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LIQUIDITY AND MANAGEMENT'S PLAN
12 Months Ended
Sep. 30, 2017
Liquidity And Management Plan [Abstract]  
LIQUIDITY AND MANAGEMENT'S PLAN

NOTE A – LIQUIDITY AND MANAGEMENT’S PLAN

 

The Company has recurring net losses, which have resulted in an accumulated deficit of $236,673,155 as of September 30, 2017. The Company incurred a net loss of $12,855,767 and generated negative operating cash flow of $7,479,184 for the fiscal year ended September 30, 2017. At September 30, 2017 the Company had cash and cash equivalents of $2,959,781 and working capital of $4,945,304. The Company’s current capital resources include cash and cash equivalents, accounts receivable and inventories. Historically, the Company has financed its operations principally from the sale of equity securities. As discussed in Note G, on December 22, 2017, the Company entered into a securities purchase agreement with certain institutional investors providing for the purchase and sale of 2,735,000 shares of the Company’s common stock and warrants to purchase an aggregate of 2,735,000 shares of common stock in a registered direct offering with an aggregate gross proceeds of $4,786,250, at a combined purchase price of $1.75 per share for total expected net proceeds of approximately $4,200,000, after placement agent fees and other estimated offering costs.

 

The Company expects to finance operations and capital expenditures primarily through cash received from June 2017 private placements and the December 2017 registered direct offering, and the collection of its accounts receivables. The Company estimates that it will have sufficient cash and cash equivalents to fund operations for the next twelve months from the date of filing of the annual report.

 

The Company may require additional funds to expand the marketing and complete the continued development of its products, product manufacturing, and to fund expected additional losses from operations, until revenues are sufficient to cover the Company’s operating expenses. If revenues are not sufficient to cover the Company's operating expenses, and if the Company is not successful in obtaining necessary additional financing, it will most likely be forced to reduce operations.