Intangible Assets

3 Months Ended

Dec. 31, 2014

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

NOTE 4. INTANGIBLE ASSETS

Intangible assets consist of in-process research and development (“IPR&D”) not subject to amortization, and license agreements subject to amortization, which were capitalized as a part of a business combination.

IPR&D represents projects that have not yet received regulatory approval and are required to be classified as indefinite assets until the successful completion or the abandonment of the associated R&D efforts. Accordingly, during the development period after the date of acquisition, these assets will not be amortized until approval is obtained in one or more jurisdictions which, individually or combined, are expected to generate a significant portion of the total revenue expected to be earned by an IPR&D project. At that time, the Company will determine the useful life of the asset, reclassify the asset out of IPR&D and begin amortization. If the associated R&D effort is abandoned the related IPR&D assets will likely be written off and the Company would record an impairment loss.

Intangible assets not subject to amortization include IPR&D capitalized as part of a business combination from the acquisition of Roche Madison.

Intangible assets subject to amortization include license agreements capitalized as part of a business combination from the acquisition of Roche Madison. The license agreements are being amortized over the estimated life remaining at the time of acquisition, which was 4 years, and the accumulated amortization of the assets is approximately $175,100. Amortization expense for the three months ended December 31, 2014 and 2013 was $13,700 and $13,700, respectively.  Amortization expense is expected to be approximately $41,900 for the remainder of fiscal year2015, $13,000 in 2016, and zero thereafter.

The following table provides details on the Company’s intangible asset balances:

	Intangible assetsnot subject to amortization			Intangible assets subject to amortization			Total Intangible assets
Balance at September 30, 2013	$	3,117,322		$	123,191		$	3,240,513
Impairment		(2,172,387	)		-			(2,172,387	)
Amortization		-			(54,653	)		(54,653	)
Balance at September 30, 2014	$	944,935		$	68,538		$	1,013,473
Amortization		-			(13,664	)		(13,664	)
Balance at December 31, 2014	$	944,935		$	54,874		$	999,809