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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Sep. 30, 2012	Dec. 21, 2012	Mar. 31, 2012
Entity Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Sep. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Trading Symbol	ARWR
Entity Registrant Name	ARROWHEAD RESEARCH CORP
Entity Central Index Key	0000879407
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		15,644,158
Entity Public Float			$ 68

Consolidated Balance Sheets - USD ($)	Sep. 30, 2012	Sep. 30, 2011
CURRENT ASSETS
Cash and cash equivalents	$ 3,377,288	$ 7,507,389
Trade receivable	9,375
Other receivables	9,930	1,608,382
Prepaid expenses and other current assets	618,130	110,818
Marketable securities	106,500	634,585
Note receivable, net	2,446,113
TOTAL CURRENT ASSETS	6,567,336	9,861,174
PROPERTY AND EQUIPMENT
Computers, office equipment and furniture	323,376	285,266
Research equipment	3,319,027	3,515
Software	69,623	77,020
Leasehold improvements	2,749,409
Property, Plant and Equipment, Gross, Total	6,461,435	365,801
Less: Accumulated depreciation and amortization	(1,565,783)	(340,364)
PROPERTY AND EQUIPMENT, NET	4,895,652	25,437
OTHER ASSETS
Patents and other intangible assets, net	4,784,569	1,731,211
Note receivable, net		2,272,868
Investment in Nanotope Inc., equity basis		1,649,748
Investment in Leonardo Biosystems Inc., at cost		187,000
Derivative asset and other non-current assets	280,261	161,125
TOTAL OTHER ASSETS	5,064,830	6,001,952
TOTAL ASSETS	16,527,818	15,888,563
CURRENT LIABILITIES
Accounts payable	877,986	576,809
Accrued expenses	730,775	864,511
Accrued payroll and benefits	1,127,219	195,649
Deferred revenue	37,500
Derivative liabilities	647,213	944,980
Capital lease obligation	214,801
Other current liabilities	1,692,394
TOTAL CURRENT LIABILITIES	5,327,888	2,581,949
LONG-TERM LIABILITIES
Note payable, net of current portion	839,421	606,786
Capital lease obligation, net of current portion	1,282,458
Other non-current liabilities	269,142	135,660
TOTAL LONG-TERM LIABILITIES	2,391,021	742,446
Commitments and contingencies
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding
Common stock, $ 0.001 par value; 145,000,000 shares authorized; 13,579,185 and 8,642,286 shares issued and outstanding as of September 30, 2012 and September 30, 2011, respectively	108,354	86,423
Additional paid-in capital	145,917,968	127,476,435
Subscription receivable	(1,016,000)	(900,000)
Accumulated deficit during the development stage	(134,997,680)	(113,871,752)
Total Arrowhead Research Corporation stockholders' equity	10,012,642	12,791,106
Noncontrolling interest	(1,203,733)	(226,938)
TOTAL STOCKHOLDERS' EQUITY	8,808,909	12,564,168
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 16,527,818	$ 15,888,563

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2012	Sep. 30, 2011
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	145,000,000	145,000,000
Common stock, shares issued	13,579,185	8,642,286
Common stock, shares outstanding	13,579,185	8,642,286

Consolidated Statements of Operations - USD ($)	12 Months Ended		113 Months Ended
Consolidated Statements of Operations - USD ($)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012
REVENUE	$ 146,875	$ 296,139	$ 4,138,834
OPERATING EXPENSES
Salaries and payroll-related costs	6,414,921	1,408,366	26,392,130
General and administrative expenses	6,439,323	3,795,380	31,353,215
Research and development	5,391,463	3,277,760	42,618,748
Stock-based compensation	1,241,404	1,376,921	13,581,468
Depreciation and amortization	1,748,975	267,978	7,409,286
TOTAL OPERATING EXPENSES	21,236,086	10,126,405	121,354,847
OPERATING LOSS	(21,089,211)	(9,830,266)	(117,216,013)
OTHER INCOME (EXPENSE)
Equity in income (loss) of unconsolidated affiliates	(240,154)	(163,180)	(963,407)
Impairment of investment in unconsolidated affiliates	(1,642,775)		(1,642,775)
Gain on purchase of Roche Madison	1,576,107		1,576,107
Loss on sale of property and equipment, net	(1,079,377)		(1,206,465)
Realized and unrealized gain (loss) on marketable securities	(58,091)	(261,219)	62,954
Interest income (expense), net	35,966	86,530	2,750,444
Change in value of derivatives	386,892	1,133,127	3,281,404
Gain on sale of stock in subsidiary			2,292,800
Other income		250,000	250,000
TOTAL OTHER INCOME (EXPENSE)	(1,021,432)	1,045,258	6,401,062
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(22,110,643)	(8,785,008)	(110,814,951)
Provision for income taxes
LOSS FROM CONTINUING OPERATIONS	(22,110,643)	(8,785,008)	(110,814,951)
Income (loss) from discontinued operations	(80)	1,373,396	(47,546,642)
Gain on disposal of discontinued operations		3,919,213	4,708,588
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS	(80)	5,292,609	(42,838,054)
NET LOSS	(22,110,723)	(3,492,399)	(153,653,005)
Net (income) loss attributable to noncontrolling interests	984,795	363,514	18,819,285
NET LOSS ATTRIBUTABLE TO ARROWHEAD	$ (21,125,928)	$ (3,128,885)	$ (134,833,720)
Earnings per share-basic and diluted:
Loss from continuing operations attributable to Arrowhead common shareholders	$ (1.90)	$ (1.18)
Loss from discontinued operations attributable to Arrowhead common shareholders		0.74
Net loss attributable to Arrowhead shareholders	$ (1.90)	$ (0.44)
Weighted average shares outstanding	11,129,766	7,181,121

Consolidated Statement of Stockholders' Equity - USD ($)	Total	Issued for Cash at $10.00 Per Unit [Member]	Stock Issuance Cost Charged to Additional Paid in Capital [Member]	Issued for Marketable Securities at $10.00 Per Unit [Member]	Issued for cash at $15.00 per unit [Member]	Additional Paid-in Capital Issued in Acquisition [Member]	Issued as a Gift for $10.90 Per Share [Member]	Issued as Stock Issuance Cost at $15.00 Per Unit [Member]	Exercised at $2.00 Per Share [Member]	Exercised at $10.00 Per Share [Member]	Exercised at $15.00 Per Share [Member]	Issued to Purchase Insert Therapeutics Share at $39.80 Per Share [Member]	Issued at $48.80 Per Share [Member]	Issued at $38.40 Per Share [Member]	Issued at $35.00 Per Share [Member]	Issued at $59.10 Per Share [Member]	Issued to Purchase Calando Pharmaceuticals Inc at $51.70 Per Share [Member]	Issued at $57.80 Per Share [Member]	Issued for Purchase of Carbon Nanotechnologies Inc at $37.70 Per Share [Member]	Issued at Approximately $18.00 Per Share Net [Member]	Arrowhead Increase in Proportionate Share of Insert Therapeutics Equity [Member]	Issued at $27.20 Per Share to Rice University [Member]	Issued at $28.30 Per Share to Purchase Shares of Unidym Inc [Member]	Issued at $29.50 Per Share to Purchase MASA Energy LLC [Member]	Issued at $21.90 Per Share to Unidym for the Acquisition of Nanoconduction [Member]	Issued at $21.80 Per Share [Member]	Issued at $5.50 Per Share to Unidym Stockholder in Exchange for Unidym's Shares [Member]	Issued at $5.20 Per Share to TEL Ventures in Exchange for Unidym's Shares [Member]	Arrowheads Increase in Proportionate Share of Calando's Equity [Member]	Issued at $3.00 Per Share [Member]	Issued to Unidym Stockholders in Exchange for Unidym's Shares [Member]	Issued at $6.30 Per Share [Member]	Issued at $13.12 Per Share [Member]	Issued to Calando Stockholders in Exchange for Calando's Shares [Member]	Issued at $3.80 Per Share [Member]	Issued at $3.70 Per Share [Member]	Issued at $4.00 Per Share [Member]	Issued at $6.23 Per Share [Member]	Issued at $5.11 Per Share [Member]	Issued at $2.76 Per Share [Member]	Preferred Stock Issued @ $1,000 Per Share [Member]	Common Stock [Member]	Common Stock [Member] Issued for Cash at $10.00 Per Unit [Member]	Common Stock [Member] Issued for Marketable Securities at $10.00 Per Unit [Member]	Common Stock [Member] Issued for cash at $15.00 per unit [Member]	Common Stock [Member] Additional Paid-in Capital Issued in Acquisition [Member]	Common Stock [Member] Issued as a Gift for $10.90 Per Share [Member]	Common Stock [Member] Issued as Stock Issuance Cost at $15.00 Per Unit [Member]	Common Stock [Member] Exercised at $2.00 Per Share [Member]	Common Stock [Member] Exercised at $10.00 Per Share [Member]	Common Stock [Member] Exercised at $15.00 Per Share [Member]	Common Stock [Member] Issued to Purchase Insert Therapeutics Share at $39.80 Per Share [Member]	Common Stock [Member] Issued at $48.80 Per Share [Member]	Common Stock [Member] Issued at $38.40 Per Share [Member]	Common Stock [Member] Issued at $35.00 Per Share [Member]	Common Stock [Member] Issued at $59.10 Per Share [Member]	Common Stock [Member] Issued to Purchase Calando Pharmaceuticals Inc at $51.70 Per Share [Member]	Common Stock [Member] Issued at $57.80 Per Share [Member]	Common Stock [Member] Issued for Purchase of Carbon Nanotechnologies Inc at $37.70 Per Share [Member]	Common Stock [Member] Issued at Approximately $18.00 Per Share Net [Member]	Common Stock [Member] Issued at $27.20 Per Share to Rice University [Member]	Common Stock [Member] Issued at $28.30 Per Share to Purchase Shares of Unidym Inc [Member]	Common Stock [Member] Issued at $29.50 Per Share to Purchase MASA Energy LLC [Member]	Common Stock [Member] Issued at $21.90 Per Share to Unidym for the Acquisition of Nanoconduction [Member]	Common Stock [Member] Issued at $21.80 Per Share [Member]	Common Stock [Member] Issued at $5.50 Per Share to Unidym Stockholder in Exchange for Unidym's Shares [Member]	Common Stock [Member] Issued at $5.20 Per Share to TEL Ventures in Exchange for Unidym's Shares [Member]	Common Stock [Member] Issued at $3.00 Per Share [Member]	Common Stock [Member] Issued to Unidym Stockholders in Exchange for Unidym's Shares [Member]	Common Stock [Member] Issued at $6.30 Per Share [Member]	Common Stock [Member] Issued at $13.12 Per Share [Member]	Common Stock [Member] Issued to Calando Stockholders in Exchange for Calando's Shares [Member]	Common Stock [Member] Issued at $3.80 Per Share [Member]	Common Stock [Member] Issued at $3.70 Per Share [Member]	Common Stock [Member] Issued at $4.00 Per Share [Member]	Common Stock [Member] Issued at $6.23 Per Share [Member]	Common Stock [Member] Issued at $5.11 Per Share [Member]	Common Stock [Member] Issued at $2.76 Per Share [Member]	Common Stock [Member] Issued Under Committed Capital Agreement [Member]	Preferred Stock [Member]	Preferred Stock [Member] Preferred Stock Issued @ $1,000 Per Share [Member]	Additional Paid-in Capital [Member]	Additional Paid-in Capital [Member] Issued for Cash at $10.00 Per Unit [Member]	Additional Paid-in Capital [Member] Stock Issuance Cost Charged to Additional Paid in Capital [Member]	Additional Paid-in Capital [Member] Issued for Marketable Securities at $10.00 Per Unit [Member]	Additional Paid-in Capital [Member] Issued for cash at $15.00 per unit [Member]	Additional Paid-in Capital [Member] Additional Paid-in Capital Issued in Acquisition [Member]	Additional Paid-in Capital [Member] Issued as a Gift for $10.90 Per Share [Member]	Additional Paid-in Capital [Member] Issued as Stock Issuance Cost at $15.00 Per Unit [Member]	Additional Paid-in Capital [Member] Exercised at $2.00 Per Share [Member]	Additional Paid-in Capital [Member] Exercised at $10.00 Per Share [Member]	Additional Paid-in Capital [Member] Exercised at $15.00 Per Share [Member]	Additional Paid-in Capital [Member] Issued to Purchase Insert Therapeutics Share at $39.80 Per Share [Member]	Additional Paid-in Capital [Member] Issued at $48.80 Per Share [Member]	Additional Paid-in Capital [Member] Issued at $38.40 Per Share [Member]	Additional Paid-in Capital [Member] Issued at $35.00 Per Share [Member]	Additional Paid-in Capital [Member] Issued at $59.10 Per Share [Member]	Additional Paid-in Capital [Member] Issued to Purchase Calando Pharmaceuticals Inc at $51.70 Per Share [Member]	Additional Paid-in Capital [Member] Issued at $57.80 Per Share [Member]	Additional Paid-in Capital [Member] Issued for Purchase of Carbon Nanotechnologies Inc at $37.70 Per Share [Member]	Additional Paid-in Capital [Member] Issued at Approximately $18.00 Per Share Net [Member]	Additional Paid-in Capital [Member] Arrowhead Increase in Proportionate Share of Insert Therapeutics Equity [Member]	Additional Paid-in Capital [Member] Issued at $27.20 Per Share to Rice University [Member]	Additional Paid-in Capital [Member] Issued at $28.30 Per Share to Purchase Shares of Unidym Inc [Member]	Additional Paid-in Capital [Member] Issued at $29.50 Per Share to Purchase MASA Energy LLC [Member]	Additional Paid-in Capital [Member] Issued at $21.90 Per Share to Unidym for the Acquisition of Nanoconduction [Member]	Additional Paid-in Capital [Member] Issued at $21.80 Per Share [Member]	Additional Paid-in Capital [Member] Issued at $5.50 Per Share to Unidym Stockholder in Exchange for Unidym's Shares [Member]	Additional Paid-in Capital [Member] Issued at $5.20 Per Share to TEL Ventures in Exchange for Unidym's Shares [Member]	Additional Paid-in Capital [Member] Arrowheads Increase in Proportionate Share of Calando's Equity [Member]	Additional Paid-in Capital [Member] Issued at $3.00 Per Share [Member]	Additional Paid-in Capital [Member] Series D Preferred Stock Issued for Subscription in Unidym [Member]	Additional Paid-in Capital [Member] Issued to Unidym Stockholders in Exchange for Unidym's Shares [Member]	Additional Paid-in Capital [Member] Issued at $6.30 Per Share [Member]	Additional Paid-in Capital [Member] Issued at $13.12 Per Share [Member]	Additional Paid-in Capital [Member] Issued to Calando Stockholders in Exchange for Calando's Shares [Member]	Additional Paid-in Capital [Member] Issued at $3.80 Per Share [Member]	Additional Paid-in Capital [Member] Issuance of Common Stock for Subscription [Member]	Additional Paid-in Capital [Member] Issued at $3.70 Per Share [Member]	Additional Paid-in Capital [Member] Issued at $4.00 Per Share [Member]	Additional Paid-in Capital [Member] Issued at $6.23 Per Share [Member]	Additional Paid-in Capital [Member] Issued at $5.11 Per Share [Member]	Additional Paid-in Capital [Member] Issued at $2.76 Per Share [Member]	Additional Paid-in Capital [Member] Issued Under Committed Capital Agreement [Member]	Additional Paid-in Capital [Member] Preferred Stock Issued @ $1,000 Per Share [Member]	Subscription Receivable [Member]	Subscription Receivable [Member] Series D Preferred Stock Issued for Subscription in Unidym [Member]	Subscription Receivable [Member] Issued to Unidym Stockholders in Exchange for Unidym's Shares [Member]	Subscription Receivable [Member] Issued at $3.80 Per Share [Member]	Subscription Receivable [Member] Issuance of Common Stock for Subscription [Member]	Subscription Receivable [Member] Issued at $2.76 Per Share [Member]	Accumulated Deficit during the Development Stage [Member]	Noncontrolling Interest [Member]	Noncontrolling Interest [Member] Issued to Unidym Stockholders in Exchange for Unidym's Shares [Member]	Noncontrolling Interest [Member] Issued to Calando Stockholders in Exchange for Calando's Shares [Member]
Beginning Balance Amount at Sep. 30, 2003	$ 1,419,762																																									$ 4,680																																								$ 1,510,320																																																		$ (95,238)
Stock issuances		$ 475,000		$ 500,000	$ 9,913,182	$ (150,469)	$ 162,750																																				$ 475	$ 500	$ 6,609	$ 706	$ 163																																				$ 474,525		$ 499,500	$ 9,906,573	$ (151,175)	$ 162,587
Beginning Balance Share at Sep. 30, 2003																																										468,000
Issuance and sold of Common Stock																																											47,500	50,000	660,879	70,553	15,000	35,623
Stock options exercised, Amount	15,000							$ 534,344	$ 15,000	$ 6,000																																$ 75						$ 356	$ 75	$ 6																																14,925							$ 533,988	$ 14,925	$ 5,994
Stock options exercised																																										7,500							7,500	600
Stock issuance cost charged to additional paid-in capital	(991,318)		$ (96,500)																																																																															(991,318)		$ (96,500)
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Total	175,653																																																																																	175,653
Net loss attributable to Arrowhead	(751,255)																																																																																																																																			(2,528,954)	$ 1,777,699
Ending Balance Amount at Sep. 30, 2004	11,227,149																																									$ 13,645																																								12,059,997																																																		(2,624,192)	1,777,699
Ending Balance Share at Sep. 30, 2004																																										1,363,155
Stock issuances	50,000											$ 2,000,000																														$ 12										$ 502																														49,988											$ 1,999,498
Issuance and sold of Common Stock																																										1,250										50,226
Stock options exercised, Amount										$ 25,000	$ 20,719,335																																							$ 25	$ 13,813																																								$ 24,975	$ 20,705,522
Stock options exercised																																																		2,500	1,381,289
Adjustments to additional paid in capital, reallocation of noncontrolling interest	230,087																																																																																	230,087
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Total	508,513																																																																																	508,513
Net income (loss) attributable to Arrowhead	(6,733,427)																																																																																																																																			(6,854,918)	121,491
Ending Balance Amount at Sep. 30, 2005	28,026,657																																									$ 27,997																																								35,578,580																																																		(9,479,110)	1,899,190
Ending Balance Share at Sep. 30, 2005																																										2,798,419
Stock issuances													$ 1,000,000	$ 57,600	$ 19,545,000	$ 150,000	$ 1,077,333																																				$ 205	$ 15	$ 5,590	$ 25	$ 208																																					$ 999,795	$ 57,585	$ 19,539,410	$ 149,975	$ 1,077,125
Issuance and sold of Common Stock																																																					20,485	1,500	559,000	2,536	20,838
Stock options exercised, Amount	341,537																																									$ 116																																								341,421
Stock options exercised																																										11,579
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Total	1,369,478																																																																																	1,369,478
Net loss attributable to Arrowhead	(19,961,961)																																																																																																																																			(18,997,209)	(964,752)
Ending Balance Amount at Sep. 30, 2006	31,605,644																																									$ 34,156																																								59,113,369																																																		(28,476,319)	934,438
Ending Balance Share at Sep. 30, 2006																																										3,414,359
Stock issuances																		$ 15,152,215	$ 5,400,000																																							$ 2,849	$ 1,431																																								$ 15,149,366	$ 5,398,569
Issuance and sold of Common Stock																																																										284,945	143,122
Stock options exercised, Amount	434,727																																									$ 186																																								434,541
Stock options exercised																																										18,616
Adjustments to additional paid in capital, reallocation of noncontrolling interest	2,401,394																																																																																	2,401,394
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Total	2,175,544																																																																																	2,175,544
Net loss attributable to Arrowhead	(30,712,947)																																																																																																																																			(29,931,118)	(781,829)
Ending Balance Amount at Sep. 30, 2007	26,456,577																																									$ 38,622																																								84,672,783																																																		(58,407,437)	152,609
Ending Balance Share at Sep. 30, 2007																																										3,861,042
Stock issuances																				$ 6,960,585		$ 136,000	$ 200,000	$ 310,000	$ 250,000	$ 32,700																																		$ 3,867	$ 50	$ 71	$ 105	$ 114	$ 15																																				$ 6,956,718		$ 135,950	$ 199,929	$ 309,895	$ 249,886	$ 32,685
Issuance and sold of Common Stock																																																												386,399	5,000	7,055	10,505	11,416	1,500
Stock options exercised, Amount	290,027																																									$ 106																																								289,921
Stock options exercised																																										10,536
Adjustments to additional paid in capital, reallocation of noncontrolling interest																					$ 1,720,962																																																																																	$ 1,720,962
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Total	3,187,397																																																																																	3,187,397
Net loss attributable to Arrowhead	(27,241,639)																																																																																																																																			(27,089,030)	(152,609)
Ending Balance Amount at Sep. 30, 2008	12,302,609																																									$ 42,950																																								97,756,126																																																		(85,496,467)
Ending Balance Share at Sep. 30, 2008																																										4,293,452
Stock issuances																											$ 1,133,676	$ 1,158,333		$ 2,758,993																																				$ 2,059	$ 2,222	$ 9,197																																								$ 1,131,617	$ 1,156,111		$ 2,749,796
Reclassification of former Unidym mezzanine debt to equity	2,000,000																																																																																	2,000,000
Issuance and sold of Common Stock																																																																		205,839	222,222	919,664
Issuance of preferred stock in subsidiary																																																																																																																$ 300,000															$ (300,000)
Adjustments to additional paid in capital, reallocation of noncontrolling interest	16,297																												$ 2,120,250																																																					16,297																												$ 2,120,250
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Total	2,676,170																																																																																	2,676,170
Amortization of discount on Unidym Series D Preferred Stock																																																																																		163,960																																																		(163,960)
Net loss attributable to Arrowhead	(19,308,392)																																																																																																																																			(19,308,392)
Ending Balance Amount at Sep. 30, 2009	4,857,937																																									$ 56,428																																								110,070,327																																												$ (300,000)						(104,968,819)
Ending Balance Share at Sep. 30, 2009																																										5,641,177
Stock issuances	1,066,050																															$ 3,222,896	$ 3,698,671									$ 2,250																											$ 153	$ 5,083	$ 6,593	$ 1,220										1,063,600																															$ (1,435)	$ 3,217,813	$ 3,692,078	$ (160,667)																	200	$ 1,282	$ 159,447
Issuance and sold of Common Stock																																										225,189																											15,318	508,343	659,299	122,000
Stock options exercised, Amount	7,631																																									$ 7																																								7,624
Stock options exercised																																										688
Divestiture of Unidym	300,000																																																																																	245,345																																																			54,655
Issuance of preferred stock in subsidiary																															$ 300,000																																																																																																	$ 300,000
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Total	1,582,149																																																																																	1,582,149
Net loss attributable to Arrowhead	(6,957,038)																																																																																																																																			(5,774,048)	(1,182,990)
Ending Balance Amount at Sep. 30, 2010	8,078,295																																									$ 71,734																																								119,716,834																																																		(110,742,867)	(967,406)
Ending Balance Share at Sep. 30, 2010																																										7,172,014
Stock issuances	43,279																																		$ 4,643,684							$ 87																															$ 14,574									43,192																																			$ 4,629,110	$ 900,000												$ (900,000)
Issuance and sold of Common Stock																																										8,656																															1,458,917
Stock options exercised, Amount	$ 13,884																																									$ 27																																								13,857
Stock options exercised	2,699																																									2,700
Divestiture of Unidym	$ 254,275																																																																																																																																				254,275
Issuance of preferred stock in subsidiary	1,618,509																																																																																	1,618,509
Adjustments to additional paid in capital, reallocation of noncontrolling interest																																																																																		(849,707)																																																			849,707
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Total	1,404,640																																																																																	1,404,640
Net income (loss) attributable to Arrowhead	(3,128,885)
Net loss attributable to Arrowhead	(3,492,399)																																																																																																																																			(3,128,885)	(363,514)
Ending Balance Amount at Sep. 30, 2011	12,564,168																																									$ 86,422																																								127,476,435																																												(900,000)						(113,871,752)	(226,938)
Ending Balance Share at Sep. 30, 2011																																										8,642,286
Stock issuances	50,406					$ 6,147,830																													$ 425,000	$ 2,247,750	$ 400,000	$ 500,001	$ 500,002	$ 5,796,240	$ 1,015,000	$ 16				$ 9,332																											$ 1,382	$ 6,750	$ 1,000	$ 83	$ 98	$ 2,261	$ 689		$ 1	50,390					$ 6,138,498																														$ 523,618		$ 2,241,000	$ 399,000	$ 499,918	$ 499,904	$ 5,809,979	$ (689)	$ 1,014,999				$ (100,000)		$ (16,000)
Issuance and sold of Common Stock																																										15,511				1,217,159																											138,158	675,000	100,000	83,211	97,831	2,260,869	68,926		1,015
Stock options exercised, Amount	$ 23,833																																	$ 8,000								$ 45																																								23,788																																																					$ 8,000
Stock options exercised	4,883																																									4,583
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Total	$ 1,241,404																																																																																	1,241,404
Fractional shares redeemed in reverse stock split																																										(131)
Net income (loss) attributable to Arrowhead	(21,125,928)
Preferred stock converted to common stock																																										$ 276																																						$ (1)		(275)
Preferred stock converted to common stock, shares																																										275,782																																						(1,015)
Net loss attributable to Arrowhead	(22,110,723)																																																																																																																																			(21,125,928)	(984,795)
Ending Balance Amount at Sep. 30, 2012	$ 8,808,909																																									$ 108,354																																								$ 145,917,968																																												$ (1,016,000)						$ (134,997,680)	$ (1,203,733)
Ending Balance Share at Sep. 30, 2012																																										13,579,185

Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2008	Sep. 30, 2007	Sep. 30, 2006	Sep. 30, 2005	Sep. 30, 2004	Sep. 30, 2003
Issued for Cash at $0.01 Per Unit [Member]
Common stock & warrants issued for cash, price per unit										$ 0.01
Issued for Cash at $10.00 Per Unit [Member]
Common stock & warrants issued for cash, price per unit									$ 10.00	$ 10.00
Issued for Marketable Securities at $10.00 Per Unit [Member]
Common stock & warrants issued for cash, price per unit									10.00
Issued for cash at $15.00 per unit [Member]
Common stock & warrants issued for cash, price per unit									15.00
Issued as a Gift for $10.90 Per Share [Member]
Common stock & warrants issued for cash, price per unit									10.90
Issued as Stock Issuance Cost at $15.00 Per Unit [Member]
Common stock & warrants issued for cash, price per unit									15.00
Exercised at $2.00 Per Share [Member]
Exercise of stock options, price per share									2.00
Exercised at $10.00 Per Share [Member]
Exercise of stock options, price per share								$ 10.00	$ 10.00
Exercised at $15.00 Per Share [Member]
Exercise of stock options, price per share								15.00
Issued to Purchase Insert Therapeutics Share at $39.80 Per Share [Member]
Common stock & warrants issued for cash, price per unit								$ 39.80
Issued at $48.80 Per Share [Member]
Common stock issued, par value per share							$ 48.80
Issued at $38.40 Per Share [Member]
Common stock issued, par value per share							38.40
Issued at $35.00 Per Share [Member]
Common stock issued, par value per share							35.00
Issued at $59.10 Per Share [Member]
Common stock issued, par value per share							59.10
Issued to Purchase Calando Pharmaceuticals Inc at $51.70 Per Share [Member]
Common stock issued, par value per share							$ 51.70
Issued at $57.80 Per Share [Member]
Common stock issued, par value per share						$ 57.80
Issued for Purchase of Carbon Nanotechnologies Inc at $37.70 Per Share [Member]
Common stock issued, par value per share						$ 37.70
Issued at Approximately $18.00 Per Share Net [Member]
Common stock issued, par value per share					$ 18.00
Issued at $27.20 Per Share to Rice University [Member]
Common stock issued, par value per share					27.20
Issued at $28.30 Per Share to Purchase Shares of Unidym Inc [Member]
Common stock issued, par value per share					28.30
Issued at $29.50 Per Share to Purchase MASA Energy LLC [Member]
Common stock issued, par value per share					29.50
Issued at $21.90 Per Share to Unidym for the Acquisition of Nanoconduction [Member]
Common stock issued, par value per share					21.90
Issued at $21.80 Per Share [Member]
Common stock issued, par value per share					$ 21.80
Issued at $5.50 Per Share to Unidym Stockholder in Exchange for Unidym's Shares [Member]
Common stock issued, par value per share				$ 5.50
Issued at $5.20 Per Share to TEL Ventures in Exchange for Unidym's Shares [Member]
Common stock issued, par value per share				5.20
Issued at $3.00 Per Share [Member]
Common stock issued, par value per share				$ 3.00
Issued at $6.30 Per Share [Member]
Common stock issued, par value per share			$ 6.30
Issued at $13.12 Per Share [Member]
Common stock issued, par value per share			$ 13.12
Issued at $3.80 Per Share [Member]
Common stock issued, par value per share	$ 3.80	$ 3.80
Issued at $3.70 Per Share [Member]
Common stock issued, par value per share	3.70
Issued at $4.00 Per Share [Member]
Common stock issued, par value per share	4.00
Issued at $6.23 Per Share [Member]
Common stock issued, par value per share	6.23
Issued at $5.11 Per Share [Member]
Common stock issued, par value per share	5.11
Issued at $2.76 Per Share [Member]
Common stock issued, par value per share	2.76
Preferred Stock Issued @ $1,000 Per Share [Member]
Preferred stock issued, par value per share	$ 1,000

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended		113 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (22,110,723)	$ (3,492,399)	$ (153,653,005)
Net (income) loss attributable to nonconrolling interests	984,795	363,514	18,819,285
Net income (loss) attributable to Arrowhead	(21,125,928)	(3,128,885)	(134,833,720)
(Income) loss from discontinued operations	80	(5,292,609)	42,838,054
Realized and unrealized (gain) loss on investments	58,091	261,218	(762,954)
Charge for bad debt allowance	2,497,300		2,497,300
(Gain) loss from sale of subsidiary			(306,344)
(Gain) loss on purchase of Roche Madison	(1,576,107)		(1,576,107)
Loss on disposal of fixed assets	1,079,377		1,206,465
Stock issued for professional services		193,885	741,632
Change in value of derivatives	(386,892)	(1,133,127)	(3,281,404)
Purchased in-process research and development			15,851,555
Stock-based compensation	1,241,404	1,376,921	13,581,468
Depreciation and amortization	1,748,975	267,978	7,409,286
Amortization (accretion) of note discounts, net	9,390	(7,938)	1,452
Gain on sale of stock in subsidiary			(2,292,800)
Non-cash impairment expense	1,642,775		1,642,775
Equity in (income)loss of unconsolidated affiliates	240,154	163,180	963,407
Noncontrolling interest	(984,795)	(363,514)	(18,819,285)
Changes in operating assets and liabilities:
Receivables	162,855		100,040
Other receivables	(938,179)	(736,253)	(2,543,142)
Prepaid expenses	(338,531)	99,005	(481,099)
Other current assets	(6,853)	18,473	(103,213)
Deposits	(23,747)		(60,542)
Accounts payable	291,876	157,079	498,310
Accrued expenses	186,369	452,843	720,909
Other liabilities	882,296	15,751	1,130,161
NET CASH USED IN OPERATING ACTIVITIES OF CONTINUING OPERATIONS	(15,340,090)	(7,655,993)	(75,877,796)
CASH FLOWS FROM INVESTING ACTIVITIES OF CONTINUING OPERATIONS:
Purchase of property and equipment	(479,710)	(9,674)	(4,045,309)
Proceeds from sale of investments	509,009	1,534,687	3,313,609
Proceeds from sale of fixed assets	290,312		432,687
Cash transferred in acquisition/divestitures	121,033	(1,700,398)	(1,579,365)
Purchase of marketable securities-US Treasury Bills			(18,575,915)
Purchase of MASA Energy, LLC			(250,000)
Minority equity investment			(2,000,000)
Cash paid for interest in Insert			(10,150,000)
Cash obtained from interest in Insert			10,529,594
Proceeds from sale of marketable securities-US Treasury Bills			18,888,265
Proceeds from sale of subsidiaries			359,375
Payment for patents			(303,440)
Restricted cash			50,773
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS	440,644	(175,385)	(3,329,726)
CASH FLOWS FROM FINANCING ACTIVITIES OF CONTINUING OPERATIONS:
Principal payments on capital leases	(196,606)		(196,606)
Proceeds from issuance of Calando debt			2,516,467
Proceeds from issuance of stock in subsidiary	8,000	1,718,932	20,902,100
Proceeds from issuance of common stock and warrants, net	10,958,231	4,507,389	106,253,011
NET CASH PROVIDED BY FINANCING ACTIVITIES OF CONTINUING OPERATIONS	10,769,625	6,226,321	129,474,972
Cash flows from discontinued operations:
Operating cash flows	(280)	2,265,284	(46,003,787)
Investing cash flows			790,625
Financing cash flows			(1,677,000)
Net cash provided by (used in) discontinued operations:	(280)	2,265,284	(46,890,162)
NET INCREASE(DECREASE) IN CASH	(4,130,101)	660,227	3,377,288
CASH AT BEGINNING OF PERIOD	7,507,389	6,847,162
CASH AT END OF PERIOD	3,377,288	7,507,389	3,377,288
Supplementary disclosures:
Interest paid	$ 46,269	105,000	280,688
Taxes paid		$ 742,500	$ 742,500

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Sep. 30, 2012

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Nature of Business and Going Concern

Arrowhead Research Corporation is a clinical stage targeted therapeutics company with development programs in oncology, obesity, and chronic hepatitis B virus infection. Our novel delivery technologies have the potential to enable revolutionary new classes of drugs, such as RNAi interference and peptide drug conjugates, for a broad range of unmet medical needs. Our pipeline of targeted therapeutics are designed to have increased effectiveness through guided delivery and decreased toxicity through reduction of side effects associated with unwanted exposure in healthy cells and tissues.

Liquidity

Arrowhead has historically financed its operations through the sale of securities of Arrowhead and its Subsidiaries. Development activities have required significant capital investment since the Company’s inception and we expect our current portfolio companies to continue to require cash investment in fiscal 2013 and beyond to continue development.

At September 30, 2012, the Company had $3.4 million in cash to fund operations. During the year ended September 30, 2012, the Company’s cash position decreased by $4.1 million. The Company received cash from the issuance of equity of $11.0 million, cash from the sale of its holdings of stock in Wisepower Co. Ltd of $0.5 million, and cash collections from licensing revenue of $0.2 million. The company had cash outflow of $16.0 million related to its continuing operating activities and capital expenditures of $0.5 million.

As a result of the sale of the Company’s subsidiary, Unidym, in January 2011, the Company received $2.5 million in stock of the acquirer, Wisepower Co. Ltd. (“Wisepower”) and a $2.5 million convertible bond from Wisepower, of which approximately $200,000 is owed to a third party who was a minority investor in Unidym. Following the divestiture, through the quarter ended December 31, 2011, the Company liquidated its position in Wisepower stock. The convertible bond has a face value of $2.5 million and can be redeemed for cash on January 17, 2013, and at which time could represent an additional source of liquidity for the company. In September 2011, the Company entered into an equity line facility whereby it has the ability to draw capital up to $15 million, subject to certain provisions, including maintaining a minimum stock price of $2.00 per share. Through September 30, 2012, the Company has drawn $1 million from this facility. In December 2012, the Company sold 1.9 million units at a price of $2.26 per unit in a public offering. Each unit consisted of one share of Common Stock and a warrant to purchase 0.5 share of Common Stock, exercisable at $2.20. Gross proceeds from the offering were $4.3 million, which included a $500,000 promissory note due February 1, 2013.

On October 21, 2011, Arrowhead completed the acquisition of certain RNAi assets from Hoffmann-La Roche Inc. and F. Hoffmann-La Roche Ltd., including intellectual property and a research and development facility in Madison, Wisconsin. At the time of the acquisition, the facility had 41 employees. Due to the costs associated with maintaining and operating the facility, including personnel costs, rent, research and development expenses, and other costs, cash expenses have increased, and it is expected that the Company will incur higher cash expenses during the remainder of 2012 and beyond, relative to periods prior to the acquisition, as the Company accelerates its preclinical and clinical development efforts.

Going Concern

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has experienced negative cash flows from operations since inception and has an accumulated deficit of approximately $135 million. The Company has funded its activities to date almost exclusively from equity financings.

The Company plans to fund its development activities as cash resources allow. However, the company is dependent on additional equity financing and/or the signing of collaboration/partnership arrangements to supply cash for future development. The Company cannot be certain that such funding will be available on acceptable terms or available at all. To the extent that the Company raises additional funds by issuing equity securities, its stockholders may experience significant dilution. If the Company is unable to raise funds when required or on acceptable terms, it may have to delay, scale back, or discontinue the development and/or commercialization of one or more product candidates, or relinquish or otherwise dispose of rights to technologies, product candidates, or products that it would otherwise seek to develop or commercialize itself and possibly cease operations.

In addition to the normal risks associated with a new business venture, there can be no assurance that the Company’s research and development will be successfully completed or that any product will be approved or commercially viable. The Company is subject to risks common to companies in the biotechnology industry including, but not limited to, dependence on collaborative arrangements, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, and compliance with Food and Drug Administration (“FDA”) and other governmental regulations and approval requirements.

These matters raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements were prepared under the assumption that the Company will continue as a going concern and do not include any adjustments that might result from the outcome of that uncertainty.

Although the Company has sources of liquidity, as described above, the Company anticipates that further equity financings, and/or asset sales and license agreements will be necessary to continue to fund operations in the future.

Summary of Significant Accounting Policies

Principles of Consolidation—The consolidated financial statements include the accounts of Arrowhead and its Subsidiaries, Arrowhead Madison, Alvos, Calando, Ablaris, Tego, Agonn, and until its disposition in January 2011, Unidym. Prior to April 2008, Arrowhead’s Subsidiaries included Insert Therapeutics, Inc. (“Insert”), which was merged with Calando in April 2008. The merged entity is majority-owned by Arrowhead and continues to operate under the name of Calando. In January 2011, Arrowhead sold its interests in Unidym to Wisepower, and in December 2009, Tego completed a sale of its assets to Luna Innovations, Inc. Unidym and Tego results are included in the Income (Loss) from Discontinued Operations. Income (Loss) from Discontinued Operations also includes Aonex Technologies, Inc., sold in May 2008, and Nanotechnica, Inc., dissolved in June 2005. All significant intercompany accounts and transactions are eliminated in consolidation, and noncontrolling interests are accounted for in the Company’s financial statements.

Basis of Presentation and 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. Significant estimates made in preparing these financial statements include valuing the stock of the Subsidiaries, assumptions to calculate stock-based compensation expense, allowance for doubtful accounts, deferred tax asset valuation allowance, derivative assets and liabilities, noncontrolling interest and useful lives for depreciable and amortizable assets. Actual results could differ from those estimates. Additionally, certain reclassifications have been made to prior period financial statements to conform to the current period presentation. In the opinion of management, all adjustments, including normal recurring accruals considered necessary for a fair presentation, have been included.

Cash and Cash Equivalents—The Company considers all liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.

Concentration of Credit Risk—The Company maintains checking accounts for Arrowhead and separate accounts for each Subsidiary at any of three 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 institution in which these deposits are held.

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.

Intangible Assets subject to amortization—At September 30, 2012, intangible assets subject to amortization included patents and certain license agreements. 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.

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. Based on early adoption of ASU 2012-02, 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 is 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.

Equity Investments—Arrowhead has a noncontrolling equity investment in Nanotope, a privately held biotechnology company, which is recorded in Other Assets. Historically, this investment was carried at cost less Arrowhead’s proportionate share of Nanotope’s operating loss for the period since investment. Based on the lack of significant progress in Nanotope’s research and development efforts, the investment has been fully reserved and is carried at a net book value of zero. Arrowhead utilizes the equity method of accounting as it owns more than 20% of the voting equity and has the ability to exercise significant influence over this company.

Minority Equity Investments—The Company’s minority equity investment in Leonardo, a privately held biotechnology company, has been recorded in Other Assets, however, an impairment charge has been recorded in 2012, and its net book value at September 30, 2012 is zero. This investment has been accounted for under the cost method of accounting.

Noncontrolling Interests in Majority-Owned Subsidiaries—Operating losses applicable to majority-owned Calando, Ablaris and, prior to its disposal, Unidym have periodically exceeded the noncontrolling interests in the equity capital of either Subsidiary. Such excess losses applicable to the noncontrolling interests have been and are borne by the Company as there is no obligation of the noncontrolling 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 noncontrolling interest’s share of net loss in excess of the noncontrolling interest’s initial investment in accordance with FASB ASC 810-10, which was effective for the Company on October 1, 2009.

When there is a change in the Company’s proportionate share of a development-stage Subsidiary resulting from additional equity transactions in a 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 offering, 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.

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. We 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.

Revenue associated with research and development funding payments under collaborative agreements, is recognized ratably over the relevant periods specified in the agreement, generally the research and development period. 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.

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.

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.

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.

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. We use the Black-Scholes option valuation model to estimate the fair value of our 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. We use historical data among other information to estimate the expected price volatility and the expected forfeiture rate.

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.

Recently Issued Accounting Standards

In July 2012, the FASB issued ASU 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment, which amended the guidance in ASU 2011-08 to simplify the testing of indefinite-lived intangible assets other than goodwill for impairment. ASU 2012-02 becomes effective for annual and interim impairment tests performed for fiscal years beginning on or after September 15, 2012 and earlier adoption is permitted. We adopted this standard in the third quarter of fiscal year 2012. We believe adoption did not have a material effect on our financial statements.

In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-08, Intangibles – Goodwill and Other (Topic 350) – Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If after performing the qualitative assessment an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step goodwill impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step goodwill impairment test. ASU 2011-08 is effective for us in fiscal 2013 and earlier adoption is permitted. The adoption of ASU 2011-08 is not anticipated to have any impact on our financial position, results of operations or cash flows.

In May 2011, the Financial Accounting Standards Board (“FASB”) issued ASU 2011-04, Fair Value Measurement (“ASU 2011-04”), which amended ASC 820, Fair Value Measurements (“ASC 820”), providing a consistent definition and measurement of fair value, as well as similar disclosure requirements between U.S. GAAP and International Financial Reporting Standards. ASU 2011-04 changes certain fair value measurement principles, clarifies the application of existing fair value measurement and expands the disclosure requirements. ASU 2011-04 was effective for us beginning January 1, 2012. The adoption of ASU 2011-04 did not have a material effect on our consolidated financial statements or disclosures.

In June 2010, the FASB issued ASU No. 2010-17, Revenue Recognition—Milestone Method (Topic 605): Milestone Method of Revenue Recognition. This ASU codifies the consensus reached in EITF Issue No. 08-9, “Milestone Method of Revenue Recognition.” The amendments to the Codification provide guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research or development transactions. Consideration that is contingent on achievement of a milestone in its entirety may be recognized as revenue in the period in which the milestone is achieved only if the milestone is judged to meet certain criteria to be considered substantive. Milestones should be considered substantive in their entirety and may not be bifurcated. An arrangement may contain both substantive and nonsubstantive milestones, and each milestone should be evaluated individually to determine if it is substantive. This guidance was adopted effective October 1, 2010. The adoption of this guidance did not have a material impact on our consolidated financial statements.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References + Details

ACQUISITIONS

12 Months Ended

Sep. 30, 2012

ACQUISITIONS

NOTE 2. 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”) 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 901,702 shares of Common Stock (as adjusted for the 1-for-10 reverse stock split on November 17, 2011). Subsequently, as required by the RNAi Purchase Agreement, the Company issued an additional 386,456 shares of Common Stock. The acquisition provides additional technology, particularly related to RNAi delivery, and provided a state-of-the-art lab facility.

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 or its affiliates and 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, including the first regulatory approval of an Existing Candidate in certain jurisdictions and upon certain annual sales milestones for Existing Candidates that may receive regulatory approval. The potential payments range from $2,500,000 to $6,000,000 per milestone. Based on the Company’s estimate of future payments, a net present value of $84,935 was calculated as contingent consideration, and is recorded as a part of other noncurrent liabilities.

The following table summarizes the estimated fair values at the date of acquisition:


Current assets	$	432,709
Property and equipment		7,215,206
Intangible assets		1,174,935
Other noncurrent assets		6,264
Current liabilities		(414,122	)
Noncurrent liabilities		(1,570,072	)
Gain on purchase		(1,576,106	)

Total purchase consideration	$	5,268,814

The purchase consideration was composed of the following:


Promissory note due Roche	$	50,000
Contingent consideration		84,935
Shares issued to Roche		5,133,879

Total purchase consideration	$	5,268,814

We estimated the fair value of the assets and liabilities acquired through various valuation techniques including a market approach and an income approach. Because the net identifiable tangible and intangible assets and liabilities were in excess of the purchase price, a gain on the purchase of $1.6 million was recorded. The most significant assets capitalized were research equipment and certain in-process research and development. We believe that we were able to acquire these assets at a reasonable purchase price and generate a gain on the transaction due in part from the seller’s desire to exit the relatively early stage of the RNAi business, as compared to the seller’s other business operations, as well as the seller’s desire to dispose of certain on-going costs associated with the facility, primarily lease costs and personnel costs, which were synergistic to the Company’s strategy to establish a research facility to advance development efforts for its drug product candidates.

Alvos Therapeutics

On April 5, 2012, the Company entered into a Stock Purchase Agreement to purchase all of the outstanding shares of Alvos Therapeutics, Inc., (“Alvos”), a privately held company that licensed a large platform of proprietary human-derived homing peptides, and the method for their discovery, from MD Anderson Cancer Center. In conjunction with the acquisition, Arrowhead hired one employee from Alvos, and retained one employee on a consulting basis. In exchange for all of the outstanding shares of Alvos, Arrowhead issued an upfront payment of 315,467 shares of Common Stock. The former Alvos stockholders are also eligible to receive additional issuances of stock valued at up to $23.5 million at the time of issuance based on the future achievement of clinical, regulatory and sales milestones. Based on the Company’s estimate of future payments, a net present value of $88,686 was calculated as contingent consideration, and is recorded as a part of other noncurrent liabilities. The Alvos acquisition provided key technology in targeted therapeutics.

The following table summarizes the estimated fair values at the date of acquisition:


Current assets	$	29,332
In-process R&D		2,172,387
Current liabilities		(113,033	)

Total purchase consideration	$	2,088,686

The purchase consideration was comprised solely of shares of Arrowhead Common Stock issued to the former shareholders of Alvos Therapeutics, Inc.


Shares issued		315,457
Price per share	$	6.34

Share consideration	$	2,000,000
Contingent consideration		88,686

Total purchase consideration	$	2,088,686

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

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+ Details

INTANGIBLE ASSETS

12 Months Ended

Sep. 30, 2012

INTANGIBLE ASSETS

NOTE 3. INTANGIBLE ASSETS

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

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

Intangible assets subject to amortization include patents capitalized as part of a business combination as well as license agreements capitalized as part of a business combination from the acquisition of Roche Madison.

The license agreements are being amortized over the estimated life remaining at the time of acquisition which was 4 years. Patents are amortized over a period of three years to twenty years. The weighted average original amortization period is twelve years. Amortization of license agreements and patents is expected to be approximately $300,000 for fiscal years 2013, 2014, and 2015, $250,000 in 2016, $240,000 in 2017 and $280,000 thereafter.

We review amounts capitalized as in-process research and development for impairment at least annually in the fourth quarter, and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. In the event the carrying value of the assets is not expected to be recovered, the assets are written down to their estimated fair values. We continue to test our indefinite-lived IPR&D assets for potential impairment until the projects are completed or abandoned.

The below table provides details on our intangible asset balances:


	Intangible assets not subject to amortization		Intangible assets subject to amortization			Total Intangible assets
Balance at September 30, 2010	$	0	$	1,973,019		$	1,973,019
Amortization		0		(241,808	)		(241,808	)

Balance at September 30, 2011	$	0	$	1,731,211		$	1,731,211
Additions – Madison acquisition		944,935		230,000			1,174,935
Additions – Alvos acquisition		2,172,387		0			2,172,387
Amortization		0		(293,964	)		(293,964	)

Balance at September 30, 2012	$	3,117,322	$	1,667.247		$	4,784,569

INVESTMENT IN SUBSIDIARIES

12 Months Ended

Sep. 30, 2012

INVESTMENT IN SUBSIDIARIES

NOTE 4. INVESTMENT IN SUBSIDIARIES

In addition to 100% ownership interest in Arrowhead Madison, Inc. and Alvos Therapeutics, Inc., Arrowhead also maintains majority ownership in Calando Pharmaceuticals, Ablaris Therapeutics, Inc., and minority investments in Nanotope, Inc. and Leonardo Biosystems, Inc.

Calando Pharmaceuticals, Inc.

Calando is a clinical stage RNAi therapeutics company. On April 17, 2008, Calando merged with and into Insert, with Insert as the surviving company. Prior to the merger, Arrowhead invested an aggregate of $23.2 million in Calando through equity and debt financings. As a condition of the merger, the Preferred Stock of each of Calando and Insert was converted into common stock and the loans were converted to equity. As a result of the merger, shares of Insert common stock were issued to the stockholders of the former Calando, and Insert changed its name to Calando Pharmaceuticals, Inc.

In fiscal 2010, Arrowhead issued 122,000 shares of its Common Stock in exchange for shares of Calando common stock, with several minority stockholders of Calando. In conjunction with this exchange, Arrowhead also issued 26,400 warrants to purchase Arrowhead Common Stock in exchange for warrants to purchase Calando common stock.

In January 2011, Arrowhead invested $9.1 million, through a cash investment of $1.0 million and the conversion of $8.1 million intercompany debt, acquiring newly issued Calando Series B and Series C preferred stock.

As of September 30, 2012, Calando owed to Arrowhead $3.1 million under a series of 8% simple interest notes and advances. It is expected that these loans will either be repaid or converted to equity in the future. The balance of the notes and advances is eliminated in consolidation.

As of September 30, 2012, Arrowhead owned 79% of the outstanding shares of Calando and 76% on a fully diluted basis.

Ablaris Therapeutics, Inc.

Ablaris was formed and began operations in the first quarter of fiscal 2011, based on the license of certain anti-obesity technology developed at the MD Anderson Cancer Center at the University of Texas. During the year ended September 30, 2011, Ablaris raised $2.9 million in cash, of which $1.3 million was invested by Arrowhead and $1.6 million was invested by outside investors, through the issuance of Ablaris Series A Preferred stock.

As of September 30, 2012, Arrowhead owned 64% of the outstanding shares of Ablaris and 64% on a fully diluted basis.

Nanotope, Inc.

Nanotope’s primary areas of focus include development of treatments for spinal cord injuries, cartilage regeneration and wound healing. As of September 30, 2012, Arrowhead owned 23% of the outstanding shares of Nanotope, and 19% on a fully diluted basis. Arrowhead accounts for its investment in Nanotope using the equity method of accounting.

During the quarter ended June 30, 2012, Nanotope closed its R&D operations at its facility in Skokie, Illinois, and moved R&D operations to the laboratories of Northwestern University under the direction of Dr. Samuel Stupp, the Company’s founder. Development work will be performed by personnel in Dr. Stupp’s lab, and Nanotope terminated the employment of its staff. The company’s research equipment was sold to Arrowhead, to be utilized at its research facility in Madison, Wisconsin. Certain components of Nanotope’s intellectual property portfolio continue to be maintained at Arrowhead’s expense, potentially allowing Nanotope to benefit from successful developments. These circumstances required Arrowhead to examine its investment in Nanotope, as well as its receivable from Nanotope, for impairment. Upon review, it was determined that the remaining book value of its investment exceeded its fair value as determined by discounted future cash flows. As a result, upon completion of the assessment, management recorded a non-cash impairment charge of $1.4 million during the year ended September 30, 2012 to reduce the carrying value of the investment to $0. Additionally, the company recorded a full reserve against its receivable from Nanotope in the amount of the $1.9 million.

Summarized financial information for Nanotope, Inc. is as follows:


	September 30, 2012			September 30, 2011
Current assets	$	31,000		$	21,000
Non-current assets		0			85,000
Liabilities		2,070,000			1,255,000
Equity		(2,039,000	)		(1,149,000	)


	For the year ended September 30, 2012			For the year ended September 30, 2011
Revenue	$	0		$	515,000
Operating expenses		808,000			1,161,000
Net Loss	$	(890,000	)	$	(709,000	)

	For the year ended September 30, 2012			For the year ended September 30, 2011
Cash flows used in operating activities	$	(831,000	)	$	(705,000	)
Cash flows provided by (used in) investing activities		61,000			(31,000	)
Cash flows provided by financing activities		784,000			746,000

Leonardo Biosystems, Inc.

Leonardo is developing a drug-delivery platform technology based on novel methods of designing porous silicon microparticles that selectively accumulate in tumor vasculature. Arrowhead accounts for its investment in Leonardo using the cost method of accounting. As of September 30, 2012, Leonardo owed to Arrowhead $547,000, included in other receivables. Although it is expected to be repaid or converted to equity, the Company has provided a full reserve against the receivable from Leonardo. As of September 30, 2012, Arrowhead’s ownership interest in Leonardo was 3%.

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

+ References + Details

DISCONTINUED OPERATIONS

12 Months Ended

Sep. 30, 2012

DISCONTINUED OPERATIONS

NOTE 5. DISCONTINUED OPERATIONS

Unidym, Inc.

Founded by Arrowhead in 2005, Unidym is developing electronic applications of carbon nanotubes. Arrowhead sold its ownership interest in Unidym to Wisepower, a Korean corporation, in January 2011. The consideration included $2.5 million in Wisepower stock, a convertible bond with a face value of $2.5 million, a percentage of certain revenue streams, as well as contingent payments up to $140 million based on revenue milestones over a ten-year period. The consideration received in the form of Wisepower stock has been liquidated. The consideration received in the form of a bond is currently held as a current asset. The bond which bears no interest, became convertible on January 17, 2012, is redeemable in cash on January 17, 2013, and becomes due on January 17, 2014.

In conjunction with the disposition of Unidym, the gain on the sale and the results of historical operations are recorded as discontinued operations in the Company’s Statements of Operations. Additionally, the cash flows from Unidym are reflected separately as cash flows from discontinued operations in the Company’s Consolidated Statement of Cash Flows. Any future cash flows as discussed above will also be reflected as a part of cash flows from discontinued operations.

Tego Biosciences, Inc.

On April 20, 2007, Tego, a wholly-owned subsidiary of Arrowhead, acquired the assets of C Sixty, Inc., a Texas-based company developing protective products based on the anti-oxidant properties of fullerenes.

In December 2009, Tego completed the sale of all of its intellectual property assets to Luna Innovations, Inc. The consideration included an upfront purchase price of $350,000 and reimbursements of patent and license expenses of $80,000, as well as contingent payments based on milestones and royalties for each fullerene product developed by Luna and covered by Tego intellectual property. Due to the sale of substantially all of Tego’s assets, the operations of Tego ceased and the gain on the sale and the results of historical operations are recorded as discontinued operation in the Company’s Statements of Operations. Additionally, the cash flows from Tego are reflected separately as cash flows from discontinued operations. Any future cash flows as discussed above will be reflected as a part of cash flows from discontinued operations in the Company’s Consolidated Statements of Cash Flows.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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+ Details

NOTES PAYABLE

12 Months Ended

Sep. 30, 2012

NOTES PAYABLE

NOTE 6. NOTES PAYABLE

On November 26, 2008, Calando entered into Unsecured Convertible Promissory Note Agreements (“Notes”) for $2.5 million with accredited investors and Arrowhead, which invested $200,000 in the Notes offering. Arrowhead subsequently invested an additional $600,000 in the same offering. Except for one Note in the principal amount of $500,000, all Notes and accrued interest were converted into a total of 2,950 shares of Calando Series A Preferred Stock on June 23, 2009. The remaining Note had a 10% interest rate, matured on November 26, 2010, and was renegotiated and extended until November 26, 2013. The terms of the new note include a 10% interest rate and require two times principal payment upon certain events as defined in the note and at maturity. At September 30, 2012, The Note is reflected on the balance sheet at the maturity amount of $1,000,000 less a discount of $210,579.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

STOCKHOLDERS' EQUITY

12 Months Ended

Sep. 30, 2012

STOCKHOLDERS' EQUITY

NOTE 7. STOCKHOLDERS’ EQUITY

At September 30, 2012, the Company had a total of 150,000,000 shares of capital stock authorized for issuance, consisting of 145,000,000 shares of Common Stock, par value $0.001, and 5,000,000 shares of Preferred Stock, par value $0.001.

At September 30, 2012, 13,579,184 shares of Common Stock were outstanding; no shares of Preferred Stock were outstanding. At September 30, 2012, 153,200 shares and 1,965,860 shares were reserved for issuance upon exercise of options granted under Arrowhead’s 2000 Stock Option Plan and 2004 Equity Incentive Plan, respectively.

On September 30, 2011, the Company sold 1,458,917 shares of Common Stock at a price of $3.80 per share. Cash proceeds received in fiscal 2011 were $4.5 million; the balance of $1 million is expected to be received in 2012. On October 4, 2011, the Company completed a second closing of the offering in which the Company sold 138,158 shares of Common Stock at a price of $3.80 per share. Cash proceeds were $525,000.

On October 20, 2011, the Company and Lincoln Park Capital Fund, LLC, an Illinois limited liability company (“LPC”) entered into a $15 million purchase agreement (the “Purchase Agreement”), together with a registration rights agreement, whereby LPC agreed to purchase up to $15 million of Common Stock, subject to certain limitations, from time to time during the three-year term of the Purchase Agreement. Additionally, the Company filed a registration statement with the U.S. Securities & Exchange Commission covering the resale of the shares that may be issued to LPC under the Purchase Agreement. On January 30, 2012, the SEC declared the registration statement effective for the resale of such shares. The Company has the right, in its sole discretion, over a 36-month period to sell up to $15 million of Common Stock (subject to certain limitations) to LPC, depending on certain conditions as set forth in the Purchase Agreement. As of September 30, 2012, the Company had drawn $1 million from the facility.

On October 21, 2011 and October 24, 2011, the Company entered into Subscription Agreements with certain accredited investors (the “Series A Purchasers”), pursuant to which the Company issued and sold an aggregate of 1,015 shares of Series A Preferred Convertible Stock, $0.001 par value per share, at a purchase price of $1,000 per share. The aggregate purchase price paid for the shares of Series A Preferred was $1,015,000. On February 16, 2012, upon approval by the Company’s shareholders, 1,015 shares of Arrowhead Series A Preferred Convertible Stock, $0.001 par value per share, were converted to 275,782 shares of Common Stock.

On October 21, 2011, the Company entered into a Subscription Agreement with an accredited investor, pursuant to which the Company issued and sold an aggregate of 675,000 shares of Common Stock, $0.001 par value per share, at a purchase price of $3.70 per share. The aggregate purchase price paid by the purchaser for the shares of Common Stock is $2,497,500.

On August 10, 2012 the Company sold 2,260,869 units at a price of $2.76 per unit. Each unit consisted of one share of common stock and a warrant to purchase 0.75 shares of common stock at an exercise price of $3.25. Gross proceeds from the offering were $6.2 million excluding offering fees and expenses.

As of November 17, 2011, the Company effected a 1 for 10 reverse stock split. As a result of the reverse stock split, each ten shares of the Company’s Common Stock issued and outstanding immediately prior to the reverse stock split was combined into one share of Common Stock. Also, as a result of the reverse stock split, the per share exercise price, and the number of shares of Common Stock underlying Company stock options, warrants, and any Common Stock based equity grants outstanding immediately prior to the reverse stock split was proportionally adjusted, based on the one-for-ten split ratio, in accordance with the terms of such options, warrants or other Common Stock based equity grants as the case may be. No fractional shares of Common Stock were issued in connection with the reverse split. Stockholders received a cash payment in lieu of any fractional shares. All share and per share amounts in these financial statements have been retrospectively adjusted to reflect the reverse stock split.

The following table summarizes information about warrants outstanding at September 30, 2012:


Exercise prices	Number of Warrants		Remaining Life in Years
$70.60		94,897		4.6
$20.00		386,400		0.9
$5.00		1,155,023		2.2
$5.09		461,024		2.2
$1.38		322,150		3.2
$4.16		1,000		4.2
$3.25		1,695,654		3.9

Total warrants outstanding		4,116,147

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

LEASES

12 Months Ended

Sep. 30, 2012

LEASES

NOTE 8. LEASES

In May 2012, the Company signed a lease for new office space for its corporate headquarters, and moved into the new location in August 2012. The lease has a five-year term; rental costs are approximately $13,000 per month, increasing 3% annually.

The Company’s research facility in Madison, Wisconsin is leased through February 28, 2019. Monthly rental expense is approximately $22,000. Other monthly rental expenses include common area maintenance and real estate taxes totaling approximately $13,000 per month. Utilities costs are approximately $16,000 per month. Including monthly payments recorded under a capital lease of approximately $21,000, total monthly costs are approximately $72,000 per month.

Facility and equipment rent expense, related to continuing operations, for the year ended September 30, 2012 and 2011 was $480,000 and $162,000, respectively. From inception to date, rent expense was $4,125,485. Rent expense related to Unidym, until its disposal in January 2011, is included as a part of income/loss from discontinued operations.

As of September 30, 2012, future minimum lease payments due in fiscal years under capitalized leases are as follows:


2013	$	256,846
2014		256,846
2015		256,846
2016		256,846
2017		256,846
2018 and thereafter		363,864
Less interest		(150,835	)

Principal		1,497,259
Less current portion		(214,801	)

Noncurrent portion	$	1,282,458

As of September 30, 2012, future minimum lease payments due in fiscal years under operating leases are as follows:


2013	$	356,672
2014		434,229
2015		445,921
2016		457,961
2017		470,154
2018 and thereafter		484,785

Total	$	2,649,723

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References + Details

STOCK-BASED COMPENSATION

12 Months Ended

Sep. 30, 2012

STOCK-BASED COMPENSATION

NOTE 9. STOCK-BASED COMPENSATION

Arrowhead has two plans that provide for equity-based compensation. Under the 2000 Stock Option Plan, 153,200 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 1,965,860 shares for the grant of stock options, stock appreciation rights, restricted stock awards and performance unit/share awards by the Board of Directors to employees, consultants and others. As of September 30, 2012, there were options granted and outstanding to purchase 153,200 and 1,767,894 shares of Common Stock under the 2000 Stock Option Plan and the 2004 Equity Incentive Plan, respectively. During the year ended September 30, 2012, 988,300 options were granted under the 2004 Equity Incentive Plan, and 251,200 options were granted outside of Equity Incentive plans as inducement stock options to new employees, hired in conjunction with the Company’s acquisition of its Madison research facility in October 2011. All share and per share data in this footnote has been adjusted to reflect the 1 for 10 reverse stock split effected on November 17, 2011.

The following tables summarize information about stock options:


	Number of Options Outstanding			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Balance At September 30, 2010		812,334		$	10.62
Granted		20,000			5.86
Cancelled		(100,539	)		21.32
Exercised		(2,699	)		5.10


	Number of Options Outstanding			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Balance At September 30, 2011		729,096			9.03
Granted		1,229,500			4.40
Cancelled		(42,919	)		11.77
Exercised		(4,883	)		5.20

Balance At September 30, 2012		1,910,794		$	6.01		8.2 years	$	0

Exercisable At September 30, 2012		811,214		$	7.96		6.6 years	$	0

Stock-based compensation expense for the year ended September 30, 2012 and 2011 was $1,241,404 and $1,376,921, respectively. For the years ended September 30, 2012 and 2011, $0 and $27,519, respectively, of this expense is included in discontinued operations. 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 fair value of the options granted by Arrowhead for the years ended September 30, 2012 and 2011 is estimated at $4,091,117 and $93,004, respectively. The aggregate fair value of options granted by Calando during the years ended September 30, 2012 and 2011 is estimated at $33,690 and $33,870, respectively.

The intrinsic value of the options exercised during the years ended September 30, 2012 and 2011 was $0 and $3,666, respectively.

As of September 30, 2012, the pre-tax compensation expense for all unvested stock options at Arrowhead in the amount of approximately $3,738,217 will be recognized in our results of operations over a weighted average period of 3.1 years. As of September 30, 2012, the pre-tax compensation expense for all unvested stock options at Calando in the amount of approximately $63,250 will be recognized in our results of operations over a weighted average period of 2.6 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 our 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:


	Year ended September 30,
	2012	2011
Dividend yield	—	—
Risk-free interest rate	0.9% to 1.7%	1.11% to 2.90%
Volatility	90% -100%	100%
Expected life (in years)	5.5 to 6.25	5.5 to 6.25
Weighted average grant date fair value per share of options granted	$3.32	$4.70

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.

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

+ References + Details

FAIR VALUE MEASUREMENTS & DERIVATIVE INSTRUMENTS

12 Months Ended

Sep. 30, 2012

FAIR VALUE MEASUREMENTS & DERIVATIVE INSTRUMENTS

NOTE 10. FAIR VALUE MEASUREMENTS & DERIVATIVE INSTRUMENTS

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 September 30, 2012 and September 30, 2011 for assets and liabilities measured at fair value on a recurring basis:

September 30, 2012:


	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	3,377,288	$	—	$	—	$	3,377,288
Marketable securities	$	106,500	$	—	$	—	$	106,500
Derivative assets	$	—	$	—	$	250,250	$	250,250
Derivative liabilities	$	—	$	—	$	647,213	$	647,213
Contingent consideration	$	—	$	—	$	173,621	$	173,621

September 30, 2011:

	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	7,507,389	$	—	$	—	$	7,507,389
Marketable securities	$	634,585	$	—	$	—	$	634,585
Derivative assets	$	—	$	—	$	161,125	$	161,125
Derivative liabilities	$	—	$	—	$	944,980	$	944,980
Contingent consideration	$	—	$	—	$	—	$	—

As part of the sale of 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 nonoperating gain/loss as change in value of derivatives in Company’s Consolidated Statement of Operations. A portion of the bond is owed to a third party, as such the company records a derivative asset for the entire conversion feature and records a derivative liability for the portion related to the third party. The original fair value of the derivative relating to the third party was $26,310; the fair value at September 30, 2011 was $6,854, and the fair value at September 30, 2012 was $10,645. The gain from the change in value of the derivative asset, net of the derivative liability, for the year ended September 30, 2012 was $85,334, and is reflected in the change in value of derivatives in the Company’s consolidated statement of operations.

During the year ended September 30, 2012, the Company recorded a gain from the change in fair value of the derivative asset of $89,125. The assumptions used in valuing the derivative asset as of September 30, 2012 and 2011 were as follows:


	September 30, 2012	September 30, 2011
Risk free interest rate	0.23%	0.4%
Expected life	1.3 Years	2.3 Years
Dividend yield	none	none
Volatility	72%	72%

The following is a reconciliation of the derivative asset for the years ended September 30, 2012 and 2011:


Value at September 30, 2010	$	—
Receipt of instruments		618,500
Change in value		(457,375	)

Value at October 1, 2011		161,125
Receipt of instruments		—
Increase in value		89,125
Net settlements		—

Value at September 30, 2012	$	250,250

As part of the equity financing on June 17, 2010, Arrowhead issued warrants to acquire up to 329,649 shares of Common Stock (the “Warrants”) which contain a mechanism to adjust the strike price upon the issuance of certain dilutive equity securities. If during the term of the Warrants, the Company issues Common Stock at a price lower than the exercise price of the Warrants, the exercise price of the Warrants would be reduced to the amount equal to the issuance price of the Common Stock. As a result of this feature, the 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 nonoperating gain or loss in the Company’s consolidated statement of operations. During the year ended September 30, 2012, the Company recorded a non-cash loss from the change in fair value of the derivative liability of $281,038. The assumptions used in valuing the derivative liability as of September 30, 2012 and 2011 were as follows:


	September 30, 2012	September 30, 2011
Risk free interest rate	0.31%	0.9%
Expected life	3.2 Years	4.2 Years
Dividend yield	none	none
Volatility	100%	100%

The following is a reconciliation of the derivative liability related to these warrants for the years ended September 30, 2012 and 2011:


Value at September 30, 2010	$	2,408,522
Receipt of instruments		—
Change in value		(1,501,289	)

Value at September 30, 2011	$	907,233
Receipt of instruments		—
Change in value		(281,038	)
Net settlements		—

Value at September 30, 2012	$	626,195

In conjunction with the financing of Ablaris during the year ended September 30, 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 during the year ended September 30, 2011, and remain outstanding at September 30, 2012. 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 nonoperating gain or loss in the Company’s Consolidated Statement of Operations. During the year ended September 30, 2012, the Company recorded a non-cash loss from the change in fair value of the derivative liability of $20,520. The assumptions used in valuing the derivative liability as of September 30, 2012 and 2011 were as follows:


	September 30, 2012	September 30, 2011
Risk free interest rate	0.62%	1.3%
Expected life	5.3 Years	6.3 Years
Dividend yield	none	none
Volatility	100%	100%

The following is a reconciliation of the derivative liability related to these exchange rights for the years ended September 30, 2012 and 2011:


Value at September 30, 2010	$	—
Issuance of instruments		100,650
Change in value		(69,758	)

Value at September 30, 2011	$	30,892
Issuance of instruments		—
Change in value		(20,520	)
Net settlements		—

Value at September 30, 2012	$	10,372

During the year ended September 30, 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 our 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 our own experience. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. Significant 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 in our consolidated statement of operations. There were no changes in contingent consideration fair value as of September 30, 2012.


Value at September 30, 2011	$	—
Purchase price contingent consideration		173,621
Contingent consideration payments		—
Change in fair value of contingent consideration		—

Value at September 30, 2012	$	173,621

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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
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-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

INCOME TAXES

12 Months Ended

Sep. 30, 2012

INCOME TAXES

NOTE 11. INCOME TAXES

The Company utilizes the guidance issued by the FASB for accounting for income taxes which requires the recognition of deferred 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 year-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 tax assets to the amount expected to be realized. The provision for income taxes represents the tax payable for the period and the change during the period in deferred tax assets and liabilities.

For the years ended September 30, 2012 and 2011, the Company had consolidated net book losses of $22.4 million and $3.5 million, respectively. The losses result in a deferred income tax benefit which is offset by a deferred tax provision for the valuation allowance for a net deferred provision of zero. Since the Company is a development stage company, management has provided a 100% valuation allowance against its deferred tax assets until such time as management believes that its projections of future profits as well as expected future tax rates make the realization of these deferred tax assets more-likely-than-not. Significant judgment is required in the evaluation of deferred tax benefits and differences in future results from our estimates could result in material differences in the realization of these assets.

As of September 30, 2012, the Company has available gross federal net operating loss (NOL) carry forwards of $107.2 million and gross state NOL carry forwards of $75.9 million which expire at various dates through 2032.

As of September 30, 2012, the deferred tax assets were $40.9 million. The Company has recorded a full valuation allowance of $40.9 million related to federal and state net operating loss carry forwards. The Company has performed an assessment of positive and negative evidence regarding the realization of the net deferred tax asset in accordance with FASB ASC 740-10, “Accounting for Income Taxes.” This assessment included the evaluation of scheduled reversals of deferred tax liabilities, the availability of carry forwards and estimates of projected future taxable income.

The Company has adopted guidance issued by the FASB that clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold of more likely than not and a measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In making this assessment, a company must determine whether it is more likely than not that a tax position will be sustained upon examination, based solely on the technical merits of the position and must assume that the tax position will be examined by taxing authorities. Our policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. Interest and penalties totaled $0 for the years ended September 30, 2012 and 2011, respectively, and $0 for the period from May 7, 2003 (date of inception) through September 30, 2012. The Company files income tax returns with the Internal Revenue Service (“IRS”), the state of California and certain other taxing jurisdictions. For jurisdictions in which tax filings are prepared, the Company is no longer subject to income tax examinations by state tax authorities for years through fiscal 2007, and by the IRS for the years through fiscal 2008. Our review of prior year tax positions using the criteria and provisions presented by the FASB did not result in a material impact on the Company’s financial position or results of operations.

The provision for income taxes differs from the federal statutory rate due to state income taxes and changes in the valuation allowance for deferred income tax assets.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

+ Details

RELATED PARTY TRANSACTIONS

12 Months Ended

Sep. 30, 2012

RELATED PARTY TRANSACTIONS

NOTE 12. RELATED PARTY TRANSACTIONS

Christopher Anzalone, Arrowhead’s President and CEO, owns 1,395,900 shares of Nanotope, Inc. common stock or approximately 14.2% of Nanotope’s outstanding voting securities. Dr. Anzalone does not hold options, warrants or any other rights to acquire securities of Nanotope. Dr. Anzalone has the right to appoint a representative to the board of directors of Nanotope. Dr. Anzalone currently serves on the Nanotope board in a seat reserved for Nanotope’s CEO, and another individual holds the seat designated by Dr. Anzalone. Dr. Anzalone has served as President and Chief Executive Officer of Nanotope since its formation and continues to serve in these capacities. Dr. Anzalone has not received any compensation for his work on behalf of Nanotope since joining the Company on December 1, 2007. Dr. Anzalone has also waived his right to any unpaid compensation accrued for work done on behalf of Nanotope before he joined the Company.

In August 2010, the Company retained Mr. Vincent Anzalone, the brother of Arrowhead’s Chief Executive Officer, as a consultant for the Company, focusing on business development and market analysis, with a monthly remuneration of $10,000 per month. Mr. Vincent Anzalone was paid $120,000 during the fiscal years ended September 30, 2012, and 2011.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Subparagraph (SX 210.4-08.(k))
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph b
-Article 3A

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
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-Paragraph k
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

EMPLOYEE BENEFIT PLANS

12 Months Ended

Sep. 30, 2012

EMPLOYEE BENEFIT PLANS

NOTE 13. EMPLOYEE BENEFIT PLANS

In January 2005, the Company began sponsoring a defined contribution 401(k) retirement savings plan covering substantially all of its employees. The Plan was administered under the “safe harbor” provision of ERISA. Under the terms of the plan, an eligible employee may elect to contribute a portion of their salary on a pre-tax basis, subject to federal statutory limitations. The plan allowed for a discretionary match in an amount up to 100% of each participant’s first 3% of compensation contributed plus 50% of each participant’s next 2% of compensation contributed.

For the years ended September 30, 2012 and 2011, we recorded expenses under these plans of approximately $162,000 and $43,000, respectively and $616,000 since inception of the Company.

In addition to the employee benefit plans described above, the Company participates in certain customary employee benefits plans, including those which provide health and life insurance benefits to employees.

SUBSEQUENT EVENTS

12 Months Ended

Sep. 30, 2012

SUBSEQUENT EVENTS

NOTE 14. SUBSEQUENT EVENTS

In December 2012, the Company sold 1.9 million units at a price of $2.26 per unit in a public offering. Each unit consisted of one share of Common Stock and a warrant to purchase 0.5 share of Common Stock, exercisable at $2.20. Gross proceeds from the offering were $4.3 million, which included a $500,000 promissory note due February 1, 2013. Commissions and other offering expenses are expected to be approximately $300,000.

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2012
Nature of Business and Going Concern	Nature of Business and Going Concern Arrowhead Research Corporation is a clinical stage targeted therapeutics company with development programs in oncology, obesity, and chronic hepatitis B virus infection. Our novel delivery technologies have the potential to enable revolutionary new classes of drugs, such as RNAi interference and peptide drug conjugates, for a broad range of unmet medical needs. Our pipeline of targeted therapeutics are designed to have increased effectiveness through guided delivery and decreased toxicity through reduction of side effects associated with unwanted exposure in healthy cells and tissues.
Liquidity	Liquidity Arrowhead has historically financed its operations through the sale of securities of Arrowhead and its Subsidiaries. Development activities have required significant capital investment since the Company’s inception and we expect our current portfolio companies to continue to require cash investment in fiscal 2013 and beyond to continue development. At September 30, 2012, the Company had $3.4 million in cash to fund operations. During the year ended September 30, 2012, the Company’s cash position decreased by $4.1 million. The Company received cash from the issuance of equity of $11.0 million, cash from the sale of its holdings of stock in Wisepower Co. Ltd of $0.5 million, and cash collections from licensing revenue of $0.2 million. The company had cash outflow of $16.0 million related to its continuing operating activities and capital expenditures of $0.5 million. As a result of the sale of the Company’s subsidiary, Unidym, in January 2011, the Company received $2.5 million in stock of the acquirer, Wisepower Co. Ltd. (“Wisepower”) and a $2.5 million convertible bond from Wisepower, of which approximately $200,000 is owed to a third party who was a minority investor in Unidym. Following the divestiture, through the quarter ended December 31, 2011, the Company liquidated its position in Wisepower stock. The convertible bond has a face value of $2.5 million and can be redeemed for cash on January 17, 2013, and at which time could represent an additional source of liquidity for the company. In September 2011, the Company entered into an equity line facility whereby it has the ability to draw capital up to $15 million, subject to certain provisions, including maintaining a minimum stock price of $2.00 per share. Through September 30, 2012, the Company has drawn $1 million from this facility. In December 2012, the Company sold 1.9 million units at a price of $2.26 per unit in a public offering. Each unit consisted of one share of Common Stock and a warrant to purchase 0.5 share of Common Stock, exercisable at $2.20. Gross proceeds from the offering were $4.3 million, which included a $500,000 promissory note due February 1, 2013. On October 21, 2011, Arrowhead completed the acquisition of certain RNAi assets from Hoffmann-La Roche Inc. and F. Hoffmann-La Roche Ltd., including intellectual property and a research and development facility in Madison, Wisconsin. At the time of the acquisition, the facility had 41 employees. Due to the costs associated with maintaining and operating the facility, including personnel costs, rent, research and development expenses, and other costs, cash expenses have increased, and it is expected that the Company will incur higher cash expenses during the remainder of 2012 and beyond, relative to periods prior to the acquisition, as the Company accelerates its preclinical and clinical development efforts.
Going Concern	Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has experienced negative cash flows from operations since inception and has an accumulated deficit of approximately $135 million. The Company has funded its activities to date almost exclusively from equity financings. The Company plans to fund its development activities as cash resources allow. However, the company is dependent on additional equity financing and/or the signing of collaboration/partnership arrangements to supply cash for future development. The Company cannot be certain that such funding will be available on acceptable terms or available at all. To the extent that the Company raises additional funds by issuing equity securities, its stockholders may experience significant dilution. If the Company is unable to raise funds when required or on acceptable terms, it may have to delay, scale back, or discontinue the development and/or commercialization of one or more product candidates, or relinquish or otherwise dispose of rights to technologies, product candidates, or products that it would otherwise seek to develop or commercialize itself and possibly cease operations. In addition to the normal risks associated with a new business venture, there can be no assurance that the Company’s research and development will be successfully completed or that any product will be approved or commercially viable. The Company is subject to risks common to companies in the biotechnology industry including, but not limited to, dependence on collaborative arrangements, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, and compliance with Food and Drug Administration (“FDA”) and other governmental regulations and approval requirements. These matters raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements were prepared under the assumption that the Company will continue as a going concern and do not include any adjustments that might result from the outcome of that uncertainty. Although the Company has sources of liquidity, as described above, the Company anticipates that further equity financings, and/or asset sales and license agreements will be necessary to continue to fund operations in the future.
Principles of Consolidation	Principles of Consolidation—The consolidated financial statements include the accounts of Arrowhead and its Subsidiaries, Arrowhead Madison, Alvos, Calando, Ablaris, Tego, Agonn, and until its disposition in January 2011, Unidym. Prior to April 2008, Arrowhead’s Subsidiaries included Insert Therapeutics, Inc. (“Insert”), which was merged with Calando in April 2008. The merged entity is majority-owned by Arrowhead and continues to operate under the name of Calando. In January 2011, Arrowhead sold its interests in Unidym to Wisepower, and in December 2009, Tego completed a sale of its assets to Luna Innovations, Inc. Unidym and Tego results are included in the Income (Loss) from Discontinued Operations. Income (Loss) from Discontinued Operations also includes Aonex Technologies, Inc., sold in May 2008, and Nanotechnica, Inc., dissolved in June 2005. All significant intercompany accounts and transactions are eliminated in consolidation, and noncontrolling interests are accounted for in the Company’s financial statements.
Basis of Presentation and Use of Estimates	Basis of Presentation and 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. Significant estimates made in preparing these financial statements include valuing the stock of the Subsidiaries, assumptions to calculate stock-based compensation expense, allowance for doubtful accounts, deferred tax asset valuation allowance, derivative assets and liabilities, noncontrolling interest and useful lives for depreciable and amortizable assets. Actual results could differ from those estimates. Additionally, certain reclassifications have been made to prior period financial statements to conform to the current period presentation. In the opinion of management, all adjustments, including normal recurring accruals considered necessary for a fair presentation, have been included.
Cash and Cash Equivalents	Cash and Cash Equivalents—The Company considers all liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.
Concentration of Credit Risk	Concentration of Credit Risk—The Company maintains checking accounts for Arrowhead and separate accounts for each Subsidiary at any of three 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 institution in which these deposits are held.
Property and Equipment	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.
Intangible Assets subject to amortization	Intangible Assets subject to amortization—At September 30, 2012, intangible assets subject to amortization included patents and certain license agreements. 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.
In-Process Research & Development (IPR&D)	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. Based on early adoption of ASU 2012-02, 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 is 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.
Equity Investments	Equity Investments—Arrowhead has a noncontrolling equity investment in Nanotope, a privately held biotechnology company, which is recorded in Other Assets. Historically, this investment was carried at cost less Arrowhead’s proportionate share of Nanotope’s operating loss for the period since investment. Based on the lack of significant progress in Nanotope’s research and development efforts, the investment has been fully reserved and is carried at a net book value of zero. Arrowhead utilizes the equity method of accounting as it owns more than 20% of the voting equity and has the ability to exercise significant influence over this company.
Minority Equity Investments	Minority Equity Investments—The Company’s minority equity investment in Leonardo, a privately held biotechnology company, has been recorded in Other Assets, however, an impairment charge has been recorded in 2012, and its net book value at September 30, 2012 is zero. This investment has been accounted for under the cost method of accounting.
Noncontrolling Interests in Majority-Owned Subsidiaries	Noncontrolling Interests in Majority-Owned Subsidiaries—Operating losses applicable to majority-owned Calando, Ablaris and, prior to its disposal, Unidym have periodically exceeded the noncontrolling interests in the equity capital of either Subsidiary. Such excess losses applicable to the noncontrolling interests have been and are borne by the Company as there is no obligation of the noncontrolling 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 noncontrolling interest’s share of net loss in excess of the noncontrolling interest’s initial investment in accordance with FASB ASC 810-10, which was effective for the Company on October 1, 2009. When there is a change in the Company’s proportionate share of a development-stage Subsidiary resulting from additional equity transactions in a 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 offering, 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.
Revenue Recognition	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. We 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. Revenue associated with research and development funding payments under collaborative agreements, is recognized ratably over the relevant periods specified in the agreement, generally the research and development period. 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.
Allowance for Doubtful Accounts	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.
Research and Development	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.
Earnings (Loss) per Share	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.
Stock-Based Compensation	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. We use the Black-Scholes option valuation model to estimate the fair value of our 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. We use historical data among other information to estimate the expected price volatility and the expected forfeiture rate.
Income Taxes	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.

ACQUISITIONS (Tables)

12 Months Ended

Sep. 30, 2012

Roche Madison Inc. [Member]

Summary of Estimated Fair Values at Date of Acquisition

The following table summarizes the estimated fair values at the date of acquisition:


Current assets	$	432,709
Property and equipment		7,215,206
Intangible assets		1,174,935
Other noncurrent assets		6,264
Current liabilities		(414,122	)
Noncurrent liabilities		(1,570,072	)
Gain on purchase		(1,576,106	)

Total purchase consideration	$	5,268,814

Purchase Consideration

The purchase consideration was composed of the following:


Promissory note due Roche	$	50,000
Contingent consideration		84,935
Shares issued to Roche		5,133,879

Total purchase consideration	$	5,268,814

Alvos acquisition [Member]

Summary of Estimated Fair Values at Date of Acquisition

The following table summarizes the estimated fair values at the date of acquisition:


Current assets	$	29,332
In-process R&D		2,172,387
Current liabilities		(113,033	)

Total purchase consideration	$	2,088,686

Purchase Consideration

The purchase consideration was comprised solely of shares of Arrowhead Common Stock issued to the former shareholders of Alvos Therapeutics, Inc.


Shares issued		315,457
Price per share	$	6.34

Share consideration	$	2,000,000
Contingent consideration		88,686

Total purchase consideration	$	2,088,686

INTANGIBLE ASSETS (Tables)

12 Months Ended

Sep. 30, 2012

Schedule of Intangible Asset

The below table provides details on our intangible asset balances:


	Intangible assets not subject to amortization		Intangible assets subject to amortization			Total Intangible assets
Balance at September 30, 2010	$	0	$	1,973,019		$	1,973,019
Amortization		0		(241,808	)		(241,808	)

Balance at September 30, 2011	$	0	$	1,731,211		$	1,731,211
Additions – Madison acquisition		944,935		230,000			1,174,935
Additions – Alvos acquisition		2,172,387		0			2,172,387
Amortization		0		(293,964	)		(293,964	)

Balance at September 30, 2012	$	3,117,322	$	1,667.247		$	4,784,569

INVESTMENT IN SUBSIDIARIES (Tables)

12 Months Ended

Sep. 30, 2012

Summary of Financial Information

Summarized financial information for Nanotope, Inc. is as follows:


	September 30, 2012			September 30, 2011
Current assets	$	31,000		$	21,000
Non-current assets		0			85,000
Liabilities		2,070,000			1,255,000
Equity		(2,039,000	)		(1,149,000	)


	For the year ended September 30, 2012			For the year ended September 30, 2011
Revenue	$	0		$	515,000
Operating expenses		808,000			1,161,000
Net Loss	$	(890,000	)	$	(709,000	)

	For the year ended September 30, 2012			For the year ended September 30, 2011
Cash flows used in operating activities	$	(831,000	)	$	(705,000	)
Cash flows provided by (used in) investing activities		61,000			(31,000	)
Cash flows provided by financing activities		784,000			746,000

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Sep. 30, 2012

Summary of Information About Warrants

The following table summarizes information about warrants outstanding at September 30, 2012:


Exercise prices	Number of Warrants		Remaining Life in Years
$70.60		94,897		4.6
$20.00		386,400		0.9
$5.00		1,155,023		2.2
$5.09		461,024		2.2
$1.38		322,150		3.2
$4.16		1,000		4.2
$3.25		1,695,654		3.9

Total warrants outstanding		4,116,147

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

LEASES (Tables)

12 Months Ended

Sep. 30, 2012

Future Minimum Lease Payments under Capitalized Leases

As of September 30, 2012, future minimum lease payments due in fiscal years under capitalized leases are as follows:


2013	$	256,846
2014		256,846
2015		256,846
2016		256,846
2017		256,846
2018 and thereafter		363,864
Less interest		(150,835	)

Principal		1,497,259
Less current portion		(214,801	)

Noncurrent portion	$	1,282,458

Future Minimum Lease Payments under Operating Leases

As of September 30, 2012, future minimum lease payments due in fiscal years under operating leases are as follows:


2013	$	356,672
2014		434,229
2015		445,921
2016		457,961
2017		470,154
2018 and thereafter		484,785

Total	$	2,649,723

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Sep. 30, 2012

Summarize Information About Stock Options

The following tables summarize information about stock options:


	Number of Options Outstanding			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Balance At September 30, 2010		812,334		$	10.62
Granted		20,000			5.86
Cancelled		(100,539	)		21.32
Exercised		(2,699	)		5.10


	Number of Options Outstanding			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Balance At September 30, 2011		729,096			9.03
Granted		1,229,500			4.40
Cancelled		(42,919	)		11.77
Exercised		(4,883	)		5.20

Balance At September 30, 2012		1,910,794		$	6.01		8.2 years	$	0

Exercisable At September 30, 2012		811,214		$	7.96		6.6 years	$	0

Assumptions Used to Value Stock Options

The assumptions used to value stock options are as follows:


	Year ended September 30,
	2012	2011
Dividend yield	—	—
Risk-free interest rate	0.9% to 1.7%	1.11% to 2.90%
Volatility	90% -100%	100%
Expected life (in years)	5.5 to 6.25	5.5 to 6.25
Weighted average grant date fair value per share of options granted	$3.32	$4.70

FAIR VALUE MEASUREMENTS & DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Sep. 30, 2012

Fair Value Measurements for Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes fair value measurements at September 30, 2012 and September 30, 2011 for assets and liabilities measured at fair value on a recurring basis:

September 30, 2012:


	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	3,377,288	$	—	$	—	$	3,377,288
Marketable securities	$	106,500	$	—	$	—	$	106,500
Derivative assets	$	—	$	—	$	250,250	$	250,250
Derivative liabilities	$	—	$	—	$	647,213	$	647,213
Contingent consideration	$	—	$	—	$	173,621	$	173,621

September 30, 2011:

	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	7,507,389	$	—	$	—	$	7,507,389
Marketable securities	$	634,585	$	—	$	—	$	634,585
Derivative assets	$	—	$	—	$	161,125	$	161,125
Derivative liabilities	$	—	$	—	$	944,980	$	944,980
Contingent consideration	$	—	$	—	$	—	$	—

Assumptions Used in Valuing Derivative Asset

The assumptions used in valuing the derivative asset as of September 30, 2012 and 2011 were as follows:


	September 30, 2012	September 30, 2011
Risk free interest rate	0.23%	0.4%
Expected life	1.3 Years	2.3 Years
Dividend yield	none	none
Volatility	72%	72%

Reconciliation of Derivative Asset

The following is a reconciliation of the derivative asset for the years ended September 30, 2012 and 2011:


Value at September 30, 2010	$	—
Receipt of instruments		618,500
Change in value		(457,375	)

Value at October 1, 2011		161,125
Receipt of instruments		—
Increase in value		89,125
Net settlements		—

Value at September 30, 2012	$	250,250

Change in Fair Value of Contigent Consideration Obligation


Value at September 30, 2011	$	—
Purchase price contingent consideration		173,621
Contingent consideration payments		—
Change in fair value of contingent consideration		—

Value at September 30, 2012	$	173,621

Warrants [Member]

Assumptions Used in Valuing Derivative Liability

The assumptions used in valuing the derivative liability as of September 30, 2012 and 2011 were as follows:


	September 30, 2012	September 30, 2011
Risk free interest rate	0.31%	0.9%
Expected life	3.2 Years	4.2 Years
Dividend yield	none	none
Volatility	100%	100%

Reconciliation of Derivative Liability

The following is a reconciliation of the derivative liability related to these warrants for the years ended September 30, 2012 and 2011:


Value at September 30, 2010	$	2,408,522
Receipt of instruments		—
Change in value		(1,501,289	)

Value at September 30, 2011	$	907,233
Receipt of instruments		—
Change in value		(281,038	)
Net settlements		—

Value at September 30, 2012	$	626,195

Exchange rights [Member]

Assumptions Used in Valuing Derivative Liability

The assumptions used in valuing the derivative liability as of September 30, 2012 and 2011 were as follows:


	September 30, 2012	September 30, 2011
Risk free interest rate	0.62%	1.3%
Expected life	5.3 Years	6.3 Years
Dividend yield	none	none
Volatility	100%	100%

Reconciliation of Derivative Liability

The following is a reconciliation of the derivative liability related to these exchange rights for the years ended September 30, 2012 and 2011:


Value at September 30, 2010	$	—
Issuance of instruments		100,650
Change in value		(69,758	)

Value at September 30, 2011	$	30,892
Issuance of instruments		—
Change in value		(20,520	)
Net settlements		—

Value at September 30, 2012	$	10,372

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References + Details

Statement of Cash Flow (Parenthetical) (Detail) - USD ($)	1 Months Ended
	Apr. 05, 2012	Oct. 21, 2011	Sep. 30, 2010	Mar. 31, 2010	Feb. 28, 2010	Nov. 30, 2009	Sep. 30, 2009	Sep. 28, 2009	Sep. 22, 2009	Jun. 25, 2009	Jun. 11, 2009	Aug. 08, 2008	Apr. 29, 2008	Apr. 23, 2008	Apr. 20, 2007	Mar. 31, 2006	Mar. 23, 2005
Purchase of common shares														200,000
Common stock, shares issued														7,054
Stock purchased by cash														$ 200,000
Warrants exercised				24,788
Stock issued against warrants				12,870
Roche [Member]
Shares exchanged as part of acquisition		1,288,158
Issue of promissory note to Roche		$ 50,000
Alvos acquisition [Member]
Shares exchanged as part of acquisition	315,457
Insert Therapeutics, Inc [Member]
Purchase of common shares																	7,375,000
Common stock, shares issued																	50,226
Common stock value																	$ 2,000,000
Calando Pharmaceuticals, Inc. [Member]
Purchase of common shares					200,000	2,850,000										964,000
Common stock, shares issued					8,000	114,000										20,838
Common stock value						$ 706,800										$ 1,077,333
Value of common stock purchased																1,928,000
Stock purchased by cash																$ 850,667
Warrants issued					2,400	24,000
Warrants purchased					60,000	600,000
Common stock exercise value					$ 5.00
Calando Pharmaceuticals, Inc. [Member] \| Series A Preferred Stock [Member]
Purchase of common shares			1,562.5
Warrants issued			390,625
Common stock exercise value			$ 5.00
MASA Energy LLC [Member]
Common stock, shares issued													10,504
Common stock value													$ 310,000
Value of common stock purchased													560,000
Stock purchased by cash													$ 250,000
Nanoconduction, Inc [Member]
Common stock, shares issued												11,411
Common stock value												$ 250,000
Unidym, Inc. [Member]
Common stock, shares issued								64,227
Common stock value								$ 398,209
Unidym, Inc. [Member] \| Series A Preferred Stock [Member]
Common stock, shares issued									9,149		132,462
Common stock value									$ 46,662		$ 688,802
Preferred stock, shares								5,574
Unidym, Inc. [Member] \| Series C Preferred Stock [Member]
Common stock, shares issued						15,317				194,444
Common stock value						$ 47,485				$ 972,222
Preferred stock, shares								636,699
Unidym, Inc. [Member] \| Series C-1 Preferred Stock [Member]
Common stock, shares issued							27,777
Common stock value							$ 186,111
Carbon Nanotechnologies, Inc [Member] \| Series E Preferred Stock [Member]
Common stock, shares issued															143,122
Common stock value															$ 5,400,000

Organization and Significant Accounting Policies - Additional Information (Detail)	1 Months Ended		12 Months Ended		113 Months Ended
	Dec. 31, 2012 USD ($) $ / shares $ / Warrant shares	Jan. 31, 2011 USD ($)	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Sep. 30, 2012 USD ($)	Oct. 21, 2011 Employees	Sep. 30, 2010 USD ($)
Schedule of Investments [Line Items]
Cash for fund operation			$ 3,377,288	$ 7,507,389	$ 3,377,288		$ 6,847,162
Cash position decreased during year			(4,130,101)	660,227	3,377,288
Cash from issuance of equity			11,000,000
Proceeds from sale of investments			509,009	1,534,687	3,313,609
Proceeds from Revenue			200,000
Cash outflow from continuing operations			(15,340,090)	(7,655,993)	(75,877,796)
Capital expenditures			500,000
Non cash consideration received in sale of interest in subsidiary, shares		$ 2,500,000
Non cash consideration received in sale of interest in subsidiary, bonds		2,500,000
Non cash consideration received in sale of interest in subsidiary owed to third party		$ 200,000
Face value of convertible bond			$ 2,500,000		2,500,000
Redemption date of bonds			January 17, 2013
Subscription Receivable			$ 1,016,000	900,000	1,016,000
Proceeds from equity line facility			$ 1,000,000
Promissory note, maturity date			Nov. 26, 2013
Number of employees at the time of acquisition \| Employees						41
Accumulated deficit			$ (134,997,680)	(113,871,752)	(134,997,680)
Amount insured in FDIC per account			250,000		250,000
Equity method investments, book value				1,649,748
Minority equity investment, book value			$ 0		$ 0
Subsequent Events [Member]
Schedule of Investments [Line Items]
Cash from issuance of equity	$ 4,300,000
Minimum stock price required to maintain under equity line facility \| $ / shares	$ 2,000,000
Shares issued under public offering \| shares	1,900,000
Shares issued under public offering, price per share \| $ / shares	$ 2.26
Warrant to purchase share of Common Stock \| shares	0.5
Exercise price of warrants \| $ / Warrant	2.20
Promissory note	$ 500,000
Promissory note, maturity date	Feb. 01, 2013
Nanotope, Inc [Member]
Schedule of Investments [Line Items]
Percentage of investment ownership			20.00%		20.00%
Equity method investments, book value			$ 0		$ 0
Wisepower [Member]
Schedule of Investments [Line Items]
Proceeds from sale of investments			$ 500,000
Drawing Limit under Equity Line Facility				$ 15,000,000
Minimum [Member]
Schedule of Investments [Line Items]
Property and equipment, useful lives			3 years
Maximum [Member]
Schedule of Investments [Line Items]
Property and equipment, useful lives			7 years

Acquisitions - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Nov. 17, 2011	Sep. 30, 2012	Oct. 21, 2011
Business Acquisition [Line Items]
Reverse stock split ratio		Company effected a 1 for 10 reverse stock split
Obligation to pay royalties		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.
Contingent consideration		$ 173,621
Roche [Member]
Business Acquisition [Line Items]
Issue of promissory note to Roche		$ 50,000	$ 50,000
Issue of common stock		901,702
Reverse stock split ratio	1-for-10
Issuance of additional shares of Common Stock		386,456
Applicable out license term		90 days
Percentage of royalty liability		3.00%
Gain on purchase		$ 1,576,106
Contingent consideration		$ 84,935
Alvos acquisition [Member]
Business Acquisition [Line Items]
Issue of common stock		315,467
Issue of additional shares of Common Stock, Value		$ 23,500,000
Contingent consideration		$ 88,686

Acquisitions - Summary of Estimated Fair Values at Date of Acquisition (Detail)	12 Months Ended
	Sep. 30, 2012 USD ($)
Roche [Member]
Business Acquisition [Line Items]
Current assets	$ 432,709
Property and equipment	7,215,206
Intangible assets	1,174,935
Other noncurrent assets	6,264
Current liabilities	(414,122)
Noncurrent liabilities	(1,570,072)
Gain on purchase	(1,576,106)
Total purchase consideration	5,268,814
Alvos acquisition [Member]
Business Acquisition [Line Items]
Current assets	29,332
In-process R&D	2,172,387
Current liabilities	(113,033)
Total purchase consideration	$ 2,088,686

Acquisitions - Purchase Consideration (Detail) - USD ($)	Sep. 30, 2012	Aug. 10, 2012	Oct. 21, 2011
Business Acquisition [Line Items]
Price per share		$ 2.76
Contingent consideration	$ 173,621
Roche [Member]
Business Acquisition [Line Items]
Shares issued	5,133,879
Promissory note due Roche	50,000		$ 50,000
Contingent consideration	84,935
Total purchase consideration	5,268,814
Alvos acquisition [Member]
Business Acquisition [Line Items]
Shares issued	$ 315,457
Price per share	$ 6.34
Share consideration	$ 2,000,000
Contingent consideration	88,686
Total purchase consideration	$ 2,088,686

- Definition

Fair value, as of the acquisition date, of potential payments under the contingent consideration arrangement including cash and shares.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 35
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6910684&loc=d3e4570-128470

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 25
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6911189&loc=d3e6411-128476

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 30
-Paragraph 18
-URI http://asc.fasb.org/extlink&oid=18499824&loc=d3e4237-128469

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 30
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=18499824&loc=d3e4243-128469

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 40
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6910732&loc=d3e4805-128471

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 25
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6911189&loc=d3e6408-128476

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 25
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6946367&loc=d3e3642-128468

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 25
-Paragraph 27
-URI http://asc.fasb.org/extlink&oid=6946367&loc=d3e3629-128468

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-Subparagraph (b)(3),(c)(1)
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 25
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6911189&loc=d3e6405-128476

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph g(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 29, 30, 41, 42, 64
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51
-Subparagraph f
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 65
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The acquisition-date fair value of the equity interests of the acquirer, including the number of instruments or interests issued or issuable in consideration for the business combination.

+ References + Details

- Definition

This element represents the acquisition-date fair value of the total consideration transferred which consists of the sum of the acquisition-date fair values of the assets transferred by the acquirer, the liabilities incurred by the acquirer to former owners of the acquiree, and the equity interests issued by the acquirer.

+ References + Details

Intangible Assets - Additional Information (Detail)	12 Months Ended
Intangible Assets - Additional Information (Detail)	Sep. 30, 2012 USD ($)
Amortization period of intangible assets	12 years
Amortization of license agreements in 2013	$ 300,000
Amortization of license agreements in 2014	300,000
Amortization of license agreements in 2015	300,000
Amortization of license agreements in 2016	250,000
Amortization of license agreements in 2017	240,000
Amortization of license agreements, thereafter	$ 280,000
Licensing Agreements [Member]
Amortization period of intangible assets	4 years
Minimum [Member] \| Patents [Member]
Amortization period of intangible assets	3 years
Maximum [Member] \| Patents [Member]
Amortization period of intangible assets	20 years

Intangible Assets - Schedule of Intangible Asset (Detail) - USD ($)	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Intangible assets not subject to amortization, beginning balance	$ 0	$ 0
Intangible assets not subject to amortization, Amortization	0	0
Intangible assets not subject to amortization, ending balance	3,117,322	0
Intangible assets subject to amortization, beginning balance	1,731,211	1,973,019
Amortization	(293,964)	(241,808)
Intangible assets subject to amortization, ending balance	1,667,247	1,731,211
Balance at September 30, 2010		1,973,019
Amortization	(293,964)	(241,808)
Balance at September 30, 2011	4,784,569	$ 1,731,211
Madison acquisition [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Intangible assets subject to amortization, Additions	230,000
Intangible assets not subject to amortization, Additions	944,935
Additions	1,174,935
Alvos acquisition [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Intangible assets subject to amortization, Additions	0
Intangible assets not subject to amortization, Additions	2,172,387
Additions	$ 2,172,387

Investment in Subsidiaries - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Aug. 10, 2012	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010	Jan. 31, 2011	Jun. 23, 2009	Nov. 26, 2008	Apr. 17, 2008
Schedule of Investments [Line Items]
Ownership percentage in subsidiary		100.00%
Unsecured Convertible Promissory Note Agreements							$ 2,500,000
Investment in Notes offering							200,000
Additional investment in Notes offering							600,000
Issuance and sold of Common Stock	2,260,869
Aggregate purchase price of preferred shares			$ (1,618,509)
Preferred Class B and C [Member]
Schedule of Investments [Line Items]
Investment in preferred stock					$ 9,100,000
Calando Pharmaceuticals, Inc. [Member]
Schedule of Investments [Line Items]
Aggregate investment in subsidiary through equity and debt								$ 23,200,000
Unsecured Convertible Promissory Note Agreements							2,500,000
Investment in Notes offering							200,000
Additional investment in Notes offering							$ 600,000
Principal amount of note which not converted into shares						$ 500,000
Conversion of Notes and accrued interest into share						2,950
Issuance and sold of Common Stock				122,000
Issuance of warrants				26,400
Cash investment in subsidiary					1,000,000
Investment in subsidiary through conversion of intercompany debt					$ 8,100,000
Amount owed by subsidiary		$ 3,100,000
Stated percentage of notes and advances		8.00%
Percentage of outstanding shares		79.00%
Percentage of investment ownership		76.00%
Ablaris Therapeutics, Inc. [Member]
Schedule of Investments [Line Items]
Investment in preferred stock			1,300,000
Percentage of outstanding shares		64.00%
Percentage of investment ownership		64.00%
Aggregate purchase price of preferred shares			2,900,000
Investment in preferred stock by outsider			$ 1,600,000
Nanotope, Inc [Member]
Schedule of Investments [Line Items]
Percentage of outstanding shares		23.00%
Percentage of investment ownership		19.00%
Non-cash impairment charge		$ 1,400,000
Carrying value of the investment		0
Reserve against receivable		1,900,000
Leonardo Biosystems Inc [Member]
Schedule of Investments [Line Items]
Amount owed by subsidiary		$ 547,000
Percentage of outstanding shares		3.00%

Investment in Subsidiaries - Summary of Financial Information (Detail) - Nanotope, Inc [Member] - USD ($)	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Schedule of Investments [Line Items]
Current assets	$ 31,000	$ 21,000
Non-current assets	0	85,000
Liabilities	2,070,000	1,255,000
Equity	(2,039,000)	(1,149,000)
Revenue	0	515,000
Operating expenses	808,000	1,161,000
Net Loss	(890,000)	(709,000)
Cash flows used in operating activities	(831,000)	(705,000)
Cash flows provided by (used in) investing activities	61,000	(31,000)
Cash flows provided by financing activities	$ 784,000	$ 746,000

Discontinued Operations - Additional Information (Detail) - USD ($)	1 Months Ended		12 Months Ended
	Jan. 31, 2011	Dec. 31, 2009	Sep. 30, 2012
Discontinued Operations [Line Items]
Non cash consideration received in sale of interest in subsidiary	$ 2,500,000
Contingent amount to be received under discontinued business	140,000,000
Convertible bond, face value			$ 2,500,000
Period of revenue milestones considered for contingent payment			10 years
Upfront consideration of discontinued operation			$ 350,000
Reimbursements of patent and license expenses		$ 80,000
Convertible Bond [Member]
Discontinued Operations [Line Items]
Convertible bond, face value	$ 2,500,000
Convertible bond, conversion date			Jan. 17, 2012
Convertible bond, redeemable date			January 17, 2013
Convertible bond, due date			Jan. 17, 2014

Notes Payable - Additional Information (Detail) - USD ($)	12 Months Ended
	Sep. 30, 2012	Nov. 26, 2008
Class of Stock [Line Items]
Unsecured Convertible Promissory Note Agreements		$ 2,500,000
Investment in Notes offering		200,000
Additional investment in Notes offering		600,000
Principal amount of Note not converted into shares		$ 500,000
New note interest rate		10.00%
Offering note matured date	Nov. 26, 2013
New note terms	Two times principal payment upon certain events
Offering note maturity amount	$ 1,000,000
Offering note discount	$ 210,579
Series A Preferred Stock [Member] \| Calando [Member]
Class of Stock [Line Items]
Conversion of notes and accrued interest in to share	2,950

Stockholders' Equity - Additional Information (Detail) - USD ($)	1 Months Ended				12 Months Ended				113 Months Ended
	Aug. 10, 2012	Feb. 29, 2012	Oct. 31, 2011	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2005	Sep. 30, 2012	Oct. 24, 2011	Oct. 21, 2011	Oct. 04, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capital stock authorized for issuance					150,000,000				150,000,000
Common stock, shares authorized				145,000,000	145,000,000	145,000,000			145,000,000
Common stock, par value				$ 0.001	$ 0.001	$ 0.001			$ 0.001		$ 0.001
Preferred stock, shares authorized				5,000,000	5,000,000	5,000,000			5,000,000
Preferred stock, par value				$ 0.001	$ 0.001	$ 0.001			$ 0.001
Common stock, shares outstanding				8,642,286	13,579,185	8,642,286			13,579,185
Issuance and sold of Common Stock	2,260,869
Sale of stock, price per share	$ 2.76
Proceeds from issuance of common stock and warrants, net	$ 6,200,000				$ 10,958,231	$ 4,507,389			$ 106,253,011
Aggregate purchase price of preferred shares						$ (1,618,509)
Warrant to purchase common stock	0.75
Common stock exercise price	$ 3.25
Reverse stock split					Company effected a 1 for 10 reverse stock split
Series A Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock, par value										$ 0.001
Sale of stock, price per share										$ 1,000
Aggregate purchase price of preferred shares			$ 1,015,000
Number of shares converted in common stock					1,015
Preferred stock converted to common stock, shares		275,782
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance and sold of Common Stock			138,158	1,458,917	15,511	8,656	225,189	1,250
Sale of stock, price per share				$ 3.80	$ 3.70	$ 3.80			$ 3.70			$ 3.80
Proceeds from issuance of common stock and warrants, net			$ 525,000.0			$ 4,500,000
Aggregate purchase price on issuance of common stock to be received			$ 2,497,500
Limited Liability Company [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum equity commitment amount under agreement					$ 15,000,000				$ 15,000,000
Equity commitment agreement period					36 months				36 months
Scenario, Forecast [Member] \| Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from issuance of common stock and warrants, net					$ 1,000,000
Subscription Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance and sold of Common Stock			675,000
Subscription Agreement [Member] \| Series A Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance and sold of Common Stock			1,015
2000 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share reserve for issuance					153,200				153,200
2004 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share reserve for issuance					1,965,860				1,965,860

Stockholders' Equity - Summary of Information about Warrants (Detail)	Sep. 30, 2012 $ / Warrant shares
Class of Warrant or Right [Line Items]
Number of Warrants	4,116,147
Warrant 1 [Member]
Class of Warrant or Right [Line Items]
Exercise prices \| $ / Warrant	70.60
Number of Warrants	94,897
Remaining Life in Years	4 years 7 months 6 days
Warrant 2 [Member]
Class of Warrant or Right [Line Items]
Exercise prices \| $ / Warrant	20.00
Number of Warrants	386,400
Remaining Life in Years	10 months 24 days
Warrant 3 [Member]
Class of Warrant or Right [Line Items]
Exercise prices \| $ / Warrant	5.00
Number of Warrants	1,155,023
Remaining Life in Years	2 years 2 months 12 days
Warrant 4 [Member]
Class of Warrant or Right [Line Items]
Exercise prices \| $ / Warrant	5.09
Number of Warrants	461,024
Remaining Life in Years	2 years 2 months 12 days
Warrant 5 [Member]
Class of Warrant or Right [Line Items]
Exercise prices \| $ / Warrant	1.38
Number of Warrants	322,150
Remaining Life in Years	3 years 2 months 12 days
Warrant 6 [Member]
Class of Warrant or Right [Line Items]
Exercise prices \| $ / Warrant	4.16
Number of Warrants	1,000
Remaining Life in Years	4 years 2 months 12 days
Warrant 7 [Member]
Class of Warrant or Right [Line Items]
Exercise prices \| $ / Warrant	3.25
Number of Warrants	1,695,654
Remaining Life in Years	3 years 10 months 24 days

Leases - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended		113 Months Ended
Leases - Additional Information (Detail) - USD ($)	Aug. 31, 2012	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012
Component of Operating Other Cost and Expense [Line Items]
Rental expense	$ 13,000			$ 4,125,485
Lease term	5 years
Percentage of increase in annual rental cost	3.00%
Rental expenses include common area maintenance and real estate taxes		$ 13,000
Utilities costs		16,000
Increase in total monthly expenditures		72,000
Facility and equipment rent expense		480,000	$ 162,000
Roche [Member]
Component of Operating Other Cost and Expense [Line Items]
Rental expense		22,000
Payments under a capitalized lease		$ 21,000

Leases - Future Minimum Lease Payments under Capitalized Leases (Detail)	Sep. 30, 2012 USD ($)
2013	$ 256,846
2014	256,846
2015	256,846
2016	256,846
2017	256,846
2018 and thereafter	363,864
Less interest	(150,835)
Principal	1,497,259
Less current portion	(214,801)
Noncurrent portion	$ 1,282,458

Leases - Future Minimum Lease Payments under Operating Leases (Detail)	Sep. 30, 2012 USD ($)
2013	$ 356,672
2014	434,229
2015	445,921
2016	457,961
2017	470,154
2018 and thereafter	484,785
Total	$ 2,649,723

Stock-Based Compensation - Additional Information (Detail) - USD ($)	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted and outstanding to purchase	1,910,794	729,096	812,334
Options granted	1,229,500	20,000
Stock-based compensation expense	$ 1,241,404	$ 1,376,921
Stock-based compensation expense in discontinued operations	0	27,519
Fair value of the options granted	4,091,117	93,004
Intrinsic value of the options exercised	0	3,666
Arrowhead [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax compensation expense	$ 3,738,217
Weighted average period to recognize pre-tax compensation expense	3 years 1 month 6 days
Calando Pharmaceuticals, Inc. [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of the options granted	$ 33,690	$ 33,870
Pre-tax compensation expense	$ 63,250
Weighted average period to recognize pre-tax compensation expense	2 years 7 months 6 days
2000 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserve for issuance	153,200
Options granted and outstanding to purchase	153,200
2004 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserve for issuance	1,965,860
Options granted and outstanding to purchase	1,767,894
Options granted	988,300
Options granted outside of Equity Incentive plans	251,200

Stock-Based Compensation - Summarize Information about Stock Options (Detail) - USD ($)	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options Outstanding, beginning balance	729,096	812,334
Number of Options Outstanding, Granted	1,229,500	20,000
Number of Options Outstanding, Cancelled	(42,919)	(100,539)
Number of Options Outstanding, Exercised	(4,883)	(2,699)
Number of Options Outstanding, ending balance	1,910,794	729,096
Weighted Average Exercise Price Per Share, beginning balance	$ 9.03	$ 10.62
Number of Options Outstanding, Exercisable	811,214
Weighted Average Exercise Price Per Share, Granted	$ 4.40	5.86
Weighted Average Exercise Price Per Share, Cancelled	11.77	21.32
Weighted Average Exercise Price Per Share, Exercised	5.20	5.10
Weighted Average Exercise Price Per Share, ending balance	6.01	$ 9.03
Weighted Average Exercise Price Per Share, Exercisable	$ 7.96
Weighted Average Remaining Contractual Term	8 years 2 months 12 days
Weighted Average Remaining Contractual Term, Exercisable	6 years 7 months 6 days
Aggregate Intrinsic Value	$ 0
Aggregate Intrinsic Value, Exercisable	$ 0

Stock-Based Compensation - Assumptions Used to Value Stock Options (Detail) - $ / shares	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield
Risk-free interest rate, minimum	0.90%	1.11%
Risk-free interest rate, maximum	1.70%	2.90%
Volatility, minimum	90.00%
Volatility		100.00%
Volatility, maximum	100.00%
Weighted average grant date fair value per share of options granted	$ 3.32	$ 4.70
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (in years)	5 years 6 months	5 years 6 months
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (in years)	6 years 3 months	6 years 3 months

Fair Value Measurements & Derivative Instruments - Fair Value Measurements for Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($)	Sep. 30, 2012	Sep. 30, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	$ 280,261	$ 161,125
Contingent consideration	173,621
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	3,377,288	7,507,389
Marketable securities	106,500	634,585
Derivative assets	250,250	161,125
Derivative liabilities	647,213	944,980
Contingent consideration	173,621
Level 1 [Member] \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	3,377,288	7,507,389
Marketable securities	106,500	634,585
Derivative assets
Derivative liabilities
Contingent consideration
Level 2 [Member] \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents
Marketable securities
Derivative assets
Derivative liabilities
Contingent consideration
Level 3 [Member] \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents
Marketable securities
Derivative assets	250,250	161,125
Derivative liabilities	647,213	944,980
Contingent consideration	$ 173,621

Fair Value Measurements & Derivative Instruments - Additional Information (Detail)	1 Months Ended	12 Months Ended
	Jan. 31, 2011 USD ($) $ / shares	Sep. 30, 2012 USD ($) shares	Sep. 30, 2011 USD ($)	Jun. 17, 2010 shares
Fair Value Measurements Disclosure [Line Items]
Non cash consideration received in sale of interest in subsidiary, bonds	$ 2,500,000
Gain from change in value of the derivative asset, net of the derivative liability		$ 85,334
Warrants issued to acquire Common Stock \| shares				329,649
Non cash gain (loss) from change in fair value of derivative liability		$ 281,038
Duration of rights		7 years
Contingent consideration		$ 173,621
Unidym, Inc. [Member]
Fair Value Measurements Disclosure [Line Items]
Non cash consideration received in sale of interest in subsidiary, bonds	$ 2,500,000
Bond convertible conversion price per share \| $ / shares	$ 2.00
Derivative fair value related to third party	$ 26,310	10,645	$ 6,854
Gain from change in value of the derivative asset		89,125
Ablaris Therapeutics, Inc. [Member]
Fair Value Measurements Disclosure [Line Items]
Non cash gain (loss) from change in fair value of derivative liability		$ 20,520
Exchange right convertible conversion ratio for first year		0.06
Exchange right convertible conversion ratio for second year		0.04
Exchange right convertible conversion ratio for third year		0.03
Exchange right convertible conversion ratio for fourth year		0.02
Exchange right convertible conversion ratio for fifth year		0.01
Number of exchange rights sold \| shares		675,000

Fair Value Measurements & Derivative Instruments - Assumptions Used in Valuing Derivative Asset (Detail) - Derivative assets [Member]	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk free interest rate	0.23%	0.40%
Expected life	1 year 3 months 18 days	2 years 3 months 18 days
Dividend yield
Volatility	72.00%	72.00%

Fair Value Measurements & Derivative Instruments - Reconciliation of Derivative Asset (Detail) - Derivative assets [Member] - USD ($)	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Value, Beginning balance	$ 161,125
Receipt of instruments		$ 618,500
Change in value	89,125	(457,375)
Net settlements
Value, Ending balance	$ 250,250	$ 161,125

Fair Value Measurements & Derivative Instruments - Assumptions Used in Valuing Derivative Liability (Detail)	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Warrants [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk free interest rate	0.31%	0.90%
Expected life	3 years 2 months 12 days	4 years 2 months 12 days
Dividend yield
Volatility	100.00%	100.00%
Exchange rights [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk free interest rate	0.62%	1.30%
Expected life	5 years 3 months 18 days	6 years 3 months 18 days
Dividend yield
Volatility	100.00%	100.00%

Fair Value Measurements & Derivative Instruments - Reconciliation of Derivative Liability (Detail) - USD ($)	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Change in value	$ 281,038
Warrants [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Value, Beginning balance	907,233	$ 2,408,522
Receipt of instruments
Change in value	(281,038)	(1,501,289)
Net settlements
Value, Ending balance	626,195	907,233
Exchange rights [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Value, Beginning balance	30,892
Issuance of instruments		100,650
Change in value	(20,520)	(69,758)
Net settlements
Value, Ending balance	$ 10,372	$ 30,892

Fair Value Measurement & Derivative Investments - Change in Fair Value of Contingent Consideration Obligation (Detail)	Sep. 30, 2012 USD ($)
Business Acquisition, Contingent Consideration [Line Items]
Purchase price contingent consideration	$ 173,621
Contingent consideration payments
Change in fair value of contingent consideration

Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended									113 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2008	Sep. 30, 2007	Sep. 30, 2006	Sep. 30, 2004	Sep. 30, 2003	Sep. 30, 2012
Income Tax Disclosure [Line Items]
Net book losses	$ (22,110,723)	$ (3,492,399)	$ (6,957,038)	$ (19,308,392)	$ (27,241,639)	$ (30,712,947)	$ (19,961,961)	$ (751,255)	$ (95,238)	$ (153,653,005)
Valuation allowance against defered tax assets	100.00%
Gross federal net operating loss carry forwards	$ 107,200,000									107,200,000
Gross state net operating loss carry forwards	75,900,000									75,900,000
Deferred tax assets	40,900,000									40,900,000
Valuation allowance against defered tax assets	40,900,000									40,900,000
Interest and penalties	$ 0	$ 0								$ 0

- Definition

Amount before allocation of valuation allowances of deferred tax asset attributable to deductible state and local operating loss carryforwards.

+ References + Details

- Definition

The portion of the valuation allowance pertaining to the deferred tax asset representing potential future taxable deductions from net operating loss carryforwards for which it is more likely than not that a tax benefit will not be realized.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 30
-Paragraph 5
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=6907311&loc=d3e30536-109315

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 17
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4569616-111683

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=18733213&loc=SL4591552-111686

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a),(c)
-URI http://asc.fasb.org/extlink&oid=18733093&loc=SL4573702-111684

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=18733213&loc=SL4591551-111686

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A1, A4, A5
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Related Party Transactions - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Aug. 31, 2010	Sep. 30, 2012	Sep. 30, 2011
Related Party Transaction [Line Items]
Monthly remuneration of employee	$ 10,000
Remuneration of Vincent Anzalone		$ 120,000	$ 120,000
Nanotope, Inc [Member]
Related Party Transaction [Line Items]
Shares owned by Arrowhead's President and CEO		1,395,900
Percentage of outstanding voting securities owned by Arrowhead's President and CEO		14.20%

Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended		113 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012
Defined Benefit Plan Disclosure [Line Items]
Employee benefit costs	$ 162,000	$ 43,000	$ 616,000
Discretionary Contributions [Member]
Defined Benefit Plan Disclosure [Line Items]
Discretionary match percentage	100.00%
Employee Contributions upto 3% [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of compensation	3.00%
50% Percentage of Matching Contribution [Member]
Defined Benefit Plan Disclosure [Line Items]
Discretionary match percentage	50.00%
Employee Contribution Next 2% [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of compensation	2.00%

Subsequent Events - Additional Information (Detail)	1 Months Ended	12 Months Ended
Subsequent Events - Additional Information (Detail)	Dec. 31, 2012 USD ($) $ / shares $ / Warrant shares	Sep. 30, 2012 USD ($)
Gross proceeds from offering		$ 11,000,000
Promissory note, maturity date		Nov. 26, 2013
Subsequent Events [Member]
Shares issued under public offering \| shares	1,900,000
Shares issued under public offering, price per share \| $ / shares	$ 2.26
Warrant to purchase share of Common Stock \| shares	0.5
Exercise price of warrant \| $ / Warrant	2.20
Gross proceeds from offering	$ 4,300,000
Promissory note	$ 500,000
Promissory note, maturity date	Feb. 01, 2013
Commissions and other offering expenses	$ 300,000

Label	Element	Value
Retained Earnings [Member]
Profit Loss	us-gaap_ProfitLoss	$ (95,238)
Issued For Cash At Zero Point Zero One Dollars Per Unit [Member]
Stock Issued During Period Value New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	3,000
Issued For Cash At Zero Point Zero One Dollars Per Unit [Member] \| Common Stock [Member]
Stock Issued During Period Value New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	$ 3,000
Stock Issued During Period Shares New Issues	us-gaap_StockIssuedDuringPeriodSharesNewIssues	300,000
Issued For Cash At Ten Dollar Per Unit [Member]
Stock Issued During Period Value New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	$ 1,680,000
Issued For Cash At Ten Dollar Per Unit [Member] \| Common Stock [Member]
Stock Issued During Period Value New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	$ 1,680
Stock Issued During Period Shares New Issues	us-gaap_StockIssuedDuringPeriodSharesNewIssues	168,000
Issued For Cash At Ten Dollar Per Unit [Member] \| Additional Paid In Capital [Member]
Stock Issued During Period Value New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	$ 1,678,320
Stock Issuance Cost Charged To Additional Paid In Capital [Member]
Adjustments To Additional Paid In Capital Stock Issued Issuance Costs	us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts	168,000
Stock Issuance Cost Charged To Additional Paid In Capital [Member] \| Additional Paid In Capital [Member]
Adjustments To Additional Paid In Capital Stock Issued Issuance Costs	us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts	$ 168,000