Equipment loan
Debt Instrument [Line Items]
Debt instrument, frequency of periodic payment	Monthly
Payments of principal and interest	$ 19,379
Debt instrument, description of collateral	Collateralized by the related equipment purchased and an unconditional personal guarantee by the founding stockholder and CEO.
Equipment loan \| Maximum
Debt Instrument [Line Items]
Debt, interest rate	16.00%
Debt Instrument, term	5 years
Equipment loan \| Minimum
Debt Instrument [Line Items]
Debt, interest rate	12.00%
Debt Instrument, term	1 year

Commitments (Details)	Sep. 30, 2016 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2017	$ 1,551,513
2018	1,735,263
2019	1,753,323
2020	1,771,545
2021	1,596,976
Thereafter	3,541,990
Future minimum rental payments under noncancelable operating eases	$ 11,950,610

Commitments (Detail Textuals)	1 Months Ended		12 Months Ended
Commitments (Detail Textuals)	Jul. 30, 2016	Aug. 31, 2015 ft²	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)
Long-term Purchase Commitment [Line Items]
Rent expense under the leases			$ 1,619,019	$ 720,875
Defined contribution plan, maximum annual contributions per employee, percent			100.00%
Defined contribution plan, employer matching contribution, percent of match			100.00%
Description of defined contribution plan			The Company matches 100% of the first 3% of employee contributions.
Expense related to matching contribution			$ 191,097	$ 131,385
Office and operating space
Long-term Purchase Commitment [Line Items]
Description of Lessee Leasing Arrangements, Operating Leases	Term ending in June 2021.
Office and laboratory space
Long-term Purchase Commitment [Line Items]
Description of Lessee Leasing Arrangements, Operating Leases		Expire in March 2026
Net Rentable Area \| ft²		82,000
Technology License
Long-term Purchase Commitment [Line Items]
Long-term Purchase Commitment, Amount			$ 376,000

Redeemable Preferred Stock, Common Stock, Noncontrolling Interests and Stockholders' Equity (Deficit) (Detail Textuals) - USD ($)	1 Months Ended	3 Months Ended	4 Months Ended	12 Months Ended
	May 31, 2016	Dec. 31, 2015	Jan. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Stockholders Equity [Line Items]
Shares issued, price per share					$ 25.79
Proceeds from the sale of common stock		$ 11,318,690		$ 16,137,913	$ 41,249,998
Stock issued during period, value				16,137,913	$ 44,142,463
Proceeds from subscriptions receivable		$ 4,280,149		$ 4,280,149
Redeemable stock, shares issued				0	1,739,130
Series A warrant
Stockholders Equity [Line Items]
Shares issued during period	416,666
Series B warrant
Stockholders Equity [Line Items]
Shares issued during period	416,666
IPO and private placement
Stockholders Equity [Line Items]
Shares issued during period	5,833,334
Shares issued, price per share	$ 6.00
Proceeds from the sale of common stock	$ 33,784,205
Sonnet
Stockholders Equity [Line Items]
Promissory note amount					$ 826,561
Common stock
Stockholders Equity [Line Items]
Shares issued during period				573,388	1,765,511
Shares issued, price per share			$ 29.05		$ 25.79
Proceeds from the sale of common stock			$ 16,137,913
Stock issued during period, value				$ 5,734	$ 44,142,463
Conversion of Series A preferred stock in common stock				1,969,818
Common stock \| IPO and private placement
Stockholders Equity [Line Items]
Shares issued during period	833,332

Redeemable Preferred Stock, Common Stock, Noncontrolling Interests and Stockholders' Equity (Deficit) (Detail Textuals 1) - USD ($)	1 Months Ended	12 Months Ended
	May 31, 2016	Sep. 30, 2016	Dec. 31, 2016
Stockholders Equity [Line Items]
Exercise price per share	$ 0.01
Warrants issued		7,373,820	9,806,028
Number of common stock called by warrants	1,520,268		379,500
Other common stock warrants description	In May 2016, upon the closing of the IPO, the Company issued warrants to acquire an aggregate of 1,520,268 shares of its common stock to certain of the investors party to that certain investors’ rights agreement dated March 10, 2014, as amended, pursuant to the terms of an amendment to such agreement dated April 26, 2016. The warrants issued to these investors are not exercisable until 180 days after May 12, 2016, and have an initial exercise price of $0.01 per share, which may increase to $1.00 per share under certain circumstances, and expire November 18, 2019.
Deemed dividend upon issuance of warrants to common stockholders		$ 7,373,820
Series A warrant
Stockholders Equity [Line Items]
Exercise price per share	$ 6.60	$ 6.60	$ 6.60
Warrants issued		3,333,333	3,333,333
Series B warrant
Stockholders Equity [Line Items]
Exercise price per share	$ 8.50	$ 8.50	$ 8.50
Warrants issued		3,333,333	3,333,333

Stock Based Compensation (Details) - 2015 Equity Incentive Plan - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2,464,052	$ 2,490,034	$ 12,450,079	$ 11,177,858
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	386,109	1,356,408	2,044,379	5,817,830
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2,077,943	$ 1,133,626	$ 10,405,700	$ 5,360,028

Stock Based Compensation (Details 1) - 2015 Equity Incentive Plan - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2,464,052	$ 2,490,034	$ 12,450,079	$ 11,177,858
Equity-classified compensation
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	2,464,052	98,172	10,058,217	8,925
Liability-classified compensation
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 2,391,862	$ 2,391,862	$ 11,168,933

Stock Based Compensation (Details 2) - Performance-based stock units - $ / shares	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Number of PSUs
Balance at October 1	247,309	687,013	658,498
Granted			39,988
Forfeitures	(3,535)	(4,924)	(11,473)
Exchanged for restricted stock units		(434,780)
Balance at September 30	243,774	247,309	687,013
Base Price Per PSU
Balance at October 1	$ 6.33	$ 3.45	$ 3.45
Granted			3.45
Forfeitures	7.40	4.85	3.45
Exchanged for restricted stock units		3.45
Balance at September 30	$ 6.35	$ 6.33	$ 3.45

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

Stock Based Compensation (Details 4) - Restricted stock units - $ / shares	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016
Number of RSUs
Balance at October 1	1,094,351
Granted	615,000	705,311
Vested and settled	(483,913)
Forfeitures	(481)	(2,263)
Issued in connection with PSU exchange		391,303
Balance at September 30	1,224,957	1,094,351
Weighted Average Grant Date Fair Value
Balance at October 1	$ 28.61
Granted	2.11	28.31
Vested and settled	29.05
Forfeitures	29.05	13.78
Issued in connection with PSU exchange		29.05
Balance at September 30	$ 15.13	$ 28.61

Stock Based Compensation (Detail Textuals) - shares	Dec. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares, outstanding	23,588,031	22,802,778	9,436,294
2011 Equity Incentive Plan \| Officers, Employees, Consultants and Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock reserved for issuance	1,159,420	1,159,420
Common stock, shares, outstanding		247,309
Number of shares available for grant	243,774

Stock Based Compensation (Detail Textuals 1) - shares	Jul. 11, 2016	Dec. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares, outstanding		23,588,031	22,802,778	9,436,294
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares outstanding under the plan		1,224,957	1,094,351
2015 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares can be issued		1,930,460		1,930,460
Maximum number of shares increased	684,083
Percentage of outstanding common stock increased	3.00%
2015 Equity Incentive Plan \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares, outstanding			1,094,351
Number of shares available for grant		221,590	836,109
Common stock shares outstanding under the plan		1,224,957

Stock Based Compensation (Detail Textuals 2) - USD ($)	3 Months Ended		12 Months Ended
Stock Based Compensation (Detail Textuals 2) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional stock-based compensation as result of modification			$ 98,172
Performance-based stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of PSUs	10 years		10 years
Condition for early exercise of stock based performance units	Corporate valuation in excess of $400 million		excess of $400 million
Number of PSU exchanged for RSU			434,780
Share price		$ 25.74		$ 22.22
Unamortized expense	$ 532,508		$ 646,531
Period for recognition of unamortized expense	1 year 5 months 16 days		1 year 8 months 16 days
Performance-based stock units \| After third anniversary from issuance of stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	50.00%		50.00%
Performance-based stock units \| Fourth anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	50.00%		50.00%
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSU issued in connection with PSU			391,303
Unamortized expense	$ 11,402,327		$ 12,527,573
Period for recognition of unamortized expense	1 year 5 months 1 day		1 year 6 months 11 days
Restricted stock units \| After third anniversary from issuance of stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			50.00%

Stock Based Compensation (Detail Textuals 3) - Restricted stock units - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested in period	483,913
Unamortized expense	$ 11,402,327	$ 12,527,573
Period for recognition of unamortized expense	1 year 5 months 1 day	1 year 6 months 11 days
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of RSUs	2 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of RSUs	4 years
IPO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested in period		387,868
Remaining number of shares vested in period		708,303
Vesting on each of first and second anniversaries of recipient's grant date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested in period		525,999
Vesting percentage		50.00%
One-third vesting on each of first, second, and third anniversaries of recipient's hire date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested in period		21,738
Description of vesting percentage		one-third vesting
Vesting on each of third and fourth anniversaries of recipient's hire date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested in period		160,566
Vesting percentage		50.00%

Collaboration Arrangements (Detail Textuals) - USD ($)	1 Months Ended			12 Months Ended
Collaboration Arrangements (Detail Textuals) - USD ($)	Jun. 30, 2014	Aug. 31, 2013	May 31, 2013	Sep. 30, 2016	Sep. 30, 2015
Huahai agreement
Revenue Recognition, Milestone Method [Line Items]
Revenue reorganization deferred revenue				$ 1,175,580	$ 881,685
Deferred revenue				3,752,950	4,928,530
Huahai agreement \| Substantive milestones
Revenue Recognition, Milestone Method [Line Items]
Milestone payments received			$ 8,500,000
Revenue reorganization deferred revenue					2,000,000
Huahai agreement \| Non-substantive milestones
Revenue Recognition, Milestone Method [Line Items]
Milestone payments received			$ 7,500,000
IPCA License and Collaboration Agreement
Revenue Recognition, Milestone Method [Line Items]
Revenue reorganization deferred revenue				421,732	402,377
Deferred revenue				1,370,630	1,792,362
IPCA License and Collaboration Agreement \| Substantive milestones
Revenue Recognition, Milestone Method [Line Items]
Milestone payments received		$ 1,000,000
Revenue reorganization deferred revenue					500,000
IPCA License and Collaboration Agreement \| Non-substantive milestones
Revenue Recognition, Milestone Method [Line Items]
Milestone payments received		$ 2,400,000
Strategic Collaboration and Non-Exclusive License Agreement
Revenue Recognition, Milestone Method [Line Items]
Revenue reorganization deferred revenue				0	800,000
Liomont agreement
Revenue Recognition, Milestone Method [Line Items]
Milestone payments received	$ 2,000,000
Revenue reorganization deferred revenue				382,264	341,280
Deferred revenue				$ 1,242,365	$ 1,624,629
Liomont agreement \| Substantive milestones
Revenue Recognition, Milestone Method [Line Items]
Milestone payments received	2,000,000
Liomont agreement \| Non-substantive milestones
Revenue Recognition, Milestone Method [Line Items]
Milestone payments received	$ 1,000,000

Related-Party Transactions (Detail Textuals)	1 Months Ended	3 Months Ended	12 Months Ended
Related-Party Transactions (Detail Textuals)	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($) Director shares	Sep. 30, 2014 USD ($) shares
Related Party Transaction [Line Items]
Loan from director		$ 187,388	$ 826,561
CEO
Related Party Transaction [Line Items]
Non interest bearing advances				$ 783,707
Repayment of advances				395,257
Accrued compensation payments				$ 117,506
Director
Related Party Transaction [Line Items]
Loan from director	$ 1,000,000
Interest rate	24.00%			4.00%
Accrued interest	$ 128,219
Number of directors \| Director				3
Aggregate payment to preferred stockholder				$ 650,000
Issuance of stockholder notes				$ 1,850,000
Percentage of increase in interest rate				6.00%
Director \| Series A redeemable preferred stock
Related Party Transaction [Line Items]
Repurchase of shares \| shares				1,250	1,250
Accrued dividends				$ 326,354	$ 326,354

Income Taxes (Details) - USD ($)	12 Months Ended
Income Taxes (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
State tax, including sale of New Jersey losses and credits	$ 3,000	$ (725,969)
Foreign tax provision	100,000	535,858
Income tax expense (benefit)	$ 103,000	$ (190,111)

Income Taxes (Details 1)	12 Months Ended
Income Taxes (Details 1)	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
U.S. federal statutory rate	(34.00%)	(34.00%)
State taxes, net of federal benefit	(5.90%)	(5.50%)
Foreign withholding tax	0.20%	1.10%
Permanent differences		1.80%
Foreign tax credits		(1.10%)
Research and development credit		(6.90%)
Change in valuation allowance	40.00%	44.60%
Other	(0.10%)	(0.40%)
Effective income tax rate	0.20%	(0.40%)

Income Taxes (Details 2) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Deferred tax assets
Net operating loss carryforwards	$ 36,146,789	$ 20,164,392
Stock compensation	11,249,314	6,317,492
Deferred revenue	2,542,558	3,333,201
Research and development credit carryforward	757,701	5,979,964
Foreign tax credits	2,257,309	2,602,949
Accruals and others	1,287,592	1,072,422
Gross deferred tax assets	54,241,263	39,470,420
Less: valuation allowance	(52,737,104)	(38,694,795)
Deferred tax assets net of valuation allowance	1,504,159	775,625
Deferred tax liability:
Fixed assets	(1,504,159)	(775,625)
Net deferred tax assets

Income Taxes (Details 3) - USD ($)	12 Months Ended
Income Taxes (Details 3) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	$ 1,754,629	$ 1,564,411
Additions based on tax positions related to the current year	100,000	190,218
Balance at end of year	$ 1,854,629	$ 1,754,629

Income Taxes (Detail Textuals) - USD ($)	12 Months Ended
Income Taxes (Detail Textuals) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Operating Loss Carryforwards [Line Items]
Foreign withholding taxes	$ 100,000	$ 535,858
Research and development tax credit carryforwards	757,701	5,979,964
Foreign tax credit carryforwards	2,257,309	2,602,949
Increased in valuation allowance	14,000,000	21,300,000
New Jersey
Operating Loss Carryforwards [Line Items]
Receive cash from sale of net operating losses		$ 700,000
Net operating losses	37,000,000
Federal
Operating Loss Carryforwards [Line Items]
Net operating losses	99,800,000
Research and development tax credit carryforwards	800,000
Foreign tax credit carryforwards	2,300,000
Foreign tax credit carryforward included in unrecognized tax benefit	1,800,000
State
Operating Loss Carryforwards [Line Items]
Research and development tax credit carryforwards	$ 800,000

Subsequent Events (Detail Textuals) - USD ($)			1 Months Ended		3 Months Ended		12 Months Ended
Subsequent Events (Detail Textuals) - USD ($)	Jan. 06, 2017	Dec. 15, 2016	Dec. 23, 2016	Dec. 22, 2016	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 16, 2016	May 31, 2016
Subsequent Event [Line Items]
Amount of notes to be issued					$ 1,920,500
Warrants to acquire common stock					379,500					1,520,268
Exercise price per share										$ 0.01
Aggregate principal amount of notes and warrants issued			$ 8,350,000		$ 8,350,000			$ 10,880,252
Repayment of senior secured bank loans			$ 2,400,000		$ 2,579,851	$ 180,058	$ 1,059,034	$ 725,598
Warrants issued					9,806,028		7,373,820
Bridge note
Subsequent Event [Line Items]
Unsecured bridge notes					$ 1,850,000
Interest rate					15.00%
Debt Instrument, term					1 year
Senior note
Subsequent Event [Line Items]
Interest rate				5.00%
Senior secured promissory note
Debt instrument, maturity date				Dec. 22, 2017
Proceeds from issuance of secured debt				$ 6,500,000
Repayment of unsecured debt		$ 1,850,000
Amount of notes to be issued									$ 6,650,000
Warrants to acquire common stock				2,300,000
Exercise price per share				$ 3.00
Term of warrants				5 years
Aggregate principal amount of notes and warrants issued				$ 8,350,000
Repayment of senior secured bank loans					$ 2,400,000
Senior note \| Maximum
Subsequent Event [Line Items]
Senior secured promissory note				$ 10,000,000
Loans payable to bank \| Maximum
Subsequent Event [Line Items]
Debt Instrument, term							10 years
Subsequent event
Subsequent Event [Line Items]
Aggregate principal amount of notes and warrants issued	$ 1,650,000
Warrants issued	379,500