Income Taxes (Tables)

12 Months Ended

Sep. 30, 2016

Components of the Net Deferred Tax (Liability)

Components of the net deferred tax asset (liability) at September 30, 2016 and 2015 are as follows:

		2016		2015
Deferred tax assets:
Accrued compensation	$	1,691,050		$	1,513,021
Stock compensation		7,224,958			6,571,774
Capitalized research and development		2,957,528			-
Fair value adjustments		-			2,850,125
Net operating losses		125,120,957			88,965,968
Intangible Assets		5,544,091			5,551,705
Total deferred tax assets		142,538,584			105,452,593
Valuation allowance		(128,695,371	)		(95,085,045	)
Deferred tax liabilities:
State taxes		(13,804,268	)		(10,282,834	)
Fixed assets		(38,945	)		(84,714	)
Total deferred tax liability		(13,843,213	)		(10,367,548	)
Net deferred tax assets (liabilities)	$	—		$	—

Provision for Income Taxes

The provision for income taxes for the years ended September 30, 2016 and 2015 are as follows:

	2016		2015
Federal:
Current		—		—
Deferred		—		—
Total Federal		—		—
State:
Current	$	2,400		2,400
Deferred		—		—
Total State	$	2,400		2,400
Provision from income taxes	$	2,400		2,400

Summary of Effective Income Tax Rate Reconciliation

The Company’s effective income tax rate differs from the statutory federal income tax rate as follows for the years ended September 30, 2016 and 2015:

	2016		2015
At U.S. federal statutory rate	34.0	%		34.0	%
State taxes, net of federal effect	9.0			9.3
Stock compensation	(1.1	)		(0.7	)
Mark-to-market adjustments	(0.1	)		0.7
Valuation allowance	(41.1	)		(43.4	)
Other	(0.7	)		0.1
Effective income tax rate	0.0	%		0.0	%