Quarterly report pursuant to Section 13 or 15(d)

Significant Accounting Policies (Tables)

v3.23.3
Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Schedule of Marketable Securities

The following is a description of the valuation methodologies used for assets measured at fair value as of September 30, 2023 and December 31, 2022.

 

Marketable Securities: Valued using quoted prices in active markets for identical assets.

 

   

Quoted Prices in Active Markets for Identical Assets or Liabilities

(Level 1)

    

Quoted Prices for Similar Assets or Liabilities in Active Markets

(Level 2)

    

Significant

Unobservable

Inputs

(Level 3)

  
Marketable securities at September 30, 2023   $ 8,174,283     $             -     $                 -  
                         
Marketable securities at December 31, 2022   $ 4,086,902     $ -     $ -  
Schedule of Fair Value Hierarchy of the Valuation Inputs

Description   Level    

September 30,

2023

  
Liabilities:                
Warrant liabilities (Note 3)     3     $ 2,457,000  
Derivative liabilities (Note 3)     3     $ 898,100  
Summary of Change in Fair Value of Warrant Liabilities

Balance on December 31, 2022   $ -  
Issuance of warrants reported at fair value     10,623,000  
Change in fair value of warrant liabilities     (1,175,000 )
Balance on March 31, 2023     9,448,000  
Change in fair value of warrant liabilities     (1,635,000 )
Balance on June 30, 2023     7,813,000  
Change in fair value of warrant liabilities     (5,356,000 )
Balance on September 30, 2023   $ 2,457,000  
Summary of Change in Fair Value of Derivative Liabilities

Balance on December 31, 2022   $ -  
Issuance of convertible preferred stock with derivative liabilities     3,149,800  
Change in fair value of derivative liabilities     120,700  
Balance on March 31, 2023     3,270,500  
Change in fair value of derivative liabilities     194,500  
Balance on June 30, 2023     3,465,000  
Change in fair value of derivative liabilities     (2,566,900 )
Balance on September 30, 2023   $ 898,100  
Schedule of Estimated Useful Lives of Property Plant and Equipment

The estimated useful lives for the current and comparative periods are as follows:

 

    Useful Life
    (in years)
Plant and equipment   5-12
Furniture and fixtures   5-10
Computer equipment & software   3-5
Leasehold Improvements   Shorter of the remaining lease or estimated useful life
Schedule of Estimated Useful Lives of Intangible Assets

Amortization is recognized on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. The estimated useful lives for the current and comparative periods are as follows:

 

    Useful Life
    (in years)
Patents and trademarks   12-17
Schedule of Condensed Consolidated Balance Sheet Information Related to Operating Lease

Lease expense for operating leases consists of the lease payments plus any initial direct costs and is recognized on a straight-line basis over the lease term.

 

The Company’s operating leases are comprised of the 2021 Baltimore Lease, the Hyde Park Lease and the Platt Street Lease on the Condensed Consolidated Balance Sheet. The information related to these leases are presented below:

 

Balance Sheet Location   Lease     Lease     Total     Lease     Lease     Total  
    As of September 30, 2023     As of December 31, 2022  
    Platt Street     2021 Baltimore           Platt Street     2021 Baltimore        
Balance Sheet Location   Lease     Lease     Total     Lease     Lease     Total  
Operating Lease                                                
Lease Right of Use   $ 31,357     $ 59,561     $ 90,918     $ 45,353     $ 94,309     $ 139,662  
Lease Payable, current     20,673       51,953       72,626       18,741       47,039       65,780  
Lease Payable - net of current     11,298       9,221       20,519       27,070       48,871       75,941  
Schedule of Lease Expense

The following provides details of the Company’s lease expense:

 

Lease Expenses   Lease     Lease     Total     Lease     Lease     Lease     Total  
   

Three Months Ended

September 30, 2023

    

Three Months Ended

September 30, 2022

  
    Platt Street     2021 Baltimore           Hyde Park     Platt Street     2021 Baltimore        
Lease Expenses   Lease     Lease     Total     Lease     Lease     Lease     Total  
Operating Leases                                                        
Lease Costs   $ 5,659     $ 13,596     $ 19,255     $          -     $ 5,660     $ 13,600     $ 19,260  

 

Lease Expenses   Lease     Lease     Total     Lease     Lease     Lease     Total  
   

Nine Months Ended

September 30, 2023

    

Nine Months Ended

September 30, 2022

  
    Platt Street     2021 Baltimore           Hyde Park     Platt Street     2021 Baltimore        
Lease Expenses   Lease     Lease     Total     Lease     Lease     Lease     Total  
Operating Leases                                                        
Lease Costs   $ 16,826     $ 40,788     $ 57,614     $ 6,251     $ 11,321     $ 40,800     $ 58,372  
Schedule of Other Information Related to Leases

Other information related to leases is presented below:

 

    Platt Street     2021 Baltimore        
Other Information   Lease     Lease     Total  
Operating Leases                        
Operating cash used   $ 13,224     $ 40,788     $ 54,012  
Average remaining lease term     18       14       16  
Average discount rate     10.0 %     10.0 %     10.0 %
Schedule of Operating Lease Minimum Lease Payments

As of September 30, 2023, the annual minimum lease payments of the Company’s operating lease liabilities were as follows:

 

    Lease     Lease     Total  
    Platt Street     2021 Baltimore        
    Lease     Lease     Total  
For Years Ending December 31,                        
2023     5,659       13,732       19,391  
2024     23,103       51,348       74,451  
2025     5,814       -       5,814  
Total future minimum lease payments, undiscounted   $ 34,576     $ 65,080     $ 99,656  
Less: Imputed interest     2,605       3,906       6,511  
Present value of future minimum lease payments   $ 31,971     $ 61,174     $ 93,145  
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share

As of September 30, 2023 and 2022, the following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive:

 

    2023     2022     2023     2022  
    For the Three Months Ended
September 30,		     For the Nine Months Ended
September 30,		  
    2023     2022     2023     2022  
Stock Options     4,145,000       4,376,737       4,145,000       4,376,737  
Warrants to purchase common stock     13,166,712       6,522,461       13,166,712       6,522,461  
Pre-funded Warrants to purchase common stock     -       135,135       -       135,135  
Unvested Restricted Stock Units     2,795,000       2,795,000       2,795,000       2,795,000  
Series C Convertible Preferred Warrants     27,500       27,500       27,500       27,500  
Series D Preferred Convertible Stock     36,496       36,496       36,496       36,496  
Series F Convertible Preferred Stock     4,371,619       -       4,371,619       -  
Total potentially dilutive shares     24,542,327       13,893,329       24,542,327       13,893,329