Notes Payable	6 Months Ended
Mar. 31, 2014
Notes Payable	NOTE 7. NOTES PAYABLE On November 26, 2008, Calando entered into Unsecured Convertible Promissory Note Agreements (“Notes”) for $2.5 million with accredited investors and Arrowhead, which invested $200,000 in the Notes offering. Arrowhead subsequently invested an additional $600,000 in the same offering. Except for one Note in the principal amount of $500,000, all Notes and accrued interest were converted into a total of 2,950 shares of Calando Series A Preferred Stock on June 23, 2009. The remaining Note had a 10% interest rate, matured on November 26, 2010, and was renegotiated and extended until November 26, 2013. The terms of the new note include a 10% interest rate and require two times principal payment at maturity. The interest rate while the Note is in default is 15%. The Note became due on November 26, 2013, but was not repaid due to lack of cash resources at Calando. At March 31, 2014, the Note is reflected on the balance sheet at the maturity amount of $1.0 million. Accrued interest in the amount of $210,000 is reflected as a part of accrued expenses on the Company’s Consolidated Balance Sheet. The holder of the Note initiated an involuntary petition of bankruptcy against Calando; Arrowhead did not object. A trustee has been appointed and a meeting of Calando creditors has occurred. It is expected that the trustee will dispose of Calando assets, primarily its license agreement with Cerulean. We cannot estimate the proceeds from the disposition of Calando’s assets, nor how it will be distributed amongst its various creditors, which includes Arrowhead and the holder of the Note.

Notes Payable

6 Months Ended

Mar. 31, 2014

NOTE 7. NOTES PAYABLE

On November 26, 2008, Calando entered into Unsecured Convertible Promissory Note Agreements (“Notes”) for $2.5 million with accredited investors and Arrowhead, which invested $200,000 in the Notes offering. Arrowhead subsequently invested an additional $600,000 in the same offering. Except for one Note in the principal amount of $500,000, all Notes and accrued interest were converted into a total of 2,950 shares of Calando Series A Preferred Stock on June 23, 2009. The remaining Note had a 10% interest rate, matured on November 26, 2010, and was renegotiated and extended until November 26, 2013. The terms of the new note include a 10% interest rate and require two times principal payment at maturity. The interest rate while the Note is in default is 15%. The Note became due on November 26, 2013, but was not repaid due to lack of cash resources at Calando. At March 31, 2014, the Note is reflected on the balance sheet at the maturity amount of $1.0 million. Accrued interest in the amount of $210,000 is reflected as a part of accrued expenses on the Company’s Consolidated Balance Sheet. The holder of the Note initiated an involuntary petition of bankruptcy against Calando; Arrowhead did not object. A trustee has been appointed and a meeting of Calando creditors has occurred. It is expected that the trustee will dispose of Calando assets, primarily its license agreement with Cerulean. We cannot estimate the proceeds from the disposition of Calando’s assets, nor how it will be distributed amongst its various creditors, which includes Arrowhead and the holder of the Note.