TNF Pharmaceuticals, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Significant Accounting Policies (Tables)

Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2023

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

Schedule of Marketable Securities

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 March 31, 2023	$	15,359,954	$	-	$	-

Marketable securities at December 31, 2022	$	4,086,902	$	-	$	-

Schedule of Fair Value Hierarchy of the Valuation Inputs

			March 31
Description	Level		2023
Liabilities:
Warrant liabilities (Note 3)		3	$	9,448,000
Derivative liabilities (Note 3)		3	$	3,270,500

Schedule of Change in the Fair Value of Warrant Liability

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

Schedule of Change in the Fair Value of Bifurcated Embedded Derivative Liability

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

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

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


	As of March 31, 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	$	40,802	$	83,013	$	123,815	$	45,353	$	94,309	$	139,662
Lease Payable, current		19,367		48,637		68,004		18,741		47,039		65,780
Lease Payable - net of current		22,046		35,981		58,027		27,070		48,871		75,941

Schedule of Lease Expense

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

Schedule of Lease Expense


	Three Months Ended March 31, 2023						Three Months Ended March 31, 2022
	Platt Street		2021 Baltimore				Hyde Park		2021 Baltimore
Lease Expenses	Lease		Lease		Total		Lease		Lease		Total
Operating Leases
Lease Costs	$	5,660	$	13,600	$	19,260	$	6,261	$	13,200	$	19,461

Schedule of Other Information Related to Leases

Other information related to leases is presented below:

	As of March 31, 2023
	Platt			2021 Baltimore
Other Information	Street Lease			Lease			Total
Operating Leases
Operating cash used	$	4,266		$	13,956		$	18,222
Average remaining lease term		24			20			22
Average discount rate		10.0	%		10.0	%		10.0	%

Schedule of Operating Lease Minimum Lease Payments

As of March 31, 2023, the annual minimum lease payments of the Company’s operating lease liabilities were as follows:

	Street Lease		Lease		Total
	As of March 31, 2023
	Platt		2021 Baltimore
	Street Lease		Lease		Total
For Years Ending December 31,
2023 (nine months)	$	16,978	$	40,924	$	57,902
2024		23,103		51,348		74,451
2025		5,814		-		5,814
Total future minimum lease payments, undiscounted	$	45,895	$	92,272	$	138,167
Less: Imputed interest		4,482		7,654		12,136
Present value of future minimum lease payments	$	41,413	$	84,618	$	126,031

Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share

As of March 31, 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
	For the Three Months Ended March 31,
	2023		2022
Stock Options		4,376,737		4,376,737
Unvested Restricted Stock Units		2,795,000		2,795,000
Warrants to purchase Common Stock		13,166,712		5,072,432
Pre-funded Warrants to purchase Common Stock		135,135		135,135
Series C Convertible Preferred Warrants		27,500		27,500
Series D Convertible Preferred Stock		36,496		36,496
Series F Convertible Preferred Stock		6,651,885		-
Total potentially dilutive shares		27,189,465		12,443,300