COMMITMENTS AND CONTINGENCIES |
12 Months Ended | ||||||||||||||||||||||||||||
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Sep. 30, 2015 | |||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||
| COMMITMENTS AND CONTINGENCIES |
NOTE 10 - COMMITMENTS AND CONTINGENCIES
Legal Proceedings
The Company may become involved in certain legal proceedings and claims which arise in the normal course of business. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the Companys results of operations, prospects, cash flows, financial position and brand. To the best knowledge of the Companys management, at September 30, 2015 and 2014, there are no legal proceedings which the Company believes will have a material adverse effect on its business, results of operations, cash flows or financial condition.
Lease Obligation
The Company is currently obligated under an operating lease for office space and associated building expenses. The lease expires in August 2016 with an optional renewal period for an additional two years. As of September 30, 2015, future minimum payments for all lease obligations are as follows:
Rental expense related to the operating lease has been recorded in the consolidated statements of operations in the amounts of $305,638, $83,556, and $0 for each of the years ended September 30, 2015, 2014, and 2013, respectively.
Contingent Stock Consideration On May 30, 2014, the Company completed the acquisition of certain assets of SKS Ocular, LLC (SKS Parent), and SKS Ocular 1, LLC (SKS 1 and SKS Parent referred to herein as SKS), including licenses, patents and contracts relating to micro-fabrication polymer-based sustained delivery platforms related to ocular therapeutics and dry age-related macular degeneration animal models, together with biomarkers to support such models.
The purchase price consisted of: (a) Cash in the amount of $3,500,000; (b) 1,194,862 shares of the Companys common stock (valued at $10,180,224 based on the trading price on May 30, 2014 of the Companys common stock) and (c) an additional 1,493,577 shares (the contingent shares) that will be issued contingent to achievement of certain milestones. This contingent consideration has been recorded as a liability of the Company and is reviewed by management for probability and likelihood of the milestones being achieved at each reporting period. The liability is adjusted according to managements assessment. |
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