Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 10, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36216 | |
Entity Registrant Name | IDEAL POWER INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 14-1999058 | |
Entity Address, Address Line One | 5508 Highway 290 West, Suite 120 | |
Entity Address, City or Town | Austin | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78735 | |
City Area Code | 512 | |
Local Phone Number | 264-1542 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | IPWR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,938,458 | |
Entity Central Index Key | 0001507957 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 12,683,268 | $ 16,345,623 |
Accounts receivable, net | 203,324 | 65,936 |
Prepayments and other current assets | 540,430 | 491,365 |
Total current assets | 13,427,022 | 16,902,924 |
Property and equipment, net | 281,109 | 200,103 |
Intangible assets, net | 2,539,422 | 2,036,431 |
Right of use asset | 218,130 | 248,720 |
Other assets | 11,189 | 11,189 |
Total assets | 16,476,872 | 19,399,367 |
Current liabilities: | ||
Accounts payable | 112,010 | 130,503 |
Accrued expenses | 614,642 | 254,218 |
Current portion of lease liability | 67,595 | 64,597 |
Total current liabilities | 794,247 | 449,318 |
Long-term lease liability | 168,600 | 202,987 |
Other long-term liabilities | 1,180,005 | 838,458 |
Total liabilities | 2,142,852 | 1,490,763 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 50,000,000 shares authorized; 5,939,779 shares issued and 5,938,458 shares outstanding at June 30, 2023 and 5,926,001 shares issued and 5,924,680 shares outstanding at December 31, 2022 | 5,940 | 5,926 |
Additional paid-in capital | 106,244,511 | 105,011,318 |
Treasury stock, at cost, 1,321 shares at June 30, 2023 and December 31, 2022 | (13,210) | (13,210) |
Accumulated deficit | (91,903,221) | (87,095,430) |
Total stockholders' equity | 14,334,020 | 17,908,604 |
Total liabilities and stockholders' equity | $ 16,476,872 | $ 19,399,367 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares, issued | 5,939,779 | 5,926,001 |
Common stock, shares, outstanding | 5,938,458 | 5,924,680 |
Treasury stock, common shares | 1,321 | 1,321 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Total revenue | $ 135,167 | $ 50,978 | $ 135,831 | $ 175,986 |
Total cost of revenue | 110,737 | 50,978 | 111,401 | 175,986 |
Gross profit | 24,430 | 0 | 24,430 | 0 |
Operating expenses: | ||||
Research and development | 1,206,688 | 728,383 | 2,646,716 | 1,556,930 |
General and administrative | 933,993 | 734,637 | 1,828,926 | 1,587,586 |
Sales and marketing | 271,900 | 233,152 | 576,226 | 452,581 |
Total operating expenses | 2,412,581 | 1,696,172 | 5,051,868 | 3,597,097 |
Loss from operations | (2,388,151) | (1,696,172) | (5,027,438) | (3,597,097) |
Interest income, net | 108,345 | 6,178 | 219,647 | 2,462 |
Net loss | $ (2,279,806) | $ (1,689,994) | $ (4,807,791) | $ (3,594,635) |
Net loss per share - basic | $ (0.37) | $ (0.27) | $ (0.78) | $ (0.58) |
Net loss per share - diluted | $ (0.37) | $ (0.27) | $ (0.78) | $ (0.58) |
Weighted average number of shares outstanding - basic | 6,185,397 | 6,157,625 | 6,181,972 | 6,156,495 |
Weighted average number of shares outstanding - diluted | 6,185,397 | 6,157,625 | 6,181,972 | 6,156,495 |
Development revenue | ||||
Total revenue | $ 98,443 | $ 98,443 | ||
Total cost of revenue | 74,013 | 74,013 | ||
Grant revenue | ||||
Total revenue | 36,724 | $ 50,978 | 37,388 | $ 175,986 |
Total cost of revenue | $ 36,724 | $ 50,978 | $ 37,388 | $ 175,986 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (4,807,791) | $ (3,594,635) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 121,423 | 89,051 |
Stock-based compensation | 1,233,207 | 462,238 |
Stock issued for services | 0 | 100,100 |
Decrease (increase) in operating assets: | ||
Accounts receivable | (137,388) | 86,100 |
Prepaid expenses and other assets | (18,475) | (189,265) |
Increase (decrease) in operating liabilities: | ||
Accounts payable | (18,493) | (112,736) |
Accrued expenses and other liabilities | 219,025 | 77,630 |
Net cash used in operating activities | (3,408,492) | (3,081,517) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (114,025) | (12,248) |
Acquisition of intangible assets | (139,838) | (55,672) |
Net cash used in investing activities | (253,863) | (67,920) |
Net decrease in cash and cash equivalents | (3,662,355) | (3,149,437) |
Cash and cash equivalents at beginning of period | 16,345,623 | 23,170,149 |
Cash and cash equivalents at end of period | $ 12,683,268 | $ 20,020,712 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) | Common Stock | Additional Paid-In Capital | Treasury Stock, Common | Accumulated Deficit | Total |
Beginning balance at Dec. 31, 2021 | $ 5,894 | $ 104,063,321 | $ (79,906,080) | $ 24,149,925 | |
Beginning balance (in shares) at Dec. 31, 2021 | 5,893,767 | ||||
Treasury Stock, beginning balance at Dec. 31, 2021 | $ (13,210) | ||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2021 | 1,321 | ||||
Exercise of options | $ 1 | (1) | |||
Exercise of options (in shares) | 1,351 | ||||
Stock issued for services | $ 10 | 100,090 | 100,100 | ||
Stock issued for services (in shares) | 10,000 | ||||
Stock-based compensation | 231,765 | 231,765 | |||
Net loss | (1,904,641) | (1,904,641) | |||
Ending balance at Mar. 31, 2022 | $ 5,905 | 104,395,175 | $ (13,210) | (81,810,721) | 22,577,149 |
Ending balance (in shares) at Mar. 31, 2022 | 5,905,118 | ||||
Treasury stock, ending balance (in shares) at Mar. 31, 2022 | 1,321 | ||||
Beginning balance at Dec. 31, 2021 | $ 5,894 | 104,063,321 | (79,906,080) | 24,149,925 | |
Beginning balance (in shares) at Dec. 31, 2021 | 5,893,767 | ||||
Treasury Stock, beginning balance at Dec. 31, 2021 | $ (13,210) | ||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2021 | 1,321 | ||||
Net loss | (3,594,635) | ||||
Ending balance at Jun. 30, 2022 | $ 5,905 | 104,625,648 | (83,500,715) | 21,117,628 | |
Ending balance (in shares) at Jun. 30, 2022 | 5,905,118 | ||||
Treasury Stock, ending balance at Jun. 30, 2022 | $ (13,210) | ||||
Treasury stock, ending balance (in shares) at Jun. 30, 2022 | 1,321 | ||||
Beginning balance at Mar. 31, 2022 | $ 5,905 | 104,395,175 | $ (13,210) | (81,810,721) | 22,577,149 |
Beginning balance (in shares) at Mar. 31, 2022 | 5,905,118 | ||||
Treasury stock, beginning balance (in shares) at Mar. 31, 2022 | 1,321 | ||||
Stock-based compensation | 230,473 | 230,473 | |||
Net loss | (1,689,994) | (1,689,994) | |||
Ending balance at Jun. 30, 2022 | $ 5,905 | 104,625,648 | (83,500,715) | 21,117,628 | |
Ending balance (in shares) at Jun. 30, 2022 | 5,905,118 | ||||
Treasury Stock, ending balance at Jun. 30, 2022 | $ (13,210) | ||||
Treasury stock, ending balance (in shares) at Jun. 30, 2022 | 1,321 | ||||
Beginning balance at Dec. 31, 2022 | $ 5,926 | 105,011,318 | (87,095,430) | 17,908,604 | |
Beginning balance (in shares) at Dec. 31, 2022 | 5,926,001 | ||||
Treasury Stock, beginning balance at Dec. 31, 2022 | $ (13,210) | $ 13,210 | |||
Treasury stock, beginning balance (in shares) at Dec. 31, 2022 | 1,321 | 1,321 | |||
Stock-based compensation | 609,926 | $ 609,926 | |||
Net loss | (2,527,985) | (2,527,985) | |||
Vesting of restricted stock units | $ 7 | (7) | |||
Vesting of restricted stock units (in shares) | 6,889 | ||||
Ending balance at Mar. 31, 2023 | $ 5,933 | 105,621,237 | $ (13,210) | (89,623,415) | 15,990,545 |
Ending balance (in shares) at Mar. 31, 2023 | 5,932,890 | ||||
Treasury stock, ending balance (in shares) at Mar. 31, 2023 | 1,321 | ||||
Beginning balance at Dec. 31, 2022 | $ 5,926 | 105,011,318 | (87,095,430) | 17,908,604 | |
Beginning balance (in shares) at Dec. 31, 2022 | 5,926,001 | ||||
Treasury Stock, beginning balance at Dec. 31, 2022 | $ (13,210) | $ 13,210 | |||
Treasury stock, beginning balance (in shares) at Dec. 31, 2022 | 1,321 | 1,321 | |||
Net loss | $ (4,807,791) | ||||
Ending balance at Jun. 30, 2023 | $ 5,940 | 106,244,511 | (91,903,221) | 14,334,020 | |
Ending balance (in shares) at Jun. 30, 2023 | 5,939,779 | ||||
Treasury Stock, ending balance at Jun. 30, 2023 | $ (13,210) | $ 13,210 | |||
Treasury stock, ending balance (in shares) at Jun. 30, 2023 | 1,321 | 1,321 | |||
Beginning balance at Mar. 31, 2023 | $ 5,933 | 105,621,237 | $ (13,210) | (89,623,415) | $ 15,990,545 |
Beginning balance (in shares) at Mar. 31, 2023 | 5,932,890 | ||||
Treasury stock, beginning balance (in shares) at Mar. 31, 2023 | 1,321 | ||||
Stock-based compensation | 623,281 | 623,281 | |||
Net loss | (2,279,806) | (2,279,806) | |||
Vesting of restricted stock units | $ 7 | (7) | |||
Vesting of restricted stock units (in shares) | 6,889 | ||||
Ending balance at Jun. 30, 2023 | $ 5,940 | $ 106,244,511 | $ (91,903,221) | 14,334,020 | |
Ending balance (in shares) at Jun. 30, 2023 | 5,939,779 | ||||
Treasury Stock, ending balance at Jun. 30, 2023 | $ (13,210) | $ 13,210 | |||
Treasury stock, ending balance (in shares) at Jun. 30, 2023 | 1,321 | 1,321 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2023 | |
Organization and Description of Business | |
Organization and Description of Business | Note 1 – Organization and Description of Business Ideal Power Inc. (the “Company”) was incorporated in Texas on May 17, 2007 under the name Ideal Power Converters, Inc. The Company changed its name to Ideal Power Inc. on July 8, 2013 and re-incorporated in Delaware on July 15, 2013. With headquarters in Austin, Texas, the Company is focused on the further development and commercialization of its Bidirectional bipolar junction TRANsistor (B-TRAN™) solid-state switch technology. Since its inception, the Company has financed its research and development efforts and operations primarily through the sale of common stock. The Company’s continued operations are dependent upon, among other things, its ability to obtain adequate sources of funding through future revenues, follow-on stock offerings, issuances of warrants, debt financing, co-development agreements, government grants, sale or licensing of developed intellectual property or other alternatives. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The balance sheet at December 31, 2022 has been derived from the Company’s audited financial statements included in its Annual Report on Form 10-K filed with the SEC on March 30, 2023. In the opinion of management, these financial statements reflect all normal recurring, and other adjustments, necessary for a fair presentation. These financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods. Net Loss Per Share In accordance with Accounting Standards Codification 260, shares issuable for little or no cash consideration are considered outstanding common shares and included in the computation of basic net loss per share. As such, for the three and six months ended June 30, 2023 and 2022, the Company included pre-funded warrants to purchase 253,828 shares of common stock in its computation of net loss per share. The pre-funded warrants were issued in November 2019 with an exercise price of $0.001 . See Note 7. In periods with a net loss, no common share equivalents are included in the computation of diluted net loss per share because their effect would be anti-dilutive. At June 30, 2023 and 2022, potentially dilutive shares outstanding amounted to 1,636,006 and 1,400,368 shares, respectively, and exclude prefunded warrants to purchase shares of common stock. Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standard, if adopted, would have a material impact on the Company’s financial statements. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Intangible Assets | |
Intangible Assets | Note 3 – Intangible Assets Intangible assets, net consisted of the following: June 30, December 31, 2023 2022 (unaudited) Patents $ 1,393,141 $ 1,263,930 Trademarks 10,627 — Other intangible assets 1,843,036 1,391,479 3,246,804 2,655,409 Accumulated amortization - patents (240,608) (211,078) Accumulated amortization - other intangible assets (466,774) (407,900) $ 2,539,422 $ 2,036,431 At June 30, 2023 and December 31, 2022, the Company had capitalized $410,241 and $341,610, respectively, for costs related to patents and trademarks that have not been awarded. Cost related to patents that have not yet been awarded are not amortized until patent issuance. As further discussed in Note 5, the Company entered into a license agreement in April 2023 and capitalized $451,557 in other intangible assets related to this agreement. Amortization expense amounted to $50,178 and $88,404 for the three and six months ended June 30, 2023, respectively, and $37,098 and $73,910 for the three and six months ended June 30, 2022, respectively. Amortization expense for the succeeding five years and thereafter is $100,625 (remaining six months 2024 2027 |
Lease
Lease | 6 Months Ended |
Jun. 30, 2023 | |
Lease | |
Lease | Note 4 – Lease In March 2021, the Company entered into a lease agreement for 4,070 square feet of office and laboratory space located in Austin, Texas. The commencement of the lease occurred on June 1, 2021 and the initial term of the lease was 63 months. The actual base rent in the first year of the lease was $56,471 and was net of $18,824 in abated rent over the first three months of the lease term. The annual base rent in the second year of the lease was $77,330 and increases by $2,035 in each succeeding year of the lease. In addition, the Company is required to pay its proportionate share of operating costs for the building under this triple net lease. The lease contains a 5-year fair market renewal option. It does not contain a termination option. The Company recognized a right of use asset of $339,882 and a corresponding lease For purposes of calculating the right of use asset and lease liability included in the Company’s financial statements, the Company estimated its incremental borrowing rate at 6% per annum. Future minimum payments under the lease are as follows: For the Year Ended December 31, 2023 (remaining) $ 39,683 2024 80,552 2025 82,587 2026 56,132 Total lease payments 258,954 Less: imputed interest (22,759) Total lease liability 236,195 Less: current portion of lease liability (67,595) Long-term lease liability $ 168,600 At June 30, 2023, the remaining lease term was 38 months. For the three months ended June 30, 2023 and 2022, operating cash outflows for lease payments totaled $19,502 and $18,993, respectively, and for the six months ended June 30, 2023 and 2022, operating cash outflows for lease payments totaled $38,835 and $37,817, respectively. For both the three months ended June 30, 2023 and 2022, operating lease cost, recognized on a straight-line basis, totaled $19,017, and for both the six months ended June 30, 2023 and 2022, operating lease cost, recognized on a straight-line basis, totaled $38,035. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies. | |
Commitments and Contingencies | Note 5 – Commitments and Contingencies License Agreement In 2015, the Company entered into a licensing agreement which expires in February 2033. Per the agreement, the Company has an exclusive royalty-free license associated with semiconductor power switches which enhances its intellectual property portfolio. The Company will pay $100,000 annually under this agreement. In April 2023, the Company amended a 2021 license agreement which expires in February 2034. Per the agreement, the Company has an exclusive royalty-free license associated with semiconductor drive circuitry which enhances its intellectual property portfolio. The Company will pay $50,000 annually under this agreement. At inception, the Company recorded an intangible asset and other long-term liability of $451,557, of which $50,000 is in accrued expenses at June 30, 2023, for the estimated present value of future payments under the licensing agreement. At June 30, 2023 and December 31, 2022, the other long-term liability for the estimated present value of future payments under the licensing agreements was $1,180,005 and $838,458, respectively. The Company is accruing interest for future payments related to these agreements. Legal Proceedings The Company may be subject to litigation from time to time in the ordinary course of business. The Company is not currently party to any legal proceedings. Indemnification Obligations The employment agreements of Company executives include an indemnification provision whereby the Company shall indemnify and defend, at the Company’s expense, its executives so long as an executive’s actions were taken in good faith and in furtherance of the Company’s business and within the scope of executive’s duties and authority. |
Equity Incentive Plan
Equity Incentive Plan | 6 Months Ended |
Jun. 30, 2023 | |
Equity Incentive Plan | |
Equity Incentive Plan | Note 6 — Equity Incentive Plan In May 2013, the Company adopted the 2013 Equity Incentive Plan (as amended and restated, the “Plan”) and reserved shares of common stock for issuance under the Plan, which was last amended in June 2023. The Plan is administered by the Compensation Committee of the Company’s Board of Directors (the “Board”). At June 30, 2023, 524,680 shares of common stock were available for issuance under the Plan. A summary of the Company’s stock option activity and related information is as follows: Weighted Weighted Average Average Remaining Stock Exercise Life Options Price (in years) Outstanding at December 31, 2022 513,948 $ 7.59 6.6 Granted 12,000 $ 11.96 Outstanding at June 30, 2023 525,948 $ 7.69 6.2 Exercisable at June 30, 2023 459,950 $ 7.04 5.8 A summary of the Company’s restricted stock unit (RSU) and performance stock unit (PSU) activity is as follows: RSUs PSUs Outstanding at December 31, 2022 183,666 114,000 Granted 39,750 — Vested (13,778) — Outstanding at June 30, 2023 209,638 114,000 During the six months ended June 30, 2023, the Company granted 27,550 RSUs to Board members, 12,200 RSUs to employees and 12,000 stock options to employees under the Plan. The estimated fair value of these equity grants, calculated using the Black-Scholes option valuation model for the stock options, was $529,389, $169,439 of which was recognized during the six months ended June 30, 2023. At June 30, 2023, there was $2,570,012 of unrecognized compensation cost related to non-vested equity awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 0.9 years. |
Warrants
Warrants | 6 Months Ended |
Jun. 30, 2023 | |
Warrants | |
Warrants | Note 7 — Warrants At June 30, 2023 and December 31, 2022, the Company had 786,420 warrants outstanding with a weighted average exercise price of $5.19 per share and 253,828 pre-funded warrants outstanding with an exercise price of $0.001 per share. The weighted average remaining life, excluding the 253,828 pre-funded warrants with no expiration date, of the outstanding warrants is 1.7 years. At June 30, 2023, all warrants were exercisable, although the warrants held by certain of the Company’s warrant holders may be exercised only to the extent that the total number of shares of common stock then beneficially owned by such warrant holder does not exceed 4.99% (or, at the investor’s election, 9.99%) of the outstanding shares of the Company’s common stock. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The balance sheet at December 31, 2022 has been derived from the Company’s audited financial statements included in its Annual Report on Form 10-K filed with the SEC on March 30, 2023. In the opinion of management, these financial statements reflect all normal recurring, and other adjustments, necessary for a fair presentation. These financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods. |
Net Loss Per Share | Net Loss Per Share In accordance with Accounting Standards Codification 260, shares issuable for little or no cash consideration are considered outstanding common shares and included in the computation of basic net loss per share. As such, for the three and six months ended June 30, 2023 and 2022, the Company included pre-funded warrants to purchase 253,828 shares of common stock in its computation of net loss per share. The pre-funded warrants were issued in November 2019 with an exercise price of $0.001 . See Note 7. In periods with a net loss, no common share equivalents are included in the computation of diluted net loss per share because their effect would be anti-dilutive. At June 30, 2023 and 2022, potentially dilutive shares outstanding amounted to 1,636,006 and 1,400,368 shares, respectively, and exclude prefunded warrants to purchase shares of common stock. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standard, if adopted, would have a material impact on the Company’s financial statements. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Intangible Assets | |
Schedule of intangible assets, net | June 30, December 31, 2023 2022 (unaudited) Patents $ 1,393,141 $ 1,263,930 Trademarks 10,627 — Other intangible assets 1,843,036 1,391,479 3,246,804 2,655,409 Accumulated amortization - patents (240,608) (211,078) Accumulated amortization - other intangible assets (466,774) (407,900) $ 2,539,422 $ 2,036,431 |
Lease (Tables)
Lease (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Lease | |
Schedule of future minimum payments under the lease | For the Year Ended December 31, 2023 (remaining) $ 39,683 2024 80,552 2025 82,587 2026 56,132 Total lease payments 258,954 Less: imputed interest (22,759) Total lease liability 236,195 Less: current portion of lease liability (67,595) Long-term lease liability $ 168,600 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity Incentive Plan | |
Schedule of company's stock options activity and related information | Weighted Weighted Average Average Remaining Stock Exercise Life Options Price (in years) Outstanding at December 31, 2022 513,948 $ 7.59 6.6 Granted 12,000 $ 11.96 Outstanding at June 30, 2023 525,948 $ 7.69 6.2 Exercisable at June 30, 2023 459,950 $ 7.04 5.8 |
Schedule of restricted stock unit (RSU) and performance stock unit (PSU) activity | RSUs PSUs Outstanding at December 31, 2022 183,666 114,000 Granted 39,750 — Vested (13,778) — Outstanding at June 30, 2023 209,638 114,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - $ / shares | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Nov. 30, 2019 | |
Summary of Significant Accounting Policies | ||||
Exercise price of warrants | $ 5.19 | $ 5.19 | ||
Potentially dilutive shares outstanding (in shares) | 1,636,006 | 1,400,368 | ||
Pre funded warrants | ||||
Summary of Significant Accounting Policies | ||||
Warrants issued to purchase shares of common stock | 253,828 | 253,828 | ||
Exercise price of warrants | $ 0.001 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Intangible Assets | ||
Gross intangible assets | $ 3,246,804 | $ 2,655,409 |
Intangible assets, net | 2,539,422 | 2,036,431 |
Patents | ||
Intangible Assets | ||
Gross intangible assets | 1,393,141 | 1,263,930 |
Accumulated amortization | (240,608) | (211,078) |
Trademarks | ||
Intangible Assets | ||
Gross intangible assets | 10,627 | |
Other intangible assets | ||
Intangible Assets | ||
Gross intangible assets | 1,843,036 | 1,391,479 |
Accumulated amortization | $ (466,774) | $ (407,900) |
Intangible Assets - Additional
Intangible Assets - Additional information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Intangible Assets | ||||||
Capitalized costs for costs related to patents that have not been awarded | $ 410,241 | $ 410,241 | $ 341,610 | |||
Amortization expense | 50,178 | $ 37,098 | 88,404 | $ 73,910 | ||
Amortization expense for 2023 | 100,625 | 100,625 | ||||
Amortization expense for 2024 | 201,251 | 201,251 | ||||
Amortization expense for 2025 | 201,251 | 201,251 | ||||
Amortization expense for 2026 | 201,251 | 201,251 | ||||
Amortization expense for 2027 | 201,251 | 201,251 | ||||
Amortization expense for thereafter | $ 1,223,552 | $ 1,223,552 | ||||
Other intangible assets | ||||||
Intangible Assets | ||||||
Capitalized cost of license agreement | $ 451,557 |
Lease (Details)
Lease (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) ft² | |
Lease | ||||||
Annual base rent in the second year of the lease | $ 80,552 | $ 80,552 | ||||
Right of use asset | 218,130 | 218,130 | $ 248,720 | |||
Lease liability | $ 236,195 | $ 236,195 | ||||
Remaining lease term | 38 months | 38 months | ||||
Operating lease payments | $ 19,502 | $ 18,993 | $ 38,835 | $ 37,817 | ||
Operating lease cost | $ 19,017 | $ 19,017 | $ 38,035 | $ 38,035 | ||
Office and laboratory space | ||||||
Lease | ||||||
Square feet of office and laboratory space leased (in sq ft) | ft² | 4,070 | |||||
Initial term of the operating lease | 63 months | |||||
Actual base rent in first year of the lease | $ 56,471 | |||||
Abated rent | 18,824 | |||||
Annual base rent in the second year of the lease | 77,330 | |||||
Increase in base rent each succeeding year | $ 2,035 | |||||
Operating lease renewal term | 5 years | |||||
Right of use asset | $ 339,882 | |||||
Lease liability | $ 339,882 | |||||
Incremental borrowing rate | 6% |
Lease - Future minimum payments
Lease - Future minimum payments under the lease (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Future minimum payments | ||
2023 (remaining) | $ 39,683 | |
2024 | 80,552 | |
2025 | 82,587 | |
2026 | 56,132 | |
Total lease payments | 258,954 | |
Less: imputed interest | (22,759) | |
Total lease liability | 236,195 | |
Less: current portion of lease liability | (67,595) | $ (64,597) |
Long-term lease liability | $ 168,600 | $ 202,987 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2023 | Dec. 31, 2015 | Jun. 30, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies | ||||
Gross intangible assets | $ 3,246,804 | $ 2,655,409 | ||
Other long-term liabilities | 1,180,005 | 838,458 | ||
Accrued expenses | 614,642 | 254,218 | ||
Licensing agreements | ||||
Commitments and Contingencies | ||||
Annual payment due under licensing agreement | $ 100,000 | |||
Long-term liability for estimated present value of future payments under licensing agreement | 1,180,005 | $ 838,458 | ||
Company amended | ||||
Commitments and Contingencies | ||||
Annual payment due under licensing agreement | $ 50,000 | |||
Gross intangible assets | 451,557 | |||
Accrued expenses | $ 50,000 |
Equity Incentive Plan (Details)
Equity Incentive Plan (Details) - 2013 Equity Incentive Plan | 6 Months Ended |
Jun. 30, 2023 USD ($) shares | |
Equity Incentive Plan | |
Shares of common stock available for issuance under the plan (in shares) | 524,680 |
Granted | 12,000 |
Estimated fair value of options granted | $ | $ 529,389 |
Estimated fair value of stock options recognized | $ | 169,439 |
Unrecognized compensation cost related to non-vested share-based compensation arrangements | $ | $ 2,570,012 |
Weighted average period for recognition | 10 months 24 days |
Employees | |
Equity Incentive Plan | |
Granted | 12,000 |
Restricted stock unit (RSUs) | Employees | |
Equity Incentive Plan | |
Granted | 12,200 |
Restricted stock unit (RSUs) | Board members | |
Equity Incentive Plan | |
Granted | 27,550 |
Equity Incentive Plan - Stock o
Equity Incentive Plan - Stock option activity and related Information (Details) - 2013 Equity Incentive Plan - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Stock Options | ||
Outstanding at December 31, 2022 | 513,948 | |
Granted | 12,000 | |
Outstanding at June 30, 2023 | 525,948 | 513,948 |
Exercisable at June 30, 2023 | 459,950 | |
Weighted Average Exercise Price | ||
Outstanding at December 31, 2022 (in dollars per share) | $ 7.59 | |
Granted | 11.96 | |
Outstanding at June 30, 2023 (in dollars per share) | 7.69 | $ 7.59 |
Exercisable at June 30, 2023 (in dollars per share) | $ 7.04 | |
Weighted Average Remaining Life (in years) | ||
Outstanding (in years) | 6 years 2 months 12 days | 6 years 7 months 6 days |
Exercisable | 5 years 9 months 18 days |
Equity Incentive Plan - Company
Equity Incentive Plan - Company's RSU and PSU activity (Details) | 6 Months Ended |
Jun. 30, 2023 shares | |
RSUs | |
Restricted stock unit (RSU) and performance stock unit (PSU) activity | |
Outstanding at December 31, 2022 | 183,666 |
Granted | 39,750 |
Vested | (13,778) |
Outstanding at June 30, 2023 | 209,638 |
PSUs | |
Restricted stock unit (RSU) and performance stock unit (PSU) activity | |
Outstanding at December 31, 2022 | 114,000 |
Outstanding at June 30, 2023 | 114,000 |
Warrants (Details)
Warrants (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Warrants | ||
Warrant outstanding | 786,420 | 786,420 |
Weighted average exercise price | $ 5.19 | $ 5.19 |
Maximum beneficial ownership percentage of warrants | 4.99% | |
Maximum beneficial ownership percentage of warrants upon investor's election | 9.99% | |
Pre funded warrants | ||
Warrants | ||
Warrant outstanding | 253,828 | 253,828 |
Weighted average exercise price | $ 0.001 | $ 0.001 |
Number of warrants with no expiration date | 253,828 | |
Weighted average remaining life of warrants | 1 year 8 months 12 days |