10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Amendment No. 1 to

FORM 10-Q

(Mark One)

x        Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2015

¨         Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from __________________ to ______________________.

Commission file number 001-35527

CNS Response, Inc.

(Exact name of registrant as specified in its charter)

Delaware	87-0419387
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

85 Enterprise, Suite 410

Aliso Viejo, California 92656

(Address of principal executive offices) (Zip Code)

(949) 420-4400

(Registrant’s telephone number, including area code)

(Former name, former address, former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 

Yes x                                        No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 

Yes x                                       No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨    (Do not check if smaller reporting company)	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨                                        No x

As of May 15, 2015, the issuer had 101,667,409 shares of common stock, par value $.001 per share, issued and outstanding.

EXPLANATORY NOTE

The sole purpose of this amendment to our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015, originally filed with the Securities and Exchange Commission on May 15, 2015 (the “Original Form 10-Q”), is to furnish the exhibits required by Item 601(b)(101) (Interactive Data File) of Regulation S-K.

No other changes have been made to the Original Form 10-Q and the Original Form 10-Q has not been updated to reflect events occurring subsequent to the original filing date.

Item 6. Exhibits

The following exhibits are filed as part of this report or incorporated by reference herein:

Exhibit Number	Exhibit Title
31.1	Certification of Principal Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CNS Response, Inc.
Date: May 18, 2015		/s/ George Carpenter
	By:	George Carpenter
	Its:	Chief Executive Officer
		(Principal Executive Officer)
		/s/ Paul Buck
	By:	Paul Buck
	Its:	Chief Financial Officer
		(Principal Financial Officer)

EX-31.1

EXHIBIT 31.1

Certification of CEO Pursuant to

Securities Exchange Act Rules 13a-14 and 15d-14

as Adopted Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, George Carpenter, certify that:  

1. I have reviewed this quarterly report on Form 10-Q of CNS Response, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 18, 2015

/s/ George Carpenter

Name: George Carpenter

Title: Chief Executive Officer (Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

Certification of CFO Pursuant to

Securities Exchange Act Rules 13a-14 and 15d-14

as Adopted Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Paul Buck, certify that:  

1. I have reviewed this quarterly report on Form 10-Q of CNS Response, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 18, 2015

/s/ Paul Buck

Name: Paul Buck

Title: Chief Financial Officer (Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in connection with the filing of the Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 (the “Report”) by CNS Response, Inc. (the “Registrant”), the undersigned hereby certifies that to the best of his knowledge:

1.	the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: May 18, 2015	/s/ George Carpenter
	George Carpenter
	Chief Executive Officer (Principal Executive Officer)
Date: May 18, 2015	/s/ Paul Buck
	Paul Buck
	Chief Financial Officer (Principal Financial Officer)

XML

LOSS PER SHARE (Details) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Net loss for computation of basic net loss per share:
From continuing operations	$ (695,400)	$ (942,300)	$ (1,569,100)	$ (803,700)
From discontinued operations	(900)	300	(1,800)	(3,300)
Net loss	(696,300)	(942,000)	(1,570,900)	(807,000)
Basic net loss per share:
From continuing operations (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.01)
From discontinued operations (in dollars per share)	$ 0.00	$ 0.00	$ 0	$ 0
Basic net loss per share (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.01)
Net loss for computation of dilutive net loss per share:
From continuing operations	(695,400)	(942,300)	(1,569,100)	(803,700)
From discontinued operations	(900)	300	(1,800)	(3,300)
Net loss	$ (696,300)	$ (942,000)	$ (1,570,900)	$ (807,000)
Diluted net loss per share:
From continuing operations (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.01)
From discontinued operations (in dollars per share)	$ 0.00	$ 0.00	$ 0	$ 0
Basic net loss per share (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.01)
Basic weighted average shares outstanding	101,667,409	99,767,230	101,667,409	97,532,356
Dilutive common equivalent shares	0	0	0	0
Diluted weighted average common shares	101,667,409	99,767,230	101,667,409	97,532,356
Convertible debt [Member]
Diluted net loss per share:
Anti-dilutive common equivalent shares not included in the computation of dilutive net loss per share:	1,892,742	0	1,771,371	0
Warrants [Member]
Diluted net loss per share:
Anti-dilutive common equivalent shares not included in the computation of dilutive net loss per share:	781,833	1,222,097	871,027	1,630,016
Options [Member]
Diluted net loss per share:
Anti-dilutive common equivalent shares not included in the computation of dilutive net loss per share:	12,645,994	12,049,594	12,531,746	11,666,261

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STOCKHOLDERS' DEFICIT (Details 1) (Employee Stock Option [Member], USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding at the beginning of the period	12,417,499	12,417,499
Number of Shares, Granted	250,000
Number of Shares, Exercised	0
Number of Shares, Forfeited	0
Number of Shares, Outstanding at the end of the period	12,667,499	12,417,499
Weighted Average Exercise Price, Outstanding at the beginning of the period	$ 0.84	$ 0.84
Weighted Average Exercise Price, Granted	$ 0.25
Weighted Average Exercise Price, Exercised	$ 0
Weighted Average Exercise Price, Forfeited	$ 0
Weighted Average Exercise Price, Outstanding at the end of the period	$ 0.83	$ 0.84

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $)	Mar. 31, 2015
Liabilities
Secured Convertible Debt	$ 1,920,700
Conversion option liability	85,800
Total	2,006,500
Fair Value, Inputs, Level 1 [Member]
Liabilities
Secured Convertible Debt	0
Total	0
Fair Value, Inputs, Level 2 [Member]
Liabilities
Secured Convertible Debt	2,065,000
Conversion option liability	85,800
Total	2,150,800
Fair Value, Inputs, Level 3 [Member]
Liabilities
Secured Convertible Debt	0
Total	$ 0

XML

STOCKHOLDERS' DEFICIT (Details Textual) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended	1 Months Ended			4 Months Ended	1 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Sep. 30, 2014	Oct. 08, 2013	Jul. 23, 2014	Nov. 08, 2013	Feb. 14, 2014	Dec. 20, 2013	Jul. 31, 2014	May 21, 2014	Dec. 31, 2013	Mar. 26, 2013	Dec. 10, 2012	May 22, 2012	Aug. 03, 2006
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	180,000,000		180,000,000		180,000,000							150,000,000
Common stock, par value (in dollars per share)	$ 0.001		$ 0.001		0.001
Common stock, shares issued (in shares)	101,667,409		101,667,409		101,667,409
Common stock, shares outstanding (in shares)	101,667,409		101,667,409		101,667,409
Preferred stock, shares authorized (in shares)	15,000,000		15,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001		$ 0.001
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	$ 241,765		$ 241,765
Total Stock Shares Authorized	195,000,000		195,000,000
Gains (Losses) on Extinguishment of Debt, Total	0	0	0	1,105,200
Plan 2012 [Member]
Class of Stock [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance																333,334
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total			12,165,575
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	2,834,425		2,834,425
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized														5,500,000	5,500,000
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price													$ 0.25
Plan 2006 [Member]
Class of Stock [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance																	667,667
Amendment Plan 2012 [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized														15,000,000	333,334
Amendment Plan 2006 [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance	501,924		501,924		501,924
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	6,132		6,132		6,132
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	87,786		87,786		87,786
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period			70,825		70,825
Common Stock [Member]
Class of Stock [Line Items]
Warrants Exercised				608,309
Warrants Issued Exercise Price				$ 0.04718
Stock Issued During Period Shares Warrant Exercise				484,288
Minimum [Member] | Plan 2006 [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price					3.60
Maximum [Member] | Plan 2006 [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price					32.70
Monarch Capital Group Llc [Member]
Class of Stock [Line Items]
Debt Instrument, Face Amount					300,000
Warrants Issued Exercise Price					0.275
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted					120,000
Consultants [Member] | Plan 2006 [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term						12 months
Accredited Third Party Investor [Member] | Private Placement [Member]
Class of Stock [Line Items]
Share Price							$ 0.25
D&D Securities Inc [Member]
Class of Stock [Line Items]
Debt Instrument, Face Amount					115,000
Warrants Issued Exercise Price					0.25
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted					32,200
Twenty Nine Accredited Investors [Member] | Private Placement [Member]
Class of Stock [Line Items]
Share Price									$ 0.25
Eight Accredited Investors [Member] | Private Placement [Member]
Class of Stock [Line Items]
Stock issued for purchase of common stock (in shares)							1,040,000
Proceeds from Issuance of Private Placement							260,000
Consultants and Staff Excluding Managers [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total								700,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price								$ 0.25
Twenty Nine Accredited [Member] | Private Placement [Member]
Class of Stock [Line Items]
Stock issued for purchase of common stock (in shares)									5,900,000
Proceeds from Issuance of Private Placement									1,475,000
Red Chip Companies, Inc. [Member]
Class of Stock [Line Items]
Warrants Issued Exercise Price					0.25
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted					200,000
George Carpenter [Member]
Class of Stock [Line Items]
Extinguishment Of Salaries						98,000
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period						435,000
Staff [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period								48 months
Mr Paul Buck [Member]
Class of Stock [Line Items]
Extinguishment Of Salaries						106,500
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period						470,000
Stewart Navarre [Member]
Class of Stock [Line Items]
Extinguishment Of Salaries						83,600
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period						385,000
Brian MacDonald [Member]
Class of Stock [Line Items]
Extinguishment Of Salaries						66,700
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period						310,000
Two Creditors [Member] | Common Stock [Member]
Class of Stock [Line Items]
Debt Conversion, Original Debt, Amount										1,466,800
Debt Conversion, Converted Instrument, Shares Issued										1,446,380
Debt Conversion, Converted Instrument, Amount										361,500
Gains (Losses) on Extinguishment of Debt, Total										$ 1,105,200
Consultant [Member] | Plan 2012 [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	250,000										425,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 0.25										$ 0.26
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period								36 months			36 months

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DISCONTINUED OPERATIONS

6 Months Ended

Mar. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

3. DISCONTINUED OPERATIONS

On September 30, 2012 the Company discontinued its Clinical Services Operation at its wholly-owned subsidiary, NTC, because the operation had persistent losses which could no longer be supported by the Company. Furthermore, the Company chose to focus its limited cash resources to conduct its Walter Reed PEER Trial.

Summary Financial Data of Discontinued Operations:

Revenues, income before income taxes and net loss of NTC which are included in discontinued operations are as follows:

	Three Months ended March 31,
	2015		2014
Neuro-Therapy Clinic
Revenues	$	-	$	-
Expenses		900		(300)
Operating Loss before taxes	$	(900)	$	300
Taxes		-		-
Net Loss	$	(900)	$	300

	Six Months ended March 31,
	2015		2014
Neuro-Therapy Clinic
Revenues	$	-	$	-
Expenses		1,800		3,300
Operating Loss before taxes	$	(1,800)	$	(3,300)
Taxes		-		-
Net Loss	$	(1,800)	$	(3,300)

The assets and liabilities of NTC are as follows:

	(Unaudited) March 31,		September 30,
	2015		2014
ASSETS:
Assets of Discontinued Operations	$	-	$	-
LIABILITIES:
Accounts Payable	$	86,600	$	86,600
Accrued Payroll Liabilities		71,000		90,600
Liabilities of Discontinued Operations	$	157,600	$	177,200

XML

CONVERTIBLE DEBT AND EQUITY FINANCINGS (Details Textual) (USD $)	6 Months Ended	12 Months Ended
	Mar. 31, 2015	Sep. 30, 2014
Debt Instrument [Line Items]
Debt Instrument, Term	18 months
Common Stock, Par or Stated Value Per Share	$ 0.001	0.001
September 2014 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Convertible, Conversion Price	$ 0.25
Debt Instrument, Face Amount	$ 2,500,000
Debt Instrument, Convertible, Terms of Conversion Feature		(i) automatically upon the closing of a qualified offering of no less than $5 million at a conversion price equal to the lesser of $0.25 or 70% of the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share or (ii) voluntarily within 15 days of maturity at the lesser of a conversion price equal to $0.25 or the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share.
Common Stock, Par or Stated Value Per Share	$ 0.001

XML

CONVERTIBLE DEBT AND EQUITY FINANCINGS (Details) (USD $)	6 Months Ended
	Mar. 31, 2015	Sep. 30, 2014
Debt Instrument [Line Items]
Senior Secured 5% Notes Convertible at $0.25, Discount	$ (144,300)	$ (174,200)
Senior Secured 5% Notes Convertible at $0.25, Carrying Value	1,920,700	1,475,800
September 2014 Notes [Member]
Debt Instrument [Line Items]
Senior Secured 5% Notes Convertible at $0.25, Balance	2,065,000
Senior Secured 5% Notes Convertible at $0.25, Discount	(144,300)
Senior Secured 5% Notes Convertible at $0.25, Carrying Value	1,920,700
RSJ Private Equity [Member] | September 2014 Notes [Member]
Debt Instrument [Line Items]
Senior Secured 5% Notes Convertible at $0.25, Due Date	Mar. 21, 2016
Senior Secured 5% Notes Convertible at $0.25, Balance	750,000
Senior Secured 5% Notes Convertible at $0.25, Discount	(44,600)
Senior Secured 5% Notes Convertible at $0.25, Carrying Value	705,400
Accredited Investors [Member] | September 2014 Notes [Member]
Debt Instrument [Line Items]
Senior Secured 5% Notes Convertible at $0.25, Due Date	Mar. 21, 2016
Senior Secured 5% Notes Convertible at $0.25, Balance	300,000
Senior Secured 5% Notes Convertible at $0.25, Discount	(19,100)
Senior Secured 5% Notes Convertible at $0.25, Carrying Value	280,900
John Pappajohn [Member] | September 2014 Notes [Member]
Debt Instrument [Line Items]
Senior Secured 5% Notes Convertible at $0.25, Due Date	Mar. 21, 2016
Senior Secured 5% Notes Convertible at $0.25, Balance	300,000
Senior Secured 5% Notes Convertible at $0.25, Discount	(23,300)
Senior Secured 5% Notes Convertible at $0.25, Carrying Value	276,700
Tierney Family Trust [Member] | September 2014 Notes [Member]
Debt Instrument [Line Items]
Senior Secured 5% Notes Convertible at $0.25, Due Date	Mar. 21, 2016
Senior Secured 5% Notes Convertible at $0.25, Balance	415,000
Senior Secured 5% Notes Convertible at $0.25, Discount	(34,100)
Senior Secured 5% Notes Convertible at $0.25, Carrying Value	380,900
Oman Ventures [Member] | September 2014 Notes [Member]
Debt Instrument [Line Items]
Senior Secured 5% Notes Convertible at $0.25, Due Date	Mar. 21, 2016
Senior Secured 5% Notes Convertible at $0.25, Balance	200,000
Senior Secured 5% Notes Convertible at $0.25, Discount	(16,900)
Senior Secured 5% Notes Convertible at $0.25, Carrying Value	183,100
Follman Family Trust [Member] | September 2014 Notes [Member]
Debt Instrument [Line Items]
Senior Secured 5% Notes Convertible at $0.25, Due Date	Mar. 21, 2016
Senior Secured 5% Notes Convertible at $0.25, Balance	100,000
Senior Secured 5% Notes Convertible at $0.25, Discount	(6,300)
Senior Secured 5% Notes Convertible at $0.25, Carrying Value	$ 93,700

XML

DERIVATIVE LIABILITIES (Details) (Derivative Financial Instruments, Liabilities [Member])	6 Months Ended
	Mar. 31, 2015
Derivative Financial Instruments, Liabilities [Member]
Derivatives, Fair Value [Line Items]
Annual dividend yield	0.00%
Expected life (years)	6 months
Risk-free interest rate	0.14%
Expected volatility	64.22%

XML

DERIVATIVE LIABILITIES (Details Textual) (USD $)	3 Months Ended	6 Months Ended
	Mar. 31, 2015	Mar. 31, 2015	Sep. 30, 2014	Sep. 22, 2014
Derivatives, Fair Value [Line Items]
Derivative Liability	$ 85,800	$ 85,800
Derivative, Gain on Derivative		99,300
Derivative Financial Instruments, Liabilities [Member] | September 2014 Notes [Member]
Derivatives, Fair Value [Line Items]
Proceeds from Convertible Debt		2,070,000
Derivative Liability	85,800	85,800	153,100	179,200
Derivative, Gain on Derivative	$ 139,200	$ 99,300
Derivative Financial Instruments, Liabilities [Member] | Maximum [Member] | September 2014 Notes [Member]
Derivatives, Fair Value [Line Items]
Debt Instrument, Convertible, Conversion Price	$ 0.25	$ 0.25
Derivative Financial Instruments, Liabilities [Member] | Minimum [Member] | September 2014 Notes [Member]
Derivatives, Fair Value [Line Items]
Debt Instrument, Convertible, Conversion Price	$ 0.10	$ 0.10

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The unaudited condensed consolidated financial statements of CNS Response, Inc. (“CNS,” “we,” “us,” “our” or the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and include all the accounts of CNS and its wholly owned subsidiaries CNS California and NTC. Certain information and note disclosures, normally included in financial statements prepared in accordance with GAAP, have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of our financial position as of March 31, 2015 and our operating results, cash flows, and changes in stockholders’ deficit for the interim periods presented. The September 30, 2014 balance sheet was derived from our audited consolidated financial statements but does not include all disclosures required by GAAP. These unaudited condensed consolidated financial statements and the related notes should be read in conjunction with our audited consolidated financial statements and notes for the year ended September 30, 2014, which are included in our annual report on Form 10-K, filed with the Securities and Exchange Commission on December 29, 2014.

The preparation of financial statements in accordance 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 and revenues and expenses in the financial statements. Examples of estimates subject to possible revision based upon the outcome of future events include, among others, recoverability of long-lived assets and goodwill, stock-based compensation, the allowance for doubtful accounts, the valuation of equity instruments, use and other taxes. In the opinion of management, these unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments, except as otherwise indicated) necessary for fair presentation for the periods presented as required by regulation S-X, Rule 10-01. Actual results could differ from those estimates.

The results of operations for the six months ended March 31, 2015 are not necessarily indicative of the results that may be expected for future periods or for the year ending September 30, 2015.

Basis of Consolidation

The condensed consolidated financial statements include the accounts of CNS Response, Inc., an inactive parent company, and its wholly owned subsidiaries CNS California and NTC.  All significant intercompany transactions have been eliminated in consolidation. NTC is accounted for as a discontinued operation. See Note 3. Discontinued Operations.

Use of Estimates

The preparation of the condensed consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expense and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, doubtful accounts, intangible assets, income taxes, valuation of equity instruments, accrued liabilities, contingencies and litigation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates.

Cash

The Company deposits its cash with major financial institutions and may at times exceed the federally insured limit of $250,000.  At March 31, 2015 cash exceeded the federally insured limit by $60,000.  The Company believes that the risk of loss is minimal. To date, the Company has not experienced any losses related to cash deposits with financial institutions.

Derivative Liabilities

The Company evaluates all of its agreements to determine if such instruments have derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Black-Scholes option pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. As of March 31, 2015, the Company’s only derivative financial instrument were a series of convertible notes with a “reset” and “dilutive issuance” clause within the notes relating to the conversion price from dilutive share issuance. See Notes 4, Convertible Debt and Equity Financings & 5, Derivative Liabilities.

Fair Value of Financial Instruments

ASC 825-10 (formerly Statement of Financial Accounting Standards (“SFAS”) 107, Disclosures about Fair Value of Financial Instruments) defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The Company considers the carrying amount of cash, accounts receivable, other receivables, accounts payable and accrued liabilities, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization.

The Company also analyzes all financial instruments with features of both liabilities and equity under ASC 480-10 (formerly SFAS 150, Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity), ASC 815-10 (formerly SFAS 133, Accounting for Derivative Instruments and Hedging Activities) and ASC 815-40 (formerly Emerging Issues Task Force (“EITF”) 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock).

The Company adopted ASC 820-10 (formerly SFAS 157, Fair Value Measurements) on January 1, 2008. ASC 820-10 defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

· Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets;

· Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments; and

· Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

The Company used Level 2 inputs for its valuation methodology for the conversion option liability in determining the fair value using the Black-Scholes option-pricing model with the following assumption inputs:

	March 31, 2015
Annual dividend yield	-
Expected life (years)	0.5
Risk-free interest rate	0.14	%
Expected volatility	64	%

	Carrying Value		Fair Value Measurements at
	As of		March 31, 2015
	March 31,		Using Fair Value Hierarchy
	2015		Level 1		Level 2		Level 3
Liabilities
Secured Convertible Debt	$	1,920,700	$	-	$	2,065,000	$	-
Conversion option liability		85,800				85,800
Total	$	2,006,500	$	-	$	2,150,800	$	-

For the six months ending March 31, 2015 the Company recognized a gain of $99,300 on the change in fair value of derivative liabilities.  For the six months ending March 31, 2014 the Company had no derivative liabilities or change in fair valuation thereon.  As at March 31, 2015 the Company did not identify any other assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with ASC 825-10.  

Accounts Receivable

The Company estimates the collectability of customer receivables on an ongoing basis by reviewing past-due invoices and assessing the current creditworthiness of each customer.  Allowances are provided for specific receivables deemed to be at risk for collection.

Furniture and Equipment

Fixed assets, which are recorded at cost, consist of office furniture and equipment and are depreciated over their estimated useful life on a straight-line basis.  The useful life of these assets is estimated to be from 3 to 5 years.  Depreciation for the six months ended March 31, 2015 and 2014 was $4,400 and $5,400 respectively.  Accumulated depreciation at March 31, 2015 and 2014 was $72,300 and $65,200 respectively.

Offering Costs

The Company applies ASC 505-10, Costs of an Equity Transaction, for recognition of offering costs. In accordance with ASC 505-10, the Company treats incremental direct costs incurred to issue shares classified as equity, as a reduction of the proceeds. Direct costs incurred before shares classified as equity are issued are classified as an asset until the stock is issued. Indirect costs such as management salaries or other general and administrative expenses and deferred costs of an aborted offering are expensed.

Long-Lived Assets

As required by ASC 350-30 (formerly SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets), the Company reviews the carrying value of its long-lived assets whenever events or changes in circumstances indicate that the historical cost-carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of the asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value. No impairment loss was recorded for the three and six months ended March 31, 2015 and 2014.

The Company adopted Accounting Standards Update (“ASU”) 2012-02,  Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. The new guidance is intended to reduce the complexity and costs of the annual impairment test for indefinite-lived intangible assets by allowing companies to make a qualitative evaluation about the likelihood of impairment to determine whether it should perform a quantitative impairment test.

Accounts Payable

This consists of trade payables of which $476,900 is for legal services.

Deferred Revenue

Deferred revenue represents revenue collected but not earned as of March 31, 2015. This represents a philanthropic grant for the payment of PEER Reports ordered for the Walter Reed clinical trial during calendar 2014, which are otherwise not paid for by Walter Reed or Fort Belvoir. These deferred revenue grant funds as of March 31, 2015 and 2014, are $45,900 and $47,000.

Revenues

The Company recognizes revenue on services, being the delivery of PEER Reports to medical providers, in accordance with the Financial Accounting Standards Board (“FASB”) ASC No. 605, Revenue Recognition.  In all cases, revenue is recognized when we have persuasive evidence of an arrangement, a determinable fee, when collection is considered to be reasonably assured and the services are delivered.

Research and Development Expenses

The Company charges all research and development expenses to operations as incurred.

Advertising Expenses

The Company charges all advertising expenses to operations as incurred. For the six months ended March 31, 2015 we incurred advertising expenses of $29,000; for the six months ended March 31, 2014 we incurred $10,000 in advertising expenses.

Stock-Based Compensation

The Company has adopted ASC 718-20 (formerly SFAS No. 123R, Share-Based Payment - revised 2004) and related interpretations which establish the accounting for equity instruments exchanged for employee services. Under ASC 718-20, share-based compensation cost to option grantee, being employees, directors and consultants, and is measured at the grant date based on the calculated fair value of the award. See Note 5. Derivative Liabilities for further discussion on valuations. The expense is recognized over the option grantees’ requisite service period, generally the vesting period of the award.

Comprehensive Loss

ASC 220-10 (formerly, SFAS No. 130, Reporting Comprehensive Income), requires disclosure of all components of comprehensive income (loss) on an annual and interim basis.  Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources.  The Company’s comprehensive loss is the same as its reported net loss for the six months March 31, 2015 and 2014.

Loss per Share

The Company has adopted GAAP regarding earnings (loss) per share, which requires presentation of basic and diluted earnings (loss) per share in conjunction with the disclosure of the methodology used in computing such earnings (loss) per share.

Basic earnings (loss) per share are computed by dividing income (loss) available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings (loss) per share takes into account the potential dilution that could occur if securities or other contracts to issue Common Stock were exercised and converted into Common Stock.

Recent Accounting Pronouncements

Apart from the below-mentioned recent accounting pronouncements, there are no new accounting pronouncements that are currently applicable to the Company.

In November 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-17 Business Combinations (topic 805)- Pushdown Accounting. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. An acquired entity should determine whether to elect to apply pushdown accounting for each individual change-in-control event in which an acquirer obtains control of the acquired entity. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. An election to apply pushdown accounting in a reporting period after the reporting period in which the change-in-control event occurred should be considered a change in accounting principle in accordance with Topic 250, Accounting Changes and Error Corrections. If pushdown accounting is applied to an individual change-in-control event, that election is irrevocable. The Company does not expect the adoption of the standard update to have a material impact on its consolidated financial position or results of operations. 

In November 2014, the FASB issued ASU No. 2014-16 Derivatives and Hedging (Topic 815) Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. Entities commonly raise capital by issuing different classes of shares, including preferred stock, that entitle the holders to certain preferences and rights over the other shareholders. The specific terms of those shares may include conversion rights, redemption rights, voting rights, and liquidation and dividend payment preferences, among other features. One or more of those features may meet the definition of a derivative under generally accepted accounting principles (GAAP). Shares that include such embedded derivative features are referred to as hybrid financial instruments. For hybrid financial instruments issued in the form of a share, an entity (an issuer or an investor) should determine the nature of the host contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each term and feature on the basis of relevant facts and circumstances. That is, an entity should determine the nature of the host contract by considering the economic characteristics and risks of the entire hybrid financial instrument, including the embedded derivative feature that is being evaluated for separate accounting from the host contract. The Company does not expect the adoption of the standard update to have a material impact on its consolidated financial position or results of operations.

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STOCKHOLDERS' DEFICIT (Details) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	$ 99,800	$ 303,000	$ 162,200	$ 666,900
Cost of Neurometric Services revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	0	2,200	0	5,100
Research [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	10,400	21,200	20,800	46,900
Product Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	15,500	67,000	34,000	138,100
Sales and marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	53,400	24,700	63,300	51,000
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	$ 20,500	$ 187,900	$ 44,100	$ 425,800

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COMMITMENTS AND CONTINGENT LIABILITIES (Details) (USD $)	Mar. 31, 2015
Operating Lease Obligations
Operating Lease Obligations, Less than 1 year	$ 45,200
Operating Lease Obligations, 1 to 3 years	0
Operating Lease Obligations, 3-5 years	0
Operating Lease Obligations, More than 5 years	0
Operating Lease Obligations, Total	45,200
Capital Lease Obligations
Capital Lease Obligations, Less than 1 year	3,400
Capital Lease Obligations, 1 to 3 years	700
Capital Lease Obligations, 3-5years	0
Capital Lease Obligations, More than 5 years	0
Capital Lease Obligations, Total	4,100
Total Lease Obligations
Total, Less than 1 year	48,600
Total, 1 to 3 years	700
Total, 3-5 years	0
Total, More than 5 years	0
Total	$ 49,300

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
REVENUES
Neurometric Services	$ 20,900	$ 39,300	$ 43,700	$ 84,300
Cost of neurometric services revenue	1,800	29,400	2,900	66,900
Research	22,900	40,500	46,700	72,200
Product development	191,900	347,700	437,500	674,300
Sales and marketing	175,200	93,400	264,900	184,900
General and administrative	408,300	469,000	850,100	990,600
Total operating expenses	800,100	980,000	1,602,100	1,988,900
OPERATING LOSS	(779,200)	(940,700)	(1,558,400)	(1,904,600)
OTHER INCOME (EXPENSE):
Interest expense, net	(54,600)	(600)	(106,000)	(1,700)
Gain on extinguishment of debt	0	0	0	1,105,200
Gain on derivative liabilities	139,200	0	99,300	0
Total other income (expense)	84,600	(600)	(6,700)	1,103,500
LOSS BEFORE PROVISION FOR INCOME TAXES	(694,600)	(941,300)	(1,565,100)	(801,100)
Provision for income taxes	800	1,000	4,000	2,600
LOSS FROM CONTINUING OPERATIONS	(695,400)	(942,300)	(1,569,100)	(803,700)
Gain (Loss) from discontinued operations	(900)	300	(1,800)	(3,300)
NET LOSS	$ (696,300)	$ (942,000)	$ (1,570,900)	$ (807,000)
BASIC AND DILUTED LOSS PER SHARE:
From continuing operations (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.01)
From discontinued operations (in dollars per share)	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Combined Net Loss (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.01)
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic and Diluted	101,667,409	99,767,230	101,667,409	97,532,356

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (USD $)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]
BALANCE - Beginning of the period (Audited) at Sep. 30, 2013	$ (2,160,000)	$ 92,700	$ 54,298,000	$ (56,550,700)
BALANCE - Beginning of the period (Audited) (in shares) at Sep. 30, 2013		92,716,562
Stock-based compensation	666,900	0	666,900	0
Stock issued for private placement shares	1,431,000	5,900	1,425,100	0
Stock issued for private placement shares (in shares)		5,900,000
Stock issued in lieu of cash to creditors	361,500	1,400	360,100	0
Stock issued in lieu of cash to creditors (in shares)		1,446,380
Stock issued for cashless exercise of warrants	0	500	(500)	0
Stock issued for cashless exercise of warrants (in shares)		484,288
Net income loss	(807,000)	0	0	(807,000)
Balance at end of the period at Mar. 31, 2014	(507,600)	100,500	56,749,600	(57,357,700)
Balance at end of the period (in shares) at Mar. 31, 2014		100,547,230
BALANCE - Beginning of the period (Audited) at Sep. 30, 2014	(1,761,600)	101,700	57,350,200	(59,213,500)
BALANCE - Beginning of the period (Audited) (in shares) at Sep. 30, 2014		101,667,409
Stock-based compensation	162,200	0	162,200	0
Warrant Valuation - Investor Relations	21,600	0	21,600	0
Net income loss	(1,570,900)	0	0	(1,570,900)
Balance at end of the period at Mar. 31, 2015	$ (3,148,700)	$ 101,700	$ 57,534,000	$ (60,784,400)
Balance at end of the period (in shares) at Mar. 31, 2015		101,667,409

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STOCKHOLDERS' DEFICIT (Details 3) (Warrant [Member], USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding at the beginning of the period	788,724	814,744
Number of Shares, Granted	0	200,000
Number of Shares, Exercised	0	0
Number of Shares, Forfeited	(7,200)	(226,020)
Number of Shares, Outstanding at the end of the period	781,524	788,724
Weighted Average Exercise Price, Outstanding at the beginning of the period	$ 0.61	$ 3.07
Weighted Average Exercise Price, Granted	$ 0	$ 0.25
Weighted Average Exercise Price, Exercised	$ 0	$ 0
Weighted Average Exercise Price, Forfeited	$ 9.15	$ 9.14
Weighted Average Exercise Price, Outstanding at the end of the period	$ 0.53	$ 0.61

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LOSS PER SHARE (Tables)

6 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

A summary of the net loss and shares used to compute net loss per share for the three months ended March 31, 2015 and 2014 is as follows:

	Three months ended March 31,
	2015		2014
Net loss for computation of basic net loss per share:
From continuing operations	$	(695,400)	$	(942,300)
From discontinued operations		(900)		300
Net loss	$	(696,300)	$	(942,000)
Basic net loss per share:
From continuing operations	$	(0.01)	$	(0.01)
From discontinued operations		0.00		0.00
Basic net loss per share	$	(0.01)	$	(0.01)
Net loss for computation of dilutive net loss per share:
From continuing operations	$	(695,400)	$	(942,300)
From discontinued operations		(900)		300
Net loss	$	(696,300)	$	(942,000)
Diluted net loss per share:
From continuing operations	$	(0.01)	$	(0.01)
From discontinued operations		0.00		0.00
Basic net loss per share	$	(0.01)	$	(0.01)
Basic weighted average shares outstanding		101,667,409		99,767,230
Dilutive common equivalent shares		-		-
Diluted weighted average common shares		101,667,409		99,767,230
Anti-dilutive common equivalent shares not included in the computation of dilutive net loss per share:
Convertible debt		1,892,742		-
Warrants		781,833		1,222,097
Options		12,645,994		12,049,594

 A summary of the net loss and shares used to compute net loss per share for the six months ended March 31, 2015 and 2014 is as follows:

	Six months ended March 31,
	2015		2014
Net loss for computation of basic net loss per share:
From continuing operations	$	(1,596,100)	$	(803,700)
From discontinued operations		(1,800)		(3,300)
Net loss	$	(1,570,900)	$	(807,000)
Basic net loss per share:
From continuing operations	$	(0.02)	$	(0.01)
From discontinued operations		0.00		0.00
Basic net loss per share	$	(0.02)	$	(0.01)
Net loss for computation of dilutive net loss per share:
From continuing operations	$	(1,596,100)	$	(803,700)
From discontinued operations		(1,800)		(3,300)
Net loss	$	(1,570,900)	$	(807,000)
Diluted net loss per share:
From continuing operations	$	(0.02)	$	(0.01)
From discontinued operations		0.00		0.00
Basic net loss per share	$	(0.02)	$	(0.01)
Basic weighted average shares outstanding		101,667,409		97,532,356
Dilutive common equivalent shares		-		-
Diluted weighted average common shares		101,667,409		97,532,356
Anti-dilutive common equivalent shares not included in the computation of dilutive net loss per share:
Convertible debt		1,771,371		-
Warrants		871,027		1,630,016
Options		12,531,746		11,666,261

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STOCKHOLDERS' DEFICIT (Details 4) (Warrant [Member], USD $)	6 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	$ 0.53	$ 0.61	$ 3.07
Options Outstanding, Number of Shares	781,524
Options Outstanding, Weighted Average Exercise Price	$ 0.53
Stock Option One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	$ 0.04718
Options Outstanding, Number of Shares	38,152
Options Outstanding, Expiration Date	03/2018
Options Outstanding, Weighted Average Exercise Price	$ 0.04718
Stock Option Two [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	$ 0.25
Options Outstanding, Number of Shares	332,200
Options Outstanding, Weighted Average Exercise Price	$ 0.25
Stock Option Two [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Expiration Date	07/2017
Stock Option Two [Member] | Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Expiration Date	04/2016
Stock Option Three [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	$ 0.275
Options Outstanding, Number of Shares	324,000
Options Outstanding, Weighted Average Exercise Price	$ 0.275
Stock Option Three [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Expiration Date	03/2019
Stock Option Three [Member] | Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Expiration Date	06/2018
Stock Option Four [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	$ 1.00
Options Outstanding, Number of Shares	67,170
Options Outstanding, Weighted Average Exercise Price	$ 1.00
Stock Option Four [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Expiration Date	01/2017
Stock Option Four [Member] | Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Expiration Date	10/2015
Stock Option Five [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	$ 7.50
Options Outstanding, Number of Shares	3,334
Options Outstanding, Expiration Date	05/2016
Options Outstanding, Weighted Average Exercise Price	$ 7.50
Stock Option Six [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	$ 9.00
Options Outstanding, Number of Shares	16,668
Options Outstanding, Expiration Date	07/2017
Options Outstanding, Weighted Average Exercise Price	$ 9.00

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (Fair Value, Inputs, Level 2 [Member])	6 Months Ended
	Mar. 31, 2015
Fair Value, Inputs, Level 2 [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Annual dividend yield	0.00%
Expected life (years)	6 months
Risk-free interest rate	0.14%
Expected volatility	64.00%

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NATURE OF OPERATIONS

6 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations [Text Block]

1. NATURE OF OPERATIONS

Organization and Nature of Operations

CNS Response, Inc. (“CNS,” “we,” “us,” “our,” or the “Company”) was incorporated in Delaware on March 20, 1987, under the name Age Research, Inc.  Prior to January 16, 2007, the Company (then called Strativation, Inc.) was a “shell company” with nominal assets and our sole business was to identify, evaluate and investigate various companies to acquire or with which to merge.  On January 16, 2007, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with CNS Response, Inc., a California corporation formed on January 11, 2000 (“CNS California”), and CNS Merger Corporation, a California corporation and the Company’s wholly-owned subsidiary (“MergerCo”) pursuant to which the Company agreed to acquire CNS California in a merger transaction wherein MergerCo would merge with and into CNS California, with CNS California being the surviving corporation (the “Merger”). On March 7, 2007, the Merger closed, CNS California became a wholly-owned subsidiary of the Company, and on the same date the corporate name was changed from Strativation, Inc. to CNS Response, Inc.

The Company is a cloud-based predictive analytics company that provides objective clinical decision support to mental healthcare providers for the treatment of behavioral disorders, including depression, anxiety, bipolar disorder and post-traumatic stress disorder ("PTSD"). The Company uses its proprietary neurometric platform, PEER Online, to generate Psychiatric EEG Evaluation Registry ("PEER") Reports to predict the likelihood of response by an individual to certain medications for the treatment of behavioral disorders. In April 2013, the Company commenced a reimbursed clinical trial at Walter Reed National Military Medical Center ("Walter Reed") and Fort Belvoir Community Hospital ("Fort Belvoir") (collectively, the "Walter Reed PEER Trial") using its neurometric platform to provide PEER Reports to military psychiatrists treating patients primarily for depression with various comorbidities, including PTSD and mild traumatic brain injury ("mTBI"). In April 2014, based on an interim analysis of less than 10% of the planned clinical trial enrollees, statistically significant results were achieved for ten of the twelve endpoints of the Walter Reed PEER Trial. We are awaiting further data to determine achievement of our primary endpoint. In May 2014, following the interim analysis, the Walter Reed Institutional Review Board (the "Walter Reed IRB") suspended enrollment of new patients in order to conduct an internal review. We expect to recommence enrollment of the Walter Reed PEER Trial in 2015, which will provide additional information to demonstrate the clinical and economic utility of our neurometric platform.

The Company acquired the Neuro-Therapy Clinic, Inc. (“NTC”) on January 15, 2008, to provide behavioral health care services.  NTC’s operations were discontinued effective September 30, 2012. See Note 3. Discontinued Operations.

At the Company’s 2014 annual meeting of stockholders, held on May 13, 2014 (the “2014 Annual Meeting”), the Company’s common stockholders voted to reappoint the Company’s existing board of directors (the “Board”) to serve until the next annual meeting and until any successor is elected and qualified.

Going Concern Uncertainty

The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which contemplate continuation of the Company as a going concern. The Company has a limited operating history and its operations are subject to certain problems, expenses, difficulties, delays, complications, risks and uncertainties frequently encountered in the operation of a new business. These risks include the ability to obtain adequate financing on a timely basis, the failure to develop or supply technology or services to meet the demands of the marketplace, the failure to attract and retain qualified personnel, competition within the industry, government regulation and the general strength of regional and national economies.

The Company’s continued operating losses and limited capital raise substantial doubt about its ability to continue as a going concern. The Company has limited cash resources for its operations and will need to raise additional funds to meet its obligations as they become due.

To date, the Company has financed its cash requirements primarily from debt and equity financings.  The Company will need to raise additional funds immediately to continue its operations and to raise substantial additional funds before the Company can increase demand for its PEER Online services. Until it can generate a sufficient amount of revenues to finance its cash requirements, which it may never do, the Company has to finance future cash needs primarily through public or private equity offerings, debt financings, borrowings or strategic collaborations. The Company’s liquidity and capital requirements depend on several factors, including the rate of market acceptance of its services, the future profitability of the Company, the rate of growth of the Company’s business and other factors described elsewhere in this Quarterly Report on Form 10-Q.  The Company continues to explore additional sources of capital but there is substantial doubt as to whether any financing arrangement will be available in amounts and on terms acceptable to the Company to permit it to continue operations. The accompanying audited consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Sep. 30, 2014
CURRENT ASSETS:
Cash	$ 310,000	$ 1,240,600
Accounts receivable (net of allowance for doubtful accounts of $1,200 and $1,200 as of March 31, 2015 and September 30, 2014 respectively)	5,400	9,300
Prepaids and other assets	114,700	58,200
Total current assets	430,100	1,308,100
Furniture and equipment, net	5,300	8,700
Other assets	18,300	19,300
TOTAL ASSETS	453,700	1,336,100
CURRENT LIABILITIES:
Accounts payable (including $51,400 and $41,300 to related parties as March 31, 2015 and September 30, 2014 respectively)	841,500	868,900
Accrued liabilities	85,400	26,200
Accrued compensation (including $249,000 and $71,700 to related parties as of March 31, 2015 and September 30, 2014 respectively)	415,900	342,000
Deferred revenue - grant funds	45,900	45,900
Secured convertible debt (net of discounts $144,300 and $174,200 as of March 31, 2015 and September 30, 2014 respectively)	1,920,700	1,475,800
Accrued interest	45,400	2,600
Derivative liability	85,800	153,100
Current portion of capital lease	3,400	3,500
Liabilities of discontinued operation	157,700	177,200
Total current liabilities	3,601,700	3,095,200
LONG-TERM LIABILITIES
Capital lease	700	2,500
Total long-term liabilities	700	2,500
TOTAL LIABILITIES	3,602,400	3,097,700
STOCKHOLDERS' DEFICIT:
Common stock, $0.001 par value; authorized 180,000,000 shares and issued and outstanding 101,667,409 shares as of March 31, 2015 and September 30, 2014.	101,700	101,700
Additional paid-in capital	57,534,000	57,350,200
Accumulated deficit	(60,784,400)	(59,213,500)
Total stockholders' deficit	(3,148,700)	(1,761,600)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 453,700	$ 1,336,100

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]

The Company used Level 2 inputs for its valuation methodology for the conversion option liability in determining the fair value using the Black-Scholes option-pricing model with the following assumption inputs:

	March 31, 2015
Annual dividend yield	-
Expected life (years)	0.5
Risk-free interest rate	0.14	%
Expected volatility	64	%

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

	Carrying Value		Fair Value Measurements at
	As of		March 31, 2015
	March 31,		Using Fair Value Hierarchy
	2015		Level 1		Level 2		Level 3
Liabilities
Secured Convertible Debt	$	1,920,700	$	-	$	2,065,000	$	-
Conversion option liability		85,800				85,800
Total	$	2,006,500	$	-	$	2,150,800	$	-

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Document And Entity Information	6 Months Ended
	Mar. 31, 2015	May 15, 2015
Document Information [Line Items]
Entity Registrant Name	CNS RESPONSE, INC.
Entity Central Index Key	0000822370
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Trading Symbol	CNSO
Entity Common Stock, Shares Outstanding		101,667,409
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2015

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DISCONTINUED OPERATIONS (Tables)

6 Months Ended

Mar. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

Revenues, income before income taxes and net loss of NTC which are included in discontinued operations are as follows:

	Three Months ended March 31,
	2015		2014
Neuro-Therapy Clinic
Revenues	$	-	$	-
Expenses		900		(300)
Operating Loss before taxes	$	(900)	$	300
Taxes		-		-
Net Loss	$	(900)	$	300

	Six Months ended March 31,
	2015		2014
Neuro-Therapy Clinic
Revenues	$	-	$	-
Expenses		1,800		3,300
Operating Loss before taxes	$	(1,800)	$	(3,300)
Taxes		-		-
Net Loss	$	(1,800)	$	(3,300)

The assets and liabilities of NTC are as follows:

	(Unaudited) March 31,		September 30,
	2015		2014
ASSETS:
Assets of Discontinued Operations	$	-	$	-
LIABILITIES:
Accounts Payable	$	86,600	$	86,600
Accrued Payroll Liabilities		71,000		90,600
Liabilities of Discontinued Operations	$	157,600	$	177,200

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CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Mar. 31, 2015	Sep. 30, 2014
Allowance for doubtful accounts (in dollars)	$ 1,200	$ 1,200
Accounts payable due to related parties (in dollars)	51,400	41,300
Accrued compensation liability to related party (in dollars)	249,000	71,700
Secured convertible debt, net of discounts (in dollars)	$ 144,300	$ 174,200
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	180,000,000	180,000,000
Common stock, shares issued	101,667,409	101,667,409
Common stock, shares outstanding	101,667,409	101,667,409

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STOCKHOLDERS' DEFICIT

6 Months Ended

Mar. 31, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

6. STOCKHOLDERS’ DEFICIT

Common and Preferred Stock

As of March 31, 2015, the Company is authorized to issue 195,000,000 shares of stock of which 180,000,000 are Common Stock at par value of $0.001 per share (“Common Stock”); the remaining 15,000,000 shares, with a par value of $0.001 per shares are blank-check preferred stock which the Board is expressly authorized to provide, for one or more series of preferred stock and, with respect to each such series, to fix the number of shares constituting such series and the designation of such series, the voting powers, if any, of the shares of such series, and the preferences and relative, participating, optional or other special rights, if any, and any qualifications, limitations or restrictions thereof, of the shares of such series. The powers, preferences and relative, participating, optional and other special rights of each series of preferred stock, and the qualifications, limitations or restrictions thereof, if any, may differ from those of any and all other series at any time outstanding.

As of March 31, 2015, 101,667,409 shares of Common Stock were issued and outstanding. No shares of preferred stock were issued or outstanding.

From October 4, 2013, through February 14, 2014, 29 accredited investors purchased an aggregate of 5,900,000 shares of Common Stock, at a price of $0.25 per share pursuant to private placements. The Company received gross aggregate cash proceeds of $1,475,000. (Refer to Note 8. Related Party Transactions)

Between November 11, 2013, and December 20, 2013, the Company issued an aggregate of 1,446,380 shares of its Common Stock valued at $361,500, as full and complete settlement of trade payables totaling an aggregate $1,466,800 owed to two creditors who are also accredited investors. As a result of this transaction the Company recorded a gain on extinguishment of debt of $1,105,200.

On March 21, 2014, the Board resolved to amend the Company’s Charter in order to further increase the number of shares of Common Stock authorized for issuance under the Charter from 150,000,000 to 180,000,000. This amendment to the Charter was approved by more than 65% of the stockholders eligible to vote at the annual meeting of stockholders held on May 13, 2014.

From July 8, 2014 through July 23, 2014, 8 accredited investors purchased an aggregate of 1,040,000 shares of Common Stock, at a price of $0.25 per share pursuant to private placements. The Company received gross aggregate cash proceeds of $260,000. (Refer to Note 8. Related Party Transactions)

On January 29, 2014 and June 20, 2014, placement agent warrants to purchase in aggregate 608,309 shares of Common Stock with a price of $0.04718 per share were exercised on a net basis resulting in the issuance of 564,467 shares of Common Stock.

Stock-Option Plans

On August 3, 2006, CNS California adopted the CNS California 2006 Stock Incentive Plan (the “2006 Plan”). The 2006 Plan provides for the issuance of awards in the form of restricted shares, stock options (which may constitute incentive stock options (ISO) or non-statutory stock options (NSO), stock appreciation rights and stock unit grants to eligible employees, directors and consultants and is administered by the Board. A total of 667,667 shares of stock were ultimately reserved for issuance under the 2006 Plan. As of September 30, 2014, 70,825 options were exercised and there were 501,924 options and 6,132 restricted shares outstanding under the amended 2006 Plan leaving 87,786 shares which will not be issued as the 2006 Plan has been frozen. The outstanding options have exercise prices to purchase shares of Common Stock ranging from $3.60 to $32.70.

On March 22, 2012, our Board approved the CNS Response, Inc. 2012 Omnibus Incentive Compensation Plan (the “2012 Plan”), reserved 333,334 shares of stock for issuance and on December 10, 2012, the Board approved the amendment of the 2012 Plan to increase the shares authorized for issuance from 333,334 shares to 5,500,000 shares. On March 26, 2013, the Board further approved the amendment of the 2012 Plan to increase the shares authorized for issuance from 5,500,000 shares to 15,000,000 shares. The 2012 Plan, as amended, was approved by our stockholders at the 2013 annual meeting held on May 23, 2013.

On October 8, 2013, the Board granted to the Company’s two executive officers and two senior managers (collectively, the “Managers”) options to purchase shares of its Common Stock pursuant to the 2012 Omnibus Incentive Compensation Plan, as amended (the “2012 Plan”), at an exercise price of $0.25 per share as follows: George Carpenter 435,000 shares, Paul Buck 470,000 shares, Stewart Navarre 385,000 shares and Brian MacDonald 310,000. These options vested pro-rata over 12 months starting from the date of grant. The four managers agreed to forego a portion of their salaries in fiscal year 2014 as follows: George Carpenter $98,000, Paul Buck $106,500, Stewart Navarre $83,600 and Brian MacDonald $66,700. These executive officers and managers will be paid out of the salaries which were earned and accrued during fiscal years 2012 and 2013. The accruals to be paid out are equivalent to the fiscal year 2014 salaries that each of the executive officers and managers agreed to forego in lieu of receiving options.

On November 8, 2013, the Board granted 700,000 options to purchase shares of its Common Stock pursuant to the 2012 Plan, at an exercise price of $0.25 per share to select consultants and staff, excluding the managers. The staff options vest evenly over 48 months starting on the date of grant; consultant options vest evenly over 36 months starting on the date of grant.

On July 31, 2014, the Board granted 425,000 options to purchase shares of its Common Stock pursuant to the 2012 Plan, at an exercise price of $0.26 per share to select consultants. These options vest evenly over 36 months starting on the date of grant.

On January 8, 2015, the Board granted an option to purchase 250,000 shares of its Common Stock pursuant to the 2012 Plan, at an exercise price of $0.25 per share to a consultant. The option vesting is contingent upon the achievement of agreed upon goals.

As of March 31, 2015, 70,825 options had been exercised and 501,924 options and 6,132 restricted shares were outstanding under the amended 2006 Plan leaving 87,786 shares which will never be issued as the 2006 Plan is frozen. Options to purchase 12,165,575 shares of Common Stock have been issued under the 2012 Plan, none of which have been exercised, leaving 2,834,425 options available for issuance.

Stock-based compensation expenses are generally recognized over the employees’ or service provider’s requisite service period, generally the vesting period of the award. Stock-based compensation expense included in the accompanying statements of operations for the three months and six months ended March 31, 2015 and 2014 is as follows:

	For the three months ended March 31,
	2015		2014
Cost of Neurometric Services revenues	$	-	$	2,200
Research		10,400		21,200
Product Development		15,500		67,000
Sales and marketing		53,400		24,700
General and administrative		20,500		187,900
Total	$	99,800	$	303,000

	For the six months ended March 31,
	2015		2014
Cost of Neurometric Services revenues	$	-	$	5,100
Research		20,800		46,900
Product Development		34,000		138,100
Sales and marketing		63,300		51,000
General and administrative		44,100		425,800
Total	$	162,200	$	666,900

Total unrecognized compensation as of March 31, 2015 amounted to $241,765.

A summary of stock option activity is as follows: 

	Number of Shares	Weighted Average Exercise Price
Outstanding at September 30, 2014	12,417,499	$	0.84
Granted
Exercised
Forfeited
Outstanding at December 31, 2014	12,417,499	$	0.84
Granted	250,000		0.25
Exercised	-		-
Forfeited	-		-
Outstanding at March 31, 2015	12,667,499	$	0.83

Following is a summary of the status of options outstanding at March 31, 2015:

Exercise Price		Number of Shares	Expiration Date	Weighted Average Exercise Price
$	0.04718	8,920,300	12/2022 – 01/2023	$	0.04718
$	0.25	2,777,605	03/2023 – 01/2025		0.25
$	0.26	425,000	07/2024		0.26
$	3.00	42,670	03/2022		3.00
$	3.60	28,648	08/2016		3.60
$	3.96	32,928	08/2016		3.96
$	9.00	4,525	11/2016		9.00
$	12.00	28,535	03/2019 – 07/2020		12.00
$	14.10	10,000	03/2021		14.10
$	15.30	1,373	09/2018		15.30
$	16.50	262,441	03/2020		16.50
$	17.70	953	08/2016		17.70
$	24.00	4,667	12/2017		24.00
$	26.70	32,297	09/2017		26.70
$	28.80	11,767	04/2018		28.80
$	32.70	83,790	08/2017		32.70
	Total	12,667,499		$	0.83

Warrants to Purchase Common Stock

 The warrant activity for the period starting October 1, 2013, through March 31, 2015, is described as follows:

	Number of Shares	Weighted Average Exercise Price
Outstanding at September 30, 2014	814,744	$	3.07
Granted	200,000		0.25
Exercised	-		-
Forfeited	(226,020)		9.14
Outstanding at December 31,2014	788,724		0.61
Granted	-		-
Exercised	-		-
Forfeited	(7,200)		9.15
Outstanding at March 31, 2015	781,524	$	0.53

Following is a summary of the status of warrants outstanding at March 31, 2015:

Exercise Price		Number of Shares	Expiration Date	Weighted Average Exercise Price
$	0.04718	38,152	03/2018	$	0.04718
	0.25	332,200	04/2016 – 07/2017		0.25
	0.275	324,000	06/2018 – 03/2019		0.275
	1.00	67,170	10/2015 – 01/2017		1.00
	7.50	3,334	05/2016		7.50
$	9.00	16,668	07/2017		9.00
	Total	781,524		$	0.53

On March 22, 2014, a warrant to purchase120,000 shares of Common Stock at an exercise price of $0.275 per share were issued to Monarch Capital who acted as placement agents in raising $300,000 from 11 accredited investors who purchased restricted common stock in private placement agreements dated October 2, 2013 and January 8, 2014.

Also on March 22, 2014, a warrant to purchase 32,200 shares of Common Stock at an exercise price of $0.25 per share were issued to D&D Securities, Inc. who acted as placement agents in raising $115,000 from three accredited investors who purchased restricted common stock in private placement agreements dated January 8, 2014.

On August 1, 2014, a warrant to purchase 200,000 shares of Common Stock at an exercise price of $0.25 per share were issued to Red Chip Companies, Inc. pursuant to an investor relations services agreement.

At March 31, 2015, there were warrants outstanding to purchase 781,524 shares of the Company’s common stock. The exercise price of the outstanding warrants range from $0.04718 to $9.00 with a weighted average exercise price of $0.53. The warrants expire at various times starting 2015 through 2019.

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DERIVATIVE LIABILITIES

6 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Fair Value [Text Block]

5. DERIVATIVE LIABILITIES

Starting September 22, 2014, through March 18, 2015, the Company raised $2.07 million in a private placement of secured convertible debt at $0.25 per share of Common Stock. This debt instrument also has a ratchet whereby the conversion price of $0.25 per share can be reduced to a minimum of $0.10 per share (see Note 4). The inclusion of this ratchet requires the determination of the fair market carrying value. At issuance, the note discount and derivative liability using the Black-Scholes model was $179,200. Upon subsequent revaluations, the derivative liability value was $153,100 and $85,800 as at September 30, 2014 and March 31, 2015 with a resultant $139,200 gain from derivative liabilities being booked to other income for the three months ended March 31, 2015, and a gain of $99,300 being booked to other income for the six months ended March 31, 2015. For the six months ended March 31, 2014, we had no change in valuation as there were no derivative liabilities at that time.

The Black-Scholes option-pricing model with the following assumption inputs:

	March 31, 2015
Annual dividend yield	-
Expected life (years)	0.5
Risk-free interest rate	0.14	%
Expected volatility	64.22	%

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COMMITMENTS AND CONTINGENT LIABILITIES (Tables)

6 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]

	Payments due by period
Contractual Obligations	Total		Less than 1 year		1 to 3 years		3 to 5 years		More than 5 years
Operating Lease Obligations	$	45,200	$	45,200	$	-		-		-
Capital Lease Obligations		4,100		3,400		700		-		-
Total	$	49,300	$	48,600	$	700		-		-

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CONVERTIBLE DEBT AND EQUITY FINANCINGS (Tables)

6 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Convertible Debt [Table Text Block]

		As of March 31, 2015
Note Type and Investor	Due Date	Balance		Discount		Carrying Value
Senior Secured 5% Notes Convertible at $0.25 (the “September 2014 Notes”)		($)		($)		($)
RSJ Private Equity	03/21/2016	$	750,000	$	(44,600)	$	705,400
4 Accredited Investors	03/21/2016		300,000		(19,100)		280,900
John Pappajohn	03/21/2016		300,000		(23,300)		276,700
Tierney Family Trust	03/21/2016		415,000		(34,100)		380,900
Oman Ventures	03/21/2016		200,000		(16,900)		183,100
Follman Family Trust	03/21/2016		100,000		(6,300)		93,700
Total Secured Convertible Promissory (September 2014) Notes		$	2,065,000	$	(144,300)	$	1,920,700

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COMMITMENTS AND CONTINGENT LIABILITIES

6 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

9. COMMITMENTS AND CONTINGENT LIABILITIES

Litigation

From time to time, the Company may be involved in litigation relating to claims arising out of the Company’s operations in the ordinary course of business. Other than as set forth below, the Company is not currently party to any legal proceedings, the adverse outcome of which, in the Company’s management’s opinion, individually or in the aggregate, would have a material adverse effect on the Company’s results of operations or financial position.

Since June 2009, the Company has been involved in litigation against Leonard J. Brandt, a stockholder, former Director and the Company’s former Chief Executive Officer (“Brandt”) in the Delaware Chancery Court, the Supreme Court of the State of Delaware and the United States District Court for the Central District of California. Other than current actions described below, the Company has prevailed in all actions or the matters have been dismissed.

On April 11, 2011, Brandt and his family business partnership Brandt Ventures, GP, filed an action in the Superior Court for the State of California, Orange County against the Company, one of its stockholders, SAIL Venture Partner, LP, and Mr. David Jones, a former member of the Board, alleging breach of a promissory note agreement entered into by Brandt Ventures, GP and the Company and alleging that Mr. Brandt was wrongfully terminated as Chief Executive Officer in April, 2009.  The Company was served with a summons and complaint in the action on July 19, 2011.

On November 1, 2011, Mr. Brandt and Brandt Ventures filed an amended complaint amending their claims and adding new claims against the same parties. On March 12, 2012, the court sustained demurrers to certain of the counts against each defendant. On March 22, 2012, the plaintiffs filed a second amended complaint modifying certain of their claims, but did not add new claims. On February 6, 2013, the plaintiffs moved for leave to amend the second amended complaint and file a third amended complaint. On March 6, 2013, the Court granted leave to amend, but awarded fees and costs for the defendants to again make dispositive motions. The third amended complaint adds a claim for breach of the promissory note and seeks to foreclose on the collateral securing the note obligation.  In addition, Mr. Brandt is seeking approximately $170,000 of severance and compensatory and punitive damages in connection with his termination.  In interrogatory responses served on January 26, 2013, Mr. Brandt for the first time identified that he seeks damages in connection with his termination exceeding $9,000,000.  Mr. Brandt has proffered no credible evidence to support damages in this amount, and the Company believes this claim for damages is without merit.  The plaintiffs also seek rescission of a $250,000 loan made by Brandt Ventures, GP to the Company which was converted into Common Stock in accordance with its terms and restitution of the loan amount.

Discovery is ongoing and the Company continues to aggressively defend the action. A trial date had originally been set for May 2014; however, plaintiffs’ counsel requested a continuance until August 2014 to which the Company agreed. On June 18, 2014, at plaintiffs’ counsel’s request, the Company entered into a Standstill and Tolling Agreement, whereby the parties agreed to seek a stay of the litigation and plaintiffs agreed to provide the Company with an executed dismissal of all the claims without prejudice, with the ability to re-file the third amended complaint, without change, on or before June 18, 2015, which the Company may file if the Court lifted the stay.  Subsequently on May 7, 2015, the parties agreed to continue the Standstill and Tolling Agreement for another year, until June, 2016, on the same terms. On May 12, 2015, the Court agreed to stay the case for another six months.   The Company believes that the third amended complaint, like the prior complaints, is without merit. The Company has not accrued any amounts related to this matter. The action is captioned Leonard J. Brandt and Brandt Ventures, GP v. CNS Response, Inc., Sail Venture Partners and David Jones, case no. 30-2011-00465655-CU-WT-CJC.

The Company has expended substantial resources to pursue the defense of legal proceedings initiated by Mr. Brandt.  The Company does not know whether Mr. Brandt will institute additional claims against the Company and the defense of any such claims could involve the expenditure of additional resources by the Company.

Lease Commitments

Since February 2010, the Company has leased its current Headquarters and Neurometric Services business premises located at 85 Enterprise, Aliso Viejo, California 92656.  On February 6, 2014, we signed a 24 month extension which commenced on February 1, 2014 and terminates on January 31, 2016. The rent for months one through 13 was $4,349 per month; the months of February 2014 and January 2015 were abated; the rent for months 14 through 24 is $4,523 per month.

The Company incurred rent expense from continuing operations of $12,200 and $12,300 for the three months ended March 31, 2015 and 2014, respectively. And $24,400 and 20,600 for the six months ended March 31, 2015 and 2014, respectively.

On April 24, 2013, we entered into a financial lease to acquire EEG equipment costing $8,900. The term of the lease is 36 months ending May 2016 with a monthly payment of $325. As of March 31, 2015 the remaining lease obligation is $4,100: being $3,400, $700 for fiscal years 2015 and 2016 respectively.  

	Payments due by period
Contractual Obligations	Total		Less than 1 year		1 to 3 years		3 to 5 years		More than 5 years
Operating Lease Obligations	$	45,200	$	45,200	$	-		-		-
Capital Lease Obligations		4,100		3,400		700		-		-
Total	$	49,300	$	48,600	$	700		-		-

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RELATED PARTY TRANSACTIONS

6 Months Ended

Mar. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

7. RELATED PARTY TRANSACTIONS

On October 8, 2013, the Board granted to the Company’s two executive officers and two senior managers (collectively, the “Managers”) options to purchase shares of its Common Stock pursuant to the 2012 Option Plan at an exercise price of $0.25 per share as follows: George Carpenter 435,000 shares, Paul Buck 470,000 shares, Stewart Navarre 385,000 shares and Brian MacDonald 310,000. These options vest pro-rata over 12 months starting from the date of grant. Pursuant to the Employment Compensation Forfeiture and Exchange Agreement dated December 16, 2013, the Managers agreed to forego a portion of their salaries in fiscal year 2014 as follows: George Carpenter $98,000, Paul Buck $106,500, Stewart Navarre $83,600 and Brian MacDonald $66,700. These Managers were paid out of the salaries earned and accrued during fiscal years 2012 and 2013. The accruals to be paid out were equivalent to the fiscal year 2014 salaries that each of the Managers agreed to forego in lieu of receiving options to purchase shares.

Transactions with John Pappajohn, Director

On September 22, 2014 and March 18, 2015, Mr. Pappajohn purchased two September 2014 Notes for $200,000 and $100,000 respectively. The September 2014 Notes are convertible into shares of Common Stock (i) automatically upon the closing of a qualified offering of no less than $5 million at a conversion price equal to the lesser of $0.25 or 70% of the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share or (ii) voluntarily within 15 days of maturity at the lesser of a conversion price equal to $0.25 or the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share.

Transactions with Walter L. Schindler, Director

Mr. Schindler is a Director and the Managing Partner of SAIL Capital Partners which is the general partner of all the SAIL entities except for SAIL Holding, LLC, which is controlled directly by Mr. Schindler.

On July 11, 2014, SAIL Pre-Exit Acceleration fund, L.P, an entity managed by Mr. Schindler, entered into a subscription agreement to purchase 40,000 shares of Common Stock at $0.25 per share for which the Company received gross cash proceeds of $10,000.

On January 5, 2015, we entered into a three-month long consulting engagement with Dr. Eric Warner, Managing Partner, Europe, Middle East & Africa, Sail Capital Partners Ltd. The objectives of the engagement include the establishment of a revenue-generating licensing agreement in the United Kingdom (U.K.) and initiation a pilot study of our PEER Online technology. Dr. Warner has been paid $10,000 per month for a total of $30,000. On January 8, 2015, the Board granted Dr. Warner an option to purchase 250,000 shares of Common Stock with an exercise price of $0.25 per share; the option vesting is conditioned on the execution of a licensing agreement and a PEER Online pilot study. The fair value of the option, which was determined using the Black-Scholes model, was $28,300 and was expensed over the term of the engagement.

Transactions with Thomas T. Tierney, Chairman of the Board

The Thomas T. and Elizabeth C. Tierney Family Trust (the “Tierney Family Trust”), of which our Chairman, Mr. Tierney, is a trustee, has made multiple additional investments pursuant to a series of subscription agreements all of which were the result of private placements of unregistered stock at $0.25 per share. All individual transactions were in tranches of $100,000 for the purchase of 400,000 shares and the Company received gross cash proceeds of $100,000 on each occasion. Since October 1, 2013, transactions occurred on the following dates: January 13, February 12 and July 8, of 2014. In aggregate the Tierney Family Trust has purchased 1,200,000 shares at $0.25 per share for $300,000 gross cash proceeds to the Company.

On September 22, 2014, January 8, 2015 and March 17, 2015, the Tierney Family Trust purchased four September 2014 Notes for $200,000, $100,000 and $115,000 respectively for an aggregate total of $415,000. The September 2014 Notes are convertible into shares of Common Stock (i) automatically upon the closing of a qualified offering of no less than $5 million at a conversion price equal to the lesser of $0.25 or 70% of the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share or (ii) voluntarily within 15 days of maturity at the lesser of a conversion price equal to $0.25 or the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share.

Transactions with Robert J. Follman, Director

The Trust of Robert J. Follman and Carole A. Follman, dated August 14, 1979 (the “Follman Trust”), of which our Director Mr. Follman is a trustee, has made multiple additional investments pursuant to a series of subscription agreements all of which were the result of private placements of unregistered stock at $0.25 per share. All individual transactions were in tranches of $100,000 for the purchase of 400,000 shares and the Company received gross cash proceeds of $100,000 on each occasion. Since October 1, 2013, transactions occurred on the following dates: January 17, February 14 and July 8 of 2014. In aggregate the Follman Trust has purchased 1,200,000 shares at $0.25 per share for $300,000 gross cash proceeds to the Company.

On March 17, 2015, the Trust of Robert J. Follman and Carole A. Follman, dated August 14, 1979 (the “Follman Trust”), of which our Director Mr. Follman is a trustee, purchased a September 2014 Note for $100,000. The September 2014 Notes are convertible into shares of Common Stock (i) automatically upon the closing of a qualified offering of no less than $5 million at a conversion price equal to the lesser of $0.25 or 70% of the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share or (ii) voluntarily within 15 days of maturity at the lesser of a conversion price equal to $0.25 or the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share.

Transactions with George Carpenter, Chief Executive Officer

On September 25, 2013, the Board approved a consulting agreement effective May 1, 2013, for marketing services provided by Decision Calculus Associates, an entity operated by Mr. Carpenter’s spouse, Jill Carpenter. For the period from May 1, 2013 through to February 28, 2015, we have paid $210,000 to Decision Calculus Associates and have an accounts payable balance of a further $10,000.

On January 28, 2014, Mr. and Mrs. Carpenter invested $50,000 for 200,000 shares of Common Stock at $0.25 per share pursuant to a subscription agreement for which the Company received gross cash proceeds of $50,000. 

On July 11, 2014, Mr. and Mrs. Carpenter invested $12,500 for 50,000 shares of Common Stock at $0.25 per share pursuant to a subscription agreement for which the Company received gross cash proceeds of $12,500.

Transactions with Paul Buck, Chief Financial Officer

On February 12, 2014, Mr. Buck invested $25,000 for 100,000 shares of Common Stock at $0.25 per share pursuant to a subscription agreement for which the Company received gross cash proceeds of $25,000. 

On July 8, 2014, Mr. Buck invested $12,500 for 50,000 shares of Common Stock at $0.25 per share pursuant to a subscription agreement for which the Company received gross cash proceeds of $12,500.

Transactions with Mark and Jill Oman, Greater than 5% Stockholder

On September 22, 2014, Oman Ventures LLC, of which Mr. Oman, a greater than 5% stockholder is the President, purchased $200,000 of September 2014 Notes which are convertible into shares of Common Stock (i) automatically upon the closing of a qualified offering of no less than $5 million at a conversion price equal to the lesser of $0.25 or 70% of the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share or (ii) voluntarily within 15 days of maturity at the lesser of a conversion price equal to $0.25 or the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share.

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LOSS PER SHARE

6 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

8. LOSS PER SHARE

In accordance with ASC 260-10 (formerly SFAS 128, Computation of Earnings Per Share), basic net income (loss) per share is computed by dividing the net income (loss) to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common and dilutive common equivalent shares outstanding during the period.  For the three and six month period ended March 31, 2015 and 2014, the Company has excluded all common equivalent shares from the calculation of diluted net loss per share as such securities are anti-dilutive.

A summary of the net loss and shares used to compute net loss per share for the three months ended March 31, 2015 and 2014 is as follows:

	Three months ended March 31,
	2015		2014
Net loss for computation of basic net loss per share:
From continuing operations	$	(695,400)	$	(942,300)
From discontinued operations		(900)		300
Net loss	$	(696,300)	$	(942,000)
Basic net loss per share:
From continuing operations	$	(0.01)	$	(0.01)
From discontinued operations		0.00		0.00
Basic net loss per share	$	(0.01)	$	(0.01)
Net loss for computation of dilutive net loss per share:
From continuing operations	$	(695,400)	$	(942,300)
From discontinued operations		(900)		300
Net loss	$	(696,300)	$	(942,000)
Diluted net loss per share:
From continuing operations	$	(0.01)	$	(0.01)
From discontinued operations		0.00		0.00
Basic net loss per share	$	(0.01)	$	(0.01)
Basic weighted average shares outstanding		101,667,409		99,767,230
Dilutive common equivalent shares		-		-
Diluted weighted average common shares		101,667,409		99,767,230
Anti-dilutive common equivalent shares not included in the computation of dilutive net loss per share:
Convertible debt		1,892,742		-
Warrants		781,833		1,222,097
Options		12,645,994		12,049,594

 A summary of the net loss and shares used to compute net loss per share for the six months ended March 31, 2015 and 2014 is as follows:

	Six months ended March 31,
	2015		2014
Net loss for computation of basic net loss per share:
From continuing operations	$	(1,596,100)	$	(803,700)
From discontinued operations		(1,800)		(3,300)
Net loss	$	(1,570,900)	$	(807,000)
Basic net loss per share:
From continuing operations	$	(0.02)	$	(0.01)
From discontinued operations		0.00		0.00
Basic net loss per share	$	(0.02)	$	(0.01)
Net loss for computation of dilutive net loss per share:
From continuing operations	$	(1,596,100)	$	(803,700)
From discontinued operations		(1,800)		(3,300)
Net loss	$	(1,570,900)	$	(807,000)
Diluted net loss per share:
From continuing operations	$	(0.02)	$	(0.01)
From discontinued operations		0.00		0.00
Basic net loss per share	$	(0.02)	$	(0.01)
Basic weighted average shares outstanding		101,667,409		97,532,356
Dilutive common equivalent shares		-		-
Diluted weighted average common shares		101,667,409		97,532,356
Anti-dilutive common equivalent shares not included in the computation of dilutive net loss per share:
Convertible debt		1,771,371		-
Warrants		871,027		1,630,016
Options		12,531,746		11,666,261

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Basis Of Accounting Policy [Policy Text Block]

Basis of Presentation

The unaudited condensed consolidated financial statements of CNS Response, Inc. (“CNS,” “we,” “us,” “our” or the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and include all the accounts of CNS and its wholly owned subsidiaries CNS California and NTC. Certain information and note disclosures, normally included in financial statements prepared in accordance with GAAP, have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of our financial position as of March 31, 2015 and our operating results, cash flows, and changes in stockholders’ deficit for the interim periods presented. The September 30, 2014 balance sheet was derived from our audited consolidated financial statements but does not include all disclosures required by GAAP. These unaudited condensed consolidated financial statements and the related notes should be read in conjunction with our audited consolidated financial statements and notes for the year ended September 30, 2014, which are included in our annual report on Form 10-K, filed with the Securities and Exchange Commission on December 29, 2014.

The preparation of financial statements in accordance 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 and revenues and expenses in the financial statements. Examples of estimates subject to possible revision based upon the outcome of future events include, among others, recoverability of long-lived assets and goodwill, stock-based compensation, the allowance for doubtful accounts, the valuation of equity instruments, use and other taxes. In the opinion of management, these unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments, except as otherwise indicated) necessary for fair presentation for the periods presented as required by regulation S-X, Rule 10-01. Actual results could differ from those estimates.

The results of operations for the six months ended March 31, 2015 are not necessarily indicative of the results that may be expected for future periods or for the year ending September 30, 2015.

Consolidation, Policy [Policy Text Block]

Basis of Consolidation

The condensed consolidated financial statements include the accounts of CNS Response, Inc., an inactive parent company, and its wholly owned subsidiaries CNS California and NTC.  All significant intercompany transactions have been eliminated in consolidation. NTC is accounted for as a discontinued operation. See Note 3. Discontinued Operations.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of the condensed consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expense and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, doubtful accounts, intangible assets, income taxes, valuation of equity instruments, accrued liabilities, contingencies and litigation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash

The Company deposits its cash with major financial institutions and may at times exceed the federally insured limit of $250,000.  At March 31, 2015 cash exceeded the federally insured limit by $60,000.  The Company believes that the risk of loss is minimal. To date, the Company has not experienced any losses related to cash deposits with financial institutions.

Derivatives, Policy [Policy Text Block]

Derivative Liabilities

The Company evaluates all of its agreements to determine if such instruments have derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Black-Scholes option pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. As of March 31, 2015, the Company’s only derivative financial instrument were a series of convertible notes with a “reset” and “dilutive issuance” clause within the notes relating to the conversion price from dilutive share issuance. See Notes 4, Convertible Debt and Equity Financings & 5, Derivative Liabilities.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

ASC 825-10 (formerly Statement of Financial Accounting Standards (“SFAS”) 107, Disclosures about Fair Value of Financial Instruments) defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The Company considers the carrying amount of cash, accounts receivable, other receivables, accounts payable and accrued liabilities, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization.

The Company also analyzes all financial instruments with features of both liabilities and equity under ASC 480-10 (formerly SFAS 150, Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity), ASC 815-10 (formerly SFAS 133, Accounting for Derivative Instruments and Hedging Activities) and ASC 815-40 (formerly Emerging Issues Task Force (“EITF”) 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock).

The Company adopted ASC 820-10 (formerly SFAS 157, Fair Value Measurements) on January 1, 2008. ASC 820-10 defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

· Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets;

· Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments; and

· Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

The Company used Level 2 inputs for its valuation methodology for the conversion option liability in determining the fair value using the Black-Scholes option-pricing model with the following assumption inputs:

	March 31, 2015
Annual dividend yield	-
Expected life (years)	0.5
Risk-free interest rate	0.14	%
Expected volatility	64	%

	Carrying Value		Fair Value Measurements at
	As of		March 31, 2015
	March 31,		Using Fair Value Hierarchy
	2015		Level 1		Level 2		Level 3
Liabilities
Secured Convertible Debt	$	1,920,700	$	-	$	2,065,000	$	-
Conversion option liability		85,800				85,800
Total	$	2,006,500	$	-	$	2,150,800	$	-

For the six months ending March 31, 2015 the Company recognized a gain of $99,300 on the change in fair value of derivative liabilities.  For the six months ending March 31, 2014 the Company had no derivative liabilities or change in fair valuation thereon.  As at March 31, 2015 the Company did not identify any other assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with ASC 825-10.

Trade and Other Accounts Receivable, Unbilled Receivables, Policy [Policy Text Block]

Accounts Receivable

The Company estimates the collectability of customer receivables on an ongoing basis by reviewing past-due invoices and assessing the current creditworthiness of each customer.  Allowances are provided for specific receivables deemed to be at risk for collection.

Property, Plant and Equipment, Policy [Policy Text Block]

Furniture and Equipment

Fixed assets, which are recorded at cost, consist of office furniture and equipment and are depreciated over their estimated useful life on a straight-line basis.  The useful life of these assets is estimated to be from 3 to 5 years.  Depreciation for the six months ended March 31, 2015 and 2014 was $4,400 and $5,400 respectively.  Accumulated depreciation at March 31, 2015 and 2014 was $72,300 and $65,200 respectively.

Offerings Costs Policy [Policy Text Block]

Offering Costs

The Company applies ASC 505-10, Costs of an Equity Transaction, for recognition of offering costs. In accordance with ASC 505-10, the Company treats incremental direct costs incurred to issue shares classified as equity, as a reduction of the proceeds. Direct costs incurred before shares classified as equity are issued are classified as an asset until the stock is issued. Indirect costs such as management salaries or other general and administrative expenses and deferred costs of an aborted offering are expensed.

Impairment Or Disposal Of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]

Long-Lived Assets

As required by ASC 350-30 (formerly SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets), the Company reviews the carrying value of its long-lived assets whenever events or changes in circumstances indicate that the historical cost-carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of the asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value. No impairment loss was recorded for the three and six months ended March 31, 2015 and 2014.

The Company adopted Accounting Standards Update (“ASU”) 2012-02,  Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. The new guidance is intended to reduce the complexity and costs of the annual impairment test for indefinite-lived intangible assets by allowing companies to make a qualitative evaluation about the likelihood of impairment to determine whether it should perform a quantitative impairment test.

Trade And Other Accounts Payable [Policy Text Block]

Accounts Payable

This consists of trade payables of which $476,900 is for legal services.

Revenue Recognition, Deferred Revenue [Policy Text Block]

Deferred Revenue

Deferred revenue represents revenue collected but not earned as of March 31, 2015. This represents a philanthropic grant for the payment of PEER Reports ordered for the Walter Reed clinical trial during calendar 2014, which are otherwise not paid for by Walter Reed or Fort Belvoir. These deferred revenue grant funds as of March 31, 2015 and 2014, are $45,900 and $47,000.

Revenue Recognition, Policy [Policy Text Block]

Revenues

The Company recognizes revenue on services, being the delivery of PEER Reports to medical providers, in accordance with the Financial Accounting Standards Board (“FASB”) ASC No. 605, Revenue Recognition.  In all cases, revenue is recognized when we have persuasive evidence of an arrangement, a determinable fee, when collection is considered to be reasonably assured and the services are delivered.

Research and Development Expense, Policy [Policy Text Block]

Research and Development Expenses

The Company charges all research and development expenses to operations as incurred.

Advertising Costs, Policy [Policy Text Block]

Advertising Expenses

The Company charges all advertising expenses to operations as incurred. For the six months ended March 31, 2015 we incurred advertising expenses of $29,000; for the six months ended March 31, 2014 we incurred $10,000 in advertising expenses.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

The Company has adopted ASC 718-20 (formerly SFAS No. 123R, Share-Based Payment - revised 2004) and related interpretations which establish the accounting for equity instruments exchanged for employee services. Under ASC 718-20, share-based compensation cost to option grantee, being employees, directors and consultants, and is measured at the grant date based on the calculated fair value of the award. See Note 5. Derivative Liabilities for further discussion on valuations. The expense is recognized over the option grantees’ requisite service period, generally the vesting period of the award.

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Loss

ASC 220-10 (formerly, SFAS No. 130, Reporting Comprehensive Income), requires disclosure of all components of comprehensive income (loss) on an annual and interim basis.  Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources.  The Company’s comprehensive loss is the same as its reported net loss for the six months March 31, 2015 and 2014.

Earnings Per Share, Policy [Policy Text Block]

Loss per Share

The Company has adopted GAAP regarding earnings (loss) per share, which requires presentation of basic and diluted earnings (loss) per share in conjunction with the disclosure of the methodology used in computing such earnings (loss) per share.

Basic earnings (loss) per share are computed by dividing income (loss) available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings (loss) per share takes into account the potential dilution that could occur if securities or other contracts to issue Common Stock were exercised and converted into Common Stock.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

Apart from the below-mentioned recent accounting pronouncements, there are no new accounting pronouncements that are currently applicable to the Company.

In November 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-17 Business Combinations (topic 805)- Pushdown Accounting. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. An acquired entity should determine whether to elect to apply pushdown accounting for each individual change-in-control event in which an acquirer obtains control of the acquired entity. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. An election to apply pushdown accounting in a reporting period after the reporting period in which the change-in-control event occurred should be considered a change in accounting principle in accordance with Topic 250, Accounting Changes and Error Corrections. If pushdown accounting is applied to an individual change-in-control event, that election is irrevocable. The Company does not expect the adoption of the standard update to have a material impact on its consolidated financial position or results of operations. 

In November 2014, the FASB issued ASU No. 2014-16 Derivatives and Hedging (Topic 815) Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. Entities commonly raise capital by issuing different classes of shares, including preferred stock, that entitle the holders to certain preferences and rights over the other shareholders. The specific terms of those shares may include conversion rights, redemption rights, voting rights, and liquidation and dividend payment preferences, among other features. One or more of those features may meet the definition of a derivative under generally accepted accounting principles (GAAP). Shares that include such embedded derivative features are referred to as hybrid financial instruments. For hybrid financial instruments issued in the form of a share, an entity (an issuer or an investor) should determine the nature of the host contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each term and feature on the basis of relevant facts and circumstances. That is, an entity should determine the nature of the host contract by considering the economic characteristics and risks of the entire hybrid financial instrument, including the embedded derivative feature that is being evaluated for separate accounting from the host contract. The Company does not expect the adoption of the standard update to have a material impact on its consolidated financial position or results of operations. 

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STOCKHOLDERS' DEFICIT (Details 2) (Employee Stock Option [Member], USD $)	6 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	0.83	$ 0.84	$ 0.84
Options Outstanding, Number of Shares	12,667,499
Options Outstanding, Weighted Average Exercise Price	0.83
Stock Option One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	0.04718
Options Outstanding, Number of Shares	8,920,300
Options Outstanding, Weighted Average Exercise Price	0.04718
Stock Option One [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Expiration Date	01/2023
Stock Option One [Member] | Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Expiration Date	12/2022
Stock Option Two [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	0.25
Options Outstanding, Number of Shares	2,777,605
Options Outstanding, Weighted Average Exercise Price	0.25
Stock Option Two [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Expiration Date	01/2025
Stock Option Two [Member] | Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Expiration Date	03/2023
Stock Option Three [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	0.26
Options Outstanding, Number of Shares	425,000
Options Outstanding, Expiration Date	07/2024
Options Outstanding, Weighted Average Exercise Price	0.26
Stock Option Four [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	3.00
Options Outstanding, Number of Shares	42,670
Options Outstanding, Expiration Date	03/2022
Options Outstanding, Weighted Average Exercise Price	3.00
Stock Option Five [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	3.60
Options Outstanding, Number of Shares	28,648
Options Outstanding, Expiration Date	08/2016
Options Outstanding, Weighted Average Exercise Price	3.60
Stock Option Six [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	3.96
Options Outstanding, Number of Shares	32,928
Options Outstanding, Expiration Date	08/2016
Options Outstanding, Weighted Average Exercise Price	3.96
Stock Option Seven [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	9.00
Options Outstanding, Number of Shares	4,525
Options Outstanding, Expiration Date	11/2016
Options Outstanding, Weighted Average Exercise Price	9.00
Stock Option Eight [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	12.00
Options Outstanding, Number of Shares	28,535
Options Outstanding, Weighted Average Exercise Price	12.00
Stock Option Eight [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Expiration Date	07/2020
Stock Option Eight [Member] | Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Expiration Date	03/2019
Stock Option Nine [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	14.10
Options Outstanding, Number of Shares	10,000
Options Outstanding, Expiration Date	03/2021
Options Outstanding, Weighted Average Exercise Price	14.10
Stock Option Ten [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	15.30
Options Outstanding, Number of Shares	1,373
Options Outstanding, Expiration Date	09/2018
Options Outstanding, Weighted Average Exercise Price	15.30
Stock Option Eleven [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	16.50
Options Outstanding, Number of Shares	262,441
Options Outstanding, Expiration Date	03/2020
Options Outstanding, Weighted Average Exercise Price	16.50
Stock Option Twelve [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	17.70
Options Outstanding, Number of Shares	953
Options Outstanding, Expiration Date	08/2016
Options Outstanding, Weighted Average Exercise Price	17.70
Stock Option Thirteen [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	24.00
Options Outstanding, Number of Shares	4,667
Options Outstanding, Expiration Date	12/2017
Options Outstanding, Weighted Average Exercise Price	24.00
Stock Option Fourteen [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	26.70
Options Outstanding, Number of Shares	32,297
Options Outstanding, Expiration Date	09/2017
Options Outstanding, Weighted Average Exercise Price	26.70
Stock Option Fifteen [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	28.80
Options Outstanding, Number of Shares	11,767
Options Outstanding, Expiration Date	04/2018
Options Outstanding, Weighted Average Exercise Price	28.80
Stock Option Sixteen [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price	32.70
Options Outstanding, Number of Shares	83,790
Options Outstanding, Expiration Date	08/2017
Options Outstanding, Weighted Average Exercise Price	32.70

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STOCKHOLDERS' DEFICIT (Tables)

6 Months Ended

Mar. 31, 2015

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

Stock-based compensation expenses are generally recognized over the employees’ or service provider’s requisite service period, generally the vesting period of the award. Stock-based compensation expense included in the accompanying statements of operations for the three months and six months ended March 31, 2015 and 2014 is as follows:

	For the three months ended March 31,
	2015		2014
Cost of Neurometric Services revenues	$	-	$	2,200
Research		10,400		21,200
Product Development		15,500		67,000
Sales and marketing		53,400		24,700
General and administrative		20,500		187,900
Total	$	99,800	$	303,000

	For the six months ended March 31,
	2015		2014
Cost of Neurometric Services revenues	$	-	$	5,100
Research		20,800		46,900
Product Development		34,000		138,100
Sales and marketing		63,300		51,000
General and administrative		44,100		425,800
Total	$	162,200	$	666,900

Schedule of Share-based Compensation, Activity [Table Text Block]

Following is a summary of the status of options outstanding at March 31, 2015:

Exercise Price		Number of Shares	Expiration Date	Weighted Average Exercise Price
$	0.04718	8,920,300	12/2022 – 01/2023	$	0.04718
$	0.25	2,777,605	03/2023 – 01/2025		0.25
$	0.26	425,000	07/2024		0.26
$	3.00	42,670	03/2022		3.00
$	3.60	28,648	08/2016		3.60
$	3.96	32,928	08/2016		3.96
$	9.00	4,525	11/2016		9.00
$	12.00	28,535	03/2019 – 07/2020		12.00
$	14.10	10,000	03/2021		14.10
$	15.30	1,373	09/2018		15.30
$	16.50	262,441	03/2020		16.50
$	17.70	953	08/2016		17.70
$	24.00	4,667	12/2017		24.00
$	26.70	32,297	09/2017		26.70
$	28.80	11,767	04/2018		28.80
$	32.70	83,790	08/2017		32.70
	Total	12,667,499		$	0.83

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

Following is a summary of the status of warrants outstanding at March 31, 2015:

Exercise Price		Number of Shares	Expiration Date	Weighted Average Exercise Price
$	0.04718	38,152	03/2018	$	0.04718
	0.25	332,200	04/2016 – 07/2017		0.25
	0.275	324,000	06/2018 – 03/2019		0.275
	1.00	67,170	10/2015 – 01/2017		1.00
	7.50	3,334	05/2016		7.50
$	9.00	16,668	07/2017		9.00
	Total	781,524		$	0.53

Employee Stock Option [Member]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of stock option activity is as follows: 

	Number of Shares	Weighted Average Exercise Price
Outstanding at September 30, 2014	12,417,499	$	0.84
Granted
Exercised
Forfeited
Outstanding at December 31, 2014	12,417,499	$	0.84
Granted	250,000		0.25
Exercised	-		-
Forfeited	-		-
Outstanding at March 31, 2015	12,667,499	$	0.83

Warrant [Member]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

 The warrant activity for the period starting October 1, 2013, through March 31, 2015, is described as follows:

	Number of Shares	Weighted Average Exercise Price
Outstanding at September 30, 2014	814,744	$	3.07
Granted	200,000		0.25
Exercised	-		-
Forfeited	(226,020)		9.14
Outstanding at December 31,2014	788,724		0.61
Granted	-		-
Exercised	-		-
Forfeited	(7,200)		9.15
Outstanding at March 31, 2015	781,524	$	0.53

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $)	6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Sep. 30, 2014
Significant Accounting Policies [Line Items]
Depreciation	$ 4,400	$ 5,400
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	72,300	65,200
Accounts Payable, Trade	476,900
Advertising Expense	29,000	10,000
Cash, FDIC Insured Amount	250,000
Cash, Uninsured Amount	60,000
Deferred Revenue	45,900	47,000	45,900
Derivative, Gain on Derivative	$ 99,300
Minimum [Member]
Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Maximum [Member]
Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	5 years

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COMMITMENTS AND CONTINGENT LIABILITIES (Details Textual) (USD $)	3 Months Ended		6 Months Ended		1 Months Ended	3 Months Ended	12 Months Ended	1 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2013	Sep. 30, 2013	Apr. 24, 2013
Other Commitments [Line Items]
Operating Leases, Rent Expense, Net	$ 12,200	$ 12,300	$ 24,400	$ 20,600
Capital Leases Future Minimum Payments Due	4,100		4,100
Mr Brandt [Member]
Other Commitments [Line Items]
Loss Contingency, Damages Sought, Value					9,000,000	170,000	250,000
Headquarters and Neurometric Information Services [Member]
Other Commitments [Line Items]
Lessor Leasing Arrangements, Operating Leases, Term of Contract	24 months
Operating Leases Monthly Lease Payments	4,349
Operating Leases, Future Minimum Payments, Due in Two Years	4,523		4,523
EEG Equipment [Member]
Other Commitments [Line Items]
Operating Leases Monthly Lease Payments	325
Proceeds from Long-term Capital Lease Obligations								8,900
Capital Lease Term	36 months
Capital Leases Future Minimum Payments Due	4,100		4,100
Capital Leases, Future Minimum Payments Due in Two Years	3,400		3,400
Capital Leases, Future Minimum Payments Due in Three Years	$ 700		$ 700

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
OPERATING ACTIVITIES:
Net loss	$ (1,570,900)	$ (807,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Net loss from discontinued operations	1,800	3,300
Depreciation and amortization	4,400	5,400
Amortization of discount on bridge notes issued	29,900	0
Loss on derivative liability valuation	(67,300)	0
Stock-based compensation	162,200	666,900
Gain on extinguishment of debt	0	(1,105,200)
Non-cash interest expense	42,800	0
Valuation of warrants - investor relations	21,600	0
Changes in operating assets and liabilities
Accounts receivable	3,900	19,500
Prepaids and other	(56,500)	(36,700)
Accounts payable and accrued liabilities	31,800	(244,700)
Deferred compensation	73,900	(426,300)
Deferred revenue grant funds	0	47,000
Net cash used in operating activities	(1,322,400)	(1,877,800)
FINANCING ACTIVITIES:
Repayment of a capital lease	(1,900)	(3,500)
Net proceeds from secured notes	415,000
Net proceeds from purchase of common stock	0	1,431,000
Net cash provided by financing activities	413,100	1,427,500
Net cash used in continuing operations	(909,300)	(450,300)
DISCONTINUED OPERATIONS
Net Cash used in discontinued operations	(21,300)	(39,500)
NET DECREASE IN CASH	(930,600)	(489,800)
Cash - beginning of period	1,240,600	1,273,600
Cash - end of period	310,000	783,800
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for: Interest	1,500	1,700
Cash paid during the period for: Income taxes	4,000	2,600
Non-cash financing activities:
Placement agent warrants issued	$ 0	$ 44,100

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CONVERTIBLE DEBT AND EQUITY FINANCINGS

6 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

4. CONVERTIBLE DEBT AND EQUITY FINANCINGS

Between September 22, 2014, and March 18, 2015, the Company entered into a Note Purchase Agreement (the “Note Purchase Agreement”) in connection with a bridge financing, with nine accredited investors, including lead investor RSJ Private Equity (“RSJ PE”).  Pursuant to the Note Purchase Agreement, the Company issued twelve secured convertible promissory notes (each, a “September 2014 Note”) in the aggregate principal amount of $2.07 million. Of this amount, RSJ PE purchased a September 2014 Note for $750,000. The September 2014 Notes were also purchased by the following affiliates of the Company or entities under their control: The Tierney Family Trust, of which the Company’s Chairman of the Board, Thomas Tierney, is a trustee, purchased three September 2014 Notes for $415,000; the Company’s Director, John Pappajohn, purchased two September 2014 Notes for $300,000; the Follman Family Trust of which Robert Follman is a Director of the Company, purchase a September 2014 Note for $100,000; and Oman Ventures, of which Mark Oman, a greater than 5% stockholder of the Company, is the President, purchased a September 2014 Note for $200,000.

		As of March 31, 2015
Note Type and Investor	Due Date	Balance		Discount		Carrying Value
Senior Secured 5% Notes Convertible at $0.25 (the “September 2014 Notes”)		($)		($)		($)
RSJ Private Equity	03/21/2016	$	750,000	$	(44,600)	$	705,400
4 Accredited Investors	03/21/2016		300,000		(19,100)		280,900
John Pappajohn	03/21/2016		300,000		(23,300)		276,700
Tierney Family Trust	03/21/2016		415,000		(34,100)		380,900
Oman Ventures	03/21/2016		200,000		(16,900)		183,100
Follman Family Trust	03/21/2016		100,000		(6,300)		93,700
Total Secured Convertible Promissory (September 2014) Notes		$	2,065,000	$	(144,300)	$	1,920,700

The Note Purchase Agreement provides for the issuance and sale of September 2014 Notes in the aggregate principal amount of up to $2.5 million, in one or more closings to occur over a six-month period beginning September 22, 2014. The Note Purchase Agreement also provides that the Company and the holders of the September 2014 Notes enter into a registration rights agreement covering the registration of the resale of the shares of the Company’s common stock, par value $0.001 per share (“Common Stock”) underlying the September 2014 Notes.

The September 2014 Notes mature on March 21, 2016, which is eighteen months from the date of first issuance (subject to earlier conversion or prepayment), earn interest at a rate of 5% per annum with interest payable at maturity, are convertible into shares of Common Stock (i) automatically upon the closing of a qualified offering of no less than $5 million at a conversion price equal to the lesser of $0.25 or 70% of the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share or (ii) voluntarily within 15 days of maturity at the lesser of a conversion price equal to $0.25 or the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share. No September 2014 Note may be prepaid without the prior written consent of the holder of such Note. The September 2014 Notes are secured by a security interest in the Company’s intellectual property, as detailed in a security agreement. Upon a change of control of the Company, the holder of a September 2014 Note will have the option to have the Note repaid with a premium equal to 50% of the outstanding principal.

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DISCONTINUED OPERATIONS (Details) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Sep. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net Loss	$ (900)	$ 300	$ (1,800)	$ (3,300)
Neuro-Therapy Clinic [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues	0	0	0	0
Expenses	900	(300)	1,800	3,300
Operating Loss before taxes	(900)	300	(1,800)	(3,300)
Taxes	0	0	0	0
Net Loss	(900)	300	(1,800)	(3,300)
ASSETS:
Assets of Discontinued Operations	0		0		0
LIABILITIES:
Accounts Payable	86,600		86,600		86,600
Accrued Payroll Liabilities	71,000		71,000		90,600
Liabilities of Discontinued Operations	$ 157,600		$ 157,600		$ 177,200

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RELATED PARTY TRANSACTIONS (Details Textual) (USD $)	6 Months Ended		3 Months Ended		12 Months Ended	9 Months Ended	0 Months Ended		22 Months Ended	0 Months Ended	1 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jul. 08, 2014	Jul. 08, 2014	Feb. 12, 2014	Feb. 28, 2015	Jul. 11, 2014	Jan. 28, 2014	Mar. 18, 2015	Sep. 22, 2014	Mar. 17, 2015	Jan. 08, 2015
Related Party Transaction [Line Items]
Proceeds From Purchase Of Common Stock	$ 0	$ 1,431,000
Accounts Payable, Current	841,500		841,500		868,900
Consulting fee per month	10,000
Consulting fee	30,000
Sharebased compensation by share based award options granted fair value	28,300		28,300
Employee Stock Option [Member]
Related Party Transaction [Line Items]
Weighted Average Exercise Price, Granted			$ 0.25
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total			250,000
2012 Option Plan [Member]
Related Party Transaction [Line Items]
Weighted Average Exercise Price, Granted	$ 0.25
Warrant [Member]
Related Party Transaction [Line Items]
Weighted Average Exercise Price, Granted			$ 0	0.25
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total			0	200,000
September 2014 Notes [Member]
Related Party Transaction [Line Items]
Debt Instrument, Face Amount	2,500,000		2,500,000
Debt Instrument, Convertible, Terms of Conversion Feature					(i) automatically upon the closing of a qualified offering of no less than $5 million at a conversion price equal to the lesser of $0.25 or 70% of the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share or (ii) voluntarily within 15 days of maturity at the lesser of a conversion price equal to $0.25 or the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share.
Long-term Debt, Gross	2,065,000		2,065,000
John Pappajohn [Member] | September 2014 Notes [Member]
Related Party Transaction [Line Items]
Debt Instrument, Face Amount												100,000	200,000
Debt Instrument, Convertible, Terms of Conversion Feature					(i) automatically upon the closing of a qualified offering of no less than $5 million at a conversion price equal to the lesser of $0.25 or 70% of the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share or (ii) voluntarily within 15 days of maturity at the lesser of a conversion price equal to $0.25 or the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share.
Follman Trust [Member] | Unregistered Stock [Member] | Private Placement [Member]
Related Party Transaction [Line Items]
Stock Issued During Period, Value, New Issues						100,000
Stock Issued During Period, Shares, New Issues						400,000
Proceeds From Issuance Of Private Placement						100,000
Share Price						$ 0.25	$ 0.25
Follman Trust [Member] | Unregistered Stock [Member] | Aggregate of Two Tranches [Member] | Private Placement [Member]
Related Party Transaction [Line Items]
Proceeds From Issuance Of Private Placement						300,000
Share Price						$ 0.25	$ 0.25
Stock Issued During Period, Shares, Purchase of Assets						1,200,000
Follman Trust [Member] | September 2014 Notes [Member]
Related Party Transaction [Line Items]
Debt Instrument, Face Amount														100,000
Debt Instrument, Convertible, Terms of Conversion Feature					(i) automatically upon the closing of a qualified offering of no less than $5 million at a conversion price equal to the lesser of $0.25 or 70% of the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share or (ii) voluntarily within 15 days of maturity at the lesser of a conversion price equal to $0.25 or the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share.
Tierney Family Trust [Member] | Unregistered Stock [Member] | Private Placement [Member]
Related Party Transaction [Line Items]
Stock Issued During Period, Value, New Issues						100,000
Stock Issued During Period, Shares, New Issues						400,000
Proceeds From Issuance Of Private Placement						100,000
Share Price						$ 0.25	$ 0.25
Tierney Family Trust [Member] | Unregistered Stock [Member] | Aggregate of Two Tranches [Member] | Private Placement [Member]
Related Party Transaction [Line Items]
Proceeds From Issuance Of Private Placement						300,000
Share Price						$ 0.25	$ 0.25
Stock Issued During Period, Shares, Purchase of Assets						1,200,000
Tierney Family Trust [Member] | September 2014 Notes [Member]
Related Party Transaction [Line Items]
Debt Instrument, Face Amount													200,000	115,000	100,000
Debt Instrument, Convertible, Terms of Conversion Feature					(i) automatically upon the closing of a qualified offering of no less than $5 million at a conversion price equal to the lesser of $0.25 or 70% of the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share or (ii) voluntarily within 15 days of maturity at the lesser of a conversion price equal to $0.25 or the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share.
Long-term Debt, Gross					415,000
Mr Paul Buck [Member]
Related Party Transaction [Line Items]
Employee Compensation Amount Of Waiver					106,500
Mr Paul Buck [Member] | 2012 Option Plan [Member]
Related Party Transaction [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross					470,000
Mr Paul Buck [Member] | Common Stock [Member] | Stock Subscription Agreement [Member]
Related Party Transaction [Line Items]
Common Stock, Value, Subscriptions						12,500	12,500	25,000
Stock Issued During Period, Value, New Issues							12,500	25,000
Stock Issued During Period, Shares, New Issues							50,000	100,000
Shares Issued, Price Per Share						$ 0.25	$ 0.25	$ 0.25
Decision Calculus Associates [Member]
Related Party Transaction [Line Items]
Stock Issued During Period, Value, New Issues									210,000
George Carpenter [Member]
Related Party Transaction [Line Items]
Employee Compensation Amount Of Waiver					98,000
Accounts Payable, Current									10,000
George Carpenter [Member] | 2012 Option Plan [Member]
Related Party Transaction [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross					435,000
Mr and Mrs Carpenter [Member] | Common Stock [Member] | Stock Subscription Agreement [Member]
Related Party Transaction [Line Items]
Common Stock, Value, Subscriptions										12,500	50,000
Stock Issued During Period, Value, New Issues										12,500	50,000
Stock Issued During Period, Shares, New Issues										50,000	200,000
Shares Issued, Price Per Share										$ 0.25	$ 0.25
Stewart Navarre [Member]
Related Party Transaction [Line Items]
Employee Compensation Amount Of Waiver					83,600
Stewart Navarre [Member] | 2012 Option Plan [Member]
Related Party Transaction [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross					385,000
Brian MacDonald [Member]
Related Party Transaction [Line Items]
Employee Compensation Amount Of Waiver					66,700
Brian MacDonald [Member] | 2012 Option Plan [Member]
Related Party Transaction [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross					310,000
SAIL Pre-Exit Acceleration fund, L.P [Member]
Related Party Transaction [Line Items]
Stock Issued During Period, Shares, New Issues										40,000
Proceeds From Purchase Of Common Stock										10,000
Shares Issued, Price Per Share										$ 0.25
Oman Ventures LLC [Member] | September 2014 Notes [Member]
Related Party Transaction [Line Items]
Debt Instrument, Face Amount													$ 200,000
Debt Instrument, Convertible, Terms of Conversion Feature					(i) automatically upon the closing of a qualified offering of no less than $5 million at a conversion price equal to the lesser of $0.25 or 70% of the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share or (ii) voluntarily within 15 days of maturity at the lesser of a conversion price equal to $0.25 or the lowest cost of Common Stock offered by the Company, but in no event less than $0.10 per share.

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DERIVATIVE LIABILITIES (Tables)

6 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

The Black-Scholes option-pricing model with the following assumption inputs:

	March 31, 2015
Annual dividend yield	-
Expected life (years)	0.5
Risk-free interest rate	0.14	%
Expected volatility	64.22	%