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<div> NOTE 4. ACQUISITIONS Roche Madison On October 21, 2011, the Company entered into a Stock and Asset Purchase Agreement (the “RNAi Purchase Agreement”) with Hoffmann-La Roche Inc. and F Hoffmann-La Roche Ltd (collectively, “Roche”), pursuant to which the Company purchased from Roche (i) all of the outstanding common stock of Roche Madison Inc. (“Roche Madison”, now “Arrowhead Madison”) and (ii) the intellectual property rights then held by Roche related to its RNAi business and identified in the RNAi Purchase Agreement (the “Transaction”). In consideration for the purchase of Roche Madison and the Roche RNAi assets, the Company issued to Roche a promissory note with a principal value of $50,000 and 1,288,158 shares of Common Stock. Pursuant to the RNAi Purchase Agreement, Roche has a right of first negotiation on certain product candidates developed by the Company and its affiliates relating to the purchased assets. If the Company proposes to out-license or enters into substantive negotiations to out-license, any Clinical Candidate or Existing Candidate (as such terms are defined in the RNAi Purchase Agreement), the Company must give notice of the Candidate it proposes to out-license and negotiate exclusively and in good faith with Roche for 90 days regarding the applicable out-license. This right of first negotiation applies to all Existing Candidates (as defined in the RNAi Purchase Agreement) and the first five Clinical Candidates for which the Company delivers notice to Roche and subsequently enters into an out-license. In addition to the consideration paid by the Company as per the closing terms, the Company is obligated to make certain royalty and milestone payments to Roche upon the occurrence of certain events. For certain product candidates that are developed by the Company that are covered by a valid claim by the patent rights transferred in the Transaction for which the Company and Roche do not enter into a licensing arrangement, the Company will be obligated to pay a 3% royalty on Net Sales (as defined in the RNAi Purchase Agreement), provided that the royalty rate may be reduced or offset in certain circumstances. The obligation to pay royalties on such candidates will last until the later of (i) the expiration of the last to expire patent right related to such product candidate that was transferred in the Transaction and (ii) ten years after the first commercial sale of such product candidate. The Company will also be obligated to make cash payments to Roche upon the achievement of various milestones for certain clinical candidates, for which the Company and Roche do not enter into a licensing arrangement, including the first regulatory approval in certain jurisdictions, and upon certain annual sales milestones for candidates that receive regulatory approval. The potential payments range from $2,500,000 to $6,000,000 per milestone. At the time of acquisition, the Company’s estimate of future payments for potential royalties and milestones had a net present value of $84,935 which was recorded as contingent consideration as a part of other non-current liabilities.  Contingent consideration is calculated by modeling research and development activities for clinical candidates, forecasting timelines to market, and using “peak sales” estimate modeling, cash flows and potential milestone and royalty payments are calculated.  The modeling assumes certain success rates, and discount factors related to riskiness of projects and the time value of money to calculate a net present value of future consideration payments to Roche.  These estimates are based on many unknown variables that are difficult to estimate, and due to the extended process of drug development prior to marketing of drug candidates, the models must extend many years into the future.  Such predictions are inherently uncertain.  On a quarterly basis, the Company re-evaluates its contingent consideration, and if material, makes adjustments to the recorded liability.  Any adjustment to the contingent consideration liability is reflected in the Company’s Statement of Operations.  During fiscal 2013, the contingent consideration liability was increased by $1.4 million, which is recorded as a part of other non-current liabilities on the Company’s Consolidated Balance Sheet. There have been no changes to the liability during the nine months ended June 30, 2014.  For additional information related to our valuation of this obligation, see Note 10, Fair Value Measurements.</div>

<div> NOTE 9. STOCK-BASED COMPENSATION Arrowhead has three plans that provide for equity-based compensation. Under the 2000 Stock Option Plan, 38,000 shares of Arrowhead’s Common Stock are reserved for issuance upon exercise of non-qualified stock options. No further grants can be made under the 2000 Stock Option Plan. The 2004 Equity Incentive Plan reserves 2,734,840 shares for the grant of stock options, stock appreciation rights, restricted stock awards and performance unit/share awards to employees, consultants and others. The 2013 Incentive Plan reserves 4,000,000 shares for the grant of stock options, stock appreciation rights, restricted stock awards and performance awards to employees, consultant and others.  As of June 30, 2014, there were options granted and outstanding to purchase 38,000, 2,638,652 and 736,875 shares of Common Stock under the 2000 Stock Option Plan, the 2004 Equity Incentive Plan and the 2013 Incentive Plan, respectively. Also, as of June 30, 2014, there were 410,085 shares reserved for options issued outside of equity compensation plans as inducement grants to new employees. During the nine months ended June 30, 2014, no options were granted under the 2004 Equity Incentive Plan, 765,000 were issued under the 2013 Incentive Plan and 165,000 options were granted outside of equity incentive plans as inducement stock options to new employees. The following tables summarize information about stock options:   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:92%;"> <tr> <td valign="bottom" style="width:41%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Number of Options Outstanding</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Weighted- Average Exercise Price Per Share</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Weighted- Average Remaining Contractual Term</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Aggregate Intrinsic Value</td> <td valign="bottom" style="width:1%;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%;"> Balance At September 30, 2012</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000;"> 1,910,794</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $ </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 6.10</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> </tr> <tr> <td valign="bottom" style="width:41%;"> Granted</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> 1,509,166</td> <td valign="bottom" style="width:1%;white-space:nowrap;">   </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $ </td> <td valign="bottom" style="width:10%;"> 2.03</td> <td valign="bottom" style="width:1%;white-space:nowrap;">   </td> <td valign="bottom" style="width:1%;">   </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;">  </td> <td valign="bottom" style="width:1%;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%;"> Cancelled</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $ </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> </tr> <tr> <td valign="bottom" style="width:41%; border-bottom:solid 0.75pt transparent;"> Exercised</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> (675 </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;"> ) </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;"> $ </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt transparent;"> 3.93</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">   </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">   </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="middle" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="middle" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%; border-bottom:solid 0.75pt transparent;"> Balance At September 30, 2013</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;"> 3,419,285 </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:solid 0.75pt transparent;"> 4.68</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:41%;"> Granted</td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-top:solid 0.75pt #000000;"> 930,000</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> 14.05</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;">  </td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;">  </td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%;"> Cancelled</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> (148,561</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;"> )</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 5.88</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:41%; border-bottom:solid 0.75pt transparent;"> Exercised</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> (377,112</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;"> )</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;"> $</td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt transparent;"> 6.28</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%; border-bottom:double 2.5pt transparent;"> Balance At June 30, 2014</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> 3,823,612</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:double 2.5pt transparent;"> 6.75</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt #000000;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:double 2.5pt #000000;"> 8.3 years</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:double 2.5pt #000000;"> 30,271,011</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:41%; border-bottom:double 2.5pt transparent;"> Exercisable At June 30, 2014</td> <td valign="bottom" style="width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;">  </td> <td valign="bottom" style="width:10%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;"> 1,532,180 </td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">   </td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;"> $</td> <td valign="bottom" style="width:10%; border-bottom:double 2.5pt transparent;"> 5.80</td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">   </td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;">   </td> <td valign="bottom" style="width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;">  </td> <td valign="bottom" style="width:10%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;"> 7.3 years</td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" style="width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" style="width:10%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;"> 13,666,712</td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> </tr> </table></div>   Stock-based compensation expense for the three and nine months ended June 30, 2014 was $1,070,631 and $2,186,653, respectively. Stock-based compensation expense for the three and nine months ended June 30, 2013 was $363,593 and $1,114,375, respectively. There is no income tax benefit as the Company is currently operating at a loss and an actual income tax benefit may not be realized. The loss creates a timing difference, resulting in a deferred tax asset, which is fully reserved by a valuation allowance. The aggregate grant date fair value of the options granted by the Company during the three and nine months ended June 30, 2014 is estimated at $1,176,000 and $8,295,600, respectively. The aggregate grant date fair value of the options granted by the Company during the three and nine months ended June 30, 2013 is estimated at $1,094,295 and $1,197,588, respectively. The intrinsic value of the options exercised during the three and nine months ended June 30, 2014 was $371,334 and $3,606,061, respectively.  No options were exercised during the three and nine months ended June 30, 2013. As of June 30, 2014, the pre-tax compensation expense for all unvested stock options in the amount of approximately $10,514,619 will be recognized in the Company’s results of operations over a weighted average period of 3.2 years. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which do not have vesting restrictions and are fully transferable. The determination of the fair value of each stock option is affected by the Company’s stock price on the date of grant, as well as assumptions regarding a number of highly complex and subjective variables. Because the Company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options. The assumptions used to value stock options are as follows:   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:76%;"> <tr> <td valign="bottom" style="width:62.32%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td valign="top" style="width:1.46%;">  </td> <td colspan="3" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:36.22%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Nine months ended June 30,</td> </tr> <tr> <td valign="bottom" style="width:62.32%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td valign="top" style="width:1.46%;">  </td> <td valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:17.38%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2014 </td> <td valign="bottom" style="width:1.46%;">  </td> <td valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:17.38%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2013 </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:62.32%;"> Dividend yield</td> <td valign="top" bgcolor="#CFF0FC" style="width:1.46%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:17.38%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">—</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.46%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:17.38%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">—</td> </tr> <tr> <td valign="bottom" style="width:62.32%;"> Risk-free interest rate</td> <td valign="top" style="width:1.46%;">  </td> <td valign="bottom" style="width:17.38%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1.8% to 2.5%  </td> <td valign="bottom" style="width:1.46%;">  </td> <td valign="bottom" style="width:17.38%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0.7%  to 1.3%</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:62.32%;"> Volatility</td> <td valign="top" bgcolor="#CFF0FC" style="width:1.46%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:17.38%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">69%</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.46%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:17.38%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">69%</td> </tr> <tr> <td valign="bottom" style="width:62.32%;"> Expected life (in years)</td> <td valign="top" style="width:1.46%;">  </td> <td valign="bottom" style="width:17.38%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6.25 to 9.72</td> <td valign="bottom" style="width:1.46%;">  </td> <td valign="bottom" style="width:17.38%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5.5 to 6.25</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:62.32%;"> Weighted average grant date fair value per share of options granted</td> <td valign="top" bgcolor="#CFF0FC" style="width:1.46%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:17.38%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$8.92</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.46%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:17.38%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$1.26</td> </tr> </table></div>   The dividend yield is zero as the Company currently does not pay a dividend. The risk-free interest rate is based on the U.S. Treasury bond. Volatility is estimated based on volatility average of the Company’s Common Stock price. Restricted Stock Units Restricted Stock Units (RSUs) are granted under the Company’s 2013 Incentive Plan.  During the nine months ended June 30, 2014, the Company issued 470,000 restricted stock units to certain members of management and certain members of its Board of Directors.  At vesting each RSU will be exchanged for one share of the Company’s Common Stock. The RSUs issued to management vest in equal installments on the one and two year anniversary of the date of grant.  The RSUs issued to the members of the Board of Directors vest upon the one year anniversary of the date of grant.   The following table summarizes the activity of the Company’s Restricted Stock Units:   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:76%;"> <tr> <td valign="bottom" style="width:64.68%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:16.76%; border-bottom:solid 0.75pt #000000;">   <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> Number of RSUs</td> <td valign="bottom" style="width:1.38%;">  </td> <td valign="bottom" style="width:0.96%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:11.9%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Weighted- Average Grant Date Fair Value</td> <td valign="bottom" style="width:1.38%;">  </td> <td valign="bottom" style="width:1.38%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">  </td> <td valign="bottom" style="width:0.78%;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64.68%;"> Unvested at September 30, 2013</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.08%; border-top:solid 0.75pt #000000;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:15.7%; border-top:solid 0.75pt #000000;"> - </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.38%;white-space:nowrap;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:0.96%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.4%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10.5%;"> -</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.38%;white-space:nowrap;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.38%;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:0.78%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:0.76%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64.68%;"> Granted</td> <td valign="bottom" style="width:1.08%;">  </td> <td valign="bottom" style="width:15.7%;"> 470,000</td> <td valign="bottom" style="width:1.38%;white-space:nowrap;">  </td> <td valign="bottom" style="width:0.96%;">  </td> <td valign="bottom" style="width:1.4%;">  </td> <td valign="bottom" style="width:10.5%;"> 14.54</td> <td valign="bottom" style="width:1.38%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1.38%;">  </td> <td valign="bottom" style="width:0.78%;">  </td> <td valign="bottom" style="width:0.76%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64.68%;"> Vested</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.08%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:15.7%;"> -</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.38%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:0.96%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.4%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10.5%;"> -</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.38%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.38%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:0.78%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:0.76%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64.68%; border-bottom:solid 0.75pt transparent;"> Forfeited</td> <td valign="bottom" style="width:1.08%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:15.7%; border-bottom:solid 0.75pt #000000;"> -</td> <td valign="bottom" style="width:1.38%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> <td valign="bottom" style="width:0.96%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1.4%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:10.5%; border-bottom:solid 0.75pt transparent;"> -</td> <td valign="bottom" style="width:1.38%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> <td valign="bottom" style="width:1.38%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:0.78%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:0.76%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64.68%; border-bottom:double 2.5pt transparent;"> Unvested at June 30, 2014</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.08%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:15.7%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> 470,000</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.38%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:0.96%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.4%; border-bottom:double 2.5pt transparent;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10.5%; border-bottom:double 2.5pt transparent;"> 14.54</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.38%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.38%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:0.78%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:0.76%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> </tr> </table></div>   The Company recorded $968,051 and $1,571,611 of expense relating to restricted stock units during the three and nine months ended June 30, 2014 respectively, and such expense is included in stock-based compensation expense.  There was no expense relating to restricted stock units during the three and nine months ended June 30, 2013. As of June 30, 2014, the pre-tax compensation expense for all unvested restricted stock units in the amount of approximately $5,291,302 will be recognized in the Company’s results of operations over a weighted average period of 1.5 years. </div>

<div> NOTE 10. FAIR VALUE MEASUREMENTS The Company measures its financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., exit price) in an orderly transaction between market participants at the measurement date. Additionally, the Company is required to provide disclosure and categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e., inputs) used in the valuation. Level 1 provides the most reliable measure of fair value while Level 3 generally requires significant management judgment. Financial assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. The fair value hierarchy is defined as follows: Level 1—Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2—Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly. Level 3—Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate of what market participants would use in valuing the asset or liability at the measurement date. The following table summarizes fair value measurements at June 30, 2014 and September 30, 2013 for assets and liabilities measured at fair value on a recurring basis: June 30, 2014:   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:92%;"> <tr> <td valign="bottom" style="width:41%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Level 1</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Level 2</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Level 3</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Total</td> <td valign="bottom" style="width:1%;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%;"> Cash and cash equivalents</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 138,349,733</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 138,349,733</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:41%;"> Derivative assets</td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%;"> Derivative liabilities</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 4,018,719</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 4,018,719</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:41%;"> Contingent consideration obligations related to acquisitions</td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> 1,595,273</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> 1,595,273</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> </table></div> September 30, 2013:   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:92%;"> <tr> <td valign="bottom" style="width:41%;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Level 1</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Level 2</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Level 3</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Total</td> <td valign="bottom" style="width:1%;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%;"> Cash and cash equivalents</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 19,114,444</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 19,114,444</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:41%;"> Derivative assets</td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%;"> Derivative liabilities</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 4,096,363</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 4,096,363</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:41%;"> Contingent consideration obligations related to acquisitions</td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> 1,595,273</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> 1,595,273</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> </table></div> The Company invests its excess cash balances in short and long-term corporate bonds, generally with remaining maturities of less than two years.  At June 30, 2014, the Company had short-term investments of $23,834,408, and long-term investments of $26,284,862, for a total of $50,119,270.  The fair value of its investment at June 30, 2014 was $49,735,616.  The Company expects to hold such investments until maturity, and thus unrealized gains and losses from the fluctuations in the fair value of the securities are not likely to be realized. As part of the proceeds from the sale of Unidym in January 2011, Arrowhead received a bond from Wisepower in the face amount of $2.5 million. The bond is convertible to Wisepower common stock at a price of $2.00 per share. The conversion feature is subject to derivative accounting as prescribed under ASC 815. Accordingly, the fair value of the conversion feature on the date of issuance was estimated using an option pricing model and recorded on the Company’s Consolidated Balance Sheet as a derivative asset. The fair value of the conversion feature is estimated at the end of each reporting period and the change in the fair value of the conversion feature is recorded as a non-operating gain/loss as change in value of derivatives in Company’s Consolidated Statement of Operations. During the quarter ended March 31, 2013, the trading of Wisepower stock was halted. Trading resumed in July 2013, but the trading price is significantly below the conversion price.  During fiscal 2013, the Company determined that the probability of realizing value from the conversion feature was remote, and the derivative asset value was reduced to zero. During the nine months ended June 30, 2014, there was no change in the fair value of the derivative asset. The assumptions used in valuing the derivative asset were not applicable as the value has been determined to be zero at June 30, 2014 and September 30, 2013. The following is a reconciliation of the derivative asset:   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:68%;"> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:56%;"> Value at September 30, 2012</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 250,250</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:56%;"> Receipt of instruments</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:56%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:12pt;;text-indent:-12pt;;color:#;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Decrease in value</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> (250,250</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;"> )</td> </tr> <tr> <td valign="bottom" style="width:56%; border-bottom:solid 0.75pt transparent;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:12pt;;text-indent:-12pt;;color:#;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net settlements</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> —</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:56%;"> Value at September 30, 2013</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:56%;"> Receipt of instruments</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:56%;"> Decrease in value</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:56%; border-bottom:solid 0.75pt transparent;"> Net settlements</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> —</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:56%; border-bottom:double 2.5pt transparent;"> Value at June 30, 2014</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:double 2.5pt #000000;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> </tr> </table></div> As part of an equity financing in June 2010, Arrowhead issued warrants to acquire up to 329,649 shares of Common Stock (the “2010 Warrants”), of which 24,324 warrants were outstanding at June 30, 2014. Similarly, as part of a financing in December 2012, Arrowhead issued warrants to acquire up to 912,543 shares of Common Stock (the “2012 Warrants”) of which 265,161 warrants were outstanding at June 30, 2014.  Further, as part of a financing in January 2013, Arrowhead issued warrants to acquire up to 833,530 shares of Common Stock (the “2013 Warrants”) of which 24,623 warrants were outstanding at June 30, 2014.  Each of the warrants discussed above contains a mechanism to adjust the strike price upon the issuance of certain dilutive equity securities. If during the terms of the Warrants, the Company issues Common Stock at a price lower than the exercise price for the Warrants, the exercise price would be reduced to the amount equal to the issuance price of the Common Stock.  As a result of these features, the 2010 Warrants, the 2012 Warrants, and the 2013 Warrants are subject to derivative accounting as prescribed under ASC 815. Accordingly, the fair value of the Warrants on the date of issuance was estimated using an option pricing model and recorded on the Company’s Consolidated Balance Sheet as a derivative liability. The fair value of the Warrants is estimated at the end of each reporting period and the change in the fair value of the Warrants is recorded as a non-operating gain or loss as change in value of derivatives in the Company’s Consolidated Statement of Operations. During the nine months ended June 30, 2014, the Company recorded a non-cash loss from the change in fair value of the derivative liability of $5,680,544. The assumptions used in valuing the derivative liability were as follows:   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:76%;"> <tr> <td valign="bottom" style="width:41.24%;"> 2010 Warrants</td> <td valign="bottom" style="width:2.14%;">  </td> <td valign="bottom" style="width:27.04%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">June 30, 2014</td> <td valign="bottom" style="width:1.58%;white-space:nowrap;">  </td> <td valign="bottom" style="width:2.74%;">  </td> <td valign="bottom" style="width:25.26%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">September 30, 2013</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41.24%;"> Risk free interest rate</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.14%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:27.04%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0.11%</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.58%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.74%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:25.26%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0.33%</td> </tr> <tr> <td valign="bottom" style="width:41.24%;"> Expected life</td> <td valign="bottom" style="width:2.14%;">  </td> <td valign="bottom" style="width:27.04%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:36pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1.5 Years</td> <td valign="bottom" style="width:1.58%;">  </td> <td valign="bottom" style="width:2.74%;">  </td> <td valign="bottom" style="width:25.26%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2.2 Years</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41.24%;"> Dividend yield</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.14%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:27.04%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.58%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.74%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:25.26%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None</td> </tr> <tr> <td valign="bottom" style="width:41.24%;"> Volatility</td> <td valign="bottom" style="width:2.14%;">  </td> <td valign="bottom" style="width:27.04%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">69%</td> <td valign="bottom" style="width:1.58%;white-space:nowrap;">  </td> <td valign="bottom" style="width:2.74%;">  </td> <td valign="bottom" style="width:25.26%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">69%</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41.24%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.14%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:27.04%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.58%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.74%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:25.26%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </td> </tr> <tr> <td valign="bottom" style="width:41.24%;"> 2012 Warrants</td> <td valign="bottom" style="width:2.14%;">  </td> <td valign="bottom" style="width:27.04%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">June 30, 2014</td> <td valign="bottom" style="width:1.58%;white-space:nowrap;">  </td> <td valign="bottom" style="width:2.74%;">  </td> <td valign="bottom" style="width:25.26%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">September 30, 2013</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41.24%;"> Risk free interest rate</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.14%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:27.04%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0.88%</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.58%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.74%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:25.26%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1.39%</td> </tr> <tr> <td valign="bottom" style="width:41.24%;"> Expected life</td> <td valign="bottom" style="width:2.14%;">  </td> <td valign="bottom" style="width:27.04%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:36pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3.5 Years</td> <td valign="bottom" style="width:1.58%;">  </td> <td valign="bottom" style="width:2.74%;">  </td> <td valign="bottom" style="width:25.26%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4.2 Years</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41.24%;"> Dividend yield</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.14%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:27.04%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.58%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.74%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:25.26%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None</td> </tr> <tr> <td valign="bottom" style="width:41.24%;"> Volatility</td> <td valign="bottom" style="width:2.14%;">  </td> <td valign="bottom" style="width:27.04%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">69%</td> <td valign="bottom" style="width:1.58%;white-space:nowrap;">  </td> <td valign="bottom" style="width:2.74%;">  </td> <td valign="bottom" style="width:25.26%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">69%</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41.24%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.14%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:27.04%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.58%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.74%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:25.26%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </td> </tr> <tr> <td valign="bottom" style="width:41.24%;"> 2013 Warrants</td> <td valign="bottom" style="width:2.14%;">  </td> <td valign="bottom" style="width:27.04%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">June 30, 2014</td> <td valign="bottom" style="width:1.58%;white-space:nowrap;">  </td> <td valign="bottom" style="width:2.74%;">  </td> <td valign="bottom" style="width:25.26%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">September 30, 2013</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41.24%;"> Risk free interest rate</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.14%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:27.04%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0.88%</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.58%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.74%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:25.26%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1.39%</td> </tr> <tr> <td valign="bottom" style="width:41.24%;"> Expected life</td> <td valign="bottom" style="width:2.14%;">  </td> <td valign="bottom" style="width:27.04%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:36pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3.6 Years</td> <td valign="bottom" style="width:1.58%;">  </td> <td valign="bottom" style="width:2.74%;">  </td> <td valign="bottom" style="width:25.26%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4.3 Years</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41.24%;"> Dividend yield</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.14%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:27.04%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.58%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:2.74%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:25.26%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None</td> </tr> <tr> <td valign="bottom" style="width:41.24%;"> Volatility</td> <td valign="bottom" style="width:2.14%;">  </td> <td valign="bottom" style="width:27.04%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">69%</td> <td valign="bottom" style="width:1.58%;white-space:nowrap;">  </td> <td valign="bottom" style="width:2.74%;">  </td> <td valign="bottom" style="width:25.26%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">69%</td> </tr> </table></div> The following is a reconciliation of the derivative liability related to these warrants:   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:68%;"> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:56%;"> Value at September 30, 2012</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 626,195</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:56%;"> Issuance of instruments</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> 2,153,819</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:56%;"> Change in value</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 5,066,591</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:56%; border-bottom:solid 0.75pt transparent;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:12pt;;text-indent:-12pt;;color:#;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net settlements</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> (3,754,808 </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;"> )</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:56%;"> Value at September 30, 2013</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000;"> 4,091,797</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:56%;"> Issuance of instruments</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:56%;"> Change in value</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 5,680,544</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:56%; border-bottom:solid 0.75pt transparent;"> Net settlements</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> (5,789,982)</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:56%; border-bottom:double 2.5pt transparent;"> Value at June 30, 2014</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> 3,982,359</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:56%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%; border-top:double 2.5pt #000000;">  </td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> </table></div> In conjunction with the financing of Ablaris in fiscal 2011, Arrowhead sold exchange rights to certain investors whereby the investors have the right to exchange their shares of Ablaris for a prescribed number of Arrowhead shares based upon a predefined ratio. The exchange rights have a seven-year term. During the first year, the exchange right allows the holder to exchange one Ablaris share for 0.06 Arrowhead shares (as adjusted for a subsequent reverse stock split). This ratio declines to 0.04 in the second year, 0.03 in the third year and 0.02 in the fourth year. In the fifth year and beyond the exchange ratio is 0.01. Exchange rights for 675,000 Ablaris shares were sold in fiscal 2011, and remain outstanding at June 30, 2014. The exchange rights are subject to derivative accounting as prescribed under ASC 815. Accordingly, the fair value of the exchange rights on the date of issuance was estimated using an option pricing model and recorded on the Company’s Consolidated Balance Sheet as a derivative liability. The fair value of the exchange rights is estimated at the end of each reporting period and the change in the fair value of the exchange rights is recorded as a non-operating gain or loss as change in value of derivatives in the Company’s Consolidated Statement of Operations. During the nine months ended June 30, 2014, the Company recorded a non-cash loss from the change in fair value of the derivative liability of $31,791.   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:76%;"> <tr> <td valign="bottom" style="width:72.36%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:13.16%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June 30,  2014</td> <td valign="bottom" style="width:1.32%;">  </td> <td valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:13.16%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">September 30,  2013</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:72.36%;"> Risk free interest rate</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0.88%</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.32%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1.39%</td> </tr> <tr> <td valign="bottom" style="width:72.36%;"> Expected life</td> <td valign="bottom" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3.5 Years</td> <td valign="bottom" style="width:1.32%;">  </td> <td valign="bottom" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4.3 Years</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:72.36%;"> Dividend yield</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.32%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None</td> </tr> <tr> <td valign="bottom" style="width:72.36%;"> Volatility</td> <td valign="bottom" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">69%</td> <td valign="bottom" style="width:1.32%;">  </td> <td valign="bottom" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">69%</td> </tr> </table></div> The following is a reconciliation of the derivative liability related to these exchange rights:   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:76%;"> <tr> <td valign="bottom" style="width:64%;"> Value at September 30, 2012</td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> 10,375</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64%;"> Issuance of instruments</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64%;"> Change in value</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> (5,806</td> <td valign="bottom" style="width:1%;white-space:nowrap;"> )</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64%; border-bottom:solid 0.75pt transparent;"> Net settlements</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:solid 0.75pt #000000;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64%;"> Value at September 30, 2013</td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;"> $</td> <td valign="bottom" style="width:10%; border-top:solid 0.75pt #000000;"> 4,569</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64%;"> Issuance of instruments</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64%;"> Change in value</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> 31,791</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64%; border-bottom:solid 0.75pt transparent;"> Net settlements</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:solid 0.75pt #000000;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64%; border-bottom:double 2.5pt transparent;"> Value at June 30, 2014</td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> 36,360</td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64%;">  </td> <td valign="bottom" style="width:1%; border-top:double 2.5pt #000000;">  </td> <td valign="bottom" style="width:10%; border-top:double 2.5pt #000000;">  </td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> </table></div> The derivative assets/liabilities are estimated using option pricing models that are based on the individual characteristics of the warrants or instruments on the valuation date, as well as assumptions for expected volatility, expected life and risk-free interest rate. Changes in the assumptions used could have a material impact on the resulting fair value. The primary input affecting the value of the Company’s derivatives liabilities is the Company’s stock price. Other inputs have a comparatively insignificant effect. During fiscal 2012, contingent consideration was recorded upon the acquisitions of Roche Madison Inc. and Alvos Therapeutics, Inc., totaling $173,621. The fair value measurement of the contingent consideration obligations is determined using Level 3 inputs. The fair value of contingent consideration obligations is based on a discounted cash flow model using a probability-weighted income approach. The measurement is based upon unobservable inputs supported by little or no market activity based on the Company’s own assumptions and experience. Estimating timing to complete the development, and obtain approval of products is difficult, and there are inherent uncertainties in developing a product candidate, such as obtaining U.S. Food and Drug Administration (FDA) and other regulatory approvals. In determining the probability of regulatory approval and commercial success, we utilize data regarding similar milestone events from several sources, including industry studies and the Company’s experience. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. Substantial judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, changes in assumptions could have a material impact on the amount of contingent consideration expense we record in any given period. Changes in the fair value of the contingent consideration obligations are recorded as operating expenses as contingent consideration – fair value adjustments in the Company’s Consolidated Statement of Operations. The following is a reconciliation of contingent consideration fair value.   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:76%;"> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:12.25pt;;text-indent:-12.25pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Value at September 30, 2012</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 173,621</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:12.25pt;;text-indent:-12.25pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Purchase price contingent consideration</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:12.25pt;;text-indent:-12.25pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Contingent consideration payments</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64%; border-bottom:solid 0.75pt transparent;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:12.25pt;;text-indent:-12.25pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Change in fair value of contingent consideration</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> 1,421,652</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64%;"> Value at September 30, 2013</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000;"> 1,595,273</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64%;"> Purchase price contingent consideration</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64%;"> Contingent consideration payments</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64%; border-bottom:solid 0.75pt transparent;"> Change in fair value of contingent consideration</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> —</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64%; border-bottom:double 2.5pt transparent;"> Value at June 30, 2014</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> 1,595,273</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> </tr> </table></div> The fair value of contingent consideration obligations is estimated through valuation models designed to estimate the probability of such contingent payments based on various assumptions and incorporating estimated success rates.  Estimated payments are discounted using present value techniques to arrive at estimated fair value at the balance sheet date.  Changes in the fair value of the contingent consideration obligations can result from changes to one or multiple inputs, including adjustments to the discount rates, changes in the amount or timing of expected expenditures associated with product development, changes in the amount or timing of cash flows from products upon commercialization, changes in the assumed achievement or timing of any development milestones, changes in the probability of certain clinical events and changes in the assumed probability associated with regulatory approval. Each of these assumptions can have a significant impact on the calculation of contingent consideration. The carrying amounts of the Company’s other financial instruments, which include accounts receivable, accounts payable, and accrued expenses approximate their respective fair values due to the relatively short-term nature of these instruments. The carrying value of the Company’s debt obligations approximates fair value based on market interest rates. </div>

<div> Nature of Business Arrowhead Research Corporation is a biopharmaceutical company developing targeted RNAi therapeutics. The Company is leveraging its proprietary Dynamic Polyconjugate (DPC) delivery platform to develop targeted drugs based on the RNA interference mechanism that efficiently silences disease-causing genes. Arrowhead’s pipeline includes ARC-520 for chronic hepatitis B virus, ARC-AAT for liver disease associated with Alpha-1 antitrypsin deficiency, and partner-based programs in obesity and oncology.  </div>

<div> Liquidity Historically, the Company’s primary source of financing has been through the sale of equity securities.  Research and development activities have required significant capital investment since the Company’s inception and the Company expects its operations to continue to require cash investment in fiscal 2014 and beyond as the Company advances its research and development efforts, including clinical trials, and related drug manufacturing costs.   At June 30, 2014, the Company had $138.3 million in cash to fund operations. In addition to its cash resources, the Company has invested excess cash in investment grade commercial bonds maturing in less than 27 months.  These bonds provide a source of liquidity, though the Company plans to hold them until maturity.  At June 30, 2014, the Company had invested $50.1 million in bonds.  During the nine months ended June 30, 2014, the Company’s cash position increased by $119.2 million, which was the result of the receipt of cash from the issuance of equity of $172.6 million and cash from the exercise of warrants and options of $12.4 million, partially offset by net cash invested in fixed income investments of $39.8 million, cash outflows of $24.5 million related to continuing operating activities and capital expenditures of $1.3 million. </div>

<div> Principles of Consolidation—The consolidated financial statements include the accounts of Arrowhead and its Subsidiaries.  Arrowhead’s primary operating subsidiary is Arrowhead Madison, which is located in Madison, Wisconsin, where the Company’s research and development facilities are located.  All significant intercompany accounts and transactions are eliminated in consolidation, and non-controlling interests are accounted for in the Company’s financial statements. </div>

<div> Basis of Presentation—The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X.  Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. Interim results are not necessarily indicative of results for a full year.  The September 30, 2013 Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures required by GAAP. This financial information should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2013.  Certain reclassifications have been made to prior period financial statements to conform to the current period presentation.  </div>

<div> Use of Estimates—The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the accompanying financial statements. Actual results could differ from those estimates.  </div>

<div> Cash and Cash Equivalents—The Company considers all liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.  The Company had no restricted cash at June 30, 2014 and September 30, 2013.</div>

<div> Concentration of Credit Risk—The Company maintains several checking accounts for its operations at two financial institutions. These accounts are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per account. Management believes the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which these deposits are held. </div>

<div> Investments—The Company invests excess cash balances in short-term and long-term marketable debt securities. Investments may consist of certificates of deposits, money market accounts, government-sponsored enterprise securities, corporate bonds and/or commercial paper. The Company accounts for its investment in marketable securities in accordance with FASB ASC 320, Investments – Debt and Equity Securities. This statement requires certain securities to be classified into three categories: Held-to-maturity—Debt securities that the entity has the positive intent and ability to hold to maturity are reported at amortized cost. Trading Securities—Debt and equity securities that are bought and held primarily for the purpose of selling in the near term are reported at fair value, with unrealized gains and losses included in earnings. Available-for-Sale—Debt and equity securities not classified as either securities held-to-maturity or trading securities are reported at fair value with unrealized gains or losses excluded from earnings and reported as a separate component of shareholders’ equity. The Company classifies its investments in marketable debt securities based on the facts and circumstances present at the time of purchase of the securities. At June 30, 2014, the Company classified all of its investments as held-to-maturity. Held-to-maturity investments are measured and recorded at amortized cost on the Company’s Consolidated Balance Sheet. Discounts and premiums to par value of the debt securities are amortized to interest income/expense over the term of the security. No gains or losses on investment securities are realized until they are sold or a decline in fair value is determined to be other-than-temporary.  See further information regarding the Company’s short and long term investments in Note 2 – Investments. See further information regarding fair market value of marketable debt securities in Note 10 – Fair Value Measurements, such fair market data is obtained from independent pricing services. </div>

<div> Property and Equipment—Property and equipment are recorded at cost, which may equal fair market value in the case of property and equipment acquired in conjunction with a business acquisition. Depreciation of property and equipment is recorded using the straight-line method over the respective useful lives of the assets ranging from three to seven years. Leasehold improvements are amortized over the lesser of the expected useful life or the remaining lease term. Long-lived assets, including property and equipment are reviewed for impairment whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. </div>

<div> Intangible Assets Subject to Amortization—Intangible assets subject to amortization included certain license agreements acquired through business combinations. Intangible assets subject to amortization are reviewed for impairment whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. </div>

<div> In-Process Research & Development (IPR&D)—IPR&D assets represent capitalized on-going research projects that Arrowhead acquired through business combinations. Such assets are initially measured at their acquisition date fair values. The amounts capitalized are being accounted for as indefinite-lived intangible assets, subject to impairment testing until completion or abandonment of R&D efforts associated with the project. Upon successful completion of a project, Arrowhead will make a determination as to the then remaining useful life of the intangible asset and begin amortization. Arrowhead tests its indefinite-lived assets for impairment at least annually, through a two-step process. The first step is a qualitative assessment to determine if it is more likely than not that the indefinite lived assets are impaired. Arrowhead considers relevant events and circumstances that could affect the inputs used to determine the fair value of the intangible assets. If the qualitative assessment indicates that it is more likely than not that the intangible assets are impaired, a second step is performed which is a quantitative test to determine the fair value of the intangible asset. If the carrying amount of the intangible assets exceeds its fair value, an impairment loss is recorded in the amount of that excess. If circumstances determine that it is appropriate, the Company may also elect to bypass step one, and proceed directly to the second step. </div>

<div> Contingent Consideration - The consideration for our acquisitions often includes future payments that are contingent upon the occurrence of a particular event.  For example, milestone payments might be based on the achievement of various regulatory approvals or future sales milestones, and royalty payments might be based on drug product sales levels. The Company records a contingent consideration obligation for such contingent payments at fair value on the acquisition date. The Company estimates the fair value of contingent consideration obligations through valuation models designed to estimate the probability of such contingent payments based on various assumptions and incorporating estimated success rates.  Estimated payments are discounted using present value techniques to arrive at estimated fair value at the balance sheet date. Changes in the fair value of our contingent consideration obligations are recognized within our consolidated statements of operations. Changes in the fair value of the contingent consideration obligations can result from changes to one or multiple inputs, including adjustments to the discount rates, changes in the amount or timing of expected expenditures associated with product development, changes in the amount or timing of cash flows from products upon commercialization, changes in the assumed achievement or timing of any development milestones, changes in the probability of certain clinical events and changes in the assumed probability associated with regulatory approval. These fair value measurements are based on significant inputs not observable in the market. Substantial judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, changes in assumptions could have a material impact on the amount of contingent consideration expense the Company records in any given period.</div>

<div> Minority Equity Investments—The Company had a minority equity investment in Leonardo, a privately held biotechnology company.  Based on the status of the development of Leonardo’s program, this investment has been fully impaired and the net book value at June 30, 2014 is $0.  The operations of Leonardo ceased in December 2013. </div>

<div> Non-controlling Interests in Majority-Owned Subsidiaries—Operating losses applicable to majority-owned Calando, Ablaris and, prior to its disposal, Unidym have periodically exceeded the non-controlling interests in the equity capital of either Subsidiary. Such excess losses applicable to the non-controlling interests have been and are borne by the Company as there is no obligation of the non-controlling interests to fund any losses in excess of their original investment. There is also no obligation or commitment on the part of the Company to fund operating losses of any Subsidiary whether wholly-owned or majority-owned. The Company allocates the non-controlling interests’ share of net loss in excess of the non-controlling interests’ initial investment in accordance with FASB ASC 810-10. When there is a change in the Company’s proportionate ownership share of a development-stage Subsidiary resulting from additional equity transactions in the Subsidiary, the change is accounted for as an equity transaction in consolidation. To the extent that the increase in the calculated value of the Company’s interest in the equity of the Subsidiary exceeds the Company’s investment in the transaction, that increase in value is referred to as the Company’s “increase in its proportionate share of the Subsidiary’s equity” and the amount is recorded as an increase in the Company’s Additional Paid-in Capital. </div>

<div> Revenue Recognition—Revenue from license fees are recorded when persuasive evidence of an arrangement exists, title has passed or services have been rendered, a price is fixed and determinable, and collection is reasonably assured. The Company may generate revenue from product sales, technology licenses, collaborative research and development arrangements, and research grants. Revenue under technology licenses and collaborative agreements typically consists of nonrefundable and/or guaranteed technology license fees, collaborative research funding and various milestone and future product royalty or profit-sharing payments. Payments under collaborative research and development agreements are recognized ratably over the relevant periods specified in the agreement, generally the period during which research and development is conducted. Revenue from up-front license fees, milestones and product royalties are recognized as earned based on the completion of the milestones and product sales, as defined in the respective agreements. Payments received in advance of recognition as revenue are recorded as deferred revenue. </div>

<div> Allowance for Doubtful Accounts—The Company accrues an allowance for doubtful accounts based on estimates of uncollectible revenues by analyzing historical collections, accounts receivable aging and other factors. Accounts receivable are written off when all collection attempts have failed. </div>

<div> Research and Development—Costs and expenses that can be clearly identified as research and development are charged to expense as incurred in accordance with FASB ASC 730-10. </div>

<div> Earnings (Loss) per Share—Basic earnings (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed using the weighted-average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares primarily consist of stock options issued to employees and consultants and warrants to purchase Common Stock of the Company.   </div>

<div> Stock-Based Compensation—The Company accounts for share-based compensation arrangements in accordance with FASB ASC 718, which requires the measurement and recognition of compensation expense for all share-based payment awards to be based on estimated fair values. The Company uses the Black-Scholes option valuation model to estimate the fair value of its stock options at the date of grant. The Black-Scholes option valuation model requires the input of subjective assumptions to calculate the value of stock options. The Company uses historical data and other information to estimate the expected price volatility and the expected forfeiture rate. </div>

<div> Derivative Assets and Liabilities – The Company accounts for warrants and other derivative financial instruments as either equity or assets/liabilities based upon the characteristics and provisions of each instrument. Warrants classified as equity are recorded as additional paid-in capital on the Company’s Consolidated Balance Sheet and no further adjustments to their valuation are made. Some of the Company’s warrants were determined to be ineligible for equity classification because of provisions that may result in an adjustment to their exercise price. Warrants classified as derivative liabilities and other derivative financial instruments that require separate accounting as assets or liabilities are recorded on the Company’s Consolidated Balance Sheet at their fair value on the date of issuance and are revalued on each subsequent balance sheet date until such instruments are exercised or expire, with any changes in the fair value between reporting periods recorded as other income or expense. The Company estimates the fair value of these assets/liabilities using option pricing models that are based on the individual characteristics of the warrants or instruments on the valuation date, as well as assumptions for expected volatility, expected life and risk-free interest rate. </div>

<div> Income Taxes—The Company accounts for income taxes under the liability method, which requires the recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amount expected to be realized. The provision for income taxes, if any, represents the tax payable for the period and the change in deferred income tax assets and liabilities during the period. </div>

<div> Recently Issued Accounting Standards In June 2014, the FASB issued ASU 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance, which eliminates the distinction and separate requirements for development stage entities and other reporting entities under U.S. GAAP.  Specifically the amendment eliminates the requirement for development stage entities to 1) present inception-to-date information in the statements of income, cash flow and shareholders’ equity, 2) label the financial statements as those of a development stage entity, 3) disclose a description of the development stage activities in which the entity is engaged and 4) disclose the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage.  ASU 2014-10 is effective for fiscal years beginning after December 15, 2014 with early adoption permitted.  The Company has adopted ASU 2014-10 effectively with the filing of this Form 10-Q.   In May 2014, the FASB issued ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606), which will supersede nearly all existing revenue recognition guidance under GAAP. ASU No. 2014-09 provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU No. 2014-09 allows for either full retrospective or modified retrospective adoption and will become effective for the Company in the first quarter of 2018. The Company is evaluating the potential effects of the adoption of this update on its financial statements. In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which eliminates diversity in practice for the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward is available to reduce the taxable income or tax payable that would result from disallowance of a tax position. ASU 2013-11 affects only the presentation of such amounts in an entity’s balance sheet and is effective for fiscal years beginning after December 15, 2013 and interim periods within those years. Early adoption is permitted. The Company is evaluating the impact, if any, of the adoption of ASU 2013-11 on its Consolidated Balance Sheet.</div>

<div> The following tables summarize the Company’s short and long-term investments as of June 30, 2014, and September 30, 2013.   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:92%;"> <tr> <td valign="bottom" style="width:41%;">  </td> <td colspan="14" valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">As of June 30, 2014</td> <td valign="bottom" style="width:1%;">  </td> </tr> <tr> <td valign="bottom" style="width:41%;">  </td> <td colspan="2" valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Amortized Cost</td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td colspan="2" valign="bottom" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Gross Unrealized Gains</td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td colspan="2" valign="bottom" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Gross Unrealized Losses</td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td colspan="2" valign="bottom" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Fair Value</td> <td valign="bottom" style="width:1%;">  </td> </tr> <tr> <td valign="top" bgcolor="#CFF0FC" style="width:41%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:12.25pt;;text-indent:-12.25pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Commercial notes (due within one year)</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000;"> 23,834,408</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000;"> 1,850</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000;"> (237,181</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> )</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000;"> 23,599,077</td> <td valign="top" bgcolor="#CFF0FC" style="width:1%;">  </td> </tr> <tr> <td valign="top" style="width:41%; border-bottom:solid 0.75pt transparent;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:12.25pt;;text-indent:-12.25pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Commercial notes (due after one year within three years)</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> 26,284,862</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> 3,899</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> (152,222</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;"> )</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> 26,136,599</td> <td valign="top" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> </tr> <tr> <td valign="top" bgcolor="#CFF0FC" style="width:41%; border-bottom:double 2.5pt transparent;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:12.25pt;;text-indent:-12.25pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> 50,119,270</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> 5,749</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> (389,403</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;"> )</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> 49,735,616</td> <td valign="top" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> </tr> </table></div>   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:92%;"> <tr> <td valign="bottom" style="width:41%;">  </td> <td colspan="14" valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">As of September 30, 2013</td> <td valign="bottom" style="width:1%;">  </td> </tr> <tr> <td valign="bottom" style="width:41%;">  </td> <td colspan="2" valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Amortized Cost</td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td colspan="2" valign="bottom" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Gross Unrealized Gains</td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td colspan="2" valign="bottom" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Gross Unrealized Losses</td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td colspan="2" valign="bottom" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Fair Value</td> <td valign="bottom" style="width:1%;">  </td> </tr> <tr> <td valign="top" bgcolor="#CFF0FC" style="width:41%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:12.25pt;;text-indent:-12.25pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Commercial notes (due within one year)</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000;"> 9,030,261</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000;"> 7,500</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000;"> (39,281</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> )</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000;"> 8,998,480</td> <td valign="top" bgcolor="#CFF0FC" style="width:1%;">  </td> </tr> <tr> <td valign="top" style="width:41%; border-bottom:solid 0.75pt transparent;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:12.25pt;;text-indent:-12.25pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Commercial notes (due after one year within three years)</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> 1,702,153</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> —</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> (2,362</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;"> )</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> 1,699,791</td> <td valign="top" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> </tr> <tr> <td valign="top" bgcolor="#CFF0FC" style="width:41%; border-bottom:double 2.5pt transparent;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:12.25pt;;text-indent:-12.25pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> 10,732,414</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> 7,500</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> (41,643</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;"> )</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> 10,698,271</td> <td valign="top" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> </tr> </table></div>  </div>

<div>   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:76%;"> <tr> <td valign="bottom" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:51%;">  </td> <td colspan="6" valign="bottom" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Balance as of</td> <td valign="bottom" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </td> </tr> <tr> <td valign="bottom" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:51%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td colspan="2" valign="bottom" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June 30, 2014</td> <td valign="bottom" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td valign="bottom" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td colspan="2" valign="bottom" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">September 30, 2013</td> <td valign="bottom" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:51%;"> Computers, office equipment and furniture</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;white-space:nowrap;"> 334,162</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;white-space:nowrap;"> 323,376</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:51%;"> Research equipment</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:10%;white-space:nowrap;"> 4,248,606</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:10%;white-space:nowrap;"> 3,452,013</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:51%;"> Software</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;white-space:nowrap;"> 69,623</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;white-space:nowrap;"> 69,623</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:51%; border-bottom:solid 0.75pt transparent;"> Leasehold improvements</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;white-space:nowrap;"> 2,955,217</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;white-space:nowrap;"> 2,749,409</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:51%;"> Total gross fixed assets </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000;white-space:nowrap;"> 7,607,608</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000;white-space:nowrap;"> 6,594,421</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:51%; border-bottom:solid 0.75pt transparent;"> Less:   Accumulated depreciation and amortization</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;white-space:nowrap;"> (3,933,477</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;"> )</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;white-space:nowrap;"> (3,081,186</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;"> )</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:51%; border-bottom:double 2.5pt transparent;"> Property and equipment, net </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;"> 3,674,131</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;"> 3,513,235</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> </tr> </table></div>  </div>

<div> As of June 30, 2014, future minimum lease payments due in fiscal years under capitalized leases are as follows:   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:56%;"> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:44%;"> 2014 (remainder of)</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 57,105</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:44%;"> 2015 </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> 228,420</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:44%;"> 2016 </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 228,420</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:44%;"> 2017 </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> 228,420</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:44%;"> 2018 </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 228,420</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:44%;"> 2019 and thereafter</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> 95,175</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:44%; border-bottom:solid 0.75pt transparent;"> Less interest</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt #000000;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:solid 0.75pt #000000;"> (40,681 </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;"> )</td> </tr> <tr> <td valign="bottom" style="width:44%;"> Principal</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> 1,025,279</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:44%; border-bottom:solid 0.75pt transparent;"> Less current portion</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:solid 0.75pt #000000;"> (213,110 </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;"> )</td> </tr> <tr> <td valign="bottom" style="width:44%; border-bottom:double 2.5pt transparent;"> Noncurrent portion</td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" style="width:10%; border-bottom:double 2.5pt #000000;"> 812,169</td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> </tr> </table></div>  </div>

<div> As of June 30, 2014, future minimum lease payments due in fiscal years under operating leases are as follows:   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:56%;"> <tr> <td valign="top" bgcolor="#CFF0FC" style="width:44%;"> 2014 (remainder of)</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 134,164</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="top" style="width:44%;"> 2015 </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> 580,626</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="top" bgcolor="#CFF0FC" style="width:44%;"> 2016 </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 597,196</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="top" style="width:44%;"> 2017 </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> 613,984</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="top" bgcolor="#CFF0FC" style="width:44%;"> 2018 </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 638,217</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="top" style="width:44%; border-bottom:solid 0.75pt transparent;"> 2019 and thereafter</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> 432,861 </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="top" bgcolor="#CFF0FC" style="width:44%; border-bottom:double 2.5pt transparent;"> Total</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:double 2.5pt #000000;"> 2,997,048</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> </tr> </table></div>  </div>

<div> The following tables summarize information about stock options:   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:92%;"> <tr> <td valign="bottom" style="width:41%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Number of Options Outstanding</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Weighted- Average Exercise Price Per Share</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Weighted- Average Remaining Contractual Term</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Aggregate Intrinsic Value</td> <td valign="bottom" style="width:1%;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%;"> Balance At September 30, 2012</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000;"> 1,910,794</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $ </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 6.10</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> </tr> <tr> <td valign="bottom" style="width:41%;"> Granted</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> 1,509,166</td> <td valign="bottom" style="width:1%;white-space:nowrap;">   </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $ </td> <td valign="bottom" style="width:10%;"> 2.03</td> <td valign="bottom" style="width:1%;white-space:nowrap;">   </td> <td valign="bottom" style="width:1%;">   </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;">  </td> <td valign="bottom" style="width:1%;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%;"> Cancelled</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $ </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> </tr> <tr> <td valign="bottom" style="width:41%; border-bottom:solid 0.75pt transparent;"> Exercised</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> (675 </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;"> ) </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;"> $ </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt transparent;"> 3.93</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">   </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">   </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="middle" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="middle" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%; border-bottom:solid 0.75pt transparent;"> Balance At September 30, 2013</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;"> 3,419,285 </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:solid 0.75pt transparent;"> 4.68</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;">   </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:41%;"> Granted</td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-top:solid 0.75pt #000000;"> 930,000</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> 14.05</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;">  </td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;">  </td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%;"> Cancelled</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> (148,561</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;"> )</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 5.88</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:41%; border-bottom:solid 0.75pt transparent;"> Exercised</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt #000000;"> (377,112</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;"> )</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;"> $</td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt transparent;"> 6.28</td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:10%; border-bottom:solid 0.75pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%; border-bottom:double 2.5pt transparent;"> Balance At June 30, 2014</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> 3,823,612</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:double 2.5pt transparent;"> 6.75</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt #000000;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:double 2.5pt #000000;"> 8.3 years</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:double 2.5pt #000000;"> 30,271,011</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:41%; border-bottom:double 2.5pt transparent;"> Exercisable At June 30, 2014</td> <td valign="bottom" style="width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;">  </td> <td valign="bottom" style="width:10%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;"> 1,532,180 </td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">   </td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;"> $</td> <td valign="bottom" style="width:10%; border-bottom:double 2.5pt transparent;"> 5.80</td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">   </td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;">   </td> <td valign="bottom" style="width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;">  </td> <td valign="bottom" style="width:10%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;"> 7.3 years</td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;">  </td> <td valign="bottom" style="width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" style="width:10%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;"> 13,666,712</td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> </tr> </table></div>  </div>

<div> The following table summarizes fair value measurements at June 30, 2014 and September 30, 2013 for assets and liabilities measured at fair value on a recurring basis: June 30, 2014:   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:92%;"> <tr> <td valign="bottom" style="width:41%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Level 1</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Level 2</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Level 3</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Total</td> <td valign="bottom" style="width:1%;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%;"> Cash and cash equivalents</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 138,349,733</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 138,349,733</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:41%;"> Derivative assets</td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%;"> Derivative liabilities</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 4,018,719</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 4,018,719</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:41%;"> Contingent consideration obligations related to acquisitions</td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> 1,595,273</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> 1,595,273</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> </table></div> September 30, 2013:   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:92%;"> <tr> <td valign="bottom" style="width:41%;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Level 1</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Level 2</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Level 3</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;">  </td> <td colspan="2" valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:1%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Total</td> <td valign="bottom" style="width:1%;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%;"> Cash and cash equivalents</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 19,114,444</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 19,114,444</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:41%;"> Derivative assets</td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:41%;"> Derivative liabilities</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 4,096,363</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;"> $</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> 4,096,363</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:41%;"> Contingent consideration obligations related to acquisitions</td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> —</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> 1,595,273</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> 1,595,273</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> </table></div>  </div>

<div>   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:76%;"> <tr> <td valign="bottom" style="width:72.36%;"> <p style="text-align:center;margin-top:0pt;margin-bottom:0pt;margin-left:0pt;;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;text-indent:0pt;;"> </td> <td valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:13.16%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June 30,  2014</td> <td valign="bottom" style="width:1.32%;">  </td> <td valign="bottom" style="padding-left:0.7pt;padding-Right:0.7pt;padding-Top:0pt;padding-Bottom:0pt;width:13.16%; border-bottom:solid 1pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">September 30,  2013</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:72.36%;"> Risk free interest rate</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0.88%</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.32%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1.39%</td> </tr> <tr> <td valign="bottom" style="width:72.36%;"> Expected life</td> <td valign="bottom" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3.5 Years</td> <td valign="bottom" style="width:1.32%;">  </td> <td valign="bottom" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4.3 Years</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:72.36%;"> Dividend yield</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1.32%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None</td> </tr> <tr> <td valign="bottom" style="width:72.36%;"> Volatility</td> <td valign="bottom" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">69%</td> <td valign="bottom" style="width:1.32%;">  </td> <td valign="bottom" style="width:13.16%;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">69%</td> </tr> </table></div>  </div>

<div> The following is a reconciliation of the derivative liability related to these exchange rights:   <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:76%;"> <tr> <td valign="bottom" style="width:64%;"> Value at September 30, 2012</td> <td valign="bottom" style="width:1%;"> $</td> <td valign="bottom" style="width:10%;"> 10,375</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64%;"> Issuance of instruments</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64%;"> Change in value</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> (5,806</td> <td valign="bottom" style="width:1%;white-space:nowrap;"> )</td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64%; border-bottom:solid 0.75pt transparent;"> Net settlements</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:solid 0.75pt #000000;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64%;"> Value at September 30, 2013</td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000;"> $</td> <td valign="bottom" style="width:10%; border-top:solid 0.75pt #000000;"> 4,569</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64%;"> Issuance of instruments</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64%;"> Change in value</td> <td valign="bottom" style="width:1%;">  </td> <td valign="bottom" style="width:10%;"> 31,791</td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" bgcolor="#CFF0FC" style="width:64%; border-bottom:solid 0.75pt transparent;"> Net settlements</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt #000000;">  </td> <td valign="bottom" bgcolor="#CFF0FC" style="width:10%; border-bottom:solid 0.75pt #000000;"> —</td> <td valign="bottom" bgcolor="#CFF0FC" style="width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64%; border-bottom:double 2.5pt transparent;"> Value at June 30, 2014</td> <td valign="bottom" style="width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> $</td> <td valign="bottom" style="width:10%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;"> 36,360</td> <td valign="bottom" style="width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">  </td> </tr> <tr> <td valign="bottom" style="width:64%;">  </td> <td valign="bottom" style="width:1%; border-top:double 2.5pt #000000;">  </td> <td valign="bottom" style="width:10%; border-top:double 2.5pt #000000;">  </td> <td valign="bottom" style="width:1%;white-space:nowrap;">  </td> </tr> </table></div>  </div>

less than 27 months

50100000

39800000

250000

P3Y

P7Y

0 1850 3899 5749 237181 152222 389403

23599077

26136599

49735616

50119270

7500 7500 39281 2362 41643

8998480

1699791

10698271

10732414

334162

323376

4248606 3452013

69623

2955217

2749409

7607608

6594421

3933477

3081186

50000 1288158 P90D 0.03 later of (i) the expiration of the last to expire patent right related to such product candidate that was transferred in the Transaction and (ii) ten years after the first commercial sale of such product candidate.

2500000

6000000

84935

1400000

P4Y

P3Y

P20Y

147800

13663

40990

74115

222345

14000

55000

14000

3117322

1667247

1308047

236009

123191

40990

82201

4784569

1.00 1253000

87000

4500000 0.08

0.79

0.76

2900000

1300000 1600000

0.64

0.64 0.03

150000000

2891257

2730375

5291

16000

7182925

0.0999 15000000 P3Y 1000000

5.86

1000

3071672

46000

5.86

60000000

64000000

6325000

18.95

112600000

70.60

5.00

5.09

1.38

4.16

3.25

2.12

1.83

94897

416225

291204

24324

1000

334347

75000

289784

1526781

P2Y10M24D P1Y2M12D P4M24D P1Y6M P2Y6M P2Y1M6D P3Y6M P3Y6M

2019-08-31

22000

0.03

2019-02-28

25000

16000

15000

19000 75000 138000 403000 126000 407000

57105

228420

95175

40681

1025279

134164

580626

597196

613984

638217

432861

2997048

38000

410085

2734840

4000000

38000

2638652

736875

765000

165000

1910794

1509166

675

3419285

930000

148561

377112

3823612

1532180

6.10

2.03

3.93

4.68

14.05

5.88

6.28

6.75

5.80

P8Y3M18D

P7Y3M18D

30271011

13666712

1070631

2186653

363593

1114375

1176000 8295600 1094295 1197588

371334

3606061

0.00

0.018

0.007

0.025

0.013

0.69

P6Y3M

P9Y8M19D

P5Y6M

P6Y3M

8.92

1.26

470000

14.54

968051

1571611

5291302

P1Y6M

10514619

P3Y2M12D

138349733

4018719

1595273

19114444

4096363

1595273

2500000

2.00

250250

-250250

329649 912543 833530

24324

265161

24623

5680544

0.0011

0.0033

P1Y6M

P2Y2M12D

0.69

0.0088

0.0139

P3Y6M

P4Y2M12D

0.69

0.0088

0.0139

P3Y7M6D

P4Y3M18D

0.69

626195

2153819

5066591

3754808

4091797

5680544

5789982

3982359

31791

P7Y 0.06 0.04 0.03 0.02 0.01 675000

0.0088

0.0139

P3Y6M

P4Y3M18D

0.69

10375

-5806

4569

31791

36360

173621

1421652

1595273